Simplification and Streamlining of Regulations of the Economic Development Administration

SUMMARY: The Economic Development Administration (EDA) has amended all

of its regulations so that they are easy to read and use, and

accurately reflect program requirements, evaluation criteria and

selection process 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unnecessary, redundant and outdated parts, sections and portions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.

EFFECTIVE DATE: This rule is effective on March 1, 1996.

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

number: (202) 482-5671.

SUPPLEMENTARY INFORMATION:

Background

Pursuant to a directive from President Clinton to Federal

agencies in March of 1995 regarding their responsibilities under his

Regulatory Reform Initiative (as part of the National Performance

Review), EDA undertook a comprehensive review of its rules to remove

those which were obsolete or unnecessary and to modify those in need of

reform.

On September 26, 1995, EDA published an interim-final rule

on simplification and streamlining its regulations (60 FR 49670-49703).

In this interim-final rule EDA removed over 60% of its then existing

rules and streamlined and clarified those which remained. The public

was invited to submit comments on the interim-final rule for a period

of sixty (60) days ending November 27, 1995.

Comments on the Interim-Final Rule

EDA received comments from more than twenty (20) persons, all of

whom are or were EDA officials.

OMB Control Numbers.

A commenter noted that the OMB control numbers needed to be

updated.

We concur and have made the appropriate change to Sec. 300.3.

Notice of Funding Availability (NOFA).

Commenters noted that the acronym ``NOFA'' was not explained in the

general information section of the interim-final rule and that for

various programs, references to general information at Sec. 300.4

should more appropriately be to the NOFA.

We concur and have changed 13 CFR 300.4, 307.13(b), 307.18(b),

308.5(b), and 315.8(a) accordingly.

Area designation-American Indian lands.

A commenter suggested that the section on American Indian area

designation should be modified to clarify what is required when non-

contiguous land is considered as one area, noting that a relationship

between the land must be demonstrated.

We concur and have made the appropriate change to 13 CFR 301.4(d).

Area designation-per capita employment decline.

A commenter suggested that the term ``out-migration'' as used in

conjunction with per capita employment decline, as a basis of area

designation be changed to ``population loss'' as a more apt and readily

available descriptive term. This commenter also suggested that per

capita employment decline be modified so that what is measured is the

decline of the working age population.

We do not concur because the regulation as currently written in 13

CFR 301.9 accurately reflects PWEDA.

Economic Development Districts.

A commenter made suggestions for clarifications and corrections of

13 CFR 302.4(a); 302.13; 302.17 and 302.18.

We concur with all of the above and have made the recommended

changes, with the exception of Sec. 302.13 (c), since we do not agree

that the use of a pronoun to describe the Economic Development Center

(EDC) is unclear.

Overall Economic Development Program (OEDP).

A commenter recommended that the section describing requirements

for District OEDPs be modified to make it clear that both conditions

listed must be satisfied.

We concur and have changed 13 CFR 303.2(a) accordingly.

A commenter recommended that the section describing Area OEDP

committees be further streamlined and clarified.

We concur and have revised 13 CFR 303.3(a)(1) accordingly.

Selection Process.

Commenters made suggestions concerning programs which are reviewed,

processed and approved in EDA headquarters--National Technical

Assistance and Research, to clarify language about Solicitation of

Proposals, and to accommodate proposals in excess of two pages with

allowances for more in-depth project descriptions in applications, if

so requested by EDA.

We concur and have made the suggested changes to 13 CFR 304.1

(a)(1)(i) and (a)(3)(iii).

Commenters recommended that for those programs where Regional

Directors have been delegated the authority to approve projects,

changes be made indicating that appropriate Regional Office Project

Review Committees (PRCs) shall have the opportunity to review all

proposals (wherever originally received); PRC meetings will be

regularly scheduled, and proponents will be given timely written notice

of the results of the PRC meeting at which their proposal was reviewed.

We concur and have made the suggested changes to 13 CFR 304.1

(a)(2)(i), (a)(2)(ii), and (a)(2)(iii).

Commenters recommended that a sentence be added to the section

describing general evaluation criteria indicating that each annual FY

NOFA could identify special areas of interest for that FY.

