Notice2021-15683
Notice of Funds Availability (NOFA); Pandemic Assistance for Timber Harvesters and Haulers Program (PATHH)
Primary source
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Published
July 23, 2021
Issuing agencies
Agriculture DepartmentFarm Service Agency
Abstract
The Farm Service Agency (FSA) is announcing the availability of assistance for timber harvesting and timber hauling businesses impacted by the effects of the COVID-19 outbreak through PATHH. Timber harvesting and hauling businesses are also commonly referred to as loggers and truckers. This NOFA establishes provisions for FSA to provide direct payments to eligible applicants who have suffered a gross revenue loss of at least 10 percent for the period of January 1, 2020, through December 1, 2020, compared to the period of January 1, 2019, through December 1, 2019. The eligibility requirements, payment calculation, and application procedure for PATHH are included in this NOFA.
Full Text
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<title>Federal Register, Volume 86 Issue 139 (Friday, July 23, 2021)</title>
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[Federal Register Volume 86, Number 139 (Friday, July 23, 2021)]
[Notices]
[Pages 38970-38974]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-15683]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
[Docket ID CCC-2021-0008]
Notice of Funds Availability (NOFA); Pandemic Assistance for
Timber Harvesters and Haulers Program (PATHH)
AGENCY: Farm Service Agency, Department of Agriculture (USDA).
ACTION: Notification of funding availability.
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SUMMARY: The Farm Service Agency (FSA) is announcing the availability
of assistance for timber harvesting and timber hauling businesses
impacted by the effects of the COVID-19 outbreak through PATHH. Timber
harvesting and hauling businesses are also commonly referred to as
loggers and truckers. This NOFA establishes provisions for FSA to
provide direct payments to eligible applicants who have suffered a
gross revenue loss of at least 10 percent for the period of January 1,
2020, through December 1, 2020, compared to the period of January 1,
2019, through December 1, 2019. The eligibility requirements, payment
calculation, and application procedure for PATHH are included in this
NOFA.
FOR FURTHER INFORMATION CONTACT: Jody Kenworthy; telephone: (202) 690-
5230; email: <a href="/cdn-cgi/l/email-protection#2f65404b5601644a4158405d5b47566f5a5c4b4e01484059"><span class="__cf_email__" data-cfemail="94defbf0edbadff1fae3fbe6e0fcedd4e1e7f0f5baf3fbe2">[email protected]</span></a>. Persons with disabilities who
require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 (voice).
SUPPLEMENTARY INFORMATION:
Background
FSA will provide assistance to timber harvesting or timber hauling
businesses for losses due to the COVID-19 pandemic. FSA is implementing
[[Page 38971]]
PATHH to distribute up to $200 million as authorized by Subtitle B of
Title VII of Division N of the Consolidated Appropriations Act, 2021
(CAA; Pub. L. 116-260) to support timber harvesting and timber hauling
businesses that have experienced a decrease in their gross revenue of
10 percent or more for the period of January 1, 2020, and December 1,
2020, compared to gross revenue for the period of January 1, 2019 and
December 1, 2019. PATHH is intended for timber harvesting and hauling
businesses that derive the majority of their income from timber
harvesting or hauling activities.
Timber harvesting and hauling businesses are also commonly referred
to as loggers and truckers. This document uses the terms timber
harvesting and timber hauling businesses for consistency with the CAA.
FSA is administering the direct payments under the general supervision
and direction of the FSA Administrator, and the United States Forest
Service (USFS). USFS will provide technical assistance to FSA, which
includes, but is not limited to, sharing expertise on the timber
sector, connecting with stakeholders, and providing outreach and
training materials.
Definitions
For PATHH, the following definitions apply:
Gross revenue means the business's gross receipts. Gross receipts
are the total amounts the timber harvesting business or timber hauling
business received from timber harvesting and timber hauling activities,
without subtracting any costs or expenses. For PATHH, applicants should
not include sale of physical assets, such as machinery or equipment,
when calculating gross revenue.
