I 

112TH CONGRESS 

2D SESSION H. R. 4351 

To provide assistance and opportunity for the creation and support of sustainable agriculture activities in America’s cities and to improve access to 

nutrition in America’s cities. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 16, 2012 

Ms. FUDGE (for herself, Ms. NORTON, Mr. DAVIS of Illinois, Mr. CLARKE of 

Michigan, Mr. RANGEL, Ms. KAPTUR, Mr. BACA, Ms. SCHAKOWSKY, Mr. 

KUCINICH, Mr. CLAY, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. 

RUSH, Mr. THOMPSON of Mississippi, Ms. JACKSON LEE of Texas, Mr. 

HOLT, Mr. CLEAVER, Ms. RICHARDSON, Mr. ELLISON, Ms. SEWELL, Mr. 

CARNAHAN, Mr. QUIGLEY, Ms. PINGREE of Maine, and Mr. LEWIS of 

Georgia) introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committee on Education 

and the Workforce, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To provide assistance and opportunity for the creation and 

support of sustainable agriculture activities in America’s 

cities and to improve access to nutrition in America’s 

cities. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Let’s Grow Act of 2012’’. 

4 (b) TABLE OF CONTENTS.—The table of contents of 

5 this Act is the following: 

Sec. 1. Short title; table of contents. 

TITLE I—IMPROVING ACCESS TO FRESH AND NUTRITIOUS FOOD 

Sec. 101. Healthy corner store initiative. 

Sec. 102. Virtual farmers’ markets. 

Sec. 103. Local food insecurity assessments: assessing the unique nutritional 

needs of local communities. 

Sec. 104. Extension of pilot projects to evaluate health and nutrition promotion 

in the supplemental nutrition assistance program. 

Sec. 105. Fresh incentive program. 

Sec. 106. EBT farmers market accessability program. 

Sec. 107. Farm-to-preschool program. 

Sec. 108. Expanding and Improving the Affordability and Nutritional Integrity 

of the USDA Fresh Fruit and Vegetable Program. 

TITLE II—CREATION OF THE HEALTHY FOOD FINANCING 

INITIATIVE 

Sec. 201. Purpose and definitions. 

Sec. 202. Establishment of Healthy Food Financing Initiative and eligible 

projects. 

Sec. 203. Duties of Secretary. 

Sec. 204. National fund manager. 

Sec. 205. Allocation and use of funds. 

Sec. 206. Partnerships. 

Sec. 207. Evaluation and monitoring. 

Sec. 208. Administrative provisions. 

Sec. 209. Authorization of appropriations. 

TITLE III—DEVELOPMENT OF SUSTAINABLE URBAN 

AGRICULTURE 

Sec. 301. Community gardening grant program. 

Sec. 302. Grants for conversion of abandoned and foreclosed property to urban 

agricultural uses. 

Sec. 303. Expansion of HarvestCorps program. 

Sec. 304. Acquisition of publically owned land and conversion to urban farms 

and community gardens. 

Sec. 305. Urban agricultural workforce training pilot program. 

Sec. 306. Urban agriculture development grants program. 

Sec. 307. Clean and safe drinking water for urban areas and waterways. 

Sec. 308. Extension of assistance to socially disadvantaged urban farmers and 

ranchers. 

Sec. 309. Urban entrepreneur and microenterprise assistance program. 

Sec. 310. Local farm business and market garden competitive loan program. 


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TITLE IV—ERADICATING HUNGER 

Sec. 401. Weekends and holidays without hunger. 

Sec. 402. Expansion and modernization of the commodity supplemental food 

program. 

Sec. 403. Expansion and modernization of the emergency food assistance program. 

Sec. 404. Food bank equipment and technology program. 

TITLE V—GO GREEN 

Sec. 501. Green and Sustainable Schools, Museums, and Libraries Grant Program. 

1 TITLE I—IMPROVING ACCESS TO 

2 FRESH AND NUTRITIOUS FOOD 

3 SEC. 101. HEALTHY CORNER STORE INITIATIVE. 

4 (a) IN GENERAL.—The Secretary of Agriculture shall 

5 carry out a program, to be known as the Green and 

6 Healthy Corner Store Initiative, of awarding grants to 

7 units of general local government, nonprofit organizations, 

8 and tribal governments to assist qualified convenience 

9 stores to expand and sustain their offering of fruits and 

10 vegetables. 

11 (b) PRIORITY.—In awarding grants under this sec12 tion, the Secretary shall give priority to applicants pro13 posing to provide assistance to qualified convenience stores 

14 in low-income communities. 

15 (c) ASSISTANCE.—Assistance provided to a qualified 

16 convenience store pursuant to this section may include the 

17 following: 

18 (1) Seed money for the purchase of fruits and 

19 vegetables and for equipment needed to sell fruits 


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1 and vegetables, such as but not limited to refrig2 erators. 

3 (2) Seed money for converting to energy-saving 

4 equipment, such as but not limited to energy-effi5 cient lighting and refrigerators and a ductless 

6 HVAC system, to minimize the additional energy 

7 costs associated with the refrigeration needed to 

8 stock fruits and vegetables. 

9 (3) Educational tools and information on the 

10 importance of fresh fruits and vegetables. 

11 (4) Simple recipes to assist customers in 

12 healthy food preparation. 

13 (d) REQUIREMENTS FOR CONVENIENCE STORES.— 

14 As a condition on receipt of funds under this section, a 

15 grantee shall agree to ensure that any qualified conven16 ience store receiving assistance through the grant will— 

17 (1) maintain its expanded offering of fruits and 

18 vegetables for a minimum time to be determined by 

19 the Secretary; 

20 (2) limit the number of its advertisements for 

21 alcoholic beverages and cigarettes and offer at least 

22 an equal amount of advertising for fruits and vege23 tables; 

24 (3) place advertisements for fruits and vegeta25 bles prominently in the front of the store; 


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1 (4) advertise that the store is participating in 

2 the Green and Healthy Corner Store Initiative; and 

3 (5) work to partner with rural and urban farm4 ers markets to obtain fruits and vegetables for sale. 

5 (e) COOPERATION AMONG STORES TO DECREASE

6 PRICES.—The Secretary shall encourage grant recipients 

7 under this section to encourage qualified convenience 

8 stores receiving assistance through the grant to combine 

9 efforts with other convenience stores when ordering fruits 

10 and vegetables from distributors in an effort to decrease 

11 the price of such goods. 

12 (f) DEFINITIONS.—In this section: 

13 (1) The term ‘‘Bureau-funded school’’ has the 

14 meaning given to such term in section 1141 of the 

15 Education Amendments of 1978 (25 U.S.C. 2021). 

16 (2) The terms ‘‘elementary school’’, ‘‘local edu17 cational agency’’, and ‘‘secondary school’’ have the 

18 meanings given to such terms in section 9101 of the 

19 Elementary and Secondary Education Act of 1965 

20 (20 U.S.C. 7801). 

21 (3) The term ‘‘low-income communities’’ in22 cludes— 

23 (A) communities with a high percentage of 

24 children eligible for free and reduced priced 

25 lunches under the Richard B. Russell National 


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1 School Lunch Act (42 U.S.C. 1751 et seq.); 

2 and 

3 (B) any other communities determined by 

4 the Secretary to be low-income for purposes of 

5 this section. 

6 (4) The term ‘‘Secretary’’ means the Secretary 

7 of Agriculture. 

8 (5) The term ‘‘qualified convenience store’’ 

9 means a convenience store located within a quarter 

10 mile of an elementary school or a secondary school 

11 that is a public school or a Bureau-funded school. 

12 SEC. 102. VIRTUAL FARMERS’ MARKETS. 

13 (a) ESTABLISHMENT OF GRANT PROGRAM.—From 

14 the amounts appropriated to carry out this section, the 

15 Secretary of Agriculture shall award grants, on a competi16 tive basis, to eligible entities to enable such entities to 

17 carry out a program that provides access to farmers’ mar18 kets to communities that are food deserts. 

19 (b) USE OF FUNDS.—An eligible entity receiving a 

20 grant under this section shall use such funds for the fol21 lowing: 

22 (1) Purchasing virtual farmers market software 

23 (including computer kiosks and swipe card stations), 

24 or entering into a contract with an eligible organiza25 tion to develop and maintain the technology necVerDate Mar 15 2010 20:14 Apr 17, 2012 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4351.IH H4351

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1 essary, to carry out a virtual farmers market pro2 gram to enable individuals and organizations in com3 munities that are food deserts to order and purchase 

4 fruits and vegetables and other healthy food items 

5 using such technology. 

6 (2) Training staff to— 

7 (A) assist individuals and organizations in 

8 communities that are food deserts to order and 

9 purchase food products under the program de10 scribed in paragraph (1); and 

11 (B) purchase and order food products 

12 under the program for the eligible entity. 

13 (3) Packaging food products purchased under 

14 the program in manner that makes transportation of 

15 the products possible by foot. 

16 (4) Paying staff to manage the program, and 

17 package and assist in the distribution and delivery 

18 of food products purchased under the program. 

19 (5) Raising public awareness about the pro20 gram. 

21 (6) Developing simple food preparation strate22 gies and menus for customers of the program. 

23 (7) Coordinating with the Secretary of Agri24 culture to develop mechanisms to enable reimburse25 ment under the supplemental nutrition assistance 


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1 program established under the Food and Nutrition 

2 Act of 2008 (7 U.S.C. 2011 et seq.) for purchases 

3 made under the program. 

4 (8) Purchasing or rehabilitating buses, includ5 ing buses that were formerly used as school buses, 

6 that may be used to transport to the eligible enti7 ty— 

8 (A) the foods ordered and purchased under 

9 the program using the technology described in 

10 paragraph (1); or 

11 (B) other fruits and vegetables that meet 

12 the requirements of subsection (e) in order to 

13 provide additional opportunities for individuals 

14 and organizations in communities that are food 

15 deserts to purchase locally grown fruits and 

16 vegetables. 

17 (c) APPLICATION.—In order to receive a grant under 

18 this section, an eligible entity shall submit an application 

19 to the Secretary at such time, in such manner, and con20 taining such information as the Secretary may require. 

21 (d) GRANT AMOUNT.—A grant awarded under this 

22 section may not be greater than $10,000. 

23 (e) LIMITATIONS ON FOOD PURCHASED.—To the ex24 tent practicable, the majority of food purchased under a 

25 virtual farmers market program carried out by an eligible 


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1 entity under this section shall be from farmers located 

2 within a 50 mile radius of the site where the food is or3 dered and delivered under the program, except in the case 

4 where the eligible entity demonstrates to the Secretary 

5 that no such farmers exist or that the farmers are not 

6 able to provide a sufficient variety or amount of food for 

7 the purposes of the program. 

8 (f) REPORT.—Not later than 1 year after the first 

9 fiscal year for which funds are appropriated to carry out 

10 this section, the Secretary shall report to Congress on the 

11 progress made in carrying out programs funded by grants 

12 under this section, including— 

13 (1) the number of individuals served by such 

14 programs and the barriers and opportunities for ad15 ditional such programs; and 

16 (2) how such programs have increased access or 

17 encouraged permanent farmers markets to be estab18 lished near communities that are food deserts. 

19 (g) DEFINITIONS.—In this section— 

20 (1) BUREAU-FUNDED SCHOOL.—The term ‘‘bu21 reau-funded school’’ has the meaning given such 

22 term in section 1146 of the Education Amendments 

23 of 1978 (25 U.S.C. 2026). 


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1 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti2 ty’’ means an entity that predominantly serves com3 munities that are food deserts, including— 

4 (A) a local educational agency or bureau5 funded school; 

6 (B) a nonprofit, community-based organi7 zation or entity (including a park and recre8 ation department, recreation center, child care 

9 facility, or senior center); 

10 (C) a convenience store; or 

11 (D) other entity that the Secretaries deem 

12 to be an eligible entity. 

13 (3) ELIGIBLE ORGANIZATION.—The term ‘‘eligi14 ble organization’’ means an organization with exper15 tise in developing and maintaining a virtual farmers 

16 market. 

17 (4) LOCAL EDUCATIONAL AGENCY.—The term 

18 ‘‘local educational agency’’ has the meaning given 

19 such term in section 9101 of the Elementary and 

20 Secondary Education Act of 1965 (20 U.S.C. 7801). 

21 (5) FOOD DESERT.—The term ‘‘food desert’’ 

22 has the meaning given such term in section 7527(a) 

23 of the Food, Conservation, and Energy Act of 2008 

24 (Public Law 110–234). 


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1 (6) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Agriculture. 

3 (7) SWIPE CARD STATIONS.—The term ‘‘swipe 

4 card stations’’ shall include support for the use of 

5 electronic benefit transfer cards. 

6 (8) VIRTUAL FARMERS MARKET.—The term 

7 ‘‘virtual farmers market’’ means an online grocery 

8 store that enables individuals to purchase foods from 

9 local farms and distributors. 

10 SEC. 103. LOCAL FOOD INSECURITY ASSESSMENTS: ASSESS11 ING THE UNIQUE NUTRITIONAL NEEDS OF 

12 LOCAL COMMUNITIES. 

13 (a) IN GENERAL.—The Secretary of Health and 

14 Human Services shall establish a 3-year pilot program to 

15 award grants to local and tribal governments, on a com16 petitive basis, to allow such local and tribal governments, 

17 in partnership with the local community organizations 

18 under subsection (e), to— 

19 (1) conduct a food security assessment; and 

20 (2) make an inventory of the system in order to 

21 identify the strengths and gaps in such system. 

22 (b) DATA POINTS FOR ASSESSMENT.—For purposes 

23 of conducting an Assessment and making an inventory 

24 under a grant under subsection (a), with respect to the 

25 community served by a local or tribal government, such 


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1 government shall examine the following food security and 

2 food system issues in the community: 

3 (1) The prevalence of childhood obesity. 

4 (2) The availability of safe routes to school for 

5 children. 

6 (3) The quality of food served in school and 

7 child care settings. 

8 (4) The availability of supermarkets. 

9 (5) The cost and availability of fresh fruits and 

10 vegetables. 