We concur and have changed 13 CFR 304.1(b) accordingly.

[[Page 7980]]

Proposal form.

A commenter suggested that the standard OMB proposal form number be

noted in the final rule.

We concur and have changed 13 CFR 304.1(a)(1)(i) accordingly.

Award requirements.

A commenter noted that for programs under Titles I and IX of PWEDA,

the award period can be no longer than the end of the fifth fiscal year

after the award was made.

We concur and have made the changes to 13 CFR 305.7(a) and 308.7(a)

accordingly.

Public Works and Development Facilities Program.

Public Works Impact Program (PWIP): A commenter suggested that a

statement be added to the evaluation criteria at 13 CFR 305.6

indicating that a major purpose is for speedy work.

We do not concur, because to do so would be to repeat what is

stated in PWEDA (42 U.S.C. 3131(a)(1)(D)).

Supplementary grant rates: A commenter recommended that the median

family income category for computation of supplementary grant rates at

13 CFR 305.8(b)(6) through (b)(8) be replaced by per capita income,

because it is virtually impossible to have such low median family

income ranges in today's economy.

We do not concur because the statute requires the use of median

family incomes. We have, however, updated median family income figures

based upon the 1990 U.S. Census.

Grants for construction cost increases: A commenter suggested

redrafting and making 13 CFR 305.10 a part of 13 CFR part 316, since

change of scope applies to other projects in addition to those

involving construction.

We do not concur because this section is intended to apply only to

statutorily authorized grants for construction cost increases under

section 107 of PWEDA. Any other change of scope matters not

specifically addressed in the rule are covered under 13 CFR 316.10.

New Subpart for Other Requirements: A commenter suggested an

additional Subpart C for part 305, because the subjects in

Secs. 305.11-305.15 more appropriately should be included under a new

Subpart C-Other Requirements.

We concur and have made the necessary changes to the rule by adding

a Subpart C to part 305.

Disbursement of grant funds: A commenter suggested that 13 CFR

305.11 (a)(1), (a)(4) and (a)(6) be deleted on the ground that they are

burdensome and go beyond uniform federal requirements. The commenter

also suggested that other portions of the disbursement section either

be deleted as duplicative of general federal requirements or be moved

to 13 CFR part 316 for all programs.

We do not concur because a consensus had been reached prior to

publication of the interim-final rule that these conditions were needed

in order to provide a structure within which EDA could exercise its

judgment concerning grant disbursements.

Amendments and changes: A commenter suggested that this requirement

under 13 CFR 305.13 applies to all programs, not just to public works

under Title I, and should therefore, be moved to 13 CFR part 316.

We concur and have redesignated this requirement at 13 CFR 316.11.

Contract and subcontract clauses: A commenter suggested that this

requirement under 13 CFR 305.15 applies to all programs, not just to

public works under Title I, and should therefore, be moved to 13 CFR

part 316.

We concur and have moved this requirement to 13 CFR 316.12.

Local and National Technical Assistance.

Eligible applicants: Commenters suggested that the interim-final

rule incorrectly includes other applicants such as private individuals,

partnerships, firms and corporations (for-profits) as eligible grantees

under the Local and National Technical Assistance programs under 13 CFR

part 307.

We concur and have revised the interim-final rule at 13 CFR

307.2(c) and 307.12(c) to delete references to these other applicants.

This change is made consistent with our revised interpretation of

relevant provisions of PWEDA and the Federal Grant and Cooperative

Agreement Act.

Other changes: Commenters suggested other changes for clarity and

consistency with other portions of the rule, at 13 CFR 307.13(b),

307.14(e), 307.16 and 307.18(b).

We concur and have made these changes in the final rule. Research

topics and structure: Commenters suggested that for the National

Technical Assistance Program, the evaluation criterion describing

levels of preferences for projects, based upon geographic scope, be

modified to remove the levels of preferences.

We concur and have modified 13 CFR 307.20(c) accordingly.

Title IX--Economic Adjustment Revolving Loan Fund (RLF).

Nonrelocation: A commenter suggested that the interim-final rule be

modified to include borrowers under the Title IX Economic Adjustment

Revolving Loan (RLF) program.

