[Federal Register Volume 68, Number 176 (Thursday, September 11, 2003)]
[Notices]
[Pages 53540-53545]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-23135]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Funding Availability and Invitation To Apply for 
Agriculture Innovation Center Demonstration Program Grants

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Business-Cooperative Service (RBS or Agency) 
provides notice of the availability of $10,000,000 in fiscal year (FY) 
2003 funds (NOFA) to fund the establishment of agriculture innovation 
centers that are to provide assistance to agriculture producers in the 
development of value-added businesses. This NOFA lists the information 
needed to submit an application for these grants.

DATES: The deadline for receipt of an application is 4 p.m. eastern 
time on September 16, 2003.

ADDRESSES: Hand-delivered applications or applications submitted using 
an express mail or overnight courier service should be sent to: Marc 
Warman, USDA Rural Business-Cooperative Service, 1400 Independence 
Ave., SW., Room 4016, Washington, DC 20250; Telephone: (202) 720-8460. 
Applications sent via the U.S. Postal Service must be sent to: Marc 
Warman, USDA Rural Business-Cooperative Service, STOP 3252, 1400 
Independence Ave., SW., Washington, DC 20250-3252. Applications sent 
via email attachment must be sent to: [email protected]. Please note 
that due to recent security concerns, packages sent to the Agency have 
suffered significant delays. Entities wishing to apply for assistance 
should contact Marc Warman to receive further information and copies of 
the application package.

FOR FURTHER INFORMATION CONTACT: Jim Haskell, Acting Deputy 
Administrator, Rural Business-Cooperative Service, USDA, Stop 3250, 
Room 4016, 1400 Independence Ave., SW., Washington, DC 20250-3250, 
telephone: (202) 720-8460, or email: [email protected].

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    The Agency published a notice requesting comments on the collection 
requirements contained in this NOFA concurrent with the publication of 
the related proposed rule on June 13, 2003 (68 FR 35321). No comments 
were received on the paperwork burden. OMB granted a standard approval 
of the paperwork burden under control number 0570-0045 for this 
program.

Background

    Section 6402 of the Farm Security and Rural Investment Act of 2002 
(Pub. L. 107-171) (2002 Farm Bill) authorizes the Secretary of 
Agriculture to establish up to 10 agriculture innovation demonstration 
centers (Agriculture Innovation Centers or AICs) in Fiscal Year 2003. 
The purpose of these centers is to foster the ability of agricultural 
producers to reap the benefits of producing and marketing value-added 
products.
    Relationship between this NOFA and the earlier published Advance 
RFP Recognizing that the time requirements for publishing the final 
rule were very tight, the Agency published a notice on August 1, 2003 
(Advance RFP) outlining all of the requirements for applying for FY 
2003 grants that were then known. While the Advance RFP anticipated the 
publication of a final rule implementing the AIC grant program before 
the end of

[[Page 53541]]

FY 2003, we now recognize that it is not likely that a final rule will 
be published in time to obligate FY 2003 funds under terms and 
conditions established in a final rule. Accordingly, we are publishing 
this NOFA now in order to be able to implement this program before the 
end of FY 2003.
    The Advance RFP advised the public that in order to fund AIC grants 
for FY 2003 there would be an extremely short deadline for the 
submission of applications. In the Advance RFP interested parties were 
offered the opportunity of receiving notice of the timing for 
submission of applications via electronic mail. All parties who 
requested such electronic notification are receiving an electronic 
version of this notice.
    The policies and procedures incorporated in this NOFA are the same 
as those outlined in the Advance RFP published on August 1, 2003; the 
only differences that pertain to this NOFA are that the deadline is 
firmly established for the receipt of applications and the paperwork 
burden associated with this program has been approved by OMB.
    In the event the RBS is not able to timely obligate FY 2003 funds, 
applications received will be held for consideration for FY 2004 
funding if and when funding is available and after a Final Rule is 
published. Applicants will then be allowed to revise their applications 
if the requirements of the Final Rule are different from the policies 
and procedures outlined for FY 2003 in this NOFA.

