[Title 36 CFR A]
[Code of Federal Regulations (annual edition) - July 1, 2002 Edition]
[Title 36 - PARKS, FORESTS, AND PUBLIC PROPERTY]
[Chapter II - FOREST SERVICE, DEPARTMENT OF AGRICULTURE]
[Part 230 - STATE AND PRIVATE FORESTRY ASSISTANCE]
[Subpart A - Stewardship Incentive Program]
[From the U.S. Government Printing Office]


36PARKS, FORESTS, AND PUBLIC PROPERTY22002-07-012002-07-01falseStewardship Incentive ProgramASubpart APARKS, FORESTS, AND PUBLIC PROPERTYFOREST SERVICE, DEPARTMENT OF AGRICULTURESTATE AND PRIVATE FORESTRY ASSISTANCE
                Subpart A--Stewardship Incentive Program



Sec. 230.1  Purpose and scope.

    (a) The regulations in this subpart govern the operation of the 
Stewardship Incentive Program as provided in section 6 of the 
Cooperative Forestry Assistance Act, as amended by title XII of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (16 U.S.C. 2101, 
et seq.). This subpart sets forth the rules and procedures by which the 
Stewardship Incentive Program will be administered by the Forest Service 
to establish forest stewardship practices on nonindustrial private 
forest land.
    (b) The cost-share assistance provided under the Stewardship 
Incentive Program shall complement rather than replace or duplicate the 
existing Agricultural Conservation Program and Forestry Incentives 
Program. Tree planting and improvement and other State priorities for 
program activities and practices funded under the Stewardship Incentive 
Program shall be designed to provide multiple resource benefits not 
available through other cost-share programs.



Sec. 230.2  Definitions.

    As used in this subpart, the following terms shall mean:
    Act means the Cooperative Forestry Assistance Act as amended (16 
U.S.C. 2101, et seq).
    Assignee means any person, corporation, government agency, or other 
legal entity to whom a landowner transfers legal rights to receive all 
or part of federal cost-share payments.
    Chief means the Chief of the Forest Service.
    Committee means the State Forest Stewardship Coordinating Committee 
established pursuant to section 19(b)(1) of the Act.

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    Fiscal year means the fiscal year of the United States Government 
which is October 1 through September 30.
    Landowner means any private individual, group, association, 
corporation, Indian tribe or other native group, or other private legal 
entity, excluding corporations whose stocks are publicly traded or legal 
entities principally engaged in the production of wood products.
    Nonindustrial private forest land means rural lands with existing 
tree cover or which are suitable for growing trees and owned by any 
landowner as defined in this subpart.
    Practice means a stewardship activity or conservation measure 
consistent with the landowner plan to accomplish the landowner's desired 
management objectives.
    Program means the Stewardship Incentive Program.
    Regional Forester means the Forest Service official charged with the 
administration of a Region of the National Forest System as described in 
36 CFR 200.2, except that with reference to the States covered by the 
Eastern Region, such term shall mean the Area Director for States and 
Private Forestry, Northeastern Area (36 CFR 200.2);
    Resource Management Professional means any person who is recognized 
by the State Forester as having the knowledge and skills to develop 
landowner plans for managing the biological, economic, and environmental 
interrelationship of forest resources and to identify appropriate 
activities to manage, protect, or enhance forest resources including, 
but not limited to, an employee of a State forestry agency, other State 
resource agency, the Soil Conservation Service, a consulting forester, 
or wildlife biologist.
    Service Representative means a resource management professional 
designated by the State Forester to perform any or all of the following 
technical assistance functions: Review and approval of landowner plans, 
determination of need and feasibility of practices, establishment of 
site specific practice specifications, certification of completion of 
practices and performance of compliance checks pursuant to this subpart.
    State means any one of the United States, the District of Columbia, 
the Commonwealth of Puerto Rico, the Virgin Islands of the United 
States, Guam, American Samoa, the Commonwealth of the North Marianas 
Islands, the Trust Territory of the Pacific Islands and the Territories 
and possessions of the United States.
    State Forester means the employee of a State responsible for 
administration and delivery of forestry and assistance within such 
State.
    USDA means the U.S. Department of Agriculture.



