[Federal Register Volume 73, Number 172 (Thursday, September 4, 2008)]
[Rules and Regulations]
[Pages 51585-51591]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-20486]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1291

[Docket No. AMS-FV-08-0057; FV-08-379 IFR]
RIN 0581-AC88


Specialty Crop Block Grant Program--Farm Bill; Notice of Request 
for Approval of a New Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule provides regulations to administer the Specialty 
Crop Block Grant Program--Farm Bill (SCBGP-FB) to enhance the 
competitiveness of specialty crops. This rule is intended to

[[Page 51586]]

establish eligibility and application requirements and grant 
administration procedures for the SCBGP-FB consistent with the Food, 
Conversation, and Energy Act of 2008 (Farm Bill) amendments to the 
Specialty Crops Competitiveness Act of 2004. This program is separate 
from the Specialty Crop Block Grant Program (SCBGP) found in 7 CFR part 
1290.

DATES: Effective September 5, 2008; comments received by November 3, 
2008, will be considered prior to issuance of a final rule. Pursuant to 
the Paperwork Reduction Act, comments on the information collection 
burden that would result from this rule must be received by November 3, 
2008.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this action. Comments must be posted on http://www.regulations.gov; or sent to the Docket Clerk, Fruit and Vegetable 
Programs, AMS, USDA, 1400 Independence Avenue, SW., Stop 0235, 
Washington, DC 20250-0235; Fax: (202) 720-0016; E-mail: 
[email protected].
    In addition, comments concerning the information collection and 
recordkeeping requirement required by this rule should also be sent to 
the Desk Officer for Agriculture, Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, 725 17th St., NW., Room 725, Washington, DC 20503. Comments 
are invited on: (1) Whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility; (2) the 
accuracy of the agency's estimate of the burden of the proposed 
collection of information, including the validity of the methodology 
and assumptions used; (3) ways to enhance the quality, utility, and 
clarity of the information to be collected; and (4) ways to minimize 
the burden of the collection of information on those who are to 
respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    All comments should reference the docket number AMS-FV-08-0057; FV-
08-379, the date, and the page number of this issue of the Federal 
Register.

FOR FURTHER INFORMATION CONTACT: Trista Etzig, Fruit and Vegetable 
Programs, AMS, USDA, 1400 Independence Avenue, SW., Stop 0235, 
Washington, DC 20250-0235; Telephone: (202) 690-4942; Fax: (202) 720-
0016; or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

    This rule has been determined to be not significant for the 
purposes of Executive Order 12866 and therefore has not been reviewed 
by the Office of Management and Budget (OMB).

Public Law 104-4

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State and local governments and 
the private sector. Under section 202 of the UMRA, the Agricultural 
Marketing Service (AMS) generally must prepare a written statement, 
including a cost-benefit analysis, for proposed and final rules with 
``Federal mandates'' that may result in expenditures by State and local 
governments, in the aggregate, or by the private sector, of $100 
million or more in any one year (2 U.S.C. 1532). When such a statement 
is needed for a rule, section 205 of the UMRA generally requires 
federal agencies to identify and consider a reasonable number of 
regulatory alternatives and adopt the least costly, most cost-
effective, or least burdensome alternative that achieves the objectives 
of the rule (2 U.S.C. 1535).
    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State and local governments or 
the private sector of $100 million or more in any one year. Therefore, 
this rule is not subject to the requirements of sections 202 and 205 of 
the UMRA.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
This rule will not preempt any State or local laws, regulations or 
policies, unless they present an irreconcilable conflict with this 
rule. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of this rule.

Catalog of Federal Domestic Assistance

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.170, Specialty Crop Block Grant Program--Farm 
Bill.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which requires intergovernmental consultation with State and 
local officials. See the Notice related to 7 CFR part 3015, subpart V 
published at 48 FR 29115 (June 24, 1983).

