94-415. Conservation and Environmental Programs  

  • [Federal Register Volume 59, Number 6 (Monday, January 10, 1994)]
    [Proposed Rules]
    [Pages 1293-1305]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-415]
    
    
    [[Page Unknown]]
    
    [Federal Register: January 10, 1994]
    
    
      
      
                                                         VOL. 59, NO. 6
    
                                               Monday, January 10, 1994
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    DEPARTMENT OF AGRICULTURE
    
    Agricultural Stabilization and Conservation Service
    
    7 CFR Part 701
    
    RIN 0560-AD08
    
     
    
    Conservation and Environmental Programs
    
    AGENCY: Agricultural Stabilization and Conservation Service, USDA.
    
    ACTION: Proposed rule.
    
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    SUMMARY: This proposed rule revises the Agricultural Stabilization and 
    Conservation Service (ASCS) regulations governing the Agricultural 
    Conservation Program (ACP), Emergency Conservation Program (ECP), and 
    the Forestry Incentives Program (FIP). This proposed rule incorporates 
    amendments made to the ACP, ECP, and FIP; revises procedures to reflect 
    current policies; and incorporates the Water Quality Incentive Projects 
    (WQIP) into the ACP.
    
    DATES: Comments must be received on or before February 9, 1994 in order 
    to be assured of consideration.
    
    ADDRESSES: Send comments on this proposed rule to Director, 
    Conservation and Environmental Protection Division, United States 
    Department of Agriculture (USDA), P.O. Box 2415, Washington, DC 20013-
    2415. All written submissions made pursuant to this rule will be 
    available for further inspection in room 4714, South Building, USDA, 
    between the hours of 8:15 a.m. and 4:45 p.m., Monday through Friday, 
    except holidays.
    
    FOR FURTHER INFORMATION CONTACT: Chief, Conservation and Environmental 
    Activities Branch, Conservation and Environmental Protection Division, 
    ASCS, USDA, P.O. Box 2415, Washington, DC 20013-2415, telephone 202-
    720-7333.
    
    SUPPLEMENTARY INFORMATION:
    
    Paperwork Reduction Act
    
        Information collection requirements contained in the current 
    regulation at 7 CFR part 701 have been approved by the Office of 
    Management and Budget under the provisions of 44 U.S.C. chapter 35 and 
    have been assigned OMB Number 0560-0082. ASCS will resubmit these 
    requirements to OMB for review in light of the amendments set forth in 
    this proposed rule.
    
    Executive Order 12866
    
        This proposed rule is issued in conformance with Executive Order 
    12866. Based on information compiled by the Department, it has been 
    determined that this proposed rule:
        (1) Would have an annual effect on the economy of less than $100 
    million;
        (2) Would not adversely affect in a material way the economy, a 
    sector of the economy, productivity, competition, jobs, the 
    environment, public health or safety, or State, local, or tribal 
    governments or communities;
        (3) Would not create a serious inconsistency or otherwise interfere 
    with an action taken or planned by another agency;
        (4) Would not alter the budgetary impact of entitlements, grants, 
    user fees, or loan programs or rights and obligations of recipients 
    thereof; and
        (5) Would not raise novel legal or policy issues arising out of 
    legal mandates, the Presidents's priorities, or principles set forth in 
    Executive Order 12866.
    
    Federal Assistance Program
    
        The titles and numbers of the Federal Assistance Programs, as found 
    in the Catalog of Federal Domestic Assistance, to which this rule 
    applies are: Agricultural Conservation Program (ACP)--10.063; Emergency 
    Conservation Program (ECP)--10.054; and Forestry Incentives Program 
    (FIP)--10.064.
    
    Regulatory Flexibility Act
    
        It has been determined that the Regulatory Flexibility Act is not 
    applicable to this rule since ASCS is not required by 5 U.S.C. 553 or 
    any other provision of law to publish a notice of proposed rulemaking 
    with respect to the subject matter of this rule.
    
    Environmental Evaluation
    
        It has been determined by an environmental evaluation that this 
    action will have no significant impact on the quality of the human 
    environment, health, and safety. Therefore, neither an Environmental 
    Assessment nor an Environmental Impact Statement is needed.
    
    Executive Order 12372
    
        This program is not subject to the provisions of Executive Order 
    12372 which requires intergovernmental consultation with State and 
    local officials. See the Notice related to 7 CFR part 3015, subpart V, 
    published at 48 FR 29115 (June 24, 1983).
    
    Executive Order 12778
    
        This proposed rule has been reviewed in accordance with Executive 
    Order 12778. The provisions of this proposed rule are not retroactive 
    and preempt State laws to the extent they are not consistent with the 
    provisions of this proposed rule. Before any judicial action may be 
    brought regarding the provisions of this proposed rule, the 
    administrative appeal provisions of 7 CFR part 780 must be exhausted.
    
    Background
    
        The ACP is authorized generally by Sections 7-17 of the Soil 
    Conservation and Domestic Allotment Act as amended (the Act) (16 U.S.C. 
    22590g et seq.). The program provides financial and technical 
    assistance to encourage agricultural producers to voluntarily perform 
    enduring soil and water conservation, water quality, and pollution 
    abatement measures, including practices or programs which are deemed 
    essential to maintain soil productivity, prevent soil depletion, 
    maintain water quality, or prevent increased cost of production.
        A WQIP is authorized by the Food, Agriculture, Conservation, and 
    Trade Act of 1990 (16 U.S.C. 3831 et seq.). However, Congress funded 
    WQIP as a part of the ACP. Accordingly, the WQIP is a voluntary 
    incentive program conducted pursuant to the Act to develop and 
    implement agricultural water quality protection plans on up to 10 
    million acres.
        The ECP is authorized by the Agricultural Credit Act of 1978 (16 
    U.S.C. 2201 et seq.). This program is designed to provide cost-share 
    assistance for emergency restoration work to meet only the critical 
    needs of agricultural producers due to drought or other natural 
    disaster.
        The FIP is authorized by section 4 of the Cooperative Forestry 
    Assistance Act of 1978 (16 U.S.C. 2103) and is designed to increase the 
    nation's supply of timber products from private nonindustrial forest 
    lands. The purpose of FIP is to encourage private landowners to apply 
    forestry practices that will provide for afforestation of suitable open 
    lands and reforestation of cut-over or other nonstocked forest lands 
    and to encourage intensive multi-purpose forest resource management and 
    protection so as to provide for cost-effective timber production and 
    other related forest resources needs.
        The regulation governing these programs is being restructured and 
    simplified to provide an easier and more effective structure for the 
    use of this regulation. The ACP is being revised to:
        (1) Incorporate several amendments that have been published in the 
    Federal Register;
        (2) Incorporate the WQIP;
        (3) Clarify that producers wanting to participate with practice 
    WP4, Agricultural Waste Control Facilities, must have been in operation 
    for at least 5 years;
        (4) Adjust the LTA payment limitation to reflect that the payment 
    limitation shall be based on the number of years remaining on the LTA; 
    and
        (5) reflect that payments shall be based on attribution. The ECP is 
    being revised to:
        (1) Reflect that the Disaster Assistance Act of 1989 (16 U.S.C. 
    2202) authorized assistance for confined livestock operations; and
        (2) Define land subject to frequent damage which is ineligible for 
    cost-share assistance.
    
    The FIP is being restructured for clarity.
    
        Currently, ACP practices are prioritized locally by county 
    Agricultural Stabilization and Conservation committees to ensure that 
    the most severe conservation and environmental problems are addressed. 
    However, this county committee prioritization process has been 
    criticized as not addressing the most severe conservation and 
    environmental problems. Therefore, comments are requested regarding the 
    manner in which ACP practices and allocation of funds could be 
    prioritized to achieve greater conservation and environmental benefits 
    at the least Federal cost. Although not exclusive, such considerations 
    for prioritization may be based on temporary versus longer-term 
    practices or type of conservation or environmental benefit. Further, 
    consideration should be given to whether priorities should be 
    established by the National, State, or county Agricultural 
    Stabilization and Conservation Service offices. Moreover, for ACP, ECP 
    and FIP, comments are requested on ways in which the programs can best 
    be targeted in order to ensure that public benefits, rather than 
    private benefits are maximized with Federal expenditures. For example, 
    the use of ACP for temporary practices may not provide large public 
    benefits.
        Comments are requested as to whether funds should be targeted 
    toward designated areas with impaired water quality. Similarly, cost-
    share practices could be selected for a region where they will 
    contribute to an identified problem. Thus, nutrient management 
    practices would be designated as a cost-share option in areas where 
    nutrients have been identified as a water quality problem.
    
    List of Subjects in 7 CFR Part 701
    
        Disaster assistance, Forest and forest products, Grant programs--
    agriculture, Grant programs--natural resources, Reporting and 
    recordkeeping requirements, Rural areas, Soil conservation, Water 
    resources, Wildlife.
    
