[Federal Register Volume 67, Number 76 (Friday, April 19, 2002)]
[Notices]
[Pages 19396-19403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-9682]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

[Docket No.: 011113275-2037-02; I.D. 030602A]
RIN 0648-ZB11


Coral Reef Conservation Grant Program Implementation Guidelines

AGENCY: National Marine Fisheries Service (NMFS), National Ocean 
Service (NOS), Commerce.

ACTION: Final Implementation Guidelines for the Coral Reef Conservation 
Program.

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SUMMARY: This document provides NOAA's Implementation Guidelines 
(Guidelines) for the Coral Reef Conservation Program (Program) under 
the Coral Reef Conservation Act of 2000 (Act). The Act authorizes the 
Secretary of Commerce (Secretary), through the NOAA Administrator 
(Administrator) and subject to the availability of funds, to provide 
matching grants of financial assistance for coral reef conservation 
projects under the Act (Coral Reef Conservation Program). As per the 
Act, NOAA has developed these Implementation Guidelines for the Program 
for Fiscal Year (FY) 2002 through FY 2004. Proposed Implementation 
Guidelines were published in the Federal Register for review and 
comment on December 10, 2001. NOAA will use several existing grant 
programs and mechanisms to implement the Program. Specific Program 
information including available funding, dates, and detailed 
application requirements and proposal evaluation criteria for FY 2002 
are published concurrently with these Guidelines in a separate Federal 
Register Notice of Availability of financial assistance for coral reef 
conservation activities. NOAA is in the final stages of completing the 
National Coral Reef Action Strategy (Strategy), in consultation with 
the United States Coral Reef Task Force (USCRTF), as required under the 
Act. The purpose of the Strategy is to provide an implementation plan 
to advance coral reef conservation, including basis for funding 
allocations to be made under the Program. Upon final completion of the 
Strategy, NOAA will publish notice of the Availability of the Strategy 
in the Federal Register and at: www.coralreef.noaa.gov/. The Department 
of Commerce Pre-Award Notification Requirements for Grants and 
Cooperative Agreements contained in the Federal Register notice of 
October 1, 2001, will be applicable to the funding guidance under this 
Program. This document is not a solicitation for FY 2002 project 
proposals.

DATES: Effective April 19, 2002.

FOR FURTHER INFORMATION CONTACT: David Kennedy, NOAA Coral Program 
Coordinator, Office of Response and Restoration, N/ORR, NOAA National 
Ocean Service, 1305 East-West Highway, Silver Spring, MD 20910, Fax: 
301-713-4389; Bill Millhouser, Pacific Regional Manager, CPD/OCRM, N/
ORM3, NOAA National Ocean Service, 1305 East-West Highway, Silver 
Spring, MD 20910, 301-713-3155, extension 189 or e-mail at 
[email protected]; or Tom Hourigan, Biodiversity Program Leader, 
NOAA Watershed Division, HC-1, NOAA National Marine Fisheries Service, 
1315 East-West Highway, Silver Spring, MD 20910, 301-713-2319, 
extension 121 or e-mail at [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

A. Overview

    The Coral Reef Conservation Act of 2000 was enacted on December 14, 
2000, for the following purposes:

1. To preserve, sustain and restore the condition of coral reef 
ecosystems;
2. To promote the wise management and sustainable use of coral reef 
ecosystems to benefit local communities and the Nation;
3. To develop sound scientific information on the condition of coral 
reef ecosystems and the threats to such ecosystems;
4. To assist in the preservation of coral reefs by supporting 
conservation programs, including projects that involve affected local 
communities and non-governmental organizations;
5. To provide financial resources for those programs and projects; and
6. To establish a formal mechanism for the collecting and allocating of 
monetary donations from the private sector to be used for coral reef 
conservation projects.
    Under section 6403 of the Act, the Program authorizes the 
Secretary, through the Administrator and subject to the availability of 
funds, to provide matching financial assistance awards for coral reef 
conservation projects. Section 6408(c) of the Act authorizes up to 
$8,000,000 in each of FY 2001 through FY 2004 for projects under the 
Program.
    NOAA will use several existing grant programs and mechanisms to 
implement the Program. Each fiscal year the Program will publish a 
Federal

[[Page 19397]]

Register Notice to describe the availability of funds and solicit 
project proposals. The annual funding guidance, beginning in FY 2002, 
will provide greater detail on the year's program priorities, 
application process, and proposal evaluation criteria.

