42137
                        tequlations-
                                • ••*..[.•. ..'-'
  Wetlands Reserve Program; .;.;••.'  '•.-.-,
  •AGENCY: Commodity.'Credit Corporation/
  Natural Resources Conservation.' Service,'-
  USDA.'  • • ••"•.. /•'  •/'':' ;'..'•'' •.,..'•••   "~ .
  ACTIOS: Final rule..  -.   "".-..  -'•''

  SUMMARY: The Commodity Credit   :
  Corporation (CCC) and the Natural
  Resources Conservation Service (NRCS)
  'are issuing its final rule for the
  Wetlands Reserve Program.. This ride '
  adopts as Jmalthe interim rale for the ..
 . Wetlands Reserve Program published on
  June 1,^1995, responds to comments  ' .
  received from the public during the
  comment period, and incorporates • . ;.
  specific changes required by the Federal
  Agriculture Improvement and' Reform
  •Act of 1996. -The '-fmallrule'-will provide
  the process by which the Wetlands
  Reserve' Program is administered by the '
                •''  "'    '  '''  '"
         .
  EFFECTIVE DATE: August 14, 1996.   .' ••  •• .
  FOR FURTHER 'INFORMATION CONTACT:/.'-' ",.'
  Robert Misso, (202) 720-3534.     , •• -. ."
  SUPPLEMENTARY INFORMATION:'   .   '   "
  Executive Order 12SS6
    .The Office of Management and. Budget
  (OMB) Las determined that this final'"
  mis is significant and was reviewed b}'
  the Office of Management and -Budget
  under Executive Order 12856. Pursuant
  to §6(a}(3) of Executive Order 12866, '
  CCC arid NRCS prepared a cost- benefit
  Assessment of the potential impact of
  the piogre.m. The .•jsspSKi:i«;it concliidfid
  "^jv -.--vcr.".! uischanisiTiS si t3i« State and
 maximized for each Federal dollar spent
' in the WRP. These mechanisms include :
-a'comprehensive' prioritization'and.; ;•  . ..
 Kinking procedure for each site offered '>".''
.for.enrplhnent-iii th.e'.program and.the '/•"
 requirernentforlocally-deterinined;..; '  •
 easement .payment caps baseoY on the •:'
• agricultural larid-value.-These"   •,.;•...'•
 mechanisms, are developed and  ' '• ".
 implemented.on a stata-by-state basis;-' -.
:with guidance and coordination from
-the National level of .the agency/to . .:- - >
 ensure that regional'and geophysical:.";., ;:.
 variations are addressed. The WRP costs
 data indicate that the procedures in' :.'•;; ;-•,
 place are promoting cost-effectiveness. ••:"
 Copies of the cost-benefit assessment'are.
 available upon request from Robert • :•••• -.
vMissb;Program.ManagerVVi7atersheds ;.•'•
 and Wetlands Division; Natural  .  .- ;.- • .
 Resources Conservation Service, P.O. •' :
 Box 2890,.Washington', DC 20250. 'h ;"•'
 Regulatory Flexibility Act.-.'. -.  .. -   . ., :
.-' •'• It has been determined that'the..-. .;. ••• •'
' Regulatorj' Flexibility Act is not"-  .-.' ••._• . '
 .applicable to this rule because neither •
 the-CCC or NRCS are required by 5  .,
 'U.S.G. 553 or any other provision'of law
 to publish a notice of proposed     •   .'
 rufemaking with respsct to'.the subject
 matter of this rule.      .    -". •   '   .  •
 Environmental Evaluation'
  . It has been determined through an'   . •.
 environmental review that tliis action'is '
 a modification of the existing WRP and"
 is covered under the NRCS J9SO"
 Environmental Assessment entitled,  _•
 '•'Wetlands Reserve Program— •••!   ''.-' ,..
 Environmental Assessment: Wetlands' ;•
 • Reserve Provision of the Conservation •'• -
 Program Improvements Act of 1S90."
 NRCS supplemented the environmental.
.. assessment to evaluate the changes to
 the program made pursuant to'the   :- .'.
  Federal Agriculture Improvement and
  Reform Act of 1993. Copies of the
  environmental assessment with
  supplement are available upon  request
  from: Robert Misso, Program Manager,
  Watersheds and Wetlands Division,   • .
  Natural Resources Conservation Service,
  Post'Office' Box 2890, Washington, DC -
  20250.
  Executive Order 12372
    This program/activity is not subject to
  the provisions of Executive Order 12372
  bec:jx;sc u involva:; diroei p:iysr.sr>ts to.
  i.ndivjdu^b s:=;ri oot  to Stsiv- ivid locai
 Part 3015, Subpart V, published at 48
; FR 29115 (June 24,1983)! J      ,
 Federal Domestic Assistance Program • ^
i '.• The title and number of the Federal
.Domestic Assistance Program^' as found
in the Catalqg.of.Federal Domestic  •
•Assistance, to which tliis-rule applies
 are: Wetlands Reserve Program—10.072.
 Paperwork Reduction Act
.. •  Nonsubstantive changes have been -
 made in this final rule which affect the
' recordkeeping requirements and
••estimatedburdens previously reviewed.
.,:and approved under OMB control
"number 0578-0013.
 Executive Order-12778       -'   .
 •  -This.unal rule has been-reviewed in •'
 accordance with Executive Order.12778.
• -The provisions of this final rule are not
. retroactive. Furthermore, except as'"
"provided at.16 U.S.C.-3337a(s)(2); the ••
'•provisions of. this" final  rule preempt
: State and local laws to  the extent such
 laws are" inconsistent with this final
 rule. Before an action may be brought in
 a Federal court-of competent
 jurisdiction, the administrative appeal
 rights afforded persons at 7 CFR Part
 614 must be exhausted. .
 Unfunded Mandates Reform Act of
 1S95  ''•'     •    '     ' •- .
   Pursuant to Title II of the Unfunded
 'Mandates Reform Act of 1995, which
 the President signed into law-on March
 22,1995', the affects of this rulemaking
 : action-on State/local, and tribal
 governments, and:the public have been
 assessed.-This action does not compel
 the expenditure of $100 million or more
 .by any 'State, local or tribal  ." .'
-. governments, 'or anyone in the private
 sector,, arid therefore a  statement under
' section'202 of the Unfunded Mandates
 • Reform'Act of 1995 "is not required.
 Discussion of Program     . •
    The NRCS published the current
 regulations for the Wetlands Reserve
 Program as an interim rule on June 1.
 •1995 (60 FR 28511). Enacted on April 4,
  199b, the Federal Agriculture
 Improvement and'Reform Act'(the 19QO
 Act) authorized the enrollment oi'non-
  easeirieal acres into the program.
 . through tba use of resloratiou cost-shnvft
  agreements and msoc  other n;inor
  chc!i;£8s to ''is focus of too  rci^i'i^'o.


