[Federal Register Volume 62, Number 26 (Friday, February 7, 1997)]
[Notices]
[Pages 5804-5812]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2933]


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DEPARTMENT OF ENERGY


Policy and Planning Guidance for Community Transition Activities

AGENCY: Office of Worker and Community Transition, Department of 
Energy.

ACTION: Notice of interim guidance and opportunity for public comment.

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SUMMARY: The Department of Energy today publishes for public comment 
Interim Guidance for Community Transition Activities that has been 
issued primarily for the benefit of field organizations and community 
reuse organizations responsible for implementing and administering a 
financial assistance program to alleviate the adverse impact of 
downsizing defense nuclear facilities on affected local economies.

DATES: Written comments (7 copies) are due on or before April 8, 1997. 
The interim guidance is effective March 10, 1997.

ADDRESSES: Comments must be submitted to: U.S. Department of Energy, 
Office of Worker and Community Transition, WT-1, 1000 Independence 
Avenue, SW, Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: Ms. Deborah Swichkow, U.S. Department 
of Energy, 1000 Independence Avenue, SW, Washington, DC 20585, (202) 
586-0876.

SUPPLEMENTARY INFORMATION:

I. Background

    Pursuant to the Atomic Energy Act of 1954 (AEA), the Department of 
Energy (DOE) owns defense nuclear facilities in various locations in 
the United States that are operated by management and operating 
contractors. As a result of the end of the Cold War, many of these 
facilities are undergoing work force restructuring that often has a 
significant impact on local economies. The Atomic Energy Act of 1954 
contains broad authority to adopt and carry out policies, subject to 
the availability of appropriations, for downsizing these facilities and 
for alleviating the adverse impacts on affected local communities. 42 
U.S.C. 2201.
    Section 3161 of the National Defense Authorization Act for Fiscal 
Year 1993, 42 U.S.C. 7274h, provides additional and specific authority 
for DOE to provide impact assistance to communities that are adversely 
affected by work force restructuring. Section 3161 further requires DOE 
to coordinate the provision of such assistance with programs carried 
out by the Departments of Labor, Commerce, and Defense. In devising a 
local impact assistance program under section 3161, DOE has chosen to 
follow the example of the Department of Defense under the Defense 
Economic Adjustment, Diversification, Conversion, and Stabilization Act 
of 1990 (Pub. L. 101-510) which is referenced in section 3161. Like the 
Department of Defense, DOE has developed a financial assistance program 
that, for the most part, consists of awards to broadly representative, 
community reuse organizations (CROs) who either expend or sub-award the 
funds for projects to stimulate the local economy under an approved 
Community Transition Plan developed with public input. CROs may be 
governmental or non-governmental organizations. If a CRO is non-
governmental and applies for financial assistance, it would have to be 
organized under local law and be able to enter into, and assume the 
obligations of a DOE financial assistance agreement. Although section 
3161 does not require CROs, DOE use of such organizations is consistent 
with the Congressional requirement to coordinate the provision of local 
impact assistance, as appropriate, with the Department of Defense 
programs under the Defense Economic Adjustment, Diversification, 
Conversion, and Stabilization Act.
    The award and administration of DOE financial assistance agreements 
is subject to generally applicable regulations set forth at 10 CFR part 
600. The interim guidance in this notice supplements those regulations 
and provides a general decision making framework to guide the exercise 
of discretion by DOE field organizations. Issuing policy in the form of 
guidance allows for greater flexibility to modify policy if the facts 
and circumstances warrant modification.
    Various aspects of the interim guidance appeared previously in 
DOE's August 24, 1994, Report on the Department of Energy's Worker and 
Community Transition Program. Today's notice will clarify the roles and 
responsibilities of DOE Headquarters, DOE field organizations, and 
CROs. The interim guidance is subject to revision in light of public 
comments received in response to this notice.

II. Description of Key Provisions

    Although this notice contains policies applicable to funding 
decisions in DOE Headquarters, for the most part, it contains interim 
guidance to DOE field organizations on economic development activities 
of CROs, approval of CRO plans to expend funds, evaluation criteria for 
funding decisions, CRO performance measures and reporting.
    Much of the interim guidance is self-explanatory. This document 
highlights policy decisions embodied in various provisions of the 
interim guidance that may be of interest to members of the public. 
First, the financial assistance is targeted on communities 
substantially impacted by work force restructuring plans under section 
3161 for ``defense nuclear facilities'' which are listed in Appendix B 
to the interim guidance.
    Second, the CROs are intended to be broadly and fairly 
representative of local community interests. To that end, the interim 
guidance contains minimum evaluation criteria at paragraph II.C.3 for 
approving CROs that all DOE field organizations should follow. The 
interim guidance also provides for application of the conflict of 
interest avoidance policy in 10 CFR 600.142 to all subagreements under 
a financial assistance agreement including, but not limited to, 
subcontracts, subgrants, loans, etc.
    Third, the interim guidance provides for start-up, planning, 
administrative, and project financial assistance, and indicates the 
range of amounts of assistance for each type of activity. These ranges 
are based on experience with pilot activities financed by local impact 
assistance grants already awarded under section 3161. The evaluation 
criteria provide for consideration of cost-sharing offered by an 
applicant. However, cost-sharing is not a requirement because DOE does 
not believe Congress intended that assistance be denied for proposals 
from sources who are unable to offer cost sharing.
    Fourth, consistent with DOE's experience in this program, the 
interim guidance provides for program and project assistance for 
sources other than CROs. These provisions are useful because some CROs 
prefer to serve in an advisory role in the selection of projects

[[Page 5805]]

rather than being a direct financial assistance recipient.
    Fifth, the interim guidance refers to a broad array of programs 
that have been funded by past awards and thereby indicates the range of 
possibilities for future awards and sub-awards. Among the types of 
programs a CRO could finance are small business incubators, venture and 
risk capital investments, training seminars, and revolving loans funds. 
With respect to such loans, the interim guidance provides a termination 
date of five years from the first award. A terminal date is desirable 
to facilitate closeout under 10 CFR part 600 and to limit the period 
for an assistance agreement to the amount of time necessary to mitigate 
the effects of downsizing on the local economy.
    Sixth, the interim guidance provides for development of performance 
measures and periodic reporting under 10 CFR part 600 to assess the 
effectiveness of the program (see Appendix C). While there is some 
burden in complying, the burden is justified by the need to determine 
that taxpayer dollars are being expended effectively to achieve the 
Congressional objective of alleviating the impact of work force 
restructuring on affected local communities. DOE anticipates that the 
information will be useful in supporting budget requests, reporting to 
Congress, and responding to inquiries, if any, from Congress' General 
Accounting Organization and DOE's Inspector General.

