Simplification and Streamlining of Regulations of the Economic Development Administration

SUMMARY: The purpose of this interim-final rule is to revise all of the

regulations of the Economic Development Administration (EDA) so that

they are easy to read and use, and accurately reflect program

requirements, evaluation criteria and selection processes in

implementing programs under the Public Works and Economic Development

Act of 1965, as amended, (PWEDA or the Act) the Trade Act of 1974, as

amended (the Trade Act) and other statutes to be noted herein. This

streamlining effort includes the removal of numerous unnecessary,

redundant and outdated parts, sections and portions thereof.

DATES: This rule is effective on October 1, 1995. Submit comments by

November 27, 1995.

ADDRESSES: Send comments to Awilda R. Marquez, Chief Counsel, Economic

Development Administration, U.S. Department of Commerce, Herbert C.

Hoover Building, 14th Street between Pennsylvania and Constitution

Avenues, NW, Room 7001A, Washington, DC. 20230.

FOR FURTHER INFORMATION CONTACT: Awilda R. Marquez, 202-482-4687, fax

number: 202-482-5671.

SUPPLEMENTARY INFORMATION:

Background

In March 1995, President Clinton issued a directive to

Federal agencies regarding their responsibilities under his Regulatory

Reform Initiative. This initiative is part of the National Performance

Review and calls for immediate, comprehensive regulatory reform. The

President directed all agencies to undertake an exhaustive review of

all their regulations--with an emphasis on eliminating or modifying

those that are obsolete or otherwise in need of reform. This final rule

represents one of the first steps in EDA's response to this new

directive.

EDA's regulations have been criticized by Congress,

applicants, recipients, and others as being too long, burdensome,

complex and difficult to understand. This interim final rule addresses

these problems as described in the Changes section.

Public comments were solicited and received during three

representative regional meetings of applicants and recipients of EDA

financial assistance held in Philadelphia, Pennsylvania, in February

1995, in Chicago, Illinois, in March 1995, and in Monterey, California,

in April 1995. Comments from these groups were about the complexity and

length of time and repetitive nature of grant processing. These

streamlined regulations address these concerns because they are less

complex and set forth program descriptions, evaluation criteria and

processing procedures in an easy to read and straightforward manner.

All employees of EDA were invited to participate in this

process, and many did.

Description of Major Changes

This interim-final rule removes, streamlines, and redesignates

parts, sections and portions thereof. Significant changes are described

below.

Removals

Certain removals are made because the programs to which

these regulations apply are no longer in existence, such as Part 313--

Job Opportunities Program; Part 314--Property Management--Subpart C--

Excess Property; Part 316--Local Public Works Capital Development and

Investment Program; and Part 317--Round II of the Local Public Works

Capital Development and Investment Program.

Other removals are made because policy rules not required

by PWEDA have become unnecessarily constraining or outdated, such as

Part 305--Public Works and Development Facilities Program in Subpart

C--Specific types of projects: Sec. 305.43(a) (2), (3), (4) and (b)

(2), (3), (5) Industrial parks and sites, Sec. 305.44 Tourism and

recreation, Sec. 305.45 Skill training center facilities; and in

Subpart D--Limitations: Sec. 305.54 Employment of local labor and

Sec. 305.59 Energy conservation and other requirements.

Removals were also made because provisions repeated

requirements in PWEDA, Pub. L. 89-136; 42 U.S.C. 3121 et seq., the

Trade Act, Pub. L. 93-618, 19 U.S.C. 2101 et seq., or other statutes,

or regulations, GAO opinions, Executive Orders or OMB Circulars which

apply to EDA's programs. In these instances, of course, the statutory

and other legal requirements are still in effect. Unless otherwise

stated, PWEDA is the basic underlying statutory authority incorporated

into and relied upon in 13 CFR Chapter III.

Streamlining

In Part 304, streamlined selection processing procedures

and uniform general evaluation criteria for EDA projects funded under

PWEDA are set forth.

This part condenses and clarifies policies and criteria previously

published in annual funding notices which are being codified in this

interim-final rule.

Section 316.3 on excess capacity has been changed to

describe three categories under section 702 of PWEDA (702 studies/

reports) determinations: studies, reports or exemptions. The exemptions

have been expanded. Market studies from applicants are to be submitted

to EDA early in application processing to be used if possible as the

basis for 702 studies or reports. This will save time in making the 702

studies/reports.

The nonrelocation prohibition in Sec. 316.4 will only

apply before a grant is awarded, and categorical exclusions from the

nonrelocation requirements have been expanded. This removes a post-

approval burden on recipients.

In Sec. 316.5 on electric and gas energy, requirements

have been combined to the extent that exceptions to the statutory

prohibition are identical, and additional exceptions have been added

for electrical energy.

In part 305, sections describing particular types of

projects are removed and in their place are generalized programmatic

requirements which are applicable to all Title I projects. The project

specific requirements were policy driven and overly burdensome. The new

requirements are easier to understand and to apply.

Part 307 on Technical Assistance, Research and Planning

has been changed to reflect program requirements, evaluation criteria

and selection procedures for the five programs implemented by EDA under

Title III of the Act: Local Technical Assistance, University Center

Technical Assistance, National Technical Assistance, Research and

Evaluation, State and Urban Planning and District Planning, to replace

confusing and often burdensome regulations.

Part 308 on Requirements for Grants under the Title IX

Economic Adjustment Program has been modified to incorporate program

requirements and procedures described in EDA's annual Notice of Funding

Availability

[[Page 49671]]

and now more accurately describes the types of projects typically

funded under the broad authority of Title IX. For Presidentially-

declared disasters, area eligibility criteria findings would be waived.

Part 314 on Property Management Standards has been changed

as follows:

To specify the nature of a grantee's trustee interest in

project property and EDA's retained reversionary interest.

To cover personal property, including revolving loan

funds, as well as real property.

To cover the form and evidence of title required for real

property under a project.

To clarify the determination of the Federal share of

property for which the Federal Government is to be compensated in case

of misuse or disposition of project property during a project's

estimated useful life.

To clarify and simplify the procedure for allowing

encumbrances of project property.

To specify that EDA may approve a substitution of the

grantee under a grant award.

To remove unnecessary provisions and ambiguities in the

current regulations.

Part 315 on Certification and Adjustment Assistance for

Firms has been substantially modified to reflect that this program has

been scaled back since communities are no longer funded and loans are

no longer made. Trade Adjustment Assistance Centers (TAACs) are

described, including the role they play in the certification and

adjustment assistance process.

Part 317--Sections providing for the enforcement of Title

VI have been modified to remove the mandatory submission of the

Affirmative Action Plan, thereby reducing the paperwork burden on the

applicant. The modification does not remove the authority to enforce

Title VI.

Table of Changes

The following distribution table lists all the changes to the

regulations, including those discussed above.

In the left column, the table lists the old sections in 13

CFR Chapter III.

In the middle column, the table lists new parts or

sections that track the number and/or provisions of the regulations in

the left column.

In the right column, the table explains the changes from

the old section in the left column to the new section in the middle

column.

----------------------------------------------------------------------------------------------------------------

Old section New section Description of change

----------------------------------------------------------------------------------------------------------------

Part 301--Establishment and Part 300--General Information Renamed and redesignated.

Organization.

Subpart A--Introduction....... ............................. Removed as unnecessary.

Sec. 301.1................... Sec. 300.1.................. The new rule adds statement that unless otherwise

so stated, all parts describe requirements which

are based upon and subject to PWEDA.

Sec. 301.2................... Sec. 300.2.................. The new rule contains definitions of terms, used

throughout the rule, unless otherwise provided.

Subpart B--Description of ............................. Removed as unnecessary since repeated elsewhere

Program Areas. in the rule.

Subpart C--Description of ............................. Removed as unnecessary.

Organization.

Sec. 301.30, Sec. 301.31.... Sec. 300.4.................. The new rule refers to EDA's annual FY NOFA for

addresses and phone numbers of EDA's Washington,

D.C., Regional and EDR offices.

Secs. 301.34-301.36.......... ............................. Removed as unnecessary.

Subpart D--Disclosure of ............................. Removed as unnecessary.

Information to the Public.

Sec. 301.50.................. Sec. 316.8.................. The new rule redesignates this section.

Subpart E--Information ............................. Removed as unnecessary.

Collection Requirements Under

the Paperwork Reduction Act:

OMB Control Numbers.

Sec. 301.70.................. Sec. 300.3.................. The new rule redesignates this section and

updates for accuracy.

Part 302--Designation of Areas Part 301--Designation of Redesignated.

Areas.

Subpart A--Standards for Subpart A--Standards for Redesignated.

Designation of Redevelopment Designation of Redevelopment

Areas Under Section 401(a) of Areas Under Section 401(a)

the Act. of the Act.

Secs. 302.1-302.3............ Secs. 301.1-301.3........... The new rule redesignates this section ad refers

to PWEDA for area designations on the basis of

unemployment, loss of population, and median

family income.

Secs. 302.4-302.5............ Secs. 301.4-301.5........... The new rule redesignates this section. Refers on

EDA, not Assistant Secretary for area

designations on the basis of American Indian

lands and sudden rise in unemployment.

Sec. 302.6................... ............................. Removed since no longer in effect.

Sec. 302.7................... Sec. 301.6.................. The new rule redesignates this section and refers

to EDA, not Assistant Secretary.

Sec. 302.8................... Sec. 301.7.................. The new rule redesignates this section and refers

to EDA, not Assistant Secretary.

Sec. 302.9................... Sec. 301.8.................. The new rule redesignates, updates and removes

unnecessary references.

Sec. 302.10.................. Sec. 301.9.................. The new rule redesignates this section.

Sec. 302.11.................. Sec. 301.10................. The new rule redesignates this section and refers

to EDA, not Assistant Secretary.

Sec. 302.12.................. Sec. 301.11................. The new rule redesignates this section which no

longer repeats statutory language.

[[Page 49672]]

Sec. 302.13.................. Sec. 301.12................. The new rule redesignates this section and refers

to EDA, not Assistant Secretary. No longer cites

to old Sec. 302.6.

Subpart B--Limitations on Subpart B--Limitations on Redesignated.

Designation of Areas. Designation of Areas.

Sec. 302.20.................. Sec. 301.13................. The new rule redesignates this section. Refers to

EDA, not Assistant Secretary.

Sec. 302.21.................. Sec. 301.14................. The new rule redesignates this section. Refers to

EDA, not Assistant Secretary.

Subpart C--Annual Review, Subpart C--Modification of Redesignated and renamed.

Modification, and Termination Designated Areas.

of Designated Areas.

Sec. 302.40.................. Sec. 301.15................. The new rule redesignates and streamlines this

section. Refers to EDA, not Assistant Secretary.

Sec. 302.41.................. ............................. Removed as no longer in effect.

Subpart D--Notice............. Subpart D--Notice............ Redesignated.

Sec. 302.50.................. Sec. 301.16................. The new rule redesignates and streamlines this

section.

Sec. 302.51.................. ............................. Removed as repetitive.

Subpart E--Information........ ............................. Removed as unnecessary.

Part 303--Economic Development Part 302--Economic Redesignated.

Districts. Development Districts.

Subpart A--Standards for Subpart A--Standards for Redesignated.

Designation, Modification and Designation, Modification

Termination of Economic and Termination of Economic

Development Districts. Development Districts.

Sec. Sec. 303.1-303.3....... Sec. Sec. 302.1-302.3...... The new rule redesignates and streamlines these

sections and makes them easier to read. Refers

to EDA, not Assistant Secretary.

Sec. 303.4-1................. Sec. 302.4.................. The new rule redesignates this section and

deletes references to waiver and to Civil Rights

Guidelines.

Sec. 303.4-2................. ............................. Removed because it is no longer necessary as a

matter of policy.

Sec. 303.4-3................. Sec. 302.5.................. The new rule redesignates this section and

deletes references to EDA components, certain

civil rights requirements and outdated

requirements.

Sec. 303.5................... Sec. 302.6.................. The new rule redesignates this section and no

longer repeats statutory language.

Sec. 303.6................... Sec. 302.7.................. The new rule redesignates this section. Refers to

EDA, not Assistant Secretary.

Sec. 303.7................... Sec. 302.8.................. The new rule redesignates and streamlines this

section. Refers to EDA, not Assistant Secretary

and deletes unnecessary references.

Sec. 303.8................... Sec. 302.9.................. The new rule redesignates this section and

removes references to other parts of the

regulations as unnecessary.

Subpart B--Standards for Subpart B--Standards for Redesignated.

Designation Modification, and Designation, Modification,

Termination of Economic and Termination of Economic

Development Centers. Development Centers.

Sec. Sec. 303.10-303.14..... Sec. Sec. 302.10-302.14.... The new rule redesignates these sections. Refer

to EDA, not Assistant Secretary.

Subpart C--Financial and Other Subpart C--Financial and Redesignated.

Assistance to Economic Other Assistance to Economic

Development Centers and Development Centers and

Districts. Districts.

Secs. 303.20-303.25.......... Secs. 302.15-302.19......... The new rule redesignates these sections. Refer

to EDA, not Assistant Secretary and cite to new

redesignated regulations.

Part 304--Overall Economic Part 303--Overall Economic Redesignated.

Development Program. Development Program.

Sec. 304.1................... Sec. 301.1.................. The new rule redesignates and streamlines this

section to remove cites to other regulations as

unnecessary.

Sec. 304.2................... Sec. 303.2.................. The new rule redesignates this section. It has

been shortened and made easier to read.

Sec. 304.3................... Sec. 303.3.................. The new rule redesignates and shortens this

section. References to Civil Rights Guidelines

have been removed.

Sec. 304.4................... Sec. 303.4.................. The new rule redesignates this section and makes

it easer to read and use.

Secs. 304.5-304.6............ Sec. 303.5.................. The new rule redesignates this section. It

combines two sections and removes unnecessary

requirements.

Secs. 304.7 and 304.9........ Sec. 303.6.................. The new rule redesignates this section. It

combines two sections into a streamlined and

easier to read section.

