[Federal Register: May 21, 2004 (Volume 69, Number 99)]
[Rules and Regulations]
[Page 29173-29187]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21my04-3]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1415
RIN 0578-AA38
Grassland Reserve Program
AGENCY: Commodity Credit Corporation (CCC), United States Department of
Agriculture (USDA).
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ACTION: Interim final rule with request for comments.
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SUMMARY: The Farm Security and Rural Investment Act of 2002 (2002 Farm
Bill) amended the Food Security Act of 1985, to add the Grassland
Reserve Program (GRP). The purpose of this program is to assist
landowners and others in restoring and protecting eligible grassland
and certain other lands through rental agreements and easements. This
interim final rule sets forth how the Secretary of Agriculture (the
Secretary), using the funds, facilities, and authorities of the
Commodity Credit Corporation (CCC), will implement GRP to meet the
statutory objectives of the program.
USDA made a determination to issue an Interim Final Rule with
request for comments rather than a proposed rule in order to implement
the program in fiscal year 2004 pursuant to this rule. USDA believes it
is critical to put into place a rule that will guide the Department in
implementing the program while at the same time provide the public with
notice regarding how the program will be implemented. USDA also gave
consideration to the fact that GRP implementation will be modeled after
other established conservation programs. USDA is using its experiences
from implementing other similar programs to develop operating
procedures. USDA will consider all comments received when promulgating
a final GRP rule.
DATES: The rule is effective May 21, 2004. Comments must be received by
July 20, 2004.
ADDRESSES: Send comments by mail to Easement Division, Natural
Resources Conservation Service, P.O. Box 2890, Washington, DC 20013-
2890; or by e-mail: FarmBillRules@usda.gov; attn: Grassland Reserve
Program. This rule may also be accessed via Internet through the NRCS
homepage at http://www.nrcs.usda.gov/programs/GRP by selecting ``Farm
Bill'' from the menu, then ``Rules published in the Federal Register,''
and then selecting ``Grassland Reserve Program.'' The rule may also be
reviewed and comments submitted via the Federal Government's
centralized rulemaking Web site at http://www.regulations.gov. All
comments, including the name and address of each commenter, will become
a matter of public record, and may be viewed during normal business
hours by contacting NRCS at the address above.
FOR FURTHER INFORMATION CONTACT: Richard Swenson, Director, Easement
Division, NRCS, P.O. Box 2890, Washington, DC 20013-2890; telephone:
(202) 720-1845; fax: (202) 720-4265; e-mail: richard.swenson@usda.gov,
Attention: Grassland Reserve Program. Persons with disabilities who
require alternative means for communication (Braille, large print,
audiotape, etc.) should contact the USDA Target Center at (202) 720-
2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Regulatory Certifications
Executive Order 12866
The Office of Management and Budget (OMB) determined that this
interim final rule is significant and must be reviewed by the Office of
Management and Budget under Executive Order 12866. USDA conducted a
cost-benefit analysis of the potential impacts associated with this
Interim Final Rule.
Five options for determining State funding levels and their impacts
on enrollment are examined. The first two examine alternatives for
balancing GRP objectives. These options include: The Selected Option,
which balances the amount of grassland, number of livestock operations,
biodiversity, and landowner demand, and a continuation of FY2003
procedures, which is like the Selected Option, except for not giving
consideration to landowner demand. The three additional options examine
the consequences of concentrating on only a single objective, e.g.,
native grasslands.
The Selected Option allocates State funding as a function of State
number of grazing operations, acres of grassland under the threat of
conversion, bio-diversity considerations, and State demand for funds,
as measured by the number of offers for the GRP. This process is the
same used in FY2003, except it includes consideration of interest
within a State for demand for funds. This last component addresses high
FY2003 participation demand.
Although the Selected Option enrolls fewer grasslands than some
other options, the Selected Option distributes funds to States based on
the number of grazing operations, the threat of grassland conversion to
other uses, and a bio-diversity index, recognizing the implicit
equality given the three program objectives by the statute. The demand
component was used to capture producer willingness to participate and
the quality of offers. Because this option balances the three statutory
objectives, no single objective is maximized.
Copies of the analysis may be obtained from Richard Swenson,
Director, Easement Division, NRCS, P.O. Box 2890, Washington, DC 20013-
2890; telephone: (202) 720-1845; fax (202) 720-4265; e-mail:
richard.swenson@usda.gov, Attention: Grassland Reserve Program and
electronically at http://www.nrcs.usda.gov/programs/GRP/.
Federal Crop Insurance Reform and Department of Agriculture
Reorganization Act of 1994
Pursuant to section 304 of the Federal Crop Insurance Reform Act of
1994 (Pub. L. 103-354), USDA classified this rule as non-major.
Therefore, a risk analysis was not conducted.
Regulatory Flexibility Act
The Regulatory Flexibility Act is not applicable to this Interim
Final Rule because the Commodity Credit Corporation (CCC) is not
required by 5 U.S.C. 553, or by any other provision of law, to publish
a notice of proposed rulemaking with respect to the subject matter of
this rule.
Small Business Regulatory Enforcement Fairness Act of 1996
This Interim Final Rule is not a major rule as defined by section
804 of the Small Business Regulatory Enforcement Fairness Act of 1996.
This Interim Final Rule will not result in annual effect on the economy
of $100 million or more, a major increase in costs or prices, or
significant adverse effects on competition, employment, investment,
productivity, innovation, or the ability of U.S.-based companies to
compete in domestic and export markets.
Environmental Analysis
An Environmental Assessment (EA) has been prepared to assist in
determining whether this Interim Final Rule would have a significant
impact on the quality of the human environment such that an
Environmental Impact Statement (EIS) should be prepared. Based on the
results of the EA, USDA proposes issuing a Finding of No Significant
Impact (FONSI) before a final rule is published. Copies of the EA and
FONSI may be obtained from Andree DuVarney, National Environmental
Specialist, Ecological Sciences Division, Natural Resources
Conservation Service, P.O. Box 2890, Washington, DC 20013-2890. The GRP
EA and FONSI will also be available at the following Internet address:
http://www.nrcs.usda.gov/programs/GRP. Written comments on the EA and
FONSI should be sent to Andree DuVarney, National Environmental
Specialist, Ecological Sciences Division, Natural Resources
Conservation Service, P.O. Box 2890, Washington, DC 20013-2890, or
submit them via the Internet to andree.duvarney@usda.gov.
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Paperwork Reduction Act
Section 2702 of the Farm Security and Rural Investment Act of 2002
requires that the implementation of this provision be carried out
without regard to the Paperwork Reduction Act, Chapter 35 of title 44,
United States Code. Therefore, USDA is not reporting recordkeeping or
estimated paperwork burden associated with this Interim Final Rule.
Government Paperwork Elimination Act
NRCS is committed to compliance with the Government Paperwork
Elimination Act (GPEA) and the Freedom to E-File Act, which require
government agencies in general, and NRCS in particular, to provide the
public the option of submitting information or transacting business
electronically to the maximum extent possible.
Civil Rights Impact Analysis
USDA has determined through a Civil Rights Impact Analysis that the
issuance of this rule discloses no disproportionately adverse impacts
for minorities, women, or persons with disabilities. Copies of the
Civil Rights Impact Analysis is available, and may be obtained from
Richard Swenson, Director, Easement Division, Natural Resources
Conservation Service, P.O. Box 2890, Washington, DC 20013-2890, and
electronically at http://www.nrcs.usda.gov/programs/GRP.
Executive Order 12988, Civil Justice Reform
This Interim Final Rule has been reviewed in accordance with
Executive Order 12988, Civil Justice Reform. The rule is not
retroactive and preempts State and local laws to the extent that such
laws are inconsistent with this rule. Before an action may be brought
in a Federal court of competent jurisdiction, the administrative appeal
rights afforded persons at 7 CFR parts 614, 780, and 11 must be
exhausted.
Executive Order 13132, Federalism
This Interim Final Rule has been reviewed in accordance with the
requirements of Executive Order 13132, Federalism. USDA has determined
that the rule conforms to the federalism principles set forth in the
Executive Order; would not impose any compliance cost on the States;
and would not have substantial direct effects on the States, on the
relationship between the Federal Government and the States, or on the
distribution of power and responsibilities on the various levels of
government.
Unfunded Mandates Reform Act of 1995
Pursuant to Title II of the Unfunded Mandates Reform Act of 1995, 2
U.S.C. 1531-1538, USDA assessed the effects of this rulemaking action
of State, local, and tribal governments, and the public. This action
does not compel the expenditure of $100 million or more by any State,
local, or tribal government, or anyone in the private sector;
therefore, a statement under section 202 of the Act is not required.
Background
Historically, grassland and shrublands occupied approximately one
billion acres, about half the landmass of the 48 contiguous United
States (Richard Conner, Texas A&M, June 2001). Roughly 50 percent of
these lands have been converted to cropland, urban land, and other land
uses. Privately owned grasslands (pastureland and rangeland) cover
approximately 526 million acres in this country (1997 National Resource
Inventory (NRI)). Grasslands provide both ecological and economic
benefits to local residents and society in general. Grassland
importance lies not only in the immense area covered, but also in the
diversity of benefits they produce. These lands provide water for urban
and rural uses, livestock products, flood protection, wildlife habitat,
and carbon sequestration. These lands also provide aesthetic value in
the form of open space and are vital links in the enhancement of rural
social stability and economic vigor, as well as being part of the
Nation's history.
Grassland loss through conversion to other land uses such as
cropland, parcels for home sites, invasion of woody or non-native
species, and urban development threatens grassland resources. About 24
million acres of grasslands and shrublands were converted to cropland
or non-agriculture uses between 1992 through 1997 (1997 National
Resource Inventory).
