Notice of Funds Availability (NOFA) for the Organic and Transitional Education and Certification Program (OTECP), 61113-61116 [2021-24384]

Agencies

• DEPARTMENT OF AGRICULTURE
• Farm Service Agency

[Federal Register Volume 86, Number 212 (Friday, November 5, 2021)]
[Notices]
[Pages 61113-61116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24384]


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Notices
                                                Federal Register
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Federal Register / Vol. 86, No. 212 / Friday, November 5, 2021 / 
Notices

[[Page 61113]]



DEPARTMENT OF AGRICULTURE

Farm Service Agency

[Docket ID FSA-2021-0010]


Notice of Funds Availability (NOFA) for the Organic and 
Transitional Education and Certification Program (OTECP)

AGENCY: Farm Service Agency, Department of Agriculture (USDA).

ACTION: Notification of funds availability.

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SUMMARY: The Farm Service Agency (FSA) is announcing the availability 
of $20 million through the new Organic and Transitional Education and 
Certification Program (OTECP) for certified operations and transitional 
operations that incurred eligible expenses in fiscal years (FY) 2020, 
2021, and 2022. Producers and handlers incur significant costs to 
obtain or renew USDA organic certification each year, and the economic 
challenges due to the COVID-19 pandemic have made obtaining and 
renewing USDA organic certification financially challenging for many 
operations. In this document, FSA is providing the eligibility 
requirements, application process, and payment calculation for OTECP.

DATES: Funding availability: Implementation will begin November 8, 
2021.
    Comment date: We will consider comments on the Paperwork Reduction 
Act that we receive by: January 4, 2022.

ADDRESSES: We invite you to submit comments on the information 
collection request. You may submit comments by the following methods, 
although FSA prefers that you submit comments electronically through 
the Federal eRulemaking Portal:
     Federal eRulemaking Portal: Go to: www.regulations.gov and 
search for Docket ID FSA-2021-0010. Follow the online instructions for 
submitting comments.
     Mail, Hand-Delivery, or Courier: Director, Safety Net 
Division, FSA, USDA, 1400 Independence Avenue SW, Stop 0510, 
Washington, DC 20250- 0522. In your comment, specify the docket ID FSA-
2021-0010.
    You may also send comments to the Desk Officer for Agriculture, 
Office of Information and Regulatory Affairs, Office of Management and 
Budget, Washington, DC 20503.
    All comments received will be posted and publicly available on 
https://www.regulations.gov. Copies of the information collection may 
be requested by contacting the above address.

FOR FURTHER INFORMATION CONTACT: Kimberly Graham, telephone: (202) 720-
7641; or by email: [email protected]. Persons with disabilities 
who require alternative means for communication should contact the USDA 
Target Center at (202) 720-2600 (voice).

SUPPLEMENTARY INFORMATION:

Background

    Producers and handlers of agricultural products that are organic 
operations are those that have obtained USDA organic certification 
under the USDA Agricultural Marketing Service (AMS) National Organic 
Program (NOP) established under the Organic Foods Production Act of 
1990 (7 U.S.C. 6501-6524) and the USDA organic regulations in 7 CFR 
part 205. Organic operations are also required to receive continuation 
of certification to the USDA organic regulations. Farming operations 
(crop and livestock producers) that are transitioning to organic 
production methods prior to obtaining USDA organic certification are 
referred to in this document as transitional operations.
    As part of the assistance that USDA is providing through the 
Coronavirus Aid, Relief, and Economic Security Act (CARES Act; Division 
B, Title I, Pub. L. 116-136), FSA is announcing the availability of $20 
million through the new OTECP for certified operations and transitional 
operations that incurred eligible expenses in FY 2020, 2021, and 2022. 
Producers and handlers incur significant costs to obtain or renew USDA 
organic certification each year, and the economic challenges due to the 
COVID-19 pandemic have made obtaining and renewing USDA organic 
certification financially challenging for many operations. In this 
document, FSA is providing the eligibility requirements, application 
process, and payment calculation for OTECP.
    OTECP will provide assistance to certified operations, as well as 
operations that are transitioning to organic production methods in 
anticipation of obtaining USDA organic certification. During the COVID-
19 pandemic, these operations faced challenges due to loss of markets, 
increased costs, and labor shortages, in addition to costs related to 
obtaining or renewing their USDA organic certification, which producers 
and handlers of conventionally produced commodities do not incur. 
Transitional operations also faced the financial challenge of 
implementing practices required to obtain USDA organic certification 
without being able to obtain the premium prices associated with 
certified organic commodities. Further, for organic operations 
requesting an addition or update to their existing certification, the 
new land or facility must quickly move through the certification 
process, which typically includes an on-site inspection. Certified 
organic products must also meet very specific packaging and labeling 
requirements. Overall, this leads to reduced flexibility and unique 
supply chain challenges for organic businesses and farms when on-site 
inspections are not possible, as has often been the case during the 
COVID-19 pandemic.
    Certified operations and transitional operations may apply for 
OTECP for eligible expenses paid during FY 2020, 2021, and 2022. OTECP 
covers 25 percent of a certified operation's eligible certification 
costs, up to $250 per certification category (crop, livestock, wild 
crop, handling, and State Organic Program fee).\1\ It also covers 75 
percent

