Food Recovery Act of 2015

To decrease the incidence of food waste, and for other purposes. 1. Short title This Act may be cited as the Food Recovery Act of 2015 2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Title I—Farms Sec. 101. Use of Rural Energy for America Program to reduce food and crop waste. Sec. 102. Farm storage facility loan program. Sec. 103. Composting as conservation practice. Sec. 104. Study and report on methods to decrease the incidence of food waste. Title II—Retail and Restaurants Sec. 201. Extension and expansion of charitable deduction for contributions of food inventory. Sec. 202. Good Samaritan food donation. Sec. 203. Report on food donation by retail food stores. Sec. 204. Use of Commodity Credit Corporation funds to cover Emergency Food Assistance Program storage and distribution costs. Title III—Schools and other Institutions Sec. 301. Establishment of the Office of Food Recovery. Sec. 302. Amendments to Federal Food Donation Act to require food donations by executive agencies and Congress. Sec. 303. Food and agriculture service learning program. Sec. 304. Farm to school grant program to improve access to local foods in schools and reduce food waste. Sec. 305. Modification of National School Lunch Program procurement requirements to encourage purchase of lower-price, non-standard size or shape produce. Title IV—Consumers and Local Infrastructure Sec. 401. Food date labeling. Sec. 402. Support for national media campaigns to decrease the incidence of food waste. Sec. 403. Increase in resources for community facilities loans directed at composting and waste-to-energy operations. Sec. 404. Expansion of rural utilities service water and waste disposal program to provide loans and grants for rural communities to adapt waste disposal facilities to incorporate food waste-to-energy operations. Sec. 405. Grants for composting and food waste-to-energy projects. I Farms 101. Use of Rural Energy for America Program to reduce food and crop waste (a) Increased funding Section 9007(g)(1) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107(g)(1) (1) by striking and (2) in subparagraph (E), by striking fiscal year 2014 and each fiscal year thereafter. each of fiscal years 2014 and 2015; and (3) by adding at the end the following new subparagraph: (F) $70,000,000 for fiscal year 2016 and each fiscal year thereafter. . (b) Requirements related to installation of anaerobic Digesters Section 9007(c) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107(c) (5) Requirements related to installation of anaerobic Digesters (A) In general In the case of a loan guarantee or grant under this subsection to an agricultural producer or rural small business to support the installation of an anaerobic digester that will use food or crop waste, or both, to produce energy, the Secretary shall obtain from the recipient— (i) a written agreement entered into between the recipient and a hunger-serving organization providing for the recipient and the organization to work together to ensure that apparently wholesome food (as defined in section 170(e)(3)(C)(iii) (ii) a written end-product recycling plan, which shall provide for the disposal of the material resulting from the anaerobic digester, is made, in accordance with guidelines which the Administrator of the Environmental Protection Agency shall establish, that ensures that the disposal of such material does not create an environmental hazard. (B) Hunger-serving organization defined In subparagraph (A), the term hunger-serving organization (i) a food bank (as defined in section 201A(5) of the Emergency Food Assistance Act of 1983); (ii) a food pantry (as defined in section 201A(6) of such Act); or (iii) a soup kitchen (as defined in section 201A(8) of such Act). . (c) Set-Aside for anaerobic Digesters Section 9007(g) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107(g) (4) Set-aside for anaerobic digesters Of the funds made available for each fiscal year under this subsection, not less than $20,000,000 shall be available to support the installation of anaerobic digesters that use food or crop waste, or both, to produce energy. Such funds shall remain available until expended. . 102. Farm storage facility loan program (a) Inclusion of refrigerated vehicle as eligible facility Section 1614(a) of the Food, Conservation, and Energy Act of 2008 ( 7 U.S.C. 8789(a) construct or upgrade storage and handling facilities acquire, construct, or upgrade storage, handling, and transportation facilities, which may include refrigerated vehicles to improve storage and marketing, (b) Set-Aside To improve Producer and emergency feeding organization cooperation Section 1614 of the Food, Conservation, and Energy Act of 2008 ( 7 U.S.C. 8789 (g) Set-Aside To improve Cooperation between Producers and emergency feeding organizations Of the funds made available for a fiscal year for storage facility loans under this section, the Secretary shall reserve at least 5 percent for eligible producers that, in cooperation with an emergency feeding organization, agree to use the storage facility loan to acquire, construct, or upgrade storage, handling, and transportation facilities to improve the ability of the producer to provide commodities to an emergency feeding organization and the ability of the emergency feeding organization to provide commodities to eligible recipients. In this subsection, the term emergency feeding organization 7 U.S.C. 7501 . 