[Code of Federal Regulations]
[Title 7, Volume 6]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR634.27]

[Page 492-493]
 
                          TITLE 7--AGRICULTURE
 
   CHAPTER VI--NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF 
                               AGRICULTURE
 
PART 634_RURAL CLEAN WATER PROGRAM--Table of Contents
 
                  Subpart C_Participant RCWP Contracts
 
Sec. 634.27  Cost-share payment.

    (a) General. Participants are to obtain or contract for materials or 
services as needed to install BMPs. Federal Cost-share payments are to 
be made by the administering agency upon certification by the District 
Conservationist, NRCS, or its designee, that the BMPs, or an 
identifiable unit thereof, have been properly carried out and meet the 
appropriate standards and specifications.
    (b) Payment maximum. The maximum total Federal cost-share payment to 
a participant shall be limited to $50,000. Exceptions to this limit may 
be made by the administering agency with concurrence of the 
Administrator, NRCS, upon recommedation of the NRCWCC, where it 
determines that the main benefits to be derived are essential for 
meeting the water quality objectives in the project area.
    (c) Basis for cost-share payment. (1) Cost-share payments are to be 
made by the administering agency at the cost-share percentage and by one 
of the following methods designated by the administering agency and set 
out in the contract:
    (i) Average cost, or
    (ii) Actual cost not to exceed average cost.
    (2) If the average cost at the time of starting the installation of 
a BMP or identifiable unit is less than the costs specified in the 
contract, payment is to be at the lower rate. If the costs at the start 
of installation are higher, payment may be made at the higher rate. A 
modification will be necessary if the higher cost results in a 
significant increase in the total cost-share obligation. Cost-share 
payment is not to be made until the modification reflecting the increase 
is approved.
    (d) Average cost development. Average costs are to be developed by 
the administering agency for each project using cost data from the local 
area. These costs should be reviewed by the SRCWCC for consistency with 
average costs in other USDA programs. The average cost list is to be 
updated annually by the administering agency.
    (e) Application for payment. Cost-share payments can be made by the 
administering agency after a participant has carried out a BMP or an 
identifiable unit of a BMP. Application for payment must be submitted to 
the administering agency, be certified by the NRCS or its designee, and 
be supported by such cost receipts as are required by the administering 
agency. It is the participant's responsibility to apply for payments.
    (f) Authorizations for payments to suppliers. (1) The contract may 
authorize that part or all of the Federal cost share for a BMP or an 
identifiable unit be made directly to suppliers of materials or 
services. The materials or services must be delivered or performed 
before payment is made.
    (2) Federal cost shares will not be in excess of the cost share 
attributable to the material or service used or not in

[[Page 493]]

excess of the cost share for all identifiable units as may be requested 
by the participant.
    (g) Material inspection and analysis. When authorizations for 
payments to suppliers are specified, the administering agency, its 
representatives, or the Government reserve the right to inspect, sample, 
and analyze materials or services prior to their use.
    (h) Assignments, set-offs, and claims. (1) A State or local 
administering agency may allow the assignment of payments to the extent 
provided by State law. When ASCS is designated as the administering 
agency, assignments by any participant who may be entitled to cost-share 
payment under the program are prohibited unless they are made in 
accordance with the provisions of section 203, Title 31, U.S.C., as 
amended, and section 15, Title 41, U.S.C., as amended.
    (2) If any participant to whom compensation is payable under RCWP is 
indebted to the United States and such indebtedness is listed on the 
county register of indebtedness maintained by the County ASC committee, 
the compensation due the participant must be used (set-off) to reduce 
that idebtedness. Indebtedness to USDA is to be given first 
consideration. Deductions for setoffs involving a nonresident alien 
shall be made as provided by 26 U.S.C. 871. Setoffs made pursuant to 
this section are not to deprive the participant of any right to contest 
the justness of the indebtedness involved, either by administrative 
appeal or by legal action.
    (3) Any cost-share payment due any participant shall be allowed 
without deduction of claims for advances except as provided for above 
and without regard to any claim or lien against any crop, or proceeds 
thereof, in favor of the participant or any other creditor.
    (i) Access to land unit and records. Any authorized administering 
agency, or NRCS employees or agents, shall have the right of access at 
reasonable times to land under application or contract, and the right to 
examine any program records to ascertain the accuracy of any 
representations made in the application or contract. This is limited to 
the right to furnish technical assistance and to inspect work performed 
under the contract.
    (j) Suspension of payments. No cost-share payments will be made 
pending a decision on whether or not a contract violation has occurred.
    (k) Ineligible payments. The filing of requests for payment for 
BMP's not carried out, or for BMP's carried out in such a manner that 
they do not meet contract specifications, constitutes a violation of the 
contract.