96-20623. Wetlands Reserve Program  

  • [Federal Register Volume 61, Number 158 (Wednesday, August 14, 1996)]
    [Rules and Regulations]
    [Pages 42137-42143]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-20623]
    
    
    
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    Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / 
    Rules and Regulations
    
    [[Page 42137]]
    
    
    
    DEPARTMENT OF AGRICULTURE
    
    Commodity Credit Corporation
    Natural Resources Conservation Service
    
    7 CFR Parts 620 and 1467
    
    RIN 0578-AA16
    
    
    Wetlands Reserve Program
    
    AGENCY: Commodity Credit Corporation, Natural Resources Conservation 
    Service, USDA.
    
    ACTION: Final rule.
    
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    SUMMARY: The Commodity Credit Corporation (CCC) and the Natural 
    Resources Conservation Service (NRCS) are issuing its final rule for 
    the Wetlands Reserve Program. This rule adopts as final the interim 
    rule for the Wetlands Reserve Program published on June 1, 1995, 
    responds to comments received from the public during the comment 
    period, and incorporates specific changes required by the Federal 
    Agriculture Improvement and Reform Act of 1996. The final rule will 
    provide the process by which the Wetlands Reserve Program is 
    administered by the NRCS.
    
    EFFECTIVE DATE: August 14, 1996.
    
    FOR FURTHER INFORMATION CONTACT:
    Robert Misso, (202) 720-3534.
    
    SUPPLEMENTARY INFORMATION: 
    
    Executive Order 12866
    
        The Office of Management and Budget (OMB) has determined that this 
    final rule is significant and was reviewed by the Office of Management 
    and Budget under Executive Order 12866. Pursuant to Sec. 6(a)(3) of 
    Executive Order 12866, CCC and NRCS prepared a cost-benefit assessment 
    of the potential impact of the program. The assessment concluded that 
    several mechanisms at the State and National level of the agency are in 
    place to ensure environmental benefits are maximized for each Federal 
    dollar spent in the WRP. These mechanisms include a comprehensive 
    prioritization and ranking procedure for each site offered for 
    enrollment in the program and the requirement for locally-determined 
    easement payment caps based on the agricultural land value. These 
    mechanisms are developed and implemented on a state-by-state basis, 
    with guidance and coordination from the National level of the agency, 
    to ensure that regional and geophysical variations are addressed. The 
    WRP costs data indicate that the procedures in place are promoting 
    cost-effectiveness. Copies of the cost-benefit assessment are available 
    upon request from Robert Misso, Program Manager, Watersheds and 
    Wetlands Division, Natural Resources Conservation Service, P.O. Box 
    2890, Washington, DC 20250.
    
    Regulatory Flexibility Act
    
        It has been determined that the Regulatory Flexibility Act is not 
    applicable to this rule because neither the CCC or NRCS are 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 through an environmental review that this 
    action is a modification of the existing WRP and is covered under the 
    NRCS 1990 Environmental Assessment entitled, ``Wetlands Reserve 
    Program--Environmental Assessment: Wetlands Reserve Provision of the 
    Conservation Program Improvements Act of 1990.'' NRCS supplemented the 
    environmental assessment to evaluate the changes to the program made 
    pursuant to the Federal Agriculture Improvement and Reform Act of 1996. 
    Copies of the environmental assessment with supplement are available 
    upon request from: Robert Misso, Program Manager, Watersheds and 
    Wetlands Division, Natural Resources Conservation Service, Post Office 
    Box 2890, Washington, DC 20250.
    
    Executive Order 12372
    
        This program/activity is not subject to the provisions of Executive 
    Order 12372 because it involves direct payments to individuals and not 
    to State and local officials. See notice related to 7 CFR Part 3015, 
    Subpart V, published at 48 FR 29115 (June 24, 1983).
    
    Federal Domestic Assistance Program
    
        The title and number of the Federal Domestic Assistance Program, as 
    found in the Catalog of Federal Domestic Assistance, to which this rule 
    applies are: Wetlands Reserve Program--10.072.
    
    Paperwork Reduction Act
    
        No substantive changes have been made in this final rule which 
    affect the recordkeeping requirements and estimated burdens previously 
    reviewed and approved under OMB control number 0578-0013.
    
    Executive Order 12778
    
        This final rule has been reviewed in accordance with Executive 
    Order 12778. The provisions of this final rule are not retroactive. 
    Furthermore, except as provided at 16 U.S.C. 3837a(e)(2), the 
    provisions of this final rule preempt State and local laws to the 
    extent such laws are inconsistent with this final rule. Before an 
    action may be brought in a Federal court of competent jurisdiction, the 
    administrative appeal rights afforded persons at 7 CFR Part 614 must be 
    exhausted.
    
