II 

115TH CONGRESS 

1ST SESSION S. 2086 

To amend the Federal Agriculture Improvement and Reform Act of 1996 

to extend and modernize the sugar program, to extend and subsequently 

repeal the feedstock flexibility program for bioenergy producers, to extend 

and subsequently replace flexible marketing allotments for sugar, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 7, 2017 

Mrs. SHAHEEN (for herself, Mr. TOOMEY, Mr. ALEXANDER, Mr. CASEY, Ms. 

COLLINS, Mr. COONS, Mr. CORKER, Mr. DURBIN, Mrs. FEINSTEIN, Ms. 

HASSAN, Mr. HELLER, Mr. KAINE, Mr. MARKEY, Mr. MCCAIN, Mrs. 

MCCASKILL, Mr. PORTMAN, Mr. WARNER, Ms. WARREN, and Mr. JOHNSON) introduced the following bill; which was read twice and referred to 

the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To amend the Federal Agriculture Improvement and Reform 

Act of 1996 to extend and modernize the sugar program, 

to extend and subsequently repeal the feedstock flexibility 

program for bioenergy producers, to extend and subsequently replace flexible marketing allotments for sugar, 

and for other purposes. 

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. 

2 This Act may be cited as the ‘‘Sugar Policy Mod3 ernization Act of 2017’’. 

4 SEC. 2. SUGAR PROGRAM. 

5 (a) LOAN RATES.—Section 156 of the Federal Agri6 culture Improvement and Reform Act of 1996 (7 U.S.C. 

7 7272) is amended by striking subsections (a) and (b) and 

8 inserting the following: 

9 ‘‘(a) SUGARCANE.—The Secretary shall make loans 

10 available to processors of domestically grown sugarcane at 

11 a rate equal to— 

12 ‘‘(1) 18.75 cents per pound for raw cane sugar 

13 for the 2018 crop year; 

14 ‘‘(2) 18.50 cents per pound for raw cane sugar 

15 for the 2019 crop year; 

16 ‘‘(3) 18.25 cents per pound for raw cane sugar 

17 for the 2020 crop year; and 

18 ‘‘(4) 18.00 cents per pound for raw cane sugar 

19 for each of the 2021 through 2023 crop years. 

20 ‘‘(b) SUGAR BEETS.—The Secretary shall make loans 

21 available to processors of domestically grown sugar beets 

22 at a rate that is equal to 128.5 percent of the loan rate 

23 per pound of raw cane sugar for the applicable crop year 

24 under subsection (a) for each of the 2018 through 2023 

25 crop years.’’. 


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1 (b) AVOIDING FORFEITURES WHILE ENSURING ADE2 QUATE SUPPLIES AT REASONABLE PRICES.—Section 

3 156(f) of the Federal Agriculture Improvement and Re4 form Act of 1996 (7 U.S.C. 7272(f)) is amended— 

5 (1) in the subsection heading, by inserting 

6 ‘‘WHILE ENSURING ADEQUATE SUPPLIES AT REA7 SONABLE PRICES’’ after ‘‘FORFEITURES’’; and 

8 (2) in paragraph (1), by inserting ‘‘ensure ade9 quate supplies of sugar at reasonable prices and’’ 

10 after ‘‘shall’’. 

11 (c) ASSURANCE OF NO NET COST AND MEANS FOR

12 RECOVERY OF NET COSTS.—Section 156(f) of the Fed13 eral Agriculture Improvement and Reform Act of 1996 (7 

14 U.S.C. 7272(f)) is amended by adding at the end the fol15 lowing: 

16 ‘‘(3) ASSURANCE OF NO NET COST; RECOVERY

17 OF NET COSTS.— 

18 ‘‘(A) DEFINITION OF NET COST.—In this 

19 paragraph, the term ‘net cost’ means an 

20 amount by which Federal expenditures (includ21 ing disbursement of loan proceeds) for a fiscal 

22 year made pursuant to the program established 

23 under this section exceed receipts under that 

24 program (including loan repayments) for that 

25 fiscal year. 


