GRASSLAND RESERVE PROGRAM.

SEC. 2403. GRASSLAND RESERVE PROGRAM. Subchapter D of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et seq.), as redesignated by section 2301(a)(1), is amended to read as follows:“Subchapter D—Grassland Reserve Program“SEC. 1238N. GRASSLAND RESERVE PROGRAM.“(a) Establishment and Purpose.—The Secretary shall establish a grassland reserve program (referred to in this subchapter as the ‘program’) for the purpose of assisting owners and operators in protecting grazing uses and related conservation values by restoring and conserving eligible land through rental contracts, easements, and restoration agreements.“(b) Enrollment of Acreage.—“(1) Acreage enrolled.—The Secretary shall enroll an additional 1,220,000 acres of eligible land in the program during fiscal years 2009 through 2012.“(2) Methods of enrollment.—The Secretary shall enroll eligible land in the program through the use of;“(A) a 10-year, 15-year, or 20-year rental contract;“(B) a permanent easement; or122 STAT. 1052“(C) in a State that imposes a maximum duration for easements, an easement for the maximum duration allowed under the law of that State.“(3) Limitation.—Of the total amount of funds expended under the program to acquire rental contracts and easements described in paragraph (2), the Secretary shall use, to the extent practicable—“(A) 40 percent for rental contacts; and“(B) 60 percent for easements.“(4) Enrollment of conservation reserve land.—“(A) Priority.—Upon expiration of a contract under subchapter B of chapter 1 of this subtitle, the Secretary shall give priority for enrollment in the program to land previously enrolled in the conservation reserve program if—“(i) the land is eligible land, as defined in subsection (c); and“(ii) the Secretary determines that the land is of high ecological value and under significant threat of conversion to uses other than grazing.“(B) Maximum enrollment.—The number of acres of land enrolled under the priority described in subparagraph (A) in a calendar year shall not exceed 10 percent of the total number of acres enrolled in the program in that calendar year.“(c) Eligible Land Defined.—For purposes of the program, the term ‘eligible land’ means private or tribal land that—“(1) is grassland, land that contains forbs, or shrubland (including improved rangeland and pastureland) for which grazing is the predominant use;“(2) is located in an area that has been historically dominated by grassland, forbs, or shrubland, and the land—“(A) could provide habitat for animal or plant populations of significant ecological value if the land—“(i) is retained in its current use; or“(ii) is restored to a natural condition;“(B) contains historical or archaeological resources; or“(C) would address issues raised by State, regional, and national conservation priorities; or“(3) is incidental to land described in paragraph (1) or (2), if the incidental land is determined by the Secretary to be necessary for the efficient administration of a rental contract or easement under the program. “SEC. 1238O. DUTIES OF OWNERS AND OPERATORS.“(a) Rental Contracts.—To be eligible to enroll eligible land in the program under a rental contract, the owner or operator of the land shall agree—“(1) to comply with the terms of the contract and, when applicable, a restoration agreement;“(2) to suspend any existing cropland base and allotment history for the land under another program administered by the Secretary; and“(3) to implement a grazing management plan, as approved by the Secretary, which may be modified upon mutual agreement of the parties.122 STAT. 1053“(b) Easements.—To be eligible to enroll eligible land in the program through an easement, the owner of the land shall agree—“(1) to grant an easement to the Secretary or to an eligible entity described in section 1238Q;“(2) to create and record an appropriate deed restriction in accordance with applicable State law to reflect the easement;“(3) to provide a written statement of consent to the easement signed by persons holding a security interest or any vested interest in the land;“(4) to provide proof of unencumbered title to the underlying fee interest in the land that is the subject of the easement;“(5) to comply with the terms of the easement and, when applicable, a restoration agreement;“(6) to implement a grazing management plan, as approved by the Secretary, which may be modified upon mutual agreement of the parties; and“(7) to eliminate any existing cropland base and allotment history for the land under another program administered by the Secretary.“(c) Restoration Agreements.—“(1) When applicable.—To be eligible for cost-share assistance to restore eligible land subject to a rental contract or an easement under the program, the owner or operator of the land shall agree to comply with the terms of a restoration agreement.“(2) Terms and conditions.—The Secretary shall prescribe the terms and conditions of a restoration agreement by which eligible land that is subject to a rental contract or easement under the program shall be restored.“(3) Duties.—The restoration agreement shall describe the respective duties of the owner or operator and the Secretary, including the Federal share of restoration payments and technical assistance.“(d) Terms and Conditions Applicable to Rental Contracts and Easements.—“(1) Permissible activities.