[Federal Register Volume 69, Number 60 (Monday, March 29, 2004)]
[Notices]
[Pages 16400-16405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6935]



  Federal Register / Vol. 69, No. 60 / Monday, March 29, 2004 / 
Notices  

[[Page 16400]]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

Natural Resources Conservation Service


Conservation Innovation Grants

AGENCY: Commodity Credit Corporation, Natural Resources Conservation 
Service, Department of Agriculture (USDA).

ACTION: Notice of request for proposals.

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SUMMARY: Section 1240H of the Food Security Act of 1985, as added by 
section 2301 of the Farm Security and Rural Investment Act of 2002 
(Pub. L. 107-171) established Conservation Innovation Grants (CIG) as 
part of the Environmental Quality Incentives Program (EQIP) (16 U.S.C. 
3839aa-8). Through CIG, the Secretary of Agriculture may pay the cost 
of competitive grants to carry out projects that stimulate innovative 
approaches to leveraging Federal investment in environmental 
enhancement and protection in conjunction with agricultural production. 
The Secretary of Agriculture delegated the authority for the 
administration of EQIP and CIG to the Chief of the Natural Resources 
Conservation Service (NRCS), who is a vice president of the Commodity 
Credit Corporation (CCC). EQIP is administered by NRCS under the 
authorities of the CCC.
    This notice announces the availability of up to $15 million of CCC 
funds for Conservation Innovation Grants in Fiscal Year 2004. The funds 
will be awarded through a nationwide competitive grants process. 
Applications are requested from eligible government or non-government 
organizations or individuals for competitive consideration of grant 
awards for single or multi-year projects. This notice sets forth the 
applicant and project eligibility requirements, application procedures, 
and grant award criteria for proposed projects.

DATES: Applications must be received in the NRCS National Office by May 
28, 2004.

ADDRESSES:  Written applications should be sent to Sheila Leonard, 
Grants and Agreements Specialist, Natural Resources Conservation 
Service, 14th and Independence Ave., SW., Room 5226-S, Washington, DC 
20250.

FOR FURTHER INFORMATION CONTACT: Carl Lucero, Natural Resources 
Conservation Service, 5601 Sunnyside Avenue, Mail Stop 5473, 
Beltsville, MD 20705. Phone: (301) 504-2222; facsimile: (301) 504-2264; 
e-mail: [email protected]; Subject: Conservation Innovation Grants RFP; or 
consult the NRCS Web site at http://www.nrcs.usda.gov/programs/farmbill/2002.

Catalog of Federal Domestic Assistance (CFDA) Number: 10.912.

SUPPLEMENTARY INFORMATION:

I. Funding Opportunity Description

A. Background

    Of the nearly 1.4 billion acres of private land in the United 
States, 931 million, or roughly 70%, are in agriculture. The activities 
on these lands have a direct effect on the soil, water, air, plant, and 
animal resources, as well as the social, cultural, and economic 
condition of U.S. communities, towns, and counties. Regional and local 
differences in farm structure, farm practices, and farm products make 
delivering innovative agricultural conservation technical assistance a 
challenge. National agricultural research and development may not 
always have the capacity to develop, test, and transfer new or 
innovative conservation technologies and approaches rapidly or 
effectively to account for regional variances in the agricultural 
industry. Consequently, there is a need to expediently develop, test, 
implement, and transfer innovative farm and ranch conservation 
technologies and approaches for adoption in the largest applicable 
market available. Conservation Innovation Grants are awarded, in part, 
to stimulate this purpose.

B. Availability of Funding

    Effective on the publication date of this notice, the CCC announces 
the availability of up to $15 million for CIG. The CCC, acting through 
NRCS, must receive applications for participation by May 28, 2004. 
Funds will be awarded through a nationwide competitive grants process. 
CIG will emphasize projects that have a goal of providing benefits over 
a large geographic area. These projects may be watershed-based, 
regional, multi-State, or nationwide in scope.
    State, tribal, and local governmental entities, non-governmental 
organizations, and individuals may apply. Selection will be based on 
the criteria established in this notice, and selected applicants may 
receive grants of up to 50 percent of the total project cost. 
Applicants must provide non-Federal funding for at least 50 percent of 
the project cost, of which up to one-half (25 percent of the total 
project cost) may be from in-kind contributions. The remainder must be 
a cash match.
    The CIG interim final rule published simultaneously with this 
Request for Proposals (RFP) describes the potential for implementing a 
State component of CIG. The intent of the State component is to provide 
flexibility to NRCS State Conservationists to target CIG funds to 
individual producers and smaller organizations that may possess 
promising innovations, but could not compete well on the larger scale 
of the national grants competition. The State component of CIG, 
however, will not be implemented in Fiscal Year (FY) 2004 because of 
continued EQIP application backlogs, the lateness of Congressional 
appropriations, and workload demands at the State level. The Chief 
retains the option of providing each State Conservationist with the 
discretion to implement a CIG State program in future fiscal years.