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1 ‘‘(B) RECOVERY REQUIRED.—If the Sec2 retary finds that, notwithstanding paragraph 

3 (1), the program established under this section 

4 has resulted in a net cost to the Federal Gov5 ernment, the Secretary shall recover that net 

6 cost from processors of domestically grown sug7 arcane and sugar beets in a manner determined 

8 by the Secretary in regulations promulgated 

9 under subparagraph (D). 

10 ‘‘(C) RECOVERY METHOD.—The Secretary 

11 may provide for single or multiple payments by 

12 each processor of domestically grown sugarcane 

13 or sugar beets for the recovery of the net cost 

14 described in subparagraph (B). 

15 ‘‘(D) REGULATIONS.—The Secretary shall 

16 promulgate such regulations as the Secretary 

17 determines are necessary to carry out this para18 graph. 

19 ‘‘(E) APPLICATION.—This paragraph shall 

20 apply beginning with fiscal year 2019.’’. 

21 (d) EFFECTIVE PERIOD.—Section 156(i) of the Fed22 eral Agriculture Improvement and Reform Act of 1996 (7 

23 U.S.C. 7272(i)) is amended by striking ‘‘2018’’ and in24 serting ‘‘2023’’. 


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1 SEC. 3. ONE-YEAR EXTENSION OF FEEDSTOCK FLEXIBILITY 

2 PROGRAM FOR BIOENERGY PRODUCERS AND 

3 SUBSEQUENT TERMINATION. 

4 (a) EXTENSION.—Section 9010(b) of the Farm Secu5 rity and Rural Investment Act of 2002 (7 U.S.C. 8110(b)) 

6 is amended in paragraphs (1)(A) and (2)(A) by striking 

7 ‘‘2018’’ each place it appears and inserting ‘‘2019’’. 

8 (b) TERMINATION.—Section 9010 of the Farm Secu9 rity and Rural Investment Act of 2002 (7 U.S.C. 8110) 

10 is amended by adding at the end the following: 

11 ‘‘(c) TERMINATION.—The Secretary may not carry 

12 out the feedstock flexibility program described in sub13 section (b) for the 2020 or subsequent crops.’’. 

14 SEC. 4. TWO-YEAR EXTENSION OF MARKETING ALLOT15 MENTS FOR SUGAR AND SUBSEQUENT AD16 MINISTRATION OF TARIFF-RATE QUOTAS. 

17 (a) FLEXIBLE MARKETING ALLOTMENTS FOR

18 SUGAR.— 

19 (1) SUGAR ESTIMATES.—Section 359b(a)(1) of 

20 the Agricultural Adjustment Act of 1938 (7 U.S.C. 

21 1359bb(a)(1)) is amended in the matter preceding 

22 subparagraph (A) by striking ‘‘2018’’ and inserting 

23 ‘‘2020’’. 

24 (2) STOCKS-TO-USE RATIO.—Section 359k(b) of 

25 the Agricultural Adjustment Act of 1938 (7 U.S.C. 


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1 1359kk(b)) is amended by adding at the end the fol2 lowing: 

3 ‘‘(3) STOCKS-TO-USE RATIO.—Notwithstanding 

4 paragraphs (1) and (2), the Secretary shall adjust 

5 tariff-rate quotas established under subsection (a) in 

6 such a manner as to ensure, to the maximum extent 

7 practicable, that— 

8 ‘‘(A) the final ratio of sugar stocks to total 

9 sugar use at the end of a fiscal year is— 

10 ‘‘(i) 14.5 percent for fiscal year 2019; 

11 and 

12 ‘‘(ii) 15 percent for fiscal year 2020; 

13 and 

14 ‘‘(B) stocks of raw cane sugar and refined 

15 beet sugar are adequate throughout each of fis16 cal years 2019 and 2020 to meet the needs of 

17 the marketplace, including the efficient use of 

18 raw cane sugar refining capacity.’’. 

19 (3) EFFECTIVE PERIOD.—Section 359l(a) of 

20 the Agricultural Adjustment Act of 1938 (7 U.S.C. 

21 1359ll(a)) is amended by striking ‘‘2018’’ and in22 serting ‘‘2020’’. 

