Part IV - Environmental Quality Incentives Program

16 USC 3839aa - Purposes

The purposes of the environmental quality incentives program established by this part are to promote agricultural production, forest management, and environmental quality as compatible goals, and to optimize environmental benefits, by

(1) assisting producers in complying with local, State, and national regulatory requirements concerning

(A) soil, water, and air quality;

(B) wildlife habitat; and

(2) avoiding, to the maximum extent practicable, the need for resource and regulatory programs by assisting producers in protecting soil, water, air, and related natural resources and meeting environmental quality criteria established by Federal, State, tribal, and local agencies;

(3) providing flexible assistance to producers to install and maintain conservation practices that sustain food and fiber production while

(A) enhancing soil, water, and related natural resources, including grazing land, forestland, wetland, and wildlife; and

(B) conserving energy;

(4) assisting producers to make beneficial, cost effective changes to production systems (including conservation practices related to organic production), grazing management, fuels management, forest management, nutrient management associated with livestock, pest or irrigation management, or other practices on agricultural and forested land; and

(5) consolidating and streamlining conservation planning and regulatory compliance processes to reduce administrative burdens on producers and the cost of achieving environmental goals.

16 USC 3839aa1 - Definitions

In this part:

(1) Eligible land

(A) In general
The term eligible land means land on which agricultural commodities, livestock, or forest-related products are produced.

(B) Inclusions
The term eligible land includes the following:

(i) Cropland.

(ii) Grassland.

(iii) Rangeland.

(iv) Pasture land.

(v) Nonindustrial private forest land.

(vi) Other agricultural land (including cropped woodland, marshes, and agricultural land used for the production of livestock) on which resource concerns related to agricultural production could be addressed through a contract under the program, as determined by the Secretary.

(2) National organic program
The term national organic program means the national organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et. seq.).

(3) Organic system plan
The term organic system plan means an organic plan approved under the national organic program.

(4) Payment
The term payment means financial assistance provided to a producer for performing practices under this part, including compensation for

(A) incurred costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, or training; and

(B) income forgone by the producer.

(5) Practice
The term practice means 1 or more improvements and conservation activities that are consistent with the purposes of the program under this part, as determined by the Secretary, including

(A) improvements to eligible land of the producer, including

(i) structural practices;

(ii) land management practices;

(iii) vegetative practices;

(iv) forest management; and

(v) other practices that the Secretary determines would further the purposes of the program; and

(B) conservation activities involving the development of plans appropriate for the eligible land of the producer, including

(i) comprehensive nutrient management planning; and

(ii) other plans that the Secretary determines would further the purposes of the program under this part.

(6) Program
The term program means the environmental quality incentives program established by this part.

16 USC 3839aa2 - Establishment and administration

(a) Establishment
During each of the 2002 through 2012 fiscal years, the Secretary shall provide payments to producers that enter into contracts with the Secretary under the program.

(b) Practices and term

(1) Practices
A contract under the program may apply to the performance of one or more practices.

(2) Term
A contract under the program shall have a term that

(A) at a minimum, is equal to the period beginning on the date on which the contract is entered into and ending on the date that is one year after the date on which all practices under the contract have been implemented; but

(B) not to exceed 10 years.

(c) Bidding down
If the Secretary determines that the environmental values of two or more applications for payments are comparable, the Secretary shall not assign a higher priority to the application only because it would present the least cost to the program.

(d) Payments

(1) Availability of payments
Payments are provided to a producer to implement one or more practices under the program.

(2) Limitation on payment amounts
A payment to a producer for performing a practice may not exceed, as determined by the Secretary

(A) 75 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, or training;

(B) 100 percent of income foregone by the producer; or

(i) 75 percent of the costs incurred for those elements covered under subparagraph (A); and

(ii) 100 percent of income foregone for those elements covered under subparagraph (B).

(3) Special rule involving payments for foregone income
In determining the amount and rate of payments under paragraph (2)(B), the Secretary may accord great significance to a practice that, as determined by the Secretary, promotes

(A) residue management;

(B) nutrient management;

(D) invasive species management;

(E) pollinator habitat;

(F) animal carcass management technology; or

(G) pest management.

(4) Increased payments for certain producers

(A) In general
Notwithstanding paragraph (2), in the case of a producer that is a limited resource, socially disadvantaged farmer or rancher or a beginning farmer or rancher, the Secretary shall increase the amount that would otherwise be provided to a producer under this subsection

(i) to not more than 90 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, or training; and

(ii) to not less than 25 percent above the otherwise applicable rate.

(B) Advance payments
Not more than 30 percent of the amount determined under subparagraph (A) may be provided in advance for the purpose of purchasing materials or contracting.

(5) Financial assistance from other sources
Except as provided in paragraph (6), any payments received by a producer from a State or private organization or person for the implementation of one or more practices on eligible land of the producer shall be in addition to the payments provided to the producer under this subsection.

