[Federal Register Volume 74, Number 58 (Friday, March 27, 2009)]
[Rules and Regulations]
[Pages 13313-13318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-6816]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Rules
and Regulations
[[Page 13313]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1291
[Document Number AMS-FV-08-0057; FV-08-379]
RIN 0581-AC88
Specialty Crop Block Grant Program--Farm Bill
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule finalizes regulations to administer the Specialty
Crop Block Grant Program--Farm Bill (SCBGP-FB) to enhance the
competitiveness of specialty crops. This action finalizes eligibility
and application requirements and grant administration procedures for
the SCBGP-FB consistent with the Food, Conservation, 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).
DATES: Effective March 30, 2009.
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 subject to Executive Order 12372, which requires
intergovernmental consultation with state and local officials (See 7
CFR part 3015, subpart V).
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, Pub. L. 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.
Background
The AMS Fruit and Vegetable Program intends to 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 AMS.
Mandatory funding is expected to be made available to the Secretary
of Agriculture to provide specialty crop block grants of $49 million
for fiscal year 2009 and $55 million in each of
[[Page 13314]]
fiscal years 2010 through 2012, less USDA administrative costs. Each
fiscal year, the AMS intends to publish a notice in the Federal
Register 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-FB applications will be accepted from any state
department of agriculture, that 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.
Projects that support biobased products and bioenergy and energy
programs, including biofuels and other alternative uses for
agricultural and forestry commodities (development of biobased
products) should see the USDA energy Web site at: http://www.usda.gov/rus/index2/0208/EnergyPrograms.htm for information on how to submit
those projects for consideration to the energy programs supported by
USDA. Also, agricultural cooperatives, producer networks, producer
associations, local governments, nonprofit corporations, public health
corporations, economic development corporations, regional farmers'
market authorities and Tribal governments that are interested in
submitting projects that support farmers' markets that do not solely
enhance the competitiveness of eligible specialty crops should visit
the Farmers' Market Promotion Program (FMPP) Web site at: http://www.ams.usda.gov/fmpp for information on how to submit those projects
for consideration to FMPP.
Section 1291.4 prescribes that grant funds shall be used solely 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
Web site at http://www.ams.usda.gov/fv.
Section 1291.6 prescribes application procedures that include a
State plan to indicate how grant funds will be utilized solely to
enhance the competitiveness of specialty crops. For examples on how to
complete the application, please refer to the SCBGP-FB Web site at
http://www.ams.usda.gov/fv.
State departments of agriculture are required to describe their
outreach efforts to specialty crop producers, including socially
disadvantaged and beginning farmers, and describe their efforts to
conduct a competitive process to ensure maximum public input and
benefit.
Section 1291.9 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.
A technical correction was made to Sec. 1291.10(d) to add the
SCBGP-FB to the statement that 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 or SCBGP-FB.
An interim final rule was published in the Federal Register on
September 4, 2008 (73 FR 51585). Interested persons were invited to
submit written comments until November 3, 2008. During the comment
period, five comments were received. Comments were received from
specialty crop organizations, one state department of agriculture and a
university. AMS has considered each comment timely submitted, and they
are discussed below.
Summary of Comments Received
Completed Application
One commenter suggested that the language in Sec. 1291.6(d)(1),
``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'' does not adequately
comply with the statement in the Joint Explanatory Statement of the
Committee of Conference on pages 239-240 (Farm Bill Managers report)
requesting USDA to ``encourage each state making applications for
funding under the Specialty Crop Block Grant Program to provide a
written plan detailing the affirmative steps it will take to perform
outreach to specialty crop producers in the development of the state's
overall grant plan, including outreach to socially disadvantaged and
beginning farmers of specialty crops.'' The commenter requests the
language be revised to require an annual written plan and a
demonstration of real, iterative progress in funding projects that
benefit socially disadvantaged and beginning farmers of specialty
crops. While AMS believes the language in the interim final rule
adequately addresses the concerns raised in the Farm Bill Managers
report, AMS has amended Sec. 1291.6(d)(1) to require the affirmative
steps each state has made in conducting outreach to socially
disadvantaged and beginning farmers including how the these groups were
identified and the methods used to reach out to them. If steps were not
taken to conduct outreach to these groups, provide a justification why
not. In addition, definitions for both beginning farmers and socially
disadvantaged farmers have been added to Sec. 1291.2.
