[Federal Register Volume 63, Number 73 (Thursday, April 16, 1998)]
[Notices]
[Pages 19143-19150]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10157]



Federal Register / Vol. 63, No. 73 / Thursday, April 16, 1998 / 
Notices

[[Page 19143]]



DEPARTMENT OF AGRICULTURE

Office of the Secretary


Notice Inviting Applications for Designation of Rural Empowerment 
Zones

AGENCY: Office of the Secretary, USDA.

ACTION: Notice inviting applications.

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

SUMMARY: This Notice invites applications from state and local 
governments, Indian tribal governments, regional planning agencies, 
non-profit organizations, community-based organizations, or other 
locally-based organizations on behalf of rural areas nominated for 
designation as Empowerment Zones (EZs) as this term is defined in this 
Notice and in an interim rule published elsewhere in today's Federal 
Register. An application may be prepared and submitted by any one of a 
broad range of entities; however, the rural area in question must be 
nominated for designation by the state, local and Indian tribal 
governments having jurisdiction over the nominated area. The interim 
rule provides guidance which is supplemental to that provided in this 
Notice and which is necessary for completion and submission of 
applications.

DATES: Application due date: The deadline for receipt of a complete 
application is 5 p.m. Eastern Daylight Savings Time, October 9, 1998. 
Applications received after this date will not be considered. 
Applications may not be submitted prior to 30 days from the date of 
publication of the interim rule.

ADDRESSES: Application materials may be obtained from U.S. Department 
of Agriculture (USDA) Rural Development Offices listed in appendix A to 
this Notice or by sending an Internet Mail message to 
www.ezec.gov">``round2.rural@www.ezec.gov''.

FOR FURTHER INFORMATION CONTACT: Deputy Administrator, USDA Office of 
Community Development, EZ/EC Team, Reporters Building, Room 701, STOP 
3203, 300 7th Street, SW, Washington, DC 20024-3203, telephone 1-800-
851-3403, or by sending an Internet e-mail message to 
www.ezec.gov">``round2.rural@www.ezec.gov'' to obtain information. Information may 
also be obtained at the following website: ``http://www.ezec.gov/
round2''.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The information collection requirements contained in this Notice 
have been approved by the Office of Management and Budget (OMB) on an 
emergency basis through August 31, 1998 and assigned control numbers 
0570-0026 (Application burden) and 0570-0027 (Reporting burden). See 
the interim rule on ``Designation of Rural Empowerment Zones and 
Enterprise Communities'' published elsewhere in this issue of the 
Federal Register for additional information on this subject, including 
the opportunity to comment on the burden of the information 
collections.

I. Background

    One of the core items of President Clinton's economic proposals is 
the need to empower America's distressed rural and urban communities. 
His Empowerment Zone proposal represents a new approach to the problems 
of distressed communities. It emphasizes a bottom-up community based 
strategy rather than the traditional top-down bureaucratic approach. It 
is a strategy to address economic, human, community, and physical 
development problems and opportunities in a comprehensive fashion.
    Title IX of the Taxpayer Relief Act of 1997 authorized the 
Secretary of the U.S. Department of Agriculture (Secretary) to 
designate up to five rural Empowerment Zones (``Round II'') in addition 
to those rural empowerment zones and enterprise communities designated 
by the Secretary in December 1994 pursuant to title XIII of the Omnibus 
Budget Reconciliation Act of 1993 (``Round I''). Notice of the Round I 
designations was published on May 10, 1995 (60 F.R. 24828). This Notice 
invites applications from State and local governments, Indian tribal 
governments, regional planning agencies, non-profit organizations, 
community-based organizations, or other locally-based organizations on 
behalf of rural areas nominated for designation as Empowerment Zones in 
this second round.
    The program is intended to combine the resources of the Federal 
Government with those of State and local governments, educational 
institutions and the private and non-profit sectors to implement 
community-developed strategic plans for economic development. The 
Federal Government has taken steps to coordinate Federal assistance in 
support of the Empowerment Zones, including expedited processing and 
priority funding. To that end, President Clinton issued an Executive 
Memorandum dated September 9, 1993 establishing a Community Empowerment 
Board chaired by Vice President Al Gore to ensure the success of the 
Empowerment Zone initiative.
    The first round of Empowerment Zone and Enterprise Community 
designations made in 1994 featured grants from the U.S. Department of 
Health and Human Services to States for the designated Empowerment 
Zones and Enterprise Communities. While similar grant funds have not 
been authorized for the Round II Empowerment Zones, we anticipate that 
funding may become available in Fiscal Year 1999.

II. Eligibility

    The authorizing legislation specifies certain criteria that must be 
satisfied in order for an area to be eligible for Empowerment Zone 
designation, including population, general distress, geographic size 
and boundary configuration, and poverty rate by census tract (or by 
block numbering areas when the community is not delineated by census 
tracts; nominated areas in Alaska and Hawaii have the option of 
qualifying by block groups). The details of these requirements are 
described in the interim rule published elsewhere in today's Federal 
Register (interim rule). Unless specified otherwise, the terms used in 
this Notice, inclusive of the appendices, shall be defined as set forth 
in the interim rule. All section references refer to the interim rule.
    This information must be provided in the application. USDA will 
accept certifications of the data by the state and local governments, 
subject to further verification of the data prior to designation as an 
Empowerment Zone.

III. Designation Factors

    The statute specifies three factors to be considered by the 
Secretary in designating Empowerment Zones: (1) The effectiveness of 
the strategic plan; (2) the effectiveness of the assurances provided in 
support of the strategic plan; and (3) other criteria to be specified 
by the Secretary. Each of these factors is discussed in greater detail 
in the interim rule. The required form and content of the application 
and the strategic plan are elaborated upon in this Notice.

