[Federal Register Volume 64, Number 215 (Monday, November 8, 1999)]
[Rules and Regulations]
[Pages 60675-60678]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29083]


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DEPARTMENT OF AGRICULTURE

Forest Service

36 CFR Part 211

RIN 0596-AB63


Administration; Cooperative Funding

AGENCY: Forest Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department is amending current regulations to establish 
minimum requirements applicable to written agreements between the 
Forest Service and cooperators, such as individuals, States and local 
governments, and other non-Federal entities. This rulemaking implements 
amendments to the Act of June 30, 1914, which expand the basis for 
accepting contributions for cooperative work, allow reimbursable 
payments by cooperators, and adequately protect the Government's 
interest. The intended effect is to fully implement the new statutory 
provisions to facilitate cooperative ventures.

EFFECTIVE DATE: This rule is effective December 8, 1999.


[[Page 60676]]


FOR FURTHER INFORMATION CONTACT: Debbie Pressman, Wildlife, Fish and 
Rare Plants Staff, 202-205-1205.

SUPPLEMENTARY INFORMATION:

Background

    On May 18, 1998, the Forest Service published a proposed rule (63 
FR 27245) that would implement recent amendments to the Act of June 30, 
1914 (16 U.S.C. 498). This Act authorizes the Secretary of Agriculture 
to receive and subsequently use money as contributions toward 
cooperative work in forest investigations or for the protection and 
improvement of the national forests. The proposed rule would implement 
amendments to the Act of June 30, 1914, ( 16 U.S.C. 498) by: (1) 
Providing for the use of contributions for cooperative work on the 
entire National Forest System; (2) Adding ``management'' to the list of 
activities for which contributions for cooperative work may be 
accepted; and (3) Providing specific authority to accomplish 
cooperative work using Forest Service funds prior to reimbursement by 
the cooperator pursuant to a written agreement.

Response to Comments Received

    Public comment on the proposed rule was invited. The comment period 
closed on July, 17, 1998. Seven respondents provided comments on the 
proposed rule: 4 national conservation organizations, 1 State fish and 
wildlife agency, 1 utility company, and 1 Member of Congress. All 
respondents expressed support of the agency's effort to enhance 
cooperative partnerships on National Forest System lands by removing 
administrative barriers requiring cooperators to contribute funds in 
advance of any work to be accomplished.
    A summary of specific comments by broad subject and the 
Department's response to these comments follows.
    Comment: Interpretation of Allowable Management Activities. One 
respondent suggested adding the word ``evaluation'' to the list of 
management activities proposed at Sec. 211.6(a), Purpose and scope, 
that can be cooperatively funded.
    Response: The word ``management'' is a broad term that would 
include ``such work as planning, analysis, related studies and 
evaluations, as well as resource activities.'' The examples provided in 
the rule are added for clarity and are not intended to be inclusive of 
all potential ``management'' activities. Therefore, this suggestion has 
not been adopted in the final rule.
    Comment: Use of Cooperator Contributions for Administrative 
Support. At Sec. 211.6(a), Purpose and scope, the proposed rule 
described National Forest management activities which may be 
cooperatively funded as including such work as planning, analysis, and 
related studies, as well as resource activities. One respondent raised 
the issue of whether this language is inconsistent with the intent of 
the law. This respondent also expressed concern that cooperator funds 
could be used for administration, planning, and research, instead of 
field work and that the proposed rule lacked safeguards limiting the 
amount that the Forest Service can use from contributed funds for non-
field work.
    Response: The Department interprets the management of National 
Forest System lands to include field resource work, administrative 
studies, project planning, and all related tasks necessary to carry out 
the mission of the Forest Service. The development of cooperative 
projects and associated cooperative agreements requires the full 
disclosure of all costs associated with the project. Negotiations and 
joint discussions between the Forest Service and cooperators afford 
cooperators the opportunity to fund as much or as little of the project 
cost as they deem appropriate. Cooperators must agree on how their 
funds will be expended. Given that cooperative project costs are fully 
disclosed and mutually agreed upon, the Department is of the opinion 
that the proposed rule was consistent with the Act of June 30, 1914, as 
amended, and that additional language prohibiting non-field work is not 
necessary in the final rule.
    Comment: Reimbursements to the Forest Service. One respondent 
suggested that a cooperator be permitted to provide the required 
reimbursement payments within the first 60 days of the fiscal year 
immediately following the fiscal year in which the expenditure of 
Forest Service funds was completed, if such expenditures by the Forest 
Service occur within the last 60 days of a fiscal year.
    Response: The Department agrees with this suggestion but does not 
believe that a change in rule text is necessary. Forest Service Manual 
Sec. 6533.3 already instructs employees on how to handle such 
situations. Moreover, Forest Service bills for collection specify the 
time period in which payment is due.
    Comment: In-Kind Contributions. One respondent recommended that in-
kind contributions, such as goods and services, contributed by 
cooperators in conjunction with cooperative agreements, not be subject 
to the bonding provisions required in Sec. 211.6(b), Reimbursements and 
bonding, of the proposed rule.
    Response: In-kind contributions are not affected by this rule. The 
Act of June 30, 1914, as amended, addresses only those situations in 
which monies are received by the Forest Service as contributions toward 
cooperative work. If a cooperator is making in-kind contributions 
rather than financial contributions, the bonding provisions specified 
in Sec. 211.6(c), Bonding, of the final rule would not be applicable.
    Comment: Application of Bonding Threshold. One respondent expressed 
support for protecting the government's interest by requiring bonds for 
project costs exceeding $25,000, but expressed concern that the 
provision should apply to the cost of individual projects, rather than 
to total cooperative funds provided by partners on an annual basis.
    Response: Paragraph Sec. 211.6(b), Reimbursements and bonding, of 
the proposed rule would require a payment bond for agreements of 
$25,000 or more to guarantee the cooperator's reimbursement, thereby 
ensuring that the public interests are protected. This requirement 
applies to individual cooperative agreements, rather than to individual 
cooperative projects. The distinction is that a particular cooperative 
agreement may encompass more than one cooperative project. The text of 
Sec. 211.6(c), Bonding, of the final rule has been revised to clarify 
this distinction.
    Comment: Payment Assurances and Creditworthiness. One respondent 
suggested that, on a case-by-case basis, assurances of payment, other 
than the payment bonds required in Sec. 211.6(b), Reimbursements and 
bonding, of the proposed rule should be acceptable, and further, that 
the payment bond requirement should be waived where the cooperator has 
a significant history of successfully completing payments in accordance 
with other agreements or provides some other reliable assurance that 
payment will be provided.
    Response: The Department has carefully considered this comment but 
remains convinced that the bonding requirement (Sec. 211.6(b), 
Reimbursement and bonding, of the proposed rule) is necessary to 
protect the interests of the public and should not be waived or 
otherwise modified on a case-by-case basis. As specified in the 
proposed rule, the bonding requirement would be consistently applied 
throughout the agency whenever a non-Government cooperator agrees to 
contribute $25,000 or more to the Forest Service on a reimbursable 
basis. By providing a consistent mechanism for handling the bonding 
requirement, all cooperators are

