Connecticut - EQIP Policy Decisions for Fiscal Year 2009 (DRAFT)

(Subject to revision by the Connecticut NRCS State Conservationist)
Connecticut Supplement to 440-V-Conservation Program Manual (CPM)
Effective for Fiscal Year 2009 EQIP Program.

Cutoff Date for 2009 EQIP Application Period

1. The State Conservationist established a cutoff date of February 27, 2009 for the 2009 EQIP Program.
   Applications received after February 27, 2009 will be considered for subsequent ranking periods or next year’s program.
   CPM 515.70(1).
    
2. Eligible Practices
   Eligible practices are those on the Connecticut NRCS 2009 EQIP Practice List and 2009 EQIP Payment Schedule. (CPM 512.11 B. and 512.33)
    
3. Policy for Agricultural Waste Management System Planning
   Policy: Participants must submit a draft Comprehensive Nutrient Management Plan (CNMP) to the Connecticut Department of Environmental Protection (CT DEP) on or before February 27, 2009 and receive a final permit or approval on or before September 11, 2009 to be considered for the FY 2009 program. Producers who submit the CNMP after February 27, 2009 will be considered for a subsequent ranking periods or the next year’s EQIP program on a case by case basis.
   
   Rationale: CPM 515.80C. requires that participants “comply with any applicable program or regulatory requirements.” In addition, “any participant with an EQIP contract that includes an animal waste storage or treatment facility will provide for the development of a CNMP prior to the implementation of a waste storage / treatment facility.” Compliance with this section includes meeting the requirements of Connecticut General Statutes, Sections 22a-424, 427, 430, 432 and or 433. For other than statutory or designated Confined Animal Feeding Operations (CAFOs), CT DEP generally issues approvals of CNMPs in lieu of permits in order to comply with these requirements. Therefore, only participants with permits or approved plans are eligible for EQIP contracts that include agricultural waste management practices.
   
   For CNMPs developed by NRCS, a minimum lead-time of 4 to 5 months is required for CNMP planning. This includes time to perform assessments, develop acceptable alternatives, make decisions, develop cost estimates, write the draft CNMP, and review and revise the plan with the producer, DEP, and CES. An additional 4 months is required to develop detailed EQIP cost estimates, rank and evaluate the proposal, develop plans of operation, and write the EQIP contract for approved participants. The final design process for specific engineering practices does not commence until an EQIP contract is signed. CNMPs shall be developed in accordance with the USDA, Natural Resources Conservation Service Conservation Planning Policy and the USDA NRCS Comprehensive Nutrient Management Planning Technical Guidance (NPPH Part 600.5).
    
4. Policy for CNMP Incentive Payments

****Incentive Payment for Development of a CNMP – Not available for the 2009 EQIP Program. ****

CPM 512.32 B. allows a producer an “incentive payment … to … develop a Comprehensive Nutrient Management Plan (CNMP) that would not otherwise be initiated without assistance.”

Policy: The incentive payment allowed is $250 per operation payable upon approval of the CNMP by the Connecticut DEP. (This is the CAFO General Permit registration fee for a CNMP. To date, Connecticut DEP has not adopted the CAFO General Permit, therefore there is no need for the incentive payment.)

Rationale: NRCS provides technical assistance (TA) at no cost to EQIP applicants to develop CNMPs. The agricultural waste management system practices in an approved CNMP are eligible for payments through EQIP. If a producer chooses to have a technical service provider (TSP) develop the CNMP, this service is also provided to the producer in an EQIP contract at no-cost using EQIP TA funds from NRCS. The State Conservationist has determined that this level of assistance is sufficient incentive to encourage producers who participate in EQIP to develop a CNMP.

Note: NRCS requires a CNMP be developed and approved as a condition of eligibility for EQIP animal waste storage or treatment management facilities. Therefore, applicants will need to obtain a waiver to complete these practices prior to signing an EQIP contract as described in CPM 515.101a.

