[Federal Register Volume 61, Number 251 (Monday, December 30, 1996)]
[Rules and Regulations]
[Pages 68666-68668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33033]


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DEPARTMENT OF THE INTERIOR

Office of the Secretary

43 CFR Part 12

RIN 1090-AA59


Administrative and Audit Requirements and Cost Principles for 
Assistance Programs

AGENCY: Office of the Secretary, Interior.

ACTION: Final rule.

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SUMMARY: This final rule is in response to the ``Omnibus Consolidated 
Appropriations Act of 1997,'' and the ``Energy and Water Development 
Appropriations Act, 1997.'' Section 307(a) of Public Law 104-208 
required

[[Page 68667]]

that no funds made available in the Act may be expended by an entity 
unless the entity agrees that in expending the funds they will comply 
with sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-
10c; popularly known as the ``Buy American Act''). As it did for awards 
governed by this provision made since FY 1993, the Department continues 
to interpret this requirement to apply to assistance programs. Section 
307(b)(1) of Public Law 104-208 again states that it is the sense of 
Congress that all equipment and products purchased with funds made 
available in the Act should be American-made. Likewise, the Department 
is again taking the position that Congressional intent is different for 
awards made by the Bureau of Reclamation. As such, only the provisions 
in the regulation addressing the sense of Congress (section 12.700 and 
the notice requirements (sections 12.710) will apply to awards made by 
the Bureau of Reclamation using appropriated funds for FY 1997.)
    In addition, a minor correction is being made to a cite in the 
definition of ``domestic and product'' in Section 12.705.

EFFECTIVE DATE: December 30, 1996.

FOR FURTHER INFORMATION CONTACT:
Debra E. Sonderman, (Director, Procurement and Property Management 
Systems), (202) 208-3336.

SUPPLEMENTARY INFORMATION: On September 30, 1996, the Omnibus 
Consolidated Appropriations Act of 1997 (``the Act'') was signed into 
law Section 307(a) of the Act was entitled ``Compliance with Buy 
American Act.'' The section applied to funds appropriated or 
transferred pursuant to the Act for the purchase of any equipment or 
product that may be authorized to be purchased with financial 
assistance. Section 307(b)(1) expressed the ``sense of the Congress'' 
that entities receiving the assistance purchase only American-made 
equipment and products.
    Section 307(b)(2) required that in providing the financial 
assistance under the Act, the Secretary shall provide to each recipient 
of the assistance a notice describing the requirement. As in prior 
years, no other specific guidance was given regarding the 
implementation of this requirement.
    The Department is revising Subpart E of 43 CFR Part 12, to 
implement these requirements for awards made using appropriated funds 
for FY 1997. No specific guidance was provided by Congress, so the 
Department decided to continue its implementation of these requirements 
based upon the final rule published in the Federal Register on July 19, 
1994 (59 FR 36713).
    Because of the applicability of different appropriation acts and 
the fact that the requirements are different, the notice in 
subparagraph (b) of section 12.710 has been changed to account for the 
reference to language in Public Law 104-208. A separate notice included 
in subparagraph (c) of section 12.710 has been amended to account for 
the reference to language in Public Law 104-206 and its use only for 
awards made by the Bureau of Reclamation.

Finding of Good Cause for Waiver of Proposed Rulemaking and for Making 
Rule Effective upon Publication

    In accordance with the Administrative Procedure Act (5 U.S.C. 553), 
it is usually the practice of the Department to offer interested 
parties the opportunity to comment on proposed regulations. However, 
the Department waives notice and comment on these regulations under 
section 553(b)(B) of the Administrative Procedure Act (5 U.S.C. 
553(b)(B)). This section provides that notice and comment for 
rulemaking is not required when the agency for good cause finds that 
notice and public procedures are impracticable, unnecessary, or 
contrary to the public interest.
    The Department believes public comment on the revision of this 
regulation is unnecessary because the substance of these provisions is 
based on statutory requirements governing the award of assistance with 
appropriated funds for FY 1997, that the Department is unable to 
change.
    The Administrative Procedure Act provides that rules be published 
at least 30 days prior to their effective date, except as otherwise 
provided by an agency on a finding of good cause (5 U.S.C. 553(d)(3)). 
In this case, because this requirement is a statutory condition of 
expenditure of appropriated funds in this fiscal year, the Department 
has determined that the rule must be effective upon publication.

Executive Order 12866, Paperwork Reduction Act, and Regulatory 
Flexibility Act

    This rule was not subject to Office Management and Budget review 
under Executive Order 12866.
    The Department has determined that this rule will not have a 
significant economic impact on small entities since it is anticipated 
that no additional costs will be imposed on a substantial number of 
small entities as a result of the rule. This rule does not contain a 
collection of information subject to the Paperwork Reduction Act of 
1980 (44 U.S.C. 3501 et seq.).