IV. Timing and Location of Application Submissions

    Application materials may be obtained from USDA Rural Development 
offices listed in the appendix to this Notice or by sending an Internet 
e-mail message to: www.ezec.gov">``round2.rural@www.ezec.gov''. They are also 
available at the following website: ``http://www.ezec.gov/

[[Page 19144]]

round2''. An application may be submitted not earlier than 30 days 
after the date of publication of the interim final rule governing Round 
II. The deadline for receipt of the complete application is 5 p.m. 
Eastern Daylight Savings Time, October 9, 1998. Applications received 
after that time will not be accepted, and will be returned to the 
sender. As the applications require certifications from the state and 
local governments, we cannot accept applications sent by FAX or through 
the internet system. The original application and two paper copies 
should be sent to: U.S. Department of Agriculture, Office of Community 
Development, Reporters Building, 300 7th Street, SW, Room 701, 
Washington, DC 20024.
    Applicants will be notified in the event of an incomplete 
application. Provided that the application is received at the above 
address with sufficient time before the deadline, applicants will be 
given an opportunity to provide the missing information to USDA.

V. Notice of Intent To Participate

    Prospective applicants should complete and submit a Notice of 
Intent to Participate substantially in the form provided in appendix B 
to this Notice. A Notice form is included in the application materials; 
it may also be obtained by sending an Internet e-mail message to 
www.ezec.gov">``round2.rural@www.ezec.gov''. Applicants may also submit the notice 
via the internet by filling out the form on-line at the following 
website: ``http://www.ezec.gov/round2''. Applicants and other 
participants may wish to submit the form in order to be placed on the 
Empowerment Zone and Enterprise Community mailing list. While the 
notice is not mandatory for participation in the program, USDA 
encourages the submission of the notice as it will permit the 
Department to provide prospective applicants with updated information 
on program requirements as well as information on technical assistance.

VI. Application Materials

    A. Application materials available from USDA consist of the 
following:
    (1) Round II application form.
    (2) Round II application guide.
    B. The Application to be submitted on behalf of nominated rural 
areas shall include the following (``Application''):
    (1) A nomination package including:
    (a) Round II application form parts I through IV; and
    (b) The required certifications and written assurances contained in 
Sec. 25.200(b) of the interim rule which are not otherwise included in 
part III of the Round II application form;
    (2) A strategic plan which meets the requirements of the interim 
rule and the form and content requirements specified in section VII of 
this Notice; and
    (3) Maps. Attach a copy of the 1990 census map that shows the 
boundaries of:
    (a) The local governments discussed in part I of the Application 
Form (Nomination);
    (b) The nominated area; and
    (c) Developable sites, if any.

VII. Strategic Plan

    A. The strategic plan to be submitted on behalf of the nominated 
area shall conform with the requirements contained in Sec. 25.202 and 
Sec. 25.303 of the interim rule. Each major section of the strategic 
plan should address how the plan will achieve the four key principle 
objectives contained in Sec. 25.202.
    B. The strategic plan must be organized into two separate volumes. 
Each volume should prominently identify the nominated area and be 
organized and labeled in the following sections and specified sequence.
    C. Volume I of the Strategic Plan (``Documentation''). Volume I 
must include the following sections and content:
    (1) Section 1--Participants.
    (a) Applicant and Lead entities: the name, address, description and 
primary contact person for the entity that will be the lead managing 
entity for the proposed Empowerment Zone. Clarify whether the applicant 
is different from the proposed lead managing entity; if so, provide the 
same information for the applicant entity;
    (b) Participating entities: a list of and descriptions of the 
specific groups, organizations, and individuals participating in the 
production of the strategic plan, and descriptions of the history of 
these groups in the community; and
    (c) An explanation of how participants in the planning process were 
selected and evidence that the participants, taken as a whole, are 
broadly representative of the entire community.
    (2) Section 2--The Planning Process.
    (a) Descriptions of how the participants created and developed the 
strategic plan;
    (b) Identification of two or three topics addressed in the 
strategic plan that caused the most serious disagreements among 
participants and a description of how those disagreements were 
resolved; and
    (c) An explanation of how the community residents and key 
organizations participated in choosing the area to be nominated and why 
the area was nominated.
    (3) Section 3--Eligibility.
    (a) Include information not otherwise provided in the application 
form, or use this section if additional space is needed to provide 
eligibility information; and
    (b) Maps and a general description of the nominated area.
    (4) Section 4--Economic and Social Conditions. Detailed statistical 
information, including tabular and graphical information, not included 
in volume II, should be included in this section.
    (5) Section 5--Implementation. This section should include:
    (a) Descriptions of the roles which each participating entity, 
identified in volume I, section 1, will have in implementing the 
strategic plan; and
    (b) Evidence that key participating entities have the capacity to 
implement the strategic plan.
    (6) Section 6--Public Information. This section should include 
newspaper clippings, photographs, news releases and other materials 
relating to the community and its strategic planning process.
    (7) Section 7--Letters of Support. Letters of support which are 
submitted as part of the Application should be grouped in this section 
of the strategic plan.
    (8) Section 8--Other Attachments. Any other materials, including 
non-standard items such as videotapes, should be included in this 
section, or where, impractical, should be listed in this section and 
attached as separate items.
    D. Volume II of the Strategic Plan (``Plan''), Part I. Volume II 
must contain four major subparts of which part I must include the 
following sections and content:
    (1) Section 1--Vision and Values. The community's strategic vision 
for change--a statement of what the community would like to be like in 
the future together with a statement of the community's values which 
guided its planning process and which will guide its implementation of 
the strategic plan.
    (2) Section 2--Community Assessment. A comprehensive assessment of 
existing conditions and trends in the nominated area in two 
subsections:
    (a) Assessment of Problems and Opportunities. A description and 
assessment of problems and opportunities. This subsection must identify 
those baseline conditions which the community wishes to improve as a 
result of the strategic plan.

