[Senate Report 116-334]
[From the U.S. Government Publishing Office]


116th Congress         }                          {              Report
                                 SENATE
 2d Session            }                          {             116-334
_______________________________________________________________________

                                     


 
       UNITED STATES GRAIN STANDARDS REAUTHORIZATION ACT OF 2020

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

                                   on

                                S. 4054

		[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               December 16, 2020.--Ordered to be printed
        SENATE COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
                     One Hundred Sixteenth Congress
                             Second Session

                     PAT ROBERTS, Kansas, Chairman
MITCH McCONNELL, Kentucky            DEBBIE STABENOW, Michigan
JOHN BOOZMAN, Arkansas               PATRICK J. LEAHY, Vermont
JOHN HOEVEN, North Dakota            SHERROD BROWN, Ohio
JONI ERNST, Iowa                     AMY KLOBUCHAR, Minnesota
CINDY HYDE-SMITH, Mississippi        MICHAEL BENNET, Colorado
MIKE BRAUN, Indiana                  KIRSTEN GILLIBRAND, New York
CHARLES GRASSLEY, Iowa               ROBERT P. CASEY, Jr., Pennsylvania
JOHN THUNE, South Dakota             TINA SMITH, Minnesota
DEB FISCHER, Nebraska                RICHARD DURBIN, Illinois
KELLY LOEFFLER, Georgia


116th Congress                                                   Report
                                 SENATE
 2d Session                                                     116-334

======================================================================




       UNITED STATES GRAIN STANDARDS REAUTHORIZATION ACT OF 2020

                                _______
                                

               December 16, 2020.--Ordered to be printed

                                _______
                                

Mr. Roberts, from the Committee on Agriculture, Nutrition and Forestry, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 4054]

    The Committee on Agriculture, Nutrition and Forestry, 
having considered an original bill (S. 4054) to reauthorize the 
United States Grain Standards Act, and for other purposes, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                          Purpose of the Bill

    The purpose of the bill is to reauthorize expiring 
authority for federal grain inspection. The bill makes 
improvements to increase certainty, predictability, and 
transparency in the federal grain inspection system for U.S. 
farmers and other market participants.
    The reported bill provides authority for federal grain 
inspection programs through fiscal year 2025.

                          Background and Needs

    The Secretary, acting through the Federal Grain Inspection 
Service, is responsible for establishing official marketing 
standards for U.S. grains and oilseeds and for managing grain 
inspection. The reported bill reauthorizes various provisions 
in the United States Grain Standards Act (USGSA) relating to 
federal grain inspection through fiscal year 2025. The statute 
was last reauthorized in 2015 when authorities for federal 
grain inspection programs were extended through September 30, 
2020.