B. Comments and Responses, and Changes to the Proposed Guidelines

    The following summarizes the comments submitted in response to the 
Draft Guidelines published in the Federal Register on December 10, 
2001, and NOAA's responses:
    Comment 1: A commenter representing the coral reef research 
community raises concerns regarding the lack of support for long term 
funding for coral reef research, noting that if the goal of the funding 
is to support meaningful science and conservation projects, at least 
half the funds should be earmarked for 3-5 year projects. Moreover, the 
portion of the Guidelines that gives preference to projects that will 
be completed within 12 months of award distribution basically precludes 
funding much high quality, meaningful science, which generally requires 
multi-year efforts. The commenter notes that this language in Section 
IX. contradicts statements in Section VII. Funding Categories, and 
Mechanisms, and Section X. Project Review, which are concerned with 
long-term coral monitoring data and long-lasting conservation 
activities.
    Response: NOAA generally agrees with the comment that there is a 
need to support a long range coral reef research funding program. 
However, NOAA is limited in its ability to initiate such a effort given 
the uncertainty that recent increases in Federal Coral Reef funding 
will be sustained over the next 3-4 years. Although the FY 2003 budget 
proposal maintains current funding levels for coral reef conservation 
activities, there are many competing budget priorities that can affect 
the final budget. NOAA will further consider funding long range 
research if continued budget support becomes more certain. In the 
interim NOAA has added a funding category for coral reef ecosystem 
research projects for the purpose of developing sound scientific 
information on the condition of coral reef ecosystems or threats to 
such ecosystems (see section VII(3) below). In FY 2002, funding under 
this category will be targeted at improving coral monitoring 
technologies. In addition, National Ocean Service (NOS) published in 
the Federal Register on February 28, 2002, an announcement of funding 
opportunity to submit proposals for the coral ecosystem studies which 
is for long term coral reef ecosystem research.
    Comment 2: A commenter with experience in coral reef research 
states that the proposed guidelines are thorough and that NOAA's focus 
on education, local partnerships, coral health/vitality, mapping, and 
restoration is key and much needed. The commenter suggests adding 
marine protected areas (MPAs) and/or adaptive management research to 
the list of Eligible Conservation Activities in section V of the 
Guidelines, citing recommendations from the 9th International Coral 
Reef Symposium and states that more research is needed on the shape and 
use of buffer zones in MPA implementation. For example, mixed research 
results indicate an uncertain relationship between MPA size and 
success. Clearly more research is needed to dissect the cause and 
effect relationship between the success of MPAs and their size, 
location, connectivity, and the association with the surrounding 
environment.
    Response: NOAA agrees with the comment as to the need to fund 
projects which develop a better understanding of the characteristics of 
successful MPAs. Research activities to improve the design and 
effectiveness of marine protected areas in coral reef ecosystems are 
eligible for funding under the State and Territorial coral reef 
management, general coral reef conservation, regional fishery 
management council, and international grant categories in FY 2002. We 
have not changed section V of the Guidelines; however, the language in 
this section reflects the specific statutory language of section 204(g) 
of the Act. NOAA is also undertaking such analyses with regard to 
specific areas of the Florida Key National Marine Sanctuary, and Hawaii 
and Guam are evaluating the effectiveness of the existing MPAs and 
beginning to examine the types of issues noted in the comment. In 
addition, the need for this type of research is specifically noted in 
several sections of the Strategy (Conduct Strategic Research and 
Improve The Use of Marine Protected Areas).
    A commenter representing coastal states and territories, provides 
specific comments on a number of sections of the Guidelines:
    Comment 3: The commenter reiterates the importance of language in 
Section IV. Applicant Eligibility Requirements, that gives a low 
priority to grants to Federal agencies and the requirement that 
proposed Federal agency projects must be in collaboration and 
coordination with state or local public or non-governmental 
organizations. The intent of the program is to benefit local coral reef 
initiatives within the Pacific and Atlantic Oceans, the Gulf of Mexico, 
and the Caribbean Sea.
    Response: NOAA agrees with the comment that the Guidelines should 
give a low priority to funding Federal agencies, unless specific 
conditions are met; the final Guidelines maintain the language of the 
draft Guidelines in this regard. Please note, that section 6403(d)(3) 
of the Act also provides for the funding of international projects, as 
provided in the Guidelines.
    Comment 4: The Strategy should be reconciled and integrated with 
other required Federal reports and studies such as the U.S. Coral Reef 
Task Force Oversight Policy, as well as other grants-related requests 
and information to reduce redundancy and effort.
    Response: NOAA agrees that the various reporting requirements noted 
above should be consolidated as much as possible. NOAA will continue to 
work with state and territorial grantees and the Coral Reef Task Force 
agencies to address this issue over the coming year.
    Comment 5: The Guidelines and the Strategy include a discussion of 
the interrelationship and integrated nature of coral reef management 
with response to the objectives of the Coastal Zone Management Act and 
federally approved coastal zone management programs. It is also 
recommended that the project reporting under the implementation 
guidelines include information regarding project coordination with the 
goals and objectives of federally approved coastal zone management 
(CZM) programs.
    Response: NOAA believes that coral reef conservation and coastal 
management share many conservation and management objectives. In most 
cases, the same state or territorial agency is the lead for both 
coastal management and coral management functions; in cases where they 
are not, good local coordination is in place. The Guidelines and the FY 
2002 Funding Guidance also require that state and territorial coral 
reef projects must be developed in partnership with all relevant local 
agencies, including the coastal zone management, water quality, and the 
wildlife and/or marine resource agencies. Given the high degree of 
coordination that currently exists, NOAA does not believe that specific 
reporting on project coordination with CZM goals is necessary.
    Comment 6: The language in Section VI instructing the Administrator 
to consult with the Coral Reef Task force when identifying emerging 
threats or priorities should be changed from ``may'' to ``shall 
whenever possible.''