[[Page 19145]]

It may include priority rankings by the community of problems and 
opportunities to be addressed by the strategic plan.
    (b) Resource Analysis. An assessment of the resources available to 
the community, including financial, technical, leadership, 
volunteerism, skills and other community assets which may be tapped in 
implementing the strategic plan.
    (3) Section 3--Goals. A statement of a comprehensive and holistic 
set of goals to be achieved through implementation of the strategic 
plan throughout the 10-year implementation period. This section should 
also include an index of topics and related benchmark activities which 
are incorporated in the strategic plan (education, criminal justice, 
economic development, housing, health care, water and sewer, etc.) so 
as to facilitate the sharing of information across Federal agencies 
such that they may more readily recognize how they may be able to 
support the Empowerment Zone during the implementation phase.
    (4) Section 4--Strategies. A statement of the strategies the 
community proposes to use to achieve its strategic plan, in particular, 
the principal objectives of economic opportunity and sustainable 
community development contained in Sec. 25.202 (a)(3) and (a)(4).
    E. Volume II of the Strategic Plan (``Plan''), Part II. The second 
major subpart of volume II must include the following sections and 
content:
    (1) Section 1--Phase I work plan. The information required pursuant 
to Sec. 25.403(c)(1) for the initial two years of the designation 
period.
    (2) Section 2--Phase I operational budget. The information required 
pursuant to Sec. 25.402(c)(2) for the initial two years of the 
designation period.
    (3) Section 3--Uses of EZ/EC SSBG grants: A detailed explanation of 
how the applicant proposes to use any Empowerment Zone/Enterprise 
Community Social Services Block Grant (EZ/EC SSBG) funds that become 
available to States for use by designated rural Empowerment Zones. 
General guidelines concerning uses of EZ/EC SSBG funds are included in 
appendix C to this Notice and on the Internet at http://
aspe.os.dhhs.gov/progsys/HHSguide.htm. Applicants are encouraged to 
review the guidelines.
    F. Volume II of the Strategic Plan (``Plan''), Part III. The third 
major subpart of volume II should be titled ``Continuous Quality 
Improvement Plan''. Part III should present the community's plan for 
evaluating and learning from its experiences. It should also detail the 
methods by which the community will assess its own performance in 
implementing its benchmarks and the process it will use for revising 
its strategic plan and benchmark goals. Part III should include the 
following sections and content:
    (1) Section 1--Participation. The proposed procedures for assuring 
continuous, broad based community participation in the implementation 
of the strategic plan;
    (2) Section 2--Incorporation of experiences. The methods proposed 
for incorporating learning from experience gained during implementation 
of the strategic plan and from information obtained from other sources 
into revisions of the strategic plan, benchmark goals and 
implementation methods and procedures;
    (3) Section 3--Benchmark review. The proposed procedure for 
reviewing benchmark progress within the community; and
    (4) Section 4--Benchmark amendment. The proposed procedure for 
amending and revising benchmark goals and benchmark activities.
    G. Volume II of the Strategic Plan (``Plan''), Part IV. The fourth 
major subpart of volume II should be titled ``Administration Plan''. 
Part IV should present the community's plan for administering the 
implementation of the strategic plan. It should include the following 
sections:
    (1) Section 1--Lead entity. The name of the proposed lead entity 
organization, its existing and planned future legal status and 
authority to receive and administer funds pursuant to Federal and state 
and other nonprofit programs;
    (2) Section 2--Capacity. Evidence, including an audited financial 
statement as of the most recent fiscal year, that the lead entity and 
other key organizations implementing the strategic plan have the 
capacity to implement the strategic plan. If the lead entity is not yet 
established, provide evidence of its proposed capitalization;
    (3) Section 3--Board membership. The membership of the proposed 
Empowerment Zone board and the selection procedures;
    (4) Section 4--Partnerships. The relationship between the EZ board 
and local governments and other major regional and community 
organizations operating in the same geographic area;
    (5) Section 5--Public information. The proposed methods by which 
citizens of the Empowerment Zone and partnership organizations will be 
kept informed about the Empowerment Zone's activities and progress in 
implementing the strategic plan;
    (6) Section 6--Public participation. The methods and procedures by 
which the Empowerment Zone proposes to implement the principal 
objective of community based partnerships pursuant to 
Sec. 25.202(a)(2).

VIII. Counties Which Meet the Outmigration Test for Purposes of 
Sec. 25.104(b)(2)(iii) of the Interim Rule

    For purposes of volume I, section 3--Eligibility, counties which 
meet the outmigration test for purposes of Sec. 25.104(b)(2)(iii) of 
the interim rule are listed in appendix D to this Notice.

IX. Round I and Round II Champion Communities

    Round I and Round II applicants which have been granted the status 
of Champion communities will be notified in writing by USDA.

X. Memorandum of Agreement

    It is expected that a Memorandum of Agreement (MOA) will be entered 
into relating to each designated Round II Empowerment Zone. The MOA 
shall conform in all material respects to the form of MOA provided in 
appendix E to this Notice.

XI. Miscellaneous

    Empowerment Zone designation does not constitute a Federal action 
for provisions of the Uniform Relocation Act. However, any activity 
constituting a Federal action that may result from such a designation 
may be subject to the provision of this Act, as well as any other 
statutory or regulatory provisions governing the particular Federal 
action.
    All designation reviews will be conducted in compliance with 
Federal civil rights laws.

    Dated: April ______, 1998.
Dan Glickman,
Secretary of Agriculture.