—The terms and conditions of a rental contract or easement under the program shall permit—“(A) common grazing practices, including maintenance and necessary cultural practices, on the land in a manner that is consistent with maintaining the viability of grassland, forb, and shrub species appropriate to that locality;“(B) haying, mowing, or harvesting for seed production, subject to appropriate restrictions during the nesting season for birds in the local area that are in significant decline or are conserved in accordance with Federal or State law, as determined by the State Conservationist;“(C) fire presuppression, rehabilitation, and construction of fire breaks; and“(D) grazing related activities, such as fencing and livestock watering.“(2) Prohibitions.—The terms and conditions of a rental contract or easement under the program shall prohibit—“(A) the production of crops (other than hay), fruit trees, vineyards, or any other agricultural commodity that is inconsistent with maintaining grazing land; and122 STAT. 1054“(B) except as permitted under a restoration plan, the conduct of any other activity that would be inconsistent with maintaining grazing land enrolled in the program.“(3) Additional terms and conditions.—A rental contract or easement under the program shall include such additional provisions as the Secretary determines are appropriate to carry out or facilitate the purposes and administration of the program.“(e) Violations.—On a violation of the terms or conditions of a rental contract, easement, or restoration agreement entered into under this section—“(1) the contract or easement shall remain in force; and“(2) the Secretary may require the owner or operator to refund all or part of any payments received under the program, with interest on the payments as determined appropriate by the Secretary. “SEC. 1238P. DUTIES OF SECRETARY.“(a) Evaluation and Ranking of Applications.—“(1) Criteria.—The Secretary shall establish criteria to evaluate and rank applications for rental contracts and easements under the program .“(2) Considerations.—In establishing the criteria, the Secretary shall emphasize support for—“(A) grazing operations;“(B) plant and animal biodiversity; and“(C) grassland, land that contains forbs, and shrubland under the greatest threat of conversion to uses other than grazing.“(b) Payments.—“(1) In general.—In return for the execution of a rental contract or the granting of an easement by an owner or operator under the program, the Secretary shall—“(A) make rental contract or easement payments to the owner or operator in accordance with paragraphs (2) and (3); and“(B) make payments to the owner or operator under a restoration agreement for the Federal share of the cost of restoration in accordance with paragraph (4).“(2) Rental contract payments.—“(A) Percentage of grazing value of land.—In return for the execution of a rental contract by an owner or operator under the program, the Secretary shall make annual payments during the term of the contract in an amount, subject to subparagraph (B), that is not more than 75 percent of the grazing value of the land covered by the contract.“(B) Payment limitation.—Payments made under 1 or more rental contracts to a person or legal entity, directly or indirectly, may not exceed, in the aggregate, $50,000 per year.“(3) Easement payments.—“(A) In general.—Subject to subparagraph (B), in return for the granting of an easement by an owner under the program, the Secretary shall make easement payments in an amount not to exceed the fair market value of the 122 STAT. 1055 land less the grazing value of the land encumbered by the easement.“(B) Method for determination of compensation.—In making a determination under subparagraph (A), the Secretary shall pay as compensation for a easement acquired under the program the lowest of—“(i) the fair market value of the land encumbered by the easement, as determined by the Secretary, using—“(I) the Uniform Standards of Professional Appraisal Practices; or“(II) an area-wide market analysis or survey;“(ii) the amount corresponding to a geographical cap, as determined by the Secretary in regulations; or“(iii) the offer made by the landowner.“(C) Schedule.—Easement payments may be provided in up to 10 annual payments of equal or unequal amount, as agreed to by the Secretary and the owner.“(4) Restoration agreement payments.—“(A) Federal share of restoration.—The Secretary shall make payments to an owner or operator under a restoration agreement of not more than 50 percent of the costs of carrying out measures and practices necessary to restore functions and values of that land.“(B) Payment limitation.—Payments made under 1 or more restoration agreements to a person or legal entity, directly or indirectly, may not exceed, in the aggregate, $50,000 per year.“(5) Payments to others.—If an owner or operator who is entitled to a payment under the program dies, becomes incompetent, is otherwise unable to receive the payment, or is succeeded by another person who renders or completes the required performance, the Secretary shall make the payment, in accordance with regulations promulgated by the Secretary and without regard to any other provision of law, in such manner as the Secretary determines is fair and reasonable in light of all the circumstances. “SEC. 1238Q. DELEGATION OF DUTY.“(a) Authority to Delegate.—The Secretary may delegate a duty under the program—“(1) by transferring title of ownership to an easement to an eligible entity to hold and enforce; or“(2) by entering into a cooperative agreement with an eligible entity for the eligible entity to own, write, and enforce an easement.