[[Page 61114]]

of a transitional operation's eligible costs, up to $750, for each 
year. For both certified operations and transitional operations, OTECP 
covers 75 percent, up to $200, per year for registration fees for 
educational events that include content related to organic production 
and handling in order to assist operations in increasing their 
knowledge of production and marketing practices that can improve their 
operations, increase resilience, and expand available marketing 
opportunities. For both certified operations and transitional 
operations, OTECP also covers 75 percent, up to $100, of the cost of 
soil testing required under the NOP to document micronutrient 
deficiency.
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    \1\ The USDA organic regulations recognize four separate 
categories that must be individually inspected for USDA organic 
certification: crop, livestock, wild crop, and handling (that is, 
processing). For the purpose of OTECP, State organic program fees 
are recognized as an additional category; these fees may be required 
by States that have established a State organic program according to 
7 CFR 205.620 through 205.622, and are in addition to the costs of 
USDA organic certification under the four categories of USDA organic 
certification. A single operation may be certified under multiple 
categories. For example, a certified organic vegetable farm that 
also has certified organic chickens and produces certified organic 
jams would be required to be certified for three categories: crop, 
livestock, and handling.
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Definitions

    For this NOFA, the following definitions apply:
    Certified operation means a crop or livestock production, wild crop 
harvesting, or handling operation, or portion of such operation, that 
is certified by an accredited certifying agent as utilizing a system of 
organic production or handling as described by the Organic Foods 
Production Act of 1990, as amended (7 U.S.C. 6501-6524) and the 
regulations in 7 CFR part 205.
    Educational event means an event, such as a conference, training 
program, or workshop, that provides educational content addressing 
topics related to organic production and handling, such as farming and 
production methods, NOP requirements, and marketing. It includes both 
in-person and remote events.
    Soil testing means soil tests to document micronutrient deficiency 
as required by 7 CFR 205.601(j)(7).
    Transitional operation means a crop or livestock production 
operation that is transitioning to organic production in anticipation 
of obtaining USDA organic certification, and that has an organic system 
plan or written documentation from a certifying agent accredited by the 
National Organic Program.
    USDA organic certification means a determination made by a 
certifying agent that a production or handling operation is in 
compliance with the Organic Foods Production Act of 1990 (7 U.S.C. 
6501-6524) and the regulations in 7 CFR part 205, which is documented 
by a certificate of organic operation.
    The following definitions in 7 CFR 205.2 also apply to this NOFA: 
``certification or certified,'' ``certifying agent,'' ``crop,'' 
``handler,'' ``inspection,'' ``inspector,'' ``labeling,'' 
``livestock,'' ``National Organic Program (NOP),'' ``organic,'' 
``organic production,'' ``organic system plan,'' ``processing,'' 
``producer,'' ``State organic program,'' and ``wild crop.''

Eligible Applicants

    To be eligible for OTECP, an applicant must have paid eligible 
costs during FY 2020, 2021, or 2022 and, at the time of application, be 
either a certified operation or a transitional operation.
    Operations with suspended, revoked, denied, or withdrawn USDA 
organic certifications at the time of application are ineligible for 
OTECP. OTECP is open to certified operations and transitional 
operations located in the 50 United States, the District of Columbia, 
the Commonwealth of Puerto Rico, Guam, American Samoa, the U.S. Virgin 
Islands, and the Commonwealth of the Northern Mariana Islands.