List of Appendices

A--Rural Development State EZ-EC State Contacts
B--Notice of Intent to Participate
C--EZ/EC SSBG Guidance from HHS
D--Counties which meet the Outmigration test
E--Form of Memorandum of Agreement

Appendix A: EZ/EC State Contacts

Alabama

Chris Harmon, Rural Development, Sterling Center, 4121 Carmichael 
Road/Suite 601, Montgomery, AL 36106-3683, phone: 334-279-3400, fax: 
334-279-3403

Alaska

Frank A. Muncy, Rural Development, 800 W. Evergreen, Suite 201, 
Palmer, AK 99645-6539, phone: 907-745-2176, fax: 907-745-5398

Arkansas

Shirley Tucker, Rural Development, Federal Building, Room 3416, 700 
W Capitol, Little

[[Page 19146]]

Rock, AR 72201, phone: 501-324-6284, fax: 501-324-7351

Arizona

Dennis Daniels, Rural Development, 2585 North Grand Avenue, Suite 
#5, Nogales, AZ 85621, phone: 520-281-1068 (voice), phone: 602-609-
0699 (cellular), fax: 520-281-1460

California

Gina Briley, Rural Development, 194 W Main Street/ Suite F, 
Woodland, CA 95695, phone: 530-668-2000, fax: 530-668-2055

Colorado

Vic Crain, Rural Development, 655 Parfet, Room E-100, Lakewood, CO 
80215, phone: 303-236-2801 Ext. 134, fax: 303-236-2854

Delaware/Maryland

Joseph E. O'Neil, Rural Development, 5201 South Dupont Highway, P.O. 
Box 400, Camden, DE 19934, phone: 302-697-4304, fax: 302-697-4390

Florida/Virgin Islands

Glenn Walden, Rural Development, 4440 N.W. 25th Pl., PO Box 147010, 
Gainesville, FL 32614-7010, phone: 352-338-3440, fax: 352-338-3452

Georgia

Donnie Thomas, Rural Development, 355 E. Hancock Ave., Stephens 
Federal Building, Athens, GA 30601-2768, phone: 706-546-2162, fax: 
706-546-2152

Hawaii

Ted Matsuo, Rural Development, Federal Building, Room 311, 154 
Waianuenue Ave., Hilo, HI 96720, phone: 808-933-3009, fax: 808-933-
6901

Idaho

Dale Lish, Rural Development, 745 W. Bridge/Suite H, Blackfoot, ID 
83221, phone: 208-785-5840, fax: 208-785-6561

Illinois

Charles Specht, Rural Development, 1817 S. Neil Street, Suite 103, 
Champaign, IL 61820, phone: 217-398-5412, fax: 217-398-5337

Indiana

Joseph Steele, Rural Development, 5975 Lakeside Blvd., Indianapolis, 
IN 46278, phone: 317-290-3109, fax: 317-290-3127

Iowa

Dorman Otte, Rural Development, 210 Walnut Street, Federal Bldg./
Room 873, Des Moines, IA 50309, phone: 515-284-4152, fax: 515-284-
4859

Kansas

Larry Carnahan, P. O. Box 386, Altamont, KS 67330, phone: 316-784-
5319, fax: 316-784-5900

Kentucky

James Letcher, Rural Development, 771 Corporate Dr., Suite 200, 
Lexington, KY 40503, phone: 606-224-7326, fax: 606-224-7347

Louisiana

Mike Taylor, Rural Development, 3727 Government Street, Alexandria, 
LA 71302, phone: 318-473-7811, fax: 318-473-7829

Maine

Alan C. Daigle, Rural Development, 444 Stillwater Ave., Suite 2, P. 
O. Box 405, Bangor, ME 04402-0405, phone: 207-990-9168, fax: 207-
990-9165

Massachusetts

Richard J. Burke, Rural Development, 451 West St., Amherst, MA 
01002, phone: 413-253-4300, fax: 413-253-4347

Michigan

Reginald Magee, Rural Development, 1101 E. Washington, P. O. Box 
220, Baldwin, MI 49304, phone: 616-745-8364, fax: 616-745-8493

Minnesota

Deborah Slipek, Rural Development, 410 Farm Credit Services Bldg, 
375 Jackson Street, St. Paul, MN 55101-1853, phone: 612-602-7799, 
fax: 612-602-7824

Mississippi

Jane Jones, Rural Development, 100 W Capital St., Suite 831, 
Jackson, MS 39269, phone: 601-965-5457, fax: 601-965-4257

Missouri

D. Clark Thomas, Rural Development, 70 W. Parkade Center, Suite 235, 
Columbia, MO 65203, phone: 573-876-9319, fax: 573-876-0984

Montana

Anthony Preite, Rural Development, 900 Technology Blvd. Suite B, P. 
O. Box 850, Bozeman, MT 59771, phone: 406-585-2580, fax: 406-585-
2565

Nebraska

Dale T. Wemhoff, Rural Development, Norfolk Area Office, 1909 Vicki 
Lane/Suite 103, Norfolk, NE 68701, phone: 402-371-6193, fax: 402-
371-8930

Nevada

Mike Holm, Rural Development, 1390 South Curry St., Carson City, NV 
89703-5405, phone: 702-887-1222, fax: 702-885-0841

New Hampshire/Vermont

William W. Konrad, Rural Development, 501 South Street, Bow, NH 
03304, phone: 603-226-9331, fax: 603-226-9338

New Jersey

Michael P. Kelsey, Rural Development, Tarnsfield Plaza, Suite 22, 
790 Woodland Rd., Mt. Holly, NJ 08060, phone: 609-265-3640, fax: 
609-265-3651

New Mexico

Bill Culbertson, Rural Development, 6200 Jefferson NE, Albuquerque, 
NM 87109, phone: 505-761-4973, fax: 505-761-4976

New York

Marge Evanek, Rural Development, Center Ithaca, Box 142, 171 East 
State Street, Ithaca, NY 14850, phone: 607-272-3023, fax: 607-275-
9624