[[Page 19398]]

The commenter also notes the possible disparity between national and 
local level priorities, recommends close coordination at the local 
level to identify priorities for funding and recommends flexibility in 
determining priorities as they relate to criteria for grant approval.
    Response: NOAA agrees with the need to carefully balance National 
goals and priorities with local conditions, objectives and customs. 
NOAA believes that the Guidelines and the FY 2002 funding guidance 
provide such a balance. With regard to the suggested language change 
regarding consultation with the Coral Reef Task Force, the Guidelines 
restate the statutory language of the Act, section 6403(d); therefore, 
the language has not been changed. Please note that the Coral Reef Task 
Force Working Groups, and states and territories have been consulted 
with, and have had substantial input into, the development of the 
Strategy.
    Comment 7: The proposed implementation guidelines, in section VII. 
Funding Categories and Mechanisms, should be clarified to ensure that 
while one state agency may be the lead for managing grants or 
cooperative agreements, funds may be made available for use by any 
approved state agency.
    Response: The Guidelines require that state and territorial 
proposals be developed in partnership with all relevant local agencies 
and organizations which have responsibilities for the management and 
conservation of coral reefs in that jurisdiction. The funding provided 
to any one agency should reflect local priorities and needs and be 
commensurate with that agency's responsibility and authority to achieve 
improved protection of coral reef ecosystem resources.
    Comment 8: The implementation Guidelines should clarify the 
relationship between the grants or cooperative agreements made pursuant 
to the Act and these guidelines, and guidance and corresponding 
authorized cites for each funding category, e.g., the Coastal Zone 
Management Act (CZMA) section 310; CFDA 11.426; and CFDA 11.463.
    Response: As noted above, projects funded pursuant to the CZMA and 
the Act should complement each other. Based on our experience to date, 
NOAA does not see a need to provide more explicit guidance on this 
issue.
    Comment 9: The language in Section X. Project Review relating to 
state and territorial review of projects, should be changed from 
``projects in state or territorial waters'' to ``projects affecting 
state territorial waters.''
    Response: NOAA believes the language contained in the draft 
Guidelines is consistent with the statutory construction of section 
6403(f)(2)(A) of the Act which requires review by agencies ``with 
jurisdiction or management authority over coral reef ecosystems in the 
area where the project is to be conducted.'' NOAA has therefore 
retained that language in the final Guidelines. As the commenter has 
suggested language used in the application of the Federal Consistency 
provisions of the CZMA, NOAA notes that Federal consistency provisions 
do apply to Federal funding under the Coral Reef Conservation Program. 
Applicants should refer to the Coastal Zone Management Act Federal 
Consistency Regulations at 15 CFR part 930, to ensure compliance with 
these requirements.
    Comment 10: A commenter representing a field office of the U.S. 
Fish and Wildlife Service, agrees with the objective to support coral 
reef conservation through a grant system. However, the commenter 
expresses concern that the guidelines are too vague regarding review 
and approval of projects occurring in areas administered by the 
Department of the Interior, specifically National Wildlife Refuges. The 
commenter recommends that the annual solicitations for project 
proposals inform readers that proposals submitted for activities within 
National Wildlife Refuges will be reviewed by the Service pursuant to 
the National Wildlife Refuge System Administration Improvement Act of 
1997 and other relevant authorities. The commenter recommends adding a 
new sentence to Section IX. Application Process (subsection 5), as 
follows: ``Proposed projects within National Wildlife Refuges must be 
determined by the U.S. Fish and Wildlife Service, pursuant to the 
National Wildlife Refuge System Administration Improvement Act of 1997, 
to be compatible with established refuge purposes and management 
objectives in order for the Service to issue a Special Use Permit to 
conduct the proposed activities.''
    Response: NOAA agrees with the need for projects that occur within 
National Wildlife Refuges to obtain all necessary authorizations and 
permits from the U.S. Fish and Wildlife Service. We believe that the 
language in Section IX of the guidelines are clear in requiring 
applicants to submit all applicable Federal permits. We have added 
language to the end of Section X of the guidelines which states that 
agencies with jurisdiction over proposed project, such as the U.S. Fish 
and Wildlife Service will provide assurance that the applicant is 
proceeding to obtain a permit or other authorization from that 
jurisdiction in order to conduct the project, and the status of that 
process. As noted in Section X(3)(b)(v) of the guidelines, NOAA will 
require applicants to obtain all required state and Federal permits as 
a condition of making an award.
    Comment 11: A commenter representing a U.S. Territory recommends 
that the process for establishing national priorities include close 
consultation at the local level. The commenter also recommends 
shortening the time frame for NOAA's review and approval of proposed 
projects from 6 months to 2-4 months so that projects may begin on 
time.
    Response: NOAA believes that the process used to develop the 
Guidelines and the Strategy has included adequate consultation 
regarding local priorities and needs, and further, that the coral 
grants program provides the necessary flexibility to meet those needs. 
NOAA agrees with the objective of reducing the time necessary for the 
review of coral grant applications; we believe the time line described 
in the FY 2002 is reasonable given the Act's requirements for 
application review by peers and affected jurisdictions, and NOAA's 
internal grant process.
    In summary the Guidelines have been substantively changed in the 
following areas:
    1. A new funding category has been added at Section VII (3) to 
provide potential funding for coral reef ecosystem research projects 
for the purpose of developing sound scientific information on the 
condition of coral reef ecosystems or threats to such ecosystems.
    2. Section X has been modified to request that agencies that are 
reviewing applications provide NOAA with information on the need for 
the applicant to obtain a permit or other authorization from the agency 
in order to conduct the project, and the status of that process.