After discussion within the agency, we decided not to modify the

interim-final rule at 13 CFR 316.4, but instead to include applicable

nonrelocation requirements as part of RLF Plans and, if need be, as

special conditions of the grant.

Subgrants: A commenter suggested that for RLF grants involving

subgrants, processing be specifically set forth indicating those

aspects to be reviewed and monitored by EDA and those to be handled by

EDA's RLF grantees on EDA's behalf.

After discussions within the agency, it was determined that the

rule should remain silent in this matter. Processing of subgrants will

continue to be handled on a case by case basis to be covered in grant

award documents, including special conditions by those Regional Offices

handling such projects.

Estimated useful life determinations.

A commenter suggested that the interim-final rule at 13 CFR part

314 be changed to add a maximum estimated useful life for projects, up

to but not exceeding 20 years.

We do not concur because of applicable case law concerning

extinguishing the Federal interest in projects.

Evidence of Title to real property.

A commenter suggested that the interim-final rule be modified at 13

CFR 314.7 so that only recipients without the power of eminent domain

be required to submit evidence of title.

We do not concur with this suggestion because the title

requirements apply to all grantees, regardless of their legal status.

Trade Act.

A commenter recommended changes to the definitions of firm, Partial

separation, and A significant number of proportion of workers to more

accurately reflect EDA's current policies concerning such terms.

We concur and have changed 315.2 accordingly.

Other changes: A commenter recommended changes to four other

sections (selection process, certification requirements, processing

petitions for certification, and hearings, appeals and final

determinations) of the Trade Act portion of the rule, in order to

clarify meanings.

We concur and have made changes accordingly to 13 CFR 315.5(b)(2),

315.9(a), 315.10 (b)(4) through (b)(6), and 315.11(a).

Environment.

A commenter suggested that the Notice requirement under NEPA

regulations be moved from EDA's annual FY NOFA to EDA's regulations,

[[Page 7981]]

since this is a continuing requirement that more appropriately should

be codified along with other similar matters found in 13 CFR chapter

III.

We concur and have added this to 13 CFR 316.1 (b)(1)(i) and

(b)(1)(ii).

A commenter noted an error in the citation to the Resource

Conservation and Recovery Act of 1976.

We concur and have changed 13 CFR 316.1(b)(7) accordingly.

Excess capacity.

Commenters suggested that four of the five definitions--

``capacity'', ``demand'', ``efficient capacity'', and ``existing

competitive enterprise'', be modified slightly to enable applicants to

more easily provide information to EDA from which the agency can make

necessary excess capacity findings and determinations.

We concur and have modified 13 CFR 316.3(b) accordingly.

Civil rights.

Several commenters suggested changing the interim-final rule to

give applicants for planning grants the option of submitting employment

data on the ED-612 or in a narrative format traditionally used by such

applicants/grantees containing comparable information to that provided

on the ED-612.

We concur and have modified 13 CFR 317.1 accordingly.

A commenter suggested that we consider including developers as

``Other Parties'' for purposes of submission of civil rights employment

data forms.

After discussions within the agency, it was determined that there

is no need to modify the interim final rule, and that any special

situations involving developers could, if need be, be covered by grant

award special conditions.

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 rule has been determined to be significant for purposes of

E.O. 12866.

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 does not contain new information collection or

recordkeeping requirements under the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.).

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

Organization and functions (Government agencies), Reporting and

recordkeeping requirements.

13 CFR Part 301

Community development.

13 CFR Part 302

Community development, Grant programs--business, Grant programs--

housing and community development, Loan programs--business, Loan

programs--housing and community development, Technical assistance.

13 CFR Part 303

Community development, Reporting and recordkeeping requirements.

13 CFR Part 304

Community development.

13 CFR Part 305

Community development, Community facilities, Grant programs--

housing and community development, Indians.

13 CFR Part 307

Business and industry, Community development, Grant programs--

business, Grant programs--housing and community development, Indians,

Research, Technical assistance.

13 CFR Part 308

Business and industry, Community development, Community facilities,

Grant programs--business, Grant programs--housing and community

development, 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--housing and community

development.

13 CFR Part 314

Community development, Grant programs--housing and community

development.

