[Federal Register Volume 66, Number 83 (Monday, April 30, 2001)]
[Proposed Rules]
[Pages 21608-21616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10523]



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Part VI





Department of Agriculture





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7 CFR Part 26



Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers 
Program; Proposed Rule and Notice

  Federal Register / Vol. 66 , No. 83 / Monday, April 30, 2001 
/ Proposed Rules  

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DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 26

RIN#0503-AA22


Outreach and Assistance for Socially Disadvantaged Farmers and 
Ranchers Program

AGENCY: Office of Outreach, Office of the Secretary, USDA.

ACTION: Proposed rule.

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SUMMARY: The United States Department of Agriculture (USDA or 
the Department) is proposing to add regulations at 7 CFR part 26 to 
govern the Outreach and Assistance for Socially Disadvantaged Farmers 
and Ranchers Program whereby the 1890 Land Grant Colleges, including 
Tuskegee University, Indian tribal community colleges and Alaska native 
cooperative colleges, Hispanic serving post-secondary educational 
institutions and or other qualifying educational institutions and 
community-based organizations are eligible to compete for grants and 
cooperative agreements to provide outreach and technical assistance to 
socially disadvantaged farmers and ranchers. The program's objective is 
to reverse the decline of socially disadvantaged farmers and ranchers 
across the United States. The recipients of these awards will provide 
services to encourage and assist socially disadvantaged farmers and 
ranchers to own and operate their own farms and ranches, participate in 
agricultural programs, and thus allow them to become an integral part 
of the agricultural community and strengthen the rural economy.

DATES: Comments on the proposed rule must be received on or 
before May 30, 2001.

ADDRESSES: Submit written comments, in duplicate, to Director, 
USDA Office of Outreach, Ag STOP 1710, 1400 Independence Avenue, SW., 
Washington, DC 20250-1710, fax number (202) 720-7489, or via e-mail to 
[email protected]. Comments hand-delivered or those delivered by 
overnight express mail or courier service should be brought to the 
following address: USDA Office of Outreach, 501 School Street, SW., 
First Floor, Washington, DC 20024 between the hours of 8:00 a.m. and 
5:00 p.m. Monday through Friday, excluding Federal holidays. All 
written comments made pursuant to this notice will be available for 
public inspection during regular working hours at the above address.

FOR FURTHER INFORMATION CONTACT: Geraldine Herring, Special 
Outreach Program Coordinator, USDA Office of Outreach, telephone (202) 
720-6350 or 1-800-880-4183, fax number (202) 720-7489, e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12988

    The Office of Management and Budget (OMB) has determined that the 
proposed rule is not a ``significant regulatory action'' as defined in 
Executive Order 12866 because the proposed rule will not have an annual 
effect on the economy of $100 million or more or have any other adverse 
affects on the economy or any sector thereof, will not create a serious 
inconsistency or otherwise interfere with prior or intended actions of 
another agency, will not materially alter the budgetary impact of 
grants or similar programs or the rights or recipients thereof, and 
does not raise novel legal or policy issues. Therefore, Executive Order 
12866 does not require review of the proposed rule by OMB, and such 
review has not occurred.
    USDA has reviewed this proposed rule in accordance with Executive 
Order 12998, Civil Justice Reform. The proposed rule meets the 
applicable standards in section 3 of Executive Order 12988.

Executive Order 12372

    For the same reasons contained in the Final rule related notice to 
7 CFR part 3015, subpart V (48 FR 29114, June 24, 1983), the Secretary 
has determined that this program does not directly affect State and 
local governments, and thus is not subject to the provisions of 
Executive Order 12372 which requires intergovernmental consultation 
with State and local officials.

Executive Order 13132

    Executive Order 13132, Federalism, imposes requirements on USDA in 
the development of regulatory policies that have Federalism 
implications. USDA has determined that the proposed rule will not have 
substantial direct effects on the States, on the relationship between 
the Federal Government and the States, or on the distribution of power 
and responsibilities among the various levels of government. This rule 
also will not impose substantial costs on States and localities. 
Accordingly, the proposed rule is not subject to the requirements of 
Executive Order 13132.

Executive Order 13175

    Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments, imposes requirements on USDA in the development of 
regulatory policies that have tribal implications or preempt tribal 
law. USDA has determined that the proposed regulation does not have a 
substantial direct effect on one or more Indian tribes or on either the 
relationship or the distribution of powers and responsibilities between 
the Federal Government and the Indian Tribes. Thus, the proposed rule 
is not subject to the requirements of Executive Order 13175.

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act (5 U.S.C. 601, 
et seq.), the undersigned has determined and certified by 
signature of this document that the proposed rule will not have a 
significant economic impact on a substantial number of small entities. 
Eligibility and guidelines for this program are dictated by statute. 
Educational institutions are not small entities as defined in the 
Regulatory Flexibility Act. Community-based organizations may or may 
not qualify as small entities. The amount of annual funding for this 
program thus far typically ranges from $3 million to $6 million, 
including awards to both educational institutions and community-based 
organizations, and thus does not have a large economic impact on small 
entities. This program does not impose requirements on small entities 
which are not eligible and do not affirmatively elect to apply for a 
competitive award under this program, and imposes on small entities 
receiving applying for and receiving awards only minimal requirements 
necessary for proper administration, oversight, and fiscal 
accountability of this program. Therefore, a regulatory flexibility 
analysis is not required and was not performed.

The Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 
U.S.C. 1531-1538, established requirements for Federal agencies to 
assess the effects of their regulatory actions on State, local, and 
tribal governments or the private sector. Under section 202 of the 
UMRA, 2 U.S.C. 1532, agencies must prepare a written statement, 
including a cost benefit analysis, before promulgating a notice of 
proposed rulemaking that includes any Federal mandates that may result 
in expenditures to State, local, and tribal governments, in the 
aggregate, or to the private sector, of $100 million or more in any one 
year. The proposed rule contains no Federal mandates that would result 
in such expenditures for State, local, and Tribal governments or

[[Page 21609]]

the private sector. Therefore, no written statement, including cost-
benefit analysis, is required under the UMRA for this proposed rule.