Sec. 304.8................... ............................. Removed.

Part 304--General Selection The new rule adds part 304 which sets forth

Process and Evaluation uniform selection procedures and general

Criteria. evaluation criteria for projects funded under

PWEDA.

Part 305--Public Works and Part 305--Public Works and The new rule streamlines and clarifies this part.

Development Facilities Development Facilities

Program. Program.

[[Page 49673]]

Subpart A--Direct and Subpart A--General........... Renamed.

Supplementary Grants for

Public Works and Development

Facilities.

Sec. 305.1................... Sec. 305.1.................. The new rule expands the purpose section to

include the scope of public works projects in

creating and retaining private sector jobs to

alleviate unemployment and underemployment.

Sec. 305.2................... Sec. 305.2.................. The new rule is updated to include the Republic

and Palau as an eligible applicant and states

that private or public non-profts must represent

a redevelopment area or part thereof and the

project must be located within an eligible EDA

area represented by such non-profit.

Sec. 305.3.................. The new rule describes eligibility requirements.

Secs. 305.3-305.4............ Secs. 305.4 and 305.6....... The new rule separates out statutory requirements

for regular public works and for public works

impact program projects and places them in Sec.

305.4 as project requirements. New Sec. 305.6

contains evaluation criteria previously found in

annual fiscal year NOFAs and has been modified

to encompass all types of projects under this

program.

Sec. 305.5.................. The new rule sets forth the selection process.

Subpart B--Supplementary and The new rule adds this subpart.

Overrun Grants.

Sec. 305.5................... Sec. 305.8.................. The new rule redesignates and streamlines this

section to delete unnecessary narrative.

Sec. 305.6................... Sec. 305.9.................. The new rule redesignates this section. Refers to

EDA, not Assistant Secretary.

Sec. 305.7................... ............................. Removed since program is no longer in effect.

Sec. 305.7.................. The new rule adds this section on award

requirements which have appeared in EDA's NOFA

which indicates the length of time for a grant

award under this program and matching local

share requirements.

Sec. 305.8................... Sec. 305.10................. The new rule redesignates this section. Refers to

EDA, not Assistant Secretary.

Subpart B--Public Works ............................. Removed since program is no longer in effect.

Development Facilities Loans.

Subpart C--Specific Types of ............................. Removed since contained burdensome policy

Projects. requirements.

Subpart D--Limitations........ ............................. Removed because some sections repeated

requirements found elsewhere and others were

based on restrictive policies.

Subpart E--Project Costs...... ............................. Removed because requirements were unnecessary and

repetitive.

Subpart F--Disbursement of ............................. Removed as unnecessary.

Funds for Grant and Loan

Projects.

Secs. 305.81-305.85.......... ............................. Removed since program no longer is in effect.

Secs. 305.86-305.87.......... Sec. 305.11................. The new rule combines portions of these sections

to provide greater flexibility and to update

terminology for financial assistance award and

references to EDA, not Assistant Secretary.

Sec. 305.88.................. ............................. Removed as unnecessary.

Sec. 305.89.................. Sec. 305.12................. The new rule redesignates this section.

Subpart G--Servicing of Grant ............................. Removed as unnecessary.

and Loan Projects.

Secs. 305.91-305.95.......... ............................. Removed as unnecessarily repetitive.

Sec. 305.96.................. Sec. 305.15................. The new rule redesignates and retitles this

section as ``Contract and Subcontract Clauses.''

The new rule refers to the Common Rule at 15 CFR

Part 24 and OMB Circular A-110 for required

clauses.

Sec. 305.97.................. ............................. Removed and merged into new Sec. 314.7.

Sec. 305.98.................. Secs. 305.13-305.14......... The new rule reformulates portions of the old

rule and states that any changes made without

prior approval by EDA are made at grantee's own

risk of suspension or termination of the project

(Sec. 315.13); and a section on final

inspection has been set out (Sec. 305.14).

Sec. 305.99.................. ............................. Removed as unnecessarily repetitive.

Sec. 305.100................. ............................. Removed and merged into new Sec. 316.7.

Part 306--Business Development ............................. Removed since program is no longer in existence.

Program.

Subpart A--Financial ............................. Removed.

Assistance & Commercial

Purposes.

Subpart B--Project Closing and ............................. Removed.

Servicing.

Secs. 306.31-306.33.......... Sec. 316.7.................. The new rule redesignates, combines and renames

these sections as ``Project Servicing'' to

assure retention of EDA's monitoring and

servicing of business development loans and

guarantees. Refers to EDA, not Assistant

Secretary.

[[Page 49674]]

Part 307--Technical Part 307--Local Technical Renamed.

Assistance, Research, and Assistance, University

Information. Center Technical Assistance,

National Technical

Assistance, Research and

Evaluation and Planning.

Subpart A--Technical Subpart A--Local Technical Renamed.

Assistance. Assistance; Subpart B--

University Center Program;

Subpart C--National

Technical Assistance.

Secs. 307.1-307.2............ Secs. 307.1, 307.6 and The new rule is divided into 3 subparts for

307.11. technical assistance (TA) with the purpose and

scope of the local TA program stated in Sec.

307.1; the purpose and scope of the university

center program stated in Sec. 307.6 and the

purpose and scope of the national TA program

stated in Sec. 307.11.

Secs. 307.3, 307.4 and 307.6. Secs. 307.4, 307.9 and The new rule has a separate evaluation criteria

307.14. section for each of the three kinds of TA

projects describing factors considered in

choosing projects to be funded. Subpart A

describes local TA programs, Subpart B describes

university center programs, and Subpart C

describes national TA programs.

Sec. 307.5................... Secs. 307.2, 307.7 and The new rule in Subparts A-C described above

307.12. lists eligible applicants under each of the

three TA programs.

Secs. 307.3, 307.8 and The new rule in Subparts A-C described above

307.13. explains the selection process under each of the

three TA programs.

Secs. 307.7-307.9............ ............................. Removed because program is no longer in

existence.

Sec. 307.10.................. Secs. 307.5, 307.10 and The new rule redesignates and renames these

307.15. sections as ``Award Requirements'' and

streamlines requirements on local share,

duration, etc.

Secs. 307.11-307.17.......... ............................. Removed because repeats other authorities.

Subpart B--Planning Grants and Subpart E--Economic Redesignated and renamed.

Economic Growth Study Grants. Development Districts,

American Indian Tribes and

Redevelopment Areas,

Economic Development

Planning Grants.

Secs. 307.21-307.22.......... Sec. 307.22................. The new rule describes the purpose and scope of

planning grants for administrative expenses.

References to economic growth study grants have

been removed.

Sec. 307.23.................. ............................. Removed because program is no longer in

existence.

Sec. 307.23................. The new rule adds a definition section describing

the two categories of planning grants for

purposes of the EDA grant rate.

Sec. 307.24.................. Sec. 307.24................. The new rule describes eligible applicants as

economic development districts, redevelopment

areas or parts thereof, American Indian tribes,

organizations representing tribes, the Republics

of Palau, Marshall Islands, the Commonwealths of

Puerto Rico, and Northern Marianna Islands, the

Federated States of Micronesia, U.S. Virgin

Islands, American Samoa and Guam.

Sec. 307.25.................. Secs. 307.27-307.28......... The new rule sets forth award requirements and

limitations.

Secs. 307.26-307.27.......... ............................. Removed because repeated other authorities and

referred to program no longer in existence.

Sec. 307.25................. The new rule describes the selection process

including those having to do with an overall

economic development program (OEDP).

Sec. 307.28.................. Sec. 307.26................. The new rule sets forth EDA's evaluation criteria

using some elements in old rule.

Sec. 307.29.................. ............................. Removed as unnecessary.

Subpart C--Study, Training, Subpart D--Research and Redesignated and renamed.

and Research Program. Evaluation.

Secs. 307.41-307.42.......... Sec. 307.16................. The new rule describes the purpose and scope of

research and evaluation grants and cooperative

agreements.

Sec. 307.17................. The new rule describes eligible applicants.

Sec. 307.18................. The new rule describes the selection process.

Sec. 307.19................. The new rule describes the evaluation criteria.

Sec. 307.20................. The new rule describes research topics and

structure.

Sec. 307.21................. The new rule describes award requirements.

Secs. 307.43-307.44.......... ............................. Removed because repeated portions of the Act.

Subpart D--State and Local Subpart F--State and Urban Redesignated and renamed.

Economic Planning Grants. Economic Development

Planning Grants.

Secs. 307.50-307.51.......... Sec. 307.29................. The new rule describes the purpose and scope of

state and urban economic planning grants.

Secs. 307.53 and 307.55...... Sec. 307.32................. The new rule sets forth evaluation criteria for

these planning grants using some elements in the

old rule.

Sec. 307.52.................. Sec. 307.30................. The new rule describes eligible applicants as

governors of states, chief executive officers of

cities or designated entities and counties, and

sub-state planning and development

organizations.

[[Page 49675]]

Sec. 307.54.................. Sec. 307.31................. The new rule sets forth EDA's selection process

for this planning program, modifying the old

rule.

Sec. 307.56.................. Sec. 307.33................. The new rule describes award requirements for

planning grants including the duration of grants

and local share match requirements.

Secs. 307.57-307.59.......... ............................. Removed as unnecessary.

Part 308--Special Economic Part 308--Requirements for The new rule renames, streamlines, and clarifies

Development and Adjustment Grants Under the Title IX this part.

Assistance Grants. Economic Adjustment Program.

Subpart A--Requirements for ............................. Removed.

Adjustment Grants Under Title

IX.

Sec. 308.1................... Sec. 308.1.................. The new rule is more detailed in describing

various components of the purpose and scope of

economic adjustment programs, most of which was

in EDA's annual NOFA.

Secs. 308.2-308.3............ Sec. 308.3.................. The new rule describes eligible applicants under

the economic adjustment program.

Sec. 308.4................... Sec. 308.4.................. The new rule is revised to describe eligibility

criteria for areas wishing to receive economic

adjustment grants. The new rule is more concise

and easier to read and use.

Sec. 308.5 and Subpart B-- Sec. 308.2.................. The new rule redesignates this section and

Specific Uses of Grants to subpart and describes how funds under this

Carry out Economic Adjustment. program can be used.

Sec. 305.5.................. The new rule sets forth the selection process for

economic adjustment grants.

Sec. 308.6................... ............................. Removed as unnecessary.

Sec. 308.6.................. The new rule sets forth evaluation factors used

by EDA in selecting projects for economic

adjustment funding. Such factors have been

published in EDA's annual fiscal year NOFAs.

Subpart C--Reports............ ............................. Removed as unnecessary.

Sec. 308.7.................. The new rule sets forth award requirements for

adjustment assistance grants, including matching

share and reporting requirements.

Part 309--General Requirements Part 316--General Redesignated.

Requirements.

Sec. 309.0................... ............................. Removed as unnecessary.

Sec. 309.1................... Sec. 316.2.................. The new rule redesignates this section. The new

rule updates procedures for certification from

EPA as to waste treatment, since many states

have been delegated authority by EPA to make

such certifications. EDA can in those instances

rely on such state certifications.

Sec. 309.2................... Sec. 316.3.................. The new rule redesignates this section and

renames it as ``Excess Capacity''. It

streamlines and clarifies to describe a more

efficient method for making Section 702 findings

under the Act and includes additional categories

of exemptions from doing reports and studies

based upon the nature of the goods and services

to be produced, the nature of the EDA

assistance, and market conditions.

Sec. 309.3................... Sec. 316.4.................. The new rule redesignates this section. It

greatly simplifies EDA's nonrelocation

requirement and applies only to firms relocating

before the EDA grant award.

Sec. 309.4................... Sec. 316.5.................. The new rule redesignates this section.

Exemptions have been added concerning electric

and gas energy.

Secs. 309.5-309.14........... ............................. Removed as unnecessarily repetitive.

Secs. 309.15, 309.18 and Sec. 316.1.................. The new rule redesignates this section and lists

315.3(c). major environmental requirements noting that the

list will be supplemented and modified as

applicable in EDA's annual fiscal year NOFAs.

Secs. 309.16-309.17.......... ............................. Removed as unnecessary.

Sec. 309.19.................. Sec. 316.9.................. The new rule redesignates this section. It does

not make any substantive changes.

Secs. 309.20................. Part 317--Civil Rights....... The new rule redesignates and streamlines this

section, clarifying EDA's civil rights

requirements.

Secs. 309.21-309.24.......... ............................. Removed since no longer in effect.

Sec. 309.25.................. Sec. 316.6.................. The new rule redesignates this section. Refers to

EDA, not Assistant Secretary.

Secs. 309.26-309.29.......... ............................. Removed as unnecessarily repetitive.

Part 310-Relocation Assistance ............................. Removed as unnecessarily repetitive.

and Land Acquisition Policies.

Part 311--Civil Rights Part 317--Civil Rights....... The new rule redesignates this part, streamlining

Requirements on EDA Assisted and clarifying EDA's civil rights requirements.

Projects and 315.5(b).

Part 312--Supplemental and Part 312--Supplemental and The new rule streamlines and clarifies this part.

Basic Assistance Under Basic Assistance Under

Section 304 of the Act. Section 304 of the Act.

Secs. 312.1-312.2............ ............................. Removed as unnecessary and outdated.

Sec. 312.3................... Secs. 312.1 and 312.4....... The new rule states the purpose and scope of

supplemental and basic assistance under Section

302 of PWEDA (Sec. 312.1) and award

requirements, including local share match (Sec.

312.4).

[[Page 49676]]

Secs. 312.4-312.5............ Secs. 312.2-312.3........... The new rules remove references to business loan

programs under Title II of the Act, since such

programs have not been appropriated funds over

the past several years, and they refer to EDA,

not the Assistant Secretary.

Sec. 312.6................... Sec. 312.5.................. The new rule redesignates this section. The new

rule on construction management deletes

references to Title II of the Act.