103. Composting as conservation practice Title XII of the Food Security Act of 1985 ( 16 U.S.C. 3801 et seq. (1) in section 1201(a), by adding at the end the following: (28) Composting practice The term composting practice (A) activities to produce compost, including activities that do not require the use of a composting facility; and (B) the use of compost. ; (2) in section 1238D(2)(B)(i), by inserting and composting practices agriculture drainage management systems (3) in section 1240A(4)(A)(ii), by inserting , including composting practices 104. Study and report on methods to decrease the incidence of food waste (a) Study The Secretary of Agriculture shall conduct a study on— (1) new technologies to increase the period during which an agricultural product may be stored before such product is considered adulterated under State or Federal law; and (2) a method to measure the amount of agricultural products that are disposed of each year by the farms that produce such products. (b) Report Not later than 1 year after the date of the enactment of this Act, the Secretary of Agriculture shall submit to Congress a report that contains— (1) the results of the study conducted under subsection (a); and (2) the recommendations of the Secretary with respect to methods of decreasing the incidence of food waste. (c) Agricultural product defined In this section, the term agricultural product agricultural products 7 U.S.C. 1626 II Retail and Restaurants 201. Extension and expansion of charitable deduction for contributions of food inventory (a) Permanent extension Section 170(e)(3)(C) (b) Increase in limitation Section 170(e)(3)(C) of such Code, as amended by subsection (a), is amended by striking clause (ii), by redesignating clause (iii) as clause (iv), and by inserting after clause (i) the following new clauses: (ii) Limitation The aggregate amount of such contributions for any taxable year which may be taken into account under this section shall not exceed— (I) in the case of any taxpayer other than a C corporation, 15 percent of the taxpayer’s aggregate net income for such taxable year from all trades or businesses from which such contributions were made for such year, computed without regard to this section, and (II) in the case of a C corporation, 15 percent of taxable income (as defined in subsection (b)(2)(D)). (iii) Rules related to limitation (I) Carryover If such aggregate amount exceeds the limitation imposed under clause (ii), such excess shall be treated (in a manner consistent with the rules of subsection (d)) as a charitable contribution described in clause (i) in each of the 5 succeeding taxable years in order of time. (II) Coordination with overall corporate limitation In the case of any charitable contribution allowable under clause (ii)(II), subsection (b)(2)(A) shall not apply to such contribution, but the limitation imposed by such subsection shall be reduced (but not below zero) by the aggregate amount of such contributions. For purposes of subsection (b)(2)(B), such contributions shall be treated as allowable under subsection (b)(2)(A). . (c) Determination of basis for certain taxpayers Section 170(e)(3)(C) of such Code, as amended by subsections (a) and (b), is amended by adding at the end the following new clause: (v) Determination of basis for certain taxpayers If a taxpayer— (I) does not account for inventories under section 471, and (II) is not required to capitalize indirect costs under section 263A, the taxpayer may elect, solely for purposes of subparagraph (B), to treat the basis of any apparently wholesome food as being equal to 25 percent of the fair market value of such food. . (d) Determination of fair market value Section 170(e)(3)(C) of such Code, as amended by subsections (a), (b), and (c), is amended by adding at the end the following new clause: (vi) Determination of fair market value In the case of any such contribution of apparently wholesome food which cannot or will not be sold solely by reason of internal standards of the taxpayer, lack of market, or similar circumstances, or by reason of being produced by the taxpayer exclusively for the purposes of transferring the food to an organization described in subparagraph (A), the fair market value of such contribution shall be determined— (I) without regard to such internal standards, such lack of market, such circumstances, or such exclusive purpose, and (II) by taking into account the price at which the same or substantially the same food items (as to both type and quality) are sold by the taxpayer at the time of the contribution (or, if not so sold at such time, in the recent past). . (e) Nonprofit retail sales Section 170(e)(3)(C) of such Code, as amended by subsections (a), (b), (c), and (d), is amended by adding at the end the following new clause: (vii) Nonprofit retail sale For purposes of clause (i), a charitable contribution of food includes a contribution to or for the use of an organization described in subsection (c) that is a food bank, food pantry, soup kitchen, or other similar organization which holds such food for nonprofit retail sale. For purposes of the preceding sentence, the terms food bank food pantry soup kitchen 7 U.S.C. 7501 . (f) Effective Date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made after the date of the enactment of this Act, in taxable years ending after such date. (2) Limitation; applicability to C corporations The amendments made by subsection (b) shall apply to contributions made in taxable years ending after the date of the enactment of this Act. 202. Good Samaritan food donation (a) Definition of ultimate distribution Section 22(b) of the