One commenter suggested the language in Sec. 1291.6(d)(1),
``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''
does not meet the intent of the statement in the Farm Bill Managers
report requesting USDA to ``encourage state departments of agriculture
to develop their grant plans through a competitive process in order to
ensure maximum public input and benefit.'' The commenter recommends the
language be amended to include a clear, positive statement of the
expectation that grants will generally be competitive, and that at a
minimum, a competitive award should be made by a peer review panel that
includes a full range of interested stakeholders and experts and that
any exceptions to this should be explained in full. AMS has evaluated
this comment and while this comment has merit, AMS believes that the
states should have flexibility in
[[Page 13315]]
establishing processes for conducting fair and equitable reviews of
grant proposals. Nonetheless, AMS is revising Sec. 1291.6(d)(1) to
request a description of the fair and equitable grant proposal review
process used by the state department of agriculture.
One commenter requested that amendments be made to Sec. 1291.6 to
comply with the Farm Bill Managers Report language urging the USDA to
``encourage state departments of agriculture to develop their grant
plans through a competitive process in order to ensure maximum public
input and benefit. The Managers expect the Secretary to ensure that
states conduct extensive outreach to interested parties through a
transparent process of receiving and considering public comment so that
grant applications are developed with proven and justified public
support, particularly when developing applications for multistate
projects.''
The commenter recommended that states be required to describe the
outreach conducted by the state to specialty crop stakeholders and
specialty crop organizations to determine their priority needs and to
solicit proposals; describe the criteria used by the state to evaluate
the projects proposed for funding, including but not limited to how
reviews are conducted; and provide a copy of the request for proposals
issued in a competitive process or provide justification for not using
a competitive process. These comments have merit and Sec. 1291.6(d)(1)
has been revised to require states to identify the methods used to
solicit proposals that meet specialty crop stakeholders needs and to
request a description of the fair and equitable grant proposal review
process. The commenter also recommended that states describe how the
projects funded will enhance productivity and competitiveness of
specialty crop agriculture in their state; and describe any
stakeholders and organizations that proposed and/or supported funded
projects. The State plan criteria described in Sec. 1291.6(d) requires
states to describe how funds will be utilized to enhance the
competitiveness of specialty crops and Sec. 1291.6(d)(9) requires
states to describe how all grant partners commit to and work towards
supporting the goals and outcomes of measures of the proposed projects.
Accordingly, no changes have been made as a result of this comment.
The commenter also recommended states delineate whether approved
projects received additional funding from state resources. The
Specialty Crops Competitiveness Act of 2004, as amended, does not
contain a statutory provision for a matching requirement from the
state. In addition, under Sec. 1291.5(c), grant funds shall supplement
the expenditure of state funds in support of specialty crops grown in
the state, rather than replace state funds. AMS includes this provision
in the terms and conditions in each grant agreement and expects to
focus on compliance by the states with this provision. Accordingly, no
changes have been made as a result of this comment.
The same commenter also requested that states describe ``to the
extent possible, how the projects will leverage other public and
private investments for maximum benefits.'' This comment has merit. AMS
is amending Sec. 1291.6(d)(1) to require states to include in the
description of the competitive grant process, the steps taken to
receive and consider public comment to identify specialty crop
stakeholders' priority needs in enhancing the competiveness of
specialty crops and the process used to conduct a fair and equitable
grant proposal review process. Therefore, in their grant application to
AMS, the states will be responsible for including projects that provide
maximum benefit to the specialty crop stakeholders based upon their
competitive grant process.
One commenter requested the states describe how funding is being
used to strictly promote specialty crops as defined under the Act for
projects directed at state marketing programs and to address the Farm
Bill Managers report which stated that, ``The Managers expect the
Secretary to carefully monitor the use of funds under grant awards to
ensure that funds are promoting specialty crops as defined under the
Specialty Crops Competitiveness Act of 2004 and are not being used in
generically cross-marketing other commodities which fall under state
marketing programs but are outside the scope of the Act's definition.''
This comment has merit and AMS has clarified Sec. 1291.4(a) to read,
``To be eligible for a grant, the project(s) must solely enhance the
competitiveness of U.S. grown or U.S. territory grown eligible
specialty crops, in either domestic or foreign markets''. In addition,
AMS clarified Sec. 1291.6(d)(3) to read, ``If funding is being
directed at a state marketing program, describe how the state will
ensure that funding is being used solely to enhance the competitiveness
of specialty crops as defined under Sec. 1291.2(n).''