Executive Order 12612

    It has been determined that this rule does not have sufficient 
Federalism implications to warrant the preparation of a Federalism 
Assessment. The provisions contained in this rule would not have a 
substantial direct effect on States or their political subdivisions or 
on the distribution of power and responsibilities among the various 
levels of government.

Regulatory Flexibility Act

    The AMS certifies that this rule will not have a significant impact 
on a substantial number of small entities as defined in the Regulatory 
Flexibility Act, Public Law 96-534, as amended (5 U.S.C. 601 et seq.). 
This rule only will impact State departments of agriculture that apply 
for grant funds. States, as defined under the SCBGP-FB, mean the fifty 
States, the District of Columbia, the Commonwealth of Puerto Rico, 
Guam, American Samoa, the U.S. Virgin Islands, and the Commonwealth of 
the Northern Mariana Islands. The States are not small entities under 
the Act.

Authority for a Specialty Crop Block Grant Program

    This program is intended to accomplish the goal of enhancing the 
competitiveness of specialty crops. The SCBGP-FB is authorized under 
section 101 of the Specialty Crops Competitiveness Act of 2004 (7 
U.S.C. 1621 note, amended under section 10109 of the Food, 
Conservation, and Energy Act of 2008, the Farm Bill). Section 10109 
directs the Secretary of Agriculture to make grants to States to be 
used by State departments of agriculture solely to enhance the 
competitiveness of specialty crops. This program is separate from the 
Specialty Crop Block Grant Program (SCBGP) found in 7 CFR part 1290.
    This rule also invites comments on the reporting and recordkeeping 
provisions that would be generated by this interim final rule. The 
information collection and recordkeeping requirements associated with 
this interim final rule are explained in more detail in the Paperwork 
Reduction Act section of this rule.

Background

    On July 30, 2008, AMS published at 73 FR 44211, a Notice of Funds 
Availability. AMS announced the availability of approximately $10 
million in grant funds, less USDA

[[Page 51587]]

