Climate-smart conversion grants

Subchapter A of chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) is amended by adding at the end the following:

1240H–1.

Climate-smart conversion grants

(a)

Definitions

In this section:(1)

Animal feeding operation

The term animal feeding operation means a lot or facility at which—(A)for not less than a total of 45 days in any 12-month period, animals (other than aquatic animals) are—(i)stabled or confined; and(ii)fed or maintained; and(B)crops, vegetation, forage growth, or postharvest residues are not sustained in the normal growing season over any portion of the lot or facility.(2)

Climate-smart conversion project

The term climate-smart conversion project means a climate-smart conversion project described in subsection (d). (3)

Eligible entity

The term eligible entity means a producer or non-Federal entity that—(A)has control of the land that is the subject of a grant provided under this section; and(B)owns or operates a medium concentrated animal feeding operation or large concentrated animal feeding operation that—(i)is in operation for livestock or poultry production at the time of submission of an application for a grant under this section; or(ii)was in operation for livestock or poultry production not more than 1 year prior to the time of submission of such an application. (4)

Large concentrated animal feeding operation

The term large concentrated animal feeding operation means an animal feeding operation at which are present not less than—(A)700 mature dairy cows, milked or dry;(B)1,000 veal calves;(C)1,000 cattle (including heifers, steers, bulls, cows, and calves) other than mature dairy cows or veal calves;(D)2,500 swine, each weighing not less than 55 pounds;(E)10,000 swine, each weighing less than 55 pounds;(F)500 horses;(G)10,000 sheep or lambs;(H)55,000 turkeys;(I)in the case of an animal feeding operation that uses a liquid manure handling system—(i)30,000 laying hens or broilers; or(ii)5,000 ducks; or(J)in the case of an animal feeding operation that uses a system other than a liquid manure handling system—(i)125,000 chickens (other than laying hens);(ii)82,000 laying hens; or(iii)30,000 ducks.(5)

Medium concentrated animal feeding operation

The term medium concentrated animal feeding operation means an animal feeding operation at which—(A)are present—(i)not less than 200 and not more than 699 mature dairy cows, whether milked or dry;(ii)not less than 300 and not more than 999 veal calves;(iii)not less than 300 and not more than 999 cattle (including heifers, steers, bulls, cows, and calves) other than mature dairy cows or veal calves;(iv)not less than 750 and not more than 2,499 swine, each weighing not less than 55 pounds;(v)not less than 3,000 and not more than 9,999 swine, each weighing less than 55 pounds;(vi)not less than 150 and not more than 499 horses;(vii)not less than 3,000 and not more than 9,999 sheep or lambs;(viii)not less than 16,500 and not more than 54,999 turkeys;(ix)in the case of an animal feeding operation that uses a liquid manure handling system— (I)not less than 9,000 and not more than 29,999 laying hens or broilers; or(II)not less than 1,500 and not more than 4,999 ducks; or(x)in the case of an animal feeding operation that uses a system other than a liquid manure handling system— (I)not less than 37,500 and not more than 124,999 chickens (other than laying hens);(II)not less than 25,000 and not more than 81,999 laying hens; or(III)not less than 10,000 and not more than 29,999 ducks; and(B)pollutants are discharged—(i)into waters of the United States through a man-made ditch, flushing system, or other similar man-made device; or(ii)directly into waters of the United States that originate outside of and pass over, across, or through the animal feeding operation or otherwise come into direct contact with the animals confined in the animal feeding operation. (b)

Grants

Using the amounts made available by subsection (h), the Secretary shall provide grants to eligible entities to carry out climate-smart conversion projects in accordance with this section.(c)

Grant application

(1)

Duty of Secretary

Not later than 180 days after the date of enactment of this section, and annually thereafter, the Secretary shall publish detailed guidelines on how to apply for a grant under this section.(2)

Contents

An eligible entity seeking a grant under this section shall submit to the Secretary an application at such time, in such manner, and containing such information, including a proposal for a climate-smart conversion project, as are described in the detailed guidelines published under paragraph (1).(d)

Climate-Smart conversion projects

(1)

In general

An eligible entity that receives a grant under this section shall carry out a climate-smart conversion project that converts an existing medium concentrated animal feeding operation or large concentrated animal feeding operation into a climate-smart facility by making 1 or more of the following beneficial, on-farm infrastructure improvements:(A)Improvements related to providing animals with access to the outdoors or pasture, including purchasing, integrating, or constructing—(i)fencing and mobile or permanent housing or shelter;(ii)enrichment materials for use in indoor shelters;(iii)hedgerow and ecosystem enhancement planting and design;(iv)drought-resistant grasses; or(v)water lines and irrigation structures for watering outdoor animals.(B)Improvements related to converting to specialty crop or organic production, including—(i)purchasing—(I)seeds and starts;(II)compost and compost structure supplies;(III)propagation supplies; and(IV)soil remediation tools, including off-the-ground raised beds, portable pots, or other converted structures; and(ii)establishing or repurposing existing structures or constructing high tunnels or similar protected-environment planting structures.(2)

Exclusions

An eligible entity shall not use a grant provided under this section to construct, through a climate-smart conversion project—(A)an animal mortality facility;(B)a manure lagoon or other liquid waste storage or treatment facility; or(C)a manure methane digester system.(3)

Requirement

As a condition of receiving a grant under this section, not later than 180 days after the date on which the eligible entity receives the grant, the eligible entity shall permanently cease any operation of the medium concentrated animal feeding operation or large concentrated animal feeding operation described in subsection (a)(3)(B) where animals are confined entirely indoors on the land and facilities that are the subject of the grant. (e)

Grant amounts

(1)

Federal share

The Federal share of a grant provided to an eligible entity under this section shall not exceed 90 percent of the total cost of the applicable climate-smart conversion project.(2)

Non-Federal share

An eligible entity that receives a grant under this section shall provide non-Federal funding, in the form of direct funding or in-kind contributions, equal to not less than 10 percent of the total cost of the applicable climate-smart conversion project.(3)

Lower cost-share requirements for certain eligible entities

Notwithstanding paragraphs (1) and (2), the Secretary may reduce the amount that would otherwise be required to be provided by an eligible entity under those paragraphs in the case of an eligible entity who is a socially disadvantaged farmer or rancher (as defined in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a))) carrying out the applicable climate-smart conversion project with the assistance of—(A)a community-based organization composed of, representing, or exclusively working with historically underserved producers; or(B)a land grant institution, Hispanic-serving institution, or other minority-serving institution, such as a historically Black college or university, a Tribally controlled college or university, or an Asian American and Pacific Islander-serving institution.(f)

Grant term

The term of a grant provided under this section shall not exceed 3 years.(g)

Undue or unreasonable prejudice or disadvantage

Any refusal by a packer (as defined in section 201 of the Packers and Stockyards Act, 1921 (7 U.S.C. 191)), to purchase livestock or poultry from an entity on account of that entity having applied for or carried out a climate-smart conversion project under this section shall be considered an undue or unreasonable prejudice or disadvantage under section 202(b) of that Act (7 U.S.C. 192(b)) and in violation of that Act (7 U.S.C. 191 et seq.).(h)

Funding

The Secretary shall use to provide grants under subsection (b) amounts appropriated to carry out this subchapter by section 21001(a)(1) of Public Law 117–169 (136 Stat. 2015) that remain unobligated as of the date of enactment of this section.