AGRICULTURAL WATER QUALITY INCENTIVES.

SEC. 1439. AGRICULTURAL WATER QUALITY INCENTIVES. Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) (as amended by section 1438) is further amended by adding after section 1237F the following new chapter: “CHAPTER 2— AGRICULTURAL WATER QUALITY INCENTIVES “SEC. 1238. POLICY. “The policy of Congress is that water quality protection, including source reduction of agricultural pollutants, henceforth shall be an important goal of the programs and policies of the Department of Agriculture. Furthermore, agricultural producers in environmentally sensitive areas should request assistance to develop and implement on-farm water quality protection plans in order to assist in compliance with State and Federal environmental laws and to enhance the environment. “SEC. 1238A. DEFINITIONS. “As used in this chapter— “(1) Agricultural water quality protection practice.— The term ‘agricultural water quality protection practice’ means a farm-level practice or a system of practices designed to protect water quality by mitigating or reducing the release of agricultural pollutants, including nutrients, pesticides, animal waste, sediment, salts, biological contaminants, and other materials, into the environment. “(2) Source reduction.— The term ‘source reduction’ means minimizing the generation, emission, or discharge of agricultural pollutants or wastes through the modification of agricultural production systems and practices. “SEC. 1238B. AGRICULTURAL WATER QUALITY PROTECTION PROGRAM. “(a) Incentives.— “(1) In general.— During the 1991 through 1995 calendar years, the Secretary shall formulate and carry out a voluntary incentive program, in accordance with this chapter, through agreements to assist owners and operators of a farm in developing and implementing a water quality protection plan pursuant to this section. “(2) Agreements.— The Secretary shall enter into agreements of 3 to 5 years upon the request of owners and operators of farms in eligible areas but shall not enter into any such agreements after December 31, 1995. “(3) Duties of owners and operators.— In order to receive annual incentive payments, an owner or operator of a farm must agree— “(A) to implement a water quality protection plan approved by the Secretary subject to the agreement established under this chapter; “(B) not to conduct any practices on the farm that would tend to defeat the purposes of this chapter; “(C) to comply with such additional provisions as the Secretary determines are desirable and are included in the agreement to carry out the water quality protection plan or to facilitate the practical administration of the program; 104 STAT. 3591 “(D) on the violation of a term or condition of the agreement at any time the owner or operator has control of the land to refund any incentive or cost share payment received with interest and forfeit any such future payments as determined by the Secretary; “(E) on the transfer of the right and interest of the owner or operator in land subject to the agreement, unless the transferee of such right and interest agrees with the Secretary to assume all obligations of the agreement, to refund any such cost share and incentive payments received under this chapter, as determined by the Secretary; “(F) to accurately report nutrient, pesticide and animal waste materials usage rates on management areas for three previous years; and “(G) to supply production evidence, well test results, soil tests, tissue tests, nutrient application levels, pesticide application levels, and animal waste material usage levels, to the Soil Conservation Service or another designee of the Secretary including the local conservation district for each year of the agreement, as determined necessary by the Secretary. “(4) Wetland or wildlife habitat options.— “(A) Cost share assistance.— Owners and operators who voluntarily agree to develop and implement agricultural production practices, in concert with their water quality protection plan, that preserve and enhance wetland or wildlife habitat, shall also be eligible to receive cost share assistance for the implementation of such practices. The Secretary shall develop procedures for approving such agricultural practices, as a part of and consistent with the objectives of the water quality protection plan, that qualify for cost share assistance. “(B) Wetland preservation and wildlife habitat improvement options.— “(i) Wetland preservation.— The Secretary shall encourage owners and operators who choose the wetland preservation option to implement, improve and maintain agricultural production practices, in concert with their water quality protection plan, that are designed to preserve and enhance existing wetland. “(ii) Wildlife habitat improvement.— The Secretary shall encourage owners and operators who choose the wildlife habitat improvement option to implement, improve and maintain agricultural production practices, in concert with their water quality protection plan, that are designed to improve on-farm wildlife habitat, including the establishment of perennial cover, the protection of riparian areas, wildlife corridors, and areas of critical habitat for endangered species. “(5) Duties of the secretary.