S2479-118

1. Short title This Act may be cited as the Converting Our Waste Sustainably (COWS) Act of 2023.

2. Alternative Manure Management Program Chapter 5 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839bb et seq.) is amended by adding at the end the following: In this section: The term alternative manure management program means the program established under subsection (b). The term covered management measure means a dairy or livestock operation method that is used by an eligible producer to reduce baseline methane emissions and, where applicable, improve carbon sequestration on the operation of that eligible producer, including the measures described in subparagraphs (A) through (D) of subsection (f)(2). The term eligible producer means a dairy or livestock producer— whose baseline manure management practices prior to enrollment in the alternative manure management program include the anaerobic decomposition of volatile solids stored in a lagoon or other predominantly liquid anaerobic environment; and in the case of a dairy or livestock producer whose baseline manure management practices prior to enrollment in the alternative manure management program include an anaerobic system that captures methane emissions, who can replace or complement that anaerobic system with a covered management measure. The term pasture-based management means a dairy or livestock production system— that eliminates or reduces the quantity of manure stored in anaerobic conditions; and in which the livestock spend all or a substantial portion of time grazing on fields in which some or all of the manure is deposited and left in the field to decompose aerobically. The term solid separation system means a system that is designed to separate liquid components of manure from mineral and organic solid components of that manure. The Secretary shall establish an alternative manure management program to award contracts to eligible producers to support carbon sequestration and greenhouse gas emissions reductions by implementing covered management measures. To be eligible to participate in the alternative manure management program, an eligible producer shall submit to the Secretary a contract offer that details any covered management measure to be used on the operation of the eligible producer. The Secretary shall establish procedures under which— a group of producers may submit a joint contract offer for a shared composting facility; and the Secretary allocates payments to each eligible producer associated with that joint contract. The Secretary shall develop criteria for evaluating and ranking contract offers to prioritize contract offers that will maximize— carbon sequestration; greenhouse gas emissions reductions; and the overall environmental and public health benefits. In awarding contracts under this section, the Secretary, using the criteria developed under paragraph (1), shall give priority to contract offers that address air quality, water quality, or other public health concerns associated with dairy and livestock operations located near low-income or underserved communities. The Secretary may group and evaluate contract offers relative to other contract offers for similar farming operations. In awarding contracts under this section, the Secretary shall ensure geographical diversity. A contract awarded under this section shall have a term that does not exceed 3 years. Each eligible producer requesting funding under the alternative manure management program shall implement at least one of the following: With respect to pasture-based management— adopting pasture-based management; converting a non-pasture dairy or livestock operation to pasture-based management; increasing the amount of time livestock spend at pasture at an existing pasture operation; or improving pasture-based management, including transitioning to management-intensive rotational grazing (as defined in section 1240L(d)(1)). Adopting alternative manure treatment and storage practices, including— the installation of a compost-bedded pack barn that composts manure; the installation of a slatted floor pit storage manure collection that is cleaned out at least once a month; or other similar practices, as determined by the Secretary. Adopting a solid separation system; installing a new solid separation system that has a significantly higher separation efficiency than any existing solid separation system; or developing or retrofitting a manure management system that primarily avoids wet handling infrastructure; and in conjunction with one or more of the following management measures: Open solar drying or composting of manure onsite. Solar drying in an enclosed environment. Forced evaporation with natural-gas fueled dryers. Storage of manure in unconfined piles or stacks. Composting in an enclosed vessel, with forced aeration and continuous mixing. Composting in piles with forced aeration without mixing. Composting in intensive windrows with regular turning for mixing and aeration. Composting in passive windrows with infrequent turning for mixing and aeration. Other similar management measures, as determined by the Secretary. Adopting scrape technologies, including vacuum technologies, in conjunction with one of the management measures listed in subclauses (I) through (IX) of subparagraph (C)(ii). To receive payments under the alternative manure management program, an eligible producer shall— implement one or more covered management measures; supply information as