                         Summary of Provisions

    The bill reauthorizes various provisions in the United 
States Grain Standards Act (USGSA) relating to federal grain 
inspection through fiscal year 2025, including authority for 
delegated state agencies and designated official agencies to 
collect fees, the cap on administrative and supervisory costs, 
authority for appropriations, and the authority for the Grain 
Inspection Advisory Committee. In addition to reauthorization, 
the bill enhances publicly available information and improves 
certainty, predictability, and transparency for U.S. commodity 
producers, exporters, and trading partners.
    Section 2 of the bill improves predictability by requiring 
State agencies that intend to temporarily discontinue official 
inspection or weighing services to notify customers or 
applicants for these services in writing at least 72 hours in 
advance of the discontinuation date. This will provide these 
market participants with the same notice that is currently 
afforded to the Secretary of Agriculture.
    Section 5 of the bill requires the Secretary to publish, on 
a quarterly basis, certain inspection program data for 
intrinsic quality factors and food safety factors, exceptions 
for inspections across geographic boundaries either requested 
or granted, and waivers for official weighing or inspection 
either requested or granted. The bill also authorizes the 
Secretary to publish additional data related to testing, 
inspection, and weighing activities under the Act, after 
consultation with State agencies, official agencies, and the 
grain industry.
    The intrinsic quality factors and food safety factors 
required to be published on a quarterly basis by the new 
section 17B(d)(1) of the USGSA, as added by section 5 of the 
bill, include eight factors that have been reported for the 
five fiscal years 2014 through 2018 in the Federal Grain 
Inspection Service (FGIS) annual reports to Congress for fiscal 
years 2016 through 2018. These factors include the:
          1. Number of Barley Protein Inspections.
          2. Number of Corn Protein, Oil, and Starch 
        inspections.
          3. Number of Wheat Protein Inspections.
          4. Number of Soybean Protein and Oil Inspections.
          5. Number of Sunflower Seed Oil inspections.
          6. Number of Aflatoxin Inspections.
          7. Number of Deoxynivalenol Inspections.
          8. Number of Fumonisin Tests.
    FGIS performs a number of other intrinsic and extrinsic 
quality tests. The new section 17B(e) of the USGSA, as added by 
section 5 of the bill, authorizes FGIS to publish data relating 
to testing for other intrinsic quality factors or food safety 
factors, or collected from inspection and weighing activities, 
to the extent determined appropriate by the Secretary in 
consultation with certain State agencies, official agencies, 
and grain industries.
    Grain industry participants have expressed an interest in 
enhanced reporting from the United States Department of 
Agriculture (USDA) on non-mandatory, non-grade determining 
tests requested or performed. Demand for some of these tests 
has reportedly increased from a wide range of customers. 
Industry participants believe it could benefit sellers, buyers, 
and others in the grain value chain to have a better 
understanding of the demand for these tests, as provided 
through reports to USDA.
    New section 19(b) of the USGSA, as added by section 6 of 
the bill, prohibits the fees collected under specified 
authorities in the USGSA from being used for activities related 
to the development or maintenance of grain standards, or any 
other activity that is not directly related to the performance 
of an ``official inspection or weighing service'' (as that term 
is defined in new section 19(b)(1)(A)). Among these services, 
FGIS conducts residue and quality surveys for grain exports, in 
collaboration with nonprofit U.S. agricultural trade 
organizations that participate in the Foreign Market 
Development Program as cooperators. Currently, fees for these 
services may be collected from cooperators under the authority 
of the Agricultural Marketing Act of 1946. The collection and 
use of the fees for export surveys are in no way limited by new 
section 19(b).
    The bill amends the provisions governing the Grain 
Inspection Advisory Committee to allow members to serve up to 
two consecutive three-year terms. This will allow members to 
have more consistent and predictable involvement in the 
advisory committee, and provide continuity in the committee's 
work over time.
    The bill requires the Secretary to conduct a comprehensive 
nationwide review of the official agency geographic areas, and 
report the results of the review and any recommendations to the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
and the Committee on Agriculture of the House of 
Representatives no later than 18 months after the date of 
enactment.
    Uniformity in inspection and weighing among grain buying 
facilities through which farmers' grain enters the marketplace 
is essential to maintaining the confidence of grain sellers and 
buyers throughout the domestic and international value chain. 
USDA and the grain industry should work collaboratively to 
ensure that individuals responsible for inspecting or grading 
any lot of grain undergo appropriate training both before the 
individual inspects or grades any grain, and annually 
thereafter.
    Industry partners should work with FGIS, official agencies, 
and farmer-led organizations to develop and carry out 
inspection and grading training to ensure consistent 
application of the inspection and grading standards under the 
Act. Continuing to foster consistency among official agencies 
and private facilities in their training requirements, 
inspections, and grading will enhance certainty for American 
farmers and their domestic and international customers.
    The Committee remains concerned about an ongoing non-tariff 
trade barrier that negatively affected U.S. soybean exports to 
China. In January 2018, the USDA Animal and Plant Health 
Inspection Service (APHIS) and the Chinese government began 
enforcing a requirement that all U.S. soybean consignments 
exceeding 1 percent foreign material (FM) carry an additional 
declaration (AD) on phytosanitary certificates--a certificate 
that is reserved solely for communicating plant pest or plant 
health risks. This action led to a decline in U.S. soybean 
shipments to China beginning in early 2018, depressing 
commodity prices for U.S. farmers.
    The Committee believes that this misuse of the FM AD on 
phytosanitary certificates for U.S. soybean exports to China 
creates an undesirable precedent and unnecessary economic risk 
for U.S. commodity exports to China and other countries. Grain 
quality factors, such as FM, should not be reflected on 
phytosanitary certificates, either now or in the future.
    The Committee strongly urges USDA and the Office of the 
U.S. Trade Representative, in the course of trade consultations 
with their Chinese counterparts, to insist and ultimately 
ensure that phytosanitary certificates issued by APHIS do not 
include references to any grain quality factor, other factor 
(including FM), or grain quality standards. These do not 
pertain directly to plant health or plant pest risks reflected 
on phytosanitary certificates. In addition, any related import 
measures must be based on sound science and be in conformance 
with the World Trade Organization's agreement on the 
Application of Sanitary and Phytosanitary Measures, including 
those developed by the International Plant Protection 
Convention.

