To amend the Food Security Act of 1985 to establish a grassland reserve program to assist owners in restoring and protecting grassland.

To amend the Food Security Act of 1985 to establish a grassland reserve program to assist owners in restoring and protecting grassland.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Grassland Reserve Act'.

SEC. 2. FINDINGS.

Congress finds that--

(1) vast grassland once provided critical habitat for complex plant and animal communities throughout much of North America;

(2) today, grassland areas have been largely converted to other uses, threatening and eliminating plant and animal communities unique to North America;

(3) a significant portion of the remaining grassland is on working ranches;

(4) ranchers have an economic interest in preserving the remaining grassland as forage for their livestock;

(5) many ranchers are also concerned about losing the open spaces and `big sky' central to the ranching way of life;

(6) apart from the loss of grassland, ranches themselves have steadily disappeared through the years and are likely to disappear at a faster rate in the immediate decade as a generation of ranchers reach retirement age;

(7) ranch land provides important open-space buffers for animal and plant habitat;

(8) ranching forms the economic backbone for much of the rural area of the western United States;

(9) currently, there are no Federal programs that protect grassland, ranch land, or other land with comparable high resource value, other than wetland, on a national scale; and

(10) a grassland reserve program would provide important economic assistance to ranchers and other agricultural producers who may voluntarily decide that participating in the program would be to their advantage.

SEC. 3. GRASSLAND RESERVE PROGRAM.

Chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by adding at the end the following:

`Subchapter D--Grassland Reserve Program

`SEC. 1238. GRASSLAND RESERVE PROGRAM.

`(a) ESTABLISHMENT- The Secretary, acting through the Natural Resource Conservation Service, shall establish a grassland reserve program (referred to in this subchapter as `the program') to assist owners in restoring and protecting eligible land described in subsection (c).

`(b) ENROLLMENT CONDITIONS-

`(1) IN GENERAL- The Secretary shall enroll in the program, from willing owners, not less than--

`(A) 100 contiguous acres of land west of the 90th meridian; or

`(B) 50 contiguous acres of land east of the 90th meridian.

`(2) MAXIMUM ENROLLMENT- The total number of acres enrolled in the program shall not exceed 1,000,000 acres.

`(3) METHODS OF ENROLLMENT- The Secretary shall enroll land in the program through--

`(A) permanent easements or 30-year easements;

`(B) in a State that imposes a maximum duration for such an easement, an easement for the maximum duration allowed under State law; or

`(C) a 30-year rental agreement.

`(c) ELIGIBLE LAND- Land shall be eligible to be enrolled in the program if the Secretary determines that the land is--

`(1) natural grassland or shrubland;

`(2) land that--

`(A) is located in an area that has been historically dominated by natural grassland or shrubland; and

`(B) has potential to serve as habitat for animal or plant populations of significant ecological value if the land is restored to natural grassland or shrubland; or

`(3) land that 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 the easement.

`SEC. 1238A. EASEMENTS AND AGREEMENTS.

`(a) IN GENERAL- To be eligible to enroll land in the program, the owner of the land shall enter into an agreement with the Secretary--

`(1) to grant an easement that runs with the land to the Secretary;

`(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; and

`(5) to comply with the terms of the easement and restoration agreement.

`(b) TERMS OF EASEMENT- An easement under subsection (a) shall--

`(1) permit--

`(A) grazing on the land in a manner that is consistent with maintaining the viability of natural grass and shrub species indigenous to that locality;

`(B) haying (including haying for seed production) or mowing, except during the nesting season for birds in the area that are in significant decline, as determined by the Natural Resources Conservation Service State conservationist, or are protected Federal or State law; and

`(C) fire rehabilitation, construction of fire breaks, and fences (including placement of the posts necessary for fences);

`(2) prohibit--

`(A) the production of row crops, fruit trees, vineyards, or any other agricultural commodity that requires breaking the soil surface; and

`(B) except as permitted under paragraph (1)(C), the conduct of any other activities that would disturb the surface of the land covered by the easement, including--

`(i) plowing; and

`(ii) disking; and

`(3) include such additional provisions as the Secretary determines are appropriate to carry out this subchapter or to facilitate the administration of this subchapter.

`(c) EVALUATION AND RANKING OF EASEMENT APPLICATIONS-

`(1) IN GENERAL- The Secretary, in conjunction with State technical committees, shall establish criteria to evaluate and rank applications for easements under this subchapter.

`(2) CRITERIA- In establishing the criteria, the Secretary shall emphasize support for grazing operations, plant and animal biodiversity, and grassland and shrubland under the greatest threat of conversion.

`(d) RESTORATION AGREEMENTS-

`(1) IN GENERAL- The Secretary shall prescribe the terms by which grassland and shrubland subject to an easement under an agreement entered into under the program shall be restored.

`(2) REQUIREMENTS- The restoration agreement shall describe the respective duties of the owner and the Secretary (including paying the Federal share of the cost of restoration and the provision of technical assistance).

