SWINE Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Swine Waste Infrastructure and 
Natural Environment Act'' or the ``SWINE Act''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress finds the following:
            (1) Animal agricultural production represents an important 
        part of our Nation's economy and a critical source of income 
        for hundreds of thousands of American families.
            (2) Animal agricultural production facilities, including 
        combined animal feeding operations (CAFOs), produce millions of 
        tons of animal waste annually, the management and disposal of 
        which represents an integral part of the animal agricultural 
        production process.
            (3) Traditional methods of animal waste disposal, 
        especially those associated with ``lagoon and spray-field'' 
        systems, have been shown by federally funded research to result 
        in negative environmental and social externalities, including 
        contamination of soil, groundwater, and surface water with 
        nitrogen, contamination of air with ammonia, and other threats 
        to animal and human health.
            (4) During severe weather events, the risk of negative 
        externalities can become particularly acute, as ``lagoons'' 
        have the potential to overflow or breach their walls and flood 
        surrounding communities and waterways with unprocessed animal 
        waste.
            (5) In the Southeastern United States, combined animal 
        feeding operations dedicated to the production of swine are 
        disproportionately located in low-income communities.
            (6) In recent decades, collaborative research and 
        development efforts by industry, academia, and the public 
        sector have produced numerous superior waste management and 
        disposal technologies that have been shown to significantly 
        reduce the negative environmental and social externalities 
        associated with ``lagoon and spray-field'' systems and, in some 
        cases, produce value-added byproducts that can generate new 
        revenue for producers.
            (7) The widespread adoption of superior waste management 
        and disposal technologies has been inhibited by various social 
        and economic factors, including the cost to producers of 
        installing and operating such systems.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the conversion of existing ``lagoon and spray-field'' 
        systems into superior waste management and disposal systems 
        would produce significant benefits to the environment and 
        public health, including more sustainable agricultural 
        operations, improved animal health, and improved resilience 
        against severe weather events, and should thus be a goal of 
        national policy; and
            (2) the approval of new animal agricultural production 
        facilities by Federal or State authorities should be made 
        contingent on the adoption of superior waste management and 
        disposal systems, as has already occurred in some States.

SEC. 3. ENVIRONMENTALLY SUSTAINABLE SWINE WASTE DISPOSAL TECHNOLOGIES.

    (a) In General.--Not later than 6 months after the date of 
enactment of this Act, the Secretary of Agriculture shall establish a 
program for certifying environmentally sustainable swine waste disposal 
technologies in accordance with this section.
    (b) Standards.--
            (1) Requirements.--In establishing the program under this 
        section, the Secretary shall establish standards requiring that 
        a swine waste disposal technology, in order to be certified 
        under this section--
                    (A) eliminate animal discharge into surface waters 
                and groundwater through direct discharge, seepage, or 
                runoff;
                    (B) substantially eliminate atmospheric emissions 
                of ammonia from swine waste;
                    (C) substantially eliminate the emission of odor 
                from swine waste that is detectable beyond the 
                boundaries of the parcel or tract of land on which the 
                swine farm is located;
                    (D) substantially eliminate the release of disease-
                transmitting vectors and airborne pathogens from swine 
                waste;
                    (E) substantially eliminate nutrient and heavy 
                metal contamination of soil and groundwater from swine 
                waste; and
                    (F) be cost-effective.
            (2) Cost-effectiveness.--In determining whether a 
        technology is cost-effective under this section, the 
        Secretary--
                    (A) shall consider the full range of subsidies 
                available under this Act and other Federal programs, 
                and available State and private-sector support;
                    (B) in considering the costs of a technology, may 
                include costs associated with adoption of the 
                technology and the estimated operation and maintenance 
                costs of the technology through the life of technology; 
                and
                    (C) may not require parity with the cost of 
                existing swine waste disposal technologies and systems.
            (3) Consultation.--In establishing standards under this 
        paragraph, the Secretary shall consult with the Administrator 
        of the Environmental Protection Agency, the relevant task force 
        established under section 1672A of the Food, Agriculture, 
        Conservation, and Trade Act of 1990, and States that have a 
        history of widespread use of lagoon and spray technology on 
        swine farms.
    (c) Certification.--
            (1) In general.--The Secretary, in consultation with the 
        Administrator of the Environmental Protection Agency and the 
        relevant task force established under section 1672A of the 
        Food, Agriculture, Conservation, and Trade Act of 1990, shall 
        certify a swine waste disposal technology as being 
        environmentally sustainable if it meets the standards 
        established under subsection (b).
            (2) Eligible technologies.--Swine waste disposal 
        technologies that are eligible for certification under this 
        subsection include stand-alone waste disposal technology 
        platforms and multi-part systems, which may incorporate in-
        ground technology, that meet or exceed, in combination, the 
        standards established under this section, as determined by the 
        Secretary.

SEC. 4. STATE PERMITTING AND CERTIFICATION REQUIREMENTS.