In Fiscal Year (FY) 2003, GRP was implemented through a notice of
funds availability published in the Federal Register on June 13, 2003
(See Federal Register Vol. 68, No. 114). The document explained that in
FY 2003, CCC intended to use GRP to protect grazing lands from
conversion, and support efforts to maintain or enhance biodiversity.
The Secretary has delegated authority to implement GRP jointly to
the Administrator, Farm Service Agency (FSA), and the Chief, Natural
Resources Conservation Service (NRCS). In addition, limited
responsibilities associated with easement management and general
program development have been delegated to the Forest Service (FS).
Activities identified in this interim rule as being conducted by the
USDA or the CCC will be performed by representatives of these three
agencies, as appropriate.
The GRP rental agreements and easements are designed for working
agricultural lands. Therefore, the program provides incentives to
protect grassland resources while enabling agricultural producers to
use the forage in their agricultural operation. There are multiple
enrollment duration options for both the rental agreements and
easements.
In the 2002 Farm Bill Managers' Report, Congress recommended that
the GRP enrollment process be modeled after the Conservation Reserve
Program (CRP), 16 U.S.C.3835a and the Wetlands Reserve Program (WRP),
16 U.S.C.3837 et seq. Like the CRP Continuous Sign-up and the WRP,
applications for program enrollment in GRP can be filed at any time
throughout the year. Application selection is based on ranking and
selection criteria developed at the State level, following broad
National guidelines. Although the GRP rental agreements are for working
lands, the rental agreements are modeled after the CRP long-term rental
contracts. Likewise, the easement acquisition process is similar to
that used in the WRP. With both GRP easements and rental agreements,
participants will have the opportunity to utilize common management
practices to maintain the viability of the grassland acreage.
The Secretary evaluated whether the GRP could be administered by
partnering with third parties to acquire easements, similar to the Farm
and Ranch Lands Protection Program, 16 U.S.C. 3838h and 3838i, and
concluded that the GRP statute does not provide authority to do so.
The GRP statute provides broad land eligibility criteria regarding
the type of grasslands that can be enrolled in the program. USDA
proposes in this regulation to emphasize program implementation to
preserve the Nation's most critical grassland resources, both native
and natural grasslands, and shrublands.
Discussion of the Program
The Grassland Reserve Program (GRP) is a voluntary program to
assist landowners and agriculture operators in restoring and protecting
grassland and land that contains forbs and shrublands. The Secretary of
Agriculture delegated the authority to administer GRP on behalf of the
Commodity Credit Corporation, to the Chief, Natural
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Resources Conservation Service (NRCS) and the Administrator, Farm
Service Agency (FSA). These agency leaders are Vice Presidents of the
CCC. NRCS has the lead responsibility on technical issues and easement
administration, and FSA has the lead responsibility for rental
agreement administration and financial activities. The Secretary also
delegated authority to the Forest Service to hold easements at the
option of the landowner, on properties adjacent to USDA Forest Service
properties. At the State level, the NRCS State Conservationist and the
FSA State Executive Director will determine how best to utilize the
human resources of both agencies to deliver the program and implement
National policies in an efficient manner.
The program has a statutory enrollment cap of two million acres of
restored or improved grasslands. USDA may enroll an excess of two
million acres in the program, providing the additional acreage does not
require restoration, and the program has sufficient funding. The
statute also requires that 40 percent of the program funds be used for
10-year, 15-year, and 20-year rental agreements, and 60 percent of the
funds be used for 30-year rental agreements and easements.
As defined in this rule, the term ``restoration'' not only includes
restoring grassland from cropland and other uses, but it also refers to
improving lands with existing stands of grasses, forbs, and shrubs.
USDA has defined ``restoration'' as the implementation of any
conservation practice (vegetative, management, or structural) that
improves the values and functions of grasslands (native and natural
plant communities). The term ``improves'' in this context means taking
an existing grassland and moving it toward a higher functioning
grassland condition. The definition of restoration is found in section
1415.3 of this rule. This regulation does not define the required
restored condition in order to allow for flexibility in making such
determinations at the local level in accordance with local conditions
and desired outcomes. USDA recognizes that restoration includes the
process of establishing practices and managing the land to reach a
desired grassland condition. Enrolled lands will require periodic
manipulation to maximize wildlife habitat and preserve grassland
functions and values over time. The ``restored'' grassland condition
will be determined by the NRCS State Conservationist, with input from
the State Technical Committee.
GRP enrollment options include easements with various durations,
including 30 years, permanent, or for the maximum duration allowed
under State law; or rental agreements with a duration of 10-, 15-, 20-,
or 30-years. Participants can enter into a restoration agreement in
conjunction with either an easement or rental agreement, at the
discretion of the USDA and if desired by the participant, to restore
the ecological functions and values of these lands. The GRP statute
does not authorize USDA to use restoration agreements as a stand-alone
enrollment option.
As set forth in section 1415.5, land is eligible if it is privately
owned land, including tribal land, and it is: (1) Grassland, land that
contains forbs, or shrubs (including rangeland and pastureland); or (2)
located in an area that has been historically dominated by grassland,
forbs, and shrubs and has potential to provide habitat for animal or
plant populations of significant ecological value if the land is
retained in the current use of the land or restored to a natural
condition. Lands incidental to the above described eligible lands may
also be enrolled if the Secretary determines enrollment of such land is
necessary for the efficient administration of a rental agreement or
easement. Privately owned land does not include land owned by the
Federal, State, or local government.
USDA, at the State level, based on national guidance, shall
establish criteria to evaluate and rank applications for easements and
rental agreements as outlined in this regulation at section 1415.8. As
required by statute, emphasis will be placed on supporting grazing
operations, plant and animal biodiversity, and grassland and land
containing shrubs or forbs under the greatest threat of conversion.
USDA evaluated the following two approaches for allocating funds to
projects. One approach is to allocate funds to States using a formula
that incorporates factors associated with the program's areas of
emphasis. Under this approach, each NRCS State Conservationist and the
FSA State Executive Director would be given the responsibility to
develop, within broad national guidelines and with input from State
Technical Committees, ranking criteria against which to evaluate and
select applications for funding.
Another approach is to develop national criteria and have all
applications evaluated and selected nationally. Allocations would not
be provided to States. USDA has used both approaches when implementing
other conservation programs. Based on its experience with implementing
GRP in fiscal year 2003, USDA is adopting the approach of allocating
funds to States for selection of projects at the State level. This
approach allows USDA to enhance its ability to address State grassland
concerns, as well as enable States to use all conservation programs in
a coordinated effort to address grassland concerns, giving
consideration to the entire ecosystem. USDA recognizes that this
approach results in some differences between State ranking criteria,
and that it may be more challenging to address specific national
priorities. USDA welcomes comments on this decision. State ranking
criteria will be available to the public through local USDA service
centers or on the NRCS Grassland Reserve Program web site. See http://www.nrcs.usda.gov.
Select ``Programs'' from the menu, then ``Grassland
Reserve Program.'' Anyone having comments on the 2003 State ranking
criteria should refer the comments to the respective NRCS State
Conservationist or FSA State Executive Director located in the USDA
State Office. Addresses for the State offices are available at http://www.fsa.usda.gov/pas/default.asp.
Select ``Your State Office'' from the
menu bar.
USDA seeks public comment on the criteria and weighting factors
that should be used to allocate funds to States, and the national
guidance from which States develop their individual ranking criteria.
In particular, USDA asks that respondents provide information on
credible data that is national in scope related to grassland plant and
animal biodiversity. The current allocation formula, developed by USDA
at the national level, includes data from the NRI regarding pasture and
rangeland conversion, prime farmland used as range or pasture, and
total range and pastureland acreage. From agriculture statistics USDA
uses data regarding agriculture operations. USDA also includes
information from the U.S. Fish and Wildlife Service about threatened
and endangered plant and animal species. The data was categorized as
either being a biodiversity, conversion, or grazing operation factor.
In addition, now that USDA has collected program demand data from the
2003 signup, there will be a demand factor included in the State
allocation formula. Program demand data is expressed in terms of total
applications received, total acres offered for enrollment, and total
estimated cost of applications received. For fiscal year 2004 and
beyond, demand may be reflected in terms of applications received,
acreage associated with such applications, funding needs associated
with unfunded applications, or a
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combination of all three. USDA intends to provide equal weight to each
area of emphasis (grazing operations, threat of conversion, and
biodiversity of plants and animals) and the demand category in the
allocation formula.
Once USDA State offices receive their allocation, FSA and NRCS, at
the State level, will determine the distribution of funds within the
State, with input from the State Technical Committee. FSA and NRCS may
allocate funds to regions based on natural resource priority,
distribute funds for easements and rental agreements based on landowner
interest in the various enrollment options, or establish funding pools.
If a State office lacks funds to enroll an entire project, the
applicant will be provided the opportunity to reduce the amount of land
offered, or change the duration of the enrollment option, providing the
ranking score is not lowered below the score of the next application on
the ranking list. If the applicant declines adjusting the offered
acreage level, the USDA at the State level can accept the next eligible
application on the list of unfunded applicants.
Easements
Section 1415.4 provides that for participation in an easement
option, the applicant must be the owner of the eligible land. To grant
an easement to the United States, the landowner must possess clear
title to the land or be able to provide subordination agreements from
third parties with interest in the land, and provide access to the
property from a public road. The landowner must comply with the terms
of the easement and associated restoration agreement, if one is
required.
Easement payments are based on the current market value of the land
less the grazing value of the land encumbered by the easement. Under
the terms of the easement, in addition to the use of the forage, the
landowner retains the right to grassland uses so long as such use is
compatible with maintaining the viability of the grassland resources.