Sec. 230.3  National program administration.

    (a) The Chief shall develop and oversee all Program policy and 
procedure and monitor the implementation of such policy and procedure 
over the life of the Program.
    (b) The Chief shall annually distribute among the States such cost-
share funds as may be available for the Program after addressing the 
public benefit incidental to such distribution and after giving 
appropriate consideration to the following: The total acreage of 
nonindustrial private forest land in each State, the potential 
productivity of such land, the number of owners eligible for cost 
sharing in each State, the need for reforestation in each State, the 
opportunities to enhance nontimber resources on such forest lands, and 
the anticipated demand for timber and nontimber resources in each State. 
In making distributions under this paragraph, the Chief shall consult 
with a group of not less than five State Foresters selected by a 
majority of the State foresters.
    (c) Tree planting, tree maintenance, and tree improvement are 
national priorities for cost-share practices under the Programs. In 
addition to these practices, the Chief, in consultation with the State 
Foresters, may develop other national priorities for practices to be 
cost shared under the Program and shall communicate such priorities to 
guide administration of the Program.
    (d) The Chief shall review and determine approval of State plans, 
including any revisions of such plans.

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    (e) The Chief, in consultation with the State Foresters, shall 
annually reevaluate and set the percentage of Program funding to be made 
available for landowner forest stewardship plan development 
(Sec. 230.7(a)(1) of this sub-part).
    (f) The Chief may enter into such agreements with any other USDA 
agency as are necessary to administer the Program. These agreements may 
include provisions authorizing the collection of Program participant 
information, the management of accounting ledgers, and the disbursement 
of payment to participants.
    (g) The Chief shall retain final authority to resolve all issues 
which may arise in the administration of the Program.



Sec. 230.4  State program administration.

    (a) In each State participating in the Program, the Secretary of 
Agriculture, in consultation with the State Forester, shall establish a 
State Forest Stewardship Coordinating Committee whose composition meets 
the requirements of section 19(b) of the Act. The Committee shall be 
chaired by the State Forester, or the designee thereof.
    (b) In each State participating in the Program, the Committee shall 
recommend to the State Forester for approval:
    (1) Stewardship Incentive Program needs within the State;
    (2) The minimum contiguous acreage of eligible nonindustrial private 
forest land, consistent with Sec. 230.5(c) of this subpart;
    (3) Those nationally approved practices that will be eligible for 
cost-share assistance within the State;
    (4) Those nationally approved technical practices and minimum 
specifications to be used in implementing practices;
    (5) The cost-share levels, by practice, which will encourage tree 
planting, maintenance, and improvement, and other high priority 
practices within the State that will result in multiple resource 
benefits:
    (6) The fixed rate or reimbursement or designated percentage of 
total cost for practice components;
    (7) The distribution mechanism for the allocation of cost-share 
funds within the State;
    (8) The assignment of technical responsibility, by type of Program 
practice, to the appropriate Service Representative;
    (9) Guidelines for establishing annual priorities for the approval 
of landowner applications;
    (10) The mechanisms for ensuring landowner compliance with practice 
specification;
    (11) The mechanisms to monitor State participation in the Program; 
and
    (12) Any adjustments in Program guideline, administration, or 
funding levels to better achieve Program objectives within the State.
    (c) The State Forester, after giving full consideration to the 
recommendations of the Committee, shall approve Program administration 
procedures as set forth in paragraph (b) of this section. In the event a 
Committee fails to make timely recommendations with regard to any matter 
listed in paragraph (b) of this section, the State Forester is 
authorized to approve administrative procedures for implementing the 
Program without further delay.
    (d) To participate in the Program, the State Forester, in 
consultation with the Committee, shall develop a State plan that shall 
provide baseline data on the forest resources of the State; outline 
threats to the forest resources of the State; describe economic and 
environmental opportunities that are linked with the forest resources of 
the State; address management problems, opportunities, and objectives 
associated with intermingled Federal, State, and private land ownership 
patterns within the State; and make planning recommendations for 
Federal, State, and local implementation of the Act.
    (1) The State Plan shall cover a 5-year period, identify management 
goals for nonindustrial private forest lands and set priorities for 
achieving the goals and objectives identified for the State for each 
year.
    (2) State Foresters may use existing resource inventories, landowner 
surveys, and other relevant planning data to develop the State plan.

