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[Federal Register Volume 80, Number 39 (Friday, February 27, 2015)]
[Rules and Regulations]
[Pages 10569-10575]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-04092]

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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 80, No. 39 / Friday, February 27, 2015 / 
Rules and Regulations

[[Page 10569]]

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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1450

RIN 0560-AI27

Biomass Crop Assistance Program

AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Farm Service Agency (FSA) is amending the Biomass Crop 
Assistance Program (BCAP) regulations to implement changes required by 
the Agricultural Act of 2014 (the 2014 Farm Bill). BCAP provides 
financial assistance to producers who establish, collect, harvest, 
store, and transport biomass crops. The 2014 Farm Bill reauthorizes 
BCAP, with certain changes that are implemented in this rule. The 
changes include reducing the payment rate per ton for collection, 
harvest, storage, and transportation of eligible materials, and 
limiting the cost share per acre for establishment of biomass crops. 
The requirements for eligible material and eligible land are revised in 
this rule, as required by the 2014 Farm Bill. The general scope of BCAP 
is not changing with this rule.

DATES: 
    Effective Date: May 28, 2015.
    Comment Date: We will consider comments we receive by April 28, 
2015.

ADDRESSES: We invite you to submit comments on this rule. In your 
comment, please specify RIN 0560-AI27 and include the volume, date, and 
page number of this issue of the Federal Register. You may submit 
comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments;
     Mail, Hand Delivery, or Courier: Kelly Novak, FSA CEPD, 
USDA, STOP 0513, 1400 Independence Ave. SW., Washington, DC 20250-0513.
    All written comments will be available for inspection online at 
www.regulations.gov and at the mail address above during business hours 
from 8 a.m. to 5 p.m., Monday through Friday, except holidays. A copy 
of this rule is available through the FSA home page at http://www.fsa.usda.gov/.

FOR FURTHER INFORMATION CONTACT: Kelly Novak, telephone (202) 720-4053. 
Persons with disabilities who require alternative means for 
communication (Braille, large print, audiotape, etc.) should contact 
the USDA Target Center at (202) 720-2600 (voice).

SUPPLEMENTARY INFORMATION:

Background

    BCAP is an FSA administered program using Commodity Credit 
Corporation (CCC) funds. Section 9010 of the 2014 Farm Bill (Pub. L. 
113-79) amends 7 U.S.C. 8111 and reauthorizes BCAP with certain 
changes. BCAP provides assistance to biomass producers and owners in 
two payment categories:
     Matching payments to eligible material owners for the 
delivery of eligible material to qualified Biomass Conversion 
Facilities (BCFs). Qualified BCFs use biomass feedstocks to produce 
heat, power, biobased products, research, or advanced biofuels. The 
2014 Farm Bill adds research as an authorized use of material by BCFs.
     Establishment and annual payments to producers who enter 
into contracts with CCC to produce eligible biomass crops on contract 
acres within BCAP project areas.
    This rule implements all the required 2014 Farm Bill changes to 
both parts of the program and seeks comment on FSA's implementation of 
BCAP, given the required changes and changes to funding. The rule also 
includes several discretionary changes, including the removal of the 
participant's option for assignment of BCAP payments to third parties, 
and a clarification of how the two-year period of eligibility for 
matching payments, commencing with the effective date of this rule, 
will be calculated.

Definitions and Terms Used in This Rule

    This rule adds, removes, or revises the following definitions:
     ``Agricultural residue'' is being added and includes crop 
residues and woody orchard wastes. Both these types of residues can be 
eligible materials.
     ``Beginning farmer or rancher'' is being removed, because 
that term is defined in 7 CFR part 718, which is referenced in Sec.  
1450.2.
     ``Dry ton'' is being revised to clarify requirements for 
measuring moisture content of eligible woody materials.
     ``Eligible crop'' is being revised to clarify that noxious 
and invasive species are ineligible for establishment and annual 
payments, and to move specific eligibility requirements to Sec.  
1450.200.
     ``Eligible land'' is being added to reflect the 2014 Farm 
Bill requirements, which add eligibility for Conservation Reserve 
Program (CRP) acreage or land in the Agricultural Conservation Easement 
Program (ACEP) that expires in the current year of a BCAP project area 
signup and has not yet received a CRP or ACEP annual rental payment in 
the current year.
     ``Eligible material'' is being revised to reflect the 2014 
Farm Bill required changes for matching payments, and to move the 
specific eligibility requirements for material for matching payments to 
section Sec.  1450.103.
     ``Native sod'' is being revised to reflect the 2014 Farm 
Bill's change in definition for native sod that is required for other 
USDA programs. For the purposes of consistency with crop insurance and 
the Noninsured Crop Disaster Assistance Program (NAP) regulations that 
now restrict the eligibility of native sod for those programs, the 
definition of native sod for the purposes of BCAP will now include 
ground that has never been tilled or the producer cannot substantiate 
that the ground has ever been tilled.
     ``Socially disadvantaged farmer or rancher'' is being 
removed, because that term is defined in 7 CFR part 718, which is 
referenced in Sec.  1450.2.

