[Federal Register: July 24, 2002 (Volume 67, Number 142)]
[Notices]
[Page 48431-48432]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24jy02-24]
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[[Page 48431]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Environmental Quality Incentives Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Notice of availability of program funds for the Environmental
Quality Incentives Program (EQIP).
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SUMMARY: The Farm Security and Rural Investment Act of 2002, increased
the funding authorized to implement the Environmental Quality
Incentives Program (EQIP). The Commodity Credit Corporation (CCC)
administers EQIP under the general supervision of the Chief of the
Natural Resources Conservation Service (NRCS), who is one of the vice
presidents of CCC. CCC hereby announces the availability of up to an
additional $200 million in FY 02 funds to provide technical, financial,
and educational assistance under EQIP for farmers and ranchers to
promote agricultural production and environmental quality as compatible
National goals for working agricultural lands. CCC also announces the
availability of up to an additional $25 million of EQIP funds in FY 02
to provide technical and financial assistance for ground and surface
water conservation. Finally, CCC announces the availability of up to an
additional $50 million of EQIP funds to carry out water conservation
activities in the Klamath Basin in California and Oregon.
This notice applies only to funds made available and obligated in
FY 02. CCC will, at a later date, issue a proposed rule for FY 03
through FY 07 program implementation. The proposed rule will address
and seek comment on a number of issues including: the process for
establishing National priorities and criteria for optimizing
environmental benefits, the administration of incentive payments and
their potential for promoting innovation and technological improvements
and rewarding performance, the process of allocating and focusing
funding at state and local levels, and the systematic evaluation of
program performance. It will also consider other issues including
creation of an innovative grant program, integration of air quality as
a program goal, and the ground and surface water conservation program.
DATES: July 24, 2002 to September 30, 2002.
FOR FURTHER INFORMATION CONTACT: Mark W. Berkland, Director,
Conservation Operations Division, Natural Resources Conservation
Service, PO Box 2890, Washington, DC 20013; (202) 720-1845; fax: (202)
720-4265. Submit electronic requests for additional information to:
mark.berkland@usda.gov.
SUPPLEMENTARY INFORMATION: CCC hereby announces the availability of up
to an additional $200 million in FY 02 funds to provide technical,
financial, and educational assistance under EQIP, 16 U.S.C. 3839aa, for
farmers and ranchers to promote agricultural production and
environmental quality as compatible goals for working agricultural
lands. CCC announces the availability of up to an additional $25
million of EQIP funds in FY 02 to provide technical and financial
assistance for ground and surface water conservation. Finally, CCC
announces the availability of up to an additional $50 million of EQIP
funds to carry out water conservation activities in the Klamath Basin
in California and Oregon.
EQIP assistance promotes agricultural production and environmental
quality as compatible goals, and strives to optimize environmental
benefits. Through EQIP, CCC provides flexible technical, financial, and
educational assistance to producers to install and maintain
conservation systems that enhance soil, water, air quality, related
natural resources, and wildlife while sustaining production of food and
fiber. The statutory purposes for EQIP are to promote agricultural
production and environmental quality as compatible goals and to
optimize environmental benefits.
Background
EQIP was initially authorized by amendments made by the Federal
Agriculture Improvement and Reform Act of 1996, Public Law 104-127 (the
1996 Act), to the Food Security Act of 1985, Public Law 99-198 (the
1985 Act). Since FY 96, CCC has implemented EQIP through regulations
promulgated at 7 CFR part 1466. These regulations continue to govern
contracts entered into with funds made available prior to the passage
of the Farm Security and Rural Investment Act of 2002, Public Law 107-
171 (the 2002 Act). Producers who entered into EQIP contracts in FY 02
prior to May 13, 2002, may modify their FY 02 contracts to avail
themselves of the changes made by the 2002 Act.
CCC administers EQIP funds under the general supervision of the
Chief of the Natural Resources Conservation Service (NRCS), who is a
vice president of CCC. The Farm Service Agency (FSA) provides support
for program administrative processes.
Implementation of the 2002 Act in Fiscal Year 2002
Section 2301 of the 2002 Act made several changes to the
implementation of EQIP that must be applied in order to implement the
program in FY 02. CCC shall implement these statutory provisions in
contracts entered into with the funds made available by the 2002 Act
for FY 02 and described in this notice of availability. CCC will
implement these new EQIP contracts in accordance with the program
regulations found at 7 CFR part 1466 as conditioned by the changes
required by the 2002 Act. Where there are inconsistencies or conflicts
between the statute and regulations, the statutory provisions will
prevail. The 2002 Act made the following changes to the implementation
of EQIP necessary for FY 02:
1. The process of designating conservation priority areas has been
eliminated and will no longer be used.
2. The requirement to maximize environmental benefits per dollar
spent has been eliminated. In accordance with the 2002 Act, CCC will
seek to optimize environmental benefits as determined by the NRCS State
Conservationist with advice from the State Technical Committee.
3. If the environmental values of two or more applications are
comparable, CCC will not assign a higher priority to an application
simply because it would present the least cost to the program.