Legal entity means for the purposes of administering PATHH, a
timber harvesting business or timber hauling business that is a
corporation, joint stock company, association, limited partnership,
irrevocable trust, estate, charitable organization, or other similar
organization including any such organization participating in a
business structure as a general partnership, a joint venture, a grantor
of a revocable trust, or as a participant in a similar organization, is
considered a legal entity, subject to the payment limitation and
payment eligibility requirements described in this NOFA. A business
operating as a sole proprietorship is considered a legal entity.
NAICS means the 2017 North American Industry Classification System
(NAICS). It is the standard used by Federal statistical agencies in
classifying business establishments for the purpose of collecting,
analyzing, and publishing statistical data related to the U.S. business
economy.
Person means an individual, natural person and does not include a
legal entity.
Principal business code means a six-digit number that classifies
the main type of product a business sells or service offered. It is
based on NAICS codes and is synonymous in this notice with NAICS.
Timber means trees or logs harvested from forest land. It includes
trees or logs that have been minimally processed onsite in the forest
before transportation from the forest land (for example, wood chips,
slash, etc.).
Timber harvesting business means a business, also known as a
logging business, with its gross revenue derived from one or more of
the following:
<bullet> Cutting timber;
<bullet> Cutting and transporting timber; or
<bullet> Producing wood chips on forest land.
In addition, the business must be classified under NAICS Code
113310 for tax purposes; or as otherwise determined by the Deputy
Administrator for Farm Programs.
Timber hauling business means a business, also known as a log
hauling business, with its gross revenue derived from transporting
products harvested directly from forest land with vehicles registered
(under the laws of the state or states in which the vehicle is required
to be registered) as highway motor vehicles used in the transportation
of timber. The business must also be classified under NAICS Code 484220
or 484230 for tax purposes and have filed IRS Form 2290 for logging
vehicles for 2019 and 2020, or otherwise determined by the Deputy
Administrator for Farm Programs.
United States means all 50 states of the United States, the
District of Columbia, the Commonwealth of Puerto Rico and any other
territory or possession of the United States.
Eligibility
To be eligible for a PATHH payment, an applicant must:
<bullet> Be in operation as a timber harvesting business or timber
hauling business during the periods of:
[cir] January 1, 2019, through December 1, 2019, and
[cir] January 1, 2020, through December 1, 2020; \1\
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\1\ Applicants must have operated for part of the eligible PATHH
period in both 2019 and 2020 to be eligible for PATHH. FSA will
adjust the applicant's gross revenue proportionately if the
applicant did not operate during the entire PATHH period.
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<bullet> Have had at least a 10 percent gross revenue loss when
comparing the 2020 period with the 2019 period mentioned above;
<bullet> Have 50 percent or more of its gross revenue derived from
timber harvesting, timber hauling, or both during the periods of:
[cir] January 1, 2019, through December 1, 2019, and
[cir] January 1, 2020, through December 1, 2020;
<bullet> Meet all of the requirements in this NOFA;
<bullet> Be a:
[cir] Citizen of the United States;
[cir] Resident alien, which for purposes of this NOFA means
``lawful alien'' as defined in 7 CFR part 1400;
[cir] Partnership of citizens or resident aliens of the United
States;
[cir] Corporation, limited liability company, or other
organizational structure organized under State law and solely owned by
U.S. citizens or resident aliens; or
[cir] Indian Tribe or Tribal organization, as defined in section
4(b) of the Indian Self-Determination and Education Assistance Act (25
U.S.C. 5304);
<bullet> Provide names and taxpayer identification numbers of each
person or legal entity that holds an ownership interest in an eligible
legal entity in accordance with 7 CFR 1400.107; \2\ and
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\2\ Like all other programs administered by FSA, names and
taxpayer identification numbers are required to limit payments to
persons and legal entities.
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<bullet> Comply with the provisions of 7 CFR part 12, ``Highly
Erodible Land and Wetland Conservation,'' and the provisions of 7 CFR
718.6, which address ineligibility for benefits for offenses involving
controlled substances.