National Environmental Policy Act

    It is the determination of USDA that this action is not a major 
Federal action significantly affecting the quality of the human 
environment. Therefore, in accordance with the National Environmental 
Policy Act of 1969, Public Law 91-190, an Environmental Impact 
Statement is not required.

Paperwork Reduction Act

    This proposed rule does not impact existing approved collections. 
This rule contains no new reporting or recordkeeping burdens under OMB 
control number 0560-0163 that would require approval under the 
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

Discussion of Proposed Rule

Background

    The Department is proposing regulations in 7 CFR Part 26 to reflect 
the transfer of the Outreach and Assistance for Socially Disadvantaged 
Farmers and Ranchers Program to the USDA Departmental Administration, 
Office of Outreach. The USDA Office of Outreach administers the 
Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers 
Program pursuant to section 2501(a) of the Food, Agriculture, 
Conservation, and Trade Act of 1990, 7 U.S.C. 2279(a) (the FACT Act). 
Congress intended to make funds available to provide outreach and 
technical assistance to encourage and assist socially disadvantaged 
farmers and ranchers to own and operate farms and ranches and to 
participate in agricultural programs. This outreach and assistance 
should enable socially disadvantaged farmers and ranchers to obtain 
information on application and bidding procedures, farm management, and 
other essential information to participate in agricultural programs.
    Prior to 1997, USDA administered this program through other 
agencies. When USDA last competed awards under this program, the 
predecessor to the Farm Service Agency (FSA) administered the 
competition in conjunction with its administration of other outreach, 
training and technical assistance programs. In August 1997, the 
Secretary delegated to the USDA Office of Outreach responsibility 
solely for the section 2501 Outreach and Assistance for Socially 
Disadvantaged Farmers and Ranchers Program. Therefore, the new 
regulations proposed by the USDA Office of Outreach are limited 
exclusively to the section 2501 authority and thus narrower in scope 
than the prior combination of program authorities administered by the 
predecessor to FSA.
    The definition of ``Agricultural programs'' contained in Sec. 26.4 
of this subpart is based on the programs authorized by the statutes 
referenced in Section 2501 (e)(3) (7 U.S.C. 2279 (e)(3)). Section 2501 
(e)(3)(G) also authorizes the Secretary of Agriculture, who has 
delegated this authority to the Office of Outreach, to designate 
additional USDA programs as ``Agricultural programs'' for purposes of 
this program as appropriate. The USDA Office of Outreach bases the 
designation of additional Acts, and thereby the programs in those Acts 
on a belief that the participation of socially disadvantaged farmers 
and ranchers in such programs will serve an important public purpose. 
The definition of ``Agricultural programs'' references many USDA 
programs, however, the list is not intended to be all inclusive. 
Rather, the regulation intends to increase participation by socially 
disadvantaged farmers and ranchers in all relevant USDA agricultural 
programs. The public may request the Director, USDA Office of Outreach 
to include additional Acts and programs within this definition. 
Requests must be submitted in writing and include an explanation of the 
reasons for inclusion. The Director will make determinations on a case-
by-case basis. During the project period, the USDA Office of Outreach 
will need to work with USDA field offices to provide information to the 
recipients regarding each USDA Agency's relevant agricultural programs 
within the scope of the funded project.
    Specific Agricultural programs include but are not limited to the 
following, identified by the Catalog of Federal Domestic Assistance 
number and program title: (10.054) Emergency Conservation Program; 
(10.055) Production Flexibility Payments for Contract Commodities; 
(10.064) Forestry Incentives Program; (10.069) Conservation Reserve 
Program; (10.404) Emergency Loans; (10.406) Farm Operating Loans; 
(10.407) Farm Ownership Loans; (10.900) Great Plains Conservation; and 
(10.903) Soil Survey.

Program Description

    The program's objective is to reverse through the use of the 
outreach and assistance the decline of socially disadvantaged farmers 
and ranchers throughout the United States. This outcome will be reached 
by encouraging and assisting socially disadvantaged farmers and 
ranchers to own and operate their own farms, participate in 
agricultural programs, and thus allow them to become an integral part 
of the agricultural community.
    The recipients of the Federal assistance will provide services to 
socially disadvantaged farmers and ranchers through such means as 
outreach and technical assistance in farm and ranch management, 
recordkeeping, marketing techniques, and testing innovative solutions 
to existing or anticipated issues or problems that these farmers and 
ranchers may encounter.
    When funds are available, the USDA Office of Outreach will publish 
a request for proposals for the Outreach and Assistance for Socially 
Disadvantaged Farmers and Ranchers Program. The USDA Office of Outreach 
will make competitive awards to eligible organizations and institutions 
to implement a one-year plan for outreach and technical assistance to 
encourage and assist socially disadvantaged farmers and ranchers to own 
and operate farms and ranches and to participate in agricultural 
programs.
    The USDA Office of Outreach will select peer reviewers to evaluate 
individually the technical merit of responsive proposals. The peer 
reviewers are necessary to evaluate what is expected to be a variety of 
very technical proposals. The USDA Office of Outreach staff will use 
these evaluations to make recommendations for funding to the Director, 
USDA Office of Outreach. The Director will make final funding 
decisions. To assure consistency and fairness in the evaluation 
process, the proposed rule establishes proposal guidelines, evaluation 
criteria and the decision-making process for reviewing responsive 
proposals.
    The accounting for the funds awarded under the section 2501 program 
is subject to the applicable rules for USDA assistance awards in parts 
3015 and 3019 of this title. The proposal content and format 
regulations are intended to assure that applicants provide sufficient 
information to evaluate proposals and make awards. The application 
format and evaluation process is similar to that used by other USDA 
agencies for their competitive assistance programs.