One commenter recommended states identify if state property is
purchased with grant funds. Under Sec. 1291.6(b), for each proposed
project, states are required to submit form SF-424A, ``Budget
Information--Non-Construction Programs'', which requires a state to
specify dollar amounts for each budget category, including categories
for types of property. In addition, under Sec. 1291.6(d)(7), states
are required to provide for each project a detailed budget narrative
providing sufficient information about the budget categories listed on
the SF-424A to demonstrate that funds are being expended on eligible
grant activities. Furthermore, AMS has amended Sec. 1291.5 to add that
``capital expenditures for general purpose equipment, buildings, and
land are unallowable as direct and indirect charges'' and that
``capital expenditures for specialty purpose equipment are allowable as
direct costs, provided that items with a unit cost of $5000 or more
have the prior approval of AMS''. Section 1291.5 has also been amended
to add that ``rental costs of buildings and equipment are allowable as
direct costs in accordance with the cost principles in Subpart T of 7
CFR 3015.'' Sec. 1291.2 has also been amended to add a definition for
``capital expenditures'', ``equipment'', ``general purpose equipment'',
and ``specialty purpose equipment''.
One commenter recommended states describe how they are focusing on
multi-state and regional projects to comply with the Farm Bill Managers
Report language, ``The Managers therefore request that the Secretary
encourage state departments of agriculture to submit grant plans that
include multi-state and regional project proposals.'' AMS specifies
that multi-state projects are eligible projects under Sec. 1291.4(d)
and in the State plan under Sec. 1291.6(d)(10). In addition, we are
revising Sec. 1291.6(d)(1) to reiterate that multi-state projects are
eligible.
Eligible Grant Projects
One commenter suggests the language in Sec. 1291.6(d)(1),
``Identify if an award was made to either a socially disadvantaged or
beginning farmer'' be changed to, ``Identify if an award was made to an
association or organization to be used solely for the benefit of
socially disadvantaged or beginning farmers'' to conform with the
eligible grant project requirements under Sec. 1291.4(c). The language
under Sec. 1291.4(c) does not restrict or limit awards to single
individuals as subgrantees, but instead states they are eligible if
they participate with a project partner to execute a project that
benefits the specialty crop industry rather than a single individual.
Accordingly, no
[[Page 13316]]
changes have been made as a result of this comment.
One commenter requests further guidance from AMS on the eligibility
of projects where a state department of agriculture proposes to make
further awards of funding to subgrantees. AMS has revised Sec.
1291.6(d)(1) to require state departments of agriculture to include in
the description of the competitive grant process the steps taken to
solicit proposals that meet specialty crops stakeholders needs.
Purpose and Scope
One commenter recommended the inclusion of the following items to
the definition of ``enhancing the competitiveness'' of specialty crops:
value-added enterprises, entrepreneurship, local and regional food
systems, value chain development, marketing infrastructure, consumer
labeling, beginning farmers of specialty crops, socially disadvantaged
farmers of specialty crops, preservation of farmland dedicated to
specialty crop production, and extension. AMS has amended Sec. 1291.1
to encourage states to develop projects pertaining to specific issues
affecting the specialty crop industry.
Unobligated Funds
One commenter requested the language stating unobligated funds 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'' be amended to take into
consideration the Farm Bill Managers Report, which states that, ``The
Managers also request the Secretary to give strong consideration to
multi-state projects when reallocating unobligated block grant
funding.'' The language in Sec. 1291.9(b) reflects the statutory
language that appears in Sec. 10109(i) of the Food, Conservation, and
Energy Act of 2008. If a state that previously submitted an approved
multi-state project receives reallocated block grant funding, the state
could give consideration to reallocating funds to that previously
approved multi-state project, but not to any new multi-state projects.
Accordingly, no changes are made as a result of this comment.
Review of Grant Applications
One commenter requested further detail be provided in regard to
what is expected in the grant application in relation to the language
in Sec. 1291.7 that states, ``AMS may request the applicant provide
additional information or clarification''. This section states grant
applications will be reviewed and approved or rejected for conformance
with Sec. 1291.6, a provision that contains details on what
documentation should be included in the completed application.
Accordingly, no changes are made as a result of this comment.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.), AMS submitted the information collection included in
this rulemaking to the Office of Management and Budget (OMB) and
obtained approval of the information collection under OMB number 0581-
0248.