Restrictions on Awards

    1. RBS will not award more than ten grants for FY 2003.
    2. RBS will not make a grant to more than one entity in any one 
State.
    3. A grant award may not exceed the lesser of $1,000,000 or twice 
the dollar amount (in cash or in kind) of the resources committed to 
the Center's operations apart from the program grant funds.

Application

    Applicants must file an original and one copy of the required forms 
and a proposal.
    (1) Required forms. The following forms must be completed, signed 
and submitted as part of the application package.
    (a) ``Application for Federal Assistance.''
    (b) ``Budget Information'Non-Construction Programs.''
    (c) ``AssurancesNon-Construction Programs.''
    (2) Proposal. Each proposal must contain the following elements.
    (a) Title Page.
    (b) Table of Contents.
    (c) Executive Summary. A summary of the proposal should briefly 
describe the project including goals, tasks to be completed and other 
relevant information that provides a general overview of the project 
and the amount requested.
    (d) Eligibility. A detailed discussion describing how the applicant 
meets the eligibility requirements.
    (e) Proposal Narrative. The narrative portion of the proposal must 
include, but is not limited to, the following:
    (i) Project Title. The title of the proposed project must be brief, 
not to exceed 75 characters, yet describe the essentials of the 
project.
    (ii) Information Sheet. A separate one page information sheet 
listing each of the evaluation criteria followed by the page numbers of 
all relevant material and documentation contained in the proposal that 
address or support the criteria.
    (iii) Goals of the Project. The first part of this section should 
list each Provider Service to be offered by the Center. The second part 
of this section should list one or more specific goals relating to 
increasing and improving the ability of identified local agricultural 
producers to develop a market or process for value-added agricultural 
commodities or products.
    (iv) Work Plan. Actions that must be taken in order for the 
Provider Services to be available from the Center. Each action listed 
should include a target date by which it will be completed. General 
start up tasks should be listed, followed by specific tasks listed for 
each Provider Service to be offered, as well as tasks associated with 
the start of operations. The tasks associated with the start of 
operations should include a focused marketing and delivery plan 
directed to the local agricultural producers that were identified in 
paragraph (2)(e)(iii) above. The actions to be taken should include 
steps for identifying customers, acquiring personnel and contracting 
for services to the Center, including arrangements for strategic 
alliances.
    (v) Performance Evaluation Criteria. Performance criteria suggested 
by the applicant for incorporation in the grant award in the event the 
proposal receives grant funding under this subpart. These suggested 
criteria are not binding on USDA.
    (vi) Agricultural Community Support. Evidence of support from the 
local agricultural community should be included in this section. 
Letters in support should reflect that the writer is familiar with the 
provisions of the Plan for the Center, including the stated goals. 
Evidence of support can take the form of making employees available to 
the Center, service as a board member and other in-kind contributions.
    (vii) Strategic Coordination and Alliances. Describe arrangements 
in place or planned with end users (processing and distribution 
companies and regional grocers) as well as arrangements with entities 
having technical research capabilities, broad support from the 
agricultural community in the state or region, significant coordination 
with end users (processing and distribution companies and regional 
grocers), strategic alliances with entities having technical research 
capabilities and a focused delivery plan for reaching out to the 
producer community. (viii) Capacity. Evidence of the ability of the 
grantee(s) to successfully establish and operate a Center. A 
description of the grantee's track record in providing services similar 
to those listed for Producer Services or evidence that the entity has 
the capability to provide Producer Services. Resumes of key personnel 
should be included in this section. Past successes should be described 
in detail, with a focus on lessons learned, best practices, familiarity 
with producer problems in value-added ventures, and how these barriers 
are best overcome should be elaborated on in this section. For every 
challenge identified, the applicant should demonstrate how they are 
addressed in the Work Plan (see paragraph (2)(e)(iv) above). All 
successes should include a monetary estimate of the value-added 
achieved.
    (ix) Legal structure. Provide a description of the legal 
relationship between the grantee(s) and the proposed Center. If the 
Center is to be an independent corporate entity, provide copies of the 
corporate charter, bylaws and other relevant organizational documents. 
Describe how funds for the Center will be handled and include copies of 
the agreements documenting the legal relationships between the Center 
and related parties. If the Center is not to be an independent legal 
entity, provide copies of the corporate governance documents that 
describe how members of the Board of Directors for the Center are to be 
determined.
    (x) Evaluation Criteria. Each of the evaluation criteria referenced 
below must be specifically and individually addressed in narrative 
form. Supporting documentation, as applicable, should be included in 
this section, or a cross reference to other sections in the