`(e) VIOLATIONS-

`(1) IN GENERAL- On the violation of the terms or conditions of an easement or restoration agreement entered into under this section--

`(A) the easement shall remain in force; and

`(B) the Secretary may require the owner to refund all or part of any payments received by the owner under this subchapter, with interest on the payments as determined appropriate by the Secretary.

`(2) PERIODIC INSPECTIONS-

`(A) IN GENERAL- After providing notice to the owner, the Secretary shall conduct periodic inspections of land subject to easements under this subchapter to ensure that the terms of the easement and restoration agreement are being met.

`(B) LIMITATION- The Secretary may not prohibit the owner, or a representative of the owner, from being present during a periodic inspection.

`SEC. 1238B. DUTIES OF SECRETARY.

`(a) IN GENERAL- In return for the granting of an easement by an owner under this subchapter, the Secretary shall, in accordance with this section,--

`(1) make easement payments;

`(2) pay the Federal share of the cost of restoration; and

`(3) provide technical assistance to the owner.

`(b) PAYMENT SCHEDULE-

`(1) EASEMENT PAYMENTS-

`(A) AMOUNT- In return for the granting of an easement by an owner under this subchapter, the Secretary shall make easement payments to the owner in an amount equal to--

`(i) in the case of a permanent easement, the fair market value of the land less the grazing value of the land encumbered by the easement; and

`(ii) in the case of a 30-year easement or an easement for the maximum duration allowed under applicable State law, 30 percent of the fair market value of the land less the grazing value of the land for the period during which the land is encumbered by the easement.

`(B) SCHEDULE- Easement payments may be provided in not less than 1 payment nor more than 10 annual payments of equal or unequal amount, as agreed to by the Secretary and the owner.

`(2) RENTAL AGREEMENT PAYMENTS-

`(A) AMOUNT- If an owner enters into a 30-year rental agreement authorized under section 1238(b)(3)(C), the Secretary shall make 30 annual rental payments to the owner in an amount that equals, to the maximum extent practicable, the 30-year easement payment amount under paragraph (1)(A)(ii).

`(B) ASSESSMENT- Not less than once every 5 years throughout the 30-year rental period, the Secretary shall assess whether the value of the rental payments under subparagraph (A) equals, to the maximum extent practicable, the 30-year easement payments as of the date of the assessment.

`(C) ADJUSTMENT- If on completion of the assessment under subparagraph (B), the Secretary determines that the rental payments do not equal, to the maximum extent practicable, the value of payments under a 30-year easement, the Secretary shall adjust the

`(c) FEDERAL SHARE OF COST OF RESTORATION- The Secretary shall make payments to the owner of not more than 75 percent of the cost of carrying out measures and practices necessary to restore grassland and shrubland functions and values.

`(d) TECHNICAL ASSISTANCE-

`(1) IN GENERAL- The Secretary shall provide owners with technical assistance to execute easement documents and restore the grassland and shrubland.

`(2) REIMBURSEMENT BY COMMODITY CREDIT CORPORATION- The Commodity Credit Corporation shall reimburse the Secretary, acting through the Natural Resources Conservation Service, for not more than 10 percent of the cost of acquisition of the easement and the Federal share of the cost of restoration obligated for that fiscal year.

`(e) PAYMENTS TO OTHERS- If an owner that is entitled to a payment under this subchapter 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.

`(f) OTHER PAYMENTS- Easement payments received by an owner under this subchapter shall be in addition to, and not affect, the total amount of payments that the owner is otherwise eligible to receive under other Federal laws.

`SEC. 1238C. ADMINISTRATION.

`(a) DELEGATION TO PRIVATE ORGANIZATIONS-

`(1) IN GENERAL- The Secretary shall permit a private conservation or land trust organization or a State agency to hold and enforce an easement under this subchapter, in lieu of the Secretary, if--

`(A) the Secretary determines that granting such permission is likely to promote grassland and shrubland protection; and

`(B) the owner authorizes the private conservation or land trust or a State agency to hold and enforce the easement.

`(2) APPLICATION- An organization that desires to hold an easement under this subchapter shall apply to the Secretary for approval.

`(3) APPROVAL BY SECRETARY- The Secretary shall approve an organization under this subchapter that is constituted for conservation or ranching purposes and is competent to administer grassland and shrubland easements.

`(4) REASSIGNMENT- If an organization holding an easement on land under this subchapter terminates--

`(A) the owner of the land shall reassign the easement to another organization described in paragraph (1) or to the Secretary; and

`(B) the owner and the new organization shall notify the Secretary in writing that a reassignment for termination has been made.

`(b) REGULATIONS- Not later than 180 days after the date of enactment of this subchapter, the Secretary shall issue such regulations as are necessary to carry out this subchapter.'.

SEC. 4. FUNDING.

Section 1241(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(2)) is amended by striking `subchapter C' and inserting `subchapters C and D'.