Sec. 312.7................... Sec. 312.6.................. The new rule redesignates this section. The new

rule on conditions for disbursements has been

updated to delete references to Title II of the

Act (see above) and to refer to EDA, not

Assistant Secretary.

Part 313--Job Opportunities ............................. Removed as no longer in effect.

Program.

Part 314--Property Management Part 314--Property Management The new rule streamlines and clarifies this part.

Standards. Standards.

Subpart A--Real Property...... ............................. Removed.

Sec. 314.1................... Sec. 314.1.................. The new rule begins the property management

standards part by setting forth the Federal

interest and applicability of this part to only

grants and cooperative agreements.

Sec. 314.2................... Sec. 314.2.................. The new rule contains definitions not found in

the current rule, and removes some that are no

longer applicable. For example, personal

property and estimated useful life are included

and defined.

Sec. 314.3................... Sec. 314.3.................. The new rule covers real and personal property

and is streamlined to read clearly in setting

forth authorized use requirements.

Sec. 314.4................... Secs. 314.4 and 314.5....... The new rule on unauthorized use of real and

personal property has been streamlined and

simplified and includes reference to EDA, not

the Assistant Secretary (Sec. 314.4); and the

rule on valuation has been expanded to a

separate section on the Federal share which

covers leasehold situations, transfer of

property and the end of EDA's interests in the

ownership, use or disposition of the property.

Sec. 314.5................... Sec. 314.6.................. The new rule redesignates this section and

renames it as ``Encumbrances''. The new rule has

been clarified and streamlined in describing

situations involving encumbrances, including

waivers.

Sec. 314.7.................. The new rule sets forth title requirements.

Sec. 314.6................... Secs. 314.8 and 314.9....... The new rule is divided into separate subparts

for real and personal property. Sec. 314.8 sets

forth requirements for recording statements for

projects involving acquisition construction or

improvement of a building; and Sec. 314.9 does

the same for the acquisition or improvement of

significant items of tangible items of personal

property.

Sec. 314.10................. The new rule sets forth specific requirements for

revolving loan funds (RLFs).

Subpart B--(Reserved)......... ............................. Removed as unnecessary.

Subpart C--Excess Property ............................. Removed as no longer in effect.

Sec. 314.50.

Part 315--Certification and Part 315--Certification and The new rule streamlines and clarifies this part

Adjustment Assistance for Adjustment Assistance for and subpart.

Firms and Communities. Firms and Communities.

Subpart A--General Provisions. Subpart A--General Provisions

Sec. 315.1................... Sec. 315.1.................. The new rule describes the updated purpose and

scope of EDA's role in the certification and

adjustment assistance for firms under Chapter 3

of Title II of the Trade Act of 1974, as

amended.

Secs. 315.2, 315.29, 315.53.. Sec. 315.2.................. The new rule's definitions section for Trade Act

certifications and adjustment assistance

cooperative agreements, has been expanded to

include significant words or phrases in this

part.

Sec. 315.3(a)................ ............................. Removed as not applicable.

Subpart B--Certification of Subpart B--Trade Adjustment Renamed.

Eligibility of Firms to Apply Assistance Centers.

for Adjustment Assistance.

Secs. 315.20-315.23(a)(b).... ............................. Removed as no longer in effect.

Sec. 315.23(c)............... Sec. 315.3.................. The new rule streamlines and clarifies

requirements concerning submission of

information which a firm seeks to designate as

confidential business information.

Sec. 315.4.................. The new rule describes eligible applicants under

EDA's Trade Act Program.

Sec. 315.5.................. The new rule describes EDA's selection process,

much of which was published in EDA's annual FY

NOFA.

Secs. 315.23 (d)-(f)-315.24, Sec. 315.10................. The new rule sets forth requirements for

315.30. processing petitions for certification,

including acceptance, withdrawal and

investigations.

Secs. 315.25-315,27, 315.31.. Sec. 315.11................. The new rule sets forth requirements for appeals

and final determinations.

Sec. 315.28.................. Sec. 315.9.................. The new rule redesignates and renames this

section as ``Certification Requirements''. It

has been streamlined and made easier to read and

understand.

[[Page 49677]]

Subpart C--Adjustment Subpart C--Certification of Renamed.

Assistance for Firms. Firms.

Secs. 315.51-315.52.......... Sec. 315.6.................. The new rule describes evaluation criteria for

TAACs, firms and organizations representing

trade-injured industries.

Sec. 315.54(d)............... Sec. 315.7.................. The new rule sets forth award requirements which

include duration of awards and matching share

requirements.

Secs. 315.54 (b)(1) and (c).. Sec. 315.8.................. The new rule describes the purpose and scope of

TAACs.

Sec. 315.32.................. Sec. 315.12................. The new rule redesignates and renames this

section as ``Termination of Certification and

Procedure.'' It is streamlined and refers to

EDA, not Deputy Assistant Secretary for

Planning.

Sec. 315.54 (a), (b)(2)...... ............................. Removed as no longer in effect.

Secs. 315.55-315.66.......... ............................. Removed as no longer in effect.

Subpart D--Study of Firms in Subpart D--Assistance to Renamed.

an Industry Which is the Industries.

Subject of an Investigation

of Injury or Threat of Injury

by the International Trade

Commission.

Sec. 315.80.................. ............................. Removed as no longer in effect.

Sec. 315.13................. The new rule describes loss of certification

benefits.

Sec. 315.81.................. Sec. 315.14................. The new rule redesignates and renames this

section as ``Assistance to Firms in Import-

impacted Industries.'' It has been updated to

refer to section 202(B) of the Trade Act and to

clearly describe industry assistance

limitations.

Subpart E--Certification of ............................. Removed as no longer in effect.

Eligibility of Communities to

Apply for Adjustment

Assistance and Subpart F--

Adjustment Assistance for

Communities.

Part 316--Local Public Works ............................. Removed as no longer in effect.

Capital Development and

Investment Program.

Sec. 316.7.................. The new rule sets forth loan and loan guarantee

servicing procedures.

Sec. 316.10................. The new rule sets forth additional requirements,

policies and procedures applicable to EDA

programs.

Part 317--Round II of the ............................. Removed as no longer in effect.

Local Public Works Capital

Development and Investment

Program.

Part 318--Community Emergency ............................. Removed as no longer in effect.

Drought Relief Program Secs.

318.1-318.23 and 318.25.

Sec. 318.24.................. ............................. Removed and merged with new Sec. 316.7.

----------------------------------------------------------------------------------------------------------------

Savings Clause

The rights, duties, and obligations of all parties pursuant to

parts, sections and portions thereof of the Code of Federal Regulations

removed by this rule shall continue in effect.

Executive Order 12866

This interim-final rule has been determined to be significant for

purposes of E.O. 12866.

Notice and Comment

This rule is not subject to the rulemaking requirements of 5 U.S.C.

553 because it relates to public property, loans, grants, benefits and

contracts, 5 U.S.C. 553(c)(2), including the provision of prior notice

and an opportunity for public comment and delayed effective date.

No other law requires that notice and opportunity for comment be

given for this rule.

However, because the Department is interested in receiving comments

from those who will benefit from the amendments, this rule is being

issued as interim final. Public comments on the interim final rule are

invited and should be sent to the address or numbers listed in the

ADDRESSES and FOR FURTHER INFORMATION CONTACT sections above.

Comments received by November 27, 1995 will be considered in

promulgating a final rule.

Regulatory Flexibility Act

Since notice and an opportunity for comment are not required to be

given for the rule under 5 U.S.C. 553 or any other law, under sections

603(a) and 604(a) of the Regulatory Flexibility Act (5 U.S.C. 601-612)

no initial or final Regulatory Flexibility Analysis is required, and

none has been prepared.

Paperwork Reduction Act

This rule contains new information collection or recordkeeping

requirements under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501

et seq.) pending approval of the Office of Management and Budget.

E.O. 12612

This rule does not contain policies with Federalism implications

sufficient to warrant preparation of a Federalism Assessment under

Executive Order 12612.

List of Subjects

13 CFR Part 300

Reporting and recordkeeping requirements.

13 CFR Part 301

Community development.

13 CFR Part 302

Community development; Grant programs-community development; Loan

programs-business; Loan programs-community development; Technical

assistance.

[[Page 49678]]

13 CFR Part 303

Community development; Reporting and recordkeeping requirements.

13 CFR Part 304

Selection and evaluation.

13 CFR Part 305

Community development; Community facilities; Grant programs-

community development; American Indians.

13 CFR Part 307

Business and industry; Community development; Grant programs--

business; Grant programs--community development; American Indians;

Research; Technical assistance.

13 CFR Part 308

Business and industry; Community development; Community facilities;

Grant programs--business; Grant programs--community development;

American Indians; Manpower training programs; Mortgages; Relocation

assistance; Rent subsidies; Reporting and recordkeeping requirements;

Research; Technical assistance; Unemployment compensation.

13 CFR Part 312

Community development; Grant programs--community development.

13 CFR Part 314

Community development; Grant programs--community development.

13 CFR Part 315

Administrative practice and procedure; Community development; Grant

programs--business; Technical assistance; Trade adjustment assistance.

13 CFR Part 316

Community development; grant programs--community development;

Freedom of information; Uniform Relocation Act.

13 CFR Part 317

Civil rights; sex discrimination.

For the reasons set forth in the preamble, 13 CFR Chapter III is

revised to read as follows:

CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF

COMMERCE

Part

300 General Information

301 Designation of Areas

302 Economic Development Districts

303 Overall Economic Development Program

304 General Selection Process and Evaluation Criteria

305 Public Works and Development Facilities Program

306 [Reserved]

307 Local Technical Assistance, University Center Technical

Assistance, National Technical Assistance, Research and Evaluation

and Planning

308 Requirements for Grants Under the Title IX Economic Adjustment

Program

309 [Reserved]

310 [Reserved]

311 [Reserved]

312 Supplemental and Basic Under Section 304 of the Act

313 [Reserved]

314 Property Management Standards

315 Certification and Adjustment Assistance for Firms

316 General Requirements for Financial Assistance

317 Civil Rights

318 [Reserved]

PART 300--GENERAL INFORMATION

Sec.

300.1 Purpose.

300.2 Definitions.

300.3 OMB control numbers.

300.4 Economic Development Administration--Washington, D.C.,

Regional Offices and Economic Development Representatives.

Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C.

3211); Department of Commerce Organization Order 10-4, as amended

(40 FR 56702, as amended).

Sec. 300.1 Purpose.

The purpose of the Public Works and Economic Development Act of

1965, as amended, (PWEDA) as administered by the Economic Development

Administration (EDA), is to provide assistance in economically

distressed areas, regions and communities in order to alleviate

conditions of substantial and persistent unemployment and

underemployment and to establish stable and diversified economies

subject to PWEDA. Unless otherwise stated in this Chapter, all parts

describe requirements which are based upon and subject to PWEDA.

Sec. 300.2 Definitions.

Unless otherwise defined in other parts or sections of this

chapter, the terms listed below are defined as follows:

Act and PWEDA are used interchangeably to mean the Public Works and

Economic Development Act of 1965, as amended. (Pub. L. 89-136, 42

U.S.C. 121 et seq.)

Alaskan Native Village means:

(1) A town or village site occupied and used by natives of Alaska-

American Indians, Eskimos, and Aleuts under the Native Townsite Act of

1926;

(2) Native villages under the Alaska Native Claims Settlement Act

and any contiguous corporate boundary adjustments under the state laws

of Alaska; and

(3) Such additional lands as are authorized to be included under

the Pub. L. 92-203, sec 2, Dec. 18, 1971, 85 Stat. 688, 43 U.S.C. 1601.

Community Development Corporation means an entity as defined in the

Community Economic Development Act of 1981, 42 U.S.C. 9802; i.e.,

Community Development Corporations receiving financial assistance under

authority of the Community Assistance Block Grant Act, as amended, 42

U.S.C. 9815.

Cooperative agreement, grant, financial assistance award, financial

assistance grant, offer of grant and grant award all refer to the non-

procurement award of EDA funds to an eligible entity under PWEDA or the

Trade Act, as applicable.

District, Economic Development District or EDD means a geographic

area consisting of one or more redevelopment areas as defined under

PWEDA and designated in accordance with part 302 of this chapter.

EDA means the Economic Development Administration when a place or

agency is intended; or it means the Assistant Secretary of Commerce for

Economic Development or his/her designee when a person is intended.

Growth Center means either an Economic Development Center (EDC),

which is a geographic area located outside an EDA designated area,

containing a population of 250,000 or less and identified in an OEDP as

having growth potential and the ability to alleviate distress within

the EDD; or a Redevelopment Center, which is a geographic area located

within a designated redevelopment area identified in an OEDP as having

growth potential and the ability to alleviate distress within the EDD.

American Indian Tribe means the governing body of a tribe, non-

profit American Indian corporation (restricted to American Indians);

American Indian authority or other tribal organization or entity or

Alaskan Native Village.

Local share, matching share or local share match are used

interchangeably to mean non-Federal funds or goods and services from

recipients or third parties, and includes funds from other Federal

agencies only if there is statutory authority allowing such use.

OEDP means an Overall Economic Development Program, (or plan of

action) pertaining to an area or district.

Project means the activity or activities whose purpose fulfills EDA

program requirements and which is funded in whole or in part by EDA.

Proposed District means a geographic entity composed of one or more

[[Page 49679]]

designated redevelopment areas represented by an entity seeking

designation as an EDD.

Public Works and Development Facility means a project funded under

Title I of the Act.

Recipient, grantee, and awardee are used interchangeably to mean an

entity accepting funds from EDA under PWEDA or the Trade Act, as

applicable and includes any EDA approved successor to such recipient.

Similarly, subawardee, subgrantee and subrecipient are also used

interchangeably.

The Trade Act means Chapter 3, Title II of the Trade Act of 1974,

as amended (19 U.S.C. 2341 et seq.).

Sec. 300.3 OMB control numbers.

(a) This table displays control numbers assigned to EDA's

information collection requirements by the Office of Management and

Budget (``OMB'') pursuant to the Paperwork Reduction Act of 1980, Pub.