required by the Secretary to determine compliance with the requirements of the alternative manure management program; and comply with such additional provisions as the Secretary determines are necessary to carry out the alternative manure management program. During the period of fiscal years 2024 through 2029, the Secretary shall provide payments to eligible producers that enter into contracts with the Secretary under the alternative manure management program. Payments provided to an eligible producer under this section may be used to implement one or more covered management measures. The Secretary may provide a payment to an eligible producer under the alternative manure management program for an amount that is up to 100 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, and training related to implementing a covered management measure. A person or legal entity (including a joint venture and a general partnership) may not receive, directly or indirectly, payments under the alternative manure management program that exceed $825,000 during any 5-year period. The Secretary shall provide at least 50 percent of the amount of total payments to an eligible producer in advance for all costs related to— purchasing or contracting materials and equipment; or any technical assistance provided by the Secretary. The Secretary may modify or terminate a contract entered into with an eligible producer under the alternative manure management program if— that eligible producer agrees to that modification or termination; and the Secretary determines that the modification or termination is in the public interest. The Secretary may terminate a contract under the alternative manure management program if the Secretary determines that an eligible producer violated that contract. The Secretary shall— determine and publish factors for estimating the carbon sequestrations and greenhouse gas emissions reductions for each covered management measure, including the management measures listed in subclauses (I) through (IX) of subsection (f)(2)(C)(ii); assist an eligible producer in achieving the carbon sequestration, greenhouse gas emissions reduction, and other environmental and public health goals of the alternative manure management program by— providing payments for developing and implementing one or more covered management measures, as appropriate; and providing that eligible producer with information, technical assistance, and training to aid in implementation of the covered management measures; and review the adequacy of existing conservation practice standards for supporting the covered management measures and, if necessary— revise existing conservation practice standards; and develop new conservation practice standards. In providing technical assistance under the alternative manure management program, the Secretary shall apply sections 1241(c) and 1242, except that the Secretary shall— apportion not more than 15 percent of the total funding available for the alternative manure management program for the provision of technical assistance; and enter into cooperative agreements with third-party providers with relevant expertise in the covered management measures to ensure adequate technical services are available to alternative manure management program applicants. The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out the alternative manure management program (including the provision of technical assistance described in subsection (j)) using $1,500,000,000 for the period of fiscal years 2024 through 2028. The Secretary shall use a majority of the funds made available by paragraph (1) for contract offers from small and mid-sized dairy and livestock operations, including— beginning farmers or ranchers; limited resource farmers and ranchers; and socially disadvantaged farmers and ranchers. 1240S.Alternative Manure Management Program(a)DefinitionsIn this section:(1)Alternative manure management programThe term alternative manure management program means the program established under subsection (b). (2)Covered management measureThe term covered management measure means a dairy or livestock operation method that is used by an eligible producer to reduce baseline methane emissions and, where applicable, improve carbon sequestration on the operation of that eligible producer, including the measures described in subparagraphs (A) through (D) of subsection (f)(2).(3)Eligible producerThe term eligible producer means a dairy or livestock producer—(A)whose baseline manure management practices prior to enrollment in the alternative manure management program include the anaerobic decomposition of volatile solids stored in a lagoon or other predominantly liquid anaerobic environment; and(B)in the case of a dairy or livestock producer whose baseline manure management practices prior to enrollment in the alternative manure management program include an anaerobic system that captures methane emissions, who can replace or complement that anaerobic system with a covered management measure.(4)Pasture-based managementThe term pasture-based management means a dairy or livestock production system—(A)that eliminates or reduces the quantity of manure stored in anaerobic conditions; and(B)in which the livestock spend all or a substantial portion of time grazing on fields in which some or all of the manure is deposited and left in the field to decompose aerobically.