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INTRODUCTION

INVESTING IN RURAL AMERICA

RURAL HOUSING

The Committee held a special hearing to discuss economic conditions in rural America with USDA's Economic Research Service (ERS). A recent ERS report found that 302 of the America's non-metro counties are `housing stressed.' ERS said:

In these counties, at least 30 percent of households failed to meet widely used standards for minimum basic amenities in 2000. This categorization of household-level housing stress requires that one or more of the following conditions be met: (1) housing expense/income threshold--expenses exceed 30 percent of income, (2) crowding--more household members than rooms, (3) incomplete plumbing--home lacked necessary bathroom facilities, and (4) incomplete kitchen--home lacked essential kitchen facilities.

These are shocking findings. To begin addressing these needs, the bill makes significant investments in rural housing. The bill includes $212 million to provide $5.1 billion in affordable direct and guaranteed home loans for low- and moderate-income families in rural areas, with no increase in fees. The President's budget eliminated direct loans and shifted funding to guaranteed loans with a one percent increase in fees, making these loans more expensive and not as accessible for low-income families. The bill restores the multi-family rental housing program and provides four times the level of funding for mutual and self-help housing grants, which allow low-income families in rural areas to build their own houses. The bill substantially increases funding for the farm labor housing programs, supporting $75 million in affordable loans and grants for farmworker housing.

CLEAN WATER IN RURAL AMERICA

According to government estimates, rural communities face tens of billions of dollars in costs for safe drinking water and wastewater treatment systems. USDA water and waste funding is only available to communities that cannot fund the projects themselves or that cannot get financing commercially at reasonable rates. USDA programs also give priority to smaller communities, those with serious health needs and lower incomes. Yet, these programs are already over-subscribed. As of September 30, 2006 there were 985 applications seeking $2.3 billion in assistance that could not be funded.

To begin addressing these needs, the bill provides $500 million for rural water and waste disposal grants and $1 billion for water and waste direct loans. Importantly, the bill reverses the administration's proposed cut to the grant program and provides a 14 percent ($62 million) increase over 2007 levels.

SUPPORTING RURAL COMMUNITIES

Federal investment is critical to facilitate growth in rural areas, and to soften the impact of population loss. The bill provides a 37 percent increase in grants to rural areas for critical community facilities, such as health care, educational, public safety and day care facilities and also provides increases in the community facility loan programs. Rural areas often confront a tremendous gap when it comes to educational and medical resources and this bill helps close that gap, providing $10 million more than the administration requested for distance learning and telemedicine grants. It also restores funding to twice the level provided in 2007 for the broadband grant program that the budget eliminated.

PROTECTING PUBLIC HEALTH

FOOD SAFETY

As many recent recalls have shown--from spinach and seafood to peanut butter and pet-food--our food safety system today is dangerously inadequate. Consumers have reason to worry that the system they count on to protect them is no longer working, and the food they feed their families is not as safe as it should be. That must change. We must transform the way we meet our obligation to protect the public health.

This bill fully funds the request for the Food Safety and Inspection Service at USDA. To maximize the funds' positive impact on safety, the bill shifts additional funds within the account to address vacancies in federal meat inspector positions. The Committee also provides an increase of $28 million over the budget request for food safety at the Food and Drug Administration (FDA) for what it hopes will be the first step in a fundamental transformation in the regulation of food safety at FDA. The Committee directs FDA to submit a plan to begin changing its approach to food safety when it submits the fiscal year 2009 budget, giving the Committee time to review the plan before the funds to implement it become available on July 1, 2008. In addition to these funds, the bill provides more than $131 million for food safety research at USDA

FOOD AND DRUG ADMINISTRATION

The Committee fully funds the request for the FDA and provides targeted increases of $55 million. As noted above, the Committee provides an increase for food safety activities following submission of a comprehensive plan by the administration. It also ensures that funding levels for FDA's field operations are not reduced and provides additional funding for key activities, such as speeding up generic drug application reviews, post-market drug safety reviews and review of direct to consumer drug ads.

IMPROVING NUTRITION FOR MORE AMERICANS

NUTRITION

The bill provides critical resources to address our nation's obesity crisis, teaching our children better eating habits and helping them avoid conditions such as diabetes which afflict so many children today. The bill provides a nearly eight percent increase over 2007 funding, including a record level of funding for the Expanded Food and Nutrition Education Program (EFNEP) at $68.5 million.

FEEDING THOSE IN NEED

The bill provides record funding for two fundamental food security programs: the Supplemental Nutrition Program for Women, Infants and Children (WIC) and the Commodity Supplemental Food Program (CSFP). These programs serve our country's most vulnerable populations. Nearly 30 percent of the total discretionary funding in this bill goes to the WIC program. To meet increased program costs due to rising food prices, the Committee has provided an increase of $416 million over the 2007 level and $233 million over the request. The bill also provides $150 million for the CSFP program, which the President's budget eliminated. This level will both increase caseloads in current states and allow additional states to participate in the program. The bill also includes language that will ease administrative burdens on states that wish to participate in the summer food program, which the Committee believes will allow many more children to be reached by this program. Working poor households should not have to choose between securing adequate food for their kids and other basics they need just to get by.

TRANSFORMING OUR ENERGY FUTURE

RENEWABLE ENERGY

Energy independence means investing in our communities and plugging their resources and workforce into vibrant, expanding markets. To promote renewable energy and move us further down the path to energy independence, the bill provides nearly twice as much funding than was provided last year and more than 20 percent more than requested. The bill provides resources for research, assistance to farmers and ranchers, and loans to businesses. It makes investments across the spectrum in order to grow our economy, create new jobs, lower energy prices, and begin to address global warming.

SUPPORTING CONSERVATION

The stewardship of our lands affects us all everyday and will affect our children for years to come. But existing conservation programs are under-funded. This bill restores many of the programs slated for--major reductions in the president's request, including the Grazing Lands Conservation Initiative, Resource Conservation and Development, and the watershed programs which are funded $75 million--more than double last year's levels.

INVESTING IN RESEARCH

As we all know, research is at the core of maintaining U.S. agriculture's place in the forefront of scientific discovery and development. And these efforts are critical to maintaining our edge in areas such as crop development, nutrition research, food safety and immediate responsiveness to incoming threats. For research at our nation's universities and other important activities under CSREES, the mark provides an increase of $179 million over the president's request for CSREES, including $109 million for research and education. For federally funded research, the bill provides an increase of $54.8 million over the President's budget.

ENHANCED OVERSIGHT

The Committee shares concerns about waste, fraud and abuse in key farm programs such as those run by the Farm Service Agency and the Risk Management Agency. The Committee has included language requested by the administration to allow the Risk Management Agency to use up to $11,166,000 in mandatory crop insurance funds to strengthen its ability to oversee the program by maintaining and upgrading IT systems and other methods of detecting dubious claims. Continuing work on an information management system will assist RMA and the Farm Service Agency in spotting potential problems in programs under both agencies. The Committee has also included an increase of $2 million for the Office of Inspector General for high priority work on waste, fraud and abuse, as part of a long term effort to rebuild the office's resources.

Finally, the Committee makes note throughout this report of agencies that are delinquent in responding to OIG or Government Accountability Office reports and calls for plans from such agencies for how they will respond to such reports promptly.

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Production, Processing and Marketing

Executive Operations

For the Office of the Secretary, the Committee provides an appropriation of $5,505,000, an increase of $408,000 above the amount available for fiscal year 2007 and a decrease of $12,850,000 below the budget request.

The Committee recommendation includes a total of $1,611,000 for cross-cutting trade negotiations and biotechnology resources.

The Committee does not include funding for provisional reconstruction team as requested.

For the Chief Economist, the Committee provides an appropriation of $10,847,000, an increase of $360,000 above the amount available for fiscal year 2007 and a decrease of $500,000 below the budget request.

For the Office of Budget and Program Analysis, the Committee provides an appropriation of $8,622,000, an increase of $352,000 above the amount available for fiscal year 2007 and a decrease of $413,000 below the budget request.

For the Homeland Security Staff, the Committee provides an appropriation of $2,252,000, an increase of $1,321,000 above the amount available for fiscal year 2007 and a decrease of $160,000 below the budget request.

The Committee recommendation includes an increase of $1,274,000 for additional staff years transferred to the Homeland Security Staff from the Office of Inspector General.

For the Office of the Chief Information Officer, the Committee provides an appropriation of $16,723,000, an increase of $362,000 above the amount available for fiscal year 2007 and a decrease of $301,000 below the budget request.

E-gov assessments.--The Committee is deeply troubled by the escalating costs of electronic government (`e-gov') initiatives. Between fiscal years 2005 and 2006, the amount USDA agencies paid for e-gov initiatives rose by 45 percent--from $33,837,000 to $49,086,000. Within these totals, the amount for presidential e-gov initiatives increased over two and a half times--from $8,609,000 in 2005 to $22,953,000 in 2006. Since these costs are borne by the agencies and Congress did not provide increases to the agencies for these costs, in most circumstances the agencies must absorb the rising costs of e-gov initiatives by cutting back on program funding

For the Office of the Chief Financial Officer, the Committee provides an appropriation of $6,076,000, an increase of $226,000 above the amount available for fiscal year 2007 and a decrease of $24,787,000 below the budget request.

For the Office of the Assistant Secretary for Civil Rights, the Committee provides an appropriation of $897,000, an increase of $79,000 above the amount available for fiscal year 2007 and the same amount as the budget request.

For the Office of Civil Rights, the Committee recommends an appropriation of $23,147,000, an increase of $3,127,000 above the amount available for fiscal year 2007 and the same amount as the budget request.

For the Office of the Assistant Secretary for Administration, the Committee provides an appropriation of $709,000, an increase of $36,000 above the amount available for fiscal year 2007 and a decrease of $30,000 below the budget request

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Minors in Agriculture.--The Committee is concerned with the number of injuries and deaths of minors in agriculture. Current child labor law permits children as young as 12 years of age to work in the fields under very specific limitations, such as non-hazardous work that occurs beyond school hours. However, according to a 1998 U.S. Government Accountability Office report, workplace hazards, including pesticides, heat stress, heavy machinery, and sharp tools, combine to injure more than 100,000 children on farms every year. Between 1992 and 2000, more than 40 percent of all work-related deaths of minors in the U.S. occurred in agriculture. The Committee directs the Secretary of USDA, in collaboration with the Secretary of Labor, to develop a plan to address injuries and deaths of minors in agriculture and to submit the plan to the Committee by March 1, 2008

Apple Moth.--The Committee encourages the Secretary to utilize all funds necessary from the Commodity Credit Corporation to carry out the recommendation of the USDA science advisory panel to eradicate in California the light brown apple moth.

With two thirds of the USDA budget devoted to nutrition programs, the Committee urges the Department of Agriculture to thoroughly examine ways of linking local agriculture to nutrition program procurement. To the extent possible, the committee encourages the Department to identify funding sources to link local agriculture directly with nutrition programs serving seniors, school breakfast and lunch programs. The Committee notes growing interest in local procurement among school food service systems across the country. Local, procurement can help farmers develop Consistent markets for fresh food produced locally. The Committee encourages the Department to work with school lunch administrators, food banks and local food advocates to identify opportunities for growth in local procurement, and directs FNS to study ways to enhance local procurement in school food service and report back to the Committee within 120 days of enactment of this act.

Agricultural Buildings

For Agriculture Buildings and Facilities and Rental Payments, the Committee provides an appropriation of $196,616,000, an increase of $10,697,000 above the amount available for fiscal year 2007 and a decrease of $20,221,000 below the budget request.

Included in this amount is $156,590,000 for payments to GSA for rent and the Department of Homeland Security for building security.

Hazardous Materials Management

For Hazardous Materials Management, the Committee provides an appropriation of $12,200,000, an increase of $313,000 above the amount available for fiscal year 2007 and the same amount as the budget request.

Economic Research Service

For the Economic Research Service, the Committee provides an appropriation of $79,282,000, an increase of $4,089,000 above the amount available for fiscal year 2007 and a decrease of $3,262,000 below the budget request.

The Committee recommendation includes an increase of $1,000,000, as requested, to strengthen research and modeling capacity in bio-energy and the market impacts associated with bio-energy development.

In addition the Committee recommends an increase of $1,500,000 to strengthen and enhance the ERS market analysis and outlook program and analysis of global and differentiated product markets. The impact of agriculture production in this rapidly changing economic environment on rural economic development is of great interest and concern to the Committee.

The Committee recommendation also includes an increase of $250,000 to research deployment of broadband service to households with no or limited broadband access

Agricultural Statistics Service

For the National Agricultural Statistics Service, the Committee provides an appropriation of $166,099,000, an increase of $18,846,000 above the amount available for fiscal year 2007 and a decrease of $1,600,000 below the budget request.

Included in this amount is $52,725,000 for the Census of Agriculture, an increase of $16,476,000 above the amount available for fiscal year 2007 and a decrease of $1,600,000 below the budget request.

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Agricultural Research Service

For Salaries and Expenses of the Agricultural Research Service, the Committee provides an appropriation of $1,076,340,000, a decrease of $52,604,000 below the amount available for fiscal year 2007 and an increase of $54,823,000 above the budget request.

In addition to pay costs, the Committee provides an increase of $10,000,000 for renewable energy resources research; $1,750,000 for specialty crop genetic resources research; $400,000 for organic production systems research; $3,000,000 for food safety research; $3,000,000 for food allergen research; $2,000,000 for support of the Animal and Plant Health Inspection Service mission with respect to animal disease; $1,000,000 for support of the Animal and Plant Health Inspection Service mission with respect to plant disease; $6,500,000 for obesity research; and $5,000,000 for high priority research as determined by the Administrator.

The devastating phenomenon that has affected bees, referred to as colony collapse disorder (CCD), is seriously affecting the ability of U.S. beekeepers to maintain adequate bee supplies that are essential for the production of honey and for pollination. Pollination is responsible for an estimated $15 billion in added crop value, particularly for specialty crops such as almonds and other nuts, berries, fruits, and vegetables. The Committee understands that the ARS is conducting federal research to attempt to identify the cause or causes of CCD. The Committee notes that ARS is spending approximately $7,674,600 on bee research in fiscal year 2007, and strongly encourages the agency to maintain this funding level for this vital program in fiscal year 2008.

Plum Island Animal Disease Center- The Committee directs that none of the funds appropriated to the Agricultural Research Service for the Advanced Animal Vaccine Project at the Plum Island Animal Disease Center may be directed for any other use by the Department of Homeland Security.

As we all know, research is at the core of maintaining u.s. agriculture's place in the forefront of scientific discovery and-development. And these efforts are critical to maintaining our edge in areas such as crop development, nutrition research, food safety and immediate responsiveness to incoming threats. For--. research at our nation's universities and other important activities under CSREES. The mark provides an increase of $179 million over the president's. request for CSREES, including $109 million for research and education. For federally funded research, the bill provides. an increase of $54.8 million over the President's request.