II. Electronic Access

    The Coral Reef Conservation Act of 2000 and information on the U.S. 
Coral Reef Task Force, established June 11, 1998 under Executive Order 
13089, can be found on the Internet at: http://www.coralreef.noaa.gov.

III. Coral Reef Conservation Program

    The objective of the Program is to provide financial assistance for 
coral reef conservation projects consistent with the Act and the 
Strategy. NOAA's

[[Page 19399]]

role in administering the Program is to strengthen and support the 
development and implementation of sound coral reef conservation 
projects, as well as ensure that the most beneficial projects are 
recommended for funding.

IV. Applicant Eligibility Requirements

    As per section 6403(c) of the Act, eligible applicants include: Any 
natural resource management authority of a state or other government 
authority with jurisdiction over coral reefs or whose activities 
directly or indirectly affect coral reefs or coral reef ecosystems, or 
educational or non-governmental institutions with demonstrated 
expertise in the conservation of coral reefs. Each subcategory of 
funding under this Program, as described in Section VII of this 
document, encompasses a specific subgroup of eligible applicants.
    As a matter of policy, funding Federal agency activities under this 
Program will be a low priority unless such activities are an essential 
part of a cooperative project with other eligible governmental or non-
governmental entities. In order for a Federal agency to receive an 
award under this program, it must provide the requisite statutory 
authority to receive funds from a federal agency for these purposes. 
Please note that the Economy Act, 31 USC 1535, is not sufficient legal 
authority because NOAA is not procuring goods or services from the 
federal agency.
    NOAA agencies are not eligible for funding under this Program, as 
funding for such activities is provided for under section 6406 of the 
Act (National Program).

V. Eligible Coral Reef Conservation Activities

    As described in section 6403(g) of the Act, projects considered for 
funding under this Program must be consistent with the Strategy, 
published concurrently in the Federal Register. In addition, per the 
same section, the Administrator may not approve a project proposal 
unless it will enhance the conservation of coral reefs by addressing at 
least one of the following:
    1. Implementing coral conservation programs which promote 
sustainable development and ensure effective, long-term conservation of 
coral reefs;
    2. Addressing the conflicts arising from the use of environments 
near coral reefs or from the use of corals, species associated with 
coral reefs, and coral products;
    3. Enhancing compliance with laws that prohibit or regulate the 
taking of coral products or species associated with coral reefs or 
regulate the use and management of coral reef ecosystems;
    4. Developing sound scientific information on the condition of 
coral reef ecosystems or the threats to such ecosystems, including 
factors that cause coral disease;
    5. Promoting and assisting to implement cooperative coral reef 
conservation projects that involve affected local communities, non-
governmental organizations, or others in the private sector;
    6. Increasing public knowledge and awareness of coral reef 
ecosystems and issues regarding their long term conservation;
    7. Mapping the location and distribution of coral reefs;
    8. Developing and implementing techniques to monitor and assess the 
status and condition of coral reefs;
    9. Developing and implementing cost-effective methods to restore 
degraded coral reef ecosystems; or
    10. Promoting ecologically sound navigation and anchorages near 
coral reefs.

VI. Program Funding and Distribution

    Section 6408(c) of the Act authorizes up to $8,000,000 for use by 
the Secretary for FY 2001 through FY 2004 for the Program. The number 
of individual awards to be made each year will depend on the total 
amount of funds appropriated for coral reef activities within NOAA and 
the portion of those funds that are allocated to this Program. The 
total annual Program funding amount, suggested ranges for funding 
requests, and specific funding categories under which an applicant may 
choose to apply will be published in the Program's annual Federal 
Register funding guidance.
    Program funding awarded during any given fiscal year will be 
distributed, per section 6403(d) of the Act, in the following manner:
    (1) No less than 40 percent of funds available shall be awarded for 
coral reef conservation projects in the Pacific Ocean within the 
maritime areas and zones subject to the jurisdiction or control of the 
United States;
    (2) No less than 40 percent of funds available shall be awarded for 
coral reef conservation projects in the Atlantic Ocean, Gulf of Mexico 
and the Caribbean Sea within the maritime areas and zones subject to 
the jurisdiction or control of the United States; and
    (3) Remaining funds shall be awarded for projects that address 
emerging priorities or threats, including international priorities or 
threats, identified by the Administrator. When identifying emerging 
threats or priorities, the Administrator may consult with the Coral 
Reef Task Force.

