Analysis by the Legislative Reference Bureau
This bill requires the Department of Agriculture, Trade and Consumer
Protection to create a sustainable agriculture grant program, under which DATCP
may award grants to farmers to 1) implement on-site fossil fuel input efficiency
measures, such as reducing the use of fossil fuel-based fertilizers or pesticides or
adopting alternative fuel technologies like solar or wind power; 2) plant hedgerows,
windrows, riparian buffers, or woody plantings like fruit trees; 3) increase the carbon
stored in the soil, such as by using no- or low-till practices or changing grazing
practices; or 4) develop a conservation management plan for carbon reduction or
sequestration. Under the bill, a grant may not be awarded for a project that occurs
on lands participating in a land retirement program or on commercial forest lands,
or for aquaculture-based projects. A grant also may not be awarded to a farmer who
is eligible for the combined state-federal conservation reserve enhancement
program unless the farmer has already applied for that program, or to a farmer who
is eligible for any other state, federal, or local grant for the same conservation actions
unless the farmer has already applied for that grant.
The bill requires DATCP, in prioritizing grant recipients, to seek to maximize
the total reduction in atmospheric carbon dioxide equivalents per grant dollar
awarded by leveraging other nonstate public or private funding. In addition, DATCP
must prioritize projects that both improve air or water quality and provide
agronomic benefits. The department must also attempt to provide grants to farmers
in different parts of the state and for different types of projects, and must ensure that
small- and medium-sized farms are included in the grant program. Under the bill,
DATCP may use up to 20 percent of the amount appropriated for the grant program
to create educational programs about the grants, to provide technical assistance, to
develop models to assist in prioritizing grant awards, and to administer the grant
program.
The bill allows a grant recipient to use grant funds to make down payments on
equipment or other types of loans related to the purpose of the grant. The bill also
allows grants awarded for carbon storage projects that have an uncertain storage life
to include ongoing annual payments for the previous year's storage or upfront
cumulative payments based on the expected storage in future years.
The bill also allows DATCP to require a grant recipient to allow access to the
property on which the grant project will take place, and requires DATCP to maintain
a public list of all grant recipients, the amount of money spent or borrowed under the
program, and the impact on total atmospheric carbon dioxide equivalents emissions
under the program.
In addition, the bill requires DATCP, in consultation with the UW Extension,
the U.S. Department of Agriculture, the Department of Natural Resources, and
county land and water conservation departments to promulgate rules to administer
the grant program. The bill also requires DATCP to report to the legislature
biennially on the implementation and impact of the grant program.
Finally, the bill provides that an offer of a grant under the new grant program
qualifies as a bona fide offer of cost-sharing. Under the current soil and water
resource management program, unless a farmer receives a bona fide offer of
cost-sharing from DATCP or from DNR, the farmer is not required to follow the
conservation practices set by DATCP and DNR if doing so would require the farmer
to discontinue or modify cropping practices on existing cropland or to discontinue or
modify an existing livestock facility or operation.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB764,1
1Section 1
. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
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AB764,2
1Section 2
. 20.115 (7) (cm) of the statutes is created to read:
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20.115
(7) (cm)
Sustainable agriculture grants. As a continuing appropriation,
3the amounts in the schedule for sustainable agriculture grants under s. 93.60.
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4Section 3
. 93.60 of the statutes is created to read:
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593.60 Sustainable agriculture grant program. (1) For the purposes of
6reducing fossil fuels used in farming and increasing the amount of carbon stored on
7farmland, the department may award grants from the appropriation under s. 20.115
8(7) (cm) to agricultural producers to do any of the following:
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(a) Implement on-site fossil fuel input efficiency measures, including any
10activity or technology that reduces the amount of fuel, electricity, water, fossil
11fuel-based fertilizer, or fossil fuel-based pesticide that is used per unit of
12agricultural output, and including by adopting alternative fuel technologies such as
13wind or solar power.
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(b) Implement above ground carbon sequestration practices such as planting
15hedgerows, windrows, riparian buffers, or woody plantings, including fruit trees.