administrative costs, to enhance the competitiveness of specialty 
crops. The 2008 Farm Bill makes the SCBGP-FB funds available only 
through the end of the fiscal year (September 30, 2008). In view of 
this, a shorter application period was deemed appropriate. Applications 
are to be received not later than September 8, 2008. The application 
process is discussed in the July 30, 2008 Notice of Funds Availability. 
This interim final rule includes additional application and State plan 
requirements beginning with fiscal year 2009.
    Under the program established by this interim final rule, the Fruit 
and Vegetable Program will announce every fiscal year that applications 
may be submitted for participation in a ``Specialty Crop Block Grant 
Program--Farm Bill'', which will be administered by personnel of the 
Agricultural Marketing Service (AMS).
    Mandatory funding will be made available to the Secretary of 
Agriculture to provide specialty crop block grants of $10 million for 
fiscal year 2008, $49 million in 2009, and $55 million in each of 
fiscal years 2010 through 2012, less USDA administrative costs. Each 
fiscal year, the AMS intends to publish a Federal Register notice 
announcing the program and soliciting grant applications. The notice 
will include the amount of grant funds available to each State and the 
application period.
    For each fiscal year, each State that submits an application that 
is reviewed and approved by AMS is to receive at least an amount that 
is equal to the higher of $100,000, or \1/3\ of 1 percent of the total 
amount of funding made available for that fiscal year to enhance the 
competitiveness of specialty crops. In addition, each State will 
receive an amount that represents the proportion of the value of 
specialty crop production in the state in relation to the national 
value of specialty crop production using the latest available complete 
specialty crop production data set in all states whose applications are 
accepted.
    All 50 States, the District of Columbia, the Commonwealth of Puerto 
Rico, Guam, American Samoa, the U.S. Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands are eligible to 
participate. SCBGP applications will be accepted from any State 
department of agriculture, as defined under the SCBGP-FB, which means 
the agency, commission, or department of a State government responsible 
for agriculture within the State.
    ``Specialty crops'' for the purpose of this rule, means fruits and 
vegetables, tree nuts, dried fruits, horticulture and nursery crops 
(including floriculture). The inclusion of horticulture means turfgrass 
sod is a covered commodity.
    Section 1291.4 prescribes that grant funds shall be used to enhance 
the competitiveness of eligible specialty crops and benefit the 
specialty crop industry and/or the public. For a list of eligible 
specialty crops and ineligible commodities, please refer to the SCBGP 
Guidelines available on the SCBGP Web site at http://www.ams.usda.gov/fv.
    Section 1291.7 prescribes application procedures that include a 
State plan to indicate how grant funds will be utilized to enhance the 
competitiveness of specialty crops. For guidance on completing the 
application, please refer to the SCBGP Guidelines available on the 
SCBGP Web site at http://www.ams.usda.gov/fv.
    State departments of agriculture are encouraged to conduct outreach 
to specialty crop producers, including socially disadvantaged and 
beginning farmers of specialty crops and develop their State plans 
through a competitive process to ensure maximum public input and 
benefit. States are also encouraged to include multi-state and regional 
proposals.
    Section 1291.10 prescribes that States who do not apply for or do 
not request all available funding during the specified grant 
application period will forfeit all or that portion of available 
funding not requested for that application year. Funds not obligated 
will be allocated pro rata to the remaining States who applied during 
the specified grant application period to be solely expended on 
projects previously approved in their State plan.
    AMS is inviting comments on this interim final rule.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.), the AMS has requested emergency review and approval by 
the Office of Management and Budget of a new information collection.
    Title: Specialty Crop Block Grant Program--Farm Bill.
    OMB Number: 0581-New.
    Type of Request: New Information Collection.
    Expiration Date of Approval: 3 years from date of OMB approval.
    Abstract: The information collection requirements in this request 
are applied only to those State departments of agriculture who 
voluntarily participate in the SCBGP-FB. The information collected is 
needed for the implementation of the SCBGP-FB, to determine a State 
department of agriculture's eligibility in the program, and to certify 
that grant participants are complying with applicable program 
regulations. Data collected is the minimum information necessary to 
effectively carry out the requirements of the program, and to fulfill 
the intent of Section 101 of the Competitiveness Act of 2004, as 
amended by Section 10109 of the Food, Conservation, and Energy Act of 
2008, Public Law 110-246, the Farm Bill.
    State departments of agriculture who wish to participate in the 
SCBGP-FB would have to submit the following:
    (a) SF-424, ``Application for Federal Assistance'', (approved under 
OMB collection number 4040-0004) is required to apply for federal 
assistance.
    (b) SF-424A, ``Budget Information-Non-Construction Programs,'' 
(approved under OMB collection number 0348-0044) is required to show 
each project's budget breakdown.
    (c) Form SF-424B, ``Assurances-Non-Construction Programs'', 
(approved under OMB collection number 0348-0040) to assure the Federal 
government of the applicant's legal authority to apply for Federal 
assistance.
    (d) State Plan Narrative. Completed applications must include a 
State Plan Narrative to show how grant funds will be utilized to 
enhance the competitiveness of specialty crops.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 10 hours per response.
    Respondents: State departments of agriculture.
    Estimated Number of Respondents: 56 (All 50 States, the District of 
Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the 
U.S. Virgin Islands, and the Commonwealth of the Northern Mariana 
Islands).
    Estimated Number of Responses: 56.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 560 hours.
    Before funds are dispersed, State departments of agriculture must 
complete the following forms:
    (a) Form AD-1047, ``Certification Regarding Disbarment, Suspension, 
and Other Responsibility Matters--Primary Covered Transactions.'' This 
form must have the grantee's original signature.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average .20 hours per response.
    Respondents: State departments of agriculture.
    Estimated Number of Respondents: 56.
    Estimated Number of Responses: 56.
    Estimated Number of Responses per Respondent: 1.