                          Legislative History

    On July 31, 2019, the Committee held a hearing, 
``Perspectives on Reauthorization of the U.S. Grain Standards 
Act,'' to hear testimony from experts on the U.S. grain 
inspection system.
    On June 24, 2020, the Committee held a business meeting to 
consider an original bill, ``The United States Grain Standards 
Reauthorization Act of 2020.'' During the business meeting, the 
original bill was ordered reported favorably without amendment 
by voice vote.

                            Estimated Costs

    In compliance with subsection (a)(3) of paragraph 11 of 
rule XXVI of the Standing Rules of the Senate, the Committee 
states that, in its opinion, it is necessary to dispense with 
the requirements of paragraphs (1) and (2) of that subsection 
in order to expedite the business of the Senate.

                      Regulatory Impact Statement

    In compliance with subsection (b)(2) of paragraph 11 of 
rule XXVI of the Standing Rules of the Senate, the Committee 
states that, in its opinion, it is necessary to dispense with 
the requirements of subsection (b)(1) of paragraph 11 of rule 
XXVI in order to expedite the business of the Senate. The 
Committee does not expect that significant new regulatory 
burdens will result from the regulations issued pursuant to the 
reported bill. The regulations issued will prescribe and define 
implementation of the changes authorized in the reported bill.

                       Number of Persons Covered

    S. 4054 would make improvements to increase effectiveness, 
certainty, and transparency in existing programs. Accordingly, 
the number of persons covered should be largely consistent with 
the current levels of individuals and businesses covered by the 
provisions of law addressed in the bill. To the extent there 
are new individuals or businesses covered, such expansion is 
generally supported by the persons or entities added.

                            Economic Impact

    The reported bill will not have an adverse economic impact 
on the United States. To the contrary, the legislation makes 
improvements to increase the effectiveness, certainty, and 
transparency in the federal grain inspection programs for U.S. 
farmers and other market participants. By supporting economic 
activity in the United States, the bill will have a positive 
impact on the national economy.

                                Privacy

    The reported bill will not have a negative impact on the 
personal privacy of individuals.

                               Paperwork

    The Committee does not anticipate a major increase in 
paperwork burdens resulting from the reported bill.

                   Congressionally Directed Spending

    In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, it is the opinion of the 
Committee that the reported bill does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 designates the short title for the legislation as 
the ``United States Grain Standards Reauthorization Act of 
2020.''

Section 2. Notification of discontinuance by State agencies

    Section 7(e)(2)(C)(i) of the Act requires that if a 
delegated State agency intends to temporarily discontinue 
official inspection or weighing services, that State agency 
must notify the Secretary of Agriculture in writing at least 72 
hours in advance of the discontinuation date. Section 2 of the 
bill requires the State Agency to provide the same notice to 
customers or applicants for inspection or weighing services.
    Section 2 also amends section 7(j)(5) of the Act to extend 
the authority for the Secretary to charge and collect fees from 
official agencies and delegated State agencies to fund official 
inspections from September 30, 2020 until September 30, 2025.

