ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

SEC. 334. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by adding at the end the following: 110 STAT. 997 “CHAPTER 4— ENVIRONMENTAL QUALITY INCENTIVES PROGRAM “SEC. 1240. PURPOSES. “The purposes of the environmental quality incentives program established by this chapter are to— “(1) combine into a single program the functions of— “(A) the agricultural conservation program authorized by sections 7 and 8 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g and 590h) (as in effect before the amendments made by section 336(a)(1) of the Federal Agriculture Improvement and Reform Act of 1996); “(B) the Great Plains conservation program established under section 16(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p(b)) (as in effect before the amendment made by section 336(b)(1) of the Federal Agriculture Improvement and Reform Act of 1996); “(C) the water quality incentives program established under chapter 2 (as in effect before the amendment made by section 336(h) of the Federal Agriculture Improvement and Reform Act of 1996); and “(D) the Colorado River Basin salinity control program established under section 202(c) of the Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)) (as in effect before the amendment made by section 336(c)(1) of the Federal Agriculture Improvement and Reform Act of 1996); and “(2) carry out the single program in a manner that maximizes environmental benefits per dollar expended, and that provides— “(A) flexible technical and financial assistance to farmers and ranchers that face the most serious threats to soil, water, and related natural resources, including grazing lands, wetlands, and wildlife habitat; “(B) assistance to farmers and ranchers in complying with this title and Federal and State environmental laws, and encourages environmental enhancement; “(C) assistance to farmers and ranchers in making beneficial, cost-effective changes to cropping systems, grazing management, manure, nutrient, pest, or irrigation management, land uses, or other measures needed to con serve and improve soil, water, and related natural resources; and “(D) for the consolidation and simplification of the conservation planning process to reduce administrative burdens on producers. “SEC. 1240A. DEFINITIONS. “In this chapter: “(1) Eligible land.— The term ‘eligible land’ means agricultural land (including cropland, rangeland, pasture, and other land on which crops or livestock are produced), including agricultural land that the Secretary determines poses a serious threat to soil, water, or related resources by reason of the soil types, terrain, climatic, soil, topographic, flood, or saline characteristics, or other factors or natural hazards. “(2) Land management practice.— The term ‘land management practice’ means a site-specific nutrient or manure 110 STAT. 998management, integrated pest management, irrigation management, tillage or residue management, grazing management, or other land management practice carried out on eligible land that the Secretary determines is needed to protect, in the most cost-effective manner, water, soil, or related resources from degradation. “(3) Livestock.— The term ‘livestock’ means dairy cattle, beef cattle, laying hens, broilers, turkeys, swine, sheep, and such other animals as determined by the Secretary. “(4) Producer.— The term ‘producer’ means a person who is engaged in livestock or agricultural production (as defined by the Secretary). “(5) Structural practice.— The term ‘structural practice’ means— “(A) the establishment on eligible land of a site-specific animal waste management facility, terrace, grassed waterway, contour grass strip, filterstrip, tailwater pit, permanent wildlife habitat, or other structural practice that the Secretary determines is needed to protect, in the most cost-effective manner, water, soil, or related resources from degradation; and “(B) the capping of abandoned wells on eligible land. “SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. “(a) Establishment.— “(1) In general.— During the 1996 through 2002 fiscal years, the Secretary shall provide technical assistance, cost-share payments, incentive payments, and education to producers, who enter into contracts with the Secretary, through an environmental quality incentives program in accordance with this chapter. “(2) Eligible practices.— “(A) Structural practices.— A producer who implements a structural practice shall be eligible for any combination of technical assistance, cost-share payments, and education. “(B) Land management practices.— A producer who performs a land management practice shall be eligible for any combination of technical assistance, incentive payments, and education. “(b) Application and Term.— A contract between a producer and the Secretary under this chapter may— “(1) apply to 1 or more structural practices or 1 or more land management practices, or both; and “(2) have a term of not less than 5, nor more than 10, years, as determined appropriate by the Secretary, depending on the practice or practices that are the basis of the contract. “(c) Structural Practices.— “(1) Offer selection process.