L. 96-511. EDA intends that this table comply with Section 3507(f) of

the Paperwork Reduction Act, requiring agencies to display a current

control number assigned by the Director of OMB for each agency

information collection requirement.

(b) Control Number Table:

------------------------------------------------------------------------

Current OMB

13 CFR part or section where identified and described control No.

------------------------------------------------------------------------

Part 305................................................ 0610-0011

0610-0092

Part 308................................................ 0610-0058

0610-0092

Part 315................................................ 0610-0091

Sec. 316.4.............................................. 0610-0082

Sec. 312.5.............................................. 0610-0011

------------------------------------------------------------------------

Sec. 300.4 Economic Development Administration--Washington, D.C.,

Regional Offices and Economic Development Representatives.

For addresses and phone numbers of the Economic Development

Administration in Washington, D.C., its Regional and Field Offices and

Economic Development Representatives, refer to EDA's annual FY NOFA.

PART 301--DESIGNATION OF AREAS

Subpart A--Standards for Designation of Redevelopment Areas Under and

Subject to Section 401(a) of the Act

Sec.

301.1 Designation on the basis of unemployment.

301.2 Designation on the basis of loss of population.

301.3 Designation on the basis of median family income.

301.4 Designation on the basis of American Indian lands.

301.5 Designation on the basis of sudden rise in unemployment.

301.6 Designation of public works impact program areas.

301.7 Designation of special impact areas.

301.8 Recognition of redevelopment areas designated under the

Community Economic Redevelopment Act of 1981, as amended.

301.9 Designation on the basis of per capita employment.

301.10 Designation on the basis of substantial unemployment and the

national average rate of unemployment.

301.11 Designation on the basis of long-term economic

deterioration.

301.12 Exception to criteria for qualification.

Subpart B--Limitations on Designation of Areas

301.13 Limitations with respect to the size and boundaries of

redevelopment areas.

301.14 Receipt of an acceptable OEDP.

Subpart C--Modification of Designated Areas

301.15 Adjustment of boundaries.

Subpart D--Notice

301.16 Notification of public officials.

Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C.

3211); Department of Commerce Organization Order 10-4, as amended

(40 FR 56702, as amended).

Subpart A--Standards for Designation of Redevelopment Areas Under

and Subject to Section 401(a) of the Act

Sec. 301.1 Designation on the basis of unemployment.

On the basis of labor force data on unemployment supplied by the

Secretary of Labor, EDA shall designate such redevelopment areas in

accordance with section 401(a) of the Act.

Sec. 301.2 Designation on the basis of loss of population.

Such designation shall be made in accordance with section 401(a) of

the Act, 42 U.S.C. 3161.

Sec. 301.3 Designation on the basis of median family income.

Such designation shall be made in accordance with section 401(a) of

the Act.

Sec. 301.4 Designation on the basis of American Indian lands.

(a) EDA shall designate as Redevelopment Areas those American

Indian reservations, American Indian trust land areas, and restricted

American Indian-owned land areas, including Alaskan Native Villages,

which manifest the greatest degree of economic distress.

(1) American Indian reservations shall consist of land areas which

by official Federal or State action or recognition have been reserved

for the use and benefit of a specific American Indian tribe or tribes,

and shall include those lands to which the Federal or State Government

retains title and may include tribally-owned lands, lands allotted to

individual tribal members, and interspersed land belonging to non-

American Indians.

(2) American Indian trust land areas shall consist of land areas

held in trust by or under the authority of Federal or State Government

for use and occupancy by American Indians.

(3) Restricted American Indian-owned land areas shall consist of

land areas owned by American Indian tribes, but subject to restrictions

on alienation or use imposed by Federal or State Governments.

(b) EDA shall make such designations of Redevelopment Areas upon

consultation with the Secretary of Interior or an appropriate State

agency and on the basis of unemployment and income statistics and other

appropriate evidence of economic underdevelopment.

(c) EDA, upon consultation with the Secretary of Interior or an

appropriate State agency, may designate uninhabited Federal or State

American Indian reservations or trust or restricted American Indian-

owned land areas where such designation would permit assistance to

American Indian tribes, with a direct beneficial effect on the economic

well-being of American Indians.

(d) When the determination of economic distress pertains to land

areas that are not contiguous, it must be shown that there is a clear

economic connection between the noncontiguous land areas that will

contribute to a more effective economic development program for the

area.

Sec. 301.5 Designation on the basis of sudden rise in unemployment.

Such designation can be made under the Act when the following

conditions are met:

(a) Where the loss, removal, curtailment, or closing of the major

source of employment has occurred provided that:

(1) The major source of employment shall be construed as a single

firm or industry; or

(2) Job losses in more than a single firm or in more than in a

single industry may be considered in the aggregate where:

(i) There is a clear demonstrable economic connection between or

among the firms or industries; or

[[Page 49680]]

(ii) More than one firm or industry has been affected by a common

disaster.

(3) A major source of employment is when its loss, removal,

curtailment, or closing has caused or can reasonably be expected to

cause:

(i) An increase of 500 or more of unemployed persons in the area;

or

(ii) An increase of 2 percentage points or more in the area's

unemployment rate, based on the relationship of actual or expected

additional unemployed to the number of persons in the area's labor

force.

(b) Where there is an actual or threatened closing of a major

source of employment within 3 years after the date of the area's

request provided that:

(1) The rise in unemployment must be shown to be unusual or unique

for the area, the industry, and the time of year; and

(2) Such rise must have occurred or be reasonably expected to occur

during a 1-year period within the qualifying span of 3 years before to

3 years after the date of the request for designation.

(c) The area's unemployment rate can reasonably be expected to

exceed the national average by 50 percent or more, except for those

job-loss situations in which it is public knowledge that the jobs lost

were or will be of a type in such great demand that the persons laid

off were or will be readily reemployable.

(d) Areas designated under this section are allowed a reasonable

time after designation to submit an acceptable OEDP to EDA. An area

designated under this section which does not have an approved OEDP is

not eligible for financial assistance under Title I of the Act.

Sec. 301.6 Designation of public works impact program areas.

(a) EDA shall designate communities or neighborhoods defined

without regard to political or other subdivisions or boundaries as a

public works impact program (PWIP) area, when it determines one of the

following conditions have been met by the defined area in its entirety.

(1) A large concentration of low income persons. This includes:

(i) An area selected for assistance under the Community Economic

Development Act of 1981, as amended (42 U.S.C. 9815), Title VI, Chapter

8, Subchapter A of the Omnibus Budget Reconciliation Act of 1981 (Pub.

L. 97-35); or

(ii) An area in which the majority of the families are living in

poverty, as defined by the U.S. Department of Health and Human Services

guidelines, as published each year in the Federal Register.

(2) Rural areas having substantial outmigration. This includes an

area which has experienced a minimum outmigration rate of at least 25

percent during the period from the beginning to the end of the most

recent 10-year census period for which data is available.

(3) Substantial unemployment as established by an annual average

unemployment rate of 8.5 percent or more during the most recent quarter

for which such data is available.

(4) An actual or threatened abrupt rise of unemployment due to the

closing or curtailment of a major source of employment. The area must

meet the qualifications as set forth in paragraphs (a)-(d) of

Sec. 301.5. Although no boundary constraints, as set forth in

Sec. 301.13, shall apply, the area for which designation is sought must

be one for which EDA can obtain data establishing its eligibility for

designation.

(b) No PWIP area designated under this section shall be eligible to

be considered a redevelopment area for the purposes of district

designation.

Sec. 301.7 Designation of special impact areas.

EDA shall designate special impact areas where:

(a) One of the following criteria have been met:

(1) There are large concentration of low-income persons. This

includes:

(i) An area presently selected for assistance by the Department of

Health and Human Services under the Community Economic Development Act

of 1981, as amended (42 U.S.C. 9815), (Title VI, Chapter 8, Subchapter

A of the Omnibus Budget Reconciliation Act of 1981 (Pub. L. 97-35); or

(ii) An area in which a majority of the families are living in

poverty as defined by the Department of Health and Human Services

guidelines as published each year in the Federal Register.

(2) Rural Areas having substantial outmigration. This includes any

area which has experienced a minimum outmigration rate of at least 25

percent during the most recent 10-year period as established by the

Bureau of the Census.

(3) An area of substantial unemployment, meaning one which:

(i) Experienced an average unemployment rate at least 50 percent

higher than the U.S. average unemployment rate for the most recent 12-

month period for which data are available; or

(ii) Is currently experiencing an unemployment rate at least 100

percent higher than the U.S. average unemployment rate.

(4) An area which has or is threatened with an abrupt rise in

unemployment due to the closing or curtailment of a major source of

employment, and which has or can reasonably be expected to have an

unemployment rate 100 percent or more above the national average.

(b) Written requests have been submitted by State or local

governments, agencies or instrumentalities thereof, or with the

concurrence of the appropriate governmental authority of the political

subdivision of which the area is a part, by any public or private non-

profit organization or association representing the area for which

designation is sought. Requests should contain the following material:

(1) A description of the proposed boundary and facility

characteristics of the proposed special impact area including a map

showing the relation to the larger area to which it is a part. Such

description should show consistency with area wide zoning ordinances

and appropriate land use plans;

(2) A description of the socioeconomic characteristics of the

proposed special impact area;

(3) An OEDP; and

(4) Written evidence of support from members of the community at

large.

(c) No special impact area designated under this section shall be

eligible to be considered a redevelopment area for the purposes of

district designation.

Sec. 301.8 Recognition of redevelopment areas designated under the

Community Economic Redevelopment Act of 1981, as amended.

Areas selected for assistance under the Community Economic

Development Act of 1981, as amended (42 U.S.C. 9815) will be deemed

redevelopment areas within the meaning of section 401 of the Act.

Sec. 301.9 Designation on the basis of per capita employment.

EDA shall designate as redevelopment areas those areas which have

suffered a significant decline in per capita employment of more than

1.2 percentage points from the beginning to the end of the most recent

10-year census period for which data is available and has had net

outmigration during the same period, as determined by the most

currently available census data.

Sec. 301.10 Designation on the basis of substantial unemployment and

the national average rate of unemployment.

(a) EDA shall designate as a redevelopment area any area for which

the Secretary of Labor has provided labor force data showing that:

[[Page 49681]]

(1) The area has experienced a substantial average unemployment

rate over a 24-month period; and

(2) The area has experienced an average 24-month unemployment rate

for the most recent 24-month period for which data are available which

was above the national 24-month average unemployment rate for the same

period.

(b) The Secretary of Labor shall provide the unemployment data for

use by EDA in designating redevelopment areas pursuant to the criteria

of section 401(a)(8) of the Act, as implemented by paragraphs (a)(1)

and (a)(2) of this section.

(c) For the purpose of this section, substantial unemployment is

defined as an unemployment rate of 6 percent or more.

(d) EDA may determine for the purpose of this section that 24 month

unemployment data is not available so that data for the most recent 12-

month or 4-month period may be used instead.

Sec. 301.11 Designation on the basis of long-term economic

deterioration.

Such designation shall be made in accordance with section 401(a) of

the Act.

Sec. 301.12 Exception to criteria for qualification.

(a) EDA shall designate in a State which has no redevelopment area

that area which most nearly qualifies under this subpart.

(b) Designation made under paragraph (a) of this section shall be

terminated in accordance with section 402 of the Act if any other area

within the same State subsequently becomes qualified or designated

under any other section of this subpart.

(1) Designation under paragraph (a) of this section will not be

terminated under paragraph (b) of this section if the area becoming

qualified or designated becomes qualified under Sec. 301.6 or

Sec. 301.7.

(2) Termination under this subsection will become effective at the

time of the annual review.

Subpart B--Limitations on Designation of Areas

Sec. 301.13 Limitations with respect to the size and boundaries of

redevelopment areas.

(a) The size and boundaries of redevelopment areas will be

determined by EDA subject to requirements under the Act for at least

1500 in population, unless designated under Sec. 301.4 or Secs. 301.6,

301.7, 301.8, and other requirements in section 401(b) of the Act.

(b) Except for areas designated under Secs. 301.4, 301.5, 301.6,

301.7 and 301.8, no area may be designated which is smaller than a

labor area (as defined by the Secretary of Labor), a county, or a

municipality with a population of over 25,000 persons whichever EDA

deems appropriate.

(c) All parts of the area seeking designation under Sec. 301.5 must

be contiguous.

(d) Delineation of the area designated under Sec. 301.5 must be

based on a reasonable grouping of census tracts or similar geographical

units, or the area must be defined by specific boundaries incorporating

commercial or industrial sites and enterprises which can offer

employment opportunities for the work force of the area.

(e) Nothing in this section shall prevent any municipality

designated or eligible to be designated as a redevelopment area from

combining with any other community having mutual economic interests and

transportation and marketing patterns for the purpose of such

designation.

(f) Areas qualified in accordance with Sec. 301.5 may be designated

subject to the receipt of an acceptable OEDP within 6 months following

such conditional designation, or within such additional period as the

Assistant Secretary may grant for good cause.

(g) Any area, other than those areas eligible for designation

pursuant to Secs. 301.5 and 301.6, which does not submit an acceptable

OEDP within 6 months after notification of its qualification for

designation, shall not thereafter be designated prior to the next

annual review of eligibility; however, such period may be extended for

good cause.

Sec. 301.14 Receipt of an acceptable OEDP.

(a) No area shall be designated until it has an approved OEDP, as

described in section 403 of the Act, except those areas eligible for

designation under Secs. 301.5 and 301.6.

(b) Areas qualified in accordance with Sec. 301.5 may be designated

subject to the receipt of an acceptable OEDP within 6 months following

such conditional designation, or within such additional period as EDA

may grant for good cause.

(c) Any area, other than those areas eligible for designation

pursuant to Secs. 301.5 and 301.6, which does not submit an acceptable

OEDP within 6 months after notification of its qualification for

designation, shall not thereafter be designated prior to the next

annual review of eligibility; however, such period may be extended for

up to 6 months if EDA determines there is good cause.