Section 3. Weighing authority

    Section 3 amends section 7A(l)(4) of the Act to extend the 
authority for the Secretary to charge and collect fees from 
delegated agencies to fund official weighing from September 30, 
2020 until September 30, 2025.

Section 4. Limitation on administrative and supervisory costs

    Section 4 amends section 7D of the Act to extend the cap on 
administrative and supervisory costs under the Act from 
September 30, 2020 until September 30, 2025.

Section 5. Reporting requirements

    Section 17B of the Act requires the Secretary of 
Agriculture to report annually to the Committee on Agriculture, 
Nutrition, and Forestry of the Senate and the Committee on 
Agriculture of the House of Representatives regarding the 
effectiveness of official inspection and weighing under the 
Act, and include information on related matters.
    Section 5 of the bill amends section 17B of the Act to 
require the Secretary to publish on a quarterly basis certain 
inspection program data for intrinsic quality factors and food 
safety factors that have been included in the FGIS annual 
report for the most recent five years (fiscal years 2014 
through 2018).
    Section 5 also requires the Secretary to publish, on a 
quarterly basis, the number of--
          (1) exceptions for inspections across geographic 
        boundaries either requested or granted under section 
        7(f)(2)(B) of the Act; and
          (2) waivers for official weighing or inspection 
        either requested or granted under section 5(a)(1) of 
        the Act.
    Section 5 also authorizes the Secretary to publish 
additional data related to testing, inspection, and weighing 
activities under the Act, after consultation with State 
agencies, official agencies, and the grain industry.
    Finally, section 5 requires that any trade secrets or 
confidential business information collected by the Secretary 
under the authorities provided by section 5 shall not be 
publicly disclosed.

Section 6. Appropriations

    Section 6 amends section 19 of the Act to require that user 
fees collected by the Federal Grain Inspection Service under 
sections 7, 7A, 7B, 16, or 17A of the Act may not be used for 
activities related to the development or maintenance of grain 
standards, or for any other activity that is not directly 
related to the performance of an ``official inspection or 
weighing service'' (as that term is defined in new section 
19(b)(1)(A)).
    Section 6 also amends section 19 of the Act to extend the 
authorization of appropriations to carry out the Act from 
September 30, 2020 until September 30, 2025.

Section 7. Advisory committee

    Section 7(1) amends section 21 of the Act to provide that 
members of the advisory committee may serve up to two 
consecutive terms.
    Section 7(2) extends the authorization of the advisory 
committee from September 30, 2020 until September 30, 2025.

Section 8. Review of geographic boundaries for official agencies

    Section 8 requires the Secretary of Agriculture to conduct 
a comprehensive nationwide review of the official agency 
geographic areas, after taking into consideration a number of 
specific factors. The Secretary is required to report the 
results of the review and any recommendations to the Committee 
on Agriculture, Nutrition, and Forestry of the Senate and the 
Committee on Agriculture of the House of Representatives no 
later than 18 months after the date of enactment.

Section 9. Technical correction

    Section 9 amends section 4(a)(1) of the Act to replace a 
comma that was inadvertently omitted in an earlier amendment 
made by section 5(a) of P.L. 94-582 (October 1, 1976).

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in [black brackets], new 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

                   UNITED STATES GRAIN STANDARDS ACT

[Public Law 90-487; Approved on August 15, 1968]

           *       *       *       *       *       *       *



SEC. 4. STANDARDS.

    (a) The Secretary is authorized to investigate the 
handling, weighing, grading, and transportation of grain and to 
fix and establish (1) standards of kind, class, quality, and 
condition for corn, wheat, rye, oats, barley, flaxseed, 
sorghum, [soybeans mixed] soybeans, mixed grain, and such other 
grains as in the judgment of the Secretary the usages of the 
trade may warrant and permit, and (2) standards or procedures 
for accurate weighing and weight certification and controls, 
including safeguards over equipment calibration and maintenance 
or procedures for grain shipped in interstate or foreign 
commerce; and the Secretary is authorized to amend or revoke 
such standards or procedures whenever the necessities of the 
trade may require.