The Committee is concerned that the USDA's RUS BroadbAS we all know, research is at the core of maintaining u.s. agriculture's place in the forefront of scientific diScovery and-development. And these efforts . are critical to maintaining our edge in areas such as crop development, nutrition research, food safety and immediate responsiveness to incoming threats. For--. research at our nation's universities and other importani activities under CSREES. the mark provides an increase of $179 million over the president's. request for CSREES, including $109 million for research and education. For federally funded research, the bill provides. an increase of $54.8 million over the President's budget.

The Committee is concerned that the USDA's RUS Broadband Loan Program has not made sufficient corrective actions in response to the critic:a1 , September 2005 report by the USDA Office of the Inspector General Loan Program has not made sufficient corrective actions in response to the critica1, September 2005 report by the USDA Office of the Inspector General.

In particular, the Committee is concerned that instead, of focusing on un-served rural ' areas that have no broadband service, the RUS continues to grant loans to areas where broadband service is already being offered by private providers. Such practices' penalize private providers that have already built broadband systems in these areas. Such practices also do nothing to further the goal of bringing broadband to un-served areas with ,no broadband while also putting at risk , taxpayer dollars by funding projects where private sector competition already' , exists. The Committee directs the USDA's Office of the Inspector General to ' reexamine the RUS Broadband Loan Program and issue a comprehensive follow up report.

Nutrition research- The Committee recognizes the importance of plant genetic and nutrition research as it relates to finding solutions for America's. Obesity concerns. The North Carolina Research Campus in Kannapolis, North Carolina, will co-locate two important groups of scientists from the University of North Carolina (UNC) School System that would combine expertise in agricultural genetics and production with nutrition scientists. The Committee encourages the USDAIARS to work with the UNG system to establish a public-private partnership at the Kannapolis research and to look for new ways to address current and future health concerns.

Continuing programs

Continuing Programs- The Committee recognizes the importance of ongoing research projects in addressing problems faced by the Nation's food and fiber producers. In this regard, the Committee directs the Agricultural Research Service to continue to fund the following areas of research at the fiscal year 2007 funding levels:

Aerial Application Research, College Station, TX, $584,089;

Animal Health Consortium, Peoria, IL, $879,430;

Animal Vaccines, Greenport, NY, $1,627,698;

Appalachian Horticulture Research (U. of TN/TN State), Poplaville, MS, $784,244; Aquaculture Fisheries Center, Pine Bluff, AR, $72,552;

Aquaculture Initiatives for Mid-Atlantic :Highlands, Leetown, WV, $543,639; Aquaculture Initiatives, Harbor Branch Oceanographic Institute, Stuttgart, AR, $1,713,477;

Aquaculture Research, Aberdeen, ID; $628,843;

Arbuscular Mycorrhizal Fungi (Rodale Inst.), Wyndmoor, PA, $45,176,;

Arkansas Children's Nutrition Center, Little Rock, AR, $584,911;

Avian Pneumovirus/Asian Bird Influenza, Athens, GA; $291,926;

Barley Health Food Benefits, Beltsville, MD, $477,009;

Bee Research, Weslaco, TX, $244,077;

Biomass Crop Production, Brookings, SD, $1,213,174;

Biomedical Materials in Plants, Biotech Foundation, Beltsville, MD, $1,821,298; Biominera1 Soil Amendments for Control of Nematode, Beltsville, MD, $390,101; Bioremediation Research, Beltsville, MD, $118,800;

Biotechnology Research Development Corporation, Peoria, IL, $2,684,737;

Bovine Genetics, Beltsville, MD, $1,913,866;

Broom weed Biological Controls, Albany, CA, $444,820;

Catfish Genome, Auburn, AL $878,046;

Center for Agro forestry, Booneville, AR, $707,706;

Central Great Plains Research Station, Akron, CO, $534,073;

Cereal Crops Research, Madison, WI, $902,338;

Cereal Disease, S1. Paul, MN, $310,971;

Chronic Diseases of Children, Houston, TX, $496,677;

Citrus Waste Utilization, Winter Haven, FL, $392,832;

Coffee and Coco Beltsville, MD, $852,966; Corn Germplasm, Ames, IA, $851,946;

Corn Rootworm, Ames, IA, $490,354;

Cotton Pathology, Shafter, CA, $361,805;

Crop Production and Food Processing, Peoria; IL, $843,393;

Cropping Systems Research, Stoneville, MS, $848,761;

Dairy Genetics, Beltsville, MD, $929,945;

Dale Bumpers Small Farms Research Center, Booneville, AR, $1,935,612;

Delta Nutrition Initiative, Little Rock, AR, $4,222,502;

Diet and Immune Function, Little Rock, AR, $34,910;

Diet Nutrition and Obesity Research (Pennington), New Orleans, LA, $668,570;

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Dryland Production, Akron, CO, $234,910; Endophyte Research, Booneville, AR, $1066,41l; Floriculture and Nursery Crops, Beltsville, MD, $2,476,226; Food Fermentation Research, Raleigh, NC, $361,805; Food Safety for Listeria and E Coli, College Station, TX, $81,356; Food Safety for Listeria; E coli, and other Food Pathogens, Beltsville, MD, $134,339; Food Safety for Meat and Produce, Beltsville, MD, $260,487; Formosan Subterranean Tennite, New Orleans, LA, $3,743,014:; Foundry Sand By-Products Utilization, Beltsville, MD, $685,412; Grand Forks Human Nutrition Research Laboratory, Grand Forks, ND, $579,739; Grape Genetics, Geneva; NY, $628,843; Grape Rootstock, Geneva; NY, $573,689; Grassland Soil and Water Research, Temple $219,665; Greenhouse and Hydroponics Research, Wooster, OR, $1,555,357; Greenlio1ise Lettuce Gennplasm, Salinas, CA, $223,573; Harry K. Dupree National Aquaculture Research Center, Stuttgart, AR, $438,598; Hops Research, Corvallis, OR, $464,258; Human Nutrition (Equipment); Boston, MA $98,208; Human Nutrition (Obesity), Boston, MA, $730,401; Improved Crop Production Practices, Auburn, AL, $1,387,021; Invasive--Aquatic Weeds, Ft. Lauderdale, FL, $526,755; Invasive Ludwigia Research, Davis, CA, $99,OOO; Johne's Disease, Beltsville, MD; $323,313: Kamal bunt, Manhattan, KS, $545,010; Lyme Disease 4 Poster Project, Beltsville, MD (National Program), $751,205; Medicinal and Bioactive Crops, Washington, DC, $118,800; Mid-West/Mid-South Irrigation, Columbia, MO, $692,377; Minor-Use Pesticides (IR-4), Beltsville, MD, $73,038; Mosquito Trapping Research/West Nile Virus, Gainesville, FL, $1,238,482; National Center for Agricultural Law, MD, $701,034; National Gennplasm Resources Program, Beltsville, MD, $145,491; Natiollal Germplasm Resources Systein, Beltsville, MD, $121,242; National Germplasm Resources, College Station TX, $242;486; National Nutrition Monitoring System, Beltsville MD, $484,969; National Plant Germplasm Program, Aberdeen, ID, $96,994; National Soil Dynamics Laboratory, Auburn, AL, $1,110,911; Natural Products for Human Health, Beltsville, MD, $237,600; Nematology Research, Tifton, GA, $248,376; Northern Great Plains Research Laboratory, Mandan, ND, $62,076; Northwest Center far--Small Fruits Research, Corvallis, OR, $645,962; Oat Virus, weSt Lafayette, IN, $232,786; Obesity Interventions (Nutricore), Beltsville, MD (National Program), $90,684; Ogallala Aquifer, Bushland, TX, $3,758,197; Olive Fruit Fly, Montpelier, France, $213,386; Olive Fruit Fly, Parlier, CA, $301,252; Organic Minor Crop, Salinas, CA, $159,036; Put Production, Dawson, GA, $74,250; Peanut Research, Dawson, GA, $131,799; Peanut Variety, Stillwater, OK, $178,200; Pecan Scab Research, Byron,GA, $603,409; Phytoestrogen Research, New Orleans, LA, $1,529,821; Pierce's Disease/Glassy-Winged Sharpshooter, Parlier and Davis, CA, $3,354,863; Pierce's DiseaseiGlassyWinged Sharpshooter, Ft.Pierce, FL, $465,631; Pineapple Nematode Research, Hilo, HI, $283,707; Plant Stress and Water Conservation Lab, Lubboc TX, $1,560,554; Potato Breeding, Prosser, WA, $135,907; Potato Diseases, Beltsville, MD, $65,490; Potato Research Enhancement, Prosser, WA, $288,057; Poult Enteritis-Mortality Syndrome, Athens, GA, $145,903; Poultry Diseases, Athens, GA, $892,344; Poultry Diseases, Beltsville, MD, $438,066; Precision Agriculture Research, Mandan, ND, $484,969; Quantify basin water budget componts in the Southwest, Tucson, AZ, $633,265; Rainbow Trout, Aberdeen, ID, $1,093,728; Red River Valley Agricultural Research Center--Canada Thistle Research, Fargo, ND,

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$263,597; Red River Valley Agricultural Research Center--Cereal Crops and Sunflower Research, Fargo, ND, $1,725,189; Red River Valley Agricultural Research Center--National Sclerotinia Initiative, Fargo, ND, $1,723,112; Red River Valley Agricultural Research Center--National Wheat and Barley Scab Initiative, Fargo, ND, $96;994; Red River Valley Agricultural Research Center. Regional Molecular Genotyping, Fargo, ND, $175,731; Red River Valley Agricultural Research Center--Wheat Quaiity Research, Fargo, ND, $193,989; Regional Grains Genotyping, Raleigh, NC, $692,645; Regional Molecular Genotyping, Pullman, WA, $251020; Residue Management in Sugarcane (Sugarcane Research), Houma, LA, $1,193,413; Rice research, Stuttgart, AR, $270;790; Seasonal Grazing, Coshocton, OH, $99,000; Seismic arid Acoustic--Technologies in Soils Sedimentation Lab, Oxford, MS, $355,546; Shellfish Genetics Research, Newport, OR, $774,966; Sorghum Cold Tolerance, Lubbock, TX, $263,597; Sorghum Ergot Research, College Station, TX, $71,500; Sorghum Research, Bushland, TX, $483,576; Sorghrim Research, Little Rock, AR, $145,491; Sorghum Research, Lubbock, TX, $974,190; Sorghum Research, Stillwater, OK, $290,982; Source Water Protection Initiatives, Columbus, OM, $750,121; Southeastern Fruit and Tree Nut Research, Byron, GA, $460,013; Southwest Pecan Research, College Station, TX, $232,786; Soybean and Nitrogen Fixation, Raleigh, NC, $408,589; Sudden Oak. Disease, Davis, CA, $317,872; Sugar beet Research, Kimberly, ID, $702,592; Sugarcane Variety Research, Canal Point, FL, $1,404,773; Sustainable Feeds, Aberdeen, ID, $99,000; Temperate Fruit Flies, Wapato, WA, $36,276; Termite Species in Hawaii, Gainesville, FL., $139,104; Tree Fruit Quality Research, Wenatchee, WA, $435,461; Tropical Aquaculture Feeds, Hilo, HI, $1,541,561; Turfgrass Research, Washington, DC, $476,911; U.S. Pacific Basin Agricultural Research Center, Hilo, HI, $2,402,726; USNA Germplasm/Ornamental Horticulture, Washington, DC, $1,655,722; Vaccines and Microbe Control for Fish Health, Auburn, AL, $1,061,777; Vectorborne Diseases, Gainesville, FL, $219,665; Verticillium Wllt, Salinas, CA, $474,223; Viticulture, Corvallis, OR, $349,179; Water Management Research Laboratory, Brawley, CA, $339,789; Water Resources Management, Tifton, GA, $586,215; Water Use Management Technology, Tifton, GA, $340,828; Water Use Reduction, Dawson, GA, $704,635; Weed Management Research, Beltsville, MD, $263,597; Wheat Quality Research, Manhattan KS, $420,028; Wheat--Quality Research, Wooster, OH, $413,654; and Wild Rice, St. Paul, MN, $324,740.

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Cooperative State Research and Extension Service

The budget request for the Cooperative State Research, Education and Extension Service (CSREES) programs totals more than $1 billion. These programs give support to our universities and to rural communities and help address critical needs. However, the Committee believes that, given the growth in the number of authorized activities funded, there may be programs within CSREES that unnecessarily duplicate the work of other programs in CSREES and that there must be measures of the effectiveness of each program in achieving its goals. While CSREES does have a strategic plan, it does not specify how each program funded contributes to the agency's goals. The Committee requests that the Secretary provide a report by October 1, 2007, describing in clear, concrete terms, what has been achieved in the past and what would be achieved in the future for each activity for which the administration sought funding in the fiscal year 2008 budget.

For Research and Education Activities, the Committee provides an appropriation of $671,419,000, the same as the amount available for fiscal year 2007 and an increase of $108,901,000 above the budget request.

For payments under the Hatch Act, the Committee provides an appropriation of $195,817,000, a decrease of $126,780,000 below the amount available for fiscal year 2007 and an increase of $31,387,000 above the budget request.

For cooperative forestry research, the Committee provides an appropriation of $23,318,000, a decrease of $6,690,000 below the amount available for fiscal year 2007 and an increase of $2,831,000 above the budget request.

For the Evans-Allen Program, the Committee provides an appropriation of $42,000,000, an increase of $1,320,000 above the amount available for fiscal year 2007 and an increase of $3,669,000 above the budget request.

For the National Research Initiative, the Committee provides an appropriation of $190,229,000, the same amount as available in fiscal year 2007 and a decrease of $66,271,000 below the budget request. The Committee directs the Secretary to provide the requested increase for bioenergy and biobased fuels research within the funds provided.

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For Hispanic Education Partnership Grants, the Committee provides an appropriation of $6,237,000, an increase of $297,000 above the amount available in fiscal year 2007 and an increase of $649,000 above the budget request.

For the Veterinary Medical Services Act, the Committee provides an appropriation of $1,000,000, an increase of $505,000 above the amount available for fiscal year 2007 and an increase of $1,000,000 above the budget request.

Food safety.--The Committee recognizes the contributions that the Food Animal Residue Avoidance Databank (FARAD) has made toward ensuring the . security of the nation's food supply. The Committee is concerned that, although USDA is fully aware of the public reliance on the database and its importance in maintaining food safety, it has continued to rely on Congress to earmark funds for the initiative, neither requesting funding in its annual budget submission nor providing another source for this information, which relates directly to the department's core mission.

Outreach for Socially Disadvantaged Farmers

For the Outreach for Socially Disadvantaged Farmers and Ranchers Program, the Committee provides an appropriation of $6,930,000, an increase of $990,000 above the amount available for fiscal year 2007 and the same amount as the budget request.