— In return for an incentive agreement voluntarily entered into under this chapter, the Secretary shall assist the owner or operator in the protection and improvement of surface and groundwater quality and related resources by— “(A) providing an eligibility assessment of the farming operation as a basis for developing the water quality protection plan and any options associated with such plan; 104 STAT. 3592 “(B) providing technical assistance in developing and implementing agricultural water quality protection plans; “(C) providing an annual incentive payment for developing and implementing agricultural production practices in accordance with an approved water quality protection plan submitted by the owner or operator; “(D) providing cost share assistance for implementing the wetland preservation or wildlife habitat improvement options; “(E) providing participants with information, education, and training to aid in implementation of a plan; and “(F) encouraging the owner or operator to obtain cost share assistance under other Federal, State, or local cost share programs. “(6) Payments.— “(A) Terms.— Payments shall be made under this section for a period of not less than 3 nor more than 5 years, as determined appropriate by the Secretary, and as specified in the contract entered into under the program established under this chapter. “(B) Amounts.— “(i) Incentive.— In determining the amount of incentive payment to be made to a participant under this chapter, the Secretary shall consider, among other things, the amount necessary on a per acre basis to encourage producers to participate, additional costs incurred by the producer, and the production values forgone, if any, in implementing the practices. ‘(ii) Limitation.— Cost share payments shall be made in an amount not to exceed 50 percent of the cost of the eligible practice. “(C) Limitations.— Payments to a participant agreeing to implement a plan on acres devoted to the production of an agricultural commodity under this chapter shall not exceed— “(i) $3500 per person per year in the form of incentive payments; and “(ii) not more than an additional $1500 per person per contract in the form of cost share assistance. “(D) Manner.— The Secretary may make a lump sum payment to an owner or operator of the total incentive payments required under a contract entered into under this chapter, as reduced to present value, if such lump sum payment is necessary to enable the producer to pay the initial costs of implementing a practice required under such contract. “(E) Other programs.— Payments received by an owner or operator under this chapter shall be in addition to, and not affect, the total amount of payments that such owner or operator is otherwise eligible to receive under this Act, the Food, Agriculture, Conservation, and Trade Act of 1990, or the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), except that payments for a practice or practices shall not be made under this chapter if payments or assistance is provided for such practice under any other Federal program. “(7) Modifications.— The Secretary may modify an agreement entered into with a participant under this chapter if the104 STAT. 3593 participant agrees to such modification and the Secretary determines such modifications are desirable— “(A) to carry out this chapter; “(B) if natural causes prevent the implementation, improvement or maintenance of practices as required under such contract; “(C) if the contract cannot be carried out without economic losses that threaten the viability of the farming operation; “(D) if the owner or operator and the Secretary agree on contract modifications that will not compromise the water quality goals and objectives in the existing contract and that will be no less effective or timely in achieving such goals and objectives than the existing contract; “(E) to facilitate the practical administration of this chapter; or “(F) to achieve such other goals as the Secretary determines are appropriate, consistent with this chapter. “(8) Termination.— The Secretary may terminate an agreement entered into with a participant under this chapter if— “(A) (i) the producer agrees to such termination; or “(ii) the producer violates the terms and conditions of the agreement; and “(B) the Secretary determines that such termination would be in the public interest. “(9) Refunds.— The Secretary shall obtain refunds of incentive and cost share payments with interest, to the extent determined by the Secretary to be in the public interest, if an agreement is terminated or violated. “(10) Base and yield protection.— An owner or operator agreeing to implement an approved water quality protection plan pursuant to this chapter shall, by regulations established by the Secretary, receive program payment yield and base protection on the farm during the agreement period. “(11) Acreage levels.— The Secretary shall, to the extent practicable, seek to enter into agreements with participants to place into the program a total of 10 million acres during the 1991 through 1995 calendar years. “(b) Content of Plans.