VII. Funding Categories and Mechanisms

    In order to ensure adequate funding for each of the purposes 
envisioned under the Act and provide for a balanced overall Program, 
existing NOAA programs will be used to award funds in the six funding 
categories described below. Each of the six categories references the 
general activity and applicant eligibility requirements associated with 
proposals submitted therein. Specific activity and applicant 
eligibility information and proposal evaluation criteria for each 
category for FY 2002, consistent with Guideline sections IV. Applicant 
Eligibility Requirements, VI. Funding and Funding Distribution, VIII. 
Matching Funds, IX. Application Process, and X. Project Review, are 
found in the FY 2002 funding guidance, published concurrently with 
these Guidelines.
    (1) U.S. state and territorial government coral reef conservation 
activities, as described in Section V(1-10) of the Guidelines (section 
6403(g) of the Act) for the purpose of comprehensively managing coral 
reef ecosystems and associated fisheries within their jurisdictions. 
Eligibility to receive an award is limited to one agency in each state 
or territory with jurisdiction over coral reefs, as designated by the 
respective governors. These proposals will be reviewed and awarded by 
the National Ocean Service (NOS) Office of Ocean and Coastal Resource 
Management (OCRM), pursuant to section 310 of the Coastal Zone 
Management Act, under title, Coastal Zone Management Program, CFDA 
11.419.
    (2) U.S. state and territorial government coral reef ecosystem 
monitoring and/or assessment activities, as described in Section V(8) 
of the Guidelines (section 6403(g)(8) of the Act). Such activities 
include the collection, analysis, and reporting of long-term coral reef 
monitoring data pursuant to scientifically valid methodologies and 
protocols. Eligible applicants are limited to one natural resource 
management authority in each U.S. state or territory, or Freely 
Associated State with jurisdiction over coral reefs, as designated by 
the respective governors or other applicable senior jurisdictional 
officials. Cooperative agreements between these agencies and the NOS 
National Centers for Coastal and Ocean Science (NCCOS) will be 
developed without competition under title, Financial Assistance for 
National Centers of Coastal Ocean Science, CFDA 11.426.

[[Page 19400]]

    (3) Coral reef ecosystem research projects for the purpose of 
developing sound scientific information on the condition of coral reef 
ecosystems or threats to such ecosystems, including research to develop 
monitoring and assessment technologies, as described in section V(4) of 
the Guidelines (section 6403(g)(4) of the Act). Eligible applicants 
include all those described under section 6403(c) of the Act (section 
IV of the Guidelines). These proposals will be reviewed and awarded by 
the NOS National Centers for Coastal and Ocean Science under title, 
Financial Assistance for National Centers of Coastal Ocean Science, 
CFDA 11.426.
    (4) U.S. state, territorial, or other governmental and non-
governmental entities, not eligible under other categories, for the 
purpose of implementing cooperative coral reef conservation, 
protection, restoration, research, or education projects, as described 
in Section V(1-10) of the Guidelines (section 6403(g) of the Act). 
These proposals will be reviewed and awarded by the National Marine 
Fisheries Service (NMFS) Office of Habitat Conservation (OHC) under 
title, Habitat Conservation, CFDA 11.463.
    (5) Projects to develop, improve, or amend Fishery Management Plans 
to conserve, protect and restore coral reef habitats and associated 
fishery populations within the U.S. Exclusive Economic Zone, with the 
overall goal of improving the management of coral reefs and associated 
organisms through the avoidance of fishing impacts, ecosystem 
management or similar approaches and practices as described in Section 
V(3) of the Guidelines (section 6403(g)(3) of the Act). Eligible 
applicants include Regional Fishery Management Councils with 
jurisdiction over coral reefs, as established under the Magnuson-
Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 et 
seq.). These proposals will be reviewed and awarded by the NMFS Office 
of Habitat Conservation under title, Regional Fishery Management 
Councils, CFDA 11.441.
    (6) International coral reef conservation projects for the purpose 
of implementing cooperative coral reef conservation activities as 
described in Section V(1-10) of the Guidelines (section 6403(g) of the 
Act). Eligible applicants include all international governmental and 
non-governmental entities, including those in the Freely Associated 
States of the Pacific. These proposals will be reviewed and awarded by 
the NOS International Programs Office or the NMFS Office of Habitat 
Conservation, as appropriate, under title, Habitat Conservation, CFDA 
11.463.
    The FY 2002 funding guidance establishes the range of funds 
available and specific evaluation criteria for each of these six 
categories. NOAA may add additional funding categories in the annual 
funding guidance based on available funding and/or coral reef 
conservation priorities under the Strategy. Applicants will be required 
to specify in their application the category(s) under which they are 
applying for funding. Selected applications may be funded and awards 
administered by NOAA, through either NMFS or NOS. Generally, one award 
will be made for each proposal accepted for funding.
    NOAA will determine the most appropriate funding mechanisms (grant, 
cooperative agreement, or interagency agreement) for selected 
individual projects, in consultation with the applicant, based on the 
type of recipient and on the degree of direct NOAA involvement with the 
project.
    Proposals from non-Federal applicants that are selected for funding 
will be funded either through a project grant or cooperative agreement. 
Selected Federal proposals will be funded through interagency 
agreements; however, under the Program, such agreements must also 
include a local sponsor of the coral reef conservation project.

