[Federal Register Volume 66, Number 51 (Thursday, March 15, 2001)]
[Proposed Rules]
[Pages 15048-15049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-6450]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 66, No. 51 / Thursday, March 15, 2001 / 
Proposed Rules  

[[Page 15048]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1410

RIN 0560-AG37


Conservation Reserve Program--Good Faith Reliance and Excessive 
Rainfall

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Commodity Credit Corporation (CCC) proposes an amendment 
to the Conservation Reserve Program (CRP) regulations. This proposed 
amendment would provide, under certain conditions, for equitable relief 
to producers who violated their contract based on a good faith reliance 
on the action or advice of certain USDA representatives, or while 
attempting to comply with their contract. It will also provide that CRP 
contracts will not be terminated for failure to plant cover when that 
failure was due to excess rainfall or flooding.

DATES: Comments must be submitted on or before May 14, 2001.

ADDRESSES: All comments concerning these proposed regulations should be 
addressed to James Michaels, Conservation and Environmental Programs 
Division, USDA/FSA/CEPD/STOP 0513, 1400 Independence Avenue, S.W., 
Washington, D.C. 20250-0513 or sent electronically to: 
[email protected].

FOR FURTHER INFORMATION CONTACT: James Michaels, (202) 720-8774.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The proposed rule is issued in conformance with Executive Order 
12866 and has been determined to not significant and, therefore, was 
not reviewed by the Office of Management and Budget (OMB).

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this rule since the Commodity Credit Corporation (CCC) 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. Therefore, neither an environmental impact assessment nor 
an Environmental Impact Statement is needed.

Executive Order 12988

    This proposed rule has been reviewed in accordance with Executive 
Order 12988. This proposed rule is not retroactive and does not pre-
empt State laws. Before any judicial action may be taken with respect 
to the provisions of the proposed rule, administrative remedies at 7 
CFR part 790 must be exhausted.

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).

Unfunded Mandates

    Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their proposed and final rules with ``Federal mandates'' 
that may result in expenditures to State, local, or tribal governments, 
in the aggregate, or the private sector, of $100 million or more in any 
1 year. This rule contains no Federal mandates under the regulatory 
provisions of Title II of the UMRA for State, local, and tribal 
governments or the private sector. Therefore, this rule is not subject 
to the requirements of sections 202 and 205 of the UMRA.

Federal Domestic Assistance Program

    The title and number of the Federal Domestic Assistance Program, as 
found in the Catalog of Federal Domestic Assistance, to which this rule 
applies, is the Conservation Program--10.069.

Paperwork Reduction Act

    A request for approval under 44 U.S.C. Chapter 33 of the 
information collection requirements contained in the regulations at 7 
CFR part 1410 has been submitted to OMB. The OMB Control Number is 
0560-0125.

Background

    The purpose of the Conservation Reserve Program (CRP) is to cost-
effectively assist owners and operators in conserving and improving 
soil, water, and wildlife resources by converting highly erodible and 
other environmentally sensitive acreage normally devoted to the 
production of agricultural commodities to a long-term vegetative cover. 
CRP participants enter into contracts for 10 to 15 years in exchange 
for annual rental payments and cost-share assistance for installing 
certain conservation practices. In determining the amount of annual 
rental payments to be paid, CCC considers, among other things, the 
amount necessary to encourage owners or operators of eligible cropland 
to participate in the CRP. Offers are submitted in such a manner as the 
Secretary prescribes. The maximum rental payments CCC will pay reflect 
site-based soil productivity, prevailing local cash equivalent rental 
rates, and maintenance costs. Offers by producers who request rental 
payments greater than the amount CCC is willing to pay for their soil 
type are automatically rejected by CCC. Except for the continuous 
signup process, remaining offers are evaluated for possible acceptance 
based on a comparison of environmental benefits indicators with the 
rental payment cost. The continuous signup process does not include an 
evaluation based on environmental benefits indicators because only 
those practices designed to obtain high environmental benefits are 
eligible to be offered during the continuous signup. Acreage determined 
eligible and suitable to be devoted to continuous signup practices by 
the Secretary is automatically accepted in the CRP provided all other 
eligibility requirements are met.

