Rural Business Enterprise Grants and Television Demonstration Grants; Technical Assistance and Training Grants; Nonprofit National Corporations Loan and Grant Program

DEPARTMENT OF AGRICULTURE

Rural Housing and Community Development Service

Rural Business and Cooperative Development Service

Rural Utilities Service

Consolidated Farm Service Agency

7 CFR Parts 1942 and 1980

RIN 0575-AA12

Rural Business Enterprise Grants and Television Demonstration

Grants; Technical Assistance and Training Grants; Nonprofit National

Corporations Loan and Grant Program

AGENCIES: Rural Housing and Community Development Service, Rural

Business and Cooperative Development Service, Rural Utilities Service,

and Consolidated Farm Service Agency, USDA.

ACTION: Final rule.

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

SUMMARY: The Rural Business and Cooperative Development Service (RBCDS)

and Rural Utilities Service (RUS) amend the agencies' policies and

procedures governing the administration of programs which authorize

technical assistance as an eligible grant purpose. This action is

necessary to implement legislation that prohibits duplication of

technical assistance grant funding provided by the Forest Service (FS).

The intended effect of this action is to require that grant funds may

not be used to pay for technical assistance which duplicates assistance

provided under an action plan funded by the FS under the National

Forest-Dependent Rural Communities Economic Diversification Act during

5 continuous years from the date of grant approval by the FS.

EFFECTIVE DATE: October 11, 1995.

FOR FURTHER INFORMATION CONTACT: Jennifer Barton, Loan Specialist,

Community Facilities Division, U.S. Department of Agriculture, Room

6304, South Agriculture Building, 14th Street and Independence Avenue

SW., Washington D.C. 20250-0700, telephone (202) 720-1504.

SUPPLEMENTARY INFORMATION:

Classification

This rule has been determined to be not significant for purposes of

Executive Order 12866 and, therefore, has not been reviewed by the

Office of Management and Budget.

Environmental Impact

This document has been reviewed in accordance with 7 CFR part 1940,

subpart G, ``Environmental Program.'' It has been determined that this

action does not constitute a major Federal action significantly

affecting the quality of the human environment, and in accordance with

the National Environmental Policy Act of 1969, Pub. L. 91-190, an

Environmental Impact Statement is not required.

Executive Order 12778

The proposed regulation has been reviewed in light of Executive

Order 12778 and meets the applicable standards provided in sections

2(a) and 2(b)(2) of that Order. Provisions within this part which are

inconsistent with state law are controlling. All administrative

remedies pursuant to 7 CFR part 1900, subpart B, must be exhausted

prior to filing suit.

Paperwork Reduction Act

The information collection or recordkeeping requirements contained

in these regulations have been approved by the Office of Management and

Budget (OMB) under the provisions of 44 U.S.C. chapter 35 and have been

assigned OMB control numbers 0575-0132, 0575-0123, and 0575-0121, in

[[Page 52839]]

accordance with the Paperwork Reduction Act of 1980. This final rule

does not revise or impose any new information collection or

recordkeeping requirement from those approved by OMB.

Background

RBCDS and RUS are implementing section 2375(e) of Pub. L. 101-624,

which requires the Secretary of Agriculture to ensure that no

substantially similar geographical or defined local area in a state

receives a grant for technical assistance to an economically

disadvantaged community from the FS and a grant for technical

assistance under a designated rural development program as defined in

section 365(b)(2) of the Consolidated Farm and Rural Development Act,

during any continuous 5-year period.

Discussion of Comments

On March 16, 1994, a proposed rule was published in the Federal

Register (59 FR 12200) providing for a 30-day review and comment period

ending April 15, 1994. One comment was received.

The respondent had misinterpreted the proposed rule change to read

that the rule change prohibits an economically disadvantaged community

from receiving technical assistance grants from the FS, RBCDS and RUS

during 5 continuous years. However, the change prohibits grant funds to

an economically disadvantaged community for duplicate technical

assistance. Grant funds cannot be made available from FS, RBCDS and RUS

to an economically disadvantaged community for the same purpose during

5 continuous years. Therefore, the final rule remains unchanged from

the proposed rule.

