Wetlands Reserve Program

SUMMARY: The Commodity Credit Corporation (CCC) and the Natural

Resources Conservation Service (NRCS) are issuing its final rule for

the Wetlands Reserve Program. This rule adopts as final the interim

rule 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 final rule will

provide the process by which the Wetlands Reserve Program is

administered by the NRCS.

EFFECTIVE DATE: August 14, 1996.

FOR FURTHER INFORMATION CONTACT:

Robert Misso, (202) 720-3534.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

The Office of Management and Budget (OMB) has determined that this

final rule is significant and was reviewed by the Office of Management

and Budget under Executive Order 12866. Pursuant to Sec. 6(a)(3) of

Executive Order 12866, CCC and NRCS prepared a cost-benefit assessment

of the potential impact of the program. The assessment concluded that

several mechanisms at the State and National level of the agency are in

place to ensure environmental benefits are maximized for each Federal

dollar spent in the WRP. These mechanisms include a comprehensive

prioritization and ranking procedure for each site offered for

enrollment in the program and the requirement for locally-determined

easement payment caps based on the agricultural land value. These

mechanisms are developed and implemented on a state-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 Misso, Program Manager, Watersheds and

Wetlands Division, Natural Resources Conservation Service, P.O. Box

2890, Washington, DC 20250.

Regulatory Flexibility Act

It has been determined that the Regulatory Flexibility Act is not

applicable to this rule because neither the CCC or NRCS are required by

5 U.S.C. 553 or any other provision of law to publish a notice of

proposed rulemaking with respect to the subject matter of this rule.

Environmental Evaluation

It has been determined through an environmental review that this

action is a modification of the existing WRP and is covered under the

NRCS 1990 Environmental Assessment entitled, ``Wetlands Reserve

Program--Environmental Assessment: Wetlands Reserve Provision of the

Conservation Program Improvements Act of 1990.'' NRCS supplemented the

environmental assessment to evaluate the changes to the program made

pursuant to the Federal Agriculture Improvement and Reform Act of 1996.

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 because it involves direct payments to individuals and not

to State and local officials. See notice related to 7 CFR Part 3015,

Subpart V, published at 48 FR 29115 (June 24, 1983).

Federal Domestic Assistance Program

The title and number of the Federal Domestic Assistance Program, as

found in the Catalog of Federal Domestic Assistance, to which this rule

applies are: Wetlands Reserve Program--10.072.

Paperwork Reduction Act

No substantive changes have been made in this final rule which

affect the recordkeeping requirements and estimated burdens previously

reviewed and approved under OMB control number 0578-0013.

Executive Order 12778

This final 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. 3837a(e)(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 1995

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, and 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, 1996, the Federal Agriculture Improvement and Reform Act (the

1996 Act) authorized the enrollment of non-easement acres into the

program through the use of restoration cost-share agreements and made

other minor changes to the focus of the program. This final rule adopts

the procedures outlined in the interim rule with the

[[Page 42138]]

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 purposes. The 1996 Act amended the Food Security Act of

1985 (the 1985 Act), Pub. L. 99-198, to provide that the WRP should be

funded by CCC. Accordingly, this final rule is issued by CCC and NRCS.

Discussion of Comments

The NRCS received 16 comments concerning the interim rule during

the 60-day public comment period that ended July 31, 1995. Respondents

included national wildlife and conservation organizations, state

agencies, public utilities, and one State farm organization. Two of the

comments simply indicated support for the WRP and did not offer

specific suggested changes.

Definitions

NRCS received two comments requesting slight modifications to the

definitions in Sec. 620.2 of the interim rule. One comment suggested

that the definition for ``State Technical Committee'' be changed to

allow the State Conservationist flexibility in delegating the chair

position to other members of the committee. Currently, the State

Conservationist may delegate the chair position to other NRCS

personnel. Even so, implementation of the WRP at the state level

remains the responsibility of the State Conservationist and therefore,

no changes were made to the definition of 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 socioeconomic value placed upon these

characteristics.'' This change clarifies the intent of the interim rule

and is adopted in this final rule.

NRCS also received a comment from a state forestry agency

requesting that ``timber'' be included in the definition for ``wetland

functions and values.'' NRCS did not adopt this change because the

concept is incorporated in the current definition but the actual term

is too specific for a nationwide program which enrolls many different

types of wetlands with differing wetlands functions and values.

