ACEP Final Rule The ACEP Final Rule has

ACEP Final Rule • The ACEP Final Rule has been published • 7 CFR 1468 • Government Printing Office has not updated the regulation on their site yet, so you will need to look at the Federal Register to see changes. • Effective as of October 18, 2016 • NRCS Farm Bill page has link to the Federal Register and a summary of key changes http: //www. nrcs. usda. gov/wps/portal/nrcs/detail/national/programs/farmbill/? cid=stelprdb 1263599 1

ACEP Final Rule • 102 commenters submitted 1, 055 comments • Majority of comments were on ALE • • 10% General ACEP 80% ALE 3% ALE-GSS 7% WRE • Majority of preamble discussion and changes to the body of the Rule are in Subpart B - the ALE component 2

ACEP Final Rule • Changes to the body of the rule are fairly minimal • The preamble is extensive and includes: • • Summary of comments received NRCS response to comments received Rationale for how comments were addressed Clarifications and explanations of approach • Preamble is great source of information about ACEP 3

ACEP Final Rule Preamble Highlights: • Comments and discussion on individual minimum deed terms • The changes to the minimum deed terms as a result of the comments were adopted in the 4 -29 -16 version that was published in FY 2016. • Do not anticipate significant further change in minimum deed terms for FY 2017 4

ACEP Final Rule Preamble Highlights: • Lengthy discussion and clarification on purpose of regulatory deed requirements and use of minimum deed terms • New process to allow States to submit additional State-specific minimum deed terms to address local concerns • Explains the process for developing an entity-specific deed template 5

ACEP Final Rule • The ACEP manual and exhibits are being updated currently • Anticipate publication in March 2017 • In the interim, FY 2017 Implementation Guidance has been provided and will include some of the updated exhibits. • FY 17 guidance will be updated and clarified as needed 6

Questions? Slide 7

ACEP Final Rule Changes to body of the Rule 7 CFR 1468. 3 - Definitions • New definitions • ALE-agreement, at-risk species, future viability, grassland • Revised definitions • Grasslands of special environmental significance • ALE-Agreement is now the term used to refer to either an ALE Cooperative Agreement with noncertified entities or the ALE Grant Agreement with certified entities. • This change is reflected throughout the rule and will be reflected in the updated manual 8

ACEP Final Rule Grassland means land on which the vegetation is dominated by grasses, grass-like plants, shrubs, or forbs, including shrubland, land that contains forbs, pastureland, and rangeland, and improved pastureland rangeland. Note: Definition was brought over from GRP given the merger of the FRPP and GRP into ACEP-ALE 9

ACEP Final Rule At-risk species means any plant or animal species listed as threatened or endangered; proposed or candidate for listing under the Endangered Species Act; a species listed as threatened or endangered under State law or Tribal law; State or Tribal land species of conservation concern; or other plant or animal species or community, as determined by the State Conservationist, with advice from the State Technical Committee or Tribal Conservation Advisory Council, that has undergone, or is likely to undergo, population decline and may become imperiled without direct intervention. Note: Consistent with definition of at-risk species used in the other NRCS program regulations (EQIP/CSt. P) 10

ACEP Final Rule Future viability means the legal, physical, and financial conditions under which the land itself will remain capable and available for continued sustained productive agricultural or grassland uses while protecting related conservation values. Note: Definition added based on comments received. 11

Questions? Slide 12

ACEP Final Rule Changes to body of the Rule 7 CFR 1468. 10 – Environmental Markets Added • (c) ACEP funds may not be used to enter agreements to implement conservation practices that the landowner is required to establish as a result of a court order or to satisfy any mitigation requirement for which the ACEP landowner is otherwise responsible. 13

ACEP Final Rule Changes to body of the Rule 7 CFR 1468. 22 – Priorities, Ranking, Selection • National Ranking Criteria – new and modified • Added criteria specific to grasslands (b)(12) • Minor changes to others (b)(1), (8), and (10) • State Ranking Criteria – • Added criteria for multifunctional benefits (c)(3) • Minor changes to (c)(4) and (5) • Updated ranking has been provided to States in FY 2017 guidance available on edirectives as NB-300 -17 -7 • Updated example ranking will also be posted in the ACEP manual updates 14 • States are updating their ranking criteria to reflect the changes

ACEP Final Rule National Ranking Criterion specific to grasslands added: Decrease in the percentage of acreage of permanent grassland, pasture, and rangeland, other than cropland woodland pasture, in the county in which the parcel is located between the last two USDA Censuses of Agriculture 15

ACEP Final Rule Changes to body of the Rule 7 CFR 1468. 24 – Compensation and Funding for ALE • Added additional considerations for Projects of Special Significance • 7 CFR 1468. 24 - (b)(4)(vi)(G-J) • Projects that are part of a comprehensive plan to protect large blocks of agricultural land, or facilitate transfer to new and beginning farmers • Existing RMS plan with practices being applied in accordance with NRCS standards and specs • Others 16

ACEP Final Rule Changes to body of the Rule 7 CFR 1468. 25 – Agricultural Land Easement Deeds Clarified the difference between • Regulatory Deed Requirements • 7 CFR 1468. 25(d)(1 -9) • Must be addressed by all entities – • Certified entities must address in their own easement terms • Noncertified entities use the Minimum Deed Terms • The specific deed clauses used by noncertified eligible entities to meet the Regulatory Deed Requirements • Attached to the ALE Cooperative Agreement 17

ACEP Final Rule NOTE: 7 CFR 1468. 25(d)(1) – US Right of Enforcement • • It is a regulatory deed requirement to include a Right of Enforcement for NRCS For both non-certified and certified entities, the US Right of Enforcement clause is provided by NRCS and must be used in all deeds • • This is the exception to the statement that certified entities can use their own deed terms to address the regulatory deed requirements US Right of Enforcement clause was modified in FY 2016 • • Provided in the Minimum Deed Terms published 4 -29 -16 Will be updated in the ALE Grant Agreement for Certified Entities 18

ACEP Final Rule Changes to body of the Rule Other Clarifications - ALE • Eligibility must be determined for the year of enrollment • More fully identifies grassland grazing uses and related conservation values (GRP purpose) as a program purpose co-equal with protecting agricultural uses and future viability (FRPP purpose) • ALE plan must be signed by landowner, NRCS, and the entity (original and revisions) 19

ACEP Final Rule • These slides are NOT an exhaustive list of the changes or highlights • Read the Final Rule and the preamble • Use the Summary of Changes document as a resource • State Office will be able to provide additional updates as updated manual, exhibits, and implementation guidance is published. 20

Questions? Slide 21

Non- Discrimination Statement "The U. S. Department of Agriculture (USDA) prohibits discrimination in all of its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, (including gender identity and expression), marital status, familial status, parental status, religion, sexual orientation, political beliefs, genetic information, reprisal, or because all or 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). "