[Federal Register Volume 85, Number 30 (Thursday, February 13, 2020)]
[Rules and Regulations]
[Pages 8131-8145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01812]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 
 ========================================================================
 

  Federal Register / Vol. 85, No. 30 / Thursday, February 13, 2020 / 
Rules and Regulations  

[[Page 8131]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1464

[Docket ID NRCS-2019-0012]
RIN 0578-AA70


Regional Conservation Partnership Program

AGENCY: Natural Resources Conservation Service (NRCS) and the Commodity 
Credit Corporation (CCC), United States Department of Agriculture 
(USDA).

ACTION: Interim rule.

-----------------------------------------------------------------------

SUMMARY: This interim rule with request for public comment adds a new 
part to our regulations to implement the Regioinal Conservation 
Partnership Program (RCPP). RCPP enhances conservation and promotes 
coordination between NRCS and its partners to help producers and 
landowners increase the restoration and sustainable use of soil, water, 
and wildlife on a regional or watershed scale. NRCS, an agency of the 
USDA, administers RCPP, which is funded through CCC. RCCP is 
reauthorized by the Agriculture Improvement Act of 2018 (the 2018 Farm 
Bill), which streamlined RCPP administration, including elimination of 
``covered program'' financial transfers and replacement of covered 
program contracts with RCPP contracts and programmatic partnership 
agreements. Section 2504 of the 2018 Farm Bill authorizes NRCS to 
implement RCPP through an Availability of Program Funding (APF) 
announcement in FY 2019 without issuing a regulation. This interim 
administration authority expired September 30, 2019, and section 
1271E(e) of the RCPP statute, as amended, requires NRCS to administer 
RCPP through a regulation going forward. Therefore, NRCS is publishing 
this interim rule to incorporate the 2018 Farm Bill changes to RCPP 
program administration.

DATES: 
    Effective date: February 13, 2020.
    Comment date: Submit comments on or before April 13, 2020.
    Comment date for Environmental Review: Submit comments on the draft 
Environmental Analysis (EA) and Finding of No Significant Impact 
(FONSI) on or before March 16, 2020.

ADDRESSES: We invite you to submit comments on this notice. In your 
comments, include the date, volume, and page number of this issue of 
the Federal Register, and the title of notice. You may submit comments 
by the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and search for Docket ID NRCS-2019-0012. Follow the 
online instructions for submitting comments.
    All written comments received will be publicly available on http://www.regulations.gov.
    A copy of the draft Environmental Assessment (EA) and Finding of No 
Significant Impact (FONSI) may be obtained from the following website: 
https://www.nrcs.usda.gov/wps/portal/nrcs/detailfull/national/programs/farmbill/?cid=stelprdb1263599. A hard copy may also be requested in one 
of the following ways:
     Via mail: [email protected] with ``Request for EA'' in 
the subject line; or
     A written request: Karen Fullen, Environmental Compliance 
Specialist, Natural Resources Conservation Service, 9173 W Barnes Dr., 
Suite C, Boise, ID 83709.

FOR FURTHER INFORMATION CONTACT: Michael Whitt; (202) 690-2267; email: 
[email protected]. Persons with disabilities who require 
alternative means for communication should contact the USDA Target 
Center at (202) 720-2600 (voice).

SUPPLEMENTARY INFORMATION:

Background

    Section 2401 of the Agricultural Act of 2014 (the 2014 Farm Bill) 
originally established the Regional Conservation Partnership Program 
(RCPP) through adding a new subtitle I to Title XII of the Food 
Security Act of 1985. The 2014 Farm Bill authorized $100 million in 
each fiscal year (FY) from FY 2014 through 2018 and made resources 
available through reserving seven percent of the funds or acres made 
available each year from covered programs, including the Agricultural 
Conservation Easement Program (ACEP), the Conservation Stewardship 
Program (CSP), the Environmental Quality Incentives Program (EQIP), and 
the Healthy Forests Reserve Program (HFRP).
    RCPP promotes coordination between NRCS and its partners to deliver 
conservation assistance to producers and landowners. Under the 2014 
Farm Bill, NRCS administered RCPP through APF notices posted to 
grants.gov. NRCS published APF notices in May 2014 for FY 2014-15 
implementation, and then additional APFs for FY 2016, FY 2017, and FY 
2018 utilizing funds that were made available under the 2014 Farm Bill. 
Eligible partners submitted proposals to one of three funding pools--
the national pool, the State pool, and the Critical Conservation Area 
(CCA) pool. The Secretary of Agriculture designated eight CCAs in 2014.
    Subtitle G of Title II of the Agriculture Improvement Act of 2018 
(2018 Farm Bill; Pub. L. 115-334) made the following changes to RCPP 
program requirements:
     Increases RCPP funding to $300 million for each fiscal 
year (FY 2019-23) in mandatory funding and removes the seven percent 
covered program funding authority.
     Authorizes RCPP program contracts rather than 
implementation of RCPP funding through covered program contracts, 
making RCPP a stand-alone program.
     Eliminates the national funding pool, thereby simplifying 
the application process for partners. NRCS will allocate 50 percent of 
the annual funding to State and multistate pools and allocate the 
remaining 50 percent of annual funding to CCAs.
     Adds and simplifies the definitions of ``eligible land'' 
and ``eligible activities.'' NRCS incorporates eligible activities 
available into its participant awards.
     Expands the scope of the program by including the 
authorities of the Conservation Reserve Program (16 U.S.C. 3831-3835) 
and the Watershed Protection and Flood Prevention Program (Pub. L. 
566), excluding the

[[Page 8132]]

Watershed Rehabilitation Program, in the definition of ``covered 
programs.''
     Adds authority to enter into alternative funding 
arrangements or grant agreements with eligible partners depending on 
the specific requirements of the project. However, the 2018 Farm Bill 
limits NRCS to entering no more than 15 alternative funding 
arrangements each fiscal year.
     Expands the purpose of the program to include protection 
of drinking water and ground water on eligible land.
     Updates the definition of ``eligible partners'' to 
identify conservation districts and acequias specifically.
     Allows partnership agreements to be longer than 5 years in 
select situations, as determined by NRCS, to further purposes of the 
program.
     Allows partnership agreement renewals for a period of time 
not to exceed 5 years that in select situations may be funded through 
an expedited noncompetitive process.
     Allows a partnership agreement, or a renewal partnership 
agreement, to be extended one time for up to 12 months.
     Specifies that a project should: Achieve one or more 
conservation benefits; specify the eligible activities to achieve those 
conservation benefits; and state the timeline for carrying out the 
project, including interim milestones and related conservation 
outcomes.
     Requires guidance for partners on how to quantify and 
report project outcomes, including achievement of conservation 
benefits.
     Updates reporting requirements and emphasizes the 
importance of reporting progress in achieving conservation benefits on 
a regular basis.
     Requires reporting publicly at the time of selection the 
amount of technical assistance (TA) that will be set aside for project 
implementation.
     Limits TA costs to those costs specific and necessary to 
carry out the objectives of the program and to develop and implement 
strategies to encourage third-party technical service providers (TSPs) 
to provide TA to eligible partners pursuant to a partnership agreement.
     Clarifies how eligible partners may make contributions, 
including through direct funding, in-kind support, or a combination of 
direct funding and in-kind support.
     Clarifies that, upon agency approval, amounts expended by 
an eligible partner for staff salaries or development of the 
partnership agreement between the announcement of the project award and 
the signing of the partnership agreement may be counted toward the 
partner contribution.
     Requires the Secretary to: Establish a timeline for 
carrying out the duties under the program; identify a State program 
coordinator who will assist partners; establish guidance to assist 
partners with assessment requirements; provide partners (other than 
grant agreement partners) a semiannual report that contains the status 
of each pending and obligated contract under the project and an annual 
report describing how the Secretary used that fiscal year's TA; and 
ensure that any eligible activity effectively achieves the conservation 
benefits identified in an approved partnership agreement.
     Requires NRCS to implement RCPP through a simplified 
application process.
     Prohibits use of adjusted gross income criteria to 
determine eligibility for eligible partners.
     Gives high priority to partners that build new 
partnerships with local, State, and private entities or implement the 
project consistent with existing watershed, habitat, or other area 
restoration plans.
     Outlines the partner responsibilities under a grant 
agreement including contributing significant resources to achieving 
project goals, carrying out eligible activities on eligible land in 
agreement with producers to achieve conservation benefits on a regional 
or watershed scale, and providing an annual report to NRCS that 
describes the status of the project.
     Includes outreach provisions for historically underserved 
producers and for eligible partners and producers in designated CCAs.
     Requires identification of one or more priority resource 
concerns that apply to each CCA.
     Requires selection of applications for partnership 
agreements under CCAs that address one or more priority resource 
concerns for which the CCA is designated.

Overview of Program Administration

    RCPP provides NRCS a valuable tool for coordinating the delivery of 
conservation assistance with that provided by partners. RCPP promotes 
coordination of NRCS conservation activities with partners that offer 
value-added contributions to expand the collective ability to address 
on-farm, watershed, and regional natural resource concerns. Through 
RCPP, NRCS seeks to co-invest with partners to implement projects that 
demonstrate innovative solutions to conservation challenges and provide 
measurable improvements and outcomes tied to the resource concerns they 
seek to address. The 2018 Farm Bill made substantive changes to the 
program, and RCPP is now a stand-alone program with authorized 
conservation activities as those offered by other NRCS programs, but 
with modifications and flexibilities unique to RCPP. These 
modifications and flexibilities enhance NRCS' ability to tailor its 
conservation assistance to the objectives of RCPP partners to a greater 
extent than is available through NRCS' other conservation programs.
    NRCS provides RCPP assistance through partnership agreements, 
supplemental agreements, and program contracts. This interim rule 
provides information about RCPP and guidelines related to submitting 
proposals and applications for participation in RCPP. Project approval 
and development of partnership agreements are based on competitive 
evaluation, selection, and post-selection negotiations, on the basis of 
criteria established in this interim rule and any future notice of 
funding opportunity.
    In particular, eligible partners must submit complete proposals 
through a competitive process. The following partners are eligible to 
submit a proposal and enter into a partnership agreement with NRCS: 
Agricultural or silvicultural producer associations or other group of 
producers; States or units of local government; Indian Tribes; farmer 
cooperatives; institutions of higher education; conservation districts; 
water districts; irrigation districts; acequias; rural water districts 
or associations or other organizations with specific water delivery 
authority to producers on agricultural land; municipal water or 
wastewater treatment entities; organizations or other nongovernmental 
entities with an established history of working cooperatively with 
producers on agricultural land, as determined by the Chief of NRCS; and 
an organization described in section 1265A(3)(B) of the ACEP statute. 
The Agency will make available project summaries including partner 
contributions via the RCPP website at https://www.nrcs.usda.gov/wps/portal/nrcs/main/national/programs/financial/rcpp/.
    NRCS reviews and evaluates the proposals based on the criteria set 
forth in this interim rule and as detailed in the annual APF. 
Consistent with statutory direction of the 2018 Farm Bill, priority 
consideration will be given to proposals that provide for outreach to 
and engagement of beginning farmers or ranchers, socially disadvantaged 
farmers or ranchers, limited resource farmers or ranchers, veteran 
farmers and ranchers, and Indian Tribes within the area covered by the 
project. This interim rule