“(b) Eligible Entity Defined.—In this section, the term ‘eligible entity’ means—“(1) an agency of State or local government or an Indian tribe; or“(2) an organization that—“(A) is organized for, and at all times since the formation of the organization has been operated principally for, one or more of the conservation purposes specified in clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of the Internal Revenue Code of 1986;122 STAT. 1056“(B) is an organization described in section 501(c)(3) of that Code that is exempt from taxation under section 501(a) of that Code; and“(C) is described in—“(i) paragraph (1) or (2) of section 509(a) of that Code; or“(ii) in section 509(a)(3) of that Code, and is controlled by an organization described in section 509(a)(2) of that Code.“(c) Transfer of Title of Ownership.—“(1) Transfer.—The Secretary may transfer title of ownership to an easement to an eligible entity to hold and enforce, in lieu of the Secretary, subject to the right of the Secretary to conduct periodic inspections and enforce the easement, if—“(A) the Secretary determines that the transfer will promote protection of grassland, land that contains forbs, or shrubland;“(B) the owner authorizes the eligible entity to hold or enforce the easement; and“(C) the eligible entity agrees to assume the costs incurred in administering and enforcing the easement, including the costs of restoration or rehabilitation of the land as specified by the owner and the eligible entity.“(2) Application.—An eligible entity that seeks to hold and enforce an easement shall apply to the Secretary for approval.“(3) Approval by secretary.—The Secretary may approve an application described in paragraph (2) if the eligible entity—“(A) has the relevant experience necessary, as appropriate for the application, to administer an easement on grassland, land that contains forbs, or shrubland;“(B) has a charter that describes a commitment to conserving ranchland, agricultural land, or grassland for grazing and conservation purposes; and“(C) has the resources necessary to effectuate the purposes of the charter.“(d) Cooperative Agreements.—“(1) Authorized; terms and conditions.—The Secretary shall establish the terms and conditions of a cooperative agreement under which an eligible entity shall use funds provided by the Secretary to own, write, and enforce an easement, in lieu of the Secretary.“(2) Minimum requirements.—At a minimum, the cooperative agreement shall—“(A) specify the qualification of the eligible entity to carry out the entity’s responsibilities under the program, including acquisition, monitoring, enforcement, and implementation of management policies and procedures that ensure the long-term integrity of the easement protections;“(B) require the eligible entity to assume the costs incurred in administering and enforcing the easement, including the costs of restoration or rehabilitation of the land as specified by the owner and the eligible entity;“(C) specify the right of the Secretary to conduct periodic inspections to verify the eligible entity’s enforcement of the easement;122 STAT. 1057“(D) subject to subparagraph (E), identify a specific project or a range of projects to be funded under the agreement;“(E) allow, upon mutual agreement of the parties, substitution of qualified projects that are identified at the time of substitution;“(F) specify the manner in which the eligible entity will evaluate and report the use of funds to the Secretary;“(G) allow the eligible entity flexibility to develop and use terms and conditions for easements, if the Secretary finds the terms and conditions consistent with the purposes of the program and adequate to enable effective enforcement of the easements;“(H) if applicable, allow an eligible entity to include a charitable donation or qualified conservation contribution (as defined by section 170(h) of the Internal Revenue Code of 1986) from the landowner from which the easement will be purchased as part of the entity’s share of the cost to purchase an easement; and“(I) provide for a schedule of payments to an eligible entity, as agreed to by the Secretary and the eligible entity.“(3) Cost sharing.—“(A) In general.—As part of a cooperative agreement with an eligible entity under this subsection, the Secretary may provide a share of the purchase price of an easement under the program.“(B) Minimum share by eligible entity.—The eligible entity shall be required to provide a share of the purchase price at least equivalent to that provided by the Secretary.“(C) Priority.—The Secretary may accord a higher priority to proposals from eligible entities that leverage a greater share of the purchase price of the easement.“(4) Violation.—If an eligible entity violates the terms or conditions of a cooperative agreement entered into under this subsection—“(A) the cooperative agreement shall remain in force; and“(B) the Secretary may require the eligible entity to refund all or part of any payments received by the eligible entity under the program, with interest on the payments as determined appropriate by the Secretary.“(e) Protection of Federal Investment.—When delegating a duty under this section, the Secretary shall ensure that the terms of an easement include a contingent right of enforcement for the Department.” .