Matching Payments

    The changes to the BCAP matching payments required by the 2014 Farm 
Bill include a reduced payment rate of up to $1 for each $1 per ton 
provided by the biomass conversion facility, in an amount not to exceed 
$20 per dry ton (previously $45 per ton) for a period of up to 2 years. 
The rate is being changed in Sec.  1450.106.

[[Page 10570]]

    As specified in the 2014 Farm Bill and in this rule, bagasse, which 
includes sugar cane and sorghum biomass, is now specifically excluded 
from the definition of an eligible material and the requirements for 
eligible materials in Subpart B. This rule also requires that all 
eligible material be collected or harvested directly from the land 
according to an approved conservation plan, forest stewardship plan, or 
equivalent plan. For example, manufacturing wood wastes that are not 
harvested directly from the land, such as sawdust or sawmill residues, 
are not eligible woody material. Woody material, including orchard 
waste, must be collected and harvested directly from the land and must 
also be a by-product of preventive treatments for hazardous fuel 
reductions, or reduction or containment of disease or insect 
infestations. Woody material that is a by-product of preventative 
treatments solely for the purpose of restoring ecosystem health is no 
longer eligible. Woody material that can be used to create a higher-
value product (such as a mulch product) is not eligible. The 2014 Farm 
Bill definition of ``eligible material'' also specifies that eligible 
material can now be used by a biomass conversion facility for the 
purpose of research, in addition to heat, power, biobased products and 
advanced biofuels.
    The 2014 Farm Bill clarifies that the rate for matching payments 
must be based on a ``dry'' ton. Therefore, this rule adds a requirement 
that biomass conversion facilities must use the applicable American 
Society for Testing and Materials (ASTM) standards to determine dry ton 
weight of eligible materials. In addition, the eligible material owner, 
as specified in Sec.  1450.104, is required to submit a request for 
payment on approved eligible woody material deliveries based on the dry 
ton weight that was determined using an ASTM standard.
    The 2014 Farm Bill continues the matching payment eligibility 
period of 2 years total per eligible material owner. This rule 
specifies that any matching payments received before the effective date 
of this final rule will not count towards an eligible material owner's 
2-year period of eligibility for matching payments. This is a 
discretionary decision. FSA determined that the revised requirements 
for eligible materials and the reduction in payment rate changed the 
scope of the matching payments part of BCAP to the extent that a new 2-
year period of payment eligibility for eligible material owners is 
appropriate.