    Unfunded Mandates Reform Act of 1995
    
        Pursuant to Title II of the Unfunded Mandates Reform Act of 1995, 
    which the President signed into law on March 22, 1995, the affects of 
    this rulemaking action on State, local, and tribal governments, and the 
    public have been assessed. This action does not compel the expenditure 
    of $100 million or more by any State, local or tribal governments, or 
    anyone in the private sector, and therefore a statement under section 
    202 of the Unfunded Mandates Reform Act of 1995 is not required.
    
    Discussion of Program
    
        The NRCS published the current regulations for the Wetlands Reserve 
    Program as an interim rule on June 1, 1995 (60 FR 28511). Enacted on 
    April 4, 1996, the Federal Agriculture Improvement and Reform Act (the 
    1996 Act) authorized the enrollment of non-easement acres into the 
    program through the use of restoration cost-share agreements and made 
    other minor changes to the focus of the program. This final rule adopts 
    the procedures outlined in the interim rule with the
    
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    addition of the few changes recommended during public comment and/or 
    required by the 1996 Act. These changes are described below. Minor 
    editorial changes have also been made for clarification and 
    administrative purposes. The 1996 Act amended the Food Security Act of 
    1985 (the 1985 Act), Pub. L. 99-198, to provide that the WRP should be 
    funded by CCC. Accordingly, this final rule is issued by CCC and NRCS.
    
    Discussion of Comments
    
        The NRCS received 16 comments concerning the interim rule during 
    the 60-day public comment period that ended July 31, 1995. Respondents 
    included national wildlife and conservation organizations, state 
    agencies, public utilities, and one State farm organization. Two of the 
    comments simply indicated support for the WRP and did not offer 
    specific suggested changes.
    
    Definitions
    
        NRCS received two comments requesting slight modifications to the 
    definitions in Sec. 620.2 of the interim rule. One comment suggested 
    that the definition for ``State Technical Committee'' be changed to 
    allow the State Conservationist flexibility in delegating the chair 
    position to other members of the committee. Currently, the State 
    Conservationist may delegate the chair position to other NRCS 
    personnel. Even so, implementation of the WRP at the state level 
    remains the responsibility of the State Conservationist and therefore, 
    no changes were made to the definition of State Technical Committee. 
    The commenter also suggested that the definition of ``wetland functions 
    and values'' be revised from ``social worth placed upon these 
    characteristics'' to ``the socioeconomic value placed upon these 
    characteristics.'' This change clarifies the intent of the interim rule 
    and is adopted in this final rule.
        NRCS also received a comment from a state forestry agency 
    requesting that ``timber'' be included in the definition for ``wetland 
    functions and values.'' NRCS did not adopt this change because the 
    concept is incorporated in the current definition but the actual term 
    is too specific for a nationwide program which enrolls many different 
    types of wetlands with differing wetlands functions and values.
        Another commenter indicated that the definition of ``Conservation 
    Districts'' be modified to reflect better the mission of conservation 
    districts. The NRCS adopts the suggested language as an improvement to 
    the clarity of the definition. Additionally, section 620.3(f) is 
    modified to include conservation districts by specific reference to 
    clarify that NRCS values the special partnership that it has with 
    conservation districts in the effort to improve the Nation's soil, 
    water, and other natural resources, and NRCS will continue to seek 
    input from conservation districts in the administration of its 
    programs.
        The Consolidated Farm Service Agency (CFSA) is now known as the 
    Farm Service Agency (FSA). The rule is amended to reflect this name 
    change.
    
    Utility Easements
    
        NRCS received two comments from utility companies, both of which 
    expressed concern about how NRCS would approach the overlapping of a 
    WRP easement with a utility easement. Utility easements are addressed 
    during the title clearance process. During that process, the NRCS must 
    determine whether: (1) NRCS can obtain a subordination agreement from 
    the utility easement holder; (2) the exercise of the utility easement 
    holder's rights would be consistent with the purposes of the WRP 
    easement; or, (3) the exercise of the utility easement holder's rights 
    would undermine the purposes for which the WRP easement would be 
    established. If the NRCS is unable to obtain a subordination agreement 
    from the utility easement holder and the exercise of that easement 
    holder's rights would undermine the WRP easement, then the NRCS will 
    not purchase a WRP easement on that property. One of these commenters 
    also expressed support for the preference given permanent easements by 
    the interim rule.
    
    Water Quality
    
        One utility company commenter requested that the impact on drinking 
    water sources be a ranking factor for giving priority to purchasing a 
    particular easement. One of the conservation organizations also urged 
    that easements that provided water quality functions receive priority 
    treatment. Because water quality is one of the wetland functions for 
    which the easement is being established, the NRCS considers in its 
    ranking process, directly or indirectly, the impact an easement would 
    have on drinking water sources. Currently, each State Conservationist, 
    in consultation with the State Technical Committee, will determine the 
    weight that water quality in general, and impact on drinking water 
    specifically, should receive in the ranking process. In the future, 
    NRCS along with other agencies with wetland responsibilities will use a 
    system (Hydrogeomorphic Modeling (HGM)) to evaluate wetland functions 
    and values more objectively. NRCS will be better able to rank wetland 
    sites for WRP that differ, thus providing for more consistency within 
    and between States.
    