Subpart C--Modification of Designated Areas

Sec. 301.15 Adjustment of boundaries.

(a) EDA may make minor modifications in the boundaries of

redevelopment areas designated under Subpart A of this part if:

(1) Such modification will contribute to a more effective program

for economic development within such area; and

(2) There is a request in writing which:

(i) Outlines the exact extent of the boundary adjustment;

(ii) States how the absence of the boundary adjustment would impede

the implementation of the approved OEDP;

(iii) States why a specifically proposed project cannot be located

within the existing boundaries of the designated redevelopment area; or

(iv) States other reasons why a boundary adjustment is needed.

(3) The interested State official or agency is informed and given

opportunity to submit comments on and endorse or not endorse the

request.

(b) Additional areas will be included within the redevelopment area

only if such inclusion is necessary to meet program requirements for a

project.

Subpart D--Notice

Sec. 301.16 Notification of public officials.

(a) EDA shall notify local, State, and national officials when an

area:

(1) Qualifies for designation under criteria set forth in subpart A

of this part;

(2) Is designated; and/or

(3) Has its designation modified or terminated.

(b) [Reserved]

PART 302--ECONOMIC DEVELOPMENT DISTRICTS

Subpart A--Standards for Designation, Modification and Termination of

Economic Development Districts

Sec.

302.1 Authorization of economic development districts.

302.2 Designation of economic development districts.

302.3 Designation of nonfunded districts.

302.4 District organizations.

302.5 District organization functions and responsibilities.

302.6 Coordination with state and local organizations.

302.7 Modification of district boundaries.

302.8 Termination and suspension of district designation.

302.9 Benefits.

[[Page 49682]]

Subpart B--Standards for Designation, Modification, and Termination of

Economic Development Centers

302.10 General standards for designation of economic development

centers.

302.11 Number of economic development centers per district.

302.12 Boundaries of economic development centers and boundary

modifications.

302.13 Termination and suspension of economic development centers.

302.14 Redevelopment centers.

Subpart C--Financial and Other Assistance to Economic Development

Centers and Districts

302.15 Financial assistance to economic development centers.

302.16 Economic development center project characteristics.

302.17 Grant rate for economic development center projects.

302.18 Financial assistance to redevelopment centers.

302.19 Assistance to economic development districts.

Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C.

3211); Department of Commerce Organization Order 10-4, as amended

(40 FR 56702, as amended).

Subpart A--Standards for Designation, Modification and Termination

of Economic Development Districts

Sec. 302.1 Authorization of economic development districts.

(a) EDA may authorize, at the request of the Governor(s) of the

State or States, the delineation of proposed district boundaries as a

prerequisite to designation as an economic development district and as

a prerequisite to the provision of planning grants under part 307 of

this chapter.

(b) Authorization of delineation may be made:

(1) Where the State or States, after analyzing economic and social

relationships among the various redevelopment area counties, propose a

boundary delineation for the proposed district;

(2) Where the proposed district meets the general standards for

designation set forth in Sec. 302.2;

(3) Where a consideration of the following factors has been made:

(i) The percentage of the population living in redevelopment areas;

(ii) Per capita income in the proposed district;

(iii) The percentage of families with annual income below the

poverty threshold;

(iv) Unemployment rates and labor force participation rates of the

proposed district;

(v) Economic characteristics of growth centers; and

(vi) The proposed district's readiness to hire a professional staff

and begin work.

(4) Where the boundaries conform to an officially delineated sub-

State district or where the Governor has provided EDA with an

explanation of and support for any variation of the officially

delineated sub-State district.

Sec. 302.2 Designation of economic development districts.

EDA is authorized to designate proposed districts as economic

development districts (EDDs) with the concurrence of the States in

which the EDDs will be wholly or partially located when the proposed

district meets the following requirements:

(a) It is of sufficient size or population, and contains sufficient

resources, to foster economic development on a scale involving more

than a single redevelopment area;

(b) It contains at least one redevelopment area;

(c) It contains one or more redevelopment areas or economic

development centers identified in an approved district overall economic

development program (hereinafter OEDP) as having sufficient size and

potential to foster the economic growth activities necessary to

alleviate the distress of the redevelopment areas within the district;

(d) It has an OEDP which identifies one or more proposed growth

centers, includes adequate land use and transportation planning,

contains a specific program for district cooperation and public

investment and is approved by the State or States affected and by EDA;

(e) When at least three-fourths of the counties within the proposed

district boundaries have submitted documentation of their commitment to

support the economic development activities of the district;

(f) A district organization has been established by the proposed

district which meets the requirements of Sec. 302.4; and

(g) The proposed district organization requests such designation.

Sec. 302.3 Designation of nonfunded districts.

Designation is not limited to districts receiving EDA planning

grants. However, the continuing designation of any nonfunded EDD is

subject to the same criteria and organization requirements applicable

to funded districts.

Sec. 302.4 District organizations.

(a) The district organization is a prerequisite to initial

designation of proposed districts and EDDs and to the provision of

planning grants under part 307 of this chapter and shall be organized

in one of the following manners:

(1) As non-profit organizations incorporated under the laws of the

States in which they are located;

(2) As public organizations through intergovernmental agreements

for the joint exercise of local government powers; or

(3) As public organizations established under State enabling

legislation for the creation of multijurisdictional area wide planning

organizations.

(b) Each proposed district or EDD organization must meet EDA

requirements concerning its membership composition as set forth in

Sec. 302.4(c), its authorities and responsibilities for carrying out

economic development functions as set forth in Sec. 302.5, and the

maintenance of adequate staff support to perform its economic

development functions as set forth in Sec. 302.4(d). Such requirements

must be met by the board of directors (or other governing body of the

organization) as a whole.

(c) The proposed district or EDD organization shall demonstrate

that it meets all of the following requirements:

(1) It is broadly representative of the following interests:

(i) The principal economic interests of the proposed district or

EDD, including business, industry, finance, transportation, utilities,

the professions, labor, agriculture, Federal and State recognized

American Indian tribes and education. In meeting this requirement, the

representatives of the principal economic interests may be private

citizens, part-time elected officials, or minority representatives also

selected under paragraph (c)(1)(ii) of this section;

(ii) Minority and low-income populations whose representatives may

be private citizens, elected officials, or government employees; and

(iii) Representatives of the unemployed and underemployed who may

also be minority representatives selected under paragraph (c)(1)(ii) of

this section.

(2) There is at least a simple majority of its membership who are

elected officials and/or employees of a general purpose unit of local

government who have been appointed to represent the government.

(i) Where appointment of local government members is not otherwise

provided for by the district organization charter or by-laws, each

county and major unit of local government which joins the proposed

district or EDD shall

[[Page 49683]]

name an elected official or an employee to represent it.

(ii) Where appropriate to their nongovernmental occupations, part-

time elected officials may also represent the principal economic

interests.

(3) There is at least one-fifth of its membership who are private

citizens who are neither elected officials of a general purpose unit of

local government nor employees of such a government who have been

appointed to represent that government.

(i) The district organization shall demonstrate that persons

fulfilling this requirement represent the interests of groups listed in

paragraphs (c)(1)(i) or (iii) of this section. Minority and low-income

representatives who meet these criteria may be counted toward the

fulfillment of the private citizen requirement.

(ii) Except where these private citizens are also selected as

minority/low-income representatives under paragraph (c)(1)(ii) of this

section, these representatives shall be appointed by the governing

bodies of the counties actively participating in the district

organization or as otherwise provided in the district organizational

charter and by-laws.

(d) Staff support is provided as follows:

(1) The district organization shall be assisted by a professional

staff drawn from qualified persons in planning, economics, business

administration, engineering and related disciplines.

(2) EDA may provide planning grants to economic development

districts to employ professional staff in accordance with part 307 of

this chapter.

(e) District organizations shall provide access for persons who are

not members of the district organization to make their views known

concerning ongoing and proposed district activities of the proposed

district or EDD in accord with the following requirements:

(1) The district organization shall conduct meetings open to the

public at least once a year and shall also publish the date and agenda

of the meeting at least four weeks in advance to allow the public a

reasonable time to prepare to participate effectively in the meetings.

(2) The district organization shall adopt a system of parliamentary

procedures to assure that board members and others have access to and

an effective opportunity to participate in the affairs of the proposed

district or EDD.

(3) Information should be provided sufficiently in advance of

public decisions to give the public adequate opportunity to review and

react to proposals. District organizations should seek to relate

technical data and other material to the public so that they may

understand the impact of public programs, available options and

alternative decisions.

Sec. 302.5 District organization functions and responsibilities.

(a) District organizations must arrange to carry out two classes of

functions and responsibilities: Those which every EDD must carry out

(paragraph (b) of this section), and those which EDDs receiving grants

must carry out (paragraph (c)).

(b) Subject to the requirements of Sec. 302.4, district

organizations are responsible for seeing that the following functions

are provided for on a continuing basis:

(1) Organizational actions, including:

(i) Arranging the legal form of organization which will be used;

(ii) Arranging for the membership of the governing body to meet

Sec. 302.4 requirements;

(iii) Recruiting staff to carry out the economic development

functions;

(iv) Establishing a management system;

(v) Contracting for services to carry out district functions;

(vi) Establishing and directing activities of economic development

subcommittees; and

(vii) Submitting reports as determined by EDA to comply with civil

rights requirements under part 317 of this chapter.

(2) Actions to develop and maintain the required district OEDP, and

any subsequent supplements or revisions, including:

(i) Preparing the analytic, strategic and implementation components

of the OEDP;

(ii) Identifying growth centers, i.e., economic development centers

and redevelopment centers, and any later boundary modifications;

(iii) Adopting the OEDP by formal action of the EDD governing

board;

(iv) Submitting the OEDP, any supplements or revisions and annual

reports for reviews by appropriate governmental bodies and interested

organized groups, and attaching dissenting opinions and comments

received; and

(v) Submitting to EDA an approvable OEDP.

(3) Preparation of proposals that EDA take actions which:

(i) Establish or change the designation status of the district or

its growth centers; or

(ii) Affect economic development projects available to the EDD.

(4) Coordination and implementation of economic development

activities in the district, including:

(i) Assisting other eligible units within the district to apply for

grant assistance for economic development purposes;

(ii) Carrying out economic development related research, planning,

implementation and advisory functions as are necessary and helpful to

the coordination with other local, State, Federal, and private

organizations, and as are necessary and helpful to the development and

implementation of the OEDP;

(iii) Coordinating the development and implementation of the OEDP

with other local, State, Federal and private organizations (including

minority organizations); and

(iv) Carrying out the annual OEDP plan for implementation.

Sec. 302.6 Coordination with state and local organizations.

EDA shall cooperate with state and local organizations in

accordance with Sec. 403 of PWEDA.

Sec. 302.7 Modification of district boundaries.

EDA (with concurrence of the State or States affected, unless such

concurrence is waived by EDA) may modify the boundaries of a district

consistent with standards for authorizing new districts set forth in

Sec. 302.1, if it determines that such modification will contribute to

a more effective program for economic development.

Sec. 302.8 Termination and suspension of district designation.

EDA may, upon 30 days prior notice, terminate the designation

status of an economic development district:

(a) When the district no longer meets the standards for designation

as set forth in Sec. 302.2(a), (b), (c), (d), (f), or (g); or

Sec. 302.2(e), except that district designation status may be continued

if those counties which would maintain their commitment to support

economic development activities are determined by EDA to meet the other

standards of Sec. 302.2 and the standards of Sec. 302.1;

(b) When a district has not maintained a currently approved OEDP in

accordance with part 303 of this chapter;

(c) When a district has requested termination (with the approval of

the State or States affected, unless such approval is waived by EDA);

or

(d) Where a funded district fails to comply with terms and

conditions of an EDA planning grant agreement.

[[Page 49684]]

Sec. 302.9 Benefits.

(a) Designation of an economic development district within which

the economic development center (EDC) is located is a prerequisite to

EDA providing financial assistance to an EDC.

(b) Projects in redevelopment areas which are located within

designated economic development districts and which actively

participate in the economic development district's OEDP planning

process are eligible for 10 percent bonus grants, if the project is

consistent with a currently approved district OEDP.

Subpart B--Standards for Designation, Modification, and Termination

of Economic Development Centers

Sec. 302.10 General standards for designation of economic development

centers.

EDA may designate an economic development center if such proposed

center:

(a) Has been identified and included in an approved district OEDP;

(b) Is recommended by the State or States affected. Written

concurrence from the State must be received by EDA;

(c) Is geographically and economically so related to the economic

development district that the economic development center's economic

growth may be expected to contribute significantly to the alleviation

of distress in the redevelopment areas of the district;

(d) Does not have a population in excess of 250,000 according to

the last preceding Federal census;

(e) May reasonably be expected to accelerate or maintain existing

rates of growth in terms of population, employment, and income;

(f) Has the prospect of developing a diversified economy providing

a wide range of health, educational, recreational, and cultural

facilities; a relatively large local market; a relatively large well-

trained labor force; and other similar qualities which encourage the

continuing growth of economic activities; and

(g) Is an active participant in the district economic development

program.

Sec. 302.11 Number of economic development centers per district.

EDA will designate the single leading growth point in an EDD as the

economic development center. However, additional centers may be

designated where unusual conditions exist in the district, such as for

example:

(a) Where the district contains a relatively large number of

redevelopment area residents who do not have reasonable commuting

access to any one economic development center; and

(b) Where the district contains several smaller growth points

rather than one leading economic development center.

Sec. 302.12 Boundaries of economic development centers and boundary

modifications.

(a) An economic development center is administratively defined as a

city or grouping of contiguous incorporated places. However, where

justified, boundaries may be extended to include adjoining minor civil

divisions or corridors of growth between centers.

(b) EDA may modify either the boundaries of an economic development

center or the number of economic development centers in a district

after giving notice and opportunity for comment to the State or States

affected, if such modification will contribute to a more effective

program.

Sec. 302.13 Termination and suspension of economic development

centers.

