[Federal Register Volume 84, Number 82 (Monday, April 29, 2019)]
[Notices]
[Pages 17997-17999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08624]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Notice of Funds Availability (NOFA) for the Organic Certification
Cost Share Program
AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA.
ACTION: Notice.
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SUMMARY: The Farm Service Agency (FSA), on behalf of the Commodity
Credit Corporation (CCC), is announcing the availability of funding
under the Organic Certification Cost Share Program (OCCSP) for eligible
certified organic producers and handlers. FSA is also announcing the
opportunity for State Agencies to apply for grant agreements to
administer the OCCSP program in fiscal year (FY) 2019. State Agencies
that establish agreements for FY 2019 may be given the opportunity to
extend their agreements and receive additional funds to administer the
program in future years. Through this notice, FSA is providing the
requirements for producers and handlers to apply for OCCSP payments,
and for State Agencies to establish agreements to receive funds in
order to provide cost share assistance to eligible producers and
handlers.
DATES:
Applications for State Agency Agreements: FSA will accept
applications from State Agencies for funds for FY 2019 cost-share
assistance between the period of April 29, 2019, and May 29, 2019.
Producer and Handler Applications: FSA county offices will accept
applications for OCCSP payments from producers and handlers for FY 2019
until October 31, 2019. For FY 2020 through 2023, FSA will accept
applications from October 1 of the applicable FY through October 31 of
the following FY.
FOR FURTHER INFORMATION CONTACT: Tona Huggins, Program Policy Branch
Chief, (202) 720-7641, [email protected].
Background
OCCSP provides cost share assistance to producers and handlers of
agricultural products for the costs of obtaining or maintaining organic
certification under the National Organic Program (NOP). USDA's
Agricultural Marketing Service (AMS) administers NOP, which was
established under the Organic Foods Production Act of 1990 (7 U.S.C.
6501-6524) and the regulations in 7 CFR part 205. FSA has administered
OCCSP beginning with FY 2017.
The purpose of this NOFA is to announce funding availability and
general eligibility and administrative provisions for FY 2019 through
2023. FSA is not making substantive changes to OCCSP.
FSA will accept applications from State Agencies interested in
overseeing reimbursements to producers and handlers in their States. In
order for a State agency to receive a new fund allocation for FY 2019,
it must establish a new agreement with FSA. FY 2019 agreements will
include provisions that allow FSA to extend the agreements to provide
additional funds and allow State Agencies to continue to administer
OCCSP for future years. FSA has not yet determined whether an
additional application period will be announced for later years for
State Agencies that choose not to participate in FY 2019; State
Agencies that would like to administer OCCSP for future years are
encouraged to establish an agreement for FY 2019 to ensure that they
will be able to continue to participate.
All producers and handlers can apply for OCCSP through their local
FSA offices. In States where State Agencies choose to administer OCCSP,
a producer or handler may apply to either the State agency or the local
FSA office; they cannot receive payment from both. Producers and
handlers are subject to the same eligibility criteria and calculation
of cost share payments regardless of whether they apply for OCCSP
through an FSA local office or a participating State agency. FSA will
coordinate with participating State Agencies to ensure there are no
duplicate payments. If a duplicate payment is inadvertently made, then
FSA will inform the participant and require that funds be returned to
CCC.
Availability of Funds
Funding for OCCSP is provided through two authorizations: (1)
National Organic Certification Cost Share Program (National OCCSP)
funds and (2) Agricultural Management Assistance (AMA) funds.
Section 10105 of the Agricultural Improvement Act of 2018 (2018
Farm Bill, Pub. L. 115-334) amended section 10606(d) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 6523(d)),
authorizing $2 million from CCC to be used for National OCCSP funds for
each of FYs 2019 and 2020, $4 million for FY 2021, and $8 million for
each of FYs 2022 and 2023, to remain available until expended. In
addition, approximately $16.4 million in National funding remains
available from previous FYs and will be used to fund OCCSP in 2019 and
later years as needed.
National OCCSP funds will be used for cost share payments to
certified operations in the 50 United States, the District of Columbia,
the Commonwealth of Puerto Rico, Guam, American Samoa, the U.S. Virgin
Islands, and the Commonwealth of the Northern Mariana Islands.
The USDA organic regulations recognize four separate categories, or
``scopes,'' that must be individually inspected for organic
certification: Crops, livestock, wild crops, and handling (that is,
processing). A single operation may be certified under multiple scopes.
For example, a certified organic vegetable farm that also has certified
organic chickens and
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produces certified organic jams would be required to be certified for
three scopes: Crops, livestock, and handling. State organic program
fees are also eligible for cost share reimbursement and for OCCSP
purposes are considered an additional, separate scope. State organic
program fees may be required by States that have established a State
organic program according to 7 CFR 205.620 through 205.622, and are in
addition to the costs of organic certification under the four scopes of
USDA organic certification. National OCCSP funds can be used to provide
cost share for all four scopes of USDA organic certification (that is,
crops, wild crops, livestock, and handling) and the additional scope of
State organic program fees.