    Compatible Uses
    
        NRCS received four letters from State forestry organizations and 
    one letter from a State farm organization which expressed opposition to 
    language placed in the preamble to the WRP interim rule regarding 
    compatible economic uses of the easement area as it related to forest 
    management activities. NRCS also received a comment, however, from a 
    conservation organization which supported the language used in the 
    preamble, suggesting that some management approaches may not be 
    consistent with the long-term protection of wetland resources.
        According to the WRP authorizing language at 16 U.S.C. 3837a(d), 
    compatible economic uses, including forest management, are permitted if 
    consistent with the long-term protection and enhancement of the 
    wetlands resources for which the easement was established. In the 
    preamble, NRCS simply indicated that harvesting methods which are not 
    consistent with the long-term protection and enhancement of wetland 
    functions and values on a particular easement area will not be 
    considered a compatible use. Upon request by a landowner, the NRCS will 
    evaluate the particular site on an easement area and will make a 
    determination of what silvicultural approach, timing, intensity, and 
    duration may be considered compatible with the wetland functions and 
    values.
        The document granting permission for forest management activities, 
    or any other request for a compatible use, specifies the amount, 
    method, timing, intensity, and duration of the use being granted. The 
    NRCS, however, reserves its ability to modify a particular use should 
    easement area conditions change. The management plan for an easement 
    area is a ``living document'' and may be updated with additional 
    compatible use requests as they are received from a landowner over 
    time.
        For example, the wetland functions and values that are established 
    by the WRP restoration efforts are not available for mitigation 
    purposes. However, at a later date, the landowner may request 
    permission from the NRCS to enhance further the functions and values 
    established by the WRP restoration effort. If the NRCS determines that 
    the enhancement action is a compatible use and is clearly beyond the 
    scope of restoration actions that would be feasible under any 
    subsequent WRP
    
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    restoration efforts, the additional increment of functions and values 
    which directly result from the landowner's approved enhancement action 
    may be available to meet mitigation requirements under other federal, 
    state, or local law.
        No matter the use, the test remains: ``Is a particular proposed use 
    consistent with the long-term protection and enhancement of the 
    wetlands resources for which the easement was established and Federal 
    funds expended?'' This approach is consistent with the WRP statute and 
    does not require any change to the WRP rule.
    
    Non-permanent Easements
    
        The NRCS received four comments in which the commenters expressed 
    concern that the interim rule gave such priority to the enrollment of 
    permanent easements that the enrollment of non-permanent easements 
    would be completely excluded from the program. One commenter expressed 
    the concern that the priority placed on permanent easements 
    overshadowed the other priority mandated by statute. In particular, the 
    WRP authorizing legislation at 16 U.S.C. 3837c(d) provides that 
    priority should be placed on acquiring easements based on the value of 
    the easement for protecting and enhancing habitat for migratory birds 
    and other wildlife.
        Sections 620.8(b)(4) and (5) of the rule require that the NRCS 
    consider whether any permanent easement offer has the ecological and 
    cost characteristics which warrants acquisition before proceeding to 
    acquire a non-permanent easement. The commenters recognized that non-
    permanent easements receive a different easement payment than a 
    permanent easement, but either did not express specific opposition to 
    the differentiated payment rate or expressed support for it. The 1996 
    Act amendments require, to the extent practicable after October 1, 
    1996, that NRCS enroll one-third of total program acres through the use 
    of 30-year easements.
        In response to the comments received and explicit direction from 
    statute, NRCS has removed Secs. 620.8(b)(4) and (5) and thus eliminated 
    these particular constraints upon the enrollment of non-permanent 
    easements. The 1996 amendments also provided that the restoration cost-
    share rate for a 30-year easement should be from 50 to 75 percent. The 
    interim rule provided that the easement payment rate for a non-
    permanent easement should parallel the restoration cost-share rate. 
    Therefore, Sec. 620.8(b)(3) has been amended to indicate that the 
    easement payment for a 30-year easement shall be between 50 percent and 
    75 percent of that which would have been paid for a permanent easement.
        One commenter noted that the $50,000 annual easement payment 
    limitation discriminated unduly against the acquisition of less than 
    permanent easements. The interim final rule had established the $50,000 
    annual easement payment cap for all non-permanent easement 
    acquisitions. However, by statute, the $50,000 annual easement payment 
    limitation for non-permanent easements is a discretionary cap. As such, 
    the NRCS has determined that in special circumstances involving 
    projects with partnership funding or participation, a greater annual 
    easement payment amount may be available. Additionally, the statute 
    provides that payments are exempted from the payment limitation if the 
    payment is received by a State, political subdivision, or agency 
    thereof in connection with agreements entered into under a special 
    wetland and environmental enhancement program carried out by that 
    entity that has been approved by NRCS. The final rule is amended 
    accordingly.
        Section 620.17 addresses the administrative appeal procedures to be 
    used when a person desires review of an administration determination 
    concerning eligibility for participation. The interim final rule for 
    the National Appeals Division (NED) Rules of Procedures, 60 FR 67298 
    (December 29, 1995), amended Sec. 620.17 to include reference to 7 CFR 
    Part 780 and 7 CFR Part 11. The NAD interim final rule also amended 7 
    CFR Part 614, the NRCS appeals procedures originally referenced in 
    Sec. 620.17. Part 614, as amended, references the other appeal 
    procedures at 7 CFR Part 780 and 7 CFR Part 11, and their additional 
    mention in Sec. 620.17 is therefore redundant. This final rule amends 
    Sec. 620.17 to remove the redundant reference to 7 CFR Part 780 7 CFR 
    Part 11.
    
