[Federal Register Volume 77, Number 187 (Wednesday, September 26, 2012)]
[Rules and Regulations]
[Pages 59085-59087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-23599]


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DEPARTMENT OF EDUCATION

34 CFR Chapter IV


Final Waivers and Extensions of Project Periods; American Indian 
Vocational Rehabilitation Services Program

[Catalog of Federal Domestic Assistance (CFDA) Number: 84.250C]

AGENCY: Rehabilitation Services Administration, Office of Special 
Education and Rehabilitative Services, Department of Education.

ACTION: Final waivers and extensions of project periods.

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SUMMARY: The Secretary waives the regulations that generally limit 
project periods to 60 months and that restrict project period 
extensions involving the obligation of additional Federal funds. As a 
result, for the 60-month projects initially funded in fiscal year (FY) 
2007 under the AIVRS program, the Secretary is extending the project 
periods until September 30, 2013.

DATES: This notice of final waivers and extensions of the project 
periods is effective September 26, 2012.

FOR FURTHER INFORMATION CONTACT: August Martin, U.S. Department of 
Education, 400 Maryland Avenue SW., room 5049, Potomac Center Plaza 
(PCP), Washington, DC 20202-2800. Telephone: (202) 245-7410.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll-free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: On July 25, 2012, the Department published a 
notice in the Federal Register (77 FR 43560) inviting comments on the 
Department's proposal to make certain AIVRS grants effective for more 
than 60 months under the authority of Section 121(b)(3) of the 
Rehabilitation Act of 1973, as amended (the Act). The Secretary 
proposed to waive the requirements of 34 CFR 75.250, which generally 
limit project periods to 60 months, and of 34 CFR 75.261(c)(2), which 
restrict project period extensions involving the obligation of 
additional Federal funds. In that notice, the Secretary also proposed 
to extend the project period for the eight AIVRS grantees from October 
1, 2012, through September 30, 2013. The proposed waivers and 
extensions would enable the eight AIVRS grantees to request, and 
continue to receive, Federal funds beyond the 60-month limitation set 
by 34 CFR 75.250.
    There are no substantive differences between the notice of proposed 
waivers and extensions and this notice of final waivers and extensions.

Public Comment

    In the July 25, 2012, notice for the AIVRS program, the Secretary 
invited comments on the effect these proposed waivers and extensions 
may have on the AIVRS program and on potential applicants for grant 
awards under any new AIVRS notice inviting applications, should there 
be one. We received comments from 13 commenters, 10 of which supported 
the Department's proposal to waive regulations at 34 CFR 75.250 and 34 
CFR 75.261(c)(2) restricting project period extensions past 60 months 
and restricting extensions that require additional Federal funds and to 
extend the project period for 8 AIVRS grantees beyond September 30, 
2012, so that they could continue to receive Federal funds from October 
1, 2012, through September 30, 2013.
    Generally, we do not address technical and other minor changes. In 
addition, we do not address general comments that raise concerns not 
directly related to the proposed waivers and extensions.

Analysis of Comments and Changes

    Comment: Three commenters raised a concern that a decision not to 
run a competition in FY 2012 would preclude tribes that are interested 
in responding to a notice inviting applications from having the 
opportunity to apply for a grant and referred to the human capital and 
fiscal resources that were expended in anticipation of a new 
competition.
    Discussion: The Department has proposed to extend the current AIVRS 
grantees in response to a recommendation made by the U.S. Government 
Accountability Office (GAO) in a report titled, ``Indian Issues: 
Federal Funding for Non-Federally Recognized Tribes,'' released on May 
9, 2012, for the Department to review its interpretation of 
``reservation'' used in determining eligibility under the AIVRS

[[Page 59086]]