In addition to the National OCCSP funds, an additional $1 million
in AMA funding is authorized in 7 U.S.C. 1524 for each FY. AMA funds
may be used only for cost share payments for organic certification for
the three scopes of crops, wild crops, and livestock, and are
specifically targeted to the following 16 States:
Connecticut,
Delaware,
Hawaii,
Maryland,
Massachusetts,
Maine,
Nevada,
New Hampshire,
New Jersey,
New York,
Pennsylvania,
Rhode Island,
Utah,
Vermont,
West Virginia, and
Wyoming.
Sequestration will apply to the total amount of funding available
for OCCSP for FYs 2019 through 2023, if required by law.
Cost Share Payments
As required by law (7 U.S.C. 6523(b)), the cost share payments
cannot exceed 75 percent of eligible costs incurred, up to a maximum of
$750 per scope for each certified organic operation. FSA will calculate
75 percent of the allowable costs incurred, not to exceed a maximum of
$750 per scope.
Cost share assistance will be provided for allowable costs paid
during the same FY for which the OCCSP payment is being requested. Cost
share assistance will be provided on a first come, first served basis,
until all available funds are obligated for each FY. Applications
received after all funds are obligated will not be paid. Allowable
costs for producers and handlers include:
Application fees;
Inspection fees, including travel costs and per diem for
organic inspectors;
USDA organic certification costs, including fees necessary
to access international markets with which AMS has equivalency
agreements or arrangements;
State Organic Program fees;
User fees or sale assessments; and
Postage.
Unallowable costs include:
Inspections due to violations of USDA organic regulations
or violations of State Organic Program requirements;
Costs related to non-USDA organic certifications;
Costs related to transitional certification;
Costs related to any other labeling program;
Materials, supplies, and equipment;
Late fees;
Membership fees; and
Consultant fees.
Allowable costs for participating State Agencies include:
Allowable cost share payments to eligible producers and
handlers; and
Indirect costs based a current negotiated indirect cost
rate agreement, a de minimis indirect cost rate (as applicable), or
other rate in accordance with 2 CFR 200, Appendix VII.
Eligible Producers and Handlers
To be eligible for OCCSP payments, a producer or handler must both:
Possess USDA organic certification at the time of
application; and
Have paid fees or expenses related to its initial
certification or renewal of its certification from a certifying agent.
Operations with suspended, revoked, or withdrawn certifications at
the time of application are ineligible for cost share reimbursement.
OCCSP is open to producers and handlers in the 50 United States, the
District of Columbia, the Commonwealth of Puerto Rico, Guam, American
Samoa, the U.S. Virgin Islands, and the Commonwealth of the Northern
Mariana Islands.
How To Submit an Application
State Agencies
State Agencies must have an agreement in place to participate in
OCCSP. To provide cost share assistance for FY 2019, State Agencies
must complete an Application for Federal Assistance (Standard Form 424
and 424B) and enter into a grant agreement with FSA. State Agencies
must submit the Application for Federal Assistance (Standard Form 424
and 424B) electronically via Grants.gov, the Federal grants website, at
http://www.grants.gov. For information on how to use Grants.Gov, please
consult http://www.grants.gov/GetRegistered. State Agencies intending
to utilize subgrantees must refer to the Fiscal Year 2019 Full Notice
of Funding Opportunity Announcement on Grants.Gov for additional
application requirements. FSA will accept applications from States for
funds for FY 2019 cost-share assistance between the period of April 29,
2019, and May 29, 2019. Upon receipt of complete applications, FSA may
begin reviewing the applications and may make awards prior to the
deadline. Pending fund availability, applications received after the
deadline may be considered. The grant agreement must be signed by an
official who has authority to apply for Federal assistance.
Producers and Handlers
Certified operations may apply for OCCSP payments through FSA local
offices or through a State agency (or authorized subgrantee) if their
State has established an agreement to administer OCCSP.
To apply for OCCSP through FSA, an applicant must submit a complete
application, either in person or by mail, to any FSA county office. A
complete application includes the following documentation:
Form CCC-884--Organic Certification Cost Share Program,
available online at https://www.fsa.usda.gov/programs-and-services/occsp or at any FSA county office;
Proof of USDA organic certification;
Itemized invoices showing expenses paid to a third-party
certifying agency for certification services during the FY in which the
application is submitted; and
An AD-2047, if not previously provided.
Applicants may be required to provide additional documentation to
FSA if necessary to verify eligibility or issue payment.
