,,ii #aaith ,,congress #b;d ,session ,s4 #edfa ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bc1 #bjbf,mr4 ,schumer 7for himself and ,ms4 ,klobuchar7 introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,a ,,bill ,to require a study to evaluate the feasibility of establishing a ,strategic ,fertilizer ,reserve for the storage and management of fertilizer products and fertilizer product inputs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,strategic ,fertilizer ,reserve ,act of #bjbf4 #b4 ,definitions ,in this ,act3 7#a7 ,agricultural cooperative ,the term agricultural cooperative means an organization or association formed by agricultural producers1 operating for the mutual benefit of its members1 to collectively market agricultural products1 purchase inputs1 or provide services4 7#b7 ,board ,the term ,board means the ,board of ,directors of the ,strategic ,fertilizer ,reserve ,agency established under section #e7;b74 7#c7 ,fertilizer product ,the term fertilizer product means-- 7,a7 nitrogen1 phosphate1 or potash fertilizer2 and 7,b7 such other plant nutrient products as the ,board may by regulation determine are essential to ,united ,states agricultural production1 taking into consideration factors including-- 7i7 widespread use of the plant nutrient product2 7ii7 lack of substitute products available on the market2 7iii7 relative importance of the plant nutrient product for the production of crops grown in the ,united ,states2 7iv7 vulnerability of the plant nutrient product to supply chain disruptions2 and 7v7 potential economic harm to agricultural producers if the plant nutrient product becomes unavailable or severely restricted in supply4 7#d7 ,fertilizer product input ,the term fertilizer product input means-- 7,a7 critical inputs necessary to make nitrogen1 phosphate1 or potash fertilizer2 and 7,b7 such other plant nutrient product inputs as the ,board may by regulation determine are essential to ,united ,states agricultural production1 taking into consideration factors including the factors described in clauses 7i7 through 7v7 of paragraph 7#c77;,b74 7#e7 ,reserve ,the term ,reserve means the ,strategic ,fertilizer ,reserve established by section #f7;a74 7#f7 ,secretary ,the term ,secretary means the ,secretary of ,agriculture4 #c4 ,findings and purposes 7a7 ,findings ,congress finds the following3 7#a7 ,fertilizer1 including nitrogen1 phosphate1 and potash products1 is an essential agricultural input and vital to the stability of domestic and global food supplies4 7#b7 ,unstable fertilizer prices and supply disruptions in recent years have significantly increased production costs for farmers and ranchers and threatened food security and rural economies4 7#c7 ,rising fertilizer prices squeeze already thin farm margins1 forcing producers to cut back on inputs or acreage1 which can lower yields and ultimately drive up food prices for ,united ,states consumers4 7#d7 ,concentration in global fertilizer markets and reliance on imports that transit chokepoints such as the ,strait of ,hormuz heighten the vulnerability of the ,united ,states to supply shocks and geopolitical risks4 7#e7 ,a federally managed strategic reserve of fertilizer product inputs1 similar to the ,strategic ,petroleum ,reserve1 could help mitigate the impacts of severe supply disruptions1 price spikes1 and other market emergencies1 including those caused or exacerbated by avoidable policy-driven conflicts4 7b7 ,purposes ,the purposes of this ,act are-- 7#a7 to require a study to evaluate-- 7,a7 the feasibility of establishing a ,strategic ,fertilizer ,reserve for the storage and management of fertilizer products and fertilizer product inputs2 7,b7 best practices for the locations1 development1 operation1 and maintenance of1 and withdrawals from1 the ,strategic ,fertilizer ,reserve2 7,c7 best practices relating to emerging fertilizer technologies and nutrient management practices2 7,d7 the establishment of an independent agency of the ,united ,states ,government1 to be known as the ,strategic ,fertilizer ,reserve ,agency1 to reduce the impact of disruptions in supplies of fertilizer products on ,united ,states agricultural producers and consumers1 including those arising from avoidable policy-driven conflicts and mismanagement of foreign policy2 and 7,e7 means to ensure that the management and operation of the ,reserve are conducted with strict conflict of interest safeguards and transparency2 and 7#b7 to authorize the establishment of the ,strategic ,fertilizer ,reserve and the ,strategic ,fertilizer ,reserve ,agency4 #d4 ,feasibility study 7a7 ,in general ,the ,secretary shall conduct a study-- 7#a7 to investigate current domestic fertilizer product production capacity and vulnerabilities1 such as import dependency for fertilizer products1 critical chokepoints in fertilizer product distribution1 and market concentration