# Presentation: 693939

## FAPD Program Update TeleconferenceThursday November 9th, 200610 AM & 3 PM ET

*Access #: 888-233-6592*
*Passcode: CSP*

## *6

**6*
*Thank You!*

## Topics

- Opening Remarks
- Conservation Innovation Grants (CIG)
- Conservation Security Program (CSP)
- Environment Quality Incentive Program (EQIP)
- Questions and Answers*   *

## Conservation Innovation Grants (CIG)

- Changes from FY-06
- Current Activities

## FY 2007 Conservation Innovation Grants

**Changes from FY 2006:**
- Application period
- STC Letter of Review
- Biannual technology meeting
- State Component – Forwarded Applications

## FY 2007 Conservation Innovation Grants

- Earlier application period for FY 2007 CIG grant cycle.
- Avoid running simultaneously with other grant programs (CCPI)
- Announcement of Program Funding – **hope** to have it posted by end of November.  Close date of February 2, 2007. (About 60 days)
- Funding levels expected to be the same as in FY 2006.  Same 3 National Categories (Natural Resource, Chesapeake Bay, and Technology)

## FY 2007 Conservation Innovation Grants

- STC Letter of Review
- Content change – Still reviewing for ethics concerns, potential duplication of effort, adherence to overall objectives of EQIP, but adding request for probable benefit to state’s EQIP implementation.
- Letter will be sent to NHQ rather than grantee.  Grantee required to submit information for review at least 1 week before close of announcement.  STC letters to be sent to NHQ within two weeks after close of announcement.

## FY 2007 Conservation Innovation Grants

- NRCS will host a technology meeting for grantees and technical specialists.  The meetings will provide a framework for sharing technology success stories and for helping to integrate promising technologies and approaches.  We are hoping to pilot this meeting in the summer of 2007, inviting all current grantees (FY 2004-FY 2006).
- Future meetings will be held on a biannual (every other year) basis.  Beginning with FY 2007, grantees will be required to attend at least one of these meetings.  An RFP will be developed to solicit bids for setting up these meetings in the future.

## FY 2007 Conservation Innovation Grants

- State Component will be available again on voluntary basis.  A bulletin will be sent out soon requesting STCs to make a decision on participation for FY 2007.
- State Component Programs need to make announcements (especially awards) after the National Component.
- Applications that are single-state in scope and _> _$75,000 will be forwarded to state if participating in state component.
- Training will be provided to state program managers (through net meetings and teleconferences)

## FY 2007 Conservation Innovation Grants

**Current Activities:**
- Finalizing Announcement of Program Funding (APF)
- Development of State Component Bulletin
- Starting Part 511 of CPM for NRCS Grants
- Working with Science & Technology to arrange Peer Review

## FY 2007 Conservation Innovation Grants

- Requested Actions:
- Review and respond to Bulletin regarding participation in State Component of CIG for FY 2007.
- Start thinking about technical specialists that you could support participating in CIG Peer Review (Ross Braun will be sending out request letter).  We have a need for a diverse group of specialists to review proposals covering a wide array of resource concerns (including energy), technologies, and approaches.  NHQ does reimburse participants for their travel for the peer review.

## Questions???

## Conservation Security Program (CSP)      

- Funding/Training/2007 Signup Status
- Timeline Bulletin
- Negative Balances in ProTracts
- Duplicate Payments
- IRS Tax Ruling
- Wildlife Assessment Criteria

## National Bulletin 300-7-2CSP 07 Payment Timeline

- Timeline states Nov 6th  for ITC to add the CRL item & Nov 7th for States to start processing FY2007 annual payments
- Postponed one day to coincide with regular Tuesday night software release schedule
- Script took 43 hours to run on testing this weekend
- Mods will be ready for you to start approvals and payments on Wednesday AM
- Contracts without mods will have script run over the up coming long weekend *or* you can do a “no-change” mod if you need to process before Monday, Nov 13th

## ProTracts Reminders

- States to set appropriate user role permissions in ProTracts as delegated by the STC to approve modifications.
- Make sure that all CSP field users know to use the *Annual Payments* button to process CSP payments – not the individual *practice certification and payment* button as they do in cost share program contracts.

## Correcting Negative Balances

- Information exchange between ProTracts and Fund Manager is not instantaneous
- Usually overnight – but sometimes two
- May have to involve Fund Manager Help Desk if State Program Manager and State Budget Officer can not figure out the reason for the difference and the solution

## Negative Balances in ProTracts

*Negative Balances in ProTracts*

- HELP!

## my.nrcs – Field Tools Tab – Fund Manager

## Fund Manager – View Data Tab -  Contract Balance Comparison Report

## In this example, Arkansas has $28,314 approved in ProTracts that has not been Processed through FFIS.  

- In this example, Arkansas has $28,314 approved in ProTracts that has not been Processed through FFIS.
- State Program Manager needs to work with State Budget Officer to resolve this issue and get the participant paid.

## Questions???

## Conservation Security Program (CSP)

Duplicate Payments

**Duplicate Payments**

## CSP – Duplicate Payments

*CSP – Duplicate Payments*

**4/06 GAO CSP Study Report Finding**
- “Despite statutory provisions and NRCS actions designed to prevent CSP from duplicating other programs...duplicate payments have occurred.”

## CSP – Duplicate Payments

**16 U.S.C. 3838c(b)(2)(C)**
**   **A producer shall not receive payments under CSP and any other program administered by the Secretary for the same _practice_ on the same land.