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Animal and Plant Health Inspection Service

For the Animal and Plant Health Inspection Service, Salaries and Expenses, the Committee recommends an appropriation of $874,643,000, an increase of $28,413,000 above the amount appropriated in fiscal year 2007, and a decrease of $70,907,000 below the budget request

International Activities- The Committee recommendation does not include additional funding for international activities. According to APHIS budget documents, in fiscal year 2006, the agency had 143 staff years and spent almost $67,000,000 in over 23 overseas locations. For fiscal year 2008, APHIS has requested an additional 48 staff years and an increase of $8,775,000 for three different programs to establish new overseas offices or add to current offices. This would bring the budget for international activities to almost $76,000,000.

Agricultural Quarantine Inspection.--The Committee includes an appropriation of $27,531,000 for this program, including $1,000,000 for interline activities in Hawaii.

Animal Health Monitoring and Surveillance.--The Committee recommendation includes an increase of $5,600,000 for APHIS for activities related to Viral Hemorrhagic Septicemia. The recommendation continues funding for surveillance activities for Bovine Spongiform Encephalopathy.

The Committee directs that within the amount provided, $1,980,000 is provided for a cooperative agreement with the Wisconsin Livestock Identification Consortium. This project supports the national plan to establish an animal and livestock 48-hour traceback system.

Animal Identification.--Through fiscal year 2007, a total of about $117,800,000 has been provided for a National Animal Identification System (NAIS). As of June 30, 2007, APHIS had spent $94,400,000 to register about 28 percent of all premises; develop and maintain information technology; conduct outreach and education initiatives; and pay staff for developing and managing NAIS. Of the amount spent, $6,000,000 was made available to nonprofit livestock and poultry industry organizations to advance the development of NAIS through outreach and promotional efforts. In addition, $500,000 was spent on a third party study to clarify the costs and benefits of animal identification.

Until August 2005, the Department had stated that program data would be held centrally; however, the Secretary announced in August that data would be held by private entities that meet certain requirements.

The Committee requests a complete and detailed strategic plan for the program, including tangible outcomes, measurable goals, specific milestones, and necessary resources for the entire program. Until the Committee receives this plan, the Committee has no justification to continue funding for this program and therefore, the Committee recommendation includes no new funding.

Animal and Plant Health Regulatory Enforcement.--In addition to pay costs, the Committee recommendation includes an increase of $2,042,000 as requested for additional field investigators to ensure compliance with border and animal care regulations.

Emergency Management Systems.--In addition to pay costs, the Committee recommendation includes an increase of $2,000,000, of which $1,000,000 is for animal care in emergencies and $1,000,000 for the vaccine stockpile.

High Pathogenic Avian Influenza (HPAI).--In addition to pay costs, the Committee recommendation includes an increase of $9,530,000 as requested for domestic and international surveillance, including live bird markets and wildlife. Since 2006, $118,700,000 has been provided to APHIS for HPAI work. The Committee requests a report by November 1, 2007, on how these funds have been spent.

Pest Detection.--The Committee recommendation provides $26,967,000 for this program. Within that amount, the Committee provides $831,000 in funding to continue a cooperative agreement with the California County Pest Detection Augmentation Program.

Select Agents- In addition to pay costs, the Committee recommendation includes an increase of $1,000,000 above the amount available in fiscal year 2007 to continue addressing issues raised by the Office of Inspector General.

Brucellosis.--The Committee recommendation includes $9,043,000 for this program. Within this amount, the Committee provides $900,000 for the Greater Yellowstone Interagency Brucellosis Committee to eliminate brucellosis from wildlife in the Greater Yellowstone area.

Chronic Wasting Disease.--The Committee recommendation includes $16,720,000 for this program. Within this amount, the Committee directs that $1,732,000 shall go to the State of Wisconsin.

Cotton Pests- The Committee recommendation includes the consolidation of the Boll Weevil and Pink Bollworm line items into a new Cotton Pests program, as requested. The total provided is $36,269,000, to address boll weevil, pink bollworm, and other cotton pests or diseases. This amount is $20,171,000 above the budget request.

Emerging Plant Pests- The Committee expects the Secretary of Agriculture to continue to use the authority provided in this bill to transfer funds from the Commodity Credit Corporation (CCC) for the arrest and eradication of animal and plant pests and diseases that threaten American agriculture. By providing funds in this account, the Committee is enhancing, but not replacing, the use of CCC funding for emergency outbreaks.

For emerging plant pests, the Committee includes $131,245,000, an increase of $32,704,000 above the amount available in fiscal year 2007. The Committee provides the following increased amounts for eradication and control activities: $20,007,000 for Asian Long-horned Beetle; $36,709,000 for citrus pests and diseases; $24,175,000 for Glassy-winged Sharpshooter/Pierce's Disease; $6,750,000 for Potato Cyst Nematode; $30,657,000 for Emerald Ash Borer; $6,540,000 for Sudden Oak Death; $2,764,000 for Karnal Bunt; and $3,643,000 for other miscellaneous pests and diseases.

The Committee is concerned about the spread of the Emerald Ash Borer. The Committee recommendation more than doubles the amount available in 2007 to help States with new outbreaks, such as Maryland, and States that are at risk, such as Wisconsin. While the Committee is encouraged that APHIS may have a new and less costly survey tool to use in 2008, the Committee requests that APHIS submits a plan by September 30, 2007, on how resources available in 2008 will be spent and where activities will be conducted.

The Committee provides $495,000 for hydrilla eradication around Lake Gaston in Virginia, and expects APHIS to monitor the effectiveness of hydrilla eradcation around Smith Mountain Lake in Virginia. The Committee also provides $312,000 for olive fruit fly activities in Califoria.

The Committee encourages the Secretary to transfer funds from the Commodity Credit Corporation (CCC) to ensure adequate funding is made available for the eradication of potato cyst nematode in Idaho.

Committee encourages APHIS to help eradicate gypsy moth in New Jersey and Maryland.

Johne's Disease- The Committee recommendation provides a total of $7,706,000, an increase of $4,440,000 above the budget request to maintain the current Federal share of total program costs.

Low Pathogen Avian Influenza.--The Committee recommendation provides a total of $16,800,000 as requested in the budget. This is an increase of $3,079,000 above the amount available in fiscal year 2007. Funds are provided for work with the live bird marketing system, the commercial industry and National Poultry Improvement Plan, and the National Veterinary Services Laboratories.

Noxious Weeds- The Committee recommendation includes $1,446,000 for this program. Within this amount, the Committee provides $250,000 for the Nez Perce Bio-Control Center and $296,000 for the National Biodiversity Conservation Strategy.

Tuberculosis.--In addition to pay costs, the Committee recommendation includes an increase of $1,000,000 above the amount available in fiscal year 2007 for work at major slaughter plants.

Wildlife Services Operations.--The Committee recommendation provides a total of $76,950,000 as requested in the budget. The Committee rejects APHIS's proposal to redirect funds within this line item.

The Committee provides funding for the following projects: $297,000 for Beaver management in North Carolina; $296,500 for crop and aquaculture losses in southeast Missouri; $200,000 for predation wildlife services in Virginia; $134,000 for blackbird control in Louisiana; $1,300,000 for predator control programs in Montana, Idaho, and Wyoming; $940,000 for brown tree snake management in Guam; $400,000 for Hawaii and Guam operations; $990,000 for cormorant control in New York; $200,000 for the Cooperative Livestock Protection Program in the State of Pennsylvania; $533,000 for beaver management control in Mississippi; and $1,818,000 for surveillance in North Dakota.

The Committee expects APHIS to use program funding to appropriately address rabies in Broward County, Florida

Animal Welfare.--In addition to pay costs, the Committee recommendation includes an increase of $3,170,000 above the amount available in fiscal year 2007 as requested. A total of $21,126,000 is provided for additional inspectors to further improve Animal Welfare Act enforcement

Plant Methods Development Labs.--In addition to pay costs, the Committee recommendation includes an increase of $1,000,000 above the amount available in fiscal year 2007 to support the development of detection and control tools to contain and eradicate the emerald ash borer.

Veterinary Biologics.--In addition to pay costs, the Committee recommendation includes an increase of $1,413,000 above the amount available in fiscal year 2007. Of this amount, $1,000,000 is for meeting increased demands for veterinary biologics applications, and $413,000 is for addressing containment requirements and meeting standards related to the use of select agents and toxins.

Veterinary Diagnostics.--In addition to pay costs, the Committee recommendation includes an increase of $1,000,000 above the amount available in fiscal year 2007 for highest priority needs.

Within the total for Veterinary Diagnostics, funding is provided for the following projects: $371,000 is provided for the Agricultural Biosecurity Center at Kansas State University; $100,000 for Agricultural Compliance Laboratory equipment in Delaware; and $100,000 for aquaculture monitoring technology at Kentucky State University.

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Agricultural Marketing Service

For Marketing Services of the Agricultural Marketing Service, the Committee provides an appropriation of $79,945,000, an increase of $5,008,000 above the amount available for fiscal year 2007 and an increase of $4,957,000 above the budget request.

Country-of-Origin Labeling (COOL).--The Committee recommendation includes an increase of $2,000,000 for AMS to implement COOL requirements for all covered commodities. The Committee understands that AMS is finishing the rule for fish and shellfish and is drafting a rule for all other covered commodities.

The Committee notes that AMS recently issued notices re-opening the comment period for 60 days for the proposed rule on all covered commodities, except fish and shellfish, and the interim final rule on fish and shellfish covered commodities. The Committee directs AMS to meet the following timeline:

January 17, 2008: Publish re-proposed rule for covered commodities with a 60-day comment period.

July 19, 2008: Publish final rule for all covered commodities.

July 26, 2008: Initiate Congressional review for final rule for all covered commodities.

September 30, 2008: Effective date for final rule for all covered commodities.

Microbiological Data Program (MDP).--The Committee recommendation does not include the proposed termination of MDP. It is continued at $6,200,000. In its proposal to terminate the program, AMS argued that it was difficult to determine the usefulness of the data. The Committee would like to work with AMS to implement this program as originally intended

National Organic Program.--The Committee recommendation includes $3,180,000 as requested for the National Organic Program. This represents an increase of almost 60 percent over the amount available in 2007.

The Committee continues to provide $1,000,000 in this account for the Farmers' Market Promotion Program to make grants to eligible entities for projects to establish, expand, and promote farmers' markets. The Committee directs that no entity should receive more than $75,000 in funding from the program, and requests a report on the grants made, including the entity, purpose, and location, and the administrative costs of the program by March 31, 2008.

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Payments to States and Possessions

For Payments to States and Possessions, the Committee provides an appropriation of $1,334,000, the same as the amount available for fiscal year 2007, and the same as the budget request.

Grain Inspectors, Packers and Stockyard Administration

For Grain Inspection, Packers and Stockyards Administration (GIPSA), the Committee provides $41,115,000, an increase of $3,330,000 above the amount available for fiscal year 2007, and a decrease of $3,270,000 below the budget request.

The Committee is seriously concerned about GIPSA's lack of oversight in the past on companies it is charged with regulating. The Packers and Stockyards (P&S) arm of GIPSA is charged with ensuring competitive, fair livestock, meat, and poultry markets. However, according to the agency, GIPSA has never conducted a financial audit of the large packers and has traditionally relied on the companies' auditors to ensure reported information is in compliance with the law

The Committee includes a limitation on inspection and weighing services expenses of $42,463,000, the same as the amount available for fiscal year 2007 and the same as the budget request. The bill includes authority to exceed by 10 percent the limitation on inspection and weighing services with notification to the Committees on Appropriations. This allows for flexibility if export activities require additional supervision and oversight or other uncontrollable factors occur.

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Food Safety and Inspection Service

For the Food Safety and Inspection Service, the Committee provides an appropriation of $930,120,000, an increase of $37,984,000 above the amount available for fiscal year 2007 and the same as the budget request.

The Committee does not approve the requested increase of $8,433,000 for seven additional FERN labs. While the Committee supports the goal of having adequate surge capacity for testing food in an emergency, it is troubled by the Department's abrupt change this year from its prior insistence that 100 labs were needed. It now says 25 labs are needed. This sudden change causes the Committee to question the analytical basis of this program. The Committee maintains funding for PHCDI and adds funding for food safety inspector vacancies. These funds are needed to improve the ability of FSIS to address current food safety needs.

Bonuses.--On September 29, 2006, the Under Secretary for Food Safety advised the Committee that FSIS might end that fiscal year with a balance of only several hundred thousand dollars and that it was continuing to cut spending and maintain a hiring freeze for non-frontline positions. In light of this, the Committee was very disturbed to learn that FSIS spent nearly half a million dollars on bonuses for senior FSIS officials for that year. At least 13 people received bonuses of $17,000 or more, which equates to about half of the top starting salary for a slaughter inspector. The Committee directs FSIS to use its appropriated funds for activities directly in support of the public health to the maximum available extent before using them for bonus awards for senior officials. The Committee requests a report by January 15, 2008 on any bonuses awarded to senior officials for fiscal year 2007.

Imported poultry products from China.--The Committee has included a general provision barring the use of funds in the bill to establish or implement any rule allowing poultry products from China into the U.S. This would apply to both the rule currently in effect that would allow poultry from the U.S. to be processed in China and shipped back and to a rule the Department is drafting that would allow China to export processed poultry products made from animals raised in China.

Given the recent situation involving pet foods contaminated with melamine from China and the repeated, serious food contamination incidents within China, it is clear that we cannot rely on the Chinese government to ensure its plants adhere to U.S. standards in processing. Weak government controls in China, coupled with the high incidence of H5N1 in that country, provide no assurance that the returned product is actually from U.S. poultry or that poultry carrying the H5N1 virus is not used instead of U.S.-produced poultry. While FSIS has said the products would be safe because processing would kill any H5N1 viruses, U.S. inspectors will not be standing over the shoulders of Chinese workers; in fact, U.S. inspectors would visit the Chinese plants at most once a year.

Risk-based inspection proposal.--The Committee has also included the same general provision that was enacted in P.L. 110-28 to bar FSIS from proceeding with the risk-based inspection program it announced on February 22, 2007, until the USDA Office of Inspector General (OIG) has provided its findings to the Food Safety and Inspection Service and the Committees on Appropriations of the House of Representatives and the Senate on the data used in support of the development and design of the riskbased inspection program and FSIS has addressed and resolved issues identified by OIG.

OIG has done 26 audits of FSIS since June 2000 and has repeatedly found basic problems with how the agency conducts its operations. In just two of its most recent audits of FSIS, OIG found that:

From October 2003 through June 2005, FSIS had conducted only eight initial onsite reviews from a total of 28 State MPI programs.

A significant number of establishments were excluded from Salmonella testing due to ineffective processes for identifying establishments eligible for testing.

Given the many problems found by OIG in the past and FSIS' poor track record, the Committee believes the agency must not proceed even with a pilot program until there has been a thorough review of its proposal by OIG and until all issues raised by OIG have been addressed and resolved. The Committee includes this language to ensure that there is adequate time for OIG to complete its work and for FSIS to resolve any issues that are raised.

