Naturally Offsetting Emissions by Managing and Implementing Tillage Strategies Act of 2023

I 118TH CONGRESS 1ST SESSION H. R. 4163 To amend the Food Security Act of 1985 to optimize the sequestration of carbon and the reduction of net emissions through agricultural prac- tices, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 15, 2023 Mr. GALLAGHER (for himself, Mr. HUFFMAN, and Mr. NUNN of Iowa) intro- duced the following bill; which was referred to the Committee on Agri- culture A BILL To amend the Food Security Act of 1985 to optimize the sequestration of carbon and the reduction of net emis- sions through agricultural practices, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Naturally Offsetting 4 Emissions by Managing and Implementing Tillage Strate- 5 gies Act of 2023’’ or the ‘‘NO EMITS Act of 2023’’. 6 VerDate Sep 11 2014 01:45 Aug 11, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4163.IH H4163 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 4163 IH SEC. 2. SOIL HEALTH TRANSITION INCENTIVE PROGRAM. 1 Section 1240B of the Food Security Act of 1985 (16 2 U.S.C. 3839aa–2) is amended by adding at the end the 3 following: 4 ‘‘(k) SOIL HEALTH TRANSITION INCENTIVE PRO- 5 GRAM.— 6 ‘‘(1) ESTABLISHMENT AND PURPOSES.—The 7 Secretary shall establish a soil health transition in- 8 centive program to assist producers in transitioning 9 to soil health cropping systems by— 10 ‘‘(A) providing incentives to adopt soil 11 health cropping systems, including by address- 12 ing the economic risk during a transition to a 13 new soil health cropping system; and 14 ‘‘(B) providing technical assistance for 15 such a transition. 16 ‘‘(2) CONTRACTS.— 17 ‘‘(A) IN GENERAL.—The Secretary shall 18 enter into soil health transition incentive con- 19 tracts with producers under this subsection to 20 provide payments for— 21 ‘‘(i) the adoption and installation of 22 soil health practices (including cover crop- 23 ping, no till, and minimum till) or cropping 24 systems; and 25 VerDate Sep 11 2014 01:45 Aug 11, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4163.IH H4163 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 4163 IH ‘‘(ii) completing, managing, maintain- 1 ing, and improving the soil health practices 2 or cropping systems for the duration of the 3 contract, as determined appropriate by the 4 Secretary. 5 ‘‘(B) PAYMENT AMOUNTS.—In determining 6 the amount of payments under subparagraph 7 (A), the Secretary shall consider, to the extent 8 practicable— 9 ‘‘(i) the level and extent of the soil 10 health practice or cropping system to be 11 adopted, installed, completed, managed, 12 maintained, or improved; 13 ‘‘(ii) the cost of the adoption, installa- 14 tion, completion, management, mainte- 15 nance, or improvement of the soil health 16 practice or cropping system; 17 ‘‘(iii) income foregone by the pro- 18 ducer, including payments, as appropriate, 19 to address— 20 ‘‘(I) increased economic risk; 21 ‘‘(II) loss in revenue due to an- 22 ticipated reductions in yield; and 23 VerDate Sep 11 2014 01:45 Aug 11, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4163.IH H4163 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 4163 IH ‘‘(III) economic losses during 1 transition to new cropping systems; 2 and 3 ‘‘(iv) the extent to which compensa- 4 tion would ensure long-term continued 5 management, maintenance, and improve- 6 ment of the soil health practice or cropping 7 system. 8 ‘‘(C) TERM.—A contract under this sub- 9 section shall have a term of not fewer than 5 10 years and not more than 7 years. 11 ‘‘(3) INDIVIDUALIZED AGRONOMIC TECHNICAL 12 ASSISTANCE.—To assist producers in making a suc- 13 cessful transition to a soil health cropping system, 14 the Secretary shall provide individualized and 15 multiyear agronomic technical assistance, at the op- 16 tion of the producer, through— 17 ‘‘(A) the Secretary; 18 ‘‘(B) a third-party provider; 19 ‘‘(C) a commercial entity (including a 20 farmer cooperative or agriculture retailer); 21 ‘‘(D) a nonprofit entity with agronomic ex- 22 pertise; or 23 ‘‘(E) a State or local government (includ- 24 ing a conservation district).’’