[Federal Register Volume 86, Number 187 (Thursday, September 30, 2021)]
[Notices]
[Pages 54149-54152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-21368]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

[Docket ID: USDA-2021-0010]


Climate-Smart Agriculture and Forestry Partnership Program

AGENCY: Commodity Credit Corporation, Farm Production and Conservation 
Mission Area, Office of Chief Economist, and Department of Agriculture 
(USDA).

ACTION: Request for information.

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SUMMARY: As part of our (USDA) broader efforts on climate change, we 
are requesting information (comments) from the public on a Climate-
Smart Agriculture and Forestry Partnership Program. In response to the 
Executive Order titled Tackling the Climate Crisis at Home and Abroad, 
we published a Federal Register notice on March 16, 2021, to request 
comments on a Climate-Smart Agriculture and Forestry (CSAF) strategy. 
Based on public comments received and our ongoing stakeholder 
engagement activities, we published a progress report in May 2021 on 
the CSAF strategy. As one element of the CSAF strategy, we are 
considering actions to expand the use of climate-smart farming 
practices and aid in the marketing of agricultural commodities. The 
term ``climate-smart commodity'' is used to refer to an agricultural 
commodity that is produced using farming practices that reduce 
greenhouse gas (GHG) emissions or

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sequester carbon. This requested information is intended to help test 
development of a Climate-Smart Agriculture and Forestry Partnership 
Program that could encourage adoption of CSAF practices and promote 
markets for climate-smart commodities. The Climate-Smart Agriculture 
and Forestry Partnership Program could be developed under the authority 
of the Commodity Credit Corporation Charter Act of 1933. This document 
requests comments on priorities and program design of the Climate-Smart 
Agriculture and Forestry Partnership Program that would facilitate the 
expansion of markets for agricultural commodities.

DATES: We will consider comments received on or before 11:59 p.m. (ET) 
on November 1, 2021.

ADDRESSES: We invite you to submit comments on this notice. You may 
submit comments by going to http://www.regulations.gov and searching 
for Docket ID: USDA-2021-0010. Follow the online instructions for 
submitting comments.
    Instructions for submitting comments are provided in the Written 
Comments section below.
    Comments will be available for inspection online at https://www.regulations.gov.
    If you have questions, email them to: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    In response to Executive Order 14008, dated January 27, 2021, and 
titled, Tackling the Climate Crisis at Home and Abroad, we published a 
Federal Register notice on March 16, 2021 (86 FR 14403-14404), to 
request comments on a CSAF strategy. Based on public comments received 
and our ongoing stakeholder engagement activities, we published a 
progress report on the CSAF strategy.\1\ As one element of this 
strategy, we are considering actions to expand the use of climate-smart 
farming practices and aid in the marketing of agricultural commodities. 
The term ``climate-smart commodity'' is used to refer to an 
agricultural commodity that is produced using farming practices that 
reduce GHG emissions or sequester carbon.
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    \1\ The progress report is available at the following link: 
https://www.usda.gov/sites/default/files/documents/climate-smart-ag-forestry-strategy-90-day-progress-report.pdf.
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    We will use the public comments to inform the possible development 
of a USDA Climate-Smart Agriculture and Forestry Partnership Program, 
which could encourage adoption of CSAF practices and promote markets 
for climate-smart commodities. Through this request for information, we 
are requesting suggestions for priorities within the Climate-Smart 
Agriculture and Forestry Partnership Program. The Climate-Smart 
Agriculture and Forestry Partnership Program could be developed under 
the authority of the Commodity Credit Corporation Charter Act of 1933 
(15 U.S.C. 714 Section 5(e).
    The public comments will provide valuable information to USDA, as 
well as the private sector and other stakeholders with interest in and 
expertise relating to the expansion of opportunities for CSAF 
practices, as well as markets for climate-smart commodities.
    New markets for climate-smart commodities provide an opportunity 
and a challenge for U.S. farmers, ranchers, and forest landowners. 
Domestic and international consumers are demonstrating a preference for 
agricultural commodities produced using CSAF practices, creating new 
market opportunities for producers. Markets for climate-smart 
commodities include sustainable supply chain initiatives and internal 
corporate commitments where companies are pledging to reduce emissions 
within their own supply chains and production facilities. Opportunities 
also include markets for low-carbon biofuels and renewable energy. 
Agricultural producers and landowners also have opportunities to market 
GHG reductions generated as a part of climate-smart commodity 
production.
    Despite the opportunity for new or expanded markets for climate-
smart commodities described above, there are barriers that have 
prevented these markets from reaching scale. The barriers include:
     The lack of standard definitions of climate-smart 
commodities;
     Lack of clear standards for measurement of climate 
benefits of CSAF practices;
     Potential for double-counting benefits;
     High transaction costs;
     Limited ability for small producer participation;
     Lack of efficient supply chain traceability; and
     High risk of market entry.
    We are exploring options to reduce and remove barriers currently 
limiting the development of new market opportunities for CSAF practices 
and climate-smart commodities. USDA is requesting comments on options 
for promoting CSAF, including systems for quantification, options, and 
criteria for proposal evaluation, use of information collected, 
potential protocols, and options for review and verification. 
Additionally, we are requesting comments on how U.S. Government action 
might encourage CSAF practices by leveraging private-sector demand and 
providing new income streams for farmers, ranchers, and forest 
landowners.
    We are requesting comments from the public, including, but not 
limited to, comments from:
    1. Farmers and farmer organizations;
    2. Commodity groups;
    3. Livestock producer groups;
    4. Environmental organizations;
    5. Agriculture businesses and technology companies;
    6. Environmental market organizations;
    7. Renewable energy organizations;
    8. Tribal organizations and governments;
    9. Organizations representing historically underrepresented 
producers;
    10. Organizations representing historically underrepresented 
communities, local producers, and micro-producers;
    11. Forest landowners and forest landowner organizations; and
    12. Private corporations.