11 (6) The concentration of convenience stores, 

12 and other food vendors that sell a disproportionate 

13 amount of foods that are not fresh fruits and vegeta14 bles. 

15 (7) The availability of products. 

16 (8) The concentration of fast food restaurants. 

17 (9) The availability of green space or recreation 

18 areas, and the extent to which such space or areas 

19 encourage physical activity by adults and children. 

20 (10) Any other issues determined to be relevant 

21 by the local or tribal government. 

22 (11) Any other issues determined to be relevant 

23 by the Secretary of Health and Human Services. 


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1 (c) NUMBER OF SITES.—The Secretary of Health 

2 and Human Services, in awarding grants under subsection 

3 (a), shall award grants to no more than— 

4 (1) 20 local governments; and 

5 (2) 5 tribal governments. 

6 (d) PRIORITY.—In awarding grants under subsection 

7 (a), the Secretary of Health and Human Services shall 

8 give priority to those local and tribal governments that 

9 serve communities with the highest concentrations of pov10 erty. 

11 (e) REQUIREMENT OF PARTNERSHIPS.—In order to 

12 qualify for a grant under subsection (a), a local or tribal 

13 government shall demonstrate, to the satisfaction of the 

14 Secretary of Health and Human Services, that the local 

15 or tribal government has entered into a partnership (for 

16 the purpose of conducting an assessment and making an 

17 inventory under subsection (a)) with at least one of the 

18 following local community organizations: 

19 (1) A nonprofit community-based organization 

20 or entity. 

21 (2) A developer or urban planning institution. 

22 (3) An accredited college or university. 


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1 SEC. 104. EXTENSION OF PILOT PROJECTS TO EVALUATE 

2 HEALTH AND NUTRITION PROMOTION IN THE 

3 SUPPLEMENTAL NUTRITION ASSISTANCE 

4 PROGRAM. 

5 Section 17(k)(5)(A) of the Food and Nutrition Act 

6 of 2008 (7 U.S.C. 2036(k)(5)(A)) is amended by striking 

7 ‘‘2012’’ and inserting ‘‘2017’’. 

8 SEC. 105. FRESH INCENTIVE PROGRAM. 

9 (a) ESTABLISHMENT OF PROGRAM.—The Secretary 

10 of Agriculture shall provide assistance, through competi11 tive matching grants and technical assistance, to eligible 

12 entities for a Fresh Incentive Program that— 

13 (1) improves access to local and regional nutri14 tious, affordable fruits and vegetables to low-income 

15 consumers participating in the supplemental nutri16 tion assistance program by providing a monetary in17 centive for the purchase of eligible foods through 

18 programs that link consumers with American farm19 ers through farmers markets, grocery stores, corner 

20 stores, mobile markets, Community Supported Agri21 culture (CSAs) and other food retailers, 

22 (2) is designed to— 

23 (A) improve the nutritional health of low24 income participants in USDA nutrition assist25 ance programs by encouraging the consumption 

26 of domestic fruits and vegetables, 


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1 (B) improve the food environments in food 

2 deserts by stimulating demand for domestic 

3 fruits and vegetables, 

4 (C) increase market opportunities for 

5 American specialty crop farmers, 

6 (D) develop a sustained connection be7 tween USDA nutrition assistance programs and 

8 USDA agriculture marketing and development 

9 programs, 

10 (E) increase local farm income, 

11 (F) reduce reliance on imported fresh 

12 fruits and vegetables, and 

13 (G) decrease healthcare costs resulting 

14 from diet-related health conditions including di15 abetes and obesity. 

16 (3) makes grants to eligible entities that in17 clude— 

18 (A) nonprofit organizations that have a 

19 demonstrated track record designing and imple20 menting successful nutrition incentive programs 

21 connecting low-income consumers and family 

22 farmers, 

23 (B) State and local agencies including In24 dian Tribal Organizations, agricultural proVerDate Mar 15 2010 20:14 Apr 17, 2012 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H4351.IH H4351

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1 ducer groups, and community health organiza2 tions, and 

3 (C) other entities that the Secretary deter4 mines offer a unique ability to provide services 

5 for the Fresh Incentive Program, 

6 (4) provides to eligible foods including— 

7 (A) fresh, locally or regionally produced 

8 fruit and vegetables that are fresh produce 

9 raised, produced, and distributed in— 

10 (i) the locality or region in which the 

11 final product is marketed, so that the total 

12 distance that the product is transported is 

13 less than 400 miles from the origin of the 

14 product, or 

15 (ii) the State in which the product is 

16 produced, 

17 (5) provides that the Federal share of costs for 

18 a project funded through a grant awarded under this 

19 subsection shall not exceed 50 percent of the total 

20 cost of the project, except that— 

21 (A) as a condition of receiving a grant 

22 under this subsection, a grant recipient shall 

23 provide matching support in the form of cash or 

24 in-kind contributions, including facilities, equip25 ment, or services provided by State and local 


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1 governments, nonprofit organizations, commu2 nity development organizations, and private 

3 sources; and 

4 (B) grantees may use Federal nutrition 

5 education and outreach funds as a match for a 

6 grant under this subsection in order to maxi7 mize the effectiveness of the programs, 

8 (6) provides that the maximum extent prac9 ticable, in providing assistance under this sub10 section, the Secretary shall give the highest priority 

11 to funding projects that, as determined by the Sec12 retary— 

13 (A) will make locally and regionally pro14 duced fresh fruits and vegetables available in 

15 underserved, low-income communities, 

16 (B) have a the likelihood of increasing nu17 trition program recipient purchases and con18 sumption of fresh, nutritious food, 

19 (C) demonstrate collaboration between 

20 farmers and agricultural producer groups, local 

21 nongovernmental and community-based organi22 zations, local and State government agencies, 

23 and food retailers, 


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1 (D) include effective and efficient tech2 nologies for benefit redemption systems that 

3 can— 

4 (i) accommodate multiple nutrition 

5 benefit instruments, and 

6 (ii) provide a model for state and local 

7 entities to replicate, and 

8 (E) include a thorough program evaluation 

9 component that measures— 

10 (i) impacts on nutrition program par11 ticipants’ food purchasing and consump12 tion behavior, 

13 (ii) the effectiveness of and participa14 tion in nutrition education and outreach 

15 programs, 

16 (iii) the effect on farmer income, 

17 (iv) the economic effects on partici18 pating food retailers, 

19 (v) the overall change in food environ20 ment of participating communities, and 

21 (vi) such other outcomes that the Sec22 retary deems useful. 

23 (b) FUNDING.—Beginning one year after enactment 

24 of this bill, the Secretary of the Treasury shall transfer 

25 to the Secretary of Agriculture to carry out this subsection 


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1 $70,000,000 each fiscal year, to remain available until ex2 pended. 

3 (c) OTHER CONSIDERATIONS.—The Secretary shall 

4 determine the maximum number of grants, the maximum 

5 and minimum amounts of grants made, and the duration 

6 of grants. 

7 SEC. 106. EBT FARMERS MARKET ACCESSABILITY PRO8 GRAM. 

9 (a) AUTHORITY FOR PROGRAM.—The Secretary of 

10 Agriculture shall develop and carry out a program to make 

11 grants to entities that operate farmers markets in urban 

12 areas for the purchase of equipment and to finance the 

13 installation of equipment necessary to operate EBT sys14 tems at farmers markets. 

15 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this section 

17 $10,000,000 for each of the fiscal years in the 8-year pe18 riod beginning on the October 1 of the first fiscal year 

19 that begins after the date of the enactment of this Act. 

20 SEC. 107. FARM-TO-PRESCHOOL PROGRAM. 

21 (a) AUTHORITY FOR PROGRAM.—The Secretary of 

22 Agriculture shall develop and carry out a grant program 

23 to make grants to community-based and nonprofit organi24 zations to develop a Farm-to-Preschool program that fos25 ters the connection between preschools, Head Start proVerDate Mar 15 2010 20:14 Apr 17, 2012 Jkt 019200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H4351.IH H4351

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1 grams, childcare or daycare centers, kindergarten readi2 ness programs in K–12 school districts, and in-home care 

3 facilities, with small- or medium-sized agricultural pro4 ducers, for the purposes of— 

5 (1) developing an industry-leading preschool nu6 trition education and meal program designed to help 

7 prevent the onset of childhood obesity and develop 

8 foundational healthy eating and lifestyle habits, 

9 (2) creating nutritious and healthy made-from10 scratch meals and menus using recipes that include 

11 mostly locally grown and produced organic foods, 

12 (3) developing recipes and menus that will serve 

13 as a tool for parent awareness, access to healthy 

14 food, food preparation, and eating, and engagement 

15 in nutrition education, 

16 (4) developing experiential educational curricula 

17 centered around farms, farmers’ markets, and school 

18 gardens for parents and children, 

19 (5) replicating ‘‘Farm-to-Preschool’’ parent 

20 awareness and engagement in nutrition education, 

21 healthy eating and food preparation nationally, 

22 (6) supporting local and regional agriculture 

23 communities, and 

24 (7) promoting the institutionalization of pre25 school wellness policies. 


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1 (b) AVAILABILITY AND USE OF GRANTS.—The Sec2 retary shall make grants under subsection (a)— 

3 (1) to be used— 

4 (A) to support the initial costs of imple5 menting a new, or expanding an existing, 

6 Farm-to-Preschool program, 

7 (B) in an amount not to exceed $500,000 

8 to support the training and access to resources 

9 and information necessary to conduct a success10 ful Farm-to-Preschool program, or 

11 (C) in an amount not to exceed $100,000 

12 to support the cost of conducting research, 

13 identifying resources, and developing partner14 ships to design a successful and sustainable 

15 Farm-to-Preschool program, 

16 (2) to eligible entities that agree to provide, in 

17 cash or in kind, not less that 20 percent of the cost 

18 of the use for which the respective grants are made, 

19 and 

20 (3) to achieve to the maximum extent prac21 ticable geographical diversity and grantee participa22 tion in urban, rural and tribal communities. 

23 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

24 authorized to be appropriated for fiscal years 2013, 2014, 

25 and 2015 in the aggregate $10,000,000. 


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1 SEC. 108. EXPANDING AND IMPROVING THE AFFORD2 ABILITY AND NUTRITIONAL INTEGRITY OF 

3 THE USDA FRESH FRUIT AND VEGETABLE 

4 PROGRAM. 

5 Subsection (b) of section 19 of the Richard B. Russell 

6 National School Lunch Act (42 U.S.C. 1769a(b)) is 

7 amended to read as follows: 

8 ‘‘(b) PROGRAM.—A school participating in the pro9 gram— 

10 ‘‘(1) shall make free fruits and vegetables avail11 able to students throughout the school day (or at 

12 such other times as are considered appropriate by 

13 the Secretary) in 1 or more areas designated by the 

14 school; and 

15 ‘‘(2) may make free fruits and vegetables in any 

16 other form (such as fresh, frozen, dried, pureed, or 

17 canned) available to students throughout the school 

18 day (or at such other times as are considered appro19 priate by the Secretary) in 1 or more areas des20 ignated by the school only if such fruits and vegeta21 bles meet any additional nutrition specifications, as 

22 established by the Secretary.’’. 


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1 TITLE II—CREATION OF THE 

2 HEALTHY FOOD FINANCING 

3 INITIATIVE 

4 SEC. 201. PURPOSE AND DEFINITIONS. 

5 (a) PURPOSE.—The purpose of the Healthy Food Fi6 nancing Initiative is to improve access to healthy foods 

7 in underserved areas, to create and preserve quality jobs, 

8 and to revitalize low-income communities by providing 

9 loans and grants to retailers of fresh and healthy food to 

10 overcome the higher costs and initial barriers to entry in 

11 underserved urban, suburban, and rural areas. 

12 (b) DEFINITIONS.—In this title: 

13 (1) COMMUNITY DEVELOPMENT FINANCIAL IN14 STITUTION.—The term ‘‘community development fi15 nancial institution’’ has the meaning given the term 

16 in section 103 of the Community Development 

17 Banking and Financial Institutions Act of 1994 (12 

18 U.S.C. 4702). 

19 (2) FOOD ACCESS ORGANIZATION.—The term 

20 ‘‘food access organization’’ means a nonprofit orga21 nization with expertise in improving access to 

22 healthy food in underserved communities. 

23 (3) INITIATIVE.—The term ‘‘Initiative’’ means 

24 the Healthy Food Financing Initiative. 


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1 (4) LOCAL FUNDS.—The term ‘‘local funds’’ 

2 means the allocation of national funds and any other 

3 forms of financial assistance (including grants, 

4 loans, and equity investments) that are raised by 

5 partnerships to carry out the purposes of the Initia6 tive. 

7 (5) NATIONAL FUNDS.—The term ‘‘national 

8 funds’’ means amounts appropriated to carry out the 

9 Initiative and any other forms of financial assistance 

10 (including grants, loans, and equity investments) 

11 that are raised by the national fund manager to 

12 carry out the Initiative. 

13 (6) NATIONAL FUND MANAGER.—The term 

14 ‘‘national fund manager’’ means a community devel15 opment financial institution in existence as of the 

16 date of enactment of this Act and certified by the 

17 Community Development Financial Institutions 

18 Fund of the Department of the Treasury that is des19 ignated by the Secretary to manage the Initiative for 

20 purposes of— 

21 (A) raising private capital; 

22 (B) providing financial and technical as23 sistance to partnerships; and 

24 (C) funding eligible projects directly at the 

25 request of partnerships to attract retailers of 


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1 fresh and healthy food to underserved urban, 

2 suburban, and rural areas in accordance with 

3 this title. 

4 (7) PARTNERSHIP.— 

5 (A) IN GENERAL.—The term ‘‘partner6 ship’’ means a regional, State, or local public 

7 and private partnership that is organized to im8 prove access to fresh and healthy foods by pro9 viding financial and technical assistance to eli10 gible projects. 

11 (B) INCLUSIONS.—The term includes— 

12 (i) an unit of State, local, or tribal 

13 government or a quasi-public State or local 

14 government agency; 

15 (ii) a food access or community health 

16 organization committed to improving ac17 cess to healthy foods; 

18 (iii) a community development finan19 cial institution or other organization that 

20 is capable of administering a loan and 

21 grant program in accordance with this 

22 title; and 

23 (iv) other organizations interested in 

24 improving access to healthy foods in under25 served areas. 


