[Federal Register Volume 63, Number 169 (Tuesday, September 1, 1998)]
[Notices]
[Page 46407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23520]


 ========================================================================
 Notices
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
 and investigations, committee meetings, agency decisions and rulings, 
 delegations of authority, filing of petitions and applications and agency 
 statements of organization and functions are examples of documents 
 appearing in this section.
 
 ========================================================================
 

  Federal Register / Vol. 63, No. 169 / Tuesday, September 1, 1998 / 
Notices  

[[Page 46407]]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Office of the Secretary


Alaska Underground Storage Tank Financial Assistance Program, 
Tank Cleanup Grant and Loan Program: Determination of Primary Purpose 
of Program Payments for Consideration as Excludable from Income Under 
Section 126 of the Internal Revenue Code of 1986

AGENCY: Office of the Secretary, U.S. Department of Agriculture.

ACTION: Notice of Determination.

-----------------------------------------------------------------------

SUMMARY: The Secretary of Agriculture has determined that all grant 
payments made under the Tank Cleanup Grant and Loan Program within the 
Alaska Underground Storage Tank Financial Assistance Program are made 
primarily for the purposes of conserving soil and water resources and 
for protecting or restoring the environment. This determination is made 
in accordance with section 126 of the Internal Revenue Code of 1986, as 
amended (26 U.S.C. 126). This determination permits recipients of these 
payments to exclude the payments from gross income to the extent 
allowed by the Internal Revenue Service.

ADDITIONAL INFORMATION OR COMMENTS: Commissioner, Alaska Department of 
Environmental Conservation, 410 Willoughby Avenue, Juneau, Alaska 
99801, (907) 465-5050; or Director, Conservation Operations Division, 
Natural Resources Conservation Service, USDA, P.O. Box 2890, 
Washington, DC 20013, (202) 720-1845.

SUPPLEMENTARY INFORMATION: Section 126 of the Internal Revenue Code of 
1986, as amended (26 U.S.C. 126), provides that certain payments made 
to persons under State conservation programs may be excluded from the 
recipient's gross income for Federal income tax purposes, if the 
Secretary of Agriculture determines that the payments are made 
``primarily for the purpose of soil and water conservation, protecting 
or restoring the environment, improving forests, or providing a habitat 
for wildlife.'' The Secretary of Agriculture evaluates these 
conservation programs on the basis of criteria set forth in 7 CFR Part 
14 and makes a ``primary purpose'' determination for the payments made 
under each program. Before there may be an exclusion, the Secretary of 
the Treasury must determine that payments made under these conservation 
programs do not increase substantially the annual income derived from 
the property benefitted by the payments.
    The State of Alaska Department of Environmental Conservation (ADEC) 
has a Tank Cleanup Grant and Loan Program within the Underground 
Storage Tank Financial Assistance Program. This program was established 
through an amendment to a portion of Alaska Statute 46.03, effective 
September 5, 1990. The program is administered by ADEC in accordance 
with Underground Storage Tank Regulations, 18 AAC 78. Funding for the 
program comes from the Storage Tank Assistance Fund. The objectives of 
the Tank Cleanup Grant and Loan Program are to clean up existing leaks 
associated with underground petroleum storage tanks systems in order to 
conserve soil and water, and to protect or restore the environment. The 
objectives of this program are achieved by awarding grants to fund a 
portion of project costs for cleanup activities at facilities that have 
reported releases. Eligible project costs may include, but are not 
limited to:
    1. Tank removal and soil excavation;
    2. Reports, designs, and plans;
    3. Boring and monitoring well installation;
    4. Soil and water testing;
    5. Soil treatment and disposal;
    6. Water treatment and disposal;
    7. Force account charges;
    8. Tank tightness testing;
    9. Assessing a site for contamination from underground storage 
tanks; and
    10. Other costs (must be identified).
    All costs funded by the Tank Cleanup Grant and Loan Program are for 
activities described in a workplan or corrective action plan, which is 
determined by the ADEC to protect adequately human health, safety, and 
the environment.

Procedural Matters

    The authorizing legislation, regulations, and operating procedures 
for the Alaska Tank Cleanup Grant and Loan Program have been examined 
using criteria set forth in 7 CFR Part 14. The U.S. Department of 
Agriculture has concluded that the grant payments made under this 
program are made to provide financial assistance to eligible persons 
for the conservation of soil and water and to protect or restore the 
environment. A ``Record of Decision, Alaska Tank Cleanup Grant and Loan 
Program: Primary Purpose Determination for Federal Tax Purposes'' has 
been prepared and is available upon request from the Director, 
Conservation Operations Division, Natural Resources Conservation 
Service, P.O. Box 2890, Washington, DC 20013, or from the Commissioner, 
Alaska Department of Environmental Conservation, 410 Willoughby Street, 
Juneau, Alaska 99801.

Determination

    As required by section 126(b) of the Internal Revenue Code of 1986, 
as amended, I have examined the authorizing legislation, regulations, 
and operating procedures regarding the Alaska Tank Cleanup Grant and 
Loan Program. In accordance with the criteria set out in 7 CFR Part 14, 
I have determined that all grant payments for the cleanup of leaks 
associated with underground petroleum storage tank systems made under 
this program are primarily for the purposes of soil and water 
conservation and for protecting or restoring the environment. Subject 
to further determination from the Secretary of the Treasury, this 
determination permits grant payment recipients to exclude from gross 
income, for Federal income tax purposes, all or part of such payments 
made under the Alaska Tank Cleanup Grant and Loan Program.

    Signed at Washington, DC, on August 26, 1998.
Dan Glickman,
Secretary of Agriculture.
[FR Doc. 98-23520 Filed 8-31-98; 8:45 am]
BILLING CODE 3410-16-M