EDA may, upon 30 days prior notice to the interested State and

local agencies, terminate the designated status of an economic

development center when:

(a) The economic development center is no longer identified or

recommended for designation in an approved district OEDP;

(b) The economic development center no longer meets the standards

for designation, Sec. 302.11;

(c) It fails to actively pursue its role as an economic development

center in a manner that makes a significant impact on the performance

of the economic development district within which it is located; or

(d) The economic development center is no longer part of a

designated economic development district.

The termination of the designation of an economic development

district and termination of the designation of an economic development

center may be done concurrently.

Sec. 302.14 Redevelopment centers.

EDA may recognize a redevelopment center which meets the criteria

for economic development centers, but which falls in a designated

redevelopment area. There is no limit on the size of the population of

a redevelopment center.

Subpart C--Financial and Other Assistance to Economic Development

Centers and Districts

Sec. 302.15 Financial assistance to economic development centers.

EDA may provide financial assistance in accordance with the

criteria contained in part 305 of this chapter for projects in economic

development centers (EDCs) when:

(a) The project will further enhance the objectives of the OEDP of

the district in which the EDC is located;

(b) The project will enhance the relationship between the EDC and

the EDD, particularly the redevelopment areas; and

(c) The project will achieve one or more of the following:

(1) Encourage economic growth;

(2) Discourage out-migration from the district; and

(3) Have a beneficial impact on the district's redevelopment areas.

Sec. 302.16 Economic development center project characteristics.

Projects in EDCs shall have one or more of the following

characteristics:

(a) High job producing capability;

(b) Remove barriers of access to jobs for the target population;

(c) Ability to trigger further project activity;

(d) Ability to trigger further economic impact; or

(e) Provision of facilities and services deemed essential to

stimulate further growth, at a level above that normally required for

simple maintenance of a substantial community.

Sec. 302.17 Grant rate for economic development center projects.

The grant rate for projects under Title I of the Act in EDCs shall

not exceed 50 percent of the project costs.

Sec. 302.18 Financial assistance to redevelopment centers.

The eligibility of redevelopment centers for EDA financial

assistance, including the 10 percent bonus as provided for in this

Sec. 302.18 is the same as for any designated redevelopment area within

the district. The grant rate for the redevelopment center shall be

determined by the rate applicable to the redevelopment area within

which it is located.

Sec. 302.19 Assistance to economic development districts.

Pursuant to Title III of the Act, EDA may provide other assistance

to the district including:

(a) Technical assistance;

(b) Planning grants under part 307 of this chapter to assist the

district

[[Page 49685]]

organization in engaging a professional staff and carrying out its

planning activities; and

(c) Research assistance.

PART 303--OVERALL ECONOMIC DEVELOPMENT PROGRAM

Sec.

303.1 Purpose and scope.

303.2 Redevelopment area--District OEDPs.

303.3 Redevelopment area OEDP committee.

303.4 Initial OEDP.

303.5 Approval process for initial OEDPs.

303.6 The continuing program.

Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C.

3211); Department of Commerce Organization Order 10-4, as amended

(40 FR 56702, as amended).

Sec. 303.1 Purpose and scope.

(a) Approval of an OEDP is generally a prerequisite for designation

of a redevelopment area or economic development district; and

(b) A redevelopment area or economic development district, where

appropriate, is required to maintain a currently approved OEDP to

retain its previous designation for eligibility to receive EDA funds.

Sec. 303.2 Redevelopment area--District OEDP's.

Those qualified areas within existing economic development

districts may use the district's accepted OEDP in lieu of a separate

area OEDP when the following conditions have been met:

(a) The area actively participates in and supports the district

OEDP planning process.

(b) The area submits a letter or resolution to EDA signed by the

area's chief elected official, governing body, or the local OEDP

committee stating that the area will use the district OEDP.

Sec. 303.3 Redevelopment area OEDP committee.

(a) The primary purpose of this committee is to develop an ongoing

development program and to prepare the Area OEDP.

(1) OEDP committees are required only in areas not located in

districts. (District organization requirements are set forth at part

302 of this chapter and are recommended whenever practicable for other

areas.)

(b) OEDP committees shall be representative of the community so

that all viewpoints are considered in discussion and decisionmaking and

all available local skills are engaged in program formulation. To the

extent practicable, representation on these committees shall include

those from local government, business, industry, finance, agriculture,

the professions, organized labor, utilities, education, minorities, and

the unemployed or underemployed.

Sec. 303.4 Initial OEDP.

(a) The initial OEDP should contain the following information:

(1) Background on the area or district's economic development

situation, including for example a discussion of the district or

area's:

(i) Geography;

(ii) Population;

(iii) Labor force, including minority and female;

(iv) Natural and manmade resources;

(v) Economic and social activities; and

(vi) Environmental considerations.

(2) An examination of economic and community development,

opportunities and problems, including for example, identification of

current major activities of other organizations involved in economic

and community development and improvement; and

(3) A realistic action plan that will:

(i) Promote the district or area's economic progress;

(ii) Improve community facilities and services; and

(iii) Serve as a basis for a continuing planning and development

program.

(b) In addition to requirements in paragraph (a) of this section,

OEDPs for districts must contain the following:

(1) Proposed designation or recognition of at least one growth

center; and

(2) Description of the role of the proposed center in implementing

the district wide development program, particularly as it relates to

redevelopment areas.

Sec. 303.5 Approval process for initial OEDPs.

(a) The completed initial OEDP must be reviewed and commented upon

by appropriate:

(1) Governmental bodies;

(2) Interest groups; and

(3) EDA Regional Office.

(b) If the OEDP is approved, copies must be made available to

interested parties by the designated area or district.

(c) If the initial OEDP is inadequate, the EDA Regional Office will

contact the chairman of the OEDP committee by letter stating

deficiencies and allowing additional time for corrections to be made

and reviewed by EDA.

Sec. 303.6 The continuing program.

(a) After designation by EDA the area or district shall implement

the development program as updated and made known to EDA through annual

reports or revised OEDPs.

(b) No financial assistance for a designated area or district will

be awarded if it:

(1) Has not submitted a timely annual report;

(2) Has submitted a deficient annual report; or

(3) Has not corrected noted deficiencies.

(c) Revised OEDPs.

(1) A revised OEDP will be required if EDA determines that the

initial OEDP of the area or district is inadequate, or outdated.

(2) The area or district may choose to revise its initial OEDP if

the OEDP committee determines that a complete reassessment of the local

situation or a complete reassessment of the economic development

program is desirable.

(3) A revised OEDP may be submitted in lieu of the annual OEDP

progress report.

(4) Before any revised OEDP for a district is approved by EDA, it

shall be reviewed by appropriate:

(i) Governmental bodies;

(ii) Interest groups; and

(iii) EDA Regional Office.

PART 304--GENERAL SELECTION PROCESS AND EVALUATION CRITERIA

Sec.

304.1 General selection process and evaluation criteria for

programs under PWEDA.

304.2 Demonstration project assistance under Section 301(f) of

PWEDA.

Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C.

3211); Department of Commerce Organization Order 10-4, as amended

(40 FR 56702, as amended).

Sec. 304.1 General selection process and evaluation criteria for

programs under PWEDA.

EDA has established a streamlined and uniform selection process

based upon a short proposal and standardized application form with

attachments as applicable to each particular program. Additional

information if any, is set forth in program specific parts/sections.

EDA applies uniform evaluation criteria to all programs, as well as

evaluation criteria which are set forth in parts 305, 307 and 308 of

this chapter.

(a) The selection process is described as follows:

(1) For projects to be funded under parts 305, 307 and 308 of this

chapter proponents will submit forms to EDA during the selection

process as follows:

(i) There will be a brief proposal consisting of the face sheet

(SF-424) and two additional pages, including for example, budget, scope

of work and capability statements.

[[Page 49686]]

(ii) There will be a standard application for all programs which

will include an additional attachment for each program as appropriate.

(2) For projects to be funded under part 307--Subparts A, B, E and

F and parts 305 and 308 of this chapter, requirements are as follows:

(i) Initial contact with EDA will generally be through contact with

the appropriate Economic Development Representative (EDR) (see

Sec. 300.4 of this chapter) who will provide assistance as needed in

filling out the proposal as described in paragraph (a)(1) of this

section.

(ii) Generally, an EDR will evaluate proposals under Sec. 304.1(b)

before submitting them to the EDA Regional Office for review by a

project review committee (of at least three EDA officials).

(iii) If the proposal is acceptable under Sec. 304.1(b), EDA may

invite the submission of an application.

(iv) An invitation to submit an application does not assure EDA

funding.

(v) Applications are generally to be submitted within 30 days after

receipt of an invitation letter.

(3) For projects to be funded under part 307--Subparts C and D of

this chapter, requirements are as follows:

(i) Initial contact by proponents for information and assistance

concerning proposals will generally be with Washington, DC, at

locations noted in Secs. 307.13 and 307.18 of this chapter.

(ii) Generally, proposals will be reviewed for relevance and

quality by three or more technically knowledgeable EDA officials.

(iii) If the proposal is acceptable under Sec. 304.1(b), EDA may

invite proponents to submit applications.

(iv) An invitation to submit an application does not assure EDA

funding.

(v) Applications are generally to be submitted within 30 days after

receipts of an invitation letter.

(b) General evaluation criteria for projects to be funded under

parts 305, 307 and 308 of this chapter in addition to criteria noted in

such parts, are as follows: All proposals/applications will be screened

for conformance to statutory and regulatory requirements, the relative

severity of the economic problem of the area, the quality of the scope

of work proposed to address the problem, the merits of the

activity(ies) for which funding is requested, and the ability of the

prospective applicant to carry out the proposed activity(ies)

successfully.

Sec. 304.2 Demonstration project assistance under Section 301(f) of

PWEDA.

In addition to the selection of projects under the general

selection process as set forth in Sec. 304.1 above, EDA may also select

demonstration projects, as authorized under section 301(f) of PWEDA.

Demonstration projects involve the provision of funds, through grants,

loans or otherwise, to carry out the purpose of PWEDA. There are no set

forms or procedure for project selection, and proposals may be

submitted to EDA at any time. Demonstration projects must be within

redevelopment areas.

PART 305--PUBLIC WORKS AND DEVELOPMENT FACILITIES PROGRAM

Subpart A--General

Sec.

305.1 Purpose and scope.

305.2 Applicants.

305.3 Eligibility requirements.

305.4 Project requirements.

305.5 Selection process.

305.6 Evaluation criteria.

305.7 Award requirements.

Subpart B--Supplementary and Overrun Grants

305.8 Supplementary grants.

305.9 10 percent bonus supplemental grants.

305.10 Grants for construction cost increases.

305.11 Disbursements of funds for grants.

305.12 Variance in cost of grant projects.

305.13 Amendments and changes.

305.14 Final inspection.

305.15 Contract and subcontract clauses.

Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C.

3211); Department of Commerce Organization Order 10-4, as amended

(40 FR 56702, as amended).

Subpart A--General

Sec. 305.1 Purpose and scope.

The purpose of the Public Works Program is to assist communities

with the funding of public works and development facilities that

contribute to the creation or retention of primarily private sector

jobs and alleviation of unemployment and underemployment. Such

assistance is designed to help communities achieve lasting improvement

by stabilizing and diversifying local economies and by improving local

living conditions and the economic development of the area. Alleviation

of unemployment and underemployment among residents of the project area

is a primary focus of this program.

Sec. 305.2 Applicants.

Eligible applicants under this program include:

(a) States, or political subdivisions thereof;

(b) American Indian tribes;

(c) The Federated States of Micronesia, the Republic of the

Marshall Islands, the Republic of Palau, the Commonwealth of Puerto

Rico, the Virgin Islands, Guam, American Samoa and the Commonwealth of

the Northern Mariana Islands; and

(d) A private or public non-profit organization or association

representing any redevelopment area or part thereof, provided the EDA

project is located within an eligible EDA area represented by such non-

profit organization or association.

(e) When the applicant is not a State, American Indian tribe or

other general-purpose governmental authority, the applicant must afford

the appropriate local governmental authority of the area a minimum of

15 days in which to review and comment on the proposed project. The

applicant shall furnish with the application a copy of such comments,

or a statement of the efforts made to obtain them together with an

explanation of the actions taken to address any comments received.

Sec. 305.3 Eligibility requirements.

(a) Other than those areas designated under PWIP, applicant areas,

including Special Impact Areas (SIAs) must have a current EDA approved

Overall Economic Development Program (OEDP).

(b) Political entities claiming eligibility under OEDPs developed

by multicounty economic development organizations are expected to

continue to participate actively in the organization.

(c) Non-profit organizations or associations must meet the

following requirements:

(1) Such non-profit organizations or associations must represent a

redevelopment area or part thereof, if EDA determines that such

applicant is potentially capable of furthering the objectives of the

economic development program of the area in which it is located;

(2) To the extent possible, non-profit applicants are urged to seek

the cooperation and support of units of local government; and

(3) When deemed appropriate by EDA, have the local government as

co-applicant for EDA assistance. This ensures the financial stability

and continuity of the project in the event that the non-profit entity

finds itself in a position of not having the financial resources to

administer, operate, and maintain the EDA assisted facility in a proper

and efficient manner consistent

[[Page 49687]]

with the provisions of part 314 of this chapter.

Sec. 305.4 Project requirements.

(a) Public works projects other than PWIP projects must meet the

following requirements:

(1) Be consistent with the EDA approved OEDP for the area in which

it is or will be located, and have broad community support;

(2) Improve opportunities for the successful establishment or

expansion of industrial or commercial facilities in the area where such

project will be located;

(3) The project will not result in the increase of goods or

services beyond the demand for such goods or services existing or to be

created in the market area;

(4) The project fulfills a pressing need of the area or part

thereof, in which it is located;

(5) There is adequate local matching share; and

(6) The project benefits the long-term unemployed and members of

low-income families who are residents of the area to be served.

(b) PWIP projects must create immediate useful work for the

unemployed and underemployed residents in the project area.

Sec. 305.5 Selection process.

