[Federal Register Volume 63, Number 93 (Thursday, May 14, 1998)]
[Rules and Regulations]
[Pages 26716-26717]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12880]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

15 CFR Part 921

[Docket #980427108-8108-01]
RIN 0694-AL16


National Estuarine Research Reserve System Regulations

AGENCY: Office of Ocean and Coastal Resource Management, National Ocean 
Service, National Oceanic and Atmospheric Administration, Commerce.

ACTION: Final rule.

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SUMMARY: The National Oceanic and Atmospheric Administration (NOAA) is 
making a correction to its regulations concerning the National 
Estuarine Research Reserve System (NERRS) to clarify that certain types 
of financial assistance awards are not subject to specified limits on 
amounts. The Coastal Zone Protection Act of 1996 amended the Coastal 
Zone Management Act (CZMA) by, among other things, eliminating the 
state match requirement in cases where financial assistance was coming 
from proceeds of a natural resource damage action. In 1997, NOAA issued 
a rule to amend the NERRS regulations to conform to the statutory 
amendments. That rule specified that the state match requirement was 
eliminated in cases where natural resource damage proceeds were being 
used to fund NERRS activities. However, the rule did not address what 
the effects of other limits on financial assistance (caps on funding, 
rather than state match) would be in these cases. This final rule 
clarifies that, in cases where financial assistance is coming from 
natural resource damage funds, the caps on financial assistance to not 
apply.

EFFECTIVE DATE: May 14, 1998.

FOR FURTHER INFORMATION CONTACT:
Mary O'Brien, Attorney-Adviser, Office of General Counsel, 1305 East-
West Highway, Silver Spring, Maryland 20910. Telephone: 301-713-2967.

SUPPLEMENTARY INFORMATION:

I. Authority

    This final rule is issued under the authority of the Coastal Zone 
Management Act, CZMA, 16 U.S.C. 1451 et seq., as amended.

II. Background

    Section 315 of the CZMA authorizes grants to states for the 
selection, designation, management, and use of National Estuarine 
Research Reserves. However, section 315 of the CZMA limits, in most 
cases, the proportion of federal financial assistance that may be 
provided to states for program activities. The 1996 amendments to the 
CZMA provided that notwithstanding these statutory limits, financial 
assistance provided from amounts recovered as a result of damage to 
natural resources located in the coastal zone may be used to pay 100 
percent of the costs of activities carried out with the assistance. In 
1997, NOAA issued a rule, the intent of which was to bring the program 
regulations into conformity with the statutory change.
    Following NOAA's 1997 rule, questions arose as to the effects of 
the amendment on certain statutory and regulatory limits on amounts. 
While it was clear the amendments eliminated the match requirement in 
cases where financial assistance is coming from natural resource damage 
funds, questions remained as to the appropriate interpretation, in 
these cases, of provisions limiting the amount of financial assistance 
that may be granted to any one reserve for certain activities. 
Specifically, the statute provides a $5,000,000 cap on federal 
financial assistance for acquisition activities at any one reserve. The 
regulations contain not only that cap, but also a $100,000 cap on 
federal financial assistance for certain pre-designation activities 
(site selection, draft management plan and environmental impact 
statement preparation, and basic characterization studies).
    The NERRS was established by Congress to provide for a system of 
representative estuarine ecosystems, with each site contributing to the 
biogeographical and typological balance of the system. It was 
envisioned that the completed system would ultimately contain 25-35 
sites. Throughout the course of the program, there has been a need to 
ensure that limited appropriations are distributed equitably among 
reserve sites. Hence, the statute and the regulations provided caps to 
restrict the amount of funds that could be granted to any one site.
    In the case of reserve activities being funded with amounts 
recovered as a result of natural resource damages, the concern that 
gave rise to the establishment of the caps does not exist. Natural 
resource damage funds do not come out of the NERRS appropriation. When 
such funds are used to establish a reserve or pay for reserve 
activities, there is no reduction in the appropriation and thus no 
effect, financial speaking, on other reserves in the system or on 
states wishing to advance reserve proposals. For this reason, it is not 
appropriate to apply the NERRS limits on federal financial assistance 
when activities are being funded from natural resource damage proceeds.
    Congress recognized as much in the 1996 amendments to the CZMA. New 
section 315(e)(3)(C) explicitly stated that notwithstanding the 50 
percent/$5,000,000 cap, financial assistance provided from natural 
resource damage funds could be used to pay 100 percent of the costs of 
such activities. Congress did not address the $100,000 pre-designation 
cap, because that cap was established by regulation rather than by 
statute.

III. Discussion of Change

    The purpose of this rule is to amend the regulations to clarify 
that, consistent with the changes made to the CZMA in 1996, the 
$5,000,000 and $100,000 limits on federal financial assistance for 
certain activities are not applicable with the funding for these 
activities is being provided from amounts recovered as a result of 
damage to natural resources.