Section by Section analysis

    Section 26.1 states the general purpose of the program pursuant to 
section 2501 (a) of the FACT Act and explains what the implementing 
regulations are intended to accomplish and why compliance is necessary. 
The USDA Office of Outreach has no

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discretion regarding the purpose of the program and is repeating the 
terms of the statute.
    Section 26.2 states the objectives of assistance awards under this 
program. These objectives come from the statute and legislative history 
for this program.
    Section 26.3 addresses the project period for awards under this 
program. Awards under this program previously were for five-year 
periods, with funding provided for the first year and annual renewal of 
each award based on the progress of the awardee and the availability of 
funds. Because of the substantial fluctuation in the amount of funding 
available for this program from year to year, the USDA Office of 
Outreach made an administrative determination that the limiting of the 
project periods for a duration of one year with full funding for each 
project at the time of award would carry out this program in the most 
effective and efficient manner. The USDA Office of Outreach considers a 
shorter period with full funding to provide more certainty to the 
awardees and to ensure that projects will be carried out in their 
entireties. Shorter project periods also allow the USDA Office of 
Outreach to fund more projects and provide greater flexibility to 
respond better to ever-changing societal needs in terms of socially 
disadvantaged groups, geographic areas, and agricultural programs.
    Section 26.4 defines relevant terms for purposes of this program. 
These definitions are limited to this program. Many terms are defined 
by statute. The USDA Office of Outreach has no discretion regarding the 
definitions of statutorily-defined terms and has merely repeated the 
statutory definitions. The statutorily-defined terms are ``socially 
disadvantaged group'' and ``socially disadvantaged farmer or rancher.'' 
The definition of ``socially disadvantaged group'' establishes the 
criteria for a group to qualify. The Secretary determines which groups 
meet the criteria. The proposed regulation allows the public to submit 
requests for the designation of additional groups for purposes of this 
program. The term ``agricultural programs'' also is defined by statute, 
but that definition too still provides limited discretion to the 
Secretary of Agriculture to expand the definition to include similar 
programs. Again, the proposed regulation provides for the public to 
submit requests for inclusion of additional Acts and programs, with 
case-by-case determinations by the USDA Office of Outreach on such 
requests.
    The USDA Office of Outreach used statutory definitions applicable 
to U.S. Department of Education programs to define the various 
educational institutions eligible to compete for awards under this 
program. Use of the same definitions as the Department of Education 
promotes uniformity and consistency among Federal programs, which is 
intended to benefit the public. Furthermore, those statutory 
definitions, while not directly applicable to this program, shed light 
on the congressional intent in using these terms. The USDA Office of 
Outreach found no indication in the section 2501 program authority or 
legislative history to suggest that the Congress intended for these 
terms to have a distinct meaning for this program. The definitions are 
1890 Land Grant Colleges, Indian tribal community college, Alaska 
Native cooperative college, Alaska Native, Hispanic serving post-
secondary educational institution, post secondary educational 
institution, full-time equivalent student, junior or community college, 
and low-income individual. Grant and cooperative agreement are defined 
by statute at 31 U.S.C. 6304 and 6305. The remaining definitions in 
section 26.4 reflect terms and definitions commonly used for USDA 
competitive assistance programs.
    Section 26.5 lists the eligible entities as set by the statute. The 
USDA Office of Outreach has no discretion regarding eligibility for 
this program. The proposed regulations describe the type of documentary 
evidence required from a community-based organization to show prior 
relevant experience.
    Section 26.6 discusses substantial involvement on cooperative 
agreements. As noted in section 26.1, USDA Office of Outreach has the 
authority to award assistance through grants or cooperative agreements 
under this program. USDA Office of Outreach may determine that the 
responsibility for the management, control, or direction of the project 
will be shared both by the USDA Office of Outreach and the awardee. If 
so, the USDA Office of Outreach will award a cooperative agreement as 
the instrument to distribute the award and will be substantially 
involved in the implementation and performance of the project. It is 
important to understand that such an agreement will be a cooperative 
venture in which each party has a substantial role to play. Being 
substantially involved can enable a better understanding and knowledge 
of how well the project is performing, whether it is meeting its goals 
and objectives, and what types of assistance the recipient needs to do 
a better job.
    Section 26.7 is reserved.
    Section 26.8 addresses solicitation of proposals through the 
program announcement. USDA Office of Outreach has decided to publish 
program announcements soliciting proposals in the Federal Register 
which is consistent with general USDA practice for competitive 
assistance programs. The USDA also reserves the right to publish the 
program announcement in other publications as appropriate which will be 
determined for each new competition.
    Section 26.9 provides guidance on how to prepare a proposal for 
this program. This section sets guidelines for the proposal format and 
content. The proposed requirements are similar to those established for 
other USDA assistance programs. Uniform proposal format and content are 
necessary for fair comparative evaluation and review of competitive 
proposals.
    Section 26.10 outlines the proposal review process, including the 
evaluation criteria. The USDA Office of Outreach will specify the 
weight of the evaluation criteria in the program announcement. Not 
indicating the weight in the regulations allows the USDA Office of 
Outreach the ability to vary the relative weights of these criteria for 
each competition as necessary to best achieve the program objectives. 
The USDA Office of Outreach decided to use peer reviewers to assess the 
merits of applications. Peer reviewers contribute expert judgment and 
objectivity to the proposal review process. Prior to any technical 
review, USDA Office of Outreach staff will review each proposal for 
responsiveness to the request for proposals. The USDA Office of 
Outreach will review for technical merit only those proposals submitted 
by eligible entities for projects within the scope of this program.
    Section 26.11 discusses the fundamental aspects of the award 
procedure. USDA Office of Outreach staff will use the evaluations by 
the individual reviewers to rank the proposals and make recommendations 
to the Director, USDA Office of Outreach for funding. The USDA Office 
of Outreach reserves the right to make awards to ensure the necessary 
variety among funded projects to best achieve the program objectives. 
Necessary variety refers to both types of entities receiving award and 
types of projects, including targeted populations and regions. Based on 
the limited resources available for this program, the USDA Office of 
Outreach also reserves the right to negotiate with applicants the scope 
of projects recommended for funding. For example, a proposal may have 
substantial merit, but at a very high cost. Funding of that one 
proposal would preclude funding of several other meritorious proposals. 
The Director,

