113 HR 2642 EAS: Agriculture Reform, Food, and Jobs Act of 2013 U.S. House of Representatives 2013-07-18 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. 113th CONGRESS 1st Session H.R. 2642 In the Senate of the United States, July 18, 2013. Amendment:

That the bill from the House of Representatives (H.R. 2642) entitled An Act to provide for the reform and continuation of agricultural and other programs of the Department of Agriculture through fiscal year 2018, and for other purposes., do pass with the following

Strike out all after the enacting clause and insert:

1.

Short title; table of contents

(a)

In general

This Act may be cited as the Agriculture Reform, Food, and Jobs Act of 2013. (b)

Table of contents

The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Definition of Secretary. TITLE I—Commodity programs Subtitle A—Repeals and reforms Sec. 1101. Repeal of direct payments. Sec. 1102. Repeal of counter-cyclical payments. Sec. 1103. Repeal of average crop revenue election program. Sec. 1104. Definitions. Sec. 1105. Base acres. Sec. 1106. Payment yields. Sec. 1107. Availability of adverse market payments. Sec. 1108. Agriculture risk coverage. Sec. 1109. Producer agreement required as condition of provision of payments. Sec. 1110. Period of effectiveness. Subtitle B—Marketing assistance loans and loan deficiency payments Sec. 1201. Availability of nonrecourse marketing assistance loans for loan commodities. Sec. 1202. Loan rates for nonrecourse marketing assistance loans. Sec. 1203. Term of loans. Sec. 1204. Repayment of loans. Sec. 1205. Loan deficiency payments. Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage. Sec. 1207. Economic adjustment assistance to users of upland cotton. Sec. 1208. Special competitive provisions for extra long staple cotton. Sec. 1209. Availability of recourse loans for high moisture feed grains and seed cotton. Sec. 1210. Adjustments of loans. Subtitle C—Sugar Sec. 1301. Sugar program. Subtitle D—Dairy Part I—Dairy production margin protection and dairy market stabilization programs Sec. 1401. Definitions. Sec. 1402. Calculation of average feed cost and actual dairy production margins. SUBPART A—Dairy production margin protection program Sec. 1411. Establishment of dairy production margin protection program. Sec. 1412. Participation of dairy operations in production margin protection program. Sec. 1413. Production history of participating dairy operations. Sec. 1414. Basic production margin protection. Sec. 1415. Supplemental production margin protection. Sec. 1416. Effect of failure to pay administration fees or premiums. SUBPART B—Dairy market stabilization program Sec. 1431. Establishment of dairy market stabilization program. Sec. 1432. Threshold for implementation and reduction in dairy payments. Sec. 1433. Milk marketings information. Sec. 1434. Calculation and collection of reduced dairy operation payments. Sec. 1435. Remitting funds to the Secretary and use of funds. Sec. 1436. Suspension of reduced payment requirement. Sec. 1437. Enforcement. Sec. 1438. Audit requirements. Sec. 1439. Study; report. SUBPART C—Administration Sec. 1451. Duration. Sec. 1452. Administration and enforcement. Part II—Dairy market transparency Sec. 1461. Dairy product mandatory reporting. Sec. 1462. Federal milk marketing order program pre-hearing procedure for Class III pricing. Part III—Repeal or reauthorization of other dairy-Related provisions Sec. 1471. Repeal of dairy product price support and milk income loss contract programs. Sec. 1472. Repeal of dairy export incentive program. Sec. 1473. Extension of dairy forward pricing program. Sec. 1474. Extension of dairy indemnity program. Sec. 1475. Extension of dairy promotion and research program. Sec. 1476. Extension of Federal Milk Marketing Order Review Commission. Part IV—Federal milk marketing order reform Sec. 1481. Federal milk marketing orders. Part V—Effective date Sec. 1491. Effective date. Subtitle E—Supplemental agricultural disaster assistance programs Sec. 1501. Supplemental agricultural disaster assistance programs. Subtitle F—Administration Sec. 1601. Administration generally. Sec. 1602. Suspension of permanent price support authority. Sec. 1603. Payment limitations. Sec. 1604. Payments limited to active farmers. Sec. 1605. Adjusted gross income limitation. Sec. 1606. Geographically disadvantaged farmers and ranchers. Sec. 1607. Personal liability of producers for deficiencies. Sec. 1608. Prevention of deceased individuals receiving payments under farm commodity programs. Sec. 1609. Appeals. Sec. 1610. Technical corrections. Sec. 1611. Assignment of payments. Sec. 1612. Tracking of benefits. Sec. 1613. Signature authority. Sec. 1614. Implementation. TITLE II—Conservation Subtitle A—Conservation Reserve Program Sec. 2001. Extension and enrollment requirements of conservation reserve program. Sec. 2002. Farmable wetland program. Sec. 2003. Duties of owners and operators. Sec. 2004. Duties of the Secretary. Sec. 2005. Payments. Sec. 2006. Contract requirements. Sec. 2007. Conversion of land subject to contract to other conserving uses. Sec. 2008. Effective date. Subtitle B—Conservation Stewardship Program Sec. 2101. Conservation stewardship program. Subtitle C—Environmental Quality Incentives Program Sec. 2201. Purposes. Sec. 2202. Definitions. Sec. 2203. Establishment and administration. Sec. 2204. Evaluation of applications. Sec. 2205. Duties of producers. Sec. 2206. Limitation on payments. Sec. 2207. Conservation innovation grants and payments. Sec. 2208. Effective date. Subtitle D—Agricultural Conservation Easement Program Sec. 2301. Agricultural Conservation Easement Program. Subtitle E—Regional Conservation Partnership Program Sec. 2401. Regional Conservation Partnership Program. Subtitle F—Other Conservation Programs Sec. 2501. Conservation of private grazing land. Sec. 2502. Grassroots source water protection program. Sec. 2503. Voluntary public access and habitat incentive program. Sec. 2504. Agriculture conservation experienced services program. Sec. 2505. Small watershed rehabilitation program. Sec. 2506. Emergency watershed protection program. Sec. 2507. Terminal lakes assistance. Sec. 2508. Study of potential improvements to the wetland mitigation process. Sec. 2509. Soil and water resource conservation. Subtitle G—Funding and administration Sec. 2601. Funding. Sec. 2602. Technical assistance. Sec. 2603. Regional equity. Sec. 2604. Reservation of funds to provide assistance to certain farmers or ranchers for conservation access. Sec. 2605. Annual report on program enrollments and assistance. Sec. 2606. Administrative requirements for conservation programs. Sec. 2607. Rulemaking authority. Sec. 2608. Standards for State technical committees. Sec. 2609. Highly erodible land and wetland conservation for crop insurance. Sec. 2610. Adjusted gross income limitation for conservation programs. Subtitle H—Repeal of superseded program authorities and transitional provisions Sec. 2701. Comprehensive conservation enhancement program. Sec. 2702. Emergency forestry conservation reserve program. Sec. 2703. Wetlands reserve program. Sec. 2704. Farmland protection program and farm viability program. Sec. 2705. Grassland reserve program. Sec. 2706. Agricultural water enhancement program. Sec. 2707. Wildlife habitat incentive program. Sec. 2708. Great Lakes basin program. Sec. 2709. Chesapeake Bay watershed program. Sec. 2710. Cooperative conservation partnership initiative. Sec. 2711. Environmental easement program. Sec. 2712. Technical amendments. TITLE III—Trade Subtitle A—Food for Peace Act Sec. 3001. Set-aside for support for organizations through which nonemergency assistance is provided. Sec. 3002. Food aid quality. Sec. 3003. Minimum levels of assistance. Sec. 3004. Reauthorization of Food Aid Consultative Group. Sec. 3005. Oversight, monitoring, and evaluation of Food for Peace Act programs. Sec. 3006. Assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods. Sec. 3007. Limitation on total volume of commodities monetized. Sec. 3008. Flexibility. Sec. 3009. Procurement, transportation, testing, and storage of agricultural commodities for prepositioning in the United States and foreign countries. Sec. 3010. Deadline for agreements to finance sales or to provide other assistance. Sec. 3011. Minimum level of nonemergency food assistance. Sec. 3012. Coordination of foreign assistance programs report. Sec. 3013. Micronutrient fortification programs. Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program. Sec. 3015. Prohibition on assistance for North Korea. Subtitle B—Agricultural Trade Act of 1978 Sec. 3101. Export credit guarantee programs. Sec. 3102. Funding for market access program. Sec. 3103. Foreign market development cooperator program. Subtitle C—Other Agricultural Trade Laws Sec. 3201. Food for Progress Act of 1985. Sec. 3202. Bill Emerson Humanitarian Trust. Sec. 3203. Promotion of agricultural exports to emerging markets. Sec. 3204. McGovern-Dole International Food for Education and Child Nutrition Program. Sec. 3205. Technical assistance for specialty crops. Sec. 3206. Global Crop Diversity Trust. Sec. 3207. Local and regional food aid procurement projects. Sec. 3208. Donald Payne Horn of Africa food resilience program. Sec. 3209. Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs. TITLE IV—Nutrition Subtitle A—Supplemental nutrition assistance program Sec. 4001. Access to Grocery Delivery for Homebound Seniors and Individuals with Disabilities eligible for supplemental nutrition assistance benefits. Sec. 4002. Food distribution program on Indian reservations. Sec. 4003. Standard utility allowances based on the receipt of energy assistance payments. Sec. 4004. Eligibility disqualifications. Sec. 4005. Ending supplemental nutrition assistance program benefits for lottery or gambling winners. Sec. 4006. Retail food stores. Sec. 4007. Improving security of food assistance. Sec. 4008. Technology modernization for retail food stores. Sec. 4009. Use of benefits for purchase of community-supported agriculture share. Sec. 4010. Restaurant meals program. Sec. 4011. Quality control standards. Sec. 4012. Performance bonus payments. Sec. 4013. Funding of employment and training programs. Sec. 4014. Authorization of appropriations. Sec. 4015 Assistance for community food projects. Sec. 4016. Emergency food assistance. Sec. 4017. Nutrition education. Sec. 4018. Retail food store and recipient trafficking. Sec. 4019. Technical and conforming amendments. Sec. 4020. Eligibility disqualifications for certain convicted felons. Subtitle B—Commodity distribution programs Sec. 4101. Commodity distribution program. Sec. 4102. Commodity supplemental food program. Sec. 4103. Distribution of surplus commodities to special nutrition projects. Sec. 4104. Processing of commodities. Subtitle C—Miscellaneous Sec. 4201. Purchase of fresh fruits and vegetables for distribution to schools and service institutions. Sec. 4202. Seniors farmers' market nutrition program. Sec. 4203. Nutrition information and awareness pilot program. Sec. 4204. Hunger-free communities. Sec. 4205. Healthy Food Financing Initiative. Sec. 4206. Pulse crop products. Sec. 4207. Dietary Guidelines for Americans. Sec. 4208. Purchases of locally produced foods. Sec. 4209. Multiagency task force. Sec. 4210. Food and Agriculture Service Learning Program. TITLE V—Credit Subtitle A—Farmer loans, servicing, and other assistance under the Consolidated Farm and Rural Development Act Sec. 5001. Farmer loans, servicing, and other assistance under the Consolidated Farm and Rural Development Act. Subtitle B—Miscellaneous Sec. 5101. State agricultural mediation programs. Sec. 5102. Loans to purchasers of highly fractionated land. Sec. 5103. Removal of duplicative appraisals. Sec. 5104. Compensation disclosure by Farm Credit System institutions. TITLE VI—Rural Development Subtitle A—Reorganization of the Consolidated Farm and Rural Development Act Sec. 6001. Reorganization of the Consolidated Farm and Rural Development Act. Sec. 6002. Conforming amendments. Subtitle B—Rural electrification Sec. 6101. Definition of rural area. Sec. 6102. Guarantees for bonds and notes issued for electrification or telephone purposes. Sec. 6103. Expansion of 911 access. Sec. 6104. Access to broadband telecommunications services in rural areas. Subtitle C—Miscellaneous Sec. 6201. Distance learning and telemedicine. Sec. 6202. Definition of rural area for purposes of the Housing Act of 1949. Sec. 6203. Rural energy savings program. Sec. 6204. Funding of pending rural development loan and grant applications. Sec. 6205. Study of rural transportation issues. Sec. 6206. Agricultural transportation policy. Sec. 6207. Value-added agricultural market development program grants. TITLE VII—Research, Extension, and Related Matters Subtitle A—National Agricultural Research, Extension, and Teaching Policy Act of 1977 Sec. 7101. National Agricultural Research, Extension, Education, and Economics Advisory Board. Sec. 7102. Specialty crop committee. Sec. 7103. Veterinary services grant program. Sec. 7104. Grants and fellowships for food and agriculture sciences education. Sec. 7105. Agricultural and food policy research centers. Sec. 7106. Education grants to Alaska Native serving institutions and Native Hawaiian serving institutions. Sec. 7107. Nutrition education program. Sec. 7108. Continuing animal health and disease research programs. Sec. 7109. Grants to upgrade agricultural and food sciences facilities at 1890 land-grant colleges, including Tuskegee University. Sec. 7110. Grants to upgrade agricultural and food sciences facilities and equipment at insular area land-grant institutions. Sec. 7111. Hispanic-serving institutions. Sec. 7112. Competitive grants for international agricultural science and education programs. Sec. 7113. University research. Sec. 7114. Extension service. Sec. 7115. Supplemental and alternative crops. Sec. 7116. Capacity building grants for NLGCA institutions. Sec. 7117. Aquaculture assistance programs. Sec. 7118. Rangeland research programs. Sec. 7119. Special authorization for biosecurity planning and response. Sec. 7120. Distance education and resident instruction grants program for insular area institutions of higher education. Subtitle B—Food, Agriculture, Conservation, and Trade Act of 1990 Sec. 7201. Best utilization of biological applications. Sec. 7202. Integrated management systems. Sec. 7203. Sustainable agriculture technology development and transfer program. Sec. 7204. National Training Program. Sec. 7205. National Genetics Resources Program. Sec. 7206. National Agricultural Weather Information System. Sec. 7207. Agricultural Genome Initiative. Sec. 7208. High-priority research and extension initiatives. Sec. 7209. Organic agriculture research and extension initiative. Sec. 7210. Farm business management. Sec. 7211. Regional centers of excellence. Sec. 7212. Assistive technology program for farmers with disabilities. Sec. 7213. National rural information center clearinghouse. Subtitle C—Agricultural Research, Extension, and Education Reform Act of 1998 Sec. 7301. Relevance and merit of agricultural research, extension, and education funded by the Department. Sec. 7302. Integrated research, education, and extension competitive grants program. Sec. 7303. Support for research regarding diseases of wheat, triticale, and barley caused by Fusarium graminearum or by Tilletia indica. Sec. 7304. Grants for youth organizations. Sec. 7305. Specialty crop research initiative. Sec. 7306. Food animal residue avoidance database program. Sec. 7307. Office of pest management policy. Sec. 7308. Authorization of regional integrated pest management centers. Subtitle D—Other Laws Sec. 7401. Critical Agricultural Materials Act. Sec. 7402. Equity in Educational Land-Grant Status Act of 1994. Sec. 7403. Research Facilities Act. Sec. 7404. Competitive, Special, and Facilities Research Grant Act. Sec. 7405. Enhanced use lease authority pilot program under Department of Agriculture Reorganization Act of 1994. Sec. 7406. Renewable Resources Extension Act of 1978. Sec. 7407. National Aquaculture Act of 1980. Sec. 7408. Beginning farmer and rancher development program under Farm Security and Rural Investment Act of 2002. Subtitle E—Food, Conservation, and Energy Act of 2008 Part I—Agricultural Security Sec. 7501. Agricultural biosecurity communication center. Sec. 7502. Assistance to build local capacity in agricultural biosecurity planning, preparation, and response. Sec. 7503. Research and development of agricultural countermeasures. Sec. 7504. Agricultural biosecurity grant program. Part II—Miscellaneous Sec. 7511. Grazinglands research laboratory. Sec. 7512. Budget submission and funding. Sec. 7513. Natural products research program. Sec. 7514. Sun grant program. Subtitle F—Miscellaneous Sec. 7601. Foundation for Food and Agriculture Research. Sec. 7602. Agricultural and food law research, legal tools, and information. TITLE VIII—Forestry Subtitle A—Repeal of certain forestry programs Sec. 8001. Forest land enhancement program. Sec. 8002. Hispanic-serving institution agricultural land national resources leadership program. Sec. 8003. Tribal watershed forestry assistance program. Subtitle B—Reauthorization of Cooperative Forestry Assistance Act of 1978 programs Sec. 8101. State-wide assessment and strategies for forest resources. Subtitle C—Reauthorization of other forestry-Related laws Sec. 8201. Rural revitalization technologies. Sec. 8202. Office of International Forestry. Sec. 8203. Insect and disease infestation. Sec. 8204. Stewardship end result contracting projects. Sec. 8205. Healthy forests reserve program. Subtitle D—Miscellaneous provisions Sec. 8301. McIntire-Stennis Cooperative Forestry Act. Sec. 8302. Revision of strategic plan for forest inventory and analysis. Sec. 8303. Reimbursement of fire funds. TITLE IX—Energy Sec. 9001. Definitions. Sec. 9002. Biobased markets program. Sec. 9003. Biorefinery, renewable chemical, and biobased product manufacturing assistance. Sec. 9004. Bioenergy program for advanced biofuels. Sec. 9005. Biodiesel fuel education program. Sec. 9006. Rural Energy for America Program. Sec. 9007. Biomass research and development. Sec. 9008. Feedstock flexibility program for bioenergy producers. Sec. 9009. Biomass Crop Assistance Program. Sec. 9010. Repeal of forest biomass for energy. Sec. 9011. Community wood energy program. Sec. 9012. Repeal of renewable fertilizer study. TITLE X—Horticulture Sec. 10001. Specialty crops market news allocation. Sec. 10002. Repeal of grant program to improve movement of specialty crops. Sec. 10003. Farmers market and local food promotion program. Sec. 10004. Study on local food production and program evaluation. Sec. 10005. Organic agriculture. Sec. 10006. Food safety education initiatives. Sec. 10007. Coordinated plant management program. Sec. 10008. Specialty crop block grants. Sec. 10009. Recordkeeping, investigations, and enforcement. Sec. 10010. Report on honey. Sec. 10011. Removal of AMS inspection authority over apples in bulk bins. Sec. 10012. Organic product promotion orders. Sec. 10013. Effective date. TITLE XI—Crop insurance Sec. 11001. Supplemental coverage option. Sec. 11002. Crop margin coverage option. Sec. 11003. Premium amounts for catastrophic risk protection. Sec. 11004. Permanent enterprise unit. Sec. 11005. Enterprise units for irrigated and nonirrigated crops. Sec. 11006. Data collection. Sec. 11007. Adjustment in actual production history to establish insurable yields. Sec. 11008. Submission and review of policies. Sec. 11009. Board review and approval. Sec. 11010. Consultation. Sec. 11011. Budget limitations on renegotiation of the Standard Reinsurance Agreement. Sec. 11012. Test weight for corn. Sec. 11013. Stacked Income Protection Plan for producers of upland cotton. Sec. 11014. Peanut revenue crop insurance. Sec. 11015. Authority to correct errors. Sec. 11016. Implementation. Sec. 11017. Crop insurance fraud. Sec. 11018. Approval of costs for research and development. Sec. 11019. Whole farm risk management insurance. Sec. 11020. Study of food safety insurance. Sec. 11021. Crop insurance for livestock. Sec. 11022. Margin coverage for catfish. Sec. 11023. Poultry business disruption insurance policy. Sec. 11024. Study of crop insurance for seafood harvesters. Sec. 11025. Biomass and sweet sorghum energy crop insurance policies. Sec. 11026. Alfalfa crop insurance policy. Sec. 11027. Crop insurance for organic crops. Sec. 11028. Research and development. Sec. 11029. Pilot programs. Sec. 11030. Index-based weather insurance pilot program. Sec. 11031. Enhancing producer self-help through farm financial benchmarking. Sec. 11032. Beginning farmer and rancher provisions. Sec. 11033. Limitation on premium subsidy based on average adjusted gross income. Sec. 11034. Agricultural management assistance, risk management education, and organic certification cost share assistance. Sec. 11035. Crop production on native sod. Sec. 11036. Technical amendments. Sec. 11037. Greater accessibility for crop insurance. Sec. 11038. GAO crop insurance fraud report. TITLE XII—Miscellaneous Subtitle A—Socially disadvantaged producers and limited resource producers Sec. 12001. Outreach and assistance for socially disadvantaged farmers and ranchers and veteran farmers and ranchers. Sec. 12002. Socially disadvantaged farmers and ranchers policy research center. Sec. 12003. Office of Advocacy and Outreach. Subtitle B—Livestock Sec. 12101. Wildlife reservoir zoonotic disease initiative. Sec. 12102. Trichinae certification program. Sec. 12103. National Aquatic Animal Health Plan. Sec. 12104. Sheep production and marketing grant program. Sec. 12105. Feral swine eradication pilot program. Sec. 12106. National animal health laboratory network. Sec. 12107. National poultry improvement plan (NPIP). Subtitle C—Other miscellaneous provisions Sec. 12201. Military Veterans Agricultural Liaison. Sec. 12202. Information gathering. Sec. 12203. Grants to improve supply, stability, safety, and training of agricultural labor force. Sec. 12204. Noninsured crop assistance program. Sec. 12205. Bioenergy coverage in noninsured crop assistance program. Sec. 12206. Regional economic and infrastructure development. Sec. 12207. Office of Tribal Relations. Sec. 12208. Acer access and development program. Sec. 12209. Prohibition on attending an animal fight or causing a minor to attend an animal fight; enforcement of animal fighting provisions. Sec. 12210. Pima cotton trust fund. Sec. 12211. Agriculture wool apparel manufacturers trust fund. Sec. 12212. Citrus disease research and development trust fund.