— Agricultural water quality protection plans should include as applicable— “(1) a description of the prevailing farm enterprises, cropping patterns, and cultural practices, and other information that may be relevant to protecting water quality on the farm; “(2) a description of farm resources, including soil characteristics, proximity to water bodies, and other relevant characteristics of the farm related to water quality; “(3) to the extent practicable, specific, quantitative water quality protection goals and objectives that will minimize contamination or degradation of surface or ground water; “(4) water quality protection practices that will, if implemented by a producer, assist such producer in complying with State and Federal environmental laws, and where appropriate, will complement conservation plans prepared for highly erodible lands under section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812); “(5) the specific agricultural production practices that will be implemented, improved and maintained, including practices104 STAT. 3594 that ensure continued farm productivity and profitability by promoting the efficient use of fertilizers, other crop nutrients, and pesticides, as well as management practices that are to be avoided, in order to carry out and achieve the water quality goals and objectives of the producer; “(6) to the extent practicable, water quality protection practices for safe storage, mixing and loading of pesticides and fertilizers, and storage and handling of animal waste; “(7) the timing and sequence for implementing such practices that will assist the producer in complying with State and Federal environmental laws, taking into consideration schedules that may be established in such laws; “(8) information that will enable evaluation of the effectiveness of the plan in protecting water quality; and “(9) recommendations of application rates and disposal methods of nutrients, pesticides, and animal waste materials as recommended by the Secretary. “(c) Plan Development.— The Secretary, acting through the Assistant Secretary for Natural Resources and Environment, shall establish a procedure to enable agricultural producers to develop agricultural water quality protection plans pursuant to this section. “(d) Protection of Confidentiality.— The Secretary shall protect the confidentiality of the information contained in these plans to the extent confidentiality is provided under current law to information contained in conservation plans under section 1212. The Secretary shall provide notice to producers that information contained in the plans developed under this subsection will be available to the public upon request. “(e) Acceptance of Contracts.— The Secretary shall begin accepting contracts within one year after the date of enactment of this chapter. “(f) Federal or State Provisions.— Acceptance of an agreement under this section or receipt of assistance pursuant to section 1238D shall not be deemed to satisfy the requirements of any State or Federal law. “SEC. 1238C. ELIGIBLE LANDS. “(a) Eligible Lands.— Lands eligible for enrollment in the program pursuant to section 1238B or for technical assistance pursuant to section 1238D shall include— “(1) areas that are not more than 1,000 feet from a public well unless a larger wellhead area is deemed desirable for inclusion by the Secretary in consultation with the Environmental Protection Agency and the State agency responsible for the State’s operations under the Safe Drinking Water Act (42 U.S.C. 300h–7); “(2) areas that are in shallow Karst topography areas where sinkholes convey runoff water directly into ground water; “(3) areas that are considered to be critical cropland areas within hydrologic units identified in a plan submitted by the State under section 319 of the Federal Water Pollution Control Act (33 U.S.C. 1329) as having priority problems that result from agricultural nonpoint sources of pollution; “(4) areas where agricultural nonpoint sources have been determined to pose a significant threat to habitat utilized by threatened and endangered species; 104 STAT. 3595 “(5) areas recommended by State lead agencies for environmental protection as designated by a Governor of a State; “(6) in consultation with the Secretary, other areas recommended by the Administrator of the Environmental Protection Agency or the Secretary of the Interior; “(7) lands that are not located within the designated or approved areas but that are located such that if permitted to continue to operate under existing management practices would defeat the purpose of the program as determined by the Secretary; or “(8) areas contributing to identified water quality problems in areas designated by the Secretary. “(b) Priority Lands.— In accepting agreements pursuant to this section and providing assistance pursuant to section 1238D, the Secretary shall give priority to lands on which agricultural production has been determined to contribute to, or creates, the potential for failure to meet applicable water quality standards or the goals and requirements of Federal or State laws governing surface and ground water quality, in consultation with State officials having responsibility for monitoring and protecting water quality, the management of which provide the greatest public benefit as determined by the Secretary. “SEC. 1238D. TECHNICAL ASSISTANCE FOR WATER QUALITY PROTECTION. “(a) In General.