        For the reasons set forth in the preamble, 7 CFR Part 701 is 
    proposed to be revised to read as follows:
    
    PART 701--CONSERVATION AND ENVIRONMENTAL PROGRAMS
    
    Subpart A--General Provisions
    
    Sec.
    701.1  Background.
    701.2  Administration.
    701.3  Definitions.
    701.4  Restriction on program eligibility.
    701.5  Practice specifications.
    701.6  Responsibility for referred technical phases of practices.
    701.7  Items of costs on which rates of cost-share assistance may be 
    based.
    701.8  Repair, upkeep, and maintenance of practices.
    701.9  Public benefits when installing practices.
    701.10  Payments for uncompleted practices.
    701.11  Practices involving the establishment or improvement of 
    vegetative cover.
    701.12  Failure to meet minimum requirements or failure to comply 
    fully with program provisions.
    701.13  Practices carried out with aid from ineligible persons.
    701.14  Division of cost-share assistance.
    701.15  Applying cost-share assistance limitations.
    701.16  Persons eligible to file application for payment of cost-
    share assistance.
    701.17  Time and manner of filing application and required 
    information.
    701.18  Death, incompetency, or disappearance.
    701.19  Appeals.
    701.20  Performance based on advice or action of COC or STC.
    701.21  Compliance with regulatory measures.
    701.22  Maintenance and use of practice.
    701.23  Actions defeating purpose of program.
    701.24  Depriving others of cost-share assistance.
    701.25  Filing false claims.
    701.26  Cost-share assistance not subject to claims.
    701.27  Assignments.
    701.28  Environmental considerations.
    701.29  Information collection requirements.
    701.30-701.99  [Reserved]
    
    Subpart B--Agricultural Conservation Program
    
    701.100  Program objective.
    701.101  State funds.
    701.102  County funds.
    701.103  Availability of funds.
    701.104  Eligible person.
    701.105  Eligible land.
    701.106  Conservation practices.
    701.107  County programs.
    701.108  State programs.
    701.109  Selection of practices.
    701.110  Levels and rates of cost-share assistance.
    701.111  Starting practices.
    701.112  Method of approval.
    701.113  Long-term agreements.
    701.114  Replacement, enlargement, or restoration.
    701.115  Pooling agreements.
    701.116  Special provisions for low-income farmers and ranchers.
    701.117  Maximum cost-share assistance limitation.
    701.118  Completion of practices.
    701.119  Time of filing payment application.
    701.120  Water Quality Incentive Projects.
    701.121-701.199  [Reserved]
    
    Subpart C--Emergency Conservation Program
    
    701.200  Program objective.
    701.201  Program availability.
    701.202  Eligibility of person and land.
    701.203  Emergency Conservation Program practices.
    701.204  Practice approval.
    701.205  Extent of cost-share assistance.
    701.206  Eligible costs.
    701.207  Filing requests.
    701.208  Approving requests.
    701.209  Pooling agreements.
    701.210  Payment approval.
    701.211-701.299  [Reserved]
    
    Subpart D--Forestry Incentives Program
    
    701.300  Program objective.
    701.301  Designated counties.
    701.302  Eligible person, land, and ownerships.
    701.303  Program funds.
    701.304  Eligible practices and cost-share assistance requirements.
    701.305  The national FIP.
    701.306  Development of State FIP.
    701.307  Development of county FIP.
    701.308  Adaptation of practices.
    701.309  Levels and rates of cost-share assistance.
    701.310  Prior approval for cost-share assistance.
    701.311  Methods of approval.
    701.312  Long-term agreements.
    701.313  Restoration of practices.
    701.314  FIP maximum cost-share assistance limitations.
    701.315  Completion of practice.
    701.316  Time of filing payment application.
    701.317-701.399  [Reserved]
    
        Authority: 16 U.S.C. 590d, 590g-590o, 590p(a), 590q, 1501-1510, 
    1606, 2101-2111, 2201-2205, 3831; 48 U.S.C. 1469d(c).
    
    Subpart A--General Provisions
    
    
    Sec. 701.1 Background.
    
        (a) Through the conservation and environmental programs 
    administered by the Department of Agriculture, the Federal Government 
    will share with farmers, ranchers, and other eligible private 
    landowners in the United States and the applicable territories and 
    possessions of the United States, the cost of performing:
        (1) Approved soil and water conservation, water quality, and 
    pollution abatement practices including related wildlife conservation 
    practices.
        (2) Emergency conservation measures.
        (3) Approved forestry practices.
        (b) The Federal Government will provide incentive payments to 
    farmers, ranchers, and other private landowners in applicable areas of 
    the United States to establish Water Quality Incentive Projects (WQIP) 
    practices.
        (c) Cost-share assistance or incentive payments may be made 
    available to eligible program participants by the Agricultural 
    Stabilization and Conservation Service (ASCS) for:
        (1) Soil and water conservation, water quality, and pollution 
    abatement practices under the Agricultural Conservation Program (ACP) 
    which includes WQIP.
        (2) Practices to correct damage to land or conservation practices 
    caused by natural disaster under the Emergency Conservation Program 
    (ECP).
        (3) Installation of water conservation measures under the ECP 
    during periods of severe drought.
        (4) Forestry practices under the ACP and the Forestry Incentives 
    Program (FIP).
        (d) Information on the practices for which costs will be shared, 
    the exact specifications and rates of cost-share assistance for such 
    practices, and the eligibility requirements for participating in the 
    programs, may be obtained from the County Agricultural Stabilization 
    and Conservation (ASC) Committee (county committee) for the county in 
    which the farm, ranch, or other eligible land is administered or from 
    the State ASC committee (State committee) for the State in which such 
    county is located.
        (e) The provisions at subpart A apply to the programs specified in 
    subparts B through D.
    
    
    Sec. 701.2  Administration.
    
        (a) The regulations in this part will be administered under the 
    general supervision of the Administrator, ASCS and shall be carried out 
    in the field by State and county Agricultural Stabilization and 
    Conservation committees (State and county ASC committees).
        (b) State and county ASC committees, and representatives and 
    employees thereof do not have the authority to modify or waive any of 
    the provisions of the regulations of this part.
        (c) The State ASC committee shall take any action required by these 
    regulations which has not been taken by the county ASC committee. The 
    State ASC committee shall also:
        (1) Correct, or require a county ASC committee to correct any 
    action taken by such county ASC committee which is not in accordance 
    with the regulations of this part, or
        (2) Require a county ASC committee to withhold taking any action 
    which is not in accordance with the regulations of this part.
        (d) No provision or delegation herein to a State or county ASC 
    committee shall preclude the Administrator, ASCS, or a designee, from 
    determining any question arising under the regulations of this part or 
    from reversing or modifying any determination made by a State or county 
    ASC committee.
    
    
    Sec. 701.3  Definitions.
    
        (a) The terms defined in part 719 of this chapter shall be 
    applicable to this part and all documents issued in accordance with 
    this part, except as otherwise provided in this section.
        (b) The following definitions shall apply to this part:
        ACP means the Agricultural Conservation Program.
        Applicant means a person who submits to ASCS an intention to 
    participate in a cost-share program.
        ASCS means the Agricultural Stabilization and Conservation Service 
    of the United States Department of Agriculture.
        Conservation District (CD) means a subdivision of a State organized 
    pursuant to an applicable State Conservation District law or in 
    instances where a CD does not exist, the State Conservationist of the 
    Soil Conservation Service.
        Cost-share payment means the payment made by ASCS to producers who 
    complete an approved program practice.
        County committee (COC) means the Agricultural Stabilization and 
    Conservation county committee of the ASCS.
        County Conservation Review Group (CCRG) consists of the county ASC 
    committee; the county extension agent; a Soil Conservation Service 
    (SCS) representative; a Forest Service (FS) representative; a Farmers 
    Home Administration representative; a representative of the State 
    forestry agency or its equivalent, when the representative accepts an 
    invitation to be a member of the group; and a representative of the CD 
    in the county, where the governing board of the district accepts an 
    invitation to designate a representative (if there is more than one 
    district in the county, the governing boards of the districts may 
    jointly designate one person to represent all the districts). The CCRG 
    shall have the responsibilities as provided for in Secs. 701.107 and 
    701.307.
        CPO means the conservation plan of operations developed for the 
    participant by the SCS.
        Deputy Administrator means the Deputy Administrator, State and 
    County Operations, or designee, of the ASCS.
        ECP means the Emergency Conservation Program.
        Eligible person means a person who meets all program eligibility 
    requirements and is eligible to participate and receive assistance.
        Farm or ranch means that area of land considered as a farm under 
    the regulations governing reconstitution of farms, allotments, and 
    bases, at part 719 of this chapter, as amended, for ACP, ECP, and WQIP, 
    and, for the FIP, farm or ranch means eligible land (or ownership 
    tracts) as provided in Sec. 701.302.
        FIP means the Forestry Incentives Program.
        FS means the Forest Service of the United States Department of 
    Agriculture.
        Incentive payment means, unless the context indicates otherwise, 
    the incentive payment specified in the WQIP agreement which, subject to 
    the availability of funds, is made to a participant to compensate such 
    participant who implemented conservation practices or management 
    changes that reduce agricultural pollutants.
        National Conservation Review Group (NCRG) consists of 
    representatives of the ASCS; SCS; U.S. Forest Service; Extension 
    Service; Economic Research Service; Farmers Home Administration; 
    Agricultural Research Service; Office of General Counsel, U.S. 
    Department of Agriculture; Office of Budget, Planning and Analysis, 
    U.S. Department of Agriculture; Environmental Protection Agency; Office 
    of Management and Budget; and Fish and Wildlife Service, U.S. 
    Department of the Interior (DOI). The NCRG is responsible for 
    recommending changes to the Administrator, ASCS, in program 
    administrative procedures and policy guidelines, and evaluations of 
    program effectiveness and operating arrangements.
        Participant means an owner, operator, landlord, tenant, or 
    sharecropper of a farm or ranch who shares in the cost of the practice 
    and who will receive cost-share or incentive assistance.
        Program year means the Federal fiscal year for accounting purposes.
        SCS means the Soil Conservation Service of the United States 
    Department of Agriculture.
        State means any one State of the United States, Puerto Rico, the 
    Virgin Islands, and:
        (1) In the case of the ACP and ECP, Guam, the American Samoa, and 
    the Commonwealth of the Northern Mariana Islands; and
        (2) In the case of the FIP, Guam, the American Samoa, the 
    Commonwealth of the Northern Mariana Islands, the Trust Territory of 
    the Pacific Islands and the territories and possessions of the United 
    States.
        State committee (STC) means the ASCS State Agricultural 
    Stabilization and Conservation Committee.
        State Conservation Review Group (SCRG) consists of the STC, the 
    State Director of Extension; the State Conservationist of the SCS; a 
    representative of the U.S. Forest Service; a representative of the 
    Farmers Home Administration; a representative of the State forestry 
    agency, or its equivalent, when the representative accepts an 
    invitation to be a member of the group; a representative of the State 
    Soil Conservation Committee, or its equivalent, when the representative 
    accepts an invitation to be a member of the group; and a representative 
    of the State water quality agency, or its equivalent when it accepts an 
    invitation to be a member of the group. The SCRG has the responsibility 
    provided for in Sec. 701.108.
        State Forestry Committee, or its equivalent, consists of the State 
    forester or equivalent State official, who serves as chairperson; and a 
    representative at the State level of the following USDA agencies: ASCS; 
    FS; Extension Service; Farmers Home Administration; and SCS. At the 
    discretion of the State Forestry Committee, State and local interests 
    may also be involved. The function of the State Forestry Committee is 
    to coordinate forestry budget proposals, agency roles in education, 
    technical assistance, technology transfers, and forestry incentives.
        WQIP means the Water Quality Incentive Projects authorized under 
    the ACP.
        WQIP Agreement means the program agreement including the applicable 
    water quality resource management plan entered into between ASCS and 
    the participant. Such agreement shall set forth the terms and 
    conditions for participation in the WQIP pursuant to this part.
    