III. Review Under Executive Order 12866

    This action has been determined not to be a ``significant 
regulatory action'' under Executive Order 12866, ``Regulatory Planning 
and Review'' (58 FR 51735, October 4, 1993). Accordingly, it was not 
subject to review by the Office of Information and Regulatory Affairs 
of the Office of Management and Budget.

IV. Review Under the National Environmental Policy Act

    Pursuant to the Council on Environmental Quality Regulations (40 
CFR parts 1500-1508), DOE has established guidelines in 10 CFR part 
1021 for its compliance with the provisions of the National 
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321, et seq.). 
Pursuant to Categorical Exclusion A6 in Appendix A of Subpart D to 10 
CFR part 1021, DOE has determined that this action is categorically 
excluded from the need to prepare an environmental impact statement or 
environmental assessment.

V. Congressional Notification

    Pursuant to the Small Business Regulatory Enforcement Fairness Act 
of 1996, DOE will send a report regarding promulgation of this notice 
to Congress prior to its effective date. 5 U.S.C. 801.

VI. Opportunity for Public Comment

    Interested persons are invited to submit data, views, or arguments 
with respect to the policies set forth in this notice. Seven (7) copies 
of written comments should be submitted to the address indicated in the 
ADDRESSES section of this notice. A copy of the comments received in 
response to this notice will be available for public inspection in the 
Department of Energy Freedom of Information Reading Room, 1E-190, 
Forrestal Building, 1000 Independence Avenue SW., Washington, D.C., 
20585, between the hours of 9 a.m. and 4 p.m., Monday through Friday, 
except Federal holidays. Late-filed comments will be considered to the 
extent that time allows. Any person submitting information which that 
person believes to be confidential and which may be exempt from public 
disclosure should submit one complete copy, as well as an additional 
copy from which the information claimed to be confidential has been 
deleted. The Department of Energy reserves the right to determine the 
confidential status of the information or data and to treat it 
accordingly. The Department of Energy's generally applicable procedures 
for handling information which has been submitted in a document and may 
be exempt from public disclosure are set forth in 10 CFR 1004.11.

    Issued in Washington, D.C., on January 17, 1997.
Robert W. DeGrasse, Jr.,
Director, Office of Worker and Community Transition.

    For the reasons stated in the preamble, the Department of Energy 
hereby promulgates the following interim policy, as set forth below.

Interim Guidance for Community Transition Activities

Table of Contents

I. Introduction
II. Program Scope
    A. General
    B. Allowable Uses of Funding
    C. Eligibility and Funding Recipients
    D. Types of Assistance
    1. Start-up Assistance for CROs
    2. Planning Assistance for CROs
    3. Operational Assistance
    4. Community Transition Program and Project Assistance
III. Roles and Responsibilities
    A. The Secretary of Energy
    B. The Director, Office of Worker and Community Transition
    C. Department Field Organizations
    D. Community Reuse Organizations
IV. Program Planning
    A. General
    B. Development of the Community Transition Plan
    C. Department Field Organization and Office Reviews
    D. Economic Development Administration and the Peer Review Board
    E. Office of Worker and Community Transition Review and 
Decisions
V. Evaluation Criteria for Review of Projects and Programs
VI. Community Transition Plans
    A. Purpose
    B. General
    C. Community Transition Plan Components
    1. Planning Analysis
    2. Stakeholder Involvement
    3. Prioritized Projects
VII. Performance Measures
    A. Purpose
    B. Guidance
    C. Model
    D. Areas to Address
VIII. Reviews
    A. Financial Management Reviews
    1. General
    2. Purpose
    3. Procedures
    B. Program Reviews
Appendices
    A. Office of Worker and Community Transition Contacts
    B. Listing of Defense Nuclear Facilities
    C. Progress Report Format
    D. Requirement for Financial Assistance--10 CFR Part 600

INTERIM GUIDANCE FOR COMMUNITY TRANSITION ACTIVITIES

I. Introduction

    The end of the Cold War has reduced the country's need for national 
security activities. As a result, the Department of Energy's (the 
Department) nuclear weapons production capacity is decreasing. The 
Department is accomplishing this by reconfiguring, downsizing, and 
closing many of its facilities. Since the Department realizes that 
these actions may adversely affect the communities nearby containing a 
substantial number of displaced workers, it will cooperate with the 
recognized representative of each community and execute economic 
development initiatives to help offset those impacts.
    Initial program guidance for the community transition program was 
first developed in the spring and summer of 1993, shortly after the 
formation of the Department's Task Force on Worker and Community 
Transition. In the intervening period, the community transition program 
has evolved. This guidance reflects the changes necessary

[[Page 5806]]

for the continued progress of the program. It reflects the work and 
input of stakeholders as well as the staff of the Department's Office 
of Worker and Community Transition (the Office). It replaces previous 
guidance on community transition activities and should be used while 
comments are being collected. The Office appreciates the assistance and 
effort of Department field organizations, site contractors, and 
representatives of the affected communities for their assistance in 
developing this guidance.