5. Policy for Determining Eligibility as an Agricultural Producer

Policy: CT Supplement to CPM 515.51 C (2) (v). The NRCS State Conservationist has determined for the Fiscal Year 2009 EQIP Program that acceptable forms of proof of documentation are an Internal Revenue Service (IRS) Profit or Loss from Farming (Form1040, Schedule F), other accounting records certified by a tax preparer, or any other documentation submitted to the IRS as part of a tax return that show profit or loss from farm operations.

6. Policy for Horse Operations

Policy: The NRCS State Conservationist, in consultation with the State Technical Committee, has determined for the Fiscal Year 2009 EQIP Program that NRCS will offer assistance to equine producers who meet the producer eligibility and land eligibility requirements of the EQIP program as described in CPM 515.51 and 515.52.

Policy: CT Supplement to CPM 515.51 C (3) (iii). The NRCS State Conservationist has determined for the Fiscal Year 2009 EQIP Program that horses may be considered as “Other animals as identified by the Chief”.

7. Policy for Irrigation and Irrigation Water Management

Policy: According to CPM 515.52 B. and 515.81 B. (iv), “A participant will be eligible for financial assistance for water conservation irrigation related structural, vegetative, and land management practices only on land that has been irrigated for two of the past five years prior to application for assistance.” NRCS will provide a process and identify documentation necessary to validate irrigation history. In addition only irrigation systems that can achieve a minimum of 20% decrease in water use as determined by NRCS are eligible for EQIP. If the operation is subject to the provisions of the Water Diversion Program of the Connecticut DEP Inland Water Resources Division, then the operation must be in compliance with Sections 22a-365 through 22a-379 of the Connecticut General Statutes (CGS). In general, a permit is required to conduct activities that result in the alteration of surface water flows, and withdrawals of surface and ground water exceeding 50,000 gallons in any 24-hour period. Diversions existing on or before July 1, 1982, which were registered with the Department on or before July 1, 1983, do not require a permit. There are exemptions for minor diversions described in the regulations.

Note 1: NRCS may not be able to provide detailed design assistance to participants for irrigation related practices. In these cases, it shall be the landowner’s responsibility to obtain assistance from an irrigation design and installation firm or individual that is certified as a Technical Service Provider (TSP). NRCS will provide current standards to firms and TSPs. These vendors will then provide drawings (plan views, etc.), specifications, and a comprehensive list of materials proposed and installed to the participant and NRCS. TSPs will also certify that practices are designed, installed, or implemented and/or records are kept according to current NRCS standards. The non-NRCS providers will also develop “AS-BUILT” drawings and distribute them to NRCS, and the landowner.

Note 2: The eligibility and use of retrofitting of structural practices and/or new or innovative irrigation technologies will be considered and payment schedules set on a case by case basis by the State Conservationist in accordance with CPM 515.81H and I.

8. Policy for Beginning Farmers

For Beginning Farmers:
According to CPM 515.51C. (2), “To be eligible for EQIP, an applicant who certified as a beginning farmer or rancher must also be determined as an agricultural producer.”

9. Policy for Deer Fencing

Deer exclusion fencing on forestland (Connecticut NRCS Standard 472, Access Control) is allowed as an eligible practice if a participant possesses or has been determined to be eligible for a 2008 or 2009 “Wildlife Permit: Commercial Deer Damage” from the Connecticut Department of Environmental Protection, Bureau of Natural Resources, Wildlife Division to take deer causing damage to commercially grown crops. Priority will be given to those applications where the deer exclusion fencing is a component of an integrated pest management (IPM) plan developed in accordance with University of Connecticut guidelines.

Deer exclusion fencing shall also be considered for payment under EQIP when the practice is included in a forest management plan prepared by a Connecticut Certified Forester and developed in accordance with Connecticut NRCS Standard 409, Prescribed Forestry or NRCS forest management plan criteria. Practice eligibility shall be determined by NRCS in consultation with the forester preparing the plan. The primary purpose of the practice must be consistent with one or more of the purposes listed in the Prescribed Forestry standard. Practices whose sole purpose is to enhance production are not eligible for EQIP payment.