    
    Sec. 701.4  Restriction on program eligibility.
    
        The regulations in part 796 of this chapter prohibiting the making 
    of payments to program participants who harvest or knowingly permit to 
    be harvested for illegal use, marijuana or other such prohibited drug-
    producing plants on any part of the land owned or controlled by such 
    program participants are applicable to these programs.
    
    
    Sec. 701.5  Practice specifications.
    
        (a) Minimum specifications that practices must satisfy to be 
    eligible for cost-share assistance shall be set forth in the county 
    program within the authority established by the STC and Deputy 
    Administrator, State and County Operations (DASCO) or incorporated by 
    specific reference to a standard publication or other written document 
    containing such specifications.
        (b) Practice specifications shall represent the minimum levels of 
    performance needed in order for the practice to be effective in meeting 
    the program objective. Cost-share assistance shall be limited to these 
    minimum levels.
    
    
    Sec. 701.6  Responsibility for referred technical phases of practices.
    
        The SCS and the FS are responsible for technical phases of 
    practices as assigned and such assignment will be specified in State 
    and county programs.
        (a) The SCS State Conservationist may use the expertise from 
    private consultants, State, or Federal agencies in performing the 
    assigned responsibilities if SCS certifies that assigned practices are 
    completed properly. No responsibilities will be assigned for counties 
    when DASCO and the Chief, SCS, determine that it would not be 
    administratively practicable for the SCS to discharge such 
    responsibilities. In such counties, these responsibilities shall be 
    assumed by COC's. The SCS may utilize resources of the State forestry 
    agencies in performing assigned responsibilities for practices 
    involving the establishment of windbreaks or shelterbelts on farmland 
    to prevent wind erosion.
        (b) The FS is responsible for the technical phases of practices or 
    components of practices involving the planting of trees for forestry 
    purposes and those involving the improving or protecting of a stand of 
    forest trees as specified in State and county programs. The FS may use 
    the assistance of private consultants, State, or Federal agencies in 
    performing these assigned responsibilities if FS certifies that 
    assigned practices are completed properly; however, services of State 
    forestry agencies will be used to the extent that such services are 
    available.
    
    
    Sec. 701.7  Items of cost on which rates of cost-share assistance may 
    be based.
    
        Except as otherwise provided by ASCS, the cost of any direct and 
    significant factor in the performance of a practice may be considered 
    in establishing the rate of cost-share assistance for the practice.
    
    
    Sec. 701.8  Repair, upkeep, and maintenance of practices.
    
        Cost-share assistance shall not be authorized for repairs or for 
    normal upkeep or maintenance of any practice.
    
    
    Sec. 701.9  Public benefits when installing practices.
    
        Persons responsible for any aspect of performing practices shall 
    install the practices to promote public benefits by:
        (a) Improving or preserving environmental quality and ecological 
    balance by preventing or abating pollution and other environmental 
    degradation;
        (b) Benefiting the community by such means as preserving open space 
    or enhancing the appearance of the area;
        (c) Benefiting wildlife and other desirable life forms;
        (d) Preserving historic, archeological, or scenic sites, wetlands, 
    ecologically critical areas, and prime farmlands;
        (e) Avoiding the creation of hazards to persons or animals; and
        (f) Avoiding actions that may adversely affect an endangered or 
    threatened species or flood plains.
    
    
    Sec. 701.10  Payments for uncompleted practices.
    
        Cost-share assistance approved under these programs shall not be 
    considered earned until all components of the approved practice are 
    completed according to applicable specifications and program 
    provisions. Cost-share assistance for completed components of an 
    approved practice may be paid only on the condition that the eligible 
    participant will complete the remaining components of the practice 
    within the time prescribed by the COC regardless of whether cost-share 
    assistance is offered for them unless the COC subsequently determines 
    they are prevented from doing so because of reasons beyond their 
    control.
    
    
    Sec. 701.11  Practices involving the establishment or improvement of 
    vegetative cover.
    
        (a) Costs may be shared even though an adequate stand is not 
    established, for practices involving the establishment or improvement 
    of vegetative cover, including trees, if the COC determines, according 
    to standards approved by the STC, that the practice was carried out in 
    a manner which could normally result in the establishment of an 
    adequate stand and that failure to establish an adequate stand was due 
    to weather or other conditions beyond the control of the participant. 
    The COC may require, as a condition of cost-share assistance in such 
    cases, that the area be reseeded or replanted or that other needed 
    protective measures be performed. Cost-share assistance in such cases 
    may also be approved for repeat applications of measures previously 
    performed or for additional eligible measures. Cost-share assistance 
    for such measures may be approved to the extent such measures are 
    needed to ensure an adequate stand even though the measures may be less 
    than that required by the applicable practice wording for initial 
    approvals.
        (b) In the case of FIP, replanting of trees is required where the 
    landowner received cost-share assistance for site preparation.
    
    
    Sec. 701.12  Failure to meet minimum requirements or failure to comply 
    fully with program provisions.
    
        (a) Notwithstanding other provisions of these programs, costs may 
    be shared for performance actually rendered even though the minimum 
    requirements for a practice are not satisfied, if the participant 
    establishes to the satisfaction of the COC and the county 
    representative of any other agency having responsibility for technical 
    phases of the practice that a reasonable effort was made to satisfy the 
    minimum requirements and that the practice as performed adequately 
    solves the need for the practice.
        (b) Notwithstanding the provisions in paragraph (a) of this 
    section, the Deputy Administrator may in accordance with part 791 of 
    this chapter authorize relief when a participant acting in good faith 
    failed to fully comply with the program provisions.
    
    
    Sec. 701.13  Practices carried out with aid from ineligible persons.
    
        Financial assistance which is made available, or will be made 
    available, to a program participant from a person ineligible for cost-
    share assistance under this part for the practice, including aid from a 
    State or Federal agency other than aid made available under this part, 
    shall be deducted from the program participant's total costs incurred 
    for the practice for purposes of determining the applicant's eligible 
    reimbursable costs under this part.
    
    
    Sec. 701.14  Division of cost-share assistance.
    
        (a) The cost-share assistance shall be credited to the participant 
    who performed the practice. If more than one person contributed to the 
    performance of the practice, the cost-share assistance for the practice 
    shall be divided among those persons in the proportion that the COC 
    determines they contributed to the performance of the practice. In 
    making this determination, the COC shall consider the value of the 
    labor, equipment, or material contributed by each person toward 
    performance.
        (b) The allowance by an eligible person of a credit to another 
    eligible person in the form of an adjustment in rental, an exchange of 
    cash or other consideration shall not be considered as a contribution 
    to the performance of any practice, unless ASCS is satisfied that such 
    credit is directly related to the cost of the practice. A person fully 
    reimbursed through an adjustment in rental, an exchange of cash, or 
    other consideration shall not be considered as having contributed to 
    the practice performance.
    