[[Page 53542]]

application should be provided, as applicable.
    (xi) Verification of Adequate Resources. Present a budget to 
support the work plan showing sources and uses of funds (1) during the 
start up period prior to the start of operations and (2) for the first 
year of full operations. Present a copy of a bank statement evidencing 
sources of funds equal to amounts required in excess of the grant 
requested, or, in the alternative, a copy of confirmed funding 
commitments from credible sources such that USDA is satisfied that the 
Center has adequate resources to complete a full year of operation. 
Include information sufficient to facilitate verification by USDA of 
all representations.
    (xii) Certification of Adequate Resources Applicants must certify 
that non-Federal funds identified in the budget pursuant to paragraph 
(2)(e)(xi) of this section will be available and funded commensurately 
with grant funds.

Evaluation Criteria and Weights

    Each of the following seven evaluation criteria may be awarded up 
to five (5) points.
    (1) Ability to Deliver. The application will be evaluated as to 
whether it evidences unique abilities to deliver Producer Services so 
as to create sustainable value-added ventures. Abilities that are 
transferable to a wide range of agricultural value-added commodities 
are preferred over highly specialized skills. Strong skills must be 
accompanied by a credible and thoughtful plan.
    (2) Successful Track Record. The applicant's track record in 
achieving value-added successes.
    (3) Work Plan/Budget. The work plan will be reviewed for detailed 
actions and an accompanying timetable for implementing the proposal. 
Clear, logical, realistic and efficient plans will result in a higher 
score. Budgets will be reviewed for completeness and the strength of 
non Federal funding commitments.
    (4) Qualifications of personnel. Proposals will be reviewed for 
whether the key personnel who are to be responsible for performing the 
proposed tasks have the necessary qualifications and whether they have 
a track record of performing activities similar to those being 
proposed. If a consultant or others are to be hired, points may be 
awarded for consultants only if the proposal includes evidence of their 
availability and commitment as well. Proposals using in-house employees 
with strong track records in innovative activities will receive higher 
points relative to proposals that out-source expertise.
    (5) Local support. Proposed Centers must show local support and 
coordination with other developmental organizations in the proposed 
service area and with state and local institutions. Support 
documentation should include recognition of rural values that balance 
employment opportunities with environmental stewardship and other rural 
amenities. Proposed Centers that show strong support from potential 
beneficiaries and coordination with other developmental organizations 
will receive more points than those not evidencing such support.
    (6) Future support. Applicants that can demonstrate financial 
independence in future years will receive more points for this 
criterion. Points will be awarded only where future funding sources are 
documented by letters of commitment.
    (7) Performance Criteria. Criteria suggested by the applicant in 
the proposal narrative that are ambitious, relevant and quantifiable 
and reflect serious consideration and seriousness of purpose will score 
more points than superficial performance criteria that reflect little 
or no challenge or that do not incorporate variables that reflect 
value-added results.
    In the event of a tied score between two or more applications, the 
scores for the first individual criterion will be compared, and the 
highest score for that individual criterion will break the tie. If the 
scores for the first criterion are tied, the scores for the second 
criterion will be compared, and so on.