C. Overview of Conservation Innovation Grants

    The CCC will accept applications for single-or multi-year projects, 
not to exceed three years, submitted to NRCS from eligible entities, 
including Federally-recognized Indian Tribes, State and local 
governments, and non-governmental organizations and individuals. The 
purpose of CIG is to stimulate the development and adoption of 
innovative conservation approaches and technologies while leveraging 
Federal investment in environmental enhancement and protection, in 
conjunction with agricultural production. CIG projects are expected to 
lead to the transfer of conservation technologies, management systems, 
and innovative approaches (such as market-based systems) into NRCS 
technical manuals or guides, or to the private sector.
    Applications are solicited for the full range of natural resource 
conservation concerns detailed in this notice. Applications are 
accepted from all 50 States, the Caribbean Area (Puerto Rico and the 
Virgin Islands), and the Pacific Basin Area (Guam, American Samoa, and 
the Commonwealth of the Northern Mariana Islands).
    Complete applications will be evaluated by a technical peer review 
panel and scored based on the Criteria for Proposal Evaluation 
identified in this RFP. Scored applications will be forwarded to a 
Grant Review Board. The Grant Review Board will make recommendations 
for project approval to the Chief. Final award selections will be made 
by the Chief.
    Grant awards will be made from the NRCS National Office after the 
grantee agrees to the terms and conditions of the NRCS grant agreement.

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II. Natural Resource Conservation Concerns

    Applications should demonstrate the use of innovative technologies 
or innovative approaches, or both, to address a natural resource 
concern or concerns. It is NRCS' intention to provide flexibility to 
obtain the greatest degree of creativity and innovation possible in 
addressing natural resource concerns, consistent with the overall 
program objective.
    The five natural resource concerns for possible funding through 
Conservation Innovation Grants for Fiscal Year 2004 are:

A. Water Resources

    The objective of this natural resource concern is to implement new 
technologies and/or approaches to maintain, restore, or enhance water 
quality and/or quantity in watersheds with predominantly agricultural 
land uses while sustaining productivity. Subtopics include:
    1. Nutrient, pesticide, and pathogen transport to surface water and 
groundwater;
    2. Sediment transport to surface water;
    3. Irrigation management for water conservation;
    4. Aquifer recharge/maintenance of groundwater supplies; and,
    5. Increased water supplies/availability through alternative 
treatment or reuse strategies.

B. Soil Resources

    The objective of this conservation concern is to implement new 
technologies and/or approaches to maintain, restore, or enhance soil 
resources associated with agricultural and forest land uses while 
sustaining productivity. Subtopics include:
    1. Erosion reduction;
    2. Accumulation of harmful constituents in soils, including 
nutrients, metals, salts; and,
    3. Overall soil quality and productivity.

C. Atmospheric Resources

    The objective of this conservation concern is to implement new 
technologies and/or approaches to maintain, restore, or enhance air 
quality and atmospheric resources through agricultural and forest 
practices while sustaining productivity. Subtopics include:
    1. Agricultural emissions of particulates, odors, volatile organic 
compounds, and greenhouse gases;
    2. Carbon sequestration in soil and through other mechanisms; and,
    3. Bio-based energy opportunities.

D. Grazing Land and Forest Health

    The objective of this conservation concern is to implement new 
technologies and/or approaches to maintain, restore, or enhance grazing 
land and forest health while sustaining productivity. Subtopics 
include:
    1. Invasive species management on grazing and forest land;
    2. Effects of pests, diseases, and fragmentation on forest and 
grazing land quality/health; and,
    3. Systems or practices to minimize overgrazing and restore lands 
suffering effects of overgrazing.

E. Wildlife Habitat

    The objective of this conservation concern is to implement new 
technologies and/or approaches for environmentally sound wildlife 
habitat management while sustaining agricultural productivity. 
Subtopics include:
    1. Riparian area management and restoration;
    2. Invasive species management;
    3. Biodiversity; and,
    4. Wetland function and health.