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USDA Office of Outreach, could negotiate with that applicant in an 
effort to reduce the scope and funding requirements of that proposal, 
perhaps focusing on one or two discrete components of the project. The 
Director, USDA Office of Outreach will take great care during any such 
negotiations not to engage in any actions that would undermine the 
competitive nature of this program. All revisions must be within the 
scope of the original proposal. No revisions will be allowed to enlarge 
the project or funding originally proposed.
    Sections 26.12-26.14 are reserved.
    Section 26.15 discusses the authorized use of funds. The statute 
limits the purposes for which USDA can award funds. Once USDA awards a 
grant or cooperative agreement, the awardee can use those funds only in 
accordance with the terms of the agreement, i.e. for the identified 
project and as specified in the approved budget.
    Sections 26.16 through 26.25 are reserved.
    Section 26.26 lists some of the other applicable Federal statutes 
and regulations that govern the actions of the awardee and the Federal 
agency for assistance programs. The USDA Office of Outreach has no 
discretion regarding the mandated laws and regulations governing the 
USDA assistance programs.
    Section 26.27 discusses the payment mechanism and payment method. 
The U.S. Department of the Treasury regulations at 31 CFR part 208 
establish the payment mechanism for recipients of Federal funds. These 
regulations implement the Debt Collection Improvement Act of 1996 (P.L. 
104-134, Title III, Chapter 10) which amended 31 U.S.C. 3332 to require 
federal agencies to convert their payments (including assistance 
payments) from check to electronic funds transfer (EFT) beginning 
January 1, 1999. The USDA Office of Outreach has decided to require the 
SF-270, Request for Advance or Reimbursement, be used by the recipients 
to request payments under this program pursuant to their awards and 
reimbursement will be by EFT.
    Section 26.28 sets forth the procedures for monitoring and 
reporting on the awardee's financial management systems and program 
performance and the necessary standard reporting forms. The USDA Office 
of Outreach proposes the frequency for the financial management and 
program performance reporting to be quarterly.
    Sections 26.29 through 26.36 are reserved.
    Section 26.37 discusses the monitoring process to assure compliance 
with the terms and conditions of the award, including compliance with 
applicable Federal statutes and regulations. The USDA Office of 
Outreach has chosen to monitor performance of the recipient and assess 
compliance with laws, regulations, and policies by conducting site 
visits to monitor business management capability and performance. The 
monitoring methods will also include the reviews of audit reports, 
performance reports, financial status reports, recipient correspondence 
and information received from USDA field offices, the intended project 
beneficiaries and the public. These are standard methods used in 
administering similar USDA assistance programs to meet the provisions 
of pertinent statutes, regulations, agency administrative requirements, 
and relevant OMB circulars to ensure project success.
    Sections 26.38 through 26.40 are reserved.
    Section 26.41 notifies the applicant of the applicable USDA 
policies and regulations on nondiscrimination. Whenever an individual 
or organization accepts federal funds under an assistance award, there 
are certain public requirements, established by Congress or the 
President, with which the recipient must comply. The USDA Office of 
Outreach has no discretion regarding these requirements and has a duty 
to enforce compliance.
    Sections 26.42 through 26.50 are reserved.

List of Subjects in 7 CFR Part 26

    Grant programs--agriculture.

    For reasons set out in the preamble, USDA proposes to add 7 CFR 
part 26 as set forth below.
Sec.

PART 26--OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS AND 
RANCHERS PROGRAM

26.1   General.
26.2   Objectives.
26.3   Project period.
26.4   Definitions.
26.5   Eligible entities.
26.6   Substantial Federal Involvement.
26.7   [Reserved].
26.8   Program announcement.
26.9   Proposal content. \saves\proposal.xml
26.10   Proposal review.
26.11   Award process.
26.12-26.14   [Reserved].
26.15   Authorized use of funds.
26.16-26.25   [Reserved].
26.26   Other applicable Federal statutes and regulations.
26.27   Fund disbursement.
26.28   Financial management systems and reporting requirements.
26.29-26.36   [Reserved].
26.37   Monitoring compliance and penalty for noncompliance.
26.38-26.40   [Reserved].
26.41   Nondiscrimination.
26.42-26.50   [Reserved].

    Authority: 5 U.S.C. 301; 7 U.S.C. 2279(a); 7 CFR 2.24.

PART 26--OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS 
AND RANCHERS PROGRAM


Sec. 26.1  General.

    This part establishes procedures for the administration of the 
Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers 
Program whereby eligible entities enter into a grant or cooperative 
agreement with the USDA Office of Outreach (OR) to provide outreach and 
technical assistance to encourage and assist socially disadvantaged 
farmers and ranchers to own and operate farms and ranches and to 
participate in agricultural programs. The Catalog of Federal Domestic 
Assistance (CFDA) number for this program is 10.443.


Sec. 26.2  Objectives.

    OR will fund grant agreements or cooperative agreements with 
eligible entities for outreach and assistance to socially disadvantaged 
farmers and ranchers projects, which are determined to meet the 
following program objectives:
    (a) To encourage and assist members of socially disadvantaged 
groups to own and operate farms and ranches and to participate in 
agricultural programs.
    (b) To keep socially disadvantaged farmers and ranchers on the farm 
and to ensure diversified ownership of agricultural land and farm 
operations throughout the United States, thus strengthening the rural 
economy.


Sec. 26.3  Project period.

    An agreement under this program will specify a project period for a 
duration not to exceed one year, subject to the availability of funds 
or termination of the project either by mutual agreement or for 
material noncompliance with the terms and conditions of an award.


Sec. 26.4  Definitions.

    For the purpose of the Outreach and Assistance for Socially 
Disadvantaged Farmers and Ranchers Program, the following definitions 
apply:
    1890 Land-Grant Colleges means one of those institutions 
eligible to receive funds under the Act of August 30, 1890, as amended 
(7 U.S.C. 321 et seq.), including Tuskegee University.