II. Program Scope

A. General

    Pursuant to section 3161 of the National Defense Authorization Act 
for Fiscal Year 1993, the Department's community transition program is 
designed to minimize the social and economic impacts of work force 
restructuring at defense nuclear facilities by providing local impact 
assistance to affected communities, 42 U.S.C. 7274h(c)(6). Specific 
assistance programs are designed by the communities and the local 
Department facilities affected by the downsizing. Over the past 3 
years, the Department has employed an extensive process of stakeholder 
and public involvement to shape policies concerning worker and 
community transition. This process included national stakeholder 
meetings on July 12-13, 1993, on November 16-17, 1993, on February 3-4, 
1994, on May 25-26, 1994, on November 15-16, 1994, on April 20-21, 
1995, on September 13-15, 1995, and on March 13-15, 1996, as well as 
specific input provided by nine community transition focus groups. It 
also responds to the recommendations made by the General Accounting 
Office in its December 1995 report to the Secretary of Energy, ``Energy 
Downsizing: Criteria for Community Assistance Needed.'' Impact 
assistance is provided by funding Department field organization-
approved proposals for activities of Community Reuse Organizations 
(CRO), Management and Operating contractors, and others.

B. Allowable Uses of Funding

    1. Funds for community transition activities may be allocated for 
approved programs and projects described in community transition plans 
or in field project requests prepared by Department facilities for 
activities funded outside the community transition plans.
    2. In reviewing proposals or applications, the broadest range of 
allowable uses of funds will be considered. However, because funding is 
limited, and because other appropriations may be seen as the proper or 
primary source to fund certain activities, various activities may only 
be approved where exceptional circumstances would justify the decision. 
These include:
    a. Activities that could be funded from work force restructuring 
funds, such as employee retraining;
    b. Landlord responsibilities normally funded by the program office 
with landlord responsibilities at the site, including preparing 
personal property for disposal; decontamination and decommissioning of 
land and facilities; maintenance (to the extent it is not passed on to 
the tenant); environmental baseline-facility condition reports; 
administrative activities such as appraisals, title searches and 
environmental assessments; and
    c. Off-site construction, infrastructure, or other capital 
improvement projects.
    3. If funding for the type of projects described in Section II.B.2, 
above, is being considered, the Department field organization should 
make early contact with the Office to determine whether the project can 
be funded by appropriations and, if so, what justification will be 
necessary.

C. Eligibility and Funding Recipients

1. General
    Community transition funds will generally flow through a Department 
field organization to the CRO or CRO-designee. For activities funded 
outside the community transition plan, funds may be made available by 
direct contract between the Department and another party, such as the 
on-site contractor. Financial assistance to CROs will be provided in 
accordance with the requirements applicable to grants or cooperative 
agreements that are in 10 CFR Part 600.
2. Definition of ``Defense Nuclear Facilities''
    Pursuant to section 3161 of the National Defense Authorization Act 
for Fiscal Year 1993, ``defense nuclear facilities'' for the purposes 
of community transition assistance include the following types of 
facilities under the control or jurisdiction of the Secretary of 
Energy: Atomic energy defense facilities involving production or 
utilization of special nuclear material; nuclear waste storage or 
disposal facilities; testing and assembly facilities; and atomic 
weapons research facilities. Department facilities that have been 
determined to be defense nuclear facilities for the purposes of section 
3161 are listed in Appendix B.
3. CRO Selection Criteria
    The communities surrounding each site may be represented by a 
single CRO. The selection criteria applied by the Department field 
organizations in order to designate a CRO include, but are not limited 
to, the following:
    a. The organization should be formed for the purpose of addressing 
the economic impacts in the affected communities as a result of the 
changes in the work force at a defense nuclear facility.
    b. The organization should solicit and accept participation by a 
reasonably representative cross section of public and private sector 
interests.
    c. The organization should have a reasonable process for soliciting 
public input into formulation of a Community Transition Plan and any 
major amendments to such a Plan.

D. Types of Assistance

1. Start-up Assistance for CROs
    a. The Department field organizations should solicit applications 
for financial start-up assistance for CROs in a manner which provides 
for the maximum amount of competition feasible as set forth in 10 CFR 
Part 600.
    b. This is one-time assistance to support the initial functions of 
a CRO including: Development of a public participation plan; 
development of scopes of work for impact analyses and a community 
transition plan; and development of a proposal for planning assistance.
    c. Funding for start-up assistance usually does not exceed $100,000 
and may be spent over two fiscal years. It may be applied for at any 
time in the Department budget cycle, based on knowledge by the 
Department field organization that work force reductions are likely to 
occur within 18 months.
    d. Application for the assistance should include information about 
how area local governments, economic development organizations, labor, 
and other key stakeholders will be involved with creating the CRO. 
Award of start-up assistance does not commit the Department to funding 
future CRO activities and projects.
2. Planning Assistance for CROs
    a. Planning assistance for the CROs is intended to pay for 
administrative costs and planning studies associated with the 
development of a Community Transition Plan.
    b. Planning assistance is expected generally to be in the range of 
$250,000 to $500,000.
    c. A planning assistance application should include the following 
elements:

[[Page 5807]]