[[Page 8133]]

also includes other statutory priorities, including projects that--
     Assist producers in meeting or avoiding the need for a 
natural resource regulatory requirement;
     Have a high percentage of producers in the area to be 
covered by the agreement;
     Significantly leverage non-Federal financial and technical 
resources and coordinate with other local, State, or national efforts;
     Build new partnerships with local, State, and private 
entities to include a diversity of stakeholders in the project;
     Deliver a high percentage of applied conservation to 
achieve conservation benefits or address the priority resource concern 
within a CCA;
     Implement projects consistent with existing watershed, 
habitat, or other area restoration plans;
     Provide innovation in conservation methods and delivery, 
including outcome-based performance measures and methods; or
     Meet other factors that are important for achieving the 
purposes of the program, as determined by NRCS.
    Proposals may not be adjusted after they have been submitted to 
NRCS for review and ranking. After a proposal is selected, NRCS enters 
into a negotiation with the lead partner to develop a partnership 
agreement that serves as an agreement governing the overall approach of 
the project. The identity of the lead partner, the overall funding 
amount, the general activity types (e.g., land management, rental, 
entity-held easements) to be offered and the resource concerns 
addressed by the project are not subject to negotiation. Details on 
activities specific to a project (e.g., delineated practices under the 
land management activity type) and details on the approach for 
reporting on project outcomes are examples of items that are subject to 
negotiation.
    There is no funding obligated through the partnership agreement 
unless the partnership agreement is an alternative funding arrangement 
or grant (collectively referred to as ``alternative funding 
arrangement''). Consistent with the RCPP statute, any project 
management and producer outreach activities between the announcement of 
awards and the execution of partnership agreements can be counted as 
partner contributions, if such activities are included in the 
application. Based on available funding and agency priorities, NRCS may 
offer reduced funding from the amount requested in the application.
    Under the partnership agreement, NRCS may enter into additional 
agreements under the project framework, including RCPP program 
contracts with producers and supplemental agreements with the lead 
partners or other eligible partners. Supplemental agreements include 
agreements for the delivery of technical assistance, easement 
agreements with eligible entities, and project-style agreements. These 
contracts and agreements are entered into separately in support of the 
approved project. The terms set by NRCS are not subject to negotiation. 
NRCS will manage these agreements according to NRCS-developed terms and 
conditions necessary to ensure program and financial integrity.
    Following execution of the partnership agreement, producers within 
the approved project areas may apply directly to NRCS to enter into an 
RCPP program contract that encompasses eligible land or apply 
indirectly through the project partner. Producer participation is 
subject to competitive ranking, availability of funds, and NRCS 
reporting requirements. Eligible land includes any agricultural or 
nonindustrial private forest land or associated land on which NRCS 
determines an eligible activity would help achieve conservation 
benefits defined for each approved RCPP project's programmatic 
agreement.
    Producers interested in applying for RCPP participation in an 
approved RCPP project must establish and maintain records about their 
operation at their local USDA service center. The NRCS designated 
conservationist or a partner representative may assist a producer to 
determine which implementation actions are appropriate based on the 
eligible activities the applicant seeks to install or perform to 
compete in an RCPP project funding opportunity, as detailed in the APF.
    Under a program contract, NRCS may make a practice implementation 
payment, a stewardship payment, a rental payment for targeted 
conservation benefits, or an easement payment to secure the long-term 
protection of identified conservation benefits for perpetuity or for 30 
years, when so limited under State law. Therefore, as described more 
fully below, while the term ``program contract'' is used for all such 
agreements between NRCS and an eligible producer, a program contract 
may be structured to be analogous to an EQIP contract or an agreement 
to purchase a conservation easement under ACEP. Additionally, where 
appropriate, NRCS may include several different types of payments in 
the same instrument or enter into multiple program contracts for 
distinct activities implemented by a producer. NRCS will not make 
duplicative payments for the same conservation benefits on the same 
land.
    Producers seeking to participate in an RCPP project must meet all 
RCPP eligibility requirements. These requirements vary depending on the 
producer's objectives and the eligible activities selected for 
implementation under the program contract. A participant may elect to 
use a certified TSP for technical assistance associated with 
conservation planning or practice design and implementation. 
Information about services that may be available from a certified TSP 
can be found at: http://techreg.usda.gov/.

Types of Program Contracts With Producers

    There are five general types of financial assistance activities 
that encompass the range of eligible activities available in RCPP 
analogous to those authorized by the covered programs:
    (1) Land management contracts that include land improvement, 
management, or restoration activities, including land treatment 
activities as authorized by Public Law 83-566;
    (2) Land rental contracts;
    (3) Conservation easements held by the United States (``US-held 
easements'');
    (4) Conservation easements held by an eligible entity (``entity-
held easements''); and
    (5) Public works contracts.
1. Land Management Contracts
    Land management contracts are based on an EQIP/CSP-like contracting 
model between NRCS and an eligible producer, including private 
landowners, committed to addressing RCPP project resource concerns on 
eligible lands. The conservation activities included under this 
category also include restoration and land management practices 
authorized under ACEP-Wetland Reserve Easement (WRE), HFRP, and Public 
Law 83-566 (land treatment). Land management contracts will utilize 
proven aspects of NRCS planning, implementation, and contracting 
methodology, and are expected to be based principally on NRCS 
conservation practice standards, existing CSP enhancements, stewardship 
activities, and existing payment schedules. However, producer and land 
eligibility restrictions tied to specific EQIP and CSP regulatory 
requirements, such as CSP ``whole operation'' requirements or EQIP 
irrigation history requirements do not apply to these land management 
contracts. Payment rates for land management contracts are expected to 
mimic similar rates under the covered

[[Page 8134]]

programs. However, payment rates are among the requirements which NRCS 
may negotiate at the project (vs participant contract) level. NRCS may 
approve payment schedules that provide increased payment rates when the 
agency determines that offsetting features of the project (for example, 
partner contributions) support requested payment rates and scenarios.
2. Land Rental Activities
    NRCS will offer land rental activities through a rental contract 
that will be based on a combination of the CRP rental contract and a 
land management contract as described above. The contract document for 
land rental activities between NRCS and an eligible producer will 
address RCPP project resource concerns on eligible lands. Application, 
ranking, and contracting will emulate applicable aspects of NRCS 
ranking processes, to include use of ranking tools to assess expected 
conservation benefits on a project by project basis, and standard NRCS 
contracting processes like those employed in similar NRCS conservation 
activity based programs to help ensure conservation delivery and 
financial accountability. However, unlike the traditional CRP program 
administered by USDA's Farm Service Agency, RCPP land rental authority 
is not generally expected to be used for landscape-scale soil erosion 
protection. Rather, NRCS expects that land rental contracts will focus 
on short-term, targeted rental needs in the context of a larger RCPP 
project. Examples include paying 1-3 years of forgone income to 
incentivize adoption of an innovative cropping system or to transition 
to an organic production system. RCPP rental contracts will be based on 
proven aspects of NRCS planning, implementation, and contracting 
methodology, which may include an estimate of forgone income.
3. U.S.-Held Conservation Easements
    RCPP conservation easement enrollment opportunities will be offered 
to eligible landowners to execute conservation easements on a diversity 
of land uses. U.S.-held easements are in general permanent easements 
with exceptions for Tribes (that is, 30-year contracts) or States where 
State law prohibits permanent easements (duration set at the longest 
duration allowable under State law). Under current NRCS covered 
programs, U.S.-held easements are only available for wetlands (ACEP-
WRE) and forestland (HFRP). For RCPP, U.S.-held easements will be 
available for any agriculturally linked land use, such as cropland, 
grasslands, natural wetlands, or riparian areas buffering agricultural 
lands. RCPP easements are driven by ties to RCPP project resource 
concerns and conservation benefits, not land use or other covered 
program eligibility factors.
    Application, ranking, easement acquisition processes, and 
contracting will emulate applicable aspects of ACEP and HFRP. RCPP 
easements will use new template deeds based on the level of restriction 
warranted by the easement in the specific context of a RCPP project, 
which will be a foundational component of landowner application, 
evaluation, and ranking. The more restrictive the terms of the 
easement, the higher the percentage of the easement value that may be 
provided under RCPP.
4. Entity-Held RCPP Conservation Easements
    ACEP-Agricultural Land Easement (ALE) authorizes entity-held 
agricultural land easements. For RCPP, entity-held easements are 
eligible for any land use and driven by conservation benefits and 
resource concerns identified in the RCPP project. Therefore, in 
addition to entity-held easements to protect working agricultural lands 
(as allowed under ALE), entity-held easements under RCPP may be 
enrolled on other eligible land, including forest land, wetlands, and 
riparian areas. Entity-held easements under RCPP require collaboration 
between NRCS, a qualified entity, and an eligible landowner. Given the 
statutory structure, NRCS will utilize a supplemental agreement with a 
qualified entity to establish the terms and conditions under which NRCS 
will provide financial assistance for the qualified eligible entity to 
purchase a conservation easement from an eligible producer. 
Application, ranking, easement acquisition processes, matching, and 
contracting will emulate applicable aspects of ACEP-ALE.
5. Public Works Supplemental Agreements
    Through the public works component of RCPP, eligible partners may 
receive financial assistance awards to support implementation of 
structural works of improvement to address watershed-scale issues on 
eligible land, similar to projects currently carried out under Public 
Law 83-566. Unlike other RCPP contract types, RCPP project proposals 
must detail proposed public works activities (that is, detailed plan of 
work) to provide project reviewers information needed to assess project 
viability. Financial assistance for works of improvement will be 
awarded through a supplemental agreement. Under the supplemental 
agreement, unlike for other types of RCPP activities, partners lead the 
planning, design, and installation of works of improvement. However, 
NRCS retains watershed plan and design approval authority consistent 
with Federal infrastructure projects and informed by NRCS watershed and 
engineering directives and related Public Law 83-566 policy.