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42138  Federal Register
addition of the few changes.
recommended during'public comment
and/or required by the 1996 Act. These .
changes are described below. Minor  .
editorial changes have also been made  .
for clarification and administrative
Durposcs.'The 1996 Actamended. the . \
Food Security.Act'pf 1985-(the 1.985.-  ,
Act),Fub/L. 99rl98. to provide that tne
WRP. should be funded by CCC.:; •• • -.-•,•:
''coSniing trI!S^.rule diking-the.'..
, "60-day 'public domment penod that. ;: • -
 endedjuly 3ji i?9S, Respondents...
 included national wildlife and
 conservation organizations, state     •  .
 aeencies,'public utilities, anyone Slate.
 firm organization. Two of 1^^comments
 simply indicated support for the WRP
 and did not offer-specifi;c ^uggested.
 changes!.-'* '• j'-'.\-- f'^l ••"''•';'-: '  •'•'' '.- ":;
  Definitions-f^C-;-}   :.:y\ •";•  ,. j '.  .!•
   ' NRCSreceivea-two''cci.rnments-,; •  • ,:.
  requesting.sligrit-moaifications-tq.the .
  definitions in.§ 629:2 of the interim rule.'
  One comment suggested that the     .  .:
  definition for/'State Technical ,  ^  :-
  Committee" be changed to allow tie
  State Conservationist flexibility in   •
  delegating' the chair p'osition to other
  members of tlie .committee. Currently,
  the State Conservationist may delegate .
  the chair position to other NRCS
   personnel. Even so. implementation of
   the WRP at.tlie state level remains the
  • responsibility of tlie State
   Conservationist and therefore, no,      •
   changes were made to the definition o, -
   State Technical Committee. The
   commenter also suggested that the
   definition of "wetland functions and  .
  ' values"-be revised from "social worth
   placed .upon these characteristics to
   "the socio-economic value placed upon
   these characteristics.1'This change
  .' clarifies the intent of tlie interim rule
  • and is adopted in this final rule.
      NRCS also received a comment irom .
    a state forestry agency requesting that
    "timber" be included in tlie definition •
    for "wetland functions and values.
    NRCS did not adopt this change because
    the concept'is incorporated in the
    current definition but die actual term is
    too specific for a nationwide program
    which enrolls many different types 01
    wetlands with differing wetlands
definition. Additionally, section 620.3(0
is modified to include conservation
districts by specific reference to clarify.
that NRCS' values the special
partnership that it has with   -
conservation districts in'the effort to
improve the Nations soil, water and ^
other natural resources; and NRCb will,
continue to seek-iriput from;  '  -.  ......'
conservation districts in the    ... .;..  ;. .
administration.^.its programs.. .-'.  : .. ;
  The Consolidated Farm Service   .  .  ..
.'Agency CCFSA) is now known as .the... :•.'. V,
•Fim "Service-Agenc>'(FSA).'The-ruleis,.f
-amended to reflect this name change. X: v

•^Utility Easements •..;••' -.•..-^•'. :•/-. ;•'-'<;v-"-.'--  •
   NRCS received two comments from •
 utility companies, both of which • '
' expressed concern about how NRCS ;.
 would approach the overlapping of a
•WRP easement with a'utiUty-easement:./  .-.,
'Utilitv easements are addressed during';.,
•" the title clearance, process. During that -
 process, the NRCS must determine '-: .•-;-•..
''.whether. (1) NRCS can obtain a    .-, •• '.'•
 'subordination agreement from the   • _•:.:•-
• utility easement holder; (2) the exercise  .
' 'of the utility easement holder .s rights
  Would be consistent.with the purposes ;• .,.;
 •Of the WRP .easement; or, (3J the>•     _
 •exercise of the utility' easement holder s
  rights would undermine tlie .purposes.. ..
 • for which the WRP easement would be -
  established. If the NRCS is unable to •
  obtain a subordination agreement from  .
  tlie utility easement holder and the  -
  exercise "of that easement holder's rights
  would undermine the WRP easement
  then tlie NRCS will not purchase & WRF
  • easement on that property. One of these
 . commenters  also expressed support tor
  the preference given permanent  •
  easements by the interim rule.. -
                                    (HGM)) to evaluate wetland [unctions
                                    and values more objectively. NRCS will
                                    be better able to rank wetland sites for
                                    WRP that differ, thus providing for more
                                    consistency wi'tlnn and between Slates.