VIII. Matching Funds

    As per section 6403(b)(1) of the Act, Federal funds for any coral 
conservation project funded under this Program may not exceed 50 
percent of the total costs of such project. The match may comprise a 
variety of public and private sources and can include in-kind 
contributions and other non-cash support. NOAA strongly encourages 
applicants to leverage as much investment as possible. Federal funds 
may not be considered as matching funds.
    For applicants who can not meet the match requirement, as per 
section 6403(b)(2) of the Act, the Secretary may waive all or part of 
the matching requirement if the Administrator determines that the 
project meets the following two requirements:
    (1) No reasonable means are available through which an applicant 
can meet the matching requirement, and
    (2) The probable benefit of such project outweighs the public 
interest in such matching requirement.
    Applicants must specify in their proposal the source and amount of 
the proposed match and may be asked to provide letters of commitment to 
confirm stated contributions. In the case of a waiver request, the 
applicant must provide a detailed justification explaining the need for 
the waiver, as described in Section IX(6) of these Guidelines.
    Notwithstanding any other provision herein, and in accordance with 
48 U.S.C. 1469a(d), this Program shall waive any requirement for local 
matching funds for any project under $200,000 (including in-kind 
contributions) to the governments of Insular Areas, defined as the 
jurisdictions of the U.S. Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.

IX. Application Process

    NOAA will publish in the Federal Register one annual funding 
guidance soliciting project proposals, pursuant to these Guidelines. 
Applications submitted in response to this guidance will be screened 
for eligibility and conformance with the Program Guidelines.
    To submit a proposal, a complete Federal financial assistance 
awards application package must be filed in accordance with the 
guidelines in this document and instructions in the Department of 
Commerce Pre-Award Notification Requirements for Grants and Cooperative 
Agreements contained the Federal Register notice of October 1, 2001.
    A more detailed description of specific application requirements 
will be published in the annual funding guidance; however, pursuant to 
section 6403(e) of the Act and NOAA, each application must include the 
following elements:
    (1) A cover sheet with the name of the individual or entity 
responsible for conducting the project;
    (2) A description of the qualifications of the individual(s) who 
will conduct the project;
    (3) A succinct statement of the purposes of the project, including 
the specific geographic location where the project will be carried out;
    (4) An estimate of the funds and time required to complete the 
project including: a detailed breakdown by category of cost estimates 
as they relate to specific aspects of the project, with appropriate 
justification for both the Federal and non-Federal shares;
    (5) Evidence of support for the project by appropriate 
representatives of states or other government jurisdictions in which 
the project will be conducted, including obtaining or proceeding to 
obtain all applicable State and/or Federal permits, consultations, and

[[Page 19401]]

consistencies. U.S. state or territorial applicants must also provide 
evidence of coordination with all relevant state or territorial 
agencies, including a list of agencies consulted in developing the 
proposal;
    (6) Information regarding the amount of matching funding available 
to the applicant. In the case of a waiver request, the applicant must 
provide a detailed justification explaining the need for the waiver 
including attempts to obtain sources of matching funds, how the benefit 
of the project outweighs the public interest in providing match, and 
any other extenuating circumstances preventing the availability of 
match;
    (7) A description of how the project meets one or more of the goals 
and objectives stated in Section V of the Guidelines (section 6403(g) 
of the Act); and
    (8) Any other information the Administrator considers to be 
necessary for evaluating the eligibility of the project for funding 
under this title.
    In order to streamline the application and award process, and to 
allow NOAA to fully evaluate all coral reef conservation applications 
in the context of the overall Program, applicants must indicate under 
which category(s) (as described in Section VII of these Guidelines) 
they are seeking funds, and are encouraged to submit only one 
comprehensive application per funding guidance. The Program will give 
preference to projects where requested funding will be used to complete 
proposed coral reef conservation activities within a period of 12 to 18 
months from the time the awards are distributed.

