[Federal Register Volume 69, Number 136 (Friday, July 16, 2004)]
[Notices]
[Pages 42701-42704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-16231]


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DEPARTMENT OF EDUCATION


Native American Vocational and Technical Education Program

AGENCY: Office of Vocational and Adult Education, Department of 
Education.

ACTION: Notice of extension of project period and waiver.

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SUMMARY: We hereby waive the requirement in 34 CFR 75.261(c)(2) as it 
applies to projects funded under the Native American Vocational and 
Technical Education Program (NAVTEP) in fiscal year (FY) 2000. We waive 
this requirement in order to be able to extend the project periods for 
31 current grants awarded under the FY 2000 NAVTEP competition.
    A waiver means that: (1) Current grants will be continued at least 
through FY 2005 (and possibly for subsequent years, depending on the 
availability of appropriations for NAVTEP in FY 2005 and those years 
under the current statutory authority), instead of ending in FY 2004, 
and (2) we will not announce a new competition or make new awards in FY 
2004.

DATES: This notice of extension of project period and waiver is 
effective July 16, 2004.

FOR FURTHER INFORMATION CONTACT: Sharon A. Jones, U.S. Department of 
Education, Office of Vocational and Adult Education, 400 Maryland 
Avenue, SW., room 11108, Potomac Center Plaza, Washington, DC 20202-
7120. Telephone (202) 245-7803.
    If you use a telecommunications device for the deaf (TDD), you may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this notice of extension 
of project period and waiver in an alternative format (e.g., Braille, 
large print, audiotape, or computer diskette) on request to the contact 
person listed under FOR FURTHER INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION: On April 9, 2004, we published a notice in 
the Federal Register (69 FR 18887) proposing an extension of project 
period and waiver in order to give early notice of the possibility that 
additional years of funding under the NAVTEP may be available for 
current grantees through continuation awards.
    The Carl D. Perkins Vocational and Technical Education Act of 1998

[[Page 42702]]

(Perkins Act), which includes authorization for the NAVTEP, expired at 
the end of FY 2003 and was extended for one year under section 422 of 
the General Education Provisions Act (20 U.S.C. 1226a). With the 
uncertainties presented by the absence of authorizing legislation for 
the NAVTEP beyond 2004, we proposed not to hold a competition in FY 
2004 for projects that would then operate for just one year. We stated 
in the Federal Register notice that we were reluctant to announce a 
competition under which eligible entities would be expected to proceed 
through the application preparation and submission process while 
lacking critical information about the future of the program, and that 
we did not think that it would be in the public interest to do so in 
this case. We also noted that if we were to hold a competition in FY 
2004 for grants to operate in FY 2005 using the FY 2003 appropriation, 
grantees would not have sufficient time to establish and operate 
effective projects.
    Accordingly, we proposed to review requests for continuation awards 
from the 31 current FY 2000 grantees and extend currently funded 
projects, rather than hold a new competition in FY 2004.