— The Secretary shall, to the maximum extent practicable, establish a process for selecting applications for financial assistance if there are numerous applications for assistance for structural practices that would provide substantially the same level of environmental benefits. The process shall be based on— “(A) a reasonable estimate of the projected cost of the proposals and other factors identified by the Secretary 110 STAT. 999for determining which applications will result in the least cost to the program authorized by this chapter; and “(B) the priorities established under this subtitle and such other factors determined by the Secretary that maximize environmental benefits per dollar expended. “(2) Concurrence of owner.— If the producer making an offer to implement a structural practice is a tenant of the land involved in agricultural production, for the offer to be acceptable, the producer shall obtain the concurrence of the owner of the land with respect to the offer. “(d) Land Management Practices.— The Secretary shall establish an application and evaluation process for awarding technical assistance or incentive payments, or both, to a producer in exchange for the performance of 1 or more land management practices by the producer. “(e) Cost-Share Payments, Incentive Payments, and Technical Assistance.— “(1) Cost-share payments.— “(A) In general.— The Federal share of cost-share payments to a producer proposing to implement 1 or more structural practices shall be not more than 75 percent of the projected cost of the practice, as determined by the Secretary, taking into consideration any payment received by the producer from a State or local government. “(B) Limitation.— A producer who owns or operates a large confined livestock operation (as defined by the Secretary) shall not be eligible for cost-share payments to construct an animal waste management facility. “(C) Other payments.— A producer shall not be eligible for cost-share payments for structural practices on eligible land under this chapter if the producer receives cost-share payments or other benefits for the same land under chapter 1 or 3. “(2) Incentive payments.— The Secretary shall make incentive payments in an amount and at a rate determined by the Secretary to be necessary to encourage a producer to perform 1 or more land management practices. “(3) Technical assistance.— “(A) Funding.— The Secretary shall allocate funding under this chapter for the provision of technical assistance according to the purpose and projected cost for which the technical assistance is provided for a fiscal year. The allocated amount may vary according to the type of expertise required, quantity of time involved, and other factors as determined appropriate by the Secretary. Funding shall not exceed the projected cost to the Secretary of the technical assistance provided for a fiscal year. “(B) Other authorities.— The receipt of technical assistance under this chapter shall not affect the eligibility of the producer to receive technical assistance under other authorities of law available to the Secretary. “(C) Private sources.— The Secretary shall ensure that the processes of writing and developing proposals and plans for contracts under this chapter, and of assisting in the implementation of structural practices and land management practices covered by the contracts, are open to individuals in agribusiness, including agricultural 110 STAT. 1000producers, representatives from agricultural cooperatives, agricultural input retail dealers, and certified crop advisers. The requirements of this subparagraph shall also apply to any other conservation program of the Department of Agriculture that provides incentive payments, technical assistance, or cost-share payments. “(f) Modification or Termination of Contracts.— “(1) Voluntary modification or termination.— The Secretary may modify or terminate a contract entered into with a producer under this chapter 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 this chapter if the Secretary determines that the producer violated the contract. “(g) Non-Federal Assistance.— The Secretary may request the services of a State water quality agency, State fish and wildlife agency, State forestry agency, or any other governmental or private resource considered appropriate to assist in providing the technical assistance necessary for the development and implementation of a structural practice or land management practice. “SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS. “In providing technical assistance, cost-share payments, and incentive payments to producers, the Secretary shall accord a higher priority to assistance and payments that— “(1) are provided in conservation priority areas established under section 1230(c); “(2) maximize environmental benefits per dollar expended; or “(3) are provided in watersheds, regions, or conservation priority areas in which State or local governments have provided, or will provide, financial or technical assistance to producers for the same conservation or environmental purposes. “SEC. 1240D. DUTIES OF PRODUCERS. “To receive technical assistance, cost-share payments, or incentive payments under this chapter, a producer shall agree— “(1) to implement an environmental quality incentives program plan that describes conservation and environmental goals to be achieved through a structural practice or land management practice, or both, that is approved by the