Summary of Regulatory Framework

    The RCPP regulation has four subparts:
     Subpart A provides the general framework for the program 
and provides the purposes, scope, definitions, fund allocations, and 
basic program requirements.
     Subpart B provides the framework for the proposal, 
selection, and administration of RCPP partnership agreements, including 
supplemental agreements to facilitate the provision of program 
assistance to producers. This subpart also includes general provisions 
related to third party contracts.
     Subpart C provides the framework under which NRCS provides 
program assistance to producers to implement eligible activities.
     Subpart D provides the standard programmatic information 
about appeals, assignments, and related matters.

Effective Date, Notice and Comment, and Paperwork Reduction Act

    In general, the Administrative Procedure Act (APA) (5 U.S.C. 553) 
requires that a notice of proposed rulemaking be published in the 
Federal Register and interested persons be given an opportunity to 
participate in the rulemaking through submission of written data, 
views, or arguments with or without opportunity for oral presentation, 
except when the rule involves a matter relating to public property, 
loans, grants, benefits, or contracts. This rule involved matters 
relating to benefits and is therefore exempt from APA requirements. 
Further, the regulations to implement the programs of Chapter 58 of 
Title 16 of the U.S. Code, as specified in 16 U.S.C. 3846, and the 
administration of those programs are--
     To be made as an interim rule effective on publication, 
with an opportunity for notice and comment;
     Exempt from the Paperwork Reduction Act (44 U.S.C. chapter 
35); and
     To use the authority under 5 U.S.C. 808 related to 
Congressional review and avoid any potential delay in the effective 
date.

[[Page 8135]]

    For major rules, the Congressional Review Act requires a delay in 
the effect date of 60-days after publication to allow for Congressional 
Review. This rule is a major under the Congressional Review Act, as 
defined by 5 U.S.C. 804(2). The authority in 5 U.S.C. 808 provides that 
when an agency finds for good cause that notice and public procedure 
are impracticable, unnecessary, or contrary to the public interest, 
that the rule may take effect at such time as the agency determines. 
Due to the nature of the rule, the mandatory requirements of the 2018 
Farm Bill changes to RCPP, and the need to implement the RCPP 
regulations expeditiously to provide assistance to producers, NRCS and 
CCC find that notice and public procedure are contrary to the public 
interest. Therefore, even though this rule is a major rule for purposes 
of the Congressional Review Act of 1996, NRCS and CCC are not required 
to delay the effective date for 60 days from the date of publication to 
allow for Congressional review. Therefore, this rule is effective on 
the date of publication in the Federal Register.
    NRCS invites interested persons to participate in this rulemaking 
by submitting written comments or views about changes made by this 
interim rule. The most helpful comments reference a specific portion of 
the regulation, explain the reason for any recommended changes, and 
include supporting data and references to the relevant section of 
either the 2018 Farm Bill or the 1985 Farm Bill. All comments received 
on or before the closing date for comments will be considered. NRCS 
will review and respond to the public comments in the RCPP final rule.
    NRCS is especially interested in obtaining public comment on the 
following topics:
     CCAs and their associated priority resource concerns;
     How best to develop and report project outcomes;
     Ideas on how to implement RCPP easements;
     How to incorporate land rental authorities into program 
implementation;
     Alternative Funding Arrangements; and
     Project renewal criteria.

Executive Orders 12866, 13563, 13771, and 13777

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasized the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility. Executive Order 13777, 
``Enforcing the Regulatory Reform Agenda,'' established a Federal 
policy to alleviate unnecessary regulatory burdens on the American 
people.
    The Office of Management and Budget (OMB) designated this rule as 
economically significant under Executive Order 12866, and therefore, 
OMB has reviewed this rule. The costs and benefits of this proposed 
rule are summarized below. The full cost benefit analysis is available 
on https://www.regulations.gov/.
    Executive Order 13771, ``Reducing Regulation and Controlling 
Regulatory Costs,'' requires that, to manage the private costs required 
to comply with Federal regulations for every new significant or 
economically significant regulation issued, the new costs must be 
offset by the elimination of at least two prior regulations. This rule 
involves transfer payments and does not rise to the level required to 
comply with Executive Order 13771.

Clarity of the Regulation

    Executive Order 12866, as supplemented by Executive Order 13563, 
requires each agency to write all rules in plain language. In addition 
to your substantive comments on this rule, we invite your comments on 
how to make the rule easier to understand. For example:
     Are the requirements in the rule clearly stated? Are the 
scope and intent of the rule clear?
     Does the rule contain technical language or jargon that is 
not clear?
     Is the material logically organized?
     Would changing the grouping or ordering of sections or 
adding headings make the rule easier to understand?
     Could we improve clarity by adding tables, lists, or 
diagrams?
     Would more, but shorter, sections be better? Are there 
specific sections that are too long or confusing?
     What else could we do to make the rule easier to 
understand?

Summary of Economic Impacts

    RCPP is a voluntary collaborative program that provides financial 
and technical assistance to partner organizations to help agricultural 
producers plan and implement conservation activities to address natural 
resource concerns on private or Tribal agricultural, nonindustrial 
private forest and certain associated lands. RCPP was first authorized 
by Congress in the Agricultural Act of 2014 (the 2014 Farm Bill). To 
date, 375 projects have been selected across the United States and 
Puerto Rico leveraging $1 billion in NRCS technical and financial 
assistance with approximately $1.3 billion in partner contributions. 
The 2014 Farm Bill provided $100 million annually in RCPP mandatory 
funding. Furthermore, under the 2014 Farm Bill, conservation activities 
were undertaken through partnership agreements (between NRCS and a lead 
partner) and contracts or agreements with eligible landowners, 
entities, and individuals under one or more covered programs (EQIP, 
CSP, ACEP, HFRP, and the Watershed Protection and Flood Prevention 
Act). EQIP, CSP, and ACEP each contributed seven percent of their 
annual funding toward RCPP projects.
    The 2018 Farm Bill reauthorizes RCPP with significant changes to 
how the program is funded. Specifically, contributions from ``covered 
programs'' are eliminated and ``covered program contracts'' are 
replaced with RCPP contracts and programmatic partnership agreements.
    The 2018 Farm Bill repeals the seven percent reserved resources 
from the covered programs, provides $300 million in annual mandatory 
Commodity Credit Corporation (CCC) funding, and establishes RCPP 
standalone contracts. Federal transfers under the 2014 Farm Bill 
totaled slightly more than $1 billion for FY 2014 through 2018, or $200 
million on an annual basis. The $300 million in mandatory annual 
funding increases RCPP funding by approximately $100 million annually, 
taking into account the past contribution of the ``covered programs'' 
during FY 2014 through 18.
    The 2018 Farm Bill also changes the ``funding pool'' structure by 
streamlining from three pools to two pools and providing that 50 
percent of funds go to a Critical Conservation Areas pool and 50 
percent of funds go to a state or multi-state pool. It also allows 
project renewals and creates new programmatic authorities and 
expectations for the administration of agreements with partners. In 
addition, application and renewal processes are simplified to encourage 
participation by both producers and project partners. NRCS intends that 
the majority of funds awarded each year will be awarded under a 
competitive process. If the lead

[[Page 8136]]

partner makes such a request, NRCS may renew a partnership agreement. 
To ensure that only the most successful of projects qualify for renewal 
on a non-competitive basis, NRCS has identified in this rule that a 
partner must meet or exceed the objectives of the original project in 
order to be considered for renewal.
    Most of this rule's impact consists of transfer payments from the 
Federal Government to producers or to partners for the benefit of 
producers. Conservation benefits of RCPP financial and technical 
assistance funding delivered to date have been directly comparable to 
that provided by covered programs (EQIP, CSP, ACEP, etc.), and similar 
benefits are expected from RCPP funding under the 2018 Farm Bill.
    Additionally, conservation benefits of partner contributions and 
collaboration in RCPP projects is expected to magnify the benefits of 
RCPP funding over each project's life, offsetting initial delays in 
obligation and implementation. NRCS will discuss methods to quantify 
the incremental benefits obtained from RCPP with lead partners, but due 
to the 5 year life of a typical RCPP project, only limited data are 
available at this time to support this conclusion. Therefore, NRCS and 
partners may use various mechanisms such as modeling to predict long-
term outcomes. Despite these data limitations, RCPP is expected to 
positively affect natural resource concerns--through both the $300 
million in funding provided annually by Congress and by the leverage of 
partner contributions.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996, 
generally requires an agency to prepare a regulatory analysis of any 
rule whenever an agency is required by the APA or any other law to 
publish a proposed rule, unless the agency certifies that the rule will 
not have a significant economic impact on a substantial number of small 
entities. This rule is not subject to the Regulatory Flexibility Act 
because no law requires that a proposed rule be published for this 
rulemaking initiative. Despite the Regulatory Flexibility Act not 
applying to this rule, the action only affects those entities who 
voluntarily participate in RCPP and in doing so receive its benefits. 
Compliance with the provisions of RCPP regulations is only required for 
those entities who choose to participate in this voluntary program.

Environmental Review

    The environmental impacts of this rule 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 NRCS 
regulations for compliance with NEPA (7 CFR part 650). The 2018 Farm 
Bill requires minor changes to NRCS conservation programs, and there 
are no changes to the basic structure of the programs. The analysis has 
determined there will not be a significant impact to the human 
environment and as a result, an environmental impact statement (EIS) is 
not required to be prepared (40 CFR 1508.13). While OMB has designated 
this rule as ``economically significant'' under Executive Order 12866, 
``. . . economic or social effects are not intended by themselves to 
require preparation of an environmental impact statement'' (40 CFR 
1508.14), when not interrelated to natural or physical environmental 
effects. The Environmental Assessment (EA) and Finding of No 
Significant Impact (FONSI) are available for review and comment for 30 
days from the date of publication of this interim rule in the Federal 
Register. NRCS will consider this input and determine whether there is 
any new information provided that is relevant to environmental concerns 
and bearing on the proposed action or its impacts that warrant 
supplementing or revising the current available draft of the RCPP EA 
and FONSI.
    A copy of the EA and FONSI may be obtained from https://www.nrcs.usda.gov/wps/portal/nrcs/detailfull/national/programs/farmbill/?cid=stelprdb1263599. Follow the instructions in the ADDRESSES 
section above for submitting comments.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with State and local officials that 
would be directly affected by proposed Federal financial assistance. 
The objectives of the Executive order are to foster an 
intergovernmental partnership and a strengthened federalism, by relying 
on State and local processes for State and local government 
coordination and review of proposed Federal financial assistance and 
direct Federal development. For reasons specified in the final rule 
related notice regarding 7 CFR part 3015, subpart V (48 FR 29115, June 
24, 1983), the programs and activities in this rule are excluded from 
the scope of Executive Order 12372.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, ``Civil 
Justice Reform.'' This rule will not preempt State or local laws, 
regulations, or policies unless they represent an irreconcilable 
conflict with this rule. Before any judicial actions may be brought 
regarding the provisions of this rule, the administrative appeal 
provisions of 7 CFR part 11 are to be exhausted.

