[Federal Register Volume 61, Number 169 (Thursday, August 29, 1996)]
[Rules and Regulations]
[Page 45738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21955]



[[Page 45737]]


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Part VIII





Department of Commerce





_______________________________________________________________________



Economic Development Administration



_______________________________________________________________________



13 CFR Part 316



Simplification and Streamlining of Regulations; General Requirements 
for Financial Assistance--Excess Capacity; Correction; Rule

  Federal Register / Vol. 61, No. 169 / Thursday, August 29, 1996 / 
Rules and Regulations  

[[Page 45738]]



DEPARTMENT OF COMMERCE

Economic Development Administration

13 CFR Part 316

[Docket No. 950525142-6220-04]
RIN 0610-AA47


Simplification and Streamlining of Regulations; General 
Requirements for Financial Assistance--Excess Capacity; Correction

AGENCY: Economic Development Administration (EDA), Department of 
Commerce (DoC).

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to EDA's regulations at 13 
CFR Chapter III; EDA's final rule which adopted the interim-final rule 
(60 FR 49702), September 26, 1995, as modified by the changes noted in 
the final rule (61 FR 7979), published and effective on March 1, 1996, 
as corrected, and the correction (61 FR 15371), April 8, 1996. This 
correction is to the regulation on general requirements for financial 
assistance--excess capacity.

EFFECTIVE DATE: August 29, 1996.

FOR FURTHER INFORMATION CONTACT: Awilda R. Marquez, (202) 482-4687; fax 
number: (202) 482-5671.

SUPPLEMENTARY INFORMATION:

Background

    EDA recently amended its entire body of regulations to make them 
easier to read and to understand, by removing numerous unnecessary, 
redundant, and outdated parts, sections and portions thereof, and by 
clarifying and simplifying those remaining. The final rule includes 
program requirements, evaluation criteria, and the 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 applicable statutes.

Need for Correction

    As published, the final rule contains an error which may prove to 
be misleading and is in need of clarification. Currently, Sec. 316.3 on 
excess capacity as codified in the Code of Federal Regulations (13 CFR, 
revised as of March 1, 1996) at Chapter III does not contain two 
crucial definitions--``market area'' and ``primary beneficiary''. These 
two definitions were inadvertently deleted when the final version of 
EDA's rule was codified in the CFR. Since these terms must be defined 
in order to determine when a report or study (or exemption) is needed, 
to meet the excess capacity requirement under the Public Works and 
Economic Development Act of 1965, as amended, (42 U.S.C. 3121 et. 
seq.), these definitions must be reinserted in the definitions 
paragraph of this section of the rule.

List of Subjects in 13 CFR Part 316

    Community development, grant programs-community development, 
Freedom of Information, Uniform Relocation Act.
    Accordingly, 13 CFR Part 316 is corrected by making the following 
correcting amendment:

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 316.3 is amended by revising paragraph (b) to read as 
follows:


Sec. 316.3  Excess Capacity.

* * * * *
    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 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.
    Market Area means the geographic area within which products and/or 
services compete for purchase by customers.
    Primary Beneficiary means one or more firms within the same 
industry which may reasonably be expected to use 50 percent or more of 
the capacity of an EDA-financed facility(ies) in order to expand the 
supply of goods or services sold in competition with other producers or 
suppliers of such goods or services.
* * * * *
    Dated: August 21, 1996.
Wilbur F. Hawkins,
Deputy Assistant Secretary for Economic Development.
[FR Doc. 96-21955 Filed 8-28-96; 8:45 am]
BILLING CODE 3510-24-P