Form of Submission

    Applicants are encouraged, but not required, to submit applications 
and reports in electronic form. A complete, original application may be 
electronically sent as an e-mail attachment to [email protected]. If 
applications are submitted electronically, a signature page must be 
submitted via facsimile to the attention of Marc Warman at (202) 720-
4641 or in hard copy to Marc Warman at the address provided at the 
beginning of this Notice. Alternatively, an original application 
package plus one paper copy may be submitted to the address provided at 
the beginning of this Notice.

Evaluation Screening

    The Agency will conduct an initial screening of all proposals to 
determine whether the applicant is eligible and whether the application 
is complete and sufficiently responsive to the requirements set forth 
in this Notice to allow for an informed review. Failure to address any 
of the required evaluation criteria will disqualify the proposal. 
Submissions which do not pass the initial screening may be returned to 
the Applicant. If the submission deadline has not expired and time 
permits, returned applications may be revised and re-submitted.

Evaluation Process

    (1) Applications will be evaluated by agricultural economists or 
other technical experts appointed by the Agency.
    (2) After all proposals have been evaluated and scored, Agency 
officials will present to the Administrator a list of all applications 
in rank order, together with funding level recommendations.
    (3) The Administrator has not elected to reserve the right to award 
additional points for this round of competition; the applications will 
be funded in rank order until all available funds have been obligated.

Related Policies and Procedures Applicable to AIC Grants

Definitions
    Agency--Rural Business-Cooperative Service (RBS), an agency of the 
United States Department of Agriculture (USDA), or a successor agency.
    Agriculture Producer Group--An organization that represents 
Independent Producers, whose mission includes working on behalf of 
Independent Producers and the majority of whose membership and board of 
directors is comprised of Independent Producers.
    Agricultural Product--Plant and animal products and their by-
products to include forestry products, fish and seafood products.
    Board of Directors--The group of individuals that govern the 
Center.
    Center--The Agriculture Innovation Center to be established and 
operated by the grantees. It may or may not be an independent legal 
entity, but it must be independently governed in accordance with the 
requirements of this subpart.
    Cooperative--A user-owned and controlled business from which 
benefits are derived and distributed equitably on the basis of use.
    Cooperative Services--The office within RBS, and its successor 
organization, that administers programs authorized by the Cooperative 
Marketing Act of 1926 (7 U.S.C. 451 et seq.) and such other programs so 
identified in USDA regulations.
    Economic development--The economic growth of an area as evidenced 
by increase in total income, employment opportunities, decreased

[[Page 53543]]