. 25 VerDate Sep 11 2014 01:45 Aug 11, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4163.IH H4163 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 4163 IH SEC. 3. ON-FARM CONSERVATION INNOVATION TRIALS. 1 Section 1240H(c) of the Food Security Act of 1985 2 (16 U.S.C. 3839aa–8(c)) is amended— 3 (1) in paragraph (1)(B)(i)— 4 (A) in subclause (VI), by striking ‘‘; and’’ 5 and inserting a semicolon; and 6 (B) by adding at the end the following: 7 ‘‘(VIII) practices related to live- 8 stock production; and’’; and 9 (2) in paragraph (2), by striking 10 ‘‘$25,000,000’’ and inserting ‘‘$50,000,000’’. 11 SEC. 4. STATE ASSISTANCE FOR SOIL HEALTH. 12 Subchapter B of chapter 4 of subtitle D of title XII 13 of the Food Security Act of 1985 (16 U.S.C. 3839aa–21 14 et seq.) is amended by adding at the end the following: 15 ‘‘SEC. 1240L–2. STATE ASSISTANCE FOR SOIL HEALTH. 16 ‘‘(a) DEFINITIONS.—In this section: 17 ‘‘(1) ELIGIBLE INDIAN TRIBE.—The term ‘eligi- 18 ble Indian tribe’ means an Indian tribe that is— 19 ‘‘(A) implementing a soil health program 20 for the area over which the Indian tribe has ju- 21 risdiction; and 22 ‘‘(B) meeting or exceeding performance 23 measures established by the Indian tribe for the 24 soil health program. 25 VerDate Sep 11 2014 01:45 Aug 11, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4163.IH H4163 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •HR 4163 IH ‘‘(2) ELIGIBLE STATE.—The term ‘eligible 1 State’ means a State that is— 2 ‘‘(A) implementing a soil health program 3 for the State; and 4 ‘‘(B) meeting or exceeding performance 5 measures established by the State for the soil 6 health program. 7 ‘‘(3) SOIL HEALTH PROGRAM.—The term ‘soil 8 health program’ means a program to improve soil 9 health on agricultural land that— 10 ‘‘(A) is broadly consistent with the soil 11 health principles of the Natural Resources Con- 12 servation Service, as determined by the Sec- 13 retary; and 14 ‘‘(B) may include— 15 ‘‘(i) technical assistance; 16 ‘‘(ii) financial assistance; 17 ‘‘(iii) on-farm research and dem- 18 onstration; 19 ‘‘(iv) education, outreach, and train- 20 ing; 21 ‘‘(v) monitoring and evaluation; or 22 ‘‘(vi) such other components as the 23 Secretary determines appropriate. 24 VerDate Sep 11 2014 01:45 Aug 11, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4163.IH H4163 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •HR 4163 IH ‘‘(b) AVAILABILITY AND PURPOSE OF GRANTS.—For 1 fiscal years 2024 through 2028, the Secretary shall make 2 grants to eligible States and eligible Indian tribes for the 3 purpose of improving soil health on agricultural lands 4 through the implementation of State and Tribal soil health 5 programs. 6 ‘‘(c) APPLICATIONS.— 7 ‘‘(1) IN GENERAL.—To receive a grant under 8 this section, an eligible State or eligible Indian tribe 9 shall submit to the Secretary an application at such 10 time, in such a manner, and containing such infor- 11 mation as the Secretary shall require, which shall in- 12 clude— 13 ‘‘(A) a description of performance meas- 14 ures to be used to evaluate the State or Tribal 15 soil health program and the results of any ac- 16 tivities carried out using grant funds received 17 under this section; and 18 ‘‘(B) an assurance that grant funds re- 19 ceived under this section will supplement the 20 expenditure of State or Tribal funds in support 21 of soil health, rather than replace such funds. 22 ‘‘(2) TRIBAL OPTION.—An Indian tribe shall 23 have the option, at the sole discretion of the Indian 24 VerDate Sep 11 2014 01:45 Aug 11, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4163.IH H4163 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •HR 4163 IH tribe, to be incorporated into the application of an 1 eligible State. 2 ‘‘(d) PRIORITY.