    (1) The purpose and need for community transition.
    (2) A description of the CRO, including its membership, functions, 
scope, and decisionmaking procedures.
    (3) How the community transition plan will be developed. Where 
appropriate, an analysis of socio-economic strengths, weaknesses, 
opportunities and threats to the community should be included in the 
scope of work for the planning effort.
    (4) A program plan for utilization of the planning assistance 
funds, including proposed scope of work and milestones.
    (5) Required Federal grant application forms and financial 
information, as specified by the Department field organization.
    (6) A summary of the CRO-approved public participation plan which 
includes discussion of access to meetings and records, community 
involvement, fairness of opportunity for receipt of program benefits, 
and avoidance of conflicts of interest.
    (7) A discussion of CRO coordination with the applicable site, the 
Site Specific Advisory Board, and regional planning and economic 
development organizations and activities.
    (8) Identification of any non-Department resources that will be 
utilized in the planning phase of the program.
    (9) Any proposed program or project activities that are requested 
and proposed to be conducted prior to approval of the community 
transition plan together with the justification required for program 
and project assistance (see Sections II.D.4 and VI.C.3).
    (10) Written designation of the CRO by the responsible Department 
field organization.
3. Operational Assistance
    a. This is assistance to fund administrative expenses of the CRO 
beyond start-up and planning assistance.
    b. Funding for this activity may vary based upon the CRO 
organization and the degree to which the CRO is supported by other 
funding sources. It is suggested that requests normally be part of the 
Community Transition Plan and provide the appropriate information 
requested for program and project assistance in Section II.D.4 as well 
as a discussion of the steps the CRO is taking to become self-
supporting and a timetable for when the CRO will be self-supporting.
4. Community Transition Program and Project Assistance
    a. The purpose of this assistance is to fund the activities deemed 
most likely to reduce the community's dependence on the Department and 
to mitigate the negative impacts on communities resulting from the 
downsizing of defense nuclear facilities. Project assistance typically 
will provide financial assistance for a comprehensive, multi-year 
community transition program--generally a 3 to 5-year program. The 
program may be based upon community needs and may incorporate an 
analysis of the socio-economic strengths, weaknesses, opportunities, 
and threats in the community transition plan. Components may include 
programs conducted directly by the CRO, contract services, and 
competitively-based financial assistance for economic development 
activities. Types of programs that may be funded include small business 
incubators, revolving loan funds, equity position, venture and risk 
capital funding, marketing of excess Department property, 
entrepreneurial development, technology transfer assistance, and 
applicable training seminars. Inclusion of these types of programs in a 
financial assistance award will generally require special provisions in 
the financial assistance instrument. For example, if a CRO institutes a 
revolving loan fund, the loan program should not exceed an appropriate 
length of time (i.e., 5 years) and all interest and principal payments 
must be returned to the Government. The financial assistance award 
should contain appropriate guidance on repayments of loans and if 
desired, allow for reauthorization of principal repayments to be used 
for payment of other costs under the financial assistance award.
    b. In the past, program and project assistance has generally been 
in the range of $400,000 to $5 million per year at each site.
    c. The specific format for requests for program and project 
assistance will depend on the applicant. For CRO requested projects or 
programs, the request should be included in the Community Transition 
Plan as described in Section VI. For funds to be managed by the site 
independent of the CRO, the site shall submit a letter request to 
Headquarters signed by the Field Manager which contains information 
similar to that requested for prioritized projects submitted by the 
CRO, together with a letter from the CRO with the CRO's comments.
    d. The Lobbying Disclosure Act of 1995, Public Law 104-65, Dec. 19, 
1995, as amended by Public Law 104-99, Jan. 26, 1996, prohibits the 
Government from awarding financial assistance to non-profit 
organizations described in section 501 (c) (4) of the Internal Revenue 
Code of 1986 which engage in lobbying activities as defined by the Act. 
Therefore, such organizations are not eligible to receive awards of 
financial assistance.

III. Roles and Responsibilities

    A. The Secretary of Energy is responsible for the overall program 
direction and has final approval of all community transition funding 
decisions.
    B. The Director, Office of Worker and Community Transition is 
responsible for the overall management of the community transition 
program, including the following:
    1. Authorizes actions, within approved funding levels, to mitigate 
impacts of reconfiguration, downsizing, and closing of Department 
facilities.
    2. Establishes principles, policies, and procedures to implement 
the Department's community transition mission.
    3. Develops the Department-wide community transition budget, 
recommends the Department field organization budget levels for 
community transition, and establishes the criteria to be used for 
community transition program funding levels at qualifying sites.
    4. Determines allowable uses of Worker and Community Transition 
program funds within legislatively-mandated parameters.
    5. Recommends, to the Secretary, approval or denial of requests for 
community transition assistance, after consultation with other 
Department elements as necessary.
    6. Ensures coordination of the Community Transition Plan with the 
work force restructuring plans at the site.
    7. Provides liaison among other program and staff offices in 
Headquarters for community transition issues.
    8. Conducts program reviews of field implementation of the 
community transition program.
    C. Department Field Organizations are responsible for the day-to-
day administration of the community transition program. This includes 
responsibility for the following:
    1. Working within their communities to designate the local CRO in 
order to perform the roles and responsibilties as described in Section 
III.D.
    2. Assuring that CROs are entities formed for the purpose of 
addressing the

[[Page 5808]]

economic impacts in the affected communities as a result of the changes 
in the work force at a defense nuclear facility. CROs may be local 
governments, corporations or affiliations of communities and interested 
stakeholders.
    3. Soliciting applications for financial assistance and approving 
the CRO for sites under their jurisdiction; assuring that all 
interested groups are afforded the opportunity to participate in the 
CRO.
    4. Assuring that the provision in Appendix D concerning the 
standard of conduct requirements be included in each financial 
assistance award for economic development activities.
    5. Assuring that the Department's community transition policies and 
guidance are carried out in a spirit of cooperation and openness.
    6. Integrating the requirements of the community transition program 
with the requirements of other programs and activities at their sites 
and assuring that necessary support activities are identified and 
budgeted for.
    7. Providing planning guidance to the CROs for program plans and 
reviewing and approving CRO-developed community transition plans.
    8. Resolving conflicting proposed uses of the Department's assets 
under its jurisdiction.
    9. Integrating community transition locally so that it incorporates 
the work and plans of the CRO with other community transition 
activities, if any, proposed by the site.
    10. Consulting with American Indian Tribal Governments to assure 
that tribal rights and concerns are considered prior to the Department 
taking actions, making decisions or implementing programs that may 
affect tribes.
    11. Publishing financial assistance award announcements publicly to 
allow maximum participation.
    12. Assuring that there is no financial assistance or loan awarded 
to any non-profit organizations described in section 501(c)(4) of the 
Internal Revenue Code of 1986 which engages in lobbying activities as 
defined in the Lobbying Disclosure Act of 1995, as amended.
    D. Community Reuse Organizations serve to implement community 
transition activities. In this capacity the CRO will:
    1. Coordinate local community transition planning efforts that 
address Department-related impacts.
    2. Include a broad representation of the affected communities, with 
opportunity for involvement given to people and groups such as 
individual residents; representatives of community-based organizations; 
representatives of business, educational, and financial institutions; 
site workers and their labor organizations; local government officials; 
established economic and community development organizations; public 
interest groups; environmental groups; diversity groups; and federally-
recognized American Indian Tribes.
    3. Develop and submit Community Transition Plans to the appropriate 
Department field organization.
    4. Receive Department funding and participate in the management of 
community transition projects.
    5. Coordinate CRO activities with Site Specific Advisory Boards 
(SSAB) at Department facilities, particularly with regard to future 
site planning.