Environmental Effects

    The Department has determined that this rule does not constitute a 
major Federal action having a significant impact on the human 
environment under the National Environmental Policy Act of 1969.

List of Subjects in 43 CFR Part 12

    Administrative practice and procedure, Contract programs, 
Cooperative agreements, Grant programs, Grants administration, 
Reporting and recordkeeping requirements.

    Dated: December 4, 1996.
Bonnie R. Cohen,
Assistant Secretary--Policy, Management and Budget.

    Title 43 of the Code of Federal Regulations, part 12 is amended as 
follows:

PART 12--ADMINISTRATIVE AND AUDIT REQUIREMENTS AND COST PRINCIPLES 
FOR ASSISTANCE PROGRAMS

    1. The authority citation for part 12 is revised to read as 
follows:

    Authority: 5 U.S.C. 301; 31 U.S.C. 6101 note, 7501, 41 U.S.C. 
252a, 701 et seq; sec. 501, Pub. L. 104-206, 110 Stat. 2984; sec. 
307, Pub. L. 104-208, 110 Stat. 3009; E.O. 12549, 3 CFR, 1986 Comp., 
p. 189; E.O. 12674, 3 CFR, 1989 Comp., 215; E.O. 12689, 3 CFR, 1989 
Comp., p. 235; E.O. 12731, 3 CFR, 1990 Comp., p. 306; OMB Circular 
A-102; OMB Circular A-110; OMB Circular A-128; and OMB Circular A-
133.

    2. Section 12.700 is revised to read as follows:


Sec. 12.700  Scope.

    This subpart implements section 307 of the Omnibus Consolidated 
Appropriations Act of 1997 (Public Law 104-208, 110 Stat. 3009) and 
section 501 of the Energy and Water Development Appropriations Act, 
1997 (Public Law 104-206, 110 Stat. 2984). For awards made under the 
authority of section 307(a) of Public Law 104-208, this subpart 
requires that no funds made available in the Act may be expended by an 
entity unless the entity agrees that in expending the funds the entity 
will comply with sections 2 through 4 of the Act of March 3, 1933 (41 
U.S.C. 10a-10c; popularly known as the ``Buy American Act''). It 
applies to procurement contracts under grants and cooperative 
agreements which provide for the purchase of equipment and products. 
Section 501 of Public Law 104-206, 110 Stat. 2984, only applies to

[[Page 68668]]

awards made by the Bureau of Reclamation. In addition, for these 
awards, there is only a requirement that in providing financial 
assistance to, or entering into any contract with, any entity using 
funds made available in this Act, the Secretary, to the greatest extent 
practicable, will provide to the entity a notice describing a statement 
within the Act made by Congress. This statement concerns the sense of 
the Congress that to the greatest extent practicable, all equipment and 
products purchased with funds made available in the Act, should be 
American-made. Therefore, for Fiscal Year 1997 awards, only the 
requirements in Section 12.700 and 12.710 will apply to awards made by 
the Bureau of Reclamation.
    3. Section 12.705 is amended by revising the fourth sentence 
included in the definition of domestic end product to read as follows:


Sec. 12.705  Definitions.

* * * * *
    Domestic end product * * *
    Components of foreign origin of the same class or kind for which 
determinations have been made in accordance with Section 12.710(d) (3) 
and (4) are treated as domestic. * * *
* * * * *
    4. Paragraphs (a), (b), and (c) of Section 12.710 are revised to 
read as follows:


Sec. 12.710  Policy.

    (a) In the case of any equipment or product that may be authorized 
to be purchased with financial assistance provided using funds made 
available under Public Law 104-208, it is the sense of Congress that 
entities receiving the assistance should, in expending the assistance, 
purchase only American-made equipment and products.
    (b) In awarding financial assistance under Public Law 104-208, 110 
Stat. 3009, bureaus and offices excluding the Bureau of Reclamation 
will provide to each recipient of the assistance the following notice:

    Notice: Pursuant to Sec. 307 of the Omnibus Consolidated 
Appropriations Act of 1997, Public Law 104-208, 110 Stat. 3009, 
please be advised of the following:
    In the case of any equipment or product that may be authorized 
to be purchased with financial assistance provided using funds made 
available in this Act, it is the sense of the Congress that entities 
receiving the assistance should, in expending the assistance, 
purchase only American-made equipment and products.

    (c) In awarding financial assistance using funds made available 
under Public Law 104-206, to the greatest extent practicable, the 
Bureau of Reclamation will provide to each recipient of the assistance 
the following notice:

    Notice: Pursuant to Sec. 501 of the Energy and Water Development 
Appropriations Act, 1997, Public Law 104-206, 110 Stat. 2984, please 
be advised of the following:
    It is the sense of the Congress, that to the greatest extent 
practicable, all equipment and products purchased with funds made 
available in this Act should be American-made.
* * * * *
[FR Doc. 96-33033 Filed 12-27-96; 8:45 am]
BILLING CODE 4310-RF-M