Project Areas

    The changes to BCAP establishment and annual payments required by 
the 2014 Farm Bill include:
     Project area selection criteria will include consideration 
of existing project areas and continuation of funding to advance the 
maturity of such project areas;
     Land eligibility will now include expiring CRP land and 
ACEP land, but the 2014 Farm Bill prohibits the Secretary from making a 
BCAP payment if a CRP or ACEP payment was received in the same year;
     Establishment payment rates are reduced to not more than 
50 percent of the costs of establishing an eligible perennial crop, not 
to exceed $500 per acre, except that socially disadvantaged farmers or 
ranchers may be reimbursed up to $750 per acre; and
     Any plant that is an invasive or noxious species is 
explicitly excluded from the definition of ``eligible crop.''
    The 2014 Farm Bill also provides specific authority for the 
Secretary to consider whether the biomass conversion facility for the 
project area has equity sufficient to be in operation by the date on 
which the eligible crops are ready for harvest. Under prior 
regulations, CCC could require information demonstrating that the 
biomass conversion facility would have sufficient equity available to 
operate. We are requesting comments on how we should apply this 
criterion in future Requests for Proposals (see Comments Requested 
section below).
    The 2014 Farm Bill clarifies that eligible crops for a project area 
do not include invasive or noxious species or varieties of plants. 
Therefore, this rule amends Sec.  1450.200 to effect that exclusion. If 
a project area proposal includes species or plant varieties whose 
potential to be invasive or noxious has not yet been determined, the 
2014 Farm Bill requires CCC to use ``credible risk assessment tools or 
other credible sources'' to determine which plants are invasive or 
noxious in a particular area. We are requesting comments on which 
credible risk assessment tools or other credible sources for 
determination CCC should use (see Comments Requested section below). 
The requirement to use credible risk assessment tools to determine 
which plants are invasive or noxious is in addition to the existing 
National Environmental Policy Act (NEPA) requirements that apply to 
BCAP, which are not changing. FSA will continue to require the 
appropriate level of (NEPA) review, consistent with 7 CFR 799, for BCAP 
project area proposals.
    As required by the 2014 Farm Bill, this rule amends Sec.  1450.202 
to include status as an existing project area as a new criterion in 
selecting BCAP project areas for funding, in order to advance the 
maturity of existing project areas. The 2014 Farm Bill does not specify 
what is meant by ``maturity'' of a project area. Different factors 
could be considered when determining ``maturity,'' including the 
harvesting of longer term crops, such as biomass trees, or the 
expansion of a project area, making it more economically viable in the 
long term. We are requesting comments on how FSA should apply this 
criterion (see Comments Requested section below).
    This rule amends Sec.  1450.204 to make the changes in the 
definition of eligible land required by the 2014 Farm Bill. 
Specifically, CRP contract acreage and Grassland Reserve Program (GRP) 
contract acreage were previously not eligible for BCAP, regardless of 
whether or not the CRP or GRP contract was due to expire within the 
year. The 2014 Farm Bill allows CRP acres that are in their expiring 
year, and which have not yet received an annual rental payment, to be 
eligible for enrollment into BCAP. The 2014 Farm Bill consolidates non-
easement GRP acres into the CRP, so GRP acres are included in the 
provisions for expiring CRP land. The 2014 Farm Bill also consolidates 
GRP easements and Wetland Reserve Program (WRP) contract acreage into 
the newly created ACEP, administered by the USDA Natural Resources 
Conservation Service (NRCS). Therefore, Sec.  1450.204 now specifies 
that the expiring ACEP acres are also eligible for enrollment in BCAP, 
provided no current year annual payment was received. This rule removes 
obsolete references to GRP and WRP acreage eligibility.
    This rule is revising the levels and rates for establishment 
payments in Sec.  1450.213 to reflect the limits provided in the 2014 
Farm Bill. Specifically, the 2014 Farm Bill reduces the cost share for 
establishment payments from 75 percent to 50 percent of actual 
establishment costs and sets a payment limit of $500 per acre. The 
limit is $750 per acre if the producer is a socially disadvantaged 
farmer or rancher. There was no previous cap on payments per acre.

Removal of Assignment Provisions

    As a discretionary decision, this rule removes Sec.  1450.9 
``Assignments.'' That section included provisions that allowed 
participants to assign BCAP payments, including both matching and 
establishment payments, to third

[[Page 10571]]

parties. This change is intended to improve program integrity and 
transparency. BCAP payments, as specified in the 2014 Farm Bill, are 
intended to benefit the land owner or operator or the eligible material 
owner. The removal of assignment of payments, under the matching 
payment portion of the program, lessens the potential for inappropriate 
assignment of payments to biomass conversion facilities under 
unauthorized value sharing arrangements. The removal of assignments, 
under the project area portion of the program, will likely provide 
greater clarity to stakeholders in project areas, which include project 
area sponsors and the contracting producers. The removal of the 
assignment of payment will help clarify that any crop establishment or 
harvesting services provided by the project sponsor or any other 
provider to the producer are services outside the scope of the BCAP 
program and the BCAP contract, and that financial responsibility for 
those actions is between the service provider and the producer.

Policy Changes for Project Area Activities

    FSA will make certain changes to the way the establishment and 
annual payments portion of BCAP is implemented. These policies do not 
require changes to the regulations. As noted below, we are requesting 
comments on this rule and on implementation issues; these changes are 
being explained to provide information for the commenters (see Comments 
Requested section below).
    The requirements for project area signup are largely unchanged by 
the 2014 Farm Bill. FSA will continue to initiate project area signup 
by first requesting project area proposals. Once FSA receives 
proposals, FSA will select and designate geographic-and-eligible-crop-
specific project areas, and then announce producer signup at FSA county 
offices.
    The process for producer signup is changing, to improve program 
effectiveness. In an effort to provide more timely outreach during 
signup, FSA will be evaluating and adjusting the timing of the producer 
signup process. In previous years, BCAP signup periods for 
establishment payments in approved project areas were relatively short 
and at less than optimal times for establishing crops. Therefore, FSA 
is revising the producer signup process to allow project area signups 
to take place on a continuous basis within the constraints of available 
funding.
    As noted below in the Comments Requested section, FSA welcomes 
public input on BCAP implementation issues and policies. Most of the 
itemized issues pertain to changes the 2014 Farm Bill made to the 
establishment and annual payments component of the program.