In addition to grazing, haying, mowing, and seed production, other uses
may include hunting, fishing, hiking, camping, bird watching, and other
non-motorized recreational activities. Since landowners retain certain
rights to grassland resources, for appraisal purposes, grazing value
has been defined as grassland value. Land values will be determined
through a site-specific appraisal. For 30-year easements, or an
easement for the maximum duration allowed under State or tribal law, a
landowner receives 30 percent of the appraised value for a permanent
easement. Easement payments may be provided in one lump sum payment at
the time of closing or participants may elect to receive installment
payments. Participants who elect to receive installment payments can
receive no more than 10 annual payments of equal or unequal amount, as
agreed to by the USDA and the landowner.
USDA has developed a standard conservation deed that the United
States will use for all easements purchased under GRP. A copy of the
deed may be viewed at http://www.nrcs.usda.gov.
Subsurface Resource Concerns
In promulgating this rule, USDA considered whether the exploration
and development of subsurface resources was compatible with the purpose
of GRP. The GRP statute provides that the conduct of any activity that
would disturb the surface of the land covered by the GRP easement or
rental agreement is prohibited, except for restoration, fire
rehabilitation, and construction of fire breaks. Therefore, the
extraction of subsurface resources is prohibited on all lands
participating in GRP. However, subsurface resource exploration and
extraction is permissible when it is accomplished remotely, that is
from adjacent land not covered by a GRP easement, and when it does not
result in subsidence or any other adverse effects to the surface
estate. USDA finds the extraction of certain materials, such as gravel,
to be inconsistent with the purposes of the program. USDA contemplated
appraising land based on surface rights alone, but determined that this
appraisal method prohibits USDA from restricting the disturbance of the
surface when such rights are owned by the GRP participation landowner.
Therefore, the easement appraisal will consider full market value
rather than surface value, in those instances where the applicant owns
the rights to the surface and subsurface estate.
For rental agreements, USDA is adopting subsurface resource policy
similar to that of the Conservation Reserve Program. If the subsurface
resources are severed and the owner of such rights decides to extract
the resources, the affected land will be terminated from the rental
agreement with no penalty to the participant. If the rights are not
severed and the landowner participant exercises such rights, the
participant will have to refund to the USDA payments received on the
affected acres.
Rental Agreements
Section 1415.4 provides that landowners and other people who have
general control of property may apply for enrollment in rental
agreements through GRP. Applicants who are not landowners need to
provide evidence of control of the property for the length of the
agreement. If rental agreement payments are to be divided between the
landowner and other participants or multiple landowners, the rental
agreement will need to be signed by all parties, indicating their
respective share of the payments.
As required by statute, rental payment amounts will not exceed 75
percent of the grazing value for the length of the agreement. Rental
payments will be paid annually after the anniversary date of the
agreement. Local grazing values are determined based on a methodology
developed for the CRP using estimated forage production by soil type
and knowledge of local rental rates. USDA will make administrative
adjustments to local rates in areas where there is a dramatic
difference between county rates. County rental rates will be posted in
USDA Service Centers after being evaluated locally by USDA
representatives to determine whether the rates generally reflect local
prevailing rental rates. There may be some significant differences
within a State due to elevation changes and precipitation variability.
Persons who participate in a rental agreement may offer the land
for an easement, providing the duration of the easement exceeds the
duration of the rental agreement, the application ranks high enough to
be funded, all other eligibility criteria are met, and funds are
available to acquire an easement. The easement application will be
considered a new offer that will be evaluated with all other new
offers. The rental agreement will be terminated upon easement closing.
This policy allows USDA to obtain longer term protection on lands
considered valuable for enrollment. This policy will apply to those
individuals who signed up for a rental agreement in FY2003 and
subsequent years.
Provisions That Apply to Both Easements and Rental Agreements
Program participants are subject to the Adjusted Gross Income
Limitation set forth at 7 CFR part 1400. In summary, this limitation
provides that individuals or entities that have an average adjusted
gross income exceeding $2.5 million for the three tax years immediately
preceding the year the contract is approved are not eligible to receive
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program benefits or payments, unless 75 percent of the adjusted gross
income is derived from farming, ranching, or forestry operations.
Easement or rental agreement payments received by a participant shall
be in addition to any payments that the participant is otherwise
eligible to receive under other Federal laws.
As required by statute, easements and rental agreements will:
(1) Permit grazing on the land in a manner that is consistent with
maintaining the viability of the grassland, shrubs, forbs, and habitat
for wildlife species adapted to the locality.
(2) Permit haying, mowing, or harvesting for seed production,
except during the nesting season for birds in the local area that are
in significant decline. When bird species are identified by USDA as
needing protection during the nesting season, mowing, haying, and
harvesting of grass seed will be permitted as determined by the NRCS
State Conservationist in accordance with Federal and State law. In
making this determination, NRCS will consult with the State Technical
Committee, which includes representation from appropriate State and
Federal agencies.
(3) Allow for fire rehabilitation and construction of firebreaks,
fences, watering facilities, and practices that protect and restore the
grasslands functions and values.
(4) Prohibit the production of row crops, fruit trees, vineyards,
or any other agricultural commodities or activity that requires
disturbance of the soil surface, except for those activities permitted
above. Grassland and wildlife management practices and restoration
activities that require disturbing the soil surface, such as light
discing, will be permitted at the discretion of USDA.
Both GRP easements and rental agreements will require that the land
is managed to maintain the vitality of the plant community as described
in the conservation plan. The plan will take into account management
practices necessary for the control of invasive species. At the
discretion of USDA and subject to funding availability, landowners may
include a restoration agreement with both enrollment options that will
provide for: maintaining the viability of the grassland; sufficient
ground cover to protect the soil from wind and water erosion; forage
production for grazing animals, and wildlife habitat. The grassland
restoration plan will be implemented according to the schedule
developed by USDA. Restoration agreements will provide cost-share
assistance for installing practices that will restore or protect the
functions and values of the grassland and shrubland. In addition to
reestablishing desirable grass cover, restoration practices may include
practices associated with grazing management, or other management
activities designed to preserve grassland acreage, such as controlled
burns. The GRP statute provides that payments may be made to the
participant of not more than 90 percent for the cost of carrying out
restoration measures and practices on grassland and shrubland that has
never been cultivated, and not more than 75 percent on restored
grassland and shrubland that at one time was cultivated. Cost-shared
practices shall be maintained by the participant for the life of the
practice. The life of the practice is determined by the NRCS State
Conservationist, and shall be consistent with other USDA conservation
programs. All conservation practices will be implemented in accordance
with the NRCS Field Office Technical Guide.
Summary of Provisions and Request for Comment
USDA welcomes comments on all aspects of this Interim Final Rule.
The following describes the specific requirements in each section of
the regulation. Activities identified in this regulation as being
conducted by USDA or the CCC, will be performed by representatives of
either the Farm Service Agency, the Natural Resources Conservation
Service, or the U.S. Forest Service. Additionally, USDA fully intends
to use the services of third party providers identified in 7 CFR part
652.
Section 1415.1 Purpose
This section sets forth the purpose and objectives of the program.
In carrying out this program, the Secretary will focus GRP resources on
the following:
1. Preserving native and natural grasslands and shrublands;
2. Protecting grassland and shrubland from the threat of
conversion; conversion refers to all threats, including conversion to
non agriculture uses, conversion to cropland, and vegetation changes to
non-grassland covers;
3. Supporting grazing operations; and
4. Maintaining and improving plant and animal biodiversity.
The Secretary has determined that it makes sense to focus the
program on those grasslands and shrublands that are at greatest risk of
being lost. Therefore, the overall program emphasis will be on
preserving native and natural species.
After completing the FY 2003 sign-up, USDA received feedback from
conservation organizations and Congressional representatives that GRP
should focus on restoring and protecting native and natural grasses,
shrubs, and forbs. The statute identifies eligible land as grassland,
land that contains forbs, or shrubland. It does not identify whether
the program should emphasize native species, nor does it exclude
certain types of grassland or shrublands from being enrolled in the
program. However, USDA recognizes that grassland and shrublands that
are native support an abundant diversity of plant and animal species
along with other attributes. Once native grassland or shrubland is
converted, it is often impractical, and sometimes impossible, to
restore the land with its many attributes back to its original state.
In many areas of the country where it is impractical to restore native
plant species, other nonnative species have been used to serve similar
purposes. Consequently, USDA proposes to emphasize protecting those
eligible lands that consist of native and natural species.
Conservation organizations and Congressional representatives also
expressed that USDA should use the Farm and Ranch Lands Protection
Program (FRPP) to protect land subject to urban conversion pressures,
and that GRP should focus on lower cost land subject to other
conversion pressures outside of developing urban areas. These concerns
primarily result from the high cost of easements in urban areas. The
Secretary has the authority through FRPP, not GRP, to leverage Federal
funds with non-Federal funds. The GRP statute does not provide the
Secretary the flexibility to offer easement applicants amounts lower
than the fair market value less the grazing value, nor does the USDA
have the authority to share with other third parties the cost of
acquiring easements. Therefore, the Secretary has been contemplating
how the implementation of these two easement programs should fit
together. When considering the scope of eligible lands, the amount of
interest expressed by people to participate in GRP (approximately
13,000 applications offering 8.9 million acres received in FY 2003),
and the limited GRP funding, the Secretary determined that USDA can
preserve far greater grassland resources if GRP focuses on non-urban
lands. The Secretary recognizes that in some States the primary threat
to grassland is urban development, and that GRP rental agreement
payment rates will provide little incentive to keep the acreage in
grass cover. Since easement costs in areas with intense urban pressures
tends to be quite high on a per acre basis, and
[[Page 29179]]
FRPP is able to leverage a large percentage of funds with non-Federal
sources while GRP cannot, the Secretary may utilize FRPP easements to
the extent practical on lands under extreme threat of conversion to
non-agricultural uses. However, the focus of FRPP will remain
protecting lands for broad agricultural use, including cropland. The
Secretary intends to take a common sense approach to implementing both
programs, and where it is more appropriate or strategically
advantageous to protect important grassland in urbanizing areas, the
USDA may use GRP to purchase easements in those areas. USDA State
offices will be provided the flexibility to minimize the enrollment of
high cost projects by considering cost in the State ranking criteria.