10. Policy for Grazing Operations

Payments will not be authorized to clear or bring land into production. According to CPM 515.81B. (i) and 515.91H. (2) vii, practices are ineligible for payments or incentive payments where the sole purpose is to enhance production without an identifiable conservation benefit or natural resource concern.

Eligible Land
Improved pasture land or land where adapted native and/or introduced forage species support hayland and pasture functions that meet the grazing history, prescribed grazing plan and brush management criteria described below.

Grazing History
A participant will be eligible for payments or incentive payments for grazing related structural and land management practices only on land that has been grazed or cropped for two of the last five years prior to application for assistance. The State Conservationist may require written certification or other documentation to validate grazing history.

Prescribed Grazing Plan
All contract applications for grazing operations shall be supported by documentation of grazing history and a prescribed grazing plan developed in accordance with Connecticut NRCS Practice Standard 528, Prescribed Grazing.

For all livestock grazing operations, HUAs shall be components of an approved prescribed grazing plan developed in accordance with Connecticut NRCS Standard 528 Prescribed Grazing. HUAs used to confine livestock shall be sized to accommodate temporary confinement during periods when pastures are unavailable and the landowner will be expected to confine livestock to the HUA during these periods.

If the HUA is covered by a roof structure, (waste facility cover) the cover shall be a component of an approved CNMP.

If the HUA is not covered, the runoff shall be collected in a waste storage facility that is a component of an approved CNMP. Also see item #11.

Brush Management
Brush Management shall be in accordance with Connecticut NRCS Standard 314, Brush Management. This practice applies only to existing:

• Pasture land being used as part of a prescribed grazing system.
• Hayland being used as part of a prescribed grazing system.
• Cultivated cropland being converted to pasture or hayland as part of a conversion to a prescribed grazing system.

Note: For the purposes of this policy, land areas that are predominately forested or wooded are not considered pasture regardless of their use by grazing animals. Woodlands are not marginal pasture.

11. Policy for Waste Facility Covers (Roof Structures)

Payments are authorized for roof structures which exclude rainfall from heavy use areas, waste storage facilities, animal mortality facilities, and composting facilities when it is the most practical and feasible solution (least cost alternative). Payments are not authorized for livestock housing or production oriented building components.

Operators can install curtains, walls, or doors to block prevailing winds or blowing rain or snow from entering the facility at their own cost. Other housing components or feeding facilities (such as hay racks, round bale feeders, headlocks, feed bunks, mangers, or stalls, and/or laneways or access roads that serve these facilities exclusively) are not eligible for payments. Fencing used to confine the animals to the HUA is eligible. Centralized livestock watering facilities as well as additional practices such as roof runoff structures (gutters and downspouts) and underground outlets that are identified in the CNMP are also eligible for payments.

All roof structures shall be designed in accordance with the Connecticut NRCS Standard 367, Waste Facility Cover and shall be a component of an approved CNMP or Prescribed Grazing Plan where applicable. To be eligible for EQIP payment, roof structures shall also meet the requirements of # 12.

In accordance with Connecticut Bulletin 440-7-01, engineering technical assistance for the design of the practices heavy use area (HUA) (Code 561), waste storage facility (WSF) (Code 313), or composting facility (Code 317) shall be limited to surface and integral structures including site work. Roof structures for animal mortality facilities (Code 316) are also included in this policy.

When a waste facility cover is specified in the contract for an HUA, WSF, animal mortality facility, or composting facility, the design shall be based on the current Connecticut NRCS Standard 367, Waste Facility Cover. Landowners have two options for obtaining the design for these waste facility covers:

1. Use Connecticut NRCS standard drawings for the waste facility cover. Customization will not be available from NRCS.
2. Contract with a building company/contractor and/or an engineering firm that has the ability to design the waste facility cover as well as the foundation and provide sealed drawings by an engineer licensed in Connecticut.