III. Eligibility

A. Organization or Individual Eligibility

    CIG applicants must be a Federally-recognized Indian Tribe; State 
or local unit of government; non-governmental organization; or 
individual.
    1. Payment Limitation--Section 1240G of the Food Security Act of 
1985 (as amended by the Farm Security and Rural Investment Act of 
2002), 16 U.S.C. 3839aa-7, imposes a $450,000 limitation for all cost-
share or incentive payments disbursed to individuals or entities under 
an EQIP contract between 2002 and 2007. The limitation applies to CIG 
in the following manner:
    a. CIG funds are awarded through grant agreements; these grant 
agreements are not EQIP contracts. Thus, CIG awards are not limited by 
the payment limitation.
    b. Grant funds that are provided to an individual or entity to 
carry out structural, vegetative, or management practices count toward 
each individual's or entity's EQIP payment limitation. The procedures 
and policies of the EQIP (7 CFR 1466) will be followed to implement 
this payment limitation for CIG. NRCS will work with CIG grantees to 
ensure that the payment limitation is followed for all CIG projects.
    2. Payment Limitation Examples--Following are three examples of how 
the $450,000 EQIP payment limitation applies to CIG projects:
    a. A $500,000 CIG grant is awarded to a State environmental agency 
to demonstrate an innovative, market-based, water quality trading 
program. The money is used to finance the development of a market 
infrastructure, and none of the funds are used to implement structural, 
vegetative, or management practices. Producers in the trading market 
demonstration area may indirectly benefit from their eventual 
participation in the market, but there is no direct or indirect 
transfer of CIG dollars. If, on the other hand, part of the CIG award 
were used to provide funds to producers who implement a conservation 
practice on their land as part of a trading program, those payments 
would count towards each producer's $450,000 EQIP payment limitation.
    b. A $1,000,000 CIG grant is awarded to a Conservation District to 
pilot a community-based animal waste treatment technology innovation. 
EQIP-eligible producers in the area transport their animal waste to a 
central treatment location. Because producers are not directly or 
indirectly receiving CIG funds, the payment limitation does not apply. 
If, however, the technology were to be installed on five producers' 
property for demonstration purposes, the CIG funds would count toward 
each producer's $450,000 EQIP payment limitation. Similarly, if the 
producers were paid for their waste, or for transporting their waste to 
the central treatment location, out of CIG funds, the payments would be 
subject to each producer's EQIP payment limitation.
    c. An individual producer applying for a $500,000 CIG grant already 
has an EQIP contract for $100,000. The producer is awarded a grant to 
implement an innovative management practice, but the amount would be 
reduced to $350,000 maximum in order to comply with the EQIP payment 
limitation.

B. Project Eligibility

    To be eligible, projects must involve landowners who meet the EQIP 
eligibility requirements of 16 U.S.C. 3839aa-1. Refer to http://www.nrcs.usda.gov/programs/eqip/ for more information on EQIP and 
eligibility requirements. Further, all agricultural producers 
participating in a CIG project must meet the EQIP eligibility 
requirements, but are not required to have an EQIP contract. 
Applications must describe the extent of participation of EQIP eligible 
producers.
    Technologies and approaches that are eligible for funding in the 
project's geographic area through EQIP are ineligible for CIG funding. 
Applicants should reference each State's EQIP Eligible Practices List 
by contacting the

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NRCS State office, or by visiting the EQIP Web site: http://www.nrcs.usda.gov/programs/eqip/EQIP_signup/2004_EQIP/2004_EQIP.html. If an applicant believes a practice is innovative and should 
be eligible for funding through CIG, a justification describing the 
unique features of the practice should be included in the application.
    Individual projects funded through CIG in Fiscal Year 2004 may not 
receive more than $1 million from NRCS. NRCS anticipates that the 
funding range for most projects will be between $75,000 and $500,000.
    CIG will fund single- and multi-year projects, not to exceed three 
years. At the discretion of the Chief, a project may be allowed to 
extend up to a total of five years if special conditions exist. All 
requests and justifications for prolonging the duration of a project 
beyond three years must be included in the CIG application. The Chief 
will make decisions on such requests on a case-by-case basis.
    The grantee is responsible for providing the technical assistance 
required to successfully implement and complete the project. NRCS will 
provide technical oversight for each project receiving an award.

C. Beginning and Limited Resource Farmers and Ranchers, and Indian 
Tribes

    For the FY 2004 grant award process, up to 10 percent of the total 
funds available for CIG may be set-aside for applications from 
Beginning and Limited Resource Farmers and Ranchers, Indian Tribes, or 
community-based organizations comprised of or representing these 
entities. To compete for these set-aside funds, the applicant must make 
a declaration in the application as described in paragraph V.A.6. of 
this notice. Applications that are unsuccessful in the set-aside 
competition will be placed automatically in the general application 
pool for consideration. Funds not used in the set-aside pool will 
revert back into the general funding pool.
    An exception regarding matching funds is made for projects funded 
out of the set-aside. Seventy-five percent of the required matching 
funds for such projects may derive from in-kind contributions. This 
exception is intended to help Beginning and Limited Resource Farmers or 
Ranchers and Indian Tribes meet the statutory requirements for 
receiving a Conservation Innovation Grant.

IV. Innovative Conservation Projects or Activities

    For the purposes of CIG, the proposed innovative project or 
activity must encompass the development and field testing, evaluation, 
and implementation of:
     Conservation adoption incentive systems, 
including market-based systems; or,
     Promising conservation technologies, practices, 
systems, procedures, and approaches.
    To be given priority consideration, the innovative project or 
activity:
     Will have been studied sufficiently to indicate 
a good probability for success;
     Demonstrates, tests, evaluates, or verifies 
environmental (soil, water, air, plants, and animal) effectiveness, 
utility, affordability, and usability in the field;
     Adapts conservation technologies, practices, 
systems, procedures, approaches, and incentive systems to improve 
performance, and encourage adoption;
     Introduces conservation systems, approaches, and 
procedures from another geographic area or agricultural sector; and,
     Adapts conservation technology, management, or 
incentive systems to improve performance.