[[Page 60677]]

assured of equitable treatment across administrative units, thus 
eliminating the potential for conflicting ``creditworthy 
determinations'' for cooperative agreements at similar funding levels. 
Accordingly, the Department has decided to retain the payment assurance 
requirements set out in Sec. 211.6(b) of the proposed rule in a 
separate paragraph Sec. 211.6(c), Bonding, of the final rule as the 
more appropriate mechanism for protecting government interests as 
required by the statute.
    Comment: Effect of Rule on Existing Memorandums of Understanding. 
One respondent asked if cooperators operating under existing 
Memorandums of Understanding (MOUs) would be required to enter into new 
MOUs to clarify the fiscal relationship between the cooperator and the 
Forest Service.
    Response: Memorandums of Understanding (MOUs) are viewed as 
agreements documenting cooperation in those circumstances where nothing 
of value transfers between parties or documenting a common 
understanding of the nature of a relationship between parties. 
Therefore, MOUs are not affected by this rule.
    However, a written cooperative agreement, completed in accordance 
with specific cooperative authority, must be executed prior to: (1) The 
agency's receipt of contributions for cooperative work; or (2) The 
expenditure of agency funds on a reimbursable basis. While the final 
rule does not require revision of existing cooperative agreements, any 
party to existing cooperative agreements may request changes in payment 
terms or any other aspect of the agreement at any time.

Additional Modification

    In the course of considering the comments on the proposed rule, the 
agency became aware of the need to clarify the meaning of ``non-
Government cooperator.'' This has been addressed by adding a new 
sentence to paragraph Sec. 211.6(c) in the final rule.

Conclusion

    Having considered the comments received, the Department is adopting 
a final rule implementing the recent statutory amendments to the Act of 
June 30, 1914, which expand the basis for accepting contributions for 
cooperative work between the Forest Service and cooperators. The final 
rule provides for the planning and completion of projects using Forest 
Service funds with reimbursement from cooperators. The Government's 
interests are protected by securing reimbursement payments from non-
Government cooperators with payment bonds when payments due under a 
cooperative agreement are $25,000 or more.

Regulatory Impact

    This final rule has been reviewed under USDA procedures and 
Executive Order 12866 on Regulatory and Review. It has been determined 
that this is not a significant rule. This rule will not have an annual 
effect of $100 million or more on the economy nor adversely affect 
productivity, competition, jobs, the environment, public health or 
safety, nor State or local governments. This rule will not interfere 
with an action taken or planned by another agency nor raise new legal 
or policy issues. Finally, this action will not alter the budgetary 
impact of entitlements, grants, user fees, or loan programs or the 
rights and obligations of recipients of such programs. Accordingly, 
this final rule is not subject to OMB review under Executive Order 
12866.
    Moreover, this final rule has been considered in light of the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.) and it has been 
determined that this action will not have a significant economic impact 
on a substantial number of small entities as defined by the Act.