out-migration of population, value of production, increased 
diversification of industry, higher labor force participation rates, 
increased duration of employment, higher wage levels, or gains in other 
measurements of economic activity, such as land values.
    Fixed equipment--Tangible personal property used in trade or 
business that would ordinarily be subject to depreciation under the 
Internal Revenue Code, including processing equipment, but not 
including property for equipping and furnishing offices such as 
computers, office equipment, desks or file cabinets.
    Independent Producers--Agricultural producers, to include 
individuals, for profit and not for profit corporations, LLCs, 
partnerships or LLPs, solely owned or controlled by producers who do 
not produce the agricultural product under contract or joint ownership 
with any other organization. An independent producer can also be a 
steering committee composed of independent agricultural producers in 
the process of organizing an association to operate a value-added 
venture that will be owned and controlled by the independent producers 
supplying agricultural product to the market.
    National Office--USDA RBS headquarters in Washington, D.C.
    Nonprofit institution--Any organization or institution, including 
an accredited institution of higher education, no part of the net 
earnings of which may inure, to the benefit of any private shareholder 
or individual.
    Producer Services--are those services to be provided by the Centers 
to agricultural producers. Producer services consist of the following 
types of services:
    (1) Technical assistance, consisting of engineering services, 
applied research, scale production, and similar services, to enable the 
agricultural producers to establish businesses to produce value-added 
agricultural commodities or products;
    (2) Assistance in marketing, market development and business 
planning, including advisory services with respect to leveraging 
capital assets; and
    (3) Organizational, outreach and development assistance to increase 
the viability, growth and sustainability of businesses that produce 
value-added agricultural commodities or products.
    Product segregation--Physical separation of a product or commodity 
from similar products. Physical separation requires a barrier to 
prevent mixing with the similar product.
    Public body--Any state, county, city, township, incorporated town 
or village, borough, authority, district, economic development 
authority, or Indian tribe on federal or state reservations or other 
federally recognized Indian tribe in rural areas.
    Qualified Board of Directors--A Board of Directors that includes 
representatives from each of the following groups: (1) The two general 
agricultural organizations with the greatest number of members in the 
State in which the Center is located, (2) the State department of 
agriculture, or equivalent, of the State in which the Center is located 
and (3) entities representing the four highest grossing commodities 
produced in the State in which the Center is located, as determined on 
the basis of annual gross cash sales.
    Rural and rural area--includes all the territory of a state that is 
not within the outer boundary of any city or town having a population 
of 50,000 or more and the urbanized area contiguous and adjacent to 
such city or town, as defined by the U.S. Bureau of the Census using 
the latest decennial census of the United States.
    Rural Development--A mission area within the USDA consisting of the 
Office of Under Secretary for Rural Development, Office of Community 
Development, Rural Business-Cooperative Service, Rural Housing Service 
and Rural Utilities Service and their successors.
    State--includes each of the several States, the Commonwealth of 
Puerto Rico, the Virgin Islands of the United States, Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, and, as may be 
determined by the Secretary to be feasible, appropriate and lawful, the 
Freely Associated States and the Federated States of Micronesia.
    State Office--USDA Rural Development offices located in each state.
    Value-Added--The incremental value that is realized by the producer 
from an agricultural commodity or product as the result of (1) a change 
in its physical state, (2) differentiated production or marketing, as 
demonstrated in a business plan, or (3) Product segregation. Also, the 
economic benefit realized from the production of farm or ranch-based 
renewable energy. Incremental value may be realized by the producer as 
a result of either an increase in value to buyers or the expansion of 
the overall market for the product. Examples include milling wheat into 
flour, slaughtering livestock or poultry, making strawberries into jam, 
the marketing of organic products, an identity-preserved marketing 
system, and collecting and converting methane from animal waste to 
generate energy. Identity-preserved marketing systems include labeling 
that identifies how the product was produced and by whom.

Eligibility for Grant Assistance

    Non-profit and for-profit corporations, institutions of higher 
learning and other entities, including a consortium where a lead entity 
has been designated and agrees to act as funding agent, that meet the 
following requirements are eligible for grant assistance:
    (1) The entity--
    (a) has provided services similar to those listed for Producer 
Services; or
    (b) demonstrates the capability of providing Producer Services;
    (2) The application includes a plan that meets the requirements of 
paragraph (2)(e)(iv) in the application requirements above, that also 
outlines--
    (a) the support for the entity in the agricultural community;
    (b) the technical and other expertise of the entity; and
    (c) the goals of the entity for increasing and improving the 
ability of local agricultural producers to develop markets and 
processes for value-added agricultural commodities or products;
    (3) The entity demonstrates that adequate resources (in cash or in 
kind) are available, or have been committed to be made available to the 
entity, to increase and improve the ability of local agricultural 
producers to develop markets and processes for value-added agricultural 
commodities or products;
    (4) The proposed Center has a Qualified Board of Directors; and
    (5) There is no recorded outstanding judgment obtained against the 
applicant by the United States in a Federal Court (other than in the 
United States Tax Court), that has not been paid in full or otherwise 
satisfied.

Use of Grant Funds

    Grant funds may be used to assist eligible recipients in 
establishing Centers that provide Producer Services and may only be 
used to support operations of the Center that directly relate to 
providing Producer Services. Grant funds may be used for the following 
purposes:
    (1) Consulting services for legal, accounting and technical 
services to be used by the grantee in establishing and operating a 
Center;
    (2) Hiring of employees, at the discretion of the Qualified Board 
of Directors;
    (3) The making of matching grants to agricultural producers, 
individually not to exceed $5,000, where the aggregate amount of all 
such matching grants made by the grantee does not exceed $50,000;

[[Page 53544]]

    (4) Applied research; and
    (5) Legal services.