Another commenter indicated that the definition of ``Conservation

Districts'' be modified to reflect better the mission of conservation

districts. The NRCS adopts the suggested language as an improvement to

the clarity of the definition. Additionally, section 620.3(f) 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 Nation's soil,

water, and other natural resources, and NRCS will continue to seek

input from conservation districts in the administration of its

programs.

The Consolidated Farm Service Agency (CFSA) is now known as the

Farm Service Agency (FSA). The rule is amended to reflect this name

change.

Utility Easements

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 utility easement. Utility 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, (3) the exercise of the utility easement holder's rights

would undermine the purposes for which the WRP easement would be

established. If the NRCS is unable to obtain a subordination agreement

from the utility easement holder and the exercise of that easement

holder's rights would undermine the WRP easement, then the NRCS will

not purchase a WRP easement on that property. One of these commenters

also expressed support for the preference given permanent easements by

the interim rule.

Water Quality

One utility company commenter requested that the impact on drinking

water sources be a ranking factor for giving 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 established, the NRCS considers in its

ranking process, directly or indirectly, the impact an easement would

have on drinking water sources. Currently, each State Conservationist,

in consultation with the State Technical Committee, will determine the

weight that water quality in general, and impact on drinking water

specifically, should receive in the ranking process. In the future,

NRCS along with other agencies with wetland responsibilities will use a

system (Hydrogeomorphic Modeling (HGM)) to evaluate wetland functions

and values more objectively. NRCS will be better able to rank wetland

sites for WRP that differ, thus providing for more consistency within

and between States.

Compatible Uses

NRCS received four letters from State forestry organizations and

one letter from a State farm organization which expressed opposition to

language placed in the preamble to the WRP interim rule regarding

compatible economic uses of the easement area as it related to forest

management activities. NRCS also received a comment, however, from a

conservation organization which supported the language used in the

preamble, suggesting that some management approaches may not be

consistent with the long-term protection of wetland 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. In the

preamble, NRCS 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, the NRCS 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 compatible with the wetland functions and

values.

The document granting permission for forest management activities,

or any other request 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 use and is clearly beyond the

scope of restoration actions that would be feasible under any

subsequent WRP

[[Page 42139]]

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,

state, 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?'' This 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 commenters expressed

concern that the interim rule gave such priority to the enrollment of

permanent 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 acquiring easements based on the value of

the easement for protecting and enhancing habitat for migratory birds

and other wildlife.

Sections 620.8(b)(4) and (5) of the rule require that the NRCS

consider whether any permanent easement offer has the ecological and

cost characteristics which warrants acquisition before proceeding to

acquire a non-permanent easement. The commenters 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 October 1,

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 Secs. 620.8(b)(4) and (5) and thus eliminated

these particular constraints upon the enrollment of non-permanent

easements. The 1996 amendments also provided that the restoration cost-

share rate for a 30-year easement should be from 50 to 75 percent. The

interim rule provided that the easement payment rate for a non-

permanent easement should parallel the restoration cost-share rate.

Therefore, Sec. 620.8(b)(3) has been amended to indicate that the

easement payment for a 30-year easement shall be between 50 percent and

75 percent of that which would have been paid for a permanent easement.

One commenter noted that the $50,000 annual easement payment

limitation discriminated unduly against the acquisition of less than

permanent easements. The interim final rule had established the $50,000

annual easement payment cap for all non-permanent easement

acquisitions. However, by statute, the $50,000 annual easement payment

limitation for non-permanent easements is a discretionary cap. As such,

the NRCS has determined that in special circumstances involving

projects 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 connection 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.

Section 620.17 addresses the administrative appeal procedures to be

used when a person desires review of an administration determination

concerning eligibility for participation. The interim final rule for

the National Appeals Division (NED) Rules of Procedures, 60 FR 67298

(December 29, 1995), amended Sec. 620.17 to include reference to 7 CFR

Part 780 and 7 CFR Part 11. The NAD interim final rule also amended 7

CFR Part 614, the NRCS appeals procedures originally referenced in

Sec. 620.17. Part 614, as amended, references the other appeal

procedures at 7 CFR Part 780 and 7 CFR Part 11, and their additional

mention in Sec. 620.17 is therefore redundant. This final rule amends

Sec. 620.17 to remove the redundant reference to 7 CFR Part 780 7 CFR

Part 11.