The following types of applicants are ineligible for PATHH:
<bullet> Any legal entity that includes a member at any level of
ownership in the entity's ownership structure who is not a citizen of
the United States or an alien lawfully admitted into the United States
for permanent residence under the Immigration and Nationality Act (8
U.S.C. 1101-1778);
<bullet> The following types of businesses or operations:
[cir] Residential or commercial tree care;
[cir] Landscape services;
[cir] Trucking businesses that do not transport trees or logs;
[cir] Timber broker; and
[cir] United States Federal, State, and local governments.
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Payment Limitation
A person or legal entity cannot receive payments of more than
$125,000 under PATHH. FSA may reduce the maximum payment limitation
after all applications are received based on available funding. Like
all other programs administered by FSA, payments made to a PATHH
applicant that is a Indian Tribe or Tribal organization, as defined in
section 4(b) of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 5304), will not be subject to payment limitation.
Application
To apply for PATHH, each eligible timber harvesting business and
timber hauling business must complete the form FSA-1118, Pandemic
Assistance for Timber Harvesters and Haulers (PATHH) Program
Application, which is available at <a href="https://www.farmers.gov/PATHH">https://www.farmers.gov/PATHH</a> and in
FSA county offices. A complete form FSA-1118 must be submitted in
person, by mail, email, OneSpan,\3\ Box,\4\ or facsimile to any FSA
county office \5\ by October 15, 2021.
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\3\ OneSpan is a secure eSignature solution for FSA customers.
No software downloads or eAuthentication is required for OneSpan.
Applicants interested in eSignature through OneSpan can confirm
their identity through two-factor authentication (2FA). For the
second factor of authentication, applicants can use a text message
with verification code sent to their mobile device or a personalized
question and answer. Once identity is confirmed, documents can be
reviewed and e-signed through OneSpan via the applicant's personal
email address and, once signed, immediately become available to the
appropriate FSA county office staff.
\4\ Box is a secure, cloud-based site where FSA documents can be
managed and shared. Applicants who choose to use Box can create a
username and password to access their secure Box account, where
documents can be downloaded, printed, manually signed, scanned,
uploaded, and shared digitally with FSA county office staff. This
service is available to any FSA customer with access to a mobile
device or computer with printer connectivity. Box does not require
software downloads or an eAuthentication account.
\5\ The FSA county office locator can be found at the following
site under the ``Find Your Local Service Center'' section: <a href="https://www.farmers.gov/">https://www.farmers.gov/</a>.
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In addition to the form FSA-1118, an applicant must submit the
additional forms discussed below. Failure of an individual, legal
entity, or a member(s) of a legal entity to submit the following
payment limitation and payment eligibility forms within 60 days from
the date of submitting the PATHH application may result in no payment
or a reduced payment, as explained in the previous section.
Applicants will be required to complete form AD-2047 Customer Data
Worksheet. This form must be filled out for all applicants, as well as
members who own a share in any legal entity applicants, who have not
previously provided detailed information to USDA that accurately
identifies the applicant or member.
To facilitate administration of the payment limitation and
eligibility requirements, an applicant that is a legal entity, such as
a limited liability company, will be required to complete form CCC-901
Member Information for Legal Entities and provide names and taxpayer
identification numbers of all members holding an ownership interest in
the legal entity.
A highly erodible land conservation (sometimes referred to
elsewhere as HELC) and wetland conservation certification (form AD-1026
Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC)
Certification for PATHH applicant and applicable affiliates) will be
required for all applicants.
An applicant applying as a timber hauling business must submit a
copy of IRS Form 2290 Heavy Highway Vehicle Use Tax Return for logging
vehicles for 2019 and 2020 or they will be ineligible for a PATHH
payment. For a timber hauling business that only operates on Tribal
land, Form 2290 will not be required. The timber hauling business will
certify to this on the FSA-1118. Under special circumstances, as
determined by FSA, a timber hauling business that does not otherwise
use Form 2290 may request an exemption.