risks2 7#b7 to investigate the feasibility of storing fertilizer products in the ,reserve1 including shelf life and degradation rates of stored fertilizer products and associated rotation and drawdown protocols2 7#c7 to investigate the feasibility of storing fertilizer product inputs in the ,reserve1 including shelf life and degradation rates of stored fertilizer product inputs1 associated rotation and drawdown protocols1 and necessary blending and processing capacity2 7#d7 to investigate the optimal ,reserve size2 7#e7 to investigate the effectiveness of the ,reserve's price stabilization2 7#f7 to investigate the type of organization or combination of organizations that are best suited to operate the ,reserve2 7#g7 to investigate the #a or more locations best suited to host the facilities of the ,reserve1 which shall consider proximity to blending facilities1 proximity to agricultural producers1 and the climate resilience of facility sites2 7#h7 to suggest the optimal organizational structure for the ,reserve2 7#i7 to investigate the situations in which withdrawals or releases from the ,reserve would help stabilize prices for ,united ,states farmers2 7#aj7 to suggest risk management measures for spills1 leaks1 fires1 and explosions2 7#aa7 to estimate the cybersecurity and physical security requirements for facilities of the ,reserve2 7#ab7 to estimate the costs necessary to set up the ,reserve2 7#ac7 to estimate the annual cost to maintain and operate the ,reserve2 7#ad7 to investigate domestic fertilizer supply chains1 including regional disparities in access for ,united ,states farmers2 and 7#ae7 to consider other factors that the ,secretary considers to be important in setting up1 maintaining1 and operating the ,reserve4 7b7 ,determination ,based on the results of the study under subsection 7a71 the ,secretary shall determine whether to approve the establishment of the ,strategic ,fertilizer ,reserve ,agency under section #e1 the ,strategic ,fertilizer ,reserve under section #f1 and the ,strategic ,fertilizer ,reserve ,fund under section #h4 7c7 ,report ,not later than #ahj days after the date on which funds are made available to the ,secretary to conduct the study under subsection 7a71 the ,secretary shall submit to the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate and the ,committee on ,agriculture of the ,house of ,representatives a report describing the findings of the study and the determination of the ,secretary under subsection 7b74 #e4 ,establishment of ,strategic ,fertilizer ,reserve ,agency 7a7 ,establishment ,on approval by the ,secretary under section #d7;b71 there is established as an independent agency of the ,united ,states ,government a body corporate1 to be known as the ,strategic ,fertilizer ,reserve ,agency1 to develop and oversee the ,reserve in accordance with this ,act and informed by the findings of the study under section #d7;a74 7b7 ,board of ,directors 7#a7 ,in general ,there is established a ,board of ,directors1 which shall be the head of the ,agency4 7#b7 ,composition ,the ,board shall be composed the following #i voting members3 7,a7 ,the ,secretary4 7,b7 #h members1 each of whom shall be appointed by the ,president1 by and with the advice and consent of the ,senate4 7#c7 ,recommendations ,before the initial appointment of the members of the ,board and before the appointment of any individual to fill a vacancy on the ,board1 the ,majority ,leader of the ,senate and the ,minority ,leader of the ,senate shall each submit to the ,president #b candidate recommendations4 7#d7 ,qualifications 7,a7 ,in general ,members of the ,board-- 7i7 shall be individuals who1 by reason of their education1 experience1 and attainments1 are exceptionally qualified to serve2 and 7ii7 shall collectively bring substantial expertise in agriculture1 fertilizer markets and supply chains1 agricultural finance1 cooperative governance1 labor1 and rural economic development4 7,b7 ,sector representation ,in making appointments under this section1 the ,president shall1 to the maximum extent practicable1 ensure representation from the following sectors3 7i7 ,row crop farmers4 7ii7 ,specialty crop producers4 7iii7 ,livestock and dairy producers4 7iv7 ,beginning and young farmers4 7v7 ,small and mid-sized farmers4 7vi7 ,agricultural creditors4 7vii7 ,agricultural cooperatives4 7viii7 ,agricultural economists and supply chain experts4 7,c7 ,geographic representation ,in making appointments under this section1 the ,president shall1 to the maximum extent practicable1 ensure diverse geographic representation and make reasonable efforts to encourage racial1 ethnic1 and gender diversity on the ,board4 7#e7 ,terms 7,a7 ,in general ,each voting member of the ,board shall be appointed for a term of #d years1 and may be reappointed for not more than one additional consecutive term4 7,b7 ,staggered terms ,the terms of the