Section 1415.2 Administration
This section includes language on general program administration
and policy that sets forth the role of the State Technical Committee in
the development of criteria for ranking and selecting applications and
addressing related technical and policy matters in the implementation
of the program.
Section 1415.3 Definitions
This section defines terms used throughout the proposed rule. Some
of the terms in this section such as Administrator, Chief, Commodity
Credit Corporation, Cost-share, Department, etc., are not unique to
GRP, and the definitions are consistent with definitions in other
program regulations. For other terms, such as grassland value, grazing
value, restored grassland, restoration etc. this section defines how
these terms will be utilized for GRP.
Section 1415.4 Program Requirements
In this section, USDA identifies the requirements for participation
in GRP. Earlier in the preamble Sec. 1415.4(a) was referenced
regarding ownership requirements. Section 1415.4(c) requires that
participants follow a conservation plan that maintains the viability of
the grassland regardless of the grassland use. The Secretary has
determined that such a requirement is needed to carryout the purposes
of GRP (see 16 U.S.C. 3830o). The level of restoration or management
required in a conservation plan is established by the NRCS State
Conservationist in each State, with input from the State Technical
Committee.
USDA is seeking input regarding GRP project management. Under this
rule, USDA is requiring participants to manage the GRP acreage to move
toward a certain natural resource condition without requiring that
certain species of grasses, shrubs, or forbs be planted. This policy
makes sense considering the general purpose of the authorizing statute
on land eligibility and the high cost of reestablishing native grasses
in some settings. Management requirements may change over the life of
the easement or rental agreement based on the natural resource response
to such activities. Since the GRP statute is not specific about the
types of land that should be enrolled in the program, once land has
been accepted into the program USDA seeks input on whether a
participant should be able to maintain the current cover even if it
contains a monoculture of a less desirable species, or whether a
participant should be required to manage the property to move toward a
certain natural resource condition. USDA is reluctant to require
participants to fully restore project acreage to native species because
of the extreme cost, and in some localities, it is impractical to do
so. However, in instances where a grassland cover does not exist,
participants will be required to establish a grassland cover with
either native or natural species to the extent it is practical, as
determined by the NRCS State Conservationist.
Section 1415.5 Land Eligibility
The language in this section identifies eligible land as defined in
the GRP statute. The GRP statute does not restrict the amount of
acreage a landowner can offer for the program or the maximum payment a
person can receive over the life of the contract or otherwise. The
statute does provide for a minimum acreage enrollment level.
Section 1415.5(d) provides that 40 contiguous acres is the minimum
acreage offer that will be accepted in the program, however, less than
40 acres may be accepted if USDA grants a waiver. USDA recognizes that
some grassland habitat is considered irreplaceable and thus has
determined to provide States the discretion to determine when the 40
acre minimum requirement will be waived. Decisions associated with this
waiver should be granted based on input from the State Technical
Committee and local natural resource concerns. USDA policy is to ensure
that NRCS State Conservationists make this determination based on all
the purposes of GRP as provided for in Sec. 1415.1. State
Conservationists may consider establishing separate funding pools based
on offer size.
USDA considered providing States greater flexibility to set minimum
acreage levels in States where there is a strong interest in preserving
very large blocks of grassland and offers below a certain level have
virtually no chance of being accepted into the program due to intense
competition. However, the statute directs which lands are eligible for
consideration under GRP. Accordingly, rather than establish policy that
impacts eligibility, USDA determined to address this issue through the
ranking criteria at the State level. Allowances shall be made to ensure
the ranking criteria does not discriminate against small or limited
resource producers. USDA will periodically review the types of projects
being enrolled and compare those projects with the applications being
submitted for participation to evaluate whether small or limited
resource producers are being routinely prohibited from participating in
the program.
Section 1415.5(f) makes land ineligible if it is already protected
by an easement or contract that requires the GRP applicant to maintain
the grassland resources. If the existing easement or agreement is with
USDA or with a program funded through USDA, USDA will look to the
program rules of the existing contract or the terms of the easement to
determine whether such agreement can be canceled in order to enroll the
land in GRP. This policy was determined because it is not fiscally
responsible to pay someone twice for the same natural resource
protection. USDA welcomes comment on this policy, especially as it
relates to the relationship between GRP and the Conservation Reserve
Program, Environmental Quality Incentives Program and the Wildlife
Habitat Incentives Program.
Section 1415(g) of the Interim Final Rule addresses the issue of
third party ownership of subsurface mineral rights on land proposed for
enrollment under a rental agreement or an easement. Specifically, this
rule provides that such lands may be enrolled in GRP. If the third
party exercises such rights during the agreement period, the agreement
will be terminated without penalty on the affected land. The land may
be reoffered for the program at a later date if the grassland resources
are restored, subject to eligibility rules and funding at that time.
For easement enrollment, such lands may only be offered if the third
party subordinates its rights to the resources or if USDA determines
that the risk to the grassland resources is minimal if such rights are
exercised (i.e., would not undermine the conservation purposes of the
easement).
Section 1415.6 Participant Eligibility
This section sets forth the eligibility for participation in GRP.
Only landowners may participate in the
[[Page 29180]]
easement option, because only landowners have the ability to convey
property rights. Both landowners and tenants can participate in the
rental agreement enrollment options. However, if a tenant wishes to
participate without a landowner, the tenant must provide evidence of
control for the duration of the agreement period.
Since the GRP is a Title XII program, all participants are subject
to the conservation compliance requirements found in 7 CFR, part 12.
Section 1415.7 Application Procedures
This section provides general information about the application
process. Interested applicants can file an application at any time with
their local USDA Service Center.
Section 1415.8 Establishing Priority for Enrollment of Properties
This section sets forth policy for developing the ranking and
evaluation criteria. The GRP statute directs the Secretary to emphasize
support for grazing operations, plant and animal biodiversity, and the
threat of conversion in project selection. It does not give guidance
about whether any of these factors should be given greater
consideration than the others.
As discussed earlier in the preamble, USDA is placing a priority on
protecting native or natural grassland and shrubland in the ranking
process to the extent practical, and it is providing States the
flexibility to develop ranking criteria that may encourage participants
to restore their land back to a natural or native plant community. Land
not currently in grass or shrubs that needs to be reseeded back to a
grassland or shrubland may be eligible for the program if the applicant
agrees to reseed the land back to its historically dominated grassland,
shrubland, or forb plant community. However, if it can be demonstrated
that reseeding to appropriate introduced plant species has potential to
serve as habitat for animal or plant populations of significant
ecological value, such land may be enrolled in the program and
reseeding can take place through a GRP restoration agreement. Lower
enrollment priority may be given to smaller parcels, especially in
States where protecting larger grassland parcels is more desirable from
an administrative and environmental standpoint. By prioritizing the
types of eligible land for funding, USDA seeks to secure maximum
conservation benefits for the Federal dollar expended. USDA is seeking
specific comments on this decision.
USDA does provide its offices at the State level, the flexibility
to establish one or more ranking pools. Although each pool will use the
State established ranking criteria, the projects within one pool will
only compete with similar projects. USDA, at the State level, may
determine the portion of its funds to direct to each established
ranking pool. Ranking pools will be established prior to conducting a
signup.
Section 1415.9 Enrollment of Easements and Rental Agreements
This section describes the process for enrollment in GRP which is
similar to that used for the Conservation Reserve Program for rental
agreements and the Wetlands Reserve Program for easements. This
approach was suggested by Congress in the Managers Report to the
authorizing statute. For rental agreement projects, land is considered
enrolled when the rental agreement is approved by USDA. For easement
projects, land is considered enrolled when a landowner accepts a letter
of tentative acceptance by signing documentation that indicates the
landowner's intent to continue with the project.
Section 1415.10 Compensation for Easements and Rental Agreements
This section sets forth the methodology for determining
compensation for both easements and rental agreements. For rental
agreements, the statute at 16 U.S.C. 3838p requires that USDA pay
participants not more than 75 percent of the grazing values. For the FY
2003, signup period grazing values for rental agreements were
determined administratively based on compensation rates for the
Conservation Reserve Program. Rates were established for each county,
rather than on a site specific basis. This process enabled USDA to post
compensation rates for public information and minimized the
administrative burden at the field level for USDA employees.
The statute provides at 16 U.S.C. 3838p that easement compensation
rates be determined based on the fair market value of the land, less
the grazing value of the land encumbered by the easement. USDA will use
certified land appraisers to develop easement compensation rates on a
site specific basis. USDA recognizes that in certain parts of the
country, the cost of acquiring easements may be considerable.
Therefore, the Secretary evaluated alternatives to minimize the per
acre cost of enrolling projects in the program, such as establishing
maximum payment rates or contract limits. However, the Secretary
determined the statute, by requiring a fair market valuation, does not
permit a non-appraisal approach to valuing conservation easements.