Programs Affected

The programs are listed in the Catalog of Federal Domestic

Assistance under Numbers 10.769, Rural Development Grants; 10.761,

Technical Assistance and Training Grants; and 10.762, Solid Waste

Management Grants. The 10.769 program is subject to the provisions of

Executive Order 12372 which requires intergovernmental consultation

with State and local officials. The 10.761 and 10.762 programs are

exempt from the provisions of Executive Order 12372. RUS conducts

intergovernmental consultation in the manner delineated in FmHA

Instruction 1940-J. The Nonprofit National Corporations Loan and Grant

Program (NNC) is an old program that is no longer offered, however, the

Agency continues to service existing grantees.

List of Subjects in 7 CFR Parts 1942 and 1980

Business and Industry; Community development; Community facilities;

Economic development, Grant programs--housing and community

development, Grant programs--nonprofit corporations, Industrial park,

Loan programs--nonprofit corporations, Rural areas.

Therefore, chapter XVIII, title 7, Code of Federal Regulations is

amended as follows:

PART 1942--ASSOCIATIONS

1. The authority citation for part 1942 is revised to read as

follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989.

Subpart G--Rural Business Enterprise Grants and Television

Demonstration Grants

2. Section 1942.307 is amended by adding a new paragraph (a)(6) as

follows:

Sec. 1942.307 Limitations on use of grant funds.

(a) * * *

(6) To pay for technical assistance as defined in this subpart

which duplicates assistance provided to implement an action plan funded

by the Forest Service (FS) under the National Forest-Dependent Rural

Communities Economic Diversification Act for 5 continuous years from

the date of grant approval by the FS. To avoid duplicate assistance,

the grantee shall coordinate with FS and Rural Business and Cooperative

Development Service (RBCDS) to ascertain if a grant has been made in a

substantially similar geographical or defined local area in a State for

technical assistance under the above program. The grantee will provide

documentation to FS and RBCDS regarding the contact with each agency.

Under its program, the FS assists rural communities dependent upon

national forest resources by establishing rural forestry and economic

diversification action teams which prepare action plans. Action plans

are intended to provide opportunities to promote economic

diversification and enhance local economies dependent upon national

forest resources.

* * * * *

Subpart J--Technical Assistance and Training Grants

3. Section 1942.460 is amended by adding paragraph (g) to read as

follows:

Sec. 1942.460 Limitations.

* * * * *

(g) Pay for technical assistance as defined in this subpart which

duplicates assistance provided to implement an action plan funded by

the Forest Service (FS) under the National Forest-Dependent Rural

Communities Economic Diversification Act for 5 continuous years from

the date of grant approval by the FS. To avoid duplicate assistance,

the grantee shall coordinate with the FS and Rural Utilities Service

(RUS) to ascertain if a grant has been made in a substantially similar

geographical or defined local area in a State for technical assistance

under the above program. The grantee will provide documentation to FS

and RUS regarding the contact with each agency. Under its program, the

FS assists rural communities dependent upon national forest resources

by establishing rural forestry and economic diversification action

teams which prepare action plans. Action plans are intended to provide

opportunities to promote economic diversification and enhance local

economies dependent upon national forest resources.

PART 1980--GENERAL

4. The authority citation for part 1980 is revised to read as

follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart G--Nonprofit National Corporations Loan and Grant Program

5. Section 1980.613 is amended by designating the existing

paragraph as paragraph (a) and adding paragraph (b) to read as follows:

Sec. 1980.613 Technical assistance.

* * * * *

(b) Grant funds for technical assistance which duplicates

assistance provided under an action plan funded by the Forest Service

(FS) under the National Forest-Dependent Rural Communities Economic

Diversification Act will not be provided for 5 continuous years from

the date of grant approval by the FS. To avoid duplicate assistance,

the NNC shall coordinate with the FS and Rural Business and Cooperative

Development Service (RBCDS) to determine the best use of available

resources and to ascertain if a grant has been made in a substantially

similar geographical or defined local area in a State for technical

assistance under the above program. The NNC will provide documentation

to FS and RBCDS regarding the contact with each agency. Under its

program, the FS assists rural communities dependent upon national

forest resources by establishing rural forestry and economic

[[Page 52840]]

diversification action teams which prepare action plans. Action plans

are intended to provide opportunities to promote economic

diversification and enhance local economies dependent upon national

forest resources.

Dated: September 14, 1995.

Jill Long Thompson,

Under Secretary, Rural Economic and Community Development.

[FR Doc. 95-25017 Filed 10-10-95; 8:45 am]

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