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1 (8) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Agriculture. 

3 SEC. 202. ESTABLISHMENT OF HEALTHY FOOD FINANCING 

4 INITIATIVE AND ELIGIBLE PROJECTS. 

5 (a) ESTABLISHMENT.—There is established in the 

6 Department of Agriculture a Healthy Food Financing Ini7 tiative. 

8 (b) MANAGEMENT.—Not later than 1 year after the 

9 date of enactment of this Act, the Secretary shall select 

10 and enter into a grant agreement with a national fund 

11 manager that will be responsible for the management of 

12 the Initiative. 

13 (c) ELIGIBLE PROJECTS.— 

14 (1) ELIGIBILITY CRITERIA.—Subject to the re15 quirements of this section, the national fund man16 ager shall establish the eligibility criteria for projects 

17 to be assisted by the Initiative. 

18 (2) REQUIRED PROJECT ELEMENTS.—To be eli19 gible to receive assistance through the Initiative, a 

20 project shall— 

21 (A) include a supermarket, grocery store, 

22 farmers’ market, or other retailer of fresh and 

23 healthy food; 


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1 (B) consist of a for-profit business enter2 prise, a member- or worker-owned cooperative, 

3 or a nonprofit organization; 

4 (C) meet the eligibility criteria established 

5 under this section; 

6 (D) continue to be a viable business enter7 prise with a financial viability plan; 

8 (E) require an investment of public fund9 ing to move forward and be competitive; 

10 (F) operate on a self-service basis; 

11 (G) expand or preserve the availability of 

12 healthy, fresh, high quality unprepared and un13 processed foods, particularly fresh fruits and 

14 vegetables, in underserved areas; and 

15 (H) agree to accept benefits under the sup16 plemental nutrition assistance program estab17 lished under the Food and Nutrition Act of 

18 2008 (7 U.S.C. 2011 et seq.). 

19 (d) TYPES OF FOOD AND VARIETY CRITERIA.— 

20 (1) DEFINITIONS.—In this subsection: 

21 (A) PERISHABLE FOOD.— 

22 (i) IN GENERAL.—The term ‘‘perish23 able food’’ means food that is fresh, refrig24 erated, or frozen. 


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1 (ii) EXCLUSION.—The term ‘‘perish2 able food’’ does not include packaged or 

3 canned goods. 

4 (B) STAPLE FOOD.— 

5 (i) IN GENERAL.—The term ‘‘staple 

6 food’’ means food that is a basic dietary 

7 item, including bread, flour, fruits, vegeta8 bles, and meat. 

9 (ii) EXCLUSIONS.—The term ‘‘staple 

10 food’’ does not include snack or accessory 

11 food (such as chips, soda, coffee, con12 diments, and spices) or ready-to-eat, pre13 pared food. 

14 (C) VARIETY.—The term ‘‘variety’’ means 

15 an assortment of different types of food items. 

16 (2) IN GENERAL.—For purposes of complying 

17 with the project element specified in subsection 

18 (b)(2)(G) to expand or preserve the availability of 

19 fresh fruits and vegetables in underserved areas, a 

20 project shall maintain a store that— 

21 (A) carries a full line of fresh produce, as 

22 defined by the national fund manager to reflect 

23 differences in project size and overall store size; 

24 (B) sells food for home preparation and 

25 consumption; and 


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1 (C) at a minimum— 

2 (i) offers for sale at least 3 different 

3 varieties of food in each of the 4 staple 

4 food groups (bread and grains, dairy, 

5 fruits and vegetables, and meat, poultry, 

6 and fish), with perishable food in at least 

7 2 categories, on a daily basis; or 

8 (ii) has a store at which at least 50 

9 percent of the total sales of the store (in10 cluding food and nonfood items or services) 

11 are from the sale of eligible staple food. 

12 (e) INCOME CRITERIA.—Each eligible project shall be 

13 located in— 

14 (1) a low- or moderate-income census tract, as 

15 determined by the Bureau of the Census of the De16 partment of Commerce; 

17 (2) a population census tract that is treated as 

18 a low-income community under section 45D(e) of the 

19 Internal Revenue Code of 1986; or 

20 (3) an area that significantly serves an adjacent 

21 area that meets the criteria described in paragraph 

22 (1) or (2), as approved by the national fund man23 ager. 

24 (f) UNDERSERVED CRITERIA.— 


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1 (1) IN GENERAL.—Each eligible project shall be 

2 located in an underserved area, as determined by the 

3 partnerships according to criteria established by the 

4 national fund manager. 

5 (2) FACTORS.—In determining whether an area 

6 is an underserved area, the following factors shall be 

7 taken into consideration: 

8 (A) Population density. 

9 (B) Below average supermarket density or 

10 sales. 

11 (C) Car ownership. 

12 (D) Geographical or physical barriers, such 

13 as highways, mountains, major parks, bodies of 

14 water, or areas with large amounts of vacant 

15 lots or foreclosed properties. 

16 (3) LOCATIONS.—On an annual basis, the na17 tional fund manager shall collect data and publish 

18 maps that show the location of underserved areas. 

19 (g) PRIORITY PROJECTS.— 

20 (1) IN GENERAL.—Priority shall be given to 

21 projects that— 

22 (A) are located in severely distressed low23 income communities, as defined by the Commu24 nity Development Financial Institutions Fund 

25 of the Department of the Treasury; and 


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1 (B) include 1 or more of the following 

2 characteristics: 

3 (i) The project will create or retain 

4 quality jobs in the community, as deter5 mined in accordance with paragraph (2). 

6 (ii) The project has community sup7 port in terms of store quality, affordability, 

8 site location, and coordination with local 

9 community plans or other programs pro10 moting community and economic develop11 ment. 

12 (iii) The project supports regional 

13 food systems and locally grown foods, to 

14 the extent available. 

15 (iv) In major metropolitan areas, the 

16 project is associated with a transit-oriented 

17 development project. 

18 (v) In areas with public transit, the 

19 project is accessible by public transit. 

20 (vi) The project involves the reuse of 

21 a building that is listed in or eligible for 

22 the National Register of Historic Places. 

23 (vii) The project involves a brownfield 

24 or grayfield (as those terms are used in the 

25 Comprehensive Environmental Response, 


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1 Compensation, and Liability Act of 1980 

2 (42 U.S.C. 9601 et seq.)). 

3 (viii) The estimated energy consump4 tion of the project, calculated using build5 ing energy software approved by the De6 partment of Energy, will qualify the 

7 project for designation under the Energy 

8 Star program established by section 324A 

9 of the Energy Policy and Conservation Act 

10 (42 U.S.C. 6294a). 

11 (ix) The project involves women- and 

12 minority-owned businesses. 

13 (2) QUALITY JOBS.—For purposes of para14 graph (1)(B)(i), a quality job is a job that— 

15 (A) provides wages that are comparable to 

16 or better than similar positions in existing busi17 nesses of similar size in similar local economies; 

18 (B) offers benefits that are comparable to 

19 or better than what is offered for similar posi20 tions in existing local businesses of similar size 

21 in similar local economies; and 

22 (C) is targeted for residents of neighbor23 hoods with a high proportion of persons of low 

24 income (as that term is defined in section 

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1 opment Act of 1974 (42 U.S.C. 5302(a))) 

2 through local targeted hiring programs. 

3 SEC. 203. DUTIES OF SECRETARY. 

4 (a) IN GENERAL.—The Secretary shall— 

5 (1) designate a national fund manager to man6 age national funds; 

7 (2) oversee the Initiative nationally; 

8 (3) work closely with the national fund man9 ager— 

10 (A) to ensure that funds are used appro11 priately and in the most effective manner prac12 ticable; and 

13 (B) to develop the program strategy into a 

14 detailed work plan, program, and operating 

15 budget; 

16 (4) review and approve the operating budget for 

17 the national fund manager to ensure that the admin18 istrative costs are— 

19 (A) reasonable (not more than 5 percent of 

20 the total budget); 

21 (B) connected to the costs of operations; 

22 and 

23 (C) reflect efficient operations by the na24 tional fund manager; and 


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1 (5) make available to the public an annual re2 port, using data obtained from the Department of 

3 Agriculture, the Department of Health and Human 

4 Services, and the community development financial 

5 institutions, that describes the impacts of the Initia6 tive, including tracking health and economic develop7 ment indicators at the local, State, and national lev8 els to determine the impacts of individual projects 

9 and the collective impact in local areas and statewide 

10 of funded projects and the Initiative overall. 

11 (b) PERFORMANCE TARGETS.— 

12 (1) IN GENERAL.—The Secretary shall conduct 

13 financial audits of, and establish performance tar14 gets for, the national fund manager, which shall in15 clude, at a minimum, the requirements described in 

16 this subsection. 

17 (2) GEOGRAPHIC SPREAD.—Partnerships fund18 ed by the Initiative shall be geographically diverse 

19 and representative of the underserved areas across 

20 the United States. 

21 (3) FOCUS ON LOW-INCOME COMMUNITIES.—A 

22 substantial portion of the projects funded by part23 nerships shall serve very low- and low-income com24 munities, as defined by the Bureau of the Census of 

25 the Department of Commerce. 


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1 (4) FINANCIAL EFFECTIVENESS OF THE NA2 TIONAL FUND MANAGER.—The national fund man3 ager and any local financial institution involved in a 

4 partnership shall demonstrate on-going capacity and 

5 timeliness in raising private capital and disbursing 

6 funds as required under the Initiative. 

7 (5) TECHNICAL ASSISTANCE EFFECTIVENESS

8 OF THE NATIONAL FUND MANAGER.—The provision 

9 of technical assistance by the national fund manager 

10 shall be evaluated based on— 

11 (A) the responsiveness of the national fund 

12 manager to requests for assistance; and 

13 (B) the ability of the national fund man14 ager to craft programs that develop needed new 

15 capacities in partnerships. 

16 (6) IMPACT.—Performance targets shall ad17 dress the allocation of funds by the national fund 

18 manager to partnerships and the tracking and re19 porting of the impacts of the funds in improving ac20 cess to fresh, healthy foods and in achieving other 

21 related impacts. 

22 (c) DISBURSEMENT OF FUNDS.—The Secretary shall 

23 assist in the administration of the Initiative by approving 

24 the disbursement of funds to the national fund manager 


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1 in a manner that facilitates the implementation of the 

2 overall Initiative. 

3 SEC. 204. NATIONAL FUND MANAGER. 

4 (a) SELECTION OF NATIONAL FUND MANAGER.— 

5 The Secretary shall select the national fund manager 

6 through a competitive process from among community de7 velopment financial institutions that have a proven and 

8 recent track record of success and effectiveness in— 

9 (1) attracting private capital; 

10 (2) developing and managing programs that 

11 provide grants and loans to support supermarkets 

12 and other fresh, healthy food retail business enter13 prises in low- and moderate-income communities, in14 cluding the development of grocery stores, farmers 

15 markets, and other fresh, healthy food retail models; 

16 (3) making and servicing loans that are similar 

17 to loans proposed in the Initiative or having a record 

18 of otherwise successfully investing in fresh, healthy 

19 food retail development projects; 

20 (4) effectively managing multiple contracts and 

21 subcontractors; 

22 (5) effectively managing large capital pools, of 

23 at least $100,000,000; and 

24 (6) providing or contracting for the provision of 

25 technical assistance. 


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1 (b) RESPONSIBILITIES OF THE NATIONAL FUND

2 MANAGER.—The designated national fund manager 

3 shall— 

4 (1) raise other forms of financial assistance to 

5 match or leverage the national funds; 

6 (2) use administrative funds to develop appro7 priate training programs and offer technical assist8 ance services to— 

9 (A) partnerships; 

10 (B) State, local, and tribal governments; 

11 (C) the food retail industry; and 

12 (D) food access and health advocacy orga13 nizations to augment local capacities; 

14 (3) develop financial products such as loans, 

15 grants, and credit enhancement tools that can be 

16 used by partnerships to incentivize and support the 

17 development and retention of supermarkets and 

18 other fresh, healthy food retail in underserved areas; 

19 (4) award Initiative funds to eligible partner20 ships through an annual competitive process in ac21 cordance with section lll05(d); 

22 (5) contract with a national food access organi23 zation to assist in the review of applications from 

24 partnerships and to provide technical assistance to 


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1 local food access organizations in the proposed part2 nerships; 

3 (6) award and disburse funds to partnerships or 

4 eligible local projects in a timely manner; 

5 (7) create and meet performance benchmarks 

6 and reporting guidelines, as approved by the Sec7 retary, including for— 

8 (A) the amount of capital raised and lever9 aged from financial institutions, partnerships, 

10 and other resources; 

11 (B) the geographic diversity of partner12 ships; and 

13 (C) the proportion of projects funded by 

14 the partnership that are in severely distressed 

15 low-income communities; 

16 (8) develop program guidelines and operating 

17 procedures for the Initiative, including— 

18 (A) maximum grant and loan amounts for 

19 projects; 

20 (B) eligible uses of funds; 

21 (C) prudent underwriting criteria; 

22 (D) performance targets; 

23 (E) reporting guidelines; 

24 (F) limits on administrative costs; and 

25 (G) implementation milestones; 


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1 (9) monitor the performance of partnerships; 

2 and 

3 (10) collect data, compile information, and con4 duct such research studies as the national fund man5 ager determines to be relevant to the successful im6 plementation of the Initiative, including— 

7 (A) to assess national and local market 

8 conditions; 

9 (B) to determine barriers to market entry; 

10 and 

11 (C) to identify opportunities for the devel12 opment or retention of supermarkets and other 

13 fresh, healthy food retail enterprises in under14 served communities. 

15 (c) WORK PLAN.— 

16 (1) IN GENERAL.—Not later than 45 days after 

17 the date of receipt of an award, the national fund 

18 manager shall develop, with guidance from and in 

19 consultation with the Secretary, and submit to the 

20 Secretary, a detailed work plan. 

21 (2) APPROVAL REQUIRED.—The Secretary shall 

22 review and approve the work plan, program budget, 

23 and administrative costs under subsection (e)(4)(C) 

24 prior to entering into an agreement with the na25 tional fund manager to administer the Initiative. 


