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.) (as amended by section 304) is amended by adding at the end the following: 1240T. 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 that eligible producer, including the measures described in subparagraphs (A) through (D) of subsection (f)(2). (3) Eligible producer The term eligible producer means a dairy or livestock producer that 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. (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 animals spend all or a substantial portion of their time grazing on fields in which some or all of the manure is deposited and left in the field and decomposes aerobically. (5) Solid separation system The term solid separation system means a system designed to separate liquid components of manure from mineral and organic solid components of that 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 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 management measure to be used on the operation of the eligible producer. (d) Cluster contract offers The Secretary shall establish procedures under which— (1) groups of eligible producers may submit a joint contract offer for a shared composting facility; and (2) the Secretary shall allocate payments to each eligible producer associated with a joint contract described in paragraph (1). (e) Evaluating applications (1) Criteria The Secretary shall develop criteria for evaluating applications 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 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 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 for a project under the alternative manure management program shall implement at least 1 of the following management measures: (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)(1)). (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 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) (i) In conjunction with 1 or more management measures described in clause (ii)— (I) adopting a solid separation system; (II) installing a new solid separation system that has a significantly higher separation efficiency than any existing solid separation system; or (III) developing or retrofitting a manure management system that primarily avoids wet handling infrastructure. (ii) The management measures referred to in clause (i) are the following: (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 activities, as determined by the Secretary. (D) Adopting scrape technologies, in conjunction with 1 of the management measures described in subclauses (I) through (X) 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 1 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 each of fiscal years 2026 through 2030, 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 1 or more covered management measures. (3) Payment amounts The Secretary may provide a payment to an eligible producer under the alternative manure management program for an amount that is up to 100 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, and training relating to implementing a covered management measure. (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 program that exceed $825,000 during any 5-year period. (5) Advanced payments The Secretary shall provide not less than 50 percent of the amount of total payments to an eligible producer in advance for all costs relating 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 The Secretary may modify or terminate a contract entered into with an eligible producer under the alternative manure management program if— (A) the producer agrees to the modification or termination; and (B) the Secretary determines that the modification or termination is in the public interest. (2) Involuntary The Secretary may terminate a contract under the alternative manure management program if the Secretary determines that the eligible producer violated the contract. (i) Duties of Secretary The Secretary shall— (1) determine and publish factors for estimating the carbon sequestration and greenhouse gas emissions reductions for each covered management measure described in subclauses (I) through (X) of 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 plan by— (A) providing payments for developing and implementing 1 or more covered management measures, as appropriate; and (B) providing that eligible producer with information, technical assistance, and training to aid in implementation of the covered management measures; and (3) (A) review the adequacy of existing conservation practice standards for supporting the covered management measures; and (B) if necessary— (i) revise existing conservation practice standards; and (ii) develop new conservation practice standards. (j) Technical assistance In providing technical assistance under the alternative manure management program, the Secretary shall apply sections 1241(c) and 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 (j)) using $1,500,000,000 for the period of fiscal years 2026 through 2030. (2) Reservations of funds The Secretary shall, to the maximum extent practicable, use a majority of the funds made available by paragraph (1) for contract offers from small- and mid-sized dairy and livestock operations, including— (A) beginning farmers or ranchers; (B) limited resource farmers and ranchers; and (C) socially disadvantaged farmers and ranchers..