Funding Changes in the 2014 Farm Bill

    The 2014 Farm Bill specifies the annual amount of funds authorized 
for BCAP and specifies how funding may be allocated among various 
activities. Specifically, the 2014 Farm Bill provides mandatory funding 
of $25 million for each of fiscal years 2014 through 2018, and 
specifies that the Secretary must use not less than 10 percent, nor 
more than 50 percent, of the funding for each fiscal year for BCAP 
matching payments. The $25 million each fiscal year is subject to 
sequestration or other reductions through the appropriations process. 
Section 716 of the Consolidated and Further Continuing Appropriations 
Act, 2015 (Pub. L. 113-235) effectively limited the funding available 
for BCAP in fiscal year 2015 to $23 million. The previous authorization 
for BCAP provided such sums as necessary from the mandatory 
appropriation for CCC; however, subsequent Congressional actions in the 
annual appropriations acts placed restrictions on the amount of funding 
available. The overall result of the 2014 Farm Bill changes in funding 
is to provide a more stable and predictable stream of funding for BCAP, 
although the annual amount of funding available is less than in some 
previous years.
    The 2014 Farm Bill also specifically authorizes funding of 
technical assistance from available BCAP funds. BCAP included technical 
assistance previously, but FSA did not have the specific authorization 
to use BCAP funds for those activities. FSA plans to expand technical 
assistance activities to provide BCAP with enhanced compliance spot 
checks, greater breadth of environmental reviews, outreach, and 
training. In addition, BCAP technical assistance will continue to 
include the development and evaluation of conservation plans, forest 
stewardship plans, or equivalent plans for participants.
    As noted in the next section, FSA seeks comments on how FSA should 
prioritize and implement various BCAP activities, given the funding 
authorization provided in the 2014 Farm Bill.

Miscellaneous Corrections

    This rule makes several minor technical corrections, such as 
correcting typographical errors.

Comments Requested on BCAP Implementation

    FSA is requesting public comments on how BCAP should be implemented 
in future years, given the new requirements in the 2014 Farm Bill and 
the limited funding authority. FSA is, in particular, requesting public 
comments on the following questions:
     What information could FSA reasonably collect that would 
provide assurance that the biomass conversion facility has sufficient 
equity to be in operation by the date on which project area eligible 
crops are ready for harvest?
     How could FSA best determine if expansion of a project 
area would advance the maturity of that project area?
     What credible risk tools and sources should FSA consider 
in determining whether proposed crops are potentially invasive?
     With a new cost share cap of 50 percent for establishment 
costs for perennial crops in project areas, what establishment 
practices should FSA consider as most important to support?
     With the new limits to the BCAP budget, what priorities 
should FSA consider in implementing the program?
    Please provide information on these issues, and any other issues of 
concern with BCAP implementation, to the contacts listed in the 
ADDRESSES section. Specific comments addressing the issues raised above 
are most helpful; all comments are welcome. Proposals for alternatives 
should address data sources, costs, and the provisions of the 2014 Farm 
Bill that support the alternative. The following suggestions may be 
helpful for preparing your comments:
     Explain your views as clearly as possible.
     Describe any assumptions that you used.
     Provide any technical information and data on which you 
based your views.
     Provide specific examples to illustrate your points.
     Offer specific alternatives to the current regulations or 
policies and indicate the source of necessary data, the estimated cost 
of obtaining the data, and how the data can be verified.
    Submit your comments by the comment period deadline.

Notice and Comment

    We are issuing this final rule without prior notice and opportunity 
for comment. The Administrative Procedure Act (APA) exempts rules 
``relating to agency management or personnel or to public property, 
loans,

[[Page 10572]]

grants, benefits, or contracts'' from the statutory requirement for 
prior notice and opportunity for comment. 5 U.S.C. 553(a)(2). However, 
FSA is providing a 60-day comment period and we invite you to 
participate in this rulemaking by submitting written comments, data, or 
views. We will consider the comments we receive and may conduct 
additional rulemaking based on the comments.

Executive Orders 12866 and 13563

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasized the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility.
    The Office of Management and Budget (OMB) designated this rule as 
not significant under Executive Order 12866, and therefore, OMB has not 
reviewed this rule.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA), generally requires an agency to prepare a regulatory 
flexibility analysis of any rule whenever an agency is required by APA 
or any other law to publish a proposed rule, unless the agency 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities. This rule is exempt from notice 
and comment rulemaking requirements of the APA and no other law 
requires that a proposed rule be published for this rulemaking 
initiative.