                                    Compatible Uses
                                      NRCS received four letters from State
                                    forestry organizations and one letter  .; ;
                                    from a State farm organization wmch .
                                    expressed.oppositioato language placed.
                                    'in the preamble tp the WRP interim rule
                                   '' regarding compatible economic uses 01
                                   kth! easement.iekas.it related to iorest
                                    management .activities. NRCS also   .
                                    .'•received a comment, however/from-a
                                    '•'conservation'organization which
                                    ' supported the language used in tlie -   .
                                     preamble, suggesting that some   .
                                    ^management approaches may .not: be •
                                    :consistent with the long-term-protection
                                    . of xvetland resources.   •'  ,..•..
                                    .'. '-According-to the WRP authorizing
                                    ' 'language at 16-U.S.C. 3837a(d),  •-.. •  '
                                    '.compatible economic uses; including  -
                                      forest management, are permitted if
                                    '  consistent with the long-term protection -
                                      and enhancement of the wetlands
                                     'resources for which the easement was
                                    " established. Li'the preamble, NRCS  -
                                          *  . •>«	i_J ±\~*i VinfiTafi"\r>a
                             icated that fce
     definition of "Conservation Districts be
     modified to reflect better the msswn of
     conservation districts. The NRC& aOoyls
     the suggested lans"aSe as an
     improvement to the ciuvity o, tu«
Water Quality    .'.'.''•
  One utility company commenter   .
requested Aat the impact on drinking
water sources be a ranking factor for.
oiving priority to purchasing a.   .  •..
particular easement. One of the. " '-,.  ; -:
conservation organizations also urged
that easements that provided water
quality functions receive priority • -   .
treatment. Because water quality is one
of the wetland functions for which the
easement is being estaohshed, the NRCS
considers in its ranking .process, directly
 or indirectly, the-impact en-easement.
 wovld have on drinking water sources.
 •Currently, each State ConserysUomst  in
 consultation with the State Technical  •
 Committee, will determine the weigh,
 that xvater quality in general  and impac
 on drinking water specifically, should
 rec»i'.'8 in the ranking process. In tne
 f»«urc. NRCS rdoug with, other agencies
 v.-itli WJtlan'i responsibilities will use a
 system (llyUrogooinoiTihic Modeling
 estaDiisneo. ui LIIK jjicmn^.^, ^—^—
 simply indicated that harvesting
 methods which are not consistent with
 the long-term protection and •    .    -
 enhancement of wetland functions and
• values on a particular easement area  .   -
. -will not be considered a compatible use.
' Upon request by a landowner, tlie NW-b
 will evaluate the  particular site on an
 easement area and will make a
 determination of what silvicultural   -
 approach, timing, intensity, and
  duration may be  considered compatiDie
  with'the wetland functions and values..
   . The document granting permission tor
  forest management activities, or any  .
  other reouest for a compatible use,
 • specifies"the amount, method, timing,
 -intensity, and duration of the use being
 :'. granted. The NRCS, However,- reserves   .
 :its ability to'modify a-particular use
  should easement area conditions  .
  change. The management plan for an.
  easement area is a "living document
  'and may be updated with additional
   compatible use requests as they are
   received from a landowner over time.
  '   For example,  the wetland functions
   and values that  are established by the
   WRP restoration efforts are.not available
  • for mitigation purposes. However, at a
   later date, the landowner may request
   permission from the NRCS to enhance
   further the functions and values
   established by the WRP restoration.
    effort. If the NRCS determines that the
    enhancement action is a compatible uts
    and is clearly beyond the scope of
    restoration, actions that woula bs_^
    feasible under  any  subsequent \VKT
                                          i
                                          I

