B-318523
August 17, 2009
The Honorable TomHarkin
Chairman
The Honorable Saxby Chambliss
Ranking Minority Member
Committee on Agriculture, Nutrition, and Forestry
United States Senate
The Honorable Collin C.Peterson
Chairman
The Honorable Frank D. Lucas
Ranking Minority Member
Committee on Agriculture
House of Representatives
Subject: Department of Agriculture, Commodity Credit Corporation: Environmental Quality Incentives Program
Pursuant to section801(a)(2)(A) of title 5, United States Code, this is our report on a major rulepromulgated by the Department of Agriculture, Commodity Credit Corporation(CCC), entitled "Environmental Quality Incentives Program" (RIN: 0578-AA45). We received the rule on July 31, 2009. It was published in the Federal Register as an "interim final rule with request forcomment" on January 15, 2009. 74Fed.Reg. 2293.
The interim final rule amends the existing EnvironmentalQuality Incentives Program (EQIP) regulations to incorporate changes asauthorized by amendments in the Food, Conservation, and Energy Act of 2008(2008 Act). Those changes includeextending EQIP's implementation through Fiscal Year 2012, providing paymentsfor conservation practices related to organic production and for conservationpractices related to the transition to organic production, providing anincreased payment rate to historically underserved producers, and establishinga national target to set aside 5 percent of EQIP funds for sociallydisadvantaged farmers or ranchers and an additional 5 percent of EQIP funds forbeginning farmers or ranchers.
TheCongressional Review Act requires major rules to have a 60-day delay in theireffective date following their publication in the Federal Register orreceipt by Congress, whichever is later.5 U.S.C. sect. 801(a)(3)(A). However,notwithstanding the 60-day delay requirement, any rule that an agency for goodcause finds that notice and public procedures are impractical, unnecessary, orcontrary to the public interest is to take effect when the promulgating agencyso determines. 5 U.S.C.sect.808(2). Section 2904(c) of the2008 Act directs CCC to make this finding.Accordingly, CCC found good cause to forego the usual 60-daydelay in effective date of a major rule and make the rule effective as of January15, 2009, in order to meet the congressional intent to have conservationprograms in effect as soon as possible. Therefore, the requirement to have a 60-daydelay does not apply to this rule.
Enclosed is our assessment of the CCC's compliance withthe procedural steps required by section 801(a)(1)(B)(i) through (iv) of title5 with respect to the rule. Our review ofthe procedural steps taken indicates that CCC complied with the applicablerequirements.
If you have any questions about this report or wish tocontact GAO officials responsible for the evaluation work relating to thesubject matter of the rule, please contact Shirley A. Jones, Assistant GeneralCounsel, at (202) 512-8156.
signed
Robert J. Cramer
Managing Associate General Counsel
Enclosure
cc: LeslieDeavers
Acting Farm Bill Coordinator
Department of Agriculture
ENCLOSURE
REPORT UNDER 5 U.S.C. sect.801(a)(2)(A) ON A MAJORRULE
ISSUED BY THE
DEPARTMENT OF AGRICULTURE,
COMMODITY CREDIT CORPORATION
ENTITLED
"ENVIRONMENTAL QUALITY INCENTIVES PROGRAM"
(RIN: 0578-AA45)
(i) Cost-benefit analysis
CCC prepared a cost-benefit analysis in conjunction withthis interim final rule. For purposes ofthe analysis, CCC compared the increased EQIP funding against previous levelsof EQIP funding. CCC stated that theexpanded funding will result in an estimated $10.4 in benefits over the periodof FY 2007 to FY 2012, with $0.8 billion attributable to improved animal wastemanagement and $9.6 billion to land treatment.Estimated net benefits for that period were $57 million above totalcosts. Ultimately, CCC determined thatthe interim final rule will provide $18 million in additional net benefits dueto the expansion of EQIP funds in the 2008 Farm Bill.
(ii) Agency actions relevant to the RegulatoryFlexibility Act, 5 U.S.C. sections603-605, 607, and 609
CCC determined that the final rule will not have asignificant environmental impact on small entities.
(iii) Agency actions relevant to sections 202-205 ofthe Unfunded Mandates Reform Act of 1995, 2 U.S.C. sections1532-1535
CCC determined that the interim final rule will not compelthe expenditure of $100 million or more in any one year by any state, local, ortribal governments, or anyone in the private sector.
(iv) Other relevant information or requirements under actsand executive orders
Administrative Procedure Act, 5 U.S.C. sections551 etseq.
TheAdministrative Procedure Act generally requires an agency to issue a notice ofproposed rulemaking and an opportunity for public comment. 5 U.S.C. sect. 553. Section 2904 of the 2008 Act authorizedCCC to promulgate an interim final rule effective upon publication with anopportunity for notice and comment.
Paperwork Reduction Act, 44U.S.C. sections3501-3520
The interim final rule was promulgated without regard tothe Paperwork Reduction Act, as required by section 2904 of the 2008 Act. Therefore, CCC is not reporting recordkeepingor estimated paperwork burden associated with this interim final rule.
Statutory authorization for the rule
The interim final rule was authorized by the Food,Conservation, and Energy Act of 2008, Pub. L. 110-234, which reauthorized andamended the Environmental Quality Incentives Program, codified at 16 U.S.C. sect.3839aa et. seq.
Executive Order No. 12,866 (Regulatory Planning andReview)
The interim final rule was determined to be economicallysignificant, and CCC prepared a cost-benefit analysis as required under theOrder.
Executive Order No. 13,175 (Consultation and Coordinationwith Indian Tribal Governments)
CCC determined that the interim final rule will not have asubstantial direct effect on tribes, since the regulatory provisions are requiredby statute and do not impose unreimbursed compliance costs or preempt triballaw. Therefore, CCC determined thatconsultation with tribal governments was not required.