2.

Definition of Secretary

In this Act, the term Secretary means the Secretary of Agriculture.

. 3

General rural development provisions

3701.

General provisions for loans and grants

(a)

Period for repayment

Unless otherwise specifically provided for in this subtitle, the period for repayment of a loan under this subtitle shall not exceed 40 years. (b)

Interest rates

(1)

In general

Except as otherwise provided in this title, the interest rate on a loan under this subtitle shall be determined by the Secretary at a rate— (A)not to exceed a sum obtained by adding— (i)the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturity of the loan; and (ii)an amount not to exceed 1 percent, as determined by the Secretary; and (B)adjusted to the nearest 1/8 of 1 percent. (2)

Water and waste facility loans and community facilities loans

(A)

In general

Notwithstanding any provision of State law limiting the rate or amount of interest that may be charged, taken, received, or reserved, except as provided in subparagraph (C) and paragraph (4), the interest rate on a loan (other than a guaranteed loan) to a public body or nonprofit association (including an Indian tribe) for a water or waste disposal facility or essential community facility shall be determined by the Secretary at a rate not to exceed— (i)the current market yield on outstanding municipal obligations with remaining periods to maturity comparable to the average maturity for the loan, and adjusted to the nearest 1/8 of 1 percent; (ii)5 percent per year for a loan that is for the upgrading of a facility or construction of a new facility as required to meet applicable health or sanitary standards in— (I)an area in which the median family income of the persons to be served by the facility is below the poverty line (as defined in section 673 of the Community Services Block Grant Act (42 U.S.C. 9902)); and (II)any areas the Secretary may designate in which a significant percentage of the persons to be served by the facilities are low income persons, as determined by the Secretary; and (iii)7 percent per year for a loan for a facility that does not qualify for the 5 percent per year interest rate prescribed in clause (ii) but that is located in an area in a State in which the median household income of the persons to be served by the facility does not exceed 100 percent of the statewide nonmetropolitan median household income for the State. (B)

Health care and related facilities

Notwithstanding subparagraph (A), the Secretary shall establish a rate for a loan for a health care or related facility that is— (i)based solely on the income of the area to be served; and (ii)otherwise consistent with subparagraph (A). (C)

Interest rates for water and waste disposal facilities loans

(i)

In general

Except as provided in clause (ii) and notwithstanding subparagraph (A), in the case of a direct loan for a water or waste disposal facility— (I)in the case of a loan that would be subject to the 5 percent interest rate limitation under subparagraph (A), the Secretary shall establish the interest rate at a rate that is equal to 60 percent of the current market yield for outstanding municipal obligations with remaining periods to maturity comparable to the average maturity of the loan, adjusted to the nearest 1/8 of 1 percent; and (II)in the case of a loan that would be subject to the 7 percent limitation under subparagraph (A), the Secretary shall establish the interest rate at a rate that is equal to 80 percent of the current market yield for outstanding municipal obligations with remaining periods to maturity comparable to the average maturity of the loan, adjusted to the nearest 1/8 of 1 percent. (ii)

Exception

Clause (i) does not apply to a loan for a specific project that is the subject of a loan that has been approved, but not closed, as of the date of enactment of the Agriculture Reform, Food, and Jobs Act of 2013. (3)

Interest rates on business and other loans

(A)

In general

Except as provided in paragraph (4), the interest rates on loans under sections 3501(a)(1) (other than guaranteed loans and loans as described in paragraph (2)(A)) shall be as determined by the Secretary in accordance with subparagraph (B). (B)

Minimum rate

The interest rates described in subparagraph (A) shall be not less than the sum obtained by adding— (i)such rates as determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted in the judgment of the Secretary of the Treasury to provide for rates comparable to the rates prevailing in the private market for similar loans and considering the insurance by the Secretary of the loans; and (ii)an additional charge, prescribed by the Secretary, to cover the losses of the Secretary and cost of administration, which shall be deposited in the Rural Development Insurance Fund, and further adjusted to the nearest 1/8 of 1 percent. (4)

Interest rates adjustments

(A)

Adjustments

Notwithstanding any other provision of this subsection, in the case of loans (other than guaranteed loans) made or guaranteed under the authorities of this title specified in subparagraph (C) for activities that involve the use of prime farmland, the interest rates shall be the interest rates otherwise applicable under this section increased by 2 percent per year. (B)

Prime farmland

(i)

In general

Wherever practicable, construction by a State, municipality, or other political subdivision of local government that is supported by loans described in subparagraph (A) shall be placed on land that is not prime farmland, in order to preserve the maximum practicable quantity of prime farmlands for production of food and fiber. (ii)

Increased rate

In any case in which other options exist for the siting of construction described in clause (i) and the governmental authority still desires to carry out the construction on prime farmland, the 2-percent interest rate increase provided by this paragraph shall apply, but that increased interest rate shall not apply where such other options do not exist. (C)

Applicable authorities

The authorities referred to in subparagraph (A) are— (i)the provisions of section 3502(a) relating to loans for recreational developments and essential community facilities; (ii)section 3601(e)(2)(A); and (iii)section 3601(c). (c)

Payment of charges

A borrower of a loan made or guaranteed under this subtitle shall pay such fees and other charges as the Secretary may require, and prepay to the Secretary such taxes and insurance as the Secretary may require, on such terms and conditions as the Secretary may prescribe. (d)

Security

(1)

In general

The Secretary shall take as security for an obligation entered into in connection with a loan made under this subtitle such security as the Secretary may require. (2)

Liens to United States

An instrument for security under paragraph (1) may constitute a lien running to the United States notwithstanding the fact that the note for the security may be held by a lender other than the United States. (3)

Multiple loans

A borrower may use the same collateral to secure 2 or more loans made or guaranteed under this subtitle, except that the outstanding amount of the loans may not exceed the total value of the collateral. (e)

Legal counsel for small loans

In the case of a loan of less than $500,000 made or guaranteed under section 3501 that is evidenced by a note or mortgage (as distinguished from a bond issue), the borrower shall not be required to appoint bond counsel to review the legal validity of the loan if the Secretary has available legal counsel to perform the review.

3702.

Strategic economic and community development

(a)

Priority

In the case of any rural development program authorized by this subtitle, the Secretary may give priority to applications that are otherwise eligible and support strategic community and economic development plans on a multijurisdictional basis, as approved by the Secretary. (b)

Evaluation

In evaluating strategic applications, the Secretary shall give a higher priority to strategic applications for a plan described in subsection (a) that demonstrate— (1)the plan was developed through the collaboration of multiple stakeholders in the service area of the plan, including the participation of combinations of stakeholders such as State, local, and tribal governments, nonprofit institutions, institutions of higher education, and private entities; (2)an understanding of the applicable regional resources that could support the plan, including natural resources, human resources, infrastructure, and financial resources; (3)investment from other Federal agencies; (4)investment from philanthropic organizations; and (5)clear objectives for the plan and the ability to establish measurable performance measures and to track progress toward meeting the objectives. (c)

Funds

(1)

In general

Subject to paragraph (3), the Secretary may reserve for projects that support multijurisdictional strategic community and economic development plans described in subsection (a) an amount that does not exceed— (A)20 percent of the funds made available for a fiscal year for a functional category described in paragraph (2); and (B)15 percent of the total funds available for all functional categories. (2)

Functional categories

The function categories described in this subsection are the following: (A)

Rural community facilities

The rural community development category consists of all amounts made available for community facility grants and direct and guaranteed loans under section 3502. (B)

Rural utilities

The rural utilities category consists of all amounts made available for— (i)water or waste disposal grants or direct or guaranteed loans under section 3501(a); (ii)emergency community water assistance grants under section 3501(e)(2); (iii)solid waste management grants under section 3501(e)(4); or (iv)rural water or wastewater technical assistance and training grants under section 3501(e)(5). (C)

Rural business and cooperative development

The rural business and cooperative development category consists of all amounts made available for— (i)rural business opportunity grants, rural business enterprise grants, or rural educational network grants under section 3601(a); or (ii)business and industry direct and guaranteed loans under section 3601(e). (3)

Limitation

The reservation of funds described in paragraph (2) may only extend through June 30 of the fiscal year in which the funds were first made available.

3703.

Guaranteed rural development loans

(a)

In general

The Secretary may provide financial assistance to a borrower for a purpose provided in this subtitle by guaranteeing a loan made by any Federal or State chartered bank, savings and loan association, cooperative lending agency, or other legally organized lending agency. (b)

Interest rate

The interest rate payable by a borrower on the portion of a guaranteed loan that is sold by a lender to the secondary market under this subtitle may be lower than the interest rate charged on the portion retained by the lender. (c)

Maximum guarantee of 90 percent

Except as provided in subsections (d) and (e), a loan guarantee under this subtitle shall be for not more than 90 percent of the principal and interest due on the loan. (d)

Refinanced loans guaranteed at 95 percent

The Secretary shall guarantee 95 percent of— (1)in the case of a loan that solely refinances a direct loan made under this subtitle, the principal and interest due on the loan on the date of the refinancing; or (2)in the case of a loan that is used for multiple purposes, the portion of the loan that refinances the principal and interest due on a direct loan made under this subtitle that is outstanding on the date on which the loan is guaranteed. (e)

Risk of loss

(1)

In general

Subject to subsection (b), the Secretary may not make a loan under section 3501 or 3601 unless the Secretary determines that no other lender is willing to make the loan and assume 10 percent of the potential loss to be sustained from the loan. (2)

Exception for nonprofit groups

Paragraph (1) shall not apply to a public body or nonprofit association, including an Indian tribe.

3704.

Rural Development Insurance Fund

(a)

Definition of rural development loan

In this section, the term rural development loan means a loan provided for by section 3501 or 3601. (b)

Establishment

There is established in the Treasury of the United States a fund to be known as the Rural Development Insurance Fund that shall be used by the Secretary to discharge the obligations of the Secretary under contracts making or guaranteeing rural development loans.

3705.

Rural economic area partnership zones

(a)

In general

The Secretary may designate additional areas as rural economic area partnership zones to be assisted under this chapter— (1)through an open, competitive process; and (2)with priority given to rural areas— (A)with excessive unemployment or underemployment, a high percentage of low-income residents, or high rates of outmigration, as determined by the Secretary; and (B)that the Secretary determines have a substantial need for assistance. (b)

Requirements

The Secretary shall carry out those rural economic area partnership zones administratively in effect on the date of enactment of the Agriculture Reform, Food, and Jobs Act of 2013 in accordance with the terms and conditions contained in the memoranda of agreement entered into by the Secretary for the rural economic area partnership zones.

3706.

Streamlining applications and improving accessibility of rural development programs

The Secretary shall expedite the process of creating user-friendly and accessible application forms and procedures prioritizing programs and applications at the individual applicant level with an emphasis on utilizing current technology including online applications and submission processes.

3707.

State Rural Development Partnership

(a)

Definitions

In this section: (1)

Agency with rural responsibilities

The term agency with rural responsibilities means any executive agency (as defined in section 105 of title 5, United States Code) that implements a Federal law, or administers a program, targeted at or having a significant impact on rural areas. (2)

Partnership

The term Partnership means the State Rural Development Partnership continued by subsection (b). (3)

State rural development council

The term State rural development council means a State rural development council that meets the requirements of subsection (c). (b)

Partnership

(1)

In general

The Secretary shall support the State Rural Development Partnership comprised of State rural development councils. (2)

Purposes

The purposes of the Partnership are to empower and build the capacity of States, regions, and rural communities to design flexible and innovative responses to their rural development needs in a manner that maximizes collaborative public- and private-sector cooperation and minimizes regulatory redundancy. (3)

Coordinating panel

A panel consisting of representatives of State rural development councils shall be established— (A)to lead and coordinate the strategic operation and policies of the Partnership; and (B)to facilitate effective communication among the members of the Partnership, including the sharing of best practices. (4)

Role of Federal government

The role of the Federal Government in the Partnership may be that of a partner and facilitator, with Federal agencies authorized— (A)to cooperate with States to implement the Partnership; (B)to provide States with the technical and administrative support necessary to plan and implement tailored rural development strategies to meet local needs; (C)to ensure that the head of each agency with rural responsibilities directs appropriate field staff to participate fully with the State rural development council within the jurisdiction of the field staff; and (D)to enter into cooperative agreements with, and to provide grants and other assistance to, State rural development councils. (c)

State rural development councils

(1)

Establishment

Notwithstanding chapter 63 of title 31, United States Code, each State may elect to participate in the Partnership by entering into an agreement with the Secretary to recognize a State rural development council. (2)

Composition

A State rural development council shall— (A)be composed of representatives of Federal, State, local, and tribal governments, nonprofit organizations, regional organizations, the private sector, and other entities committed to rural advancement; and (B)have a nonpartisan and nondiscriminatory membership that— (i)is broad and representative of the economic, social, and political diversity of the State; and (ii)shall be responsible for the governance and operations of the State rural development council. (3)

Duties

A State rural development council shall— (A)facilitate collaboration among Federal, State, local, and tribal governments and the private and nonprofit sectors in the planning and implementation of programs and policies that have an impact on rural areas of the State; (B)monitor, report, and comment on policies and programs that address, or fail to address, the needs of the rural areas of the State; (C)as part of the Partnership, facilitate the development of strategies to reduce or eliminate conflicting or duplicative administrative or regulatory requirements of Federal, State, local, and tribal governments; and (D)(i)provide to the Secretary an annual plan with goals and performance measures; and (ii)submit to the Secretary an annual report on the progress of the State rural development council in meeting the goals and measures. (4)

Federal participation in State rural development councils

(A)

In general

A State Director for Rural Development of the Department of Agriculture, other employees of the Department, and employees of other Federal agencies with rural responsibilities shall fully participate as voting members in the governance and operations of State rural development councils (including activities related to grants, contracts, and other agreements in accordance with this section) on an equal basis with other members of the State rural development councils. (B)

Conflicts

Participation by a Federal employee in a State rural development council in accordance with this paragraph shall not constitute a violation of section 205 or 208 of title 18, United States Code. (d)

Administrative support of the partnership

(1)

Detail of employees

(A)

In general

In order to provide experience in intergovernmental collaboration, the head of an agency with rural responsibilities that elects to participate in the Partnership may, and is encouraged to, detail to the Secretary for the support of the Partnership 1 or more employees of the agency with rural responsibilities without reimbursement for a period of up to 1 year. (B)

Civil service status

The detail shall be without interruption or loss of civil service status or privilege. (2)

Additional support

The Secretary may provide for any additional support staff to the Partnership as the Secretary determines to be necessary to carry out the duties of the Partnership. (3)

Intermediaries

The Secretary may enter into a contract with a qualified intermediary under which the intermediary shall be responsible for providing administrative and technical assistance to a State rural development council, including administering the financial assistance available to the State rural development council. (e)

Matching requirements for State rural development councils

(1)

In general

Except as provided in paragraph (2), a State rural development council shall provide matching funds, or in-kind goods or services, to support the activities of the State rural development council in an amount that is not less than 33 percent of the amount of Federal funds received from a Federal agency under subsection (f)(2). (2)

Exceptions to matching requirement for certain Federal funds

Paragraph (1) shall not apply to funds, grants, funds provided under contracts or cooperative agreements, gifts, contributions, or technical assistance received by a State rural development council from a Federal agency that are used— (A)to support 1 or more specific program or project activities; or (B)to reimburse the State rural development council for services provided to the Federal agency providing the funds, grants, funds provided under contracts or cooperative agreements, gifts, contributions, or technical assistance. (3)

Department's share

The Secretary shall develop a plan to decrease, over time, the share of the Department of Agriculture of the cost of the core operations of State rural development councils. (f)

Funding

(1)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2014 through 2018. (2)

Federal agencies

(A)

In general

Notwithstanding any other provision of law limiting the ability of an agency, along with other agencies, to provide funds to a State rural development council in order to carry out the purposes of this section, a Federal agency may make grants, gifts, or contributions to, provide technical assistance to, or enter into contracts or cooperative agreements with, a State rural development council. (B)

Assistance

Federal agencies are encouraged to use funds made available for programs that have an impact on rural areas to provide assistance to, and enter into contracts with, a State rural development council, as described in subparagraph (A). (3)

Contributions

A State rural development council may accept private contributions. (g)

Termination

The authority provided under this section shall terminate on September 30, 2018.