If requested by FSA, the applicant must provide additional
documentation to verify eligibility of the information included on the
application, such as tax records with NAICS 113310 or 484220, as well
as evidence that supports the gross revenue the applicant received from
timber harvesting or hauling, such as tax returns, payment receipts,
and other documentation that is determined acceptable by FSA.
An applicant, whether a person or legal entity, that either fails
to timely provide all required documentation or fails to satisfy an
eligibility requirement for the PATHH, is not eligible to receive PATHH
payments. A PATHH payment to an eligible legal entity applicant whose
member(s) either fails to timely submit a separate AD-2047 form or
fails to satisfy an eligibility requirement, other than the requirement
that the member be a citizen of the United States or an alien lawfully
admitted into the United States for permanent residence,\6\ will be
reduced proportionate to that member's ownership share.
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\6\ If a member fails to satisfy this eligibility requirement,
the applicant is not eligible under the PATHH.
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PATHH participants are required to retain documentation in support
of their application for 3 years after the date of approval.
Participants receiving PATHH payments or any other person who
furnishes such information to USDA must permit authorized
representatives of FSA or the Government Accountability Office, during
regular business hours, to enter the participant's business 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.
Payment
For eligible applicants, if gross revenue for the period of January
1, 2020, through December 1, 2020, decreased by at least 10 percent
compared to gross revenue for the period of January 1, 2019, through
December 1, 2019, the payment amount will be calculated as follows:
<bullet> Gross revenue received from January 1, 2019, through
December 1, 2019, minus gross revenue received from January 1, 2020,
through December 1, 2020;
<bullet> Multiplied by 80 percent.
For applicants whose business either originated between January 1,
2019, and December 1, 2019, or dissolved in between January 1, 2020,
and December 1, 2020, the applicant must report the amount of time they
were in business during the eligible PATHH periods of January 1, 2019,
through December 1, 2019, and January 1, 2020, through December 1,
2020, on their application, and FSA will adjust gross revenue
proportionally for the purpose of payment calculation. If there was a
change in the ownership of an entity in 2019, but the entity's name and
business remain the same, the entity is not considered to have
originated in 2019. For example, Timber Business A originated on July
17, 2019. It is still in operation today; therefore, it was in
operation during PATHH periods January 1, 2020, through December 1,
2020, (336 days) and July 17, 2019, to December 1, 2019 (138 days). The
business's gross revenue is $140,000 for 2019, and $200,000 in 2020.
Since the number of days the business existed in 2019 is not the same
as the number of days it existed in 2020, the business's gross revenue
for 2019 will be calculated on a daily basis, and that daily revenue
will then be multiplied by the number of days it operated in 2020. This
will allow an equitable comparison of the gross revenue for the 2 years
to determine the loss. To calculate the
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business's gross revenue for 2019, $140,000, will be divided by the
number of days its operation existed, 138 days, to get the business's
2019 gross revenue per day. That amount, $1,014.49275 (not rounded), is
then multiplied by the number of days the business existed in 2020 if
the business existed during the entire application period, 335 days.
This amount, $339,855.0724 (not rounded) will then be used as the
business's 2019 gross revenue in the PATHH payment calculation.
Seasonal timber harvesting and timber hauling business will be
considered in operation during the entire PATHH applicable period and
their gross revenue will not be prorated.
FSA will issue an initial payment equal to the lesser of:
<bullet> The amount calculated above; or
<bullet> $2,000.
After the close of the application period, FSA will issue a final
payment equal to the amount calculated above minus the amount of the
applicant's initial payment. If total calculated payments exceed the
total funding available for PATHH, the payment limitation may be
adjusted and the final payment amounts will be prorated to stay within
the amount of available funding. An initial payment to a recipient will
not be recalculated or reduced if the factored payment to that
recipient is $2,000 or less.
Miscellaneous Provisions
In the event that a PATHH payment resulted from erroneous
information reported by the applicant, the payment will be
recalculated, and the applicant must refund any excess payment to FSA,
including interest to be calculated from the date of disbursement.