[[Page 48432]]
4. In evaluating applications, CCC will accord a higher priority to
applications that encourage the use of cost-effective conservation
practices and address national conservation priorities.
5. The limitation on the size of livestock operations eligible to
receive financial assistance has been removed. All livestock operations
are now eligible to receive financial and technical assistance as long
as all other eligibility criteria are met. The 2002 Act also increased
from 50 percent to 60 percent the total amount of funding to be
obligated nationally for livestock practices. Thus the regulatory
provisions found at 7 CFR 1466.4(e), 1466.7(b), and related limitations
will not apply to new contracts entered into or modified under the 2002
Act.
6. CCC is now authorized to make incentive payments to producers to
develop comprehensive nutrient management plans for confined livestock
feed operations. In the case of a confined livestock feeding operation,
to be eligible to receive cost-share payments or incentives payments
for animal waste management under EQIP, a producer must submit a plan
of operations that provides for developing and implementing a
comprehensive nutrient management plan.
7. An EQIP contract must extend at least one year after the
implementation of the last practice, but not exceed a total of 10 years
in duration. Additionally, a producer may now receive payment during
the first year of the contract period.
8. Participants are now subject to different payment limitation
requirements. An individual or entity may not receive, directly or
indirectly, on the aggregate, $450,000 for all EQIP contracts entered
into by the individual or entity during the period of FY 02 through FY
07. Therefore, the current contract and payment limitations found at 7
CFR 1466.23(b) through (e) will not apply to new contracts entered into
or modified under the 2002 Act. For a producer who inherits land under
an EQIP contract during the contract period, the $450,000 individual or
entity payment limitation will not apply to the extent that the
payments from any contract on the inherited land causes any heir who
was party to an EQIP contract on other lands prior to the inheritance
to exceed the annual limit.
With regard to EQIP contracts on Tribal land, Indian trust land, or
Bureau of Indian Affairs (BIA) allotted land, payments exceeding the
$450,000 individual or entity payment limitation may be made to the
Tribal venture if an official of the BIA or Tribal official certifies
in writing that no one person directly or indirectly will receive more
than the $450,000 payment during the period of FY 02 through FY 07. BIA
or Tribal officials will be required to submit a listing of individuals
that are receiving any of the EQIP funding and identify how much each
individual has received.
A broad purpose for EQIP continues to be assisting producers comply
voluntarily with local, State, and national environmental quality
regulatory requirements concerning soil, water, and air quality;
wildlife habitat; and surface and ground water conservation.
Application Process
CCC will consider for funding under this notice applications
received throughout FY 02. The State Conservationist, working with the
State Technical Committee, will widely distribute information on the
availability of assistance, State and local goals, and the information
needed to submit applications.
The applicants must meet the definition of ``person'' as set out in
Section 1001(5) of the 1985 Act, as amended, 7 U.S.C. 1308(5), as
determined by the Farm Service Agency (FSA). Any cooperative
association of producers that markets commodities for producers shall
not be considered to be a person eligible for payment.
Applicants must submit an application (CCC-1200 form) to CCC to be
considered for participation in EQIP. Any producer who has eligible
land may obtain and submit by mail, fax, or electronically an
application for participation in EQIP to a USDA Service Center.
Producers who are members of a joint operation must file a single
application for the joint operation. An NRCS conservationist will be
available to work with the applicant to collect the information
necessary to evaluate the application using the current State or
locally developed ranking criteria.
Additional requirements and information pertaining to the EQIP
program relating to contracts, administrative requirements, and other
matters can be found on CCC form CCC-1200, the Conservation Program
Contract, and the appendix to form CCC-1200, both of which are
available at local USDA service centers. Information is also available
on the World Wide Web (WWW) at http://www.nrcs.usda.gov/programs/
farmbill/2002.
Civil Rights
NRCS and CCC have collected civil rights data on farmers/ranchers
participating in conservation programs. Based on past participation, it
is estimated that the funding being made available with this notice
will not negatively or disproportionately affect minorities, women, or
persons with disabilities who are program beneficiaries or applicants
for program benefits in NRCS- or CCC-assisted programs.
Environmental Evaluation
The Secretary of Agriculture will determine the actual level of
funding for FY 02 from funds made available under the 1985 Act, as
amended by the 2002 Act. While the actual level of funding is unknown
at this time, based on the participation in existing soil and water
conservation programs, it is estimated that this assistance could
result in approximately 25,000 contracts. The environmental effects of
any proposed actions under the EQIP contracts will be evaluated on an
individual basis. Such individual evaluation is used to determine
whether further environmental analysis is required. An Environmental
Assessment was prepared for EQIP in 1996 and it is anticipated that the
effects from EQIP activities authorized in FY 02 will not be
significantly different than those identified in that assessment.
Accordingly, neither an Environmental Assessment nor an Environmental
Impact Statement has been prepared for this notice.
Signed in Washington, DC, on July 10, 2002.
Bruce I. Knight,
Vice President, Commodity Credit Corporation and Chief, Natural
Resources Conservation Service.
[FR Doc. 02-18660 Filed 7-23-02; 8:45 am]
BILLING CODE 3410-16-P
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