Explanation of Agency Authority
Section 93.59 (4), Stats. directs that the Department of Agriculture, Trade and Consumer Protection, hereafter “Department”, is explicitly authorized to define “legal entity” for the purpose of administering the Producer-Led Watershed Protection Grants Program, to promulgate rules to specify the process for applying for a producer-led watershed protection grant and to specify activities that may be conducted using a producer-led watershed protection grant awarded under s. 93.59, Stats. Section 92.14 (16) (g), Stats. directs the Department to promulgate rules to implement the Commercial Nitrogen Optimization Pilot Program. Section 92.14 (17), Stats. directs that the Department is explicitly authorized to promulgate rules to determine eligibility for which crop insurance premium rebates are provided for planting cover crops, establish procedures for verifying that a cover crop is planted on acres for which a crop insurance premium rebate is provided, determine the maximum amount of acres for which an applicant may receive funding in a year, and establish the application and award process, including the application deadline and grant award schedule. Related Statutes and Rules
There are no other directly related rules or statutes, other than those cited above.
Plain Language Analysis
Producer-Led Watershed Protection Grants Program
The existing provisions in ch. ATCP 52 establish the Producer-Led Watershed Protection Grants Program which is designed to encourage producers to develop and use innovative approaches and conservation practices that reduce nonpoint source pollution within their watershed. The current rule identifies the purposes of the grants, what expenses the grants may and may not be used for, the grant proposals process, how the Department contracts with legal entities, and how the Department distributes grant funds. This rule will have no negative impact on businesses since it only applies to those businesses that voluntarily seek and are awarded grant funds. Grant funds should positively impact businesses that provide goods and services used in pollution abatement activities under this rule. This rule does all of the following:
•• Updates language to simplify, fix errors, and reflect current practice. •• Updates definitions to specify legal entities include certain nonprofit conservation organizations. •• Clarifies eligibility for and eligible use of grant funds which includes removal of the $25 per hour maximum cap for consulting services from rule. •• Updates the title and structure of ATCP 52 to create subchapters which incorporate the two new programs mentioned below. Commercial Nitrogen Optimization Pilot Program
_Hlk147737600The Commercial Nitrogen Optimization Pilot Program is designed to encourage agricultural producers to develop innovative approaches to optimize the application of commercial nitrogen. Section 92.14 (16), Stats., outlines the program: •• Project must span at least two growing seasons. •• Awarded producers will collaborate with a University of Wisconsin System (UWS) institution for project monitoring. •• The UWS institution shall monitor the grant project on-site, and no more than 20% of the grant award may be distributed to the UWS collaborator. •• Grant awards will not exceed $50,000. •• Priority will be given to producers in different parts of the state and projects in areas that have different soil types or geologic characteristics. •• Priority will be given to innovative projects not currently funded through state or federal programs. •• Priority will be given to longer-term projects. Grant Purposes
Under this rule, the Department may award grants for projects that focus on commercial nitrogen optimization through:
•• Reduction of nitrates in groundwater and surface water. •• Collection of data to ascertain the balance of providing the appropriate amount of commercial nitrogen to a crop at the right time while reducing nitrogen loss to the atmosphere, groundwater or surface water. •• Installation of conservation practices to assist with commercial nitrogen optimization coupled with monitoring runoff and testing soils. •• Optimization of commercial nitrogen use through a variety of agronomic methods and techniques. Use of Grant Funds
Under this rule, grant funds may be used to reimburse expenses that are determined by the Department to be a reasonable and necessary part of the grant project. Applicants will not be required to provide any match for grant resources. Eligible expenses include, but are not limited to:
•• Personnel for coordinator role, including expense for salaries and wages, contract and consulting services, and travel. •• Incentive or stipend payments for landowners who participate in a full-scale commercial nitrogen optimization field study. •• Water quality monitoring and soil testing in collaboration with a UWS institution. •• Agronomy services, including custom application and nutrient management planning. •• Equipment rental for project implementation. •• Equipment purchases needed for project implementation. Equipment purchases over $2,500 must receive pre-approval from the Department. Grant funds may not reimburse any of the following expenses:
•• Real estate purchases. •• Repayment of loans or mortgages. •• Rent or contract payments for time periods extending beyond the term of the grant contract. •• Equipment purchases that exceed $2,500, without Department pre-approval. •• Administrative or overhead costs that are not direct costs of the grant project. Grant Proposals
Under this rule, the Department must issue at least one request for grant proposals in each state fiscal biennium. The Department may issue more frequent requests. The request for proposals must describe the required form and content of the grant proposal and must specify a deadline for submitting grant proposals. Applicants must submit grant proposals to the Department in the manner prescribed within the Department’s request for proposals.
Grant Awards
Under this rule, the Department must evaluate grant proposals and notify grants applicants of their award status within 60 days after closing of the grant proposal deadline. The Department must clearly identify each award recipient, the amount of the award, the purposes for which the award is given, and what is to be included in the annual and project reports. The Department may consider the following criteria when evaluating grant proposals and making grant awards:
•• Direct impact of the project on commercial nitrogen optimization. •• Location of the project, including geography and geology, to assure awards are distributed across the state. •• The length of the project. •• The innovative approaches to commercial nitrogen optimization being studied in the project. •• Whether the proposed project meets the standards prescribed in this rule. •• The viability of the proposed project. •• The management and technical qualifications of the grant recipient. •• The ability of the UWS institution to collaborate with the grant recipient. •• The adequacy of the project plan and budget. •• Whether the grant proposal and budget adequately identify the nature of project expenses to be reimbursed under the proposed grant. Grant Contracts
Under this rule, the Department must enter into a contract with a legal entity before distributing funds. The contract must spell out grant terms and conditions, including performance requirements, reporting requirements, and payment terms. Grant recipients will be required to file an annual report with the Department and a final project report.
Crop Insurance Premium Rebates for Planting Cover Crops Program
The Crop Insurance Premium Rebates for Planting Cover Crops Program is offered for acres of cover crops installed outside of state and federal program incentives (e.g., Environmental Quality Incentives Program, Conservation Stewardship Program, and state cost-share). Interested participants may enroll acres planted to cover crops in the fall which will be planted to an insurable crop in the following growing season. Eligible applicants will receive a $5 per-acre insurance premium discount on the following year's crop insurance invoice for every acre of cover crop enrolled and verified in the program. Applications will be due to the Department in January and must be completed in full for eligibility.
Application requirements include applicant contact information, crop insurance policy number(s), acres of cover crops seeded to each field, farm, tract, common land unit (CLU)/Field #, and verification of fields/acres seeded to cover crops. The Department may not provide a rebate for the planting of a cover crop on an acre for which funding for planting a cover crop is provided from a federal or state grant or incentive program, including from any of the following:
3. A producer-led watershed protection grant under s. 93.59, Stats. 4. The Soil and Water Resource Management Program s. 92.14 (3), Stats. 5. A lake management planning grant under s. 281.68, Stats.