Limitations on Use of Grant Funds

    Grant funds may not be used to:
    (1) Duplicate current services or replace or substitute support 
previously provided. If the current service is inadequate, however, 
grant funds may be used to expand the level of effort or services 
beyond what is currently being provided;
    (2) Pay costs of preparing the application package for funding 
under this program;
    (3) Pay costs of the project incurred prior to the date of grant 
approval;
    (4) Fund political activities;
    (5) Pay for assistance to any private business enterprise which 
does not have at least 51 percent ownership by those who are either 
citizens of the United States or reside in the United States after 
being legally admitted for permanent residence;
    (6) Pay any judgment or debt owed to the United States;
    (7) Plan, repair, rehabilitate, acquire, or construct a building or 
facility (including a processing facility);
    (8) Purchase, rent or install Fixed Equipment; or
    (9) Pay for the repair of privately owned vehicles.

Grant Approval and Obligation of Funds

    The following statement will be entered in the comment section of 
the Request for Obligation of Funds, which must be signed by the 
grantee:
    ``The grantee certifies that it is in compliance with and will 
continue to comply with all applicable laws, regulations, Executive 
Orders and other generally applicable requirements, including those 
contained in 7 CFR part 4284 and 7 CFR parts 3015, 3016, 3017, 3018, 
3019 and 3052 in effect on the date of grant approval, and the approved 
Letter of Conditions.''

Grant Disbursement

    The Agency will determine, based on 7 CFR parts 3015, 3016 and 
3019, as applicable, whether disbursement of a grant will be by advance 
or reimbursement. The Agency may limit the frequency in which a Request 
for Advance or Reimbursement may be submitted.

Grant Closing

    (1) Letter of Conditions. The Agency will notify an approved 
applicant in writing, setting out the conditions under which the grant 
will be made.
    (2) Applicant's intent to meet conditions. Upon reviewing the 
conditions and requirements in the letter of conditions, the applicant 
must complete, sign and return the Agency's ``Letter of Intent to Meet 
Conditions,'' or, if certain conditions cannot be met, the applicant 
may propose alternate conditions to the Agency. The Agency must concur 
with any changes proposed to the letter of conditions by the applicant 
before the application will be further processed.
    (3) Grant agreement. The Agency and the grantee must enter into an 
``Agriculture Innovation Center Grant Agreement'' prior to the advance 
of funds.

Award Requirements

    All approved applicants will be required to do the following:
    (1) Use ``Request for Advance or Reimbursement'' to request 
advances or reimbursements, as applicable, but not more frequently than 
once a month;
    (2) Maintain a financial management system that is acceptable to 
the Agency; and
    (3) Collect and maintain data on race, sex and national origin of 
the beneficiaries of the project.

Reporting Requirements

    Grantees must submit the following to USDA:
    (1) A ``Financial Status Report'' listing expenditures according to 
agreed upon budget categories, on a semi-annual basis. Reporting 
periods end each March 31 and September 30. Reports are due 30 days 
after the reporting period ends.
    (2) Semi-annual performance reports that compare accomplishments to 
the objectives stated in the proposal. All tasks completed to date must 
be specifically identified and documentation provided to support the 
reported results. If the original schedule provided in the work plan is 
not being met, the report should discuss the problems or delays that 
may affect completion of the project. Objectives for the next reporting 
period should be listed. Compliance with any special condition on the 
use of award funds should be discussed. Reports are due as provided in 
paragraph (1). The supporting documentation for completed tasks 
include, but are not limited to, feasibility studies, marketing plans, 
business plans, articles of incorporation and bylaws and an accounting 
of how working capital funds were spent.
    (3) Final project performance reports, inclusive of supporting 
documentation. The final performance report is due within 30 days of 
the completion of the project.