NRCS will provide current standards and specifications to these firms or individuals. These vendors will then provide drawings, applicable specifications, and a list of materials to the participant and NRCS. NRCS will perform a cursory review of the drawings to ensure compliance with the 367 standard. NRCS will provide layout and construction inspection technical assistance and certify that the practice(s) are completed in accordance with current NRCS standards.

In all cases, these structures shall be designed in accordance with the 367 standard and contract payments shall be limited to the amount specified in the contract.

12. Policy for Multi-Purpose Buildings

This policy is based on the requirements of CPM 515.91H, Ineligible Costs (pages 515.J-4 and 5 of the draft EQIP Manual).

Livestock buildings are ineligible. Any building or part of a building used for livestock housing or feeding and other uses is not eligible for payment. A producer can at his or her own expense, construct a livestock building adjacent to a covered HUA and put stalls in it for housing or feeding.

A roofed heavy use area that provides more than incidental livestock housing is ineligible. This means that at least 75% of the building must be solely for waste storage or water quality concerns.

The State Conservationist may determine that a certain “building” is a necessary component of a CNMP or prescribed grazing system and would be eligible for payment. In addition, certain “multi-purpose” buildings may be eligible. For multi-purpose buildings, the payment rate will be pro-rated (at the amount of the least-cost alternative) to that portion of the building primarily used for animal waste handling or to achieve water quality purposes.

Beginning with 2009 EQIP contracts, the payment schedule for multi-purpose buildings will be pro-rated and any areas used for livestock housing and other uses will not be eligible for payment.

For the purposes of this policy, a multi-purpose building is any facility that is utilized by livestock (HUAs) or is normally used seasonally or occasionally (Composting Facility, Animal Mortality Facility, or non-liquid Waste Storage Facility).

The State Conservationist has determined that the pro-rated eligible portion for multi-purpose buildings is 80% of the applicable payment rate for 2009. The pro-rated payment schedule shall apply to all multi-purpose buildings. The 2009 payment schedule includes pro-rated categories for Heavy Use Area (Connecticut NRCS Standard 561), Waste Storage Facility (Connecticut NRCS Standard 313), Composting Facilities (Connecticut NRCS Standard 317), and Waste Facility Cover (Connecticut NRCS Standard 367) for conservation contracting purposes. For 2009, “normal use” Animal Mortality Facilities (Connecticut NRCS Standard 316), use the payment schedule for Composting Facility.

For example, consider a covered HUA. It might help to draw a line between the HUA portion and the livestock building portion.

The livestock portion contains animal housing and/or feeding facilities. The entire livestock building portion is not eligible and is paid for 100% by the producer.

The HUA portion contains only those areas that are components of a prescribed grazing plan and/or CNMP and are used solely for waste storage (CNMP) or water quality (prescribed grazing) concerns. EQIP will pay for a prorated 80% of the covered HUA portion at a 75% payment rate. Regardless of how it's laid out, the payment rate for the covered HUA portion is prorated at 80% per the policy.

13. Policy for New or Expanding Livestock Operations

According to CPM 515.72A., the State Conservationist is responsible for developing a ranking process that gives higher priority to applications that address national priorities and optimize environmental benefits. Using the guidance provided, it was determined that implementing practices on existing operations should be given priority over practices proposed on new or expanding operations.

Additional requirements for producer eligibility and land eligibility are found in CPM 515.51 and 515.52.

14. Policy for Atmospheric Resource Quality Management Incentive Payments

CPM 512.30D., 512.32B., and 515.91D. allows a participant an incentive payment “in an amount and level necessary to encourage a participant to perform a land management practice…… that would not otherwise be initiated without assistance.”

Atmospheric Resource Quality Management Plans (ARQMP) are eligible for EQIP financial assistance only if all of the following conditions are met:

• The applicant is an eligible producer according to CPM 515.51
• The land is eligible according CPM 515.52.
• The ARQMP was developed in accordance with Connecticut NRCS Standard 370, Atmospheric Resource Quality Management.
• The ARQMP addresses the reduction of fine particulate matter emissions or PM-2.5. Management plans to decrease PM-2.5 production from oil furnaces or boilers and diesel engine emissions on other cropland areas such as greenhouses, maple sugar production facilities, or irrigation activities shall include, as appropriate, energy conservation measures to reduce fuel usage, use of heating fuels that are a blend of low-sulfur and biodiesel or conversion to use of alternative fuels that reduce the production of PM-2.5 emissions. Management plans developed shall be in accordance with Connecticut Special Act 05-07.