13 CFR Part 315

Administrative practice and procedure, Community development, Grant

programs--business, Grant programs--housing and community development,

Technical assistance, Trade adjustment assistance.

13 CFR Part 316

Community development, Community facilities, Freedom of

information, Grant programs--housing and community development.

13 CFR Part 317

Aged, Civil rights, Equal employment opportunity, Individuals with

disabilities, Reporting and recordkeeping requirements, Sex

discrimination.

Accordingly, the interim rule revising 13 CFR Chapter III which was

published at 60 FR 49670 on September 26, 1995, is adopted as a final

rule with the following changes:

PART 300--GENERAL INFORMATION

1. The authority citation for part 300 continues to read as

follows:

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).

2. Section 300.3 is amended by revising paragraph (b) to read as

follows:

Sec. 300.3 OMB control numbers.

* * * * *

(b) Control Number Table:

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

Current OMB

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

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

303........................................................ 0610-0093

305........................................................ 0610-0094

0610-0092

308........................................................ 0610-0092

312.5...................................................... 0610-0094

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

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

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

3. Section 300.4 is revised to read as follows:

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

Regional and Economic Development Representatives.

For addresses and phone numbers of the Economic Development

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

Economic Development Representatives, refer to EDA's annual Fiscal Year

(FY) Notice of Funding Availability (NOFA).

[[Page 7982]]

PART 301--DESIGNATION OF AREAS

1. The authority citation for part 301 continues to read as

follows:

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).

2. Section 301.4 is amended by revising paragraph (d) to read as

follows:

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

* * * * *

(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 justifying the inclusion of the noncontiguous land

areas that will contribute to a more effective economic development

program for the area.

PART 302--ECONOMIC DEVELOPMENT DISTRICTS

1. The authority citation for part 302 continues to read as

follows:

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).

2. Section 302.4 is amended by revising paragraph (a) introductory

text to read as follows:

Sec. 302.4 District organizations.

(a) The district organization is a prerequisite to the awarding of

a planning grant and to the initial designation of EDDs. The District

shall be organized in one of the following manners:

* * * * *

3. Section 302.13 is amended by redesignating the introductory text

and paragraphs (a) through (d) as paragraph (a) introductory text and

paragraphs (a)(1) through (a)(4), revising newly designated paragraph

(a)(2), and designating the undesignated paragraph at the end of the

section as paragraph (b) to read as follows:

Sec. 302.13 Termination and suspension of economic development

centers.

(a) * * *

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

for designation, Sec. 302.10;

* * * * *

4. Section 302.17 is revised to read as follows:

Sec. 302.17 Grant rate for economic development center projects.

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

are growth centers not located in designated redevelopment areas, shall

not exceed 50 percent of the project costs except for the ten percent

bonus provided for in Sec. 302.18 and Sec. 305.9 of this chapter.

5. Section 302.18 is revised to read as follows:

Sec. 302.18 Financial assistant redevelopment centers.

The eligibility of redevelopment centers for EDA financial

assistance, including the ten percent bonus as provided for herein, 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.

PART 303--OVERALL ECONOMIC DEVELOPMENT PROGRAM

1. The authority citation for part 303 continues to read as

follows:

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).

2. Section 303.2 is amended by revising paragraph (a) to read as

follows:

Sec. 303.2 Redevelopment area--District OEDPs.

* * * * *

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

OEDP planning process; and

* * * * *

3. Section 303.3 is amended by redesignating paragraphs (a)

introductory text and (a)(1) as paragraphs (a)(1) and (a)(2)

respectively, and by revising the newly designated paragraph (a)(2) to

read as follows:

Sec. 303.3 Redevelopment area OEDP committee.

(a) * * *

(2) Redevelopment area OEDP committees are required only in areas

not located in EDDs. EDA recommends OEDP committees in all areas

whenever practicable.

* * * * *

PART 304--GENERAL SELECTION PROCESS AND EVALUATION CRITERIA

1. The authority citation for part 304 continues to read as

follows:

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).

2. Section 304.1 is amended by revising paragraphs (a)(1)(i),

(a)(2)(ii), (a)(2)(iii), (a)(3)(iii), and (b) to read as follows:

Sec. 304.1 General selection process and evaluation process and

evaluation criteria for programs under PWEDA.