North Carolina

Debra Nesbitt, Rural Development, 4405 Bland Rd, Suite 260, Raleigh 
NC 27609, phone: 919-873-2042, fax: 919-873-2075

North Dakota

William Davis, Rural Development, P. O. Box 1737, Bismarck, ND 
58502, phone: 701-250-4781, fax: 701-250-4670

Ohio

Allen L. Turnbull, Rural Development, Federal Building, Room 640, 
200 North High Street, Columbus OH 43215, phone: 614-469-5400, fax: 
614-469-5758

Oklahoma

Sally Vielma, Rural Development, 100 USDA, Suite 108, Stillwater, OK 
74074-2654, phone: 405-742-1039, fax: 405-742-1101

Oregon

Jack Ware, Rural Development, 1101 Ellen Ave., Medford, OR 97501, 
phone: 541-776-4293, fax: 541-776-4295

Pennsylvania

Nancy Brewer, 36 Spring Run Road, Rm. 103, Mill Hall, PA 17751, 
phone: 717-726-3196, ext. 203, fax: 717-726-0064

Puerto Rico

Julio Chevres, Rural Development, P. O. Box 366106, San Juan, PR 
00936-6106, fax: 787-281-4993

South Carolina

William Molnar, Rural Development, 1835 Assembly Street, Room 1007, 
Columbia, SC 29201, phone: 803-253-3249, fax: 803-765-5633

South Dakota

Robert Bothwell, Rural Development, Federal Building, Room 210, 200 
Fourth Street SW, Huron, SD 57350-2477, phone: 605-352-1142, fax: 
605-352-1146

Tennessee

Tom Mayberry, Jr., Rural Development, 3322 West End Ave., Suite 300, 
Nashville, TN 37203-1071, phone: 615-783-1308/783-1409, fax: 615-
783-1301/1394

Texas

David Gonzalez, Rural Development, 4400 E. Hwy 83, Rio Grande City, 
TX 78582, phone: 956-487-5576, ext. 202, fax: 956-487-7882

Utah

A. Richard Osmond, Rural Development, Federal Bldg Room 5438, 125 
South State St., Salt Lake City, UT 84138, phone: 801-524-3248, fax: 
801-524-4406

Vermont/New Hampshire

William W. Konrad, Rural Development, 501 South Street, Bow, NH 
03304, phone: 603-226-9331, fax: 603-226-9338

Virginia

Reginald Rountree, Rural Development, 1606 Santa Rosa Road, 
Richmond, VA 23229, phone: 804-287-1557, fax: 804-287-1786

Washington

Karen Bailor, Rural Development, 1835 Blacklake Blvd. SW, Suite B, 
Olympia, WA 98512, phone: 360-704-7750, fax: 360-704-7742

Wisconsin

David Gibson, Rural Development, 4949 Kirschling Court, Stevens 
Point, WI 54481, phone: 715-345-7676, fax: 715-345-7669

[[Page 19147]]

West Virginia

James Anderson, Rural Development, 4510 Pennsylvania Ave., Big 
Chimney, WV 25302, phone: 304-965-2712, fax: 304-965-2715

Wyoming

John Cochran, Rural Development, 100 East B, Federal Bldg. Room 
1005, Casper, WY 82602, phone: 307-261-6319, fax: 307-261-6327

Appendix B--Notice of Intent To Participate

U.S. Department of Agriculture, Rural Development, Office of 
Community Development Room 701, 300 Seventh Street, NW, Washington, 
D.C. 20024

    Note: Rural entities may:
    (1) Fax this notice to (202) 690-1395;
    (2) Submit this notice via e-mail to 
www.ezec.gov">``round2.rural@www.ezec.gov''; or
    (3) Submit it electronically via the following website: ``http://
www.ezec.gov/round2''
    This Notice of Intent to Participate in the Rural Empowerment 
Zone application process is submitted by the following participating 
entity:
    Location of Nominated Area (list state and counties proposed to 
be included):

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

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

    Name & Address of Participating Entity:

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

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

    Contact & Phone Number, Fax Number and E-mail address:

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

__ Nominating Entity (check here if applicable)

    __ Nominating Entity (if other than named above) (City, State):

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

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

Appendix C

    The text of this Appendix which follows was provided by the U.S. 
Department of Health and Human Services:

(1) Background

    This appendix includes general guidance about allowed uses of 
any Round II EZ/EC SSBG funds that may be made available for Round 
II Empowerment Zones (EZs). It is based on the assumption that any 
Round II EZ/EC SSBG funding will be subject to the same statutory 
restrictions as the Round I EZ/EC SSBG grants. The U.S. Department 
of Health and Human Services (HHS) will issue further guidance 
regarding any Round II EZ/EC SSBG funds soon after it is authorized 
to award the funds.

(2) Awards to States

    (a) HHS will award Round II EZ/EC SSBG grants to each State that 
nominated a designated Round II EZ. HHS will award the funds for 
each Round II EZ to the State agency that typically receives Social 
Services Block Grants, unless the EZ Lead Entity and its State 
request HHS to award them to a different agency.
    (b) The HHS Terms and Conditions of the Round II EZ/EC SSBG 
grants will direct the recipient State agency to provide the funds 
to the appropriate Round II EZ Lead Entity(ies) for activities 
specified in the EZ's strategic plan and benchmarks. It is expected 
that the EZs will revise their plans and benchmarks from time to 
time.

