National Bulletin:	300-23-7	Date:	November 18, 2022
Subject:	LTP – Regional Conservation Partnership Program (RCPP) Land Management and Rental (LMR) Producer Contract Fiscal Year (FY) 2023 Cost Lists Guidance

Purpose. This national bulletin provides required processes for establishment of cost lists for each Fiscal Year (FY) 2023 2018 Farm Bill RCPP (RCPP18) LMR ranking pool.

Expiration Date. September 30, 2023

Background. RCPP, as amended by the Agriculture Improvement Act of 2018 (2018 Farm Bill), authorizes NRCS to enter into program contracts directly with producers. LMR program contract payments are based on NRCS-approved cost lists.

RCPP LMR producer contract guidance is included in:

• Title 440, Conservation Programs Manual (CPM), Part 530, Subpart S, “RCPP LMR Producer Contracts” (440-CPM-530-S);
• National Bulletin (NB) 300-22-34, “Guidance for RCPP LMR Producer Contract Development and Obligation;” and
• NB 300-22-14, “Guidance for RCPP LMR Producer Contract Payment and Modification.”

Title 300, Payment Schedule Handbook, Part 600, “Payment Schedules,” provides guidance on processes used to develop payment scenarios and costs included in each State’s nationally developed, State-specific RCPP 2018 LMR payment schedule.

Note: Requirements in this NB apply to all LMR ranking pools, unless LMR funds are to be used for restoration of US held easements in an LMR ranking pool created to support restoration of US held easements. US held easement restoration only guidance will be published separately.

Explanation. State conservationists and directors of the Pacific Islands and Caribbean Areas must establish cost lists to support FY 2023 LMR contracts. For each LMR ranking pool in an RCPP18 project, State must select one of the following options:

• Utilize Payment Schedule Application (PSA) Tool to develop a project specific cost list for each RCPP project, based on each affected state’s typical costs, the programmatic partnership agreement and program requirements, or
• In Multi-State Projects (Only): if consistent with active PPA, project can utilize a common cost list developed in PSA based on a single state’s typical cost data for all states.

General Requirements.

• LMR payments are capped at 100% of typical activity and scenario costs.
• In order to minimize improper payment potential, every RCPP18 project with FY 2023 sign-up activity will need to re-visit prior year cost list and select one of the two options above; re-use of a prior year cost list is not allowed.
• Lists shall be named using the following convention: FY 2023 RCPP18 xxxx (yyyy etc.) (replacing xxxx, yyyy with applicable 4-digit RCPP project identification numbers).
• Where individual project PPAs do not preclude it, States may elect to use the same PSA generated cost list for more than one RCPP18 project. However, if a list is to be used in multiple projects, its name must include each of the 4-digit project ids for which it will be used, and project numbers should be organized in increasing numeric order e.g. FY 2023 RCPP18 LMR 1234 1237 2943 (could be used for those three projects ONLY).
• LMR cost lists must follow agency payment schedule activity/scenario guidance, specifically:

• If “interim” activities or new scenarios are required to support novel project activities, they must be evaluated and approved by NRCS per processes in Title 450, General Manual (GM), Part 401, Subpart B, “Conservation Practice Standards and Supporting Documents,” (450-GM-401-B) and Title 300, Payment Schedule Handbook, Part 600, “Payment Schedules.” These requirements generally mean that additions to the nationally developed State specific costs lists, and project specific cost lists must be added during regular annual payment schedule development deadlines.

• However, flexibility provided by National Bulletin 450-23-1 TCH Authorization of Geographically Specific Payment Scenarios created in Conservation Desktop are potentially available in RCPP18 LMR cost lists, where consistent with active Programmatic Partnership Agreement (PPA).

If State determines that project will require one or more of the out-of-cycle changes supported by NB 450-23-1, such changes must be processed per both NB 450-23-1 and the workflow shown in Attachment 1 to this NB:

1) Workflow requires State to establish project cost list per processes in this NB lists without any out-of-cycle related edits prior to making any out of cycle edits per NB 450-23-1.
2) Out of cycle edits are allowable per processes in NB 450-23-1 AFTER project list has been established and NHQ approval (as applicable) has been received.

Contact. Direct RCPP policy questions about this bulletin to the FAPD SharePoint. Direct PSA questions to the payment schedule team.

/s/

KAREN A. WOODRICH
Acting Deputy Chief for Programs