Projects will be selected in accordance with Sec. 304.1 of this

chapter.

Sec. 305.6 Evaluation criteria.

In addition to and/or as an elaboration of the evaluation criteria

set forth in part 304 of this chapter of this chapter and to the extent

practicable, evaluations are made on the basis of whether the proposed

project:

(a) Assists in creating or retaining private sector jobs (primarily

in the near term) and assists in the creation of additional long-term

employment opportunities (provided the jobs have not been transferred

from another commuting area of the United States) and will result in

low costs-per-job in relation to total EDA costs, evidenced for example

by:

(1) Commitments to create such jobs;

(2) Marketing; and

(3) Financial capabilities of the applicant.

(b) Is supported by significant private sector investment.

(c) Maximizes the amount of local, state or other Federal funding

that is available.

(d) Is likely to be started and completed in a timely fashion.

(e) If located in an EDC with a stable economy and little distress,

an employment plan is required that explains how new employment

opportunities for residents of nearby highly distressed redevelopment

areas will be provided.

(f) To the extent possible, factors that will be considered in the

evaluation of PWIP projects include whether the proposed project:

(1) Improves the economic or community environment in areas of

severe economic distress;

(2) Includes an acceptable plan for hiring the unemployed and

underemployed from the project area to work on construction of the

project;

(3) Assists in providing long-term employment opportunities or

other economic benefits for the unemployed and underemployed in the

project area;

(4) Primarily benefits low-income families by providing essential

community services, or satisfying a pressing public need;

(5) Involves construction which can be started (normally within 120

days after affirmation of the award), and completed quickly (normally

within one year) preferably without early construction start; or

(6) Has significant labor intensity (i.e., the proportion of labor

costs to the total project costs).

Sec. 305.7 Award requirements.

(a) Projects are expected to be completed in a timely manner

consistent with the nature of the project. Normally, the maximum period

for any financial assistance that is provided shall be not more than 5

years from the fiscal year of the award.

(b) Matching Requirements are as follows:

(1) EDA may provide direct grants not to exceed 50 percent of the

estimated cost of the project;

(2) Under certain circumstances supplementary grants to augment the

direct grant may be provided up to a maximum of 80 percent of the

eligible project costs, though waivers may be permitted in accordance

with Section 101(c) of the Act. Supplementary grant assistance to

finance over 50 percent of the project costs will be approved by EDA

only for projects in areas of high distress. Decisions on such

supplementary grant assistance will be based on the nature of the

project, the amount of fair user charges or other revenues the project

may reasonably be expected to generate, and the relative needs of the

area;

(3) Applicants are required to provide the local share from

acceptable sources;

(4) The local share need not be in hand at the time of application;

however, the applicant must assure EDA that such share is committed and

will be available at the time the award is accepted; and

(5) The local share must not be encumbered in any way that would

preclude its use consistent with the requirements of the grant.

Subpart B--Supplementary and Overrun Grants

Sec. 305.8 Supplementary grants.

(a) In the case of projects for which EDA supplements direct grants

of other Federal agencies, the total Federal funding may be up to 80

percent of the project's costs (except as allowed by paragraph (b) (1),

(2) or (3) of this section).

(b) Based upon the kind of project, the severity of distressed

factors and revenue above and beyond the amount needed to amortize the

local share, supplemental grants in excess of 50% may be awarded by EDA

in accordance with the following Table:

------------------------------------------------------------------------

Maximum

Projects grant rates

(percent)

------------------------------------------------------------------------

(1) Projects of American Indian Tribes which are concerned

with general economic development will be given special

consideration, and the Assistant Secretary may reduce or

waive the non-Federal share for such projects............. 100

(2) Projects located in redevelopment areas designated

under section 401(a)(6) of the act, applied for by States

or political subdivision thereof which have demonstrated

they have exhausted their effective taxing and borrowing

capacity.................................................. 100

(3) Projects located in redevelopment areas designated

under section 401(a)(6) of the Act applied for by

community development corporations (as defined in 13 CFR

300.2) which have demonstrated they have exhausted their

effective borrowing capacity.............................. 100

(4) Projects located in redevelopment areas designated

under section 401(a)(6) of the Act as special impact areas

and which were not designated under section 401(a)(6) as a

result of the October 12, 1976 amendment of section

401(a)(8) of the Act, but which cannot meet the

requirement of paragraph (b)(2) of this section........... 80

[[Page 49688]]

(5) Projects located in areas designated under Title IV of

the Act which have been declared disaster areas by the

President of the United States under the Disaster Relief

and Emergency Assistance Act (Pub. L. 100-707) as amended

provided:................................................. ...........

(i) Such areas retain their EDA designations, and

(ii) No more than one year has elapsed since the date

of such area's disaster area designation.............. 80

(6) Projects located in areas designated under Title IV of

the Act in which the median annual family income is $7,412

or below, or the average unemployment rate for the

preceding 24 months is 12 percent or higher............... 80

(7) Projects located in areas designated under Title IV of

the act in which the median annual family income is $7,413

to $8,261, or the average unemployment rate for the

preceding 24 months is 10 percent to 11.9 percent......... 70

(8) Projects located in areas designated under Title IV of

the Act in which the median annual family income is $8,262

to $9,110, or the average unemployment rate for the

preceding 24 months is 8 percent to 9.9 percent........... 60

(9) Projects located in areas designated under section

401(a)(6) of the Act solely on the basis of the October

12, 1976 amendment of section 401(a)(8) of the Act by Pub.

L. 94-487................................................. 50

(10) Projects in all other areas........................... 50

------------------------------------------------------------------------

(c) The applicable maximum grant eligibility rate for projects

located in EDDs pursuant to section 403(j) of the Act shall be the same

as the grant rates for the redevelopment areas for which such projects

are determined to be a direct and substantial benefit.

(d) Notwithstanding paragraph (c) of this section, an applicant

shall be eligible for the highest applicable maximum grant rate in

effect between the time EDA invites the application and the time the

project is approved.

(e) Where municipalities of over 25,000 population qualify for

designation under Title IV of the Act and part 302 of this chapter, but

are located in areas already designated thereunder, such municipalities

are eligible for the maximum grant under paragraph (b) of this section

as if they were designated independent of the existing redevelopment

area. In determining the maximum grant rate for such municipalities,

EDA will use the appropriate statistical information for the

municipality involved, provided that consideration of such information

will work to the municipality's advantage.

Sec. 305.9 Ten percent bonus supplemental grants.

(a) Subject to the limitation that the maximum Federal share for

any project may not exceed 80 percent of the aggregate project cost or

100 percent for projects listed in Sec. 305.8(b)(1)-(3), EDA may

increase the amount of grant assistance for projects within

redevelopment areas by an amount not to exceed 10 percent of the

aggregate cost of any such project if:

(1) The redevelopment area is situated within a designated economic

development district (EDD) and is actively participating in the

economic development activities of the district; and

(2) The project is consistent with a currently approved district

OEDP.

(b) Projects assisted in districts outside redevelopment areas

pursuant to section 403(j) of the Act shall not be eligible for 10

percent bonus grants under this section.

Sec. 305.10 Grants for construction cost increases.

(a) For the purposes of this section, construction cost increases

means those costs which the applicant incurs or will incur in

completing the project according to the original designs and

specifications beyond the project costs set forth in the grant

agreement.

(b) EDA may increase the amount of any grant made under the

authority of Title I of the Act when the following conditions are met:

(1) The project is being or will be constructed in accordance with

the original designs and specifications or in accord with final plans

and specifications which reflect the original intent and purpose;

(2) The project's total cost has increased because of increases in

costs based on the original designs and specifications (or based on

final plans and specifications reflecting the original intent and

purpose); and

(3) The project has incurred construction cost increases after the

grant was made but prior to completion of the project.

(c) Limitations on amount of grants are as follows:

(1) The amount of a grant made under paragraph (b) of this section

may be equal to an amount based on the percentage increase in the costs

referred to in paragraph (b)(2) of this section, as determined by EDA;

and

(2) A grant for construction cost increases may not be in an amount

which would cause the Federal share of the project's costs to exceed

the percentage originally provided for in the grant agreement.

Sec. 305.11 Disbursements of funds for grants.

(a) Though disbursements of funds for grants are generally made

upon application for reimbursement, advances of funds are allowable at

the discretion of EDA. Disbursements will be made when the following

conditions have been met:

(1) After execution of all contracts required for the completion of

the project. This condition may be waived by EDA if the grantee can

demonstrate that enforcement of the condition would place an undue

burden on it;

(2) For itemized and certified eligible costs incurred, as

substantiated by such documentary evidence as EDA may require;

(3) For the percentage of EDA participation, but in no event for

more than the total sum stated in the financial assistance award

accepted by the grantee;

(4) Upon such evidence as EDA may require that grantee's

proportionate share of funds is on deposit;

(5) After a determination by EDA that all applicable conditions of

the grant have been met; and

(6) After meeting such other requirements as EDA shall establish.

(b) Disbursements are generally made in installments, based upon

grantee's actual rate of disbursement in accordance with the grant

rate.

Sec. 305.12 Variance in cost of grant projects.

(a) If the total eligible costs are equal to or exceed the amount

stated in the financial assistance award, disbursements will be the

amount identified in the financial assistance award.

(b) If the total eligible project costs are less than the amount

stated in the financial assistance award, the disbursements will be

determined by multiplying the total eligible project costs by the grant

rate percentage.

(c) The grant rate percentage is determined by dividing the total

[[Page 49689]]

estimated project costs stated in the financial assistance award into

the amount of EDA funding provided in the grant. For example, if the

financial assistance award states that EDA will provide $50,000 for a

project estimated to cost $100,000, the grant rate is 50% ($50,000

divided by $100,000). If the actual eligible project costs were

$100,000, EDA would provide $50,000. If the actual eligible project

costs were $120,000, EDA would still provide $50,000. If the actual

eligible project costs were only $80,000, EDA would provide $40,000

(50% x $80,000).

Sec. 305.13 Amendments and changes.

(a) Requests by grantees for amendments to a grant shall be

submitted in writing to the EDA Regional Office for processing, and

shall contain such information and documentation necessary to justify

the request.

(b) All change orders are subject to EDA approval. Any changes made

without prior approval by EDA are made at grantee's own risk of

suspension or termination of the project.

(c) Changes of project scope will not be approved by EDA.

Sec. 305.14 Final inspection.

A final inspection will be scheduled by the grantee, with EDA

concurrence and/or participation, when the project has been completed

and is functional and when all deficiencies have been corrected.

Sec. 305.15 Contract and subcontract clauses.

Grantees must see that grantees' and subgrantees' contracts contain

all required clauses in accordance with 15 CFR part 24, Uniform

Administrative Requirements for Grants and Cooperative Agreements to

State and Local Governments, or OMB Circular A-110, Uniform

Administrative Requirements for Grants and Agreements with Non-profit

Organizations, whichever is applicable.

PART 306--[RESERVED]

PART 307--LOCAL TECHNICAL ASSISTANCE, UNIVERSITY CENTER TECHNICAL

ASSISTANCE, NATIONAL TECHNICAL ASSISTANCE, RESEARCH AND EVALUATION

AND PLANNING

Subpart A--Local Technical Assistance

Sec.

307.1 Purpose and scope.

307.2 Applicants.

307.3 Selection process.

307.4 Evaluation criteria.

307.5 Award requirements.

Subpart B--University Center Program

307.6 Purpose and scope.

307.7 Applicants.

307.8 Selection process.

307.9 Evaluation criteria.

307.10 Award requirements.

Subpart C--National Technical Assistance

307.11 Purpose and scope.

307.12 Applicants.

307.13 Selection process.

307.14 Evaluation criteria.

307.15 Award requirements.

Subpart D--Research and Evaluation

307.16 Purpose and scope.

307.17 Eligible applicants.

307.18 Selection process.

307.19 Evaluation criteria.

307.20 Research topics and structure.

307.21 Award requirements.

Subpart E--Economic Development Districts, American Indian Tribes and

Redevelopment Areas Economic Development Planning Grants

307.22 Purpose and scope.

307.23 Definition.

307.24 Applicants.

307.25 Selection process.

307.26 Evaluation criteria.

307.27 Award requirements.

307.28 Limitations.

Subpart F--State and Urban Economic Development Planning Grants

307.29 Purpose and scope.

307.30 Applicants.

307.31 Selection process.

307.32 Evaluation criteria.

307.33 Award requirements.

Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C.

3211); Department of Commerce Organization Order 10-4, as amended

(40 FR 56702, as amended).

Subpart A--Local Technical Assistance

Sec. 307.1 Purpose and scope.

Funds are awarded to eligible applicants to support the initiation

and implementation of area, state, and regional development efforts

designed to alleviate economic distress. This program is designed to

help economically distressed areas to address local economic

development problems through specific project efforts.

Sec. 307.2 Applicants.

Eligible applicants for Local Technical Assistance grants or

cooperative agreements include:

(a) Public or private non-profit organizations;

(1) National, state, area, district, or local organizations; and/or

(2) Accredited educational institutions or non profit entities

representing them.

(b) Public sector organizations;

(1) American Indian tribes;

(2) Local governments; and

(3) State agencies.

(c) Other applicants such as private individuals, partnerships,

firms, and corporations may be considered if the general public will

benefit from the project. Technical assistance grant funds may not be

used to start or expand a private business.

Sec. 307.3 Selection process.

Projects will be selected in accordance with Sec. 304.1 of this

chapter.

Sec. 307.4 Evaluation criteria.

In addition to and/or as an elaboration of evaluation criteria set

forth in part 304 of this chapter and to the extent practicable,

evaluation criteria should include whether the project:

(a) Strengthens the capability of state and local organizations and

institutions, including non-profit development groups, to undertake and

promote effective economic development programs targeted to people and

areas of distress;

(b) Benefits distressed areas;

(c) Diversifies distressed economies;

(d) Demonstrates innovative approaches to stimulating economic

development in depressed areas;

(e) Is consistent with the EDA approved Overall Economic

Development Program (OEDP) for the area in which the project is

located; and

(f) Presents a reasonable, itemized budget.