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1 SEC. 205. ALLOCATION AND USE OF FUNDS. 

2 (a) ALLOCATION.—The national fund manager 

3 shall— 

4 (1) allocate at least 70 percent of all funds ap5 propriated for the Initiative for a fiscal year to part6 nerships that are selected based on the criteria de7 scribed in subsection (d); and 

8 (2) retain not more than 30 percent of the 

9 funds appropriated for the Initiative for a fiscal year 

10 to undertake financing activities described in sub11 section (c), including a reasonable amount for ad12 ministrative costs (not to exceed 5 percent) approved 

13 by the Secretary. 

14 (b) USE OF THE NATIONAL FUNDS BY PARTNERSHIP

15 PROGRAMS.— 

16 (1) IN GENERAL.—As a condition on the receipt 

17 of funds, each partnership shall use— 

18 (A) the national funds received from the 

19 national fund manager under subsection (a)(1) 

20 to create 1 or more revolving loan programs or 

21 other revolving pools of capital or other prod22 ucts to facilitate financing of local projects as 

23 determined by the agreement between the part24 nership and the national fund manager; and 

25 (B) any remaining funds for grants, or, as 

26 approved, for innovative financing mechanisms. 


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1 (2) LIMITATIONS.— 

2 (A) IN GENERAL.—Use of funds for ad3 ministrative costs and other purposes shall be— 

4 (i) limited in accordance with the 

5 terms of the agreement negotiated between 

6 the national fund manager and partner7 ships; 

8 (ii) based on whether administrative 

9 costs are reasonable, connected to the costs 

10 of operation, and reflect efficient oper11 ations by the partnership; and 

12 (iii) determined using criteria includ13 ing geographic coverage, program duration, 

14 and total funding amount. 

15 (B) GOAL.—The goal of this paragraph is 

16 to limit administrative costs to the maximum 

17 extent practicable, but in no case may the 

18 amount used for administrative costs exceed 10 

19 percent of the Federal funds allocated. 

20 (c) USE OF THE NATIONAL FUNDS BY THE NA21 TIONAL FUND MANAGER.—The national fund manager 

22 shall use national funds described in subsection (a)(2) to 

23 undertake financing and other activities to enhance and 

24 maximize the effectiveness of the Initiative, as determined 

25 by the agreement with the Secretary, including— 


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1 (1) attracting other forms of financial assist2 ance to match or leverage the national funds; 

3 (2) awarding national funds to partnerships in 

4 accordance with subsection (d); 

5 (3) creating and managing pools of grant or 

6 loan capital that blend or leverage national funds 

7 with other forms of financial assistance, including 

8 capital in the form of tax credits under section 45D 

9 of the Internal Revenue Code of 1986, for the ben10 efit of partnerships; 

11 (4) creating and managing pools of grant or 

12 loan capital that blend or leverage the national funds 

13 with other forms of financial assistance, including 

14 capital in the form of tax credits under section 45D 

15 of the Internal Revenue Code of 1986, to finance eli16 gible local projects identified by partnerships or the 

17 national fund manager that have special or unique 

18 characteristics; 

19 (5) providing loans or grants directly to eligible 

20 local projects as matching funds if requested by a 

21 partnership; 

22 (6) providing credit enhancement or other fi23 nancial products and instruments for the benefit of 

24 partnerships or eligible local projects; 

25 (7) providing technical assistance; and 


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1 (8) funding reasonable administrative costs ap2 proved by the Secretary. 

3 (d) CRITERIA FOR AWARDING NATIONAL FUNDS TO

4 PARTNERSHIPS.— 

5 (1) IN GENERAL.—The national fund manager 

6 shall award national funds to partnerships through 

7 a competitive process on an annual basis. 

8 (2) FIRST ROUND PRIORITY.—In the first 

9 round of funding, the national fund manager shall 

10 give priority to existing partnerships that have de11 monstrable capacity to implement fresh food financ12 ing programs in underserved areas quickly. 

13 (3) ADDITIONAL ROUNDS.—Additional rounds 

14 shall be designed to promote geographic diversity. 

15 (4) CRITERIA.—In awarding national funds to 

16 partnerships, the national fund manager shall con17 sider— 

18 (A) the amount of funds and other re19 sources pledged by a partnership to match or 

20 leverage national funds; 

21 (B) the degree of State, local, or tribal 

22 government support of the partnership as evi23 denced by matching grant and loan funds or 

24 other types of support, such as allocation of 

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1 nation of resources from other State or local 

2 economic development programs; 

3 (C) the capacity of the partnership to suc4 cessfully develop and manage loan and grant 

5 programs; 

6 (D) the lack of supermarkets and other 

7 fresh, healthy food retail enterprises in low- and 

8 moderate-income areas that would be served by 

9 the partnership; 

10 (E) the experience of the food access or 

11 community health organization of the partner12 ship in outreach about access to healthy foods 

13 and local healthy food access issues; 

14 (F) the degree of community engagement 

15 and support in the development and retention 

16 of supermarkets and other fresh, healthy food 

17 retail enterprises; and 

18 (G) the contribution of the program of the 

19 partnership to the overall geographic diversity 

20 of the Initiative. 

21 (e) ADMINISTRATIVE COSTS.— 

22 (1) IN GENERAL.—Not later than 45 days after 

23 the date of receipt of an award, the national fund 

24 manager shall submit to the Secretary for approval 


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1 a 3-year program and operating budget and detailed 

2 work plan that shall include— 

3 (A) costs for research and evaluation, tech4 nical assistance, and training; and 

5 (B) program and operating costs. 

6 (2) EARNED REVENUES.—Earned revenues 

7 from loan fees and interest may be expended on pro8 gram and operating costs in accordance with the 

9 budget approved by the Secretary. 

10 (3) BASIS OF REVIEW.—The Secretary shall 

11 base the review under subparagraph (A) on— 

12 (A) the likelihood of the plan and expendi13 tures to further the purposes of this section; 

14 and 

15 (B) whether the administrative costs are 

16 reasonable, connected to the costs of operation, 

17 and reflect efficient operations by the national 

18 fund manager. 

19 SEC. 206. PARTNERSHIPS. 

20 (a) IN GENERAL.—Each partnership that receives as21 sistance through the Initiative shall provide financial and 

22 technical assistance to eligible fresh, healthy food retail 

23 projects in underserved areas within the defined commu24 nities of the partnership. 


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1 (b) ADMINISTRATION.—Each partnership shall des2 ignate a community development financial institution or 

3 other organization that is capable of administering a loan 

4 and grant program— 

5 (1) to execute grant agreements with the na6 tional fund manager; and 

7 (2) to serve as the manager of local funds. 

8 (c) RESPONSIBILITIES OF PARTNERSHIPS.—A part9 nership shall— 

10 (1) raise other forms of financial assistance to 

11 match the national funds received by the partner12 ship; 

13 (2) provide marketing and outreach to commu14 nities, the supermarket industry, other fresh, healthy 

15 food retailers, State and local government officials, 

16 and civic and public interest organizations— 

17 (A) to solicit applications from underserved 

18 areas from across the State or locality to be 

19 served by the partnership; and 

20 (B) to inform the communities and other 

21 persons about the availability of grants, loans, 

22 training, and technical assistance; 

23 (3) review and underwrite projects to determine 

24 whether— 


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1 (A) a proposed project meets the criteria 

2 for eligible projects under section ll02; and 

3 (B) a proposed project meets the criteria 

4 for priority projects under subsection (g) of 

5 such section; 

6 (4) provide technical assistance services to eligi7 ble fresh, healthy food retail operators and devel8 opers; 

9 (5) track and report outcomes, including— 

10 (A) the number of jobs created or retained; 

11 (B) the quantity of fresh, healthy food re12 tail space created or retained; and 

13 (C) such other health and economic indica14 tors as are required by the national fund man15 ager; 

16 (6) monitor and audit funded projects to ensure 

17 compliance with the Initiative, the national fund 

18 manager, and partnership program requirements for 

19 a period of at least 3 years; 

20 (7) submit an annual report to the national 

21 fund manager that describes— 

22 (A) the activities of the partnership; 

23 (B) the expenditure of local funds; and 

24 (C) success in meeting performance targets 

25 and satisfying such other terms and conditions 


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1 as are specified in the agreement between the 

2 partnership and the national fund manager; 

3 and 

4 (8) coordinate with the national fund manager 

5 for the smooth operation of the Initiative. 

6 (d) ADMINISTRATIVE COSTS.— 

7 (1) IN GENERAL.—As a condition on the receipt 

8 of assistance under this section, each partnership 

9 shall submit to the national fund manager for ap10 proval a 3-year budget and plan for all program and 

11 operating costs, including— 

12 (A) costs for research and evaluation, tech13 nical assistance, and training; and 

14 (B) administrative and operating costs. 

15 (2) EARNED REVENUES.—Earned revenues 

16 from loan fees and interest may be expended on pro17 gram and operating costs in accordance with the 

18 budget approved by the national fund manager. 

19 (3) BASIS OF REVIEW.—The national fund 

20 manager shall base the review of the budget and 

21 plan under paragraph (1) on the likelihood of the 

22 budget and plan to further the purposes of the Ini23 tiative. 


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1 SEC. 207. EVALUATION AND MONITORING. 

2 (a) IN GENERAL.—Program evaluation and financial 

3 audits shall occur at all levels of the Initiative to ensure 

4 that— 

5 (1) national and local funds are used properly; 

6 and 

7 (2) the objectives of the Initiative are met. 

8 (b) PROGRAM EVALUATION AND FINANCIAL AU9 DITS.— 

10 (1) IN GENERAL.—The Secretary shall— 

11 (A) conduct periodic program evaluations 

12 and financial audits of the national fund man13 ager, partnerships, and projects funded by the 

14 Initiative; and 

15 (B) share with the national fund manager 

16 the results of the evaluations and audits. 

17 (2) FUNDED PROJECTS.—The Secretary or the 

18 national fund manager shall evaluate partnerships to 

19 assess the health and economic impacts of projects 

20 funded by the Initiative. 

21 (3) OTHER IMPACTS.— 

22 (A) SECRETARY OF HEALTH AND HUMAN

23 SERVICES.—The Secretary of Health and 

24 Human Services shall conduct research studies 

25 and evaluate the health impacts of the Initia26 tive. 


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1 (B) COMMUNITY DEVELOPMENT FINAN2 CIAL INSTITUTIONS.—Representatives of the 

3 community development financial institutions 

4 shall conduct research studies and evaluate the 

5 economic impacts of the Initiative. 

6 (4) PARTNERSHIPS.— 

7 (A) IN GENERAL.—Each partnership 

8 shall— 

9 (i) conduct periodic administrative 

10 and financial audits of projects funded by 

11 the Initiative; and 

12 (ii) share with the national fund man13 ager the results of the audits. 

14 (B) FAILURE OF PARTNERSHIP.—In a 

15 case in which a partnership fails, the national 

16 fund manager shall take over the portfolio of 

17 the failed partnership. 

18 SEC. 208. ADMINISTRATIVE PROVISIONS. 

19 Not later than 180 days after the date of enactment 

20 of this Act, the Secretary shall promulgate such regula21 tions as may be necessary to carry out the Initiative, in22 cluding regulations— 

23 (1) for the conduct of a performance evaluation 

24 at the end of the initial 5-year period; 

25 (2) to terminate the contract for cause; and 


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1 (3) to extend the contract for an additional 5- 

2 year period. 

3 SEC. 209. AUTHORIZATION OF APPROPRIATIONS. 

4 There is authorized to be appropriated to the Sec5 retary to carry out the Initiative $500,000,000. Amounts 

6 appropriated pursuant to this authorization of appropria7 tion shall remain available until expended. 

8 TITLE III—DEVELOPMENT OF 

9 SUSTAINABLE URBAN AGRI10 CULTURE 

11 SEC. 301. COMMUNITY GARDENING GRANT PROGRAM. 

12 (a) PROGRAM ESTABLISHED.—From the amounts 

13 appropriated to carry out this section, the Secretary of 

14 Agriculture shall award grants to eligible entities to ex15 pand, establish, or maintain urban and Native American 

16 community gardens. 

17 (b) APPLICATION.—In order to receive a grant under 

18 this section, an eligible entity shall submit to the Secretary 

19 an application at such time, in such manner, and con20 taining such information as the Secretary may require, in21 cluding— 

22 (1) an assurance that priority for hiring for 

23 jobs created by the expansion, establishment, or 

24 maintenance of an urban community garden funded 

25 with a grant received under this section will be given 


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1 to individuals who reside in the community where 

2 the garden is located; and 

3 (2) a demonstration that the eligible entity is 

4 committed to providing non-Federal financial or in5 kind support (such as, but not limited to, providing 

6 a water supply) for the community garden for which 

7 the entity receives funds under this section. 

8 (c) DEFINITIONS.—In this section: 

9 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti10 ty’’ means— 

11 (A) a for profit or nonprofit organization; 

12 or 

13 (B) a unit of general local government, or 

14 tribal government, located on tribal land or in 

15 a low-income community. 

16 (2) LOW-INCOME COMMUNITY.—The term ‘‘low17 income community’’ has the meaning given such 

18 term by the Secretary of Agriculture. 

19 (3) UNIT OF GENERAL LOCAL GOVERNMENT.— 

20 The term ‘‘unit of general local government’’ means 

21 any city, county, town, township, parish, village, or 

22 other general purpose political subdivision of a 

23 State. 

24 (4) STATE.—The term ‘‘State’’ includes, in ad25 dition to the several States of the United States, the 


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1 Commonwealth of Puerto Rico, the District of Co2 lumbia, the Virgin Islands, Guam, American Samoa, 

3 and the Commonwealth of the Northern Mariana Is4 lands. 

5 SEC. 302. GRANTS FOR CONVERSION OF ABANDONED AND 

6 FORECLOSED PROPERTY TO URBAN AGRI7 CULTURAL USES. 

8 (a) GRANTS AUTHORIZED.—The Secretary of Agri9 culture may make grants on a competitive basis to assist 

10 an eligible entity described in subsection (b)— 

11 (1) to acquire, by purchase or lease, abandoned 

12 or foreclosed real property in an urban area where 

13 there is limited or no agricultural production; and 

14 (2) to convert the property to an agricultural 

15 use authorized by subsection (c). 

