Agricultural Conservation Easement

Program

April 13, 2015

Slide 1

Agenda

• Agricultural Conservation Easement Program (ACEP)

– Status and Update– Changes in ACEP from WRP, FRPP, GRP – FY 2015 timeline and roll out

– Future Training Opportunities

 

Slide 2

Agricultural Conservation Easement Program (ACEP)ACEP Interim Rule – 7 CFR 1468

• http://www.regulations.gov/#!documentDetail;D=NRCS-2014-0011-0001

ACEP Manual – 440-CPM, Part 528• http://directives.sc.egov.usda.gov/

ACEP Webpage• http://www.nrcs.usda.gov/wps/portal/nrcs/detail/national/programs/easements/acep/?cid=

stelprdb1242695• Links to ACEP Interim Rule and various analysis documents• ALE Minimum Deed Terms• Summary of Changes in ACEP• Announcement of FY 2015 press release materials

Slide 3

FY 2015 ACEP Rollout

• May 15 – – FY 2015 Oregon and Washington ACEP-ALE application cutoff date

• June 12-19 – – Eligibility, Ranking, and on-site determinations completed– Applications tentatively selected and entered in NEST – Work with National Service Delivery Team to contract due diligence

• June 26 – – Submit easement acquisition funds reservation requests to NBST– Submit waiver request packages requiring NHQ review (ownership waivers), Exhibit’s E’s

• July 3– – Submit IC review packages to NHQ for applications above National review threshold ($250k)

• July 10– – Submit draft, unexecuted ACEP-ALE agreements to NHQ for agreements above

threshold

Slide 4

FY 2015 ACEP Rollout• Early August –

– Contracted due diligence received and review completed– Final eligibility determinations made– NHQ Review items returned to States – Agreements drafted for new enrollment

• Mid-August – – Complete State-level Easement Internal Control Reviews for easement obligations – All funds reservations requests submitted to NBST

• Mid to Late August – – Send draft agreements to ALE entities for signature

Slide 5

FY 2015 ACEP Rollout• Early September –

– NRCS executes agreements that have passed internal controls and been properly executed by the participants

– Submit documents to NAPST for obligation in FMMI

• Mid September – Complete entry of all non-funded FY 2015 Applications in NEST

• September 24 – – All ACEP funds obligated – All FY 2015 ACEP agreements and applications entered into NEST

• September 30 – – All existing easements monitored and documented in NEST

• October 1 –– Submission of FY 2016 Easement Compensation Packages

Slide 6

Changes in ACEP from FRPP, GRP, WRP• Across ACEP

– Consolidates and repeals FRPP, GRP, WRP• Existing agreements and deeds remain valid• Remaining FRPP, GRP, WRP balances available to complete• No longer a rental agreement option (GRP)• No longer a stand alone wetland restoration options (WRP 10-year)

– Allows for maximum duration under State law– ACEP contributing program to RCPP– AGI limitation applies to ACEP with no waiver except under

RCPP– Standardized agreement lengths, extension lengths (12

months) and expiration dates (Aug 31)

Changes in ACEP from FRPP, GRP, WRP

Across ACEP– New easement subordination, modification,

exchange and termination authority• Referred to as Easement Administration Actions• States review requests, conduct NEPA, make recommendations• State Conservationist delegated authority to deny requests• EPD Director - Authority to approve or deny a subordination,

modification or exchange request• Only Chief has authority to approve easement termination

– Decisions on Easement Administration Actions are at the sole discretion of NRCS

– Will conduct specific training for State staff

Changes in ACEP from FRPP, GRP, WRP• Across ACEP

– Clarified lands with Hazardous Materials Issues are ineligible for ACEP

– Clarified landowner and entity eligibility and registration requirements• DUNS/SAM

– All ALE eligible entities and all WRE landowners with EIN – Does not apply to ALE landowners

• SCIMS– Applies to all WRE and ALE landowners and all ALE eligible entities

• AGI and HEL/WC– All WRE and ALE landowners – Does not apply to ALE eligible entities

Changes in ACEP-ALE from FRPP, GRPACEP-ALE

– Eligibility includes protection of grazing use and related conservation values• Entity must hold ALE easements, US cannot hold

– New Grassland of Special Environmental Significance enrollment option• States determine at time of enrollment• Only scenario for increase in Federal share (to 75%)

– All ALEs must have an Agricultural Land Easement Plan• Component plans for grasslands, HEL, and forests• States complete (no cost to entity)• Entity completes (at entity cost) and State reviews

New Enrollment GuidanceACEP-ALE: Grasslands of Special Environmental Significance

• The GSS option is available for those applications that meet the following land eligibility criteria, Part 528 Subpart D B. (3):  Protection of Grazing Uses and Related Conservation Values.—Land the enrollment of which would protect grazing uses and related conservation values by restoring and conserving land may be eligible for enrollment in ACEP-ALE. 