    
    Sec. 701.15  Applying cost-share assistance limitations.
    
        (a) All or any part of cost-share assistance which otherwise would 
    be due any participant for a program year may be withheld, or required 
    to be refunded, if, with respect to that program year, the participant 
    has adopted, or participated in adopting, any scheme or device designed 
    to evade a maximum cost-share limitation.
        (b) The provisions of 7 CFR 1497.109(a), which provide that 
    payments shall be attributed to each member of an entity, shall apply 
    in determining whether certain individuals or other entities are to be 
    considered as separate persons for the purpose of applying any maximum 
    payment limitations provided for in this part.
    
    
    Sec. 701.16  Persons eligible to file application for payment of cost-
    share assistance.
    
        Any eligible person as defined in Secs. 701.104, 701.202, and 
    701.302, who bore a part of the cost of an approved practice, is 
    eligible to file an application for cost-share assistance. For ACP 
    practice WP4, Agricultural Waste Control Facilities, an eligible person 
    is one who has been in an operation from which the agricultural waste 
    is produced for at least 5 years.
    
    
    Sec. 701.17  Time and manner of filing application and required 
    information.
    
        (a) Participants shall submit to the county office the information 
    needed to establish the extent of the performance of approved practices 
    and compliance with applicable program provisions. The time limits for 
    submission of such information shall be established where necessary for 
    efficient administration of the programs. Such time limits shall afford 
    a full and fair opportunity to those eligible to submit the information 
    within the period prescribed. At least 2 weeks notice of any general 
    time limit prescribed shall be provided to the public.
        (b) Other means of notification of program availability including 
    radio announcements and individual notices to the person affected, 
    shall be used to the extent practicable. Notice of such time limits 
    which are applicable to individual persons, such as time limits for 
    reporting performance of approved practices, shall be issued in writing 
    to the person affected. Exceptions to the time limits may be made in 
    cases where failure to submit required forms and information within the 
    applicable time limits is due to reasons beyond the control of the 
    farmer or rancher.
    
    
    Sec. 701.18  Death, incompetency, or disappearance.
    
        In case of death, incompetency, or disappearance of any 
    participant, any cost shares due shall be paid to the successor, 
    determined in accordance with provisions of the regulations in part 707 
    of this chapter.
    
    
    Sec. 701.19  Appeals.
    
        Any person may obtain reconsideration and review of determinations 
    affecting participation in these programs, in accordance with part 780 
    of this chapter.
    
    
    Sec. 701.20  Performance based on advice or action of COC or STC.
    
        Cases involving performance rendered in good faith in reliance upon 
    action or advice of an authorized representative of a STC or COC shall 
    be considered according to part 790 of this chapter.
    
    
    Sec. 701.21  Compliance with regulatory measures.
    
        Participants who perform practices shall be responsible for 
    obtaining the authorities, rights, easements, or other approvals 
    necessary to the performance and maintenance of the practices according 
    to applicable laws and regulations. The participant with whom the cost 
    of the practice is shared shall be responsible to the Federal 
    Government for any losses it may sustain because such participant 
    infringes on the rights of others or fails to comply with applicable 
    laws or regulations.
    
    
    Sec. 701.22  Maintenance and use of practice.
    
        Each participant receiving cost-share assistance is responsible for 
    the required maintenance and proper use of the practice. Each practice 
    shall have an established lifespan or minimum period of time that it is 
    expected to function as a conservation practice with proper 
    maintenance. If ASCS determines that a practice has not been properly 
    maintained for the established lifespan, the participant receiving the 
    cost-share assistance shall refund all or any part of such cost-share 
    assistance as determined appropriate by the ASC COC. Further, any 
    agreement providing for cost-share assistance will be terminated, with 
    respect to the land on which the practice is located, if there is 
    voluntary loss of control of the land by the participant receiving the 
    cost-share assistance and the person acquiring control of such land 
    elects not to become a successor in interest to the agreement. If the 
    agreement providing for cost-share assistance is terminated as a result 
    of the voluntary loss of control of the land, each participant 
    receiving cost-share assistance under that agreement shall be liable 
    for refunding to ASCS any cost-share assistance which has been received 
    with respect to the practice. In addition, such person shall forfeit 
    any right to receive any further cost-share assistance with respect to 
    the land on which the practice is located.
    
    
    Sec. 701.23  Actions defeating purpose of program.
    
        If the STC or COC determines that a participant has taken any 
    action which tends to defeat the purposes of these programs, the 
    participant may be required to refund all or part of any of these 
    program payments otherwise due or paid that participant during the 
    program year. These actions include, but are not limited to, failure to 
    properly maintain or deliberately destroying a practice carried out 
    under a prior program year.
    
    
    Sec. 701.24  Depriving others of cost-share assistance.
    
        If the STC or COC determines that any participant has employed any 
    scheme or device to deprive any other person of cost-share assistance, 
    the participant may be required to refund all or part of any of these 
    program payments otherwise due or paid that person during the program 
    year. A scheme or device includes, but is not limited to, coercion, 
    fraud, or misrepresentation.
    
    
    Sec. 701.25  Filing false claims.
    
        If the STC or COC determines that any person has knowingly supplied 
    false information or filed a false claim, that person is ineligible for 
    cost-share assistance under the program year with respect to which 
    information or claim was filed. False information or a false claim 
    includes, but is not limited to, a request for payment for a practice 
    not carried out or for practices which do not meet the required 
    specifications. Any amounts paid under these circumstances shall be 
    refunded and any amounts otherwise due the participant shall be 
    withheld. The withholding or refunding of cost shares will be in 
    addition to any other penalty or liability otherwise imposed by law.
    
    
    Sec. 701.26  Cost-share assistance not subject to claims.
    
        Any cost-share assistance or portion thereof due any participant 
    shall be allowed without regard to questions of title under State law, 
    and without regard to any claim or lien against the crop, or proceeds 
    thereof, in favor of the owner or any other creditor except agencies of 
    the U.S. Government. The regulations issued by the Secretary governing 
    offsets and withholdings at part 1403 of this title shall be applicable 
    to these programs.
    
    
    Sec. 701.27  Assignments.
    
        Any participant who may be entitled to any cost-share assistance 
    under these programs may assign the right thereto, in whole or in part, 
    according to the regulations governing the assignment of payments at 7 
    CFR part 1404.
    
    
    Sec. 701.28  Environmental considerations.
    
        All actions implemented under the programs in this part shall be in 
    compliance with regulations issued at part 799 of this chapter, which 
    includes the procedures for complying with the National Environmental 
    Policy Act, Floodplain Management and Wetland Protection and other 
    environmental concerns.
    
    
    Sec. 701.29  Information collection requirements.
    
        Information collection requirements contained in this part have 
    been approved by the Office of Management and Budget under the 
    provisions at 44 U.S.C. Chapter 35 and have been assigned OMB Number 
    0560-0082.
    
    
    Secs. 701.30-701.99  [Reserved]
    
    Subpart B--Agricultural Conservation Program
    
    
    Sec. 701.100  Program objective.
    
        (a) The objective of the ACP is to restore and protect the Nation's 
    land and water resources. This objective will be accomplished through a 
    program that considers:
        (1) The need to control erosion and sedimentation from agricultural 
    land and conserve the water resources on such land.
        (2) The need to control pollution from animal wastes.
        (3) The need to facilitate sound resource management systems 
    through soil and water conservation.
        (4) The need to encourage voluntary compliance by agricultural 
    producers with Federal and State requirements to solve point and 
    nonpoint sources of pollution.
        (5) National priorities reflected in the National Environmental 
    Policy Act of 1969, the Resource Conservation Act of 1977, and other 
    congressional and administrative actions.
        (6) The degrees to which the measures contribute to the national 
    objective of ensuring a continuous supply of food and fiber necessary 
    for the maintenance of a strong and healthy people and economy.
        (7) The type of conservation measures needed to improve water 
    quality.
        (8) The need to improve water quality.
        (b) These objectives will ensure the continued supply of food and 
    fiber necessary for the maintenance of a strong and healthy people and 
    economy and provide for environmental conservation or enhancement.
    
    
    Sec. 701.101  State funds.
    
        Funds available for practices to be performed under the ACP will be 
    distributed among the States as determined by the Deputy Administrator.
    
    
    Sec. 701.102  County funds.
    
        The STC will allocate the funds available for practices among the 
    counties within the State consistent with the ACP's objective, and will 
    give particular consideration to the furtherance of special projects, 
    watershed conservation projects, resource conservation development 
    projects, approved State water quality plans, and other conservation 
    and pollution abatement projects sponsored locally.
    
    
    Sec. 701.103  Availability of funds.
    
        (a) The paying of the cost-share assistance provided herein is 
    contingent upon such appropriation as the Congress may provide for such 
    purpose; and the amounts of such cost shares shall be within the limits 
    authorized by such appropriation.
        (b) Funds available for the ACP may be made available as needed for 
    practices to be performed under the Naval Stores Conservation Program, 
    according to instructions issued by the Deputy Administrator.
    
    
    Sec. 701.104  Eligible person.
    