(6) Other payments
A producer shall not be eligible for payments for practices on eligible land under the program if the producer receives payments or other benefits for the same practice on the same land under another program under this subchapter.

(e) Modification or termination of contracts

(1) Voluntary modification or termination
The Secretary may modify or terminate a contract entered into with a producer under the program if

(A) the producer agrees to the modification or termination; and

(B) the Secretary determines that the modification or termination is in the public interest.

(2) Involuntary termination
The Secretary may terminate a contract under the program if the Secretary determines that the producer violated the contract.

(f) Allocation of funding
For each of fiscal years 2002 through 2012, 60 percent of the funds made available for payments under the program shall be targeted at practices relating to livestock production.

(g) Funding for federally recognized Native American Indian Tribes and Alaska Native Corporations
The Secretary may enter into alternative funding arrangements with federally recognized Native American Indian Tribes and Alaska Native Corporations (including their affiliated membership organizations) if the Secretary determines that the goals and objectives of the program will be met by such arrangements, and that statutory limitations regarding contracts with individual producers will not be exceeded by any Tribal or Native Corporation member.

(h) Water conservation or irrigation efficiency practice

(1) Availability of payments
The Secretary may provide payments under this subsection to a producer for a water conservation or irrigation practice.

(2) Priority
In providing payments to a producer for a water conservation or irrigation practice, the Secretary shall give priority to applications in which

(A) consistent with the law of the State in which the eligible land of the producer is located, there is a reduction in water use in the operation of the producer; or

(B) the producer agrees not to use any associated water savings to bring new land, other than incidental land needed for efficient operations, under irrigated production, unless the producer is participating in a watershed-wide project that will effectively conserve water, as determined by the Secretary.

(i) Payments for conservation practices related to organic production

(1) Payments authorized
The Secretary shall provide payments under this subsection for conservation practices, on some or all of the operations of a producer, related

(A) to organic production; and

(B) to the transition to organic production.

(2) Eligibility requirements
As a condition for receiving payments under this subsection, a producer shall agree

(A) to develop and carry out an organic system plan; or

(B) to develop and implement conservation practices for certified organic production that are consistent with an organic system plan and the purposes of this part.

(3) Payment limitations
Payments under this subsection to a person or legal entity, directly or indirectly, may not exceed, in the aggregate, $20,000 per year or $80,000 during any 6-year period. In applying these limitations, the Secretary shall not take into account payments received for technical assistance.

(4) Exclusion of certain organic certification costs
Payments may not be made under this subsection to cover the costs associated with organic certification that are eligible for cost-share payments under section 6523 of title 7.

(5) Termination of contracts
The Secretary may cancel or otherwise nullify a contract to provide payments under this subsection if the Secretary determines that the producer

(A) is not pursuing organic certification; or

(B) is not in compliance with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq).

16 USC 3839aa3 - Evaluation of applications

(a) Evaluation criteria
The Secretary shall develop criteria for evaluating applications that will ensure that national, State, and local conservation priorities are effectively addressed.

(b) Prioritization of applications
In evaluating applications under this part, the Secretary shall prioritize applications

(1) based on their overall level of cost-effectiveness to ensure that the conservation practices and approaches proposed are the most efficient means of achieving the anticipated environmental benefits of the project;

(2) based on how effectively and comprehensively the project addresses the designated resource concern or resource concerns;

(3) that best fulfill the purpose of the environmental quality incentives program specified in section 3839aa (1) of this title; and

(4) that improve conservation practices or systems in place on the operation at the time the contract offer is accepted or that will complete a conservation system.

(c) Grouping of applications
To the greatest extent practicable, the Secretary shall group applications of similar crop or livestock operations for evaluation purposes or otherwise evaluate applications relative to other applications for similar farming operations.

16 USC 3839aa4 - Duties of producers

To receive payments under the program, a producer shall agree

(1) to implement an environmental quality incentives program plan (including a comprehensive nutrient management plan, if applicable) that describes conservation and environmental purposes to be achieved through 1 or more practices that are approved by the Secretary;

(2) not to conduct any practices on the farm, ranch, or forest land that would tend to defeat the purposes of the program;

(3) on the violation of a term or condition of the contract at anytime the producer has control of the land

(A) if the Secretary determines that the violation warrants termination of the contract

(i) to forfeit all rights to receive payments under the contract; and

(ii) to refund to the Secretary all or a portion of the payments received by the owner or operator under the contract, including any interest on the payments, as determined by the Secretary; or

(B) if the Secretary determines that the violation does not warrant termination of the contract, to refund to the Secretary, or accept adjustments to, the payments provided to the owner or operator, as the Secretary determines to be appropriate;

(4) on the transfer of the right and interest of the producer in land subject to the contract, unless the transferee of the right and interest agrees with the Secretary to assume all obligations of the contract, to refund all payments received under the program, as determined by the Secretary;

(5) to supply information as required by the Secretary to determine compliance with the program plan and requirements of the program; and

(6) to comply with such additional provisions as the Secretary determines are necessary to carry out the program plan.