           *       *       *       *       *       *       *


SEC. 7. OFFICIAL INSPECTION AUTHORITY AND FUNDING.

           *       *       *       *       *       *       *


    (e)

           *       *       *       *       *       *       *

          (2) Delegation of authority to state agencies.--

           *       *       *       *       *       *       *

                  (C) State agency requirements.--
                          (i) In general.--If a State agency 
                        that has been delegated authority under 
                        this paragraph intends to temporarily 
                        discontinue official inspection or 
                        weighing services for any reason, 
                        except in the case of a major disaster, 
                        the State agency shall notify the 
                        Secretary and affected customers or 
                        applicants for service of official 
                        inspection or weighing services 
                        provided by the State agency in writing 
                        of the intention of the State agency to 
                        do so at least 72 hours in advance of 
                        the discontinuation date.

           *       *       *       *       *       *       *

    (j) Fees.--

           *       *       *       *       *       *       *

          (5) The duties imposed by paragraph (2) on designated 
        official agencies and State agencies described in such 
        paragraph and the investment authority provided by 
        paragraph (3) shall expire on September 30, [2020] 
        2025. After that date, the fees established by the 
        Secretary pursuant to paragraph (1) shall not cover 
        administrative and supervisory costs related to the 
        official inspection of grain.

           *       *       *       *       *       *       *


SEC. 7A. WEIGHING AUTHORITY.

           *       *       *       *       *       *       *


    (l) Fees.--

           *       *       *       *       *       *       *

          (4) The authority provided to the Secretary by 
        paragraph (1) and the duties imposed by paragraph (2) 
        on agencies and other persons described in such 
        paragraph shall expire on September 30, [2020] 2025. 
        After that date, the Secretary shall, under such 
        regulations as the Secretary may prescribe, charge and 
        collect reasonable fees to cover the estimated costs of 
        official weighing and supervision of weighing except 
        when the official weighing or supervision of weighing 
        is performed by a designated official agency or by a 
        State under a delegation of authority. The fees 
        authorized by this paragraph shall, as nearly as 
        practicable, cover the costs of the Secretary incident 
        to its performance of official weighing and supervision 
        of weighing services in the United States and on United 
        States grain in Canadian ports, excluding 
        administrative and supervisory costs. The fees 
        authorized by this paragraph shall be deposited into a 
        fund which shall be available without fiscal year 
        limitation for the expenses of the Secretary incident 
        to providing services under this Act.

           *       *       *       *       *       *       *

    Sec. 7D. Limitation and Administrative and Supervisory 
Costs.--The total administrative and supervisory costs which 
may be incurred under this Act for services performed 
(excluding standardization, compliance, and foreign monitoring 
activities) for each of the fiscal years 1989 through [2020] 
2025 shall not exceed 30 per centum of the total costs for such 
activities carried out by the Secretary for such year.