[[Page 21612]]

    Agricultural programs means those activities established or 
authorized by the Agricultural Act of 1949; the Consolidated Farm and 
Rural Development Act; the Agricultural Adjustment Act of 1938; the 
Soil Conservation Act; the Domestic Allotment Assistance Act; the Food 
Security Act of 1985; and other such Acts as determined by the 
Director, USDA Office of Outreach, on a case-by-case basis either at 
the Director's initiative or in response to a written request with 
supporting explanation for inclusion of an Act. Covered programs 
include, but are not limited to, agricultural conservation program, 
programs comprising the environmental conservation acreage reserve 
program (ECARP), conservation technical assistance program, emergency 
conservation program, forestry incentives program, Great Plains 
Conservation Program, integrated farm management option program, price 
support and production adjustment programs, rural environmental 
conservation program, soil survey program, and water bank program; and 
USDA farm loan programs (farm ownership, operating, soil and water, and 
emergency loans).
    Alaska Native means a citizen of the United States who is a 
person of one-fourth degree or more Alaska Indian (including Tsimshian 
Indians not enrolled in the Metlaktla Indian Community) Eskimo, or 
Aleut blood, or combination thereof. It also includes, in the absence 
of proof of a minimum blood quantum, any citizen of the United States 
who is regarded as an Alaska Native by the Native village or Native 
group of which he claims to be a member and whose father or mother is 
(or, if deceased, was) regarded as Native by any village or group.
    Alaska Native cooperative colleges means any post-secondary 
education institution that at the time of application, has an 
enrollment of undergraduate students that is at least 20 percent Alaska 
Native students.
    Authorized organizational representative means the 
president or chief executive officer of the applicant organization or 
the official, designated by the president or chief executive officer of 
the applicant organization, who has the authority to commit the 
resources of the organization.
    Awardee means the recipient designated in the grant award 
document as the responsible legal entity to which the Federal 
assistance is awarded.
    Awarding official means the Director of the USDA Office of 
Outreach or the Director's designee, who has been delegated the 
authority to issue or modify program agreements on behalf of the 
Secretary of Agriculture for this program.
    Budget period means the interval of time (usually 12 
months) into which the project period is divided for budgetary and 
reporting purposes.
    Community-based organization means a nonprofit, 
nongovernmental organization with a well-defined constituency that 
includes all or part of a particular community, e.g., 
communities consisting of socially disadvantaged farmers and 
ranchers.
    Cooperative agreement means an award of funds to an 
eligible entity with the following characteristics:
    (1) The principal purpose of the award is to transfer a thing of 
value to the awardee to accomplish a public purpose of support or 
stimulation authorized by statute, rather than acquisition, by 
purchase, lease, or barter, of property or services for the direct 
benefit or use of the Federal Government; and
    (2) At the time of award, substantial involvement is anticipated 
between OR and the awardee in performing the activity under the 
agreement.
    Department or USDA means the United States Department of 
Agriculture.
    Enrollment of needy students means an enrollment at an 
institution with respect to which:
    (1) At least 50 percent of the degree students so enrolled are 
receiving need-based Federal financial assistance, including the 
Federal work-study program, in the second fiscal year preceding the 
fiscal year for which the determination is made (other than loans for 
which an interest subsidy is paid pursuant to 20 U.S.C. 1078); or
    (2) A substantial percentage of the students so enrolled are 
receiving Federal Pell Grants in the second fiscal year preceding the 
fiscal year for which determination is made, compared to the percentage 
of students receiving Federal Pell Grants at all such institutions in 
the second fiscal year preceding the fiscal year for which the 
determination is made.
    Full-time equivalent students means the sum of the number 
of students enrolled full time at an institution, plus the full-time 
equivalent of the number of students enrolled part time (determined on 
the basis of the quotient of the sum of the credit hours of all part-
time students divided by 12) at such institution.
    Grant means an award of funds to an eligible entity with 
the following characteristics:
    (1) The principal purpose of the award is to transfer a thing of 
value to the awardee to accomplish a public purpose of support or 
stimulation authorized by statute, rather than acquisition, by 
purchase, lease, or barter, of property or services for the direct 
benefit or use of the Federal Government; and
    (2) At the time an award is made, no substantial involvement is 
anticipated between OR and the awardee in performing the activity under 
the agreement.
    Hispanic serving post-secondary educational institutions 
means a post-secondary educational institution that:
    (1) At the time of application, has an enrollment of undergraduate 
full-time equivalent students that is at least 25 percent Hispanic 
students; and
    (2) Provides assurances that not less than 50 percent of the 
institution's Hispanic students are low-income individuals.
    Indian Tribal Community Colleges means a post-secondary 
educational institution which:
    (1) Is formally controlled, or has been formally sanctioned, or 
chartered, by the governing body of an Indian tribe or tribes, except 
that no more than one such institution shall be recognized with respect 
to any such tribe; and
    (2) Includes an institution listed in the Equity in Educational 
Land Grant Status Act of 1994, as amended (7 U.S.C. 301 note). The 1994 
Land-Grant Institutions are: Bay Mills Community College, Blackfeet 
Community College, Cankdeska Cikana Community College, Cheyenne River 
Community College, Dine Community College, D-Q University, Dullknife 
Memorial College, Fond Du Lac Community College, Fort Belknap Community 
College, Fort Berthold Community College, Fort Peck Community College, 
LacCourte Orielles Ojibwa Community College, Little Big Horn Community 
College, Little Priest Community College, Nebraska Indian Community 
College, Northwest Indian College, Oglala Lakota College, Salish 
Kootenai College, Sinte Gleska University, Sisseton Wahpeton Community 
College, Sitting Bull College, Stonechild Community College, Turtle 
Mountain Community College, United Tribes Technical College, Southwest 
Indian Polytechnic Institute, Institute of American Indian Arts, 
Crownpoint Institute of Technology, Haskell Indian Nations University, 
Leech Lake Tribal College, and College of the Menominee Nation.
    Junior or community college means an institution of higher 
education:
    (1) That admits as regular students persons who are beyond the age 
of compulsory school attendance in the State in which the institution 
is located