(5)Solid separation systemThe term solid separation system means a system that is designed to separate liquid components of manure from mineral and organic solid components of that manure.(b)EstablishmentThe Secretary shall establish an alternative manure management program to award contracts to eligible producers to support carbon sequestration and greenhouse gas emissions reductions by implementing covered management measures.(c)Submission of individual contract offersTo be eligible to participate in the alternative manure management program, an eligible producer shall submit to the Secretary a contract offer that details any covered management measure to be used on the operation of the eligible producer.(d)Cluster contract offersThe Secretary shall establish procedures under which—(1)a group of producers may submit a joint contract offer for a shared composting facility; and(2)the Secretary allocates payments to each eligible producer associated with that joint contract.(e)Duties of the Secretary(1)Evaluation criteriaThe Secretary shall develop criteria for evaluating and ranking contract offers to prioritize contract offers that will maximize—(A)carbon sequestration;(B)greenhouse gas emissions reductions; and(C)the overall environmental and public health benefits.(2)PriorityIn awarding contracts under this section, the Secretary, using the criteria developed under paragraph (1), shall give priority to contract offers that address air quality, water quality, or other public health concerns associated with dairy and livestock operations located near low-income or underserved communities.(3)Grouping of contract offersThe Secretary may group and evaluate contract offers relative to other contract offers for similar farming operations.(4)Geographical diversityIn awarding contracts under this section, the Secretary shall ensure geographical diversity.(f)Contract provisions(1)TermA contract awarded under this section shall have a term that does not exceed 3 years.(2)Covered management measuresEach eligible producer requesting funding under the alternative manure management program shall implement at least one of the following: (A)With respect to pasture-based management—(i)adopting pasture-based management;(ii)converting a non-pasture dairy or livestock operation to pasture-based management;(iii)increasing the amount of time livestock spend at pasture at an existing pasture operation; or(iv)improving pasture-based management, including transitioning to management-intensive rotational grazing (as defined in section 1240L(d)(1)).(B)Adopting alternative manure treatment and storage practices, including—(i)the installation of a compost-bedded pack barn that composts manure;(ii)the installation of a slatted floor pit storage manure collection that is cleaned out at least once a month; or(iii)other similar practices, as determined by the Secretary.(C)(i)(I)Adopting a solid separation system; (II)installing a new solid separation system that has a significantly higher separation efficiency than any existing solid separation system; or(III)developing or retrofitting a manure management system that primarily avoids wet handling infrastructure; and(ii)in conjunction with one or more of the following management measures:(I)Open solar drying or composting of manure onsite.(II)Solar drying in an enclosed environment.(III)Forced evaporation with natural-gas fueled dryers.(IV)Storage of manure in unconfined piles or stacks.(V)Composting in an enclosed vessel, with forced aeration and continuous mixing.(VI)Composting in piles with forced aeration without mixing.(VII)Composting in intensive windrows with regular turning for mixing and aeration.(VIII)Composting in passive windrows with infrequent turning for mixing and aeration.(IX)Other similar management measures, as determined by the Secretary.(D)Adopting scrape technologies, including vacuum technologies, in conjunction with one of the management measures listed in subclauses (I) through (IX) of subparagraph (C)(ii).(3)Duties of eligible producers under contractTo receive payments under the alternative manure management program, an eligible producer shall—(A)implement one or more covered management measures;(B)supply information as required by the Secretary to determine compliance with the requirements of the alternative manure management program; and(C)comply with such additional provisions as the Secretary determines are necessary to carry out the alternative manure management program.(g)Payments to eligible producers(1)In generalDuring the period of fiscal years 2024 through 2029, the Secretary shall provide payments to eligible producers that enter into contracts with the Secretary under the alternative manure management program.(2)Availability of paymentsPayments provided to an eligible producer under this section may be used to implement one or more covered management measures.(3)Payment amountsThe Secretary may provide a payment to an eligible producer under the alternative manure management program for an amount that is up to 100 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, and training related to implementing a covered management measure.(4)Limitation on paymentsA person or legal entity (including a joint venture and a general partnership) may not receive, directly or indirectly, payments under the alternative manure management program that exceed $825,000 during any 5-year period.(5)Advanced paymentsThe Secretary shall provide at least 50 percent of the amount of total payments to an eligible producer in advance for all costs related to—(A)purchasing or contracting materials and equipment; or(B)any technical assistance provided by the Secretary.