V. Application and Submission Information

A. Application Materials

    Applications must contain the information set forth below in order 
to receive consideration for a grant. Applicants should not assume 
prior knowledge on the part of NRCS or others as to the relative merits 
of the project described in the application. Applications must be 
submitted in the following format:
    1. Cover Sheet: Applications must use Standard Form 424 as the 
cover sheet for each project proposal. Standard Form 424 can be 
downloaded from http://www.whitehouse.gov/omb/grants/sf424.pdf, or 
obtained from a NRCS State Office (a list of NRCS State Offices is 
provided in the appendix of this announcement).
    2. Project Abstract: Each proposal must contain a summary of not 
more than one page that provides the following:
    a. Project title;
    b. Project duration (beginning and ending dates);
    c. Name, address, telephone, e-mail, and other contact information 
for the project director;
    d. Names and affiliations of project collaborators;
    e. Estimated number of EQIP eligible producers involved in the 
project;
    f. Project objectives;
    g. Summary of the work to be performed;
    h. Total project cost; and,
    i. Total Federal funds requested.
    3. Project Description: Each project must be completely and 
accurately described in no more than 10 typewritten, double-spaced 
pages, which must include the following:
    a. Project background: Describe the history of, and need for, the 
proposed innovation. Provide evidence that the proposed innovation has 
been studied sufficiently to indicate a good probability for success of 
the project;
    b. Project objectives: Be specific, using qualitative and 
quantitative measures, if possible, to describe the project's purpose 
and goals. Describe how, based on the description of innovative 
conservation projects and activities provided in section IV, the 
project is innovative;
    c. Project methods: Describe clearly the methodology of the project 
and the tools or processes that will be used to implement the project;
    d. Location and size of project or project area: Describe the 
location of the project and the relative size and scope (e.g., acres, 
farm types and demographics, etc.) of the project area. Provide a map, 
if possible;
    e. Producer participation: Estimate the number of producers 
involved in the project, and describe the extent of their involvement;
    f. Project action plan and timeline: Provide a table listing 
project actions, timeframes, and associated milestones through project 
completion. If the applicant is requesting a project extension beyond 
three years (to a total of five years), include a justification for the 
extension;
    g. Project management: Give a detailed description of how the 
project will be organized and managed. Include a list of key project 
personnel, their relevant education or experience, and their 
anticipated contributions to the project. Explain the level of 
participation required in the project by government and non-government 
entities. Identify who will participate in monitoring and evaluating 
the project;
    h. Benefits or results expected and transferability: Identify the 
results and benefits to be derived from the proposed project 
activities, and explain how the results will be measured. Be as 
specific and quantitative as possible. Identify project beneficiaries--
for example, agricultural producers by type or region or sector; rural 
communities; municipalities. Explain how these

