[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5763 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 5763
To establish as a permanent program the organic market development
grant program of the Department of Agriculture.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 27, 2023
Ms. Kuster (for herself, Ms. Pingree, Ms. Salinas, and Mr. Panetta)
introduced the following bill; which was referred to the Committee on
Agriculture
_______________________________________________________________________
A BILL
To establish as a permanent program the organic market development
grant program of the Department of Agriculture.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ORGANIC MARKET DEVELOPMENT GRANT PROGRAM.
(a) Definitions.--In this section:
(1) Certified organic product.--The term ``certified
organic product'' means an agricultural product (as defined in
section 2103 of the Organic Foods Production Act of 1990 (7
U.S.C. 6502)) that is organically produced (as defined in that
section).
(2) Eligible entity.--
(A) In general.--The term ``eligible entity'' means
an entity described in subparagraph (B) that--
(i) is owned and operated within--
(I) a State;
(II) the District of Columbia;
(III) the Commonwealth of Puerto
Rico;
(IV) the United States Virgin
Islands;
(V) Guam;
(VI) American Samoa;
(VII) the Commonwealth of the
Northern Mariana Islands; or
(VIII) the jurisdiction of a Tribal
government; and
(ii)(I) is certified in accordance with
subpart E of part 205 of title 7, Code of
Federal Regulations (as in effect on the date
of enactment of this Act / or successor
regulations); or
(II) is in transition to certification.
(B) Entities described.--An entity referred to in
subparagraph (A) is--
(i) a producer, producer cooperative, or
other commercial entity that produces or
handles certified organic products;
(ii) a nonprofit corporation;
(iii) a trade association;
(iv) a public benefit corporation;
(v) a philanthropic organization;
(vi) a unit of Tribal, State, territorial,
or local government; or
(vii) such other entity as the Secretary
may designate.
(C) Exclusion.--The term ``eligible entity'' does
not include an entity described in subparagraph (B) the
operations of which are suspended or revoked under
section 205.662 of title 7, Code of Federal Regulations
(as in effect on the date of enactment of this Act / or
successor regulations).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(4) Transition to certification.--The term ``transition to
certification'', with respect to an eligible entity, means the
period of time during which the crops or livestock of the
eligible entity, as applicable, are managed in accordance with
the requirements of the National Organic Program before being
granted organic certification, which may include--
(A) the management of cropland organically for not
less than 3 years;
(B) the management of slaughter of livestock
organically from the last third of gestation;
(C) the management of dairy animals organically for
not less than 1 year;
(D) the management of poultry organically from the
second day of life; and
(E) such other conditions as the Secretary may
require.
(b) Establishment and Purpose.--The Secretary, acting through the
Administrator of the Agricultural Marketing Service, shall establish a
program, to be known as the ``Organic Market Development Grant
Program'', that--
(1) increases the capacity of the domestic organic product
supply chain for producers, handlers, suppliers, and processors
of certified organic products;
(2) modernizes manufacturing, tracking, storage, and
information technology systems specific to the purposes
described in this subsection, such as process control or
organic product ingredient tracking systems;
(3) improves the capacity of eligible entities to comply
with applicable regulatory requirements or quality standards
required to access markets, such as requirements and standards
relating to food safety and organic product certification;
(4) expands capacity for storage, processing, aggregation,
and distribution of certified organic products to create more
and better markets for producers of certified organic products;
(5) facilitates market development for domestically
produced certified organic products;
(6) provides for the conduct of feasibility studies and
market viability assessments to inform organic transition
strategies and opportunities;
(7) ameliorates barriers to entry to organic product
certification for historically underserved entities;
(8) supports market and promotional activities that help
build commercial markets for certified organic products in the
United States; and
(9) provides technical assistance and outreach to program
stakeholders and participants.
(c) Grants.--For each fiscal year for which amounts are made
available to carry out this section under subsection (k), the Secretary
shall provide grants to support eligible entities in conducting
activities in accordance with the purposes of the program described in
subsection (b).
(d) Applications.--
(1) In general.--To be eligible to receive a grant under
this section, an eligible entity shall submit to the Secretary
an application at such time, in such manner, and containing
such information as the Secretary may require.
(2) Simplified process.--The Secretary shall implement a
simplified application and award process under this section for
use by any eligible entity seeking to carry out an equipment-
only project.
(3) Benefits.--
(A) In general.--Except as provided in subparagraph
(B), an application submitted under this subsection
shall include a description of the direct or indirect
producer or food business benefits intended by the
eligible entity to result from the proposed project
within a reasonable period of time after the receipt of
a grant under this section.
(B) Exception.--Subparagraph (A) shall not apply to
any feasibility study or market viability assessment
conducted pursuant to this section.
(4) Criteria.--The Secretary shall establish such criteria
for the evaluation and funding of proposed projects under this
section as the Secretary determines to be appropriate.
(5) Competitive process.--The Secretary--
(A) shall conduct a competitive process to select
applications submitted under this subsection;
(B) may assess and rank applications with similar
purposes as a group; and
(C) before accepting any application under this
subsection, shall publish the criteria to be used in
evaluating the applications.
(e) Project Types.--An eligible entity may use amounts received
under this section to carry out, in accordance with such goals and
deadlines for completion as the Secretary may establish, the following
types of projects:
(1) Market development and promotion of certified organic
products.
(2) Certified organic product storage (including cold
storage), aggregation, processing, and distribution capacity
expansion.
(3) Equipment-only.
(f) Term.--Unless otherwise determined by the Secretary, a grant
provided under this section shall have a term of not longer than 3
years.
(g) Maximum Amount.--
(1) In general.--The amount of a grant provided under this
section for a project described in paragraph (1) or (2) of
subsection (e) shall be not more than $3,000,000.
(2) Simplified equipment-only projects.--The amount of a
grant provided under this section for a project described in
subsection (e)(3) shall be not more than $100,000.
(h) Matching Funds.--
(1) In general.--An eligible entity that receives a grant
under this section to carry out a project described in
paragraph (1) or (2) of subsection (e) shall provide a non-
Federal share equal to not less than 50 percent of the cost of
the project.
(2) Simplified equipment-only projects.--An eligible entity
that receives a grant under this section to carry out a project
described in subsection (e)(3) shall not be required to
contribute a non-Federal share to the cost of the project.
(i) Inapplicability of Prior Limitations.--
(1) Quantity.--The Secretary may provide a grant under this
section to more than 1 eligible entity, as the Secretary
determines to be appropriate.
(2) Construction and structural changes.--A grant provided
under this section may be used by an eligible entity for--
(A) new construction; or
(B) any structural modification to an existing
building or facility resulting in--
(i) an expansion in the square footage of
the building or facility; or
(ii) a change to the floor, the foundation,
or an exterior or load-bearing wall of the
building or facility.
(j) Technical Assistance.--The Secretary may provide to eligible
entities technical assistance under this section, directly or through a
cooperative agreement.
(k) Funding.--
(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section $75,000,000 for fiscal year 2024 and each fiscal year
thereafter, to remain available until expended.
(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $25,000,000 for
fiscal year 2024 and each fiscal year thereafter, to remain
available until expended.
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