23 (b) REPEAL AND REPLACEMENT.— 

24 (1) IN GENERAL.—Effective on October 1, 

25 2020, part VII of subtitle B of title III of the AgriVerDate Sep 11 2014 04:28 Nov 08, 2017 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2086.IS S2086

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1 cultural Adjustment Act of 1938 (7 U.S.C. 1359aa 

2 et seq.) is amended to read as follows: 

3 ‘‘PART VII—SUGAR 

4 ‘‘SEC. 359a. ADMINISTRATION OF TARIFF-RATE QUOTAS. 

5 ‘‘(a) ESTABLISHMENT.—Notwithstanding any other 

6 provision of law, at the beginning of fiscal year 2021 and 

7 each fiscal year thereafter through the end of the effective 

8 period described in subsection (d), the Secretary shall es9 tablish tariff-rate quotas for raw cane sugar and refined 

10 beet sugar— 

11 ‘‘(1) to provide adequate supplies of sugar at 

12 reasonable prices; and 

13 ‘‘(2) at such levels as are necessary to comply 

14 with obligations under international trade agree15 ments that have been approved by Congress. 

16 ‘‘(b) ADJUSTMENT AUTHORITY.—The Secretary shall 

17 adjust tariff-rate quotas established under subsection (a) 

18 in such a manner as to ensure, to the maximum extent 

19 practicable, that— 

20 ‘‘(1) the final ratio of sugar stocks to total 

21 sugar use at the end of each fiscal year is 15.5 per22 cent; and 

23 ‘‘(2) stocks of raw cane and refined beet sugar 

24 are adequate throughout each fiscal year to meet the 


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1 needs of the marketplace, including the efficient use 

2 of cane refining capacity. 

3 ‘‘(c) TRANSFER OF QUOTA SHARES.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall pro5 mulgate regulations that— 

6 ‘‘(A) promote the maximum practicable use 

7 of the tariff-rate quotas established under sub8 section (a); 

9 ‘‘(B) ensure adequate supplies of raw cane 

10 sugar for cane refiners in the United States; 

11 and 

12 ‘‘(C) provide that any country that has 

13 been allocated a share of the tariff-rate quotas 

14 established under subsection (a) may tempo15 rarily transfer all or part of the share to any 

16 other country that has been allocated a share of 

17 the quotas. 

18 ‘‘(2) TRANSFERS VOLUNTARY.—Any transfer 

19 under paragraph (1)(C) shall be valid only— 

20 ‘‘(A) pursuant to a voluntary agreement 

21 between the transferor and the transferee; and 

22 ‘‘(B) consistent with procedures estab23 lished by the Secretary. 

24 ‘‘(3) LIMITATIONS ON TRANSFERS WITH RE25 SPECT TO FISCAL YEAR.— 


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1 ‘‘(A) IN GENERAL.—Any transfer under 

2 paragraph (1)(C) shall be valid only for the du3 ration of the fiscal year during which the trans4 fer is made. 

5 ‘‘(B) FOLLOWING FISCAL YEAR.—No 

6 transfer under paragraph (1)(C) shall affect the 

7 share of the quota allocated to the transferor or 

8 transferee for the next fiscal year after the fis9 cal year during which the transfer is made. 

10 ‘‘(d) EFFECTIVE PERIOD.—This section shall be ef11 fective only through fiscal year 2023.’’. 

12 (2) CONTINUED APPLICATION OF PRIOR LAW

13 TO CERTAIN SUGAR CROPS.—Part VII of subtitle B 

14 of title III of the Agricultural Adjustment Act of 

15 1938 (7 U.S.C. 1359aa et seq.), as in effect on the 

16 day before the date specified in paragraph (1), shall 

17 continue to apply to the 2019 and 2020 crop years 

18 for sugarcane and sugar beets. 

19 SEC. 5. SENSE OF CONGRESS. 

20 It is the sense of Congress that the President should 

21 establish as major goals of the trade policy of the United 

22 States— 

23 (1) the elimination of all direct and indirect 

24 subsidies benefitting the production or export of 

25 sugar by any government; and 


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1 (2) the enforcement, negotiation, and imple2 mentation of trade agreements that— 

3 (A) provide commercially meaningful sugar 

4 trade liberalization globally; and 

5 (B) enhance trade opportunities for the ag6 ricultural sector and other sectors of the econ7 omy of the United States. 

Æ 


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