In Addition:

• The participant shall have a feasibility study conducted for all proposed solar, wind, or geo-thermal renewable energy source projects prior to COB February 27, 2009. The feasibility study shall be conducted by an independent contractor at the participant’s expense and be reviewed by NRCS for adequacy prior to COB February 27, 2009. The feasibility study must show a favorable cost-benefit for the project as determined by NRCS.
• The participant shall have construction plans completed for all proposed solar, wind, or geo-thermal renewable energy source projects prior to COB February 27, 2009. The plans shall be completed by an independent contractor at the participant’s expense and be reviewed by NRCS for adequacy. Plans shall contain specifications, a detailed cost estimate, and an estimate of fuel use reduction.
• The participant shall have construction plans completed for all energy conservation or energy efficiency projects prior to COB February 27, 2009. The plans shall be completed by an independent contractor at the participant’s expense and be reviewed by NRCS for adequacy. Plans shall contain specifications, a detailed cost estimate, and an estimate of fuel use reduction.
• The participant shall have construction plans completed for all waste facility covers prior to COB February 27, 2009. The purpose of installing a waste facility cover shall be for odor control and reduction of methane emissions. The cover plans and specifications shall be in accordance with Connecticut NRCS Standard 367, Waste Facility Cover. Only existing or planned waste storage facilities that meet the current Connecticut NRCS Standard 313, Waste Storage Facility are eligible. Waste storage facilities that do not meet the current Connecticut NRCS Standard 313 will be considered by NRCS on a case by case basis.
• All federal, state, and /or local permits shall be obtained by the participant and submitted to NRCS at the time of application.
• Energy produced from EQIP funded renewable energy source projects shall be used only for agricultural production purposes.

Notes:

• EQIP financial assistance will be provided as a single incentive payment with period of adoption of 1 year (CPM 512.32B.).
• The participant shall keep records in accordance with the provisions of the ARQMP.

15. Policy for New Technology or Innovative Conservation Practices

New Technology or Innovative Conservation Practices

The State Conservationist may approve new technologies or innovative conservation practices with advice from the State Technical Committee in accordance with CPM 515.81 I.

New technology or innovative conservation practices are considered on a case by case basis by the State Conservationist, and are eligible when interim standards are developed, approved by the Connecticut NRCS State Technical Guide Committee and incorporated into the Connecticut FOTG or eFOTG, Section IV.

16. Policy for Composting Facilities

Composting facilities are eligible for EQIP financial assistance only if all of the following conditions are met:

• The applicant is an eligible producer according to CPM 515.51
• The land is eligible according to CPM 515.52.
• The composting facility can be permitted and/or approved by the Connecticut Department of Environmental Protection (CT DEP) through an agricultural waste management plan (AWMP). CT DEP makes this determination on a case by case basis. See the chart in the most recent “Summary of Waste and Water Bureau Permits and Approvals Which May Be Required for Composting Operations”. Also see Policy #3 for application cutoff and approval dates.

Notes:

• A composting facility is an eligible practice according to CPM 515.81A. Compost is considered and agricultural commodity.
• For eligible operations, NRCS may provide detailed design, layout, and construction inspection technical assistance to EQIP participants for composting facilities. In those cases where NRCS does not provide the design assistance, it shall be the landowner’s responsibility to obtain design and installation services from a qualified entity who is certified as a Technical Service Provider (TSP) with NRCS. NRCS will provide current standards to TSPs who shall provide drawings, specifications, and a comprehensive list of quantities and materials proposed and installed to the landowner and NRCS. TSPs will also certify that practices are designed, installed, or implemented and/or records are kept according to NRCS standards. TSPs shall also develop AS-BUILT drawings and distribute them to NRCS and the landowner.
• Non farm operations that produce compost are not eligible for EQIP financial assistance.