16 (b) ELIGIBLE ENTITIES DESCRIBED.—Grants may 

17 be made under this section to a community organization, 

18 municipality, institution of higher education, local school 

19 district, nonprofit organization, or for-profit entity. 

20 (c) AUTHORIZED AGRICULTURAL USES.—Real prop21 erty acquired using grant funds may be used for any of 

22 the following purposes: 

23 (1) Projects to encourage the production of 

24 local foods in an urban area. 


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1 (2) Projects to strengthen local food distribu2 tion systems in an urban area. 

3 (3) Projects to create sustainable food systems 

4 in an urban area. 

5 (4) Projects to create or expand the opportuni6 ties to consume fresh fruits and vegetables in an 

7 urban area. 

8 (5) Projects to promote agricultural processing 

9 in an urban area. 

10 (6) Projects to encourage recipients of Federal 

11 and State domestic food assistance programs to pur12 chase locally grown or produced foods. 

13 (7) Projects to promote education and training 

14 related to best practices for agricultural production 

15 in an urban area. 

16 (8) Projects to promote education initiatives 

17 that promote the nutritional benefits of consuming 

18 locally produced foods. 

19 (9) Other projects to promote economic develop20 ment through agricultural production in an urban 

21 area. 

22 (d) GRANT LIMITATION.—The amount of a grant 

23 made under this section shall not exceed $500,000. 


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1 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to the Secretary such 

3 amounts as may be necessary to carry out this section. 

4 SEC. 303. EXPANSION OF HARVESTCORPS PROGRAM. 

5 (a) AUTHORITY TO FUND HARVESTCORPS

6 GRANTS.—The Secretary of Agriculture may enter into an 

7 agreement with the Director of the Corporation for Na8 tional and Community Service, under which the Secretary 

9 will provide funds to the Corporation for National and 

10 Community Service to make up to 10 annual grants under 

11 section 121 of the National and Community Service Act 

12 of 1990 (42 U.S.C. 12571) to support the creation of the 

13 HarvestCorps program— 

14 (1) to alleviate poverty and meet the food needs 

15 of low-income people by increasing their access to 

16 supportive programs, such as the Summer Food 

17 Service Program, the Supplemental Nutrition Assist18 ance Program, tax credits, and other programs, that 

19 increase the revenue and economic health of the low20 income communities; and 

21 (2) to engage community resources and pro22 mote partnerships that address local food access 

23 issues. 

24 (b) GRANT PROCESS; ELIMINATION OF COST-SHAR25 ING REQUIREMENTS.— 


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1 (1) COMPETITIVE PROCESS.—Grants funded by 

2 the Secretary under subsection (a) shall be awarded 

3 by the Corporation on a competitive basis. The Cor4 poration shall extend a preference to eligible entities 

5 (as described in section 121(a) of the National and 

6 Community Service Act of 1990 (42 U.S.C. 

7 12571(a))) operating in the 10 States with the high8 est food insecurity rates, as measured by the De9 partment of Agriculture. 

10 (2) GRANT AMOUNT; DURATION.—A grant 

11 funded by the Secretary under subsection (a) may 

12 not exceed $1,000,000 per year. The grant recipient 

13 may not receive a grant under this section for more 

14 than three years. 

15 (3) MATCHING FUNDS.—The matching funds 

16 requirement of section 121(e) of the National and 

17 Community Service Act of 1990 (42 U.S.C. 

18 12571(e)) shall not apply to grants funded by the 

19 Secretary under subsection (a). 

20 (c) STATE-WIDE USE OF GRANT.—The recipient of 

21 a grant funded by the Secretary under subsection (a) shall 

22 agree to provide services on a State-wide basis. 

23 (d) SHARING INFORMATION.—The Secretary and the 

24 Corporation may provide for the sharing of information 

25 concerning HarvestCorps projects through publications, 


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1 conferences, and other appropriate forums, including shar2 ing information with researchers, practitioners, and other 

3 interested parties. 

4 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

5 authorized to be appropriated to the Secretary of Agri6 culture $10,000,000 for each of fiscal years 2013, 2014, 

7 and 2015 to carry out this section. 

8 SEC. 304. ACQUISITION OF PUBLICALLY OWNED LAND AND 

9 CONVERSION TO URBAN FARMS AND COMMU10 NITY GARDENS. 

11 (a) DEFINITIONS.—In this section: 

12 (1) FOOD DESERT.—The term ‘‘food desert’’ 

13 has the meaning given the term ‘‘underserved com14 munity’’ in section 25(a)(3) of the Food and Nutri15 tion Act of 2008 (7 U.S.C. 2034(a)(3)). 

16 (2) COMMUNITY LAND TRUST.—The term 

17 ‘‘community land trust’’ means a community hous18 ing development organization, as such term is de19 fined in section 104(6) of the Cranston-Gonzalez 

20 National Affordable Housing Act (42 U.S.C. 

21 12704(6)), except that the requirements under sub22 paragraphs (C) and (D) of such section shall not 

23 apply for purposes of this section. 

24 (b) GRANTS AUTHORIZED.—The Secretary of Agri25 culture shall make competitive grants to nonprofit organiVerDate Mar 15 2010 20:14 Apr 17, 2012 Jkt 019200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\H4351.IH H4351

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1 zations, including community land trusts, to assist the or2 ganizations— 

3 (1) to purchase publically owned land in a food 

4 desert; and 

5 (2) to convert the land for use as an urban 

6 farm or community garden for the production of af7 fordable, nutritious foods. 

8 (c) MATCHING FUNDS REQUIREMENT.—As a condi9 tion of receiving a grant under this section, the nonprofit 

10 organization shall provide an amount of funds equal to 

11 not less than the amount of the grant. 

12 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated to the Secretary of Agri14 culture such amounts as may be necessary to carry out 

15 this section. 

16 SEC. 305. URBAN AGRICULTURAL WORKFORCE TRAINING 

17 PILOT PROGRAM. 

18 (a) AUTHORITY.—The Secretary of Agriculture, in 

19 consultation with the Secretary of Labor, shall award not 

20 more than 25 grants to eligible entities to develop and im21 plement urban agricultural workforce training programs. 

22 (b) GRANTS.— 

23 (1) APPLICATION.—An eligible entity seeking a 

24 grant under this section shall submit to the Sec25 retary of Agriculture an application containing— 


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1 (A) a description of the urban agricultural 

2 workforce training program such entity intends 

3 to develop and implement using grant funds; 

4 and 

5 (B) such other information as the Sec6 retary may require. 

7 (2) EQUAL AMOUNTS.—The Secretary of Agri8 culture shall award grants under this section in 

9 equal amounts. 

10 (c) TERM OF GRANTS; CONDITION.— 

11 (1) TERM.—The term of a grant awarded 

12 under this section shall be two years. 

13 (2) CONDITION.— 

14 (A) TWO-YEAR AVAILABILITY OF GRANT

15 FUNDS.—Each recipient of a grant under this 

16 section shall return to the Secretary of Agri17 culture any unused portion of such grant at the 

18 end of the two-year period beginning on the 

19 date the grant was awarded, together with any 

20 earnings on such unused portion. 

21 (B) AMOUNTS RETURNED.—The Secretary 

22 of Agriculture shall return to the general fund 

23 of the Treasury of the United States any 

24 amounts returned pursuant to subparagraph 

25 (A). 


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1 (d) USE OF GRANTS.— 

2 (1) IN GENERAL.—An eligible entity that re3 ceives a grant under this section may only use grant 

4 funds for the following purposes: 

5 (A) To develop and implement an urban 

6 agricultural workforce training program in ac7 cordance with paragraph (2). 

8 (B) To provide funding to trainees to de9 fray the start-up costs for new urban agricul10 tural businesses of such trainees. 

11 (2) URBAN AGRICULTURAL ACTIVITIES.—An 

12 urban agricultural workforce training program devel13 oped and implemented by an eligible entity receiving 

14 a grant under this section shall provide training for 

15 individuals to carry out any of the following urban 

16 agricultural activities: 

17 (A) Designing, constructing, and maintain18 ing biocellar structures. 

19 (B) Community gardening. 

20 (C) Urban farming. 

21 (D) Viticulture. 

22 (E) Agricultural education. 

23 (F) Rehabilitating land for agricultural 

24 use. 

25 (G) Developing farmers’ markets. 


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1 (H) Transporting fresh, local food. 

2 (I) Developing mobile pantries for fresh 

3 produce. 

4 (3) LIMITATION.—Not less than 30 percent of 

5 the amount received through a grant awarded under 

6 this section shall be used to provide the funding de7 scribed in paragraph (1)(B). 

8 (e) DEFINITIONS.—In this section: 

9 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti10 ty’’ means— 

11 (A) a unit of general local government lo12 cated in an urban area (as defined by the Bu13 reau of the Census); 

14 (B) a tribal government; 

15 (C) an accredited college or university; or 

16 (D) a nonprofit organization. 

17 (2) STATE.—The term ‘‘State’’ includes, in ad18 dition to the several States of the United States, the 

19 Commonwealth of Puerto Rico, the District of Co20 lumbia, the Virgin Islands, Guam, American Samoa, 

21 and the Commonwealth of the Northern Mariana Is22 lands. 

23 (3) UNIT OF GENERAL LOCAL GOVERNMENT.— 

24 The term ‘‘unit of general local government’’ means 

25 any city, county, town, township, parish, village, or 


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1 other general purpose political subdivision of a 

2 State. 

3 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section 

5 $5,000,000 for each of fiscal years 2013 through 2017. 

6 SEC. 306. URBAN AGRICULTURE DEVELOPMENT GRANTS 

7 PROGRAM. 

8 (a) IN GENERAL.—The Secretary of Agriculture may 

9 make grants to persons to cover the cost of establishing 

10 or operating a farm, garden, or aquacultural or other facil11 ity, in an urban area, for the production of an agricultural 

12 or aquacultural product or the raising of livestock for sale 

13 exclusively in the urban area. 

14 (b) LIMITATIONS ON USE OF GRANT.—A person to 

15 whom a grant is made under subsection (a) shall not use 

16 the grant for any expense other than for community edu17 cational programming, transportation, equipment, utili18 ties, construction, rehabilitation of property, feed, or oper19 ating expenses (excluding salaries). 

20 (c) LIMITATIONS ON AUTHORIZATION OF APPRO21 PRIATIONS.—For grants under subsection (a), there are 

22 authorized to be appropriated to the Secretary of Agri23 culture not more than $8,000,000,000 for each fiscal year. 


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1 SEC. 307. CLEAN AND SAFE DRINKING WATER FOR URBAN 

2 AREAS AND WATERWAYS. 

3 Section 1234(c)(3)(B) of the Food Security Act of 

4 1985 (16 U.S.C. 3834(c)(3)(B)) is amended by inserting 

5 ‘‘, or the extent to which water quality in a metropolitan 

6 statistical area (as defined by the Director of the Office 

7 of Management and Budget) downstream from the land 

8 that is the subject of the contract offer may be improved’’ 

9 before the period at the end. 

10 SEC. 308. EXTENSION OF ASSISTANCE TO SOCIALLY DIS11 ADVANTAGED URBAN FARMERS AND RANCH12 ERS. 

13 (a) ELIGIBLE LAND.—Section 1240A(1)(B)(vi) of 

14 the Food Security Act of 1985 (16 U.S.C. 3839aa– 

15 1(1)(B)(vi)) is amended by inserting ‘‘urban agricultural 

16 land,’’ before ‘‘and agricultural land’’. 

17 (b) INCREASED PAYMENTS FOR CERTAIN PRO18 DUCERS.—Section 1240B(d)(4)(A) of the Food Security 

19 Act of 1985 (16 U.S.C. 3839aa–2(d)(4)(A)) is amended 

20 by inserting ‘‘, including a socially disadvantaged farmer 

21 engaged in farming in an urban area of 50,000 or more 

22 people,’’ before ‘‘or a beginning farmer or rancher,’’. 

23 (c) ASSISTANCE TO CERTAIN FARMERS OR RANCH24 ERS FOR CONSERVATION ACCESS.—Section 

25 1241(g)(1)(B) of the Food Security Act of 1985 (16 

26 U.S.C. 3841(g)(1)(B)) is amended by inserting ‘‘, includVerDate Mar 15 2010 20:14 Apr 17, 2012 Jkt 019200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\H4351.IH H4351

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1 ing socially disadvantaged farmers engaged in farming in 

2 an urban area of 50,000 or more people’’ before the period 

3 at the end. 

4 SEC. 309. URBAN ENTREPRENEUR AND MICROENTERPRISE 

5 ASSISTANCE PROGRAM. 

6 Subtitle D of the Consolidated Farm and Rural De7 velopment Act is amended by inserting after section 365 

8 (7 U.S.C. 2008) the following: 

9 ‘‘SEC. 366. URBAN ENTREPRENEUR AND MICROENTER10 PRISE ASSISTANCE PROGRAM. 

11 ‘‘(a) DEFINITIONS.—In this section: 

12 ‘‘(1) ECONOMICALLY DISADVANTAGED MICRO13 ENTREPRENEUR.—The term ‘economically disadvan14 taged microentrepreneur’ means an owner, majority 

15 owner, or developer of a microenterprise that has the 

16 ability to compete in the private sector but has been 

17 impaired because of diminished capital and credit 

18 opportunities, as compared to other microentre19 preneurs in the industry. 

20 ‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ 

21 has the meaning given the term in section 4 of the 

22 Indian Self-Determination and Education Assistance 

23 Act (25 U.S.C. 450b). 


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1 ‘‘(3) INTERMEDIARY.—The term ‘intermediary’ 

2 means a private, nonprofit entity that provides as3 sistance— 

4 ‘‘(A) to a microenterprise development or5 ganization; or 

6 ‘‘(B) for a microenterprise development 

7 program. 

