### §1726c. Local and regional food aid procurement projects

#### (a) Definitions

In this section:

#### (1) Administrator

The term "Administrator" means the Administrator of the Agency for International Development.

#### (2) Appropriate committee of Congress

The term "appropriate committee of Congress" means—

(A) the Committee on Agriculture, Nutrition, and Forestry of the Senate;

(B) the Committee on Agriculture of the House of Representatives; and

(C) the Committee on Foreign Affairs of the House of Representatives.

#### (3) Eligible commodity

The term "eligible commodity" means an agricultural commodity (or the product of an agricultural commodity) that—

(A) is produced in, and procured from, a developing country; and

(B) at a minimum, meets each nutritional, quality, and labeling standard of the country that receives the agricultural commodity, as determined by the Secretary.

#### (4) Eligible organization

The term "eligible organization" means an organization that is—

(A) described in section 1722(d) of this title; and

(B) with respect to nongovernmental organizations, subject to regulations promulgated or guidelines issued to carry out this section, including United States audit requirements that are applicable to nongovernmental organizations.

#### (b) Field-based projects

#### (1) In general

In accordance with paragraph (2), the Secretary shall provide grants to, or enter into cooperative agreements with, eligible organizations to carry out field-based projects that consist of local or regional procurements of eligible commodities to respond to food crises and disasters in accordance with this section.

#### (2) Consultation with Administrator

In carrying out the development and implementation of field-based projects under paragraph (1), the Secretary shall consult with the Administrator.

#### (c) Procurement

#### (1) In general

Any eligible commodity that is procured for a field-based project carried out under subsection (b) shall be procured through any approach or methodology that the Secretary considers to be an effective approach or methodology to provide adequate information regarding the manner by which to expedite, to the maximum extent practicable, the provision of food aid to affected populations without significantly increasing commodity costs for low-income consumers who procure commodities sourced from the same markets at which the eligible commodity is procured.

#### (2) Requirements

#### (A) Impact on local farmers and countries

The Secretary shall ensure that the local or regional procurement of any eligible commodity under this section will not have a disruptive impact on farmers located in, or the economy of—

(i) the recipient country of the eligible commodity; or

(ii) any country in the region in which the eligible commodity may be procured.

#### (B) Transshipment

The Secretary shall, in accordance with such terms and conditions as the Secretary considers to be appropriate, require from each eligible organization commitments designed to prevent or restrict—

(i) the resale or transshipment of any eligible commodity procured under this section to any country other than the recipient country; and

(ii) the use of the eligible commodity for any purpose other than food aid.

#### (C) World prices

#### (i) In general

In carrying out this section, the Secretary shall take any precaution that the Secretary considers to be reasonable to ensure that the procurement of eligible commodities will not unduly disrupt—

(I) world prices for agricultural commodities; or

(II) normal patterns of commercial trade with foreign countries.

#### (ii) Procurement price

The procurement of any eligible commodity shall be made at a reasonable market price with respect to the economy of the country in which the eligible commodity is procured, as determined by the Secretary.

#### (d) Field-based project grants or cooperative agreements

#### (1) In general

The Secretary shall award grants to, or enter into cooperative agreements with, eligible organizations to carry out field-based projects.

#### (2) Requirements of eligible organizations

#### (A) In general

To be eligible to receive a grant from, or enter into a cooperative agreement with, the Secretary under this subsection, an eligible organization shall submit to the Secretary an application by such date, in such manner, and containing such information as the Secretary may require.

#### (B) Other applicable requirements

Any other applicable requirement relating to the submission of proposals for consideration shall apply to the submission of an application required under subparagraph (A), as determined by the Secretary.

#### (3) Requirements of Secretary

#### (A) Project diversity

#### (i) In general

Subject to clause (ii) and subparagraph (B), in selecting proposals for field-based projects to fund under this section, the Secretary shall select a diversity of projects, including projects located in—

(I) food surplus regions;

(II) food deficit regions (that are carried out using regional procurement methods); and

(III) multiple geographical regions.

#### (ii) Priority

In selecting proposals for field-based projects under clause (i), the Secretary shall ensure that the majority of selected proposals are for field-based projects that—

(I) are located in Africa; and

(II) procure eligible commodities that are produced in Africa.