Child Nutrition Act of 1966 ( 42 U.S.C. 1791(b) (11) Ultimate distribution The term ultimate distribution . (b) Local health laws and regulations Section 22 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1791 (1) in subsections (b)(1), (b)(2), and (e) by striking Federal, State, and local Federal and State (2) in subsection (f), by striking or local (c) Conforming amendment Section 22(e)(2) of the Child Nutrition Act of 1966 ( 42 U.S.C. 1791(e)(2) distribution ultimate distribution to needy individuals 203. Report on food donation by retail food stores Not later than 1 year after the date of the enactment of this Act, the Secretary of Agriculture shall submit to Congress a report that contains the recommendations of the Secretary with respect to methods of increasing food donation by retail food stores, as defined by the Secretary. 204. Use of Commodity Credit Corporation funds to cover Emergency Food Assistance Program storage and distribution costs (a) Use of Commodity Credit Corporation funds Section 204(a)(1) of the Emergency Food Assistance Act of 1983 ( 7 U.S.C. 7508(a)(1) (1) in the first sentence, by striking There are authorized to be appropriated $100,000,000 for fiscal year 2008 and each fiscal year thereafter, for the Secretary to make available to the States Using funds of the Commodity Credit Corporation, the Secretary shall make available to the States $100,000,000 for fiscal year 2016 and each fiscal year thereafter (2) in the second sentence, by striking Funds appropriated Funds made available (b) Relation to other Commodity Credit Corporation expenditures Section 204(b) of the Emergency Food Assistance Act of 1983 ( 7 U.S.C. 7508(b) appropriations made or authorized under this section amounts made available under subsection (a)(1) (c) Clerical amendment The heading of section 204 of the Emergency Food Assistance Act of 1983 ( 7 U.S.C. 7508 204. Funds for State storage and distribution costs . III Schools and other Institutions 301. Establishment of the Office of Food Recovery The Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 is amended by inserting after section 309 ( 7 U.S.C. 6921 310. Office of Food Recovery (a) Office established The Secretary of Agriculture shall establish within the Department of Agriculture an office to be known as the Office of Food Recovery (b) Director of Food Recovery The Office shall be headed by a Director, to be appointed by the Secretary. (c) Duties The Director of the Office of Food Recovery shall— (1) support and promote Federal programs to reduce the incidence of food waste; and (2) make recommendations with respect to reducing the incidence of food waste. . 302. Amendments to Federal Food Donation Act to require food donations by executive agencies and Congress (a) Requirement The Federal Food Donation Act of 2008 ( Public Law 110–247 42 U.S.C. 1792 (1) in section 2, by striking encourage require (2) in section 4(a)(1), by striking encourages requires (b) Definition of agencies covered Section 3 of such Act is amended by adding at the end the following new paragraph: (5) Executive agency The term executive agency . (c) Deadline Section 4(a) of such Act is amended by striking Not later than 421) Not later than 180 days after the date of the enactment of the Food Recovery Act of 2015, the Federal Acquisition Regulation issued in accordance with section 1121 of title 41, United States Code, (d) Expansion of contracts covered Section 4(a) of such Act is amended by striking $25,000 $10,000 (e) Coverage of Congress Section 4 of such Act is amended by adding at the end the following new subsection: (c) Application to Congress (1) Contracts This Act shall apply to the House of Representatives and to contracts entered into by the House of Representatives, and to the Senate and to contracts entered into by the Senate, in the same manner and to the same extent as this Act applies to an executive agency and to contracts entered into by an executive agency. (2) Administration For purposes of carrying out paragraph (1)— (A) the Chief Administrative Officer of the House of Representatives shall be considered the head of the House of Representatives; and (B) the Secretary of the Senate shall be considered the head of the Senate. . (f) Authorization of appropriations Such Act is further amended by adding at the end the following new section: 5. Authorization of appropriations There is authorized to be appropriated $10,000,000 each fiscal year to the Secretary of Agriculture to enforce this Act. . 303. Food and agriculture service learning program (a) Purposes and priorities Section 413 of the Agricultural Research, Extension, and Education Reform Act of 1998 ( 7 U.S.C. 7633 (1) in subsection (a), by striking and improve the nutritional health of children , improve the nutritional health of children, and raise public awareness about wasted food and the use of food recovery efforts to reduce the quantity of wasted food (2) in subsection (b)— (A) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and (B) by inserting after paragraph (3) the following new paragraph: (4) to raise public awareness about the consequences of wasted food and to encourage the implementation of food recovery initiatives to reduce the quantity of wasted food; ; and (3) in subsection (c)(2)(C), by striking and where food comes from , where food comes from, the consequences of food waste, and food recovery initiatives (b) Funding Section 413 of the Agricultural Research, Extension, and Education Reform Act of 1998 ( 7 U.S.C. 7633 (1) in subsection (a), by striking Subject to the availability of appropriations under subsection (e), the Secretary The Secretary (2) in subsection (e), by striking paragraph (1) and inserting the following new paragraph: (1) Source of funds Using funds of the Commodity Credit Corporation, the Secretary shall make available $5,000,000 for fiscal year 2016 and for each fiscal year thereafter to carry out the Program. Such amounts shall remain available until expended. . 