Section 1415.11 Restoration Agreements
This section sets forth the terms and conditions under which USDA
will enter into a restoration agreement. GRP does not have the
authority to enroll land in restoration agreements as a separate,
stand-alone enrollment option. Consequently, USDA will only enter into
restoration agreements in conjunction with easements and rental
agreements at the discretion of USDA, subject to available funding, and
when it is supported by the participant.
Eligible practices include land management, vegetative, and
structural practices and measures that will improve the grassland and
shrubland ecological functions. Specific practices eligible for payment
will be determined by the USDA at the State level with advice from the
State Technical Committee. Limitations on cost-share rates set forth in
this rule are those provided for in the GRP statute at 16 U.S.C. 3838p.
Section 1415.12 Modifications
This section describes when easements and rental agreements may be
modified. For both easements and rental agreements, modifications may
be made to the conservation plan by mutual agreement between the USDA
and the participant as changes occur in the participant's operation and
land management strategy. However, any modification must continue to
ensure the viability of the grassland, and meet the other objectives of
the GRP.
Section 1415.13 Transfer of Land
This section discusses the impact of transferring ownership or
control of land enrolled in GRP.
Section 1415.17 Easement Administrative Delegations to Third Parties
The GRP statute at 16 U.S.C. 3838q provides that the Secretary may
permit a private conservation or land trust organization, or a State
agency to hold and enforce an easement, in lieu of the Secretary,
subject to the right of the Secretary to conduct periodic inspections
and enforce the easement. The Secretary has interpreted the word
``hold'' in this context to mean ``administer.'' Prior to permitting an
approved third party to hold and enforce an easement, USDA must
determine that granting such permission
[[Page 29181]]
will result in the protection of grassland, land that contains forbs,
and shrubland; the owner authorizes the third party to hold and enforce
the easement; and the third party agrees to assume the costs incurred
in administering and enforcing the easement, including the costs of
restoration or rehabilitation of the land as required by the landowner
and the third party. The intent is not to have the third party cover
the costs of natural resource practices required through GRP. However,
the third party must cover costs of practices that it requires above
what is required by GRP. The third party must submit its intent to
impose these additional requirements to USDA to determine whether they
are consistent with the conservation purposes of the easement.
In GRP, the Secretary administers the easement on behalf of the
United States, and may delegate the easement administrative
responsibilities to a private organization or State agency under
certain conditions. However, the GRP statute does not provide authority
for the Secretary to convey property rights acquired under the
authority of the GRP statute.
This section provides that certain private organizations, as set
forth in the statute, and State agencies interested in managing and
enforcing GRP easements, may apply for GRP administration. The criteria
and approval process required for participation are set forth below.
The application packages must include:
(1) Certification that the conservation organization or land trust
is an organization described in section 501(c)(3) of the Internal
Revenue Code of 1986 that is exempt from taxation under section 501(a)
of that Code; or is described in section 509(a)(3), and is controlled
by an organization described in section 509(a)(2), of that Code.
(2) Certification that the applicant has the human and financial
resources necessary to administer and enforce the easements, and that
the applicant has relevant experience with easement enforcement
activities.
(3) Certification that the applicant's charter expresses a
commitment to conserving agriculture land, grassland, or rangeland. The
application will require a summary of such commitment.
(4) Estimates in terms of acreage, number of easements, and funding
requirements that the third party is willing to assume on behalf of the
Secretary.
(5) Description of the human resources available to perform tasks
associated with easement management and enforcement, including
information about range and grassland management for livestock and
wildlife, and realty management expertise.
(6) Budgetary information that demonstrates the organization is
prepared to assume the Secretary's duties.
State agencies do not have to submit information related to items
(1) or (3) above. All other requested information must be included with
State agency applications. Application packages will be reviewed by
both the Chief, NRCS, and the Administrator, Farm Service Agency, or
their designees, for suitability of the party to administer the GRP
easement. This authority may be delegated to NRCS State
Conservationists and FSA State Executive Directors. Multiple third
party applications may be approved for each State.
Application approval means the private organization or State agency
meets the Secretary's requirements for managing and enforcing
easements. Since landowners must authorize a third party easement
administrator, Secretarial approval does not guarantee that the
approved applicant will receive GRP easements to administer. Those
agencies and organizations selected to manage easements will be
required to submit an annual report to the Secretary.
Sections 1415.14 Through 1415.16 and 1415.18 Through 1415.20
These sections are consistent with other conservation programs and
contain standard administrative policy associated with contract
violations and remedies, payments not subject to claims, assignment of
payments, appeals, etc. Nonetheless, USDA welcomes comments regarding
this section on land enrolled in GRP.
Other
There has been much discussion within USDA regarding the
development of industrial windmills on grassland acreage. USDA is
prohibiting industrial windmills on GRP acreage because the structure
is unrelated to protecting the viability of the grassland acreage, it
requires disturbing the soil surface in a manner that is not permitted
in the GRP statute, and it would encourage people wanting to establish
other types of towers on GRP acreage. The public is free to comment on
this policy decision as well.
List of Subjects in 7 CFR Part 1415
Administrative practice and procedure, Agriculture, Soil
conservation, Grassland, Grassland protection, Grazing land protection.
0
For the reason stated in the preamble, chapter XIV of 7 CFR is amended
by adding a new part 1415 as set forth below:
PART 1415--GRASSLAND RESERVE PROGRAM
Sec.
1415.1 Purpose.
1415.2 Administration.
1415.3 Definitions.
1415.4 Program requirements.
1415.5 Land eligibility.
1415.6 Participant eligibility.
1415.7 Application procedures.
1415.8 Establishing priority for enrollment of properties.
1415.9 Enrollment of easements and rental agreements.
1415.10 Compensation for easements and rental agreements.
1415.11 Restoration agreements.
1415.12 Modifications to easements and rental agreements.
1415.13 Transfer of land.
1415.14 Misrepresentations and violations.
1415.15 Payments not subject to claims.
1415.16 Assignments.
1415.17 Delegation to third parties.
1415.18 Appeals.
1415.19 Scheme or device.
1415.20 Confidentiality.
Authority: 16.U.S.C. 3838n-3838q.
Sec. 1415.1 Purpose.
(a) The purpose of the Grassland Reserve Program (GRP) is to assist
landowners in protecting, conserving, and restoring grassland resources
on private lands through short and long-term rental agreements and
easements.
(b) The objectives of GRP are to:
(1) Emphasize preservation of native and natural grasslands and
shrublands, first and foremost;
(2) Protect grasslands and shrublands from the threat of
conversion;
(3) Support grazing operations; and
(4) Maintain and improve plant and animal biodiversity.
Sec. 1415.2 Administration.
(a) The regulations in this part set forth policies, procedures,
and requirements for program implementation of the GRP as administered
by the Natural Resources Conservation Service (NRCS) and the Farm
Service Agency (FSA). The regulations in this part will be administered
under the general supervision and direction of the NRCS Chief and the
FSA Administrator. These two agency leaders will:
(1) Concur in the establishment of program policy and direction;
development of the State allocation formula, and development of broad
national ranking criteria;
(2) Use a national allocation formula to provide GRP funds to USDA
State
[[Page 29182]]
offices that emphasizes support for biodiversity of plants and animals,
grasslands under the greatest threat of conversion, and grazing
operations. The allocation formula will also include a factor
representing program demand. The demand factor could be expressed in
terms of applications received, acres offered, funding needs for such
applications, or a combination of these elements. The allocation
formula may be modified periodically to change the emphasis of any
factor to reflect information about natural resource concerns. The data
in the allocation formula will be updated periodically as new
information becomes available.
(3) Ensure the National, State and local level information
regarding program implementation is made available to the public;
(4) Consult with USDA leaders at the State level and other Federal
agencies with the appropriate expertise and information when evaluating
program policies and direction; and
(5) Authorize NRCS State Conservationists and FSA State Executive
Directors to determine how funds will be used and how the program will
be implemented at the State level.
(b) At the State level, the NRCS State Conservationist and the FSA
State Executive Director are jointly responsible to:
(1) Identify State priorities for project selection, based on input
from the State Technical Committee;
(2) Identify, as appropriate, USDA employees at the field level
responsible for implementing the program, and the implementation
process considering the nature and extent of natural resource concerns
throughout the State and the availability of human resources to assist
with activities related to program enrollment;
(3) Develop program outreach materials at the State and local level
to ensure landowners, operators, and tenants of eligible land are aware
and informed that they may be eligible for the program;
(4) Develop conservation practice cost-share rates;
(5) Administer and enforce the terms of easements and rental
agreements unless this responsibility is delegated to a third party as
provided in Sec. 1415.17; and
(6) With advice from the State Technical Committee, develop
criteria for ranking eligible land, consistent with national criteria
and program objectives and address related policy matters regarding
program direction for GRP in the applicable State. USDA, at the State
level, has the authority to accept or reject the State Technical
Committee recommendations; however, USDA will give consideration to the
State Technical Committee's recommendations.
(c) The funds, facilities, and authorities of the Commodity Credit
Corporation are available to NRCS and FSA to implement GRP.
(d) Subject to funding availability, the program may be implemented
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.
(e) The Secretary may modify or waive a provision of this part if
he or she deems the application of that provision to a particular
limited situation to be inappropriate and inconsistent with the
environmental and cost-efficiency goals of GRP. This authority cannot
be further delegated. No provision of this part which is required by
applicable law may be waived.
(f) No delegation in this part to lower organizational levels shall
preclude the Chief, NRCS, or the Administrator, FSA, from determining
any issue arising under this part or from reversing or modifying any
determination arising from this part.
(g) The Chief, NRCS, may delegate at any time Federal easement
administration and enforcement responsibilities to approved State
Agencies, or approved private conservation or land trust organizations
with the consent or at the request of the participating landowner. The
USDA Forest Service may hold easements on properties adjacent to USDA
Forest Service land, with the consent of the landowner.