#### (B) Development assistance

A portion of the funds provided under this subsection shall be made available for field-based projects that provide development assistance for a period of not less than 1 year.

#### (e) Funding

#### (1) Authorization of appropriations

There is authorized to be appropriated to the Secretary to carry out this section $80,000,000 for each of fiscal years 2019 through 2023.

#### (2) Preference

In carrying out this section, the Secretary may give a preference to eligible organizations that have, or are working toward, projects under the McGovern-Dole International Food for Education and Child Nutrition Program established under section 1736o–1 of this title.

#### (3) Reporting

Each year, the Secretary shall submit to the appropriate committees of Congress a report that describes the use of funds under this section, including—

(A) the impact of procurements and projects on—

(i) local and regional agricultural producers; and

(ii) markets and consumers, including low-income consumers; and

(B) implementation time frames and costs.

(Pub. L. 110–246, title III, §3206, June 18, 2008, 122 Stat. 1840; Pub. L. 113–79, title III, §3207, Feb. 7, 2014, 128 Stat. 780; Pub. L. 115–334, title III, §3311, Dec. 20, 2018, 132 Stat. 4623.)

#### **Editorial Notes**

#### Codification

Section was enacted as part of the Food, Conservation, and Energy Act of 2008, and not as part of the Food for Peace Act which comprises this chapter.

#### Amendments

2018—Subsec. (e)(1). Pub. L. 115–334 inserted "to the Secretary" after "appropriated" and substituted "2019 through 2023" for "2014 through 2018".

2014—Subsec. (b). Pub. L. 113–79, §3207(1)(A), (B), substituted "Field-based projects" for "Study; field-based projects" in heading, struck out par. (2) designation and heading, redesignated subpars. (A) and (B) of former par. (2) as pars. (1) and (2), respectively, and struck out former par. (1) which required a study of prior local and regional procurements for food aid programs and a report to Congress.

Subsec. (b)(1). Pub. L. 113–79, §3207(1)(C), substituted "paragraph (2)" for "subparagraph (B)".

Subsec. (b)(2). Pub. L. 113–79, §3207(1)(D), substituted "paragraph (1)" for "subparagraph (A)".

Subsec. (c)(1). Pub. L. 113–79, §3207(2), substituted "subsection (b)" for "subsection (b)(2)".

Subsec. (d). Pub. L. 113–79, §3207(3), (4), redesignated subsec. (e) as (d) and struck out former subsec. (d) which related to regulations and guidelines.

Subsec. (d)(2). Pub. L. 113–79, §3207(5)(A), struck out subpar. (A) designation and heading, redesignated cls. (i) and (ii) of former subpar. (A) as subpars. (A) and (B), respectively, substituted "subparagraph (A)" for "clause (i)" in subpar. (B), and struck out former subpar. (B). Prior to amendment, text of subpar. (B) read as follows: "To be eligible to receive a grant from, or enter into a cooperative agreement with, the Secretary under this subsection, an eligible organization shall agree—

"(i) to collect by September 30, 2011, data containing the information required under subsection (f)(1)(B) relating to the field-based project funded through the grant; and

"(ii) to provide to the Secretary the data collected under clause (i)."

Subsec. (d)(4). Pub. L. 113–79, §3207(5)(B), struck out par. (4). Text read as follows: "The Secretary shall not award a grant to any eligible organization under paragraph (1) until the date on which the Secretary promulgates regulations or issues guidelines under subsection (d)(1)".

Subsec. (e). Pub. L. 113–79, §3207(6), added subsec. (e). Former subsec. (e) redesignated (d).

Subsecs. (f), (g). Pub. L. 113–79, §3207(3), struck out subsecs. (f) and (g) which related, respectively, to independent evaluations of field-based projects and report to Congress and to Commodity Credit Corporation funding and funding amounts for fiscal years 2009 through 2012.

#### **Statutory Notes and Related Subsidiaries**

#### Effective Date

Section effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as a note under section 8701 of this title.

#### Definition of "Secretary"

"Secretary" as meaning the Secretary of Agriculture, see section 8701 of this title.