IV. Rulemaking Requirements

    A. This rule was determined to be ``not significant'' for purposes 
of Executive Order 12866.
    B. This rule relates to public property, loans, grants, benefits, 
and contracts, and therefore, it is exempt from every requirement of 
section 553 of the Administrative Procedure Act, 5 U.S.C. 553, 
including notice and comment and delayed effective date.
    C. Because a notice of proposed rulemaking is not required by 5 
U.S.C.

[[Page 26717]]

553, or by any other law, a Regulatory Flexibility Analysis under the 
Regulatory Flexibility Act is not required and was not prepared.
    D. This rule involves collections of information subject to the 
Paperwork Reduction Act and cleared by the Office of Management and 
Budget under control number 0648-0119. The estimated response times for 
these requirements are 480 hours for management program approval and 8 
hours for program amendment and routine program changes. The response 
estimates shown include the time for reviewing instructions, searching 
existing data sources, gathering and maintaining needed data, and 
completing and reviewing the collection of information. Notwithstanding 
any other provision of the law, no person is required to respond to, 
nor shall any person be subject to penalty for failure to comply with, 
a collection of information, subject to the requirements of the PRA, 
unless that collection of information displays a currently valid OMB 
control number.
    E. NOAA has concluded that this regulatory action does not 
constitute a major federal action significantly affecting the quality 
of the environment. Therefore, an environmental impact statement under 
the National Environmental Policy Act, 43 U.S.C. 4321 et seq. is not 
required.
    F. This rule contains no mandates, under the provisions of Title II 
of the Unfunded Mandates Reform Act of 1995 (UMRA), Public Law 104-4, 
for state, local, or tribal governments or the private sector. Thus, 
this rule is not subject to the requirements of sections 202 and 205 of 
the UMRA.
    G. NOAA has concluded that this regulatory action does not have 
sufficient federalism implications to warrant the preparation of a 
Federalism Assessment under Executive Order 12612.

List of Subjects in 15 CFR Part 921

    Administrative practice and procedure, Coastal zone, Grant 
programs--Natural resources, Reporting and recordkeeping requirements.

    Dated: May 11, 1998.
Nancy Foster,
Assistant Administrator for Ocean Services and Coastal Zone Management.
    For the reasons set forth in the Preamble, 15 CFR part 921 is 
amended as follows:

PART 921--NATIONAL ESTUARINE RESEARCH RESERVE SYSTEM REGULATIONS

    1. The authority citation for part 921 continues to read as 
follows:

    Authority: Section 315 of the Coastal Zone Management Act, as 
amended (16 U.S.C. 1461).

    2. Paragraph (f) of Sec. 921.1 is amended by revising the fourth 
sentence to read as follows:


Sec. 921.1  Mission, goals and general provisions.

* * * * *
    (f) * * * Notwithstanding any financial assistance limits 
established by this Part, when financial assistance is provided from 
amounts recovered as a result of damage to natural resources located in 
the coastal zone, such assistance may be used to pay 100 percent of all 
actual costs of activities carrier out with this assistance, as long as 
such funds are available. * * *
* * * * *
    3. Paragraph (a) of Sec. 921.10 is amended by adding a new 
sentence, after the third sentence, to read as follows:


Sec. 921.10  General.

    (a) * * * Notwithstanding the above, when financial assistance is 
provided from amounts recovered as a result of damage to natural 
resources located in the coastal zone, such assistance may be used to 
pay 100 percent of all actual costs of activities carried out with this 
assistance, as long as such funds are available. * * *
    4. Paragraph (b) of Sec. 921.10 is amended by adding a new 
sentence, after the last sentence, to read as follows:


Sec. 921.10  General.

    (b) * * * Notwithstanding the above, when financial assistance is 
provided from amounts recovered as a result of damage to natural 
resources located in the coastal zone, such assistance may be used to 
pay 100 percent of all actual costs of activities carrier out with this 
assistance, as long as such funds are available.
    5. Section 921.20 is amended by revising the last sentence to read 
as follows:


Sec. 921.20  General

    * * * In any case, the amount of Federal financial assistance 
provided to a coastal state with respect to the acquisition of lands 
and waters, or interests therein, for any one National Estuarine 
Research Reserve may not exceed an amount equal to 50 percent of the 
costs of the lands, waters, and interests therein or $5,000,000, 
whichever amount is less, except when the financial assistance is 
provided from amounts recovered as a result of damage to natural 
resources located in the coastal zone, in which case the assistance may 
be used to pay 100 percent of all actual costs of activities carrier 
out with this assistance, as long as such funds are available.
    6. Section 921.31 is amended by revising the fourth sentence to 
read as follows:


Sec. 921.31  Supplemental acquisition and development awards.

    * * * Acquisition awards for the acquisition of lands or waters, or 
interests therein, for any one reserve may not exceed an amount equal 
to 50 percent of the costs of the lands, waters, and interests therein 
of $5,000,000, whichever amount is less, except when the financial 
assistance is provided from amounts recovered as result of damage to 
natural resources located in the coastal zone, in which case the 
assistance may be used to pay 100 percent of all actual costs of 
activities carrier out with this assistance, as long as such funds are 
available. * * *
[FR Doc. 98-12880 Filed 5-13-98; 8:45 am]
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