[Federal Register Volume 67, Number 142 (Wednesday, July 24, 2002)]
[Notices]
[Pages 48431-48432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-18660]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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  Federal Register/Vol. 67, No. 142/Wednesday, July 24, 2002/Notices  

[[Page 48431]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Environmental Quality Incentives Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice of availability of program funds for the Environmental 
Quality Incentives Program (EQIP).

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SUMMARY: The Farm Security and Rural Investment Act of 2002, increased 
the funding authorized to implement the Environmental Quality 
Incentives Program (EQIP). The Commodity Credit Corporation (CCC) 
administers EQIP under the general supervision of the Chief of the 
Natural Resources Conservation Service (NRCS), who is one of the vice 
presidents of CCC. CCC hereby announces the availability of up to an 
additional $200 million in FY 02 funds to provide technical, financial, 
and educational assistance under EQIP for farmers and ranchers to 
promote agricultural production and environmental quality as compatible 
National goals for working agricultural lands. CCC also announces the 
availability of up to an additional $25 million of EQIP funds in FY 02 
to provide technical and financial assistance for ground and surface 
water conservation. Finally, CCC announces the availability of up to an 
additional $50 million of EQIP funds to carry out water conservation 
activities in the Klamath Basin in California and Oregon.
    This notice applies only to funds made available and obligated in 
FY 02. CCC will, at a later date, issue a proposed rule for FY 03 
through FY 07 program implementation. The proposed rule will address 
and seek comment on a number of issues including: the process for 
establishing National priorities and criteria for optimizing 
environmental benefits, the administration of incentive payments and 
their potential for promoting innovation and technological improvements 
and rewarding performance, the process of allocating and focusing 
funding at state and local levels, and the systematic evaluation of 
program performance. It will also consider other issues including 
creation of an innovative grant program, integration of air quality as 
a program goal, and the ground and surface water conservation program.

DATES: July 24, 2002 to September 30, 2002.

FOR FURTHER INFORMATION CONTACT: Mark W. Berkland, Director, 
Conservation Operations Division, Natural Resources Conservation 
Service, PO Box 2890, Washington, DC 20013; (202) 720-1845; fax: (202) 
720-4265. Submit electronic requests for additional information to: 
[email protected].

SUPPLEMENTARY INFORMATION: CCC hereby announces the availability of up 
to an additional $200 million in FY 02 funds to provide technical, 
financial, and educational assistance under EQIP, 16 U.S.C. 3839aa, for 
farmers and ranchers to promote agricultural production and 
environmental quality as compatible goals for working agricultural 
lands. CCC announces the availability of up to an additional $25 
million of EQIP funds in FY 02 to provide technical and financial 
assistance for ground and surface water conservation. Finally, CCC 
announces the availability of up to an additional $50 million of EQIP 
funds to carry out water conservation activities in the Klamath Basin 
in California and Oregon.
    EQIP assistance promotes agricultural production and environmental 
quality as compatible goals, and strives to optimize environmental 
benefits. Through EQIP, CCC provides flexible technical, financial, and 
educational assistance to producers to install and maintain 
conservation systems that enhance soil, water, air quality, related 
natural resources, and wildlife while sustaining production of food and 
fiber. The statutory purposes for EQIP are to promote agricultural 
production and environmental quality as compatible goals and to 
optimize environmental benefits.

Background

    EQIP was initially authorized by amendments made by the Federal 
Agriculture Improvement and Reform Act of 1996, Public Law 104-127 (the 
1996 Act), to the Food Security Act of 1985, Public Law 99-198 (the 
1985 Act). Since FY 96, CCC has implemented EQIP through regulations 
promulgated at 7 CFR part 1466. These regulations continue to govern 
contracts entered into with funds made available prior to the passage 
of the Farm Security and Rural Investment Act of 2002, Public Law 107-
171 (the 2002 Act). Producers who entered into EQIP contracts in FY 02 
prior to May 13, 2002, may modify their FY 02 contracts to avail 
themselves of the changes made by the 2002 Act.
    CCC administers EQIP funds under the general supervision of the 
Chief of the Natural Resources Conservation Service (NRCS), who is a 
vice president of CCC. The Farm Service Agency (FSA) provides support 
for program administrative processes.

Implementation of the 2002 Act in Fiscal Year 2002

    Section 2301 of the 2002 Act made several changes to the 
implementation of EQIP that must be applied in order to implement the 
program in FY 02. CCC shall implement these statutory provisions in 
contracts entered into with the funds made available by the 2002 Act 
for FY 02 and described in this notice of availability. CCC will 
implement these new EQIP contracts in accordance with the program 
regulations found at 7 CFR part 1466 as conditioned by the changes 
required by the 2002 Act. Where there are inconsistencies or conflicts 
between the statute and regulations, the statutory provisions will 
prevail. The 2002 Act made the following changes to the implementation 
of EQIP necessary for FY 02:
    1. The process of designating conservation priority areas has been 
eliminated and will no longer be used.
    2. The requirement to maximize environmental benefits per dollar 
spent has been eliminated. In accordance with the 2002 Act, CCC will 
seek to optimize environmental benefits as determined by the NRCS State 
Conservationist with advice from the State Technical Committee.
    3. If the environmental values of two or more applications are 
comparable, CCC will not assign a higher priority to an application 
simply because it would present the least cost to the program.