16 USC 3839aa5 - Environmental quality incentives program plan

(a) Plan of operations
To be eligible to receive payments under the program, a producer shall submit to the Secretary for approval a plan of operations that

(1) specifies practices covered under the program;

(2) includes such terms and conditions as the Secretary considers necessary to carry out the program, including a description of the purposes to be met by the implementation of the plan;

(3) in the case of a confined livestock feeding operation, provides for development and implementation of a comprehensive nutrient management plan, if applicable; and

(4) in the case of forest land, is consistent with the provisions of a forest management plan that is approved by the Secretary, which may include

(A) a forest stewardship plan described in section 2103a of this title;

(B) another practice plan approved by the State forester; or

(b) Avoidance of duplication
The Secretary shall

(1) consider a plan developed in order to acquire a permit under a water or air quality regulatory program as the equivalent of a plan of operations under subsection (a), if the plan contains elements equivalent to those elements required by a plan of operations; and

(2) to the maximum extent practicable, eliminate duplication of planning activities under the program under this part and comparable conservation programs.

16 USC 3839aa6 - Duties of the Secretary

To the extent appropriate, the Secretary shall assist a producer in achieving the conservation and environmental goals of a program plan by

(1) providing payments for developing and implementing 1 or more practices, as appropriate; and

(2) providing the producer with information and training to aid in implementation of the plan.

16 USC 3839aa7 - Limitation on payments

(a) Limitation
Subject to subsection (b), a person or legal entity may not receive, directly or indirectly, cost-share or incentive payments under this part that, in the aggregate, exceed $300,000 for all contracts entered into under this part by the person or entity during any six-year period,^[1] (excluding funding arrangements with federally recognized Native American Indian Tribes or Alaska Native Corporations under section 3839aa–2 (h)2 of this title) regardless of the number of contracts entered into under this part by the person or entity.

(b) Waiver authority
In the case of contracts under this part for projects of special environmental significance (including projects involving methane digesters), as determined by the Secretary, the Secretary may

(1) waive the limitation otherwise applicable under subsection (a); and

(2) raise the limitation to not more than $450,000 during any six-year period.

[1] So in original. The comma probably should follow “title)”.
[2] See References in Text note below.

16 USC 3839aa8 - Conservation innovation grants and payments

(a) Competitive grants for innovative conservation approaches

(1) Grants
Out of the funds made available to carry out this part, the Secretary may pay the cost of competitive grants that are intended to stimulate innovative approaches to leveraging the Federal investment in environmental enhancement and protection, in conjunction with agricultural production or forest resource management, through the program.

(2) Use
The Secretary may provide grants under this subsection to governmental and non-governmental organizations and persons, on a competitive basis, to carry out projects that

(A) involve producers who are eligible for payments or technical assistance under the program;

(B) leverage Federal funds made available to carry out the program under this part with matching funds provided by State and local governments and private organizations to promote environmental enhancement and protection in conjunction with agricultural production;

(C) ensure efficient and effective transfer of innovative technologies and approaches demonstrated through projects that receive funding under this section, such as market systems for pollution reduction and practices for the storage of carbon in soil; and

(D) provide environmental and resource conservation benefits through increased participation by producers of specialty crops.

(b) Air quality concerns from agricultural operations

(1) Implementation assistance
The Secretary shall provide payments under this subsection to producers to implement practices to address air quality concerns from agricultural operations and to meet Federal, State, and local regulatory requirements. The funds shall be made available on the basis of air quality concerns in a State and shall be used to provide payments to producers that are cost effective and reflect innovative technologies.

(2) Funding
Of the funds made available to carry out this part, the Secretary shall carry out this subsection using $37,500,000 for each of fiscal years 2009 through 2012.

16 USC 3839aa9 - Agricultural water enhancement program

(a) Definitions
In this section:

(1) Agricultural water enhancement activity
The term agricultural water enhancement activity includes the following activities carried out with respect to agricultural land:

(A) Water quality or water conservation plan development, including resource condition assessment and modeling.

(B) Water conservation restoration or enhancement projects, including conversion to the production of less water-intensive agricultural commodities or dryland farming.

(D) Irrigation system improvement and irrigation efficiency enhancement.

(E) Activities designed to mitigate the effects of drought.

(F) Related activities that the Secretary determines will help achieve water quality or water conservation benefits on agricultural land.

(2) Partner
The term partner means an entity that enters into a partnership agreement with the Secretary to carry out agricultural water enhancement activities on a regional basis, including

(A) an agricultural or silvicultural producer association or other group of such producers;

(B) a State or unit of local government; or

(3) Partnership agreement
The term partnership agreement means an agreement between the Secretary and a partner.