Unfunded Mandates Reform

    Pursuant to Title II of the Unfunded Mandates Reform Act of 1995 (2 
U.S.C. 1531-1538), the Department has assessed the effects of this 
final rule on State, local, and tribal governments and the private 
sector. This final rule does not compel any expenditure of funds by any 
State, local, or tribal governments or anyone in the private sector. 
Therefore, a statement under section 202 of the Act is not required.

Environmental Impact

    This final rule affects the administrative requirements for 
reimbursement payments to the agency by cooperators. Section 31.1b of 
Forest Service Handbook 1909.15 (57 FR 43180; September 18, 1992) 
excludes from documentation in an environmental assessment or impact 
statement ``rules, regulations, or policies to establish Service-wide 
administrative procedures, program processes or instructions.'' Based 
on consideration of the comments received and the nature and scope of 
this rulemaking, the Department has determined that this rule falls 
within this category of actions and that no extraordinary circumstances 
exist which would require preparation of an environmental assessment or 
environmental impact statement.

No Takings Implications

    This final rule has been analyzed in accordance with the principles 
and criteria contained in Executive Order 12630, and it has been 
determined that the final rule does not pose the risk of a taking of 
constitutionally-protected private property since it sets forth 
administrative requirements regarding the deposit of cooperator funds 
for forest investigations or the protection, management, and 
improvement of the National Forest System.

Civil Justice Reform Act

    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. Upon adoption of this final rule, (1) All State 
and local laws and regulations that are in conflict with this final 
rule or which would impede its full implementation would be preempted; 
(2) No retroactive effect would be given to this final rule; and (3) It 
would not require administrative proceedings before parties may file 
suite in court challenging its provisions.

Controlling Paperwork Burdens on the Public

    This final rule does not contain any record keeping or reporting 
requirements or other information collection requirements as defined in 
5 CFR 1320 and, therefore, imposes no paperwork burden on the public. 
Accordingly, the review provisions of the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501 et seq.) and implementing regulations at 5 CFR 
1320 do not apply.

List of Subjects in 36 CFR Part 211

    Administrative practice and procedure, Intergovernmental relations 
(Federal/State cooperation), and National forests.

    Therefore, for the reasons set forth in the preamble, Part 211 of 
Title 36 of the Code of Federal Regulations is amended as follows:

PART 211--ADMINISTRATION

    1. The authority citation for part 211 is revised to read as 
follows:

    Authority: 16 U.S.C. 472, 498, 551.

Subpart A--Cooperation

    2. Revise the heading for subpart A to read as set out above.
    3. Add a new Sec. 211.6 to read as follows:

[[Page 60678]]

Sec. 211.6  Cooperation in forest investigations or the protection, 
management, and improvement of the National Forest System.

    (a) Purpose and scope. Forest Service officers, when engaged in 
cooperative activities otherwise authorized, may receive monies from 
cooperators only for cooperative work in forest investigations or for 
the protection, management, and improvement of the National Forest 
System and only in accordance with written cooperative agreements. 
Management of the National Forest System may include such work as 
planning, analysis, and related studies, as well as resource 
activities.
    (b) Reimbursements. Agency expenditures for work undertaken in 
accordance with this section may be made from Forest Service 
appropriations available for such work, with subsequent reimbursement 
from the cooperator, in accordance with established written agreements. 
Forest Service officers shall issue written bills for collection for 
cooperator reimbursement payments within the same fiscal year as Forest 
Service expenditures.
    (c) Bonding. Each written agreement involving a non-Government 
cooperator's total contribution of $25,000 or more to the Forest 
Service on a reimbursable basis, must include a provision requiring a 
payment bond to guarantee the cooperator's reimbursement payment. 
Acceptable security for a payment bond includes Department of the 
Treasury approved corporate sureties, Federal Government obligations, 
and irrevocable letters of credit. For the purposes of this section, a 
non-Government cooperator is an entity that is not a member, division, 
or affiliate of a Federal, State, or local government.
    (d) Avoiding conflict of interest. Forest Service officers shall 
avoid acceptance of contributions from cooperators when such 
contributions would reflect unfavorably upon the ability of the Forest 
Service to carry out its responsibilities and duties. Forest Service 
officers shall be guided by the provisions of 18 U.S.C. parts 201-209, 
5 CFR part 2635, and applicable Department of Agriculture regulations, 
in determining if a conflict of interest or potential conflict of 
interest exists in a proposed cooperative effort. Forest Service ethics 
officials or the designated Department of Agriculture ethics official 
should be consulted on conflict of interest issues.

    Dated: October 26, 1999.
Anne Kennedy,
Deputy Under Secretary, Natural Resources and Environment.
[FR Doc. 99-29083 Filed 11-5-99; 8:45 am]
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