I 118th CONGRESS 1st Session H. R. 4327 IN THE HOUSE OF REPRESENTATIVES June 23, 2023 Mr. Costa (for himself, Ms. Pingree , and Mr. Valadao ) introduced the following bill; which was referred to the Committee on Agriculture A BILL To direct the Secretary of Agriculture to establish the alternative manure management program, and for other purposes.

1. Short title This Act may be cited as the Converting Our Waste Sustainably (COWS) Act of 2023 . 2. Alternative Manure Management Program Chapter 5 of subtitle D of title XII of the Food Security Act of 1985 ( 16 U.S.C. 3839bb et seq. ) is amended by adding at the end the following: 1240S. Alternative Manure Management Program (a) Definitions In this section: (1) Alternative manure management program The term alternative manure management program means the program established under subsection (b). (2) Covered management measure The term covered management measure means a dairy or livestock operation method that is used by an eligible producer to reduce baseline methane emissions and, where applicable, improve carbon sequestration on the operation of such eligible producer, including the measures described in subparagraphs (A) through (D) in subsection (f)(2). (3) Eligible producer The term eligible producer means a dairy or livestock producer— (A) who agrees to reduce greenhouse gas emissions by adopting at least 1 covered management measure as an alternative or complement to anaerobic systems that capture methane emissions; (B) whose baseline manure management practices prior to enrollment in the alternative manure management program include the anaerobic decomposition of volatile solids stored in a lagoon or other predominantly liquid anaerobic environment; or (C) in the case of a dairy or livestock producer whose baseline manure management practices prior to enrollment in the alternative manure management program includes an anaerobic system that captures methane emissions, that can replace or complement such anaerobic system with a covered management measure. (4) Pasture-based management The term pasture-based management means a dairy or livestock production system— (A) that eliminates or reduces the quantity of manure stored in anaerobic conditions; and (B) in which the livestock spend all or a substantial portion of time grazing on fields in which some or all of the manure is deposited and left in the field to decompose aerobically. (5) Solid separation system The term solid separation system means a system that is designed to separate liquid components of manure from mineral and organic solid components of such manure. (b) Establishment The Secretary shall establish an alternative manure management program to award contracts to eligible producers to support carbon sequestration and greenhouse gas emissions reductions by implementing covered management measures. (c) Submission of individual contract offers To be eligible to participate in the alternative manure management program, an eligible producer shall submit to the Secretary a contract offer that details any covered management measure to be used on the operation of such eligible producer. (d) Cluster contract offers The Secretary shall establish procedures under which— (1) a group of producers may submit a joint contract offer for a shared composting facility; and (2) the Secretary will allocate payments to each eligible producer associated with such joint contract. (e) Duties of Secretary (1) Evaluation criteria The Secretary shall develop criteria for evaluating and ranking contract offers to prioritize contract offers that will maximize— (A) carbon sequestration; (B) greenhouse gas emissions reductions; and (C) the overall environmental and public health benefits. (2) Priority In awarding contracts under this section, the Secretary, using the criteria developed under paragraph (1), shall give priority to contract offers that address air quality, water quality, or other public health concerns associated with dairy and livestock operations located near low-income or underserved communities. (3) Grouping of contract offers The Secretary may group and evaluate contract offers relative to other contract offers for similar farming operations. (4) Geographical diversity In awarding contracts under this section, the Secretary shall ensure geographical diversity. (f) Contract provisions (1) Term A contract awarded under this section shall have a term that does not exceed 3 years. (2) Covered management measures Each eligible producer requesting funding under the alternative manure management program shall implement at least one of the following: (A) With respect to pasture-based management— (i) adopting pasture-based management; (ii) converting a non-pasture dairy or livestock operation to pasture-based management; (iii) increasing the amount of time livestock spend at pasture at an existing pasture operation; or (iv) improving pasture-based management, including transitioning to management-intensive rotational grazing, as defined in section 1240L(d). (B) Adopting alternative manure treatment and storage practices, including— (i) the installation of a compost-bedded pack barn that composts manure; (ii) the installation of a slatted floor pit storage manure collection that is cleaned out at least once a month; or (iii) other similar practices, as determined by the Secretary. (C) Adopting a solid separation system— (i) or— (I) installing a new solid separation system that has a significantly higher separation efficiency than any existing solid separation system; or (II) developing or retrofitting a manure management system that primarily avoids wet handling infrastructure; and (ii) in conjunction with one or more of the following management measures: (I) Open solar drying or composting of manure onsite. (II) Solar drying in an enclosed environment. (III) Forced evaporation with natural-gas fueled dryers. (IV) Storage of manure in unconfined piles or stacks. (V) Composting in an enclosed vessel, with forced aeration and continuous mixing. (VI) Composting in piles with forced aeration without mixing. (VII) Composting in intensive windrows with regular turning for mixing and aeration. (VIII) Composting in passive windrows with infrequent turning for mixing and aeration. (IX) Vermiculture or Vermifiltration. (X) Other similar management measures, as determined by the Secretary. (D) Adopting scrape technologies, including vacuum technologies, in conjunction with one of the management measures listed in subclauses (I) through (IX) of subparagraph (C)(ii). (3) Duties of eligible producers