(h) Program participation is voluntary.
(i) Applications for participation will be accepted on a continual
basis at local USDA Service Centers. NRCS and FSA at the State level
will establish cut-off periods to rank and select applications. These
cut-off periods will be available in program outreach material provided
by the local USDA Service Center. Once funding levels have been
exhausted, eligible applications will remain on file until additional
funding becomes available or the applicant chooses to be removed from
consideration.
(j) The services of other third parties as provided for in 7 CFR
part 652 may be used to provide technical services to participants.
Sec. 1415.3 Definitions.
Administrator means the Administrator of the Farm Service Agency
(FSA) or the person delegated authority to act for the Administrator.
Chief means the Chief of the Natural Resources Conservation Service
(NRCS) or the person delegated authority to act for the Chief.
Commodity Credit Corporation (CCC) is a Government-owned and
operated entity that was created to stabilize, support, and protect
farm income and prices. CCC is managed by a Board of Directors, subject
to the general supervision and direction of the Secretary of
Agriculture, who is an ex-officio director and chairperson of the
Board. The Chief and Administrator are Vice Presidents of CCC. CCC
provides the funding for GRP, and FSA and NRCS administer the GRP on
its behalf.
Conservation District means any district or unit of State, tribal,
or local government formed under State, tribal, or territorial law for
the express purpose of developing and carrying out a local soil and
water conservation program. Such district or unit of government may be
referred to as a ``conservation district,'' ``soil conservation
district,'' ``resource conservation district,'' ``land conservation
committee,'' or similar name.
Conservation plan means a record of the client's decisions and
supporting information, for treatment of a land unit or water as a
result of the planning process, that meets NRCS Field Office Technical
Guide quality criteria for each natural resource (soil, water, air,
plants, and animals) and takes into account economic and social
considerations. The plan describes the schedule of operations and
activities needed to solve identified natural resource problems and
take advantage of opportunities at a conservation management system
level. The needs of the client, the resources, Federal, State, and
local requirements will be met by carrying out the plan.
Conservation practice means a specified treatment, such as a
structural or land management practice, that is planned and applied
according to NRCS standards and specifications.
Cost-share agreement means the document that specifies the
obligations and the rights of any person who has been accepted for
participation in the program.
Department means United States Department of Agriculture.
Easement means a conservation easement, which is an interest in
land defined and delineated in a deed whereby the landowner conveys
certain rights, title, and interests in a property to the United States
for the purpose of protecting the grassland and other conservation
values of the property.
[[Page 29183]]
Under GRP, the property rights are conveyed in a ``conservation
easement deed.''
Easement area means the land encumbered by an easement.
Easement payment means the consideration paid to a landowner for an
easement conveyed to the United States under the Grassland Reserve
Program.
Field office technical guide means the official local NRCS source
of resource information and interpretations of guidelines, criteria,
and standards for planning and applying conservation treatments and
conservation management systems. It contains detailed information for
the conservation of soil, water, air, plant, and animal resources
applicable to the local area for which it is prepared.
Forb means any herbaceous plant other than those in the grass
family.
Grantor is the term used for the landowner that is transferring
land rights to the United States through an easement.
Grassland means land on which the vegetation is dominated by
grasses, grass-like plants, shrubs, and forbs. The definition of
grassland as used in the context of this part includes shrubland, land
that contains forbs, pastureland, and rangeland.
Grazing value means the value assigned to the grassland cover by
USDA.
Improved pasture means grazing land permanently producing natural
forage species that receives varying degrees of periodic cultural
treatment to enhance forage quality and yields and is primarily
harvested by grazing animals.
Landowner means a person or persons holding fee title to the land.
Native means a species that is a part of the original fauna or
flora of the area.
Natural means a native or an introduced species that is adapted to
the ecological site and can perpetuate itself in the community without
cultural treatment. For the purposes of this part the term ``natural''
does not include noxious weeds.
Participant means a landowner, operator, or tenant who is a party
to a GRP agreement. The term ``agreement'' in this context refers to
GRP rental agreements and option to purchase agreements for easements.
Landowners of land subject to a GRP easement are also considered
participants regardless of whether such landowner initiated the sale of
the easement to the Federal Government.
Pastureland means a land cover/use category of land managed
primarily for the production of introduced forage plants for grazing
animals. Pastureland cover may consist of a single species in a pure
stand, a grass mixture, or a grass-legume mixture. Management usually
consists of cultural treatments: fertilization, weed control, reseeding
or renovation, and control of grazing.
Permanent easement means an easement that lasts in perpetuity.
Private land means land that is not owned by a governmental entity.
Rangeland means a land cover/use category on which the climax or
potential plant cover is composed principally of native grasses,
grasslike plants, forbs, or shrubs suitable for grazing and browsing,
and introduced forage species that are managed like rangeland.
Rangeland includes lands re-vegetated naturally or artificially when
routine management of that vegetation is accomplished mainly through
manipulation of grazing. This term would include areas where introduced
hardy and persistent grasses, such as crested wheatgrass, are planted
and such practices as deferred grazing, burning, chaining, and
rotational grazing are used, with little or no chemicals or fertilizer
being applied. Grasslands, savannas, many wetlands, some deserts, and
tundra are considered to be rangeland. Certain communities of low forbs
and shrubs, such as mesquite, chaparral, mountain shrub, and pinyon-
juniper, are also included as rangeland.
Rental agreement means an agreement where the participant will be
paid annual rental payments for the length of the agreement to maintain
and/or restore grassland functions and values under the Grassland
Reserve Program.
Restoration means implementing any conservation practice
(vegetative, management, or structural) that improves the values and
functions of grassland (native and natural plant communities).
Restoration agreement means an agreement between the program
participant and the United States Department of Agriculture to restore
or improve the functions and values of grassland and shrubland.
Restored grassland means land that is to be converted back to
grassland or shrubland.
Secretary means the Secretary of Agriculture.
Shrubland means land that the dominant plant species is shrubs,
which are plants that are persistent, have woody stems, a relatively
low growth habitat, and generally produces several basal shoots instead
of a single bole.
Significant decline means a decrease of a species population to
such an extent that it merits direct intervention to halt further
decline, as determined by the NRCS State Conservationist in
consultation with the State Technical Committee.
Similar function and value means plants that are alike in growth
habitat, environmental requirements, and provide substantially the same
ecological benefits.
State Technical Committee means a committee established by the
Secretary of the United States Department of Agriculture in a State
pursuant to 16 U.S.C. 3861.
USDA means the Chief, NRCS, in consultation with the Administrator,
FSA or the NRCS State Conservationist in consultation with the FSA
State Executive Director.
Sec. 1415.4 Program requirements.
(a) Only landowners may submit applications for easements. For
rental agreements, the applicant must provide evidence of control of
the property for the duration of the rental agreement.
(b) The easement and rental agreement shall require that the area
be maintained in accordance with GRP goals and objectives for the
duration of the term of the easement or rental agreement, including the
conservation, protection, and restoration of the grassland functions
and values.
(c) All participants in GRP will be required to implement a
conservation plan approved by USDA to preserve the viability of the
grassland enrolled into the program. The conservation plan will
document the conservation values, characteristics, current and future
use of the land, practices that may need to be applied along with a
schedule for application, and a management plan.
(d) The easement and rental agreement shall grant USDA or its
representatives a right of access to the easement and rental agreement
area.
(e) Easement participants are required to convey title that is
acceptable to the United States and provide consent or subordination
agreements from each holder of a security or other interest in the
land. The landowner shall warrant that the easement granted the United
States is superior to the rights of all others, except for exceptions
to the title that are deemed acceptable by the USDA.
(f) Easement participants are required to use a standard GRP
easement developed by the Department. The easement shall grant all
development rights, title, and interest in the easement area in order
to protect grassland and other conservation values.
(g) The program participant must comply with the terms of the
easement or rental agreement and comply with all terms and conditions
of any associated restoration agreement.
[[Page 29184]]
(h) Easements and rental agreements will allow the following
activities:
(1) Common grazing practices on the land in a manner that are
consistent with maintaining the viability of natural grass and shrub
species;
(2) Haying, mowing, or haying for seed production, except that such
uses shall have certain restrictions determined appropriate by the NRCS
State Conservationist to protect, during the nesting season, birds in
the local area that are in significant decline or are conserved in
accordance with Federal or State law; and
(3) Fire rehabilitation and construction of firebreaks, fences
(excluding corrals), watering facilities, seedbed preparation and
seeding, and any other facilitating practices, as determined by the
USDA to protect and restore the grassland functions and values.
(i) Any activity that would disturb the surface of the land covered
by the easement is prohibited except for common grazing management
practices carried out in a manner consistent with maintaining the
functions and values of grassland common to the local area, including
fire rehabilitation and construction of firebreaks, construction of
fences, and restoration practices.
(j) Contracts may be canceled without penalty or refund if the
original participant dies, becomes incompetent, or is otherwise
unavailable during the contract period.
(k) Participants may be able to convert rental agreements to an
easement, providing the easement is for a longer duration than the
rental agreement, funds are available, and the project meets conditions
established by the USDA. Land cannot be enrolled in both a rental
agreement option and an easement enrollment option at the same time.
The rental agreement shall be deemed terminated the date the easement
is recorded in the local land records office.
Sec. 1415.5 Land eligibility.
(a) GRP is available on privately owned lands, which include
private and tribal land. Publicly-owned land is not eligible.