[[Page 21613]]

and who have the ability to benefit from the training offered by the 
institution;
    (2) That does not provide an educational program for which the 
institution awards a bachelor's degree (or an equivalent degree); and
    (3) That--
    (i) Provides an educational program of not less than 2 years in 
duration that is acceptable for full credit toward such a degree; or
    (ii) Offers a 2-year program in engineering, mathematics, or the 
physical or biological sciences, designed to prepare a student to work 
as a technician or at the semiprofessional level in engineering, 
scientific, or other technological fields requiring the understanding 
and application of basic engineering, scientific, or mathematical 
principles of knowledge.
    Low-income individual means an individual from a family 
whose taxable income for the preceding year did not exceed 150 percent 
of an amount equal to the poverty level determined by using criteria of 
poverty established by the Bureau of the Census.
    Peer reviewers means experts from the public and private 
sectors qualified by training and experience in particular fields and 
designated by the Director, USDA Office of Outreach or other designated 
official to evaluate eligible proposals.
    Post-secondary educational institutions means an 
institution of higher education in any State which:
    (1) Admits as regular students only persons having a certificate of 
graduation from a school providing secondary education, or the 
recognized equivalent of such a certificate;
    (2) Is a public or other nonprofit institution;
    (3) Which has an enrollment of needy students as defined in the 
definition of ``low-income individual'';
    (4) The average educational and general expenditures of which are 
low, per full-time equivalent undergraduate student, in comparison with 
the average educational and general expenditures per full-time 
equivalent undergraduate student of institutions that offer similar 
instruction;
    (5) Which is--
    (i) Legally authorized to provide, and provides within the State, 
an educational program for which such institution awards a bachelor's 
degree;
    (ii) A junior or community college; or
    (iii) The College of the Marshall Islands, the College of 
Micronesia/Federated States of Micronesia, and Palau Community College;
    (6) Which is accredited by a nationally recognized accrediting 
agency or association determined by the Secretary to be reliable 
authority as to the quality of training offered or which is, according 
to such an agency or association, making reasonable progress toward 
accreditation;
    (7) Which meets such other requirements as the Secretary may 
prescribe; and
    (8) Located in a State. Any branch of any institution of higher 
education described above which satisfies the criteria in paragraphs 
(3) and (4) of this definition. For purposes of the determination of 
whether an institution is an eligible institution under this paragraph, 
the factor in paragraph (3) of this definition shall be given twice the 
weight of the factor in paragraph (4) of this definition.
    Prior approval means written, prior consent by the awarding 
official.
    Project means the total activities within the scope of the 
program as identified in the grant or cooperative agreement.
    Project director means the individual responsible for the 
direction and management of the project, as designated by the awardee 
in the project proposal and approved by the awarding official. The 
project director will devote full time to the administration of the 
project.
    Project period means the total time approved by the 
awarding official for conducting the proposed project as outlined in an 
approved project proposal or the approved portions thereof and as 
specified in the grant or cooperative agreement.
    Recipient means an entity as defined in Sec. 26.5 of this 
part that has entered into a grant or cooperative agreement with OR.
    Requests for Proposals (RFP) means an invitation to submit 
proposals for consideration for funding under this program.
    Socially disadvantaged farmer or rancher means a farmer or 
rancher who is a member of a socially disadvantaged group.
    Socially disadvantaged group means a group whose members 
have been subjected to racial or ethnic prejudice because of their 
identity as members of a group without regard to their individual 
qualities. Socially disadvantaged groups include, but are not limited 
to, African-Americans, Native Americans, Alaskan Natives, Hispanics, 
Asians, and Pacific Islanders. The Secretary will determine on a case-
by-case basis whether additional groups qualify under this definition, 
either at the Secretary's initiative or in response to a written 
request with supporting explanation.


Sec. 26.5  Eligible entities.

    The statute limits eligibility under this program to the following 
institutions and organizations:
    (a) 1890 Land-Grant Colleges, including Tuskegee University;
    (b) Indian tribal community colleges;
    (c) Alaska Native cooperative colleges;
    (d) Hispanic-serving post-secondary educational institutions;
    (e) Other post-secondary educational institutions with demonstrated 
experience in providing agricultural education or other agriculturally-
related services to socially disadvantaged family farmers or ranchers 
in their region; and
    (f) Any community-based organization that:
    (1) Has demonstrated experience in providing agricultural education 
or other agriculturally-related services to socially disadvantaged 
farmers and ranchers;
    (2) Provides documentary evidence of its past experience in working 
with socially disadvantaged farmers and ranchers during the 2 years 
preceding its application for assistance. Documentary evidence shall 
include a narrative providing specific information regarding the scope 
of past projects (including the number of socially disadvantaged 
farmers and ranchers served or the area served by the organization), 
activities conducted, and community involvement and copies of prior 
agreements, press releases, news articles, and other contemporaneous 
documents supporting the narrative; and
    (3) Does not engage in activities prohibited under Section 501 
(c)(3) of the Internal Revenue Code of 1986.


Sec. 26.6  Substantial federal involvement.

    The USDA Office of Outreach may award cooperative agreements under 
this program. By statute, the Federal awarding agency must be 
substantially involved in the project to enter into a cooperative 
agreement to provide assistance. The USDA Office of Outreach 
anticipates the following involvement, which it has deemed substantial, 
in carrying out projects funded with Federal assistance provided 
through a cooperative agreement under this program:
    (a) The USDA Office of Outreach will serve as liaison and 
coordinate the close collaboration between awardees and USDA agencies 
that administer agricultural programs targeted for outreach under the 
project;
    (b) The USDA Office of Outreach will facilitate and coordinate 
training and continuing updates for awardees regarding the regulatory 
requirements,

[[Page 21614]]

application procedures, and compliance for targeted agricultural 
programs;
    (c) USDA Office of Outreach will assist awardees in planning 
workshops for targeted socially disadvantaged groups, including 
coordinating the provision of available information (e.g., application 
forms and instructions) from USDA necessary to accomplish workshop 
objectives;
    (d) The USDA Office of Outreach must approve position descriptions 
and the selection of key personnel as identified in the project 
proposal if such personnel are hired or replaced during the project 
period;
    (e) The USDA Office of Outreach will work closely with awardees to 
obtain the significant amounts of information necessary for the USDA 
Office of Outreach to comply with its statutory requirements to provide 
reports regarding this program to the Congress; and
    (f) The USDA Office of Outreach will monitor projects closely and 
may request changes in project direction as necessary.


