[Federal Register Volume 61, Number 42 (Friday, March 1, 1996)]
[Rules and Regulations]
[Pages 7979-7985]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4707]



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  Federal Register / Vol. 61, No. 42 /  Friday, March 1, 1996 / Rules 
and Regulations  

[[Page 7979]]


DEPARTMENT OF COMMERCE

Economic Development Administration

13 CFR Chapter III

[Docket No. 950525142-6028-02]
RIN 0610-AA47


Simplification and Streamlining of Regulations of the Economic 
Development Administration

AGENCY: Economic Development Administration (EDA), Commerce.

ACTION: Final rule.

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

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unnecessary, redundant and outdated parts, sections and portions 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