Discussion of the Federal Agriculture Improvement and Reform Act

The Federal Agriculture Improvement and Reform Act (the 1996 Act)

was enacted on April 4, 1996. The 1996 Act amended the Food Security

Act of 1985, 16 U.S.C. 3801 et seq., to re-authorize the Environmental

Conservation Acreage Reserve Program as the umbrella conservation

program encompassing the Conservation Reserve Program (16 U.S.C. 3831-

3836), the newly-created Environmental Quality Incentives Program (16

U.S.C. 3840), and the Wetlands Reserve Program (16 U.S.C. 3837 et

seq.). Under the 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

WRP. 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, no new permanent easement can be enrolled until at last 75,000

acres of non-permanent easement are enrolled in the program. Section

721 of the agriculture Appropriations Act, enacted August 6, 1996,

stated that this condition on enrollment ``shall be deemed met upon the

enrollment of 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 year 1998 until

the Secretary has enrolled at least 31,667 acres in the program through

the use of temporary easements.'' In recognition that the NRCS must

enroll lands that maximize wildlife benefits 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 of 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 the new conservation programs and the

changes to existing conservation programs as a result of the enactment

of the 1996 Act. The NRCS greatly appreciates the input provided by the

public through the forums and written comments submitted to the agency.

The NRCS will consider these comments during the formulation of its

policies and guidelines.

Many of the changes to the WRP required by the 1996 Act are

directives to the agency which do not impact the

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WRP rule. Some of the amendments, however, require specific, non-

discretionary changes to the WRP regulations. Since these changes are

mandatory and do not require agency interpretation, the CCC and NRCS

have incorporated them into this final rule. 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.

Section 620.3

The 1996 Act requires the Department of Agriculture to avoid

duplication of conservation plans required for the implementation of

the highly erodible land conservation provisions of the Food Security

Act of 1985, CRP, and the WRP. In response to this requirement,

Sec. 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 be 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 Sec. 620.3(h) that the Secretary of

Agriculture may designate areas as conservation priority areas to

assist landowners to meet nonpoint source pollution requirements and

other conservation needs.

Section 620.4

The 1996 Act amendments authorize the enrollment of acres into the

WRP through the use of restoration cost-share agreements. Therefore,

the first sentence of Sec. 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 erodible land and wetland conservation

provisions of the 1985 Act, 16 U.S.C. 3801 et seq., 7 CFR part 12.

Therefore, landowner eligibility, Sec. 620.4(c), is amended to reflect

that a person may not be eligible for participation in WRP if the

requirements of 7 CFR part 12 have not been met.

The 1996 Act amendments specify that the 25 percent county

enrollment cap and the 10 percent county easement cap only apply to

acres enrolled in the Conservation Reserve Program (CRP) and the WRP,

and not all acres enrolled in the Environmental Conservation Acreage

Reserve Program. Therefore, the reference to the Environmental

Conservation Acreage Reserve Program in Sec. 620.4(b)(1) has been

replaced with specific reference to the CRP and the WRP. 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, Sec. 620.4(b)(2) has been amended to incorporate this new

criterion.

The 1996 Act amendments expanded the eligibility criteria to

require specifically that land enrolled in the program maximize

wildlife benefits. Therefore, Sec. 620.4(d) is amended to incorporate

the additional eligibility criterion.

The 1985 Act provides that pasture land established to trees under

the CRP is ineligible for enrollment in the WRP. Even though such lands

were not enrolled in the program, specific mention of this

ineligibility provision was not made in the interim rule. Section

620.4(e) is amended to incorporate specifically this statutory

provision.

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 easements, one-third of the acres through the use of

30-year easements, and one-third of the acres through the use of

restoration cost-share agreements. The NRCS has considered land

enrolled in the program at the time the NRCS determines that a

landowner's offer is eligible, funds are committed to acquire that

particular easement, and the landowner 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, 30-

year easements, and restoration cost-share agreements, Sec. 620.7(b) is

amended to clarify that enrollment occurs at this stage in the process.

Sections 620.8 and 620.13

The 1996 Act amends 16 U.S.C. 3837a(f) to 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 30 annual payments of either equal or

unequal size. Therefore, Sec. 620.8(e) and Sec. 620.13(b)(1), which

incorporated the original statutory provisions as to payments, are

amended to reflect this specific change in law regarding easement

payments.

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 cost-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 Sec. 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 Sec. 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 Interior means agreement at the local level and

consultation at the State level. Therefore, NRCS has added these

changes to Sec. 620.11 by 1) 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 now references the development of the plan by the

local NRCS representative.