(4) Program
The term program means the agricultural water enhancement program established under subsection (b).

(b) Establishment of program
Beginning in fiscal year 2009, the Secretary shall carry out, in accordance with this section and using such procedures as the Secretary determines to be appropriate, an agricultural water enhancement program as part of the environmental quality incentives program to promote ground and surface water conservation and improve water quality on agricultural lands

(1) by entering into contracts with, and making payments to, producers to carry out agricultural water enhancement activities; or

(2) by entering into partnership agreements with partners, in accordance with subsection (c), on a regional level to benefit working agricultural land.

(1) Agreements authorized
The Secretary may enter into partnership agreements to meet the objectives of the program described in subsection (b).

(2) Applications
An application to the Secretary to enter into a partnership agreement under paragraph (1) shall include the following:

(A) A description of the geographical area to be covered by the partnership agreement.

(B) A description of the agricultural water quality or water conservation issues to be addressed by the partnership agreement.

(D) A description of the partners collaborating to achieve the project objectives and the roles, responsibilities, and capabilities of each partner.

(E) A description of the program resources, including payments the Secretary is requested to make.

(F) Such other such elements as the Secretary considers necessary to adequately evaluate and competitively select applications for partnership agreements.

(3) Duties of partners
A partner under a partnership agreement shall

(A) identify producers participating in the project and act on their behalf in applying for the program;

(B) leverage funds provided by the Secretary with additional funds to help achieve project objectives;

(D) at the conclusion of the project, report to the Secretary on project results.

(d) Agricultural water enhancement activities by producers
The Secretary shall select agricultural water enhancement activities proposed by producers according to applicable requirements under the environmental quality incentives program.

(e) Agricultural water enhancement activities by partners

(1) Competitive process
The Secretary shall conduct a competitive process to select partners. In carrying out the process, the Secretary shall make public the criteria used in evaluating applications.

(2) Authority to give priority to certain proposals
The Secretary may give a higher priority to proposals from partners that

(A) include high percentages of agricultural land and producers in a region or other appropriate area;

(B) result in high levels of applied agricultural water quality and water conservation activities;

(D) allow for monitoring and evaluation; and

(E) assist producers in meeting a regulatory requirement that reduces the economic scope of the producers operation.

(3) Priority to proposals from States with water quantity concerns
The Secretary shall give a higher priority to proposals from partners that

(A) include the conversion of agricultural land from irrigated farming to dryland farming;

(B) leverage Federal funds provided under the program with funds provided by partners; and

(4) Administration
In carrying out this subsection, the Secretary shall

(A) accept qualified applications

(i) directly from partners applying on behalf of producers; or

(ii) from producers applying through a partner as part of a regional agricultural water enhancement project; and

(B) ensure that resources made available for regional agricultural water enhancement activities are delivered in accordance with applicable program rules.

(f) Areas experiencing exceptional drought
Notwithstanding the purposes described in section 3839aa of this title, the Secretary shall consider as an eligible agricultural water enhancement activity the use of a water impoundment to capture surface water runoff on agricultural land if the agricultural water enhancement activity

(1) is located in an area that is experiencing or has experienced exceptional drought conditions during the previous two calendar years; and

(2) will capture surface water runoff through the construction, improvement, or maintenance of irrigation ponds or small, on-farm reservoirs.

(g) Waiver authority
To assist in the implementation of agricultural water enhancement activities under the program, the Secretary shall waive the applicability of the limitation in section 1308–3a (b)(2)(B) of title 7 for participating producers if the Secretary determines that the waiver is necessary to fulfill the objectives of the program.

(h) Payments under program

(1) In general
The Secretary shall provide appropriate payments to producers participating in agricultural water enhancement activities in an amount determined by the secretary^[1] to be necessary to achieve the purposes of the program described in subsection (b).

(2) Payments to producers in States with water quantity concerns
The Secretary shall provide payments for a period of five years to producers participating in agricultural water enhancement activities under proposals described in subsection (e)(3) in an amount sufficient to encourage producers to convert from irrigated farming to dryland farming.

(i) Consistency with State law
Any agricultural water enhancement activity conducted under the program shall be conducted in a manner consistent with State water law.

(j) Funding

(1) Availability of funds
In addition to funds made available to carry out this part under section 3841 (a) of this title, the Secretary shall carry out the program using, of the funds of the Commodity Credit Corporation

(A) $73,000,000 for each of fiscal years 2009 and 2010;

(B) $74,000,000 for fiscal year 2011; and

(2) Limitation on administrative expenses
None of the funds made available for regional agricultural water conservation activities under the program may be used to pay for the administrative expenses of partners.

[1] So in original. Probably should be “Secretary”.