(3) Allowed Uses of Round II EZ/EC SSBG Funds

    (a) The Round II EZs may use Round II EZ/EC SSBG funds for a 
wide variety of programs, services and activities directed at 
revitalizing distressed communities and promoting economic 
independence for residents. Allowed programs, services and 
activities include, but are not limited to:
     Community and economic development programs and efforts 
to create employment opportunities;
     Job training and job readiness projects;
     Health programs such as public health education, 
primary health care, emergency medical services, alcohol and 
substance abuse prevention and treatment programs, and mental health 
services;
     Human development services such as child, youth and 
family development programs, services for the elderly, and child 
care services;
     Education projects such as after-school activities, 
adult learning classes, and school-to-work projects;
     Transportation services;
     Environmental clean up programs;
     Policing and criminal justice projects such as 
community policing efforts and youth gang prevention programs;
     Housing programs;
     Projects providing training and technical assistance to 
the EZ Lead Entity, its board and committee members, and other 
organizations; and
     Projects to finance community-focused financial 
institutions for enhancing the availability of credit such as loan 
funds, revolving loan funds, and micro-enterprise loan funds as well 
as other activities for easing financial barriers faced by social 
services entities, housing organizations and other organizations 
serving EZ residents.
    (b) Round II EZs may use the Round II EZ/EC SSBG funds for 
projects supported in part with other federal, state, local or 
private funds, and they may allocate a portion of the funds to the 
State grantee agency for its administrative and grant oversight 
costs. Round II EZs may not use the funds as the source of local 
matching funds required for other federal grants.
    (c) Round II EZs must ensure that each proposed use of Round II 
EZ/EC SSBG funds is: directed at one or more of the EZ/EC SSBG 
statutory goals; included in the strategic plan; structured to 
benefit EZ residents; and in compliance with all applicable federal, 
state and local laws and regulations.
    (d) EZ/EC SSBG Statutory Goals: The statutory goals for uses of 
EZ/EC SSBG funds are as follows:
    (1) Achieving and maintaining economic self-support for 
residents, to help them develop and retain the ability to support 
themselves and their families economically;
    (2) Achieving and maintaining self-sufficiency for residents, to 
enable them to become and remain able to care for themselves in 
daily activities and in the long-term; and
    (3) Preventing Neglect and Abuse and Preserving Families, to 
protect children and adults, who are unable to protect themselves 
from neglect, abuse or exploitation, and to preserve, rehabilitate 
or reunite families living in the designated neighborhoods.
    (e) Strategic Plan: All programs, services and activities 
financed in whole or in part with Round II EZ/EC SSBG funds must be 
included in the strategic plan and benchmarks. Each project 
description must indicate the EZ/EC SSBG statutory goal it is 
attempting to achieve and how it will benefit EZ residents.
    (f) Resident Benefit: All programs, services and activities 
financed in whole or in part with Round II EZ/EC SSBG funds must be 
structured to benefit EZ residents; the programs, services and 
activities may also benefit nonresidents.
    (g) EZ/EC SSBG Statutory Program Options: To the extent 
consistent with the local strategic vision, localities may use Round 
II EZ/EC SSBG funds to finance programs, services and activities for 
addressing any of the following broad statute-based ``program 
options.'' EZs that use the funds for any of the program options 
will have more flexibility in uses of funds. (See section (h) 
below). The EZs are not required to use the funds for the program 
options, and may use Round II EZ/EC SSBG funds to finance programs, 
services and activities addressing other issues. The program options 
are as follows:
    (1) To provide residential or nonresidential drug and alcohol 
prevention and treatment programs that offer comprehensive services 
for residents, particularly for pregnant women and mothers and their 
children;
    (2) To support:
    (A) Training and employment opportunities for disadvantaged 
adults and youths in construction, rehabilitation, or improvement of 
affordable housing, public infrastructure, and community facilities; 
and
    (B) Nonprofit organizations such as community and junior 
colleges providing short-term training courses for disadvantaged 
adults and youths about entrepreneurism and self-employment, and 
other types of training that will promote individual self-
sufficiency and the interests of the community.
    (3) To support projects designed to promote and protect the 
interests of children and families outside of school hours, 
including keeping schools open during evenings and weekends for 
mentoring and study.
    (4) To support:
    (A) Services designed to promote community and economic 
development and job support services such as skills training, job 
counseling, transportation services, housing counseling, financial 
management, and business counseling;
    (B) Emergency and transitional housing and shelters for families 
and individuals; or
    (C) Programs that promote home ownership, education, and other 
routes to economic independence for families and individuals.
    (h) To the extent a program, service or activity in the 
strategic plan and benchmark

[[Page 19148]]

document is a statutory program option listed in section (g) above, 
the EZ may use the Round II EZ/EC SSBG funds to implement that 
activity including to:
    (1) purchase or improve land or facilities;
    (2) make cash payments to individuals for subsistence or room 
and board;
    (3) make wage payments to individuals as a social service;
    (4) make cash payments for medical care; and
    (5) provide social services to institutionalized persons.
    (i) To the extent a program, service or activity in the 
strategic plan and benchmark document is not a statutory program 
option listed in section (g) above, the EZ may use Round II EZ/EC 
SSBG funds for the following purposes as a component of that 
activity only after receiving approval from the U.S. Department of 
Health and Human Services:
    (1) purchase or improve land or facilities;
    (2) make cash payments to individuals for subsistence or room 
and board;
    (3) make wage payments to individuals as a social service;
    (4) make cash payments for medical care; or
    (5) provide social services to institutionalized persons.
    (j) To the extent a program, service or activity in the 
strategic plan and benchmark document is not one of the program 
options listed in section (g) above, the plan must include a 
statement explaining why the locality chose that project.

Appendix D

    Counties (including other geographic areas, as applicable) which 
have demonstrated outmigration of not less than 15 percent over the 
period 1980-1994 as reported by the U.S. Bureau of the Census.

