Agricultural decarbonization transition payments

(a) Purposes The purposes of this section are— (1) to provide transition assistance to eligible producers in the agricultural sector to prepare for and facilitate entry into greenhouse gas credit markets; and (2) to provide for the collection and reporting of data under subsection (d). (b) Definitions In this section: (1) Eligible land The term eligible land means land in the United States, including territories of the United States and Indian land (as defined in section 2601 of the Energy Policy Act of 1992 (25 U.S.C. 3501)), that has a cropping or livestock history during each of the 3 years preceding the date on which a payment is provided under the program with respect to the land, as determined by the Secretary. (2) Eligible producer The term eligible producer means an individual or legal entity that— (A) is an owner, operator, or tenant of eligible land; and (B) has the ability to enter into an agreement with the Secretary to carry out qualifying actions described in subsection (c)(2) under the program. (3) Greenhouse gas emissions reduction The term greenhouse gas emissions reduction means the reduction in greenhouse gas emissions as a result of the adoption of qualifying actions described in subsection (c)(2), as compared to an historical baseline. (4) Program The term program means the program established under subsection (c)(1). (5) Secretary The term Secretary means the Secretary of Agriculture. (6) Traditionally underserved The term traditionally underserved, with respect to an eligible producer, means that the eligible producer— (A) has been socially or economically disadvantaged by previous discriminatory laws or policies based on race, ethnicity, or disability; (B) is new to agriculture, as determined by the Secretary; (C) (i) has served in the United States Armed Forces; and (ii) (I) has not operated an agriculture operation; (II) is new to agriculture, as determined by the Secretary; or (III) first obtained veteran status during the previous 5-year period; (D) is an owner, operator, or tenant of a limited resource agriculture operation; or (E) has a household income not greater than the national poverty level. (c) Establishment of program (1) In general The Secretary shall establish a program to provide payments to eligible producers that will assist with reducing greenhouse gas emissions through the adoption of qualifying actions described in paragraph (2). (2) Qualifying actions (A) In general The Secretary shall determine actions that qualify for payments under the program. (B) Requirements To be a qualifying action under subparagraph (A), an action shall be— (i) a climate-smart practice, including— (I) a practice determined by a land-grant college or university (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)); or (II) climate-smart energy generation, fueling, or efficiency; and (ii) measurable, reportable, and verifiable for reducing greenhouse gas emissions, as determined by the Secretary. (3) Considerations In determining the rate and duration of a payment under paragraph (1), the Secretary shall consider— (A) the degree of additionality of the greenhouse gas emissions reduction; (B) whether the recipient of the payment was an early adopter of 1 or more practices that reduce greenhouse gas emissions; (C) the likelihood that the applicable qualifying action described in paragraph (2) would have been carried out absent the provision of the payment; (D) the degree of transitionality or permanence of the greenhouse gas emissions reduction; (E) whether the applicable qualifying action described in paragraph (2) provides multiple environmental and health co-benefits in addition to reduced greenhouse gas emissions; (F) the degree to which the recipient of the payment is a traditionally underserved eligible producer; (G) the integration with and enhancement of payments and policies of similar Federal, State, or local programs; and (H) any payments received, or to be received, by the applicable eligible producer from a similar Federal, State, or local program for applicable qualifying actions described in paragraph (2). (4) Ineligibility A person that is determined to be in violation of any applicable water or air quality regulation, including under the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) (including regulations), shall not be eligible for any payment under paragraph (1) during the period of the violation. (5) Effectiveness The authority to provide payments under this subsection shall be effective for each of the first 10 fiscal years beginning after September 30, 2026. (d) Collection of data and reporting (1) Measurement system The Secretary shall use an outcomes-based measurement system that uses the best available science and technology for cost-effective recordkeeping, modeling, and measurement of farm-level greenhouse gas emissions on eligible land enrolled in the program. (2) Inventory (A) In general For the purposes of providing payments under the program, the Secretary shall conduct a nationwide soil health and agricultural greenhouse gas emissions inventory that uses the best available science and data to establish baselines and expected average performance for soil carbon drawdown and storage and greenhouse gas emissions reduction by primary production type and production region. (B) Database The Secretary shall— (i) establish an accessible and interoperable database for the inventory established under subparagraph (A) using the measurement system established under paragraph (1); and (ii) improve and update the database as new data is collected, but not less frequently than once every 2 years. (3) Criteria (A) In general The Secretary shall establish criteria for payments under the program to inform policy and markets established to promote greenhouse gas emissions reductions. (B) Requirements The criteria established under subparagraph (A) shall— (i) have a documented likelihood of providing long-term net greenhouse gas emissions reductions, according to the best available science; (ii) be based in part on environmental impact modeling of the changes of shifting from baseline practices to new or improved practices; and (iii) prevent, to the maximum extent practicable, the degradation of other natural resource or environmental conditions. (4) Measurement, reporting, monitoring, and verification services (A) In general The Secretary— (i) shall provide services described in subparagraph (B) to eligible producers participating in the program; and (ii) may approve and provide oversight of 1 or more third-party agents to provide services described in subparagraph (B) to eligible producers participating in the program. (B) Services described Services referred to in subparagraph (A) are determining the greenhouse gas emissions reduction by— (i) measurement; (ii) reporting; (iii) monitoring; and (iv) verification. (C) Use of protocols Services referred to in subparagraph (A) shall be provided using— (i) the measurement system described in paragraph (1); and (ii) the criteria described in paragraph (3). (D) Privacy and data security (i) In general The Secretary shall establish— (I) safeguards to protect the privacy of information that is submitted through or retained by a third-party agent approved under subparagraph (A), including employees and contractors of the third-party agent; and (II) such other rules and standards of data security as the Secretary determines to be appropriate to carry out this subsection. (ii) Penalties The Secretary shall establish penalties for any violations of privacy or confidentiality under clause (i). (E) Disclosure of information (i) Public disclosure Information collected for purposes of services provided under subparagraph (A) may be disclosed to the public— (I) if the information is transformed into a statistical or aggregate form such that the information does not include any identifiable or personal information of individual producers; or (II) in a form that may include identifiable or personal information of a producer only if that producer consents to the disclosure of the information. (ii) Research, audit, and program improvement Information collected for the purposes of services provided under subparagraph (A) may be disclosed for the purposes of providing technical assistance, including audit, research, or improvement of a program under this section, either in aggregate or in a form that includes identifiable or personal information of a producer, if the Secretary obtains adequate assurances that— (I) the recipient shall ensure privacy safeguards of identifiable or personal information of a producer; and (II) the release of any data to the public will only occur only if the data has been transformed into a statistical or aggregate form. (e) Regulations Not later than July 1, 2026, the Secretary shall promulgate regulations to carry out this section, including— (1) the amount of a payment under subsection (c), which shall be based on— (A) the quantity of CO 2 -e reduced; and (B) the considerations described in subsection (c)(3); (2) a methodology that any third-party agents approved under subsection (d)(4)(A)(ii) shall use to provide the services under that subsection, including— (A) an accreditation process; and (B) a conflict of interest policy; and (3) provisions for the ownership and transportability of data, including historical data, generated by an eligible producer for the purpose of determining eligibility for payments under the program.