WSP00613

• File Number: 8272.100.60
• Description: Colorado River Basin Salinity Control Forum
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 10/1/1990
• Author: CRBSCF
• Title: Supplemental Report on the 1990 Review - Water Quality Standards for Salinity - Colorado River System
• Water Supply Pro - Doc Type: Report/Study

4286fi

Federal Register I VoL 55. No. 206 I Wednesday, October 24. 1990 I Notice$

DEPARTMENT OF AGRICULTURE
W
, <.0 Office of the Secretary

~ ColoradO River Basin Salinity Control
-.JI Program; Determination of Primary
Purpose of Program Payments for
Consideration as Excludable From
Income

AGENCY: Office of the Secretary. USDA.
ACTION: Nolice of determination.

SUMMARY: The Secretary of Agriculture
has determined that all cost-share
payments under the Colorado River
Basin Salinity Control Program are
made primarily for the purposes of soil
and water conservation. protecting or
.r:estoring the environment. or providing
a habitat for wildlife. This determination
is in accordance with section 126 of the
Internal Revenue Code of 1954, as
am_nded. This determination permits
reci_ients of these payments to exclude
them from gross income to the extent
allow.d by the Internal Revenue
Servict!.
FOR FURTHER INFORMATION CONTACT:
DirectOl', Conservation and
Environmental Protection Division.
Agricultural Stabilization and
Consen:alion Service. USDA. room 4714.
South Agriculture Building. 14th and
Independence Avenue SW"
Washington. DC 20250. [202) 447-6221;
or Director, Land Treatment Program
Divsion. Soil Conservation Service,
USDA, P.O, Box 2890. Washington, DC
20013 [phone].
SUPPLEMENTARY INFORMATION: Section
126 of the Internal Revenue Code of
1954. as amended by the Revenue Act of
1978 and the Technical Corrections Act
of 1979,26 U.S.C 126. provides that
certain payments made to persons under
certain small watershed programs may
.l,e excluded from the recipient's gross
income for Federal income tax purposes
if the Secretary of Agriculture
determines that payments are made
"primarily for the purposes of
conserving soil and water resources,
protecting or restoring the enivronment.
improving forests. or providing a habitat
for wildlife' . .." The Secretary of
Agriculture evaluates these
conservation programs on the basis of
criteria set forth in 7 CFR part 14, and
makes a "primary purpose"
determination for the payments made
under each program. Before there may
be an exclusion. the Secretary of the
Treasury must determine that payments
made under these conservation
programs do not substantially increase
the annual income derived from the
property benefited by the payments:ln
addition. the Secretary of the Treasury

must determine that the particular small
watershed program is similar to the .
other Federal programs listed in section
126.

The Colorado River Basin Salinity
Control Program is authorized by
section 202(c) of the Colorado River
Basin Salinity Control Act. as amended.
43 U.S.C. 1592{c). Funding for this
program is allocated through annual
Federal appropriations. which provide
for financial. technical. and information
and education assistance to owners and
operators of agricultural land. helping
them install improved irrigation water
management systems on their land in
order to reduce salt load contributions
to the Colorado River system.
The Coiorado River Basin Salinity
Control Program provides financial and
technical' assistance to private
landowners or operators who have
control of agricultural lands located in
approved project areas and have
consented to the installation.
management. and maintenance of
improved irrigation water management
systems that reduce the quantity of salt
delivered to the Colorado River. .
The purpose of the financial
assistance component of the program is
to assist landowners or opera tors with
the cost of the installation of improved
irrigation delivery and application
systems, This cost-share program is
administered within USDA by the
Agricultural Stabilization and
Conservation Service with technical
assistance provided by the Soil
Conservation Service and information
and education assistance provided by
the Cooperative Extension Service.
Under the regulations governing the
Colorado River Basin Salinity Control
Program (7 CFR part 702) county
Agricultural Stabilization and
Conservation committees {CO C) may
enter into contracts with individuals or
entities that have control of land
identified in USDA Salinity Control
Reports as land that is contributing to
the salt loading of the Colorado River.
Funds are allocated to project areas
based on annually prepared project
implementation plans (PIP). The
National Salinity Control Coordinating
Committee (SCCC) approves a list of
eligible Salinity Reduction Practices
(SRP) for cost sharing. Each local SCCC
may select from this list those SRP's it
will appro\'e for cost sharing.
Costs eligible for cost sharing include.
but are not limited to. any necessary
approved costs incurred by the
landowner or operator to install or
implement an approved SRP. such as
equipment costs. material and labor. not

A-l

to exceed a rate establispP.d bv the COC
to be fair and reasonable.

Procedural Matters

The authorizing legislation and the
procedures and policies for the Colorado
River Basin Salinity Control Program.
have been examined using the criteria
set forth in 7 CFR part 14. The USDA
has concluded that the payments made
under this cost share program are made
to provide financial assistance to '
eligible persons in carrying out soil and
water conservation measures. and
protecting or restoring the environment.
Furthermore, the Secretary of the .
Treasury has determined that the
Colorado River Basin Salinity Control
Program is a "small watershed program"
within the meaning of 26 U.S,C. 126. See
26 CFR 16A.12&-1[dJ(l)(D).
A Colorado River Basin Salinity .
Control Program. Primary Purpose
Determination for Federal Tax Purposes.
"Record of Decision" has been prepared
and is available upon request from the
Director. Land Treatment Program
Division. Soil Conservation Service. P.O,
Box 2890. Washington. DC 20013; or
Director. Conservation and
Environmental Protection Division.
Agricultural Stabilization and
Conservation Service. USDA. room 4714,
South Agricultural Building. 14th and
Independence Avenue SW..
Washington. DC 20250.

Determination

As required by section 126(b) of the
Internal Revenue Code of 1954, as
emended. I have examined tlm
authorizing legislation, regulations. and
operating procedures of the Colorado
River Basin Salinity Control Program. In
accordance with the criteria in 7 CFR
part 14. I have determined that all cost.
sharp. payments made under this
program are for soil and water
conservation. protecting or restoring the
environment. and providing wildlife
habitat. Subject to furtner determination
by the Secretary.of the Treasury. this
determination permits payment
recipients to exclude from gross income.
for Federal income tax purposes. all or
part of such payments made under the
Colorado River Basin Salinity Control
Program.

Signed at Washington. DC on October 17.
1990.

Clayto~ K. Yeutter.
Secretary of Agriculture.

(FR Doc. 9G-251Sf Filed 10-23-90: 8:45 aml
BILLING CODE 341G-01-M