304. Farm to school grant program to improve access to local foods in schools and reduce food waste (a) Purpose of grant program Section 18(g)(3)(A)(v) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1769(g)(3)(A)(v) and reducing food waste at both the school and farm level (b) Funding Section 18(g)(8)(A) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1769(g)(8)(A) (1) by striking On October 1, 2012, and each October 1 thereafter, out Out (2) by striking $5,000,000, to remain available until expended. $5,000,000 on October 1, 2012, and each October 1 thereafter through October 1, 2015, and $6,000,000 on October 1, 2016, and each October 1 thereafter. Amounts made available under this subparagraph shall remain available until expended. (c) Set-Aside for Food Waste Reduction Grants Section 18(g)(3) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1769(g)(3) (D) Set-Aside for Food Waste Reduction Grants Of the funds made available for a fiscal year for grants under this subsection, the Secretary shall reserve at least $1,000,000 for grants to implement farm to school programs designed to both facilitate a school’s use of food from farms that would otherwise go to waste and projects that provide farms with compostable materials from schools, including food scraps, and compostable lunch trays and utensils. . 305. Modification of National School Lunch Program procurement requirements to encourage purchase of lower-price, non-standard size or shape produce Section 9(a)(4)(C) of the Richard B. Russell National School Lunch Act ( 7 U.S.C. 2011 et seq. (ii) in the product specifications and practices required by clause (i), encourage State departments of agriculture and education, school food authorities, local educational agencies, and local processing entities to purchase lower-price, non-standard size or shape produce to be used in school nutrition programs under this Act and the Child Nutrition Act of 1966 ( 42 U.S.C. 1771 et seq. . IV Consumers and Local Infrastructure 401. Food date labeling (a) Misbranding Section 403 of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 343 (z) If it is food whose date labeling is in violation of section 424. . (b) Requirements Chapter IV of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 341 et seq. 424. Date labeling (a) In general If the labeling of food includes a date by which the food is recommended to be sold or consumed, such date— (1) shall be immediately preceded by the words Best if Used By (2) shall be immediately followed by the statement Manufacturer’s Suggestion Only (3) shall not be characterized as a sell-by, use-by, best-by, quality best-by, expires on, or other similar date. (b) High-Risk foods (1) Definition In this subsection, the term high-risk food (2) Labeling If the labeling of any high-risk food includes a date by which the food is recommended to be sold or consumed, such date— (A) shall be immediately preceded by the words Expires on (B) shall be immediately followed by the statement Manufacturer’s Suggestion Only (C) shall not be characterized as a sell-by, use-by, best-by, quality best-by, freshest by, or other similar date. (3) List The Secretary shall— (A) not later than 180 days after the date of the enactment of this section, publish a list of foods that— (i) are sold ready-to-eat; and (ii) have a high risk of microbial contamination if not consumed by a certain date; and (B) periodically review and, as appropriate, update such list. (c) Exception This section does not apply with respect to infant formula subject to section 412. . (c) Applicability The requirements of sections 403(z) and 424 of the Federal Food, Drug, and Cosmetic Act, as added by this section, apply beginning on the date that is 1 year after the date of enactment of this Act, except that subsection (b)(3) of such section 424 is not subject to such delay in applicability. 402. Support for national media campaigns to decrease the incidence of food waste (a) In general The Secretary of Agriculture shall support national media campaigns to decrease the incidence of food waste. (b) Mandatory funding The Secretary of Agriculture shall use $8,000,000 of funds of the Commodity Credit Corporation to carry out this section for fiscal year 2017. Such funds shall remain available until expended. 403. Increase in resources for community facilities loans directed at composting and waste-to-energy operations Section 306(a)(1) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 926(a)(1) 5 percent of the amounts made available for each fiscal year for loans for essential community facilities under the preceding sentence shall be reserved for loans, in accordance with section 306(e)(2), for municipal or county composting and anaerobic digestion food waste-to-energy projects. 