— Upon request, the Secretary shall provide technical assistance to agricultural producers on eligible lands to assist such producers in developing and implementing agricultural water quality protection plans. “(b) Field Office Technical Guidance for Water Quality Protection.— “(1) Development.— The Secretary shall develop guidance materials describing a process to assist agricultural producers in preparing and implementing on-farm agricultural water quality protection plans necessary to assist in complying with State and Federal environmental laws, and to implement the agricultural water quality protection policy established by this chapter. “(2) Content.— The guidance materials required under this subsection shall reflect local agronomic, economic and ecological conditions to the extent practicable, and include and describe in detail— “(A) procedures to identify potential sources of pollution on a farm; “(B) to the extent practicable, a range of water quality protection practices, and their economic cost and benefit, that is suitable to local ecological characteristics and prevailing farm enterprises and that complement conservation plans prepared for highly erodible lands under section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812); “(C) storage, mixing, and loading practices for on-farm pesticide and fertilizer use to protect water quality; “(D) information regarding relevant State and Federal environmental laws that may impact upon the producer; “(E) criteria to evaluate the effectiveness of on-farm plans in protecting water quality and provide aggregate data to aid in evaluating compliance with State and Federal environmental laws; and 104 STAT. 3596 “(F) means to evaluate the economic costs and benefits of agricultural water quality protection practices, including source reduction practices. “(3) Deadline.— Local guidance materials shall be developed no later than two years after the date of enactment of this chapter and updated periodically, but not less than every two years. “(4) Consultation.— The Secretary shall consult with the Administrator of the Environmental Protection Agency, the Secretary of the Interior, and relevant State agencies in developing guidance materials under this section to ensure that such materials contain accurate and up-to-date technical information on practices designed to protect water quality. “(c) Personnel.— The Secretary shall designate the Soil Conservation Service as the lead agency for purposes of providing technical assistance in connection with implementing this chapter, and shall assign such personnel from the Extension Service, Agricultural Research Service, and other agencies as are necessary to fulfill the purposes of this chapter. The Secretary may request the services of the State water quality agencies, State fish and wildlife agencies, State forestry agencies, or any other source deemed appropriate to assist in providing the technical assistance necessary for the development and implementation of the water quality protection plans. “(d) Limitation of Liability.— No person shall be permitted to bring or pursue any claim or action against any official or entity based upon or resulting from any technical assistance provided to assist in complying with State or Federal environmental laws under subsection (b)(1) of this section. “SEC. 1238E. DEMONSTRATION AND PILOT PROGRAMS. “(a) Demonstration and Model Farm Programs.— To the extent practicable and consistent with the requirements of the program established under this chapter and the priority described in section 1238C(b), the Secretary may enter into contracts under this chapter with owners and operators to facilitate the participation by such owners or operators in demonstration or model farm programs that are sponsored by governmental or private nonprofit entities and are designed to provide education on, disseminate information about, and demonstrate the practical application of agricultural production practices that reduce the potential for contamination or degradation of surface water or ground water while emphasizing practices that enhance profitability and productivity. “(b) Pilot Programs.— To complement and enhance the effectiveness of the program established under this chapter, the Secretary may establish pilot programs, for implementation in areas determined to be priority areas under section 1238C(b), that shall be designed to provide assistance to address a wide range of farming operations and production conditions that enhance the efficient use of farm inputs and reduce waste.”. “SEC. 1238F. REPORT TO CONGRESS. “Not later than September 30, 1992, the Secretary shall provide to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an interim report describing the degree of participation in the planning process and program established in this subtitle, including the number of plans that have been prepared, information104 STAT. 3597 on the number of plans that are in implementation, including the number and acreage of farms engaged in planning by type of environmentally sensitive area, information relevant for evaluating the effectiveness of agricultural water quality plans in protecting water quality, and other information pertinent to implementation of this chapter. A final report shall be submitted no later than September 30, 1994.”.