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' The policies contained in this rule do not have any 
substantial direct effect on States, on the relationship between the 
Federal Government and the States, or on the distribution of power and 
responsibilities among the various levels of government, except as 
required by law. It does not impose substantial direct compliance costs 
on State and local governments. Therefore, consultation with the States 
is not required.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments.'' Executive Order 13175 requires Federal agencies 
to consult and coordinate with Tribes on a Government-to-Government 
basis on policies that have Tribal implications, including regulations, 
legislative comments or proposed legislation, and other policy 
statements or actions that have substantial direct effects on one or 
more Indian Tribes, on the relationship between the Federal Government 
and Indian Tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian Tribes.
    The USDA's Office of Tribal Relations (OTR) has assessed the impact 
of this rule on Indian Tribes and determined that this rule does not, 
to our knowledge, have Tribal implication that requires Tribal 
consultation under Executive Order 13175. Tribal consultation for this 
rule was included in the 2018 Farm Bill Tribal consultation held on May 
1, 2019, at the National Museum of the American Indian in Washington, 
DC. The portion of the Tribal consultation relative to this rule was 
conducted by Bill Northey, USDA Under Secretary for the Farm Production 
and Conservation mission area, as part of the Title II session. There 
were no specific comments from Tribes

[[Page 8137]]

on the RCPP rule during the Tribal consultation. If a tribe requests 
additional consultation, NRCS will work with OTR to ensure meaningful 
consultation is provided where changes, additions, and modifications 
identified in this rule are not expressly mandated by legislation.
    Separate from Tribal consultation, communication and outreach 
efforts are in place to assure that all producers, including Tribes (or 
their members), are provided information about this regulation. 
Specifically, NRCS obtains input through Tribal Conservation Advisory 
Councils. A Tribal Conservation Advisory Council may be an existing 
Tribal committee or department and may also constitute an association 
of member Tribes organized to provide direct consultation to NRCS at 
the State, regional, and national levels to provide input on NRCS 
rules, policies, programs, and impacts on Tribes. Tribal Conservation 
Advisory Councils provide a venue for agency leaders to gather input on 
Tribal interests. Additionally, NRCS held several sessions with Indian 
Tribes and Tribal entities across the country in fiscal year 2019 to 
describe the 2018 Farm Bill changes to NRCS conservation programs, 
obtain input about how to improve Tribal and Tribal member access to 
NRCS conservation assistance, and make any appropriate adjustments to 
the regulations that will foster such improved access. NRCS will 
continue to reach out to Indian Tribes and Tribal entities to obtain 
input about how to improve NRCS delivery of RCPP and our other 
conservation programs.

Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (Pub. 
L. 104-4), requires Federal agencies to assess the effects of their 
regulatory actions on State, local, and Tribal Governments or the 
private sector. Agencies generally must prepare a written statement, 
including a cost-benefit analysis, for proposed and final rules with 
Federal mandates that may result in expenditures of $100 million or 
more in any 1 year for State, local, or Tribal Governments, in the 
aggregate, or to the private sector. UMRA generally requires agencies 
to consider alternatives and adopt the more cost-effective or least 
burdensome alternative that achieves the objectives of the rule. This 
rule contains no Federal mandates, as defined under title II of UMRA, 
for State, local, and Tribal Governments or the private sector. 
Therefore, this rule is not subject to the requirements of UMRA.

Federal Assistance Programs

    The title and number of the Federal Domestic Assistance Programs in 
the Catalog of Federal Domestic Assistance to which this rule applies 
is: 10.932--Regional Conservation Partnership Program.

E-Government Act Compliance

    NRCS and CCC are committed to complying with the E-Government Act 
of 2002 (44 U.S.C. 101), to promote the use of the internet and other 
information technologies to provide increased opportunities for citizen 
access to government information and services, and for other purposes.

List of Subjects in 7 CFR Part 1464

    Agricultural operations, Conservation payments, Conservation 
practices, Eligible activities, Environmental credits, Forestry 
management, Natural resources, Resource concern, Soil and water 
conservation, Wildlife.


0
For the reasons stated in the preamble, CCC adds part 1464 to Title 7 
of the Code of Federal Regulations to read as follows:

PART 1464--REGIONAL CONSERVATION PARTNERSHIP PROGRAM

Subpart A--General Provisions

Sec.
1464.1 Applicability.
1464.2 Administration.
1464.3 Definitions.
1464.4 Funding pool allocations.
1464.5 Program requirements.

Subpart B--Partnership Agreements

1464.20 Proposal procedures.
1464.21 Ranking considerations and proposal selection.
1464.22 Partnership agreements.
1464.23 Funding.
1464.24 Modifications, noncompliance, termination, and remedies.
1464.25 Alternative funding arrangements or grant agreements.
1464.26 Supplemental agreements.
1464.27 Third-party contracts or agreements.

Subpart C--Program Contracts

1464.30 Application for contracts and selecting applications for 
funding.
1464.31 Program contract requirements.
1464.32 Modifications and transfers of land.
1464.33 Violations and remedies.

Subpart D--General Administration

1464.40 Appeals.
1464.41 Compliance with regulatory measures.
1464.42 Access to agricultural operation or tract.
1464.43 Equitable relief.
1464.44 Offsets and assignments.
1464.45 Misrepresentation and scheme or device.
1464.46 Environmental credits for conservation improvements.

    Authority:  15 U.S.C. 714b and 714c; 16 U.S.C. 3871 et seq.

Subpart A--General Provisions


Sec.  1464.1  Applicability.

    (a) The purposes of the Regional Conservation Partnership Program 
(RCPP) are as follows:
    (1) Carry out eligible activities to further the conservation, 
protection, restoration, and sustainable use of soil, water (including 
sources of drinking water and ground water), wildlife, agricultural 
land, and related natural resources on eligible land on a regional or 
watershed scale;
    (2) Encourage eligible partners to cooperate with producers in--
    (i) Meeting or avoiding the need for national, State, and local 
natural resource regulatory requirements related to production on 
eligible lands, including through alignment of partnership projects 
with other national, State, and local agencies and programs addressing 
similar natural resource or environmental concerns, and
    (ii) Implementing projects that will result in the adoption, 
installation, and maintenance of eligible activities that affect 
multiple agricultural or nonindustrial private forest operations on a 
local, regional, State, or multistate basis;
    (3) Encourage flexible and streamlined delivery of conservation 
assistance to producers through partnership agreements; and
    (4) Engage producers and eligible partners in conservation projects 
to achieve greater conservation outcomes and benefits for producers 
than would otherwise be achieved.
    (b) Through RCPP, NRCS provides technical and financial assistance 
to implement eligible activities through partnership and supplemental 
agreements with eligible partners and program contracts with producers.
    (c) RCPP is available in any of the 50 States, the District of 
Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands of 
the United States, American Samoa, and the Commonwealth of the Northern 
Mariana Islands.
    (d) Each program contract, partnership agreement, and supplemental 
agreement is subject to the regulations in place on the date it is 
executed.

[[Page 8138]]

Sec.  1464.2  Administration.

    (a) The funds, facilities, and authorities of the Commodity Credit 
Corporation (CCC) are available to NRCS for carrying out RCPP. 
Accordingly, each reference to NRCS in this part also refers to CCC 
funds, facilities, and authorities where applicable.
    (b) No delegation in this part to lower organizational levels will 
preclude the Chief of NRCS from making any determinations under this 
part, redelegating to other organizational levels, or from reversing or 
modifying any determination made under this part.
    (c) NRCS may use other agency-wide authorities, such as 16 U.S.C. 
3842 and 31 U.S.C. 1535, to enter into agreements with other Federal or 
State agencies, Indian Tribes, conservation districts, units of local 
government, public or private organizations, and individuals to assist 
NRCS with implementation of the program in this part.
    (d) To assist in the implementation of the program, the Chief may 
waive the applicability of the limitation in section 1001D of the Food 
Security Act of 1985 for participating producers if the Chief 
determines that the waiver is necessary to fulfill the objectives of 
the program. Section 1001D of the Food Security Act of 1985 does not 
apply to eligible partners.
    (e) NRCS will identify in each State a program coordinator who will 
serve as the primary point of contact for programmatic implementation 
of RCPP in that State.
    (f) NRCS will establish guidance to assist eligible partners with 
quantifying conservation benefits of RCPP implementation. Due to the 
diversity of natural resource issues addressed by an RCPP project and 
the diversity of conservation activities that a project may undertake, 
NRCS will work with each partner to develop project-specific outcome 
approach that will be included in the partnership agreement.


Sec.  1464.3  Definitions.