X. Project Review

    As per section 6203(f) of the Act, NOAA will review eligible coral 
reef conservation proposals using an external governmental review and 
merit-based peer review. After such reviews, NOAA will implement an 
internal ranking and selection process. The overall project review and 
selection process will include the following five steps:
    1. NOAA will request and consider written comments on the proposal 
from each Federal agency, state government, or other government 
jurisdiction, including the relevant regional Fishery Management 
Councils established under the Magnuson-Stevens Fishery Conservation 
and Management Act (16 U.S.C. 1801 et seq.), or any National Marine 
Sanctuary, with jurisdiction or management authority over coral reef 
ecosystems in the area where the project is to be conducted. Pursuant 
to this requirement of the Act, NOAA will apply the following standard 
in requesting comments:
    (a) Proposals for projects in state or territorial waters, 
including Federal marine protected areas in such waters (e.g., National 
Marine Sanctuaries), will be submitted to that state or territorial 
government's designated U.S. Coral Reef Task Force point of contact for 
comment;
    (b) Proposals for projects in Federal waters will be submitted to 
the relevant Fishery Management Council for comment;
    (c) Proposals for projects which require Federal permits will be 
submitted to the Federal agency which issued the permit for comment;
    (d) Proposals for projects in Federal marine protected areas 
managed by Federal agencies (e.g., National Wildlife Refuges, National 
Parks, National Marine Sanctuaries, etc.) will be submitted to the 
respective Federal management authority for comment; and
    (e) NOAA will seek comments from other government entities, 
authorities, and/or jurisdictions, including international entities for 
projects proposed outside of U.S. waters, as necessary based on the 
nature and scope of the proposed project.
    Specifically, agencies will be requested to comment on: the extent 
to which the project is consistent with its coral reef conservation 
objectives, priorities and projects; whether the project has been 
coordinated with existing or planned projects; suggestions for 
improving project coordination and/or technical approach; the need for 
the applicant to obtain a permit or other authorization from the agency 
in order to conduct the project, and the status of that process; and, 
appropriate staff points of contact. Each entity will be provided 21 
days to review and comment on subject proposals. Comments submitted 
will be part of the public record.
    2. Each NOAA Program Office will provide for a merit-based peer 
review and standardized documentation of that review for proposals 
considered appropriate for funding under their respective category(s). 
Each proposal will be reviewed by a minimum of three individuals with 
knowledge of the subject of the proposal. The identities of the peer 
reviewers will be kept anonymous, to the extent permitted by law. 
Specific evaluation criteria for projects submitted under each funding 
category will be published in each annual Federal Register funding 
guidance.
    3. Each NOAA Program Office will subsequently implement an internal 
review process to rank each proposal that is appropriate for funding 
under their program based upon consideration of: comments and 
recommendations from the reviews under paragraphs (1) and (2), and 
their evaluation of each proposal using the following five equally 
weighted criteria:
    (a) Direct Benefit to Coral Reef Resources and Ecosystems: NOAA 
will evaluate proposals based on the potential of the project to meet 
goals and objectives as stated in this document, per section 6403(g) of 
the Act.
    (b) Technical Merit and Adequacy of Implementation Plan: Proposals 
will be evaluated on the technical feasibility of the project and the 
qualifications of project leaders and/or partners based on demonstrated 
abilities to:
    (i) Deliver the conservation objective stated in the proposal;
    (ii) Provide educational benefits, where appropriate;
    (iii) Incorporate assessment of project success in terms of meeting 
the proposed objectives;
    (iv) Demonstrate that the conservation activity will be sustainable 
and long-lasting; and,
    (v) Provide assurance that implementation of the project will meet 
all state environmental laws and Federal consistency requirements by 
obtaining or proceeding to obtain applicable permits and consultations.
    (c) Past Performance: Proposals will be evaluated on the previous 
accomplishments of the applicants in achieving coral reef conservation 
objectives similar to those outlined in Section V. Eligible Coral Reef 
Conservation Activities of these Guidelines. Applicants submitting 
their first coral reef conservation project should document past 
experience in related activities.
    (d) Consistency with the National Coral Reef Action Strategy and 
the National Action Plan to Conserve Coral Reefs: Proposals will be 
evaluated on how well they meet the specific programmatic goals and 
objectives of the National Coral Reef Action Strategy, developed 
pursuant to section 6402 of the Act, and the National Action Plan to 
Conserve Coral Reefs (U.S. Coral Reef Task Force, 2000), http://www.coralreef.noaa.gov). Applicants are strongly encouraged to review 
both documents and identify specific conservation objectives that their 
project proposal will address.
    (e) Cost-effectiveness and Budget Justification: Proposals will be 
evaluated on their ability to demonstrate

[[Page 19402]]