Sec. 307.5 Award requirements.

(a) Assistance will be for the period of time required to complete

the scope of the work. This typically does not exceed twelve months.

(b) EDA will provide grants and cooperative agreements not to

exceed 75 percent of the proposed project costs. Applicants are

expected to provide the remaining share. EDA may waive all or part of

the 25 percent share of technical assistance grants if it determines

that the nonfederal share is not reasonably available because of the

critical nature of the situation requiring technical assistance, or for

other good causes.

(c) Quarterly financial reports, semi-annual progress reports and

project products will be specified in the Special Award Conditions of

the grant.

Subpart B--University Center Program

Sec. 307.6 Purpose and scope.

Funds under the University Center Technical Assistance Program help

institutions of higher education in using their own and other resources

to address the economic development problems and opportunities of their

service area. The University Center Technical Assistance Program is

designed to help

[[Page 49690]]

in improving the economies of distressed areas.

Sec. 307.7 Applicants.

Eligible applicants for University Center Technical Assistance

grants or cooperative agreements include public and private accredited

educational institutions and non-profit entities representing them. In

certain circumstances, other applicants proposing projects that benefit

the University Center Technical Assistance Program may be considered.

Sec. 307.8 Selection process.

(a) Projects will be selected in accordance with Sec. 304.1 of this

chapter.

(b) The concurrence of EDA in Washington, DC, is required for the

selection of all new University Centers.

Sec. 307.9 Evaluation criteria.

In addition to and/or as an elaboration of evaluation criteria set

forth in part 304 of this chapter and to the extent practicable,

evaluation criteria include whether the project:

(a) Has the commitment of the highest management levels of the

sponsoring institution;

(b) Provides evidence of adequate nonfederal financial support,

either from the sponsoring institution or other sources;

(c) Outlines activities consistent with the expertise of the

proposed staff, the academic programs, and other resources available

within the sponsoring institution;

(d) Presents a reasonable budget;

(e) Documents past experience of the sponsoring institution in

operating technical assistance programs; and

(f) Adds to the geographic distribution of University Centers

across the country.

Sec. 307.10 Award requirements.

(a) Assistance will be for the period of time required to complete

the scope of the work. This typically does not exceed twelve months.

(b) EDA will provide grants and cooperative agreements not to

exceed 75 percent of the proposed project costs. Applicants are

expected to provide the remaining share. EDA may waive all or part of

the 25 percent share of technical assistance grants if it determines

that the nonfederal share is not reasonably available because of the

critical nature of the situation requiring technical assistance or for

other good cause.

(c) Indirect costs are limited to 20 percent of the Federal and

nonfederal shares. EDA encourages applicants to absorb all indirect

costs for this program.

(d) Quarterly financial reports, semi-annual progress reports and

project products will be specified in the Special Award Conditions of

the grant.

Subpart C--National Technical Assistance

Sec. 307.11 Purpose and scope.

Funds under the National Technical Assistance Program are awarded

to assure the successful initiation and implementation of development

efforts designed to alleviate economic distress. This program is

designed to help alleviate or prevent conditions of excessive

unemployment or underemployment and problems of economically distressed

areas.

Sec. 307.12 Applicants.

Eligible applicants for National Technical Assistance grants or

cooperative agreements include:

(a) Public or private non-profit organizations, including:

(1) Non-profit national, state, area, district, or local

organizations; and

(2) Accredited educational institutions or non-profit entities

representing them;

(b) Public sector organizations and Native American organizations,

including:

(1) American Indian tribes;

(2) Local governments; and

(3) State agencies.

(c) Other applicants such as private individuals, partnerships,

firms, and corporations may be considered if the general public will

benefit from the project. Technical assistance grant funds may not be

used to start or expand a private business.

Sec. 307.13 Selection process.

(a) Projects will be selected in accordance with Sec. 304.1 of this

chapter.

(b) EDA may, during the course of the year, identify specific

economic development technical assistance activities it wishes to have

conducted. Organizations and individuals interested in being invited to

respond to Solicitations of Applications (SOAs) to conduct such work

should submit information on their capabilities and experience to the

Director, Technical Assistance and Research Division, Economic

Development Administration. See part 300 of this chapter.

Sec. 307.14 Evaluation criteria.

In addition to and/or as an elaboration of the evaluation criteria

described in part 304 of this chapter and to the extent practicable,

evaluation criteria include whether the project:

(a) Does not depend upon further EDA or other Federal funding

assistance to achieve results;

(b) Strengthens the capability of state and local organizations and

institutions, including non-profit development groups, to undertake and

promote effective economic development programs targeted to people and

areas of distress;

(c) Benefits severely distressed areas including both rural and

urban counties and communities;

(d) Diversifies distressed economies;

(e) Demonstrates innovative approaches to stimulating economic

development in depressed areas; and

Sec. 307.15 Award requirements.

(a) Assistance will be for the period of time required to complete

the scope of the work. This typically does not exceed twelve months.

(b) EDA will provide grants and cooperative agreements not to

exceed 75 percent of the proposed project costs. Applicants are

expected to provide the remaining share. EDA may waive all or part of

the 25 percent share of technical assistance grants if it determines

that the nonfederal share is not reasonably available because of the

critical nature of the situation requiring technical assistance or for

other good cause.

(c) Quarterly financial reports, semi-annual progress reports and

project products will be specified in the Special Award Conditions of

the grant.

Subpart D--Research and Evaluation

Sec. 307.16 Purpose and scope.

The purposes of research and evaluation of projects are as follows:

(a) To determine the causes of unemployment, underemployment,

underdevelopment, and chronic depression in various areas and regions

of the Nation;

(b) To assist in the formulation and implementation of national,

state, and local programs that will raise employment and income levels

and otherwise produce solutions to problems resulting from the above

conditions; and

(c) To evaluate the effectiveness of programs, projects, and

techniques used to alleviate economic distress and promote economic

development.

Sec. 307.17 Eligible applicants.

Eligible applicants for Research and Evaluation grants or

cooperative agreements include:

(a) Private individuals;

(b) Partnerships;

(c) Corporations;

(d) Associations;

(e) Colleges and universities; and

(f) Other suitable organizations with expertise relevant to

economic

[[Page 49691]]

development research. Research funds may not be used to start or expand

a private business.

Sec. 307.18 Selection process.

(a) Projects will be selected in accordance with Sec. 304.1 of this

chapter.

(b) EDA may use solicitations of applications as follows: EDA may

identify particular projects, including program evaluations it wishes

to have conducted. Organizations and individuals interested in being

invited to respond to Solicitations of Applications (SOAs) to conduct

such studies should submit information on their capabilities and

experience. See Sec. 300.4 of this chapter.

Sec. 307.19 Evaluation criteria.

In addition to and/or as an elaboration of the evaluation criteria

set forth in part 304 of this chapter and to the extent practicable,

EDA will use the following criteria to evaluate research and evaluation

proposals:

(a) Suitability of the subject;

(b) Potential usefulness of the research to state and local

economic development officials and specialists;

(c) General quality and clarity of the proposal;

(d) Soundness and completeness of the research methodology; and

(e) Total cost and value of proposed product in relation to cost.

Sec. 307.20 Research topics and structure.

(a) EDA is interested in receiving proposals dealing with:

(1) Employment and unemployment;

(2) Income and poverty;

(3) Rural and nonmetropolitan economic development;

(4) Urban economic development; or

(5) Regional and local growth and competitiveness.

(b) Requests should be for specific, well-defined, one-time

research projects. EDA research grants are not intended for support of

continuing programs (permanent research programs, publication and

information programs, periodic forecasts, etc.), or for nonresearch

activities.

(c) EDA normally prefers research of broad geographic scope

covering the whole country or a large multistate region, as opposed to

research covering in declining order of preference:

(1) A small multistate region;

(2) A state;

(3) A multicounty area; or

(4) A single city or county.

(d) Preference will normally be given to practical cause-and-effect

research (including hypothesis testing models) and descriptive

analyses, as opposed to theoretical studies, forecasting models, and

``how to'' guides.

(e) The NOFA may announce additional areas of special research

interest for that year.

Sec. 307.21 Award requirements.

(a) Assistance under this program will normally be for a period not

exceeding 15 months.

(b) EDA will provide grants and cooperative agreements covering up

to 100 percent of project costs.

Subpart E--Economic Development Districts, American Indian Tribes

and Redevelopment Areas Economic Development Planning Grants

Sec. 307.22 Purpose and scope.

The primary objective of planning assistance for administrative

expenses is to support the formulation and implementation of economic

development planning programs designed to create or retain permanent

jobs and income, particularly for the unemployed and underemployed in

the most distressed areas. Planning activities supported by these

administrative funds must be part of a permanent and continuous process

involving significant leadership by public officials and private

citizens.

Sec. 307.23 Definition.

(a) Category A grants means those made to Economic Development

Districts and Redevelopment Areas; and

(b) Category B grants means those made to American Indian Tribes.

Sec. 307.24 Applicants.

Eligible applicants are economic development district

organizations, redevelopment areas, organizations representing

redevelopment areas (or parts of such areas), American Indian tribes,

organizations representing multiple American Indian tribes, the

Federated States of Micronesia, the Republic of the Marshall Islands,

the Republic of Palau, the Commonwealth of Puerto Rico, the U.S. Virgin

Islands, Guam, American Samoa, and the Commonwealth of the Northern

Mariana Islands.

Sec. 307.25 Selection process.

EDA invites currently funded grantees to apply if they are in

compliance with their current financial assistance awards. EDA will

select projects in accordance with Sec. 304.1 of this chapter.

Sec. 307.26 Evaluation criteria.

(a) In addition to and/or as an elaboration of the evaluation

criteria set forth in part 304 of this chapter and to the extent

practicable, EDA will evaluate applicants on the following:

(1) Quality of the proposed work program;

(2) Management and staff capacity and qualifications;

(3) Involvement of the local leadership in the applicant's economic

development activities; and

(b) Previously funded grantees, in addition to the requirements of

paragraph (a) of this section, will be evaluated on the basis of the

quality of their past performance.

Sec. 307.27 Award requirements.

(a) Assistance will normally be for a 12-month period.

(b) Grant assistance may be provided for up to 75 percent of

project costs for Category A grants with the applicant required to

provide the remaining share from non-federal sources. Category B grant

assistance may be provided for up to 100 percent of project costs.

(c) EDA will make annual determinations of satisfactory

performance, and periodically conduct on-site performance appraisals.

Sec. 307.28 Limitations.

(a) Except as set forth in paragraph (b) of this section, no

planning grants to economic development district organizations will be

extended unless at least three-fourths of the counties within the

district boundaries indicate, by resolution or other appropriate

document, their commitment to support the activities of the district.

(b) Where a sufficient number of counties have withdrawn from the

district to make compliance with this three-fourths requirement

impossible or unreasonable, EDA may fund the continuing committed

counties in the name of the original district organization if EDA

determines that the remaining counties can meet the requirements for

authorizing and designating economic development districts, as set

forth at part 302 of this chapter.

Subpart F--State and Urban Economic Development Planning Grants

Sec. 307.29 Purpose and scope.

Planning assistance is to strengthen significant economic

development planning capability and initiatives of eligible applicants

to ensure a more productive use of available resources in reducing the

effects of economic problems by formulation and implementation of an

economic development program. Assistance must be part of a continuous

process involving significant local leadership from public officials

and private citizens and should include efforts to reduce

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unemployment and increase incomes. These efforts should be systematic

and coordinated when applicable, with other planning organizations in

the area, and should strengthen the planning capabilities of

applicants.

Sec. 307.30 Applicants.

Eligible applicants under this program are as follows:

(a) Governors or agencies so designated by Governors of States;

(b) Chief executive officers of cities or counties, or their

designated agencies or organizations; and

(c) Sub-state planning and development organizations (including

redevelopment areas and economic development districts).

Sec. 307.31 Selection process.

Projects will be selected in accordance with Sec. 304.1 of this

chapter.

Sec. 307.32 Evaluation criteria.

In addition to and/or as an elaboration of the evaluation criteria

set forth in part 304 of this chapter and to the extent practicable,

EDA will evaluate projects on the following:

(a) Overall quality of the proposal;

(b) Extent to which the proposed planning activities are expected

to:

(1) Impact upon the service area's economic development needs; and

(2) Address the problems of the unemployed and underemployed of the

area, including minorities, workers displaced by plant closings, etc.;

(c) The proximity of the performing office to the chief executive

(i.e., likelihood that the activities will have a significant influence

on the policy and decision making process);

(d) Past performance of currently or formerly funded grantees, when

applicable;

(e) The amount of local participation provided as matching share to

the Federal funds; and

(f) Other characteristics, such as involvement of the private

sector businesses and professional groups in the proposed activities,

and particularly for states, the innovativeness of the proposed

approach and replicability of the model process or results.

Sec. 307.33 Award requirements.

(a) Assistance will be for the period of time required to complete

the work. This period is normally 12 to 18 months.

(b) Grant assistance may be provided for up to 75 percent of

project costs. Applicants will be required to provide the remaining

share, preferably in cash.

PART 308--REQUIREMENTS FOR GRANTS UNDER THE TITLE IX ECONOMIC

ADJUSTMENT PROGRAM

Sec.

308.1 Purpose and scope.

308.2 Use of economic adjustment grants.

308.3 Eligible applicants.

308.4 Eligible areas.

308.5 Selection process.

308.6 Evaluation factors.

308.7 Award requirements.

Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C.

3211); Department of Commerce Organization Order 10-4, as amended

(40 FR 56702, as amended).

Sec. 308.1 Purpose and scope.

(a) The Economic Adjustment Program addresses the particular needs

of areas experiencing changes in their economic situation which are

causing, or threaten to cause, serious structural damage to the

underlying economic base. Such changes may occur suddenly or over time,

for example, as a result of industrial or corporate restructuring in

response to technological advancements or changes in the marketplace,

new Federa

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