Environmental Review

    The environmental impacts of this final rule have been considered 
in a manner consistent with the provisions of the National 
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations 
of the Council on Environmental Quality (40 CFR parts 1500-1508), and 
the FSA regulations for compliance with NEPA (7 CFR part 799). The 2014 
Farm Bill extended and revised BCAP and authorized its funding through 
2018. FSA has no discretion in these BCAP provisions or changes; the 
only discretionary provisions in this final rule are minor editorial 
clarifications. The general scope of BCAP, as implemented under the 
2008 Farm Bill, is unchanged. As such, FSA has determined that this 
final rule does not constitute a major Federal action that would 
significantly affect the quality of the human environment, individually 
or cumulatively. Therefore, FSA will not prepare an environmental 
assessment or environmental impact statement for this regulatory 
action.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with State and local officials that 
would be directly affected by proposed Federal financial assistance. 
The objectives of the Executive Order are to foster an 
intergovernmental partnership and a strengthened Federalism, by relying 
on State and local processes for State and local government 
coordination and review of proposed Federal financial assistance and 
direct Federal development. For reasons specified in the final rule 
related notice regarding 7 CFR part 3015, subpart V (48 FR 29115, June 
24, 1983), the programs and activities within this rule are excluded 
from the scope of Executive Order 12372.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, ``Civil 
Justice Reform.'' This rule will not preempt State or local laws, 
regulations, or policies unless they represent an irreconcilable 
conflict with this rule. The rule does not have retroactive effect. 
Before any judicial action may be brought regarding the provisions of 
this rule, the administrative appeal provisions of 7 CFR parts 11 and 
780 are to be exhausted.

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' The policies contained in this rule do not have any 
substantial direct effect on States, on the relationship between the 
Federal government and the States, or on the distribution of power and 
responsibilities among the various levels of government, except as 
required by law. Nor does this rule impose substantial direct 
compliance costs on State and local governments. Therefore, 
consultation with the States is not required.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments.'' Executive Order 13175 requires Federal agencies 
to consult and coordinate with tribes on a government-to-government 
basis on policies that have tribal implications, including regulations, 
legislative comments or proposed legislation, and other policy 
statements or actions that have substantial direct effects on one or 
more Indian tribes, on the relationship between the Federal Government 
and Indian tribes or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes.
    FSA has assessed the impact of this rule on Indian tribes and 
determined that this rule does not, to our knowledge, have tribal 
implications that require tribal consultation under Executive Order 
13175. If a Tribe requests consultation, FSA will work with the USDA 
Office of Tribal Relations to ensure meaningful consultation is 
provided where changes, additions, and modifications identified in this 
rule are not expressly mandated by the 2014 Farm Bill.

The Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 
104-4) requires Federal agencies to assess the effects of their 
regulatory actions on State, local, and Tribal governments, or the 
private sector. Agencies generally need to prepare a written statement, 
including a cost benefit analysis, for proposed and final rules with 
Federal mandates that may result in expenditures of $100 million or 
more in any 1 year for State, local, or Tribal governments, in the 
aggregate, or to the private sector. UMRA generally requires agencies 
to consider alternatives and adopt the more cost effective or least 
burdensome alternative that achieves the objectives of the rule. This 
rule contains no Federal mandates, as defined in Title II of UMRA, for 
State, local, and Tribal governments or the private sector. Therefore, 
this rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

SBREFA

    SBREFA normally requires that an agency delay the effective date of 
a major rule for 60 days from the date of publication to allow for 
Congressional review. This rule is not a major rule under SBREFA. 
Therefore, FSA is not required to delay the effective date for 60 days 
from the date of publication to allow for Congressional review.

Federal Assistance Programs

    The title and number of the Federal Domestic Assistance Program 
found in

[[Page 10573]]

the Catalog of Federal Domestic Assistance to which this rule applies 
is the Biomass Crop Assistance Program--10:087.

Paperwork Reduction Act of 1995

    The regulatory changes in this rule do not require changes to the 
information collection requests currently approved by OMB control 
number 0560-0082.

E-Government Act Compliance

    FSA and CCC are committed to complying with the E-Government Act, 
to promote the use of the Internet and other information technologies 
to provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

List of Subjects in 7 CFR Part 1450

    Administrative practice and procedure, Agriculture, Energy, 
Environmental protection, Grant programs--agriculture, Natural 
resources, Reporting and recordkeeping requirements, Technical 
assistance.

    For the reasons discussed above, CCC amends 7 CFR part 1450 as 
follows:

PART 1450--BIOMASS CROP ASSISTANCE PROGRAM (BCAP)

0
1. The authority citation for part 1450 continues to read as follows:

    Authority: 7 U.S.C. 8111.