(b) Land shall be eligible for funding consideration if the NRCS
State Conservationist determines that the land is:
(1) Grassland, land that contains forbs, or shrubs (including
rangeland and pastureland); or
(2) The land is located in an area that has been historically
dominated by grassland, forbs, or shrubs; and has potential to provide
habitat for animal or plant populations of significant ecological
value, as determined by the State Conservationist in consultation with
the State Technical Committee and FSA, if the land is;
(i) Retained in the current use of the land; or
(ii) Restored to a natural condition.
(c) Incidental lands, in conjunction with eligible land, may also
be considered for enrollment to allow for the efficient administration
of an easement or rental agreement.
(d) Forty contiguous acres is the minimum acreage that will be
accepted in the program. However, less than 40 acres may be accepted if
the USDA, with advice from the State Technical Committee, determines
that the enrollment of acreage meets the purposes of the program and
grants a waiver. USDA, at the State level, may also establish a higher
minimum acreage level. USDA will review any minimum acreage requirement
to ensure, to the extent permitted by law, that this requirement does
not unfairly discriminate against small farmers.
(e) Land will not be enrolled if the functions and values of the
grassland are protected under an existing contract or easement. The
land would become eligible when the existing contract expires or is
terminated, and the grassland values and functions are no longer
protected.
(f) Land on which gas, oil, earth, or other mineral rights
exploration has been leased or is owned by someone other than the GRP
applicant may be offered for participation in the program. However, if
an applicant submits an offer for an easement project, USDA will assess
the potential impact that the third party rights may have upon the
grassland resources. USDA reserves the right to deny funding for any
application where there are exceptions to clear title on any property.
Sec. 1415.6 Participant eligibility.
To be eligible to participate in GRP an applicant:
(a) Must be a landowner for easement participation or be a
landowner or have general control of the eligible acreage being offered
for rental agreement participation;
(b) Agree to provide such information to USDA that the Department
deems necessary or desirable to assist in its determination of
eligibility for program benefits and for other program implementation
purposes;
(c) Meet the Adjusted Gross Income requirements in 7 CFR part 1400;
and
(d) Meet the conservation compliance requirements found in 7 CFR
part 12.
Sec. 1415.7 Application procedures.
(a) Any owner or operator or tenant of eligible land that meets the
criteria set forth in Sec. 1415.6 may submit an application through a
USDA Service Center for participation in the GRP. Applications are
accepted throughout the year.
(b) By filing an Application for Participation, the applicant
consents to a USDA representative entering upon the land offered for
enrollment for purposes of assessing the grassland functions and
values, and for other activities that are necessary for the USDA to
make an offer of enrollment. The applicant will be notified prior to a
USDA representative entering upon their property.
(c) Applicants submit applications that identify the duration of
the easement or rental agreement. Rental agreements may be for 10-
years, 15-years, 20-years, or 30-years; easements may be for 30-years,
permanent, or for the maximum duration authorized by State law.
Sec. 1415.8 Establishing priority for enrollment of properties.
(a) USDA, at the National level, will provide to USDA offices at
the State level, broad national guidelines for establishing State
specific project selection criteria.
(b) USDA, at the State level, with advice from the State Technical
Committee, shall establish criteria to evaluate and rank applications
for easement and rental agreement enrollment following the guidance
established in paragraph (a) of this section.
(c) Ranking criteria will emphasize support for:
(1) Native and natural grassland;
(2) Protection of grassland from the threat of conversion;
(3) Support for grazing operations; and
(4) Maintain and improve plant and animal biodiversity.
(d) When funding is available, USDA at the State level will
periodically select for funding the highest ranked applications based
on applicant and land eligibility and the State-developed ranking
criteria.
(e) States may utilize one or more ranking pools, including a pool
for special project consideration such as establishing a pool for
projects that receive restoration funding from non-USDA sources.
(f) The USDA, with advice from the State Technical Committee, may
emphasize enrollment of unique grasslands or specific geographic areas
of the State.
[[Page 29185]]
(g) The FSA State Executive Director and NRCS State
Conservationist, with advice from the State Technical Committee will
select applications for funding.
(h) If available funds are insufficient to accept the highest
ranked application, and the applicant is not interested in reducing the
acres offered to match available funding, USDA may select a lower
ranked application that can be fully funded. Applicants may choose to
change the duration of the easement or agreement or reduce acreage
amount offered if the application ranking score is not reduced below
that of the score of the next available application on the ranking
list.
Sec. 1415.9 Enrollment of easements and rental agreements.
(a) Based on the priority ranking, USDA will notify applicants in
writing of their tentative acceptance into the program for either
rental agreement or conservation easement options. The participant has
fifteen calendar days from the date of notification to sign and submit
a letter of intent to continue. A letter of intent to continue from the
applicant authorizes USDA to proceed with the enrollment process.
(b) An offer of tentative acceptance into the program does not bind
the USDA to acquire an easement or enter into a rental agreement, nor
does it bind the participant to convey an easement, enter into a rental
agreement, or agree to restoration activities.
(c) For easement projects, land is considered enrolled after the
landowner signs the intent to continue. For rental agreements, land is
considered enrolled after a GRP contract is approved by USDA.
(d) USDA will present a contract to the participant, which will
describe the easement or rental area; the easement terms, or rental
terms and conditions; and other terms and conditions for participation
that may be required by CCC.
(e) For easements, after the contract is executed by USDA and
participant, USDA will proceed with development of the conservation
plan and various acquisition activities, which may include conducting a
survey of the easement, securing necessary subordination agreements,
procuring title insurance, developing a baseline data report, and
conducting other activities necessary to record the easement.
(f) Prior to execution by USDA and the participant of the contract,
the USDA may withdraw its offer anytime due to lack of available funds,
title concerns for easements, or other reasons. The offer to the
participant shall be void if not executed by the participant within the
time specified in an option to purchase agreement.
Sec. 1415.10 Compensation for easements and rental agreements.
(a) Compensation for easements will be based upon:
(1) The fair market value of the land less the grassland value of
the land for permanent easements; and
(2) Thirty percent of the value determined in paragraph (a)(1) of
this section for 30-year easements or for an easement for the maximum
duration permitted under State law.
(b) For 10-, 15-, 20-, and 30-year rental agreements, the
participant will receive not more than 75 percent of the grazing value
in an annual payment for the length of the agreement.
(c) In order to provide for better uniformity among States, the FSA
Administrator and NRCS Chief may review and adjust, as appropriate,
State or other geographically based payment rates for rental
agreements. NRCS State Conservationists may establish easement payment
amounts on a site specific or geographic area basis.
(d) Easement or rental agreement payments received by participant
shall be in addition to, and not affect, the total amount of payments
that the participant is otherwise eligible to receive under other
Federal laws.
(e) For easements, to minimize expenditures on individual
appraisals and expedite program delivery, USDA may complete a
programmatic appraisal to establish regional average market values and
grazing values. The programmatic appraisals would remove the need to
conduct appraisals on each parcel selected for funding.
Sec. 1415.11 Restoration agreements.
(a) Restoration agreements are only authorized to be used in
conjunction with easements and rental agreements. NRCS, in consultation
with the program participant, will determine if the grassland resources
are adequate to meet the participant's objectives and the purposes of
the program, or if a restoration agreement is needed. Such a
determination will also be subject to the availability of funding. NRCS
may condition participation in the program upon the execution of a
restoration agreement depending on the condition of the grassland
resources. When the functions and values of the grassland are
determined adequate by NRCS, a restoration agreement will not be
required. However, if a restoration agreement is required, NRCS will
set the terms of the restoration agreement. The restoration agreement
will identify conservation practices and measures necessary to improve
the functions and values of the grassland. If the functions and values
of the grassland decline while the land is subject to a GRP easement or
rental agreement through no fault of the participant, the participant
may enter into a restoration agreement at that time to improve the
functions and values with USDA approval and fund availability.
(b) Eligible restoration practices include land management,
vegetative, and structural practices and measures that will improve the
grassland ecological functions and values on native and natural, and
introduced plant communities. The NRCS State Conservationist, with
advice from the State Technical Committee and in consultation with FSA,
will determine the conservation practices, measures, payment rates, and
cost-share percentages, not to exceed statutory limits, that will be
available for restoration. A list of eligible practices will be
available to the public. NRCS working through the local conservation
district with the program participant will determine the terms of the
restoration agreement. The conservation district may assist with
determining eligible practices and approving restoration agreements.
Restoration agreements will not extend past the date of a rental
agreement or easement.
(c) All restoration practices and measures are eligible for cost
sharing. Payments under GRP may be made to the participant of not more
than 90 percent for the cost of carrying out conservation practices and
measures on grassland and shrubland that has never been cultivated, and
not more than 75 percent on restored grassland and shrubland on land
that at one time was cultivated.
(d) Restoration activities are applicable to native and natural
plant communities. When seeding is determined necessary for
restoration, USDA will give priority to using native seed. However,
when native seed is not available, or returning the land to native
conditions is determined impractical by USDA, plant propagation using
species that provide similar functions and values may be utilized.
(e) Cost-shared practices shall be maintained by the participant
for the life of the practice. The life of the practice shall be
consistent with other USDA cost shared or easement programs. Failure to
maintain the practice will be dealt with under the terms of the
restoration agreement and may involve repayment of the Federal cost-
share.
[[Page 29186]]
(f) All conservation practices will be implemented in accordance
with the NRCS Field Office Technical Guide.
(g) Technical assistance will be provided by NRCS, or an approved
third party, as needed by the participant.
(h) Federal cost sharing shall be adjusted so that the combined
cost share by Federal and State government or subdivision of a State
government shall not exceed 100 percent of the total actual cost of the
restoration. The participant cannot receive cost-share from more than
one Federal cost-share program for the same conservation practice.