[[Page 51588]]

    Estimated Total Annual Burden on Respondents: 11.20 hours.
    (b) Form AD-1048, ``Certification Regarding Disbarment, Suspension, 
Ineligibility and Voluntary Exclusion--Lower Tier Covered 
Transactions.'' The grantee keeps this document for their records.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average .20 hours per response.
    Respondents: State departments of agriculture.
    Estimated Number of Respondents: 56.
    Estimated Number of Responses: 56.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 11.20 hours.
    (c) Form AD-1049, ``Certification Regarding Drug-Free Workplace 
Requirements (Grants) Alternative I--For Grantees Other Than 
Individuals.'' This form must have the grantee's original signature.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average .20 hours per response.
    Respondents: State departments of agriculture.
    Estimated Number of Respondents: 56.
    Estimated Number of Responses: 56.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 11.20 hours.
    (d) Form SF-LLL, ``Disclosure of Lobbying Activities,'' (approved 
under OMB collection number 0348-0046). This form must have the 
grantee's original signature.
    Additionally, State departments of agriculture must also complete 
the following forms and paperwork for AMS:
    (a) Grant Agreement. The Grant Agreement sets forth the agreed upon 
responsibilities of AMS project work. It also indicates the agreed upon 
grant funding dollar amounts and the beginning date and ending date of 
the project work and the Grant Agreement. Four (4) copies of this Grant 
Agreement are required with the grantee's signatures and dated for each 
grant.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average .08 hours per response.
    Respondents: State departments of agriculture.
    Estimated Number of Respondents: 56.
    Estimated Number of Responses: 56.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 4.65 hours.
    (b) Form SF-270, ``Request for Advance and Reimbursement'' 
(approved under OMB collection number 0348-0004) is required whenever 
the grantees request an advance or reimbursement of Federal grant 
funds. AMS expects that at least three (3) SF-270 forms will be 
submitted during the grant agreement period.
    (c) Annual Performance Report. The Annual Performance Report is 
required if a grant period is more than one year in length. The Annual 
Performance Report is written documentation required to notify AMS 
about the work activities and progress towards completing the grantee's 
and subgrantee's established project activities, goals and outcomes. 
AMS expects that at least two (2) Annual Performance Reports will be 
submitted during the grant agreement period.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 3 hours per response.
    Respondents: State departments of agriculture.
    Estimated Number of Respondents: 56.
    Estimated Number of Responses: 112.
    Estimated Number of Responses per Respondent: 2.
    Estimated Total Annual Burden on Respondents: 336 hours.
    (d) Final Performance Report. The Final Performance Report is 
written information required by AMS within 90 days after the ending 
date of the grant agreement. This information is utilized as final 
documentation of completion of the project activities, goals and 
outcomes.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 6 hours per response.
    Respondents: State departments of agriculture.
    Estimated Number of Respondents: 56.
    Estimated Number of Responses: 56.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 336 hours.
    (e) Request for Grant Period Extension. If the grant period goes 
beyond 3 calendar years, a grantee would have to submit in writing to 
AMS requesting a grant period extension.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average .17 hours per response.
    Respondents: State departments of agriculture.
    Estimated Number of Respondents: 6.
    Estimated Number of Responses: 6.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 1.02 hours.
    (f) SF-269 ``Financial Status Report'', if the project had program 
income (Long Form approved under OMB collection number 0348-0039), or 
SF-269A ``Financial Status Report'' (Short Form approved under OMB 
collection number 0348-0038) is to be completed 90 days after the 
expiration date of the grant period to comply with various legal and 
regulatory requirements as described within the form.
    (g) Audit Report. A State is required to conduct an audit of SCBGP 
expenditures and an audit report is required to be submitted to AMS no 
later than 30 days after completion of the audit.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 3 hours per response.
    Respondents: State departments of agriculture.
    Estimated Number of Respondents: 56.
    Estimated Number of Responses: 56.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 168 hours.
    Finally, State departments of agriculture are required to retain 
records pertaining to the SCBGP for 3 years after completion of the 
grant period or until final resolution of any audit findings or 
litigation claims relating to the SCBGP. This is a part of normal 
business practice.
    This program would not be maintained by any other Agency, 
therefore, the requested information will not be available from any 
other existing records.
    AMS is committed to compliance with the Government Paperwork 
Elimination Act (GPEA), which requires Government agencies in general 
to provide the public the option of submitting information or 
transacting business electronically to the maximum extent possible. For 
paper submissions, the SF and AD forms can be filled out electronically 
and printed out for submission with original signatures. The State Plan 
(Narrative) can be filled out electronically and printed out for 
submission. For grants.gov submissions, all SF and AD forms, as well as 
the State Plan (Narrative) can be filled out electronically and 
submitted as an attachment.
    The Annual Performance Report, Final Performance Report, Audit 
Report,