Salmonella Verification Testing Program.--The purpose of the Salmonella Verification Testing Program is to provide FSIS with information about whether plants are controlling the level of Salmonella in their establishments. With this critical information, FSIS can then make informed regulatory decisions to further reduce pathogen contamination in meat and poultry products and improve food safety. After FSIS personnel collect, label and culture the Salmonella samples, an APHIS laboratory serotypes the positive Salmonella isolates, and then FSIS sends the isolates from raw meat and poultry products to an Agricultural Research Service Laboratory. After the ARS laboratory analyzes the samples further, it stores the information in databases.

Audit recommendations not achieving management decision within 180 days.--The Committee has received from the Office of Inspector General (OIG) for the record a list of audit reports where management decisions have not been achieved within 180 days. Included on the list were four audit reports for FSIS, with multiple open recommendations. The Committee supports OIG in its efforts to reach agreement within 180 days and directs FSIS to send the Committee a report by October 1, 2007 with a plan for reaching management decision on the outstanding issues.

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Farm Assistance Programs

For the Office of the Under Secretary for Farm and Foreign Agricultural Services, the Committee provides an appropriation of $666,000, an increase of $34,000 above the amount available for fiscal year 2007 and a decrease of $29,000 below the budget request.

Committee directs the Department to submit reports to the Committees on Appropriations of the House of Representatives and the Senate, and the agriculture authorizing committees of the House of Representatives and the Senate, within 30 days of passage of the House and Senate 2007 Farm Bills, that detail the necessary administrative resource requirements to implement the bills, including information technology expenses.

The Committee notes that the Farm Service Agency (FSA) computer system that is responsible for processing payments for all Farm Bill programs administered by the Farm Service Agency has been experiencing periodic shutdowns due to capacity overloads, causing the efficiency of thousands of Farm Service Agency county office employees to decrease dramatically. The Committee is aware that a plan to upgrade this system is being developed by USDA.

The Committee includes statutory language to delay the development and implementation of plans to close any local or county office of the Farm Service Agency. The Committee held a hearing on the Farm and Foreign Agricultural Services budget and the message from the Committee was quite clear, Farm Service offices should not be closed until the technological issues are resolved or at least a plan in place.

Farm Service Agency

For Salaries and Expenses of the Farm Service Agency (FSA), the Committee provides an appropriation of $1,127,409,000 and transfers from other accounts of $313,332,000, for a total program level of $1,440,741,000. This is an increase of $103,689,000 above the amount available for fiscal year 2007 and a decrease of $107,438,000 below the budget request.

The Committee is concerned by the large increases requested for FSA salaries and expenses. The FSA salaries and expense request represented over eight percent of the total budget request. FSA has received about a thirty percent increase in the salaries and expense account since fiscal year 2000. Included in the requested increase was $77,500,000 to restore funding for activities that were funded by balances carried over from fiscal year 2006 into fiscal year 2007. Any funds that are unspent from prior years and carried forward should not be considered as part of the base budget. Agencies were expected to manage within the funds provided within the Continuing Appropriations Resolution, 2007.

The Committee is also concerned by the amount FSA spends on IT operations. In fiscal year 2007, FSA is estimated to spend over $312,000,000 for the costs of maintaining and operating FSA IT systems and the budget request includes an additional $28,000,000 in fiscal year 2008. Beginning last autumn, FSA began experiencing outages of service for some of its web-based applications that support certain farm programs. The supplemental included an additional $37,500,000 for network and database/application stabilization to address immediate needs identified by the Department to address the outage issues. The Committee directs the Secretary to provide a monthly update to the Committees on Appropriations of the House of Representatives and the Senate on the progress of this project, including usage of funds. In addition, the Committee has been hearing for several years that FSA needs to modernize its IT system but a modernization plan has yet to be submitted.

For State Mediation Grants, the Committee provides an appropriation of $4,000,000, a decrease of $208,000 below the amount available in fiscal year 2007 and the same as the budget request

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Grassroots Source Water Protection Program

For the Grassroots Source Water Protection Program, the Committee provides an appropriation of $3,713,000, the same as the amount available in fiscal year 2007 and an increase of $3,713,000 above the budget request.

Dairy Indemnity Program

For the Dairy Indemnity Program, the Committee provides an appropriation of $100,000, the same as the amount available for fiscal year 2007 and the same as the budget request.

Agricultural Credit Insurance Fund

Approximate loan levels provided by the Committee for fiscal year 2008 for the Agricultural Credit Insurance Fund Programs are: $1,423,857,000 for farm ownership loans, of which $223,857,000 is for direct loans and $1,200,000,000 is for guaranteed loans; $1,879,595,000 for farm operating loans, of which $629,595,000 is for direct loans, $250,000,000 is for guaranteed subsidized loans, and $1,000,000,000 is for guaranteed unsubsidized loans; $3,960,000 for Indian tribe land acquisition loans; and $100,000,000 for boll weevil eradication loans.

Agricultural Credit Programs

Risk Management Agency

For the Risk Management Agency, the Committee provides an appropriation of $78,833,000, an increase of $2,175,000 above the amount available for fiscal year 2007 and a decrease of $229,000 below the budget request.

The Committee has serious concerns about the ability of the Risk Management Agency (RMA) to prevent abuses in the crop insurance program. Therefore, the Committee has included a general provision to allow the use of up to $11,166,000 in mandatory funds to improve the Department's ability to police the program for waste, fraud and abuse. The funding made available would be used for maintaining and upgrading data-mining and supporting business applications and hardware used to detect and deter suspect claims and for the continuation of development of the Comprehensive Information and Management System (CIMS). CIMS is a joint information management system for RMA and the Farm Service Agency that will assist in identification of discrepancies between reports on participation in both programs to detect potential waste fraud and abuse.

In addition, the Committee has provided an increase of $1,000,000 for the USDA Office of Inspector General for continued work on waste, fraud and abuse issues related to crop insurance and farm payments.

The Committee believes that the administration must come forward with a plan--and the budgetary resources needed--to address aggressively the problems of waste, fraud and abuse in the crop insurance program that have been identified by OIG and the Government Accountability Office. The Committee directs the Secretary to submit such a plan to the Committee by February 1, 2008.

Corporations

For the Federal Crop Insurance Corporation Fund, the Committee provides an appropriation of such sums as may be necessary (estimated to be $4,818,099,000 in the President's fiscal year 2008 budget request), an increase of $438,843,000 above the amount provided in fiscal year 2007 and the same as the budget request

For Reimbursement for Net Realized Losses to the Commodity Credit Corporation, the Committee provides such sums as may be necessary to reimburse for net realized losses sustained, but not previously reimbursed (estimated to be $12,983,053,000 in the President's fiscal year 2008 budget request), a decrease of $10,115,275,000 below the amount provided in fiscal year 2007 and the same as the budget request.

Hazardous Waste Management

For CCC Hazardous Waste Management, the Committee provides a limitation of $5,000,000, the same as the amount available for fiscal year 2007 and the same as the budget request.

The Committee is interested in the status of this program and requests a report by January 15, 2008. The report should include a history of funding and accomplishments to date, future plans, and resources needed. The report should also address how this program coordinates and complements the Departmental Hazardous Materials Management activities.

Farm Storage Facility Loans

The Committee recommendation does not include $4,660,000 for the Farm Storage Facility Loans program as proposed in the President's budget.

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TITLE II—CONSERVATION PROGRAMS page 67

Office of the under secretary for Natural Resource

Natural Resources Conservation Service

Watershed Surveys and planning

Healthy Forests Reserve Program

Office of the under secretary for Natural Resource

Natural Resources Conservation Service

Watershed Surveys and planning

For Watershed Surveys and Planning, the Committee provides an appropriation of $6,556,000, an increase of $500,000 above the amount available in fiscal year 2007, and $6,556,000 above the budget request.

For Watershed and Flood Prevention Operations, the Committee provides an appropriation of $37,000,000, an increase of $37,000,000 above the amount available in fiscal year 2007, and $37,000,000 above the budget request.

Language is included which limits the amount spent on technical assistance to not more than $18,500,000.

The Committee is aware of and expects progress to continue and/or to provide financial/technical assistance for the next phase for the following projects: Pine Barren Watershed Extension (AL); Big Slough Watershed (AR); Departee Creek Watershed (AR); Four pilot projects in North Florida related to dairy and poultry cleanup efforts (FL); Wailuka-Alenaio Watershed (HI); Upcountry Maui Watershed (HI); Lower Hamakua. Ditch Watershed (HI); Soap Creek Watershed (IA); Little Sioux Watershed Project (IA); Doyle Creek Watershed (KS); Little Otter Creek Watershed Project (MO); Buck and Duck Creek Watershed Project (NE); Yadkin County Deep Creek Project (NC); Swan Quarter Dike (NC); South Fork of the Licking River Watershed Project (OH); McKenzie Canyon Irrigation Pipeline Project (OR); Neshaminy Creek Watershed Project, Bucks County (PA); Tuplehocken Creek Watershed (PA); Big Creek (Tri-County) Watershed Project (TX); Attoyac Bayou site 23-A (TX); and Buena Vista Watershed (VA).

It the understanding of the Committee that the following projects will be completed in fiscal year 2007 and that no fiscal year 2008 funds are required for: Pigeon Roost Creek, Jackson County, Kentucky; and Lower Elk River and Upper Walnut North Watersheds, Kansas. The Committee requires immediate notification if the projects will be delayed due to technical or funding issues.

For the Watershed Rehabilitation Program, the Committee provides an appropriation of $31,586,000, an increase of $277,000 above the amount available in fiscal year 2007, and an increase of $25,779,000 above the budget request.

For Resource Conservation and Development, the Committee provides an appropriation of $52,370,000, an increase of $1,282,000 above the amount available in fiscal year 2007, and an increase of $37,717,000 above the budget request.

The recommendation includes funding for each of the 375 Resource Conservation and Development (RC&D) Councils to have a Federal coordinator. The budget request proposes to reduce the 375 coordinators to about 50. This is a concern, considering that the coordinator plays an important role in leveraging Federal funding to meet local needs.

The Committee encourages NRCS to continue to work with the Councils to develop appropriate measures of effectiveness for both conservation and economic development. Therefore future budget proposals can be based on the effectiveness and performance of the program.

The Committee expects the NRCS to promptly fill RC&D coordinator vacancies, and to allocate funding equitably among the existing councils.

The Committee has included bill language limiting the amount that can be spent at national headquarters from this account.

Healthy Forests Reserve Program

For the Healthy Forests Reserve Program, the Committee provides no funding, a decrease of $2,476,000 below the amount available in fiscal year 2007 and the budget request.

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TITLE III—RURAL DEVELOPMENT PROGRAMS

Office of the Under Secretary for Rural Development

Rural Community Advancement Program

Rural Housing Service

Rental Assistance Programs

Rural Housing Voucher Program

Mutual and Self Help Housing Grants

Rural Housing Assistance Grants

Farm Labor Program Account

Rural Business Cooperative Service

Rural Economic Development Loans

Rural Cooperative Development Grants

Rural enterprise Grants

Renewable Energy Program

Rural Utilities Service

Rural Electrification and Telecommunications Loan

Distance Learning, Telemedicine and Broadband Program

Office of the Under Secretary for Rural Development

For the Office of the Under Secretary for Rural Development, the Committee provides an appropriation of $666,000, an increase of $34,000 above the amount available for fiscal year 2007 and a decrease of $29,000 below the budget request.

The Committee is concerned about the proposal to close local Rural Development (RD) offices. Some of these offices are located in counties identified by the Economic Research Service as persistent poverty counties. The Committee includes a general provision that requires the Secretary of Agriculture to determine the cost effectiveness and enhancement of program delivery prior to closing or relocating any Rural Development offices. The Committee directs the Department to provide a report, not later than 120 days before the date of the proposed closure or relocation, which describes in detail the justifications for such closures and relocation.

While the Committee is providing a significant increase in both loans and grants for renewable energy projects it directs the Department to review the current project eligibility and financial criteria and revise them as appropriate to ensure that projects funded will in fact lead to a significant reduction in traditional sources of energy, especially fossil fuels, and will have sufficient economic return on the investment to repay loans and employ proven technologies that yield significant environmental benefits. To that end the Committee directs the Department to include specific, discrete, measurable performance measures in each grant or loan provided under this heading for a renewable energy project and to subsequently measure the results against those performance measures.

The Committee encourages the Under Secretary to give consideration to the following projects or organizations requesting financial and/or technical assistance and grants and/or loans made available under the Rural Development mission area: Marine Service Center in Wrangell (AK); Alaska Berry Growers (AK); City of Saint Paul Landfill (AK); City of Saint Paul wastewater site (AK); Southwest Alaska Regional Geothermal Energy Project (AK); Public Building. Authority, City of Rainsville (AL); Multipurpose Complex, Marion County (AL); National Egg Processing Center, Auburn (AL); Rainsville AgriCenter (AL); Home in Hale, HERO Housing Resource Center (AL); Marengo County Economic Development Authority (AL); Eutaw Civic Center (AL); Osceola Port Improvements (AR); Batesville Wastewater Treatment Plant and Pumping (AR); Northeast Arkansas Public Water Authority (AR); Ozark Mountain Regional Public Water Authority (AR); SE Washington County water project (AR); renovation of existing sewer system for the Town of Garner (AR); City of Mayflower water system improvements (AR); Why Utilities Water Distribution Lines (AZ); Lukachukai Board of Education (AZ); Ganado Chapter Municipal Water Project (AZ); Klagetoh Landfill Clean Closure and Open Dump (AZ); Rock Point Irrigation Project (AZ); Stanley Memorial Hall (AZ); Cascade Shores wastewater treatment plant (CA); Colfax wastewater treatment plant (CA); Greenwood Lake water treatment plant (CA); Grizzly Flat Fire Station and Community Center (CA); Chester Storm Drain Improvements (CA); Renewable Energy Development, Imperial Valley (CA); Water and wastewater infrastructure, Imperial (CA); Brawley Colonia Water District (CA); Sustainable Watershed Treatment, Chula Vista (CA); Second Harvest Food Bank Facility Improvement (CA); Alpine County Communications Infrastructure (CA); Calaveras County Multi-Agency Emergency Communication (CA); Produce Safety and Track Initiative (CA); San Joaquin County Agricultural Service Center (CA); Renewable Energy and Dairy Waste Management (CA); International AgriCenter University Extension (CA); Lower Lake Historical Museum Structural Retrofit (CA); Clarksburg Fire Station (CA); CCVT Energy Conservation Education Program (CA); San Jacinto Agriculture Groundwater Exchange (CA); Colorado and western states Telemedicine upgrades (CO); Plachy Hall Renewable Energy Program (CO); Costilla County Biodiesel Pilot Project (CO); Norwood Water Treatment and Distribution System (CO); Salt storage shed (CT); Municipal drinking water supply (CT); National Resource Center on Rural After School Program (CT); Homes in Partnership, Inc. (FL); Florida Public Access Enhancement Project (FL); Old Hastings Civic Center Upgrade Project (FL); Agriculture Civic Center (FL); National Hispanic Rural Communications Initiative (FL); Flood Mitigation Plan for the Lake Okeechobee Regional Hospital (FL); County of