Alabama

Conecuh County
Dallas County
Greene County
Lowndes County
Macon County
Perry County
Wilcox County

Alaska

Aleutians West Census Area
Bristol Bay Borough
Southeast Fairbanks Census Area
Wade Hampton Census Area
Yukon-Koyukuk Census Area

Arizona

Greenlee County

Arkansas

Arkansas County
Chicot County
Desha County
Lee County
Mississippi County
Monroe County
Phillips County
St. Francis County
Woodruff County

Colorado

Baca County
Conejos County
Jackson County
Kiowa County
Lake County
Logan County
Mineral County
Moffat County
Otero County
San Juan County
Sedgwick County
Washington County

Florida

Hardee County

Georgia

Calhoun County
Early County
Miller County
Randolph County
Terrell County
Turner County

Idaho

Bear Lake County
Butte County
Caribou County
Clark County
Clearwater County
Elmore County
Shoshone County

Illinois

Alexander County
Mason County
Pulaski County
Stark County
Warren County

Indiana

Miami County

Iowa

Adams County
Audubon County
Buchanan County
Cherokee County
Chickasaw County
Clay County
Clinton County
Crawford County
Emmet County
Fayette County
Floyd County
Franklin County
Greene County
Grundy County
Hancock County
Humboldt County
Jackson County
Kossuth County
Lyon County
Osceola County
Palo Alto County
Pocahontas County
Shelby County
Webster County

Kansas

Barber County
Barton County
Decatur County
Doniphan County
Geary County
Gove County
Graham County
Haskell County
Jewell County
Morton County
Ness County
Osborne County
Rawlins County
Rice County
Rooks County
Rush County
Scott County
Sheridan County
Sherman County
Stanton County
Trego County
Wallace County
Wichita County

Kentucky

Bell County
Breathitt County
Floyd County
Fulton County
Hardin County
Harlan County
Leslie County
Letcher County
Martin County
Perry County
Pike County

Louisiana

Cameron Parish
Catahoula Parish
Concordia Parish
East Carroll Parish
Iberville Parish
Madison Parish
Morehouse Parish
Red River Parish
Richland Parish
St. Mary Parish
Tensas Parish
Vernon Parish

Maine

Aroostook County

Michigan

Iosco County
Luce County
Marquette County

Minnesota

Big Stone County
Cottonwood County
Faribault County
Freeborn County
Jackson County
Kittson County
Lac qui Parle County
Lake County
Lincoln County
Pennington County
Red Lake County
Redwood County
Renville County
Swift County
Traverse County
Wilkin County
Yellow Medicine County

Mississippi

Adams County
Bolivar County
Claiborne County
Coahoma County
Holmes County
Humphreys County
Issaquena County
Jefferson County
Leflore County
Noxubee County
Quitman County

[[Page 19149]]

Sharkey County
Sunflower County
Tallahatchie County
Tunica County
Warren County
Washington County
Yazoo County

Missouri

Knox County
Mississippi County
Pemiscot County
Pulaski County

Montana

Big Horn County
Carter County
Daniels County
Dawson County
Deer Lodge County
Fallon County
Garfield County
Hill County
Judith Basin County
Liberty County
McCone County
Meagher County
Petroleum County
Pondera County
Powder River County
Prairie County
Richland County
Roosevelt County
Rosebud County
Sheridan County
Toole County
Treasure County
Valley County
Wibaux County

Nebraska

Antelope County
Arthur County
Banner County
Blaine County
Boone County
Box Butte County
Boyd County
Brown County
Cedar County
Cuming County
Frontier County
Garden County
Grant County
Hayes County
Hitchcock County
Holt County
Hooker County
Keya Paha County
Kimball County
Knox County
Lincoln County
Logan County
Loup County
Morrill County
Nuckolls County
Red Willow County
Rock County
Sioux County
Stanton County
Thomas County
Thurston County
Wheeler County

New Mexico

Cibola County
Guadalupe County
Harding County
Lea County
McKinley County
Union County

North Dakota

Adams County
Benson County
Billings County
Bottineau County
Bowman County
Burke County
Cavalier County
Dickey County
Divide County
Dunn County
Eddy County
Emmons County
Foster County
Golden Valley County
Grant County
Griggs County
Hettinger County
Kidder County
LaMoure County
Logan County
McHenry County
McIntosh County
McKenzie County
McLean County
Mercer County
Mountrail County
Oliver County
Pembina County
Pierce County
Renville County
Sargent County
Sheridan County
Sioux County
Slope County
Stark County
Steele County
Stutsman County
Towner County
Walsh County
Ward County
Wells County
Williams County

Oklahoma

Beaver County
Blaine County
Cimarron County
Ellis County
Harmon County
Harper County
Jackson County
Kingfisher County
Major County
Roger Mills County
Texas County
Tillman County
Washita County
Woods County
Woodward County

Oregon

Harney County
Sherman County

Pennsylvania

Cameron County

South Carolina

Bamberg County
Dillon County
Marlboro County

South Dakota

Buffalo County
Campbell County
Corson County
Day County
Deuel County
Dewey County
Douglas County
Edmunds County
Faulk County
Gregory County
Haakon County
Hand County
Hanson County
Harding County
Hyde County
Jackson County
Jerauld County
Jones County
Lyman County
McPherson County
Mellette County
Perkins County
Potter County
Roberts County
Sanborn County
Shannon County
Spink County
Sully County
Walworth County
Ziebach County

Texas

Andrews County
Bailey County
Briscoe County
Brooks County
Castro County
Cochran County
Collingsworth County
Cottle County
Crane County
Crockett County
Crosby County
Culberson County
Dawson County
Deaf Smith County
Dickens County
Dimmit County
Fisher County
Floyd County
Foard County
Garza County
Glasscock County
Gray County
Hale County
Hall County
Hansford County
Hardeman County
Hemphill County
Hutchinson County
Jim Hogg County
Karnes County
Kenedy County
Kent County
King County
Kleberg County
Lamb County
Lipscomb County
Lynn County
Matagorda County
Motley County
Ochiltree County
Parmer County
Pecos County
Reagan County
Reeves County
Refugio County
Roberts County

[[Page 19150]]