    The following definitions will apply to this part and all documents 
issued in accordance with this part, unless specified otherwise:
    Agricultural operation means a parcel or parcels of land whether 
contiguous or noncontiguous, that is--
    (1) Under the effective control of the producer at the time the 
producer applies for a program contract; and
    (2) That is operated by the producer with equipment, labor, 
management, and production, forestry, or cultivation practices that are 
substantially separate from other operations.
    Applicant means a producer who has requested in writing to 
participate in RCPP.
    Beginning farmer or rancher means a person, Indian Tribe, Tribal 
corporation, or legal entity who has not materially and substantially 
operated a farm, ranch, or nonindustrial private forest land (NIPF), or 
who has materially and substantially operated a farm, ranch, or NIPF 
for not more than 10 consecutive years, subject to the following 
conditions:
    (1) In the case of a contract with an individual, individually or 
with the immediate family, material and substantial participation 
requires that the individual provide substantial day-to-day labor and 
management of the farm or ranch, consistent with the practices in the 
county or State where the farm is located.
    (2) In the case of a contract with an entity or joint operation, 
all members must materially and substantially participate in the 
operation of the farm or ranch, and no member may have materially and 
substantially operated a farm, ranch, or NIPF for more than 10 
consecutive years, and material and substantial participation requires 
that each of the members provide some amount of the management, or 
labor and management necessary for day-to-day activities, such that if 
each of the members did not provide these inputs, operation of the farm 
or ranch would be seriously impaired.
    Chief means the Chief of NRCS, USDA, or designee.
    Conservation benefits means the improvements in the status of 
resource concerns, priority resource concerns, and similar project 
goals resulting from the implementation of eligible activities in an 
RCPP project area.
    Covered program means the--
    (1) Agricultural Conservation Easement Program administered under 7 
CFR part 1468;
    (2) Environmental Quality Incentives Program administered under 7 
CFR part 1466;
    (3) Conservation Stewardship Program administered under 7 CFR part 
1470, except for the Grassland Conservation Initiative set forth in 
section 1240L-1 of the Food Security Act of 1985;
    (4) Healthy Forests Reserve Program administered under 7 CFR part 
625;
    (5) Watershed protection and flood prevention programs administered 
under 7 CFR part 622, except the Watershed Rehabilitation Program set 
forth in 16 U.S.C. 1012; and
    (6) Conservation Reserve Program administered under 7 CFR part 
1410.
    Critical conservation area (CCA) means a geographical area 
designated by the Secretary of Agriculture that contains a critical 
conservation condition that can be addressed through the program.
    Effective control means possession of the land by ownership, 
written lease, or other legal agreement and authority to act as 
decision maker for the day-to-day management of the operation from the 
time of application and for the duration of the program contract or 
applicable terms of a supplemental agreement.
    Eligible activity means a practice, activity, land rental, 
agreement, easement, or related conservation measure that is available 
under the statutory authority for a covered program, as determined by 
NRCS.
    Eligible land means any land that NRCS determines is eligible under 
Sec.  1464.5.
    Eligible partner means an agency, organization, or other entity 
specified in Sec.  1464.5 that NRCS determines the appropriate 
authority, expertise, and resources necessary to carry out partnership 
responsibilities.
    Historically underserved producer means a person, joint operation, 
Indian Tribe, or legal entity who is a beginning farmer or rancher, 
socially disadvantaged farmer or rancher, limited resource farmer or 
rancher, or veteran farmer or rancher.
    Indian Tribe means any Indian Tribe, Band, Nation, Pueblo, or other 
organized group or community, including any Alaska Native village or 
regional or village corporation as defined in or established pursuant 
to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) 
that is eligible for the special programs and services provided by the 
United States to Indians because of their status as Indians.
    Joint operation means, as defined in part 1400 of this chapter, a 
general partnership, joint venture, or other similar business 
arrangement in which the members are jointly and severally liable for 
the obligations of the organization.
    Lead partner means an eligible partner who is the primary signatory 
of a partnership agreement with NRCS and is identified as the lead 
partner in that agreement.
    Legal entity means, as defined in part 1400 of this chapter, an 
entity created under Federal or State law that--
    (1) Owns land or an agricultural commodity, product, or livestock; 
or
    (2) Produces an agricultural commodity, product, or livestock.
    Limited resource farmer or rancher means:
    (1) A person who:

[[Page 8139]]

    (i) Has direct or indirect gross farm sales not more than the 
current indexed value in each of the previous 2 years (adjusted for 
inflation using the Prices Paid by Farmer Index as compiled by USDA's 
National Agricultural Statistical Service), and
    (ii) Has a total household income at or below the national poverty 
level for a family of four, or less than 50 percent of county median 
household income in each of the previous 2 years (to be determined 
annually using Commerce Department data); or
    (2) A legal entity or joint operation if all individual members 
independently qualify under paragraph (1) of this definition.
    Liquidated damages means a sum of money stipulated that a 
participant agrees to pay NRCS if the participant fails to fulfill the 
terms of the program contract. The sum represents an estimate of the 
expenses incurred by NRCS to service the program contract and reflects 
the difficulties of proof of loss and the inconvenience or 
nonfeasibility of otherwise obtaining an adequate remedy.
    Natural Resources Conservation Service (NRCS) is an agency of the 
USDA, which has responsibility for administering RCPP using the funds, 
facilities, and authorities of the CCC.
    Nonlead partner means an eligible partner, other than a lead 
partner, who has entered into a supplemental agreement with NRCS 
consistent with the terms of a partnership agreement.
    Nonindustrial private forest land (NIPF) means rural land, as 
determined by NRCS, that has existing tree cover or is suitable for 
growing trees; and is owned by any nonindustrial private individual, 
group, association, corporation, Indian Tribe, acequia, or other 
private legal entity that has definitive decision-making authority over 
the land.
    Participant means a person, legal entity, joint operation, or 
Indian Tribe who has applied for participation and is receiving a 
financial assistance payment or is responsible for implementing the 
terms and conditions of a program contract.
    Partnership agreement means a programmatic agreement between NRCS 
and a lead partner.
    Person means a natural person and does not include a legal entity.
    Priority resource concern means a natural resource concern located 
in a CCA that can be addressed through:
    (1) Water quality improvement, including through reducing erosion, 
promoting sediment control, and addressing nutrient management 
activities affecting large bodies of water of regional, national, or 
international significance;
    (2) Water quantity improvement, including improvement relating to:
    (i) Drought;
    (ii) Ground water, surface water, aquifer, or other water sources; 
or
    (iii) Water retention and flood prevention;
    (3) Wildlife habitat restoration to address species of concern at a 
Federal, State, or local level; and
    (4) Other natural resource improvements, as determined by the 
Chief, within the CCA.
    Producer means a person, legal entity, joint operation, or Indian 
Tribe who NRCS determines is:
    (1) Engaged in agricultural production or forestry management on 
the agricultural operation; or
    (2) The landowner of eligible land for purposes of a program 
contract or associated supplemental agreement, as determined by NRCS.
    Program means the Regional Conservation Partnership Program (RCPP) 
administered by NRCS under this part.
    Program contract means a binding agreement under the program for 
the transfer of assistance from NRCS to the producer to compensate the 
producer for the implementation of eligible activities that specifies 
the rights and obligations of any producer participating in the 
program.
    Project resource concern means a specific resource concern set out 
in a partnership agreement that is of special importance or 
significance for the purposes of that partnership agreement.
    Proposal means an offer submitted by an eligible partner for 
consideration and ranking for selection by NRCS to enter into a 
partnership agreement.
    RCPP plan of operations means the document that identifies the 
location and timing of eligible activities that the participant agrees 
to implement on eligible land.
    Resource concern means a specific natural resource problem that is 
likely to be addressed successfully through the implementation of the 
eligible activities.
    Socially disadvantaged farmer or rancher means a producer who is a 
member of a group whose members have been subjected to racial or ethnic 
prejudices without regard to its members' individual qualities. For an 
entity, at least 50 percent ownership in the business entity must be 
held by socially disadvantaged individuals.
    State Technical Committee means a committee established by NRCS in 
a State pursuant to 7 CFR part 610, subpart C.
    Supplemental agreement means a legal document between NRCS and an 
eligible lead or nonlead partner that is subject to the terms of a 
partnership agreement and which furthers the purposes of the 
partnership agreement.
    Technical service provider (TSP) means an individual, private-
sector entity, Indian Tribe, or public agency either:
    (1) Certified pursuant to 7 CFR part 652 and placed on the approved 
list to provide technical services to participants; or
    (2) Selected by USDA to assist in program implementation through a 
supplemental agreement or otherwise through a procurement contract, 
contribution agreement, or cooperative agreement with USDA.
    Veteran farmer or rancher means a producer who meets the definition 
in section 2501(a)(7) of the Food, Agriculture, Conservation, and Trade 
Act of 1990, as amended (7 U.S.C. 2279(a)(7)).


Sec.  1464.4  Funding pool allocations.

    (a) Of the funds made available for the program, NRCS will 
allocate:
    (1) Fifty percent of the funds to projects based on a State or 
multistate competitive process; and
    (2) Fifty percent of the funds to projects for the CCAs designated 
by the Secretary.
    (b) NRCS will allocate funds under the funding pools identified 
under paragraph (a) of this section to projects selected on a 
competitive basis pursuant to partnership agreement proposals submitted 
under the requirements of subpart B of this part.


Sec.  1464.5   Program requirements.

    (a) General requirements.
    (1) Program participation is voluntary.
    (2) NRCS and lead partners enter into partnership agreements that 
identify the purposes and scope of RCPP projects under the framework of 
a partnership agreement.
    (3) NRCS and lead partners enter into supplemental agreements to 
facilitate assistance to producers.
    (4) NRCS enters into program contracts with producers to provide 
program assistance to eligible producers to implement eligible 
activities on eligible land.
    (5) NRCS may enter into an alternative funding arrangement with a 
lead partner for the lead partner to deliver program assistance 
directly to producers in accordance with Sec.  1464.25 of this part.
    (b) Partner eligibility. An eligible partner may include:
    (1) An agricultural or silvicultural producer association or other 
group of producers;

[[Page 8140]]

    (2) A State or unit of local government, including a conservation 
district;
    (3) An Indian Tribe;
    (4) A farmer cooperative;
    (5) An institution of higher education;
    (6) A water district, irrigation district, acequia, rural water 
district or association, or other organization with specific water 
delivery authority to producers on agricultural land;
    (7) A municipal water or wastewater treatment entity;
    (8) An organization or entity with an established history of 
working cooperatively with producers on agricultural land, as 
determined by the Secretary, to address--
    (i) Local conservation priorities related to agricultural 
production, wildlife habitat development, and NIPF management; or
    (ii) Critical watershed-scale soil erosion, water quality, sediment 
reduction, or other natural resource concerns; or
    (9) An eligible entity as identified by NRCS pursuant to 7 CFR part 
1468.
    (c) Producer eligibility. To be eligible to receive payments or 
benefits under the program, each producer must--
    (1) Be in compliance with the highly erodible land and wetland 
conservation provisions found at part 12 of this title;
    (2) Meet the adjusted gross income payment limitations under part 
1400 of this chapter unless waived by the Chief;
    (3) Have effective control of the land;
    (4) NRCS may approve interim conservation practice standards or 
activities if--
    (i) New technologies or management approaches that provide a high 
potential for optimizing conservation benefits have been developed; and
    (ii) The interim conservation practice standard or activity 
incorporates the new technologies and provides financial assistance for 
pilot work to evaluate and assess the performance, efficiency, and 
effectiveness of the new technology or management approach.
    (f) Technical service provision. (1) NRCS may use the services of a 
qualified TSP, including a qualified eligible partner, in meeting its 
responsibilities for technical assistance.
    (2) Producers or eligible partners may use technical services from 
qualified personnel of other Federal, State, and local agencies, Indian 
Tribes, or individuals who are certified as TSPs under 7 CFR part 652.
    (3) Technical services provided by qualified personnel not 
affiliated with USDA may include but are not limited to: Conservation 
planning; conservation practice survey, layout, design, installation, 
and certification; information, education, and training for producers; 
and other program implementation services as identified by NRCS.
    (4) NRCS retains approval authority of work done by non-NRCS 
personnel for the purpose of approving RCPP payments.