that significant benefit will be generated for the most reasonable 
cost. Projects will also be reviewed in terms of their need for funding 
and the ability of NOAA funds to act as a catalyst to implement 
projects and precipitate partnerships and other sources of funding to 
achieve conservation objectives. Preference will be given to projects 
that will be completed within a period of 12 to 18 months from the time 
the awards are distributed.
    4. A NOAA review panel made up of representatives from each NOAA 
Program Office will review the project selections and ensure that all 
requirements of the Act are met, particularly those regarding the 
geographic funding distribution and consistency with the Strategy. This 
group will present recommendations to the NOAA Administrator, or his 
designee, for final approval. NOAA reserves the right to consult with 
applicants, prior to making an award, to determine the exact amount of 
funds to be awarded, as well as the most appropriate funding category 
and mechanism under which to consider the project for funding.
    5. NOAA will provide written notification of a proposal's approval 
or disapproval to each applicant within 6 months of submitting a coral 
reef conservation proposal. Similarly, NOAA will also provide written 
notification of a project's approval to each State or other government 
jurisdiction that provided comments and/or reviews. Unsuccessful 
proposals will be held in the Program Office until the cooperative 
agreement or grant is awarded to the selected recipients and then will 
be destroyed.
Definitions
    In this Program:
    (1) Administrator means the Administrator of the National Oceanic 
and Atmospheric Administration.
    (2) Conservation means the use of methods and procedures necessary 
to preserve or sustain corals and associated species as diverse, 
viable, and self-perpetuating coral reef ecosystems, including all 
activities associated with resource management, such as assessment, 
conservation, protection, restoration, sustainable use, and management 
of habitat; mapping; habitat monitoring; assistance in the development 
of management strategies for marine protected areas and marine 
resources consistent with the National Marine Sanctuaries Act (16 
U.S.C. 1431 et seq.) and the Magnuson-Stevens Fishery Conservation and 
Management Act (16 U.S.C. 1801 et seq.); law enforcement; conflict 
resolution initiatives; community outreach and education; and that 
promote safe and ecologically sound navigation.
    (3) Cooperative Agreement means a legal instrument reflecting a 
relationship between the Department of Commerce (DoC) and a recipient 
whenever: (1) The principal purpose of the relationship is to transfer 
money, property, services or anything of value to accomplish a public 
purpose of support or stimulation authorized by Federal statute, and 
(2) substantial involvement (e.g., collaboration, participation, or 
intervention by DoC in the management of the project) is anticipated 
between DoC and the recipient during performance of the contemplated 
activity.
    (4) Coral means species of the phylum Cnidaria, including--
    (a) all species of the orders Antipatharia (black corals), 
Scleractinia (stony corals), Gorgonacea (horny corals), Stolonifera 
(organpipe corals and others), Alcyanacea (soft corals), and 
Coenothecalia (blue coral), of the class Anthozoa; and,
    (b) all species of the order Hydrocorallina (fire corals and 
hydrocorals) of the class Hydrozoa.
    (5) Coral Reef means any reefs or shoals composed primarily of 
corals.
    (6) Coral Reef Ecosystem means coral and other species of reef 
organisms (including reef plants) associated with coral reefs, and the 
non-living environmental factors that directly affect coral reefs, that 
together function as an ecological unit in nature.
    (7) Coral Products means any living or dead specimens, parts, or 
derivatives, or any product containing specimens, parts, or 
derivatives, of any species referred to in paragraph (3).
    (8) Grant means a legal instrument reflecting a relationship 
between DoC and a recipient whenever: (1) The principal purpose of the 
relationship is to transfer money, property, services, or anything of 
value in order to accomplish a public purpose of support or stimulation 
authorized by Federal statute and (2) no substantial involvement is 
anticipated between DoC and the recipient during the performance of the 
contemplated activity.
    (9) Interagency Agreement, for the purposes of these Guidelines, 
means a written document containing specific provisions of governing 
authorities, responsibilities, and funding, entered into between NOAA 
and another Federal agency where NOAA is funding the other Federal 
agency, pursuant to the Act.
    (10) Secretary means the Secretary of Commerce.
    (11) State means any State of the United States that contains a 
coral reef ecosystem within its seaward boundaries, American Samoa, 
Guam, the Northern Mariana Islands, Puerto Rico, and the Virgin 
Islands, and any other territory or possession of the United States, or 
separate sovereign in free association with the United States, that 
contains a coral reef ecosystem within its seaward boundaries.

Classifications

    This is a new Program and will be added to the Catalog of Federal 
Domestic Assistance under the Coastal Zone Management Act (11.419), 
Financial Assistance for National Centers for Coastal Ocean Science 
(11.426), and Habitat Conservation (11.463). The Program uses the 
Federal financial assistance award package requirements per 15 CFR 
parts 14 and 24.
    The program will determine National Environmental Policy Act (NEPA) 
compliance on a project by project basis.
    This action has been determined to be not significant for purposes 
of Executive Order 12866.
    Applications under this program are not subject to Executive Order 
12372, ``Intergovernmental Review of Federal Programs.''
    The use of the Federal financial assistance award package referred 
to in this notice involves collection-of-information requirements 
subject to the Paperwork Reduction Act. The use of Standard Forms 424, 
424A, 424B, and SF-LLL have been approved by OMB under the respective 
control numbers 0348-0043, 0348-0044, 0348-0040, and 0348-0046.
    The Guidelines also contain new collection-of-information 
requirements subject the Paperwork Reduction Act and which have been 
approved by OMB under control number 0648-0448. Public reporting burden 
for these collections of information is estimated to average one hour 
per request for a matching funds waiver (section IX(6) of these 
Guidelines) and one hour per comment on proposals (section X(1) of 
these Guidelines). These estimates include the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding this burden 
estimate, or any other aspect of these data collections, including 
suggestions for reducing the burden, to the NOAA Office of Response and 
Restoration, N/ORR, NOAA National Ocean Service, 1305 East-West 
Highway, Silver Spring, MD 20910 and to Office of Management

[[Page 19403]]

and Budget (OMB) at the Office of Information and Regulatory Affairs, 
OMB, Washington, DC 20503, Attention: NOAA Desk Officer.
    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with, a collection of information subject to the Paperwork 
Reduction Act, unless that collection displays a currently valid OMB 
control number.

    Dated: April 15, 2002.
Alan Neuschatz,
Acting Assistant Administrator for Ocean Services and Coastal Zone 
Management.
[FR Doc. 02-9682 Filed 4-18-02; 8:45 am]
BILLING CODE 3510-JE-P; 3510-22-P