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entities will benefit. In addition, describe how results will be 
communicated to others via outreach activities; and,
    i. Project evaluation: Describe the methodology or procedures to be 
followed to evaluate the project, determine technical feasibility, and 
quantify the results of the project for the final report. Grant 
recipients will be required to provide a quarterly report of progress 
and a final project report to NRCS. Instructions for submitting 
quarterly reports will be detailed in the grant agreement.
    4. Budget Information: Use Standard Form 424A to document budget 
needs and provide a detailed narrative in support of the budget for the 
project. Standard Form 424A can be found at http://www.whitehouse.gov/omb/grants/sf424a.pdf, or obtained from a NRCS State Office. Itemize 
the costs necessary for successful completion of the proposed project. 
Indicate the total amount (both cash and in-kind) of non-Federal 
matching support that will be provided to the proposed project. In the 
budget narrative, identify the source, the amount, and the nature (cash 
or in-kind) of the matching funds. In-kind costs of equipment or 
project personnel cannot exceed 25 percent of the total project budget 
(except in the case of projects carried out by either a Beginning or 
Limited Resource Farmer or Rancher, or Indian Tribe, or a community-
based organization comprised of or representing these entities--see 
paragraph III.C.). The remainder of the match must be provided in cash.
    CIG funds may not be used to pay any of the following costs unless 
otherwise permitted by law, or approved in writing by the Authorized 
Departmental Officer in advance of incurring such costs:
    a. Costs above the amount of funds authorized for the project;
    b. Costs incurred prior to the effective date of the grant;
    c. Costs incurred after the expiration date of the grant (including 
any approved no-cost extensions of time). However, grant funds may be 
expended after the expiration date to liquidate legitimate obligations 
incurred by the grantee on or before the expiration date;
    d. Costs which lie outside the scope of the approved project and 
any amendments thereto;
    e. Indirect costs of the grantee;
    f. Entertainment costs, regardless of their apparent relationship 
to project objectives;
    g. Compensation for injuries to persons, or damage to property 
arising out of project activities;
    h. Consulting services performed by a Federal employee during 
official duty hours when such consulting services result in the payment 
of additional compensation to the employee; and,
    i. Renovation or refurbishment of research or related spaces; the 
purchase or installation of fixed equipment in such spaces; and the 
planning, repair, rehabilitation, acquisition, or construction of 
buildings or facilities.
    This list is not exhaustive. Questions regarding the allowances of 
particular items of cost should be directed to the contact person 
above.
    5. Declaration of EQIP Eligibility: Applicants must make a 
declaration in writing that they, or parties involved in the project, 
are eligible for EQIP.
    6. Declaration of Beginning Farmer or Rancher or Limited Resource 
Farmer or Rancher, or Indian Tribe: If an applicant wishes to compete 
in the 10 percent set-aside funding pool (see paragraph III.C. that 
describes the provision of a set-aside pool of funding for Beginning 
and Limited Resource Farmers or Ranchers, and Indian Tribes) and avail 
themselves of the in-kind contribution exception, applicants must make 
a declaration in writing of their status as a Beginning Farmer or 
Rancher or Limited Resource Farmer or Rancher, or Indian Tribe, or a 
community-based organization comprised of or representing these 
entities.
    7. Environmental Evaluation: Each application must be accompanied 
by a completed environmental profile describing the anticipated 
environmental effects of the proposal. The required form is available 
at http://www.nrcs.usda.gov/programs/cig. Applicants may also request a 
form in writing or by e-mail. These profiles will be used to determine 
whether an Environmental Assessment (EA) or Environmental Impact 
Statement (EIS) is needed for any given project, prior to the awarding 
of grant funds. The applicant is responsible for the cost of an EA or 
EIS, should one be required. This cost may be counted as part of the 
grantee's in-kind contribution.
    8. Supporting Documentation: At the applicant's option, provide any 
additional information necessary or useful to describe the project. The 
applicant may present any information that would emphasize the value of 
the project, its merits, and its contribution toward innovation within 
the stated natural resource concerns identified in this notice.
    9. Certifications: All applications must include a signed Standard 
Form (SF) 424B--Assurances, Non-construction Programs. SF 424B may be 
found at: http://www.whitehouse.gov/omb/grants/sf424b.pdf, or contact a 
State NRCS office;
    Applicants, by signing and submitting an application, assure and 
certify that they are in compliance with the following from 7 Code of 
Federal Register (CFR):
    a. Part 3017, Governmentwide Debarment and Suspension 
(Nonprocurement) (http://www.access.gpo.gov/nara/cfr/waisidx_04/7cfr3017_04.html);
    b. Part 3018, New Restrictions on Lobbying (http://www.access.gpo.gov/nara/cfr/waisidx_04/7cfr3018_04.html); and,
    c. Part 3021, Governmentwide Requirements for Drug-Free Workplace 
(Financial Assistance) (http://www.access.gpo.gov/nara/cfr/waisidx_04/7cfr3021_04.html).

B. Submission of Proposal

    Applications for project grants must be complete; incomplete 
applications will not be considered. If submitting proposals for more 
than one project, submit a separate, complete application package for 
each project. Applications are to be typewritten on 8\1/2\[sec] x 
11[sec] white paper, double spaced, and on one side only. The text of 
the proposal must be typewritten in a font no smaller than 12-point, 
with one-inch margins. Applicants must submit one signed original and 
one copy of each project application. Each copy of the proposal must be 
stapled securely in the upper left hand corner. Hard copies must be 
accompanied by an electronic copy on a 3\1/2\-inch diskette or compact 
disc (CD). Electronic files must be either Microsoft Word or Acrobat 
(pdf) files. Applications submitted via facsimile or e-mail will not be 
accepted. Applications must be received at the address noted above by 5 
p.m. EST on May 28, 2004. If that day falls on a Saturday, Sunday, or 
Federal holiday, applications will be accepted until the close of the 
next business day. A proposal's postmark date is not a factor in 
whether an application is received on time. The applicant assumes the 
risk of any delays in proposal delivery. Applicants are strongly 
encouraged to submit completed applications via overnight mail or 
delivery service to ensure timely receipt by NRCS. Receipt of all 
applications will be acknowledged by e-mail. Therefore, applicants are 
strongly encouraged to provide accurate e-mail addresses. If the 
applicant's e-mail address is not indicated, NRCS will acknowledge 
receipt of the application by letter. If the applicant does not receive 
an acknowledgment within 60 days of the submission deadline, please 
contact the program manager.

[[Page 16404]]

VI. Application Review Information

A. Proposal Review and Selection Process

    Prior to technical review, each application will be screened for 
completeness. Incomplete applications, including those that do not meet 
eligibility requirements, will be eliminated from competition, and 
notification of elimination will be e-mailed or mailed to the 
applicant.
    Applications meeting the requirements of this notice will be scored 
by a Peer Review Panel against the Criteria for Proposal Evaluation 
identified below. Scored applications will be forwarded to a Grant 
Review Board, which will certify the rankings from the peer review 
panels, and ensure that the proposal evaluations are consistent with 
program objectives. The Grant Review Board will make recommendations to 
the Chief for final selection and funding decisions. Applicants who 
have been selected will be notified by mail within ten business days of 
the final selection. Applicants whose proposals have not been selected 
will be notified within 15 business days of the final selection.