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                                                                                                           4213S
restoration, efforts, the additional
increment of functions and values
which directly result from the
landowner's approved enhancement
action may be available to meet  .
mitigation requirements under other   •
federal, slate,'or local law.    '-._  •  .
  No matter the use, the test remains:  ,
"Is a particular proposed use consistent
with the long-term, protection and
enhancement of the wetlands resources -.
 for which the easement was established
••and Federal funds expended?"Thjs   ; '
 approach is consistent with the WRP  -
 statute and'does not require any change
 to the WRP. rule.  ;   '
 Non-permanent Easements .•• -
 ' • The NRCS received four comments in
 which 'the conimenters expressed  .;-
 'concern thatthe interim rule gave such. -
 priority to the enrollment of permanert
 easements that the. enrollment of non- ;
 permanent easements would be
  completely-excluded from the program..
  One commenter expressed the concern;
  that the priority placed on .permanent •
  easements overshadowed the other. .
  priority mandated by statute. In
  particular, the WRP authorizing
  legislation at 16 U.S.C. 3837c(d) • - ;.
  provides that priority, should be placed
  on acouiring-easements based on the
  value of the easement for protecting and
  enhancing habitat for migratory birds
  ana other wildlife.         '          .
    • Sections '620.6(b)(4) and (5) of the rule
  require that-the NRCS. consider wneiner
   any permanent easement offer has the
   ecological and. cost-characteristics
  ' which warrants acquisition before
   proceeding to acquire anon-permanent
   easement. The conimenters recognized
  'that non-permanent easements receive a
   different easement payment than-a
   permanent easement; but either, did not
   express specific Opposition to the -,- :   ^
   differentiated payment rate or expressed
  '. support for it. The 1996'Act :     -.
    amendments require,'to the extent  ,
    practicable after Octoberl, 1996, that
    NRCS enroll one-third of total program
    acres through the use of 30-year  • •
    easements. • .    ' '••                 ,
      In response to the comments received
    and explicit direction from statute,
    NRCS has removed §§ 62Q.8(b)(4) and
    (5) and thus eliminated thess particular
    constraints upon .the enrollment of non-
    psrmanent easements: The-1985 •-.-
    amendments also provided that the .
    restoration, cost-share rate for a 30-year
     easement should  be from 50 to-75
     pcrcMii. The interim rule provided thst
     ihs cosfsment payment rate for a non- ^
     liannaao.iit easement should parallel, ins
     res',ora!ic!i cost-share rate. Therefore,
      § ry'.0.sn.0(3) has  hosri emended to
      K'1'".^ l'ic;-' the  aascVTianl payment for
fan
a 30-year easement shall be between 50
percent and 75 percent of that which  ' -
would have been paid for a permanent  •
' casement.  •  .     '        .," '  "
   One commentet.noted that the  '     ;
SC0 000 annual easement payment'
•.limitation discriminated.unduly against.
the acouis'ition of less than permanent
easements. The interim final rule had  ..
established the $50,000 annual =./ , \-.-
 easement payment cap,for all non- .}•  -.-.• • •__
 permanent easem'ent:acquisitiOns. ;••-..  '-.••'•
 However, by statute,' the $50,000 annual = -
 easement.p'ayment limitation for-non- ••:•...
 permanent easements is a discretionary -
 cap. As such, the NRCS has determined  ;
.that in special circumstances involving • •
 proiects with partnership funding or - .
 participation, a greater annual easement-
 payment amount may be available..  -.. .
 Additionally, the statute provides .that:
 'payments are exempted from.the"? ..-• -. -
  payment limitation if the payment is  ; -_
  received by a State, political -. - •'•: • -.    • ,;:
  subdivision, or.-agency thereof in ..:   > • •_•
  co^ection with- agreements entered^..;.'   •
  into under a special wetland and '••• -; • •
'  environmental enhancement program-....
  carried out by .that entity that has been -  ..
  approved by NRCS:.The final rule is,- • .-
   amended accordingly;''.     ' .'•   ' ••'.  .
    S°ciion 620.17 addresses the •
   sd-^inisu-ative.appeal procedures to be
   used wlicn a person desires review ot a
   <=d'rr:'vstr?tion determination.  '•.
   conceniin" eligibility for participation.  .-
   TV..-.interim -final rule for the National  .
  • Appeals Division (NED) Pvules or
   Procedures, 80 FR 67298. (December 29,
   '->. 635), amended §- 620.17 to include^
   rpf°r.-,nce to 7 CFR Part 780  and-7 CFR
   Part 11. The NAD interim final rule also
   amended 7 CFR Part 614, the NRCS  •
   r-ppoals procedures originally      .
   referenced in § 620.1.7. Part 614, as
    amended, references the other appeal  •
    procedures at 7 CFR Part 780 and  7 CFR;
    Part 11, and their additional mention in;
    § 6'0 17 is therefore redundant.-This-...- •
   " final rule amends .§620.17 to remove the
   .redundant reference to -7 CFR-Part 780  •;
   - 7 CFR Part 11.'; ;•'_.- ".'   --:..;..  .   ..  '
    Discussion of the Federal Agriculture
   . Improvement and Reform A.ct    :
      The Federal Agriculture Improvement
    zs-t Reform Act (the 1996 Act) was
    exacted on April 4,1996. The 1996 Act
    amended the Food Security Act of 1985,
    Is'u.S.C. 3801 etseq., to re-authorize
    the Environmental Conservation   .
    Acreage Reserve Program as the
    u»-.ii-.,-(jl'i:i conservation program
     rr-.-n'tn  ssiiig faQ Conservation Reserve
     ^rj..Vrn (IQ U.S.C. 3831-3836), the
      ,.,7.^^.C'-api-ed Enviromneiital Quality
      !Vr:- Stives Fro-ram (10 U.S.C. 3840),
      -.,.: '••-•, --V'^VncJs Reserve Program (1°
      ^'•.: r-"'V;q7 V-isen.). Under tho
Environmental Conservation Acreage
Reserve program, the Secretary of •
Agriculture may'designate areas as
. conservation priority areas to assist • • •
landowners to meet nonpoint source
pollution requirements and 'other. -.^   .
'conservation needs. •• •.--.•  •  ••'••
   The 1996 Act effects several changes . •   -
•to the administration of the WRPr.In  ' :-
 particular, the 1996 Act amendments,  .
• authorize the enrollment of land into   .'
•the'Wetlands Reserve Program until,  .-  .  .-.
:• 2002/establishes a program cap at    • ;_
 '975,000 acres,'and provides that eligible-.
 land must maximize wildlife benefits •
 and wetland functions and values-  '  •••    •
   The 1996-Act amendments also      . •
 require that,.to the extent practicable ' '
 beginning October 1,1996, one-third of.-
 'the remaining program acres be enrolled.-
-"-through the use of permanent. • •-••.••" _' •
  easements; one-third'through the use of,  -
 ' 30-year easements, and one-third
  through the use of restoration cost-share  •
 -agreements. Further, after October 1,  '.'.
  1996  ho new permanent easement can
  be en'roUed.u'ntil-at last 75,000 acres of    .
  non-permanent easement are enrolled in •
  the program. Section 721 of the       '
  aoriculture Appropriations-Act. enacted •
   August 6,1996, stated that this  -
   condition' on enrollment "shall be
   deemed-met upon the enrollment.oi  .
   43,333 acres through the use of
   temporary easements: Provided further
   that'the Secretary shall not enroll  acres
   *  *  * through the use of new
   permanent easements in fiscal yesr 1998
   until-the Secretary has enrolled at least
   31,667 acres in the program througn the
  • use of teniporary easements;" In
   recognition thatthe NRCS must enroll
   lands that maximize wildlife benents
   and other wetland functions and  values,
   achieve-cost-efficient,restoration,.and  .
   provide the three identified enrollment
   •'.approaches, the NRCS will emphasize
  ""enrolling lands  that have the least      ;
    likelihood o'f being reconverted. The ^
    NRCS will work with landowners and
    other conservation partners to achieve-
    these lasting benefits for wetland'
    resources.  •  •          '    .
      •Through several public forums across
     the county,- the NRCS received
     comments-from the public about toe
     new. conservation programs and t,ic
     chanees to exist ing conservation
     programs as a result of the enactment o,
     the 1996 Act. The "NRCS greatly
     appreciates the input pro video ay the
     public through the forums snd written
     comments submitted to the agency. I lie
      NRCS will consider these comments
      during the formulation of its policies
   -••  and guidelines.      .         n-_.
       Many of the changes to Uie vy;\.-r
      required by the 1895 Act are diyoctives
      to the as3;--cy  v.-hich do not ijr.ijsct ih.c