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Cusseta-Chattahoochee County well and water tank (GA); SW Georgia Rural Disaster Demonstration Project (GA); Zion City.housing program (GA); Polk County wastewater improvements (GA); Chattooga County water system upgrade (GA); WellCare Model Project, Screven County (GA); Healthy and Natural Animals for Human Consumption (GA); Purchase and upgrade America's Second Harvest Coastal Georgia, Savannah, Chatham County (GA); Idaho Foodbank Facility acquisition and expansion (ID); Southern lllinois Regional Social Services, Inc. (IL); Southern Illinois Healthcare Foundation (IL); Shawnee Health Services Center Dental Program (IL); SIU Belleville Agriculture Research and Education Center (IL); Midwest Emergency Department Services (IL); lllinois Broadband Map (IL); Miami County Commerce Development Initiative (IN); Biosecurity computing and networking technology at KSU (KS); Chautauqua County Rural Water District No.4 (KS); Clark County Recreational Center (KY); Hospice Care Plus Facility (KY); Fleming Country Health and Fitness Center (KY); Kentucky PRIDE Program (KY); Green County Agriculture Education, Marketing and Exposition Center, Greensburg (KY); West Baton Rouge Parish water well and tower (LA); East Feliciana Parish Sheriff's office (LA); Lamar Dixon Agricultural Community Center (LA); E-Learning Mobile Training Center (LA); City of Baton Rouge Downtown Urban Forestry Project (LA); Center for Excellence in Organic Agriculture (LA); Westbank Hurricane Protection Pump Station (LA); City of Hammond Fire Protection (LA); City of Bogalusa, Repair and upgrade sewer system (LA); Town of Abita Springs Sewer Plant Expansion (LA); Oil City, Water System Capital Improvements (LA); Springhill water system improvement (LA); Claiborne Parish, Fire House (LA); Mansfield wastewater treatment plant(LA); Village of South Mansfield water tank (LA); Town Pump Station refurbishing (LA); Company Canal Pump Station (LA); Marvin Braud Pumping Station Upgrade (LA); Saltwater Control Structure (LA); Regional Electric Cooperative Cape Cod Islands(MA); Three County Fairgrounds (MA); Grants to Public Broadcasting Systems (ME); Canola Extrusion Processor (ME); Downtown Saginaw Farmer's Market (MI); Wakefield Memorial Building restoration (MI); Arenac County Sherriff's Office Jail expansion (MI); Ironwood wastewater infrastructure (MI); City of Munising Fire and Police facility (MI); Northern Lakes Economic Alliance (MI) Rural to Urban Tourism Links (MO); Northwest Missouri Regional Water Projects (MO); LinBrook Business Park water well (MS); Ranking Centralized Sanitary Sewer System (MS); Canton Multipurpose and Equine Center (MS); Seminary water well (MS); Leake Fire Station (MS); Johnston Community College Arboretum (NC); Endor Iron Furnace Historic restoration (NC); Jonesville Administrative Building and Welcome Center (NC); Bladen County Agriculture fudustrial Expo Center (NC); Swain County School System Expansion (NC); Lab and research equipment for the Zeis Science (NC); Yancey County Extension and Research Center (NC); Cherokee Center for Applied Technology (NC); Graham County Rural Housing Program (NC); Bridgeton High School Stadium Preservation (NI); Food Bank Facility and equipment upgrades (NJ); San Miguel County Courthouse Renovations (NM); Taos County Administrative/Judicial Complex (NM); Greater Chimayo Mutual Domestic Water Association (NM); Westside Public Safety Building (NM); Elevator Construc~on, Cherry Valley Community Center

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(NY); Town of Guilford building project (NY); Fort Ann Village Emergency Center (NY); Columbia County Broadband Development Project (NY); Broadband Infrastructure network in Otsego (NY); Implementing Healthcare fuformation Technology (NY); Rural College Readiness Distance Education Program (NY); Fairgrounds Youth Recreation Complex (NY); Centerville Volunteer Fire Company (NY); Vassar Brothers Medical Center (NY); Port of Ogdensburg Bulk Handling Equipment (NY); Rural College Readiness Distance Education Program (NY); Lyndonville Waste Water Treatment Facility (NY); Parish Social Ministry food bank (NY); Kinskey Lane Improvements (OH); Mt. Victory Road Water Project (OH); Pomeroy Wastewater Collection System Expansion (OH); Phase IV Waterline Extension, Washington Courity (OH); Glenmoor/LaCroft sanitary sewer project (OR); Community Access Network, Marietta (OH); Rural Business Revitalization project (OK); Oaks Mission School Educational Center (OK); Seminole State College Foundation Call Center (OK); Oregon Burn Center Telephotography Project (OR); City of Coburg wastewater system (OR); Brookings Wastewater Infrastructure Replacement (OR); Philomath Wastewater System Improvement (OR); Eastern Oregon Center for Regional Economic Studies (OR); Happy Canyon Show Renovation (OR); Brewery Grade and Highway 30 Intersection Project (OR); Deer Creek Center (OR); Smart Planning Fund for Water (OR); EMHS Building Design, Phase II (PA); EMTA Vehicle Acquisition and Fuel Station capital (PA); Central Library Building, Pike County (PA); Pike County Senior Center (PA); The Dietrich Theater Expansion Project (PA); The Braddock Biofuels Initiative (PA); Three Rivers Wet Weather Demonstration Program (PA); Northern Columbia County Cultural Center (PA); Municipal maintenance and operational equipment (PA); Mercy Jeannette Hospital patient monitoring (PA); Conemaugh Valley Conservancy (PA); Cove Area Regional Digester (PA); Sanitary sewer system, Arturo Lluberas (PR); Sanitary sewer system for Ollas Hondas, Juana Diaz (PR); Las Delicias Water Improvement Project, Ciales (PR); Indiera Alta Water Treatment Plant~ Lares (PR); Aceituna's Water Improvement Project, Villalba (PR); Water system improvements for Anderson County (SC); Awendaw water system (SC); Town of Hollywood water project (SC); Town of Elloree water project (SC); Voorhees College Rural and Small Town Development (SC); Berkeley County water project (SC); Lowcountry Food Bank (SC); Lake View water improvements (SC); DarlingtonIHartsville wastewater improvements (SC); Alligator Sewer Project in Chesterfield County (SC); East Grainger County regional wastewater: system (TN); Roane County sewer system extension (TN); Modular On-dairy Gasification System (TX); Jim Hogg County Community Youth Center (TX); Starr County Community Youth Center (TX); Wilson County Community) Youth Center (TX); Frio County Community Youth Center (TX); EI Cenizo and Rio Bravo county vehicles (TX); Sabine County Water Project (TX); La Feria Technology, Training and Recreation Center (TX); Bio-Diesel Extruder Systems Purchase (TX); Cooperative Development Institution Pilot Program (TX); Emergency communication system for Weber County (UT); Water Line Upgrade Phase I Project, Corinne (UT); Waterline upgrade, Phase I (UT); Woody Biomass Program (UT); Eastern Shore Broadband Build Out (VA); USVI wastewater repairs (VI); Water Reclamation Facility in Battle Ground (WA); Future Fields Project (WI); Rural Business Enhancement Center (WI); Gene Salem Senior Center (WV); Morgan County Courthouse (WV); Braxton-Gilmer Research Technology Institute (WV); Benwood Flood Protection Backup Power Supply (WV); Taylor County Transfer Tank (WV); McMechen Water Project (WV); Claywood Park PSD Red Hills Sewer Extension Project (WV); Wadesville Water Project (WV); Connected Technologies (WV); and The Thurgood Marshall College Fund.~ ~

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Rural Community Advancement Program

For the Rural Community Advancement Program, the Committee provides an appropriation of $728,807,000, a decrease of $8,328,000 below the amount available for fiscal year 2007 and an increase of $158,316,000 above the budget request.

The budget request included a proposal to fund the three funding streams under the Rural Community Advancement Program (RCAP) (rural utilities programs, rural community programs, and rural business and cooperative development programs) in separate accounts, and eliminate the central RCAP account. While the Committee is intrigued by this proposal and believes it may have merit, enactment of the 2007 Farm Bill may impact these programs. Thus, the Committee intends to work with the Department to review the proposal carefully within the context of the enacted Farm Bill. For comparative purposes, the tables reflected within this account will show the three funding streams within RCAP.

The following programs are included in bill language for the Rural Community Advancement Program: $1,000,000 is for grants to nonprofit organizations to finance construction, refurbishing, and servicing of individually-owned household water well systems in rural areas; $500,000 is for revolving funds for financing water and wastewater projects; $24,000,000 for Federally Recognized Native American Tribes, of which $4,000,000 is for community facilities grants to tribal colleges, and of which $250,000 is for transportation technical assistance; $500,000 for rural transportation technical assistance; $3,000,000 is for grants to Mississippi Delta Region counties; $25,000,000 is for water and waste disposal systems in the Colonias; $18,250,000 is for technical assistance for rural water and waste systems, of which $5,600,000 is for a rural community assistance program; $14,000,000 is for a circuit rider program; and $22,800,000 is for empowerment zones and enterprise communities (EZ/EC) and communities designated by the Secretary of Agriculture as Rural Economic Area Partnership Zones, of which $1,100,000 is for rural community programs, of which $13,400,000 is for rural utilities programs, and of which $8,300,000 is for the rural business and cooperative development programs.

The Committee provides a program level of $1,250,000,000 for the guaranteed business and industry guaranteed loan program. This is an increase of $250,000,000 above the budget request and $336,038,000 above the amount available for fiscal year 2007. The budget requested $100,000,000 of this amount to fund biomass and renewable energy projects. The Committee provides the increased program level to provide $350,000,000 for biomass and renewable energy projects.

The Committee is aware the Department has submitted a 2007 Farm Bill Proposal to address the backlog of Rural Critical Access Hospital needs. The Committee supports providing rural communities with a strong healthcare infrastructure. The Committee notes that since fiscal year 2004, the USDA Community Facilities Programs have provided $260 million in loans and loan guarantees to support 53 rural critical access hospitals. The Committee requests the Department to provide a report, no later than January 31, 2008, on the status of community facility programs in addressing rural healthcare issues and needs, including facilities located in communities impacted by weather related disasters.

The Committee has included a general provision to require the water and waste direct loan subsidy rate to be calculated using the fiscal year 2007 borrower rates and the fiscal year 2008 President's economic assumptions. The Committee considered the President's budget proposal to lower the borrower interest rate for the direct water and waste loan program but the Committee needs additional information on the total cost of implementing the program.

For Salaries and Expenses of the Rural Development mission areas, the Committee provides an appropriation of $175,382,000 and transfers from other accounts of $506,787,000, for a total program level of $682,169,000. This is an increase of $24,547,000 above the amount available for fiscal year 2007 and a decrease of $2,500,000 below the budget request.

The Committee recommendation includes an additional $13,767,000 for pay costs, $6,700,000 for activities previously funded through the Department's CCE account, and $4,080,000 for information technology.

The Committee provides an increase of over $176,000,000 to restore funding for the section 502 direct single family housing loan program, section 504 direct housing repair loan program, section 515 direct rental housing loan program, self-help housing land development fund loan program, and to reject the Administration's proposal to increase the guarantee fee in the section 502 guaranteed single family housing loan program. These critical housing loan programs were proposed for elimination or drastically cut in the President's budget request.

The Committee does not include the general provision that was requested in the President's budget, increasing the guarantee fee for the section 502 guaranteed single family housing loan program.

The Committee provided funding for the multi-family housing preservation program in the Multifamily Housing Revitalization Program Account.

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Rural Housing Service

For the Rural Housing Insurance Fund program account, the Committee provides a loan level of $5,100,000,000, an increase of $72,250,000 above the amount available in fiscal year 2007 and an increase of $12,081,000 above the budget request.

Rental Assistance Programs

For the Rental Assistance Program, the Committee provides a program level of $533,020,000, a decrease of $83,000,000 below the amount available in fiscal year 2007 and a decrease of $33,980,000 below the budget request.

These funds will be used for renewal of expiring rental assistance contracts for a one-year term and provides funding for preservation incentives and new construction contracts. In addition, this funding level provides a two month funding reserve to cover any unforeseen disruptions for renewing contracts. This one-year agreement term will minimize the cost fluctuations in this account.

The Committee notes that the cost to provide renewal of expiring rental assistance contracts for a two-year term would be $905,700,000, an increase of $338,700,000 above the budget request and $297,600,000 over the amount available in fiscal year 2007. Since the budget request proposed eliminating many critical Rural Development loan and grant programs, the Committee was not able to provide the additional resources that would be required to maintain the rental assistance program for a two-year contract term. Also, the budget request assumed that funding for fiscal year 2007 would be based on one-year contract renewals but the Revised Continuing Appropriations Resolution, 2007, provided funding for two-year contract renewals. This change in the fiscal year 2007 assumption decreases the funding necessary to provide for one-year contract renewals in fiscal year 2008.

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Rural Housing Voucher Program

For the Rural Housing Voucher Program, the Committee does not propose funding as requested in the President's budget. Funding for this program is provided in the Multifamily Housing Revitalization Program Account.

For the Multifamily Housing Revitalization Program Account, the Committee provides an appropriation of $27,800,000, an increase of $27,800,000 above the amount available in fiscal year 2007 and the same amount as the budget request.

Mutual and Self Help Housing Grants

For Mutual and Self-Help Housing Grants, the Committee provides an appropriation of $40,000,000, an increase of $6,340,000 above the amount available in fiscal year 2007 and an increase of $30,500,000 above the budget request.

The Committee provides over a 400 percent increase for this grant program from the President's budget request, which proposed to dramatically decrease funding for this program. Mutual and self-help housing grants are made available to public and private non-profit organizations, local governments and tribal organizations to provide technical assistance to low- and very-low income families to build their homes through the mutual self-help method.

Rural Housing Assistance Grants

For the Rural Housing Assistance Grants program, the Committee provides an appropriation of $39,000,000, a decrease of $4,603,000 below the amount provided in fiscal year 2007 and the same amount as the budget request. The appropriated amount includes $30,000,000 for very-low income housing repair grants and $9,000,000 for rural housing preservation grants.

The Committee provided funding for the multi-family housing demonstration revolving fund in the Multifamily Housing Revitalization Program Account. The Committee also did not provide funding in this account for the supervisory and technical assistance grant program and the compensation for construction defects programs since the programs are expected to have carryover balances that will be used to fund the programs.