    Beginning on the effective date of the standards established under 
section 2, no State may issue a permit pursuant to any Federal law to a 
swine farm that is a concentrated animal feeding operation (as defined 
in section 122.23 of title 40, Code of Federal Regulations) unless the 
swine farm disposes of swine waste only through use of swine waste 
disposal technology certified under section 3(c).

SEC. 5. SWINE WASTE MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

    (a) In General.--Title XVI of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 5801 et seq.) is amended by inserting 
after section 1672 (7 U.S.C. 5925) the following new section:

``SEC. 1672A. SWINE WASTE MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

    ``(a) Competitive Research and Extension Grants Authorized.--The 
Secretary shall make competitive grants to support research and 
extension activities specified in subsection (c). The Secretary shall 
make the grants in consultation with the National Agricultural 
Research, Extension, Education, and Economics Advisory Board and the 
task force appointed under subsection (b)(2)(A). 
    ``(b) Administration.--
            ``(1) In general.--Paragraphs (4) and (7) of subsection (b) 
        of the Competitive, Special, and Facilities Research Grant Act 
        (7 U.S.C. 450i) shall apply with respect to the making of 
        grants under this section.
            ``(2) Use of task forces.--
                    ``(A) In general.--To facilitate the making of 
                research and extension grants under this section for 
                the purpose specified in subsection (c), the Secretary 
                shall appoint a task force to make recommendations to 
                the Secretary.
                    ``(B) Composition.--A task force established under 
                subparagraph (A) shall be composed of representatives 
                of each of the following entities:
                            ``(i) Colleges and universities.
                            ``(ii) The Department of Agriculture.
                            ``(iii) The Environmental Protection 
                        Agency.
                            ``(iv) The swine production industry.
                            ``(v) A nonprofit organization focused on 
                        the environmental effects of swine farm 
                        operations.
                            ``(vi) A nonprofit organization focused on 
                        the social effects of swine farm operations.
    ``(c) Environmentally Superior Swine Waste Management Technologies 
Research and Extension.--Research and extension grants may be made 
under this section, with respect to swine waste management technologies 
certified under section 3(c) of the SWINE Act, for the purpose of 
identifying, evaluating, and demonstrating environmentally superior 
waste management technologies for the processing of swine waste.
    ``(d) Priority.--Following the completion of a peer review process 
for grant proposals received under this section, the Secretary shall 
give priority to those grant proposals that involve one or more of the 
following:
            ``(1) The cooperation of multiple entities.
            ``(2) States or regions with a high concentration of spray 
        field and lagoon operations.
            ``(3) A reduction in water usage.
            ``(4) The reduction of ammonia and odor emissions, disease-
        transmitting vectors, airborne pathogens, and nutrient and 
        heavy metal contamination that exceed the standards established 
        for swine waste management technologies certified under section 
        3(c) of the SWINE Act with respect to such reduction.
            ``(5) Significant improvement of the health of swine.
            ``(6) The generation of electricity.
            ``(7) Significant increases in nutrient recovery and 
        fertilizer production.
            ``(8) Alternative uses of swine waste and the generation of 
        renewable energy using such waste, including innovative methods 
        and technologies to allow agricultural operators to make use of 
        swine waste, such as use as fertilizer, methane digestion, 
        composting, and other useful byproducts.
            ``(9) Maximizing nutrition management for swine while 
        limiting the risks associated with swine feeding practices 
        (such as mineral bypass).
            ``(10) Improvements to water quality and aquatic 
        ecosystems, including with respect to mitigating the impact of 
        microorganisms of the genus Pfiesteria and other microorganisms 
        that are a threat to human or animal health on aquatic food 
        webs, especially commercially important aquatic species and 
        their habitats.
            ``(11) The advancement of efforts of the Department of 
        Agriculture to reduce and eliminate antibiotics in livestock.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2018 through 2028.''.
    (b) Confirming Availability of Pork Promotion Funding.--Section 
1620(c)(3)(B)(i) of the Pork Promotion, Research, and Consumer 
Information Act of 1985 (7 U.S.C. 4809(c)(3)(B)(i)) is amended by 
inserting before the semicolon the following: ``, including grants 
awarded under section 1672A of the Food, Agriculture, Conservation, and 
Trade Act of 1990''.

SEC. 6. ELIGIBILITY OF ENVIRONMENTALLY SUSTAINABLE SWINE WASTE DISPOSAL 
              TECHNOLOGIES UNDER EQIP.

    For purposes of section 1240A(4) of the Food Security Act of 1985 
(16 U.S.C. 3839aa-1(4)), the installation and maintenance on a swine 
farm of a swine waste disposal technology certified under section 3(c) 
of this Act shall be considered an improvement to eligible land of a 
producer that is consistent with the purposes of the environmental 
quality incentives program established under chapter 4 of subtitle D of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa-1 et 
seq.).