IV. Program Planning

A. General

    Future funding for all activities other than start-up and planning 
assistance is expected to be requested through a Community Transition 
Plan (or a letter request for Department field organization 
activities). Table 1 describes the activities expected to occur at each 
step. The intent of this process is to provide objectivity in the 
selection of project and program activities to be supported. The 
following paragraphs will describe the major activities in some detail.

B. Development of the Community Transition Plan

    Department field organizations should provide guidance to the CROs 
to assist them in developing a Community Transition Plan. Based upon 
this guidance, the CROs should prepare a Community Transition Plan for 
funding.

C. Department Field Organization and Office Reviews

    Upon completion of the CRO Community Transition Plan and any 
Department field organization projects, a field review of the Community 
Transition Plan and an Office review of both the Community Transition 
Plan and any site-sponsored projects should take place. The intent is 
for the Department field organization and the Office to jointly 
identify any needed revisions as soon as possible, thereby minimizing 
multiple requests for changes. At the end of the review period, there 
should be a plan ready for recommendation with a very high probability 
of approval by the Office.

D. Economic Development Administration in the Department of Commerce 
and the Peer Review Board

    Reviews by the Economic Development Administration in the 
Department of Commerce and the Peer Review Board should use the 
criteria in Section V to compare and assess projects and programs. The 
recommendations may be provided to the Office of Worker and Community 
Transition for their consideration in the final determinations of 
program funding.

E. Office of Worker and Community Transition Review and Decisions

    The Office will review the submitted plans, the peer review 
comments, and the independent review from the Economic Development 
Administration of the Department of Commerce. Based upon these inputs, 
and the Office staff review, final funding levels for the fiscal year 
will be recommended. After Secretarial approval and appropriate 
notifications, funds will be transferred to the appropriate Department 
field organizations for implementation of the approved program.

            Table 1.--Community Transition Funding Activities           
------------------------------------------------------------------------
           Step                               Activity                  
------------------------------------------------------------------------
(1)......................  CRO develops Community Transition Plan based 
                            upon planning guidance from the Department. 
                            If appropriate, local Department field      
                            organization develops project descriptions  
                            for any Department facility/activities to be
                            requested from the Office.                  
(2)......................  CRO submits Community Transition Plan to the 
                            Department field organization.              
(3a).....................  Department field organization conducts review
                            of Community Transition Plan and assists CRO
                            in refining proposal.                       
(3b).....................  Office concurrently assists development of   
                            the Community Transition Plan and any       
                            projects from the Department field          
                            organization.                               
(4)......................  Department field organizations submit        
                            community transition plan and field project 
                            requests to the Office for review and       
                            approval.                                   
(5)......................  Economic Development Administration and the  
                            Peer Review Board evaluate CRO Community    
                            Transition Plans and field projects.        

[[Page 5809]]

                                                                        
(6)......................  Peer Review Board Report and Economic        
                            Development Administration Reports are      
                            submitted to the Office.                    
(7)......................  The Office conducts internal review.         
(8)......................  The Office makes funding award decision.     
(9)......................  The Office authorizes release of funds into  
                            Department field organization financial     
                            plan.                                       
(10).....................  Community transition funds are available to  
                            recipients.                                 
------------------------------------------------------------------------

V. Evaluation Criteria for Review of Projects and Programs

    The following factors will be used to evaluate all project and 
program funding requests in Community Transition Plans:
    A. Projected job creation (communities should seek to create at 
least one job for each $10,000 to $25,000 in Federal funding received, 
leveraging those funds to attract other private and public funds).
    B. Projected job creation for workers affected by downsizing.
    C. Viability of project to induce investment/growth in production 
of goods and services for which the community may have or be able to 
develop a comparative economic advantage.
    D. Ability to reduce the region's dependence on the Department.
    E. Consistency with the identified strengths of the region.
    F. Past performance of the applicant, if any.
    G. Amount of local participation in the project, either financially 
or in terms of coordinated services.
    H. Demonstrated cooperation with regional or state economic 
development efforts.
    I. Ability of project to become self-sufficient.
    J. Linkage of project to site cost reductions through transfer of 
site equipment, facilities or technologies.
    K. Other unique factors such as innovative features of the proposed 
project, such as matching funds.

VI. Community Transition Plans

A. Purpose

    1. The Community Transition Plan describes the overall strategies 
and, within each strategy, the actions proposed by the communities to 
respond to the changing missions at a Department facility. Where 
appropriate, it also describes the proposed programs, projects and 
estimated funding requested from the Department. It is the overall 
framework and the rationale for the local response to the downsizing at 
the Department facility.
    2. The Plan serves an integrating function, building upon other 
existing community and facility planning efforts in the region. It 
should describe those efforts, the lessons learned from them, and 
should focus on the additional, supplemental efforts the community 
believes are necessary and useful to respond to the changes at the 
Department facility. It should not duplicate other planning efforts, 
but would afford the community an opportunity to highlight innovations 
to address the impacts of downsizing.

B. General

    1. Initial planning grants from the Department should be used by 
CROs to prepare and submit to the Office a Plan for anticipated 
community transition activities. This Plan should be submitted through 
and be approved by the appropriate Department field organization.
    2. While each community faces unique transition challenges and will 
develop a plan specific to its situation, there are common topical 
areas that should be addressed in all Plans. The following paragraphs 
offer guidance on what the Office considers critical components of a 
Community Transition Plan. These are elements to be addressed in the 
Plan, not necessarily an outline of the developed Plans. The continued 
allocation of the Department's limited financial and other available 
resources will be contingent upon the completion of the Plan and its 
contents. Both short-term and long-term objectives may be included.