Eligible and Ineligible Expenses

    OTECP provides assistance for eligible expenses paid by the 
applicant during:
     FY 2020 (October 1, 2019, through September 30, 2020),
     FY 2021 (October 1, 2020, through September 30, 2021), and
     FY 2022 (October 2, 2021 through September 30, 2022).
    Expenses that have been incurred by the applicant, but have not 
been paid, are not eligible for assistance through OTECP.
    Certified operations may receive assistance for the following costs 
for obtaining or renewing their USDA organic certification for the 
crop, livestock, wild crop, handling, and State organic program 
categories:
     Application fees;
     Inspection fees, including travel costs and per diem for 
organic inspectors;
     USDA organic certification costs, including certification 
fees necessary to access international markets with which AMS has 
equivalency agreements or arrangements;
     State organic program fees;
     User fees or certifier sales assessments; and
     Postage.
    For transitional crop and livestock operations, eligible expenses 
include fees charged by a certifying agent or consultant for pre-
certification inspections and development of an organic system plan. 
Operations that incur eligible costs prior to USDA organic 
certification but became certified prior to the end of the fiscal year 
may not receive cost share for the same expense as both a certified and 
a transitional operation.
    For both certified operations and transitional operations, soil 
testing and educational event registration fees are also eligible 
expenses.
    The following expenses are not eligible for cost share under OTECP:
     Inspections due to violations of USDA organic regulations, 
or State organic program requirements;
     Costs related to non-USDA organic certifications;
     Costs related to any other labeling program;
     Materials, supplies, & equipment;
     Late fees;
     Membership fees;
     Consultant fees, except as described above for 
transitional operations;
     Costs related to educational event attendance other than 
registration fees; and
     Costs for tests other than soil testing as defined in this 
NOFA.

Application Process

    The application period for 2020 and 2021 begins on November 8, 
2021, and ends on January 7, 2022. The application period for 2022 will 
be announced next year. Applicants may apply for OTECP at any USDA 
Service Center.\2\ Each applicant must submit a complete application in 
person or by mail, email, facsimile, or other methods announced by FSA. 
A complete application includes the following documentation:
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    \2\ USDA Service Center locations and contact information are 
available at https://offices.sc.egov.usda.gov/locator/app.
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     Form FSA-883, Organic and Transitional Education and 
Certification Program (OTECP), which includes a certification of the 
applicant's status as a certified operation or transitional operation 
and their eligible expenses;
     AD-2047, Customer Data Worksheet, if not already on file 
with FSA; and
     SF-3881, ACH Vendor/Miscellaneous Payment Enrollment Form, 
if not already on file with FSA.
    Applicants may be required to provide additional documentation to 
FSA, if necessary, to verify eligibility or issue payment. Eligible 
expenses are based on applicant certification and are subject to spot 
check. In the event that an application must be verified, certified 
operations that previously applied for the Organic Certification Cost 
Share Program (OCCSP) through an FSA local office and provided 
documentation of eligible expenses are not required to resubmit that 
documentation to FSA; however, those applicants must submit 
documentation of any additional eligible expenses included on their 
OTECP application that were not previously included in

[[Page 61115]]

their OCCSP application. Certified operations that previously applied 
for OCCSP through a participating State Agency must submit the required 
documentation of their eligible expenses if requested by FSA.

Payments

    OTECP payments are calculated separately for each category of 
eligible costs based on the percentage and maximum payment amounts in 
the following table.

------------------------------------------------------------------------
                                                         Payment amount
                                 Category of eligible      of eligible
      Eligible applicants              expenses             costs per
                                                            category
------------------------------------------------------------------------
Certified operations..........  Organic certification-- 25 percent, up
                                 crops.                  to $250.
                                Organic certification-- 25 percent, up
                                 livestock.              to $250.
                                Organic certification-- 25 percent, up
                                 wild crop.              to $250.
                                Organic certification-- 25 percent, up
                                 handling.               to $250.
                                State Organic Program   25 percent, up
                                 fees.                   to $250.
Transitional operations.......  Eligible transitional   75 percent, up
                                 expenses.               to $750.
Certified operations and        Educational event       75 percent, up
 transitional operations.        registration fees.      to $200.
                                Soil testing..........  75 percent, up
                                                         to $100.
------------------------------------------------------------------------