SEC. 7. SWINE WASTE DISPOSAL CREDITS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new sections:

``SECTION 45S. SWINE WASTE DISPOSAL TECHNOLOGY INSTALLATION CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 38, the swine 
waste disposal technology installation credit determined under this 
section with respect to a taxpayer for any taxable year is an amount 
equal to the sum of--
            ``(1) 4 percent of the qualified installation costs paid or 
        incurred by the taxpayer during the taxable year, and
            ``(2) 4 percent of such costs paid or incurred by the 
        taxpayer during any of the prior four taxable years.
    ``(b) Qualified Installation Cost.--For purposes of this section, 
the term `qualified installation cost' means, with respect to a 
taxpayer, amounts which are paid or incurred in the ordinary course of 
the taxpayer's trade or business to install certified swine waste 
disposal technology.
    ``(c) Certified Swine Waste Disposal Technology.--The term 
`certified swine waste disposal technology' means environmentally 
sustainable technology certified under section 3(c) of the Swine Waste 
Infrastructure and Natural Environment Act.

``SEC. 45T. SWINE WASTE DISPOSAL CREDIT.

    ``(a) In General.--For purposes of section 38, the swine waste 
disposal credit determined under this section with respect to taxpayer 
for any taxable year is an amount equal to $100 for each 1,000 pounds 
of steady state live weight of swine waste disposed of in the ordinary 
course of the taxpayer's trade or business using certified swine waste 
disposal technology (as such term is defined in section 45S) by the 
taxpayer during the taxable year.
    ``(b) Maximum Credit.--
            ``(1) In general.--The aggregate credit determined under 
        subsection (a) for any taxable year with respect to any 
        taxpayer shall not exceed the qualified costs of the taxpayer 
        for such taxable year.
            ``(2) Qualified costs defined.--For purposes of this 
        section, the term `qualified costs' means costs paid or 
        incurred by a taxpayer to maintain or operate certified swine 
        waste disposal technology.''.
    (b) Treatment as General Business Credit.--Subsection (b) of 
section 38 of such Code is amended by striking ``plus'' at the end of 
paragraph (35), by striking the period at the end of paragraph (36) and 
inserting a comma, and by adding at the end the following new 
paragraphs:
            ``(37) the swine waste disposal technology installation 
        credit determined under section 45S(a), plus
            ``(38) the swine waste disposal credit determined under 
        section 45T(a).''.
    (c) Deduction for Unused Credit.--Subsection (c) of section 196 of 
such Code is amended by striking ``and'' at the end of paragraph (13), 
by striking the period at the end of paragraph (14) and inserting a 
comma, and by adding at the end the following new paragraphs:
            ``(15) the swine waste disposal technology installation 
        credit determined under section 45S(a), and
            ``(16) the swine waste disposal credit determined under 
        section 45T(a).''.
    (d) Deduction Against AMT.--Subparagraph (B) of section 38(c)(4) of 
such Code is amended by striking ``and'' at the end of clause (viii), 
by striking the period at the end of clause (ix) and inserting a comma, 
and by adding at the end the following new clauses:
                            ``(x) the credit determined under section 
                        45S, and
                            ``(xi) the credit determined under section 
                        45T.''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the such Code is amended by 
adding at the end the following new items:

``Sec. 45S. Swine waste disposal technology installation credit.
``Sec. 45T. Swine waste disposal credit.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred and swine waste disposed of after 
December 31, 2017.

SEC. 8. SWINE FARM DEFINED.

    In this Act, the term ``swine farm'' means a tract of land devoted 
to raising 250 or more animals of the porcine species.

Summary: Swine Waste Infrastructure and Natural Environment Act or the SWINE Act This bill establishes a program to certify environmentally sustainable swine waste disposal technologies and authorizes related tax credits and grants. The Department of Agriculture (USDA) must certify technologies that: eliminate animal discharge into surface waters and groundwater through direct discharge, seepage, or runoff, substantially eliminate atmospheric emissions of ammonia from swine waste. Substantially eliminate the emission of odor from swine waste that is detectable beyond the boundaries of the parcel or tract of land on which the swine farm is located. Substantially eliminate the release of disease-transmitting vectors and airborne pathogens from swine waste. Substantially eliminate nutrient and heavy metal contamination of soil and groundwater from swine waste. And are cost-effective. States may not issue permits, pursuant to any federal law, to a swine farm that is a concentrated animal feeding operation unless the farm disposes of swine waste using a certified technology. The bill amends several agricultural laws to: require USDA to make competitive grants for activities to identify, evaluate, and demonstrate environmentally superior swine waste management technologies. Permit the Pork Promotion Board to use its funding for activities related to the grants. And make the installation and maintenance of a certified technology on a swine farm eligible for the Environmental Quality Incentives Program. The bill amends the Internal Revenue Code to allow tax credits for: (1) the installation of a certified swine waste disposal technology, and (2) the disposal of swine waste using certified technology.