        An eligible person is a farmer or rancher who as an individual, 
    partnership, association, corporation, estate, trust, other business 
    enterprise, or other legal entity (excluding districts which have 
    taxing authority, Federal agencies, States and State agencies, 
    including political subdivisions of a State) and, as an owner, 
    landlord, tenant, or sharecropper, participates or has an interest in 
    the operation of a farm or ranch for which cost share assistance has 
    been requested.
    
    
    Sec. 701.105  Eligible land.
    
        (a) The program is applicable to:
        (1) Privately-owned lands;
        (2) Land owned by a State or political subdivision of a State;
        (3) Lands owned by corporations which are partly owned by the 
    United States;
        (4) Lands temporarily owned by the United States or a corporation 
    wholly owned by it, which were not acquired or reserved for 
    conservation purposes, including lands administered by the Farmers Home 
    Administration, the U.S. Department of Defense, or by any other 
    Government agency designated by the Deputy Administrator.
        (5) Any cropland operated by private persons which is owned by the 
    United States or a corporation wholly owned by it;
        (6) Native American lands, except that where grazing operations are 
    carried out on Native American lands administered by the DOI, such 
    lands are within the scope of the program only if covered by a written 
    agreement approved by the DOI giving the operator an interest in the 
    grazing and forage growing on the land and a right to occupy the land 
    in order to carry out the grazing operations; and
        (7) Noncropland owned by the United States on which practices are 
    performed by private persons where such practices directly conserve or 
    benefit nearby or adjoining privately owned lands of the persons 
    performing the practices and such persons maintain and use such 
    federally owned noncropland under agreement with the Federal agency 
    having jurisdiction thereof.
        (b) The program is not applicable to:
        (1) Noncropland owned by the United States which was acquired or 
    reserved for conservation purposes, or which is to be retained 
    permanently under Government ownership, including, but not limited to, 
    grazing lands administered by the FS, or by the Bureau of Land 
    Management, DOI (including lands administered under the Taylor Grazing 
    Act), or the Fish and Wildlife Service, DOI, except as indicated in 
    paragraph (a)(7) of this section.
        (2) Nonprivate persons for performance of practices on any land 
    owned by the United States or a corporation wholly owned by it. A 
    nonprivate person is anyone except an individual, partnership, 
    association, corporation, estate, trust, or other business enterprise, 
    or other legal entity (excluding districts which have taxing authority, 
    Federal agencies, States and State agencies, including political 
    subdivisions of a State).
    
    
    Sec. 701.106  Conservation practices.
    
        Conservation practices as specified by the Deputy Administrator are 
    made available nationally under the ACP and may be included in the 
    State and county programs. Practices shall not be primarily production-
    oriented and shall have primarily conservation, environmental, or 
    pollution abatement benefits. The practices are designed to be 
    consistent with the agricultural conservation policy stated in section 
    7 of the Soil Conservation and Domestic Allotment Act, as amended, and 
    national program policy, and are developed primarily to meet a definite 
    need to accomplish one or more of the following:
        (a) Establish long-lasting protective cover.
        (b) Improve or sustain existing protective cover.
        (c) Conserve or safely dispose of water.
        (d) Benefit wildlife.
        (e) Establish or improve stands of forest trees.
        (f) Give protection against soil erosion.
        (g) Prevent or abate agricultural-related pollution of water, land, 
    and air.
        (h) Meet special State or county conservation needs.
        (i) Encourage energy conservation practices.
        (j) Improve water quality.
    
    
    Sec. 701.107  County programs.
    
        (a) ACP shall be developed in each county by the COC, in 
    consultation with the CCRG in accordance with the National and State 
    development guidelines and policies provided. Subject to the 
    availability of funds, at least one public meeting per year shall be 
    held for this purpose.
        (b) The county ACP shall be effective after approval by the STC.
    
    
    Sec. 701.108  State programs.
    
        (a) The SCRG shall develop recommendations for the State ACP. The 
    chairperson of the SCRG may also invite others with conservation or 
    water quality interests to participate in such deliberations. Subject 
    to the availability of funds, at least one public meeting per year 
    shall be held for this purpose.
        (b) The State ACP shall consist of the guidelines and practices 
    authorized by the STC and approved by the Deputy Administrator after 
    considering the recommendations submitted by COC's.
    
    
    Sec. 701.109  Selection of practices.
    
        The practices to be included in the State or county ACP shall be 
    only those practices authorized by Deputy Administrator for which cost-
    share assistance is essential to permit accomplishment of the ACP 
    objective.
    
    
    Sec. 701.110  Levels and rates of cost-share assistance.
    
        (a) The maximum level of cost-share assistance for each practice 
    shall be the percentage of the average cost of performing the practice 
    considered necessary to obtain the needed performance of the practice 
    and established at a level such that the participant will make a 
    significant contribution to the cost of performing the practice.
        (b) Levels of cost-share assistance under annual agreements for 
    each practice shall not be in excess of seventy-five (75) percent of 
    the average cost of performing the practice as determined by the COC. 
    Where the Deputy Administrator determines a higher level of cost-share 
    assistance is necessary to provide adequate incentive for a participant 
    to perform a conservation practice, the Deputy Administrator may 
    specifically authorize a higher level. See Sec. 701.116 for special 
    provision for low-income farmers.
        (c) Levels of cost-share assistance under long-term agreements 
    shall not be in excess of seventy-five (75) percent nor less than 50 
    percent of the average cost for each practice as determined by the COC.
        (d) For the purpose of establishing rates of cost-share assistance, 
    the average cost of performing a practice may be the average cost for 
    either a county or a part of a county as determined by the COC.
    
    
    Sec. 701.111  Starting practices.
    
        Costs will not be shared for practices or components of practices 
    that are started before COC approval.
    
    
    Sec. 701.112  Method of approval.
    
        (a) The COC shall determine the extent to which Federal funds may 
    be made available to share the cost of each approved practice, taking 
    into consideration the county allocation, the conservation and 
    environmental problems in the county, the land involved, and the 
    practices for which requested cost-share assistance is considered by 
    the COC as most needed. The method approved shall provide for the 
    issuance of notices of approval showing for each approved practice the 
    number of units of the practice for which the Federal Government will 
    share in the cost and the amount of the cost-share assistance for the 
    performance of that number of units of the practice. To the extent 
    practicable, notices of approved practices shall be issued before 
    performance of the practice is started. No practice may be approved for 
    cost-share assistance except as authorized by the county program, or 
    according to procedures incorporated therein. Available funds for cost-
    share assistance shall not be allocated on a proportionate share basis; 
    however, cost-share funds shall be directed to the accomplishment of 
    the most enduring benefits attainable.
        (b) Cost-share assistance may be approved under annual agreements 
    or long-term agreements.
        (c) Annual agreements may be approved in all counties. Long-term 
    agreements are limited to farms or ranches which are within Soil 
    Conservation Districts (or comparable districts) through which the SCS 
    provides planning and technical services, except:
        (1) Farms and ranches located within a county designated for the 
    Great Plains Conservation Program (GPCP) are only eligible if not 
    covered by GPCP contract.
        (2) Farms and ranches not located within a Soil Conservation 
    District or comparable district may be eligible for a long-term 
    agreement provided CPO's are developed by the farmer or rancher in 
    cooperation with the SCS and approved by an appropriate State official 
    or, in cases where an appropriate State official is not available, 
    approved by the SCS.
    
    
    Sec. 701.113  Long-term agreements.
    
