II 118th CONGRESS 1st Session S. 2936 IN THE SENATE OF THE UNITED STATES September 27 (legislative day, September 22), 2023 Ms. Baldwin (for herself, Mr. King , Mrs. Gillibrand , and Mr. Welch ) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To establish as a permanent program the organic market development grant program of the Department of Agriculture.

1. Organic market development grant program (a) Definitions In this section: (1) Certified organic product The term certified organic product means an agricultural product (as defined in section 2103 of the Organic Foods Production Act of 1990 ( 7 U.S.C. 6502 )) that is organically produced (as defined in that section). (2) Eligible entity (A) In general The term eligible entity means an entity described in subparagraph (B) that— (i) is owned and operated within— (I) a State; (II) the District of Columbia; (III) the Commonwealth of Puerto Rico; (IV) the United States Virgin Islands; (V) Guam; (VI) American Samoa; (VII) the Commonwealth of the Northern Mariana Islands; or (VIII) the jurisdiction of a Tribal government; and (ii) (I) is certified in accordance with subpart E of part 205 of title 7, Code of Federal Regulations (or successor regulations); or (II) is in transition to certification. (B) Entities described An entity referred to in subparagraph (A) is— (i) a producer, producer cooperative, or other commercial entity that produces or handles certified organic products; (ii) a nonprofit corporation; (iii) a trade association; (iv) a public benefit corporation; (v) a philanthropic organization; (vi) a unit of Tribal, State, territorial, or local government; or (vii) such other entity as the Secretary may designate. (C) Exclusion The term eligible entity does not include an entity described in subparagraph (B) the operations of which are suspended or revoked under section 205.662 of title 7, Code of Federal Regulations (or a successor regulation). (3) Secretary The term Secretary means the Secretary of Agriculture. (4) Transition to certification The term transition to certification , with respect to an eligible entity, means the period of time during which the crops or livestock of the eligible entity, as applicable, are managed in accordance with the requirements of the National Organic Program before being granted organic certification, which may include— (A) the management of cropland organically for not less than 3 years; (B) the management of slaughter of livestock organically from the last third of gestation; (C) the management of dairy animals organically for not less than 1 year; (D) the management of poultry organically from the second day of life; and (E) such other conditions as the Secretary may require. (b) Establishment and purpose The Secretary, acting through the Administrator of the Agricultural Marketing Service, shall establish a program, to be known as the Organic Market Development Grant Program , that— (1) increases the capacity of the domestic organic product supply chain for producers, handlers, suppliers, and processors of certified organic products; (2) modernizes manufacturing, tracking, storage, and information technology systems specific to the purposes described in this subsection, such as process control or organic product ingredient tracking systems; (3) improves the capacity of eligible entities to comply with applicable regulatory requirements or quality standards required to access markets, such as requirements and standards relating to food safety and organic product certification; (4) expands capacity for storage, processing, aggregation, and distribution of certified organic products to create more and better markets for producers of certified organic products; (5) facilitates market development for domestically produced certified organic products; (6) provides for the conduct of feasibility studies and market viability assessments to inform organic transition strategies and opportunities; (7) ameliorates barriers to entry to organic product certification for historically underserved entities; (8) supports market and promotional activities that help build commercial markets for certified organic products in the United States; and (9) provides technical assistance and outreach to program stakeholders and participants. (c) Grants For each fiscal year for which amounts are made available to carry out this section under subsection (k), the Secretary shall provide grants to support eligible entities in conducting activities in accordance with the purposes of the program described in subsection (b). (d) Applications (1) In general To be eligible to receive a grant under this section, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (2) Simplified process The Secretary shall implement a simplified application and award process under this section for use by any eligible entity seeking to carry out an equipment-only project. (3) Benefits (A) In general Except as provided in subparagraph (B), an application submitted under this subsection shall include a description of the direct or indirect producer or food business benefits intended by the eligible entity to result from the proposed project within a reasonable period of time after the receipt of a grant under this section. (B) Exception Subparagraph (A) shall not apply to any feasibility study or market viability assessment conducted pursuant to this section. (4) Criteria The Secretary shall establish such criteria for the evaluation and funding of proposed projects under this section as the Secretary determines to be appropriate. (5) Competitive process The Secretary— (A) shall conduct a competitive process to select applications submitted under this subsection; (B) may assess and rank applications with similar purposes as a group; and (C) before accepting any application under this subsection, shall publish the criteria to be used in evaluating the applications. (e) Project types An eligible entity may use amounts received under this section to carry out, in accordance with such goals and deadlines for completion as the Secretary may establish, the following types of projects: (1) Market development and promotion of certified organic products. (2) Certified organic product storage (including cold storage), aggregation, processing, and distribution capacity expansion. (3) Equipment-only. (f) Term Unless otherwise determined by the Secretary, a grant provided under this section shall have a term of not longer than 3 years. (g) Maximum amount (1) In general The amount of a grant provided under this section for a project described in paragraph (1) or (2) of subsection (e) shall be not more than $3,000,000. (2) Simplified equipment-only projects The amount of a grant provided under this section for a project described in subsection (e)(3) shall be not more than $100,000. (h) Matching funds (1) In general An eligible entity that receives a grant under this section to carry out a project described in paragraph (1) or (2) of subsection (e) shall provide a non-Federal share equal to not less than 50 percent of the cost of the project. (2) Simplified equipment-only projects An eligible entity that receives a grant under this section to carry out a project described in subsection (e)(3) shall not be required to contribute a non-Federal share to the cost of the project. (i) Inapplicability of prior limitations (1) Quantity The Secretary may provide a grant under this section to more than 1 eligible entity, as the Secretary determines to be appropriate. (2) Construction and structural changes A grant provided under this section may be used by an eligible entity for— (A) new construction; or (B) any structural modification to an existing building or facility resulting in— (i) an expansion in the square footage of the building or facility; or (ii) a change to the floor, the foundation, or an exterior or load-bearing wall of the building or facility. (j) Technical assistance The Secretary may provide to eligible entities technical assistance under this section, directly or through a cooperative agreement. (k) Funding (1) Mandatory funding Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $75,000,000 for fiscal year 2024 and each fiscal year thereafter, to remain available until expended. (2) Authorization of appropriations There is authorized to be appropriated to carry out this section $25,000,000 for fiscal year 2024 and each fiscal year thereafter, to remain available until expended.