Comments were invited on the information collection in September 4,
2008, interim final rule. The deadline for comments was November 3,
2008. No comments were received on the information collection.
The estimated one-time annual cost for all state departments of
agriculture in providing information to the Specialty Crop Block Grant
Program-Farm Bill is $37,097. This total has been estimated by
multiplying 1,439 total burden hours by $25.78, an average of mean
hourly earnings by state and local government white collar (excluding
sales) employees. Data for computation of this hourly wage were
obtained from the U.S. Department of Labor Statistic's publication
``National Compensation Survey: Occupational Wages in the United
States, June 2005'', published August 2006 (Bulletin 2581). This
publication can also be found at the following Web site: http://www.bls.gov/ncs/ocs/sp/ncbl0832.pdf.
Effective Date
Because the Farm Bill requires the Secretary of Agriculture to make
available approximately $49 million in grant funds in fiscal year 2009,
which ends September 30, 2009, pursuant to 5 U.S.C. 553, it is found,
and determined, that good cause exists for not postponing the effective
date of this final rule until 30 days after publication in the Federal
Register.
List of Subjects in 7 CFR Part 1291
Agriculture, Reporting and recordkeeping requirements, Specialty
crop block grants.
0
Accordingly, the interim final rule adding 7 CFR part 1291 which was
published at 73 FR 51585 on September 4, 2008, is adopted as a final
rule with the following changes:
PART 1291--SPECIALTY CROP BLOCK GRANT PROGRAM--FARM BILL
0
1. The authority citation for part 1291 continues to read as follows:
Authority: 7 U.S.C. 1621 note, as amended.
0
2. Revise Sec. 1291.1 to read as follows:
Sec. 1291.1 Purpose and scope.
(a) 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.
(b) AMS encourages states to develop projects solely to enhance the
competitiveness of specialty crops pertaining to the following issues
affecting the specialty crop industry: increasing child and adult
nutrition knowledge and consumption of specialty crops; participation
of industry representatives at meetings of international standard
setting bodies in which the U.S. government participates; improving
efficiency and reducing costs of distribution systems; assisting all
entities in the specialty crop distribution chain in developing ``Good
Agricultural Practices'', ``Good Handling Practices'', ``Good
Manufacturing Practices'', and in cost-share arrangements for funding
audits of such systems for small farmers, packers and processors;
investing in specialty crop research, including organic research to
focus on conservation and environmental outcomes; enhancing food
safety; developing new and improved seed varieties and specialty crops;
pest and disease control; and sustainability.
0
3. Revise Sec. 1291.2 to read as follows:
Sec. 1291.2 Definitions.
(a) AMS means the Agricultural Marketing Service of the U.S.
Department of Agriculture.
(b) Application means the application for the Specialty Crop Block
Grant Program--Farm Bill (SCBGP-FB).
(c) Beginning farmer or rancher means an individual or entity who
has not operated a farm or ranch for more than 10 years and
substantially participates in the operation.
(d) Capital expenditures means expenditures for the acquisition
cost of capital assets (equipment, buildings,
[[Page 13317]]
land), or expenditures to make improvements to capital assets that
materially increase their value or useful life. Acquisition cost means
the cost of the asset including the cost to put it in place.
Acquisition cost for equipment, for example, means the net invoice
price of the equipment, including the cost of any modifications,
attachments, accessories, or auxiliary apparatus necessary to make it
usable for the purpose for which it is acquired. Ancillary charges,
such as taxes, duty, protective in transit insurance, freight, and
installation may be included in, or excluded from the acquisition cost
in accordance with the governmental unit's regular accounting
practices.
(e) Equipment means an article of nonexpendable, tangible personal
property having a useful life of more than one year and an acquisition
cost which equals or exceeds the lesser of the capitalization level
established by the governmental unit for financial statement purposes,
or $5000.
(f) General purpose equipment means equipment, which is not limited
to research, scientific or other technical activities. Examples include
office equipment and furnishings, telephone networks, information
technology equipment and systems, reproduction and printing equipment,
and motor vehicles.
(g) 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.
(h) 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.
(i) 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.
(j) 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.
(k) Project means all proposed activities to be funded by the
Specialty Crop Block Grant Program--Farm Bill.