(h)Modification or termination of contracts(1)Voluntary modification or terminationThe Secretary may modify or terminate a contract entered into with an eligible producer under the alternative manure management program if—(A)that eligible producer agrees to that modification or termination; and(B)the Secretary determines that the modification or termination is in the public interest.(2)Involuntary terminationThe Secretary may terminate a contract under the alternative manure management program if the Secretary determines that an eligible producer violated that contract.(i)Duties of the SecretaryThe Secretary shall—(1)determine and publish factors for estimating the carbon sequestrations and greenhouse gas emissions reductions for each covered management measure, including the management measures listed in subclauses (I) through (IX) of subsection (f)(2)(C)(ii);(2)assist an eligible producer in achieving the carbon sequestration, greenhouse gas emissions reduction, and other environmental and public health goals of the alternative manure management program by—(A)providing payments for developing and implementing one or more covered management measures, as appropriate; and(B)providing that eligible producer with information, technical assistance, and training to aid in implementation of the covered management measures; and(3)review the adequacy of existing conservation practice standards for supporting the covered management measures and, if necessary—(A)revise existing conservation practice standards; and(B)develop new conservation practice standards.(j)Technical assistanceIn providing technical assistance under the alternative manure management program, the Secretary shall apply sections 1241(c) and 1242, except that the Secretary shall—(1)apportion not more than 15 percent of the total funding available for the alternative manure management program for the provision of technical assistance; and(2)enter into cooperative agreements with third-party providers with relevant expertise in the covered management measures to ensure adequate technical services are available to alternative manure management program applicants.(k)Funding(1)In generalThe Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out the alternative manure management program (including the provision of technical assistance described in subsection (j)) using $1,500,000,000 for the period of fiscal years 2024 through 2028.(2)Reservations of fundsThe Secretary shall use a majority of the funds made available by paragraph (1) for contract offers from small and mid-sized dairy and livestock operations, including—(A)beginning farmers or ranchers;(B)limited resource farmers and ranchers; and(C)socially disadvantaged farmers and ranchers..

3. Erodible land and wetland conservation and reserve program Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended— by redesignating paragraphs (3) through (27) as paragraphs (4) through (28), respectively; and by inserting after paragraph (2) the following: The term composting practice means— an activity (including an activity that does not require the use of a composting facility) to produce compost from organic waste that is— generated on a farm; or brought to a farm from the nearby community; and the use and active management of compost on a farm to improve water retention and soil health, subject to the condition that such use shall be in compliance with applicable Federal, State, and local laws. (3)Composting practiceThe term composting practice means—(A)an activity (including an activity that does not require the use of a composting facility) to produce compost from organic waste that is—(i)generated on a farm; or(ii)brought to a farm from the nearby community; and(B)the use and active management of compost on a farm to improve water retention and soil health, subject to the condition that such use shall be in compliance with applicable Federal, State, and local laws..

4. Environmental Quality Incentives Program Section 1240A(6)(A)(ii) of the Food Security Act of 1985 (16 U.S.C. 3839aa–1(6)(A)(ii)) is amended by inserting and composting practices before the semicolon.

5. Conservation stewardship program Section 1240I(2)(B)(i) of the Food Security Act of 1985 (16 U.S.C. 3839aa–21(2)(B)(i)) is amended by inserting and composting practices after drainage management systems.

6. Delivery of technical assistance Section 1242(h) of the Food Security Act of 1985 (16 U.S.C. 3842(h)) is amended by adding at the end the following: Not later than one year after the date of enactment of this paragraph, the Secretary shall— conduct a review of the composting facilities practice standard and the soil carbon amendment practice standard to determine their adequacy in advancing alternative manure management and on-farm composting generation and utilization; and develop and implement a new conservation practice standard for the on-farm production of compost. (5)Development of composting practice standardNot later than one year after the date of enactment of this paragraph, the Secretary shall—(A)conduct a review of the composting facilities practice standard and the soil carbon amendment practice standard to determine their adequacy in advancing alternative manure management and on-farm composting generation and utilization; and(B)develop and implement a new conservation practice standard for the on-farm production of compost..