Subpart A--Common Provisions

Sec.  1450.1  [Amended]

0
2. Amend Sec.  1450.1, in paragraph (b), by removing the word 
``Program'' and adding the word ``Programs'' in its place.

Sec.  1450.2  [Amended]

0
3. Amend Sec.  1450.2 as follows:
0
a. Add, in alphabetical order, definitions for ``Agricultural residue'' 
and ``Eligible land'', to read as set forth below;
0
b. Remove the definitions for ``Beginning farmer or rancher'' and 
``Socially disadvantaged farmer or rancher'';
0
c. Revise the definitions for ``Dry ton'', ``Eligible crop'', 
``Eligible material'', and ``Technical assistance'', to read as set 
forth below;
0
d. In paragraph (2) of the definition of ``Native sod'', add the words 
``or the producer cannot substantiate that the ground has ever been 
tilled'' immediately after the word ``tilled''; and
0
e. In the definition of ``Yard waste'', remove the word ``byproducts'' 
and add the word ``by-products'' in its place.
    The revisions and additions read as follows:

Sec.  1450.3  Definitions.

* * * * *
    Agricultural residue means crop residue from agricultural lands, 
including woody orchard waste.
* * * * *
    Dry ton means one U.S. ton measuring 2,000 pounds. One dry ton is 
the amount of renewable biomass that would weigh one U.S. ton at zero 
percent moisture content. Woody material dry ton weight is determined 
in accordance with applicable American Society for Testing and 
Materials (ASTM) standards.
    Eligible crop means a crop of renewable biomass as defined in this 
section that is eligible for establishment payments and annual payments 
as specified in Subpart C of this part.
    Eligible land means agricultural and nonindustrial private forest 
lands on which eligible crops for establishment payments and annual 
payments may be grown, as specified in subpart C of this part.
    Eligible material means renewable biomass, including agricultural 
residue, as defined in this section that is harvested directly from the 
land and that is eligible for matching payments, as specified in 
subpart B of this part.
* * * * *
    Technical assistance means assistance in determining the 
eligibility of land and practices for BCAP, implementing and certifying 
practices, ensuring contract performance, and providing annual rental 
rate surveys. BCAP technical assistance may include, but is not limited 
to: technical expertise and services, information, and tools necessary 
for the conservation of natural resources on land; technical services 
provided directly to farmers, ranchers, and other eligible entities, 
such as conservation planning, technical consultation, and assistance 
with design and implementation of eligible practices; and technical 
infrastructure, including activities, processes, tools, and functions 
needed to support delivery of technical and program services, such as 
technical standards, resource inventories, training, data, technology, 
monitoring, compliance spot checks, and effects analyses.
* * * * *

Sec.  1450.9  [Removed]

0
4. Remove Sec.  1450.9.

Sec. Sec.  1450.10 to 1450.13  [Redesignated]

0
5. Redesignate Sec. Sec.  1450.10 through 1450.13 as Sec. Sec.  1450.9 
through 1450.12.

0
6. Revise newly redesignated Sec.  1450.9(b) to read as follows:

Sec.  1450.9  Appeals.

* * * * *
    (b) Determinations by the Natural Resources Conservation Service, 
U.S. Forest Service, Department of Interior, Bureau of Land Management, 
or other authorized technical assistance provider may be appealed in 
accordance with procedures established in part 614 of this title or 
otherwise established by the respective Agency.

Subpart B--Matching Payments

0
7. Revise Sec.  1450.101(a)(2)(v) and (vi) to read as follows:

Sec.  1450.101  Qualified biomass conversion facility.

    (a) * * *
    (2) * * *
    (v) Use commercial weight scales that are certified for accuracy by 
applicable State or local authorities and accurate moisture measurement 
equipment to determine the dry ton weight equivalent of actual tonnage 
delivered. Woody material dry ton weight must be determined in 
accordance with applicable ASTM standards; and
    (vi) Purchase eligible material at a fair market price that is 
consistent with similar products, regardless of whether or not the 
seller has applied for or receives a matching payment authorized by 
this subpart or if the seller and purchaser are related entities.
* * * * *

0
8. Amend Sec.  1450.102 as follows:
0
a. In paragraph (a)(2), remove the words ``eligible material'' and add 
the words ``eligible material, regardless of whether the eligible 
material is produced on contract acreage authorized by subpart C of 
this part,'' in their place; and
0
b. Revise paragraph (a)(3).
    The revision reads as follows:

Sec.  1450.102  Eligible material owner.