* * * * *

(a) * * *

(1) * * *

(i) There will be a brief proposal on the OMB approved form, number

0610-0094, consisting of the face sheet (SF-424) and two additional

pages, except for projects under part 307, subparts C and D, of this

chapter for which proponents may include more than two pages if

necessary to provide adequate information to EDA upon which to make an

informed determination whether to invite a more comprehensive proposal

and application, including for example, budget, scope of work and

capability statements.

* * * * *

(2) * * *

(ii) Such proposals, whether received through contact with the

appropriate Economic Development Representative (EDR) or Regional

Office of EDA, shall have the opportunity to be formally reviewed by

the appropriate Regional Office Project Review Committee (consisting of

at least three EDA officials) (PRC). Generally, an EDR will evaluate

proposals under paragraph (b) of this section before submitting them to

the EDA Regional Office for such review.

(iii) The results of these PRC meetings shall be communicated to

the proponents in writing and in a timely manner, advising them that

they are: being invited to submit a formal application; having their

application returned because of specified deficiencies (resubmissions

will be allowed when the deficiencies are cured) or being denied for

specific reasons.

* * * * *

(3) * * *

(iii) If the proposal is acceptable under paragraph (b) of this

section, EDA may invite proponents to submit applications which must

include a more detailed and comprehensive project narrative.

* * * * *

(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

[[Page 7983]]

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. The NOFA may identify special

areas of interest for the fiscal year of such NOFA.

PART 305--PUBLIC WORKS AND DEVELOPMENT FACILITIES PROGRAM

1. The authority citation for part 305 continues to read as

follows:

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).

2. Section 305.7 is amended by revising paragraph (a) to read as

follows:

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 end of the fiscal year of the award.

* * * * *

3. Section 305.8 is amended in paragraph (b) by revising entries

(6) through (8) in the table to read as follows:

Sec. 305.8 Supplementary grants.

* * * * *

(b) * * *

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

Maximum

grant

Projects rates

(percent)

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

* * * * *

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

the Act in which the median family income is $12,100 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 family income is $13,900-

$12,101, 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 family income is $15,700-

$13,901, or the average unemployment rate for the preceding

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

* * * * *

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

* * * * *

Sec. 305.13 [Redesignated as Sec. 316.11]

4. Section 305.13 is redesignated as Sec. 316.11.

Sec. 305.14 [Redesignated as Sec. 305.13]

5. Section 305.14 is redesignated as Sec. 305.13.

Sec. 305.15 [Redesignated as Sec. 316.12]

6. Section 305.15 is redesignated as Sec. 316.12.

7. Sections 305.11 through 305.13 are designated as subpart C and a

subpart heading is added to read as follows:

Subpart C--Other Requirements

PART 307--LOCAL TECHNICAL ASSISTANCE, UNIVERSITY CENTER TECHNICAL

ASSISTANCE, NATIONAL TECHNICAL ASSISTANCE, RESEARCH AND EVALUATION

AND PLANNING

1. The authority citation for part 307 continues to read as

follows:

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).

2. Section 307.2 is amended by revising paragraph (c) to read as

follows:

Sec. 307.2 Applicants.

* * * * *

(c) Technical assistance grant funds may not be awarded to private

individuals or for profit organizations.

3. Section 307.12 is amended by revising paragraph (c) to read as

follows:

Sec. 307.12 Applicants.

* * * * *

(c) Technical assistance grant funds may not be awarded to private

individuals or for profit organizations.

4. Section 307.13 is amended by revising paragraph (b) to read as

follows:

Sec. 307.13 Selection process.

* * * * *

(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 studies

should submit information on their capabilities and experience. See the

annual FY NOFA for the appropriate point of contact and address.

4. Section 307.14 is amended by revising paragraph (e) to read as

follows:

Sec. 307.14 Evaluation criteria.

* * * * *

(e) Demonstrates innovative approaches to stimulating economic

development in depressed areas.

5. Section 307.16 is amended by revising the introductory text to

read as follows:

Sec. 307.16 Purpose and scope.

The purposes of research and evaluation projects are as follows:

* * * * *

6. Section 307.18 is amended by revising paragraph (b) to read as

follows:

Sec. 307.18 Selection process.

