[Federal Register Volume 84, Number 246 (Monday, December 23, 2019)]
[Notices]
[Pages 70494-70495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27581]


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DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service

[Docket ID: NRCS-2019-0021]


The Secretary of Agriculture's Determination of the Primary 
Purpose of the Nevada Petroleum Claims Fund for the Cleanup of 
Petroleum Discharge From Storage

AGENCY: Natural Resources Conservation Service (NRCS), U.S. Department 
of Agriculture (USDA).

ACTION: Notice of Determination.

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SUMMARY: NRCS is providing public notice that the Secretary of 
Agriculture has determined that cost share payments made by the Nevada 
Division of Environmental Protection (NDEP) are primarily for the 
purpose of conserving soil and water resources or protecting and 
restoring the environment. NRCS was assigned technical and 
administrative responsibility for reviewing NDEP's Petroleum Claims 
Fund program and for making appropriate recommendations for the 
Secretary's determination of primary purpose. The Secretary made the 
determination for the State of Nevada's Petroleum Claims Fund program 
administered by the Nevada Division of Environmental Protection.

FOR FURTHER INFORMATION CONTACT: Greg Lovato, Division Administrator, 
Nevada Petroleum Claims Fund, 901 S Stewart Street, Carson City, Nevada 
89701 or Maggie Rhodes, Director, Financial Assistance Programs 
Division, Department of Agriculture, Natural Resources Conservation 
Service, 1400 Independence Avenue SW, Room 5237 South Building, 
Washington, DC 20250.

SUPPLEMENTARY INFORMATION: Under Section 126(a) (8) 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 based on 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.
    From this Federal action, approving tax deferral will not result in 
impacts to the environment, therefore, no further National 
Environmental Policy Act (NEPA) documentation will be prepared.
    Determination: As provided for by Section 126 of the Internal 
Revenue Code, the Secretary examined the authorizing legislation, 
regulations, and operating procedures regarding the NDEP's Nevada 
Petroleum Claims Fund program. 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 Nevada Petroleum Claims Fund program is 
conserving soil and water resources or protecting and restoring the 
environment.
    The State of Nevada Petroleum Fund was initially implemented in 
1989 by State legislation to assist owners and operators of regulated 
underground storage tanks in meeting the Federal requirements for 
financial responsibility, pursuant to the Code of Federal Regulations 
(CFR) 40 CFR 280.90 through 280.99. The Fund also allows voluntary 
enrollment of eligible non-regulated petroleum storage tanks and covers 
the cost of cleanup associated with releases from residential heating 
oil tanks.
    A primary objective when the Nevada legislature authorized the Fund 
is the protection of the State's environment, specifically the supplies 
of water. The Nevada legislature made these findings part of the 
statutory authorization in NRS 445C.290 and charged the Nevada Board to 
Review Claims (Board) with assisting in the prompt cleanup of any 
discharge of petroleum from a storage tank located in Nevada.
    A ``Record of Decision'' for the Nevada Petroleum Fund Board to

[[Page 70495]]

review claims regarding reimbursement for cleanup of petroleum storage 
tank discharges has been prepared and is available upon request from 
Maggie Rhodes, Director, Financial Assistance Programs Division, NRCS, 
1400 Independence Avenue SW, Room 5237 South Building, Washington, DC 
20250.
    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.

Matthew Lohr,
Chief, Natural Resources Conservation Service.
[FR Doc. 2019-27581 Filed 12-20-19; 8:45 am]
 BILLING CODE 3410-16-P