members of the ,board shall be staggered so that the terms of not more than #c members expire in any single year4 7,c7 ,holdover ,a member may continue to serve after the expiration of the member's term until a successor has been appointed and qualified4 7#f7 ,chair and vice chair 7,a7 ,in general ,the ,board shall elect a ,chair and a ,vice ,chair from among the members of the ,board for #b-year terms4 7,b7 ,acting ,chair ,the ,vice ,chair shall act in place of the ,chair in the absence of the ,chair4 7#g7 ,quorum2 voting 7,a7 ,quorum ,a majority of the voting members of the ,board shall constitute a quorum4 7,b7 ,voting ,any action of the ,board shall require the affirmative vote of a majority of the members present and voting4 7#h7 ,removal 7,a7 ,in general ,not later than #e days after removing a member of the ,board from such position1 the ,president shall submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate a written statement of the reasons for removal of the member4 7,b7 ,hearings 7i7 ,in general ,if the ,president fails to timely submit a statement under subparagraph 7,a71 or if the statement does not set forth specific1 detailed reasons for removal of the member of the ,board1 the committees described in that subparagraph shall conduct joint oversight hearings on the removal of the member of the ,board for which a statement was required not later than #fj days after the missed submission deadline4 7ii7 ,witnesses ,any member of the ,board for which a statement was required under subparagraph 7,a7 but was not submitted1 or satisfactorily submitted1 shall appear as a witness during a joint hearing4 7iii7 ,rulemaking ,this subparagraph is enacted as an exercise of the rulemaking power of the ,house of ,representatives and the ,senate4 7#i7 ,personnel 7,a7 ,in general ,the ,board may appoint and fix the pay of such staff as the ,board considers necessary to carry out the duties of the ,board4 7,b7 ,limitation ,no staff appointed under subparagraph 7,a7 may be compensated at an annual rate exceeding the daily equivalent of the annual rate of basic pay in effect for grade ,,gs-#ae of the ,general ,schedule4 7#aj7 ,compensation 7,a7 ,in general ,members of the ,board shall receive compensation equivalent to the compensation paid for positions in level ,,iv of the ,executive ,schedule described in section #ecae of title #e1 ,united ,states ,code1 prorated on a daily basis for time spent engaged in the work of the ,board4 7,b7 ,travel expenses ,while engaged in the work of the ,board1 a member of the ,board shall be paid actual travel expenses and per diem in lieu of subsistence expenses when away from the member's usual place of residence in accordance with subchapter ,i of chapter #eg of title #e1 ,united ,states ,code4 7,c7 ,persons otherwise in government service ,each member of the ,board who is otherwise in the service of the ,federal ,government shall serve without compensation in addition to that received for such other service1 but while engaged in the work of the ,board shall be paid expenses pursuant to subparagraph 7,b74 7,d7 ,prior approval for outside compensation 7i7 ,in general ,a member of the ,board who wishes to engage in outside employment shall first obtain the approval1 in writing1 of the ,designated ,agency ,ethics ,official of the ,board4 7ii7 ,volunteer professional services ,the ,designated ,agency ,ethics ,official of the ,board may generally approve in advance volunteer professional services4 7iii7 ,standard for approval ,approval shall be granted by the ,designated ,agency ,ethics ,official of the ,board under this subparagraph only on a determination that the prospective outside employment is not expected to involve conduct prohibited by statute or ,federal regulation1 including part #bfce of title #e1 ,code of ,federal ,regulations 7or successor regulations74 7iv7 ,changes in nature or scope ,on a significant change in the nature or scope of the outside employment approved under this subparagraph or the official position of the member of the ,board1 the member shall submit a revised request for approval under this subparagraph4 7v7 ,rulemaking ,not later than #ij days after the date on which the members of the ,board have been appointed1 the ,board shall promulgate regulations to carry out this subparagraph4 #f4 ,establishment of ,strategic ,fertilizer ,reserve 7a7 ,establishment ,on approval by the ,secretary under section #d7;b71 there is established in the ,strategic ,fertilizer ,reserve ,agency a ,strategic ,fertilizer ,reserve for the storage and management of fertilizer product inputs in accordance with this ,act and informed by the findings of the study under section #d7;a74 7b7 ,policy ,it is the policy of the ,united ,states to provide for the creation and maintenance of1 and timely withdrawals from1 the ,reserve-- 7#a7 to reduce the impact of disruptions in supplies