*CSP – Duplicate Payments*

## CSP – Duplicate Payments

**5/30/06 USDA Statement of Action**
- 1.NRCS will develop an automated review process to ensure CSP payments do not duplicate other program payments
- ProTracts application review
- 10/31/06 request to link enhancement activities to practice standards to assist programmers
- Self-Assessment Workbook Addendum** **

*CSP – Duplicate Payments*

## CSP – Duplicate Payments

**5/30/06 USDA Statement of Action**
- 2.NRCS will compare AMA, EQIP, & WHIP contracts with ’06 CSP applications for overlapping practices
- Finding – 81 of 8,570 applications contained duplicate payments** **

*CSP – Duplicate Payments*

## CSP – Duplicate Payments

**5/30/06 USDA Statement of Action**
- 3.NRCS will compare AMA, EQIP, & WHIP contracts with existing CSP contracts for overlapping practices
- Duplicate payments will be recovered and prevented** **

*CSP – Duplicate Payments*

## CSP – Duplicate Payments

**Bulletin 300-7-1**
- States provided potential duplicate payment reports
- ’04 and ’05 contracts with practices applied or scheduled on the same tract
- Complete comparative analysis

*CSP – Duplicate Payments*

## CSP – Duplicate Payments

**Comparative analysis FY ‘07 and beyond**
- Components or activities that fall under a practice standard are considered the same practice
- Indexes are outcomes and not the same as practices

*CSP – Duplicate Payments*

## Comparative analysis FY ‘07 and beyond

*Comparative analysis FY ‘07 and beyond*

**EXAMPLE 1 (components or activities that fall under a practice standard...)**
- EQIP – Split N Application
- CSP – Manure Injection
- Same _practice_ (590) for purpose of duplicate payments

## Comparative analysis FY ‘07 and beyond

*Comparative analysis FY ‘07 and beyond*

**EXAMPLE 2 (indexes are outcomes and not the same as practices)**
- EQIP – Residue & Tillage Mgmt
- CSP – Soil Conditioning Index Score
- Not the same _practice_

## CSP – Duplicate Payments

**Duplicate Payments Planned for FY ‘07 and beyond**
- Modify the program’s contract that caused the duplication
- Complete contract modification before 2007 annual payments

*CSP – Duplicate Payments*

## CSP – Duplicate Payments

**Comparative Analysis FY ’04 to FY ‘06**
- Flexibility to use existing State guidance to determine duplicates

*CSP – Duplicate Payments*

## CSP – Duplicate Payments

**Duplicate Payments Occurred FY ’04 to FY ‘06**
- Collect the improper payment from the contract that caused duplication
- Complete participant notification by 1/1/07
- Sample notice provided

*CSP – Duplicate Payments*

## Conservation Security Program (CSP)

Internal Revenue Service (IRS) Ruling on CSP Payments

- Internal Revenue Service (IRS) Ruling on CSP Payments

## CSP – IRS Ruling

*CSP – IRS Ruling*

**9/25/06 IRS Ruling**
- CSP qualifies as a small watershed program
- Describes when CSP payments are eligible for exclusion from gross income

## CSP – IRS Ruling

**9/25/06 IRS Ruling**
- Existing and new practice payments are eligible for exclusion
- Stewardship payments are not excludable

*CSP – IRS Ruling*

## CSP – IRS Ruling

**9/25/06 IRS Ruling**
- Enhancement payments “that are based on an activities expected conservation benefit rather than on its cost are not cost-share payments and are not excludable from gross income.”

*CSP – IRS Ruling*

## CSP – IRS Ruling

**Bulletin 300-7-3**
- “CSP payments for enhancement activities are based on the activities’ expected conservation benefits, rather than on its cost.”

*CSP – IRS Ruling*

## CSP – IRS Ruling

**Bulletin 300-7-3**
- Provide no further advice beyond that statement
- NRCS not authorized to advise on tax implications of payments
- 					         – CPM 512.00(i)

*CSP – IRS Ruling*

## CSP – IRS Ruling

**Bulletin 300-7-3**
- Refer tax inquiries to talking points
- Bulletin attachment
- CSP page of NRCS website

*CSP – IRS Ruling*

## Questions???

##  Management Intensity Pilot Project

** ***Management Intensity Pilot Project*

## Management Intensity Pilot Project

- 	SURPLUS FINANCIAL ASSISTANCE   	FUNDS:
- EQIP Contract Completions
- EQIP Contract Cancellations
- EQIP Contract Terminations

## Surplus Financial Assistance funds accumulate

- SURPLUS -
- $22 million in 2005 contracts since 1/06
- $70 million available from 1996 Farm Bill contracts (FY 1997 through FY 2002 contracts)

## Surplus Financial Assistance OPPORTUNITY

- USE SURPLUS FUNDS TO:
- Integrate management intensity into EQIP
- Enhance conservation systems funded by EQIP
- Gain additional environmental performance

## EQIP Management Intensity Pilot Project

- STRATEGY HIGHLIGHTS
- Use streamlined process:
- Modify measures into existing EQIP contracts or reinstated contracts
- Treatment must result in natural resource improvement
- Within scope of current contract (_no ranking required_)

## EQIP Management Intensity Pilot Project

- STRATEGY HIGHLIGHTS
- Use streamlined process:
- Focused list of distinct treatments
- Indisputable environmental benefits

## EQIP Management Intensity Pilot Project

**DISTINCT  TREATMENTS**
- Pest Management
- Irrigation Water Management
- Nutrient Management/CNMPs (’96 Farm Bill contracts)
- Feed Management
- Drainage Management
- Waste Utilization/Manure Transfer

## EQIP Management Intensity Pilot Project

- STRATEGY HIGHLIGHTS
- _Incentive Payments to contract holder based on cost _
- _Low impact on field - practices that do not require technical assistance_
- _Self Certification_

## Questions???