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(c) Implement an activity or technology that maintains or enhances the
17quantity of organic carbon in the soil, including by cover cropping, using no-till or
18low-till practices, applying manure, applying biochar, or using managed grazing
19practices.
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1(d) Develop a conservation management plan that outlines the producer's plan
2for carbon reduction or sequestration.
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3(2) The department may not award a grant under this section for a project that
4occurs on lands participating in a land retirement program or on commercial forest
5land, or for aquaculture-based projects. The department also may not award a grant
6under this section to a person who is eligible for the state-federal conservation
7reserve enhancement program under s. 93.70 unless the person has first applied for
8enrollment in that program, or to a person who is eligible for any other state, federal,
9or local grant for the same conservation actions unless the person has first applied
10for that grant.
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11(3) In prioritizing grant recipients, the department shall seek to maximize the
12total reduction in atmospheric carbon dioxide equivalents per dollar awarded by
13leveraging other nonstate public or private funding. The department shall also
14prioritize practices, activities, and technologies that both improve air or water
15quality in this state and provide agronomic benefits. The department shall also seek
16to ensure that grants are provided to agricultural producers that are located in
17different regions of the state and that represent different types of agricultural
18enterprises, and shall seek to ensure that small- and medium-sized agricultural
19enterprises are included in the grant program.
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20(4) For purposes of this section and rules promulgated under this section,
21storing one ton of carbon dioxide equivalents in soil or standing trees for 100 years
22shall be considered equal to avoiding one ton of carbon dioxide equivalents
23emissions. Carbon dioxide equivalents stored for less than 100 years must be
24annualized linearly with one-ton year carbon dioxide equivalents storage having
1one-hundredth the relative value as the emission of one ton of carbon dioxide
2equivalents.
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3(5) The department may use up to 20 percent of the amount appropriated under
4s. 20.115 (7) (cm) to create educational campaigns that raise awareness of the grant
5program under this section; to provide technical assistance to grant applicants in
6cooperation with the UW Extension, the natural resources conservation service of
7the federal department of agriculture, the department of natural resources, and
8county land and water conservation departments; to cover the cost of administering
9the program under this section; and to develop programs and models to assist with
10the grant prioritization process under this section.
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11(6) A person who receives a grant under this section may use the grant to make
12down payments on equipment or other types of loans related to the purpose of the
13grant.
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14(7) Grants awarded under sub. (1) (c) for activities or technologies that have
15an uncertain storage life may include ongoing annual payments for the previous
16year's storage, or upfront cumulative payments based on the expected storage in
17future years. Grants that include upfront payments for future benefits must be
18conditioned to include penalties for default due to negligence on the part of the grant
19recipient.
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20(8) The department may require a grant recipient to allow access to the
21property on which the grant project is located, with reasonable notice, to monitor the
22impacts of the project. All grant recipients shall allow information about their
23projects to be made available to the public. The department shall maintain a public
24list of all grant recipients, as well as other pertinent information including total state
1dollars spent or borrowed and the impact on total atmospheric carbon dioxide
2equivalents emissions.
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3(9) The department, in consultation with the UW Extension, the natural
4resources conservation service of the federal department of agriculture, the
5department of natural resources, and county land and water conservation
6departments, shall promulgate rules to administer the program under this section.
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7(10) No later than January 1 of the year following the year in which a grant
8is first awarded under this section, and no later than January 1 of each subsequent
9odd-numbered year, the department shall submit a report on the program under this
10section to the chief clerk of each house of the legislature for distribution to the
11appropriate standing committees under s. 13.172 (3). The report shall document the
12nonstate matching funds that were used by grant recipients; the total state dollars
13awarded under the program; the total state dollars spent on providing technical
14assistance, educational campaigns, and administration; the quantity of carbon
15dioxide equivalents emissions avoided; the quantity of carbon stored for projects
16under sub. (1) (c); and the total impact on atmospheric carbon dioxide equivalents
17emissions of all activities funded under the program to date and expected over the
18life of each project by the categories described under sub. (1) (a) to (c).
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19(11) An offer of a grant under this section shall be considered a bona fide offer
20of cost-sharing.