    Discussion of the Federal Agriculture Improvement and Reform Act
    
        The Federal Agriculture Improvement and Reform Act (the 1996 Act) 
    was enacted on April 4, 1996. The 1996 Act amended the Food Security 
    Act of 1985, 16 U.S.C. 3801 et seq., to re-authorize the Environmental 
    Conservation Acreage Reserve Program as the umbrella conservation 
    program encompassing the Conservation Reserve Program (16 U.S.C. 3831-
    3836), the newly-created Environmental Quality Incentives Program (16 
    U.S.C. 3840), and the Wetlands Reserve Program (16 U.S.C. 3837 et 
    seq.). Under the Environmental Conservation Acreage Reserve program, 
    the Secretary of Agriculture may designate areas as conservation 
    priority areas to assist landowners to meet nonpoint source pollution 
    requirements and other conservation needs.
        The 1996 Act effects several changes to the administration of the 
    WRP. In particular, the 1996 Act amendments authorize the enrollment of 
    land into the Wetlands Reserve Program until 2002, establishes a 
    program cap at 975,000 acres, and provides that eligible land must 
    maximize wildlife benefits and wetland functions and values.
        The 1996 Act amendments also require that, to the extent 
    practicable beginning October 1, 1996, one-third of the remaining 
    program acres be enrolled through the use of permanent easements, one-
    third through the use of 30-year easements, and one-third through the 
    use of restoration cost-share agreements. Further, after October 1, 
    1996, no new permanent easement can be enrolled until at last 75,000 
    acres of non-permanent easement are enrolled in the program. Section 
    721 of the agriculture Appropriations Act, enacted August 6, 1996, 
    stated that this condition on enrollment ``shall be deemed met upon the 
    enrollment of 43,333 acres through the use of temporary easements: 
    Provided further that the Secretary shall not enroll acres * * * 
    through the use of new permanent easements in fiscal year 1998 until 
    the Secretary has enrolled at least 31,667 acres in the program through 
    the use of temporary easements.'' In recognition that the NRCS must 
    enroll lands that maximize wildlife benefits and other wetland 
    functions and values, achieve cost-efficient restoration, and provide 
    the three identified enrollment approaches, the NRCS will emphasize 
    enrolling lands that have the least likelihood of being reconverted. 
    The NRCS will work with landowners and other conservation partners to 
    achieve these lasting benefits for wetland resources.
        Through several public forums across the county, the NRCS received 
    comments from the public about the new conservation programs and the 
    changes to existing conservation programs as a result of the enactment 
    of the 1996 Act. The NRCS greatly appreciates the input provided by the 
    public through the forums and written comments submitted to the agency. 
    The NRCS will consider these comments during the formulation of its 
    policies and guidelines.
        Many of the changes to the WRP required by the 1996 Act are 
    directives to the agency which do not impact the
    
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    WRP rule. Some of the amendments, however, require specific, non-
    discretionary changes to the WRP regulations. Since these changes are 
    mandatory and do not require agency interpretation, the CCC and NRCS 
    have incorporated them into this final rule. The following sections and 
    parts are impacted:
    
    Section 620.2
    
        The 1966 Act made several changes to other programs which relate to 
    WRP, including the wetland conservation provisions, 7 CFR Part 12, and 
    the Conservation Reserve Program, 7 CFR Parts 704 and 1410. Therefore, 
    certain definitions are removed from this part to avoid any 
    inconsistencies with the implementation of these other provisions.
    
    Section 620.3
    
        The 1996 Act requires the Department of Agriculture to avoid 
    duplication of conservation plans required for the implementation of 
    the highly erodible land conservation provisions of the Food Security 
    Act of 1985, CRP, and the WRP. In response to this requirement, 
    Sec. 620.3(h) is amended to include coordination of the development of 
    conservation plans as an additional goal in the administration of the 
    WRP. The 1996 Act amendments also provide that areas may be designated 
    as conservation priority areas to help producers comply with nonpoint 
    source pollution requirements and other conservation needs. Therefore, 
    a new sentence is added to Sec. 620.3(h) that the Secretary of 
    Agriculture may designate areas as conservation priority areas to 
    assist landowners to meet nonpoint source pollution requirements and 
    other conservation needs.
    