(l) Socially disadvantaged farmer or rancher means a farmer or
rancher who is a member of a socially disadvantaged group. A ``Socially
Disadvantaged Group'' is a group whose members have been subject to
discrimination on the basis of race, color, national origin, age,
disability, and where applicable, sex, marital status, familial status,
parental status, religion, sexual orientation, genetic information,
political beliefs, reprisal, or because all or a part of an
individual's income is derived from any public assistance program.
(m) Special purpose equipment means equipment which is used only
for research, scientific, or other technical activities.
(n) Specialty crop means fruits and vegetables, tree nuts, dried
fruits, horticulture and nursery crops (including floriculture).
(o) 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.
(p) State department of agriculture means the agency, commission,
or department of a state government responsible for agriculture within
the state.
(q) 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.
0
4. Revise paragraph (a) of Sec. 1291.4 to read as follows:
Sec. 1291.4 Eligible grant project.
(a) To be eligible for a grant, the project(s) must solely enhance
the competitiveness of U.S. grown or U.S. territory grown eligible
specialty crops, in either domestic or foreign markets.
* * * * *
0
5. Add new paragraphs (e), (f), and (g) to Sec. 1291.5 to read as
follows:
Sec. 1291.5 Restrictions and limitations on grant funds.
* * * * *
(e) Capital expenditures for general purpose equipment, buildings,
and land are unallowable as direct and indirect charges.
(f) Capital expenditures for special purpose equipment are
allowable as direct costs, provided that items with a unit cost of
$5000 or more have the prior approval of AMS.
(g) Rental costs of buildings and equipment are allowable as direct
costs in accordance with the cost principles in subpart T of 7 CFR part
3015.
0
6. Revise Sec. 1291.6 to read as follows:
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) SF-424A ``Budget Information--Non-Construction Programs''
showing the budget for each project.
(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 solely to enhance the competitiveness
of specialty crops. The State plan shall include the following:
(1) Cover page and granting processes. Include the point of contact
and lead agency for administering the plan. Provide a description of
the affirmative steps taken to conduct outreach to socially
disadvantaged farmers and beginning farmers. Describe how these groups
were identified and the methods used to reach out to them. Identify if
an award was made to either a socially disadvantaged farmer or a
beginning farmer. If steps were not taken to conduct outreach to these
groups, provide a justification for why not. Provide a description of
the affirmative steps taken to conduct a competitive grant process.
Include the steps taken to conduct outreach to specialty crop
stakeholders to receive and consider public comment to identify their
priority needs in enhancing the competiveness of specialty crops.
Identify the methods used to solicit proposals that meet specialty crop
stakeholders' needs, including any focus on multi-state projects.
Include a description of the process used to review proposals in a fair
and equitable manner. State departments of agriculture may also provide
a copy of the issued request for proposals. If a competitive grant
process was not used, provide a justification why not.
(2) Project title and abstract. Include the title of the project
and an abstract of 200 or fewer words for each project.
(3) Project purpose. For each project, 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
funding is being directed at a state marketing program, describe how
the state will ensure that funding is being used solely to enhance the
competitiveness of specialty crops as defined in Sec. 1291.2(n). If a
project builds on a previous Specialty Crop Block Grant Program (SCBGP)
or SCBGP-FB project, indicate clearly how the new project compliments
previous work. For each project, indicate if the project will be or has
been submitted to or funded by another Federal or State grant program.
(4) Potential impact. Discuss the number of people or operations
affected, the intended beneficiaries of each
[[Page 13318]]
project, and/or potential economic impact if such data are available
and relevant to the project.
(5) Expected measurable outcomes. For each project, 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 each
project, include a performance-monitoring plan to describe the process
of collecting and analyzing data to meet the outcome-oriented
objectives.
(6) Work plan. For each project, 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. The limit on indirect costs, not to exceed 10
percent, will be published in a Federal Register notice each fiscal
year. Provide a justification if indirect costs exceed 10 percent or
exceed that fiscal year's limit as announced in the Federal Register.
Provide in sufficient detail information about the budget categories
listed on SF-424A for each project 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 for each project.
(9) Project commitment. Describe how all grant partners commit to
and work toward the goals and outcome measures of each 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.
0
7. Revise the last sentence of Sec. 1291.10(d) to read as follows:
Sec. 1291.10 Reporting and oversight requirements.
* * * * *
(d) * * * 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 or SCBGP-FB.
* * * * *
Dated: March 23, 2009.
Robert C. Keeney,
Acting Associate Administrator.
[FR Doc. E9-6816 Filed 3-26-09; 8:45 am]
BILLING CODE 3410-02-P