[[Page 51589]]

and Request for Grant Period Extension can be submitted electronically. 
The Grant Agreement requires an original signature and can be submitted 
by mail.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (4) ways 
to minimize the burden of the collection of information on those who 
are to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    Comments on the information collection must be posted online at 
http://www.regulations.gov; or sent to Docket Clerk, Fruit and 
Vegetable Programs, Agricultural Marketing Service, U.S. Department of 
Agriculture, Stop 0235, 1400 Independence Avenue, SW., Washington, DC 
20250-0235; Fax: (202) 720-0016; or E-mail: [email protected]. In 
addition, comments concerning the information collection and 
recordkeeping requirement required by this rule should also be sent to 
the Desk Officer for Agriculture, Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, 725 17th St., NW., Room 725, Washington, DC 20503. All 
comments to this information collection and recordkeeping requirement 
will be summarized in the final rule. All comments should reference the 
docket number AMS-FV-08-0057; FV-08-379, the date, and the page number 
of this issue of the Federal Register. All comments will also become a 
matter of public record.
    A 60-day comment period is provided to allow interested persons to 
respond to this information collection.

Effective Date

    It has been determined that this rule should be issued as an 
interim rule. The Specialty Crop Block Grant Program is authorized by 
section 101 of the Specialty Crops Competitiveness Act of 2004 (7 
U.S.C. 1621 note; amended under section 10109 of the Food, 
Conservation, and Energy Act of 2008, Public Law 110-246, the Farm 
Bill). Section 10109 of the Farm Bill directs the Secretary of 
Agriculture to make available $10 million in fiscal year 2008, $49 
million in fiscal year 2009, and $55 million in fiscal years 2010 
through 2012 to provide specialty crop block grants. This rule 
implements changes in the Farm Bill to the SCBGP, authorized by section 
101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 
note). Because the Farm Bill was only recently enacted and requires the 
Secretary of Agriculture to make available approximately $10 million in 
grant funds in fiscal year 2008, which ends September 30, 2008, 
pursuant to 5 U.S.C. 553, it is found, and determined, upon good cause, 
that it is impracticable and contrary to the public interest to give 
further notice prior to putting this rule into effect, and that good 
cause exists for not postponing the effective date of this interim 
final rule until 30 days after publication in the Federal Register.

List of Subjects in 7 CFR Part 1291

    Specialty crop block grants, Agriculture, Reporting and 
recordkeeping requirements.

0
For the reasons set forth in the preamble, and under authority of 7 
U.S.C. 1621 note, amended under Section 10109 of the Food, 
Conservation, and Energy Act of 2008, Public Law 110-246, Title 7, 
Chapter XI of the Code of Federal Regulations is amended by adding part 
1291 to read as follows:

PART 1291--SPECIALTY CROP BLOCK GRANT PROGRAM--FARM BILL

Sec.
1291.1 Purpose and scope.
1291.2 Definitions.
1291.3 Eligible grant applicants.
1291.4 Eligible grant project.
1291.5 Restrictions and limitations on grant funds.
1291.6 Completed application.
1291.7 Review of grant applications.
1291.8 Grant agreements.
1291.9 Unobligated funds.
1291.10 Reporting and oversight requirements.
1291.11 Audit requirements.

    Authority: 7 U.S.C. 1621 note, as amended.