    Section 620.4
    
        The 1996 Act amendments authorize the enrollment of acres into the 
    WRP through the use of restoration cost-share agreements. Therefore, 
    the first sentence of Sec. 620.4 has been amended to include the term 
    ``restoration cost-share agreements.''
        The 1996 Act amendments links eligibility for WRP easement or cost-
    share payments to the highly erodible land and wetland conservation 
    provisions of the 1985 Act, 16 U.S.C. 3801 et seq., 7 CFR part 12. 
    Therefore, landowner eligibility, Sec. 620.4(c), is amended to reflect 
    that a person may not be eligible for participation in WRP if the 
    requirements of 7 CFR part 12 have not been met.
        The 1996 Act amendments specify that the 25 percent county 
    enrollment cap and the 10 percent county easement cap only apply to 
    acres enrolled in the Conservation Reserve Program (CRP) and the WRP, 
    and not all acres enrolled in the Environmental Conservation Acreage 
    Reserve Program. Therefore, the reference to the Environmental 
    Conservation Acreage Reserve Program in Sec. 620.4(b)(1) has been 
    replaced with specific reference to the CRP and the WRP. In addition to 
    consideration of any adverse effect on the local economy, the 1996 Act 
    amendments require that a waiver from the county caps can only be 
    approved if operators in the county are having difficulties complying 
    with the conservation plans implemented under 16 U.S.C. 3812. 
    Therefore, Sec. 620.4(b)(2) has been amended to incorporate this new 
    criterion.
        The 1996 Act amendments expanded the eligibility criteria to 
    require specifically that land enrolled in the program maximize 
    wildlife benefits. Therefore, Sec. 620.4(d) is amended to incorporate 
    the additional eligibility criterion.
        The 1985 Act provides that pasture land established to trees under 
    the CRP is ineligible for enrollment in the WRP. Even though such lands 
    were not enrolled in the program, specific mention of this 
    ineligibility provision was not made in the interim rule. Section 
    620.4(e) is amended to incorporate specifically this statutory 
    provision.
    
    Section 620.7
    
        The 1996 Act amendments require that after October 1, 1996, to the 
    extent practicable, the NRCS enroll one-third of the acres through the 
    use of permanent easements, one-third of the acres through the use of 
    30-year easements, and one-third of the acres through the use of 
    restoration cost-share agreements. The NRCS has considered land 
    enrolled in the program at the time the NRCS determines that a 
    landowner's offer is eligible, funds are committed to acquire that 
    particular easement, and the landowner agrees to continue in the 
    program. Because the 1996 Act amendments require that the NRCS track 
    the total acres enrolled through the use of permanent easements, 30-
    year easements, and restoration cost-share agreements, Sec. 620.7(b) is 
    amended to clarify that enrollment occurs at this stage in the process.
    
    Sections 620.8 and 620.13
    
        The 1996 Act amends 16 U.S.C. 3837a(f) to eliminate the specific 
    reference to lump sum payments for permanent easements only, and 
    further provides that annual compensation for any easement may be in 
    not less than 5 nor more than 30 annual payments of either equal or 
    unequal size. Therefore, Sec. 620.8(e) and Sec. 620.13(b)(1), which 
    incorporated the original statutory provisions as to payments, are 
    amended to reflect this specific change in law regarding easement 
    payments.
    
    Section 620.9 and 620.10
    
        To reflect that the NRCS shall enroll land into the WRP through the 
    use of restoration cost-share agreements, section 620.9 is amended by 
    adding specific reference to restoration cost-share agreements and 
    making associated editorial adjustments to this new type of enrollment 
    mechanism. Additionally, the 1996 Act amendments provide that the cost-
    share rate for restoration associated with 30-year easements shall be 
    no less than 50 nor more than 75 percent. Section 620.9(a) incorporates 
    this new statutory provision.
        Likewise, the requirements in Sec. 620.10, such as the granting of 
    an easement to the United States, are specific to enrollment into the 
    program through the use of an easement and not restoration cost-share 
    agreements. Therefore, the heading to Sec. 620.10 reflects that the 
    section is no longer applicable as ``Program requirements'' but now 
    more appropriately refers to easement enrollment requirements.
    
    Section 620.11
    
        The 1996 Act amendments provide that the development of the 
    restoration plan shall be made through the local NRCS representative, 
    in consultation with the State Technical Committee. The 1996 Act 
    amendments also removes the specific requirement that consultation with 
    the Department of the Interior means agreement at the local level and 
    consultation at the State level. Therefore, NRCS has added these 
    changes to Sec. 620.11 by 1) by removing the regulatory language in 
    paragraph (a) which required agreement with the U.S. Fish and Wildlife 
    Service at the local level, and 2) replacing the language with a new 
    paragraph (a) which now references the development of the plan by the 
    local NRCS representative.
    