17. Policy for Private, Non-Industrial Forestland

Private non-industrial forestland is eligible for EQIP financial assistance according to CPM 515.52B. See CPM 515.51C. for determining eligibility of producers with forest land.

Components of a forest management plan may be eligible for EQIP financial assistance if they are consistent with EQIP policies and program objectives. Eligibility shall be determined by NRCS on a case by case basis. The following guidelines may be used by NRCS to evaluate eligibility.

Policy: Structural and management practices for forestland shall be considered for payments under EQIP when the practices are included in a forest management plan prepared by a Connecticut Certified Forester and developed in accordance with Connecticut NRCS Standard 409, Prescribed Forestry. Practice eligibility shall be determined by NRCS in consultation with the forester preparing the plan. The primary purpose(s) of the practice(s) must be consistent with one or more of the purposes listed in the Prescribed Forestry standard. Practices whose sole purpose is to enhance production are not eligible for EQIP payment.

The following practices eligible for EQIP financial assistance include but are not limited to:

Access Road (560) – Improve existing roads to reduce erosion, improve or protect water quality, or provide other environmental benefits. This could include relocating roads to more suitable locations.

Deer Exclusion Fencing (Connecticut NRCS Standard 472, Access Control) – This includes deer exclosure fencing to protect natural regeneration or planted trees from damage or tree protectors for planted trees where it is evident that wildlife damage will negatively impact the wildlife value of a future forest stand. Fencing to exclude livestock from forestland shall not be eligible as a forestry practice.

Tree/Shrub Site Preparation (490) – This includes treatment of areas to improve site conditions for establishing trees and/or shrubs and/or natural regeneration when this practice is specified as a wildlife habitat improvement component of a forest management plan.

Forest Stand Improvement (666) – Manipulate species composition, stand structure or stocking to increase the quality of the forest stand when such operations cannot be done as part of a sale of wood products. This practice is eligible only where the primary purpose is regeneration of natural plant communities including control of invasive species and/or improvement of wildlife habitat as specified in the forest management plan. Invasives control is appropriate where invasives are becoming established in forested areas or where they are otherwise detrimental to the existing forest stand, and where it is expected that they can be controlled with reasonable effort.

Forest Trails and Landings (655) – Improve existing trails and landings to reduce erosion, improve or protect water quality, or provide other environmental benefits. This may include relocating trails to more suitable locations. Maintenance and proper closure of trails or landings where active commercial forest products harvest are taking place shall be considered the responsibility of the forest products harvester and shall not be considered for payment under EQIP.

Pest Management (595) – Use environmentally sensitive prevention, avoidance, monitoring and suppression strategies to manage weeds, insects, diseases, other animals, and other organisms (including invasive and non-invasive species) that directly or indirectly cause damage. Pest management plans shall be developed in accordance with integrated pest management (IPM) general principles and University of Connecticut and/or Connecticut Agricultural Experiment Station guidance.

Riparian Forest Buffer (391) – Establish an area of trees and/or shrubs adjacent to and/or upgradient from surface water and/or ground water resources.

Tree/Shrub Establishment (612) – Establish trees or shrubs for wildlife, erosion control, improvement of water quality, or other environmental benefits.

Tree/Shrub Pruning (660) – Reduce fire hazards, improves the growth, vigor, or composition of understory plants.

Notes:

• Other practices not specifically related to forest management may be applied in a forest setting for their intended purpose. Examples include Critical Area Planting (342), Conservation Cover (327), and Diversion (342).
• As of September, 2009, Connecticut NRCS Standards for Tree/Shrub Site Preparation (490), Forest Stand Improvement (666), Forest Trails and Landings (655), Pest management (595), and Riparian Forest Buffer (391) are being updated. For additional guidance, please refer to the provisions and requirements of the most recent NRCS national standards.

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