4

Delta Regional Authority

3801.

Definitions

In this chapter: (1)

Authority

The term Authority means the Delta Regional Authority established by section 3802. (2)

Federal grant program

The term Federal grant program means a Federal grant program to provide assistance in— (A)acquiring or developing land; (B)constructing or equipping a highway, road, bridge, or facility; or (C)carrying out other economic development activities. (3)

Region

The term region means the Lower Mississippi (as defined in section 4 of the Delta Development Act (42 U.S.C. 3121 note; Public Law 100–460)).

3802.

Delta Regional Authority

(a)

Establishment

(1)

In general

There is established the Delta Regional Authority. (2)

Composition

The Authority shall be composed of— (A)a Federal member, to be appointed by the President, with the advice and consent of the Senate; and (B)the Governor (or a designee of the Governor) of each State in the region that elects to participate in the Authority. (3)

Cochairpersons

The Authority shall be headed by— (A)the Federal member, who shall serve as— (i)the Federal cochairperson; and (ii)a liaison between the Federal Government and the Authority; and (B)a State cochairperson, who shall be— (i)a Governor of a participating State in the region; and (ii)elected by the State members for a term of not less than 1 year. (4)

Alabama

Notwithstanding any other provision of law, the State of Alabama shall be a full member of the Authority and shall be entitled to all rights and privileges that the membership affords to all other participating States in the Authority. (b)

Alternate members

(1)

State alternates

The State member of a participating State may have a single alternate, who shall be— (A)a resident of that State; and (B)appointed by the Governor of the State. (2)

Alternate Federal cochairperson

The President shall appoint an alternate Federal cochairperson. (3)

Quorum

A State alternate shall not be counted toward the establishment of a quorum of the Authority in any instance in which a quorum of the State members is required to be present. (4)

Delegation of power

No power or responsibility of the Authority specified in paragraphs (2) and (3) of subsection (c), and no voting right of any Authority member, shall be delegated to any person— (A)who is not an Authority member; or (B)who is not entitled to vote in Authority meetings. (c)

Voting

(1)

In general

A decision by the Authority shall require a majority vote of the Authority (not including any member representing a State that is delinquent under subsection (g)(2)(C)) to be effective. (2)

Quorum

A quorum of State members shall be required to be present for the Authority to make any policy decision, including— (A)a modification or revision of an Authority policy decision; (B)approval of a State or regional development plan; and (C)any allocation of funds among the States. (3)

Project and grant proposals

The approval of project and grant proposals shall be— (A)a responsibility of the Authority; and (B)conducted in accordance with section 3809. (4)

Voting by alternate members

An alternate member shall vote in the case of the absence, death, disability, removal, or resignation of the Federal or State representative for which the alternate member is an alternate. (d)

Duties

The Authority shall— (1)develop, on a continuing basis, comprehensive and coordinated plans and programs to establish priorities and approve grants for the economic development of the region, giving due consideration to other Federal, State, and local planning and development activities in the region; (2)review, and where appropriate amend, priorities in a development plan for the region (including 5-year regional outcome targets); (3)assess the needs and assets of the region based on available research, demonstrations, investigations, assessments, and evaluations of the region prepared by Federal, State, and local agencies, universities, local development districts, and other nonprofit groups; (4)formulate and recommend to the Governors and legislatures of States that participate in the Authority forms of interstate cooperation; (5)work with State and local agencies in developing appropriate model legislation; (6)(A)enhance the capacity of, and provide support for, local development districts in the region; or (B)if no local development district exists in an area in a participating State in the region, foster the creation of a local development district; (7)encourage private investment in industrial, commercial, and other economic development projects in the region; and (8)cooperate with and assist State governments with economic development programs of participating States. (e)

Administration

In carrying out subsection (d), the Authority may— (1)hold such hearings, sit and act at such times and places, take such testimony, receive such evidence, and print or otherwise reproduce and distribute a description of the proceedings and reports on actions by the Authority as the Authority considers appropriate; (2)authorize, through the Federal or State cochairperson or any other member of the Authority designated by the Authority, the administration of oaths if the Authority determines that testimony should be taken or evidence received under oath; (3)request from any Federal, State, or local department or agency such information as may be available to or procurable by the department or agency that may be of use to the Authority in carrying out duties of the Authority; (4)adopt, amend, and repeal bylaws, rules, and regulations governing the conduct of Authority business and the performance of Authority duties; (5)request the head of any Federal department or agency to detail to the Authority such personnel as the Authority requires to carry out duties of the Authority, each such detail to be without loss of seniority, pay, or other employee status; (6)request the head of any State department or agency or local government to detail to the Authority such personnel as the Authority requires to carry out duties of the Authority, each such detail to be without loss of seniority, pay, or other employee status; (7)provide for coverage of Authority employees in a suitable retirement and employee benefit system by— (A)making arrangements or entering into contracts with any participating State government; or (B)otherwise providing retirement and other employee benefit coverage; (8)accept, use, and dispose of gifts or donations of services or real, personal, tangible, or intangible property; (9)enter into and perform such contracts, leases, cooperative agreements, or other transactions as are necessary to carry out Authority duties, including any contracts, leases, or cooperative agreements with— (A)any department, agency, or instrumentality of the United States; (B)any State (including a political subdivision, agency, or instrumentality of the State); or (C)any person, firm, association, or corporation; and (10)establish and maintain a central office and field offices at such locations as the Authority may select. (f)

Federal agency cooperation

A Federal agency shall— (1)cooperate with the Authority; and (2)provide, on request of the Federal cochairperson, appropriate assistance in carrying out this chapter, in accordance with applicable Federal laws (including regulations). (g)

Administrative expenses

(1)

In general

Administrative expenses of the Authority (except for the expenses of the Federal cochairperson, including expenses of the alternate and staff of the Federal cochairperson, which shall be paid solely by the Federal Government) shall be paid— (A)by the Federal Government, in an amount equal to 50 percent of the administrative expenses; and (B)by the States in the region participating in the Authority, in an amount equal to 50 percent of the administrative expenses. (2)

State share

(A)

In general

The share of administrative expenses of the Authority to be paid by each State shall be determined by the Authority. (B)

No Federal participation

The Federal cochairperson shall not participate or vote in any decision under subparagraph (A). (C)

Delinquent States

If a State is delinquent in payment of the State’s share of administrative expenses of the Authority under this subsection— (i)no assistance under this chapter shall be furnished to the State (including assistance to a political subdivision or a resident of the State); and (ii)no member of the Authority from the State shall participate or vote in any action by the Authority. (h)

Compensation

(1)

Federal cochairperson

The Federal cochairperson shall be compensated by the Federal Government at level III of the Executive Schedule in subchapter II of chapter 53 of title 5, United States Code. (2)

Alternate Federal cochairperson

The alternate Federal cochairperson— (A)shall be compensated by the Federal Government at level V of the Executive Schedule described in paragraph (1); and (B)when not actively serving as an alternate for the Federal cochairperson, shall perform such functions and duties as are delegated by the Federal cochairperson. (3)

State members and alternates

(A)

In general

A State shall compensate each member and alternate representing the State on the Authority at the rate established by law of the State. (B)

No additional compensation

No State member or alternate member shall receive any salary, or any contribution to or supplementation of salary from any source other than the State for services provided by the member or alternate to the Authority. (4)

Detailed employees

(A)

In general

No person detailed to serve the Authority under subsection (e)(6) shall receive any salary or any contribution to or supplementation of salary for services provided to the Authority from— (i)any source other than the State, local, or intergovernmental department or agency from which the person was detailed; or (ii)the Authority. (B)

Violation

Any person that violates this paragraph shall be fined not more than $5,000, imprisoned not more than 1 year, or both. (C)

Applicable law

The Federal cochairperson, the alternate Federal cochairperson, and any Federal officer or employee detailed to duty on the Authority under subsection (e)(5) shall not be subject to subparagraph (A), but shall remain subject to sections 202 through 209 of title 18, United States Code. (5)

Additional personnel

(A)

Compensation

(i)

In general

The Authority may appoint and fix the compensation of an executive director and such other personnel as are necessary to enable the Authority to carry out the duties of the Authority. (ii)

Exception

Compensation under clause (i) shall not exceed the maximum rate for the Senior Executive Service under section 5382 of title 5, United States Code, including any applicable locality-based comparability payment that may be authorized under section 5304(h)(2)(C) of that title. (B)

Executive director

The executive director shall be responsible for— (i)the carrying out of the administrative duties of the Authority; (ii)direction of the Authority staff; and (iii)such other duties as the Authority may assign. (C)

No Federal employee status

No member, alternate, officer, or employee of the Authority (except the Federal cochairperson of the Authority, the alternate and staff for the Federal cochairperson, and any Federal employee detailed to the Authority under subsection (e)(5)) shall be considered to be a Federal employee for any purpose. (i)

Conflicts of interest

(1)

In general

Except as provided under paragraph (2), no State member, alternate, officer, or employee of the Authority shall participate personally and substantially as a member, alternate, officer, or employee of the Authority, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in any proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other matter in which, to knowledge of the member, alternate, officer, or employee, there is a financial interest of— (A)the member, alternate, officer, or employee; (B)the spouse, minor child, partner, or organization (other than a State or political subdivision of the State) of the member, alternate, officer, or employee, in which the member, alternate, officer, or employee is serving as officer, director, trustee, partner, or employee; or (C)any person or organization with whom the member, alternate, officer, or employee is negotiating or has any arrangement concerning prospective employment. (2)

Disclosure

Paragraph (1) shall not apply if the State member, alternate, officer, or employee— (A)immediately advises the Authority of the nature and circumstances of the proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other particular matter presenting a potential conflict of interest; (B)makes full disclosure of the financial interest; and (C)before the proceeding concerning the matter presenting the conflict of interest, receives a written determination by the Authority that the interest is not so substantial as to be likely to affect the integrity of the services that the Authority may expect from the State member, alternate, officer, or employee. (3)

Violation

Any person that violates this subsection shall be fined not more than $10,000, imprisoned not more than 2 years, or both. (j)

Validity of contracts, loans, and grants

The Authority may declare void any contract, loan, or grant of or by the Authority in relation to which the Authority determines that there has been a violation of any provision under subsection (h)(4), subsection (i), or sections 202 through 209 of title 18, United States Code.

3803.

Economic and community development grants

(a)

In general

The Authority may approve grants to States and public and nonprofit entities for projects, approved in accordance with section 3809— (1)to develop the transportation infrastructure of the region for the purpose of facilitating economic development in the region (except that grants for this purpose may only be made to a State or local government); (2)to assist the region in obtaining the job training, employment-related education, and business development (with an emphasis on entrepreneurship) that are needed to build and maintain strong local economies; (3)to provide assistance to severely distressed and underdeveloped areas that lack financial resources for improving basic public services; (4)to provide assistance to severely distressed and underdeveloped areas that lack financial resources for equipping industrial parks and related facilities; and (5)to otherwise achieve the purposes of this chapter. (b)

Funding

(1)

In general

Funds for grants under subsection (a) may be provided— (A)entirely from appropriations to carry out this section; (B)in combination with funds available under another Federal or Federal grant program; or (C)from any other source. (2)

Priority of funding

To best build the foundations for long-term economic development and to complement other Federal and State resources in the region, Federal funds available under this chapter shall be focused on the activities in the following order or priority: (A)Basic public infrastructure in distressed counties and isolated areas of distress. (B)Transportation infrastructure for the purpose of facilitating economic development in the region. (C)Business development, with emphasis on entrepreneurship. (D)Job training or employment-related education, with emphasis on use of existing public educational institutions located in the region.

3804.

Supplements to Federal grant programs

(a)

Finding

Congress finds that certain States and local communities of the region, including local development districts, may be unable to take maximum advantage of Federal grant programs for which the States and communities are eligible because— (1)the States or communities lack the economic resources to provide the required matching share; or (2)there are insufficient funds available under the applicable Federal law authorizing the Federal grant program to meet pressing needs of the region. (b)

Federal grant program funding

Notwithstanding any provision of law limiting the Federal share, the areas eligible for assistance, or the authorizations of appropriations of any Federal grant program, and in accordance with subsection (c), the Authority, with the approval of the Federal cochairperson and with respect to a project to be carried out in the region— (1)may increase the Federal share of the costs of a project under the Federal grant program to not more than 90 percent (except as provided in section 3806(b)); and (2)shall use amounts made available to carry out this chapter to pay the increased Federal share. (c)

Certifications

(1)

In general

In the case of any project for which all or any portion of the basic Federal share of the costs of the project is proposed to be paid under this section, no Federal contribution shall be made until the Federal official administering the Federal law that authorizes the Federal grant program certifies that the project— (A)meets (except as provided in subsection (b)) the applicable requirements of the applicable Federal grant program; and (B)could be approved for Federal contribution under the Federal grant program if funds were available under the law for the project. (2)

Certification by authority

(A)

In general

The certifications and determinations required to be made by the Authority for approval of projects under this Act in accordance with section 3809 shall be— (i)controlling; and (ii)accepted by the Federal agencies. (B)

Acceptance by Federal cochairperson

In the case of any project described in paragraph (1), any finding, report, certification, or documentation required to be submitted with respect to the project to the head of the department, agency, or instrumentality of the Federal Government responsible for the administration of the Federal grant program under which the project is carried out shall be accepted by the Federal cochairperson.

3805.

Local development districts; certification and administrative expenses

(a)

Definition of local development district

In this section, the term local development district means an entity that— (1)is— (A)a planning district in existence on the date of enactment of the Agriculture Reform, Food, and Jobs Act of 2013 that is recognized by the Secretary; or (B)if an entity described in subparagraph (A) does not exist— (i)organized and operated in a manner that ensures broad-based community participation and an effective opportunity for other nonprofit groups to contribute to the development and implementation of programs in the region; (ii)governed by a policy board with at least a simple majority of members consisting of elected officials or employees of a general purpose unit of local government who have been appointed to represent the government; (iii)certified to the Authority as having a charter or authority that includes the economic development of counties or parts of counties or other political subdivisions within the region— (I)by the Governor of each State in which the entity is located; or (II)by the State officer designated by the appropriate State law to make the certification; and (iv)(I)a nonprofit incorporated body organized or chartered under the law of the State in which the entity is located; (II)a nonprofit agency or instrumentality of a State or local government; (III)a public organization established before December 21, 2000, under State law for creation of multi-jurisdictional, area-wide planning organizations; or (IV)a nonprofit association or combination of bodies, agencies, and instrumentalities described in subclauses (I) through (III); and (2)has not, as certified by the Federal cochairperson— (A)inappropriately used Federal grant funds from any Federal source; or (B)appointed an officer who, during the period in which another entity inappropriately used Federal grant funds from any Federal source, was an officer of the other entity. (b)

Grants to local development districts

(1)

In general

The Authority shall make grants for administrative expenses under this section. (2)

Conditions for grants

(A)

Maximum amount

The amount of any grant awarded under paragraph (1) shall not exceed 80 percent of the administrative expenses of the local development district receiving the grant. (B)

Maximum period

No grant described in paragraph (1) shall be awarded to a State agency certified as a local development district for a period greater than 3 years. (C)

Local share

The contributions of a local development district for administrative expenses may be in cash or in kind, fairly evaluated, including space, equipment, and services. (c)

Duties of local development districts

A local development district shall— (1)operate as a lead organization serving multicounty areas in the region at the local level; and (2)serve as a liaison between State and local governments, nonprofit organizations (including community-based groups and educational institutions), the business community, and citizens that— (A)are involved in multijurisdictional planning; (B)provide technical assistance to local jurisdictions and potential grantees; and (C)provide leadership and civic development assistance.

3806.