Written Comments

    Written comments should not exceed 10 pages, inclusive of a 1-page 
cover page as described below. Attachments or linked resources or 
documents are not included in the 10-page limit. Please write 
concisely, in plain language, and in narrative format. You may respond 
to some or all of the questions listed in this document. Please note 
the question to which you are responding in your comment. You may also 
include links to online material or interactive presentations but 
please ensure all links are publicly available. Each comment should 
include:
     The name of the individual(s) and organization submitting 
the comment.
     The question(s) (1, 2, 3, 4, 5, 6, or 7) that your comment 
supports.
     A brief description of the commenter's (individual(s) or 
organization's) mission or areas of expertise, including any public-
private partnerships with Federal, State, tribal, territorial, or local 
governments within the past 3 years that are relevant to this document; 
and
     A contact for questions or other follow-up on your 
comment.
    By commenting in response to this document, each participant 
(individual, team, or legal entity) warrants that they are the sole 
author or owner of, or has the right to use, any copyrightable works 
that are included in the comment,

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that the works are wholly original (or is an improved version of an 
existing work that the participant has sufficient rights to use and 
improve), and that the comment does not infringe any copyright or any 
other rights of any third party of which the participant is aware.
    Participants will not be required to transfer their intellectual 
property rights to USDA, but by providing the comment, the 
participant(s) grants to the Federal government a nonexclusive license 
to apply, share, and use the materials that are included in the 
comment. By providing the comment to the Federal government, each 
participant must warrant that there are no legal obstacles to providing 
the above-referenced nonexclusive licenses of participant's rights to 
the Federal government.
    Interested parties who comment in response to this document may be 
contacted for a follow-up strategic agency assessment dialogue, 
discussion, event, crowdsource campaign, or competition.