Sec.  1291.1  Purpose and scope.

    Pursuant to the authority conferred by Section 101 of the Specialty 
Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note), as amended by 
Section 10109 of the Food, Conservation, and Energy Act of 2008, Public 
Law 110-246, AMS will make grants to States to enhance the 
competitiveness of specialty crops in accordance with the terms and 
conditions set forth herein and other applicable federal statutes and 
regulations, including, but not limited to, 7 CFR Part 3015 and Part 
3016.


Sec.  1291.2  Definitions.

    (a) AMS means the Agricultural Marketing Service of the U.S. 
Department of Agriculture.
    (b) Application means the application for Specialty Crop Block 
Grant Program--Farm Bill.
    (c) Enhancing the competitiveness of specialty crops means, but is 
not limited to: Research, food safety, food security, plant health 
programs, education, nutrition, trade enhancement, promotion, 
marketing, ``buy local'' programs, increased consumption, increased 
innovation, improved efficiency and reduced costs of distribution 
systems, environmental concerns and conservation, product development, 
and developing cooperatives.
    (d) Grant period means the period of time from when the grant 
agreement is signed to the completion of all SCBGP-FB projects 
submitted in the State plan.
    (e) Grantee means the government to which a grant is awarded and 
which is accountable for the use of the funds provided. The grantee is 
the entire legal entity even if only a particular component of the 
entity is designated in the grant agreement.
    (f) Indirect costs means those costs incurred for a common or joint 
purpose benefitting more than one cost objective, and not readily 
assignable to the cost objectives specifically benefitted, without 
effort disproportionate to the results achieved.
    (g) Outcome measure means an event or condition that is external to 
the project and that is of direct importance to the intended 
beneficiaries and/or the public.
    (h) Project means all proposed activities to be funded by the 
SCBGP-FB.
    (i) Specialty crop means fruit and vegetables, tree nuts, dried 
fruits, horticulture and nursery crops (including floriculture).
    (j) State means the fifty States, the District of Columbia, the 
Commonwealth of Puerto Rico, Guam, American Samoa, the United States 
Virgin Islands, and the Commonwealth of the Northern Mariana Islands.
    (k) State department of agriculture means the agency, commission, 
or department of a State government responsible for agriculture within 
the State.
    (l) Subgrantee means the government or other legal entity to which 
a subgrant is awarded and which is accountable to the grantee for the 
use of funds provided.

[[Page 51590]]

Sec.  1291.3  Eligible grant applicants.

    Eligible grant applicants are State departments of agriculture from 
the fifty states, the District of Columbia, the Commonwealth of Puerto 
Rico, Guam, American Samoa, the United States Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands.


Sec.  1291.4  Eligible grant project.

    (a) To be eligible for a grant, the project(s) must enhance the 
competitiveness of U.S. grown or U.S. territory grown eligible 
specialty crops, in either domestic or foreign markets.
    (b) To be eligible for a grant, the project(s) must be completed 
within three calendar years after the grant agreement prescribed in 
Sec.  1291.8 of this part is signed. The grant period is established by 
the longest approved project submitted in the State plan. However, for 
cause, an extension of the grant period not to exceed three years may 
be granted by AMS on a case by case basis with a written request from 
the State.
    (c) Projects should benefit the specialty crop industry and/or the 
public rather than a single organization, institution, individual, or 
commercial product. Single organizations, institutions, and individuals 
are eligible to participate as project partners.
    (d) Multi-state projects that address solutions to problems that 
cross state boundaries are eligible.


Sec.  1291.5  Restrictions and limitations on grant funds.

    (a) Grant funds may not be used to fund political activities in 
accordance with provisions of the Hatch Act (5 U.S.C. 1501-1508 and 
7321-7326).
    (b) Development or participation in lobbying activities pursuant to 
31 U.S.C. 1352 including costs of membership in organizations 
substantially engaged in lobbying are unallowable.
    (c) Grant funds shall supplement the expenditure of State funds in 
support of specialty crops grown in that State, rather than replace 
State funds.
    (d) Grantees and subgrantees must comply with 7 CFR Part 3015.