C. Community Transition Plan Components

1. Planning Analysis
    a. An analysis should be performed to establish the primary and 
secondary community impacts likely as a result of planned site 
restructuring. From a baseline established from local information 
sources, project the likely impacts on such primary factors as net job 
loss, changes in unemployment, loss of wages and disposable income, and 
business closings. Secondary impacts could include such factors as 
decreases in taxes and other user fees, loss of business and sales 
volumes, decreases in property values and other factors. Impacts on 
education, cultural activities, recreation, the environment and other 
socio-economic factors should also be considered. From an analysis of 
these impacts, develop a set of issues.
    b. A critical part of the Community Transition Plan is the analysis 
of strengths, weaknesses, opportunities and threats (SWOT analysis) to 
the community. This can be performed with planning assistance funds, or 
existing studies can be used. With the SWOT analysis as a framework, 
set out an overall vision for the community and identify the programs 
and projects to be established, including the degree to which the 
programs and projects address the issues.
2. Stakeholder Involvement
    Stakeholders should have the opportunity to participate in the 
planning process. Identify stakeholders providing input to the Plan, 
describe method of input, and common areas of interest. A communication 
strategy should also be a component of insuring proper representation 
and community input into the planning and implementation process. This 
should also include CRO coordination with the applicable site and other 
groups, such as: any Site Specific Advisory Boards; regional planning 
and economic development organizations and activities; labor; the 
business community; academic communities; and American Indian Tribal 
Governments.
3. Prioritized Projects
    Develop a list of prioritized projects or programs based on the 
above considerations with an overall project budget and schedule for 
completion of each. The following items are suggested topics for 
discussion for each project:
    a. The primary goal of transition initiatives is the creation of 
jobs through the retention, expansion, and creation of businesses, and 
through other measures, to offset the economic impacts of the 
Department's work force restructuring actions. The Plan should identify 
likely benefits to workers displaced by the Department and the area's 
work force in general.

[[Page 5810]]

    b. Amount, type, timing, and continuity of funding available from 
non-Department sources such as the U.S. Department of Labor's Job 
Training Partnership Act and the U.S. Department of Commerce's Economic 
Development Administration. Also include any state and local funding, 
and any private development sources, such as venture capital, financial 
institutions, revenue bonds, seed capital, revolving loans and other 
private funds. The use of these funds should be set out relative to any 
Department funding provided.
    c. Coordination with other community programs.
    d. Performance measures for each project.
    e. A proposed scope of work, timeline, and reporting schedule 
(generally, quarterly) of proposed activities, accomplishments, and 
expenditures.
    f. Required Federal grant application forms and financial 
information, as specified by the Department field organization.
    g. Any anticipated preferences or non-traditional competition 
elements of the program, and their relationship to program objectives.
    h. A discussion of CRO coordination with units of Federal, state, 
local, or tribal governments. Demonstration that proposed projects will 
augment and not duplicate current community efforts.
    I. Plans, if any, to support CRO operating and program costs 
following completion of the project grant (e.g., self-sustaining 
mechanisms, local or non-Department support, revenue/income generation, 
future Department funding, or transfer of programs to other 
organizations).
    j. Identification of any time-sensitive opportunities, or other 
pertinent background information.
    k. If multi-year funding is anticipated, show how this year's 
increment related to prior-year activities and what will happen if 
future year funding is reduced or eliminated.


VII. Performance Measures

A. Purpose

    1. Performance measures represent a mechanism that the CROs and the 
Department can use to monitor performance. They do this by providing a 
means for: (1) determining how well a project is being executed; (2) 
indicating when corrective actions are required; and (3) documenting 
success.
    2. Performance measures establish a mechanism for program 
assessment. It is suggested that the CROs use the results of their 
performance measures for self assessment purposes. The Department field 
organization and Headquarters staff should use the same results for 
purposes of external oversight.
    3. Performance measures should be used to allow the Department to 
provide objective and defensible indications to the Congress and to the 
American people that the Department's economic development program is 
effective.
    4. Finally, since the intent of performance measures is to evaluate 
program execution, performance measures need not be developed for 
start-up or planning assistance.

B. Guidance

    1. The CROs are responsible for developing performance measures 
based on this guidance and on their unique circumstances, goals, and 
objectives. The final measures should be negotiated with the 
appropriate Department field organization and, ultimately, approved by 
the Office.
    2. Many CROs may have similar objectives. The Office encourages, 
but does not require, developing consistent performance measures in 
such cases and also encourages sharing best-practices and lessons-
learned to the maximum extent possible.
    3. Performance measures should not focus on minor aspects of 
performance, rather, they should comprehensively measure critical 
aspects of performance for any enterprise.
    4. Performance measures and objectives should not be so difficult 
that they cannot be achieved through a reasonable amount of effort, nor 
shall they be excessively easy to achieve.
    5. Performance measures shall be periodically assessed by the CROs 
and the results reported to the Department field organization and the 
Office.
    6. When a performance measure is no longer providing useful 
information, it should be eliminated or replaced.
    7. Performance measures shall be measurable in a numerical fashion 
to the maximum extent possible. Where numeric measurement is not 
possible, performance measures shall be evaluated against a clearly 
defined set of criteria.
    8. In cases where grant requests are small (i.e., less than 
$300,000), a less stringent requirement for performance measures may 
apply.
    9. On a quarterly basis, the CROs should submit a progress report 
to Department Headquarters via the appropriate Department field 
organization. The quarterly progress reports should contain, among 
other things, updated information on the CRO's performance measures. 
The progress report format may be found in Appendix C.