Section 620.14

During the implementation of the program under the interim rule,

confusion arose regarding the language in Sec. 620.14 about

``associated'' contract. The term ``associated'' was intended to mean a

contract ``associated with the program'' other than the easement deed.

As stated, the term ``associated'' inadvertently created the mistaken

conclusion that the contract is attached to the easement deed.

Therefore, the term ``associated'' has been removed to improve the

clarity of this section.

[[Page 42141]]

Parts 620 and 1467

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 the Department

of Agriculture, and the rule is modified accordingly.

List of Subjects in 7 CFR Part 1467

Administrative practice and procedure, Agriculture, Soil

conservation, Wetlands.

Accordingly, the interim rule establishing 7 CFR part 620 which was

published at 60 FR 28511 on June 1, 1995, is adopted as a final rule

with the following changes:

1. In 7 CFR, chapter VI, part 620 is re-designated as chapter XIV,

part 1467, and the sections are re-designated as set forth below:

------------------------------------------------------------------------

New

Old section section

------------------------------------------------------------------------

620.1....................................................... 1467.1

620.2....................................................... 1467.3

620.3....................................................... 1467.2

620.4....................................................... 1467.4

620.5....................................................... 1467.5

620.6....................................................... 1467.6

620.7....................................................... 1467.7

620.8....................................................... 1467.8

620.9....................................................... 1467.9

620.10...................................................... 1467.10

620.11...................................................... 1467.11

620.12...................................................... 1467.12

620.13...................................................... 1467.13

620.14...................................................... 1467.14

620.15...................................................... 1467.15

620.16...................................................... 1467.16

620.17...................................................... 1467.17

620.18...................................................... 1467.18

------------------------------------------------------------------------

PART 1467--WETLANDS RESERVE PROGRAM

2. The authority citation for re-designated part 1467 continues to

read as follows:

Authority: 16 U.S.C. 590a, et seq.; and 16 U.S.C. 3837, et seq.

3. Section 1467.1 is amended by revising the heading to the section

to read as follows:

Sec. 1467.1 Applicability.

* * * * *

4. Section 1467.2 is amended by revising paragraphs (c), (f), and

(h) and amending paragraph (g) by revising the second and third

sentences to read as follows:

Sec. 1467.2 Administration.

* * * * *

(c) As determined by the Chief and the Administrator of the Farm

Service 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 management and monitoring, outreach efforts, and program

implementation assistance.

(g) * * * The NRCS may consult with the Forest Service, other

Federal or State agencies, conservation districts or other

organizations in program administration. No determination by the U.S.

Fish and Wildlife Service, the Forest Service, Federal or State agency,

conservation district, or other organization shall compel the NRCS to

take any action with the NRCS determines will not serve the purposes of

the program established by this part.

(h) The Chief may allocate funds for such purposes related to:

special pilot programs for wetland management and monitoring;

acquisition of wetland easements with emergency funding; cooperative

agreements with other Federal or State agencies for program

implementation; coordination of easement enrollment across State

boundaries; coordination of the development of conservation plans; or,

for other goals of the WRP found in this part. The Department may

designate areas as conservation priority areas where environmental

concerns are especially pronounced and to assist landowners in meeting

nonpoint source pollution requirements and other conservation needs.

5. Section 1467.3 is amended by removing the definitions for

``Farmed wetland'', ``Farmed wetland pasture'', and ``Prior converted

cropland''; by revising the definitions for ``Conservation District'',

``Conservation Reserve Program'', ``Contract'', ``Person'' and the

introductory text of ``Wetlands functions and values''; and by adding a

definition for ``Department'' to read as follows:

Sec. 1467.3 Definitions.

* * * * *

Conservation District is a subdivision of a State government

organized pursuant to applicable State law to promote and undertake

actions for the conservation of soil, water, and other natural

resources.

Conservation Reserve Program (CRP) means the program administered

by the Commodity Credit Corporation pursuant to 16 U.S.C. 3831-3836.

* * * * *

Contract means the document that 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, partnership, association, corporation,

estate or trust, or other business enterprise or other legal entity

and, whenever applicable, a State, a political subdivision of a State,

or any agency thereof.