        (a) The period of a long-term agreement shall be for not less than 
    three (3) program years nor more than ten (10) program years. The COC 
    and the signors to the long-term agreement in consultation with the SCS 
    representative shall mutually determine the period of the agreement.
        (b) The long-term agreement will be based on a CPO for the farm or 
    ranch or portion thereof which has been approved by the Soil 
    Conservation District or comparable district or for farms or ranches 
    not located in a Soil Conservation District or comparable district, by 
    an appropriate State Official or the SCS, as applicable.
        (c) The long-term agreement will provide that the farmer or rancher 
    will perform those measures in the CPO's which are determined to be 
    essential to meeting the basic conservation needs of the farm or ranch, 
    or portion thereof, regardless of whether cost-share assistance is 
    approved for such measures.
        (d) The owner of the farm or ranch will be required to sign a long-
    term agreement regardless of whether that person contributes to the 
    cost of approved practices thereon except in cases where the long-term 
    agreement consists wholly of integrated crop management practices.
        (e) Any party to a long-term agreement who is not an owner of the 
    farm or ranch shall provide assurance of control of the land for the 
    duration of the period of the agreement.
        (f) The level of cost-share assistance as provided in Sec. 701.110, 
    in effect for practices in all years of a long-term agreement shall be 
    the level in effect at the beginning year of the agreement. The rate of 
    cost-share assistance for payment purposes for such practice shall be 
    based on the average cost of performing the practice at the time the 
    practice is performed.
        (g) A long-term agreement may be canceled for failure to fully 
    comply with the terms of the agreement if, after consulting with the 
    Soil Conservation District or comparable district board or if none 
    exists with a representative of the SCS, the State or COC determines 
    that the seriousness of the irregularities warrant such action. If the 
    agreement is canceled, the parties to the agreement are jointly and 
    severally responsible for refunding all cost shares paid and will 
    forfeit all rights to further payments under the agreement. In such a 
    case, no other refund or forfeiture provisions of these regulations 
    apply.
        (h) A long-term agreement may be revised according to instructions 
    issued by the Deputy Administrator by mutual agreement between the 
    parties to the agreement and the COC based on approved changes in the 
    CPO's for the farm or ranch.
        (i) An otherwise eligible person who acquires control of land under 
    an approved agreement may elect to become a successor in interest under 
    such agreement.
        (j) An agreement will be terminated with respect to land for which 
    loss of control has occurred and where the person acquiring control of 
    such land elects not to become a successor in interest under the 
    agreement. If the loss of control is for reasons beyond the control of 
    the parties to the agreement, the COC will determine whether any cost-
    share assistance previously paid shall be refunded; however, in no 
    event shall the refund be greater than would be required in cases where 
    loss of control is voluntary. If the loss of control is voluntary on 
    the part of the signatories to the agreement, the signatories will be 
    jointly and severally responsible for refunding all cost shares paid 
    and will forfeit all rights to further payments, with respect to the 
    land for which control is lost. However, a refund will not be required 
    for cost shares where the COC or the STC determine, after consulting 
    with a representative of the SCS, that failure to perform the remaining 
    practices in the agreement will not impair the effectiveness of the 
    practices which have been performed and that the completed practices 
    have provided conservation benefits consistent with the cost shares 
    which have been paid.
        (k) An agreement may be terminated by the COC, after considering 
    the recommendation of the Soil Conservation District or comparable 
    district board or if none exists with a representative of the SCS if 
    such action is in the public interest. The COC will determine the 
    amount of cost shares previously paid that shall be refunded.
        (l) An agreement may be terminated by the COC upon the written 
    request of the participant to a long-term agreement where no cost-share 
    assistance has been paid for any of the scheduled practices and where 
    the participant does not intend to perform any of the scheduled 
    practices.
    
    
    Sec. 701.114  Replacement, enlargement, or restoration.
    
        The establishment or installation of a practice, for the purposes 
    of the program shall be deemed to include the replacement, enlargement, 
    or restoration of a practice for which cost-share assistance has been 
    allowed if the practice has served its normal lifespan or if all of the 
    following conditions exist:
        (a) Replacement, enlargement, or restoration of the practice is 
    needed to solve the related conservation or environmental problem.
        (b) The failure of the original practice was not due to the lack of 
    proper maintenance by the current operator.
        (c) The COC believes that the replacement, enlargement, or 
    restoration of the practice merits consideration to an equal extent 
    with other practices.
        (d) The replacement, enlargement, or restoration of the practice is 
    not being performed because the producer has increased his operation to 
    where these measures are needed to solve the increased conservation or 
    environmental problem.
    
    
    Sec. 701.115  Pooling agreements.
    
        Eligible persons in any local area may agree in writing with the 
    approval of the COC to perform designated practices which will solve a 
    mutual conservation, pollution, or other environmental problem on the 
    land of the participants. For purposes of eligibility for cost-share 
    assistance, practices carried out under such an approved written 
    agreement shall be regarded as having been carried out on the land of 
    the persons who performed the practices.
    
    
    Sec. 701.116  Special provisions for low-income farmers and ranchers.
    
        (a) Except as otherwise provided in Sec. 701.110(c), the COC may 
    approve in the case of low-income farmers and ranchers as defined in 
    this section a level of cost-share assistance of up to eighty (80) 
    percent of the average cost of performing practices.
        (b) A low-income farmer or rancher is one who as determined by the 
    COC is a small producer whose livelihood is largely dependent on the 
    farm or ranch and whose prospective income and financial resources for 
    the current year are such that the low-income farmer or rancher could 
    not reasonably be expected to perform needed conservation practices at 
    levels of cost-share assistance applicable to other persons in the 
    county.
    
    
    Sec. 701.117  Maximum cost-share assistance limitation.
    
        For each program year, the total amount which may be received by 
    any person under this subpart for approved practices shall not exceed 
    $3,500 except that:
        (a) The total amount received for approved practices, including 
    those carried out under pooling agreements, shall not exceed $10,000; 
    and
        (b) The total amount received under an ACP long-term agreement 
    (LTA) shall not exceed the annual payment limitation ($3,500) 
    multiplied by the number of years remaining in the LTA. The payment 
    limitation in effect after the first year of LTA or after an LTA 
    payment has been made shall be equal to the lessor of the following:
        (1) The number of years remaining in the LTA times the annual 
    payment limitation; or
        (2) The difference between the LTA's maximum payment limitation and 
    the ACP cost-share assistance previously earned during the contract 
    period.
    
    
    Sec. 701.118  Completion of practices.
    
        Cost-share assistance for the practices contained in this part is 
    conditioned upon the performance of the practice according to all 
    applicable specifications and program provisions.
    
    
    Sec. 701.119  Time of filing payment application.
    
        Payment of cost-share assistance will be made only upon application 
    submitted on the prescribed form to the county office by a date 
    established by the COC. Any application for payment may be denied if 
    any form or information required of the applicant is not submitted to 
    the county office within the applicable time limit.
    
    
    Sec. 701.120  Water Quality Incentive Projects.
    
        (a) The WQIP administered through the ACP provides both financial 
    and technical assistance to achieve the source reduction of pollutants 
    in an environmentally and economically sound manner in order to assist 
    in compliance with State and Federal environmental laws to enhance the 
    environment.
        (b) Other provisions as contained in subpart A and this subpart 
    apply to WQIP.
        (c) Any representative of USDA, or designee thereof, shall have the 
    right of access to land which is the subject of a WQIP application, or 
    land which is under a WQIP agreement; and shall have the right to 
    examine records, with respect to crop management systems, use of 
    agricultural inputs, recordkeeping, land use decisions, resource 
    inventory, and impacts on water quality for the purpose of determining 
    whether there is compliance with the terms and conditions of the WQIP 
    agreement.
        (d) A participant may, in addition to any payment earned under 
    WQIP, receive other financial assistance, rental payments, or tax 
    benefits from a State or subdivision of such State for enrolling lands 
    in WQIP.
        (e) Eligible land areas must be:
        (1) Wellhead areas included by the Secretary or designee in 
    consultation with Environmental Protection Agency (EPA) and the State 
    agency responsible for the State's operations under the Safe Drinking 
    Water Act (42 U.S.C. 300 h-7);
        (2) Critical nonpoint agricultural areas identified in Clean Water 
    Act 319 plans;
        (3) Karst topography areas with sinkholes;
        (4) Agricultural nonpoint source areas that may adversely impact 
    threatened or endangered species habitat;
        (5) Areas recommended by State environmental agencies and approved 
    by the Secretary;
        (6) Areas recommended by EPA and DOI in consultation with the 
    Secretary;
        (7) Lands not located within approved or designated areas but that 
    are in proximity and if allowed to continue to operate under the 
    existing management practices would defeat the purpose of the program; 
    and
        (8) Areas contributing to identified water quality problems in 
    Secretarial designated areas.
        (f) WQIP agreements shall be administered through long-term 
    agreements. These agreements shall be a minimum of three (3) years to a 
    maximum of five (5) years in duration as determined by the Deputy 
    Administrator.
        (g) The applicant, in consultation with the SCS or other designated 
    technical agency, shall develop a Water Quality Resource Management 
    Plan which will:
        (1) Include an assessment of the resources and management measures 
    needed to achieve the source reduction of agricultural pollutants;
        (2) Cover the entire tract or tracts owned or operated by the 
    applicant within the WQIP area;
        (3) Be reviewed and approved by SCS;
        (4) Be reviewed and approved by the local Conservation District; 
    and
        (5) Be consistent with conservation compliance goals.
        (h) Technical assistance will be provided by the SCS as the lead 
    agency with assistance from the Cooperative Extension Service, 
    Agricultural Research Service, and other Federal agencies and private 
    consultants as deemed necessary by the Secretary.
    
    
    Secs. 701.121-701.199  [Reserved]
    
    Subpart C--Emergency Conservation Program
    
    
    Sec. 701.200  Program objective.
    
        The objective of the ECP is to cost share with eligible persons to 
    rehabilitate farmlands damaged by wind and water erosion, floods, 
    hurricanes, or other natural disasters and to provide water 
    conservation or water enhancement measures during periods of severe 
    drought.
    
    
    Sec. 701.201  Program availability.
    