    (a) * * *
    (3) Certify that the eligible material for which a payment may be 
issued as specified in Sec.  1450.106 has been harvested according to a 
conservation plan, forest stewardship plan, or equivalent plan, and, if 
woody eligible material collected or harvested on land other than 
contract acreage, the woody material is a by-product of preventative 
treatments that was removed to reduce hazardous fuels or to reduce or 
contain disease or insect infestation.
* * * * *

0
9. Amend Sec.  1450.103 as follows:
0
a. Revise the section heading;
0
b. Revise paragraph (a), introductory text;

[[Page 10574]]

0
c. Remove paragraph (a)(1) and redesignate paragraphs (a)(2) through 
(4) as paragraphs (a)(1) through (3);
0
d. Revise newly redesignated paragraph (a)(2)(i);
0
e. Revise paragraphs (b)(1), (3) and (4) and add paragraphs (b)(5) 
through (10); and
0
f. Add paragraph (c).
    The revisions and additions read as follows:

Sec.  1450.103  Eligible material for payments.

    (a) Except for the exclusions specified in paragraph (b) of this 
section, in order to qualify for matching payments, eligible material 
must meet the following requirements:
* * * * *
    (2) * * *
    (i) By-products of preventative treatments that were removed to 
reduce hazardous fuels or to reduce or contain disease or insect 
infestation; and
* * * * *
    (b) * * *
    (1) Any eligible material delivered before May 28, 2015;
* * * * *
    (3) Material that is whole grain from any crop that is eligible to 
receive payments under title I of the Agricultural Act of 2014 or an 
amendment made by that title, including, but not limited to, barley, 
corn, grain sorghum, oats, rice, or wheat; honey; mohair; certain 
oilseeds such as canola, crambe, flaxseed, mustard seed, rapeseed, 
safflower seed, soybeans, sesame seed, and sunflower seeds; peanuts; 
pulse; chickpeas, lentils, and dry peas; dairy products; sugar; and 
wool and cotton boll fiber;
    (4) Animal waste and by-products of animal waste including fats, 
oil, grease, and manure;
    (5) Food waste and yard waste;
    (6) Algae;
    (7) Woody eligible material that is not a by-product of a 
preventative treatment to reduce hazardous fuel or to reduce or contain 
disease or insect infestation;
    (8) Any woody eligible material collected or harvested outside 
contract acreage that would otherwise be used for higher-value 
products;
    (9) Any otherwise eligible material collected or harvested outside 
contract acreage that, after delivery to a biomass conversion facility, 
its campus, or its affiliated facilities, must be separated from an 
eligible material used for a higher-value market product in order to be 
used for heat, power, biobased products, research, or advanced 
biofuels; or
    (10) Bagasse.
    (c) For eligible woody material harvested or collected from public 
lands, a person having the right to harvest or collect eligible 
material pursuant to a contract or permit with the U.S. Forest Service 
or other appropriate Federal agency will not be eligible for additional 
haul costs unless the facility is a further distance than specified in 
the contract requirement or the material was not a mandatory removal 
item from Federal lands.

0
10. Amend Sec.  1450.104 by revising paragraphs (a), (b), and (f)(1) to 
read as follows:

Sec.  1450.104  Signup.

    (a) Applications for participation and requests for payments under 
this subpart will be accepted as specified in the FSA announcement(s) 
in a given fiscal year through the end of the announced sign up period 
on a continuous basis, subject to the availability of funds.
    (b) An eligible material owner must apply to participate in the 
matching payments component of BCAP before delivery is made to a 
qualified biomass conversion facility and before payment for the 
eligible material is received from the qualified biomass conversion 
facility. The application must be submitted to the FSA county office 
servicing the tracts of land where the collection and harvest will 
occur and must be approved by CCC, before any delivery is made to or 
payment is made by the qualified biomass conversion facility for the 
eligible material.
* * * * *
    (f) * * *
    (1) Total actual tonnage delivered and a total dry weight tonnage 
equivalent amount determined by the qualified biomass conversion 
facility using standard moisture determinations applicable to the 
eligible material (Woody material dry ton weight is determined in 
accordance with applicable ASTM standards);
* * * * *

0
11. Amend Sec.  1450.106 as follows:
0
a. Revise paragraph (a); and
0
b. In paragraph (b), remove the amount ``$45'' and add the amount 
``$20'' in its place.
    The revisions read as follows:

Sec.  1450.106  Payments.