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                                                  i Wr:dr;::ic%,  Au,ju?t •••':.
               .u-'.j   ass c:;::v;<:s are
  r.::u:cintfli>y and do not j.\v.;u\ro s«pncy
  intej'yrawt-on. She CCC aiiri NKCS have
  incorporated them, into this final luie.
  The following sections, and parts are
  impacted:              • ~"   •
  Section 620.2
    The 1966 Act made several changes to
  other programs which relate to WRP,'
  including the wetland conservation-   .
  provisions, 7 CFR Part 12. and the
  Conservation Reserve Program, 7-CFR .
  Parts 704 and 1410'. Therefore; certain ' .'
  definitions are removed from this part to.
  avoid any.inconsistencies with the .-.-,.
  implementation of these other •   .
  provisions.-  ,'•••.. .-'•.   •».•'"• •."•'.•
 'Section620.3   ...    '  -:::     .-,'  •   ...
 •'  The 1996 Act requires th'e Department
  of Agriculture to avoid duplication of.'.
  conservation plans required for the
  implementation of the highly credible  '
  land conservation provisions of the
  Food Security Act of 1985, CRP, and the
  WRP. In response to this requirement,
  § 620.3 (h) is amended to include •  .
  coordination of the development of
  conservation plans as an additional goal
  in the administration of the WRP. The
  1996 Act amendments also provide that.
 • areas may bs designated as conservation
  priority areas to help producers comply •'
 with nonpoint source pollution .- .-.,.-
 requirements and other conservation
 needs.-Therefore, a new sentence is' •
 added to § 620.3(h) that the Secretary of-.
 Agriculture may designate areas as  .-•••  .
 conservation priorit}' areas to assist'-
 landowners to meet nonpoint source  • -.-
 pollution requirements and other.'  ."•/ •:•
 conservation needs.'.'   ..:*.'.-.• -./.-«'..'•
 ^Section 620.4  V;   • ';""  ;;•;:; ;:•;;.>
 '  The 1996 Act amendments authorize'.•„•''_..
 the enrollment of acres into the. WRP,..'••'
 through the use of restoration co'st>share:
 agreements.-Therefore.-the first sentence ,.
. of § 620.4 has been amended to include •'
 the term "restoration cost-share'  ..-'.,». .. ^
 agreements."   •,. •  ,.''.•".'! ,./•  .-" ••/• -' '••••;'
   The 1996 Act amendments links ~  ':•.
 eligibility for WRP easement or cost-'- •/,
 •share payments to the highly" ero'dible.;  ,
 land andwetland conservation.-..  -.L",'.--.- ''-.
 provisions of'the 1985 Act',' 16 UJSic.'. :•;
 3801 etseq.,7 CFR part 12. Therefore,'.;..'.
 landpwner.eligibility; § 620.4(c),-is,,v~;v.;''
, amended tq.reflect-that a p'erson-.rriay'•<.-'•/'.'
. hot be eligible fpr-participation in VyRP ' •'
 if the'requirernehts "of 7. CFR part.12'.--..'...
 have not been met. ..     -• .   '•••.'••.I-,  •   '
   • The 1996 Act amendments specify
 .that the 25 percent county enrollment
 cap and the 10 percent county easement
  c."=r- Ciiiy ariijiy to saves u-irolk-.:- ;-r; Hi:;
  Cor.ssfv::i:'n;i Reserve F.-ujravn (C'RPj
  ana the Vv'I\P. and not aU acres eiiroiiod.
  in the Environmental Coiiservstiou
  Acreage Raserve Program. Therefore, the
  reference to the Environmental
  Conservation Acreage Reserve Program
  in § 620.4(b)(l) has been replaced with
•  specific reference to the CRP.and die • "
  WE?. In. addition"to "consideration of
  any adverse.effect on the local economy,
  the 1996 Act amendments require that
  a waiver from the county caps can only
  be approved if operators in-the county
  are having difficulties complying with
  the conservation plans'implemented
  under--.16 U.S.C.. 3812.-.Therefore,'.  < ,-..
.  §.62.0.4(fa)(2).has been amended to.. •••.-' ''
  incorporate, this new. criterion.\ • -.-'•.'..,-'. ~s
•... The 1996'Act•amendments expanded
" the eligibility criteria ,tp require'.' ';. -:v"-:
  specifically'that land enrplled;in th'e,'
  program'maximize wildlife benefits:'.  ;
.•Th'ereforey§620:4(d)'is"amendedtp -   .,
  incorporate the additional eligibility.-'
  criterion/ -•.. >:"..'..'•.•;•!• :- V/H"':---.-     .'
  • The 1985 Act provides that pasture'
  land'established to trees under the CRP
 is'ineligible for .enrollment in the WKP.
 Even though such lands wore not
 enrolled in the program, specific
 mention of this ineligibility provision
 v.-as not made in the interim rule.  •
 Section 620.4(e) is amended to
 incorporate specifically this statutory '
• provisip'n.:  -; ••;.:''   .:..;. •'-..  •  . -.-'
.Section:620:7 •": ..-..  '•': :'"~,   :'-'-.:
   THe 1996 Act amendments require'
 that after October 1,1996, to the extent
 practicable, the NRCS enroll one-third
• of the acres through the use of  ••
 permanent ea'seme'nts;:_one-thifd -of the
'acres through the/use .of 30-year     ..-;. •
 easements, arid one-third of.the acre's -J':...
 through.the"use of restoratipri'cost-share .
. agreements. The NRCS-has considered -
•land enrolled, in.the program-at the time.
 the NRCS .dete'i-niines' that a laridoiyner.'.s '
•'offer is eligible-; funds are.committe'd to'1:;'
 acquire that-particular easement, arid ••
. the laiidovvTier.agrees to'continue in the
 program'. Because tHe 1996 Act  ,
 amendments ..require that'the NRCS  '
.track the total acres enrolled through the.
- use  of permanent .easements,'-307year :;  '-
 easements", 'arid.restoratidri'cbst-sHare -i--;
'agreements,-§620;7(b)'is arriended to  '
..
'3837a(f);:tp eliminate the specific -'•' -. ••;...
•reference to lump sum payments-for •.; ••••• •
 permanent easements only; and further -
 provides that annual compensation for
 any easement may be in not less than 5
 nor more than 3.0 annual payments of
 is'.corpoKttod tho oriijUislsUiiutorv   •.
 provisions as to payments, ara a:v.:-nri'.-.').
 to refisct ibis specific change in !.v\v
 regarding easement paymunts.
 Section 620.9'and 620.10_.
   To reflect that the NRCS shall enroll
 land into the WRP through the.use of-
 restoration cost-share agreements,
' section 620.9 is amended by adding .
. specific reference to restoration ccst-
 •share agreements and making associated
 editorial adjustments to this new type of
'enrollment mechanism.' Additionally,
 the 1996 Act-amendments provide that
• the cost-share rate for restoration
'associated with 30-year easements shall
 be no less than'50 nor more than 75
 percent. Section 620.9(a) incorporates
 this new statutory provision.'-       -   .
  • Likewise,' the requirements in .   '. .
•' § 620.10,, such as the granting of an- •
 easement to the United States, are •-.-
 specific to enrollment into the program
 through the use of an easement and not
 restoration cost-share agreements.
 Therefore, the heading to §620.10
 reflects that the section is no'longer
 applicable as "Program requirements" :
 but now more appropriately refers to
 easement-enrollment requirements.
 Section 620.11     •.;  '
   The 1996 Act'amendments provide
 that the development of the restoration
- plan shall be'made through the local
 NRCS representative, in consultation
 with the State-Technical Committee.
 The 1996 Act amendments also removes
 the specific requirement that     .  .
 consultation with the Department of the
 Interiormeans agreement at the local
 level and consultation.at the State level.
.'Therefore, NRCS has added-these   ..
 changes to § 620'.11 by.lj by removing •
.the regulatory language in paragraph (a)
 which required agreement with the U.S.
 Fish and.Wildlife Service at the local'.
 level, and 2) replacing the language with
 a new paragraph (a) 'which how
references the'development of the plan
by the local NRCS representative.     ;-'

 Section 620.14   , ;' '••'  ..." .,-,"  .
•   During the implementation of the'  •'
 program under, the interim rule, ;
cpiifusion arose,'regarding the language
 in § 620.14 about'"ass6ciated" contract.
;-The'terrn-''asspciated" was intended to/ •
. mean a contract-"associated -with' tHe
'program" other than the easement deed.
As stated, the term "associated'1 •  ,..
 inadvertently created the mistake]!  •
 conclusion that the contract is attached
 to the easement deed. Therefore, the
 term "associated" has been removed (q
 improve the clarity of this section.