Shackelford County
Sherman County
Stonewall County
Sutton County
Swisher County
Terrell County
Terry County
Upton County
Ward County
Wheeler County
Winkler County
Yoakum County
Zavala County

Utah

Carbon County
Daggett County
Duchesne County
Emery County
Grand County
Rich County
San Juan County

Virginia

Alleghany County
Bath County
Buchanan County
Wise County
Covington City
Norton City

West Virginia

Boone County
Clay County
Fayette County
Logan County
McDowell County
Mingo County
Webster County
Wetzel County
Wyoming County

Wyoming

Big Horn County
Carbon County
Converse County
Fremont County
Hot Springs County
Platte County
Sweetwater County
Washakie County
Weston County

Appendix E--Form of Memorandum of Agreement; Rural Empowerment Zones 
and Enterprise Communities

    This Agreement among the United States Department of Agriculture 
(USDA), the State of __________ and the Empowerment Zone Lead Entity 
relating to the Rural Empowerment Zone known as ____________, is 
made pursuant to the Internal Revenue Code (title 26 of the United 
States Code) as amended by title IX of the Taxpayer Relief Act of 
1997 and title XIII, subchapter C, part I of the Omnibus Budget 
Reconciliation Act of 1993.
    In reliance upon and in consideration of the mutual 
representations and obligations herein contained herein, the 
applicable statute and part 25 to 7 CFR, USDA, the State and the 
Empowerment Zone agree as follows:
    The Rural Empowerment Zone boundaries are as follows: Census 
Tracts ________, ________, ________ [as such boundaries may be 
modified] in accordance with maps provided in the application for 
designation. The term of the designation as a rural Empowerment Zone 
is effective from [designation date] to December 31, ________, 
unless sooner revoked.
    The State and the Empowerment Zone agree to abide by the 
following:
    1. The State and the Empowerment Zone will comply with the 
requirements title XIII, subchapter C, part I of the Omnibus Budget 
Reconciliation Act of 1993 as modified by the Taxpayer Relief Act of 
1997, and the regulations appearing at 7 C.F.R. part 25 and any 
future regulations.
    2. [if applicable] The State and the Empowerment Zone will 
comply with such further statutory, regulatory and contractual 
requirements as may be applicable to the receipt and expenditure of 
Social Services Block Grant funds, pursuant to title XX of the 
Social Security Act, currently administered by the Department of 
Health and Human Services.
    3. The State and the Empowerment Zone will comply with all 
elements of the USDA approved application for designation, including 
the strategic plan, submitted to USDA pursuant to 7 C.F.R. part 25 
(``strategic plan'') and all assurances, certifications, schedules 
or other submissions made in support of the strategic plan or of 
this Agreement.
    4. The State and the Empowerment Zone will submit with each 2-
year workplan required under 7 C.F.R. Sec. 25.403 documentation, in 
form and substance satisfactory to the Secretary, sufficient to 
identify baselines, benchmark goals, benchmark activities and 
timetables for the implementation of the strategic plan during the 
applicable 2 years of the workplan.
    5. Pursuant to the strategic plan, the lead entity for the 
Empowerment Zone known as __________ [name of lead entity] 
__________, located at __________ [address] __________, is 
responsible for the implementation of the strategic plan. The 
current director of the lead entity, who is duly authorized to 
execute this agreement, is ____________ [name] ____________.
    6. [if applicable] The use of EZ/EC title XX funds will be 
directed by the lead entity, in accordance with the strategic plan. 
The State will distribute the funds according to the directives of 
the lead entity, provided that such actions are consistent with the 
USDA approved strategic plan.
    7. The lead entity agrees to timely comply with the reporting 
requirements contained in 7 C.F.R. part 25, including reporting on 
progress made in carrying out actions necessary to implement the 
requirements of the strategic plan and any assurances, 
certifications, schedules or other submissions made in connection 
with the designation.
    8. The lead entity agrees to submit to periodic performance 
reviews by USDA in accordance with the provisions of 7 C.F.R. 
Secs. 25.402 and 25.404. Upon request by USDA, the lead entity will 
permit representatives of USDA to inspect and make copies of any 
records pertaining to matters covered by this Agreement.
    9. Each year after the execution of this Agreement, the lead 
entity will submit updated documentation sufficient to identify 
baselines, benchmark goals and activities and timetables for the 
implementation of the strategic plan during the following 2 years. 
Upon written acceptance from USDA, such documentation shall become 
part of this Agreement and shall replace the documentation submitted 
previously, for purposes of operations during the following 2 years.
    10. All benchmark goals, benchmark activities, baselines, and 
schedules approved by the Empowerment Zone after a full community 
participation process (which must be documented and which may be 
further amended or supplemented from time to time), will be 
incorporated as part of this Agreement. All references to the 
strategic plan in this memorandum of agreement shall be deemed to 
refer to the strategic plan as modified in accordance with this 
paragraph.
    11. This Agreement shall be a part of the strategic plan.
    12. Amendments to the strategic plan may be made only with the 
approval of the Empowerment Zone and USDA. The lead entity must 
demonstrate to USDA that the local governments within the 
Empowerment Zone were involved in the amendment process.
    13. All attachments and submissions in accordance herewith are 
incorporated as part of this agreement.
    This Agreement is dated ____________.
    State Government: State of ____________
By: ____________ [official authorized to commit the state] 
____________

Title:

Address:

Empowerment Zone [Name of Empowerment Zone]

By:--------------------------------------------------------------------

Title:

Address:

Lead entity: [Name of Lead entity]

By:--------------------------------------------------------------------

Title:

Address:

Federal Government: United States Department of Agriculture

By:--------------------------------------------------------------------

Title:

Address:


[FR Doc. 98-10157 Filed 4-14-98; 11:38 am]
BILLING CODE 3410-07-P