    (a) Payments under this subpart will be made for a term not to 
exceed 2 years, commencing on the date that CCC issues the first 
payment under this subpart to the participant. The 2-year eligibility 
period for each participant runs from the date that the participant is 
first issued any matching payment from CCC, regardless of payment for 
subsequent deliveries to any other biomass conversion facility. The 
eligibility period will not include any BCAP matching payments received 
prior to May 28, 2015.
* * * * *

Subpart C--Establishment Payments and Annual Payments

0
12. Add Sec.  1450.200(b) to read as follows:

Sec.  1450.200  General.

* * * * *
    (b) Eligible crops include renewable biomass, as defined Sec.  
1450.2, excluding:
    (1) Any crop that is eligible to receive payments under title I of 
the Agricultural Act of 2014 or an amendment made by that title, 
including, but not limited to, barley, corn, grain sorghum, oats, rice, 
or wheat; honey; mohair; certain oilseeds such as canola, crambe, 
flaxseed, mustard seed, rapeseed, safflower seed, soybeans, sesame 
seed, and sunflower seeds; peanuts; pulse; chickpeas, lentils, and dry 
peas; dairy products; sugar; and wool and cotton boll fiber; and
    (2) Any plant that CCC has determined to be either a noxious weed 
or an invasive species. With respect to noxious weeds and invasive 
species, a list of such plants will be available in the FSA county 
office.

0
13. Amend Sec.  1450.201 as follows:
0
a. In paragraph (a)(3), add the words ``has or'' immediately before the 
word ``will''; and
0
b. Revise paragraph (a)(4).
    The revision reads as follows:

Sec.  1450.201  Project area proposal submission requirements.

    (a) * * *
    (4) Any other information that gives CCC a reasonable assurance 
that the biomass conversion facility will be in operation in a timely 
manner so that it will use the eligible crops, as determined by CCC.
* * * * *

0
14. Amend Sec.  1450.202 as follows:
0
a. In paragraph (a)(8), remove the word ``and'';
0
b. Revise paragraph (a)(9); and
0
c. Add paragraph (a)(10).
    The revision and addition read as follows:

Sec.  1450.202  Project area selection criteria.

    (a) * * *
    (9) Status as an existing project area that has received funding 
under this subpart and the continuation of funding such project areas 
to advance the maturity of such project areas; and
    (10) Any other necessary additional information, as determined by 
CCC.
* * * * *

[[Page 10575]]

0
15. Amend Sec.  1450.204 as follows:
0
a. Revise paragraphs (b)(3) and (4); and
0
b. Remove paragraph (b)(5).
    The revisions read as follows:

Sec.  1450.204  Eligible land.

    (b) * * *
    (3) Land enrolled in the Conservation Reserve Program (CRP) as 
specified in part 1410 of this chapter for which either:
    (i) The enrollment is not expiring in the current fiscal year; or
    (ii) A CRP payment for this land has been received in the current 
fiscal year; or
    (4) Land enrolled in the Agricultural Conservation Easement Program 
(ACEP) for which either:
    (i) The enrollment is not expiring in the current fiscal year; or
    (ii) An ACEP payment for this land has been received in the current 
fiscal year.

Sec.  1450.211  [Amended]

0
16. Amend Sec.  1450.211, in paragraph (g)(4), by adding the word 
``by'' immediately before the word ``CCC''.

Sec.  1450.212  [Amended]

0
17. Amend Sec.  1450.212, in paragraph (d), by removing the words 
``agreed to'' and adding the word ``determined'' in their place.

0
18. Amend Sec.  1450.213 by revising paragraphs (a) and (b) to read as 
follows:

Sec.  1450.213  Levels and rates for establishment payments.

    (a) CCC will pay not more than 50 percent of the actual or average 
cost (whichever is lower) of establishing non-woody perennial crops and 
woody perennial crops specified in the conservation plan, forest 
stewardship plan, or equivalent plan, not to exceed $500 per acre. For 
socially disadvantaged farmers or ranchers, as defined in part 718 of 
this title, establishment payments may not exceed $750 per acre.
    (b) The average cost of performing a practice will be determined by 
CCC based on recommendations from the State Technical Committee. Such 
cost may be the average cost in a State, a county, or a part of a State 
or county, as determined by CCC. The average cost as determined by CCC 
will be used for payment purposes, if it is less than the actual cost 
for an individual participant.
* * * * *

Sec.  1450.215  [Amended]

0
19. Amend Sec.  1450.215, in paragraph (c), by removing the words ``the 
contract'' each time they appear and adding the words ``the BCAP 
contract'' in their place.

    Signed at Washington, DC, on February 23, 2015.
Val Dolcini,
Executive Vice President, Commodity Credit Corporation, and 
Administrator, Farm Service Agency.
[FR Doc. 2015-04092 Filed 2-26-15; 8:45 am]
BILLING CODE 3410-05-P
```