Subpart B--Partnership Agreements


Sec.  1464.20   Proposal procedures.

    (a) NRCS will:
    (1) Periodically announce opportunities through a simplified 
competitive process for eligible partners to submit proposals for 
partnership agreements; and
    (2) Make public the criteria that will be used to evaluate 
proposals for partnership agreements in each announced project 
selection opportunity, which may include whether NRCS will consider 
alternative funding arrangements or grant agreements during the 
selection opportunity or whether proposals seeking alternative funding 
arrangements or grant agreements will have a separate selection 
opportunity. These criteria will relate to four principle categories: 
Impact, partner cash and in-kind contribution, innovation, and project 
management.
    (b) A partnership agreement proposal submitted by the eligible 
partner must include the following:
    (1) The scope of the proposed project;
    (2) A plan for monitoring, evaluating, and reporting on progress 
made toward achieving the project's objectives;
    (3) The estimated RCPP funding and other program resources 
requested for the project including any advance technical assistance 
for outreach in the project area;
    (4) Whether the eligible partner is requesting NRCS to consider the 
proposal for funding under an alternative funding arrangement or grant 
agreement under Sec.  1464.25;
    (5) Each eligible partner collaborating to achieve project 
objectives, including their roles, responsibilities, capabilities, and 
contribution; and
    (6) Other information NRCS may identify as necessary to evaluate 
and select proposals.


Sec.  1464.21  Ranking considerations and proposal selection.

    (a) Final selection. NRCS will rank and select proposals for 
partnership agreements pursuant to the evaluation criteria listed in 
1464.20(a)(2).
    (b) Priority to certain proposals. NRCS may give a higher priority 
to proposals for partnership agreements that--
    (1) Assist producers in meeting or avoiding the need for a natural 
resource regulatory requirement;
    (2) Have a high percentage of producers in the area to be covered 
by the agreement;
    (3) Significantly leverage non-Federal financial and technical 
resources and coordinate with other local, State, or national efforts;
    (4) Build new partnerships with local, State, and private entities 
to include a diversity of stakeholders in the project;
    (5) Deliver a high percentage of applied conservation to achieve 
conservation benefits or address the priority resource concern for a 
designated CCA;
    (6) Implement the project consistent with existing watershed, 
habitat, or other area restoration plans;
    (7) Provide innovation in conservation methods and delivery, 
including outcome-based performance measures and methods; or
    (8) Meet other factors that are important for achieving the 
purposes of the program, as determined by NRCS.
    (c) Proposals in CCAs. (1) NRCS will select proposals for 
partnership agreements within CCAs that address one or more priority 
resource concerns for which the CCA is designated.
    (2) NRCS will identify the designated CCAs and publish the priority 
resource concerns for each CCA.
    (3) NRCS will identify the priority resource concerns and 
associated ranking criteria in any announcement under Sec.  1464.20.


Sec.  1464.22  Partnership agreements.

    (a) In general. Upon selection of a proposal for partnership 
agreement, NRCS will work with the eligible partner to develop the 
specifics of the partnership agreement. NRCS may offer a reduced amount 
of program assistance from that requested in the proposal for a 
partnership agreement or negotiate other project details.
    (b) Duration. A partnership agreement between NRCS and a lead 
partner will be for a period of time:
    (1) Not to exceed 5 years; or
    (2) That is longer than 5 years if the longer period of time is 
necessary to meet the objectives of the program, as determined by NRCS.
    (c) Extension. A partnership agreement, including a renewal of a 
partnership agreement, may be extended not more than one time for a 
period of time not longer than 12 months, as determined by NRCS.
    (d) Requirements. The partnership agreement between NRCS and a lead 
partner will:
    (1) Specify the scope of a project, including:

[[Page 8141]]

    (i) One or more conservation benefits that the project will 
achieve;
    (ii) The eligible activities on eligible land to be conducted under 
the project to achieve conservation benefits;
    (iii) The implementation timeline for carrying out the project, 
including any interim milestones;
    (iv) The local, State, multistate, or other geographic area 
covered; and
    (v) The planning, outreach, implementation, and assessment to be 
conducted.
    (2) Identify the outreach and education to producers for potential 
participation in the project;
    (3) Authorize the lead partner, at the request of a producer, to 
act on behalf of a producer participating in the project in applying 
for assistance under subpart C of this part;
    (4) Identify the significant contribution to the project costs by 
the lead partner, including any direct or indirect funding or in-kind 
support that will be contributed to help achieve the project 
objectives;
    (5) Define the conservation benefits and other outcomes to be 
achieved by the project including the impact to any priority or project 
resource concern;
    (6) Require the lead partner to assess periodically the progress 
made by the project in achieving the defined conservation benefits and 
outcomes;
    (7) Require the lead partner to report to NRCS at the conclusion of 
the project on the project's results and funding leveraged;
    (8) Set forth the total amount of financial and technical 
assistance funding that NRCS will reserve to support project 
implementation;
    (9) Establish the general terms and conditions of any supplemental 
agreements that NRCS or the lead partner may enter into with nonlead 
partners;
    (10) Identify the terms and conditions under which either NRCS or 
the lead partner may enter into supplemental agreements to further the 
purposes of the partnership agreement;
    (11) Identify the other requirements identified by NRCS; and
    (12) Include any unique requirements if the partnership agreement 
is a grant agreement or alternative funding arrangement.
    (e) Supplemental agreements. NRCS may enter into supplemental 
agreements with a lead partner or a nonlead partner to provide 
technical assistance or to assist producers with implementation of 
eligible activities in the project area as identified in Sec.  1464.26.
    (f) Partnership agreement renewal. (1) As determined by NRCS, a 
partnership agreement may be renewed for a period not to exceed 5 
years.
    (2) NRCS may agree to renew the partnership agreement through an 
expedited process if--
    (i) The lead partner requests such a renewal; and
    (ii) NRCS determines that the project has met or exceeded project 
objectives as verified by NRCS.
    (3) To facilitate expedited renewal, NRCS may designate a portion 
of available RCPP funding for expedited renewal requests.
    (4) NRCS will not rank expedited renewal requests against new 
proposals.
    (5) Under a renewal of a partnership agreement, the parties may 
request to continue to implement the project as defined in the original 
partnership agreement or expand the scope of the project consistent 
with the objectives and purposes of the original partnership agreement.
    (g) Notification. All eligible partners who submit a proposal for a 
partnership agreement or submit a request to renew a partnership 
agreement will receive notification from NRCS regarding selection or 
nonselection of the project proposal or approval or denial of the 
renewal request.


Sec.  1464.23  Funding.

    (a) Except as otherwise provided in this subpart, NRCS will only 
provide technical and financial assistance to producers through program 
contracts as described in subpart C of this part.
    (b) Notwithstanding the restriction set forth in paragraph (a) of 
this section, NRCS may provide technical and financial assistance to a 
partner:
    (1) Where the partnership agreement is funded through an 
alternative funding arrangement or grant agreement under Sec.  1464.25; 
or
    (2) Pursuant to a supplemental agreement executed in furtherance of 
a partnership agreement, as set forth in Sec.  1464.26.
    (c) Notwithstanding the restriction set forth in paragraph (a) of 
this section, pursuant to a partnership agreement or supplemental 
agreement, NRCS may provide funding to a partner for technical 
assistance for an eligible purpose, such as:
    (1) Providing outreach and education for potential participation in 
the project;
    (2) Establishing baseline metrics to support the development of the 
assessment required under Sec.  1464.22(d)(6); or
    (3) Providing technical assistance to producers.
    (d) Notwithstanding the restriction set forth in paragraph (a) of 
this section, NRCS may enter into third-party contracts or agreements 
to meet its responsibilities under the program using program funding.
    (e) Any funding provided by NRCS under paragraphs (a) through (d) 
of this section will count against the total amount of funding that 
NRCS agreed to provide to the project under the terms of the 
partnership agreement.


Sec.  1464.24  Modification, noncompliance, termination, and remedies.

    (a) Modifications. NRCS may modify a partnership agreement, 
including associated supplemental agreements, if--
    (1) The lead partner or, as applicable, the nonlead partner agrees 
to the modification; and
    (2) NRCS determines the modified partnership agreement or 
associated supplemental agreement continues to meet the purposes of the 
program.
    (b) Noncompliance. In the event of noncompliance with the 
partnership agreement terms, NRCS will provide the lead partner written 
notice as specified in the partnership agreement, and, where 
appropriate, a reasonable opportunity to correct voluntarily the 
noncompliance in accordance with the terms of the partnership 
agreement.
    (c) Terminations. (1) Lead partners may request that NRCS terminate 
the partnership agreement, provided the request for termination is in 
writing, and includes the reasons for termination.
    (2) NRCS may terminate a partnership agreement if--
    (i) Justified by the reasons provided by the lead partner;
    (ii) NRCS determines that a modification of the partnership 
agreement is necessary to comply with applicable law and the partner 
does not concur with such modification; or
    (iii) The lead partner fails to correct noncompliance with a term 
of the partnership agreement under paragraph (b) of this section.
    (3) A termination may be justified by circumstances beyond the lead 
partners' control that prevents completion of one or more provisions of 
the partnership agreement, such as a natural disaster or other 
circumstances in which NRCS may determine that termination is in the 
public interest.
    (4) If a program agreement is terminated, the lead partner forfeits 
all rights to any remaining technical or financial assistance under the 
partnership agreement.
    (d) Effect on other agreements. Termination of a partnership 
agreement under this section will--
    (1) Not affect the validity of any program contract that was 
entered into within the project area encompassed by the partnership 
agreement; and
    (2) Result in the termination of a supplemental agreement unless 
NRCS

[[Page 8142]]

determines that the supplemental agreement would continue to provide 
necessary program implementation assistance to producers with program 
contracts or otherwise advance an eligible program activity within the 
project area.
    (e) Refund and right to future assistance. If NRCS terminates a 
partnership agreement due to noncompliance with its terms or 
conditions, the lead partner will forfeit any right to future 
assistance under the partnership agreement and will refund all or part 
of any payments received directly by the lead partner, plus interest.
    (f) Liquidated damages. (1) NRCS may include terms in a partnership 
agreement that allow for the assessment of liquidated damages against 
the lead partner in the event of an intentional breach.
    (2) The amount of any liquidated damages will be set at an amount 
reasonably calculated to reimburse NRCS for its foreseeable losses in 
the event of noncompliance and will not be punitive in nature.