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Farm Labor Program Account

For the Farm Labor program account, the Committee provides a loan subsidy of $21,630,000, which supports a loan level of $50,000,000, an increase of $3,353,000 in loan subsidy and an increase of $11,883,000 in loan level above the amount available in fiscal year 2007, and an increase of $15,781,000 in loan subsidy and an increase of $36,480,000 in loan level above the amount in the budget request.

The Committee also provides $25,000,000 in grants, an increase of $11,140,000 above the amount available in fiscal year 2007 and an increase of $21,000,000 above the budget request.

The Committee provides over a 400 percent increase for the Farm Labor Housing loan and grant programs from the President's budget request, which proposed to dramatically decrease funding for these programs. The Farm Labor Housing loan and grant programs provide decent, safe, and sanitary housing for farm workers by providing loans to farmers for small, on-farm housing or loans and grants for off-farm multi-family developments

Rural Business Cooperative Service

For the Rural Development Loan Fund program account, the Committee provides for a loan level of $33,772,000, a decrease of $98,000 below the amount provided for fiscal year 2007 and the same as the budget request.

For the estimated loan subsidy, the Committee provides an appropriation of $14,485,000, a decrease of $442,000 below the amount available in fiscal year 2007 and the same as the budget request.

The Committee also provides $4,861,000 in administrative expenses, an increase of $87,000 above the amount available in fiscal year 2007 and an increase of $285,000 above the budget request.

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Rural Economic Development Loans

The President's budget proposes and the Committee recommends to fund this program from mandatory funds instead of discretionary funds.

Rural Cooperative Development Grants

For Rural Cooperative Development Grants, the Committee provides an appropriation of $29,193,000, an increase of $2,475,000 above the amount available for fiscal year 2007 and an increase of $8,265,000 above the budget request.

The Committee provides a total of $29,193,000 for the Rural Cooperative Development Grant program, of which: $20,295,000 is for the value-added agricultural product market development grant program; $2,475,000 is provided for a cooperative agreement for the Appropriate Technology Transfer for Rural Areas (ATTRA) program through a cooperative agreement with the National Center for Appropriate Technology; $1,473,000 is for cooperatives or associations of cooperatives whose primary focus is to provide assistance to small, minority producers; $4,455,000 is for cooperative development grants and $495,000 is for a cooperative research agreement with a qualified academic institution.

Rural enterprise Grants

For Rural Empowerment Zones and Enterprise Communities Grants, the Committee provides an appropriation of $11,088,000, the same as the amount available in fiscal year 2007 and an increase of $11,088,000 above the budget request.

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Renewable Energy Program

For the Renewable Energy Program, the Committee provides an appropriation of $46,000,000, an increase of $23,159,000 above the amount available in fiscal year 2007 and an increase of $12,059,000 above the budget request.

The Committee recommendation provides for a renewable energy loan level of $250,000,000, an increase of $73,488,000 above the amount available in fiscal year 2007 and an increase of $54,530,000 above the budget request.

The Committee recommendation provides for a renewable energy grant level of $21,775,000, an increase of $10,390,000 above the amount available in fiscal year 2007 and increase of $6,775,000 above the budget request.

Rural Utilities Service

The Committee has become aware of interest in wind power generation and has included increased funding to provide additional resources to support this growing renewable energy industry.

The Committee recommendation does not include a program level for the guaranteed underwriting loan program since the cap set in the authorizing legislation was reached in fiscal year 2007 for this loan program.

The Committee recommendation includes a general provision to limit RUS from drafting or implementing any regulation or rule insofar as it would require recertification of rural status for each electric and telecommunications borrower for the Rural Electrification and Telecommunication Loans program. The Committee is concerned by the Department's proposal to change the long-standing practice of the `Once Rural, Always Rural' principle until the authorizing committee has the opportunity to address the population requirement in the 2007 Farm Bill.

Rural Electrification and Telecommunications Loan

For the Distance Learning, Telemedicine, and Broadband Program, the Committee provides an appropriation of $59,270,000, an increase of $10,017,000 above the amount available for fiscal year 2007 and an increase of $28,070,000 above the budget request, including: $35,000,000 for Distance Learning and Telemedicine Grants; $6,450,000 for Broadband Telecommunications loan subsidy, which supports a loan level of $300,000,000; and $17,820,000 for Broadband Grants.

The Committee is concerned by the Department's administration of the broadband loan program. Since the inception of the loan program, the Department has failed to obligate available resources to fund viable broadband projects. In fiscal year 2007, $10,642,000 was carried over from fiscal year 2006, providing a total of $21,285,000 in budget authority and a program level of $990,000,000. Historically, the Department does not obligate the current year appropriation for this program and it is estimated that the $10,643,000 provided in fiscal year 2007 will carry over into fiscal year 2008. This carry over will provide an additional program level of $495,000,000, for a total program level of $795,000,000 in fiscal year 2008. The Committee is aware that the Rural Utilities Service has published a proposed rule to address critical program issues. The Committee believes the appropriation for the broadband loan program is sufficient to meet expected demand in fiscal year 2008, with the expected carryover of prior year funds, and implementation of a new rule and the Farm Bill.

The Committee notes the proposed rule proposes to place limitations on service to high density areas which are likely to have broadband service. The Committee expects the Department to prioritize deployment of Broadband Service to households with no or limited broadband access.

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Distance Learning, Telemedicine and Broadband Program

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TITLE IV—DOMESTIC FOOD PROGRAMS

Office of Under Secretary for Food, Nutrition and Consumer Services

Food and Nutrition Service

WIC

Food Stamp Program

Commodity Assistance Program

Nutrition Program Administration

Office of Under Secretary for Food, Nutrition and Consumer Services

For the Office of the Under Secretary for Food, Nutrition and Consumer Services, the Committee provides an appropriation of $628,000, an increase of $31,000 above the amount provided in fiscal year 2007 and a decrease of $27,000 below the budget request.

The Committee is aware that the State of Indiana has recently entered into a contract to privatize certain operations of the Food Stamp Program. It is the Committee's understanding that USDA approved the contract in December 2006 without a clear understanding of the details of the program, including its implementation, effect on state employees, daily operation of the program or even whether the program complied with federal law. In February 2007, USDA sent a letter to the State of Indiana requesting additional details about the program, with only weeks to go before the initial transfer to private contractors of about 70 percent of state employees working on the Food Stamp Program; this had already been scheduled to occur on March 19, 2007. Therefore, the Committee directs the Secretary to perform comprehensive oversight of the program. It further directs the Secretary to provide the Committee with quarterly reports beginning 30 days after passage of this bill on this contract, including the effects on enrollment, program access, error rates, and spending on administrative expenses. The Committee directs the Secretary to be prepared to take appropriate administrative action if performance standards as stated in the contract are not met.

The Committee recognizes that the Food and Nutrition Service is promoting the Healthier U.S. School Challenge as part of the President's Healthier U.S. Initiative, and the Committee commends the USDA for participating in this initiative. The Committee notes that there are school-based physical education programs, such as PE4Life, that are getting positive measurable outcomes in student fitness, as well as reduced disciplinary incidences. The Committee strongly encourages the Food and Nutrition Service to explore collaboration between nutrition programming and wellness, and such school-based physical education programs.

The Committee believes that when a school food service authority contracts with a foodservice management company for the provision of meals it is important to ensure the integrity of accounting functions. The Committee believes that when allowing a food service management company to control, either directly or indirectly, point-of-sale software as well as the editing or reformatting of transactional data used to support the federal reimbursement claim, school food service authorities must exercise sufficient oversight, as required in regulation to protect the integrity of the school meal program. The Committee requests the Government Accountability Office to provide a report, no later than February 28, 2008, on the nature and effectiveness of internal control procedures to ensure the accuracy of meal counting and claiming by Food Service Management companies under contract to provide meal service to School Districts participating in the National School Lunch Program. In particular, the Committee is interested in such procedures established by Food Service Management companies themselves as well as those procedures undertaken by School Districts in their oversight and monitoring of contractual performance.

Audit recommendations not achieving management decision within 180 days.--The Committee has received from the Office of Inspector General (OIG) for the record a list of audit reports where management decisions have not been achieved within 180 days. Included on the list were three audit reports for FNS, with several open recommendations. The Committee supports OIG in its efforts to reach agreement within 180 days and directs FNS to send the Committee a report by October 1, 2007 with a plan for reaching management decision on the outstanding issues.

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Food and Nutrition Service

For the Child Nutrition Programs, the Committee provides a total of $13,903,213,000, an increase of $557,617,000 above the amount available for fiscal year 2007 and an increase of $5,941,000 above the budget request. Of the total amount provided, $7,668,156,000 is by direct appropriation and $6,235,057,000 is by transfer from Section 32.

The Committee includes a general provision to expand the Fresh Fruit and Vegetable Program to all States. The Committee provides up to $500,000 for each State, not currently authorized, to carry out a program to make free fresh fruits and vegetables available to elementary or secondary schools to make available to students throughout the school day.

The Committee also includes a general provision to expand the Simplified Summer Food Program to all States.

The Committee notes the Child Nutrition and WIC Reauthorization Act of 2004 authorized a pilot study on eliminating the reduced price school meal program, subject to the availability of funds. Eliminating reduced price meals nationwide by increasing the limit for free meals to 185 percent of poverty, would cost $3,500,000,000 over five years. A pilot study for forecasting the impact of eliminating the reduced price school meal program would require a demonstration with comparison sites and an evaluation that looked at participation increases, rates and how `error demographics' and administrative challenges were different between the demonstration sites and the comparison sites. A pilot program would take three years, two years to collect the data and one year to evaluate the program. Since the Child Nutrition Programs will be reauthorized in 2009, there is not time to initiate a pilot program before the program is reauthorized.

The Committee provides $15,000,000 for TEAM nutrition. Included in this amount is $6,000,000 for food service training grants to States; $3,000,000 for technical assistance materials; $800,000 for National Food Service Management Institute cooperative agreements; $1,000,000 for print and electronic food service resource systems; $1,000,000 to assist USDA's Center for Nutrition Policy and Promotion in development and maintenance of MyPyramid and Dietary Guidelines materials in support of nutrition education for Child Nutrition programs participants and their families, and $3,200,000 for other activities.

The Committee provides $2,000,000 for Food Safety Education and encourages FNS to develop materials to educate children and their families on food safety issues including anaphylaxis, to conduct further research into the causes of foodborne illness in schools using CDC data, support educational initiatives on the occurrence of foodborne norovirus outbreaks in schools and other food safety education activities.

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WIC

For the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Committee provides an appropriation of $5,620,000,000, an increase of $415,570,000 above the amount available for fiscal year 2007 and an increase of $233,403,000 above the budget request.

The Committee notes that since the budget request was submitted last February, estimates for participation and food costs have increased for fiscal year 2007 and fiscal year 2008, increasing the estimate for program needs in fiscal year 2008.

USDA has reported large upward revisions to its dairy price forecasts, and WIC food costs for fiscal year 2007 are starting to reflect this increase. Since milk and cheese account for about 40 percent of WIC food costs, large fluctuations in dairy prices have a significant impact on WIC food costs. The increased WIC food costs in fiscal year 2007 reduce the projected carry-over into fiscal year 2008. Also, participation in fiscal year 2007 has been somewhat higher than originally estimated, which increases the estimated participation for fiscal year 2008.

Also, it is currently estimated the WIC program will have an unobligated balance in the contingency reserve of about $141,069,000, which is $16,069,000 above the original appropriation of $125,000,000 provided for the reserve. The Committee includes a general provision to rescind the $16,069,000 from the contingency fund and includes this amount in this record level WIC grant funds.

The Committee does not include the requested increase of $75,000,000 in the contingency fund. The contingency fund is intended to support participation should cost or participation exceed budget estimates. The Committee instead includes an additional $270,570,000 for WIC grants to States to address the estimated increases in participation and food costs in fiscal year 2008.

The Committee does not include the provision as requested in the President's budget, that caps the national average participant grant for nutrition services and administration (NSA) grants to States at $14.12 for fiscal year 2008, increasing the estimate for NSA funding by $145,000,000.

Therefore, the recommended funding level, $233,403,000 above the budget request and $415,570,000 above the amount provided in fiscal year 2007, is currently estimated to be sufficient to meet program needs. However, the Committee is aware that dairy prices are continuing to rise and will continue to monitor WIC food costs, participation, and carry-over funds, and take additional action as necessary to ensure that funding provided in fiscal year 2008 is sufficient to serve all eligible applicants.

The recommended funding level includes $15,000,000 for continuation of the breastfeeding peer counselor program.

The Committee provides $30,000,000 for investments in management information systems, if the Secretary determines that those funds are not needed to maintain caseload and will not require use of the contingency fund.

The Committee does not include language requested by the Administration that provides guidance that funds under this heading shall not be used for WIC benefits for individuals who receive medical assistance or whose family member is a pregnant woman or infant who receives assistance, unless their family falls below 250 percent of the applicable poverty guidelines.

Electronic Benefit Transfer.--The Committee recommendation includes language to allow funds to be used for WIC electronic benefit transfer (EBT) systems and sets the authorized level of infrastructure funding at $14,000,000, which includes funding to develop EBT systems.

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Food Stamp Program

For the Food Stamp Program, the Committee provides $39,816,223,000, an increase of $1,654,689,000 above the amount available for fiscal year 2007 and a decrease of $22,000,000 below the budget request. The total amount includes $3,000,000,000 for a contingency reserve in fiscal year 2008 and $140,000,000 for the Emergency Food Assistance Program (TEFAP).

The Committee does not include the provision, requested in the President's budget, which provides funding as a monthly transitional benefit to Commodity Supplemental Food Program (CSFP) participants. The Committee does not provide the funding requested in the President's budget for the CSFP transitional benefit or CSFP outreach grants. The Committee provided an appropriation for the CSFP in the Commodity Assistance Program.

The Committee includes statutory language to exclude special pay for military personnel deployed to designated combat areas when determining food stamp eligibility.

Included in the recommended level for other program costs are $2,000,000 to conduct Food Stamp Program modernization and innovation projects and $1,000,000 to assist USDA's Center for Nutrition Policy and Promotion in the development and maintenance of MyPyramid and Dietary Guidelines materials in support of nutrition education for the food stamp eligible population.

Included in the recommended level for FDPIR is $34,206,000 to support additional administration funding in the program to address current inequities among tribes in the allocation of funds and to address pressing needs to improve warehousing and other administrative costs associated with commodity distribution

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Commodity Assistance Program

The Committee provides an appropriation of $221,070,000 for the Commodity Assistance Program, an increase of $43,498,000 above the amount available for fiscal year 2007 and an increase of $150,700,000 above the budget request.

The recommended funding level for the Commodity Supplemental Food Program (CSFP) is $150,000,000, an increase of $42,798,000 above the amount available for fiscal year 2007 and an increase of $150,000,000 above the budget request.