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    (3) State plans shall become effective upon approval by the Chief.
    (e) The State Forester shall administer the Program within the State 
and monitor the Programs to ensure that it is achieving desired results 
and shall ensure landowner compliance with practice installation 
specifications and maintenance of the practice.
    (f) Not more than 10 percent of a State allocation of funds may be 
used to finance State Program development and administration. The State 
Forester must obtain approval from the Regional Forester of the amount 
of the State's Program allocation to be used for State Program 
development and administration.
    (g) The percent of the State's Program allocation of funds that may 
be used to cost-share the development of Landowner Forest Stewardship 
plans will be determined pursuant to Sec. 230.3(e) of this subpart. The 
State Forester must obtain approval from the Regional Forester of the 
amount of the State's Program allocation to be used for Landowner Forest 
Stewardship Plan development (Sec. 230.7(a)(1) of this subpart).
    (h) The State Forester shall document and make available for public 
inspection all determinations made in consultation with the Committee.



Sec. 230.5  Eligibility requirements.

    (a) All nonindustrial private forest landowners as defined in 
Sec. 230.2 of this subpart, including those who produce forest products 
on a part-time or intermittent basis, who meet the requirements of this 
section, are eligible to apply for and receive assistance under the 
Program without regard to race, color, religion, national origin, age, 
sex, marital status, or handicap.
    (b) To be eligible to receive cost-share funds under the Program, a 
landowner shall own not more than a total of 1,000 acres of 
nonindustrial private forest land, except where the State Forester, with 
the concurrence of the Regional Forester, determines that significant 
public benefits would accrue from approval of a landowner owning not 
more than 5,000 acres. In making a determination of significant public 
benefits, the State Forester and the Regional Forester shall consider, 
at a minimum, whether the installation of practices by landowners who 
own more than 1,000 acres but less than 5,000 acres are necessary to 
achieve cost-effective resource management objectives without unduly 
affecting Program participation of other eligible landowners.
    (c) To be eligible to receive cost-share funds under the Program, a 
landowner shall not own less than the minimum contiguous acreage as 
established by the State Forester. However, in no case shall the minimum 
contiguous acreage requirement be higher than 25 acres.
    (d) To be eligible to receive cost-share funds under the Program, a 
landowner must agree to manage the following lands under a Landowner 
Forest Stewardship Plan prepared pursuant to Sec. 230.6 of this subpart:
    (1) All of their nonindustrial private forest land with existing 
tree cover within a contiguous tract; and
    (2) Other nonindustrial private forest land within the same 
contiguous tract which is identified by the landowner and approved by 
the Service Representative as suitable for growing trees and scheduled 
for conversion to a Program practice.
    (e) To be eligible to receive cost-share funds under the Program, a 
landowner must agree to maintain Program practices for 10 years, unless 
otherwise specified by the Chief.



Sec. 230.6  Landowner forest stewardship plan.