Distressed counties and areas and nondistressed counties

(a)

Designations

Each year, the Authority, in accordance with such criteria as the Authority may establish, shall designate— (1)as distressed counties, counties in the region that are the most severely and persistently distressed and underdeveloped and have high rates of poverty or unemployment; (2)as nondistressed counties, counties in the region that are not designated as distressed counties under paragraph (1); and (3)as isolated areas of distress, areas located in nondistressed counties (as designated under paragraph (2)) that have high rates of poverty or unemployment. (b)

Distressed counties

(1)

In general

The Authority shall allocate at least 75 percent of the appropriations made available under section 3813 for programs and projects designed to serve the needs of distressed counties and isolated areas of distress in the region. (2)

Funding limitations

The funding limitations under section 3804(b) shall not apply to a project providing transportation or basic public services to residents of 1 or more distressed counties or isolated areas of distress in the region. (c)

Nondistressed counties

(1)

In general

Except as provided in this subsection, no funds shall be provided under this chapter for a project located in a county designated as a nondistressed county under subsection (a)(2). (2)

Exceptions

(A)

In general

The funding prohibition under paragraph (1) shall not apply to grants to fund the administrative expenses of local development districts under section 3805(b). (B)

Multicounty projects

The Authority may waive the application of the funding prohibition under paragraph (1) to a multicounty project that includes participation by a nondistressed county; or any other type of project if the Authority determines that the project could bring significant benefits to areas of the region outside a nondistressed county. (C)

Isolated areas of distress

For a designation of an isolated area of distress for assistance to be effective, the designation shall be supported— (i)by the most recent Federal data available; or (ii)if no recent Federal data are available, by the most recent data available through the government of the State in which the isolated area of distress is located. (d)

Transportation and basic public infrastructure

The Authority shall allocate at least 50 percent of any funds made available under section 3813 for transportation and basic public infrastructure projects authorized under paragraphs (1) and (3) of section 3803(a).

3807.

Development planning process

(a)

State development plan

In accordance with policies established by the Authority, each State member shall submit a development plan for the area of the region represented by the State member. (b)

Content of plan

A State development plan submitted under subsection (a) shall reflect the goals, objectives, and priorities identified in the regional development plan developed under section 3802(d)(2). (c)

Consultation with interested local parties

In carrying out the development planning process (including the selection of programs and projects for assistance), a State may— (1)consult with— (A)local development districts; and (B)local units of government; and (2)take into consideration the goals, objectives, priorities, and recommendations of the entities described in paragraph (1). (d)

Public participation

(1)

In general

The Authority and applicable State and local development districts shall encourage and assist, to the maximum extent practicable, public participation in the development, revision, and implementation of all plans and programs under this chapter. (2)

Regulations

The Authority shall develop guidelines for providing public participation described in paragraph (1), including public hearings.

3808.

Program development criteria

(a)

In general

In considering programs and projects to be provided assistance under this chapter and in establishing a priority ranking of the requests for assistance provided by the Authority, the Authority shall follow procedures that ensure, to the maximum extent practicable, consideration of— (1)the relationship of the project or class of projects to overall regional development; (2)the per capita income and poverty and unemployment rates in an area; (3)the financial resources available to the applicants for assistance seeking to carry out the project, with emphasis on ensuring that projects are adequately financed to maximize the probability of successful economic development; (4)the importance of the project or class of projects in relation to other projects or classes of projects that may be in competition for the same funds; (5)the prospects that the project for which assistance is sought will improve, on a continuing rather than a temporary basis, the opportunities for employment, the average level of income, or the economic development of the area served by the project; and (6)the extent to which the project design provides for detailed outcome measurements by which grant expenditures and the results of the expenditures may be evaluated. (b)

No relocation assistance

(1)

In general

Except as provided in paragraph (2), no financial assistance authorized by this chapter shall be used to assist a person or entity in relocating from 1 area to another. (2)

Outside businesses

Financial assistance under this chapter may be used as otherwise authorized by this subtitle to attract businesses from outside the region to the region. (c)

Reduction of funds

Funds may be provided for a program or project in a State under this chapter only if the Authority determines that the level of Federal or State financial assistance provided under a law other than this chapter, for the same type of program or project in the same area of the State within the region, will not be reduced as a result of funds made available by this chapter.

3809.

Approval of development plans and projects

(a)

In general

A State or regional development plan or any multistate subregional plan that is proposed for development under this chapter shall be reviewed and approved by the Authority. (b)

Evaluation by State member

An application for a grant or any other assistance for a project under this chapter shall be made through and evaluated for approval by the State member of the Authority representing the applicant. (c)

Certification

An application for a grant or other assistance for a project shall be approved only on certification by the State member that the application for the project— (1)describes ways in which the project complies with any applicable State development plan; (2)meets applicable criteria under section 3808; (3)provides adequate assurance that the proposed project will be properly administered, operated, and maintained; and (4)otherwise meets the requirements of this chapter. (d)

Approval of grant applications

On certification by a State member of the Authority of an application for a grant or other assistance for a specific project under this section, an affirmative vote of the Authority under section 3802(c) shall be required for approval of the application.

3810.

Consent of States

Nothing in this chapter requires any State to engage in or accept any program under this chapter without the consent of the State.

3811.

Records

(a)

Records of the authority

(1)

In general

The Authority shall maintain accurate and complete records of all transactions and activities of the Authority. (2)

Availability

All records of the Authority shall be available for audit and examination by the Comptroller General of the United States and the Inspector General of the Department of Agriculture (including authorized representatives of the Comptroller General and the Inspector General of the Department of Agriculture). (b)

Records of recipients of Federal assistance

(1)

In general

A recipient of Federal funds under this chapter shall, as required by the Authority, maintain accurate and complete records of transactions and activities financed with Federal funds and report on the transactions and activities to the Authority. (2)

Availability

All records required under paragraph (1) shall be available for audit by the Comptroller General of the United States, the Inspector General of the Department of Agriculture, and the Authority (including authorized representatives of the Comptroller General, the Inspector General of the Department of Agriculture, and the Authority).

3812.

Annual report

Not later than 180 days after the end of each fiscal year, the Authority shall submit to the President and to Congress a report describing the activities carried out under this chapter.

3813.

Authorization of appropriations

(a)

In general

There is authorized to be appropriated to the Authority to carry out this chapter $30,000,000 for each of fiscal years 2014 through 2018, to remain available until expended. (b)

Administrative expenses

Not more than 5 percent of the amount appropriated under subsection (a) for a fiscal year shall be used for administrative expenses of the Authority.

3814.

Termination of authority

This chapter and the authority provided under this chapter expire on October 1, 2018.

5

Northern Great Plains Regional Authority

3821.

Definitions

In this chapter: (1)

Authority

The term Authority means the Northern Great Plains Regional Authority established by section 3822. (2)

Federal grant program

The term Federal grant program means a Federal grant program to provide assistance in— (A)implementing the recommendations of the Northern Great Plains Rural Development Commission established by the Northern Great Plains Rural Development Act (7 U.S.C. 2661 note; Public Law 103–318); (B)acquiring or developing land; (C)constructing or equipping a highway, road, bridge, or facility; (D)carrying out other economic development activities; or (E)conducting research activities related to the activities described in subparagraphs (A) through (D). (3)

Region

The term region means the States of Iowa, Minnesota, Missouri (other than counties included in the Delta Regional Authority), Nebraska, North Dakota, and South Dakota.

3822.

Northern Great Plains Regional Authority

(a)

Establishment

(1)

In general

There is established the Northern Great Plains Regional Authority. (2)

Composition

The Authority shall be composed of— (A)a Federal member, to be appointed by the President, by and with the advice and consent of the Senate; (B)the Governor (or a designee of the Governor) of each State in the region that elects to participate in the Authority; and (C)a member of an Indian tribe, who shall be a chairperson of an Indian tribe in the region or a designee of such a chairperson, to be appointed by the President, by and with the advice and consent of the Senate. (3)

Cochairpersons

The Authority shall be headed by— (A)the Federal member, who shall serve as— (i)the Federal cochairperson; and (ii)a liaison between the Federal Government and the Authority; (B)a State cochairperson, who shall be— (i)a Governor of a participating State in the region; and (ii)elected by the State members for a term of not less than 1 year; and (C)the member of an Indian tribe, who shall serve as— (i)the tribal cochairperson; and (ii)a liaison between the governments of Indian tribes in the region and the Authority. (4)

Failure to confirm

(A)

Federal member

Notwithstanding any other provision of this section, if a Federal member described in paragraph (2)(A) has not been confirmed by the Senate by not later than 180 days after the date of enactment of the Agriculture Reform, Food, and Jobs Act of 2013, the Authority may organize and operate without the Federal member. (B)

Tribal cochairperson

In the case of the tribal cochairperson, if no tribal cochairperson is confirmed by the Senate, the regional authority shall consult and coordinate with the leaders of Indian tribes in the region concerning the activities of the Authority, as appropriate. (b)

Alternate members

(1)

Alternate Federal cochairperson

The President shall appoint an alternate Federal cochairperson. (2)

State alternates

(A)

In general

The State member of a participating State may have a single alternate, who shall be— (i)a resident of that State; and (ii)appointed by the Governor of the State. (B)

Quorum

A State alternate member shall not be counted toward the establishment of a quorum of the members of the Authority in any case in which a quorum of the State members is required to be present. (3)

Alternate tribal cochairperson

The President shall appoint an alternate tribal cochairperson, by and with the advice and consent of the Senate. (4)

Delegation of power

No power or responsibility of the Authority specified in paragraphs (2) and (3) of subsection (c), and no voting right of any member of the Authority, shall be delegated to any person who is not— (A)a member of the Authority; or (B)entitled to vote in Authority meetings. (c)

Voting

(1)

In general

A decision by the Authority shall require a majority vote of the Authority (not including any member representing a State that is delinquent under subsection (g)(2)(D)) to be effective. (2)

Quorum

A quorum of State members shall be required to be present for the Authority to make any policy decision, including— (A)a modification or revision of an Authority policy decision; (B)approval of a State or regional development plan; and (C)any allocation of funds among the States. (3)

Project and grant proposals

The approval of project and grant proposals shall be— (A)a responsibility of the Authority; and (B)conducted in accordance with section 3830. (4)

Voting by alternate members

An alternate member shall vote in the case of the absence, death, disability, removal, or resignation of the Federal, State, or Indian tribe member for whom the alternate member is an alternate. (d)

Duties

The Authority shall— (1)develop, on a continuing basis, comprehensive and coordinated plans and programs for multistate cooperation to advance the economic and social well-being of the region and to approve grants for the economic development of the region, giving due consideration to other Federal, State, tribal, and local planning and development activities in the region; (2)review, and when appropriate amend, priorities in a development plan for the region (including 5-year regional outcome targets); (3)assess the needs and assets of the region based on available research, demonstrations, investigations, assessments, and evaluations of the region prepared by Federal, State, tribal, and local agencies, universities, regional and local development districts or organizations, and other nonprofit groups; (4)formulate and recommend to the Governors and legislatures of States that participate in the Authority forms of interstate cooperation for— (A)renewable energy development and transmission; (B)transportation planning and economic development; (C)information technology; (D)movement of freight and individuals within the region; (E)federally funded research at institutions of higher education; and (F)conservation land management; (5)work with State, tribal, and local agencies in developing appropriate model legislation; (6)enhance the capacity of, and provide support for, multistate development and research organizations, local development organizations and districts, and resource conservation districts in the region; (7)encourage private investment in industrial, commercial, renewable energy, and other economic development projects in the region; and (8)cooperate with and assist State governments with economic development programs of participating States. (e)

Administration

In carrying out subsection (d), the Authority may— (1)hold such hearings, sit and act at such times and places, take such testimony, receive such evidence, and print or otherwise reproduce and distribute a description of the proceedings and reports on actions by the Authority as the Authority considers appropriate; (2)authorize, through the Federal, State, or tribal cochairperson or any other member of the Authority designated by the Authority, the administration of oaths if the Authority determines that testimony should be taken or evidence received under oath; (3)request from any Federal, State, tribal, or local agency such information as may be available to or procurable by the agency that may be of use to the Authority in carrying out the duties of the Authority; (4)adopt, amend, and repeal bylaws and rules governing the conduct of business and the performance of duties of the Authority; (5)request the head of any Federal agency to detail to the Authority such personnel as the Authority requires to carry out duties of the Authority, each such detail to be without loss of seniority, pay, or other employee status; (6)request the head of any State agency, tribal government, or local government to detail to the Authority such personnel as the Authority requires to carry out duties of the Authority, each such detail to be without loss of seniority, pay, or other employee status; (7)provide for coverage of Authority employees in a suitable retirement and employee benefit system by— (A)making arrangements or entering into contracts with any participating State government or tribal government; or (B)otherwise providing retirement and other employee benefit coverage; (8)accept, use, and dispose of gifts or donations of services or real, personal, tangible, or intangible property; (9)enter into and perform such contracts, leases, cooperative agreements, or other transactions as are necessary to carry out Authority duties, including any contracts, leases, or cooperative agreements with— (A)any department, agency, or instrumentality of the United States; (B)any State (including a political subdivision, agency, or instrumentality of the State); (C)any Indian tribe in the region; or (D)any person, firm, association, or corporation; and (10)establish and maintain a central office and field offices at such locations as the Authority may select. (f)

Federal agency cooperation

A Federal agency shall— (1)cooperate with the Authority; and (2)provide, on request of a cochairperson, appropriate assistance in carrying out this chapter, in accordance with applicable Federal laws (including regulations). (g)

Administrative expenses

(1)

Federal share

The Federal share of the administrative expenses of the Authority shall be— (A)for fiscal year 2014, 100 percent; (B)for fiscal year 2015, 75 percent; and (C)for fiscal year 2016 and each fiscal year thereafter, 50 percent. (2)

Non-Federal share

(A)

In general

The non-Federal share of the administrative expenses of the Authority shall be paid by non-Federal sources in the States that participate in the Authority. (B)

Share paid by each State

The share of administrative expenses of the Authority to be paid by non-Federal sources in each State shall be determined by the Authority. (C)

No Federal participation

The Federal cochairperson shall not participate or vote in any decision under subparagraph (B). (D)

Delinquent States

If a State is delinquent in payment of the State’s share of administrative expenses of the Authority under this subsection— (i)no assistance under this chapter shall be provided to the State (including assistance to a political subdivision or a resident of the State); and (ii)no member of the Authority from the State shall participate or vote in any action by the Authority. (h)

Compensation

(1)

Federal and tribal cochairpersons

The Federal cochairperson and the tribal cochairperson shall be compensated by the Federal Government at the annual rate of basic pay prescribed for level III of the Executive Schedule in subchapter II of chapter 53 of title 5, United States Code. (2)

Alternate Federal and tribal cochairpersons

The alternate Federal cochairperson and the alternate tribal cochairperson— (A)shall be compensated by the Federal Government at the annual rate of basic pay prescribed for level V of the Executive Schedule described in paragraph (1); and (B)when not actively serving as an alternate, shall perform such functions and duties as are delegated by the Federal cochairperson or the tribal cochairperson, respectively. (3)

State members and alternates

(A)

In general

A State shall compensate each member and alternate representing the State on the Authority at the rate established by State law. (B)

No additional compensation

No State member or alternate member shall receive any salary, or any contribution to or supplementation of salary from any source other than the State for services provided by the member or alternate member to the Authority. (4)

Detailed employees

(A)

In general

No person detailed to serve the Authority under subsection (e)(6) shall receive any salary or any contribution to or supplementation of salary for services provided to the Authority from— (i)any source other than the State, tribal, local, or intergovernmental agency from which the person was detailed; or (ii)the Authority. (B)

Violation

Any person that violates this paragraph shall be fined not more than $5,000, imprisoned not more than 1 year, or both. (C)

Applicable law

The Federal cochairperson, the alternate Federal cochairperson, and any Federal officer or employee detailed to duty on the Authority under subsection (e)(5) shall not be subject to subparagraph (A), but shall remain subject to sections 202 through 209 of title 18, United States Code. (5)

Additional personnel

(A)

Compensation

(i)

In general

The Authority may appoint and fix the compensation of an executive director and such other personnel as are necessary to enable the Authority to carry out the duties of the Authority. (ii)

Exception

Compensation under clause (i) shall not exceed the maximum rate for the Senior Executive Service under section 5382 of title 5, United States Code, including any applicable locality-based comparability payment that may be authorized under section 5304(h)(2)(C) of that title. (B)

Executive director

The executive director shall be responsible for— (i)the carrying out of the administrative duties of the Authority; (ii)direction of the Authority staff; and (iii)such other duties as the Authority may assign. (C)

No Federal employee status

No member, alternate, officer, or employee of the Authority (except the Federal cochairperson of the Authority, the alternate and staff for the Federal cochairperson, and any Federal employee detailed to the Authority under subsection (e)(5)) shall be considered to be a Federal employee for any purpose. (i)

Conflicts of interest

(1)

In general

Except as provided under paragraph (2), no State member, Indian tribe member, State alternate, officer, or employee of the Authority shall participate personally and substantially as a member, alternate, officer, or employee of the Authority, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in any proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other matter in which, to knowledge of the member, alternate, officer, or employee, there is a financial interest of— (A)the member, alternate, officer, or employee; (B)the spouse, minor child, partner, or organization (other than a State or political subdivision of the State or the Indian tribe) of the member, alternate, officer, or employee, in which the member, alternate, officer, or employee is serving as officer, director, trustee, partner, or employee; or (C)any person or organization with whom the member, alternate, officer, or employee is negotiating or has any arrangement concerning prospective employment. (2)

Disclosure

Paragraph (1) shall not apply if the State member, Indian tribe member, alternate, officer, or employee— (A)immediately advises the Authority of the nature and circumstances of the proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other particular matter presenting a potential conflict of interest; (B)makes full disclosure of the financial interest; and (C)before the proceeding concerning the matter presenting the conflict of interest, receives a written determination by the Authority that the interest is not so substantial as to be likely to affect the integrity of the services that the Authority may expect from the State member, Indian tribe member, alternate, officer, or employee. (3)

Violation

Any person that violates this subsection shall be fined not more than $10,000, imprisoned not more than 2 years, or both. (j)

Validity of contracts, loans, and grants

The Authority may declare void any contract, loan, or grant of or by the Authority in relation to which the Authority determines that there has been a violation of any provision under subsection (h)(4) or subsection (i) of this chapter, or sections 202 through 209 of title 18, United States Code.

3823.

Interstate cooperation for economic opportunity and efficiency

(a)

In general

The Authority shall provide assistance to States in developing regional plans to address multistate economic issues, including plans— (1)to develop a regional transmission system for movement of renewable energy to markets outside the region; (2)to address regional transportation concerns, including the establishment of a Northern Great Plains Regional Transportation Working Group; (3)to encourage and support interstate collaboration on federally funded research that is in the national interest; and (4)to establish a Regional Working Group on Agriculture Development and Transportation. (b)

Economic issues

The multistate economic issues referred to in subsection (a) shall include— (1)renewable energy development and transmission; (2)transportation planning and economic development; (3)information technology; (4)movement of freight and individuals within the region; (5)federally funded research at institutions of higher education; and (6)conservation land management.