Secretary; “(2) not to conduct any practices on the farm or ranch that would tend to defeat the purposes of this chapter; “(3) on the violation of a term or condition of the contract at any time the producer has control of the land, to refund any cost-share or incentive payment received with interest, and forfeit any future payments under this chapter, as determined by the Secretary; “(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 cost-share payments and incentive payments received under this chapter, as determined by the Secretary; 110 STAT. 1001 “(5) to supply information as required by the Secretary to determine compliance with the environmental quality incentives 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 environmental quality incentives program plan. “SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN. “(a) In General.— To be eligible to enter into a contract under the environmental quality incentives program, an owner or producer of a livestock or agricultural operation must submit to the Secretary for approval a plan of operations that incorporates such conservation practices, and is based on such principles, as the Secretary considers necessary to carry out the program, including a description of structural practices and land management practices to be implemented and the objectives to be met by the plan’s implementation. “(b) Avoidance of Duplication.— The Secretary shall, to the maximum extent practicable, eliminate duplication of planning activities under the environmental quality incentives program and comparable conservation programs. “SEC. 1240F. DUTIES OF THE SECRETARY. “To the extent appropriate, the Secretary shall assist a producer in achieving the conservation and environmental goals of an environmental quality incentives program plan by— “(1) providing an eligibility assessment of the farming or ranching operation of the producer as a basis for developing the plan; “(2) providing technical assistance in developing and implementing the plan; “(3) providing technical assistance, cost-share payments, or incentive payments for developing and implementing 1 or more structural practices or 1 or more land management practices, as appropriate; “(4) providing the producer with information, education, and training to aid in implementation of the plan; and “(5) encouraging the producer to obtain technical assistance, cost-share payments, or grants from other Federal, State, local, or private sources. “SEC. 1240G. LIMITATION ON PAYMENTS. “(a) In General.— The total amount of cost-share and incentive payments paid to a producer under this chapter may not exceed— “(1) $10,000 for any fiscal year; or “(2) $50,000 for any multiyear contract. “(b) Exception to Annual Limit.— The Secretary may exceed the limitation on the annual amount of a payment under subsection (a)(1) on a case-by-case basis if the Secretary determines that a larger payment is— “(1) essential to accomplish the land management practice or structural practice for which the payment is made; and “(2) consistent with the maximization of environmental benefits per dollar expended and the purposes of this chapter specified in section 1240. “(c) Timing of Expenditures.— Expenditures under a contract entered into under this chapter during a fiscal year may not be made by the Secretary until the subsequent fiscal year. 110 STAT. 1002 “SEC. 1240H. TEMPORARY ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. “(a) Interim Administration.— “(1) In general.— During the period beginning on the date of enactment of this section and ending on the termination date provided under paragraph (2), to ensure that technical assistance, cost-share payments, and incentive payments continue to be administered in an orderly manner until such time as assistance can be provided through final regulations issued to implement the environmental quality incentives program established under this chapter, the Secretary shall continue to— “(A) provide technical assistance, cost-share payments, and incentive payments under the terms and conditions of the agricultural conservation program, the Great Plains conservation program, the water quality incentives program, and the Colorado River Basin salinity control program, to the extent the terms and conditions of the program are consistent with the environmental quality incentives program; and “(B) use for those purposes— “(i) any funds remaining available for the agricultural conservation program, the Great Plains conservation program, the water quality incentives program, and the Colorado River Basin salinity control program; and “(ii) as the Secretary determines to be necessary, any funds authorized to be used to carry out the environmental quality incentives program. “(2) Termination of authority.— The authority of the Secretary to carry out paragraph (1) shall terminate on the date that is 180 days after the date of enactment of this section. “(b) Permanent Administration.— Effective beginning on the termination date provided under subsection (a)(2), the Secretary shall provide technical assistance, cost-share payments, and incentive payments for structural practices and land management practices related to crop and livestock production in accordance with final regulations issued to carry out the environmental quality incentives program.”.