C. Model

    Per the above guidance, the individual CROs should be tasked with 
developing performance measures for their particular enterprise. The 
Office recognizes that:
    1. The various CROs will have different missions, objectives, and 
priorities; the CROs are best equipped to determine what constitutes a 
good measure of performance for their particular situation.
    2. The CRO missions are dynamic, and, therefore, their objectives 
may change from time-to-time. As a consequence, what constitutes a good 
performance measure today may not be appropriate tomorrow; therefore, 
the CROs should be allowed the flexibility to alter their performance 
measures, with the Office's concurrence, to more closely align with 
changing missions and objectives.
    3. The CROs should have latitude in regard to the substance and 
nature of their performance measures. However, it is suggested that 
they follow generally recognized principles for developing and 
measuring performance. By employing a performance measurement system, 
the Department will be able to assess and describe the effectiveness of 
the program. This will assist in determining appropriate levels for the 
program in future years and will help each site and each CRO assess the 
effectiveness of its program.

D. Areas to Address

    The following paragraphs delineate the types of issues that should 
be considered when developing a performance measurement program.
    1. Job creation: The act of creating jobs that did not previously 
exist in a defined marketplace, especially jobs that will assist 
displaced workers from the affected site. Communities should seek to 
create at least one job for each $10,000 to $25,000 in Federal funding 
received, leveraging those funds to attract other private and public 
funds.
    2. Job retention: Holding in place the existing work force and 
providing substitute employment for at-risk or displaced workers within 
a defined geographic area.
    3. Regional development: Enhancement of the attributes of a 
geographic area to promote the commonly-held and understood assets of 
that region.
    4. Business start-ups: New commercial or industrial enterprises, 
legal entities, partnerships, etc.

[[Page 5811]]

    5. Expansion of existing businesses: The ability to hire more 
workers and to increase the demand for goods and services ultimately 
stimulating the economy (e.g., increase revenues, broaden the tax 
base).
    6. Economic diversification: Any activity within a defined 
geographical area that makes the area less dependent upon Department 
business.
    7. Training: Providing skills and classes necessary to prepare 
workers to maintain the skills required to continue in one's current 
position or alternative job.
    8. Commercialization: The act of making assets (e.g., technologies, 
use of facilities or equipment) under Department control available for 
third party use or for use by the M&O contractor for non-Department 
business activities.
    9. Facility reuse: The reuse of Department facility real estate and 
fixtures including buildings, land, and facilities that are not needed 
for the Department's traditional missions.
    10. Leveraging: The ability of the CRO to commit non-Department 
resources as a match for Department funds requested. Leveraging should 
be indicated as a ratio of non-Department to Department resources, 
e.g., if a CRO requests a $100,000 grant and commits $50,000 in non-
Department matching funds, the leveraging factor would be 1:2.
    11. Matching funds: Defined as non-Department resources committed 
to CRO programs. Matching funds may include the following:
    a. Cash--funds committed to projects to pay for various program 
activities, including personnel, equipment, materials, supplies, 
facilities, etc.
    b. In-kind--contributions other than cash committed to program 
activities. In-kind contributions may include personal time, donated 
facility space, equipment loans or value of discounted services.
    12. Personal property transfer: The transfer of Department-
controlled equipment, supplies, and intellectual property to another 
entity--can involve transfer of title, licensing or leasing of the 
property.
    13. Community relations: Broad-based solicitation and encouragement 
of public awareness and participation in decision-making processes.
    14. Administration, Outreach and Finance: Business systems and 
processes incorporated to manage the development and implementation of 
the community transition program, including community involvement and 
fiscal responsibilities (e.g., contractual compliance, auditing, the 
raising and expending of monies, granting credit, and making 
investments).

VIII. Reviews

A. Financial Management Reviews

    1. Generally, the Department field organizations should apply the 
requirements of Departmental financial assistance policies and 
procedures which are set forth in 10 CFR Part 600. Those sections of 
the CFR provide guidance in the various aspects of financial assistance 
management including general administrative requirements, reports and 
records, making changes in the grant scope, and auditing requirements.
2. Purpose
    Careful monitoring of program implementation is necessary due to 
the level of public involvement in community transition activities. The 
Office is responsible for establishing appropriate standards to assure 
proper accounting for the use of community transition assistance funds.
3. Procedures
    a. Conduct financial management reviews of Department field 
organization community transition programs on an as-needed basis. 
Specific areas of review are: Financial reporting; accounting records; 
internal control; budget control; allowable cost; source documentation; 
cash management; and project accounting.
    b. The Office should track completed grants and close-out reports 
that address audit findings.

B. Program Reviews

    The Office plans to conduct programmatic reviews of Department 
field organizations to assess accomplishments, determine progress and 
identify issues needing study. These reviews should be performed on a 
frequency and at locations as determined by the Office Director, and 
should be coordinated with the management of the Department field 
organization being reviewed. The Office should not review the CROs, 
except when accompanying a Department field organization during its 
review. It is the general goal of the Office to review each Department 
field organization that is implementing a community transition program 
at least once every year.

Appendix A

Office of Worker and Community Transition Contacts

Director:                                                                                                       
    Bob DeGrasse.......................................  202-586-7550, FAX 586-8403.                            
Deputy Director:                                                                                                
    Terry Freese.......................................  202-586-5907, FAX 586-8403.                            
Program Communications:                                                                                         
    Pat Parizzi........................................  202-586-7550, FAX 586-8403.                            
Work Force Planning:                                                                                            
    Lyle Brown.........................................  202-586-0431, FAX 586-1540.                            
    Laurel Smith.......................................  202-586-4091, FAX 586-1540.                            
    Debby Swichkow.....................................  202-586-0876, FAX 586-8403.                            
Work Force Restructuring:                                                                                       
    Terry Freese.......................................  202-586-5907, FAX 586-8403.                            
Labor Relations:                                                                                                
    Lyle Brown.........................................  202-586-0431, FAX 586-1540.                            
    Deborah Sullivan...................................  202-586-0452, FAX 586-1540.                            
Community Transition:                                                                                           
    Bob Baney..........................................  202-586-3751, FAX 586-1540.                            
    Mike Mescher.......................................  202-586-3924, FAX 586-1540.                            
    Laurel Smith.......................................  202-586-4091, FAX 586-1540.                            
    Debby Swichkow.....................................  202-586-0876, FAX 586-8403.                            
Public Participation:                                                                                           
    Laurel Smith.......................................  202-586-4091, FAX 586-1540.                            
    Natasha Wieschenberg...............................  202-586-5830, FAX 586-1540.                            
                                                                                                                