8 ‘‘(4) LOW-INCOME INDIVIDUAL.—The term low9 income individual means an individual with an in10 come (adjusted for family size) of not more than the 

11 greatest of— 

12 ‘‘(A) 80 percent of median income of an 

13 area; 

14 ‘‘(B) 80 percent of the statewide non-met15 ropolitan area median income; or 

16 ‘‘(C) 80 percent of the national median in17 come. 

18 ‘‘(5) MICROCREDIT.—The term ‘microcredit’ 

19 means a business loan or loan guarantee of not more 

20 than $50,000 that is provided to an urban entre21 preneur. 

22 ‘‘(6) MICROENTERPRISE.—The term ‘microen23 terprise’ means— 

24 ‘‘(A) a sole proprietorship; or 


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1 ‘‘(B) a business entity with not more than 

2 10 full-time-equivalent employees. 

3 ‘‘(7) MICROENTERPRISE DEVELOPMENT ORGA4 NIZATION.— 

5 ‘‘(A) IN GENERAL.—The term ‘microenter6 prise development organization’ means a pri7 vate, nonprofit entity that— 

8 ‘‘(i) provides training and technical 

9 assistance to urban entrepreneurs; and 

10 ‘‘(ii) facilitates access to capital or an11 other service described in subsection (b) 

12 for urban entrepreneurs. 

13 ‘‘(B) INCLUSIONS.—The term ‘microenter14 prise development organization’ includes an or15 ganization described in subparagraph (A) with 

16 a demonstrated record of delivering services to 

17 economically disadvantaged microentrepreneurs, 

18 or an effective plan to develop a program to de19 liver microenterprise services to urban entre20 preneurs effectively, as determined by the Sec21 retary. 

22 ‘‘(8) MICROENTERPRISE DEVELOPMENT PRO23 GRAM.—The term ‘microenterprise development or24 ganization’ means a program administered by an or25 ganization serving an urban area. 


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1 ‘‘(9) MICROENTREPRENEUR.—The term ‘micro2 entrepreneur’ means the owner, operator, or devel3 oper of a microenterprise. 

4 ‘‘(10) PROGRAM.—The term ‘program’ means 

5 the urban entrepreneur and microenterprise program 

6 established under subsection (b)(1). 

7 ‘‘(11) QUALIFIED ORGANIZATION.—The term 

8 ‘qualified organization’ means— 

9 ‘‘(A) a microenterprise development orga10 nization or microenterprise development pro11 gram that has a demonstrated record of deliv12 ering microenterprise services to urban entre13 preneurs, or an effective plan to develop a pro14 gram to deliver microenterprise services to 

15 urban entrepreneurs effectively, as determined 

16 by the Secretary; 

17 ‘‘(B) an intermediary that has a dem18 onstrated record of delivery assistance to micro19 enterprise development organizations or micro20 enterprise development programs; 

21 ‘‘(C) a microenterprise development orga22 nization or microenterprise development pro23 gram that serves urban entrepreneurs; 

24 ‘‘(D) an Indian tribe, the tribal govern25 ment of which certifies to the Secretary that no 


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1 microenterprise development organization or 

2 microenterprise development program exists 

3 under the jurisdiction of the Indian tribe; 

4 ‘‘(E) a group of 2 or more organizations or 

5 Indian tribes described in any of subparagraphs 

6 (A) through (D) that agree to act jointly as a 

7 qualified organization under this section; or 

8 ‘‘(F) for purposes of subsection (b), a pub9 lic college or university. 

10 ‘‘(12) URBAN AREA.—The term ‘urban area’ 

11 means any community that is urban in character 

12 and has— 

13 ‘‘(A) a population of more than 25,000 in14 dividuals; or 

15 ‘‘(B) an average population density of at 

16 least 1,000 individuals per square mile. 

17 ‘‘(13) URBAN CAPACITY BUILDING SERVICE.— 

18 The term ‘urban capacity building service’ means a 

19 service provided to an organization that— 

20 ‘‘(A) is, or is in the process of becoming, 

21 a microenterprise development organization or 

22 microenterprise development program; and 

23 ‘‘(B) serves urban areas for the purpose of 

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1 vide training, technical assistance, and other re2 lated services to urban entrepreneurs. 

3 ‘‘(14) URBAN ENTREPRENEUR.—The term 

4 ‘urban entrepreneur’ means a microentrepreneur, or 

5 prospective microentrepreneur— 

6 ‘‘(A) the principal place of business of 

7 which is in a urban area; and 

8 ‘‘(B) that is unable to obtain sufficient 

9 training, technical assistance, or microcredit 

10 elsewhere, as determined by the Secretary. 

11 ‘‘(15) SECRETARY.—The term ‘Secretary’ 

12 means the Secretary of Agriculture, acting through 

13 the Rural Business-Cooperative Service. 

14 ‘‘(16) TRIBAL GOVERNMENT.—The term ‘tribal 

15 government’ means the governing body of an Indian 

16 tribe. 

17 ‘‘(b) URBAN ENTREPRENEURSHIP AND MICROEN18 TERPRISE PROGRAM.— 

19 ‘‘(1) ESTABLISHMENT.—The Secretary shall es20 tablish an urban entrepreneurship and microenter21 prise program. 

22 ‘‘(2) PURPOSE.—The purpose of the program 

23 shall be to provide low-income individuals and mod24 erate-income individuals with— 


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1 ‘‘(A) the skills necessary to establish new 

2 small businesses in urban areas; and 

3 ‘‘(B) continuing technical and financial as4 sistance as individuals and business starting or 

5 operating small businesses. 

6 ‘‘(3) GRANTS.— 

7 ‘‘(A) IN GENERAL.—The Secretary may 

8 make a grant under the program to a qualified 

9 organization— 

10 ‘‘(i) to provide training, operational 

11 support, or an urban capacity building 

12 service to a qualified organization to assist 

13 the qualified organization in developing mi14 croenterprise training, technical assistance, 

15 market development assistance, and other 

16 related services, primarily for business with 

17 5 or fewer full-time-equivalent employees; 

18 ‘‘(ii) to assist in researching and de19 veloping the best practices in delivering 

20 training, technical assistance, and micro21 credit tourban entrepreneurs; and 

22 ‘‘(iii) to carry out such other projects 

23 and activities as the Secretary determines 

24 to be consistent with the purposes of this 

25 section. 


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1 ‘‘(B) SUBGRANTS.—Subject to such regu2 lations as the Secretary may promulgate, a 

3 qualified organization that receives a grant 

4 under this paragraph may use the grant to pro5 vide assistance to other qualified organizations, 

6 such as small or emerging qualified organiza7 tions. 

8 ‘‘(C) DIVERSITY.—In making grants under 

9 this paragraph, the Secretary shall ensure, to 

10 the maximum extent practicable, that grant re11 cipients include qualified organizations— 

12 ‘‘(i) of varying sizes; and 

13 ‘‘(ii) that serve racially- and eth14 nically-diverse populations. 

15 ‘‘(D) COST SHARING.— 

16 ‘‘(i) FEDERAL SHARE.—The Federal 

17 share of the cost of a project carried out 

18 using funds from a grant made under this 

19 paragraph shall be 75 percent. 

20 ‘‘(ii) FORM OF NON-FEDERAL

21 SHARE.—The non-Federal share of the 

22 cost of a project described in clause (i) 

23 may be provided— 


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1 ‘‘(I) in cash (including through 

2 fees, grants (including community de3 velopment block grants), and gifts); or 

4 ‘‘(II) in kind. 

5 ‘‘(4) URBAN MICROLOAN PROGRAM.— 

6 ‘‘(A) ESTABLISHMENT.—In carrying out 

7 the program, the Secretary may carry out an 

8 urban microloan program. 

9 ‘‘(B) PURPOSE.—The purpose of the 

10 urban microloan program shall be to provide 

11 technical and financial assistance to sole propri12 etorships and small businesses located in urban 

13 areas with a particular focus on those busi14 nesses with 5 or fewer full-time equivalent em15 ployees. 

16 ‘‘(C) AUTHORITY OF SECRETARY.—In car17 rying out the urban microloan program, the 

18 Secretary may— 

19 ‘‘(i) make direct loans to qualified or20 ganizations for the purpose of making 

21 short-term, fixed interest rate microloans 

22 to startup, newly established, and growing 

23 urban microbusiness concerns; and 

24 ‘‘(ii) in conjunction with those loans, 

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1 graph (E) to those qualified organizations 

2 for the purpose of providing intensive mar3 keting, management, and technical assist4 ance to small business concerns that are 

5 borrowers under this paragraph. 

6 ‘‘(D) LOAN DURATION; INTEREST RATES; 

7 CONDITIONS.— 

8 ‘‘(i) LOAN DURATION.—A loan made 

9 by the Secretary under this paragraph 

10 shall be for a term of 20 years. 

11 ‘‘(ii) APPLICABLE INTEREST RATES.— 

12 A loan made by the Secretary under this 

13 paragraph to a qualified organization shall 

14 bear an annual interest rate of at least 1 

15 percent. 

16 ‘‘(iii) DEFERRAL OF INTEREST AND

17 PRINCIPAL.—The Secretary may permit 

18 the deferral of payments, for principal and 

19 interest, on a loan made under this para20 graph for a period of not more than 2 

21 years, beginning on the date on which the 

22 loan was made. 

23 ‘‘(E) GRANT AMOUNTS.— 

24 ‘‘(i) IN GENERAL.—Except as other25 wise provided in this section, each qualified 


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1 organization that receives a loan under this 

2 paragraph shall be eligible to receive a 

3 grant to provide marketing, management, 

4 and technical assistance to small business 

5 concerns that are borrowers or potential 

6 borrowers under this subsection. 

7 ‘‘(ii) MAXIMUM AMOUNT OF GRANT

8 FOR MICROENTERPRISE DEVELOPMENT

9 ORGANIZATIONS.—Each microenterprise 

10 development organization that receives a 

11 loan under this paragraph shall receive an 

12 annual grant in an amount equal to not 

13 more than 25 percent of the total out14 standing balance of loans made to the mi15 croenterprise development organization 

16 under this paragraph, as of the date of 

17 provision of the grant. 

18 ‘‘(iii) MATCHING REQUIREMENT.— 

19 ‘‘(I) IN GENERAL.—As a condi20 tion of any grant made to a qualified 

21 organization under this subparagraph, 

22 the Secretary shall require the quali23 fied organization to match not less 

24 than 15 percent of the total amount 

25 of the grant. 


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1 ‘‘(II) SOURCES.—In addition to 

2 cash from non-Federal sources, a 

3 matching share provided by the quali4 fied organization may include indirect 

5 costs or in-kind contributions funded 

6 under non-Federal programs. 

7 ‘‘(c) ADMINISTRATIVE EXPENSES.—Not more than 

8 10 percent of assistance received by a qualified organiza9 tion for a fiscal year under this section may be used to 

10 pay administrative expenses. 

11 ‘‘(d) FUNDING.— 

12 ‘‘(1) IN GENERAL.—Not later than 30 days 

13 after the date of enactment of this section, and on 

14 October 1, 2012, and each October 1 thereafter 

15 through October 1, 2016, out of any funds in the 

16 Treasury not otherwise appropriated, the Secretary 

17 of the Treasury shall transfer to the Secretary to 

18 carry out this section $50,000,000, to remain avail19 able until expended. 

20 ‘‘(2) ALLOCATION OF FUNDS.—Of the amount 

21 made available by paragraph (1) for each fiscal 

22 year— 

23 ‘‘(A) not less than $30,000,000 shall be 

24 available for use in carrying out subsection 

25 (b)(3); and 


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1 ‘‘(B) not less than $20,000,000 shall be 

2 available for use in carrying out subsection 

3 (b)(4), of which not more than $7,000,000 shall 

4 be used to support direct loans. 

5 ‘‘(C) RECEIPT AND ACCEPTANCE.—The 

6 Secretary shall be entitled to receive, shall ac7 cept, and shall use to carry out this section the 

8 funds transferred under paragraph (1), without 

9 further appropriation.’’. 

10 SEC. 310. LOCAL FARM BUSINESS AND MARKET GARDEN 

11 COMPETITIVE LOAN PROGRAM. 

12 (a) DEFINITIONS.—In this section: 

13 (1) AGRICULTURAL COMMODITY.—The term 

14 ‘‘agricultural commodity’’ has the meaning given the 

15 term in section 102 of the Agricultural Trade Act of 

16 1978 (7 U.S.C. 5602). 

17 (2) ELIGIBLE LENDING ENTITY.—The term 

18 ‘‘eligible lending entity’’ means a government agen19 cy, nonprofit organization, or any other entity that 

20 the Secretary designates to finance and facilitate the 

21 development of a local farm business project or mar22 ket garden project. 

23 (3) ELIGIBLE PRODUCER.—The term ‘‘eligible 

24 producer’’ means an individual or group of individVerDate Mar 15 2010 20:14 Apr 17, 2012 Jkt 019200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\H4351.IH H4351

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1 uals who carry out a local farm business project or 

2 market garden project. 

3 (4) FOOD DESERT.—The term ‘‘food desert’’ 

4 has the meaning given the term in section 7527(a) 

5 of the Food, Conservation, and Energy Act of 2008 

6 (Public Law 110–246; 122 Stat. 2039). 

7 (5) LOCAL FARM BUSINESS PROJECT.—The 

8 term ‘‘local farm business project’’ means a project 

9 on a farm or ranch that— 

10 (A) is for the production of an agricultural 

11 commodity for local markets in the local service 

12 area; and 

13 (B) is located on 1 or more property lots, 

14 the cumulative acreage of which shall be more 

15 than 1 acre. 

16 (6) LOCAL SERVICE AREA.—The term ‘‘local 

17 service area’’ means an area consisting of a certain 

18 mile radius (as determined by the Secretary) from 

19 the physical location of production by an eligible 

20 local farm business or market garden project. 

21 (7) MARKET GARDEN PROJECT.—The term 

22 ‘‘market garden project’’ means a project that— 

23 (A) is for the production of an agricultural 

24 commodity for local markets in the local service 

25 area; and 


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1 (B) is located on 1 or more property lots 

2 (regardless of the population density of the area 

3 in which the property lots are located), the cu4 mulative acreage of which shall be more than 

1 5 ⁄4 acre. 