3824.

Economic and community development grants

(a)

In general

The Authority may approve grants to States, Indian tribes, local governments, and public and nonprofit organizations for projects, approved in accordance with section 3830— (1)to assist the region in obtaining the job training, employment-related education, and business development (with an emphasis on entrepreneurship) that are needed to build and maintain strong local economies; (2)to develop the transportation, renewable energy transmission, and telecommunication infrastructure of the region for the purpose of facilitating economic development in the region (except that grants for this purpose may be made only to States, Indian tribes, local governments, and nonprofit organizations); (3)to provide assistance to severely distressed and underdeveloped areas that lack financial resources for improving basic public services; (4)to provide assistance to severely distressed and underdeveloped areas that lack financial resources for equipping industrial parks and related facilities; and (5)to otherwise achieve the purposes of this chapter. (b)

Funding

(1)

In general

Funds for grants under subsection (a) may be provided— (A)entirely from appropriations to carry out this section; (B)in combination with funds available under another Federal grant program; or (C)from any other source. (2)

Priority of funding

To best build the foundations for long-term economic development and to complement other Federal, State, and tribal resources in the region, Federal funds available under this chapter shall be focused on the following activities: (A)Basic public infrastructure in distressed counties and isolated areas of distress. (B)Transportation and telecommunication infrastructure for the purpose of facilitating economic development in the region. (C)Business development, with emphasis on entrepreneurship. (D)Job training or employment-related education, with emphasis on use of existing public educational institutions located in the region.

3825.

Supplements to Federal grant programs

(a)

Finding

Congress finds that certain States and local communities of the region may be unable to take maximum advantage of Federal grant programs for which the States and communities are eligible because— (1)the States and communities lack the economic resources to provide the required matching share; or (2)there are insufficient funds available under the applicable Federal law authorizing the Federal grant program to meet pressing needs of the region. (b)

Federal grant program funding

Notwithstanding any provision of law limiting the Federal share, the areas eligible for assistance, or the authorizations of appropriations, under any Federal grant program, and in accordance with subsection (c), the Authority, with the approval of the Federal cochairperson and with respect to a project to be carried out in the region— (1)may increase the Federal share of the costs of a project under any Federal grant program to not more than 90 percent (except as provided in section 3827(b)); and (2)shall use amounts made available to carry out this chapter to pay the increased Federal share. (c)

Certifications

(1)

In general

In the case of any project for which all or any portion of the basic Federal share of the costs of the project is proposed to be paid under this section, no Federal contribution shall be made until the Federal official administering the Federal law that authorizes the Federal grant program certifies that the project— (A)meets (except as provided in subsection (b)) the applicable requirements of the applicable Federal grant program; and (B)could be approved for Federal contribution under the Federal grant program if funds were available under the law for the project. (2)

Certification by authority

(A)

In general

The certifications and determinations required to be made by the Authority for approval of projects under this Act in accordance with section 3830 shall be— (i)controlling; and (ii)accepted by the Federal agencies. (B)

Acceptance by Federal cochairperson

In the case of any project described in paragraph (1), any finding, report, certification, or documentation required to be submitted with respect to the project to the head of the department, agency, or instrumentality of the Federal Government responsible for the administration of the Federal grant program under which the project is carried out shall be accepted by the Federal cochairperson.

3826.

Multistate and local development districts and organizations and Northern Great Plains Inc

(a)

Definition of multistate and local development district or organization

In this section, the term multistate and local development district or organization means an entity— (1)that— (A)is a planning district that is recognized by the Economic Development Administration of the Department of Commerce; or (B)is— (i)organized and operated in a manner that ensures broad-based community participation and an effective opportunity for other nonprofit groups to contribute to the development and implementation of programs in the region; (ii)a nonprofit incorporated body organized or chartered under the law of the State in which the entity is located; (iii)a nonprofit agency or instrumentality of a State or local government; (iv)a public organization established before the date of enactment of the Agriculture Reform, Food, and Jobs Act of 2013 under State law for creation of multijurisdictional, area-wide planning organizations; (v)a nonprofit agency or instrumentality of a State that was established for the purpose of assisting with multistate cooperation; or (vi)a nonprofit association or combination of bodies, agencies, and instrumentalities described in clauses (ii) through (v); and (2)that has not, as certified by the Authority (in consultation with the Federal cochairperson or Secretary, as appropriate)— (A)inappropriately used Federal grant funds from any Federal source; or (B)appointed an officer who, during the period in which another entity inappropriately used Federal grant funds from any Federal source, was an officer of the other entity. (b)

Grants to multistate, local, or regional development districts and organizations

(1)

In general

The Authority may make grants for administrative expenses under this section to multistate, local, and regional development districts and organizations. (2)

Conditions for grants

(A)

Maximum amount

The amount of any grant awarded under paragraph (1) shall not exceed 80 percent of the administrative expenses of the multistate, local, or regional development district or organization receiving the grant. (B)

Maximum period

No grant described in paragraph (1) shall be awarded for a period of greater than 3 years. (3)

Local share

The contributions of a multistate, local, or regional development district or organization for administrative expenses may be in cash or in kind, fairly evaluated, including space, equipment, and services. (c)

Duties

(1)

In general

Except as provided in paragraph (2), a local development district shall operate as a lead organization serving multicounty areas in the region at the local level. (2)

Designation

The Federal cochairperson may designate an Indian tribe or multijurisdictional organization to serve as a lead organization in such cases as the Federal cochairperson or Secretary, as appropriate, determines appropriate. (d)

Northern Great Plains Inc

Northern Great Plains Inc., a nonprofit corporation incorporated in the State of Minnesota to implement the recommendations of the Northern Great Plains Rural Development Commission established by the Northern Great Plains Rural Development Act (7 U.S.C. 2661 note; Public Law 103–318)— (1)shall serve as an independent, primary resource for the Authority on issues of concern to the region; (2)shall advise the Authority on development of international trade; (3)may provide research, education, training, and other support to the Authority; and (4)may carry out other activities on its own behalf or on behalf of other entities.

3827.

Distressed counties and areas and nondistressed counties

(a)

Designations

Each year, the Authority, in accordance with such criteria as the Authority may establish, shall designate— (1)as distressed counties, counties in the region that are the most severely and persistently distressed and underdeveloped and have high rates of poverty, unemployment, or outmigration; (2)as nondistressed counties, counties in the region that are not designated as distressed counties under paragraph (1); and (3)as isolated areas of distress, areas located in nondistressed counties (as designated under paragraph (2)) that have high rates of poverty, unemployment, or outmigration. (b)

Distressed counties

(1)

In general

The Authority shall allocate at least 50 percent of the appropriations made available under section 3834 for programs and projects designed to serve the needs of distressed counties and isolated areas of distress in the region. (2)

Funding limitations

The funding limitations under section 3825(b) shall not apply to a project to provide transportation or telecommunication or basic public services to residents of 1 or more distressed counties or isolated areas of distress in the region. (c)

Transportation, telecommunication, renewable energy, and basic public infrastructure

The Authority shall allocate at least 50 percent of any funds made available under section 3834 for transportation, telecommunication, renewable energy, and basic public infrastructure projects authorized under paragraphs (1) and (3) of section 3824(a).

3828.

Development planning process

(a)

State development plan

In accordance with policies established by the Authority, each State member shall submit a development plan for the area of the region represented by the State member. (b)

Content of plan

A State development plan submitted under subsection (a) shall reflect the goals, objectives, and priorities identified in the regional development plan developed under section 3823(d)(2). (c)

Consultation with interested local parties

In carrying out the development planning process (including the selection of programs and projects for assistance), a State may— (1)consult with— (A)multistate, regional, and local development districts and organizations; and (B)local units of government; and (2)take into consideration the goals, objectives, priorities, and recommendations of the entities described in paragraph (1). (d)

Public participation

(1)

In general

The Authority and applicable multistate, regional, and local development districts and organizations shall encourage and assist, to the maximum extent practicable, public participation in the development, revision, and implementation of all plans and programs under this chapter. (2)

Regulations

The Authority shall develop guidelines for providing public participation described in paragraph (1), including public hearings.

3829.

Program development criteria

(a)

In general

In considering programs and projects to be provided assistance under this chapter, and in establishing a priority ranking of the requests for assistance provided to the Authority, the Authority shall follow procedures that ensure, to the maximum extent practicable, consideration of— (1)the relationship of the project or class of projects to overall multistate or regional development; (2)the per capita income and poverty and unemployment and outmigration rates in an area; (3)the financial resources available to the applicants for assistance seeking to carry out the project, with emphasis on ensuring that projects are adequately financed to maximize the probability of successful economic development; (4)the importance of the project or class of projects in relation to other projects or classes of projects that may be in competition for the same funds; (5)the prospects that the project for which assistance is sought will improve, on a continuing rather than a temporary basis, the opportunities for employment, the average level of income, or the economic development of the area to be served by the project; and (6)the extent to which the project design provides for detailed outcome measurements by which grant expenditures and the results of the expenditures may be evaluated. (b)

No relocation assistance

(1)

In general

Except as provided in paragraph (2), no financial assistance authorized by this chapter shall be used to assist a person or entity in relocating from 1 area to another. (2)

Outside businesses

Financial assistance under this chapter may be used as otherwise authorized by this title to attract businesses from outside the region to the region. (c)

Maintenance of effort

Funds may be provided for a program or project in a State under this chapter only if the Authority determines that the level of Federal or State financial assistance provided under a law other than this chapter, for the same type of program or project in the same area of the State within the region, will not be reduced as a result of funds made available by this chapter.

3830.

Approval of development plans and projects

(a)

In general

A State or regional development plan or any multistate subregional plan that is proposed for development under this chapter shall be reviewed by the Authority. (b)

Evaluation by State member

An application for a grant or any other assistance for a project under this chapter shall be made through and evaluated for approval by the State member of the Authority representing the applicant. (c)

Certification

An application for a grant or other assistance for a project shall be approved only on certification by the State member that the application for the project— (1)describes ways in which the project complies with any applicable State development plan; (2)meets applicable criteria under section 3829; (3)provides adequate assurance that the proposed project will be properly administered, operated, and maintained; and (4)otherwise meets the requirements of this chapter. (d)

Votes for decisions

On certification by a State member of the Authority of an application for a grant or other assistance for a specific project under this section, an affirmative vote of the Authority under section 3822(c) shall be required for approval of the application.

3831.

Consent of States

Nothing in this chapter requires any State to engage in or accept any program under this chapter without the consent of the State.

3832.

Records

(a)

Records of the authority

(1)

In general

The Authority shall maintain accurate and complete records of all transactions and activities of the Authority. (2)

Availability

All records of the Authority shall be available for audit and examination by the Comptroller General of the United States and the Inspector General of the Department of Agriculture (including authorized representatives of the Comptroller General and the Inspector General of the Department of Agriculture). (b)

Records of recipients of Federal assistance

(1)

In general

A recipient of Federal funds under this chapter shall, as required by the Authority, maintain accurate and complete records of transactions and activities financed with Federal funds and report to the Authority on the transactions and activities to the Authority. (2)

Availability

All records required under paragraph (1) shall be available for audit by the Comptroller General of the United States, the Inspector General of the Department of Agriculture, and the Authority (including authorized representatives of the Comptroller General, the Inspector General of the Department of Agriculture, and the Authority). (c)

Annual audit

The Inspector General of the Department of Agriculture shall audit the activities, transactions, and records of the Authority on an annual basis for any fiscal year for which funds are appropriated.

3833.

Annual report

Not later than 180 days after the end of each fiscal year, the Authority shall submit to the President and to Congress a report describing the activities carried out under this chapter.

3834.

Authorization of appropriations

(a)

In general

There is authorized to be appropriated to the Authority to carry out this chapter $30,000,000 for each of fiscal years 2014 through 2018, to remain available until expended. (b)

Administrative expenses

Not more than 5 percent of the amount appropriated under subsection (a) for a fiscal year shall be used for administrative expenses of the Authority. (c)

Minimum State share of grants

Notwithstanding any other provision of this chapter, for any fiscal year, the aggregate amount of grants received by a State and all persons or entities in the State under this chapter shall be not less than 1/3 of the product obtained by multiplying— (1)the aggregate amount of grants under this chapter for the fiscal year; and (2)the ratio that— (A)the population of the State (as determined by the Secretary of Commerce based on the most recent decennial census for which data are available); bears to (B)the population of the region (as so determined).

3835.

Termination of authority

The authority provided by this chapter terminates effective October 1, 2018.

C

General provisions

3901.

Full faith and credit

(a)

In general

A guarantee executed by the Secretary under this title shall be an obligation supported by the full faith and credit of the United States. (b)

Contestability

A guarantee executed by the Secretary under this title shall be incontestable except for fraud or misrepresentation that the lender or any holder— (1)has actual knowledge of at the time the guarantee is executed; or (2)participates in or condones.

3902.

Purchase and sale of guaranteed portions of loans

(a)

In general

Subject to subsections (b) and (c), the Secretary may purchase, on such terms and conditions as the Secretary considers appropriate, the guaranteed portion of a loan guaranteed under this title, if the Secretary determines that an adequate secondary market is not available in the private sector. (b)

Maximum payment

The Secretary may not pay for any guaranteed portion of a loan under subsection (a) in excess of an amount equal to the unpaid principal balance and accrued interest on the guaranteed portion of the loan. (c)

Sources of funding

The Secretary may use for the purchases— (1)funds from the Rural Development Insurance Fund with respect to rural development loans (as defined in section 3704(a)); and (2)funds from the Agricultural Credit Insurance Fund with respect to all other loans under this title. (d)

Sale of guaranteed loans

(1)

Sales

(A)

Regulation

(i)

In general

The guaranteed portion of any loan made under this title may be sold by the lender, and by any subsequent holder, in accordance with such regulations governing the sales as the Secretary shall establish, subject to clauses (ii) and (iii). (ii)

Fees to be paid in full

All fees due the Secretary with respect to a guaranteed loan shall be paid in full before any sale. (iii)

Loan to be fully disbursed

The loan shall be fully disbursed to the borrower before the sale. (B)

Post-sale

After a loan is sold in the secondary market, the lender shall— (i)remain obligated under the guarantee agreement of the lender with the Secretary; and (ii)continue to service the loan in accordance with the terms and conditions of that agreement. (C)

Procedures

The Secretary shall develop such procedures as are necessary for— (i)the facilitation, administration, and promotion of secondary market operations; and (ii)determining the increase of access of farmers to capital at reasonable rates and terms as a result of secondary market operations. (D)

Rights to prepay

This subsection does not impede or extinguish— (i)the right of the borrower or the successor in interest to the borrower to prepay (in whole or in part) any loan made under this title; or (ii)the rights of any party under any provision of this title. (2)

Issue pool certificates

(A)

In general

The Secretary may, directly or through a market maker approved by the Secretary, issue pool certificates representing ownership of part or all of the guaranteed portion of any loan guaranteed by the Secretary under this title. (B)

Approval

Certificates under subparagraph (A) shall be based on and backed by a pool established or approved by the Secretary and composed solely of the entire guaranteed portion of the loans. (C)

Guarantee of pool

On such terms and conditions as the Secretary considers appropriate, the Secretary may guarantee the timely payment of the principal and interest on pool certificates issued on behalf of the Secretary by approved market makers for purposes of this subsection. (D)

Limitations

A guarantee under subparagraph (C) shall be limited to the extent of principal and interest on the guaranteed portions of loans that compose the pool. (E)

Prepayment

If a loan in a pool is prepaid, either voluntarily or by reason of default, the guarantee of timely payment of principal and interest on the pool certificates shall be reduced in proportion to the amount of principal and interest that the prepaid loan represents in the pool. (F)

Interest accrual

Interest on prepaid or defaulted loans shall accrue and be guaranteed by the Secretary only through the date of payment on the guarantee. (G)

Redemption

During the term of the pool certificate, the certificate may be called for redemption due to prepayment or default of all loans constituting the pool. (H)

Full faith and credit

The full faith and credit of the United States is pledged to the payment of all amounts that may be required to be paid under any guarantee of the pool certificates issued by approved market makers under this subsection. (I)

Fees

(i)

In general

The Secretary shall not collect any fee for any guarantee under this subsection. (ii)

Secretarial functions

Clause (i) does not preclude the Secretary from collecting a fee for the functions described in paragraph (3). (J)

Default

Not later than 30 days after a borrower of a guaranteed loan is in default of any principal or interest payment due for 60 days or more, the Secretary shall— (i)purchase the pool certificates representing ownership of the guaranteed portion of the loan; and (ii)pay the registered holder of the certificates an amount equal to the guaranteed portion of the loan represented by the certificate. (K)

Payment of claims

If the Secretary pays a claim under a guarantee issued under this subsection, the claim shall be subrogated fully to the rights satisfied by the payment, as may be provided by the Secretary. (L)

Application of laws

No State or local law, and no Federal law, shall preclude or limit the exercise by the Secretary of the ownership rights of the Secretary in the portions of loans constituting the pool against which the certificates are issued. (3)

Duties of the Secretary

(A)

In general

On the adoption of final rules and regulations, the Secretary shall— (i)provide for the central collection of registration information from all participating market makers for all loans and pool certificates sold under paragraphs (1) and (2), including, with respect to each original sale and any subsequent sale— (I)identification of the interest rate paid by the borrower to the lender; (II)the servicing fee of the lender; (III)disclosure of whether interest on the loan is at a fixed or variable rate; (IV)identification of each purchaser of a pool certificate; (V)the interest rate paid on the certificate; and (VI)such other information as the Secretary considers appropriate. (ii)before any sale, require the seller (as defined in subparagraph (B)) to disclose to each prospective purchaser of the portion of a loan guaranteed under this title and to each prospective purchaser of a pool certificate issued under paragraph (2) information on the terms, conditions, and yield of such instrument; (iii)provide for adequate custody of any pooled guaranteed loans; (iv)take such actions as are necessary, in restructuring pools of the guaranteed portion of loans, to minimize the estimated costs of paying claims under guarantees issued under this subsection; (v)require each market maker— (I)to service all pools formed, and participations sold, by the market maker; and (II)to provide the Secretary with information relating to the collection and disbursement of all periodic payments, prepayments, and default funds from lenders, to or from the reserve fund that the Secretary shall establish to enable the timely payment guarantee to be self-funding, and from all beneficial holders; and (vi)regulate market makers in pool certificates sold under this subsection. (B)

Definition of seller

For purposes of subparagraph (A)(ii), if the instrument being sold is a loan, the term seller does not include— (i)the person who made the loan; or (ii)any person who sells 3 or fewer guaranteed loans per year. (4)

Contract for services

The Secretary may contract for goods and services to be used for the purposes of this subsection without regard to titles 5, 40, and 41, United States Code (including any regulations issued under those titles).