The Committee provides a large increase for the CSFP with the expectation that the fiscal year 2007 caseload will be maintained. Of this increase, the Committee provides at least $3,900,000 to begin funding the five states with USDA approved plans. Within the remaining available funds, the Committee directs the Department to provide additional caseload in the states with existing programs and documented additional needs. In assigning additional caseload, the Committee directs the Department to give priority to those states which received supplemental caseload in the Emergency Supplemental Appropriations to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza Act of 2006, and continue to have demand for supplemental caseload.

The Committee is aware that of the funding made available for CSFP and TEFAP under Division B of P.L. 109-148, Emergency Supplemental Appropriations to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006, a small amount of resources remain available. These resources are in the form of both cash balances and commodity inventories. Given that disaster-related program operations have ceased, the Committee has included a general provision to allow these remaining resources, and any subsequent recoveries and collections, to be used to support the normal on-going operations of CSFP and TEFAP.

The Committee has included $50,000,000 for administration of TEFAP, an increase of $500,000 above the amount available in fiscal year 2007 and an increase of $500,000 above the budget request. These funds may be used for administration purposes or for food costs at the discretion of the States. In addition, the Committee recommendation includes language that allows the Secretary to transfer up to $10,000,000 of TEFAP commodity funding to processing, storage, and distribution costs.

For the Food Donations Programs the Committee provides an appropriation of $1,070,000 for Pacific Island Assistance, the same as the amount available for fiscal year 2007 and the same as the budget request.

Farmers' Market Nutrition Program- The Committee recommendation includes $20,000,000 for the Farmers' Market Nutrition Program, an increase of $200,000 above the amount available for fiscal year 2007 and an increase of $200,000 above the budget request.

Seniors Farmers' Market Program- Public Law 107-171, Section 4402, directs mandatory funding for this program from funds available to the Commodity Credit Corporation through fiscal year 2007. This program is scheduled for reauthorization in fiscal year 2008.

Nutrition Program Administration

For Nutrition Programs Administration, the Committee has provided $146,926,000, an increase of $6,674,000 above the amount available for fiscal year 2007 and a decrease of $2,000,000 below the budget request.

The Committee recommendation includes an increase of $2,000,000 to fund initiatives by the Center for Nutrition Policy and Promotion to continue development of an evidence-based system for the 2010 Dietary Guidelines for Americans and enhancements to MyPyramid interactive applications and information technology services.

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TITLE V – FOREIGN ASSISTANCE AND RELATED PROGRAMS

Foreign Agriculture Service

Programs and Grants Account

Export Loans Program Account

McGovern-Dole

Foreign Agriculture Service

For the Foreign Agricultural Service, the Committee provides an appropriation of $159,136,000 and transfers of $4,985,000, for a total salaries and expenses level of $164,121,000, an increase of $2,817,000 above the amount available for fiscal year 2007 and a decrease of $9,073,000 below the budget request.

The Committee recommendation includes $2,817,000 for pay costs as requested. Unlike many other agencies, the Foreign Agricultural Service received an increase in the Revised Continuing Appropriations Resolution, 2007. The Committee believes that there are sufficient resources in base funding for overseas operations and reimbursements to the Department of State.

Audit recommendations not achieving management decision within 180 days.--The Committee has received from the Office of Inspector General (OIG) for the record a list of audit reports where management decisions have not been achieved within 180 days. Included on the list was one audit report for FAS, with one open recommendation. The Committee supports OIG in its efforts to reach agreement within 180 days and directs FAS to send the Committee a report by October 1, 2007 with a plan for reaching management decision on the outstanding issue.

The Committee recommendation includes the fiscal year 2006 funding level for technical assistance for the promotion of specialty crop experts.

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Programs and Grants Account

The budget does not request funds for the Public Law 480 Title I program. The Committee understands that the Department estimates that it will have at least $20,000,000 in carryover funds available in fiscal year 2008 in the Ocean Freight Differential (OFD) account. The Committee has included language to permit these carryover funds to be transferred to the Title I account if needed. The Committee will continue to monitor the availability of carryover and OFD funds and requests the Department to advise it immediately if the United States Government enters into any agreements under Title I.

Administration proposal.--The administration proposed language under the Public Law 480 Title II account that would allow the United States Agency for International Development (USAID) to use up to 25 percent of the funds appropriated `for local or regional purchase of food to assist people threatened by a food security crisis.' The Committee has not included this language in this bill, but the Committee will consider this proposal as part of an overall examination of food aid programs. The Committee will hold a hearing this year to examine food aid issues and will invite the USAID administrator and the Administrator of the Foreign Agricultural Service to testify, as well as representatives from international organizations and humanitarian groups.

Export Loans Program Account

For administrative expenses of the Commodity Credit Corporation Export Loans Program Account, the Committee provides an appropriation of $5,338,000, an increase of $77,000 above the amount available for fiscal year 2007 and a decrease of $6,000 below the budget request.

McGovern-Dole

For McGovern-Dole International Food for Education and Child Nutrition Program Grants, as authorized by Section 3107 of P.L. 107-171 (7 U.S.C. 1736o-1), the Committee provides an appropriation of $100,000,000, an increase of $1,000,000 above the amount available for fiscal year 2007, and the same as the budget request

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TITLE VI—RELATED AGENCIES AND THE FOOD AND DRUG ADMINISTRATION of DEPT. HEALTH AND HUMAN SERVICES

Food and Drug Administration

Commodity Futures Trading Commission

Farm Credit Administration

Food and Drug Administration

The Committee provides an appropriation of $1,697,709,000 in budget authority, an increase of $128,465,000 above the amount available in fiscal year 2007, and an increase of $62,000,000 above the budget request. In addition, the Committee makes available $13,696,000 in animal drug user fees for total Salaries and Expenses of $1,711,405,000.

The Committee provides budget authority, as requested, as follows: $466,726,000 for the Center for Food Safety and Applied Nutrition (CFSAN) and related field activities of the Office of Regulatory Affairs (ORA); $324,438,000 for the Center for Drug Evaluation and Research (CDER) and related field activities of ORA; $155,073,000 for the Center for Biologics Evaluation and Research (CBER) and related field activities of ORA; $94,809,000 for the Center for Veterinary Medicine (CVM) and related field activities of ORA; $240,122,000 for the Center for Devices and Radiological Health (CDRH) and related field activities of ORA; $36,455,000 for the National Center for Toxicological Research (NCTR); $88,577,000 for headquarters and the Office of the Commissioner; $131,533,000 for GSA rental payments; $59,168,000 for other rent and rent-related activities; and $38,808,000 for White Oak consolidation expenses.

In addition, the Committee also provides increases of $5,000,000 for the Office of Generic Drugs, $6,250,000 for the Division of Drug Marketing, Advertising and Communication, $12,750,000 for the Office of Surveillance and Epidemiology, $2,000,000 for the Office of Cosmetics and Colors, and $35,000,000 for CFSAN. In addition, the Committee provides a total of $5,000,000 for the Office of Women's Health.

The Committee notes that this bill, if enacted, would be the second straight increase in funding provided for FDA. If this bill were enacted, FDA would receive an increase of almost $231,000,000 in discretionary budget authority compared to the 2006 enacted bill.

The Committee does not make available prescription drug and medical device user fees, as the reauthorizations for those fees for fiscal year 2008 have not yet been enacted. However, if those fees are reauthorized at the levels estimated in the budget, total resources for FDA will exceed $2,000,000,000 in fiscal year 2008.

Pending further review, the Committee does not provide any funds for closure of FDA laboratory facilities.

The Committee does not approve the proposed reduction in the Food Contact Notification Program. The Committee provides funding as requested for the National Center for Food Safety and Technology and for New Mexico State University. The Committee does not provide funding for the Interstate Shellfish Sanitation Commission, the Warehousing Education and Research Council, the Natural Products Center, or the Critical Path Institute.

Bill structure.--Although the budget requested a statutory `blank check' that would remove the specified levels of funding for each center and other activities in the bill, the Committee believes the agency needs more budget controls, not fewer. Therefore, it has maintained the usual bill language structure.

Food safety.--The Committee believes that FDA is failing to do what is needed to ensure the safety of our food supply.

The Committee believes that additional budgetary resources must be tied to a sound management plan that represents a systemic approach to addressing the shortfalls of the inspection of our domestic and imported foods and that has the support of the Administration.

There have been mixed signs as to whether FDA is going to produce such a plan. To ensure that it does, the Committee directs FDA to develop a performance plan that establishes measurable benchmarks for concrete improvements in the performance of its food safety mission.

The plan must set forth clear, definitive goals over a multiyear period to comprehensively overhaul FDA's food safety operations, covering both domestic and imported foods. The plan must include a detailed description of any organizational, managerial, statutory and regulatory changes necessary to achieve them, as well as an assessment of the budgetary resources needed. If statutory changes are proposed, the plan must include the statutory language. The plan must be approved by the Office of Management and Budget.

The Committee suggests that enforceable standards for food safety, HAACP-like systems, and a process for reviewing the food safety systems in countries that export food to the United States should be considered as key parts of the building blocks of a stronger food safety system. These are proposals that are not dissimilar to measures FDA has proposed in the past or may be considering currently.

The Committee provides $28,000,000 to be available on July 1, 2008 for implementation of the plan. In order to have sufficient time to evaluate the plan, the Committee directs that it be transmitted concurrently with the fiscal year 2009 budget.

While there are clearly shortfalls in FDA's approach to the safety of the other products it regulates, the Committee believes that it is appropriate to begin the process of overhauling FDA with the foods program, since the pending reauthorizations for the drug and medical device programs may make fundamental changes in those areas.

The Committee provides an additional $7,000,000 for increased activities to protect the safety of imported foods.

Field activities.--The Committee believes that it must hold FDA accountable for its performance of its field operations, which are the most basic activities FDA performs to protect the public health. Therefore, within the sums provided in this bill, the Committee provides $527,567,000 in budget authority for ORA for field activities by center as follows: CFSAN, $319,138,000; CDER, $81,488,000; CBER, $29,310,000; CVM, $35,774,000; and CDRH, $61,857,000. The Committee directs FDA to maintain at least these levels for field activities and to notify the Committee if it proposes to reduce any of them.

Direct to consumer advertising user fees.--In its recommendations for reauthorization of the Prescription Drug User Fee Act, the Administration has proposed that FDA be permitted to charge drug companies a user fee for advisory reviews of their prescription drug direct-to-consumer (DTC) television ads. FDA's justification was, in part, that `these television advertisements are highly visible and if done well, will reflect positively on the [drug] industry as a whole...'

Positive impacts on an industry should not be any part of FDA's considerations. DTC ads are designed to affect consumers and FDA's reviews of them should protect their interests. Having drug companies pay for the review of such ads--and having reviewers' salaries dependent on drug company fees--will further undermine the public's confidence in FDA.

The Committee believes the Administration's proposal to establish a user fee for review of direct-to-consumer (DTC) advertising is ill-conceived. The Committee provides an increase of $6,250,000 for review of direct to consumer advertisements, the amount that FDA estimates would be raised by the proposed user fee. Should the DTC user fee proposal be authorized, the Committee will not approve an appropriation to make the funds collected available.

Postmarketing studies.--In June 2006, the Office of Inspector General of the Department of Health and Human Services (OIG) issued a report entitled `FDA's Monitoring of Postmarketing Study Commitments.' OIG looked at FDA's database of postmarketing study commitments (PMCs) for drugs approved between 1990 and 2004 and concluded that `FDA cannot readily identify whether or how timely PMCs are progressing toward completion' because many reports were missing or incomplete or contained information that was of little use to FDA. Many reports included none of the milestones towards completion required by the agency's regulations or only partial information.

The Committee is very concerned that FDA rejected OIG's recommendation that it tell companies to provide additional useful information in the annual status reports they submit to FDA, such as milestones to monitor progress in completing studies, merely because FDA would be required to change its regulations to do so.

The Committee cannot accept FDA's reason for not implementing this recommendation and directs FDA to submit a report by November 1, 2007 explaining why it believes it should not comply with this recommendation.

Office of Women's Health.--The Committee believes that the work of the Office of Women's Health at FDA is critical to ensuring that the wide ranging policies and actions at the agency reflect the health needs of women, and include research, outreach, and analyses of data by demographic variables, including race and ethnicity. The Committee provides $5,000,000 for the Office of Women's Health. The Committee requests quarterly reports on the expenditures and staffing levels of the Office to ensure that the resources provided are used exclusively for that Office.

Ketek- The Committee is very concerned about criticisms of FDA's handling of clinical safety issues involving the drug Ketek.

FDA told the Committee that it `will use the knowledge we have learned from the Ketek investigation to look at future studies and sites that we target for data audits.'

The Committee requests a report from the agency by October 1, 2007, describing what FDA learned from the Ketek investigation.

Bovine Spongiform Encephalopathy.--The Committee remains concerned over the prolonged delay in the issuance of a new, upgraded rule regarding the prohibition of additional specified risk materials from ruminant and non-ruminant animal feed. Within 60 days of enactment of this Act, FDA is directed to submit a report to the Committee detailing the obstacles to the completion of this report, as well as any legislative activity that would assist in the resolution of this issue.

Diacetyl.--The Committee is concerned about potential health hazards posed by exposure to the chemical diacetyl, a butter flavoring agent used in microwave popcorns and other foods. Although, FDA codified diacetyl as `generally regarded as safe' (GRAS) in 1983, several recent investigations by the National Institute for Occupational Safety and Health (NIOSH) found diacetyl to have caused a rare and fatal lung disease (bronchiolitis obliterans). The Committee believes that the more recent safety information by NIOSH comprises compelling scientific evidence that diacetyl may not only pose a real threat to exposed workers, but also raises the possibility of harm to consumers of microwave popcorn. The Committee believes that this matter warrants reconsideration by the FDA of the GRAS status of diacetyl, but at minimum, the FDA should conduct further studies to examine the safety of diacetyl and the relationship between exposure to the chemical and consumption of food products containing the butter flavoring. The Committee directs that FDA submit a report on its plan to research this issue further to the House Committee on Appropriations within 90 days of enactment.

Microbial Resistance.--In 2003, FDA released guidance for industry that outlines a comprehensive, evidence-based approach to preventing antimicrobial resistance in humans that may result from the use of antimicrobial drugs in animals. However, the Committee is concerned that the guidance document does not assign enough weight to the impact of microbial resistance to drugs that are highly important to human medicine but are not used to treat foodborne illnesses. Transferred resistance from antimicrobials used in animals produced for food can also render critically important human antibiotics ineffective, including those used to treat foodborne illnesses. The Committee is concerned that simply satisfying the requirements of the guidance document is not adequate to protect human health. Therefore, the Committee directs FDA to reevaluate the basis on which it makes such decisions and to provide a report to the Committee by November 1, 2007.

FDA enforcement.--FDA recently issued an import alert about certain types of farm-raised fish from China. The Committee is dismayed that it took the agency so long to act. FDA's own time-line on this issue indicates that concerns about this problem go back more than five years. The Committee expects FDA to act promptly to address violations of law and will monitor FDA's actions accordingly. The Committee will be examining this issue further this year.