B. Criteria for Proposal Evaluation

    Peer review panels will use the following criteria to evaluate 
project proposals. Each of the four criterion carries an equal weight 
of 25 percent.
    1. Purpose and goals:
    a. The purpose and goals of the project are clearly stated;
    b. The project adheres to the natural resource conservation 
concerns for FY 2004 stated in this notice; and,
    c. There is clear and significant potential for a positive and 
measurable outcome.
    2. Soundness of approach or design:
    a. The project adheres to the description of innovative projects or 
activities found in section IV of this notice;
    b. Technical design and implementation strategy is based on sound 
science;
    c. There is a good likelihood of project success;
    d. The project substantively involves EQIP eligible producers; and,
    e. The project promotes environmental enhancement and protection in 
conjunction with agricultural production.
    3. Project management:
    a. The proposal has clear milestones and timelines, designated 
staff, and demonstrates collaboration;
    b. The project staff has the technical expertise needed to do the 
work;
    c. The budget is reasonable and adequately justified; and,
    d. The project leverages non-Federal matching funds of at least 50 
percent, of which up to one-half (25 percent of total match) may be in-
kind contributions (see paragraph III.C. regarding an exception to this 
guidance for Beginning and Limited Resource Farmers or Ranchers and 
Indian Tribes).
    4. Transferability:
    a. There is great potential to transfer the approach or technology 
to others and/or to other geographical areas; and,
    b. The project will result in the development of technical or 
related materials (e.g., technical standards, technical notes, manuals, 
handbooks, software) that will help foster adoption of the innovative 
technology or approach by other producers, and in other geographic 
areas.

VII. Grant Agreement

    The CCC, through NRCS, will use a grant agreement with selected 
applicants to document participation in the CIG component of EQIP. The 
grant agreement will include:
     The final project plan listing cooperators in 
the project, and identifying the grant applicant and the project 
manager;
     The project timelines and expected project 
completion date;
     The project progress and budget reporting 
requirements;
     Award amount and budget information;
     Requests for advance of funds or reimbursement;
     The role of NRCS technical oversight in the 
project;
     Reporting requirements;
     Changes in project plans; and
     Other requirements and terms deemed necessary by 
the CCC to protect the interests of the United States.
    Neither the approval of any application nor the award of any grant 
agreement commits or obligates the United States to provide further 
support of a project or any portion thereof or implies any endorsement.

VIII. Patents and Inventions

    Allocation of rights to patents and inventions shall be in 
accordance with USDA regulation 7 CFR 3019.36. This regulation provides 
that small businesses normally may retain the principal worldwide 
patent rights to any invention developed with USDA support. In 
accordance with 7 CFR 3019.2, this provision will also apply to 
commercial organizations for the purposes of CIG. USDA receives a 
royalty-free license for Federal Government use, reserves the right to 
require the patentee to license others in certain circumstances, and 
requires that anyone exclusively licensed to sell the invention in the 
United States must normally manufacture it domestically.

    Signed in Washington, DC, on March 19, 2004.
Bruce I. Knight,
Vice President, Commodity Credit Corporation, Chief, Natural Resources 
Conservation Service.