• The GSS is one of the grazing lands options.        

Slide 11

New Enrollment GuidanceACEP-ALE: Grasslands of Special Environmental Significance• GSS definition “Grasslands of special significance (GSS)” means

grasslands that contain little or no noxious or invasive species, as designated or defined by State or Federal law; are subject to the threat of conversion to non-grassland uses or fragmentation; and the land is:

(1)(i) rangeland, pastureland, or shrubland on which the vegetation is dominated by native grasses, grass-like plants, shrubs, or forbs, or         (ii) Improved, naturalized pastureland and rangeland; and

(2) (i)Provides, or could provide, habitat for threatened or endangered species or at-risk species,        (ii) Protects sensitive or declining native prairie or grassland types, or       (iii) Provides protection of highly sensitive natural resources

Slide 12

Changes in ACEP-ALE from FRPP, GRPACEP-ALE

– Changes Federal share and match requirement slightly• States verify match at time of application

– Entity cash contribution waiver for projects of special significance • States review and grant waivers• Prior to or after agreement is entered• Does not affect Federal share

Changes in ACEP-ALE from FRPP, GRPACEP-ALE Match Scenarios

100% Fair Market Value of ALE

Entity Share ≥ 33.33% of NRCS Share

Entity Cash ≥ 16.67% of NRCS Share

Qualified Landowner Contribution =

Remainder of Entity ShareNRCS Share ≤ 75% of

FMV

ACEP-ALE Match Requirements and Waiver Process

1. Regular ACEP-ALE

2. ACEP-ALE-GSSwith waiver

100% Fair Market Value of ALE

Entity Share ≥ 100% of NRCS Share

Entity Cash ≥ 50% of NRCS Share

Qualified Landowner Contribution =

Remainder of Entity ShareNRCS Share ≤ 50% of

FMV

Slide 15

ACEP-ALE Match Requirements and Waiver Process

3. Regular ACEP-ALE – Waiver for Projects of Special Significance

4. ACEP-ALE GSS–With GSS waiver andwaiver for projects ofspecial significance

100% Fair Market Value of ALE

Entity Share ≥ 33.33% of NRCS Share

Entity Cash ≥ 8.33% of NRCS Share

Voluntary, Qualified Landowner

Contribution = Remainder of Entity

ShareNRCS Share ≤ 75% of FMV

100% Fair Market Value of ALE

Entity Share ≥ NRCS Share

Entity Cash ≥ 25% of NRCS Share

Voluntary, Qualified Landowner

Contribution = Remainder of Entity

ShareNRCS Share ≤ 50% of FMV

Slide 16

Changes in ACEP-ALE from FRPP, GRP

ACEP-ALE– New options for determining easement value

• Use of USPAP or UASFLA appraisal is authorized• AWMA or other method must be approved by Chief prior

to entering into agreement

– More Appraisal effective date options• Within 12 months of easement closing• Within 6 months prior to or after the date the parcel is

added to the cooperative agreement

Changes in ACEP-ALE from FRPP, GRPACEP-ALE Cooperative Agreement Streamlined• Increases flexibility to allow substitution of parcels on the agreement at

any time if:– The parcel is eligible – Ranks high enough to be funded – Sufficient funds are available in the agreement

• Recognizes State sovereignty by removing the requirement for the entities to indemnify the United States. – This improvement will facilitate participation by State entities

• The required use of the standard Cooperative Agreement will:– Increases efficiency by expediting the enrollment process – Ensures equitable treatment of all ACEP entities and landowners– Increases the transparency in the administration of ACEP

Changes in ACEP-ALE from FRPP, GRPACEP-ALE Minimum Deed Terms• Standard ALE minimum deed terms

– Considered State Con and partner input– Provide flexibility for a larger range of partner missions – Contain less than half of the provisions under FRPP– Ensure ACEP program requirements are addressed– More flexible in the areas of

