[Federal Register Volume 67, Number 193 (Friday, October 4, 2002)]
[Rules and Regulations]
[Pages 62189-62190]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-25161]


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COUNCIL ON ENVIRONMENTAL QUALITY

40 CFR Part 1518

RIN 0331-ZA00


Office of Environmental Quality Management Fund

AGENCY: Council on Environmental Quality, Executive Office of the 
President.

ACTION: Final rule.

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SUMMARY: In 1984, the Environmental Quality Improvement Act was amended 
to establish an Office of Environmental Quality Management Fund (OEQ 
Management Fund) for the purpose of financing interagency policy 
development studies and projects. In accordance with that statute, the 
Director of the Office of Environmental Quality promulgates the 
following policies and procedures for operation of the OEQ Management 
Fund.

DATES: Effective September 25, 2002.

FOR FURTHER INFORMATION CONTACT: Dinah Bear, General Counsel, Council 
on Environmental Quality, 722 Jackson Place, NW., Washington, DC 20503. 
Telephone: (202) 395-7421.

SUPPLEMENTARY INFORMATION: The Environmental Quality Improvement Act, 
as amended (Pub. L. 91-224, Title II, April 3, 1970; Pub. L. 97-258, 
September 13, 1982; and Pub. L. 98-581, October 30, 1984) establishes 
an Office of Environmental Quality Management Fund (OEQ Management 
Fund) to receive advance payments from other agencies or accounts that 
may be used solely to finance (1) study contracts that are jointly 
sponsored by the Office of Environmental Quality and one or more 
federal agencies and (2) federal interagency environmental projects 
(including task forces) in which the Office participates. 42 U.S.C. 
4375. The Director of the Office of Environmental Quality (OEQ) is 
required to promulgate regulations setting forth policies and 
procedures for operation of the OEQ Management Fund. 42 U.S.C. 4375(c). 
The OEQ Director adopted policies and procedures for operation of the 
OEQ Management Fund in January of 1985. These policies and procedures 
have been revised to provide for the development and implementation of 
interagency agreements to assist the OEQ's oversight and administration 
of the Management Fund. In accordance with the Environmental Quality 
Improvement Act, these policies and procedures are hereby promulgated 
as regulations. Because these regulations are related solely to agency 
management, their promulgation is not subject to notice and comment in 
accordance with 5 U.S.C. 553(a)(2).
    The OEQ considers this rule to be a procedural rule which is exempt 
from notice-and-comment under 5 U.S.C. 533(b)(3)(A).
    This rule is not a significant rule and is not subject to review by 
the Office of Management and Budget under Executive Order 12866.
    (1) This rule will not have an effect of $100 million or more on 
the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency.
    (3) This rule does not alter the budgetary effects or entitlements, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients.
    (4) This rule does not raise novel legal or policy issues.

List of Subjects in 40 CFR Part 1518

    Accounting, Administrative practice and procedure, Environmental 
impact statements and Environmental Quality Office.

    For the reasons stated in the preamble, add part 1518 of title 40 
of the Code of Federal Regulations to read as follows:

PART 1518--OFFICE OF ENVIRONMENTAL QUALITY MANAGEMENT FUND

Sec.
1518.1 Purpose.
1518.2 Definitions.
1518.3 Policy.
1518.4 Procedures.

    Authority: 42 U.S.C. 4375(c).


Sec.  1518.1  Purpose.

    The purpose of the OEQ Management Fund is to finance:
    (a) Study contracts that are jointly sponsored by OEQ and one or 
more other Federal agency; and
    (b) Federal interagency environmental projects (including task 
forces) in which OEQ participates. See 42 U.S.C. 4375(a).


Sec.  1518.2  Definitions.

    (a) Advance Payment: Amount of money prepaid pursuant to statutory 
authorization in contemplation of the later receipt of goods, services, 
or other assets.
    (b) Director: The Director of the Office of Environmental Quality. 
The Environmental Quality Improvement Act specifies that the Chairman 
of the Council on Environmental quality shall serve as the Director of 
OEQ. 42 U.S.C. 4372(a).
    (c) OEQ Management Fund (``Fund''): The Management Fund for the 
Office of Environmental Quality.
    (d) Interagency Agreement: A document jointly executed by OEQ and 
another agency or agencies, which sets forth the details of a joint 
study or project and the funding arrangements for such a study or 
project.
    (e) Project Officer: The Council on Environmental Quality staff 
member charged with day-to-day supervision of an OEQ Management Fund 
study or project.

[[Page 62190]]

    (f) Source: The agency or account from which funds are contributed 
into the Fund.