Sec.  1464.25  Alternative funding arrangements or grant agreements.

    (a) When the Chief so determines, NRCS may offer to fund a proposal 
through an alternative funding arrangement or grant agreement under 
this section.
    (b) In determining whether to offer to fund a proposal through an 
alternative funding arrangement or grant agreement, the Chief will 
consider the extent to which the proposal:
    (1) Will achieve conservation benefits on a regional or watershed 
scale;
    (2) Involves investments in infrastructure (such as roads, dams, 
and irrigation facilities) related to agricultural or nonindustrial 
private forest production that would benefit multiple producers and 
address natural resource concerns such as drought, wildfire, or water 
quality impairment on the land within the proposal area;
    (3) Addresses natural resource concerns, including the development 
and implementation of watershed, habitat, or other area restoration 
plans;
    (4) Uses innovative approaches to leverage the Federal investment 
with private financial mechanisms, such as:
    (i) Provision of performance-based payments to producers, or
    (ii) Support for an environmental market; and
    (5) Otherwise demonstrates that the goals and objectives of the 
program would be more easily achieved by offering to fund the proposal 
through an alternative funding arrangement or grant agreement under 
this section.
    (c) The terms of an alternative funding arrangement or grant 
agreement may be made expressly in the partnership agreement and may 
include providing financial assistance directly to the lead partner or 
to nonlead partners through supplemental agreements.
    (d) NRCS will not enter into more than 15 partnership agreements 
funded through an alternative funding arrangement or grant agreement 
each fiscal year.


Sec.  1464.26   Supplemental agreements.

    (a) Authorization. Subject to the conditions in this section and in 
the partnership agreement, NRCS may enter into supplemental agreements 
with a lead partner or a nonlead partner.
    (b) Effect on programmatic agreement. A supplemental agreement may 
not modify the substantive terms of the partnership agreement.
    (c) Technical assistance. (1) NRCS may provide technical assistance 
funds under a supplemental agreement to facilitate the provision of 
technical assistance by the lead partner or nonlead partner to 
producers in the project area.
    (2) Any technical assistance funds obligated under a supplemental 
agreement by NRCS will count against the total amount of technical 
assistance funds that NRCS agreed to provide to the project under the 
terms of the partnership agreement.
    (d) Financial assistance. Based upon eligibility, evaluation, and 
selection criteria developed by NRCS, NRCS may provide financial 
assistance funds under a supplemental agreement if the supplemental 
agreement is:
    (1) To facilitate the conveyance of an easement to an eligible 
entity by a producer;
    (2) To implement an eligible activity that is available under 7 CFR 
part 622, except for the Watershed Rehabilitation Program set forth in 
16 U.S.C. 1012;
    (3) Other situations where a program contract requires the 
integration of a supplemental agreement to facilitate the 
implementation of an eligible activity, as determined by NRCS.
    (e) Term. A supplemental agreement will be for a term that is 
within the term of a partnership agreement unless NRCS determines that 
the term of the supplemental agreement should extend beyond the term of 
the partnership agreement to ensure appropriate assistance to 
participating producers or completion of an eligible activity.
    (f) Noncompliance and remedies. NRCS will incorporate in a 
supplemental agreement:
    (1) The procedures required in the event of a determination that 
the lead partner or nonlead partner is not in compliance with the terms 
and conditions of the supplemental agreement;
    (2) The consequences for failure to remedy noncompliance, including 
termination of the supplemental agreement, the requirement to repay any 
payments received, forfeit any future payments, and the availability of 
liquidated damages;
    (3) The impacts of termination of the supplemental agreement upon 
the partnership agreement or any associated program contract;
    (4) The availability, if any, of administrative review of NRCS 
determinations under Sec.  1464.40; and
    (5) Other terms and conditions NRCS determines necessary to ensure 
the effective delivery of program resources to producers.


Sec.  1464.27  Third-party contracts or agreements.

    (a) Lead and nonlead partners may employ third-party contracts or 
agreements to fulfill their obligations under a partnership or 
supplemental agreement, subject to approval by the Chief or as allowed 
per the terms of the partnership or supplemental agreement.
    (b) Any costs to a lead or nonlead partner as part of a third-party 
contract or agreement as described in paragraph (a) of this section may 
constitute all or part of a partner contribution described in Sec.  
1464.22(d)(4) to the extent that such costs directly relate to 
fulfilling the obligations of a partnership or supplemental agreement, 
as determined by NRCS.
    (c) NRCS may employ third-party contracts or agreements in order to 
meet its responsibilities under the terms of an approved partnership 
agreement, supplemental agreement, or program contract, including but 
not limited to easement acquisition services, implementation services, 
or other goods or services NRCS determines are necessary to meet its 
responsibilities under RCPP.

Subpart C--Program Contracts


Sec.  1464.30  Application for program contracts and selecting 
applications for funding.

    (a) Evaluation guidelines. In evaluating program contract 
applications, NRCS may take into consideration the following 
guidelines:
    (1) Any producer who has eligible land in a project area 
encompassed by a partnership agreement may submit an application for 
participation in RCPP.
    (2) To the greatest extent practicable, applications for similar 
eligible activities may be grouped together in

[[Page 8143]]

ranking pools for evaluation and ranking purposes.
    (3) Upon execution of a partnership agreement, NRCS will accept 
producer applications for funding under such agreement throughout the 
fiscal year and may be evaluated and ranked on a continuous or ranking-
period basis.
    (4) NRCS may give priority to applications that are submitted as 
part of a bundle submitted by a lead partner.
    (5) In selecting RCPP applications, NRCS will develop an evaluation 
and ranking process to prioritize eligible applications for funding 
that address the purposes of the project or CCA, including treating the 
identified project or priority resource concerns, as applicable.
    (b) Selection order. (1) NRCS will select eligible applications for 
funding in order of ranking priority taking into account identified 
evaluation periods and ranking pools.
    (2) NRCS may decline to select an eligible application if the 
remaining funding is insufficient to fund that application and NRCS may 
proceed to the next application in ranked order that can be funded with 
available funding.
    (3) NRCS, in consultation with the lead partner, may identify and 
establish in the partnership agreement other limited circumstances that 
may warrant selection of eligible applications outside of a strictly 
applied rank order because such application is critical to the success 
of a project that provides conservation benefits to multiple producers 
or landowners in a community, watershed, or other geographic area.
    (c) Public information. Pursuant to the terms of the partnership 
agreement, NRCS or the lead partner will make available to the public 
sign-up information, including the identification of program and 
priority resource concerns, a listing of eligible activities, payment 
rates for certain eligible activities, State supplemental guidance, and 
contact information for the RCPP State coordinators available to assist 
partners and applicants with the program.
    (d) Applications in CCAs. (1) NRCS will identify the designated 
CCAs and publish priority resource concerns for a CCA project.
    (2) NRCS will select eligible applications for program contracts 
within CCAs that address one or more priority resource concerns for 
which the CCA is designated.
    (3) NRCS will identify the priority resource concerns and 
associated ranking criteria in any announcement under Sec.  1464.20.


Sec.  1464.31  Program contract requirements.

    (a) Requirement of a program contract. For a producer to receive 
payments, the producer must enter into a program contract and agree to 
the terms and conditions associated with the type of eligible activity 
to be implemented.
    (b) Program contract contents. A program contract will:
    (1) Identify the requirements for participation under RCPP, 
including:
    (i) Contract duration;
    (ii) Maximum Federal payment amounts or rates; and
    (iii) Any other necessary requirements, as determined by NRCS;
    (2) Identify:
    (i) The eligible activities that the participant agrees to 
implement; and
    (ii) The requirements to demonstrate successful implementation of 
the eligible activities;
    (3) Incorporate the RCPP plan of operations, as applicable, which 
includes--
    (i) Identification of eligible activities contained in the program 
contract, including which resource concerns each eligible activity 
addresses;
    (ii) A schedule or timeline for implementation of selected eligible 
activities, as applicable; and
    (iii) Other criteria as determined necessary by NRCS;
    (4) Incorporate provisions to further the purposes of the 
partnership agreement;
    (5) Incorporate all provisions as required by statute or 
regulation, including requirements that the participant will:
    (i) Not conduct any action that would defeat the program's 
purposes;
    (ii) Refund any program payments received with interest, and 
forfeit any future payments under the program, on the violation of a 
term or condition of the program contract, consistent with the 
provisions of Sec.  1464.36; and
    (iii) Supply information if required by NRCS to determine 
compliance with program requirements; and
    (6) Specify any other provision determined necessary or appropriate 
by NRCS to ensure the program purpose is met.
    (c) Payment eligibility. To be eligible to enter into a program 
contract or receive a payment, an applicant or participant must--
    (1) Provide a tax identification number; however, where applicable, 
American Indians, Alaska Natives, and Pacific Islanders may use another 
unique identification number for each individual eligible for payment;
    (2) Indicate, where applicable, the percent interest share in a 
payment that is consistent with operation or ownership shares;
    (3) Comply with the highly erodible land and wetland conservation 
provisions found at part 12 of this title at the time of application 
and throughout the contract term; and
    (4) Be eligible for payments in accordance with part 1400 of this 
chapter, average adjusted gross income limitation, including any waiver 
of these requirements, prior to program contract approval.
    (d) Duplication of payment. (1) Except as otherwise indicated in 
this paragraph, any payments received by a participant from a State, 
private entity, or person for the implementation of one or more 
eligible activities on eligible land will be in addition to the 
payments provided to the participant under this part.
    (2) NRCS will not issue financial assistance to a participant 
through a program contract for eligible activities on eligible land if 
the participant receives payments or other benefits for the same or 
similar eligible activity on the same land under any other conservation 
program administered by USDA.
    (3) NRCS will not provide technical or financial assistance to a 
participant for more than one eligible activity to achieve the same 
resource benefit on the same land during the same time period.