404. Expansion of rural utilities service water and waste disposal program to provide loans and grants for rural communities to adapt waste disposal facilities to incorporate food waste-to-energy operations Section 306 of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926 (e) Water or waste disposal loans and grants for projects To incorporate food waste-to-Energy operations in waste disposal facilities (1) In general Notwithstanding any other provision of law, beginning in fiscal year 2016, in addition to any other amounts available for water or waste disposal loans and grants under paragraphs (1) and (2) of subsection (a), $50,000,000 of the funds of the Commodity Credit Corporation for each fiscal year shall be available for the loans and grants, of which the Secretary shall use— (A) $25,000,000 for loans, in accordance with paragraph (2), for the adaptation of waste disposal facilities to incorporate anaerobic digestion food waste-to-energy operations; and (B) $25,000,000 for grants, in accordance with paragraph (2), for the adaptation of waste disposal facilities to incorporate anaerobic digestion food waste-to-energy operations. (2) Requirements (A) In general A loan or grant is made in accordance with this paragraph if, before making the loan or grant, the Secretary has obtained from the recipient— (i) a written agreement entered into between the recipient and a hunger-serving organization providing for the recipient and the organization to work together to ensure that apparently wholesome food (as defined in section 170(e)(3)(C)(iii) (ii) a written end-product recycling plan, which shall provide for the disposal of the material resulting from any food-to-waste operation with respect to which the loan or grant is made, in accordance with guidelines which the Administrator of the Environmental Protection Agency shall establish, that ensures that the disposal does not create an environmental hazard. (B) Hunger-serving organization defined In subparagraph (A), the term hunger-serving organization (i) a food bank (as defined in section 201A(5) of the Emergency Food Assistance Act of 1983); (ii) a food pantry (as defined in section 201A(6) of such Act); or (iii) a soup kitchen (as defined in section 201A(8) of such Act). (3) Availability Funds made available under paragraph (1) shall remain available until expended. . 405. Grants for composting and food waste-to-energy projects (a) In general Subtitle G of the Solid Waste Disposal Act ( 42 U.S.C. 6971 et seq. 7011. Grants for composting and food waste-to-energy projects (a) Grants The Administrator shall establish a grant program to award grants to eligible States to construct large-scale composting or food waste-to-energy anaerobic digestion projects. (b) Eligible States In order to be eligible to receive a grant under this section, a State shall— (1) limit the amount of food waste that may be disposed of in landfills in the State; (2) enter into a written agreement with a hunger-serving organization providing for the State and the organization to work together to ensure that apparently wholesome food (as defined in section 170(e)(3)(C)(iii) (3) have in place a written end-product recycling plan, which shall provide for the disposal of the material resulting from the project, in accordance with guidelines which the Administrator of the Environmental Protection Agency shall establish, that ensures that the disposal does not create an environmental hazard. (c) Hunger-Serving organization defined In subsection (b), the term hunger-serving organization (1) a food bank (as defined in section 201A(5) of the Emergency Food Assistance Act of 1983); (2) a food pantry (as defined in section 201A(6) of such Act); or (3) a soup kitchen (as defined in section 201A(8) of such Act). (d) Authorization of appropriations There are authorized to be appropriated to carry out this section $100,000,000 for each fiscal year. . (b) Clerical amendment The table of contents for such Act is amended by inserting after the item relating to section 7010 the following new item: Sec. 7011. Grants for composting and food waste-to-energy projects. .

Summary: Food Recovery Act of 2015 This bill amends the following to provide funding, expand tax deductions, and establish requirements to reduce food waste: the Richard B. Russell National School Lunch Act; the Internal Revenue Code; the Federal Food, Drug, and Cosmetic Act; the Solid Waste Disposal Act; and several agricultural laws. The bill expands and establishes federal grant and loan programs to: improve the nutritional health of children and raise awareness about food waste, improve cooperation between agricultural producers and emergency feeding organizations, assist schools in using food from farms that would otherwise go to waste and providing farms with compostable materials, and install facilities that include composting or anaerobic digesters that use food or crop waste to produce energy. Recipients of grants to install anaerobic digesters that use waste to produce energy must meet specified requirements regarding environmental laws and the distribution of certain food to hunger-serving organizations. USDA must: (1) establish an Office of Food Recovery to coordinate federal programs to measure and reduce food waste, and (2) study techniques for decreasing food waste and estimating the amount of food wasted by farms. The bill provides that composting is a conservation practice eligible for support under USDA's conservation programs. The bill extends and expands tax deductions for the donation of food to charitable organizations. "Sell-by" dates included on food labeling must indicate that the dates are only the manufacturer's suggestion and use uniform language. Companies that receive food service contracts with the federal government must donate surplus food to nonprofit organizations that assist food-insecure people.