    Payments will be equal to the applicant's eligible expenses 
multiplied by the percentage for the applicable category in the table 
above, not to exceed the maximum payment amount for the category. An 
applicant must report any previous cost share assistance, excluding 
OCCSP payments, received for the expenses included on their 
application. For each crop, livestock, wild crop, handling, and State 
organic program fees category, the OTECP payment plus the additional 
cost share assistance, excluding OCCSP, cannot exceed the portion of 
the costs not covered by OCCSP.\3\ For transitional expenses, soil 
testing, and educational event registration fees, the amount of the 
applicant's OTECP payment plus the reported additional cost share 
assistance cannot exceed 100 percent of the total amount of eligible 
expenses, as determined by FSA.
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    \3\ OCCSP provides up to 75 percent of the costs incurred by a 
certified operation in obtaining USDA organic certification, up to a 
maximum of $750 (7 U.S.C. 6523), per category for crop, livestock, 
wild crop, handling, and State organic program fees. On August 10, 
2020, FSA announced that the maximum OCCSP payment for FY 2020 
through FY 2023 would be 50 percent of the certified organic 
operation's eligible costs, up to a maximum of $500 per 
certification category, due to the limited amount of funding 
available (85 FR 48149-48150). OTECP provides assistance for the 
portion of eligible USDA organic certification costs that is not 
covered by OCCSP. Prior participation in OCCSP is not required for 
certified operations to be eligible for OTECP. Certified operations 
that did not apply for OCCSP prior to the applicable program 
deadline may contact their local FSA office for information on how 
to submit a late-filed OCCSP application.
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    FSA will issue payments after the end of the application period for 
each fiscal year. If calculated payments exceed the amount of available 
funding, payments will be prorated.

Other Provisions

    Participants are required to retain documentation in support of 
their application for 3 years after the date of approval. Participants 
receiving OTECP payments or any other person who furnishes such 
information to USDA must permit authorized representatives of USDA or 
the Government Accountability Office, during regular business hours, to 
enter the operation and to inspect, examine, and to allow 
representatives to make copies of books, records, or other items for 
the purpose of confirming the accuracy of the information provided by 
the participant.
    If an applicant files an application with an FSA county office 
after the application deadline, the application will be considered a 
request to waive the deadline. The FSA Deputy Administrator for Farm 
Programs (Deputy Administrator) has the discretion and authority to 
consider the application and waive or modify application deadlines and 
other requirements or OTECP provisions not specified in law, in cases 
where the Deputy Administrator determines it is equitable to do so and 
where the Deputy Administrator finds that the lateness or failure to 
meet such other requirements or OTECP provisions do not adversely 
affect the operation of OTECP. Although applicants have a right to a 
decision on whether they filed applications by the deadline or not, 
applicants have no right to a decision in response to a request to 
waive or modify deadlines or program provisions. The Deputy 
Administrator's refusal to exercise discretion to consider the request 
will not be considered an adverse decision and is, by itself, not 
appealable.
    Equitable relief and finality provisions specified in 7 CFR part 
718, subpart D, apply to determinations under OTECP. Persons and legal 
entities who file an application with FSA have the right to an 
administrative review of any FSA adverse decision with respect to the 
application under the appeals procedures at 7 CFR parts 780 and 11. The 
determination of matters of general applicability that are not in 
response to, or result from, an individual set of facts in an 
individual participant's application for payment are not matters that 
can be appealed. Such matters of general applicability include, but are 
not limited to, the determination of eligible categories of expenses 
and payment rates.
    Any payment under OTECP will be made without regard to questions of 
title under State law and without regard to any claim or lien. The 
regulations governing offsets in 7 CFR part 3 do not apply to payments 
made under this part.
    In either applying for or participating in OTECP, or both, the 
applicant is subject to laws against perjury and any penalties and 
prosecution resulting therefrom, with such laws including but not 
limited to 18 U.S.C. 1621.
    For the purposes of the effect of a lien on eligibility for Federal 
grants, loans, or programs (28 U.S.C. 3201(e)), USDA waives the 
restriction on receipt of funds under OTECP, but only as to 
beneficiaries who, as a condition of the waiver, agree to apply the 
OTECP payments to reduce the amount of the judgment lien.
    In addition to any other Federal laws that apply to OTECP, the 
following laws apply: 18 U.S.C. 286, 287, 371, and 1001.

