Sec. 16. Plant-based food innovation initiatives
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The Secretary of Agriculture (in this section referred to as the Secretary ) shall select not fewer than 5 eligible entities to host regionally located plant-based food product and business innovation initiatives for the purposes of— diversifying product markets to reduce risk and developing higher-value use for such products; promoting business development that diversifies the income of producers of plant-based food products through processing and market innovation; and encouraging the production and use of plant-based food products and domestic ingredients for such products. Subject to paragraph (2), an entity is eligible to host an initiative under subsection
(a)if such entity is a State department of agriculture or other State entity, a nonprofit organization, or an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )) that has— a capacity to provide consultation and expertise necessary to advance the purpose and activities of the proposed initiative; and expertise in grant distribution and tracking. Notwithstanding paragraph (1), an animal protein checkoff program shall not be eligible to host an initiative under subsection (a). An eligible entity seeking to host an initiative under subsection
(a)shall submit to the Secretary an application in such time, in such manner, and containing such information as the Secretary may specify. An entity that hosts an initiative shall consult with the Secretary, and the Administrator of the Agricultural Marketing Service in carrying out the initiative. An entity eligible to host an initiative under subsection
(a)may, for purposes of hosting such initiative, partner with an organization or entity with expertise or experience in proteins, including the marketing, research, education, or promotion of plant-based food product. A partnership established pursuant to paragraph
(1)may be established— prior to the submission of the application under subsection (d); or after approval of the application, in consultation with the Secretary. An initiative established under subsection
(a)shall provide directly to producers of plant-based food products assistance through private consultation or widely available distribution. Such assistance may be provided— by the entity that hosts the initiative under subsection (d)(1); through contracting with industry experts; through the provision of technical assistance, such as informational websites, webinars, conferences, trainings, plant tours, and field days; through research institutions; or through workforce development programs. An initiative may provide a grant on a noncompetitive basis to an entity that receives assistance under subparagraph
(A)to advance the business activities recommended as a result of that assistance. Assistance provided by an initiative established under subsection
(a)may include— business consulting, including business plan development for plant-based food products, strategic planning assistance, and distribution and supply chain innovation; marketing and branding assistance, including market messaging, packaging innovation, consumer assessments, innovation in emerging market opportunities, and evaluation of regional, national, and international markets; assistance in product innovation, including the development of value-added products, innovation in byproduct reprocessing and use maximization, and product production training, including in new, rare, or innovative techniques; and other assistance, as determined by the Secretary. An initiative shall provide grants on a competitive basis to new and existing producers of plant-based food products developing plant-based food products for the purpose of— modernization, specialization, and transition of equipment and facilities; value chain and commodity innovation and facility and process updates for plant-based proteins producers; product development, packaging, and marketing of protein products; and transitioning from a livestock or dairy-based production to a plant-based food product-based production. Grants provided under this paragraph shall not exceed $500,000, unless a greater amount is approved by the Secretary. The Secretary shall establish guidelines and procedures to prevent any conflict of interest or the appearance of a conflict of interest by an initiative (including a partner of the initiative) with respect to providing funding under paragraph
(1)or (3). An initiative shall agree, as a condition on the receipt of funds under this section, to comply with such guidelines and procedures. In providing direct assistance under paragraph
(1)and grants under paragraph (3), an initiative shall give priority to— producers of plant-based food products with limited access to other forms of assistance; employee-owned businesses; minority-owned and other businesses owned by members of historically disadvantaged communities; cooperatives; producers of plant-based food products that add substantial value in processing or marketing, such as whole-cut products and specialty products; and institutions of higher education that primarily serve minorities. A foreign person making a direct investment (as those terms are defined in section 801.2 of title 15, Code of Federal Regulations (or successor regulations)) in the United States is not eligible to receive direct assistance under subsection (f)(1) or a grant under subsection (f)(3). In distributing funds made available to carry out this section, the Secretary shall seek to make awards in multiyear funding allocations. Not less than 50 percent of the funds made available under subsection
(i)shall be allocated to grants under subsection (f)(3). Not later than January 31, 2027, the Secretary shall submit to Congress a report on— the outcomes of the initiatives under this section; and any related activities and opportunities that the Secretary may pursue to further increase protein innovation. In this section, the term animal protein checkoff program means a commodity promotion program under a commodity promotion law (as defined in section 501 of the Federal Agriculture Improvement and Reform Act of 1996 ( 7 U.S.C. 7401 )) with respect to commodities consisting of, or produced using animal proteins. There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2023 through 2028.
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