I

103D CONGRESS

2D SESSION H. R. 4817

To promote the use of vegetable oils derived from soybeans and other oilseeds

in industrial products and to authorize the Secretary of Agriculture

to undertake certain activities to increase domestic and export demand

for such vegetable oils.

IN THE HOUSE OF REPRESENTATIVES

JULY 22, 1994

Mr. JOHNSON of South Dakota (for himself, Mr. EMERSON, Mr. SLATTERY,

Mr. MINGE, Mr. EWING, Mr. ROBERTS, Mr. SARPALIUS, Mr. POMEROY,

Mr. BARLOW, Mr. GRANDY, Mr. GLICKMAN, Mr. DURBIN, Mr. LIGHTFOOT, Mr. PETERSON of Minnesota, Mr. SKELTON, Mr. VOLKMER, Mr.

DICKEY, Mr. BISHOP, and Mr. NUSSLE) introduced the following bill;

which was referred to the Committee on Agriculture

A BILL

To promote the use of vegetable oils derived from soybeans

and other oilseeds in industrial products and to authorize

the Secretary of Agriculture to undertake certain activities to increase domestic and export demand for such

vegetable oils.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Vegetable Oil Use Pro5 motion Act’’.
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1 SEC. 2. PROMOTION OF INCREASED DEMAND FOR AND USE

2 OF VEGETABLE OILS DERIVED FROM CER3 TAIN OILSEEDS.

4 (a) VEGETABLE OIL INDUSTRIAL PRODUCTS

5 FUND.—

6 (1) ESTABLISHMENT.—There is established

7 within the Commodity Credit Corporation a fund to

8 be known as the ‘‘Vegetable Oil Industrial Products

9 Fund’’, which shall to be administered and used by

10 the Secretary of Agriculture to carry out subsection

11 (b).

12 (2) CONTENTS OF FUND.—The Fund shall con13 sist of amounts deposited in the Fund by the Sec14 retary in each of the fiscal years 1995 through 2000

15 from amounts available to the Commodity Credit

16 Corporation, as follows:

17 (A) $7,800,000 for fiscal year 1995.

18 (B) $15,500,000 for fiscal year 1996.

19 (C) $23,300,000 for fiscal year 1997.

20 (D) $31,100,000 for fiscal year 1998.

21 (E) $38,900,000 for fiscal year 1999.

22 (F) $46,700,000 for fiscal year 2000.

23 (3) AVAILABILITY OF FUND.—Amounts in the

24 Fund shall remain available to the Secretary until

25 expended.
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1 (b) USE OF FUND TO PROMOTE INDUSTRIAL PROD2 UCTS CONTAINING VEGETABLE OILS.—The Secretary

3 shall use amounts in the Fund to make grants to promote

4 the increased commercial use of industrial products that

5 contain, as an ingredient, vegetable oils produced from eli6 gible oilseeds. For each fiscal year in which amounts are

7 available in the Fund, the Secretary shall solicit grant ap8 plications from persons whose manufacturing operations

9 are located in the United States and that desire financial

10 assistance to begin or expand production of such industrial

11 products. The applications shall be in such form, shall con12 tain such information, and shall be submitted at such

13 time, as the Secretary may prescribe. On the basis of such

14 applications, the Secretary shall select as grant recipients

15 to the extent practicable those persons whose manufactur16 ing operations will use the greatest possible amount of

17 vegetable oils produced from eligible oilseeds in compari18 son to the amount of assistance requested.

19 (c) LIMITATION ON AMOUNT OF ASSISTANCE.—A

20 person may not receive more than 10 percent of the total

21 assistance provided by the Secretary in any fiscal year

22 from the Fund.

23 (d) ANNUAL ESTIMATES OF VEGETABLE OIL

24 STOCKS.—Not later than October 1 and April 1 of each

25 fiscal year, the Secretary shall announce an estimate of—
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1 (1) the amount of vegetable oil to be produced

2 in the United States from oilseeds grown in the

3 United States and consumed domestically or ex4 ported from the United States during that fiscal

5 year; and

6 (2) the amount of such vegetable oil likely to

7 remain available in public and private stocks in the

8 United States at the end of the marketing year.

9 (e) ACTIVITIES TO INCREASE DEMAND FOR VEGETA10 BLE OIL.—If the October 1 estimate of end-of-year stocks

11 of vegetable oil produced in the United States from oil12 seeds grown in the United States, as a percentage of total

13 domestic and export demand, exceeds the average percent14 age of end-of-year stocks to total demand during fiscal

15 years 1985 through 1994, the Secretary shall use existing

16 authorities to promote an increase in domestic and export

17 demand for such vegetable oil by an amount that will pre18 vent end-of-year stocks from exceeding this level. If the

19 April 1 estimate indicates a significant change in the

20 stocks to use ratio from the October 1 estimate, the Sec21 retary shall adjust the vegetable oil demand expansion ac22 tivities to reflect this change. The authorities that the Sec23 retary may use to effect an increase in domestic and ex24 port demand for such vegetable oil shall include the follow25 ing:
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1 (1) Purchasing for donation to meet critical

2 human dietary needs in developing countries.

3 (2) Purchasing for donation to emerging de4 mocracies, with the proceeds from any subsequent

5 sale required to be used for economic development,

6 infrastructure improvements, or activities that foster

7 development of markets for United States agricul8 tural products in recipient countries.

9 (3) Purchasing for donation or discounted sale

10 to producers of industrial products that contain, as

11 an ingredient, vegetable oils produced from eligible

12 oilseeds, to promote the increased commercial use of

13 such products.

14 (f) DEFINITIONS.—For purposes of this section:

15 (1) FUND.—The term ‘‘Fund’’ means the Vege16 table Oil Industrial Products Fund.

17 (2) OILSEEDS.—The term ‘‘oilseeds’’ means

18 soybeans, corn, cottonseed, sunflower seed, flaxseed,

19 canola, rapeseed, safflower, and mustard seed.

20 (3) SECRETARY.—The term ‘‘Secretary’’ means

21 the Secretary of Agriculture.

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