* * * * *

(b) EDA may during the course of the year, identify specific

research or program evaluation projects it wishes to have conducted.

Organizations and individuals interested in being invited to respond to

SOAs to conduct such studies should submit information on their

capabilities and experience. See the annual FY NOFA for the appropriate

point of contact and address.

7. Section 307.20 is amended by revising paragraph (c) and removing

paragraph (e) to read as follows:

Sec. 307.20 Research topics and structure.

* * * * *

(c) EDA normally prefers research of broad geographical scope.

* * * * *

PART 308--REQUIREMENTS FOR GRANTS UNDER THE TITLE IX ECONOMIC

ADJUSTMENT PROGRAM

1. The authority citation for part 308 continues to read as

follows:

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).

2. Section 308.5 is amended by revising paragraph (b) to read as

follows:

Sec. 308.5 Selection process.

* * * * *

(b) Applicants for funding of a Revolving Loan Fund (RLF) are

generally required to submit a RLF Plan in addition to the adjustment

strategy for the area. Guidelines on RLFs are available from the

Regional Offices. See the annual FY NOFA for the appropriate point of

contact and address.

2. Section 308.7 is amended by revising paragraph (a) to read as

follows:

Sec. 308.7 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 end of the fiscal year of the award.

* * * * *

[[Page 7984]]

PART 315--CERTIFICATION AND ADJUSTMENT ASSISTANCE FOR FIRMS

1. The heading for part 315 is revised to read as set forth above.

2. The authority citation for part 315 continues to read as

follows:

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

3211); Title II, Chapter 3 of the Trade Act of 1974, as amended, (19

U.S.C. 2341-2355); Department of Commerce Organization Order 10-4,

as amended (40 FR 56702, as amended).

3. Section 315.2 is amended by revising the definitions of Firm,

Partial separation, and A significant number or proportion of workers

to read as follows:

Sec. 315.2 Definitions.

* * * * *

Firm means an individual proprietorship, partnership, joint

venture, association, corporation (including a development

corporation), business trust, cooperative, trustee in bankruptcy or

receiver under court decree and including fishing, agricultural

entities and those which explore, drill or otherwise produce oil or

natural gas. When a firm owns or controls other firms as described

below, for purposes of receiving benefits under this part, the firm and

such other firms may be considered a single firm when they produce like

or directly competitive articles or are exerting essential economic

control over one or more production facilities. Such other firms

include:

(1) Predecessor;

(2) Successor;

(3) Affiliate; or

(4) Subsidiary.

* * * * *

Partial separation means either:

(1) A reduction in an employee's work hours to 80 percent or less

of the employee's average weekly hours during the year of such

reductions as compared to the preceding year; or

(2) A reduction in the employee's weekly wage to 80 percent or less

of his/her average weekly wage during the year of such reduction as

compared to the preceding year.

* * * * *

A significant number or proportion of workers means 5 percent of

the firm's work force or 50 workers, whichever is less. An individual

farmer is considered a significant number or proportion of workers.

* * * * *

4. Section 315.5 is amended by revising paragraph (b)(2) to read as

follows:

Sec. 315.5 Selection process.

* * * * *

(b) * * *

(2) Once firms are certified in accordance with the procedures

described in Secs. 315.9 and 315.10, an adjustment proposal is usually

prepared with technical assistance from a party independent of the

firm, usually the TAAC, and submitted to EDA;

* * * * *

5. Section 315.8 is amended by revising paragraph (a) to read as

follows:

Sec. 315.8 Purpose and scope.

(a) Trade Adjustment Assistance Centers (TAACs) are available to

assist firms in all fifty states, the District of Columbia and the

Commonwealth of Puerto Rico in obtaining adjustment assistance. TAACs

provide technical assistance in accordance with this subpart either

through their own staffs or by arrangements with outside consultants.

Information concerning TAACs serving particular areas can be obtained

from EDA. See the annual FY NOFA for the appropriate point of contact

and address.

* * * * *

6. Section 315.9 is amended by revising paragraph (a) to read as

follows:

Sec. 315.9 Certification requirements.