3903.

Administration

(a)

Powers of secretary

The Secretary may— (1)(A)administer the powers and duties of the Secretary through such national, area, State, or local offices and employees in the United States as the Secretary determines to be necessary; and (B)authorize an office to serve an area composed of 2 or more States if the Secretary determines that the volume of business in the area is not sufficient to justify separate State offices; (2)(A)accept and use voluntary and uncompensated services; and (B)with the consent of the agency concerned, use the officers, employees, equipment, and information of any agency of the Federal Government, or of any State, territory, or political subdivision; (3)subject to appropriations, make necessary expenditures for the purchase or hire of passenger vehicles, and such other facilities and services as the Secretary may from time to time find necessary for the proper administration of this title; (4)subject to subsection (b), compromise, adjust, reduce, or charge-off debts or claims (including debts and claims arising from loan guarantees), and adjust, modify, subordinate, or release the terms of security instruments, leases, contracts, and agreements entered into or administered by the Farm Service Agency, the Rural Utilities Service, the Rural Housing Service, the Rural Business-Cooperative Service, or successor agencies under this title, except for activities conducted under the Housing Act of 1949 (42 U.S.C. 1441 et seq.); (5)(A)except for activities conducted under the Housing Act of 1949 (42 U.S.C. 1441 et seq.), collect all claims and obligations administered by the Farm Service Agency, the Rural Utilities Service, the Rural Housing Service, or the Rural Business-Cooperative Service, or under any mortgage, lease, contract, or agreement entered into or administered by the Agency or Service; and (B)if the Secretary determines the action is necessary and advisable, pursue the collection to final collection in any court having jurisdiction; (6)release mortgage and other contract liens if it appears that the mortgage and liens have no present or prospective value or that the enforcement of the mortgage and liens likely would be ineffectual or uneconomical; (7)obtain fidelity bonds protecting the Federal Government against fraud and dishonesty of officers and employees of the Farm Service Agency, the Rural Utilities Service, the Rural Housing Service, or the Rural Business-Cooperative Service in lieu of faithful performance of duties bonds under section 14 of title 6, United States Code, but otherwise in accordance with the section; (8)consent to— (A)long-term leases of facilities financed under this title notwithstanding the failure of the lessee to meet any of the requirements of this title if the long-term leases are necessary to ensure the continuation of services for which financing was extended to the lessor; and (B)the transfer of property securing any loan or financed by any loan or grant made or guaranteed by the Farm Service Agency, the Rural Utilities Service, the Rural Housing Service, or the Rural Business-Cooperative Service under this title, or any other law administered by the Secretary, on such terms as the Secretary considers necessary to carry out the purpose of the loan or grant or to protect the financial interest of the Federal Government, provided that the Secretary shall document the consent of the Secretary for the transfer of the property of a borrower in the file of the borrower; and (9)notwithstanding that an area ceases, or has ceased, to be rural, in a rural area, or an eligible area, make loans and grants, and approve transfers and assumptions, under this title on the same basis as though the area still was rural in connection with property securing any loan made or guaranteed by the Secretary under this title or in connection with any property held by the Secretary under this title. (b)

Loan adjustments

(1)

No liquidation of property

The Secretary may not require liquidation of property securing any farmer program loan or acceleration of any payment required under any farmer program loan as a prerequisite to initiating an action authorized under subsection (a). (2)

Release of personal liability

(A)

In general

Except as provided in subparagraph (B), the Secretary may release a borrower or other person obligated on a debt (other than debt incurred under the Housing Act of 1949 (42 U.S.C. 1441 et seq.)) from personal liability with or without payment of any consideration at the time of the compromise, adjustment, reduction, or charge-off of any claim. (B)

Exception

No compromise, adjustment, reduction, or charge-off of any claim may be made or carried out after the claim has been referred to the Attorney General, unless the Attorney General approves. (3)

Rural electrification security instruments

In the case of a security instrument entered into under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), the Secretary shall notify the Attorney General of the intent of the Secretary to exercise the authority of the Secretary under paragraph (2). (c)

Simplified application forms for loan guarantees

(1)

In general

The Secretary shall provide to lenders a short, simplified application form for guarantees under this title of— (A)farmer program loans the principal amount of which is $125,000 or less; and (B)business and industry guaranteed loans under section 3601(a)(2)(A) the principal amount of which is— (i)$400,000 or less; or (ii)if the Secretary determines that there is not a significant increased risk of a default on the loan, $600,000 or less. (2)

Water and waste disposal grants and loans

The Secretary shall develop an application process that accelerates, to the maximum extent practicable, the processing of applications for water and waste disposal grants or direct or guaranteed loans under section 3501(a)(1) the grant award amount or principal loan amount, respectively, of which is $300,000 or less. (3)

Administration

In developing an application under this subsection, the Secretary shall— (A)consult with commercial and cooperative lenders; and (B)ensure that— (i)the form can be completed manually or electronically, at the option of the lender; (ii)the form minimizes the documentation required to accompany the form; (iii)the cost of completing and processing the form is minimal; and (iv)the form can be completed and processed in an expeditious manner. (d)

Use of attorneys for prosecution or defense of claims

The Secretary may use for the prosecution or defense of any claim or obligation described in subsection (a)(5) the Attorney General, the General Counsel of the Department, or a private attorney who has entered into a contract with the Secretary. (e)

Private collection agency

The Secretary may use a private collection agency to collect a claim or obligation described in subsection (a)(5). (f)

Security servicing

(1)

In general

The Secretary may— (A)make advances, without regard to any loan or total indebtedness limitation, to preserve and protect the security for, or the lien or priority of the lien securing any loan or other indebtedness owing to or acquired by the Secretary under this title or under any other program administered by the Farm Service Agency, the Rural Utilities Service, the Rural Housing Service, or the Rural Business-Cooperative Service applicable program, as determined by the Secretary; and (B)(i)bid for and purchase at any execution, foreclosure, or other sale or otherwise acquire property on which the United States has a lien by reason of a judgment or execution arising from, or that is pledged, mortgaged, conveyed, attached, or levied on to secure the payment of, the indebtedness regardless of whether the property is subject to other liens; (ii)accept title to any property so purchased or acquired; and (iii)sell, manage, or otherwise dispose of the property in accordance with this subsection. (2)

Operation or lease of realty

Except as provided in subsections (c) and (e), real property administered under this title may be operated or leased by the Secretary for such period as the Secretary may consider necessary to protect the investment of the Federal Government in the property. (g)

Payments to lenders

(1)

Requirement

Not later than 90 days after a court of competent jurisdiction confirms a plan of reorganization under chapter 12 of title 11, United States Code, for any borrower to whom a lender has made a loan guaranteed under this title, the Secretary shall pay the lender an amount estimated by the Secretary to be equal to the loss incurred by the lender for purposes of the guarantee. (2)

Payment toward loan guarantee

Any amount paid to a lender under this subsection with respect to a loan guaranteed under this title shall be treated as payment towards satisfaction of the loan guarantee.

3904.

Loan moratorium and policy on foreclosures

(a)

In general

In addition to any other authority that the Secretary may have to defer principal and interest and forgo foreclosure, the Secretary may permit, at the request of the borrower, the deferral of principal and interest on any outstanding loan made or guaranteed by the Secretary under this title, or under any other law administered by the Farm Service Agency, the Rural Utilities Service, the Rural Housing Service, or the Rural Business-Cooperative Service, and may forgo foreclosure of the loan, for such period as the Secretary considers necessary on a showing by the borrower that, due to circumstances beyond the control of the borrower, the borrower is temporarily unable to continue making payments of the principal and interest when due without unduly impairing the standard of living of the borrower. (b)

Interest

(1)

In general

Except as provided in paragraph (2), the Secretary may permit any loan deferred under this section to bear no interest during or after the deferral period. (2)

Exception

If the security instrument securing the loan is foreclosed, such interest as is included in the purchase price at the foreclosure shall become part of the principal and draw interest from the date of foreclosure at the rate prescribed by law. (c)

Moratorium regarding civil rights claims

(1)

In general

Except as otherwise provided in this subsection, effective beginning on May 22, 2008, there shall be in effect a moratorium, with respect to farmer program loans made under subtitle A, on all acceleration and foreclosure proceedings instituted by the Department against any farmer who— (A)has pending against the Department a claim of program discrimination that is accepted by the Department as valid; or (B)files a claim of program discrimination that is accepted by the Department as valid. (2)

Waiver of interest and offsets

During the period of the moratorium, the Secretary shall waive the accrual of interest and offsets on all farmer program loans made under subtitle A for which loan acceleration or foreclosure proceedings have been suspended under paragraph (1). (3)

Termination of moratorium

The moratorium shall terminate with respect to a claim of discrimination by a farmer on the earlier of— (A)the date the Secretary resolves the claim; or (B)if the farmer appeals the decision of the Secretary on the claim to a court of competent jurisdiction, the date that the court renders a final decision on the claim. (4)

Failure to prevail

If a farmer does not prevail on a claim of discrimination described in paragraph (1), the farmer shall be liable for any interest and offsets that accrued during the period that loan acceleration or foreclosure proceedings have been suspended under paragraph (1).

3905.

Oil and gas royalty payments on loans

(a)

In general

The Secretary shall permit a borrower of a loan made or guaranteed under this title to make a prospective payment on the loan with proceeds from— (1)the leasing of oil, gas, or other mineral rights to real property used to secure the loan; or (2)the sale of oil, gas, or other minerals removed from real property used to secure the loan, if the value of the rights to the oil, gas, or other minerals has not been used to secure the loan. (b)

Applicability

Subsection (a) shall not apply to a borrower of a loan made or guaranteed under this title with respect to which a liquidation or foreclosure proceeding was pending on December 23, 1985.

3906.

Taxation

(a)

In general

Except as provided in subsection (b), all property subject to a lien held by the United States or the title to which is acquired or held by the Secretary under this title (other than property used for administrative purposes) shall be subject to taxation by State, territory, district, and local political subdivisions in the same manner and to the same extent as other property is taxed. (b)

Exceptions

No tax shall be imposed or collected as described in subsection (a) if the tax (whether as a tax on the instrument or in connection with conveying, transferring, or recording the instrument) is based on— (1)the value of any notes or mortgages or other lien instruments held by or transferred to the Secretary; (2)any notes or lien instruments administered under this title that are made, assigned, or held by a person otherwise liable for the tax; or (3)the value of any property conveyed or transferred to the Secretary. (c)

Failure To pay or collect tax

The failure to pay or collect a tax under subsection (a) shall not— (1)be a ground for— (A)refusal to record or file an instrument; or (B)failure to provide notice; or (2)prevent the enforcement of the instrument in any Federal or State court.

3907.

Conflicts of interest

(a)

Acceptance of consideration prohibited

No officer, attorney, or other employee of the Department shall, directly or indirectly, be the beneficiary of or receive any fee, commission, gift, or other consideration for or in connection with any transaction or business under this title other than such salary, fee, or other compensation as the officer, attorney, or employee may receive as the officer, attorney, or employee. (b)

Acquisition of interest in land prohibited

(1)

In general

Except as provided in paragraph (2), no officer or employee of the Department who acts on or reviews an application made by any person under this title for a loan to purchase land may acquire, directly or indirectly, any interest in the land for a period of 3 years after the date on which the action is taken or the review is made. (2)

Former county committee members

Paragraph (1) shall not apply to a former member of a county committee on a determination by the Secretary, prior to the acquisition of the interest, that the former member acted in good faith when acting on or reviewing the application. (c)

Penalties

Any person violating this section shall, on conviction of the violation, be punished by a fine of not more than $2,000 or imprisonment for not more than 2 years, or both.

3908.

Loan summary statements

(a)

Definition of summary period

In this section, the term summary period means the period beginning on the date of issuance of the preceding loan summary statement and ending on the date of issuance of the current loan summary statement. (b)

Issuance of statements

On the request of a borrower of a loan made (but not guaranteed) under this title, the Secretary shall issue to the borrower a loan summary statement that reflects the account activity during the summary period for each loan made under this title to the borrower, including— (1)the outstanding amount of principal due on each loan at the beginning of the summary period; (2)the interest rate charged on each loan; (3)the amount of payments made on, and the application of the payments to, each loan during the summary period and an explanation of the basis for the application of the payments; (4)the amount of principal and interest due on each loan at the end of the summary period; (5)the total amount of unpaid principal and interest on all loans at the end of the summary period; (6)any delinquency in the repayment of any loan; (7)a schedule of the amount and date of payments due on each loan; and (8)the procedure the borrower may use to obtain more information concerning the status of the loans.

3909.

Certified lenders program

(a)

Certified lenders program

(1)

In general

The Secretary shall establish a program under which the Secretary shall guarantee loans under this title that are made by lending institutions certified by the Secretary. (2)

Certification requirements

The Secretary shall certify a lending institution that meets such criteria as the Secretary may prescribe in regulations, including the ability of the institution to properly make, service, and liquidate the loans of the institution. (3)

Condition of certification

(A)

In general

As a condition of the certification, the Secretary shall require the institution to undertake to service the loans guaranteed by the Secretary under this section, using standards that are not less stringent than generally accepted banking standards concerning loan servicing employed by prudent commercial or cooperative lenders. (B)

Monitoring

The Secretary shall, at least annually, monitor the performance of each certified lender to ensure that the conditions of the certification are being met. (4)

Effect of certification

Notwithstanding any other provision of law: (A)

Amount of loan guarantee

In the case of a loan made or guaranteed under subtitle A, the Secretary shall guarantee not more than 80 percent of a loan made under this section by a certified lending institution as described in paragraph (1), subject to a determination that the borrower of the loan meets the eligibility requirements and such other criteria as may be applicable to loans guaranteed by the Secretary under other provisions of this title. (B)

Certifications by lending institutions

In the case of loans to be guaranteed by the Secretary under this section, the Secretary shall permit certified lending institutions to make appropriate certifications (as provided by regulations issued by the Secretary)— (i)relating to issues such as creditworthiness, repayment ability, adequacy of collateral, and feasibility of farm operation; and (ii)that the borrower is in compliance with all requirements of law, including regulations issued by the Secretary. (C)

Approval process

(i)

In general

The Secretary shall approve or disapprove a guarantee not later than 14 days after the date that the lending institution applies to the Secretary for the guarantee. (ii)

Disapproval

If the Secretary disapproves the loan application during the 14-day period, the Secretary shall state, in writing, all of the reasons the application was disapproved. (5)

Relationship to other requirements

Nothing in this section affects the responsibility of the Secretary to certify eligibility, review financial information, and otherwise assess an application. (b)

Preferred certified lenders program

(1)

In general

The Secretary shall establish a Preferred Certified Lenders Program for lenders under this title who establish— (A)knowledge of, and experience under, the program established under subsection (a); (B)knowledge of the regulations concerning the guaranteed loan program; and (C)proficiency related to the certified lender program requirements. (2)

Revocation of designation

(A)

In general

Subject to subparagraph (B), the designation of a lender as a Preferred Certified Lender shall be revoked at any time— (i)that the Secretary determines that the lender is not adhering to the rules and regulations applicable to the program; or (ii)if the loss experiences of a Preferred Certified Lender are excessive as compared to other Preferred Certified Lenders. (B)

Effect

A suspension or revocation under subparagraph (A) shall not affect any outstanding guarantee. (3)

Condition of certification

As a condition of preferred certification, the Secretary shall require the institution to undertake to service the loans guaranteed by the Secretary under this subsection using generally accepted banking standards concerning loan servicing employed by prudent commercial or cooperative lenders. (4)

Monitoring

The Secretary shall, at least annually, monitor the performance of each Preferred Certified Lender to ensure that the conditions of certification are being met. (5)

Effect of preferred lender certification

(A)

In general

Notwithstanding any other provision of law, the Secretary shall— (i)guarantee not more than 80 percent of an approved loan made by a certified lending institution as described in this subsection, subject to a determination that the borrower meets the eligibility requirements or such other criteria as may be applicable to loans guaranteed by the Secretary under other provisions of this title; (ii)permit certified lending institutions— (I)to make all decisions, with respect to loans to be guaranteed by the Secretary under this subsection relating to credit worthiness, the closing, monitoring, collection and liquidation of loans; and (II)to accept appropriate certifications, as provided by regulations issued by the Secretary, that the borrower is in compliance with all requirements of law or regulations promulgated by the Secretary; and (iii)be considered to have guaranteed 80 percent of a loan made by a preferred certified lending institution as described in paragraph (1), if the Secretary fails to approve or reject the application of such institution within 14 calendar days after the date that the lending institution presented the application to the Secretary. (B)

Requirement

If the Secretary rejects an application under subparagraph (A)(iii) during the 14-day period, the Secretary shall state, in writing, the reasons the application was rejected. (c)

Administration of certified lenders and preferred certified lenders programs

The Secretary may administer the loan guarantee programs under subsections (a) and (b) through central offices established in States or in multi-State areas.

3910.

Loans to resident aliens

(a)

In general

Notwithstanding the provisions of this title limiting the making of a loan to a citizen of the United States, the Secretary may make a loan under this title to an alien lawfully admitted to the United States for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.). (b)

Regulations

(1)

In general

No loan may be made under this title to an alien referred to in subsection (a) until the Secretary issues regulations establishing the terms and conditions under which the alien may receive the loan. (2)

Requirement

The Secretary shall submit the regulations to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate at least 30 days prior to the date on which the regulations are published in the Federal Register.