6 (8) REVOLVING LOAN FUND.—The term ‘‘re7 volving loan fund’’ means a revolving loan fund es8 tablished by an eligible lending entity as described in 

9 subsection (c). 

10 (9) SECRETARY.—The term ‘‘Secretary’’ means 

11 the Secretary of Agriculture. 

12 (10) SOCIALLY DISADVANTAGED FARMER OR

13 RANCHER.—The term ‘‘socially disadvantaged farm14 er or rancher’’ has the meaning given the term in 

15 section 355(e) of the Consolidated Farm and Rural 

16 Development Act (7 U.S.C. 2003(e)). 

17 (11) SPECIALTY CROP.—The term ‘‘specialty 

18 crop’’ has the meaning given the term in section 3 

19 of the Specialty Crops Competitiveness Act of 2004 

20 (7 U.S.C. 1621 note; Public Law 108–465). 

21 (12) SUSTAINABLE AGRICULTURE.—The term 

22 ‘‘sustainable agriculture’’ has the meaning given the 

23 term in section 1404 of the National Agricultural 

24 Research, Extension, and Teaching Policy Act of 

25 1977 (7 U.S.C. 3103). 


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1 (b) COMPETITIVE LOAN PROGRAM FOR ELIGIBLE

2 LENDING ENTITIES.— 

3 (1) IN GENERAL.—To support new entrepre4 neurship and job creation, the Secretary shall estab5 lish a local farm business and market garden com6 petitive loan program under which the Secretary 

7 shall make available to eligible lending entities loans 

8 to develop revolving loan funds to assist— 

9 (A) eligible producers in establishing local 

10 farm business projects or market garden 

11 projects that will locally produce fresh foods; 

12 and 

13 (B) local farm business projects and mar14 ket garden projects to create local employment 

15 opportunities by— 

16 (i) increasing farm and garden income 

17 by connecting producers and consumers; 

18 (ii) creating more reliable local food 

19 systems; 

20 (iii) diversifying food production; 

21 (iv) increasing consumer access to 

22 fresh, local healthful foods produced by 

23 local farms, ranches, and market gardens 

24 in urban, suburban, or rural areas; 


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1 (v) supporting nutrition education 

2 that incorporates participation of school 

3 children in farm- and garden-based agri4 cultural education activities; and 

5 (vi) preserving farmland. 

6 (2) ELIGIBILITY.—To be eligible to receive a 

7 loan under the program established under paragraph 

8 (1), an eligible lending entity shall submit to the 

9 Secretary an application at such time, in such form, 

10 and containing such information as the Secretary 

11 may require. 

12 (3) SELECTION CRITERIA.— 

13 (A) APPROVAL.—Not later than 1 year 

14 after the date of enactment of this section and 

15 in accordance with this paragraph, the Sec16 retary shall, on a competitive basis, begin as17 sessing and approving such applications re18 ceived under paragraph (2) as the Secretary 

19 considers appropriate. 

20 (B) CRITERIA.—In considering a loan ap21 plication received under paragraph (2), the Sec22 retary shall— 

23 (i) evaluate the extent to which the 

24 application demonstrates the ability of the 

25 eligible lending entity— 


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1 (I) to manage, market, and ad2 minister a revolving loan fund; 

3 (II) to assist local eligible pro4 ducers to successfully meet local serv5 ice area opportunities; 

6 (III) to work with partners to 

7 provide technical support to eligible 

8 local farm business projects and mar9 ket garden projects; 

10 (IV) to recruit, educate, and as11 sist local producers to advance local 

12 farming and ranching opportunities 

13 that meet local service area needs; 

14 and 

15 (V) subject to paragraph (5), to 

16 provide matching funds in the form of 

17 cash or in-kind services to properly 

18 implement and manage the revolving 

19 loan fund; 

20 (ii) assess— 

21 (I) the number and type of local 

22 farm business projects and market 

23 garden projects to be affected by local 

24 farm business project loan funding; 


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1 (II) the number of new jobs and 

2 eligible local farm business projects 

3 and market garden projects to be cre4 ated by the revolving loan fund; 

5 (III) the ability of an eligible 

6 local farm business project or market 

7 garden project— 

8 (aa) to preserve farmland 

9 through economically and envi10 ronmentally sustainable agri11 culture practices (as determined 

12 by the Secretary); and 

13 (bb) to serve schools and in14 stitutions with a high proportion 

15 of students who are eligible for 

16 free or reduced price lunches 

17 under the Richard B. Russell Na18 tional School Lunch Act (42 

19 U.S.C. 1751 et seq.); 

20 (IV) the degree to which an eligi21 ble local farm business project or mar22 ket garden project— 

23 (aa) incorporates experien24 tial nutrition education; 


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1 (bb) demonstrates the poten2 tial positive economic impact for 

3 the local economy; 

4 (cc) demonstrates environ5 mentally sustainable agriculture 

6 practices; and 

7 (dd) demonstrates a collabo8 ration between schools or edu9 cational institutions, nongovern10 mental organizations, producer 

11 groups, and other community 

12 and business partners; and 

13 (V) the market opportunity for 

14 eligible local farm business projects or 

15 market garden projects to sell prod16 ucts in the local community; and 

17 (iii) consider any other factors that 

18 the Secretary determines to be appropriate. 

19 (C) REGIONAL BALANCE.—To the max20 imum extent practicable, in awarding loans 

21 under this section, the Secretary shall ensure 

22 that loan recipients— 

23 (i) are geographically diverse; 


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1 (ii) serve clients targeted by the loan 

2 program, including socially disadvantaged 

3 farmers or ranchers; 

4 (iii) serve clients located in areas with 

5 a variety of population densities, including 

6 rural, suburban, urban, and tribal areas; 

7 and 

8 (iv) identify and serve food deserts 

9 within the local service area. 

10 (D) PRIORITY.— 

11 (i) IN GENERAL.—In considering loan 

12 applications received under paragraph (2), 

13 the Secretary shall give priority to applica14 tions that demonstrate the ability and will15 ingness of the eligible lending entity— 

16 (I) to serve clients targeted by 

17 the program, including, as appro18 priate, socially disadvantaged farmers 

19 or ranchers; 

20 (II) to assist with the financial 

21 management aspects of specialty crop 

22 farming and other types of local agri23 cultural projects; and 

24 (III) to address the nutritional 

25 needs of an underserved area, as deVerDate Mar 15 2010 20:14 Apr 17, 2012 Jkt 019200 PO 00000 Frm 00084 Fmt 6652 Sfmt 6201 E:\BILLS\H4351.IH H4351

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1 termined in accordance with clause 

2 (ii). 

3 (ii) UNDERSERVED AREAS.—In deter4 mining whether an area is an underserved 

5 area, the Secretary shall consider— 

6 (I) population density; 

7 (II) below-average supermarket 

8 density or sales; 

9 (III) the rate of ownership of 

10 motor vehicles; and 

11 (IV) geographical or physical 

12 barriers, such as highways, moun13 tains, major parks, or bodies of water. 

14 (4) LOAN TERMS FOR ELIGIBLE LENDING ENTI15 TIES.— 

16 (A) IN GENERAL.—For each fiscal year for 

17 which the Secretary makes a loan to an eligible 

18 lending entity under this subsection, the loan 

19 shall— 

20 (i) be in an amount that is not less 

21 than $200,000 and not more than 

22 $1,000,000; and 

23 (ii) be used by the eligible lending en24 tity to establish a revolving loan fund to 


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1 provide loans for local farm business 

2 projects or market garden projects. 

3 (B) TERM.—The term of a loan under this 

4 subsection shall not exceed 20 years from the 

5 date on which the loan is finalized. 

6 (C) LOAN FINANCING TERMS.—In making 

7 loans to eligible lending entities under this sub8 section, the Secretary shall— 

9 (i) set the rate of interest at not more 

10 than 2 percent per year; and 

11 (ii) ensure that no payments are due 

12 on the loan during the first 2 years of the 

13 loan. 

14 (5) MATCHING FUNDS.—The Secretary may not 

15 require an eligible lending entity that receives a loan 

16 under this subsection to provide, from non-Federal 

17 sources, in cash or in-kind, the cost of carrying out 

18 activities under the loan. 

19 (6) ADMINISTRATIVE EXPENSES.— 

20 (A) IN GENERAL.—Each eligible lending 

21 entity that receives a loan under this subsection 

22 shall be eligible additionally to receive a 1-time 

23 grant for purposes described in subparagraph 

24 (B) in an amount that is not more than the 

25 lesser of— 


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1 (i) 10 percent of the total amount of 

2 the loan received by the eligible lending en3 tity; or 

4 (ii) $50,000. 

5 (B) USE OF GRANT FUNDS.—Grant funds 

6 received under subparagraph (A) may be used 

7 by the eligible lending entity only to pay man8 agement and technical support costs associated 

9 with the loan. 

10 (C) INTEREST RATE.—If an eligible lend11 ing entity receives a grant under subparagraph 

12 (A), the eligible lending entity may not set the 

13 interest rate of loans made by the eligible lend14 ing entity to local farm business projects or 

15 market garden projects at more than 3 percent 

16 per year. 

17 (7) PROGRESS REPORTS.— 

18 (A) IN GENERAL.—Not later than 90 days 

19 after the last day of each fiscal year, each eligi20 ble lending entity that has a loan under this 

21 subsection shall submit to the Secretary a re22 port that includes— 

23 (i) an evaluation of the progress of 

24 the revolving loan fund carried out by the 

25 eligible lending entity; 


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1 (ii) a description of the revolving loan 

2 fund, including information on all loans 

3 made to local farm business projects or 

4 market garden projects; 

5 (iii) a status update for the local farm 

6 business projects and market garden 

7 projects funded by the revolving loan fund 

8 that describes— 

9 (I) the amount of food produced; 

10 (II) the amount of revenue gen11 erated; and 

12 (III) the number of new and re13 tained jobs; and 

14 (iv) such other information as the 

15 Secretary may require. 

16 (B) REPORTS BY THE SECRETARY.—Not 

17 later than 3 years after the date of enactment 

18 of this section, the Secretary shall submit to the 

19 Committee on Agriculture of the House of Rep20 resentatives and the Committee on Agriculture, 

21 Nutrition, and Forestry of the Senate a report 

22 that describes the results and findings of the 

23 loan program carried out under this subsection. 

24 (8) ANNUAL REVIEW.—The Secretary shall con25 duct an annual review of the financial records of 


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1 each eligible lending entity that receives funding 

2 under this subsection— 

3 (A) to assess the financial soundness of the 

4 eligible lending entity; and 

5 (B) to determine the effective use of loan 

6 and grant funds made available to the eligible 

7 lending entity under this subsection. 

8 (c) REVOLVING LOAN FUND.— 

9 (1) ESTABLISHMENT AND PURPOSE.—Each eli10 gible lending entity that receives a loan under sub11 section (b) shall use the funds to establish a revolv12 ing loan fund to provide loans to eligible producers 

13 in the local service area. 

14 (2) ELIGIBLE ACTIVITIES.—Loans made by an 

15 eligible lending entity under this subsection shall be 

16 used by the eligible producer to carry out eligible ac17 tivities in the local service area, including— 

18 (A) to carry out production projects for 

19 value-added food products; 

20 (B) to provide working capital for general 

21 operational costs of the local farm business 

22 project or market garden project; 

23 (C) to purchase project-related equipment; 

24 (D) to purchase seeds, plants, and fruit or 

25 nut trees; 


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1 (E) to purchase livestock, poultry, and 

2 breeding stock; 

3 (F) to construct and maintain irrigation 

4 systems; 

5 (G) to construct buildings (including 

6 barns, sheds, greenhouses, and dry and cold 

7 storage sheds) necessary to support production; 

8 (H) to lease, lease to purchase, or directly 

9 purchase farmland or make a down payment on 

10 an accepted purchase offer for farmland; or 

11 (I) to carry out any other activity that the 

12 Secretary determines to be in accordance with 

13 this section. 

14 (3) LOAN CONDITIONS.— 

15 (A) IN GENERAL.—To be eligible to receive 

16 a loan under this section from an eligible lend17 ing entity, an eligible producer shall— 

18 (i) supply a minimum level of support 

19 of the cost of the local farm business 

20 project, market garden project, or institu21 tion costs, as determined by the Secretary; 

22 and 

23 (ii) submit to the eligible lending enti24 ty— 


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1 (I) documentation of, as appro2 priate— 

3 (aa) a long-term land lease 

4 contract granting the right to 

5 perform local production agri6 culture; 

7 (bb) a building lease; or 

8 (cc) a deed of property own9 ership; and 

10 (II) a conservation plan and a 

11 sound business plan that is likely to 

12 result in a profitable business with 

13 sustainable employment for the eligi14 ble producer and any employees. 

15 (B) SECRETARIAL APPROVAL; GUAR16 ANTEE.— 

17 (i) APPROVAL.—Before an eligible 

18 lending entity may make a loan or package 

19 of loans to an eligible producer under this 

20 section, the Secretary shall approve the 

21 loan or package of loans in accordance 

22 with the requirements of this section. 

23 (ii) LOAN GUARANTEE.—The Sec24 retary shall guarantee not more than 85 


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1 percent of the principal and interest on 

2 each loan approved under clause (i). 

3 (4) PRIORITY.—In making loans under this 

4 subsection, the eligible lending entity shall give pri5 ority to eligible producers that are operated by, or 

6 that support— 

7 (A) qualified beginning farmers or ranch8 ers (as defined in section 343(a) of the Consoli9 dated Farm and Rural Development Act (7 

10 U.S.C. 1991(a))) and socially disadvantaged 

11 farmers or ranchers; 

12 (B) existing eligible producers, whether 

13 owners or tenants, who use loan funds to con14 vert to agricultural production systems ap15 proved by the Secretary; 

16 (C) eligible producers who use loan funds 

17 to build conservation structures or carry out 

18 conservation practices; 

19 (D) eligible producers who will supply 

20 fresh and locally produced food to underserved 

21 communities; and 

22 (E) existing eligible producers of agri23 culture commodities who want to diversify farm, 

24 ranch, or market garden production and in25 come. 