of fertilizer products2 7#b7 to promote the stability of fertilizer product prices paid by ,united ,states agricultural producers2 7#c7 to reduce the impact rising input costs have on the cost of food for ,united ,states consumers2 and 7#d7 to support the food security and national security of the ,united ,states4 7c7 ,locations 7#a7 ,in general ,the ,reserve may consist of storage and related facilities located at #a or more sites within the ,united ,states1 as determined by the ,board1 including facilities owned by the ,united ,states and facilities owned by third parties under contract with the ,board4 7#b7 ,requirement ,the location of the facilities described in paragraph 7#a7 shall ensure that the fertilizer product inputs stored in the facilities may be accessed to manufacture fertilizer product blends not later than #ad days after the date on which the ,board authorizes a withdrawal from the ,reserve4 #g4 ,authorities of the ,board ,to develop and oversee the ,reserve1 the ,board shall-- 7#a7 issue such rules1 regulations1 and orders as the ,board considers necessary1 with consideration of the recommendations of the study under section #d7;a72 7#b7 acquire1 by purchase1 lease1 condemnation1 or otherwise1 land or interests in land for the location of storage and related facilities2 7#c7 construct1 purchase1 lease1 or otherwise acquire storage and related facilities for fertilizer product inputs2 7#d7 use1 lease1 maintain1 sell1 or otherwise dispose of land or interests in land1 or of storage and related facilities1 under such terms and conditions as the ,board considers necessary and appropriate2 7#e7 execute any contracts necessary to develop1 operate1 or maintain the ,reserve1 including contracts for storage1 transportation1 blending1 packaging1 and related services2 7#f7 ensure that all storage1 handling1 and transportation activities associated with the ,reserve comply with applicable ,federal1 ,state1 and local laws governing safety1 health1 labor1 and the environment2 and 7#g7 take such other actions as are necessary and proper to carry out this ,act4 #h4 ,strategic ,fertilizer ,reserve ,fund 7a7 ,establishment ,on approval by the ,secretary under section #d7;b71 there is established in the ,treasury of the ,united ,states a separate account1 to be known as the ,strategic ,fertilizer ,reserve ,fund 7referred to in this section as the ,fund71 which shall be administered by the ,board in consultation with the ,secretary of the ,treasury4 7b7 ,deposits ,there shall be deposited into the ,fund-- 7#a7 such amounts as may be appropriated to carry out this ,act2 7#b7 amounts received from the sale or exchange of fertilizer product inputs from the ,reserve2 and 7#c7 such other amounts as may be authorized by law4 7c7 ,availability ,amounts in the ,fund shall be available to the ,board1 without further appropriation or fiscal year limitation1 for-- 7#a7 the acquisition1 storage1 rotation1 and maintenance of fertilizer product inputs in the ,reserve2 7#b7 the construction1 lease1 operation1 and maintenance of storage and related facilities2 and 7#c7 administrative and oversight expenses related to the ,reserve4 #i4 ,conflicts of interest and ethics requirements 7a7 ,definitions ,in this section3 7#a7 ,covered contract ,the term covered contract means a contract with the ,board for-- 7,a7 the construction1 ownership1 operation1 or management of any storage or related facility used for the ,reserve2 or 7,b7 the supply1 transportation1 or handling of fertilizer product inputs for the ,reserve4 7#b7 ,covered entity ,the term covered entity means any entity that enters into a covered contract4 7#c7 ,covered official ,the term covered official means-- 7,a7 the ,president2 7,b7 the ,vice ,president2 7,c7 any individual serving in a position in the ,executive ,office of the ,president2 7,d7 any member of the ,board2 7,e7 any officer or employee of the ,strategic ,fertilizer ,reserve ,agency2 and 7,f7 any other employee of the ,strategic ,fertilizer ,reserve ,agency designated by the ,board by regulation as having significant decision making authority with respect to the ,reserve4 7#d7 ,financial interest ,the term financial interest includes equity1 stock1 partnership shares1 limited liability company interests1 options1 warrants1 beneficial interests held through a trust or investment vehicle 7other than a widely held mutual fund or index fund71 or any other arrangement under which the applicable covered official or immediate family member may derive pecuniary benefit from the performance of a covered entity4 7#e7 ,immediate family member ,the term immediate family member means a spouse1 domestic partner1 parent1 child1 or sibling1 including any such relation by marriage4 7b7 ,prohibition on financial interests ,no covered official1 and no immediate family member of a covered official1 may hold1 directly or indirectly1 