Sec.  1291.6  Completed application.

    Completed applications shall be clear and succinct and shall 
include the following documentation satisfactory to AMS.
    (a) One SF-424 ``Application for Federal Assistance''.
    (b) One SF-424A ``Budget Information-Non-Construction Programs.'' 
This form is required for applications submitted after September 30, 
2008.
    (c) One SF-424B ``Assurances-Non-Construction Program.''
    (d) Completed applications must also include one State plan to show 
how grant funds will be utilized to enhance the competitiveness of 
specialty crops. The state plan shall include the following for each 
project:
    (1) Cover page and granting processes. Include the point of contact 
and lead agency for administering the plan. If outreach was performed 
to specialty crop producers, including socially disadvantaged and 
beginning farmers of specialty crops regarding the SCBGP-FB, provide a 
description of the affirmative steps taken to perform this outreach to 
these groups. The description should include the methods used for 
identifying these groups and the methods used to reach out to them. 
Identify if an award was made to either a socially disadvantaged or 
beginning farmer. If outreach to these groups was not performed, 
explain why not. Indicate if a competitive process was used to solicit 
and evaluate grant proposals from all interested parties. If a 
competitive process was not used to solicit and evaluate grant 
proposals, explain why not. This paragraph (d)(1) is required for 
applications submitted after September 30, 2008.
    (2) Project title and abstract. Include the title of the project 
and an abstract of 200 or fewer words.
    (3) Project purpose. Clearly state the purpose of the project. 
Describe the specific issue, problem, interest, or need to be 
addressed. Explain why the project is important and timely. If a 
proposal builds on a previous SCBGP or SCBGP-FB project, indicate 
clearly how the new proposal complements previous work. Indicate if the 
proposal will be or has been submitted to another Federal grant 
program.
    (4) Potential impact. Discuss the number of people or operations 
affected, the intended beneficiaries of each project, and/or potential 
economic impact if such data are available and relevant to the project.
    (5) Expected Measurable Outcomes. Describe at least one distinct, 
quantifiable, and measurable outcome-oriented objective that directly 
and meaningfully supports the project's purpose. The measurable 
outcome-oriented objective must define an event or condition that is 
external to the project and that is of direct importance to the 
intended beneficiaries and/or the public. Outcome measures may be long 
term that exceed the grant period. Describe how performance toward 
meeting outcomes will be monitored. For applications submitted after 
September 30, 2008, include a performance-monitoring plan to describe 
the process of collecting and analyzing data to meet the outcome-
oriented objectives.
    (6) Work Plan. Explain briefly the activities that will be 
performed to accomplish the objectives of the project. Be clear about 
who will do the work. Include appropriate time lines.
    (7) Budget Narrative. Indirect costs should not exceed 10 percent 
of any proposed budget. Provide a justification if indirect costs 
exceed 10 percent. For applications submitted after September 30, 2008, 
provide in sufficient detail information about the budget categories 
listed on SF-424A to demonstrate that grant funds are being expended on 
eligible grant activities that meet the purpose of the program.
    (8) Project Oversight. Describe the oversight practices that 
provide sufficient knowledge of grant activities to ensure proper and 
efficient administration.
    (9) Project Commitment. Describe how all grant partners commit to 
and work toward the goals and outcome measures of the proposed 
project(s).
    (10) Multi-State Projects. If the project is a multi-state project, 
describe how the States are going to collaborate effectively with 
related projects with one state assuming the coordinating role. 
Indicate the percent of the budget covered by each State.


Sec.  1291.7  Review of grant applications.

    (a) Applications will be reviewed and approved or rejected as 
appropriate for conformance with the provisions in Sec.  1291.6 of this 
part. AMS may request the applicant provide additional information or 
clarification.
    (b) Incomplete applications as of the deadline for submission will 
not be considered.


Sec.  1291.8  Grant agreements.