Analysis of Comments

    In response to the Secretary's invitation in the notice of proposed 
extension of project period and waiver, 288 parties submitted comments. 
An analysis of the comments follows. Generally, we do not address 
technical and other minor changes and suggested changes that the law 
does not authorize the Secretary to make. We also do not address 
comments that are not related to issues discussed in the notice of 
proposed extension of project period and waiver.
    Extension of current grants.
    Comments: 286 of the 288 commenters supported the proposed 
extension of project period and waiver. The commenters generally agreed 
that, with the uncertainties associated with the absence of authorizing 
legislation, it is not in the best interest of the public to conduct a 
grant competition at this time. Several commenters believed that, since 
we are halfway into 2004, it would be difficult for administrators of 
current projects to find the time and money to submit new applications 
this year. The commenters agreed that having current grantees expend 
the cost and effort required to submit new applications for funding in 
FY 2004 would be an unnecessary burden.
    Several commenters suggested that continuing the awards of current 
grantees would eliminate the inefficiencies associated with starting 
new projects for an uncertain duration and uncertain degree of 
effectiveness. A vast majority of the commenters thought that asking 
tribes to expend the time, energy, and resources that go into a large-
scale application process was not logical or prudent when combined with 
the lack of time to establish and operate effective new projects.
    Several commenters strongly believed that continuing to fund 
current grantees would capitalize on the successes and effectiveness of 
those current grantees. Moreover, the commenters thought an application 
process would divert resources away from training and would be 
extremely disruptive to current Perkins-funded education and job 
training programs. Several other commenters pointed out that current 
projects have expended considerable time, effort, and extensive 
resources to develop programs, instructional skills, and community 
support. These commenters felt that continuation of current grants 
would maximize these expenditures, and actually reduce potential costs 
and increase benefits, while preserving the effective and efficient 
administration of NAVTEP.
    Many commenters supported the continuation of current grantees' 
awards because of the benefits they provide to the Indian community. 
Those commenters noted that current projects offer education, training, 
and job placement that would not be available without the NAVTEP; 
provide industry specific training that produces a qualified workforce; 
graduate trainees who are immediately hired; increase the earning power 
for people who were underemployed or unemployed; give tribal members an 
opportunity to attend college, obtain an Associate of Arts degree, and 
go on to higher education; and provide educational opportunities that 
improve the lives of students, many of whom are first generation, non-
traditional students who are striving to provide a better lifestyle for 
themselves and their children and grandchildren. Still other commenters 
thought the current projects allow students to gain the skills and 
abilities necessary to compete in today's challenging job market as 
well as provide such intrinsic rewards for students as motivation, 
self-confidence, self-worth, and the confidence to expand beyond their 
perceived boundaries. Commenters pointed out that many of the current 
projects have waiting lists of tribal members wanting to take advantage 
of the programs being offered.
    Discussion: We have considered the comments from individuals, 
tribes, and tribal organizations. The vast majority support the 
extension of projects and waiver and favor our proposal to continue the 
current grants for at least one more year, and perhaps longer, under 
the current NAVTEP authority. They concluded that they agree with our 
overall rationale for extending current projects, and that the 
extension will reduce burden on current grantees and capitalize on the 
success and effectiveness of current grantees.
    Changes: None.
    Hold a competition.
    Comments: Two commenters recommended that we hold a competition in 
order to provide an opportunity for all Indian tribes to apply for 
support under the NAVTEP. One of those commenters also expressed the 
view that creating an excessive paperwork burden for currently funded 
grantees was not a legitimate reason for denying tribes, which are not 
currently receiving funds, access to a source of funds for local jobs 
and economic development. The commenter thought that well over 500 
tribes would be deprived of a chance to apply for NAVTEP funds, and 
potentially experience a devastating economic impact, if we do not hold 
a competition in FY 2004. The commenter also thought our inability to 
``guarantee'' new grantees more than one year of funding was not 
sufficient reason to continue funding current grantees, rather than 
announcing a new competition. The commenter reasoned that the amount of 
money received by successful NAVTEP grantees would more than compensate 
them for the effort of preparing an application. Additionally, the 
commenter thought the Perkins Act (which authorizes the NAVTEP) would 
not be reauthorized for several years and recommended that we award 
multi-year grants to new recipients rather than continue to fund 
grantees that have already received three years of funding. Yet another 
commenter expressed a desire for an opportunity to apply for NAVTEP 
funds this year, but thought it more important to see the projects of 
other Native Americans succeed.
    Discussion: In response to the two commenters who expressed the 
above stated concerns about our proposal, first we would like to 
clarify that while we will accept requests for continuation proposals 
from the 31 current grantees for at least one additional year, in lieu 
of holding a new competition in FY 2004, this will not preclude the 
Department from holding a competition in FY 2005 or thereafter should 
we find that the circumstances support such a decision. Most 
significantly, in the

[[Page 42703]]