FSA is currently accepting applications for eligible costs incurred
in FY 2019. For costs incurred in FYs 2020 through 2023, the
application period will begin on October 1 of the respective FY. The
application periods end on October 31 of the following FY, or when
there is no more available funding, whichever comes first. For example,
for costs incurred during FY 2019 (October 1, 2018, through September
30, 2019), the application period ends the earlier of October 31, 2019,
or when funding is no longer available.
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Participating State Agencies will establish their own application
process and deadlines for producers and handlers, as specified in their
grant agreements, and eligible operations must submit an application
package according to the instructions provided by the State agency.
State Agencies should refer to the Full Notice of Funding Opportunity
Announcement on Grants.gov for additional details on process and
deadline requirements. A list of participating State Agencies will be
available at https://www.fsa.usda.gov/programs-and-services/occsp after
their agreements with FSA to administer OCCSP are finalized.
Definitions
For this NOFA, the following definitions apply.
``State agency'' means the agency, commission, or department
responsible for agriculture under its jurisdiction in each of the 50
States, the District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Marina Islands.
``USDA organic certification'' means a determination made by a
certifying agent that a production or handling operation is in
compliance with Organic Foods Production Act of 1990 (7 U.S.C. 6501-
6522) and the regulations in 7 CFR part 205, which is documented by a
certificate of organic operation.
The following definitions from the regulations of 7 CFR 205.2 also
apply to this NOFA: ``certified operation,'' ``certifying agent,''
``crop,'' ``handler,'' ``inspection,'' ``inspector,'' ``labeling,''
``livestock,'' ``organic,'' ``organic production,'' ``processing,''
``producer,'' ``State certifying agent,'' ``State organic program,''
and ``wild crop.''
Other Provisions
Producers and handlers who file an application with FSA have the
right to an administrative review of any FSA adverse decision with
respect to the application under the appeals procedures in 7 CFR parts
780 and 11. FSA program requirements and determinations that are not in
response to, or result from, an individual disputable set of facts in
an individual participant's application for assistance are not matters
that can be appealed.
A producer or handler may file an application with an FSA county
office after the OCCSP application deadline, and in such case the
application will be considered a request to waive the deadline. The
Deputy Administrator has the discretion and authority to consider the
case and waive or modify application deadlines and other requirements
or program provisions not specified in law, in cases where the Deputy
Administrator determines it is equitable to do so and where the Deputy
Administrator finds that the lateness or failure to meet such other
requirements or program provisions do not adversely affect the
operation of OCCSP. Although applicants have a right to a decision on
whether they filed applications by the deadline or not, applicants have
no right to a decision in response to a request to waive or modify
deadlines or program provisions. The Deputy Administrator's refusal to
exercise discretion to consider the request will not be considered an
adverse decision and is, by itself, not appealable.
Any producer or handler who applies to a State agency is subject to
review rights afforded by the State agency.
Participating State Agencies that are dissatisfied with any FSA
decision relative to a State agency agreement may seek redress in
accordance with 2 CFR 200.341.
The regulations governing offsets and withholdings in 7 CFR part
1403 apply to OCCSP payments. Any participant entitled to an OCCSP
payment may assign such payment(s) in accordance with the regulations
in 7 CFR part 1404.
Awards to State Agencies will be subject to 2 CFR part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards.
Paperwork Reduction Act Requirements
The information collection request for OCCSP is approved by the
Office of Management and Budget (OMB) under the Paperwork Reduction
Act. The OMB control number for the approval is 0560-0289.
Catalog of Federal Domestic Assistance
The title and number of the Federal assistance program in the
Catalog of Federal Domestic Assistance to which this NOFA applies is
10.171, Organic Certification Cost Share Program (OCCSP).
Environmental Review
The environmental impacts of this NOFA have been considered in a
manner consistent with the provisions of the National Environmental
Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations of the Council
on Environmental Quality (40 CFR parts 1500-1508), and the FSA
regulations for compliance with NEPA (7 CFR part 799). The purpose of
OCCSP is to provide cost share assistance to producers and handlers of
agricultural products in obtaining organic certification. This NOFA
merely announces funding availability and general eligibility and
administrative provisions for FY 2019 through 2023. FSA is not making
substantive changes to OCCSP. As such, the Categorical Exclusions found
at 7 CFR part 799.31 apply, specifically 7 CFR 799.31(b)(6)(iii) (that
is, financial assistance to supplement income). No Extraordinary
Circumstances (7 CFR 799.33) exist. As such, FSA has determined that
this NOFA does not constitute a major Federal action that would
significantly affect the quality of the human environment, individually
or cumulatively. Therefore, FSA will not prepare an environmental
assessment or environmental impact statement for this administrative
action and this NOFA serves as documentation of the programmatic
environmental compliance decision.
Richard Fordyce,
Administrator, Farm Service Agency.
Robert Stephenson,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 2019-08624 Filed 4-26-19; 8:45 am]
BILLING CODE 3410-05-P