[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]