[[Page 48432]]

    4. In evaluating applications, CCC will accord a higher priority to 
applications that encourage the use of cost-effective conservation 
practices and address national conservation priorities.
    5. The limitation on the size of livestock operations eligible to 
receive financial assistance has been removed. All livestock operations 
are now eligible to receive financial and technical assistance as long 
as all other eligibility criteria are met. The 2002 Act also increased 
from 50 percent to 60 percent the total amount of funding to be 
obligated nationally for livestock practices. Thus the regulatory 
provisions found at 7 CFR 1466.4(e), 1466.7(b), and related limitations 
will not apply to new contracts entered into or modified under the 2002 
Act.
    6. CCC is now authorized to make incentive payments to producers to 
develop comprehensive nutrient management plans for confined livestock 
feed operations. In the case of a confined livestock feeding operation, 
to be eligible to receive cost-share payments or incentives payments 
for animal waste management under EQIP, a producer must submit a plan 
of operations that provides for developing and implementing a 
comprehensive nutrient management plan.
    7. An EQIP contract must extend at least one year after the 
implementation of the last practice, but not exceed a total of 10 years 
in duration. Additionally, a producer may now receive payment during 
the first year of the contract period.
    8. Participants are now subject to different payment limitation 
requirements. An individual or entity may not receive, directly or 
indirectly, on the aggregate, $450,000 for all EQIP contracts entered 
into by the individual or entity during the period of FY 02 through FY 
07. Therefore, the current contract and payment limitations found at 7 
CFR 1466.23(b) through (e) will not apply to new contracts entered into 
or modified under the 2002 Act. For a producer who inherits land under 
an EQIP contract during the contract period, the $450,000 individual or 
entity payment limitation will not apply to the extent that the 
payments from any contract on the inherited land causes any heir who 
was party to an EQIP contract on other lands prior to the inheritance 
to exceed the annual limit.
    With regard to EQIP contracts on Tribal land, Indian trust land, or 
Bureau of Indian Affairs (BIA) allotted land, payments exceeding the 
$450,000 individual or entity payment limitation may be made to the 
Tribal venture if an official of the BIA or Tribal official certifies 
in writing that no one person directly or indirectly will receive more 
than the $450,000 payment during the period of FY 02 through FY 07. BIA 
or Tribal officials will be required to submit a listing of individuals 
that are receiving any of the EQIP funding and identify how much each 
individual has received.
    A broad purpose for EQIP continues to be assisting producers comply 
voluntarily with local, State, and national environmental quality 
regulatory requirements concerning soil, water, and air quality; 
wildlife habitat; and surface and ground water conservation.

Application Process

    CCC will consider for funding under this notice applications 
received throughout FY 02. The State Conservationist, working with the 
State Technical Committee, will widely distribute information on the 
availability of assistance, State and local goals, and the information 
needed to submit applications.
    The applicants must meet the definition of ``person'' as set out in 
Section 1001(5) of the 1985 Act, as amended, 7 U.S.C. 1308(5), as 
determined by the Farm Service Agency (FSA). Any cooperative 
association of producers that markets commodities for producers shall 
not be considered to be a person eligible for payment.
    Applicants must submit an application (CCC-1200 form) to CCC to be 
considered for participation in EQIP. Any producer who has eligible 
land may obtain and submit by mail, fax, or electronically an 
application for participation in EQIP to a USDA Service Center. 
Producers who are members of a joint operation must file a single 
application for the joint operation. An NRCS conservationist will be 
available to work with the applicant to collect the information 
necessary to evaluate the application using the current State or 
locally developed ranking criteria.
    Additional requirements and information pertaining to the EQIP 
program relating to contracts, administrative requirements, and other 
matters can be found on CCC form CCC-1200, the Conservation Program 
Contract, and the appendix to form CCC-1200, both of which are 
available at local USDA service centers. Information is also available 
on the World Wide Web (WWW) at http://www.nrcs.usda.gov/programs/farmbill/2002.

Civil Rights

    NRCS and CCC have collected civil rights data on farmers/ranchers 
participating in conservation programs. Based on past participation, it 
is estimated that the funding being made available with this notice 
will not negatively or disproportionately affect minorities, women, or 
persons with disabilities who are program beneficiaries or applicants 
for program benefits in NRCS- or CCC-assisted programs.

Environmental Evaluation

    The Secretary of Agriculture will determine the actual level of 
funding for FY 02 from funds made available under the 1985 Act, as 
amended by the 2002 Act. While the actual level of funding is unknown 
at this time, based on the participation in existing soil and water 
conservation programs, it is estimated that this assistance could 
result in approximately 25,000 contracts. The environmental effects of 
any proposed actions under the EQIP contracts will be evaluated on an 
individual basis. Such individual evaluation is used to determine 
whether further environmental analysis is required. An Environmental 
Assessment was prepared for EQIP in 1996 and it is anticipated that the 
effects from EQIP activities authorized in FY 02 will not be 
significantly different than those identified in that assessment. 
Accordingly, neither an Environmental Assessment nor an Environmental 
Impact Statement has been prepared for this notice.

    Signed in Washington, DC, on July 10, 2002.
Bruce I. Knight,
Vice President, Commodity Credit Corporation and Chief, Natural 
Resources Conservation Service.
[FR Doc. 02-18660 Filed 7-23-02; 8:45 am]
BILLING CODE 3410-16-P