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Rules and Regulations
Federal Register Vol. 86, No. 22
Thursday, February 4, 2021

This section of the FEDERAL REGISTER
contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.

DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation 7 CFR Part 1468
Docket ID NRCS20190006
RIN 0578AA66

Agricultural Conservation Easement Program Natural Resources Conservation Service NRCS and the Commodity Credit Corporation CCC, United States Department of Agriculture.
ACTION: Final rule.
AGENCY:

This final rule adopts, with minor changes, an interim rule published in the Federal Register on January 6, 2020. The interim rule implemented changes to ACEP that were necessitated by enactment of the Agriculture Improvement Act of 2018
the 2018 Farm Bill and changes for administrative streamlining improvements and clarifications. This final rule makes permanent many of the changes made in the interim rule, responds to comments received, and makes further adjustments in response to some of the comments received.
DATES: Effective: February 4, 2021.
FOR FURTHER INFORMATION CONTACT:
Carrie Lindig, 202 7201882, or carrie.lindig@usda.gov. Persons with disabilities who require alternative means for communication should contact the USDA Target Center at 202
7202600 voice.
SUPPLEMENTARY INFORMATION:
SUMMARY:

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Background The 2018 Farm Bill reauthorized and amended ACEP. The 2018 Farm Bill authorized the use of the existing regulations that had been implemented under the Agricultural Act of 2014 for the remainder of FY 2019 to the extent that those regulations were consistent with the 2018 Farm Bill changes.

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On January 6, 2020, CCC published an interim rule with request for comments in the Federal Register 85 FR 558590
that implemented mandatory changes made by the 2018 Farm Bill or that were required to implement administrative improvements and clarifications. This final rule adopts, with minor changes, the interim rule.
Discussion of ACEP 7 CFR part 1466
ACEP helps farmers and ranchers preserve their agricultural land and restore, protect, and enhance wetlands on eligible lands. The program has two components:
1 Agricultural land easements ACEPALE; and 2 Wetland reserve easements ACEPWRE.
The Secretary of Agriculture delegated authority to the Chief, NRCS, to administer ACEP.
Through ACEPALE, NRCS provides matching funds to eligible entities that are State, Tribal, and local governments, and nongovernmental organizations with farm and ranch land protection programs, to purchase agricultural land easements. Agricultural land easements are permanent or for the maximum duration authorized by State law.
Through ACEPWRE, NRCS protects wetlands on eligible lands by purchasing an easement directly from eligible landowners or entering into 30year contracts on acreage owned by Indian Tribes, in each case providing for the restoration, enhancement, and protection of wetlands and associated lands. Wetland reserve easements may be permanent, 30-years for acreage owned by Indian Tribes, or the maximum duration authorized by State law.
Participation in either ACEPALE or ACEPWRE is voluntary.
The interim rule:
Incorporated changes to the ACEP
purposes to limit nonagricultural uses that negatively affect agricultural uses and conservation values;
Added language to specify general monitoring responsibilities under ACEPALE and ACEPWRE;
Removed references to the Regional Conservation Partnership Program RCPP as the 2018 Farm Bill revised RCPP as a stand-alone program, which is now in 7 CFR part 1464;
Added definitions to reflect 2018
Farm Bill changes: Buy-protect-sell BPS transaction, monitoring report,
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wetland restoration, easement administration action, grazing management plan, and nonindustrial private forest land;
Removed definitions for: Active agricultural production, forest land, forest land of statewide importance, and projects of special significance;
Made changes to easement administration actions, including specifying the criteria that apply to each type of easement administrative actions;
Made revisions to the environmental markets section in response to the 2018 Farm Bill;
Removed the requirement that an eligible entity provide evidence at the time of application that they have funds available to meet the minimum cash contribution requirement;
Eliminated the requirement that land with a certain amount of forest land have a forest management plan;
Replaced the term proposed with permitted in text about the types of rights-of-way, infrastructure development, or other adjacent land uses whose impacts may cause land to be considered ineligible;
Specified that under a BPS
transaction, the eligible entity for meeting payment eligibility requirements highly erodible land and wetland conservation, and Adjusted Gross Income AGI is the landowner unless the eligible entity sells the fee title to a qualified farmer or rancher prior to, or at the time of, the easement closing, in which case the farmer or rancher purchaser must meet payment eligibility requirements;
To address BPS transactions, specified that eligible lands owned by the eligible entity may be eligible for enrollment if the land is owned, on a transitional basis, to protect the land through securing an agricultural land easement on the land and to transfer fee title ownership to a farmer or rancher;
Specified eligibility requirements related to BPS transactions;
Specified that NRCS will consider eligible entity cash contribution toward the easement purchase price and measures to increase agricultural viability as ranking criteria;
Specified that appropriate terms and conditions must be included in the easement deed to address items agreed to by the eligible entity as a matter of ranking and basis for selection for funding;

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