Paperwork Reduction Act Requirements

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), FSA is requesting comments from interested individuals and 
organizations on the information collection request associated with 
OTECP. The OTECP information collection request is for the producer and 
handler to provide FSA the information of their status of either a 
certified operation or transitional operation and their eligible 
expenses to qualify for the payments. FSA submitted

[[Page 61116]]

the emergency approval request that covers OTECP information collection 
activities to OMB for a 6-month approval. After the 60-day comment 
period ends, the information collection request will be submitted to 
OMB for a 3-year OMB approval.
    Title: Organic and Transitional Education and Certification Program 
(OTECP).
    OMB Control Number: 0560-New.
    Type of Request: New Collection.
    Abstract: The information collection request is required for the 
producers and handlers to provide their status as either a certified 
operation or transitional operation and their eligible expenses to get 
the OTECP payments. The forms for the producers and handlers to 
complete for the OTECP payments and the payment calculations are 
described in this document.
    For the following estimated total annual burden on respondents, the 
formula used to calculate the total burden hour is the estimated 
average time per response multiplied by the estimated total annual 
responses. Public reporting burden for this information collection is 
estimated to include the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed and 
completing and reviewing the collections of information.
    Type of Respondents: Producer and handler.
    Estimated Annual Number or Respondents: 13,250.
    Estimated Number of Responses per Respondent: 1.69.
    Estimated Total Annual Responses: 22,450.
    Estimated Average Time per Response: 1 hour.
    Estimated Total Annual Burden on Respondents: 22,450.
    FSA is requesting comments on all aspects of this information 
collection to help us to:
    (1) Evaluate whether the collection of information is necessary for 
the proper performance of the functions of FSA, including whether the 
information will have practical utility;
    (2) Evaluate the accuracy of the FSA's estimate of burden including 
the validity of the methodology and assumptions used;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    All comments received in response to this document, including names 
and addresses when provided, will be a matter of public record. 
Comments will be summarized and included in the submission for Office 
of Management and Budget approval.

Environmental Review

    The environmental impacts of this final rule have been considered 
in a manner consistent with the provisions of the National 
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations 
of the Council on Environmental Quality (40 CFR parts 1500-1508), and 
the FSA regulations for compliance with NEPA (7 CFR part 799).
    The purpose of OTECP is to provide assistance to certified 
operations and transitional operations for the costs of obtaining and 
renewing USDA organic certification, and for eligible precertification 
and education costs, as well as soil testing. The Categorical 
Exclusions in 7 CFR 799.31 apply, specifically 7 CFR 799.31(b)(6)(iii) 
(that is, financial assistance to supplement income. . .). No 
Extraordinary Circumstances (7 CFR 799.33) exist. FSA has determined 
that this final rule does not constitute a major Federal action that 
would significantly affect the quality of the human environment, 
individually or cumulatively. Therefore, FSA will not prepare an 
environmental assessment or environmental impact statement for this 
regulatory action.

Catalog of Federal Domestic Assistance

    The title and number of the Federal assistance program in the 
Catalog of Federal Domestic Assistance to which this NOFA applies is 
10.139, Organic and Transitional Education and Certification Program 
(OTECP).

USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and USDA civil rights 
regulations and policies, USDA, its Agencies, offices, and employees, 
and institutions participating in or administering USDA programs are 
prohibited from discriminating based on race, color, national origin, 
religion, sex, gender identity (including gender expression), sexual 
orientation, disability, age, marital status, family or parental 
status, income derived from a public assistance program, political 
beliefs, or reprisal or retaliation for prior civil rights activity, in 
any program or activity conducted or funded by USDA (not all bases 
apply to all programs). Remedies and complaint filing deadlines vary by 
program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (for example, braille, large 
print, audiotape, American Sign Language, etc.) should contact the 
responsible Agency or USDA TARGET Center at (202) 720-2600 (voice and 
TTY) or contact USDA through the Federal Relay Service at (800) 877-
8339. Additionally, program information may be made available in 
languages other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and 
at any USDA office or write a letter addressed to USDA and provide in 
the letter all the information requested in the form. To request a copy 
of the complaint form, call (866) 632-9992. Submit your completed form 
or letter to USDA by mail to: U.S. Department of Agriculture, Office of 
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410 or email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Zach Ducheneaux,
Administrator, Farm Service Agency.
[FR Doc. 2021-24384 Filed 11-4-21; 8:45 am]
BILLING CODE 3410-05-P