Appendix

Natural Resources Conservation Service State Conservationists

    Alabama: Robert N. Jones, 3381 Skyway Drive, Post Office Box 
311, Auburn, AL 36830; phone: (334) 887-4500; fax: (334) 887-4552; 
[email protected].
    Alaska: Shirley Gammon, Atrium Building, Suite 100, 800 West 
Evergreen, Atrium Building, Suite 100, Palmer, AK 99645-6539; phone: 
(907) 761-7760; fax: (907) 761-7790; [email protected].
    Arizona: Michael Somerville, Suite 800, 3003 North Central 
Avenue, Phoenix, AZ 85012-2945; phone: (602) 280-8808; fax: (602) 
280-8809 or 8805; [email protected].
    Arkansas: Kalven L. Trice, Federal Building, Room 3416, 700 West 
Capitol Avenue, Little Rock, AR 72201-3228; phone: (501) 301-3100; 
fax: (501) 301-3194; [email protected].
    California: Charles W. Bell, Suite 4164, 430 G Street, Davis, 
California 95616-4164; phone: (530) 792-5600; fax: (530) 792-5790; 
[email protected].
    Colorado: James Allen Green, Room E200C, 655 Parfet Street, 
Lakewood, CO 80215-5521; phone: (720) 544-2810; fax: (720) 544-2965; 
[email protected].
    Connecticut: Margo L. Wallace, 344 Merrow Road, Tolland, 
Connecticut 06084; phone: (860) 871-4011; fax: (860) 871-4054; 
[email protected].
    Delaware: Ginger Murphy, Suite 101, 1203 College Park Drive, 
Suite 101, Dover, DE 19904-8713; phone: (302) 678-4160; fax: (302) 
678-0843; [email protected].
    Florida: T. Niles Glasgow, 2614 NW. 43rd Street, Gainesville, FL 
32606-6611, or Post Office Box 141510, Gainesville, FL 32606-6611; 
phone: (352) 338-9500; fax: (352) 338-9574; 
[email protected].
    Georgia: Leonard Jordan, Federal Building, Stop 200, 355 East 
Hancock Avenue, Athens, GA 30601-2769; phone: (706) 546-2272; fax: 
(706) 546-2120; [email protected].
    Guam: Joan B. Perry, Director, Pacific Basin Area, Suite 301, 
FHB Building, Suite 301 400 Route 8, Mongmong, G U 96910; phone: 
(671) 472-7490; fax: (671) 472-7288; [email protected].
    Hawaii: Lawrence Yamamoto, Acting, Room 4-118, 300 Ala Moana 
Boulevard, Post Office Box 50004, Honolulu, HI 96850-0002; phone: 
(808) 541-2600; fax: (808) 541-1335; [email protected].
    Idaho: Richard W. Sims, Suite C, 9173 West Barnes Drive, Boise, 
ID 83709; phone: (208) 378-5700; fax: (208) 378-5735; 
[email protected].
    Illinois: William J. Gradle, 2118 W. Park Court, Champaign, IL 
61821; phone: (217) 353-6600; fax: (217) 353-6676; 
[email protected].

[[Page 16405]]