Sec.  1464.32   Modifications and transfers of land.

    (a) Modifications. NRCS may modify a program contract, if:
    (1) The parties agree to the modification, and
    (2) NRCS determines the modified program contract continues to meet 
the purposes of the program.
    (b) Notice of loss of effective control. NRCS may terminate an 
entire program contract if, within the time specified in the program 
contract, the participant does not provide NRCS with written notice 
regarding any voluntary or involuntary loss of effective control of any 
acreage under the program contract, which includes changes in the 
participant's ownership structure or corporate form.
    (c) Approval of transfer. NRCS may approve a transfer of a program 
contract if:
    (1) NRCS has documented notice from the current participant that 
identifies the new producer who will take control of the acreage, as 
required in paragraph (e) of this section;
    (2) The current participant transfers rights and responsibilities 
to the new producer;
    (3) The new producer meets program eligibility requirements within 
a

[[Page 8144]]

reasonable time frame, as determined by NRCS, and agrees to assume the 
rights and responsibilities from the current participant for the 
acreage under the program contract; and
    (4) NRCS determines that the purposes of the program will continue 
to be met despite the current participant's losing effective control of 
all or a portion of the land under contract.
    (d) Payment status. (1) Until NRCS approves the transfer of program 
contract rights, the transferee is not a participant in the program and 
may not receive payment for eligible activities implemented prior to 
NRCS approval of the program contract transfer.
    (2) For program contract payment purposes, NRCS will consider the 
transferor to be the participant to whom payments may be made for 
eligible activities implemented when NRCS approval of the program 
contract transfer is pending.
    (e) Right to terminate. NRCS may not approve a program contract 
transfer and may terminate the program contract in its entirety if NRCS 
determines that the loss of effective control of the land was 
voluntary, the participant's written notification of loss of effective 
control was not provided to NRCS within the specified timeframe, the 
new producer is not eligible or willing to assume responsibilities 
under the contract, or the purposes of the program cannot be met.
    (f) Run with the land. Once an easement deed has been acquired, an 
easement will run with the land and bind all successors and assigns. 
Subordination, modification, exchange, or termination of an easement 
acquired under this part will be consistent with the policies and 
procedures under 7 CFR part 1468.
    (g) Reestablishment. In the event an eligible activity fails 
through no fault of the participant, NRCS may issue payments to 
reestablish the eligible activity, subject to such limitations that 
NRCS may establish.


Sec.  1464.33   Violations and remedies.

    (a) Reasonable notice. In the event of a violation of the program 
contract terms, NRCS will provide the participant written notice as 
specified in the program contract, and, where appropriate, a reasonable 
opportunity to voluntarily correct the violation in accordance with the 
terms of the program contract.
    (b) Voluntary correction. If the participant fails to correct the 
violation of a term of the program contract in the timeframe specified 
by NRCS, NRCS may terminate the program contract or require 
modification as a condition to keep the program contract in effect.
    (c) Refund and right to future assistance. If NRCS terminates a 
program contract due to a violation of its terms or conditions, the 
participant will forfeit any right to future assistance under the 
program contract and will refund all or part of any payments received 
by the participant, plus interest.
    (d) Liquidated damages. (1) NRCS may include terms in a program 
contract that allow for the assessment of liquidated damages in the 
event of a violation.
    (2) The amount of any liquidated damages will be set at an amount 
reasonably calculated to reimburse NRCS for its foreseeable losses in 
the event of a violation by the participant and will not be punitive in 
nature.
    (3) NRCS will enforce a liquidated damage provision if the Chief 
determines doing so is in the best interests of RCPP.
    (e) Hardships. (1) NRCS may allow a participant in a program 
contract terminated in accordance with the provisions of paragraph (b) 
of this section to retain a portion of any payments received 
appropriate to the effort the participant has made to comply with the 
program contract, or in cases of hardship, where NRCS determines that 
forces beyond the participant's control prevented compliance with the 
program contract.
    (2) The condition that is the basis for the participant's inability 
to comply with the program contract must not have existed at the time 
the program contract was executed by the participant.
    (3) If a participant believes that such a hardship condition 
exists, the participant may submit a written request to NRCS for relief 
pursuant to this paragraph and any such request will contain 
documentation sufficient for NRCS to determine that this hardship 
condition exists.
    (f) Death, incompetency, disappearance. In the case of death, 
incompetency, or disappearance of any participant, NRCS may, as 
identified in the program contract, terminate the contract, make any 
payments due under this part pursuant to guidance under applicable 
provisions of parts 707 and 1400 of this title (including payment to 
successor(s)), or take any further action that the Chief determines is 
fair and reasonable in light of all of the circumstances.
    (g) Administrative errors. NRCS reserves the right to correct any 
and all errors in entering data or the results of computations in a 
program contract. If a participant does not agree to such corrections, 
NRCS will terminate the program contract.

Subpart D--General Administration


Sec.  1464.40   Appeals.

    (a) Participants under program contracts. A participant may obtain 
administrative review of an adverse decision under RCPP in accordance 
with parts 11 and 614 of this title. Any and all determination in 
matters of general applicability, such as payment rates, the 
designation of identified program or priority resource concerns, and 
eligible activities are not subject to appeal.
    (b) Lead partners and nonlead partners under partnership or 
supplemental agreements.
    (1) A lead partner or nonlead partner may obtain a review of any 
administrative determination concerning eligibility as a partner under 
the program or eligibility for financial assistance payments under an 
agreement that obligated financial assistance funds utilizing the 
administrative appeal regulations provided in 7 CFR parts 11 and 614.
    (2) NRCS provision of technical assistance funds under a 
partnership agreement or supplemental agreement are not subject to 
administrative review as the provision of such funds are to assist NRCS 
with its implementation of the program consistent with 16 U.S.C. 3842 
and are not program payments or benefits to a lead partner or nonlead 
partner.


Sec.  1464.41   Compliance with regulatory measures.

    Participants who implement eligible activities will be responsible 
for obtaining the authorities, rights, easements, permits, or other 
approvals necessary for their implementation consistent with applicable 
statutes and regulations. Participants will be responsible for 
compliance with all laws and for all effects or actions resulting from 
the participant's performance under the contract.


Sec.  1464.42   Access to agricultural operation or tract.

    Any authorized NRCS representative will have the right to enter an 
agricultural operation or tract of land for the purposes of determining 
eligibility, conducting ranking and due diligence activities, and for 
ascertaining the accuracy of any representations related to agreement 
or contract performance. Access will include the right to provide 
technical assistance, determine eligibility, conduct ranking and onsite 
inspections prior to execution of an

[[Page 8145]]

agreement or contract, inspect any actions undertaken under the 
agreement or contract, and collect information necessary to evaluate 
agreement or contract performance, as specified in the agreement or 
contract. The NRCS representative will attempt to contact the applicant 
or participant prior to exercising this provision.


Sec.  1464.43   Equitable relief.

    (a) If a participant relied upon the advice or action of NRCS and 
did not know, or have reason to know, that the action or advice was 
improper or erroneous, the participant may be eligible for equitable 
relief under 7 CFR part 635; however, the financial or technical 
liability for any action by a participant that was taken based on the 
advice of a TSP will remain with the TSP and will not be assumed by 
NRCS.
    (b) If a participant has been found in violation of a program 
requirement through failure to comply fully with that requirement, the 
participant may be eligible for equitable relief under 7 CFR part 635.


Sec.  1464.44   Offsets and assignments.

    (a) Except as provided in paragraph (b) of this section, any 
payment or portion thereof to any person, legal entity, joint 
operation, or Indian Tribe will be made without regard to questions of 
title to the payment under State law and without regard to any claim or 
lien against the crop, or proceeds thereof, in favor of the owner or 
any other creditor except agencies of the U.S. Government. The 
regulations governing offsets and withholdings found at part 1403 of 
this chapter will apply to contract payments.
    (b) Any person, legal entity, Indian Tribe, eligible entity, or 
other party entitled to any cash payment under this program may assign 
the right to receive such cash payments, in whole or in part.


Sec.  1464.45  Misrepresentation and scheme or device.

    (a) A person, legal entity, joint operation, or Indian Tribe that 
is determined to have erroneously represented any fact affecting a 
program determination made in accordance with this part will not be 
entitled to payments under RCPP and must refund to NRCS all RCPP 
payments, plus interest, determined in accordance with part 1403 of 
this chapter.
    (b) A participant will lose all interest in all contracts or 
agreements with NRCS and will refund to NRCS all payments, plus 
interest determined in accordance with part 1403 of this chapter, 
received by such participant with respect to all contracts and 
agreements if it is determined that the participant has knowingly:
    (1) Adopted any scheme or device that tends to defeat the purpose 
of the program;
    (2) Made any fraudulent representation to NRCS;
    (3) Adopted any scheme or device for the purpose of depriving any 
tenant or sharecropper of the payments to which such person would 
otherwise be entitled under the program; or
    (4) Misrepresented any fact affecting a program determination.
    (c) If NRCS determines that a participant has violated the terms of 
a program contract, a lead partner has violated the terms of a 
partnership agreement, or a lead partner or nonlead partner has 
violated the terms of a supplemental agreement, NRCS may determine that 
the severity of the violation renders the participant, lead partner, or 
nonlead partner, respectively, ineligible for future NRCS conservation 
program consideration in accordance with applicable suspension and 
debarment regulations.


Sec.  1464.46  Environmental credits for conservation improvements.

    NRCS recognizes that environmental benefits will be achieved by 
implementing eligible activities funded through RCPP, and a participant 
may obtain environmental credits as a result of implementing additional 
eligible activities through an environmental service market if one of 
the purposes of the market is the facilitation of additional 
conservation benefits that are consistent with the purposes of a 
program contract or supplemental agreement. NRCS asserts no direct or 
indirect interest on these credits. However, NRCS retains the authority 
to ensure that operation and maintenance (O&M) requirements for RCPP-
funded eligible activities are met. Where the non-RCPP funded 
additional eligible activities may impact the land under a program 
contract or supplemental agreement, producers and participants are 
highly encouraged to request an O&M compatibility determination from 
NRCS prior to entering into any environmental credit agreements.

Matthew Lohr,
Chief, Natural Resources Conservation Service.
Robert Stephenson,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 2020-01812 Filed 2-12-20; 8:45 am]
 BILLING CODE 3410-16-P