Sec. 26.7  [Reserved]


Sec. 26.8  Program announcement.

    A program announcement for each new competition will be published 
in the Federal Register and such other publication(s) as deemed 
appropriate.


Sec. 26.9  Proposal content.

    The project proposal must contain at a minimum the following 
information:
    (a) Background and need for the project. Explain the 
circumstances that necessitate an Outreach and Technical Assistance 
Project within a county, region, State or other geographic area to 
serve socially disadvantaged farmers and ranchers.
    (b) Objectives and goals proposed to meet the objectives. 
Clearly state the objectives of the project and explain the goals 
proposed to meet the objectives. Identify all important project 
milestones and dates as they relate to project start-up, execution, 
evaluation, dissemination, and close out. Indicate the specific 
agricultural programs for which the proposed project will provide 
outreach and assistance.
    (c) Statement of Work, including staffing. Describe the 
plan of action for meeting the objectives of the Outreach and Technical 
Assistance Program and the necessary staffing. Describe and explain the 
nature of any proposed collaborative or subcontractural arrangements 
necessary to carry out the project.
    (d) Proposed budget.
    (1) Submit a detailed budget accompanied by a narrative 
description outlining and justifying the listed costs, for one year (12 
months).
    (2) Show all funding sources and itemize costs by the following 
line items: Personnel costs, equipment, material and supplies, travel, 
and all other costs.
    (3) Salaries of project personnel who will be working on the 
project may be requested in proportion to the effort that they will 
devote to the project.
    (4) Funds may be requested under any of the line items listed above 
provided that the item or source for which support is requested is 
identified as necessary for the successful conduct of the project, is 
allowable under the authorizing legislation and applicable Federal cost 
principles, and is not prohibited under any applicable Federal statute 
or regulation.
    (5) The program announcement will specify any limitations on 
indirect costs under this program. The General Provisions of the annual 
Appropriations Act funding USDA ordinarily limit indirect costs under 
cooperative agreements between USDA and non-profit institutions, 
including institutions of higher education, to ten percent of the total 
direct costs of the agreement, with an exception when an institution 
computes its direct cost rates on a similar basis for all agencies 
covered by that Act (typically referred to as the Federal negotiated 
indirect cost rate).
    (e) Personnel. Include the resumes of all anticipated 
personnel, including the Project Director in the proposal package. Also 
discuss the experience, qualifications, and availability of all 
personnel, including the Project Director, to direct and carry out the 
project.


Sec. 26.10  Proposal review.

    (a) Prior to the technical examination, a preliminary review will 
be made by the USDA Office of Outreach staff for responsiveness to this 
solicitation. Proposals that do not fall within the solicitation 
guidelines will be eliminated from competition. All responsive 
proposals will be reviewed by peer reviewers using the evaluation 
criteria stated below. The peer reviewers will be selected to provide 
maximum expertise and objective judgment in the evaluation of 
proposals.
    (b) To assist in the evaluation and obtain the best possible 
balance of viewpoints for funding consideration, peer reviewers will 
evaluate responsive proposals. The proposal review panel will be 
selected and organized to provide maximum expertise and objective 
judgment in the evaluation of proposals. The peer reviewers will 
evaluate each proposal using the following evaluation criteria. The 
weight of each criterion will be specified in the program announcement:
    (1) Institutional commitment and resources. Degree to which 
the institution or organization is committed to the project. 
Experience, qualifications, competence, and availability of personnel 
and resources to direct and carry out the project.
    (2) Feasibility and policy consistency. Degree to which the 
proposal clearly describes its objectives and evidences a high level of 
feasibility and consistency with the USDA policy and mission. This 
criterion relates to the adequacy, soundness of the proposed approach 
to the solution of the problem and evaluates the plan of operation, 
timetable, evaluation and dissemination plans.
    (3) Number of socially disadvantaged farmers and ranchers 
served and collaboration. Degree to which the proposal reflects 
partnerships and collaborative initiatives with other agencies or 
organizations to enhance the quality and effectiveness of the program. 
Additionally, the areas and number of socially disadvantaged farmers 
and ranchers who would benefit from the services offered.
    (4) Socially disadvantaged applicants-outreach. Degree to 
which the proposal contains efforts to reach persons identified as 
socially disadvantaged farmers and ranchers in targeted counties. 
Potential for encouraging and assisting socially disadvantaged farmers 
and ranchers to own and operate farms and ranches and to participate in 
agricultural programs. Elements considered include impact, continuation 
plans, innovation, and expected products and results.
    (5) Preparatory features--statement of work. Degree to 
which the proposal reflects innovative strategies for reaching the 
population targeted in the proposal and achieving the project 
objectives. Elements evaluated include originality, practicality, and 
creativity in developing and testing innovative solutions to existing 
or anticipated issues or problems of socially disadvantaged farmers and 
ranchers. Responsiveness to the need to provide socially disadvantaged 
farmers and ranchers with information and assistance on application and 
bidding procedures, farm management, other essential information to 
enhance participation of agricultural programs and conducting a 
successful farming operation.
    (6) Overall quality of the proposal. Degree to which the 
proposal complies with the Application Guidelines and is of high 
quality. Elements considered

[[Page 21615]]

include adherence to instructions, accuracy and completeness of forms, 
clarity and organization of ideas, thoroughness and sufficiency of 
detail in the budget narrative, specificity of allocations between 
targeted areas if the proposal addresses more than one area, and 
completeness of vitae for all key personnel associated with the 
project.


Sec. 26.11  Award process.