(i) Cost-share payments may be made only upon a determination by a
qualified individual approved by the NRCS State Conservationist that an
eligible practice has been established in compliance with appropriate
standards and specifications.
(j) Identified practices may be implemented by the participant or
other designee. Payments will not be made for practices applied prior
to submitting an application to participate in the program.
(k) Cost-share payments will not be made for practices implemented
or initiated prior to the approval of a rental agreement or easement
acquisition unless a written waiver is granted by USDA at the State
level prior to installation of the practice.
Sec. 1415.12 Modifications to easements and rental agreements.
(a) After an easement has been recorded, no modification will be
made to the easement except by mutual agreement with Chief, NRCS, and
the landowner.
(b) Easement modifications may only be made by the Chief, NRCS,
after consulting with the Office of General Counsel. Minor
modifications may be made by the NRCS State Conservationist in
consultation with Office of General Counsel. Minor modifications are
those that do not affect the substance of the conservation easement
deed. Such modifications include, typographical errors, minor changes
in legal descriptions as a result of survey or mapping errors, and
address changes.
(c) Approved modifications will be made only in an amendment to an
easement which is duly prepared and recorded in conformity with
standard real estate practices, including requirements for title
approval, subordination of liens, and recordation.
(d) The Chief, NRCS, may approve modifications on easements to
facilitate the practical administration and management of the enrolled
area so long as the modification will not adversely affect the
grassland functions and values for which the land was acquired or other
terms of the easement.
(e) NRCS State Conservationists may approve modifications for
restoration agreements and conservation plans as long as the
modifications do not affect the provisions of the easement or rental
agreement and meets GRP program objectives.
(f) USDA may approve modifications on rental agreements to
facilitate the practical administration and management of the enrolled
area so long as the modification will not adversely affect the
grassland functions and values for which the land was enrolled.
Sec. 1415.13 Transfer of land.
(a) Any transfer of the property prior to the participant's
acceptance into the program shall void the offer of enrollment, unless
at the option of the NRCS State Conservationist, in consultation with
the FSA State Executive Director, an offer is extended to the new
participant and the new participant agrees to the same easement or
rental agreement terms and conditions.
(b) After acreage is accepted in the program, for easements with
multiple payments, any remaining easement payments will be made to the
original landowner unless USDA receives an assignment of proceeds.
(c) Future annual rental payments will be made to the successor
participant.
(d) The new landowner or contract successor shall be held
responsible for complying with the terms of the recorded easement or
rental agreement and for assuring completion of all measures and
practices required by the associated restoration agreement. Eligible
cost-share payments shall be made to the new participant upon
presentation that the successor assumed the costs of establishing the
practices.
(e) With respect to any and all payments owed to landowners, the
United States shall bear no responsibility for any full payments or
partial distributions of funds between the original landowner and the
landowner's successor. In the event of a dispute or claim on the
distribution of cost-share payments, USDA may withhold payments without
the accrual of interest pending an agreement or adjudication on the
rights to the funds.
(f) The rights granted to the United States in an easement shall
apply to any of its agents, successors, or assigns. All obligations of
the landowner under an easement deed shall also bind the landowner's
heirs, successors, agents, assigns, lessees, and any other person
claiming under them.
(g) Rental agreements may be transferred to another landowner,
operator or tenant that acquires an interest in the land enrolled in
GRP. The transferee must be determined by USDA to be eligible to
participate in GRP and must assume full responsibility under the
agreement. USDA may require a participant to refund all or a portion of
any financial assistance awarded under GRP if the participant sells or
loses control of the land under a GRP rental agreement and the new
owner or controller is not eligible to participate in the program or
refuses to assume responsibility under the agreement.
Sec. 1415.14 Misrepresentation and violations.
(a) Contract violations:
(1) Contract violations, determinations, and appeals will be
handled in accordance with the terms of the program contract or
agreement and attachments thereto.
(2) A participant who is determined to have erroneously represented
any fact affecting a program determination made in accordance with this
part shall not be entitled to contract payments and must refund to USDA
all payments, plus interest in accordance with 7 CFR part 1403.
(3) In the event of a violation of a rental agreement or any
contract directly involving the participant, the participant shall be
given notice and an opportunity to voluntarily correct the violation
within 30-days of the date of the notice, or such additional time as
CCC may allow.
(b) Easement violations: Easement violations are handled under the
terms of the easement. Upon notification of the participant, the USDA
reserves the right to enter upon the easement area at any time to
remedy deficiencies or violations. Such entry may be made when USDA
deems such action necessary to protect important grassland and
shrubland functions and values or other rights of the United States
under the easement. The participant shall be liable for any costs
incurred by the United States as a result of the participant's
negligence or failure to comply with easement, rental agreement, or
contractual obligations.
(c) USDA may require the participant to refund all or part of any
payments received by the participant or pay liquidated damages as may
be required under the program contract or agreement.
(d) In addition to any and all legal and equitable remedies
available to the United States under applicable law,
[[Page 29187]]
USDA may withhold any easement payment, and cost-share payments owing
to the participant at any time there is a material breach of the
easement covenants, rental agreement, or any contract. Such withheld
funds may be used to offset costs incurred by the United States in any
remedial actions or retained as damages pursuant to court order or
settlement agreement.
(e) Under an easement, the United States shall be entitled to
recover any and all administrative and legal costs, including
attorney's fees or expenses, associated with any enforcement or
remedial action.
Sec. 1415.15 Payments not subject to claims.
Any cost-share, rental payment, or easement payment or portion
thereof due any person under this part shall be allowed without regard
to any claim or lien in favor of any creditor, except agencies of the
United States Government.
Sec. 1415.16 Assignments.
(a) Any person entitled to any cash payment under this program may
assign the right to receive such cash payments, in whole or in part.
(b) If a participant that is entitled to a payment dies, becomes
incompetent, or is otherwise unable to receive the payment, or is
succeeded by another person who renders or completes the required
performance, others may be eligible to receive payment in such a manner
as USDA determines is fair and reasonable in light of all the
circumstances.
Sec. 1415.17 Delegation to third parties.
(a) USDA may permit an approved private conservation or land trust
organization, State or other Federal agency to administer an easement
with the consent or written request of the landowner. Rental agreements
will not be delegated to private organizations, State, or other Federal
agencies.
(b) USDA will have the right to conduct periodic inspections and
enforce the easement and associated restoration agreement for any
easements administered pursuant to this section.
(c) The private organization, State, or other Federal agency shall
assume the costs incurred in administering and enforcing the easement,
including the costs of restoration or rehabilitation of the land to the
extent that such restoration or rehabilitation is above and beyond that
required by the GRP conservation plan and restoration agreement. Any
additional restoration must be consistent with the purposes of the
easement.
(d) A private organization, State, or other Federal agency that
seeks to administer and enforce an easement shall apply to the NRCS
State Conservationist for approval. The State Conservationist shall
consult with FSA State Executive Director prior to approval.
(e) For a private organization to administer and enforce an
easement, the private organization must be organized as required by 28
U.S.C. 501(c)(3) of the Internal Revenue Code of 1986 or be controlled
by an organization described in section 28 U.S.C. 509(a)(2) of that
code. In addition, the private organization must provide evidence to
USDA that it has:
(1) Relevant experience necessary to administer grassland and
shrubland easements;
(2) A charter that describes the commitment of the private
organization to conserving ranchland, agricultural land, or grassland
for grazing and conservation purposes;
(3) The human and financial resources necessary, as determined by
the Chief, NRCS, to effectuate the purposes of the charter; and
(4) Sufficient financial resources to carry out easement
administrative and enforcement activities.
(f) If a private organization is terminated, withdraws from the
agreement to administer the easement, or the landowner submits a
request in writing to terminate such agreement, the USDA will assume
the responsibility upon receiving such formal notice from the
organization or the landowner. Subsequent agreements for easement
management with other approved private, nonprofit organizations could
be entered into at the request of the landowner with approval from the
NRCS State Conservationist. If the owner and the new organization fail
to notify the NRCS State Conservationist of the reassignment within 30
days of termination, the easement shall revert to the control of NRCS.
Sec. 1415.18 Appeals.
(a) Applicants or participants may appeal decisions regarding this
program in accordance with 7 CFR parts 11, 614, and 780.
(b) Before a person may seek judicial review of any action taken
under this part, the person must exhaust all administrative appeal
procedures set forth in paragraph (a) of this section.
Sec. 1415.19 Scheme or device.
(a) If it is determined by the Department that a participant has
employed a scheme or device to defeat the purposes of this part, any
part of any program payment otherwise due or paid such participant
during the applicable period may be withheld or be required to be
refunded with interest thereon, as determined appropriate by the
Department.
(b) A scheme or device includes, but is not limited to, coercion,
fraud, misrepresentation, depriving any other person of payments for
cost-share practices or easements for the purpose of obtaining a
payment to which a person would otherwise not be entitled.
(c) A participant who succeeds to the responsibilities under this
part shall report in writing to the Department any interest of any kind
in enrolled land that is held by a predecessor or any lender. A failure
of full disclosure will be considered a scheme or device under this
section.
Sec. 1415.20 Confidentiality.
Appraisals are considered confidential information and are not
distributed. The regulations in this part provide that any appraisals,
market analysis, or supporting documentation that may be used by USDA
in determining property value are considered confidential information,
and shall only be disclosed as determined at the sole discretion of FSA
and NRCS in accordance with applicable law.
Signed at Washington, DC on May 13, 2004.
Bruce I. Knight,
Vice President, Commodity Credit Corporation and Chief, Natural
Resources Conservation Service.
[FR Doc. 04-11473 Filed 5-20-04; 8:45 am]
BILLING CODE 3410-16-P