* * * * *

(a) A significant number or proportion of workers in such firm have

become totally or partially separated, or are threatened to become

totally or partially separated.

* * * * *

7. Section 315.10 is amended by revising paragraphs (b)(4) through

(b)(6) to read as follows:

Sec. 315.10 Processing petitions for certification.

* * * * *

(b) * * *

(4) Data on its sales, production and employment for the two most

recent years;

(5) Copies of its audited financial statements, or if not

available, unaudited financial statements and Federal income tax

returns for the two most recent years;

(6) Copies of unemployment insurance reports for the two most

recent years.

* * * * *

8. Section 315.11 is amended by revising paragraph (a) to read as

follows:

Sec. 315.11 Hearings, appeals and final determinations.

(a) Any petitioner may appeal to EDA from a denial of certification

provided that the appeal is received by EDA in writing by personal

delivery or by registered mail within 60 days from the date of notice

of denial under Sec. 315.10(g). The appeal shall state the grounds on

which the appeal is based, including a concise statement of the

supporting facts and law. The decision of EDA on the appeal shall be

the final determination within the Department of Commerce. In the

absence of an appeal by the petitioner under this paragraph, such final

determination shall be determined under Sec. 315.10(g).

* * * * *

PART 316--GENERAL REQUIREMENTS FOR FINANCIAL ASSISTANCE

1. The authority citation for part 316 continues to read as

follows:

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

3211); Title II, Chapter 3 of the Trade Act of 1974, as amended, (42

U.S.C. 2341-2355); Department of Commerce Organization Order 10-4,

as amended (40 FR 56702, as amended).

2. Section 316.1 is amended by revising paragraphs (b)(1) and

(b)(7) to read as follows:

Sec. 316.1 Environment.

* * * * *

(b) * * *

(1) Requirements under the National Environmental Policy Act of

1969 (NEPA), Public Law 91-190, as amended, 42 U.S.C. 4321 et seq. as

implemented under 40 CFR parts 1500 et seq. including the following:

(i) The implementing regulations of NEPA require EDA to provide

public notice of the availability of project specific environmental

documents such as environmental impact statements, environmental

assessments, findings of no significant impact, records of decision

etc., to the affected public as specified in 40 CFR 1506.6(b); and

(ii) Depending on the project location, environmental information

concerning specific projects can be obtained from the Environmental

Officer in the appropriate Washington, D.C. or regional office listed

in the NOFA;

* * * * *

(7) Resource Conservation and Recovery Act of 1976, Public Law 94-

580 as amended, 42 U.S.C. 6901 et seq.;

* * * * *

3. Section 316.3 is amended by revising paragraph (b) to read as

follows:

Sec. 316.3 Excess capacity.

* * * * *

(b) Definitions. For purposes of this section only:

Capacity means the maximum amount of a product or service that can

be supplied to the market area over a sustained period by existing

enterprises

[[Page 7985]]

through the use of present facilities and customary work schedules for

the industry.

Demand means the actual quantity of a product or service that users

are willing to purchase for use in the market area served by the

intended commercial or industrial beneficiary.

Efficient capacity means that part of capacity derived from the use

of contemporary structures, machinery and equipment, designs and

technologies.

Existing competitive enterprise means an established operation

which either produces the same product or delivers the same service to

all or a substantial part of the market area.

* * * * *

4. Section 316.13 is added to read as follows:

Sec. 316.13 Preapproval construction.

Project construction carried out before approval of an application

by EDA is carried out at the sole risk of applicant. Such activity

could result in rejection of such project application, the disallowance

of costs, or other adverse consequences as a result of non-compliance

with Federal labor standards, or Federal environmental, historic

preservation or related requirements.

PART 317--CIVIL RIGHTS

1. The authority citation for part 317 continues to read as

follows:

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).

2. Section 317.1 is amended by revising paragraph (c)(2) to read as

follows:

Sec. 317.1 Civil rights.

* * * * *

(c) * * *

(2) Employment data in such form and manner as determined by EDA;

* * * * *

Dated: February 26, 1996.

Phillip A. Singerman,

Assistant Secretary for Economic Development.

[FR Doc. 96-4707 Filed 2-29-96; 8:45 am]

BILLING CODE 3510-34-P