    Indiana: Jane E. Hardisty, 6013 Lakeside Boulevard, 
Indianapolis, IN 46278-2933; phone: (317) 290-3200; fax: (317) 290-
3225; [email protected].
    Iowa: Leroy Brown, 693 Federal Building, Suite 693, 210 Walnut 
Street, Des Moines, IA 50309-2180; phone: (515) 284-6655; fax: (515) 
284-4394; [email protected].
    Kansas: Harold Klaege, 760 South Broadway, Salina, KS 67401-
4642; phone: (785) 823-4565; fax: (785) 823-4540; 
[email protected].
    Kentucky: David G. Sawyer, Suite 110, 771 Corporate Drive, 
Lexington, KY 40503-5479; phone: (859) 224-7350; fax: (859) 224-
7399; [email protected].
    Louisiana: Donald W. Gohmert, 3737 Government Street, 
Alexandria, LA 71302; phone: (318) 473-7751; fax: (318) 473-7626; 
[email protected].
    Maine: Joyce Swartzendruber, Suite 3, 967 Illinois Avenue, 
Bangor, ME 04401; phone: (207) 990-9100, ext. 3; fax: (207) 990-
9599; [email protected].
    Maryland: David P. Doss, John Hanson Business Center, Suite 301, 
339 Busch's Frontage Road, Annapolis, MD 21401-5534; phone: (410) 
757-0861; fax: (410) 757-0687; [email protected].
    Massachusetts: Cecil B. Currin, 451 West Street, Amherst, MA 
01002-2995; phone: (413) 253-4351; fax: (413) 253-4375; 
[email protected].
    Michigan: Ronald C. Williams, Suite 250, 3001 Coolidge Road, 
East Lansing, MI 48823-6350; phone: (517) 324-5270; fax: (517) 324-
5171; [email protected].
    Minnesota: William Hunt, Suite 600, 375 Jackson Street, St. 
Paul, MN 55101-1854; phone: (651) 602-7900; fax: (651) 602-7913 or 
7914; [email protected].
    Mississippi: Homer L. Wilkes, Suite 1321, Federal Building, 100 
West Capitol Street, Jackson, MS 39269-1399; phone: (601) 965-5205; 
fax: (601) 965-4940; [email protected].
    Missouri: Roger A. Hansen, Parkade Center, Suite 250, 601 
Business Loop 70, West Columbia, MO 65203-2546; phone: (573) 876-
0901; fax: (573) 876-0913; [email protected].
    Montana: David White, Federal Building, Room 443, 10 East 
Babcock Street, Bozeman, MT 59715-4704; phone: (406) 587-6811; fax: 
(406) 587-6761; [email protected].
    Nebraska: Stephen K. Chick, Federal Building, Room 152, 100 
Centennial Mall, North Lincoln, NE 68508-3866 phone: (402) 437-5300; 
fax: (402) 437-5327; [email protected].
    Nevada: Livia Marques, Building F, Suite 201, 5301 Longley Lane, 
Reno, NV 89511-1805; phone: (775) 784-5863; fax: (775) 784-5939; 
[email protected].
    New Hampshire: Richard D. Babcock, Federal Building, 2 Madbury 
Road, Durham, NH 03824-2043; phone: (603) 868-7581; fax: (603) 868-
5301; [email protected].
    New Jersey: Anthony J. Kramer, 220 Davidson Avenue, 4th Floor, 
Somerset, NJ 08873-3157; phone: (732) 537-6040; fax: (732) 537-6095; 
[email protected].
    New Mexico: Rosendo Trevino III, Suite 305, 6200 Jefferson 
Street, NE., Albuquerque, NM 87109-3734; phone: (505) 761-4400; fax: 
(505) 761-4462; [email protected].
    New York: Joseph R. DelVecchio, Suite 354, 441 South Salina 
Street, Syracuse, NY 13202-2450; phone: (315) 477-6504; fax: (315) 
477-6550; [email protected].
    North Carolina: Mary K. Combs, Suite 205, 4405 Bland Road, 
Raleigh, NC 27609-6293; phone: (919) 873-2101; fax: (919) 873-2156; 
[email protected].
    North Dakota: Serapio Flores, Jr., Room 278, 220 E. Rosser 
Avenue, Post Office Box 1458, Bismarck, ND 58502-1458; phone: (701) 
530-2000; fax: (701) 530-2110; [email protected].
    Ohio: J. Kevin Brown, Room 522, 200 North High Street, Columbus, 
OH 43215-2478; phone: (614) 255-2500; fax: (614) 255-2548; 
[email protected].
    Oklahoma: M. Darrel Dominick, USDA Agri-Center Building, Suite 
206, 100 USDA, Stillwater, Oklahoma 74074-2655; phone: (405) 742-
1204; fax: (405) 742-1126; [email protected].
    Oregon: Robert Graham, Suite 1300, 101 SW Main Street, Portland, 
OR 97204-3221; phone: (503) 414-3200; fax: (503) 414-3103; 
[email protected].
    Pennsylvania: Robin E. Heard, Suite 340, 1 Credit Union Place, 
Harrisburg, PA 17110-2993; phone: (717) 237-2202; fax: (717) 237-
2238; [email protected].
    Puerto Rico: Juan A. Martinez, Director, Caribbean Area, IBM 
Building, Suite 604, 654 Munoz Rivera Avenue, Hato Rey, PR 00918-
4123; phone: (787) 766-5206; fax: (787) 766-5987; 
[email protected].
    Rhode Island: Judith Doerner, Suite 46, 60 Quaker Lane, Warwick, 
RI 02886-0111; phone: (401) 828-1300; fax: (401) 828-0433; 
[email protected].
    South Carolina: Walter W. Douglas, Strom Thurmond Federal 
Building, Room 950, 1835 Assembly Street, Columbia, SC 29201-2489; 
phone: (803) 253-3935; fax: (803) 253-3670; 
[email protected].
    South Dakota: Janet L. Oertly, Federal Building, Room 203, 200 
Fourth Street, SW., Huron, SD 57350-2475; phone: (605) 352-1200; 
fax: (605) 352-1288; [email protected].
    Tennessee: James W. Ford, 675 U.S. Courthouse, 801 Broadway, 
Nashville, TN 37203-3878; phone: (615) 277-2531; fax: (615) 277-
2578; [email protected].
    Texas: Lawrence Butler, W.R. Poage Building, 101 South Main 
Street, Temple, TX 76501-7602; phone: (254) 742-9800; fax: (254) 
742-9819; [email protected].
    Utah: Harry Slawter, Acting, W.F. Bennett Federal Building, Room 
4402, 125 South State Street, Salt Lake City, UT 84138, Post Office 
Box 11350, Salt Lake City, UT 84147-0350, phone: (801) 524-4550, 
fax: (801) 524-4403; [email protected].
    Vermont: Francis M. Keeler, 356 Mountain View Drive, Suite 105, 
Colchester, VT 05446; phone: (802) 951-6795; fax: (802) 951-6327; 
[email protected].
    Virginia: M. Denise Doetzer, Culpeper Building, Suite 209, 1606 
Santa Rosa Road, Richmond, VA 23229-5014; phone: (804) 287-1691; 
fax: (804) 287-1737; [email protected].
    Washington: Raymond L. ``Gus'' Hughbanks, Rock Pointe Tower II, 
Suite 450, W. 316 Boone Avenue, Spokane, WA 99201-2348; phone: (509) 
323-2900; fax: (509) 323-2909; [email protected].
    West Virginia: Lillian V. Woods, Room 301, 75 High Street, 
Morgantown, WV 26505; phone: (304) 284-7540; fax: (304) 284-4839; 
[email protected].
    Wisconsin: Patricia S. Leavenworth, 8030 Excelsior Drive, Suite 
200, Madison, WI 53717; phone: (608) 662-4422; fax: (608) 662-4430; 
[email protected].
    Wyoming: Lincoln E. Burton, Federal Building, Room 3124, 100 
East B Street, Casper, WY 82601-1911; phone: (307) 261-6453; fax: 
(307) 261-6490; [email protected].

[FR Doc. 04-6935 Filed 3-26-04; 8:45 am]
BILLING CODE 3410-16-P