Title: Sugar Policy Modernization Act of 2017
Policy area: Agriculture and Food

Summary:
Sugar Policy Modernization Act of 2017
This bill amends the Federal Agriculture Improvement and Reform Act of 1996 and other agricultural laws to modify the Department of Agriculture (USDA) sugar program.
The bill modifies the sugar program to:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2086 Introduced in Senate (IS)]

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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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sugar Policy Modernization Act of 
2017''.

SEC. 2. SUGAR PROGRAM.

    (a) Loan Rates.--Section 156 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7272) is amended by striking 
subsections (a) and (b) and inserting the following:
    ``(a) Sugarcane.--The Secretary shall make loans available to 
processors of domestically grown sugarcane at a rate equal to--
            ``(1) 18.75 cents per pound for raw cane sugar for the 2018 
        crop year;
            ``(2) 18.50 cents per pound for raw cane sugar for the 2019 
        crop year;
            ``(3) 18.25 cents per pound for raw cane sugar for the 2020 
        crop year; and
            ``(4) 18.00 cents per pound for raw cane sugar for each of 
        the 2021 through 2023 crop years.
    ``(b) Sugar Beets.--The Secretary shall make loans available to 
processors of domestically grown sugar beets at a rate that is equal to 
128.5 percent of the loan rate per pound of raw cane sugar for the 
applicable crop year under subsection (a) for each of the 2018 through 
2023 crop years.''.
    (b) Avoiding Forfeitures While Ensuring Adequate Supplies at 
Reasonable Prices.--Section 156(f) of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272(f)) is amended--
            (1) in the subsection heading, by inserting ``While 
        Ensuring Adequate Supplies at Reasonable Prices'' after 
        ``Forfeitures''; and
            (2) in paragraph (1), by inserting ``ensure adequate 
        supplies of sugar at reasonable prices and'' after ``shall''.
    (c) Assurance of No Net Cost and Means for Recovery of Net Costs.--
Section 156(f) of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(f)) is amended by adding at the end the following:
            ``(3) Assurance of no net cost; recovery of net costs.--
                    ``(A) Definition of net cost.--In this paragraph, 
                the term `net cost' means an amount by which Federal 
                expenditures (including disbursement of loan proceeds) 
                for a fiscal year made pursuant to the program 
                established under this section exceed receipts under 
                that program (including loan repayments) for that 
                fiscal year.
                    ``(B) Recovery required.--If the Secretary finds 
                that, notwithstanding paragraph (1), the program 
                established under this section has resulted in a net 
                cost to the Federal Government, the Secretary shall 
                recover that net cost from processors of domestically 
                grown sugarcane and sugar beets in a manner determined 
                by the Secretary in regulations promulgated under 
                subparagraph (D).
                    ``(C) Recovery method.--The Secretary may provide 
                for single or multiple payments by each processor of 
                domestically grown sugarcane or sugar beets for the 
                recovery of the net cost described in subparagraph (B).
                    ``(D) Regulations.--The Secretary shall promulgate 
                such regulations as the Secretary determines are 
                necessary to carry out this paragraph.
                    ``(E) Application.--This paragraph shall apply 
                beginning with fiscal year 2019.''.
    (d) Effective Period.--Section 156(i) of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272(i)) is amended by 
striking ``2018'' and inserting ``2023''.

SEC. 3. ONE-YEAR EXTENSION OF FEEDSTOCK FLEXIBILITY PROGRAM FOR 
              BIOENERGY PRODUCERS AND SUBSEQUENT TERMINATION.

    (a) Extension.--Section 9010(b) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8110(b)) is amended in paragraphs 
(1)(A) and (2)(A) by striking ``2018'' each place it appears and 
inserting ``2019''.
    (b) Termination.--Section 9010 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8110) is amended by adding at the end 
the following:
    ``(c) Termination.--The Secretary may not carry out the feedstock 
flexibility program described in subsection (b) for the 2020 or 
subsequent crops.''.

SEC. 4. TWO-YEAR EXTENSION OF MARKETING ALLOTMENTS FOR SUGAR AND 
              SUBSEQUENT ADMINISTRATION OF TARIFF-RATE QUOTAS.