* * * * *

Wetland functions and values means the hydrological and biological

characteristics of wetlands and the socioeconomic value placed upon

these characteristics, including: * * *

* * * * *

6. Section 1467.4 is amended by revising the first sentence of

paragraph (a), and revising paragraphs (b)(1), the second sentence of

(b)(2), the introductory text of (c), paragraph (d)(2), the

introductory text of (d)(3), and paragraph (e)(2) to read as follows:

Sec. 1467.4 Program requirements.

(a) General. Under the WRP, the Department may purchase

conservation easements from, or enter into restoration cost-share

agreements with, eligible landowners who voluntarily cooperate in the

restoration and protection of wetlands and associated lands. * * *

(b) * * *

(1) Except for areas devoted to windbreaks or shelterbelts after

November 28, 1990, no more than 25 percent of the total cropland in any

county, as determined by the Farm Service Agency, may be enrolled in

the CRP and the WRP, and no more than 10 percent of the total cropland

in the county may be subject to an easement acquired under the CRP and

the WRP.

(2) * * * Such a waiver will only be approved if it will not

adversely affect the local economy, and operators in the county are

having difficulties complying with the conservation plans implemented

under 16 U.S.C. 3812.

(c) Landowner eligibility. The NRCS may determine that a person is

not eligible to participate in the WRP or receive any WRP payment

because the person did not comply with the

[[Page 42142]]

provisions of 7 CFR part 12. To be eligible to enroll an easement in

the WRP, a person must: * * *

* * * * *

(d) * * *

* * * * *

(2) Land shall only be considered eligible for enrollment in the

WRP if the NRCS determines, in consultation with the U.S. Fish and

Wildlife Service, that:

(i) Such land maximizes 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, taking 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 Sec. 1467.6, paragraphs (a) through (c) are re-designated as

paragraphs (b) through (d), a new paragraph (a) is added to read as

follows:

Sec. 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:

Sec. 1467.7 Enrollment of easements.

* * * * *

(b) Effect of letter of intent to continue (enrollment). * * *

* * * * *

9. Section 1467.8 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 (e)(2);

(d) Revising re-designated paragraph (e)(2); and,

(e) Revising paragraph (h).

The revisions read as follows:

Sec. 1467.8 Compensation for easements.

* * * * *

(b) * * *

(3) Easement payments for non-permanent 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 for the

short-term 30-year easement shall not be less than 50 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 easements. With respect to

non-permanent easements, the annual amount of easement payments to any

person may not exceed $50,000 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 Sec. 1467.9, the first sentence of the introductory text of

paragraph (a) and paragraph (a)(2) are revised to read as follows:

Sec. 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 agreement, the Department shall offer to pay not

less than 50 percent nor more than 75 percent of such costs.

Restoration cost-share payments offered by NRCS for the short-term, 30-

year easements shall be 50 to 75 percent.

* * * * *

11. In Sec. 1467.10, the heading for the section and paragraph

(d)(5) are revised to read as follows:

Sec. 1467.10 Easement participation requirements.

* * * * *

(d) * * *

(5) Have the option to enter into an agreement with governmental or

private organizations to assist in carrying out any landowner

responsibilities on the easement area;

* * * * *

12. In Sec. 1467.11, paragraph (a) is revised and a new sentence is

added at the end of paragraph (b) to read as follows:

Sec. 1467.11 The WRPO development.

(a) The development of the WRPO shall be made through the local

NRCS representative, in consultation with the State Technical

Committee, and 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 Sec. 1467.12, paragraph (b) is revised to read as follows:

Sec. 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 program objectives, and must result in equal or greater wildlife

benefits, wetland functions and values, ecological and economic values

to the 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 1467.13 is amended by revising paragraph (b)(1) to read

as follows:

Sec. 1467.13 Transfer of land.

* * * * *

(b) * * *

(1) For easements with multiple annual payments, any remaining

easement payments will be made to the original landowner unless the

[[Page 42143]]

Department receives an assignment of proceeds.

* * * * *

15. In Sec. 1467.14, remove the word ``associated'' from paragraphs

(a) and (c).

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

follows:

Sec. 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.

* * * * *

17. In addition to the amendments set forth above, in 7 CFR part

1467 remove the words ``Consolidated Farm Service Agency'' wherever

they appear and add, in their place, the words ``Farm Service Agency''.

18. In 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, D.C. on August 8, 1996.

Paul Johnson,

Chief, Natural Resources Conservation Service, Vice President,

Commodity Credit Corporation.

[FR Doc. 96-20623 Filed 8-13-96; 8:45 am]

BILLING CODE 3410-16-M