    Section 620.14
    
        During the implementation of the program under the interim rule, 
    confusion arose regarding the language in Sec. 620.14 about 
    ``associated'' contract. The term ``associated'' was intended to mean a 
    contract ``associated with the program'' other than the easement deed. 
    As stated, the term ``associated'' inadvertently created the mistaken 
    conclusion that the contract is attached to the easement deed. 
    Therefore, the term ``associated'' has been removed to improve the 
    clarity of this section.
    
    [[Page 42141]]
    
    Parts 620 and 1467
    
        Because funds of the Commodity Credit Corporation shall be used for 
    administration of the WRP, the WRP rule is moved from Part 620 to Part 
    1467 of Title VII of the CFR. Furthermore, certain administrative 
    responsibilities may be assumed by other agencies with the Department 
    of Agriculture, and the rule is modified accordingly.
    
    List of Subjects in 7 CFR Part 1467
    
        Administrative practice and procedure, Agriculture, Soil 
    conservation, Wetlands.
        Accordingly, the interim rule establishing 7 CFR part 620 which was 
    published at 60 FR 28511 on June 1, 1995, is adopted as a final rule 
    with the following changes:
        1. In 7 CFR, chapter VI, part 620 is re-designated as chapter XIV, 
    part 1467, and the sections are re-designated as set forth below:
    
    ------------------------------------------------------------------------
                                                                      New   
                             Old section                            section 
    ------------------------------------------------------------------------
    620.1.......................................................     1467.1 
    620.2.......................................................     1467.3 
    620.3.......................................................     1467.2 
    620.4.......................................................     1467.4 
    620.5.......................................................     1467.5 
    620.6.......................................................     1467.6 
    620.7.......................................................     1467.7 
    620.8.......................................................     1467.8 
    620.9.......................................................     1467.9 
    620.10......................................................     1467.10
    620.11......................................................     1467.11
    620.12......................................................     1467.12
    620.13......................................................     1467.13
    620.14......................................................     1467.14
    620.15......................................................     1467.15
    620.16......................................................     1467.16
    620.17......................................................     1467.17
    620.18......................................................     1467.18
    ------------------------------------------------------------------------
    
    PART 1467--WETLANDS RESERVE PROGRAM
    
        2. The authority citation for re-designated part 1467 continues to 
    read as follows:
    
        Authority: 16 U.S.C. 590a, et seq.; and 16 U.S.C. 3837, et seq.
    
        3. Section 1467.1 is amended by revising the heading to the section 
    to read as follows:
    
    
    Sec. 1467.1  Applicability.
    
    * * * * *
        4. Section 1467.2 is amended by revising paragraphs (c), (f), and 
    (h) and amending paragraph (g) by revising the second and third 
    sentences to read as follows:
    
    
    Sec. 1467.2  Administration.
    
    * * * * *
        (c) As determined by the Chief and the Administrator of the Farm 
    Service Agency, the NRCS and the Farm Service Agency will seek 
    agreement in establishing policies, priorities, and guidelines related 
    to the implementation of this part.
    * * * * *
        (f) The Department may enter into cooperative agreements with 
    Federal or State agencies, conservation districts, and private 
    conservation organizations to assist the NRCS with educational efforts, 
    easement management and monitoring, outreach efforts, and program 
    implementation assistance.
        (g) * * * The NRCS may consult with the Forest Service, other 
    Federal or State agencies, conservation districts or other 
    organizations in program administration. No determination by the U.S. 
    Fish and Wildlife Service, the Forest Service, Federal or State agency, 
    conservation district, or other organization shall compel the NRCS to 
    take any action with the NRCS determines will not serve the purposes of 
    the program established by this part.
        (h) The Chief may allocate funds for such purposes related to: 
    special pilot programs for wetland management and monitoring; 
    acquisition of wetland easements with emergency funding; cooperative 
    agreements with other Federal or State agencies for program 
    implementation; coordination of easement enrollment across State 
    boundaries; coordination of the development of conservation plans; or, 
    for other goals of the WRP found in this part. The Department may 
    designate areas as conservation priority areas where environmental 
    concerns are especially pronounced and to assist landowners in meeting 
    nonpoint source pollution requirements and other conservation needs.
        5. Section 1467.3 is amended by removing the definitions for 
    ``Farmed wetland'', ``Farmed wetland pasture'', and ``Prior converted 
    cropland''; by revising the definitions for ``Conservation District'', 
    ``Conservation Reserve Program'', ``Contract'', ``Person'' and the 
    introductory text of ``Wetlands functions and values''; and by adding a 
    definition for ``Department'' to read as follows:
    
    
    Sec. 1467.3  Definitions.
    