        (a) The COC may implement the program subject to the availability 
    of funds where new conservation problems have been created on farmland 
    by a natural disaster or wind erosion which if not treated will:
        (1) Impair or endanger the land;
        (2) Materially affect the productive capacity of the land;
        (3) Represent damage which is unusual in character and except for 
    wind erosion shall not be the type that would recur frequently in the 
    same area; and
        (4) Be so costly to rehabilitate that Federal assistance is or will 
    be required to return the land to productive agricultural use.
        (b) Subject to the availability of funds, the COC with the 
    concurrence of the STC and approval of the Deputy Administrator may 
    implement the program to carry out emergency water conservation and 
    water enhancement measures during periods of severe drought.
        (c) Land normally used for farming or ranching which is protected 
    by levees or dikes is eligible for enrollment in the ECP, except as 
    follows:
        (1) Land adjacent to water impoundment reservoirs subject to 
    inundation when the reservoir is filled to capacity;
        (2) Land that is subject to frequent damage which is any of the 
    following:
        (i) Land has been severely damaged 3 or more times in the last 25 
    years, including the current disaster. Also land protected by levees or 
    dikes that have physically failed and severely damaged adjoining land 3 
    or more times in the last 25 years, including the current disaster.
        (ii) Land that is susceptible to severe damage because of its 
    location, regardless of whether it has been severely damaged in the 
    last 25 years.
        (iii) Flowage or flood easements acquired by the U.S. Army Corps of 
    Engineers or other authorities that are subject to inundation when 
    water is released under the course of normal operations.
        (3) Land located in old or new channels of a stream, creek, river, 
    or other similar body of water or on any of the inside banks unless 
    approved by DASCO. Facilities in irrigation canals or on their inside 
    banks may be approved if the canal is not a channel subject to 
    flooding;
        (4) Land in greenhouses or other confined areas; and (5) Land on 
    which poor farming practices, such as failure to farm on the contour, 
    have materially contributed to damaging the land.
    
    
    Sec. 701.202  Eligibility of person and land.
    
        Person and land eligibility requirements are the same as for the 
    ACP as provided in Secs. 701.104 and 701.105 except in cases of severe 
    drought conditions then cost-share assistance is limited to supplying:
        (a) Emergency livestock water, including measures to assist 
    confined livestock operations, and
        (b) Water for existing irrigation systems serving orchards and 
    vineyards.
    
    
    Sec. 701.203  Emergency Conservation Program practices.
    
        (a) Except for severe drought and wind erosion, cost-share 
    assistance may be offered for emergency conservation practices only to 
    replace or restore farmland to a condition similar to that existing 
    before the natural disaster. Cost-share assistance may not be offered 
    for the solution of conservation problems existing before the disaster.
        (b) ECP practices for which cost-share assistance may be authorized 
    are:
        (1) Removing debris from farmland.
        (2) Grading, shaping, releveling, or similar measures.
        (3) Restoring permanent fences.
        (4) Restoring structures and other installations.
        (5) Emergency wind control measures.
        (6) Drought emergency measures.
        (7) Other emergency conservation measures.
    
    
    Sec. 701.204  Practice approval.
    
        Practices listed in Sec. 701.203 (b)(1) through (b)(5) may be 
    approved by COC's. Authorization to offer practices at Sec. 701.203 
    (b)(6) and (b)(7) shall be approved by the Deputy Administrator.
    
    
    Sec. 701.205  Extent of cost-share assistance.
    
        (a) The maximum payment under this subpart per person, per 
    disaster, is limited to $200,000 including the amount of any payment 
    received by such person as the result of the disaster under a pooling 
    agreement.
        (b) The cost-share payments which may be made by ASCS for a 
    practice under the program shall, subject to the maximum payment amount 
    specified in paragraph (a) of this section and any other limitation as 
    may apply, be further limited to the level of cost-share assistance 
    established by the COC not to exceed:
        (1) Sixty four (64) percent of the first $62,500 of the eligible 
    cost of restoring the loss;
        (2) Forty (40) percent of the second $62,500 of the eligible cost 
    of restoring the loss; and
        (3) Twenty (20) percent of the eligible cost above $125,000 to 
    restore the loss.
    
    
    Sec. 701.206  Eligible costs.
    
        Upon determination that a person is eligible for ECP assistance, 
    cost-share assistance may be authorized for all reasonable costs 
    incurred in the completion of the practice. Such costs may include 
    personal labor, equipment, and other such costs which are determined by 
    the COC to be related to the costs of performing the practice. COC's 
    shall limit costs for the use of personal equipment to an amount that 
    reflects out-of-pocket expenses. Expenses for personal labor and 
    personal equipment shall be less than rates charged by contractors who 
    expect to make a profit for their efforts.
    
    
    Sec. 701.207  Filing requests.
    
        (a) The COC shall establish an enrollment period for filing cost-
    sharing requests immediately after the COC's authorization or the 
    Deputy Administrator's authorization in cases of drought to implement 
    the ECP in the county. Such periods shall be at least 30 days in 
    length. Late-filed requests may be accepted by the COC in justifiable 
    cases.
        (b) Costs will not be shared for practices or components of 
    practices that are started before a request is filed with the county 
    office.
    
    
    Sec. 701.208  Approving requests.
    
        COC's shall issue practice approvals only when:
        (a) Funds are available;
        (b) The requested practice has been determined eligible for cost-
    share assistance; and
        (c) The eligible person has indicated a readiness to start the 
    practice.
    
    
    Sec. 701.209  Pooling agreements.
    
        Pooling agreements may be used on the same basis as provided for at 
    Sec. 701.115.
    
    
    Sec. 701.210  Payment approval.
    
        The COC is authorized to approve payments not to exceed $10,000 per 
    person per disaster. The STC is authorized to approve payments not to 
    exceed $20,000 per person per disaster. Cost-share assistance in excess 
    of $20,000 must be approved by the Deputy Administrator.
    
    
    Secs. 701.211-701.299  [Reserved]
    
    Subpart D--Forestry Incentives Program
    
    
    Sec. 701.300  Program objective.
    
        The objective of the FIP is to help ensure a future supply of 
    timber will be accomplished by encouraging landowners to apply forestry 
    practices for:
        (a) Production of softwood and hardwood timber and other associated 
    forest resources to increase afforestation of suitable open lands.
        (b) Reforestation of cutover and understocked forest lands.
        (c) Timber stand improvement.
        (d) Intensive multipurpose management.
        (e) Protection of forest resources.
    
    
    Sec. 701.301  Designated counties.
    
        The STC in consultation with the State Forester will designate the 
    counties or parts of counties in which FIP will be operated. The 
    following will be considered in making the designations:
        (a) The total acreage in the county devoted to desirable types of 
    softwood and hardwood timber.
        (b) The estimated area in the county that is under eligible 
    ownership.
        (c) The estimated acreage suitable for the production of forest 
    products.
        (d) The availability of funds.
        (e) The enhancement of other forest resources.
    
    
    Sec. 701.302  Eligible person, land, and ownerships.
    
        (a) An eligible person is a private individual, group, Native 
    American Tribe or other native group, association, corporation 
    excluding corporations whose stocks are publicly traded, or other legal 
    entity which owns eligible land. Firms principally engaged in the 
    manufacture of wood products are not eligible. However, forest 
    landowners who manufacture forest products on a part-time or irregular 
    basis are eligible.
        (b) Eligible land is nonindustrial private forest land capable of 
    producing at least fifty (50) cubic feet of wood per acre per year.
        (c) Eligible farms are those not exceeding a total of 1,000 acres 
    of eligible private nonindustrial forest land in the United States or 
    any commonwealth, territory, or possession of the United States. The 
    STC with the concurrence of the State Forester may approve cost-share 
    assistance with landowners owning more than 1,000 acres but not more 
    than 5,000 acres of eligible forest land where it is deemed to be to 
    the public's significant benefit.
        (d) Significant public benefits are primarily those resulting from 
    cost-effective timber production with related benefits to aesthetics, 
    recreation, wildlife habitat, watershed protection, erosion reduction, 
    and other resource values.
    
    
    Sec. 701.303  Program funds.
    
        (a) Each designated State and county will receive a share of the 
    funds provided for the program. Funds will be distributed on the basis 
    of the forest production opportunities in each State, considering the 
    acreage of private nonindustrial forest lands, the number of eligible 
    owners, the potential productivity of such lands and the need for 
    reforestation, timber stand improvement, other forestry management 
    needs, and the enhancement of other forest resources. The Deputy 
    Administrator will allocate funds after consultation with 
    representatives of the FS and a committee of not less than five State 
    foresters or equivalent State officials selected by a majority of the 
    State foresters or equivalent State officials. The STC will consult 
    with the State forester when determining the allocation of such funds 
    to the designated counties.
        (b) A limitation on the amount of funds which may be obligated 
    under long-term agreements shall be established by the STC according to 
    guidelines provided by the Deputy Administrator.
    
    
    Sec. 701.304  Eligible practices and cost-share assistance 
    requirements.
    
        (a)(1) Cost-share assistance may be available for the following 
    National practices and authority:
        (i) Planting Trees.
        (ii) Improving a Stand of Forest Trees.
        (iii) Special Forestry Practices.
        (2) The Deputy Administrator after consultation with the FS, may 
    approve special forestry practices needed to solve a significant and 
    unique local condition for which the National practices are not 
    adequate. Such practices may be approved for inclusion in a county 
    program after consultation with the program development group and the 
    recommendation of the COC, the service forester, the STC, and the State 
    forester.
        (b) A forest management plan is required as a condition for cost-
    share assistance. The Forest Management plan will be developed in 
    consultation with the landowner, approved by the service forester, and 
    will contain information for accurate evaluation of practice 
    effectiveness. The participant will be required to perform those 
    measures in the Forest Management plan which are essential to the 
    effectiveness of the practice for which costs are shared. In the 
    development of the Forest Management plan, consideration will be given 
    to wildlife, watershed protection, recreation, erosion control, 
    aesthetics, and other associated forest resources values as well as 
    cost-effective timber production.
    
