[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