    * * * * *
        Conservation District is a subdivision of a State government 
    organized pursuant to applicable State law to promote and undertake 
    actions for the conservation of soil, water, and other natural 
    resources.
        Conservation Reserve Program (CRP) means the program administered 
    by the Commodity Credit Corporation pursuant to 16 U.S.C. 3831-3836.
    * * * * *
        Contract means the document that specifies the obligations and 
    rights of any person who has been accepted for participation in the 
    program.
    * * * * *
        Department means the United States Department of Agriculture (USDA) 
    and includes the Commodity Credit Corporation or any USDA agency or 
    instrumentality delegated program responsibility by the Secretary of 
    Agriculture.
    * * * * *
        Person means an individual, partnership, association, corporation, 
    estate or trust, or other business enterprise or other legal entity 
    and, whenever applicable, a State, a political subdivision of a State, 
    or any agency thereof.
    * * * * *
        Wetland functions and values means the hydrological and biological 
    characteristics of wetlands and the socioeconomic value placed upon 
    these characteristics, including: * * *
    * * * * *
        6. Section 1467.4 is amended by revising the first sentence of 
    paragraph (a), and revising paragraphs (b)(1), the second sentence of 
    (b)(2), the introductory text of (c), paragraph (d)(2), the 
    introductory text of (d)(3), and paragraph (e)(2) to read as follows:
    
    
    Sec. 1467.4  Program requirements.
    
        (a) General. Under the WRP, the Department may purchase 
    conservation easements from, or enter into restoration cost-share 
    agreements with, eligible landowners who voluntarily cooperate in the 
    restoration and protection of wetlands and associated lands. * * *
        (b) * * *
        (1) Except for areas devoted to windbreaks or shelterbelts after 
    November 28, 1990, no more than 25 percent of the total cropland in any 
    county, as determined by the Farm Service Agency, may be enrolled in 
    the CRP and the WRP, and no more than 10 percent of the total cropland 
    in the county may be subject to an easement acquired under the CRP and 
    the WRP.
        (2) * * * Such a waiver will only be approved if it will not 
    adversely affect the local economy, and operators in the county are 
    having difficulties complying with the conservation plans implemented 
    under 16 U.S.C. 3812.
        (c) Landowner eligibility. The NRCS may determine that a person is 
    not eligible to participate in the WRP or receive any WRP payment 
    because the person did not comply with the
    
    [[Page 42142]]
    
    provisions of 7 CFR part 12. To be eligible to enroll an easement in 
    the WRP, a person must: * * *
    * * * * *
        (d) * * *
    * * * * *
        (2) Land shall only be considered eligible for enrollment in the 
    WRP if the NRCS determines, in consultation with the U.S. Fish and 
    Wildlife Service, that:
        (i) Such land maximizes wildlife benefits and wetland values and 
    functions;
        (ii) The likelihood of the successful restoration of such land and 
    the resultant wetland values merit inclusion of such land in the 
    program, taking into consideration the cost of such restoration; and
        (iii) Such land meets the criteria of paragraph (d)(3) of this 
    section.
        (3) The following land may be eligible for enrollment in the WRP, 
    which land may be identified by the NRCS pursuant to regulations and 
    implementing policies pertaining to wetland conservation found at 7 CFR 
    part 12, as: * * *
    * * * * *
        (e) * * *
        (2) Land that contains timber stands established under a CRP 
    contract or pasture land established to trees under a CRP contract.
    * * * * *
        7. In Sec. 1467.6, paragraphs (a) through (c) are re-designated as 
    paragraphs (b) through (d), a new paragraph (a) is added to read as 
    follows:
    
    
    Sec. 1467.6  Establishing priority for enrollment of properties in WRP.
    
        (a) The NRCS shall place priority on the enrollment of those lands 
    that will maximize wildlife values (especially related to enhancing 
    habitat for migratory birds and other wildlife); have the least 
    likelihood of re-conversion and loss of these wildlife values at the 
    end of the WRP enrollment period; and that involve State, local, or 
    other partnership matching funds and participation.
    * * * * *
        8. Section 1467.7 is amended by revising the heading to the section 
    and the heading to paragraph (b) to read as follows:
    
    
    Sec. 1467.7  Enrollment of easements.
    
    * * * * *
        (b) Effect of letter of intent to continue (enrollment). * * *
    * * * * *
        9. Section 1467.8 is amended by
        (a) Revising paragraph (b)(3);
        (b) Removing paragraphs (b)(4), (b)(5), and (e)(2);
        (c) Re-designating paragraph (e)(3) as (e)(2);
        (d) Revising re-designated paragraph (e)(2); and,
        (e) Revising paragraph (h).
        The revisions read as follows:
    
    
    Sec. 1467.8  Compensation for easements.
    