    (a) Prior to receiving approval to implement any Program practice 
identified in Sec. 230.7(a)(2)-(9) of this subpart, eligible landowners 
shall have an approved landowner forest stewardship plan. The landowner 
forest stewardship plan shall be prepared by a Resource Management 
Professional and approved by a Service Representative and shall identify 
and describe actions to be taken by the landowner to protect and manage 
soil, water, aesthetic qualities, recreation, timber, and fish and 
wildlife resources in a manner which is compatible with the objectives 
of the landowner.
    (b) A landowner forest stewardship plan shall be effective for not 
less than 10 years, but shall be reviewed at least

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every five years and may be revised as needed, subject to approval of 
the Service Representative.
    (c) To the extent deemed applicable by the Service Representative, 
where existing landowner management plans such as conservation plans, 
Tree Farm management plans, or similar plans meet or can be amended to 
meet Landowner Forest Stewardship Plan requirements, such plans shall 
satisfy the requirements of this section.
    (d) If a landowner sells or otherwise conveys land covered by a 
landowner forest stewardship plan, such plan shall remain in effect if 
agreed to by the new owner. New landowner objectives shall be 
incorporated through plan revision as needed. Where the new landowner 
does not agree to adopt the Landowner Forest Stewardship plan, the new 
landowner cannot obtain approval of new Program practices without 
preparation and approval of a new Landowner Forest Stewardship Plan.



Sec. 230.7  Program practices.

    (a) Practices for which cost sharing is available under the 
Stewardship Incentive Program and the reporting codes assigned to each 
are as follows:
    (1) Landowner Forest Stewardship Plan Development (SIP1), which 
identifies landowner objectives and multiple resource management 
decisions.
    (2) Reforestation and Afforestation (SIP2), which includes 
establishment or reestablishment of diverse stands of forest trees 
through natural regeneration, planting, or direct seeding for 
conservation purposes and sustainable timber production.
    (3) Forest and Agroforest Improvement (SIP3), which includes the 
improvement of forest and agroforest stand productivity, vigor, and 
health, and the value and quality of wood products.
    (4) Windbreak and Hedgerow Establishment, Maintenance and Renovation 
(SIP4), which includes the establishment, maintenance, and renovation of 
windbreaks and hedgerows to conserve energy, protect farmsteads, 
livestock, and crops, and reduce soil erosion.
    (5) Soil and Water Protection and Improvement (SIP5), which includes 
the maintenance or improvement of water quality and soil productivity on 
forest land.
    (6) Riparian and Wetland Protection and Improvement (SIP6), which 
includes the protection, restoration, and improvement of wetlands and 
riparian areas to maintain water quality and enhance habitat.
    (7) Fisheries Habitat Enhancement (SIP7), which includes the 
protection and enhancement of habitat for native resident and anadromous 
fisheries.
    (8) Wildlife Habitat Enhancement (SIP8), which includes the 
establishment and enhancement of permanent habitat for game and nongame 
wildlife species.
    (9) Forest Recreation Enhancement (SIP9), which includes the 
enhancement of outdoor recreation activities and aesthetics.
    (b) In the application and use of pesticides, including biological, 
chemical, and behavioral substances, practice performance shall meet all 
label requirements, State and Federal regulations, and local ordinances.
    (c) Anyone who carries out practices under this Program shall be 
responsible for obtaining the authorities, rights, easements, or other 
approvals necessary to the performance and maintenance of the practices 
in keeping with applicable laws and regulations.



Sec. 230.8  Application and approval.

    (a) A landowner wishing to participate in the Program shall contact 
the local office of the State Forester who shall provide information 
necessary to make application.
    (b) The State Forester, or such official as the State Forester may 
designate, shall make basic eligibility determinations, including 
whether the applicant meets nonindustrial private forest land ownership 
criteria and minimum and maximum acreage criteria in accordance with 
Sec. 230.5 of this subpart, and approve Program practices. The landowner 
shall be notified of such determination in writing by mail.
    (c) The State Forester, or such official as the State Forester may 
designate, shall approve Program practices based on the following:

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    (1) For approval of practices described in Sec. 230.7(a)(2)-(a)(9) 
of this subpart, verification that the landowner has an approved 
landowner forest stewardship plan.
    (2) A determination whether the practice is needed and feasible.
    (3) A determination that the practice is consistent with funding 
priorities established by the State Forester.
    (d) Applications shall not be approved unless cost-share funds are 
available. Approval of an application shall constitute an agreement by 
the United States and the landowner to cost-share approved practices 
upon acceptable performance.
    (e) Upon approval of Program practices, a Service Representative 
shall prepare a project outline that identifies the needed technical 
practices, specifications, and approximate time frame(s) for the 
implementation of the practice(s) to achieve the objectives of the 
landowner forest stewardship plan. Upon agreement by the landowner and 
the Service Representative to the requirements set forth in the project 
outline, the outline shall be attached to and become part of the 
landowner forest stewardship plan and shall be effective for the 
duration of the practice. Requirements of a project outline shall 
constitute the basis for determining acceptable performance upon 
practice completion.
    (f) Upon approval of Program practices, the landowner shall be 
notified of approved practices in writing. Such notice shall state that 
the landowner can begin implementing approved practices.



Sec. 230.9  Payment to landowners.

    (a) To be eligible for cost-share payments, a landowner must 
complete each practice within eighteen months of approval. However, if 
practice(s) are not completed in eighteen months due to conditions 
beyond the landowner's control, a six month extension period may be 
granted by the Service Representative.
    (b) Upon certification by the Service Representative that a practice 
has been completed in accordance with specifications, the federal cost-
share payment will be calculated and disbursed to the landowner. Service 
Representatives shall have the right of access to the landowner's 
property to inspect practices for the duration of the practice 
maintenance period.
    (c) The amount of payment under the Program to any one landowner 
shall not exceed $10,000 in any given fiscal year. For each landowner 
participating in the Program, the payment limitation shall apply as 
follows:
    (1) Where husband and wife hold joint ownership, they shall be 
considered as a single landowner.
    (2) Where any number of individuals hold common ownership, they 
shall be considered as a single landowner.
    (3) Where the individual is a partner, corporate shareholder, or has 
an ownership interest in another private legal entity, the amount of 
payment to the individual shall be equivalent to the percentage of 
ownership the individual holds in such partnership, corporation or other 
private legal entity times the payment made to such partnership, 
corporation or other legal entity.
    (d) Levels of federal cost-share funds to be paid to landowners 
shall be set by the State Forester, but shall not exceed 75 percent of 
the actual costs incurred by a participating landowner. Non-Federal 
program funds and other donated assistance may be used to supplement 
cost-share assistance under the Program; however, the total of all funds 
and assistance shall not exceed 100 percent of the actual cost of 
practice implementation.
    (e) A practice may consist of one or more component activities. A 
landowner may receive partial payment for completed components on the 
condition that the landowner agrees to complete the remaining 
component(s) of the practice within the time period specified by the 
Service Representative, not to exceed eighteen months following approval 
to implement the practice, unless an extension is justified as provided 
in paragraph (a) of this section.
    (f) Where performance actually rendered does not meet the minimum 
specifications of a practice due to factors beyond the landowner's 
control, the State Forester or designee may approve cost-share payment 
under one of the following conditions:

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    (1) The landowner repeats applications of components previously 
implemented or establishes additional eligible components under such 
terms and conditions as the Service Representative may require, in which 
case, the State Forester shall approve additional cost-sharing for 
additional or repeated components to the extent such measures are needed 
to meet the objectives of the landowner forest stewardship plan; or
    (2) The landowner establishes to the satisfaction of the Service 
Representative that:
    (i) A reasonable effort was made to meet the minimum requirements; 
and
    (ii) The practice, as performed, adequately meets the objectives of 
the landowner forest stewardship plan.
    (g) Where the landowner has received cost-share assistance for site 
preparation and the establishment of trees has been unsuccessful due to 
factors beyond the landowner's control, the Service Representative shall 
require that trees be re-established and shall approve cost-share 
assistance for such activity.
    (h) If a landowner sells, conveys, or otherwise loses control of 
lands upon which there is a continuing obligation to maintain a practice 
and the new landowner does not agree to assume the responsibility for 
maintaining the practice, the landowner who was originally obligated to 
maintain the practice shall be liable to reimburse the United States for 
all cost-share payments on such practices.
    (i) In case of death or incompetency of any landowner, the State 
Forester shall approve cost-share payments to the successor if the 
successor agrees to maintain the practices for the duration of the 
required maintenance period.
    (j) Any landowner who may be entitled to any cost-share payment 
under this subpart may assign the right thereto, in whole or in part, 
under the following terms:
    (1) Payments may be assigned only for performance of a Program 
practice.
    (2) A payment which is made to a landowner may not be assigned to 
pay or secure any preexisting debt.
    (3) Neither the United States, the Forest Service, the Secretary of 
Agriculture, nor any disbursing agent shall be liable in any suit if 
payment is made to an assignor rather than to an assignee, and nothing 
in this section shall be construed to authorize any suit against the 
United States, the Forest Service, the Secretary or any disbursing agent 
if payment is not made to the assignee, or if payment is made to only 
one of several assignees.
    (k) No cost-share payment or portion thereof due and owing any 
landowner shall be subject to any claim arising under State law by any 
creditor, except agencies of the United States Government.



Sec. 230.10  Prohibitions.

    (a) No cost-share funds shall be paid for the following:
    (1) Costs incurred before an application for cost-share assistance 
is approved;
    (2) The implementation of any practice(s) already required by law, 
regulation, or other authority; and
    (3) Repairs or normal upkeep or maintenance of any practice.
    (b) No cost-share assistance shall be paid for repeating practices 
on the same site by the same landowner which have been implemented under 
the Forestry Incentives Program (16 U.S.C. 2104) or any other Federal, 
State, or local government programs, or private sector programs, except 
where such practices are repeated due to a failure of a prior practice 
without fault of the landowner.



Sec. 230.11  Recapture of payment.

    (a) If any landowner, successor, or assignee uses any scheme or 
device to unjustly benefit from this program, the cost-share funds shall 
be withheld or a refund of all or part of any Program payments otherwise 
due or paid that person shall be secured. A scheme or device includes, 
but is not limited to, coercion, fraud or misrepresentation, false 
claims, or any business dissolution, reorganization, revival, or other 
legal mechanism designed for or having the effect of evading the 
requirements of this subpart.
    (b) If any landowner or successor takes any action or fails to take 
action which results in the destruction or impairment of a prescribed 
practice for the duration of the practice, cost-share

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funds shall be withheld or a recapture of all or part of any Program 
payments otherwise due or paid shall be secured based on the extent and 
effect of destruction and impairment.
    (c) Nothing in this section requiring the withholding or refunding 
of cost-share funds shall preclude any penalty or liability otherwise 
imposed by law.



Sec. 230.12  Reconsideration.

    Any landowner, successor, or assignee who is dissatisfied with any 
determination made under the Program may request reconsideration by the 
State Forester and, if the matter is still not resolved, by the Regional 
Forester. All requests for reconsideration shall be in writing and shall 
contain factual information explaining the basis for requesting 
reconsideration. All decisions upon reconsideration shall be issued in 
writing.



Sec. 230.13  Information requirements.

    The requirements governing the preparation of a State forest 
stewardship plan in Sec. 230.4(d) of this subpart, the landowner forest 
stewardship plan in Sec. 230.6 of this subpart, and the application 
requirements of Sec. 230.8 constitute information requirements as 
defined by the Paperwork Reduction Act of 1980 (44 U.S.C. 3507) and have 
been approved for use pursuant to 5 CFR part 1320 and assigned OMB 
Control Number 0596-0120.