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         Federal Register
                                                                                     Rules and Regulations  42141
Part's 620 and 14-67   •'          V
  Because funds of the Commodity •
Credit Corporation shall be used for
administration of the WRP.'the'WRP.
rule is moved from Part 620 to. Part 1467
of Title VII of the CFR."Furthermore,
certain administrative responsibilities .
may be assumed by other agencies with
'List of Subjects "iia 7 CFR Part' 1467
  : Administrative, practice and-
 procedure, Agriculture, Soil •
 conservation, XVetlands.
  Accordingly,-the interim rute
 Agency.-.the'NRCS and the Farm Service
 Agency will seek agreement in    .<
 establishing policies, priorities, and
 guidelines related to the     .;,  -;;:
 implementation of this-part.:;' . ''•-.-   '-""•
 *  .  *   •'* '   *••••:'*."•   ' •!"•'
'  . (f) The Department may enter into  .
 cooperative agreements with Federal "or
 State agencies', conservation districts. ..
 and private conservation'organizations..,
 to assist the .NRCS'with educational.. •.;.;
' efforts"; easement rnahagemeht'and ..;•• .  '
 monitoring, outreach efforts, and ••.:; .-.
 program/implementation assi'stance.   .
  - ^gj * ' * •-* fhe NRCS may consult with
 the Forest Service, other Federal or State
Commodity Credit Corporation pursuant
to 16 U.S.C. 3831-3836.
 *:     *:    *     *    *
   Contract means the document thai
 specifies the obligations and rights of
 any person who has been accepted for
 participation in the program. .  .
 *"''.*'   .*    *     *     .
;   Department means the United States '
 Department of Agriculture (USDA) and •
 includes the Commodity Credit
 Corporation or any USDA agency  or .' •:
:• instrumentality delegated program-
 responsibility by the Secretary of
• Agriculture.        .
' *•     *. -  *  •   *   . *
   Person  means an individual,
 eSh-sheS76pFR^l?^uttlTaS    ^££^^£^9T:°^  "partnership, association, corporation.
   1 In-7 CFR, .chapter VI, part 620 is re-
 designated as chapter XIV, part 1467;:,:.
 arid the sections are re-designated as set
 forth below:;;..  < ..v.  '••: \,'••'.'.'•':.-.'•}•'•
    •  •• ••  "   ".•''   •  '.-'.  '.'    New sec-
          Old section •-•..-••   • •  .  .- tion

  ~>ni -'     • "    ..;..:;.....	:.  "  1467.1
  0si ration plans
    in'-ploipsnted under 16 U.S.C.  3812.
    " (c) Landowner elSj-ibiiity. The NUCS
    mav dtftsrniinv; that n person is not
                                                                 * Program

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vvi.' in .:.vt!  r,u •.:,>•"$!•.'•.!•.• hi !br
V.'.VP, a ;::.••: ,: j,..^t: -  -
     (2) Ltuid shall only'oa considered
   oligibb Tor enrollment in the WRP if the
   NRCS determines, in consuilaiion with
   the U.S. Fish and Wildlife Service, that:
     (i) Such land maximizss.wildlife
   benefits and wetland values and
   functions;
     (ii) The likelihood of the successful
   restoration of such land and the
   resultant wetland values merit inclusion
   of such land in the program, talcing into
  .consideration the cost of such
   restoration; and  ' •   ••           -.  .-.
     (iii) Such land meets' the criteria of  '
   paragraph (d)(3) of this section.    .'''.
     (3] .The following land may be eligible
.  -for enrollment in the WRP, which land.
   may be' identified by the NRCS pursuant
   to regulations and implementing
   policies pertaining to wetland
  conservation found at 7 CFR part 12, as:
 '***-.
   *  '  *    • *    *    »
 .'  (e)* «  '.
    (2] Land that contains timber stands
  established under a CRP contract or
  pasture land established to trees under
  a CRP contract.
  •    »    *    *    *
    7. In § 1467.6, paragraphs (a) through
  (c) are re-designated as paragraphs (b)
  through (d), a new paragraph (a) is -.
  added to read as follows:

  § 1467.6  Establishing priority for
  enrollment of properties in WRP.
 .  (a) The NRCS shall place priority on
  the enrollment of those lands that will
  maximize wildlife values (especially  •
  related to enhancing habitat for,
 migratory birds and other wildlife); have
 the least likelihood of re-conversion and
 loss of these wildlife values at the end
 of the WRP enrollment period; and'that
 involve State, local, or other partnership
 matching funds and participation.
 •*   *     *  ' *     *
   8. Section 1467.7 is amended by
 revising the heading to the section and
 the heading to paragraph '(b) ,to read as
 follows: •'••,'.