    * * * * *
        (b) * * *
        (3) Easement payments for non-permanent easements will be less than 
    those for permanent easements because the quality and duration of the 
    ecological benefits derived from a non-permanent easement are 
    significantly less than those derived from a permanent easement on the 
    same land. Additionally, the economic value of the easement interests 
    being acquired is less for a non-permanent easement than that 
    associated with a permanent easement. An easement payment for the 
    short-term 30-year easement shall not be less than 50 percent nor more 
    than 75 percent of that which would have been paid for a permanent 
    easement.
    * * * * *
        (e) * * *
        (2) Annual easement payments may be made in no less than 5 annual 
    payments and no more than 30 annual payments of equal or unequal size.
    * * * * *
        (h) Payment limitation on non-permanent easements. With respect to 
    non-permanent easements, the annual amount of easement payments to any 
    person may not exceed $50,000 except for:
        (1) Payments made pursuant to projects involving partnership 
    funding or participation; or
        (2) Payment received by a State, political subdivision, or agency 
    thereof in connection with agreements entered into under a special 
    wetland and environmental enhancement program carried out by that 
    entity that has been approved by NRCS.
    * * * * *
        10. In Sec. 1467.9, the first sentence of the introductory text of 
    paragraph (a) and paragraph (a)(2) are revised to read as follows:
    
    
    Sec. 1467.9  Cost-share payments.
    
        (a) The Department may share the cost with landowners of restoring 
    the enrolled land as provided in the WRPO.* * *
    * * * * *
        (2) On enrolled land subject to a non-permanent easement or 
    restoration cost-share agreement, the Department shall offer to pay not 
    less than 50 percent nor more than 75 percent of such costs. 
    Restoration cost-share payments offered by NRCS for the short-term, 30-
    year easements shall be 50 to 75 percent.
    * * * * *
        11. In Sec. 1467.10, the heading for the section and paragraph 
    (d)(5) are revised to read as follows:
    
    
    Sec. 1467.10  Easement participation requirements.
    
    * * * * *
        (d) * * *
        (5) Have the option to enter into an agreement with governmental or 
    private organizations to assist in carrying out any landowner 
    responsibilities on the easement area;
    * * * * *
        12. In Sec. 1467.11, paragraph (a) is revised and a new sentence is 
    added at the end of paragraph (b) to read as follows:
    
    
    Sec. 1467.11  The WRPO development.
    
        (a) The development of the WRPO shall be made through the local 
    NRCS representative, in consultation with the State Technical 
    Committee, and with consideration of site specific technical input from 
    the U.S. Fish and Wildlife Service and the Conservation District.
        (b) * * * The WRPO shall be developed to ensure that cost-effective 
    restoration and maximization of wildlife benefits and wetland functions 
    and values will result.
        13. In Sec. 1467.12, paragraph (b) is revised to read as follows:
    
    
    Sec. 1467.12  Modifications.
    
    * * * * *
        (b) WRPO. Insofar as is consistent with the easement and applicable 
    law, the State Conservationist may approve modifications to the WRPO 
    that do not affect provisions of the easement in consultation with the 
    landowner and the State Technical Committee and following consideration 
    of site specific technical input from the U.S. Fish and Wildlife 
    Service and the Conservation District. Any WRPO modification must meet 
    WRP program objectives, and must result in equal or greater wildlife 
    benefits, wetland functions and values, ecological and economic values 
    to the United States. Modifications to the WRPO which are substantial 
    and affect provisions of the easement will require agreement from the 
    landowner and require execution of an amended easement.
        14. Section 1467.13 is amended by revising paragraph (b)(1) to read 
    as follows:
    
    
    Sec. 1467.13  Transfer of land.
    
    * * * * *
        (b) * * *
        (1) For easements with multiple annual payments, any remaining 
    easement payments will be made to the original landowner unless the
    
    [[Page 42143]]
    
    Department receives an assignment of proceeds.
    * * * * *
        15. In Sec. 1467.14, remove the word ``associated'' from paragraphs 
    (a) and (c).
        16. Section 1467.17 is amended by revising paragraph (a) to read as 
    follows:
    
    
    Sec. 1467.17  Appeals.
    
        (a) A person participating in the WRP may obtain a review of any 
    administrative determination concerning eligibility for participation 
    utilizing the administrative appeal regulations provided in 7 CFR part 
    614.
    * * * * *
        17. In addition to the amendments set forth above, in 7 CFR part 
    1467 remove the words ``Consolidated Farm Service Agency'' wherever 
    they appear and add, in their place, the words ``Farm Service Agency''.
        18. In addition to the amendments set forth above, in 7 CFR part 
    1467 remove the word ``NRCS'' whenever it appears and add, in its 
    place, the word ``Department''.
    
        Signed at Washington, D.C. on August 8, 1996.
    Paul Johnson,
    Chief, Natural Resources Conservation Service, Vice President, 
    Commodity Credit Corporation.
    [FR Doc. 96-20623 Filed 8-13-96; 8:45 am]
    BILLING CODE 3410-16-M
    
    
    

Document Information

Effective Date:
8/14/1996
Published:
08/14/1996
Department:
Natural Resources Conservation Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-20623
Dates:
August 14, 1996.
Pages:
42137-42143 (7 pages)
RINs:
0578-AA16
PDF File:
96-20623.pdf
CFR: (15)
7 CFR 620.3(h)
7 CFR 1467.6
7 CFR 1467.7
7 CFR 1467.8
7 CFR 1467.9
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