Confidentiality of Reports

    All reports submitted to the Agency will be held in confidence to 
the extent permitted by law.

Grant Servicing

    Grants will be serviced in accordance with 7 CFR part 1951, 
subparts E and O. Grantees will permit periodic inspection of the 
program operations by a representative of the Agency. All non-
confidential information resulting from the Grantee's activities shall 
be made available to the general public on an equal basis.

Performance

    USDA may elect to suspend or terminate a grant in all or part, or 
funding of a particular work plan activity, but nevertheless fund the 
remainder of a request for advance or reimbursement, as applicable, 
where USDA has determined:
    (1) that the grantee or subrecipient of grant funds has 
demonstrated insufficient progress in complying with the terms of the 
grant agreement;
    (2) there is reason to believe that other sources of joint funding 
have not been or will not be forthcoming on a timely basis; or
    (3) such other cause as USDA identifies in writing to the grantee 
(including but not limited to the use of federal grant funds for 
ineligible purposes).

Other Considerations

    (1) Environmental review.
    All grants made under this subpart are subject to the requirements 
of 7 CFR part 1940, subpart G or its successor. Applications for 
technical assistance or planning projects are generally excluded from 
the environmental review process by 7 CFR 1940.333, provided the 
assistance it not related to the development of a specific site. 
Applicants for grant funds must consider and document within their 
plans the important environmental factors within the planning area and 
the potential environmental impacts of the plan on the planning area, 
as well as the alternative planning strategies that were reviewed.
    (2) Civil rights. All grants made under this subpart are subject to 
the requirements of title VI of the Civil Rights Act of 1964, which 
prohibits discrimination on the basis of race, color and national 
origin as outlined in 7 CFR part 1901, subpart E. In addition, the 
grants made under this subpart are subject to the requirements of 
section 504 of the Rehabilitation Act of 1973, as amended, which 
prohibits discrimination on the basis of disability;

[[Page 53545]]

the requirements of the Age Discrimination Act of 1975, which prohibits 
discrimination on the basis of age; and title III of the Americans with 
Disabilities Act, which prohibits discrimination on the basis of 
disability by private entities in places of public accommodations. This 
program will also be administered in accordance with all other 
applicable Civil Rights Law.
    (3) Other USDA regulations. The grant programs under this part are 
subject to the provisions of the following regulations, as applicable:
    (a) 7 CFR part 3015, Uniform Federal Assistance Regulations;
    (b) 7 CFR part 3016, Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments;
    (c) 7 CFR part 3017, Governmentwide Debarment and Suspension 
(nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants);
    (d) 7 CFR part 3018, New Restrictions on Lobbying;
    (e) 7 CFR part 3019, Uniform Administrative Requirements for Grants 
and Agreements with Institutions of Higher Education, Hospitals and 
Other Non-profit Organizations; and
    (f) 7 CFR part 3052, Audits of States, Local Governments and Non-
profit Organizations.

Member Delegate Clause

    No member of Congress shall be admitted to any share or part of a 
grant program or any benefit that may arise there from, but this 
provision shall not be construed to bar as a contractor under a grant a 
publicly held corporation whose ownership might include a member of 
Congress.

Audit Requirements

    Grantees must comply with the audit requirements of 7 CFR part 
3052. The audit requirements apply to the years in which grant funds 
are received and years in which work is accomplished using grant funds.

Programmatic Changes

    The Grantee shall obtain prior approval for any change to the scope 
or objectives of the approved project. Failure to obtain prior approval 
of changes to the scope of work or budget may result in suspension, 
termination and recovery of grant funds.

    Dated: September 5, 2003.
Gilbert Gonzalez,
Acting Under Secretary, Rural Development.
[FR Doc. 03-23135 Filed 9-10-03; 8:45 am]
BILLING CODE 3410-XY-P