Program Changes

    Section 755 of the Agriculture, Rural Development, Food and Drug

[[Page 15049]]

Administration, and Related Agencies Appropriations Act, 2001 (the 2001 
Act) (Pub. L. 106-387) provides that the Secretary shall provide 
equitable relief to an owner or operator who is in violation of a CRP 
contract if, in attempting to comply with the terms of the contract and 
enrollment requirements, the owner or contractor took actions in good 
faith reliance on the action or advice of an authorized representative 
of the Secretary. To the extent the Secretary determines that an owner 
or operator has been injured by such good faith reliance, the Secretary 
shall allow the owner or operator to do any one or more of the 
following: (1) Retain payments received under that contract, (2) 
continue to receive payments under the contract, (3) keep all or part 
of the land covered by the contract enrolled in the program, (4) re-
enroll all or part of the land covered by the contract, or any other 
equitable relief the Secretary deems appropriate. The owner or operator 
shall be required to take such actions as are necessary to remedy any 
failure to comply with the contract. Equitable relief shall apply to 
all contracts in effect on January 1, 2000, and all subsequent 
contracts.
    Section 817 of the 2001 Act provides that the Secretary shall not 
terminate a CRP contract for failure to establish approved or 
vegetative cover if the failure to plant such cover was due to 
excessive rainfall or flooding, the land subject to the contract that 
could practicably be planted to such cover is planted to such cover, 
and the land that could not be planted to such cover is planted to such 
cover after the wet condition that prevented the planting subsides.

List of Subjects in 7 CFR Part 1410

    Administrative practices and procedures, Agriculture, Grazing 
lands, Soil conservation, Water resources.
    For reasons set out in the preamble, 7 CFR part 1410 is proposed to 
be amended as follows:

PART 1410--CONSERVATION RESERVE PROGRAM

    1. The authority citation for 7 CFR Part 1410 continues to reads as 
follows:

    Authority: 15 U.S.C. 714b and 714c; 16 U.S.C. 3801-3847.

    2. In Sec. 1410.2, the definition of ``violation'' is added to read 
as follows:


Sec. 1410.2  Definitions.

* * * * *
    Violation means an act by the participant, either intentional or 
unintentional, which would cause the participant to no longer be 
eligible for cost-share or annual contract payments.
* * * * *
    3. Section 1410.20(a)(2) is revised to read as follows:


Sec. 1410.20  Obligations of participant.

* * * * *
    (a) * * *
    (2) Implement the conservation plan, which is part of such 
contract, in accordance with the schedule of dates included in such 
conservation plan unless the Deputy Administrator determines that the 
participant cannot fully implement the conservation plan for reasons 
beyond the participant's control and CCC agrees to a modified plan. The 
Deputy Administrator may not terminate the contract for failure to 
establish an approved vegetative or water cover on the land if, as 
determined by the Deputy Administrator:
    (i) The failure to plant such cover was due to excessive rainfall 
or flooding;
    (ii) The land subject to the contract that could practicably be 
planted to such cover is planted to such cover; and
    (iii) The land on which the participant was unable to plant such 
cover is planted to such cover after the wet conditions the prevented 
the planting subsides;
* * * * *
    4. Section 1410.54 is revised to read as follows:


Sec. 1410.54  Performance based upon advice or action of the 
Department.

* * * * *
    (a) The provisions of Sec. 718.8 of this title relating to 
performance based upon the action or advice of a representative of the 
Department shall be applicable to this part.
    (b) Except as provided in paragraph (b)(3) of this section, and 
notwithstanding any other provision of this chapter, the Deputy 
Administrator may provide equitable relief to a participant that has 
entered into a contract under this chapter, and that is subsequently 
determined to be in violation of the contract, if the owner or 
operator, in attempting to comply with the terms of the contract and 
enrollment requirements, took actions in good faith reliance on the 
action or advice of an authorized USDA representative as determined by 
the Deputy Administrator, provided:
    (1) The Deputy Administrator determines that a participant has been 
injured by good faith reliance. In such cases, the participant may be 
authorized, as determined by the Deputy Administrator, to do any one or 
more of the following;
    (i) Retain payments received under the contract;
    (ii) Continue to receive payments under the contract;
    (iii) Keep all or part of the land covered by the contract enrolled 
in the applicable program under this chapter;
    (iv) Re-enroll all or part of the land covered by the contract in 
the applicable program under this chapter; or
    (v) Any other equitable relief the Deputy Administrator deems 
appropriate, and
    (2) If relief under this section is authorized by the Deputy 
Administrator, the participant must take such actions as are determined 
by the Deputy Administrator to remedy any failure to comply with the 
contract.
    (3) This section shall not apply to a pattern of conduct, as 
determined by the Deputy Administrator, in which an authorized USDA 
representative takes actions or provides advice with respect to a 
participant that the representative and the participant know, or should 
have known, are inconsistent with applicable law (including 
regulations).
    (4) Relief under this section shall be available for contracts in 
effect beginning January 1, 2000.
* * * * *

    Signed at Washington, DC, on March 12, 2001.
James R. Little,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 01-6450 Filed 3-14-01; 8:45 am]
BILLING CODE 3410-05-p