 § 1467.7, Enrollment of easements.
 *    *  •:  *    *'    it -        '
   (b) Effect of letter of intent to continue
 (enrollment).  *  * • *  ,
 *    ••."**   .*•
   9. Section 1467i8 is amended by .  .
   (a) Revising paragraph (b)(3);  •  ':  '
   (b) Removing paragraphs (b)(4), (b)(5),'
 and(e)(2);  "                  .-
   (c) Re-designating paragraph (e)(3) as
(:5!(2); and,

  'iV;o r.rvisions road r.s fois-.:!.vs:

51437.3  Co.T.pooj-'aUi;;! ',cr o:,«:r.:
                                         (b)
                                         (3) Easement payments for nvn-
                                       permaneut easements will be less than
                                       those for permanent easements because
                                       the quality and duration of the
                                       ecological benefits derived from a non-
                                       permanent easement are significantly
                                       less than those derived from a
                                       permanent easement on the same land.
                                       Additionally, the economic value of the
                                       easement interests being acquired is less
                                       for a non-permanent easement than that
                                       associated with a permanent easement.
                                      •An easement payment forthe short-term
                                       30-ye.ar easement shall not be less than. "•'
                                      SO percent nor more than''75 percent of
                                      that which would have-been paid, for'a
                                      permanent easement. ''•'"..
                                     • *   .'*"••*','*•••*
                                        [e)*  *>  '  ,\ ..•"•   '  :.
                                        (2) Annual easement payments may
                                      be made in no less than 5 annual   .  •"
                                      payments and no more than 30 annual
                                      payments of equal or unequal size..
                                     . *    *     * ,  . *    *
                                        (h) Payment limitation on non-
                                      permanent a'qsements. With respect'to .
                                      non-permanent easements, the annual
                                      amount of easement payments to any
                                    . -person'may not exceed 550,000 except
                                      for:  '  •; . .-.,-'•'.
                                        (1) Payments made pursuant to
                                     projects involving partnership funding
                                     or participation; or .
                                        (2)_Payment, received by a State,
                                     political subdivision, or agency thereof
                                     in connection with agreements entered
                                    '• into under a special wetland and
                                    • environmental enhancement program  •
                                     carried out by"that entity that has been '..
                                     approved by NRCS.
                                    ' *•  • *'• '•.  * ; .•  /*.   *'           ,;  .
                                        10.' In § 1467.9, the first sentence''of
                                     the introductory text of paragraph (a)  '
                                     and paragraph (a)(2) are revised to read
                                     as follows:   •.   .     ...

                                     § 1467.9 • Cost-share payments.
                                       (a) The Department may share the'cost
                                     with landowners of restoring the
                                     enrolled land as provided in the '
                                     WRPO>  *  *  . ...       ;
                                     *   •*..'*.   '*    * .    •:
                                       (2) On enrolled land subject to a non-'
                                     permanent easement  or restoration cost-
                                     share'agreenient, the Department shall.
                                     offer to pay not less than 50 percent nor
                                     more than'75 percent of such costs.' '. •'.
                                     Restoration cbst:share payments offered
                                     by.NRCS 'for the short-term,'3 0-year
                                     easements shall be 50 to 75 percent
                                         (5) Htivs the option to enter into an
                                       agreement witli sovcrnmental or private
                                       organizations to assist in carrying out
                                       any landowner responsibilities on the
                                       easement area;
                                       *  .  *    *  •  *     *
                                         12. In § 1467.11, paragraph (aj is
                                       revised and a new sentence is added at
                                       the end of paragraph (b) to read as
                                       follows:

                                       § 1467.1 1  The WRPO development.
                                         (a) The development of the WRPO  .
                                     .  shall be' made through the local NRCS
                                       representative, in consultation with the
                                       State. Technical Committee, arid with
                                       consideration of site specific technical
                                       input from the U.S. Fish and Wildlife
                                       Service and the Conservation District.
                                         (b)* *• "-The WRPO shall be    .
                                       developed to ensure 'that cost-effective
                                       restoration and maximization of wildlife
                                       benefits and wetland functions and
                                       values will result.
                                         13. In § 1467.12, paragraph (b) is
                                       revised to read as follows:

                                    •   §.1467.12 -Modifications.
                                       *  '. *    *    *  , • *
                                        (b) WRPO. Insofar as is consistent
                                      with the easement and applicable law,
                                      the State Conservationist may approve
                                     ' modifications to the WRPO that do not
                                      affect provisions of the easement in
                                      consultation with the landowner and
                                      the State Technical Committee and  •
                                      following consideration of site specific
                                      technical input from the U.S. Fish and
                                      Wildlife Service and the Conservation
                                      District. •• Any WRPO modification must
                                      meet WRP.prograin objectives, and must
                                      result hi equal or greater wildlife • •
                                      benefits, wetland functions and values,
                                     •'ecological and economic values to die
                                      United States. Modifications to the : '
                                      WRPO which' are substantial and affect
                                     provisions of the easement will require
                                     agreement from the landowner and  :
                                     require- execution of an amended '  :.
                                     .easement.  .   • •. ,.,..-•..  ...•...;.• .     -  •
                                        14. Section 1467.'l3 is amended by  '   '
                                    - revising paragraph (b)(l) to read as
                                              '1   ''  ''' '        '  ""
                                     -§1467.13: -Transfer' of land.
                                      '  (b)
       ':"' ; •*.'*.*;•."•;'•'•*•:*/'"".*•"*,* . "„•"''-'•  •'  '  ' •-
       * *;''.' "'.";"    .  - • •'  .•.     ,' '•  'r

  (1) Foreasements'with multiple .
annual payments, any remaining
easement payments will be made to the
original landowner.unless the

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        FceferaZ Register l_  Vol.
    158  /
                                                                          1996 / Rules and ^^^^^2.
Department receives an assignment of
proceeds.
           *   . *
  15. In § 1407.14, remove the word ^
"associated" from paragraphs (a) and

  16 Section 1467.17 is amended by
revising paragraph (a) to read as follows:

•§1467.17 "Appeals.
'.  (a) A person participating 'in the WRP
 may obtain a review of any.
 administrative determination   "
 concerning eligibility for participation
 utilizing the administrative appeal
 regulations provided in 7 CFR part 614.
 x    *     *     *     * '  .   •   •
   17 In addition to the amendments set
 forth above, in 7 CFR part 1467 remove
 the words "Consolidated Farm Service-
 Agency" whereverthey appear and add,
 fn their place, the words "Farm Service
    l8"ti addition to the amendments' set
  forth above, in 7 CFR part 1467 remove
  the word "NRCS" whenever it appears
  and add, in its place, the word
  "Department".
    Signed at Washington. B.C. on August 8,
  1996.
  Paul Johnson,,
  Chief. Natural Resources Consecution
  Service, Vice President. Commodity Credo.
   Corporation.
   (FR Doc. 95-20623 Filed 8-13-96; 8:45 am)
   SILLINS CODE S41(MS-*S
   .Food Safety and inspection Service

