Explanation. Recently published 440-CPM-531 subparts K and L provide guidance for the implementation of RCPP entity-held easements under the 2018 Farm Bill. Specifically, 440-CPM-531 subpart K covers the following:
· Overview of RCPP entity-held easements, including different transaction types
· Processing applications for RCPP entity-held easements
· Landowner, entity, and land eligibility
· Application ranking and selection
· Federal cost share limitations
· RCPP program agreements and RCPP parcel contracts
440-CPM-531 subpart L covers the following:
· Valuation of RCPP entity-held easements
· RCPP entity-held easement deed requirements and deed reviews
· RCPP easement plan requirements
· Easement closing and payment procedures
· Easement monitoring, enforcement, and administration actions
As appropriate, 440-CPM-531 subparts K and L reference NRCS easement policy in 440-CPM-parts 527 (Easement Common Provisions manual) and 528 (Agricultural Conservation Easement Program manual). References to 440-CPM-part 527 includes references to 440-CPM-527 subparts H and I, both of which are currently reserved and awaiting publication. While it is anticipated that 440-CPM-527 subparts H and I will be published very soon, the following guidance will allow states to implement RCPP entity-held easements in the interim.
440-CPM-527 subpart H will provide guidance regarding environmental due diligence, access requirements, and title due diligence and review. Until the publication of 440-CPM-527 subpart H, States must supplement published guidance with guidance in 440-CPM-528 as follows:
· Title requirements for the acquisition of an Agricultural Conservation Easement Program - Agricultural Land Easement (ACEP-ALE) set forth in 440-CPM-528.62, including the review of ownership documents, review of title and final title policy requirements, must be followed for all RCPP entity-held easement acquisitions.
· Environmental due diligence requirements, including on-site inspections and the limited phase-1 environmental site assessment, must be completed in accordance with 440-CPM-528-34B(5) for all RCPP entity-held easement acquisitions using the forms and worksheets published in 440-CPM-528.
· The following forms and worksheets referenced in 440-CPM-528 may be used for RCPP entity held easements until updated forms and policy are published in 440-CPM-527 subpart H.
o 440-CPM-528.203A “Landowner Disclosure Worksheet”
o 440-CPM-528.204A “Hazardous Materials Field Inspection Checklist”
o 440-CPM-528.204B “Hazardous Materials Landowner Interview”
o Form NRCS-LTP-27 “Preliminary Certificate of Inspection and Possession”
o Form NRCS-LTP-23 “Certificate of Use and Consent”
o 440-CPM-528.207A “NRCS closing agent requirements”
440-CPM-527 subpart I will provide guidance regarding entering into program agreements and parcel contracts for RCPP entity-held easements, modifying parcel contracts, and payment and closing procedures for RCPP entity-held easements. Until the publication of 440-CPM-527 subpart I, States must supplement published guidance as follows:
· National Bulletin (NB) 300-21-49 provides guidance on accepting applications and entering into program agreements for RCPP entity-held easements. To the extent that 440-CPM-531 subpart K does not provide specific guidance regarding accepting applications and entering into program agreements, states should continue to follow the guidance in NB 300-21-49.
· National Instruction (NI) 300-306 provides guidance on ACEP-ALE program agreements and parcel contracts. To the extent that 440-CPM-531-subpart K and NB 300-21-49 do not provide specific guidance regarding entering into parcel contracts, modifying parcel contracts, or payment and closing procedures for RCPP entity-held easements, states should apply the ACEP-ALE guidance in NI 300-306 to RCPP entity-held easements, replacing the reference ACEP-ALE program agreement forms with the published RCPP program agreement and parcel contract forms.
· EPD approval must be obtained prior to entering into new program agreements for RCPP entity-held easement and prior to modifying existing program agreements. States may request this EPD approval by emailing the required documentation to NRCS.Program.Agreements@usda.gov.
States should contact the Easement Policy Branch at EasementSupport@usda.gov to the extent that questions arise in supplementing RCPP entity-held easement policy with ACEP-ALE policy as described in this bulletin.
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