           *       *       *       *       *       *       *


SEC. 17B. REPORTING REQUIREMENTS.--

           *       *       *       *       *       *       *


    (d) Enhancement of Current Reporting.--
          (1) Increased frequency of inspection program data 
        reporting.--
                (A) In general.--Beginning not later than 1 
                year after the date of enactment of this 
                subsection, the Secretary shall publish 
                quarterly reports describing data from the 
                tests and inspections for intrinsic quality 
                factors (including protein, oil, and starch) 
                and food safety factors, as reported, in the 
                aggregate, for fiscal years 2014 through 2018 
                in the tables in section V (relating to 
                providing official grain inspection and 
                weighing services) of the 2016 through 2018 
                annual reports to Congress by the Federal Grain 
                Inspection Service.
                  (B) Delineation.--The data from the tests and 
                inspections under subparagraph (A) shall be 
                delineated to reflect whether the tests and 
                inspections were requested of or performed by--
                          (i) the Secretary; or
                          (ii) a State agency delegated 
                        authority under section 7 or 7A or an 
                        official agency.
          (2) Exceptions and waivers.--Beginning not later than 
        1 year after the date of enactment of this subsection, 
        the Secretary shall publish quarterly reports 
        describing--
                  (A) the number of exceptions requested under 
                section 7(f)(2)(B);
                  (B) the number of exceptions granted under 
                section 7(f)(2)(B);
                  (C) the number of waivers requested under 
                section 5(a)(1); and
                  (D) the number of waivers granted under 
                section 5(a)(1).
    (e) Additional Reporting; Consultation.--The Secretary may, 
to the extent determined appropriate by the Secretary, in 
consultation with State agencies delegated authority under 
sections 7 and 7A, official agencies, and the grain industries 
described in the second sentence of section 21(a), publish--
          (1) data relating to testing for other intrinsic 
        quality or food safety factors; and
          (2) other data collected from inspection and weighing 
        activities conducted under this Act.
    (f) Protection of Confidential Business Information.--Any 
trade secrets or information described in section 552(b)(4) of 
title 5, United States Code, that is provided to or collected 
by the Secretary in carrying out subsection (d) or (e) shall 
not be included in a report under subsection (d) or (e) or 
otherwise publicly disclosed.

           *       *       *       *       *       *       *


[SEC. 19. APPROPRIATIONS.--THERE ARE HEREBY]

SEC. 19. FUNDING.

    (a) Authorization of Appropriations.--There are authorized 
to be appropriated [such sums as are necessary for 
standardization and compliance activities, monitoring in 
foreign ports grain officially inspected and weighed under this 
Act, and any other expenses necessary to carry out the 
provisions of this Act for each of the fiscal years 1988 
through [2020] 2025, to the extent that financing is not 
obtained from fees and sales of samples as provided for in 
sections 7, 7A, 7B, 16, and 17A.
    (b) Limitations on Uses of User Fees.--
          (1) Definitions.--In this subsection:
                  (A) Official inspection or weighing 
                service.--The term ``official inspection or 
                weighing service'' means official inspection, 
                official weighing, supervision of weighing, 
                supervision of agency personnel, supervision of 
                the field office personnel of the Secretary, 
                testing of equipment or instruments, other 
                services, or registration, the cost to the 
                Secretary of which is authorized to be covered 
                by the collection of a user fee pursuant to 
                section 7, 7A, 7B, 16, or 17A, as applicable.
                  (B) User fee.--The term ``user fee'' means a 
                fee collected by the Secretary under section 7, 
                7A, 7B, 16, or 17A.
        (2) Requirement.--A user fee--
                  (A) shall be used solely to cover--
                        (i) the cost to the Secretary for 
                        carrying out official inspection or 
                        weighing services; and
                        (ii) administrative costs to the 
                        Secretary directly relating to official 
                        inspection or weighing services; and
                  (B) shall not be used for--
                          (i) activities relating to the 
                        development or maintenance of grain 
                        standards; or
                          (ii) any other activity that is not 
                        directly related to the performance of 
                        official inspection or weighing 
                        services.

           *       *       *       *       *       *       *


SEC. 21. ADVISORY COMMITTEE.

    (a) Not later than ninety days after the date of enactment 
of this section, the Secretary shall establish an advisory 
committee to provide advice to the Secretary with respect to 
implementation of this Act consistent with the declarations of 
policy in section 2 of this Act. The advisory committee shall 
consist of fifteen members, appointed by the Secretary, who 
represent the interests of all segments of the grain producing, 
processing, storing, merchandising, consuming, and exporting 
industries, including grain inspection and weighing agencies 
and scientists with expertise in research related to the 
policies established in section 2 of this Act. Members of the 
advisory committee shall be appointed to three-year terms, 
except that of the initial fifteen members of the advisory 
committee first appointed following the enactment of this 
section, five shall be appointed for terms of one year and five 
shall be appointed for terms of two years. No member of the 
advisory committee may serve [successive terms] successively 
for more than 2 terms.

           *       *       *       *       *       *       *

    (e) The authority provided to the Secretary for the 
establishment and maintenance of an advisory committee under 
this section shall expire on September 30, [2020] 2025.

                                  [all]