The Committee is aware that the FDA issued a monograph for unscreen products in 2002, and the monograph was stayed shortly thereafter so that FDA could address the issue of measuring protection against UVA rays, which cause skin cancer. The Committee is disappointed that FDA has taken no further action, although skin cancer rates continue to rise, especially among young people and women. The Committee believes that a comprehensive monograph is essential to helping consumers make informed choices about protecting themselves against sun exposure. Therefore, the Committee directs FDA to issue a comprehensive monograph for over-the-counter sunscreen products, including UVA and UVB labeling requirements, within three months of enactment of this Act.

The Committee is deeply concerned about the dangers of Salmonella, especially in highly susceptible populations like young children, pregnant women, individuals over 55, post operative patients, or individuals with compromised immune systems. The Committee recommends that the FDA encourage any facility that serves highly susceptible populations, including schools, hospitals, nursing homes, acute care facilities, day care centers, and hospice facilities to consider using eggs that have been pasteurized to destroy all viable salmonellae.

The Committee is concerned that the FDA has still not finished its review of the safety for people of the subtherapeutic use of penicillin in animal feed and, accordingly, directs FDA to finish this review and make the review public by June 30, 2008.

The conferece report for fiscal year 2006 suggested that FDA review the implementatlon of new operating procedures in the Los Angeles district with regard to importers of ethnic foods. Last year, in response to questions from the Committee, FDA indicated that they have implemented several actions to improve the processing of food import entries. The Committee encourages FDA to consider establishing a formal process for tracking status inquiries.

The Committee requests FDA to submit a report to the Committee on the implementation of the Combat Methamphetamine Epidemic Act of 2005 within 90 days of the date of enactment.

Responsiveness to Inspector General recommendations.--The Committee directs the agency to submit a report by October 1, 2007 on the status of all open audits and recommendations by OIG. The report must also include a plan for getting to resolution on all these open issues.

Responsiveness to GAO recommendations.--The Government Accountability Office (GAO) maintains on its website a list of open recommendations from its review work. Currently, the GAO lists numerous reports with open recommendations involving FDA. The Committee directs FDA to report to the Committee by October 1, 2007 on the status of all open GAO recommendations and on its plan to reach closure on each of them.

High-Risk List.--In addition, the Committee directs FDA and USDA to work with GAO on a plan whose implementation would result in food safety being removed from GAO's High-Risk List and to submit a report on that plan to the Committee by October 1, 2007.

For Buildings and Facilities of the Food and Drug Administration, the Committee provides $4,950,000, the same as the amount available in fiscal year 2007 and the budget request

Commodity Futures Trading Commission

For the Commodity Futures Trading Commission, the Committee provides an appropriation of $102,550,000, an increase of $4,569,000 above the amount available for fiscal year 2007 and a decrease of $13,450,000 below the budget request.

The Committee does not adopt the President's request to impose fees on futures transactions, totaling $86,000,000.

The Committee recommendation includes $1,463,000 for pay costs as requested. The recommendation also includes $3,106,000 for highest priority needs, including additional staff, technology improvements, and program funding for enforcement.

Farm Credit Administration

For a limitation on the expenses of the Farm Credit Administration, the Committee provides $46,000,000, an increase of $1,750,000 above the amount available for fiscal year 2007 and the same as the budget request.

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TITLE VII—GENERAL PROVISIONS

SEC. 716. Notwithstanding any other provision of law, of the funds made available in this Act for competitive research grants (7 U.S.C. 450i(b)), the Secretary may use up to 22 percent of the amount provided to carry out a competitive grants program under the same terms and conditions as those provided in section 401 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7621).

SEC. 717. None of the funds appropriated or otherwise made available by this or any other Act shall be used to pay the salaries and expenses of personnel who carry out an environmental quality incentives program authorized by chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) in excess of $1,017,000,000.

SEC. 718. None of the funds made available in fiscal year 2008 or preceding fiscal years for programs authorized under the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) in excess of $20,000,000 shall be used to reimburse the Commodity Credit Corporation for the release of eligible commodities under section 302(f)(2)(A) of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1): Provided, That any such funds made available to reimburse the Commodity Credit Corporation shall only be used pursuant to section 302(b)(2)(B)(i) of the Bill Emerson Humanitarian Trust Act.

SEC. 719. No funds shall be used to pay salaries and expenses of the Department of Agriculture to carry out or administer the program authorized by section 14(h)(1) of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(1)).

SEC. 720. Of the funds derived from interest on the cushion of credit payments, as authorized by section 313 of the Rural Electrification Act of 1936, $34,000,000 shall not be obligated and $34,000,000 are rescinded.

SEC. 721. None of the funds made available by this Act may be used to issue a final rule in furtherance of, or otherwise implement, the proposed rule on cost-sharing for animal and plant health emergency programs of the Animal and Plant Health Inspection Service published on July 8, 2003 (Docket No. 02-062-1; 68 Fed. Reg. 40541).

SEC. 722. Funds made available under section 1240I and section 1241(a) of the Food Security Act of 1985 in the current fiscal year shall remain available until expended to disburse obligations made in the current fiscal year, and are not available for new obligations. Funds made available under section 524(b) of the Federal Crop Insurance Act, 7 U.S.C. 1524(b), in fiscal years 2004, 2005, 2006, 2007, and 2008 shall remain available until expended to disburse obligations made in fiscal years 2004, 2005, 2006, 2007, and 2008 respectively, and except for fiscal year 2008 funds, are not available for new obligations.

SEC. 723. None of the funds provided in this Act may be used for salaries and expenses to draft or implement any regulation or rule insofar as it would require recertification of rural status for each electric and telecommunications borrower for the Rural Electrification and Telecommunication Loans program.

SEC. 724. Unless otherwise authorized by existing law, none of the funds provided in this Act, may be used by an executive branch agency to produce any prepackaged news story intended for broadcast or distribution in the United States unless the story includes a clear notification within the text or audio of the prepackaged news story that the prepackaged news story was prepared or funded by that executive branch agency.

SEC. 725. In addition to other amounts appropriated or otherwise made available by this Act, there is hereby appropriated to the Secretary of Agriculture $10,000,000, of which not to exceed 5 percent may be available for administrative expenses, to remain available until expended, to make specialty crop block grants under section 101 of the Specialty Crops Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 note).

SEC. 726. None of the funds appropriated or otherwise made available by this Act for the Food and Drug Administration may be used under section 801 of the Federal Food, Drug, and Cosmetic Act to prevent an individual not in the business of importing a prescription drug within the meaning of section 801(g) of such Act, wholesalers, or pharmacists from importing a prescription drug which complies with sections 501, 502, and 505.

SEC. 727. None of the funds made available in this Act may be used to study, 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 of Agriculture, including support personnel of the Department of Agriculture, relating to rural development or farm loan programs.

SEC. 728. Of the amount available for Estimated Future Needs under section 32 of the Act of August 24, 1935, $63,361,000 are hereby rescinded: Provided, That in addition, of the unobligated balances under section 32 of the Act of August 24, 1935, $147,000,000 are hereby rescinded.

SEC. 729. None of the funds made available in this Act may be used to--

(1) grant a waiver of a financial conflict of interest requirement pursuant to section 505(n)(4) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(n)(4)) for any voting member of an advisory committee or panel of the Food and Drug Administration; or

(2) make a certification under section 208(b)(3) of title 18, United States Code, for any such voting member.

SEC. 730. Of the appropriations available for payments for the nutrition and family education program for low-income areas under section 3(d) of the Smith-Lever Act (7 U.S.C. 343(d)), if the payment allocation pursuant to section 1425(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)) would be less than $100,000 for any institution eligible under section 3(d)(2) of the Smith-Lever Act, the Secretary shall adjust payment allocations under section 1425(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to ensure that each institution receives a payment of not less than $100,000.

SEC. 731. None of the funds made available in this Act may be used to establish or implement a rule allowing poultry products to be imported into the United States from the People's Republic of China.

SEC. 732. Of the unobligated balances available in the High Energy Cost Grants account, $25,740,000 is hereby rescinded.

SEC. 733. None of the funds made available to the Department of Agriculture in this Act may be used to implement the risk-based inspection program in the 30 prototype locations announced on February 22, 2007, by the Under Secretary for Food Safety, or at any other locations, until the USDA Office of Inspector General has provided its findings to the Food Safety and Inspection Service and the Committees on Appropriations of the House of Representatives and the Senate on the data used in support of the development and design of the risk-based inspection program and FSIS has addressed and resolved issues identified by OIG.

SEC. 734. Not more than $11,166,000 of the funds made available under section 522(e) of the Federal Crop Insurance Act (7 U.S.C. 1522(e)) may be used for program compliance and integrity purposes, including the data mining project, and for the Common Information Management System.

SEC. 735. The Secretary of Agriculture shall continue the Water and Waste Systems Direct Loan Program under the authority and conditions (including the fees, borrower interest rate, and the President's economic assumptions for the 2008 Fiscal Year, as of June 1, 2007) provided by the `Continuing Appropriations Resolution, 2007'.

SEC. 736. (a) Section 13(b) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1761(b)) is amended--

(1) in paragraph (1)--

(A) by striking subparagraph (A);

(B) by redesignating subparagraphs (B) through (D) as subparagraphs (A) through (C), respectively;

(C) in subparagraph (A) (as redesignated by subparagraph (B)), striking `(B)' and all that follows through `shall not exceed' and inserting the following:

`(A) IN GENERAL- Subject to subparagraph (B) and in addition to amounts made available under paragraph (3), payments to service institutions shall be';

(D) in subparagraph (B) (as redesignated by subparagraph (B)), by striking `subparagraph (B)' and inserting `subparagraph (A)'; and

(E) in subparagraph (C) (as redesignated by subparagraph (B)), by striking `(A), (B), and (C)' and inserting `(A) and (B)'; and

(2) in the second sentence of paragraph (3), by striking `full amount of State approved' and all that follows through `maximum allowable'.

(b) CONFORMING AMENDMENT- Section 18 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769) is amended--

(1) by striking subsection (f); and

(2) by redesignating subsection (g) through (k) as subsections (f) through (j), respectively.

(c) EFFECTIVE DATE- The amendments made by this section take effect on January 1 of the first full calendar year following the date of enactment of this Act.

SEC. 737. There is hereby appropriated $21,000,000, to remain available until September 30, 2009, of which not to exceed 5 percent may be available for Federal and/or State administrative expenses, as determined by the Secretary of Agriculture, to carry out a program similar to section 18(g) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769(g)) in each State not currently served by the authorized program.

SEC. 738. None of the funds made available in this Act may be used to--

(1) examine, inspect, certify, or mark horses, horse carcasses, or parts of horse carcasses, or create, distribute, certify, endorse, or file any certificate concerning horses under the Federal Meat Inspection Act (21 U.S.C. 601 et seq.), the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.), or subtitle A of title IX of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 1901 note; Public Law 104-127);

(2) accept reimbursement or enter into reimbursable fee agreements under section 10703 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 2219a) or section 10412 of the Animal Health Protection Act (7 U.S.C. 8311) to examine, inspect, certify, or mark horses, horse carcasses, or parts of horse carcasses, or create, distribute, certify, endorse or file any certificate concerning horses;

(3) assess or collect fees under section 203 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1622), section 2508 or 2509 of the Food, Agriculture, Conservation and Trade Act of 1990 (21 U.S.C. 136, 136a), or part 130 of title 9, code of Federal Regulations, to examine, inspect, certify, or mark horses, horse carcasses, or parts of horse carcasses, or create, distribute, certify, endorse, or file any certificate concerning horses;

(4) contract with any person or entity under section 205 of the Agricultural Marketing Act (7 U.S.C. 1624) to examine, inspect, certify, or mark horses, horse carcasses, or parts of horse carcasses, or create, distribute, certify, endorse, or file any certificate concerning horses; or

(5) implement, administer, or enforce section 352.19 of title 9, Code of Federal Regulations, or promulgate an equivalent regulation.

SEC. 739. Of the unobligated balances available in the Special Supplemental Nutrition Program for Women, Infants, and Children reserve account, $16,069,000 is hereby rescinded.

SEC. 740. In addition to amounts otherwise appropriated or made available by this Act, $2,475,000 is appropriated for the purpose of providing Bill Emerson and Mickey Leland Hunger Fellowships, through the Congressional Hunger Center.

SEC. 741. From the unobligated balances of funds transferred to the Department of Homeland Security when the Department was established pursuant to the Homeland Security Act of 2002 (Public Law 107-296), excluding mandatory appropriations, $8,000,000 is rescinded.

SEC. 742. Effective as of May 25, 2007, section 9012 of Public Law 110-28 (121 Stat. 218) is repealed.

SEC. 743. Section 17(r)(5) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(r)(5)) is amended--

(1) by striking `seven' and inserting `eight';

(2) by striking `five' and inserting `six'; and

(3) by inserting `West Virginia,' after the first instance of `States shall be'.

SEC. 744. Hereafter, notwithstanding any other provision of law, of the funds made available for the Commodity Assistance Program under division B of Public Law 109-148, Emergency Supplemental Appropriations to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006, all unexpended funds shall be made available to support normal program operations of the Commodity Supplemental Food Program under the Agriculture and Consumer Protection Act of 1973 and of the Emergency Food Assistance Program under the Emergency Food Assistance Act of 1983: Provided, That any commodities purchased with funds made available under Public Law 109-148 and remaining undistributed shall be used to support normal program operations under the authorities cited in this section.

SEC. 745. Notwithstanding any other provision of law, and until receipt of the decennial Census in the year 2010, the Secretary of Agriculture shall consider--

(1) the City of Alamo, Texas; the City of Mercedes, Texas; the City of Weslaco, Texas; the City of Donna, Texas; and the City of La Feria, Texas, (including individuals and entities with projects within the cities) eligible for loans and grants funded through the rural business and cooperative development programs in the Rural Community Advancement Program account;

(2) the City of Bainbridge Island, Washington; and the City of Havelock, North Carolina, (including individuals and entities with projects within the cities) eligible for loans and grants funded through the rural community programs in the Rural Community Advancement Program account;

(3) the City of Freeport, Illinois; Kitsap County (except the City of Bremerton), Washington; the City of Atascadero, California; and the City of Paso Robles, California, (including individuals and entities with projects within the cities) eligible for loans and grants funded through the Rural Housing Insurance Fund Program account and the Rural Housing Assistance Grants account; and

(4) the City of Canton, Mississippi, (including individuals and entities with projects within the cities) eligible for loans and grants funded through the rural utilities programs in the Rural Community Advancement Program account.

SEC. 746. No funds in this Act may be used to authorize qualified health claims for conventional foods.

SEC. 747. None of the funds made available in this Act may be used to enter into a contract with an entity that does not participate in the basic pilot program described in section 403(a) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note).

This Act may be cited as the `Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2008'.

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AMENDMENTS