Local and regional food aid procurement projects

7 U.S.C. § 1726c
in effect
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(a) DefinitionsIn this section:(1) AdministratorThe term “Administrator” means the Administrator of the Agency for International Development. (2) Appropriate committee of CongressThe term “appropriate committee of Congress” means—(A) the Committee on Agriculture, Nutrition, and Forestry of the Senate; (B) the Committee on Agriculture of the House of Representatives; and (C) the Committee on Foreign Affairs of the House of Representatives. (3) Eligible commodityThe term “eligible commodity” means an agricultural commodity (or the product of an agricultural commodity) that—(A) is produced in, and procured from, a developing country; and (B) at a minimum, meets each nutritional, quality, and labeling standard of the country that receives the agricultural commodity, as determined by the Secretary. (4) Eligible organizationThe term “eligible organization” means an organization that is—(A) described in section 1722(d) of this title; and (B) with respect to nongovernmental organizations, subject to regulations promulgated or guidelines issued to carry out this section, including United States audit requirements that are applicable to nongovernmental organizations. (b) Field-based projects(1) In generalIn accordance with paragraph (2), the Secretary shall provide grants to, or enter into cooperative agreements with, eligible organizations to carry out field-based projects that consist of local or regional procurements of eligible commodities to respond to food crises and disasters in accordance with this section. (2) Consultation with AdministratorIn carrying out the development and implementation of field-based projects under paragraph (1), the Secretary shall consult with the Administrator. (c) Procurement(1) In generalAny eligible commodity that is procured for a field-based project carried out under subsection (b) shall be procured through any approach or methodology that the Secretary considers to be an effective approach or methodology to provide adequate information regarding the manner by which to expedite, to the maximum extent practicable, the provision of food aid to affected populations without significantly increasing commodity costs for low-income consumers who procure commodities sourced from the same markets at which the eligible commodity is procured. (2) Requirements(A) Impact on local farmers and countriesThe Secretary shall ensure that the local or regional procurement of any eligible commodity under this section will not have a disruptive impact on farmers located in, or the economy of—(i) the recipient country of the eligible commodity; or (ii) any country in the region in which the eligible commodity may be procured. (B) TransshipmentThe Secretary shall, in accordance with such terms and conditions as the Secretary considers to be appropriate, require from each eligible organization commitments designed to prevent or restrict—(i) the resale or transshipment of any eligible commodity procured under this section to any country other than the recipient country; and (ii) the use of the eligible commodity for any purpose other than food aid. (C) World prices(i) In generalIn carrying out this section, the Secretary shall take any precaution that the Secretary considers to be reasonable to ensure that the procurement of eligible commodities will not unduly disrupt—(I) world prices for agricultural commodities; or (II) normal patterns of commercial trade with foreign countries. (ii) Procurement priceThe procurement of any eligible commodity shall be made at a reasonable market price with respect to the economy of the country in which the eligible commodity is procured, as determined by the Secretary. (d) Field-based project grants or cooperative agreements(1) In generalThe Secretary shall award grants to, or enter into cooperative agreements with, eligible organizations to carry out field-based projects. (2) Requirements of eligible organizations(A) In generalTo be eligible to receive a grant from, or enter into a cooperative agreement with, the Secretary under this subsection, an eligible organization shall submit to the Secretary an application by such date, in such manner, and containing such information as the Secretary may require. (B) Other applicable requirementsAny other applicable requirement relating to the submission of proposals for consideration shall apply to the submission of an application required under subparagraph (A), as determined by the Secretary. (3) Requirements of Secretary(A) Project diversity(i) In generalSubject to clause (ii) and subparagraph (B), in selecting proposals for field-based projects to fund under this section, the Secretary shall select a diversity of projects, including projects located in—(I) food surplus regions; (II) food deficit regions (that are carried out using regional procurement methods); and (III) multiple geographical regions. (ii) PriorityIn selecting proposals for field-based projects under clause (i), the Secretary shall ensure that the majority of selected proposals are for field-based projects that—(I) are located in Africa; and (II) procure eligible commodities that are produced in Africa. (B) Development assistanceA portion of the funds provided under this subsection shall be made available for field-based projects that provide development assistance for a period of not less than 1 year. (e) Funding(1) Authorization of appropriationsThere is authorized to be appropriated to the Secretary to carry out this section $80,000,000 for each of fiscal years 2019 through 2023. (2) PreferenceIn carrying out this section, the Secretary may give a preference to eligible organizations that have, or are working toward, projects under the McGovern-Dole International Food for Education and Child Nutrition Program established under section 1736o–1 of this title. (3) ReportingEach year, the Secretary shall submit to the appropriate committees of Congress a report that describes the use of funds under this section, including—(A) the impact of procurements and projects on—(i) local and regional agricultural producers; and (ii) markets and consumers, including low-income consumers; and (B) implementation time frames and costs.

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