—In making grants under this sec- 3 tion, the Secretary shall give priority to eligible States and 4 eligible Indian tribes with a climate action plan that in- 5 cludes soil health, as determined by the Secretary. 6 ‘‘(e) GRANTS.— 7 ‘‘(1) AMOUNT.—The amount of a grant to an 8 eligible State or eligible Indian tribe under this sec- 9 tion for a fiscal year may not exceed the lower of— 10 ‘‘(A) $5,000,000; or 11 ‘‘(B) as applicable— 12 ‘‘(i) 50 percent of the cost of imple- 13 menting the State soil health program in 14 the fiscal year; or 15 ‘‘(ii) 75 percent of the cost of imple- 16 menting the Tribal soil health program in 17 the fiscal year. 18 ‘‘(2) TERM.—A grant under this section shall 19 be for 1 year, and may be renewed annually. 20 ‘‘(f) AUDITS AND REVIEWS.—An eligible State or eli- 21 gible Indian tribe receiving a grant under this section shall 22 submit to the Secretary— 23 VerDate Sep 11 2014 01:45 Aug 11, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4163.IH H4163 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •HR 4163 IH ‘‘(1) for each year for which the State or Indian 1 tribe receives such a grant, the results of an audit 2 of the expenditures of the grant funds; and 3 ‘‘(2) at such intervals as the Secretary shall es- 4 tablish, a review and evaluation of the State or Trib- 5 al soil health program. 6 ‘‘(g) EFFECT OF NONCOMPLIANCE.—If the Sec- 7 retary, after reasonable notice to an eligible State or eligi- 8 ble Indian tribe receiving a grant under this section, finds 9 that the State or Indian tribe has failed to comply with 10 the terms of the grant, the Secretary may disqualify, for 11 1 or more years, the State or Indian tribe from receipt 12 of future grants under this section. 13 ‘‘(h) FUNDING.—Of the funds made available to 14 carry out this subchapter, $100,000,000 shall be available 15 in each of fiscal years 2024 through 2028 to carry out 16 this section. 17 ‘‘(i) ADMINISTRATION.— 18 ‘‘(1) DEPARTMENT.—The Secretary may not 19 use more than 3 percent of the funds made available 20 to carry out this section for a fiscal year for admin- 21 istrative expenses. 22 ‘‘(2) STATES OR INDIAN TRIBES.—An eligible 23 State or eligible Indian tribe receiving a grant under 24 this section may not use more than 7 percent of the 25 VerDate Sep 11 2014 01:45 Aug 11, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H4163.IH H4163 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •HR 4163 IH granted funds for a fiscal year for administrative ex- 1 penses.’’. 2 SEC. 5. TECHNICAL ASSISTANCE. 3 Section 1241(c) of the Food Security Act of 1985 (16 4 U.S.C. 3841(c)) is amended by adding at the end the fol- 5 lowing: 6 ‘‘(5) SPECIAL INITIATIVE.— 7 ‘‘(A) IN GENERAL.—In each of fiscal years 8 2024 through 2028, the Secretary shall carry 9 out a special technical assistance initiative to 10 assist producers in mitigating and adapting to 11 climate change, using, of the funds of the Com- 12 modity Credit Corporation, an amount equal to 13 not less than 1 percent of the amount of funds 14 made available by subsection (a) for the fiscal 15 year. 16 ‘‘(B) PROVISION OF TECHNICAL ASSIST- 17 ANCE.—The Secretary shall provide technical 18 assistance under this paragraph to producers— 19 ‘‘(i) in accordance with section 20 1242(c); or 21 ‘‘(ii) notwithstanding such section, 22 through a cooperative agreement or con- 23 tract with— 24 ‘‘(I) a cooperative extension; 25 VerDate Sep 11 2014 01:45 Aug 11, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H4163.IH H4163 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •HR 4163 IH ‘‘(II) a nongovernmental organi- 1 zation; or 2 ‘‘(III) a State, Tribal, or Federal 3 agency. 4 ‘‘(C) UNDERSERVED PRODUCERS.—In pro- 5 viding technical assistance under this paragraph 6 the Secretary shall give priority to producers 7 who are persons described in section 8 1244(a)(2).’’. 9 Æ VerDate Sep 11 2014 01:45 Aug 11, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\H4163.IH H4163 pbinns on DSKJLVW7X2PROD with $$_JOB