    
    Sec. 701.305  The National FIP.
    
        The National FIP is jointly developed by ASCS, the FS and the 
    committee of State foresters provided for in Sec. 701.303.
    
    
    Sec. 701.306  Development of State FIP.
    
        (a) A State FIP shall be developed in each applicable State or 
    territory according to the provisions contained in this part and in the 
    National FIP. The State FIP shall be developed by the State forestry 
    committee as provided in Sec. 701.303.
        (b) The State FIP shall be:
        (1) Recommended by the STC and State forester; and
        (2) Approved by the Deputy Administrator after consulting with the 
    FS.
    
    
    Sec. 701.307  Development of county FIP.
    
        (a) A county FIP shall be developed in each designated county 
    according to the provisions of the State FIP. The county FIP shall be 
    developed by the CCRG. The CCRG, working with the governing body of the 
    conservation district, the State forestry agency representatives, the 
    county supervisor of the Farmers Home Administration, and others with 
    conservation and environmental interest shall develop recommendations 
    for the county program.
        (b) The county FIP shall be recommended by the COC and service 
    forester and approved by the STC and State forester.
    
    
    Sec. 701.308  Adaptation of practices.
    
        (a) The practices included in the State FIP shall satisfy the 
    conditions and requirements of the National FIP. The STC and State 
    Forester may modify or delete National FIP provisions to make practices 
    more restrictive where such changes satisfy the objectives of the 
    program.
        (b) The practices included in the county FIP must meet the 
    conditions and requirements of the State FIP. The COC in consultation 
    with State Forestry representative or Service Forester may modify or 
    delete State FIP provisions to make practices more restrictive where 
    such changes satisfy the objectives of the program.
    
    
    Sec. 701.309  Levels and rates of cost-share assistance.
    
        (a) The maximum cost-share assistance for each practice shall be 
    the percentage of the actual cost of performing the practice considered 
    necessary by ASCS to ensure completion of the practice by the 
    participants.
        (b) Levels of cost-share assistance shall be approved by the STC 
    and shall not be in excess of sixty-five (65) percent of actual costs 
    incurred by the landowners.
        (c) For the purpose of establishing rates of cost-share assistance, 
    the average cost of performing a practice may be the average cost for a 
    State, a county or a part of a county, as determined by the STC.
        (d) The rates of cost-share assistance for practices included in 
    the county FIP may be lower than the rates approved for general use in 
    the State, as determined by the COC.
    
    
    Sec. 701.310  Prior approval for cost-share assistance.
    
        Costs will be shared only for those practices, or components of 
    practices, for which cost-share assistance is requested and approval 
    issued before performance is started.
    
    
    Sec. 701.311  Methods of approval.
    
        The COC shall determine the extent to which Federal funds may be 
    made available to share the cost of each approved practice. Approvals 
    shall be made based on consideration of the county allocation, cost-
    effective opportunities for increasing timber production, potential for 
    enhancing other forest resources, the forestry needs in the county, and 
    the practices for which requested cost-share assistance is considered 
    by the COC as most needed. The method approved shall provide for the 
    issuance of notices of approval showing for each approved practice the 
    number of units of the practice for which the Federal Government will 
    share in the cost and the amount of the cost share for the performance 
    of that number of units of the practice. Notices of approved requests 
    shall be issued before the practice may be started. No practice may be 
    approved for cost-share assistance except as authorized by the county 
    FIP. Available funds for cost-share assistance shall not be allocated 
    on a pro-rata basis, but shall be directed to the accomplishment of the 
    most production attainable.
        (a) Cost-share assistance may be approved under annual agreements 
    or long-term agreements.
        (b) Land covered by a GPCP contract is not excluded from an annual 
    or long-term agreement if the land is otherwise eligible.
        (c) The same practices, cost-share levels, and general program 
    provisions apply to both annual agreements and long-term agreements.
    
    
    Sec. 701.312  Long-term agreements.
    
        (a) The period of a long-term agreement shall be for not less than 
    three (3) years nor more than ten (10) years. The COC and the parties 
    to the agreement in consultation with the State forestry representative 
    will mutually determine the scheduling of essential practices and 
    practice cost-sharing over the period of the agreement.
        (b) The long-term agreement shall be based on a forest management 
    plan for the land which shall be developed by the service forester.
        (c) The long-term agreement shall provide that the owner shall 
    perform those measures in the forest management plan which are 
    determined to be essential regardless of whether cost-share assistance 
    is approved for such measures.
        (d) The level of cost-share assistance in effect for practices in 
    all years of a long-term agreement shall be the level in effect for the 
    beginning year of the agreement. The rate of cost-sharing for payment 
    purposes for such practices will be based on the average cost of 
    performing the practice at the time the practice is performed.
        (e) A long-term agreement may be canceled for failure to fully 
    comply with the terms of the agreement if, after consulting with the 
    service forester, the STC or COC determines that the seriousness of the 
    irregularities warrant such action. If the agreement is canceled, the 
    signors to the agreement are jointly and severally responsible for 
    refunding all cost shares paid and will forfeit all rights to further 
    payments under the agreement. In such a case, no other refund or 
    forfeiture provisions of these regulations apply.
        (f) A long-term agreement may be revised in accordance with 
    instructions issued by the Deputy Administrator where there is a change 
    in status of the participants or the land under agreement.
        (g) An eligible person who acquires control of land under an 
    approved agreement may elect to become a successor in interest under 
    such agreement.
        (h) An agreement will be terminated with respect to land for which 
    loss of control has occurred and where the person acquiring control of 
    such land elects not to become a successor in interest under the 
    agreement. If the loss of control is for reasons beyond the control of 
    the signatories to the agreement, the COC will determine whether or not 
    any cost-share assistance previously paid shall be refunded; however, 
    in no event shall the refund be greater than would be required in cases 
    where loss of control is voluntary. If the loss of control is voluntary 
    on the part of the signatories, they will be jointly and severally 
    responsible for refunding all cost shares paid and will forfeit all 
    rights to further payments, with respect to the land for which control 
    is lost. A refund will not be required for cost-share assistance where 
    the COC or the STC determines, after consulting with the service 
    forester, that failure to perform the remaining practices in the 
    agreement will not impair the effectiveness of the practices which have 
    been performed and that the completed practices will provide forestry 
    benefits consistent with the cost-share assistance which have been 
    paid.
        (i) An agreement may be terminated if, after considering the 
    recommendation of the service forester, the STC or COC recommends that 
    such action is in the public interest.
    
    
    Sec. 701.313  Restoration of practices.
    
        (a) Cost-share assistance may be authorized under FIP for the 
    establishment or installation of the practices contained in this part. 
    Cost-share assistance may not be authorized for repeating any of the 
    practices in this part with the same owner on the same acreage, except 
    as provided in paragraph (b) or (c) of this section.
        (b) Cost-share assistance may be authorized for the replacement, 
    enlargement, or restoration of practices for which such assistance has 
    been allowed under the program only if all of the following conditions 
    exist:
        (1) Replacement or restoration of the practice is needed to solve a 
    conservation or environmental problem.
        (2) The failure of the original practice was not due to the lack of 
    proper maintenance by the current operator.
        (3) The COC believes that the replacement or restoration of the 
    practice merits consideration under the program to an equal extent with 
    other practices cost-shared.
        (c) Cost-share assistance may be authorized for timber stand 
    improvement measures carried out in repetitive steps where the stand 
    treatment warrants such silvicultural practice in the judgment of the 
    service forester.
    
    
    Sec. 701.314  FIP maximum cost-share assistance limitations.
    
        For each program year, the total amount which may be received by 
    any person under this subpart shall not exceed $10,000 with respect to 
    eligible owners (Sec. 701.302) in the United States or any 
    commonwealth, territory, or possessions of the United States for 
    approved practices performed under annual or long-term agreements.
    
    
    Sec. 701.315  Completion of practice.
    
        Cost-share assistance for the practices contained in this subpart 
    is conditioned upon the performance of the practices according to all 
    applicable specifications and program provisions.
    
    
    Sec. 701.316  Time of filing payment application.
    
        Cost-share assistance will be made only upon an application 
    submitted to the county office by the prescribed time limit or any 
    authorized extension. Any application for payment may be rejected if 
    any information required of the applicant is not submitted to the 
    county office within the applicable time limit.
    
    
    Secs. 701.317-701.399  [Reserved]
    
        Signed at Washington, DC, on December 30, 1993.
    Bruce R. Weber,
    Acting Administrator, Agricultural Stabilization and Conservation 
    Service.
    [FR Doc. 94-415 Filed 1-7-94; 8:45 am]
    BILLING CODE 3410-05-P
    
    
    

Document Information

Published:
01/10/1994
Department:
Farm Service Agency
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
94-415
Dates:
Comments must be received on or before February 9, 1994 in order to be assured of consideration.
Pages:
1293-1305 (13 pages)
Docket Numbers:
Federal Register: January 10, 1994
RINs:
0560-AD08
CFR: (82)
7 CFR 701.1
7 CFR 701.2
7 CFR 701.3
7 CFR 701.4
7 CFR 701.5
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