    (a) Flexible Marketing Allotments for Sugar.--
            (1) Sugar estimates.--Section 359b(a)(1) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is 
        amended in the matter preceding subparagraph (A) by striking 
        ``2018'' and inserting ``2020''.
            (2) Stocks-to-use ratio.--Section 359k(b) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk(b)) is 
        amended by adding at the end the following:
            ``(3) Stocks-to-use ratio.--Notwithstanding paragraphs (1) 
        and (2), the Secretary shall adjust tariff-rate quotas 
        established under subsection (a) in such a manner as to ensure, 
        to the maximum extent practicable, that--
                    ``(A) the final ratio of sugar stocks to total 
                sugar use at the end of a fiscal year is--
                            ``(i) 14.5 percent for fiscal year 2019; 
                        and
                            ``(ii) 15 percent for fiscal year 2020; and
                    ``(B) stocks of raw cane sugar and refined beet 
                sugar are adequate throughout each of fiscal years 2019 
                and 2020 to meet the needs of the marketplace, 
                including the efficient use of raw cane sugar refining 
                capacity.''.
            (3) Effective period.--Section 359l(a) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by 
        striking ``2018'' and inserting ``2020''.
    (b) Repeal and Replacement.--
            (1) In general.--Effective on October 1, 2020, part VII of 
        subtitle B of title III of the Agricultural Adjustment Act of 
        1938 (7 U.S.C. 1359aa et seq.) is amended to read as follows:

                           ``PART VII--SUGAR

``SEC. 359A. ADMINISTRATION OF TARIFF-RATE QUOTAS.

    ``(a) Establishment.--Notwithstanding any other provision of law, 
at the beginning of fiscal year 2021 and each fiscal year thereafter 
through the end of the effective period described in subsection (d), 
the Secretary shall establish tariff-rate quotas for raw cane sugar and 
refined beet sugar--
            ``(1) to provide adequate supplies of sugar at reasonable 
        prices; and
            ``(2) at such levels as are necessary to comply with 
        obligations under international trade agreements that have been 
        approved by Congress.
    ``(b) Adjustment Authority.--The Secretary shall adjust tariff-rate 
quotas established under subsection (a) in such a manner as to ensure, 
to the maximum extent practicable, that--
            ``(1) the final ratio of sugar stocks to total sugar use at 
        the end of each fiscal year is 15.5 percent; and
            ``(2) stocks of raw cane and refined beet sugar are 
        adequate throughout each fiscal year to meet the needs of the 
        marketplace, including the efficient use of cane refining 
        capacity.
    ``(c) Transfer of Quota Shares.--
            ``(1) In general.--The Secretary shall promulgate 
        regulations that--
                    ``(A) promote the maximum practicable use of the 
                tariff-rate quotas established under subsection (a);
                    ``(B) ensure adequate supplies of raw cane sugar 
                for cane refiners in the United States; and
                    ``(C) provide that any country that has been 
                allocated a share of the tariff-rate quotas established 
                under subsection (a) may temporarily transfer all or 
                part of the share to any other country that has been 
                allocated a share of the quotas.
            ``(2) Transfers voluntary.--Any transfer under paragraph 
        (1)(C) shall be valid only--
                    ``(A) pursuant to a voluntary agreement between the 
                transferor and the transferee; and
                    ``(B) consistent with procedures established by the 
                Secretary.
            ``(3) Limitations on transfers with respect to fiscal 
        year.--
                    ``(A) In general.--Any transfer under paragraph 
                (1)(C) shall be valid only for the duration of the 
                fiscal year during which the transfer is made.
                    ``(B) Following fiscal year.--No transfer under 
                paragraph (1)(C) shall affect the share of the quota 
                allocated to the transferor or transferee for the next 
                fiscal year after the fiscal year during which the 
                transfer is made.
    ``(d) Effective Period.--This section shall be effective only 
through fiscal year 2023.''.
            (2) Continued application of prior law to certain sugar 
        crops.--Part VII of subtitle B of title III of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.), as in effect 
        on the day before the date specified in paragraph (1), shall 
        continue to apply to the 2019 and 2020 crop years for sugarcane 
        and sugar beets.

SEC. 5. SENSE OF CONGRESS.

    It is the sense of Congress that the President should establish as 
major goals of the trade policy of the United States--
            (1) the elimination of all direct and indirect subsidies 
        benefitting the production or export of sugar by any 
        government; and
            (2) the enforcement, negotiation, and implementation of 
        trade agreements that--
                    (A) provide commercially meaningful sugar trade 
                liberalization globally; and
                    (B) enhance trade opportunities for the 
                agricultural sector and other sectors of the economy of 
                the United States.
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