[Federal Register Volume 80, Number 124 (Monday, June 29, 2015)]
[Notices]
[Pages 36965-36966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15937]


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DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service

[Docket No. NRCS-2015-0008]


The Secretary of Agriculture's Determination of the Primary 
Purpose of the Southwest Florida Water Management District's 
Facilitating Agricultural Resource Management Systems Program, Mini-
FARMS Program, Flow Meter Reimbursement Program, Quality of Water 
Improvement Program, and Back- Plugging Funding Assistance Initiative

AGENCY: Natural Resources Conservation Service (NRCS), USDA.

ACTION: Notice of determination.

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SUMMARY: The Natural Resources Conservation Service is providing public 
notice that the Secretary of Agriculture has determined that cost-share 
payments made by the Southwest Florida Water Management District 
(SWFWMD) through its Facilitating Agricultural Resource Management 
Systems (FARMS) Program, Mini-FARMS Program, Flow Meter Reimbursement 
Program, Quality of Water Improvement Program (QWIP), and Back-Plugging 
Funding Assistance Initiative are primarily for the purpose of 
conserving soil and water resources or protecting and restoring the 
environment. SWFWMD is a political subdivision of the State of Florida. 
NRCS was assigned technical and administrative responsibility for 
reviewing SWFWMD's FARMS Program, Mini-FARMS Program, Flow Meter 
Reimbursement Program, QWIP, and Back-Plugging Funding Assistance 
Initiative, and for making appropriate recommendations for the 
Secretary's determination of primary purpose. The Secretary made the 
determination for the State of Florida's Agricultural Best Management 
Practices Program, which is a counterpart to SWFWMD's FARMS Program (74 
FR 49850).
    This determination is in accordance with section 126 of the 
Internal Revenue Code of 1954, as amended (26 U.S.C. 126), and permits 
recipients of cost-share payments to exclude such payments from gross 
income to the extent allowed by the Internal Revenue Service.

ADDRESSES: A ``Record of Decision'' for SWFWMD's FARMS Program, Mini-
FARMS Program, Flow Meter Reimbursement Program, QWIP, and Back-
Plugging Funding Assistance Initiative has been prepared and is 
available upon request from Mark Rose, Director, Financial Assistance 
Programs Division, Natural Resources Conservation Service, 1400 
Independence Avenue SW., Room 5237 South Building, Washington, DC 
20250.

FOR FURTHER INFORMATION CONTACT: Robert Beltran, Executive Director, 
Southwest Florida Water Management District, Phone: (352) 796-7211; or 
Mark Rose, Director, Financial Assistance Programs Division, Natural 
Resources Conservation Service. Phone: (202) 720-1844.

SUPPLEMENTARY INFORMATION: Under section 126(a)(10) of the Internal 
Revenue Code, gross income does not include the ``excludable portion'' 
of payments received under any program of a State, or a political 
subdivision of a State, under which payments are made to individuals 
primarily for the purpose of protecting or restoring the environment. 
In general, a cost-share payment for selected conservation practices is 
exempt from Federal taxation if it meets three tests: (1) It was for a 
capital expense, (2) it does not substantially increase the operator's 
annual income from the property for which it is made, and (3) the 
Secretary of Agriculture certified that the payment was made primarily 
for conserving soil and water resources, protecting or restoring the 
environment, improving forests, or providing habitat for wildlife.
    The Secretary of Agriculture evaluates a conservation program on 
the basis of criteria set forth in 7 CFR part 14, and makes a ``primary 
purpose'' determination for the payments made under the program. The 
objective of the determination made under part 14 is to provide maximum 
conservation, environmental, forestry improvement, and wildlife 
benefits to the general public from the operation of applicable 
programs. Final determinations are made on the basis of program, 
category of practices, or individual practices. Following a primary 
purpose determination by the Secretary of Agriculture, the Secretary of 
the Treasury determines if the payments made under the conservation 
program substantially increases the annual income derived from the 
property benefited by the payments.

Determination

    As provided for by section 126 of the Internal Revenue Code, the 
Secretary examined the authorizing legislation, regulations, and 
operating procedures regarding SWFWMD, a political subdivision of the 
State of Florida, and its FARMS Program, Mini-FARMS Program, Flow Meter 
Reimbursement Program, QWIP, and Back-Plugging Funding Assistance 
Initiative. In accordance with the criteria set out in 7 CFR part 14, 
the Secretary has determined the primary purpose of cost share payments 
made under SWFWMD's FARMS Program, Mini-FARMS Program, Flow Meter 
Reimbursement Program, QWIP, and Back-Plugging Funding Assistance 
Initiative is conserving soil and water resources, or protecting and 
restoring the environment. The FARMS and Mini-FARMS programs are 
implemented through Rule 40D-26 of the Florida Administrative Code. 
SWFWMD implements the FARMS and Mini-FARMS Programs to provide overall 
water resource benefits and to protect the environment. SWFWMD provides 
cost-share reimbursement for select best management practices that have 
potential water conservation, natural system restoration, and water 
quality benefits. The objectives of the programs are met through cost-
shared construction of specific engineered structures, as well as 
acquisition of specific equipment to meet water conservation and 
environmental needs. FARMS is a cost-share program to reduce 
groundwater use through water conservation best management practices 
(BMP) in agricultural operations. The Mini-FARMS program reimburse 
growers for on-farm installation of select agricultural practices that 
have potential water conservation, sediment control, and water 
improvement benefits up to a $5,000 per project cap. Projects that

[[Page 36966]]

exceed $5,000 would be considered for funding through the FARMS 
program.
    Chapter 40D-2, F.A.C. contains the SWFWMD water use permit 
regulations that implements the Flow Meter Reimbursement Program. 
Through its Flow Meter Reimbursement Program, SWFWMD provides cost-
share funding for flow meter equipment and installation in the Dover/
Plant City Water Use Caution Area. The program provides cost share for 
flow meter equipment installed on operational withdraw points, inflow 
lines, catchment facilities, tail water recovery or rainfall capture 
ponds and storage facilities that have been in existence prior to June 
16, 2011.
    Flow meters on all withdrawal points are required as a condition of 
all permits with crops that utilize frost/freeze protection water 
quantities in the Dover/Plant City Water Use Caution Area to ensure 
that withdrawals will not cause any unmitigated adverse impacts on the 
water resources and existing legal users, and that the use continues to 
be in the public interest.
    Chapter 373 of the Florida Statutes enables SWFWMD to implement 
QWIP. Section 373.206 of the Florida Statute authorizes SWFWMD to 
implement the Back Plugging Funding Assistance Initiative to identify 
and plug highly mineralized wells of poor water quality to minimize 
effects upon an aquifer or water bodies. SWFWMD's QWIP and Back-
Plugging Funding Assistance Initiative provide reimbursement for the 
plugging of groundwater wells that have poor water quality. Properly 
plugging poor quality groundwater wells enhances water conservation, 
natural system restoration, and water quality benefits. SWFWMD provides 
financial assistance to properly plug abandoned and deteriorating 
artesian wells in order to comply with Chapter 373 of the Florida 
Statutes. Plugging wells involves filling the abandoned well with 
cement or bentonite.

    Signed this 1st day of May 2015, in Washington, DC.
Jason A. Weller,
Chief, Natural Resources Conservation Service.
[FR Doc. 2015-15937 Filed 6-26-15; 8:45 am]
 BILLING CODE 3410-16-P