• Subdivision, • Building envelopes, and • Limited oil and gas extraction

• Eligible entities can use their own deed terms and have 3 options for incorporating the ALE minimum deed terms– Streamlined options for review of ALE deeds

• Eligible entities deed terms may be more restrictive than the ALE Minimum Deed Terms

• Changes to the ALE minimum deed terms addendum will be retroactively available for unclosed ACEP-ALE transactions– Entity and landowner option, not required

Changes in ACEP-ALE from FRPP, GRPACEP-ALE Minimum Deed Terms and Deed Reviews• Eligible entities may use their own deed terms and have 3

options for incorporating the ALE minimum deed terms:– Option 1 – Attach: Entity attaches the ALE minimum deed

terms as an addendum to the entity’s easement deed. • Requires only State-level verification that addendum is

unchanged, executed and attached– Option 2 - Incorporate: Entity uses its own tailored deed

language for each transaction and incorporates the ALE minimum deed terms into the body of the deed.

• Requires National-level review and approval of individual deeds.– Option 3 - Template: Entity uses approved template language

for every transaction that incorporates the ALE minimum deed terms.

• Requires National-level review and approval of the template, and• Then only State-level review of the individual transactions that

use the approved template.

ACEP-ALE Entity Certification • Once an entity is certified will use the Grant Agreement with

Certified Entities– Certified entities to use their own deed terms and conditions in

accordance with ACEP and Grant Agreement requirements – Certified entities will acquire and close on easement without

NRCS review prior to closing and payment• NRCS will not review appraisals, deeds, or title prior to closing • NRCS may review agricultural land easement plans prior to closing

– Allows more entity independence and streamlines the acquisition process

– Payment based on a certification by the certified entity that all requirements have been met

– NRCS will conduct post-acquisition quality assurance reviews percentage of the easements closed and monitored and require remediation if issues identified

Slide 21

ACEP-ALE Entity Certification• Grant Agreement for Certified Eligible Entities is

ACEP manual exhibit since does not change annually• One version for General ACEP-ALE parcels• One version for ACEP-ALE-GSS parcels

• EPD will be providing specific training on Entity Certification • Entity requests for certification in FY 2015 may not be

completed in time for execution of a Grant Agreement in FY 15

Slide 22

ACEP-ALE Minimum Deed Terms and Approvals• Use of the ALE Minimum Deed Terms is required for all

noncertified eligible entities that enter into an ACEP-ALE Cooperative Agreement– Certified entities have the option to use the ALE Minimum Deed

Terms addendum– Certified entities must address all ALE minimum deed requirements

identified in the ACEP regulation

• Standard US Right of Enforcement language has been carefully crafted in and must be used by both certified and noncertified eligible entities in all ACEP-ALE deeds– Clearly identifies that the eligible entity as the holder of the

easement has primary responsibility for monitoring and enforcement, and

– Exercise of US Right of Enforcement may occur only when the ALE holder does not fulfill their responsibilities or in the event of an emergency related to a violation

Slide 23

ACEP-ALE Deed Approvals• Beginning with FY 2015 ACEP-ALE enrollments:

– NRCS will NOT sign the conservation easement deed itself or any recorded acceptance of the deed for either noncertified or certified entities

• For noncertified entities only NRCS will provide an:– ‘NRCS Approval Letter for a Noncertified Eligible

Entity to Proceed with the ACEP-ALE Acquisition’– This is for noncertified eligible entities only– Certified entities will proceed without NRCS signatures or

approvals pursuant to the terms of the Grant Agreement

Slide 24

FY 2015 ACEP RolloutACEP Training – Tentative Schedule

• TBA• Transition to ACEP Webinar

• High-level review of statutory, regulatory, and policy changes• Prerecorded for NRCS staff and External partners

• ACEP Opportunities for Tribes• Series of live netmeetings hosted by Tribes

• April – 4th week• Specific topic webinars made available

• Introduction to ALE – NRCS staff and partners, pre-recorded• ALE Entity Certification – NRCS staff and partners, pre-

recorded

Slide 25

ACEP• Questions?

• Dave Kreft, Easement Programs Coordinator

• dave.kreft@wa.usda.gov

• Bari Williams, Easement Program Specialist

• bari.williams@or.usda.gov Slide 26

Slide 27

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.