program.\1\ GAO raised concerns about the eligibility of State-
recognized tribes that are not located on State reservations but rather 
are located on a defined and contiguous area of land where there is a 
concentration of tribal members and in which the tribe is providing 
structured activities and services as identified in their grant 
application. In order to respond to GAO's recommendation, we believe it 
is advisable to take time to review carefully the eligibility 
requirements for this program and to consider the Department's options. 
Therefore, in order to maintain the status quo while the Department 
undergoes this review, we have decided to maintain funding to existing 
AVIRS grantees and not to hold a new competition in FY 2012.
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    \1\ The GAO report is available at www.gao.gov/products/GAO-12-348.
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    Human capital and fiscal resources that were expended in 
anticipation of a potential competition in FY 2012 have not been 
wasted. Application requirements for a FY 2013 competition are not 
likely to differ substantially from those in previous competitions. As 
such, application materials developed in anticipation of a potential 
competition in FY 2012 should be able to be used in the FY 2013 
competition.
    Changes: None.
    Comment: Two commenters expressed concern about the potential 
effect of the proposed action on the next grant competition. One 
commenter asked whether the action to extend funding for current 
programs will decrease the number of grants available to be awarded 
when a competition is held. The other commenter asked whether this 
proposal to suspend the current practice of annual grant competitions 
will place more of our AIVRS programs in competition with each other.
    Discussion: The AIVRS program is funded through a set-aside of the 
funds appropriated for the Vocational Rehabilitation (VR) State Grants 
program. Assuming a set-aside of at least 1.2 percent of the VR 
appropriation in FY 2013, the Department's action to extend these 
grants would not decrease the total number of grants awarded under the 
AIVRS program. At the end of FY 2013, 32 grants, including the 8 grants 
that would be extended under this notice, will conclude their current 
projects. Pending the availability of funds, the Department anticipates 
holding a grant competition in FY 2013 that would fund a minimum of 32 
grants with project periods that would begin in FY 2014. The Department 
would have awarded the same total number of new grants over the two 
year period if it had conducted separate competitions in fiscal years 
2012 and 2013. Thus, this action will not decrease the number of grants 
awarded nor should it result in increased competition among AIVRS 
programs.
    Changes: None.
    Comment: One commenter asked if tribes will be provided reasonable 
and adequate time and notice to fully and properly plan for and 
complete grant submissions.
    Discussion: We anticipate that the FY 2013 competition will be 
announced in time to provide adequate notice and time for applicants to 
prepare and submit applications.
    Changes: None.
    Comment: One commenter asked whether applicants would have adequate 
and reasonable time to prepare a grant submission this year, if these 
proposed waivers and extensions do not move forward.
    Discussion: The AIVRS program will not conduct a grant competition 
this year because we believe it is advisable to take time to carefully 
review the eligibility requirements for this program, in response to 
GAO's recommendation, before holding a new competition. The Department 
will, instead, waive the regulations that generally limit project 
periods to 60 months and restrict project period extensions involving 
the obligation of additional Federal funds. The Department plans to 
review requests for continuation awards from the eight grantees based 
on the 2007 notice inviting applications (NIA) and, where appropriate, 
extend the currently-funded projects through September 30, 2013.
    Changes: None.

Background

    The eight AIVRS grantees, selected based on the 2007 AIVRS NIA 
published on March 14, 2007 (72 FR 11851), provide vocational 
rehabilitation services to American Indians with disabilities who 
reside on or near Federal or State reservations as authorized by 
section 121 of the Rehabilitation Act of 1973, as amended (the Act) (29 
U.S.C. 741).
    The project period for the eight AIVRS grantees was scheduled to 
end September 30, 2012. However, section 121(b)(3) of the Act provides 
that the Department has the authority to make an AIVRS grant effective 
for more than 60 months, pursuant to prescribed regulations. Therefore, 
for these eight AIVRS grantees, the Secretary waives the requirements 
of 34 CFR 75.250 and 34 CFR 75.261(c)(2) which limit project periods to 
60 months and restrict project period extensions that involve the 
obligation of additional Federal funds. The Secretary also extends the 
current project period for the eight AIVRS grantees funded in FY 2007 
until September 30, 2013. Finally, the Department will not announce a 
new AIVRS competition or make new awards in FY 2012.
    This action allows the eight AIVRS grantees to request continuation 
funding in FY 2012. Decisions regarding annual continuation awards will 
be based on the program narratives, budgets, budget narratives, and 
program performance reports submitted by these eight AIVRS grantees and 
on the requirements of 34 CFR 75.253. Any activities to be carried out 
during the year of continuation awards would have to be consistent 
with, or be a logical extension of, the scope, goals, and objectives of 
each grantee's application as approved following the 2007 AIVRS 
competition. The 2007 AIVRS NIA will continue to govern their projects 
during the extension year. These current AIVRS grantees may request 
continuation awards in FY 2012 for project periods through FY 2013.

Waiver of Delayed Effective Date

    The Administrative Procedure Act requires that a substantive rule 
must be published at least 30 days before its effective date, except as 
otherwise provided for good cause (5 U.S.C. 553(d)(3)). We have not 
made any substantive changes to the proposal. The Secretary has 
therefore determined to waive the delayed effective date to ensure 
timely continuation grants to the entities affected.

Regulatory Flexibility Act Certification

    The Secretary certifies that this final extension of the project 
period and waiver will not have a significant economic impact on a 
substantial number of small entities. The only entities that will be 
affected are the current grantees and any other potential applicants.

Paperwork Reduction Act of 1995

    The final waivers and extensions of project periods do not contain 
any information collection requirements.

Intergovernmental Review

    This program is not subject to the requirements of Executive Order 
12372 and the regulations in 34 CFR part 79.

Accessible Format

    Individuals with disabilities can obtain this document in an 
accessible format (e.g., braille, large print,

[[Page 59087]]

audiotape, or compact disc) on request to the contact person listed 
under FOR FURTHER INFORMATION CONTACT.

Electronic Access to This Document

    The official version of this document is the document published in 
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can view this document, as well as all other documents of this 
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by the Department.

    Dated: September 20, 2012.
Melody Musgrove,
Director of Special Education Programs, delegated the authority to 
perform the functions and duties of the Assistant Secretary for Special 
Education and Rehabilitative Services.
[FR Doc. 2012-23599 Filed 9-25-12; 8:45 am]
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