Collapse to view only § 9071a. Dairy donation program
§ 9071. Milk donation program
(a) DefinitionsIn this section:
(1) Eligible dairy organizationThe term “eligible dairy organization” means a dairy farmer (either individually or as part of a cooperative), or a dairy processor, who—
(A) accounts to a Federal milk marketing order marketwide pool; and
(B) incurs qualified expenses under subsection (e).
(2) Eligible distributor
(3) Eligible milk
(4) Eligible partnership
(5) Participating partnership
(b) Program required; purposesNot later than 180 days after December 20, 2018, the Secretary shall establish and administer a milk donation program for the purposes of—
(1) encouraging the donation of eligible milk;
(2) providing nutrition assistance to individuals in low-income groups; and
(3) reducing food waste.
(c) Donation and distribution plans
(1) In generalTo be eligible to receive reimbursement under subsection (d), an eligible partnership shall submit to the Secretary a donation and distribution plan that—
(A) describes the process that the eligible partnership will use for the donation, processing, transportation, temporary storage, and distribution of eligible milk;
(B) includes an estimate of the quantity of eligible milk that the eligible partnership will donate each year, based on—
(i) preplanned donations; and
(ii) contingency plans to address unanticipated donations; and
(C) describes the rate at which the eligible partnership will be reimbursed, which shall be based on a percentage of the limitation described in subsection (e)(2), not to exceed 100 percent.
(2) Review and approvalNot less frequently than annually, the Secretary shall—
(A) review donation and distribution plans submitted under paragraph (1); and
(B) determine whether to approve or disapprove each of those donation and distribution plans.
(d) Reimbursement
(1) In general
(2) Documentation
(A) In general
(B) Verification
(3) Retroactive reimbursement
(e) Qualified expenses
(1) In generalThe amount of a reimbursement under subsection (d) shall be an amount equal to the product of—
(A) the quantity of eligible milk donated by the eligible dairy organization under a donation and distribution plan approved by the Secretary under subsection (c); and
(B) subject to the limitation under paragraph (2), the rate described in that donation and distribution plan under subsection (c)(1)(C).
(2) Limitation
(f) Preapproval
(1) In generalThe Secretary shall—
(A) establish a process for an eligible partnership to apply for preapproval of donation and distribution plans under subsection (c); and
(B) not less frequently than annually, preapprove an amount for qualified expenses described in subsection (e) that the Secretary will allocate for reimbursement under each donation and distribution plan preapproved under subparagraph (A), based on an assessment of—
(i) the feasibility of the plan; and
(ii) the extent to which the plan advances the purposes described in subsection (b).
(2) Preference
(3) Adjustments
(A) In general
(B) Requests for increase
(i) In general
(ii) Interim approval; incremental increase
(g) Prohibition on resale of products
(1) In general
(2) Prohibition on future participation
(h) Administration
(i) Reviews
(j) Funding
(Pub. L. 113–79, title I, § 1431, as added Pub. L. 115–334, title I, § 1404(b)(1), Dec. 20, 2018, 132 Stat. 4519.)
§ 9071a. Dairy donation program
(a) DefinitionsIn this section:
(1) Eligible dairy organization
(2) Eligible dairy product
(3) Eligible distributor
(4) Eligible partnership
(b) Establishment and purposesNot later than 60 days after December 27, 2020, the Secretary shall establish and administer a dairy donation program for the purposes of—
(1) facilitating the timely donation of eligible dairy products; and
(2) preventing and minimizing food waste.
(c) Donation and distribution plans
(1) In general
(2) Review and approval
(A) In generalNot later than 15 business days after receiving a plan described in paragraph (1), the Secretary shall—
(i) review that plan; and
(ii) issue an approval or disapproval of that plan.
(B) Emergency and disaster-related prioritization
(i) In generalIn receiving and reviewing a donation and distribution plan submitted under paragraph (1), the Secretary shall determine whether an emergency or disaster was a substantial factor in the submission, including—(I) a declared or renewed public health emergency under section 247d of title 42; and(II) a disaster designated by the Secretary.
(ii) Priority review
(d) Reimbursement
(1) In generalOn receipt of appropriate documentation under paragraph (3), the Secretary shall reimburse an eligible dairy organization that is a member of an eligible partnership for which the Secretary has approved a donation and distribution plan under subsection (c)(2)(A)(ii) at a rate equal to the product obtained by multiplying—
(A) the current reimbursement price described in paragraph (2); and
(B) the volume of milk required to make the donated eligible dairy product.
(2) Reimbursement priceThe Secretary—
(A) shall set the reimbursement price referred to in paragraph (1)(A) at a value that shall—
(i) be representative of the cost of the milk required to make the donated eligible dairy product;
(ii) be between the lowest and highest of the class I, II, III, or IV milk prices on the date of the production of the eligible dairy product;
(iii) be sufficient to avoid food waste; and
(iv) not interfere with the commercial marketing of milk or dairy products;
(B) may set appropriate reimbursement prices under subparagraph (A) for different eligible dairy products by class and region for the purpose of—
(i) encouraging the donation of surplus eligible dairy products;
(ii) facilitating the orderly marketing of milk;
(iii) reducing volatility relating to significant market disruptions;
(iv) maintaining traditional price relationships between classes of milk; or
(v) stabilizing on-farm milk prices.
(3) Documentation
(A) In generalAn eligible dairy organization shall submit to the Secretary such documentation as the Secretary may require to demonstrate—
(i) the production of the eligible dairy product; and
(ii) the donation of the eligible dairy product to an eligible distributor.
(B) Verification
(4) Retroactive reimbursement
(5) Emergency and disaster-related prioritization
(e) Prohibition on resale of products
(1) In general
(2) Prohibition on future participation
(f) Reviews
(g) Publication of donation activity
(h) Supplemental reimbursements
(1) In general
(2) Reimbursement calculationA supplemental reimbursement described in paragraph (1) shall be an amount equal to—
(A) the reimbursement calculated under subsection (d); minus
(B) the reimbursement under the milk donation program described in paragraph (1).
(i) Funding
(Pub. L. 116–260, div. N, title VII, § 762, Dec. 27, 2020, 134 Stat. 2111.)