    (a) After approval of a grant application, AMS will enter into a 
grant agreement with the State department of agriculture.
    (b) AMS grant agreements will include at a minimum the following:
    (1) The projects in the approved State plan.
    (2) Total amount of Federal financial assistance that will be 
advanced.
    (3) Beginning and end dates of the grant agreement period.
    (4) Terms and conditions pursuant to which AMS will fund the 
project(s).


Sec.  1291.9  Unobligated funds.

    (a) States who do not apply for or do not request all available 
funding during the specified grant application period will forfeit all 
or that portion of available funding not requested for that application 
year.

[[Page 51591]]

    (b) Funds not obligated will be allocated, by a date as determined 
by the Secretary, pro rata to the remaining States who applied during 
the specified grant application period to be solely expended on 
projects previously approved in their State plan.


Sec.  1291.10  Reporting and oversight requirements.

    (a) An annual performance report will be required of all State 
departments' of agriculture within 90 days after the completion of the 
first year of the project(s), until the expiration date of the grant 
agreement. If the grant period is one year or less, then only a final 
performance report is required (See paragraph (b) of this section). The 
annual performance report shall include the following:
    (1) Activities Performed. Briefly summarize activities performed, 
targets, and/or performance goals achieved during the reporting period 
to meet measurable outcomes for each project.
    (2) Problems and Delays. Note unexpected delays or impediments for 
each project.
    (3) Future Project Plans. Outline work to be performed during the 
next reporting period for each project.
    (4) Funding Expended To Date. Comment on the level of grant funds 
expended to date for each project.
    (b) A final performance report will be required of all State 
departments of agriculture within 90 days following the expiration date 
of the grant period. The final progress report shall include the 
following:
    (1) Project Summary. An outline of the issue, problem, interest, or 
need for each project.
    (2) Project Approach. How the issue or problem was approached via 
each project.
    (3) Goals and Outcomes Achieved. How the performance goals and 
measurable outcomes were achieved for each project(s). If outcome 
measures were long term, summarize the progress that has been made 
towards achievement.
    (4) Beneficiaries. Description and quantitative data for the number 
of people or operations that have benefited from the project's 
accomplishments, and/or the potential economic impact of each project.
    (5) Lessons Learned. Lessons learned, results, conclusions, for 
each project. If outcome measures were not achieved, identify and share 
the lessons learned to help expedite problem-solving.
    (6) Contact Person. List the contact person for each project with 
telephone number and email address.
    (7) Additional Information. Include other relevant project 
information available (e.g. publications, Web sites, photographs).
    (c) A final SF-269A ``Financial Status Report (Short Form)'' or SF-
269 ``Financial Status Report (Long Form)'' if the project(s) had 
program income, is required within 90 days following the expiration 
date of the grant period.
    (d) AMS will monitor States, as it determines necessary, to assure 
that projects are completed in accordance with the approved State plan. 
If AMS, after reasonable notice to a State, and opportunity to be 
heard, finds that there has been a failure by the State to comply 
substantially with any provision or requirement of the State plan, AMS 
may disqualify, for one or more years, the State from receipt of future 
grants under the SCBGP.
    (e) States shall diligently monitor performance to ensure that time 
schedules are being met, project work within designated time periods is 
being accomplished, and other performance measures are being achieved.


Sec.  1291.11  Audit requirements.

    Each year that a State receives a grant under the SCBGP-FB, the 
State is required to conduct an audit of the expenditures of SCBGP-FB 
funds. If the Single Audit Act applies to an eligible grantee, the 
State shall submit the annual audit results to AMS within 30 days after 
completion of the audit. If the Single Audit Act does not apply, the 
State shall conduct an audit of all SCBGP-FB funds no later than 60 
days after the end date of the grant agreement. The State shall submit 
to AMS not later than 30 days after completion of the audit, a copy of 
the audit results.

    Dated: August 28, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-20486 Filed 9-3-08; 8:45 am]
BILLING CODE 3410-02-P