any financial interest in any covered entity4 7c7 ,certification2 disclosures 7#a7 ,in general ,before entering into a covered contract1 the ,board shall require the covered entity-- 7,a7 to certify that1 to the best of its knowledge and belief1 no covered official or immediate family member of any covered official holds a financial interest in the covered entity prohibited by subsection 7b72 and 7,b7 to fully disclose all lobbying activities and lobbyist engagements related to the program under this ,act or any other matter involving the ,board or other ,federal agencies that have a direct and predictable effect on the covered contract4 7#b7 ,disclosure reports ,the ,board shall require each covered official1 on an annual basis and on assuming a position as a covered official1 to file a confidential report disclosing any financial interests that may be relevant under subsection 7b74 7d7 ,recusal and divestiture 7#a7 ,in general ,any covered official who becomes aware that the covered official or an immediate family member of the covered official holds a financial interest prohibited by subsection 7b7 shall promptly-- 7,a7 notify the designated agency ethics official of the ,board2 and 7,b7 either-- 7i7 divest of the financial interest2 or 7ii7 recuse himself or herself from any official action affecting the covered entity in which the financial interest is held1 in accordance with applicable ethics laws 7including regulations74 7#b7 ,regulations ,the ,board shall issue regulations establishing procedures and timelines for divestiture and recusal under clauses 7i7 and 7ii7 of paragraph 7#a77;,b74 7e7 ,enforcement 7#a7 ,covered officials ,a knowing and willful violation of subsection 7b71 7c77#b71 or 7d7 by a covered official-- 7,a7 shall be grounds for disciplinary action1 up to and including removal from office2 and 7,b7 may be referred to the ,office of ,government ,ethics and appropriate law enforcement authorities for investigation and potential prosecution under applicable criminal or civil conflict of interest statutes1 including sections #bja through #bji of title #ah1 ,united ,states ,code1 and related provisions4 7#b7 ,covered entities ,a knowing and willful false certification or disclosure by a covered entity under subsection 7c77#a7-- 7,a7 shall constitute a material breach of the covered contract2 and 7,b7 may result in suspension1 debarment1 civil penalties1 or other remedies as provided by law4 7f7 ,public transparency ,to the extent consistent with law and the protection of confidential business information1 the ,board shall make publicly available-- 7#a7 a list of covered entities2 and 7#b7 a general description of the ethics and conflict of interest policies applicable to the ,reserve4 #aj4 ,reports to ,congress 7a7 ,annual report ,not later than #a year after the date of establishment of the ,reserve1 and annually thereafter1 the ,board shall submit to the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate and the ,committee on ,agriculture of the ,house of ,representatives a report that-- 7#a7 describes the inventory of fertilizer product inputs in the ,reserve1 by product type and location2 7#b7 summarizes any acquisitions1 sales1 exchanges1 or other releases of fertilizer product inputs during the preceding year2 7#c7 evaluates the condition and capacity of storage and related facilities2 7#d7 describes any withdrawal events and their effects on fertilizer availability and prices2 and 7#e7 provides information on compliance with the requirements under section #i4 7b7 ,,gao review ,not later than #e years after the date of establishment of the ,reserve1 the ,comptroller ,general of the ,united ,states shall-- 7#a7 conduct a review of the effectiveness of the ,reserve in meeting the purposes of this ,act2 and 7#b7 submit to the committees described in subsection 7a7 a report describing the findings of the review under paragraph 7#a7 and any recommendations4 #aa4 ,regulations 7a7 ,in general ,not later than #ahj days after the date of establishment of the ,reserve1 the ,board shall promulgate such regulations as are necessary to carry out this ,act1 including regulations establishing-- 7#a7 protocols for acquisition1 maintenance1 and rotation of fertilizer products or fertilizer product inputs to be stored in the ,reserve2 7#b7 criteria and procedures for determining when a withdrawal and release of the ,reserve is warranted2 7#c7 technical and safety standards for storage and handling of fertilizer product inputs2 and 7#d7 detailed ethics and conflict of interest procedures consistent with section #i4 7b7 ,consideration ,in promulgating the regulations under subsection 7a71 the ,board shall consider the recommendations of the study conducted under section #d7;a74 #ab4 ,authorization of appropriations ,there are authorized to be appropriated such sums as are necessary to carry out this ,act4