Questions

    We are requesting comments relating to the following questions:
    1. How would existing private sector and state compliance markets 
for carbon offsets be impacted from this potential federal program?
    2. In order to expand markets, what should the scope of the 
Climate-Smart Agriculture and Forestry Partnership Program be, 
including in terms of geography, scale, project focus, and project 
activities supported?
    3. In order to expand markets, what types of CSAF project 
activities should be eligible for funding through the Climate-Smart 
Agriculture and Forestry Partnership Program? Projects should promote 
the production of climate-smart commodities and support adoption of 
CSAF practices. Examples may include:
    a. Activities that develop standardized supply chain accounting for 
carbon-friendly products; activities that provide supply chain 
traceability; innovative financing for low-carbon fuel from 
agricultural feedstocks; or green labeling efforts, among others;
    b. Activities that supply grants, loans, and loan guarantees to 
producers for equipment needed to implement CSAF practices, or for 
capital-intensive CSAF technologies;
    c. Activities that test and evaluate standardized protocols that 
define eligible CSAF practices, quantification methodologies, and 
verification requirements, with an emphasis on minimizing transaction 
costs and operating at scale;
    d. Activities that evaluate options for tracking climate-smart 
commodities, including book-and-claim systems and systems to record and 
register the GHG benefits generated through CSAF practices;
    e. Activities that generate voluntary carbon offsets through CSAF 
practices. Within carbon offset markets, the GHG benefit is separated 
from the commodity and sold as a carbon offset credit. Should the USDA 
consider hybrid approaches where the GHG benefit could be assigned to a 
climate-smart commodity, or separated and sold as a voluntary carbon 
offset?
    4. In order to expand markets, what entities should be eligible to 
apply for funding through the Climate-Smart Agriculture and Forestry 
Partnership Program? Given that the administrative costs of the 
Climate-Smart Agriculture and Forestry Partnership Program could be 
high if USDA were to contract with individual producers or landowners, 
it makes more sense to work with groups of producers and landowners. 
For example, eligible entities may include an agricultural producer 
association or other group of producers; State, Tribe, or unit of local 
government; a farmer cooperative; a carbon offset project developer; an 
organization or entity with an established history of working 
cooperatively with producers on agricultural land, as determined by 
USDA (for example, a non-governmental organization); a conservation 
district; and an institution of higher education, including cooperative 
extension;
    5. In order to expand markets, what criteria should be used to 
evaluate project proposals for receiving funding through the Climate-
Smart Agriculture and Forestry Partnership Program?
    a. For example, potential criteria may include estimated GHG or 
carbon sequestration benefits; estimated costs; potential for 
addressing identified barriers for producers; ability to benefit 
underserved producers and early adopters; environmental justice 
benefits; and demonstrated capability to ensure success.
    b. Should USDA establish a consistent payment per ton of GHG 
generated through these partnership projects as part of the project 
payment structure, or evaluate a range of incentive options?
    6. In order to expand markets, which CSAF practices should be 
eligible for inclusion?
    a. What systems for quantification and key metrics should be used 
to assess the benefits of projects funded through the Climate-Smart 
Agriculture and Forestry Partnership Program?
    b. What should the quantification, monitoring, reporting, and 
verification requirements for projects funded through the Climate-Smart 
Agriculture and Forestry Partnership Program be?
    c. What types of systems should be used or supported to track 
participation, implementation, and potential benefits generated?
    d. What types of data and metrics should be collected and reported 
to determine project success and GHG benefits delivered? How should the 
data and metrics be analyzed to inform future decisions?
    7. How should ownership of potential GHG benefits that may be 
generated be managed?
    8. How can USDA ensure that partnership projects are equitable and 
strive to include a wide range of landowners and producers?
    a. How can the Climate-Smart Agriculture and Forestry Partnership 
Program include early adopters of CSAF practices?
    b. How can the Climate-Smart Agriculture and Forestry Partnership 
Program be designed to ensure that benefits flow to historically 
underserved producers?
    c. How can the Climate-Smart Agriculture and Forestry Partnership 
Program be designed to ensure that benefits flow to historically 
underserved communities?
    d. How can the Climate-Smart Agriculture and Forestry Partnership 
Program be designed to ensure that benefits are provided to producers?

USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family or parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior civil rights activity, in any program or activity conducted or 
funded by USDA (not all bases apply to all programs). Remedies and 
complaint filing deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (for example, braille, large 
print, audiotape, American Sign Language, etc.) should contact the 
responsible agency or USDA TARGET Center at (202) 720-2600 or 844-433-
2774 (toll-free nationwide). Additionally, program information may

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be made available in languages other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and 
at any USDA office or write a letter addressed to USDA, and provide in 
the letter all the information requested in the form. To request a copy 
of the complaint form, call (866) 632-9992. Submit your completed form 
or letter to USDA by mail to: U.S. Department of Agriculture, Office of 
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410 or email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Robert Ibarra,
Commodity Credit Corporation, United States Department of Agriculture.
[FR Doc. 2021-21368 Filed 9-29-21; 8:45 am]
BILLING CODE 3410-GL-P