   S CFR Part 317           ' '
   [Docket No. SS-005DF]
        5S3-AC03
    Net Weight Statement for Shingle .
    Packed Bacon
    AGENCY: Food Safety and Inspection
    Service, USDA.  •'
    ACTION: Direct final rule; request for
    comments. __ ^ _     _ _ .__

    SU»JiM«iRY: The Food Safety and
    Inspection Service (FSIS) is amending
    the Federal meat inspection regulations
    bv removing an obsolete labeling
    reouiremcnt for certain. sizes of shingle
    packed bacon. This rule applies the
     same requfc-emenls  for net weight   ^
     statements to all sizes of shingle pacKsd
     bacon.
     C/.T-S: This mle will be effective on
     Cooler 15, 1998 unless FSIS racoivss
     '..•/'•'.ten adverse cornunyHs-'or vmttsn
     u'l-'co cf intent U> sv.l«?.ii a-:sver.' s
     ov... 'VjOii's on "or before S.ipv.W:-4"- i-s,
comments within the scope of this rule,
FSIS will withdraw .this rale and
publish a proposed rule for public-
comment.             ;.;     ' -  ,  •
ADDRESSES: Send an original and two   .
conies of xvritten comments to: Fblb ....
Dod^t Clerk. Docket S96-005DF, Room .
A352, South Agriculture Budding Food
 Safety and Inspection Service, U-b.
 Department^Agriculture, Washington,,.
 DC 20250...   '."  '  . •..,      .-  :   '••-•••
 FOR FURTHER INFORMATION CONTACT: Ms.
 Cheryl Wade, Director, Food Labeling
 Division. Regulatory Programs, Food  ;
 Safety and inspection Service, U.S.   .
 Department of Agriculture, Washington,
 DC 20250, Area Code (202) 254-2590,

 SUPPLEMENTARY INFORMATION:

 .Background-  •-•_      '  .'
    FSIS has been petitioned to amend ..
  th~ Federal meat inspection regulations ;
  by"removing an obsolete labeling    ••"••.
  requirement for certain sizes of shingle  .
• packed bacon. (Shingle packed bacon is
  sliced bacon p'acked in overlapping  •
  rows usually contained in a rectangular

  PaSectfon 317.2(h)(13) of the Federal
  meat inspection regulations requires . •
'  that the labeling of packages of bacon _
   not in 8-ounce, 1-pound, or. 2-pound •
   containers display the net quantity of
   the contents (net weight statement) with
  "the same prominence.as toe largest
   feature of the label. In addition, the
^  statement must be printed in a color of
   ink that contrasts sharply with the
   label's background.        ".'  '
     Section 317.2(h)(G)(v) provides.tnat
   shingle packed bacon packed in 8-
    ounce, 1-pouiid, or 2-pound containers
    is exempt from the labeling
    requirements regarding: (l) the  ". ;• - -
    placement of tternet weight statement?
    withinthe.bdttom 30 percentof the ..
 •   principal display panel, and (2) the  •-
    expression of the net weight statement
    in terms of both pounds and oxinces.-il.-.
   .  the net weight .statement appears in a ..;.-••
     conspicuous manner on-the principal:

                  shingle packedbacon,'
     was sold in 8-6unce, 1-pound, or 2-
     pound packages. Over time, bacon
     manufacturers began packing bacon ol  .
     different weights in .the same size
     containers used for the tradiUonal_8-
     ounce,.l-pouud, and 2-pound packages
     of bacon. For.example, a 12-ounce
     oackage of bacon-was packed m.tne
     arms sizs container as a 1-pound.
     pr'.^fe.of.bacon. To ensure that
     consumers wsro awaro that ihore v.-as
      1,^ product in the same-size container,
      FtfS promulgated rogulatioiis to
      h-nithi to coii-suj.-w^ tns TIG', W33?A<-:
      ,-;": -r^=-.f on &^^ p~±^*- '--.lO'.YUVir,
xvith heightened consumer awareness,
the use of nutritional labeling, and the  ..
use of .unit pricing at the retain level, -_
FSIS agrees'with the petitioner that this ,
labeling requirement is no-longer   ,
needed.       .•  •   ".         '   ..-•-...
 '•'Therefore, FSIS is amending the  .    •.
Federal meat inspection-regulations by
 removing the labeling requirement lor
• shingle packed, bacon packed in other ,
 than 8-ounce. 1-pound, or 2-pound ;,.-,..
 containers in § 317.2(h)(13).. FSIS is also
 removing the language that refers to 8- :
 ounce, 1-pound, and 2.pound packages
 of shingle packed bacon from •
 § 317 2Xh)(9)(v). This action provides the
 same requirements for net-weight  .
 statements for all sizes of shingle
 packed bacon. •"-.-'       •
 "Effective Date
    This-rule is being published without
 '" a prior proposal because this action is'
  viewed as noncontroversial, and FSIb ....
 : -does not anticipate any adverse public
  comments will bereceived^Thisrule; •, .
  will be effective 60 days after the date-;
  of publication in the Federal Register  • .
  unless FSIS receives written adverse
  comments or written notice of intent to
 ' submit adverse comments within 30 ..
   days of the date of publication of this..
   rule in the Federal Register.     •     .
     • If no adverse comments are received,
 .- FSIS will publish a "notice in the
   Federal Register confirming that the
   rule is effective on the date indicated.  -
   Executive Ordsr 12886 and-Effect on
   Small" Entities •••
      This rule is considered not significant
    and therefore has not been reviewed by
    the Office of Management and Budget. •
      The Administrator, FSIS, has
    determined that this rule will not have.
  '  a significant impact on a substantial..
    number of small entities. The rule -.. .
  • merely -removes an obsolete labeling  -  -
  ••• requirement for shingle packedbacon  ...
   "  packed in other than 8-ounce, 1-pound,
    .or 2-pound containers.

     Executive Order 12778 -
    ' '"  This rule has been, reviewed under
     Executive Order 12778, Civil Justice
     Reform. This rule (1) preempts all SUue
     and local laws and regulations that are
     inconsistent with this rule;  (2) has no
     retroactive effect; and (3j does not
     require administrative proceedings
     before parties may lils suit  in court
      challenging this rule.
    ' List of Subjects in S CFil F.-.i" 3*7
        Moat inspection, Food labeling.
        For the reasons d-scussod in the  ;   -
      pr^mbk, 9 CFR p«ri 317 is anionacQ K,
      iV-)Tov.-i:

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