3911.

Expedited clearing of title to inventory property

(a)

In general

The Secretary may employ local attorneys, on a case-by-case basis, to process all legal procedures necessary to clear the title to foreclosed properties in the inventory of the Department. (b)

Compensation

Attorneys shall be compensated at not more than the usual and customary charges of the attorneys for the work.

3912.

Transfer of land to Secretary

The President may at any time, in the discretion of the President, transfer to the Secretary any right, interest, or title held by the United States in any land acquired in the program of national defense and no longer needed for that purpose that the President finds suitable for the purposes of this title, and the Secretary shall dispose of the transferred land in the manner and subject to the terms and conditions of this title.

3913.

Competitive sourcing limitations

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

3914.

Regulations

The Secretary may issue such regulations, prescribe such terms and conditions for making or guaranteeing loans, security instruments, and agreements, except as otherwise specified in this title, and make such delegations of authority as the Secretary considers necessary to carry out this title.

.

6002.

Conforming amendments

(a)Section 17(c) of the Rural Electrification Act of 1936 (7 U.S.C. 917(c)) is amended by striking paragraph (1) and inserting the following: (1)Subtitle B of the Consolidated Farm and Rural Development Act. . (b)Section 305(c)(2)(B)(i)(I) of the Rural Electrification Act of 1936 (7 U.S.C. 935(c)(2)(B)(i)(I)) is amended by striking section 307(a)(3)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)(A)) and inserting section 3701(b)(2) of the Consolidated Farm and Rural Development Act. (c)Section 306F(a)(1) of the Rural Electrification Act of 1936 (7 U.S.C. 936f(a)(1)) is amended by striking subparagraph (B) and inserting the following: (B)chapter 1 of subtitle B of the Consolidated Farm and Rural Development Act. . (d)Section 2333(d) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa–2(d)) is amended— (1)in paragraph (11), by adding and at the end; (2)by striking paragraph (12); and (3)by redesignating paragraph (13) as paragraph (12). (e)Section 601(b) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb(b)) is amended by striking paragraph (3). (f)Section 602(5) of the Emergency Livestock Feed Assistance Act of 1988 (7 U.S.C. 1471(5)) is amended by striking section 355(e)(1)(D)(ii) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1985(e)(1)(D)(ii)) and inserting section 3409(c)(1)(A) of the Consolidated Farm and Rural Development Act). (g)Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended— (1)in subsection (b)(7)(A), by striking section 371 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008f) and inserting section 3424 of the Consolidated Farm and Rural Development Act; and (2)in subsection (n)(2), by striking subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et seq.) and inserting chapter 3 of subtitle A of the Consolidated Farm and Rural Development Act. (h)Section 231(a) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1632a(a)) is amended— (1)in paragraph (1), by striking section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) and inserting section 3002 of the Consolidated Farm and Rural Development Act; and (2)in paragraph (4), by striking section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (i)Section 14204(a) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 2008q–1(a)) is amended by striking an entity described in section 379C(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008q(a)) and inserting an entity determined by the Secretary. (j)Section 607(c)(6) of the Rural Development Policy Act of 1972 (7 U.S.C. 2204b(c)(6)) is amended in the last sentence— (1)by striking , and and inserting and any; and (2)by striking required under section 306(a)(12) of the Consolidated Farm and Rural Development Act. (k)Section 901(b) of the Agricultural Act of 1970 (7 U.S.C. 2204b–1(b)) is amended by striking rural areas as defined in the private business enterprise exception in section 306(a)(7) of the Consolidated Farmers Home Administration Act of 1961, as amended (7 U.S.C. 1926) and inserting rural areas, as defined in section 3002 of the Consolidated Farm and Rural Development Act. (l)Section 14220 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 2206b) is amended by striking section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act) and inserting section 3002 of the Consolidated Farm and Rural Development Act). (m)Section 2501(c)(2)(D) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(c)(2)(D)) is amended by striking sections 355(a)(1) and 355(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(a)(1)) and inserting paragraphs (1) and (3) of section 3416(a) of the Consolidated Farm and Rural Development Act. (n)Section 2501A(b) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279–1(b)) is amended by striking section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (o)Section 7405(c)(8)(B) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3319f(c)(8)(B)) is amended by striking section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)) and inserting section 3002 of the Consolidated Farm and Rural Development Act). (p)Section 1101(d)(2)(A) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711(d)(2)(A)) is amended by striking section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)) and inserting section 3002 of the Consolidated Farm and Rural Development Act). (q)Section 1302(d)(2)(A) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8752(d)(2)(A)) is amended by striking section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)) and inserting section 3002 of the Consolidated Farm and Rural Development Act). (r)Section 2375(g) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6613(g)) is amended by striking section 304(b), 306(a), or 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1924(b), 1926(a), and 1932(e)) and inserting subtitle B of the Consolidated Farm and Rural Development Act. (s)Section 226B(a)(1) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6934(a)(1)) is amended by striking section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (t)Section 196(i)(3)(B) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)(3)(B)) is amended by striking subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et seq.) and inserting chapter 3 of subtitle A of the Consolidated Farm and Rural Development Act. (u)Section 9009(a)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8109(a)(1)) is amended by striking section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(A))) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (v)Section 9011(c)(2)(B)(v) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8111(c)(2)(B)(v)) is amended by striking subclause (I) and inserting the following: (I)beginning farmers (as defined in accordance with section 3002 of the Consolidated Farm and Rural Development Act); or . (w)Section 7(b)(2)(B) of the Small Business Act (15 U.S.C. 636(b)(2)(B)) is amended by striking section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961) and inserting section 3301 of the Consolidated Farm and Rural Development Act. (x)Section 8(b)(5)(B)(iii)(III)(bb) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(iii)(III)(bb)) is amended by striking section 355(e)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)(1)) and inserting section 3002 of the Consolidated Farm and Rural Development Act). (y)Section 10(b)(3) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2106(b)(3)) is amended in the last sentence by striking set out in the first clause of section 306(a)(7) of the Consolidated Farm and Rural Development Act and inserting given the term in section 3002 of the Consolidated Farm and Rural Development Act. (z)Section 1201(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3801(a)(2)) is amended by striking section 343(a)(8) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(8)) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (aa)Section 1238(2) of the Food Security Act of 1985 (16 U.S.C. 3838(2)) is amended by striking section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (bb)Section 5 of Public Law 91–229 (25 U.S.C. 492) is amended by striking section 307(a)(3)(B) of the Consolidated Farmers Home Administration Act of 1961, as amended, and to the provisions of subtitle D of that Act except sections 340, 341, 342, and 343 and inserting 3105(b)(2) of the Consolidated Farm and Rural Development Act. (cc)Section 6(c) of Public Law 91–229 (25 U.S.C. 493(c)) is amended by striking section 333B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983b) and inserting subtitle H of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6991 et seq.). (dd)Section 181(a)(2)(B)(ii) of the Internal Revenue Code of 1986 is amended by striking section 2009aa–1 of title 7, United States Code and inserting section 3801 of the Consolidated Farm and Rural Development Act. (ee)Section 515(b)(3) of the Housing Act of 1949 (42 U.S.C. 1485(b)(3)) is amended by striking all the provisions of section 309 and the second and third sentences of section 308 of the Consolidated Farmers Home Administration Act of 1961, including the authority in section 309(f)(1) of that Act and inserting section 3401 of the Consolidated Farm and Rural Development Act. (ff)Section 517(b) of the Housing Act of 1949 (42 U.S.C. 1487(b)) is amended in the third sentence by striking (7 U.S.C. 1929) and inserting under section 3401 of the Consolidated Farm and Rural Development Act. (gg)Section 3(8) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3122(8)) is amended— (1)by striking subparagraph (B) and inserting the following: (B)the Delta Regional Authority established under chapter 4 of subtitle B of the Consolidated Farm and Rural Development Act; ; and (2)by striking subparagraph (D) and inserting the following: (D)the Northern Great Plains Regional Authority established under chapter 5 of subtitle B of the Consolidated Farm and Rural Development Act. . (hh)Section 310(a) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5153(a)) is amended by striking paragraph (4) and inserting the following: (4)Chapter 1 of subtitle B of the Consolidated Farm and Rural Development Act. . (ii)Section 582(d)(1) of the National Flood Insurance Reform Act of 1994 (42 U.S.C. 5154a(d)(1)) is amended by striking section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) and inserting section 3301(b) of the Consolidated Farm and Rural Development Act. (jj)Section 213(c)(1) of the Biomass Energy and Alcohol Fuels Act of 1980 (42 U.S.C. 8813(c)(1)) is amended in the first sentence by striking section 309 of the Consolidated Farm and Rural Development Act or the Rural Development Insurance Fund in section 309A of such Act and inserting under section 3401 of the Consolidated Farm and Rural Development Act or the Rural Development Insurance Fund under section 3704 of that Act. (kk)Section 1323(b)(2) of the Food Security Act of 1985 (Public Law 99–198; 7 U.S.C. 1932 note) is amended— (1)in subparagraph (A), by inserting and at the end; (2)in subparagraph (B), by striking ; and at the end and inserting a period; and (3)by striking subparagraph (C).

B

Rural electrification

6101.

Definition of rural area

Section 13(3) of the Rural Electrification Act of 1936 (7 U.S.C. 913(A)) is amended by striking subparagraph (A) and inserting the following: (A)any area described in section 3002(28)(A)(i) of the Consolidated Farm and Rural Development Act; and .

6102.

Guarantees for bonds and notes issued for electrification or telephone purposes

Section 313A(f) of the Rural Electrification Act of 1936 (7 U.S.C. 940c–1(f)) is amended by striking 2012 and inserting 2018.

6103.

Expansion of 911 access

Section 315(d) of the Rural Electrification Act of 1936 (7 U.S.C. 940e(d)) is amended by striking 2012 and inserting 2018.

6104.

Access to broadband telecommunications services in rural areas

Section 601 of the Rural Electrification Act of 1936 (7 U.S.C. 950bb) is amended— (1)in subsection (a), by striking loans and and inserting grants, loans, and; (2)in subsection (b), by striking paragraph (3) and inserting the following: (3)

Rural area

The term rural area means any area described in section 3002 of the Consolidated Farm and Rural Development Act. (4)

Ultra-high speed service

The term ultra-high speed service means broadband service operating at a 1 gigabit per second downstream transmission capacity. ; (3)in subsection (c)— (A)in the subsection heading, by striking Loans and and inserting Grants, loans, and; (B)in paragraph (1), by inserting make grants and after Secretary shall; (C)by striking paragraph (2) and inserting the following: (2)

Priority

(A)

In general

In making grants, loans, or loan guarantees under paragraph (1), the Secretary shall— (i)establish not less than 2, and not more than 4, evaluation periods for each fiscal year to compare grant, loan, and loan guarantee applications and to prioritize grants, loans, and loan guarantees to all or part of rural communities that do not have residential broadband service that meets the minimum acceptable level of broadband service established under subsection (e); (ii)give the highest priority to applicants that offer to provide broadband service to the greatest proportion of unserved rural households or rural households that do not have residential broadband service that meets the minimum acceptable level of broadband service established under subsection (e), as— (I)certified by the affected community, city, county, or designee; or (II)demonstrated on— (aa)the broadband map of the affected State if the map contains address-level data; or (bb)the National Broadband Map if address-level data is unavailable; and (iii)provide equal consideration to all qualified applicants, including those that have not previously received grants, loans, or loan guarantees under paragraph (1). (B)

Other

After giving priority to the applicants described in subparagraph (A), the Secretary shall then give priority to projects that serve rural communities— (i)with a population of less than 20,000 permanent residents; (ii)experiencing outmigration; (iii)with a high percentage of low-income residents; and (iv)that are isolated from other significant population centers. ; and (D)by adding at the end the following: (3)

Grant amounts

(A)

Eligibility

To be eligible for a grant under this section, the project that is the subject of the grant shall be carried out in a rural area. (B)

Maximum

Except as provided in subparagraph (D), the amount of any grant made under this section shall not exceed 50 percent of the development costs of the project for which the grant is provided. (C)

Grant rate

The Secretary shall establish the grant rate for each project in accordance with regulations issued by the Secretary that shall provide for a graduated scale of grant rates that establish higher rates for projects in communities that have— (i)remote locations; (ii)low community populations; (iii)low income levels; (iv)developed the applications of the communities with the participation of combinations of stakeholders, including— (I)State, local, and tribal governments; (II)nonprofit institutions; (III)institutions of higher education; (IV)private entities; and (V)philanthropic organizations; and (v)targeted funding to provide the minimum acceptable level of broadband service established under subsection (e) in all or part of an unserved community that is below that minimum acceptable level of broadband service. (D)

Secretarial authority to adjust

The Secretary may make grants of up to 75 percent of the development costs of the project for which the grant is provided to an eligible entity if the Secretary determines that the project serves a remote or low income area that does not have access to broadband service from any provider of broadband service (including the applicant). ; (4)in subsection (d)— (A)in paragraph (1)(A)— (i)in the matter preceding clause (i), by striking loan or and inserting grant, loan, or; (ii)by striking clause (i) and inserting the following: (i)demonstrate the ability— (I)to furnish, improve in order to meet the minimum acceptable level of broadband service established under subsection (e), or extend broadband service to all or part of an unserved rural area or an area below the minimum acceptable level of broadband service established under subsection (e); or (II)to carry out a project under paragraph (4)(B)(ii); ; (iii)in clause (ii), by striking a loan application and inserting an application; and (iv)in clause (iii)— (I)by striking the loan application and inserting the application; and (II)by striking proceeds from the loan made or guaranteed under this section are and inserting assistance under this section is; (B)in paragraph (2)— (i)in subparagraph (A)— (I)in the matter preceding clause (i)— (aa)by striking the proceeds of a loan made or guaranteed and inserting assistance; and (bb)by striking for the loan or loan guarantee and inserting of the eligible entity; (II)in clause (i), by striking is offered broadband service by not more than 1 incumbent service provider and inserting are unserved or have service levels below the minimum acceptable level of broadband service established under subsection (e); and (III)in clause (ii), by striking 3 and inserting 2; (ii)by striking subparagraph (B) and inserting the following: (B)

Adjustments

(i)

Increase

The Secretary may increase the household percentage requirement under subparagraph (A)(i) if— (I)more than 25 percent of the costs of the project are funded by grants made under this section; or (II)the proposed service territory includes 1 or more communities with a population in excess of 20,000. (ii)

Reduction

The Secretary may reduce the household percentage requirement under subparagraph (A)(i)— (I)to not less than 15 percent, if the proposed service territory does not have a population in excess of 5,000 people; or (II)to not less than 18 percent, if the proposed service territory does not have a population in excess of 7,500 people. ; and (iii)in subparagraph (C)— (I)in the subparagraph heading, by striking 3 and inserting 2; (II)in clause (i), by inserting the minimum acceptable level of broadband service established under subsection (e) in after service to; and (III)by striking clause (ii) and inserting the following: (ii)

Exceptions

Clause (i) shall not apply if— (I)the applicant is eligible for funding under another title of this Act; or (II)the project is being carried out under paragraph (4)(B)(ii), unless an incumbent service provider is providing ultra-high speed service as of the date of an application for assistance submitted to the Secretary under this section. ; (C)in paragraph (3)— (i)in subparagraph (A), by striking loan or and inserting grant, loan, or; and (ii)in subparagraph (B), by adding at the end the following: (iii)

Information

Information submitted under this subparagraph shall be— (I)certified by the affected community, city, county, or designee; and (II)demonstrated on— (aa)the broadband map of the affected State if the map contains address-level data; or (bb)the National Broadband Map if address-level data is unavailable. ; (D)in paragraph (4)— (i)by striking Subject to paragraph (1), and inserting the following: (A)

In general

Subject to paragraph (1) and subparagraph (B), ; (ii)by striking loan or and inserting grant, loan, or; and (iii)by adding at the end the following: (B)

Pilot programs

The Secretary shall establish pilot programs under which the Secretary may, at the discretion of the Secretary, provide grants, loans, or loan guarantees under this section to eligible entities, including interested entities described in subparagraph (A)— (i)to address areas that are unserved or have service levels below the minimum acceptable level of broadband service established under subsection (e); or (ii)for the purposes of providing a proposed service territory with ultra-high speed service, subject to the conditions that— (I)not more than 5 projects, and not more than 1 project in any State, shall be carried out under this clause during the period beginning on the date of enactment of this Act and ending on September 30, 2018; (II)for each fiscal year, not more than 10 percent of the funds made available under subsection (l) shall be used to carry out this clause; (III)for each fiscal year, not more than 20 percent of the funds made available under subclause (II) shall be used for any 1 project; and (IV)paragraph (2)(A)(i) shall apply to the project, unless— (aa)the Secretary determines that no other project in the State is funded under this section; and (bb)no application for any other project that could be funded under this section, other than under this clause, is pending in the State. ; (E)in paragraph (5)— (i)in the matter preceding subparagraph (A), by striking loan or and inserting grant, loan, or; and (ii)in subparagraph (C), by inserting , and proportion relative to the service territory, after estimated number; (F)in paragraph (6), by striking loan or and inserting grant, loan, or; (G)in paragraph (7), by striking a loan application and inserting an application; and (H)by adding at the end the following: (8)