under contract To receive payments under the alternative manure management program, an eligible producer shall— (A) implement one or more covered management measures; (B) supply information as required by the Secretary to determine compliance with the requirements of the alternative manure management program; and (C) comply with such additional provisions as the Secretary determines are necessary to carry out the alternative manure management program. (g) Payments to eligible producers (1) In general During the fiscal years 2024 through 2029, the Secretary shall provide payments to eligible producers that enter into contracts with the Secretary under the alternative manure management program. (2) Availability of payments Payments provided to an eligible producer under this section may be used to implement one or more covered management measures. (3) Cost-sharing (A) Federal share The Federal share of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, and training related to implementing a covered management measure under the alternative manure management program shall not exceed 90 percent. (B) Non-Federal share The non-Federal share of the costs described in subparagraph (A) may include in-kind contributions from eligible producers that enter into a contract under the alternative manure management program. (4) Limitation on payments A person or legal entity (including a joint venture and a general partnership) may not receive, directly or indirectly, payments under the alternative manure management program that exceed $825,000 during any 5-year period. (5) Advanced payments The Secretary shall provide at least 50 percent of the amount of total payments to an eligible producer in advance for all costs related to— (A) purchasing or contracting materials and equipment; or (B) any technical assistance provided by the Secretary. (h) Modification or termination of contracts (1) Voluntary modification or termination The Secretary may modify or terminate a contract entered into with an eligible producer under the alternative manure management program if— (A) such eligible producer agrees to such modification or termination; and (B) the Secretary determines that such modification or termination is in the public interest. (2) Involuntary termination The Secretary may terminate a contract under the alternative manure management program if the Secretary determines that an eligible producer violated such contract. (i) Duties of the Secretary The Secretary shall— (1) determine and publish factors for estimating the carbon sequestrations and greenhouse gas emissions reductions for each covered management measure, including the management measures listed in subclauses (I) through (IX) in subsection (f)(2)(C)(ii); (2) assist an eligible producer in achieving the carbon sequestration, greenhouse gas emissions reduction, and other environmental and public health goals of the alternative manure management program by— (A) providing payments for developing and implementing one or more covered management measures, as appropriate; and (B) providing such eligible producer with information, technical assistance, and training to aid in implementation of the covered management measures; and (3) review the adequacy of existing conservation practice standards for supporting the covered management measures and, if necessary— (A) revise existing conservation practice standards; and (B) develop new conservation practice standards. (j) Technical assistance In providing technical assistance under the alternative manure management program, the Secretary shall apply the provisions in subsection (c) of section 1241 and section 1242, except that the Secretary shall— (1) apportion not more than 15 percent of the total funding available for the alternative manure management program for the provision of technical assistance; and (2) enter into cooperative agreements with third-party providers with relevant expertise in the covered management measures to ensure adequate technical services are available to alternative manure management program applicants. (k) Funding (1) In general The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out the alternative manure management program (including the provision of technical assistance described in subsection (i)) using $1,500,000,000 for the period of fiscal years 2024 through 2028. (2) Reservation of funds The Secretary shall reserve a majority of the funds made available by paragraph (1) for — (A) beginning farmers or ranchers; (B) limited resource farmers and ranchers; (C) socially disadvantaged farmers and ranchers; and (D) farmers and ranchers that continue to transition towards enhanced methods of sequestering carbon dioxide, methane, or nitrous oxide emissions. . 3. Erodible land and wetland conservation and reserve program Section 1201(a) of the Food Security Act of 1985 ( 16 U.S.C. 3801(a) ) is amended— (1) by redesignating paragraphs (3) through (27) as paragraphs (4) through (28), respectively; and (2) by inserting after paragraph (2) the following: (3) Composting practice The term composting practice means— (A) an activity (including an activity that does not require the use of a composting facility) to produce compost from organic waste that is— (i) generated on a farm; or (ii) brought to a farm from the nearby community; and (B) the use and active management of compost on a farm to improve water retention and soil health, subject to the condition that such use shall be in compliance with applicable Federal, State, and local laws. . 4. Environmental Quality Incentives Program Section 1240A(6)(A)(ii) of the Food Security Act of 1985 ( 16 U.S.C. 3839aa–1(6)(A)(ii) ) is amended by inserting and composting practices before the semicolon. 5. Conservation stewardship program Section 1240I(2)(B)(i) of the Food Security Act of 1985 ( 16 U.S.C. 3839aa–21(2)(B)(i) ) is amended by inserting and composting practices after drainage management systems . 6. Delivery of technical assistance Section 1242(h) of the Food Security Act of 1985 ( 16 U.S.C. 3842(h) ) is amended by adding at the end the following: (5) Development of composting practice standard Not later than one year after the date of enactment of this paragraph, the Secretary shall— (A) conduct a review of the composting facilities practice standard and the soil carbon amendment practice standard to determine their adequacy in advancing alternative manure management and on-farm composting generation and utilization; and (B) develop and implement a new conservation practice standard for the on-farm production of compost. .