[[Page 5812]]

                                                                                                                
        Community Transportation Field Contacts                                                                 
Paul Dickman, Albuquerque Operations Office............  505-845-4313, FAX 845-5508.                            
Gary Stegner, Fernald Environmental Management Site....  513-648-3153, FAX 648-3073.                            
Ken Osborne, Idaho National Engineering Laboratory.....  208-526-0805, FAX 526-8789.                            
Dave Porco, Miamisburg Area Office.....................  513-865-3649, FAX 865-4489.                            
Darwin Morgan, Nevada Operations Office................  702-295-3521, FAX 295-0154.                            
Bob Hamilton, Oak Ridge Operations Office..............  423-576-7723, FAX 576-6363.                            
Gene Pressoir, Pinellas Area Office....................  813-541-8062, FAX 541-8370.                            
Mike Dabbert, Portsmouth Gaseous Diffusion Plant.......  614-897-5525, FAX 897-2982.                            
Mark Coronado, Richland Operations Office..............  509-376-3502, FAX 376-8142.                            
Mike Bolles, Rocky Flats Office........................  303-966-2473, FAX 966-6633.                            
Sam Glenn, Savannah River Operations Office............  803-725-2425, FAX 725-1910.                            
                                                                                                                

Appendix B.--Listing of Defense Nuclear Facilities

    The list below reflects facilities receiving funding for Atomic 
Energy Defense activities of the Department of Energy, with the 
exception of activities under Naval Reactor Propulsion. It is 
recognized that these facilities have varying degrees of defense 
activities, ranging from a total defense dedication to a very small 
portion of their overall activity. This may cause certain 
difficulties in implementing the intent of the section 3161 
legislation. Regardless, this listing will be used by the Office for 
possible application of funding received for defense worker 
assistance and community transition purposes.

Kansas City Plant
Pinellas Plant
Mound Facility
Fernald Environmental Management Project Site
Pantex Plant
Rocky Flats Environmental Technology Site, including the Oxnard 
Facility
Savannah River Site
Los Alamos National Laboratory
Sandia National Laboratory
Argonne National Laboratory
Brookhaven National Laboratory
Lawrence Livermore National Laboratory
Oak Ridge National Laboratory
Nevada Test Site
Y-12 Plant
K-25 Plant
Hanford Site
Idaho National Engineering Laboratory
Waste Isolation Pilot Project
Portsmouth Gaseous Diffusion Plant
Paducah Gaseous Diffusion Plant

Appendix C.--Quarterly Progress Report: (Date)

Project Title: (a name selected by the site for the specific 
activity or activities--e.g.; incubator loan fund; entrepreneurial 
training. The site and the CRO will determine the best method for 
project definition, consistent with the way funds were requested and 
approved.
DOE Site Contact: (name of DOE Field or Area Office point of 
contact)
CRO Contact: (name of CRO point of contact [if different from the 
project manager])
Project Manager: (name, address, and phone number of the primary 
applicant of the project under review)
Project start date: (date funding recipient is authorized to proceed 
by the field office)
Expected completion date: (Date funding recipient is expected to 
complete the project)
Description of project: (a short narrative description of the 
project.)
Funding History: (a record of the project funding. Committed means 
funds released to a field organization by the Office of Worker and 
Community Transition [the Office]; obligated means monies released 
to the CRO or other recipient by the field organization; and costed 
means expended by the CRO or other recipient.)

------------------------------------------------------------------------
        Status of the office funds                Cumulative amount     
------------------------------------------------------------------------
Committed by the Office...................                              
Obligated by the field organization.......                              
Costed by the recipient...................                              
Unobligated by the field organization.....                              
------------------------------------------------------------------------

    For the Office funding, identify the cumulative amount committed by 
the Office; the cumulative amount obligated by the field office; the 
amount unobligated; and the amount costed by the recipient. For 
leveraged funds, identify each source and the cumulative amount from 
that source.

------------------------------------------------------------------------
         Funding source                  Cash               In-kind     
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

    Accomplishments: (project outcomes to-date: report on 
performance measures identified and jointly agreed to by DOE field 
and the CRO)

                                              Performance Measures                                              
----------------------------------------------------------------------------------------------------------------
                                    Scheduled                          Actual    Progress to-date (or to the end
             Category                 date       Projected outcome      date             of the project)        
----------------------------------------------------------------------------------------------------------------
(e.g., create new businesses)....        9/94  Start-up 2                 12/94  3 new businesses.              
                                                businesses.                                                     
(e.g., create new jobs)..........        9/94  20 jobs.............       10/94  30 jobs.                       
----------------------------------------------------------------------------------------------------------------

    Date (Joint signature) DOE Field Office
    Date (Joint signature) CRO

Appendix D.--Requirement for Financial Assistance--10 CFR Part 600

    Section 600.142 of 10 CFR Part 600 contains a requirement for 
recipients of financial assistance to maintain written standards of 
conduct governing the performance of employees engaged in the award 
and administration of contracts. Since organizations involved in 
economic development activities may engage in activities other than 
contracting, in which potential conflicts of interest may arise 
(e.g., providing loans to local businesses), the following provision 
should be included in all financial assistance awards to such 
entities:
    The requirements of 10 CFR 600.142 should be applied to the 
activities of employees, agents and consultants of financial 
assistance recipients whenever these activities involve decisions 
about the award of DOE funds, regardless of the type of agreement or 
arrangement to be supported by DOE funds (e.g., lease, loan, 
contract, etc.).

[FR Doc. 97-2933 Filed 2-6-97; 8:45 am]
BILLING CODE 6450-01-P