Transparency and reporting

The Secretary— (A)shall require any entity receiving assistance under this section to submit quarterly, in a format specified by the Secretary, a report that describes— (i)the use by the entity of the assistance, including new equipment and capacity enhancements that support high-speed broadband access for educational institutions, health care providers, and public safety service providers (including the estimated number of end users who are currently using or forecasted to use the new or upgraded infrastructure); and (ii)the progress towards fulfilling the objectives for which the assistance was granted, including— (I)the number and location of residences and businesses that will receive new broadband service, existing network service improvements, and facility upgrades resulting from the Federal assistance; (II)the speed of broadband service; (III)the price of broadband service; (IV)any changes in broadband service adoption rates, including new subscribers generated from demand-side projects; and (V)any other metrics the Secretary determines to be appropriate; (B)shall maintain a fully searchable database, accessible on the Internet at no cost to the public, that contains, at a minimum— (i)a list of each entity that has applied for assistance under this section; (ii)a description of each application, including the status of each application; (iii)for each entity receiving assistance under this section— (I)the name of the entity; (II)the type of assistance being received; (III)the purpose for which the entity is receiving the assistance; and (IV)each quarterly report submitted under subparagraph (A); and (iv)such other information as is sufficient to allow the public to understand and monitor assistance provided under this section; (C)shall, in addition to other authority under applicable law, establish written procedures for all broadband programs administered by the Secretary that, to the maximum extent practicable— (i)recover funds from loan defaults; (ii)(I)deobligate awards to grantees that demonstrate an insufficient level of performance (including failure to meet build-out requirements, service quality issues, or other metrics determined by the Secretary) or wasteful or fraudulent spending; and (II)award those funds, on a competitive basis, to new or existing applicants consistent with this section; and (iii)consolidate and minimize overlap among the programs; (D)with respect to an application for assistance under this section, shall— (i)promptly post on the website of the Rural Utility Service— (I)an announcement that identifies— (aa)each applicant; (bb)the amount and type of support requested by each applicant; and (II)a list of the census block groups or proposed service territory, in a manner specified by the Secretary, that the applicant proposes to service; (ii)provide not less than 15 days for broadband service providers to voluntarily submit information about the broadband services that the providers offer in the groups or tracts listed under clause (i)(II) so that the Secretary may assess whether the applications submitted meet the eligibility requirements under this section; and (iii)if no broadband service provider submits information under clause (ii), consider the number of providers in the group or tract to be established by reference to— (I)the most current National Broadband Map of the National Telecommunications and Information Administration; or (II)any other data regarding the availability of broadband service that the Secretary may collect or obtain through reasonable efforts; and (E)may establish additional reporting and information requirements for any recipient of any assistance under this section so as to ensure compliance with this section. ; (5)in subsection (e)— (A)by redesignating paragraph (2) as paragraph (3); and (B)by striking paragraph (1) and inserting the following: (1)

In general

Subject to paragraph (2), for purposes of this section, the minimum acceptable level of broadband service for a rural area shall be at least— (A)a 4-Mbps downstream transmission capacity; and (B)a 1-Mbps upstream transmission capacity. (2)

Adjustments

(A)

In general

At least once every 2 years, the Secretary shall review, and may adjust, the minimum acceptable level of broadband service established under paragraph (1) to ensure that high quality, cost-effective broadband service is provided to rural areas over time. (B)

Considerations

In making an adjustment to the minimum acceptable level of broadband service under subparagraph (A), the Secretary may consider establishing different transmission rates for fixed broadband service and mobile broadband service. ; (6)in subsection (f), by striking make a loan or loan guarantee and inserting provide assistance; (7)in subsection (g), by striking paragraph (2) and inserting the following: (2)

Terms

In determining the term and conditions of a loan or loan guarantee, the Secretary may— (A)consider whether the recipient would be serving an area that is unserved; and (B)if the Secretary makes a determination in the affirmative under subparagraph (A), establish a limited initial deferral period or comparable terms necessary to achieve the financial feasibility and long-term sustainability of the project. ; (8)in subsection (j)— (A)in the matter preceding paragraph (1), by striking loan and loan guarantee; (B)in paragraph (1)— (i)by inserting grants and after number of; and (ii)by inserting , including any loan terms or conditions for which the Secretary provided additional assistance to unserved areas before the semicolon at the end; (C)in paragraph (2)— (i)in subparagraph (A), by striking loan; and (ii)in subparagraph (B), by striking loans and and inserting grants, loans, and; (D)in paragraph (3), by striking loan; (E)in paragraph (5), by striking and at the end; (F)in paragraph (6), by striking the period at the end and inserting ; and; and (G)by adding at the end the following: (7)the overall progress towards fulfilling the goal of improving the quality of rural life by expanding rural broadband access, as demonstrated by metrics, including— (A)the number of residences and businesses receiving new broadband services; (B)network improvements, including facility upgrades and equipment purchases; (C)average broadband speeds and prices on a local and statewide basis; (D)any changes in broadband adoption rates; and (E)any specific activities that increased high speed broadband access for educational institutions, health care providers. and public safety service providers. ; and (9)by redesignating subsections (k) and (l) as subsections (l) and (m), respectively; (10)by inserting after subsection (j) the following: (k)

Broadband buildout data

(1)

In general

As a condition of receiving a grant, loan, or loan guarantee under this section, a recipient of assistance shall provide to the Secretary address-level broadband buildout data that indicates the location of new broadband service that is being provided or upgraded within the service territory supported by the grant, loan, or loan guarantee— (A)for purposes of inclusion in the semiannual updates to the National Broadband Map that is managed by the National Telecommunications and Information Administration (referred to in this subsection as the Administration); and (B)not later than 30 days after the earlier of— (i)the date of completion of any project milestone established by the Secretary; or (ii)the date of completion of the project. (2)

Address-level data

Effective beginning on the date the Administration receives data described in paragraph (1), the Administration shall use only address-level broadband buildout data for the National Broadband Map. (3)

Corrections

(A)

In general

The Secretary shall submit to the Administration any correction to the National Broadband Map that is based on the actual level of broadband coverage within the rural area, including any requests for a correction from an elected or economic development official. (B)

Incorporation

Not later than 30 days after the date on which the Administration receives a correction submitted under subparagraph (A), the Administration shall incorporate the correction into the National Broadband Map. (C)

Use

If the Secretary has submitted a correction to the Administration under subparagraph (A), but the National Broadband Map has not been updated to reflect the correct by the date on which the Secretary is making a grant or loan award decision under this section, the Secretary may use the correction submitted under that subparagraph for purposes of make the grant or loan award decision. ; (11)subsection (l) (as redesignated by paragraph (9))— (A)in paragraph (1)— (i)by striking $25,000,000 and inserting $50,000,000; and (ii)by striking 2012 and inserting 2018; and (B)in paragraph (2)(A)— (i)in clause (i), by striking and at the end; (ii)in clause (ii), by striking the period at the end and inserting ; and; and (iii)by adding at the end the following: (iii)set aside at least 1 percent to be used for— (I)conducting oversight under this section; and (II)implementing accountability measures and related activities authorized under this section. ; and (12)in subsection (m) (as redesignated by paragraph (9))— (A)by striking loan or and inserting grant, loan, or; and (B)by striking 2012 and inserting 2018.

C

Miscellaneous

6201.

Distance learning and telemedicine

(a)

Authorization of appropriations

Section 2335A of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa–5) is amended by striking 2012 and inserting 2018. (b)

Conforming amendment

Section 1(b) of Public Law 102–551 (7 U.S.C. 950aaa note) is amended by striking 2012 and inserting 2018.

6202.

Definition of rural area for purposes of the Housing Act of 1949

The second sentence of section 520 of the Housing Act of 1949 (42 U.S.C. 1490) is amended— (1)by striking 1990 or 2000 decennial census shall continue to be so classified until the receipt of data from the decennial census in the year 2010 and inserting 1990, 2000, or 2010 decennial census, and any area deemed to be a rural area for purposes of this title under any other provision of law at any time during the period beginning January 1, 2000, and ending December 31, 2010, shall continue to be so classified until the receipt of data from the decennial census in the year 2020; and (2)by striking 25,000 and inserting 35,000.

6203.

Rural energy savings program

Subtitle E of title VI of the Farm Security and Rural Investment Act of 2002 (Public Law 107–171; 116 Stat. 424) is amended by adding at the end the following:

6407.

Rural energy savings program

(a)

Purpose

The purpose of this section is to create jobs, promote rural development, and help rural families and small businesses achieve cost savings by providing loans to qualified consumers to implement durable cost-effective energy efficiency measures. (b)

Definitions

In this section: (1)

Eligible entity

The term eligible entity means— (A)any public power district, public utility district, or similar entity, or any electric cooperative described in section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986, that borrowed and repaid, prepaid, or is paying an electric loan made or guaranteed by the Rural Utilities Service (or any predecessor agency); (B)any entity primarily owned or controlled by 1 or more entities described in subparagraph (A); or (C)any other entity that is an eligible borrower of the Rural Utility Service, as determined under section 1710.101 of title 7, Code of Federal Regulations (or a successor regulation). (2)

Energy efficiency measures

The term energy efficiency measures means, for or at property served by an eligible entity, structural improvements and investments in cost-effective, commercial technologies to increase energy efficiency. (3)

Qualified consumer

The term qualified consumer means a consumer served by an eligible entity that has the ability to repay a loan made under subsection (d), as determined by the eligible entity. (4)

Secretary

The term Secretary means the Secretary of Agriculture, acting through the Administrator of the Rural Utilities Service. (c)

Loans to Eligible Entities

(1)

In general

Subject to paragraph (2), the Secretary shall make loans to eligible entities that agree to use the loan funds to make loans to qualified consumers for the purpose of implementing energy efficiency measures. (2)

Requirements

(A)

In general

As a condition of receiving a loan under this subsection, an eligible entity shall— (i)establish a list of energy efficiency measures that is expected to decrease energy use or costs of qualified consumers; (ii)prepare an implementation plan for use of the loan funds, including use of any interest to be received pursuant to subsection (d)(1)(A); (iii)provide for appropriate measurement and verification to ensure— (I)the effectiveness of the energy efficiency loans made by the eligible entity; and (II)that there is no conflict of interest in carrying out this section; and (iv)demonstrate expertise in effective use of energy efficiency measures at an appropriate scale. (B)

Revision of list of energy efficiency measures

Subject to the approval of the Secretary, an eligible entity may update the list required under subparagraph (A)(i) to account for newly available efficiency technologies. (C)

Existing energy efficiency programs

An eligible entity that, at any time before the date that is 60 days after the date of enactment of this section, has established an energy efficiency program for qualified consumers may use an existing list of energy efficiency measures, implementation plan, or measurement and verification system of that program to satisfy the requirements of subparagraph (A) if the Secretary determines the list, plan, or systems are consistent with the purposes of this section. (3)

No interest

A loan under this subsection shall bear no interest. (4)

Repayment

With respect to a loan under paragraph (1)— (A)the term shall not exceed 20 years from the date on which the loan is closed; and (B)except as provided in paragraph (6), the repayment of each advance shall be amortized for a period not to exceed 10 years. (5)

Amount of advances

Any advance of loan funds to an eligible entity in any single year shall not exceed 50 percent of the approved loan amount. (6)

Special advance for start-up activities

(A)

In general

In order to assist an eligible entity in defraying the appropriate start-up costs (as determined by the Secretary) of establishing new programs or modifying existing programs to carry out subsection (d), the Secretary shall allow an eligible entity to request a special advance. (B)

Amount

No eligible entity may receive a special advance under this paragraph for an amount that is greater than 4 percent of the loan amount received by the eligible entity under paragraph (1). (C)

Repayment

Repayment of the special advance— (i)shall be required during the 10-year period beginning on the date on which the special advance is made; and (ii)at the election of the eligible entity, may be deferred to the end of the 10-year period. (7)

Limitation

All special advances shall be made under a loan described in paragraph (1) during the first 10 years of the term of the loan. (d)

Loans to qualified consumers

(1)

Terms of loans

Loans made by an eligible entity to qualified consumers using loan funds provided by the Secretary under subsection (c)— (A)may bear interest, not to exceed 3 percent, to be used for purposes that include— (i)to establish a loan loss reserve; and (ii)to offset personnel and program costs of eligible entities to provide the loans; (B)shall finance energy efficiency measures for the purpose of decreasing energy usage or costs of the qualified consumer by an amount that ensures, to the maximum extent practicable, that a loan term of not more than 10 years will not pose an undue financial burden on the qualified consumer, as determined by the eligible entity; (C)shall not be used to fund purchases of, or modifications to, personal property unless the personal property is or becomes attached to real property (including a manufactured home) as a fixture; (D)shall be repaid through charges added to the electric bill for the property for, or at which, energy efficiency measures are or will be implemented, on the condition that this requirement does not prohibit— (i)the voluntary prepayment of a loan by the owner of the property; or (ii)the use of any additional repayment mechanisms that are— (I)demonstrated to have appropriate risk mitigation features, as determined by the eligible entity; or (II)required if the qualified consumer is no longer a customer of the eligible entity; and (E)shall require an energy audit by an eligible entity to determine the impact of proposed energy efficiency measures on the energy costs and consumption of the qualified consumer. (2)

Contractors

In addition to any other qualified general contractor, eligible entities may serve as general contractors. (e)

Contract for measurement and verification, training, and technical assistance

(1)

In general

Not later than 90 days after the date of enactment of this section, the Secretary— (A)shall establish a plan for measurement and verification, training, and technical assistance of the program; and (B)may enter into 1 or more contracts with a qualified entity for the purposes of— (i)providing measurement and verification activities; and (ii)developing a program to provide technical assistance and training to the employees of eligible entities to carry out this section. (2)

Use of subcontractors authorized

A qualified entity that enters into a contract under paragraph (1) may use subcontractors to assist the qualified entity in carrying out the contract. (f)

Fast Start demonstration projects

(1)

In general

The Secretary shall offer to enter into agreements with eligible entities (or groups of eligible entities) that have energy efficiency programs described in subsection (c)(2)(C) to establish an energy efficiency loan demonstration projects consistent with the purposes of this section. (2)

Evaluation criteria

In determining which eligible entities to award loans under this section, the Secretary shall take into consideration eligible entities that— (A)implement approaches to energy audits and investments in energy efficiency measures that yield measurable and predictable savings; (B)use measurement and verification processes to determine the effectiveness of energy efficiency loans made by eligible entities; (C)include training for employees of eligible entities, including any contractors of such entities, to implement or oversee the activities described in subparagraphs (A) and (B); (D)provide for the participation of a majority of eligible entities in a State; (E)reduce the need for generating capacity; (F)provide efficiency loans to— (i)in the case of a single eligible entity, not fewer than 20,000 consumers; or (ii)in the case of a group of eligible entities, not fewer than 80,000 consumers; and (G)serve areas in which, as determined by the Secretary, a large percentage of consumers reside— (i)in manufactured homes; or (ii)in housing units that are more than 50 years old. (3)

Deadline for implementation

To the maximum extent practicable, the Secretary shall enter into agreements described in paragraph (1) by not later than 90 days after the date of enactment of this section. (4)

Effect on availability of loans nationally

Nothing in this subsection shall delay the availability of loans to eligible entities on a national basis beginning not later than 180 days after the date of enactment of this section. (5)

Additional demonstration project authority

(A)

In general

The Secretary may conduct demonstration projects in addition to the project required by paragraph (1). (B)

Inapplicability of certain criteria

The additional demonstration projects may be carried out without regard to subparagraphs (D), (F), or (G) of paragraph (2). (g)

Additional authority

The authority provided in this section is in addition to any other authority of the Secretary to offer loans under any other law. (h)

Effective Period

Subject to the availability of funds and except as otherwise provided in this section, the loans and other expenditures required to be made under this section shall be available until expended, with the Secretary authorized to make new loans as loans are repaid. (i)

Regulations

(1)

In general

Except as otherwise provided in this subsection, not later than 180 days after the date of enactment of this section, the Secretary shall promulgate such regulations as are necessary to implement this section. (2)

Procedure

The promulgation of the regulations and administration of this section shall be made without regard to— (A)the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking; and (B)chapter 35 of title 44, United States Code (commonly known as the Paperwork Reduction Act). (3)

Congressional review of agency rulemaking

In carrying out this section, the Secretary shall use the authority provided under section 808 of title 5, United States Code. (4)

Interim regulations

Notwithstanding paragraphs (1) and (2), to the extent regulations are necessary to carry out any provision of this section, the Secretary shall implement such regulations through the promulgation of an interim rule.

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6204.

Funding of pending rural development loan and grant applications

(a)

In general

The Secretary shall use funds made available under subsection (b) to provide funds for applications that are pending on the date of enactment of this Act in accordance with the terms and conditions of section 6029 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1955). (b)

Funding

Notwithstanding any other provision of law, beginning in fiscal year 2014, of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $150,000,000, to remain available until expended.

6205.

Study of rural transportation issues

(a)

In general

The Secretary and the Secretary of Transportation shall jointly conduct a study of transportation issues regarding the movement of agricultural products, domestically produced renewable fuels, and domestically produced resources for the production of electricity for rural areas of the United States, and economic development in those areas. (b)

Inclusions

The study shall include an examination of— (1)the importance of freight transportation, including rail, truck, and barge, to— (A)the delivery of equipment, seed, fertilizer, and other products important to the development of agricultural commodities and products; (B)the movement of agricultural commodities and products to market; (C)the delivery of ethanol and other renewable fuels; (D)the delivery of domestically produced resources for use in the generation of electricity for rural areas; (E)the location of grain elevators, ethanol plants, and other facilities; (F)the development of manufacturing facilities in rural areas; and (G)the vitality and economic development of rural communities; (2)the sufficiency in rural areas of transportation capacity, the sufficiency of competition in the transportation system, the reliability of transportation services, and the reasonableness of transportation rates; (3)the sufficiency of facility investment in rural areas necessary for efficient and cost-effective transportation; and (4)the accessibility to shippers in rural areas of Federal processes for the resolution of grievances arising within various transportation modes. (c)

Report to congress

Not later than 1 year after the date of enactment of this Act, the Secretary and the Secretary of Transportation shall submit a report to Congress that contains the results of the study required under subsection (a). (d)

Periodic updates

The Secretary and the Secretary of Transportation shall publish triennially an updated version of the study described in subsection (a).

6206.

Agricultural transportation policy

Section 203 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1622) is amended by striking subsection (j) and inserting the following: (j)

Policy development proceedings

The Secretary shall participate on behalf of the interests of agriculture and rural America in all policy development proceedings or other proceedings of the Surface Transportation Board that may establish freight rail transportation policy affecting agriculture and rural America. .

6207.

Value-added agricultural market development program grants

Section 231(b) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1632a(b)) is amended— (1)in paragraph (6)— (A)in subparagraph (B), by striking and at the end; (B)in subparagraph (C), by striking the period at the end and inserting ; and; and (C)by adding at the end the following: (D)veteran farmers or ranchers (as defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e))). ; and (2)in paragraph (7)(B), by striking 2012 and inserting 2017.

Secretary