    (a) OR will use the views of the individual reviewers to determine 
which proposals to recommend to the awarding official for funding. 
Evaluated proposals will be ranked by OR based on merit. The awarding 
official reserves the right to make awards to ensure the variety among 
successful applicants and the nature of the projects funded in order to 
accomplish the program objectives. The awarding official also reserves 
the right to negotiate with applicants recommended for funding 
regarding project revisions (e.g., reductions in scope of work), 
funding level, or period of support prior to an award, based on the 
amount of resources available to achieve the broad program objectives. 
Revisions to proposals recommended for funding may not increase the 
proposed scope of or funding for a project or otherwise undermine or 
circumvent the competitive nature of the award process.
    (b) The final decision to award is at the discretion of the 
awarding official. The awarding official shall consider the peer 
reviewers' comments and the recommendations by the OR staff and any 
other pertinent information before making a final decision.
    (c) After a decision regarding funding is made, OR and the awardee 
which is selected will enter into a grant or cooperative agreement. The 
awarding official will notify the awardee of approval and inform it of 
the necessary documents needed to execute the agreement.
    (d) Once all award decisions are made, OR will notify all 
unsuccessful applicants that their proposals did not receive an award.


Sec. Sec. 26.12-26.14  [Reserved]


Sec. 26.15  Authorized use of funds.

    Any funds authorized by the Outreach and Assistance for Socially 
Disadvantaged Farmers and Ranchers program must be used only for the 
project under the grant or cooperative agreement. There is no other 
authorized use of the funds. Eligible costs are limited to those line 
items specified in the approved budget.


Sec. Sec. 26.16--26.25  [Reserved]


Sec. 26.26  Other applicable Federal statutes and regulations.

    Several other Federal statutes and regulations apply to this 
program. These include, but are not limited to, the following:
    (a) 7 CFR part 1b--USDA Implementation of the National 
Environmental Policy Act;
    (b) 7 CFR part 3--USDA implementation of OMB Circular A-129 
regarding debt collection;
    (c) 7 CFR part 1.1--USDA implementation of the Freedom of 
Information Act;
    (d) 7 CFR part 15, Subpart A--USDA implementation of Title VI of 
the Civil Rights Act of 1964;
    (e) 7 CFR part 3015--USDA Uniform Federal Assistance Regulations, 
implementing OMB Directives (i.e., Circular Nos. A-110, A-21, 
and A-122) and incorporating provisions of 31 U.S.C. 6301-6308 as well 
as general policy requirements applicable to awardees of Departmental 
financial assistance;
    (f) 7 CFR part 3017--USDA implementation of Government-wide 
Debarment and Suspension (nonprocurement) and Governmentwide 
Requirements for Drug-Free Workplace (Grants);
    (g) 7 CFR part 3018--USDA implementation of New Restrictions on 
Lobbying. Imposes prohibitions and requirements for disclosure and 
certification related to lobbying on awardees of Federal contracts, 
grants, cooperative agreements, and loans;
    (h) 7 CFR part 3019--USDA Uniform Administrative Requirements for 
Grants and Agreements with Institutions of Higher Education, Hospitals, 
and Other Non-Profit Organizations;
    (i) 29 U.S.C. 794, Section 504 of the Rehabilitation Act of 1973, 
and 7 CFR part 156 (USDA implementation of the statute)--Prohibits 
discrimination based upon physical or mental handicap in Federally 
assisted programs; and
    (j) 35 U.S.C. 200 et seq.--Bayh-Dole Act, controlling 
allocation of rights to inventions made by employees of small business 
firms and domestic nonprofit organizations, including universities, in 
Federally assisted programs (implementing regulations are contained in 
37 CFR part 401).


Sec. 26.27  Fund disbursement.

    The method of payment will be by reimbursement by Electronic Fund 
Transfer (EFT), and payment will be requested on Standard Form (SF) 
270, ``Request for Advance or Reimbursement.'' Payments will be 
processed in accordance with 7 CFR parts 3015 and 3019, as applicable.


Sec. 26.28  Financial management systems and reporting requirements.

    (a) Awardees must comply with standards for the financial 
management and reporting and program performance reporting found in 7 
CFR parts 3015 and 3019, as applicable.
    (b) Awardees must provide to the OR quarterly financial and program 
performance reports. The reports are due 30 days after the reporting 
period, and an original and two copies of each report will be 
submitted. The financial report will be presented on SF-269, 
``Financial Status Report,'' and the financial and program performance 
reports will be prepared in accordance with 7 CFR parts 3015 and 3019, 
as applicable.
    (c) The program performance report should also address progress on 
the activities under each of the areas of outreach and technical 
assistance, as stipulated in the grant or cooperative agreement.


Sec. Sec. 26.29-26.36  [Reserved]


Sec. 26.37  Monitoring compliance and penalty for noncompliance.

    (a) OR monitoring. OR will monitor compliance of the 
Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers 
projects through the reports received in accordance with Sec. 26.28 of 
this part, through information received from USDA field offices and the 
public, and through on-site visits to observe the operation and 
administration of the program.
    (b) Audits. Awardees are subject to the audit requirements 
of 7 CFR parts 3015 and 3019, as applicable. An audit report will be 
submitted to OR annually in accordance with OMB Circular A-133. All 
records of the awardees will be subject to audit by appropriate USDA 
Office of Outreach staff or other responsible authority.
    (c) Penalty for noncompliance. If the Director, OR 
determines that a project does not meet or no longer meets the 
objective of the program, that there has been a violation of the grant 
or cooperative agreement, that reporting requirements are not being 
met, or that funds are not being used only for the operation and 
administration of the authorized project, the awarding official is 
authorized to impose any penalties or sanctions established in 7 CFR 
parts 3015 and 3019, as applicable. Penalties may include withholding 
payments, suspension of the grant or cooperative agreement, or 
termination for cause. If a penalty for noncompliance is enforced, the 
reason(s) will be stated in a letter to

[[Page 21616]]

the awardee along with appeal procedures.


Sec. Sec. 26.38-26.40  [Reserved]


Sec. 26.41  Nondiscrimination.

    The policies and regulations contained in 7 CFR parts 15, 15a, and 
15b apply to grants and cooperative agreements made under this part.


Sec. Sec. 26.42-26.50  [Reserved]

    Done at Washington, DC, this 23rd day of April, 2001.
Ann M. Veneman,
Secretary of Agriculture.
[FR Doc. 01-10523 Filed 4-27-01; 8:45 am]
BILLING CODE 3410-01-U