event of a reauthorization, it is likely that we will hold a new 
competition, under the new statutory authority. If we decide to hold a 
grant competition in FY 2005 or thereafter, we will announce our 
decision and the reasons for that decision through a notice in the 
Federal Register.
    As to the comment regarding the number of Indian tribes that may be 
affected by our decision not to announce a new NAVTEP competition in FY 
2004, we also note that, although there are over 500 Federally 
recognized Indian tribes, most of them historically have not chosen to 
apply for NAVTEP funds. In fact, over the history of competitions under 
the NAVTEP and the predecessor Indian Vocational Education Program, on 
average only 78 Federally recognized tribes actually submitted 
applications during any given competition.
    In addition, neither in our notice of proposed extension of current 
grants, nor here in our final notice, do we rely exclusively or 
primarily on a desire to avoid what the commenter refers to as 
``excessive paperwork burden'' for currently funded grantees in support 
of our decision, as the commenter seems to suggest. Rather, we refer to 
multiple factors, such as, the uncertainty of a statutory basis for the 
program beyond FY 2004, the fact that multi-year projects are clearly 
preferable in the NAVTEP, the fact that without reauthorization it is 
difficult if not impossible to plan for multi-year projects, and the 
cost and work involved in submitting a NAVTEP application. Finally, the 
commenter's statement that the Perkins Act is not likely to be 
reauthorized for several years is purely speculative and unpersuasive 
as support for the accompanying recommendation that the Department 
award multi-year grants to new applicants, rather than continue to fund 
current grantees.
    Changes: None.
    Length of project period.
    Comments: One commenter did not think holding a competition for 
one-year projects was advisable because new grantees spend at least the 
first six months of new projects gearing up to meet the grant 
requirements. The commenter, therefore, reasoned that new grantees 
would have difficulty operating effective projects for only one year. 
Several other commenters recommended awarding three-year continuation 
grants to the current grantees. Yet another commenter stated that a 
period of three years was not enough time to operate projects and 
suggested that a period of five or six years would be a much more cost 
efficient and viable project period.
    Discussion: First, we agree that many new grantees use a portion of 
the first year to get projects underway and, therefore, need more than 
a year to implement a project successfully. However, with the extension 
of current grants, there will be no start-up period. If continued, 
current projects would simply continue to address the same program 
goals and objectives as contained in their original applications and 
budget proposals.
    Second, with regard to the suggestions that we award multi-year 
continuation grants, under Sec.  75.251 of the Education Department's 
General Administrative regulations, the Secretary ``usually approves a 
budget period and makes a continuation award of not more than 12 
months, even if the project has a multi-year project period.'' (34 CFR 
75.251) The awarding of 12-month continuation awards within multi-year 
projects is entirely consistent with the Secretary's administrative 
oversight and technical assistance role as well as with the annual 
appropriation cycle. We see no reason to do otherwise in NAVTEP, even 
under these circumstances.
    Change: None.

Waiver of Delayed Effective Date

    The Administrative Procedure Act requires that a substantive rule 
shall be published at least 30 days before its effective date, except 
as otherwise provided for good cause (5 U.S.C. 553(d)(3)). During the 
30-day public comment period we received only two comments objecting to 
the proposed extension of project period and waiver. For this reason, 
and in order to make timely continuation grants to the entities 
affected, the Secretary has determined that a delayed effective date is 
not required.

Waiver of Education Department General Administrative Regulations

    In order to provide for continuation awards, we waive the 
requirement in 34 CFR 75.261(c)(2), which establishes the conditions 
for extending a project period, including prohibiting the extension of 
a program's project period if it involves the obligation of additional 
Federal funds.
    This waiver means that: (1) Current NAVTEP grantees will be 
authorized to apply for continuation awards in FY 2004 and could be 
continued at least through FY 2005 (and possibly for subsequent years, 
depending on the availability of appropriations for the NAVTEP in FY 
2005 and subsequent years under the current statutory authority), 
instead of ending their current projects in FY 2004, (2) we will not 
announce a new competition or make new awards in FY 2004 and may not 
announce new competitions in future years in which Congress 
appropriates funds under the current authority, (3) the notice inviting 
applications for new awards for FY 2000 under the NAVTEP published in 
the Federal Register on January 3, 2001 (66 FR 560) will govern any 
projects we extend under this notice, and (4) the approved applications 
submitted by the 31 current grantees in the 2001 competition will 
govern all such continuation awards.