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1 (5) LOAN TERMS FOR ELIGIBLE PRODUCERS.— 

2 (A) IN GENERAL.—A loan made by an eli3 gible lending entity to an eligible producer 

4 under this subsection shall be in an amount 

5 that is— 

6 (i) in the case of a local farm business 

7 project, not less than $5,000 and not more 

8 than $100,000; and 

9 (ii) in the case of a market garden 

10 project, not less than $3,000 and not more 

11 than $50,000. 

12 (B) TERM.—The term of a loan under this 

13 subsection shall not exceed— 

14 (i) in the case of a loan in an amount 

15 that is not more than $35,000, 12 years 

16 from the date on which the loan is final17 ized; and 

18 (ii) in the case of all other loans, 20 

19 years from the date on which the loan is 

20 finalized. 

21 (C) LOAN FINANCING TERMS.—In making 

22 loans under this subsection, an eligible lending 

23 entity shall— 

24 (i) set the rate of interest at not more 

25 than 3 percent per year; 


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1 (ii) ensure that no payments are due 

2 on the loan during the first 9 months of 

3 the loan; and 

4 (iii) ensure that only interest is due 

5 on the loan during the period beginning on 

6 the last day of the period described in 

7 clause (ii) and ending 24 months after the 

8 issuance of the loan. 

9 (D) LOAN FORGIVENESS.—If an eligible 

10 producer has received a loan under this section 

11 to carry out a local farm business project or 

12 market garden project, and after 3 years the 

13 Secretary determines that the project is suc14 cessful, the Secretary may offer to forgive— 

15 (i) up to 10 percent of the out16 standing amount of the loan; and 

17 (ii) in the case of an eligible producer 

18 supporting sustainable agriculture prac19 tices, up to 20 percent of the outstanding 

20 amount of the loan. 

21 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated to the Secretary for 

23 each of fiscal years 2012 through 2022— 

24 (1) $20,000,000 to provide loans and grants 

25 under subsection (b); and 


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1 (2) $100,000 for the administrative costs of 

2 carrying out this section. 

3 TITLE IV—ERADICATING 

4 HUNGER 

5 SEC. 401. WEEKENDS AND HOLIDAYS WITHOUT HUNGER. 

6 Section 18 of the Richard B. Russell National School 

7 Lunch Act (42 U.S.C. 1769) is amended by adding at the 

8 end the following: 

9 ‘‘(l) WEEKENDS AND HOLIDAYS WITHOUT HUN10 GER.— 

11 ‘‘(1) DEFINITIONS.—In this subsection: 

12 ‘‘(A) AT-RISK SCHOOL CHILD.—The term 

13 ‘at-risk school child’ has the meaning given the 

14 term in section 17(r)(1). 

15 ‘‘(B) ELIGIBLE INSTITUTION.— 

16 ‘‘(i) IN GENERAL.—The term ‘eligible 

17 institution’ means a public or private non18 profit institution that is determined by the 

19 Secretary to be able to meet safe food stor20 age, handling, and delivery standards es21 tablished by the Secretary. 

22 ‘‘(ii) INCLUSIONS.—The term ‘eligible 

23 institution’ includes— 

24 ‘‘(I) an elementary or secondary 

25 school or school food service authority; 


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1 ‘‘(II) a food bank or food pantry; 

2 ‘‘(III) a homeless shelter; and 

3 ‘‘(IV) such other type of emer4 gency feeding agency as is approved 

5 by the Secretary. 

6 ‘‘(2) ESTABLISHMENT.—Subject to the avail7 ability of appropriations provided in advance in an 

8 appropriations Act specifically for the purpose of 

9 carrying out this subsection, the Secretary shall es10 tablish a program under which the Secretary shall 

11 provide commodities, on a competitive basis, to eligi12 ble institutions to provide nutritious food to at-risk 

13 children on weekends and during extended school 

14 holidays during the school year. 

15 ‘‘(3) ELIGIBILITY.— 

16 ‘‘(A) IN GENERAL.—To be eligible to re17 ceive commodities under this subsection, an eli18 gible institution shall submit an application to 

19 the Secretary at such time, in such manner, 

20 and containing such information as the Sec21 retary may determine. 

22 ‘‘(B) PLAN.—An application under sub23 paragraph (A) shall include the plan of the eli24 gible institution for the distribution of nutriVerDate Mar 15 2010 20:14 Apr 17, 2012 Jkt 019200 PO 00000 Frm 00096 Fmt 6652 Sfmt 6201 E:\BILLS\H4351.IH H4351

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1 tious foods to at-risk school children, includ2 ing— 

3 ‘‘(i) methods of food service delivery 

4 to at-risk school children; 

5 ‘‘(ii) assurances that children receiv6 ing foods under the project will not be pub7 licly separated or overtly identified; 

8 ‘‘(iii) lists of the types of food to be 

9 provided under the project and provisions 

10 to ensure food quality and safety; 

11 ‘‘(iv) information on the number of 

12 at-risk school children to be served and the 

13 per-child cost of providing the children 

14 with food; and 

15 ‘‘(v) such other information as the 

16 Secretary determines to be necessary to as17 sist the Secretary in evaluating projects 

18 that receive commodities under this sub19 section. 

20 ‘‘(4) PRIORITY.—In selecting applications under 

21 this subsection, the Secretary shall give priority to 

22 eligible institutions that— 

23 ‘‘(A) have on-going programs and experi24 ence serving populations with significant pro25 portions of at-risk school children; 


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1 ‘‘(B) have a good record of experience in 

2 food delivery and food safety systems; 

3 ‘‘(C) maintain high quality control, ac4 countability, and recordkeeping standards; 

5 ‘‘(D) provide children with readily 

6 consumable food of high nutrient content and 

7 quality; 

8 ‘‘(E) demonstrate cost efficiencies and the 

9 potential for obtaining supplemental funding 

10 from non-Federal sources to carry out projects; 

11 and 

12 ‘‘(F) demonstrate the ability to continue 

13 projects for the full approved term of the pilot 

14 project period. 

15 ‘‘(5) GUIDELINES.— 

16 ‘‘(A) IN GENERAL.—The Secretary shall 

17 issue guidelines containing the criteria for 

18 projects to receive commodities under this sec19 tion. 

20 ‘‘(B) INCLUSIONS.—The guidelines shall, 

21 to the maximum extent practicable within the 

22 funds available and applications submitted, take 

23 into account— 

24 ‘‘(i) geographical variations in project 

25 locations to include qualifying projects in 


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1 rural, urban, and suburban areas with high 

2 proportions of families with at-risk school 

3 children; 

4 ‘‘(ii) different types of projects that 

5 offer nutritious foods on weekends and 

6 during school holidays to at-risk school 

7 children; and 

8 ‘‘(iii) institutional capacity to collect, 

9 maintain, and provide statistically valid in10 formation necessary for the Secretary— 

11 ‘‘(I) to analyze and evaluate the 

12 results of the pilot project; and 

13 ‘‘(II) to make recommendations 

14 to Congress. 

15 ‘‘(6) EVALUATION.— 

16 ‘‘(A) INTERIM EVALUATION.—Not later 

17 than November 30, 2013, the Secretary shall 

18 complete an interim evaluation of the pilot pro19 gram carried out under this subsection. 

20 ‘‘(B) FINAL REPORT.—Not later than De21 cember 31, 2015, the Secretary shall submit to 

22 Congress a final report that contains— 

23 ‘‘(i) an evaluation of the pilot pro24 gram carried out under this subsection; 

25 and 


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1 ‘‘(ii) any recommendations of the Sec2 retary for legislative action. 

3 ‘‘(7) FUNDING.— 

4 ‘‘(A) AUTHORIZATION OF APPROPRIA5 TIONS.—There is authorized to be appropriated 

6 to carry out this section such sums as are nec7 essary, to remain available until expended. 

8 ‘‘(B) AVAILABILITY OF FUNDS.—Not more 

9 than 3 percent of the funds made available 

10 under subparagraph (A) may be used by the 

11 Secretary for expenses associated with review of 

12 the operations and evaluation of the projects 

13 carried out under this subsection.’’. 

14 SEC. 402. EXPANSION AND MODERNIZATION OF THE COM15 MODITY SUPPLEMENTAL FOOD PROGRAM. 

16 Section 5 of the Agriculture and Consumer Protec17 tion Act of 1973 (7 U.S.C. 612c note) is amended— 

18 (1) in subsection (a)— 

19 (A) in paragraph (1) by striking ‘‘2008 

20 through 2012’’ and inserting ‘‘2013 through 

21 2017’’, and 

22 (B) in paragraph (2)(B) by striking ‘‘2004 

23 through 2012’’ and inserting ‘‘2013 through 

24 2017’’, and 


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1 (2) in subsection (g) by striking paragraph (2) 

2 and inserting the following: 

3 ‘‘(2) women, infants and children participating 

4 in the program as of the effective date of this para5 graph. 

6 The Secretary may not require the enrollment in the pro7 gram of women, infants, and children who are not partici8 pating in the program before the effective date of this sen9 tence.’’. 

10 SEC. 403. EXPANSION AND MODERNIZATION OF THE EMER11 GENCY FOOD ASSISTANCE PROGRAM. 

12 (a) AMENDMENTS TO THE FOOD AND NUTRITION

13 ACT OF 2008.—Section 27(a)(2) of the Food and Nutri14 tion Act of 2008 (7 U.S.C. 2036(a)(2)) is amended— 

15 (1) by striking subparagraphs (A) and (B) and 

16 inserting the following: 

17 ‘‘(A) for fiscal year 2013 through 2017, 

18 $350,000,000; plus $100,000,000 for each per19 centage point that unemployment exceeds the 

20 rate as of June 2008 (prorated such that each 

21 change of 0.1 percent shall result in a change 

22 in funding of $10,000,000). The unemployment 

23 rate from June of the immediately preceding 

24 fiscal year shall be used to compute change 

25 from June 2008. In any fiscal year, the amount 


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1 calculated in this subparagraph shall not be less 

2 than $350,000,000.’’, 

3 (2) in subparagraph (C)— 

4 (A) by striking ‘‘(C)’’ and inserting ‘‘(B)’’, 

5 (B) by striking ‘‘2010 through 2012’’ and 

6 inserting ‘‘2013 through 2017’’, 

7 (C) by striking ‘‘subparagraph (B)’’ and 

8 inserting ‘‘ subparagraph (A)’’, and 

9 (D) by striking the period at the end and 

10 inserting ‘‘; and’’, and 

11 (3) by adding at the end the following: 

12 ‘‘(C) of the total funds made available 

13 under subparagraphs (A) and (B), not less than 

14 $100,000,000 shall be to support State and 

15 local storage and distribution costs. In addition, 

16 each year States may transfer up to 5 percent 

17 of total funds provided for commodity pur18 chases into accounts used to fund storage and 

19 distribution costs at their discretion’’. 

20 (b) AMENDMENTS TO THE EMERGENCY FOOD AS21 SISTANCE ACT OF 1983.—The Emergency Food Assist22 ance Act of 1983 (7 U.S.C. 7501 et seq.) is amended— 

23 (1) in section 202 by adding at the end the fol24 lowing: 


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1 ‘‘(h) In addition to other considerations, including 

2 but not limited to the need to intervene in depressed do3 mestic agricultural markets, the Secretary shall consider 

4 the needs of States and demands on emergency food pro5 viders in making commodity purchase decisions.’’, and 

6 (2) in section 204 by striking ‘‘2008’’ and in7 serting ‘‘2013’’. 

8 (c) AUTHORITY TO USE SECTION 32 FUNDS TO RE9 SPOND TO SITUATIONS OF HIGH RATES OF FOOD INSE10 CURITY OR UNEMPLOYMENT.—The second sentence of 

11 section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) 

12 is amended in paragraph (2) by inserting after ‘‘low-in13 come groups’’ the following: ‘‘or in situations of high rates 

14 of food insecurity or unemployment,’’. 

15 SEC. 404. FOOD BANK EQUIPMENT AND TECHNOLOGY PRO16 GRAM. 

17 (a) AUTHORITY FOR PROGRAM.—The Secretary of 

18 Agriculture shall develop and carry out a food bank equip19 ment and technology program to make grants to eligible 

20 entities to be used within a 1-year period for the purchase 

21 of operating equipment and technology that increases the 

22 efficiency of a food bank. Eligible entities include non23 profit entities that operate food banks in urban areas. 

24 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

25 authorized to be appropriated to carry out this section 


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1 $10,000,000 for each of the fiscal years in the 3-year pe2 riod beginning on the October 1 of the 1st fiscal year that 

3 begins after the date of the enactment of this Act. 

4 TITLE V—GO GREEN 

5 SEC. 501. GREEN AND SUSTAINABLE SCHOOLS, MUSEUMS, 

6 AND LIBRARIES GRANT PROGRAM. 

7 (a) GRANT PROGRAM.—The Secretary of Agriculture, 

8 in consultation with the Secretary of Energy, shall estab9 lish a program to provide competitive grants to schools, 

10 museums, and libraries to increase energy efficiency. 

11 (b) CRITERIA.—In awarding grants under subsection 

12 (a), the Secretary of Agriculture shall target schools, mu13 seums, and libraries that are the most inefficient in the 

14 usage of energy and whose insulation, lighting, and equip15 ment would benefit most by being upgraded to insulation, 

16 lighting, and equipment that is more energy efficient. 

17 (c) USE OF FUNDS.—A school, museum, or library 

18 receiving a grant under subsection (a) shall use the funds 

19 received under such grant— 

20 (1) to increase energy efficiency through new 

21 construction, rehabilitation, expansion, and up22 grades; and 

23 (2) for organized programs, events, and initia24 tives to educate employees of schools, museums, or 

25 libraries on how to become more energy efficient. 


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1 (d) DEFINITIONS.—In this section: 

2 (1) MUSEUM.—The term ‘‘museum’’ means a 

3 museum accredited by the American Association of 

4 Museums. 

5 (2) SCHOOL.—The term ‘‘school’’ means an ele6 mentary school or a secondary school, as those terms 

7 are defined in section 9101 of the Elementary and 

8 Secondary Education Act of 1965 (20 U.S.C. 7801). 

Æ 


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