Sec.  1518.3  Policy

    (a) All studies and projects financed through the OEQ Management 
Fund shall be consistent with the purposes and goals of the National 
Environmental Policy Act and/or the Environmental Quality Improvement 
Act.
    (b) Agency funds accepted by the Director for transfer into the OEQ 
Management Fund shall specify the purposes permissible under the source 
appropriation and any restrictions relating thereto.
    (c) The Director may authorize expenditures to support OEQ 
Management Fund studies and projects, including:
    (1) Leasing office space and providing utilities;
    (2) Leasing or purchasing equipment;
    (3) Funding travel;
    (4) Contracting for goods and services; and
    (5) Funding consultants and personnel costs for task force 
employees.
    (d) In carrying out the purposes of the OEQ Management Fund, the 
Director is authorized to contract with public or private agencies, 
institutions, organizations and individuals, by negotiation, without 
regard to 31 U.S.C. 3324(a) and (b) 41 U.S.C. 5, and 42 U.S.C. 4372(e). 
All such contracting activities shall be accomplished through the 
Office of Administration, Executive Office of the President. The 
Director may, by interagency agreement with another federal agency or 
agencies and with the concurrence of the Office of Administration's 
Financial Management Division, obtain specific administrative services 
(including contracting activities) in support of OEQ Management Fund 
studies or projects.
    (e) Task forces and projects funded by the OEQ Management Fund are 
permitted to make expenditures for all project and study activities, 
except for compensation or benefits for full-time OEQ employees or to 
reimburse OEQ or CEQ for ordinarily appropriated expenses, such as 
salaries, benefits, rent, telephone and supplies.


Sec.  1518.4  Procedures.

    (a) Charters: (1) A charter must be prepared for each project or 
study to be financed and supported by the OEQ Management Fund.
    (2) The charter must clearly state the relation of the study or 
project to the goals and purposes of the Office of Environmental 
Quality and the National Environmental Policy Act; describe the study 
or project; identify the participating agency or agencies; provide the 
names, titles and phone numbers of the Project Officer and 
administrative contact.
    (3) Charters may be amended by preparing a formal amendment, which 
sets forth the new language to be incorporated in the existing charter.
    (4) The Director shall approve all Management Fund charters and 
amendments in writing.
    (5) Copies of each charter and charter amendment approved by the 
Director shall be provided to the Contracts Branch and the Financial 
Management Division of the Office of Administration, Executive Office 
of the President.
    (b) Finances and accounting: (1) Annual budget estimates shall be 
prepared for the OEQ Management Fund.
    (2) An operating budget for each project or study shall be 
submitted to the Financial Management Division of the Office of 
Administration, Executive Office of the President.
    (3) All contributions from other agencies to the OEQ Management 
Fund for a joint study or project shall be accomplished by interagency 
agreements, which shall provide for full payment of funds on an advance 
basis. 42 U.S.C. 4375(a).
    (4) All contributions by the Office of Environmental Quality or the 
Council on Environmental Quality to the OEQ Management Fund for a joint 
study or project shall be accomplished by a letter of transmittal which 
specifies the particular study or project to be funded. A copy of this 
transmittal letter shall be provided to the Financial Management 
Division of the Office of Administration, Executive Office of the 
President.
    (5) The OEQ Management Fund is a no-year appropriations account, 
which can accept one-year or multiple-year funds, and is available 
until the objectives for which the authority was made available are 
attained. Funds transferred into the Management Fund are individually 
accounted for and expire under the terms of their appropriation.
    (6) Any agency, including the Office of Environmental Quality and 
the Council on Environmental Quality, may provide technical expertise, 
physical resources, facilities, equipment, or other assets; perform 
support or administrative services; or assign detailees or agency 
representatives to an OEQ Management Fund project or study. These 
contributions may be in addition to funding.
    (7) Subaccounts shall be established within OEQ Management Fund for 
each project or study. All expenditures for a particular project or 
study must be matched with the source contribution and approved by the 
Director or the Project Officer.
    (8) The Director may transfer Management Fund resources for any 
study or project to other federal accounts or other OEQ subaccounts 
provided that the transfer:
    (i) Is approved in writing by the source agency that provided the 
portion of the funds being transferred;
    (ii) Promotes the statutory mission of OEQ; and
    (iii) Is justified by the Director as being in the best interests 
of the government.
    (9) Financial transactions shall be classified under each 
Management Funds subaccount in sufficient detail to satisfy management 
planning, control requirements and financial audit requirements.
    (10) All fund expenditures must comport with the purposes of the 
Management Fund and follow CEQ approval procedures. Any fund 
expenditures pursuant to interagency agreement for the provision of 
administrative services shall comport with the CEQ approval procedures 
specified in the interagency agreement.

    Dated: September 30, 2002.
James L. Connaughton,
Director, Office of Environmental Quality, and Chairman, Council on 
Environmental Quality.
[FR Doc. 02-25161 Filed 10-3-02; 8:45 am]
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