If FSA determines that the applicant intentionally misrepresented
their total gross revenue, their application will be disapproved and
they must refund to USDA all PATHH payments made to the applicant with
interest from the date of disbursement.
If any corrections to the ownership interest in the business result
in a lower PATHH payment, the applicant must refund the difference with
interest from the date of disbursement.
Any required refunds must be resolved in accordance with debt
settlement regulations in 7 CFR part 3.
Equitable relief and finality provisions of 7 CFR 718 subpart D
apply to determinations under PATHH, as well as appeal regulations in 7
CFR parts 11 and 780. 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, program definitions,
payment limitation, the method of determining gross revenue loss, and
the PATHH payment calculation.
A timber hauling business or timber harvesting business may file an
application with the FSA county office after the PATHH application
deadline, along with a statement as to why the application is being
filed after the deadline. In such case the application and statement
will be considered a request to waive the application deadline. If
funding is available, the Deputy Administrator has the discretion and
authority to consider the case and waive or modify application
deadlines and other requirements or program 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 program provisions do not
adversely affect the operation of PATHH. 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.
PATHH payments will be made without regard to questions of title
under State law and without regard to any claim or lien against the
timber harvesting or hauling business. The regulations governing
offsets in 7 CFR part 3 do not apply to PATHH payments.
Perjury
In either applying for or participating in PATHH, 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. If the applicant willfully makes and
represents as true any verbal or written declaration, certification,
statement, or verification that the applicant knows or believes not to
be true, in the course of either applying for or participating in
PATHH, or both, then the applicant is guilty of perjury and, except as
otherwise provided by law, may be fined, imprisoned for not more than 5
years, or both, regardless of whether the applicant makes such verbal
or written declaration, certification, statement, or verification
within or without the United States.
Paperwork Reduction Act Requirements
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), the emergency information collection request has been
submitted to the Office of Management and Budget (OMB). OMB approved
the 6-month emergency PATHH information collection activity. FSA is
providing direct payments to eligible applicants who have suffered a
gross revenue loss of at least 10 percent for the period of January 1,
2020, through December 1, 2020, compared to the period of January 1,
2019, through December 1, 2019.
Environmental Review
The environmental impacts 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 regulation
for compliance with NEPA (7 CFR part 799).
As previously stated, PATHH is providing payments to eligible
timber harvesting and hauling businesses who have suffered a gross
revenue loss of at least 10 percent for the period of January 1, 2020,
through December 1, 2020, compared to the period of January 1, 2019,
through December 1, 2019. The limited discretionary aspects of PATHH do
not have the potential to impact the human environment as they are
administrative. Accordingly, these discretionary aspects are covered by
the FSA Categorical Exclusions specified in 7 CFR 799.31(b)(6)(iii)
that applies to price support programs and Sec. 799.31(b)(6)(vi) that
applies to safety net programs.
No Extraordinary Circumstances (Sec. 799.33) exist. As such, the
implementation of PATHH and the participation in PATHH do not
constitute major Federal actions 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 action and this document serves
as documentation of the programmatic environmental compliance decision
for this federal action.
Federal Assistance Programs
The title and number of the Federal assistance programs, as found
in the Catalog of Federal Domestic Assistance, to which this document
applies is 10.137--Pandemic Assistance for Timber Harvesters and
Haulers Program.
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USDA Non-Discrimination Policy
In accordance with Federal civil rights law and U.S. Department of
Agriculture (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 or (844)
433-2774 (toll-free nationwide). 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 <a href="https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint">https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint</a> 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: <a href="/cdn-cgi/l/email-protection#6f202e2c2f1a1c0b0e41080019"><span class="__cf_email__" data-cfemail="703f313330050314115e171f06">[email protected]</span></a>. USDA is an equal
opportunity provider, employer, and lender.
Zach Ducheneaux,
Administrator, Farm Service Agency.
[FR Doc. 2021-15683 Filed 7-22-21; 8:45 am]
BILLING CODE 3410-05-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.