Continuation of the Current Grantee Awards

    With this waiver of 34 CFR 75.261(c)(2), we would extend the 
project periods of the 31 NAVTEP grantees that received grants under 
the FY 2000 competition for one year, and possibly for additional years 
for which Congress appropriates funds under the current statutory 
authority.
    Decisions regarding annual continuation awards will be based on the 
program narratives, budgets and budget narratives, Grant Performance 
Reports submitted by grantees, and the regulations in 34 CFR 75.253. 
Consistent with 34 CFR 75.253, we will award continuation grants if we 
determine, based on information provided by each grantee, that it is 
making substantial progress performing its NAVTEP grant activities. 
Under this notice of extension of project period and waiver, (1) the 
project period for grantees will be extended for one additional year, 
and (2) additional continuation awards could be made for any additional 
year or years for which Congress appropriates funds under existing 
statutory authority.
    We do not interpret the waiver as exempting current grantees from 
the account-closing provisions of Public Law 101-510, or as extending 
the availability of FY 2000 funds awarded to the grantees. As a result 
of Public Law 101-510, appropriations available for a limited period 
may be used for payments of valid obligations for only five years after 
the expiration of their period of availability for Federal obligation. 
After that time, the unexpended balance of those funds is canceled and 
returned to the Treasury Department and is unavailable for restoration 
for any purpose.

Regulatory Flexibility Act Certification

    The Secretary certifies that the extension of project period and 
waiver and the activities required to support additional years of 
funding will not have a significant economic impact on a substantial 
number of small entities.

[[Page 42704]]

    The small entities that would be affected by this extension of 
project period and waiver are the FY 2000 grantees currently receiving 
Federal funds and the following entities that are eligible for an award 
under the NAVTEP:
    (1) A Federally recognized Indian tribe.
    (2) A tribal organization.
    (3) An Alaska Native entity.
    (4) A Bureau-funded school (as defined in the January 3, 2001, 
notice inviting applications (66 FR 560)), except for a Bureau-funded 
school proposing to use its award to support secondary school 
vocational and technical education programs.
    However, this extension of project period and waiver is not likely 
to have a significant economic impact on these entities because the 
extension of project period and waiver and the activities required to 
support the additional years of funding will not impose excessive 
regulatory burdens or require unnecessary Federal supervision. This 
extension of project period and waiver will impose minimal requirements 
to ensure the proper expenditure of program funds, including 
requirements that are standard to continuation awards.

Instructions for Requesting a Continuation Award

    Generally, in order to receive a continuation grant, a grantee must 
submit an annual program narrative that describes the activities it 
intends to carry out during the year of the continuation award. The 
activities must be consistent with, or be a logical extension of, the 
scope, goals, and objectives of the grantee's application approved 
under the FY 2000 competition. A grantee must also submit a budget and 
budget narrative for each year it requests a continuation award. (34 
CFR 75.253(c)(2)). A grantee should request a continuation award at 
least 30 days before its current grant expires. A grantee may request a 
continuation award for any year for which Congress appropriates funds 
under the current statutory authority, unless the Department holds a 
grant competition under the NAVTEP.

Amount of New Awards Under Continuation Grant

    The actual amount of any continuation award depends on factors such 
as: (1) The grantee's written statement describing how the funds made 
available under the continuation award will be used, (2) a cost 
analysis of the grantee's budget by the Department, and (3) whether the 
unobligated funds made available are needed to complete activities that 
were planned for completion in the prior budget period. (34 CFR 75.232 
and 75.253(c)(2)(ii) and (3)).

Paperwork Reduction Act of 1995

    This extension of project period and waiver do not contain any 
information collection requirements.

Intergovernmental Review

    The NAVTEP is not subject to Executive Order 12372 and the 
regulations in 34 CFR part 79.

Assessment of Educational Impact

    In the April 9, 2004, notice of proposed extension of project 
period and waiver (69 FR 18887) we requested comments on whether the 
proposed extension of project period and waiver would require 
transmission of information that any other agency or authority of the 
United States gathers or makes available.
    Based on the responses to that notice, and our own review, we have 
determined that this final notice of extension of project period and 
waiver does not require transmission of information that any other 
agency or authority of the United States gathers or makes available.

Electronic Access to This Document

    You may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at the following site: 
http://www.ed.gov/news/fedregister.
    To use PDF you must have Adobe Acrobat Reader, which is available 
free at this site. If you have questions about using PDF, call the U.S. 
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in 
the Washington, DC, area at (202) 512-1530.

    Note: The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at: http://www.gpoaccess.gov/nara/index.html.

(Catalog of Federal Domestic Assistance Number 84.101 Native 
American Vocational and Technical Education Program.)

    Program Authority: 20 U.S.C. 2326(a) through (g).

    Dated: July 13, 2004.
Susan Sclafani,
Assistant Secretary for Vocational and Adult Education.
[FR Doc. 04-16231 Filed 7-15-04; 8:45 am]
BILLING CODE 4000-01-P