[Federal Register Volume 82, Number 240 (Friday, December 15, 2017)]
[Proposed Rules]
[Pages 59564-59574]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26762]


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DEPARTMENT OF THE INTERIOR

Fish and Wildlife Service

50 CFR Part 80

[Docket No. FWS-HQ-WSR-2017-0002; 91400-5110-POLI-7B; 91400-9410-POLI-
7B]
RIN 1018-BA33


Financial Assistance: Wildlife Restoration, Sport Fish 
Restoration, Hunter Education and Safety

AGENCY: Fish and Wildlife Service, Interior.

ACTION: Proposed rule.

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SUMMARY: We, the U.S. Fish and Wildlife Service (Service), are 
proposing to update regulations for the Pittman-Robertson Wildlife 
Restoration and the Dingell-Johnson Sport Fish Restoration programs and 
subprograms, based on comments we received during the last rulemaking 
that were never resolved, existing guidance that we intend to move to 
regulation, and updates requested by States to improve the processes 
under license certification. We believe these changes will clarify and 
simplify the regulations and help ensure consistency in administering 
the programs across the Nation.

DATES: We will accept comments received or postmarked on or before 
February 13, 2018.

ADDRESSES: Comment submission: You may submit comments, identified by 
docket number FWS-HQ-WSR-2017-0002, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments to docket number FWS-
HQ-WSR-2017-0002.
     U.S. mail: Public Comments Processing, Attn: Docket No. 
FWS-HQ-WSR-2017-0002; U.S. Fish and Wildlife Service; Division of 
Policy, Performance, and Management Programs; MS: BPHC; 5275 Leesburg 
Pike, Falls Church, VA 22041-3803.
     Hand Delivery/Courier: U.S. Fish and Wildlife Service; 
Division of Policy, Performance, and Management Programs; 5275 Leesburg 
Pike, Falls Church, VA 22041-3803.
    We will not accept email or faxes. All submissions received must 
include the agency name and docket number or Regulation Identifier 
Number (RIN) for this rulemaking. We will post all comments received 
without change to http://www.regulations.gov, including any personal 
information provided. For detailed instructions on submitting comments 
and other information on the

[[Page 59565]]

rulemaking process, see the ``Public Comments'' heading below in 
SUPPLEMENTARY INFORMATION.
    Background information: For access to the docket to read background 
documents or comments received, go to http://www.regulations.gov and 
search for docket number FWS-HQ-WSR-2017-0002.

FOR FURTHER INFORMATION CONTACT: Lisa Van Alstyne, Wildlife and Sport 
Fish Restoration Program, Division of Policy and Programs, U.S. Fish 
and Wildlife Service, 703-358-1942.

SUPPLEMENTARY INFORMATION:

Background

    The U.S. Fish and Wildlife Service's (Service) Wildlife and Sport 
Fish Restoration Program (WSFR) annually apportions to States more than 
$1 billion for programs and subprograms under the Pittman-Robertson 
Wildlife Restoration Act (50 Stat. 917, as amended; 16 U.S.C. 669-
669k), and the Dingell-Johnson Sport Fish Restoration Act (64 Stat. 
430, as amended; 16 U.S.C. 777-777n, except 777e-1 and g-1) (Acts). We 
are proposing to update the regulations at title 50 part 80 of the Code 
of Federal Regulations (CFR), which is ``Financial Assistance: Wildlife 
Restoration, Sport Fish Restoration, Hunter Education and Safety.'' We 
published the last revision of these regulations in 2011. In conducting 
the rulemaking process for the 2011 rule, we received comments from the 
proposed rule that we did not resolve in the final rule. Since the 2011 
update to the regulations, we have also worked with States and other 
partners to identify information from Service Manual chapters, 
Memoranda, Director's Orders, interim guidance, and other guidance that 
we intend to include, as appropriate, in regulation.
    This proposed rule is the first of several rulemaking documents 
that we will publish over an extended period, based on a phased plan 
developed by a team of Federal and State representatives. The phased-
approach will allow us to make changes and address topics while giving 
States and the public additional opportunities for review and comment. 
The primary users of these regulations are the fish and wildlife 
agencies of the 50 States; the Commonwealths of Puerto Rico and the 
Northern Mariana Islands; the territories of Guam, the U.S. Virgin 
Islands, and American Samoa; and the District of Columbia (DC). We use 
``State'' or ``States'' in this document to refer to any or all of 
these jurisdictions, except that the District of Columbia receives 
funds only under the Dingell-Johnson Sport Fish Restoration Act. The 
Pittman-Robertson Wildlife Restoration Act does not authorize funding 
for the District of Columbia. The term ``the 50 States'' applies only 
to the 50 States of the United States.
    The Acts established a hunting- and angling-based user-pay and 
public-benefit system in which the State fish and wildlife agencies 
receive formula-based funding from a continuing appropriation. Industry 
partners pay excise taxes on equipment and gear manufactured for 
purchase by hunters, anglers, boaters, archers, and recreational 
shooters. The Service apportions funds to the State fish and wildlife 
agencies, and the agencies contribute matching funds. These regulations 
tell States how they may receive annual apportionments from the 
Wildlife Restoration Account (16 U.S.C. 669(b)) and the Sport Fish 
Restoration and Boating Trust Fund (26 U.S.C. 9504), how they may use 
hunting and fishing license fees, and what requirements States must 
follow when participating in the programs under the Acts. We also 
address the State component of the Outreach and Communications 
subprogram. The programs and subprograms under the Acts give financial 
assistance to State fish and wildlife agencies to restore or manage 
wildlife and sport fish; offer hunter-education, hunter-development, 
hunter-recruitment, and hunter-safety programs; develop and increase 
recreational boating access; enhance the public's understanding of 
water resources, aquatic-life forms, and sport fishing; and develop 
responsible attitudes and ethics toward aquatic and related 
environments.
    The Catalog of Federal Domestic Assistance at http://www.cfda.gov 
describes these programs under 15.605, 15.611, and 15.626.

Phased Approach to Rulemaking

    We published a proposed revision to the regulations at 50 CFR part 
80 on June 10, 2010 (75 FR 32877). We published the final rule on 
August 1, 2011 (76 FR 46150). In 2015, we shared with our State 
partners a list of topics that we generated from unresolved comments on 
that prior rulemaking and other non-regulatory guidance. From June 
through September 2015, we hosted 12 webinars that were open to States, 
Service Regions, and other interested parties. Each webinar addressed a 
few topics from the list and gave participants an opportunity to learn 
more about the reasons the topics are of concern, offer opinions on 
approaches we have considered, and share their knowledge and 
experiences. WSFR used information gathered from these webinars to help 
guide development of a draft proposed rule. In November 2015, we posted 
the draft proposed rule for informal comments prior to official 
rulemaking. States informed us that the volume of changes and the level 
of complexity of many of the topics made it difficult for them to 
review and respond effectively. At a meeting in April 2016, WSFR 
proposed to the Association of Fish & Wildlife Agencies (AFWA), the 
Joint Federal/State Task Force for Financial Assistance Policy, and the 
Federal Aid Coordinators Working Group a cooperative approach to 
scheduling rulemaking, which led to forming a Federal/State 50 CFR part 
80 Schedule Development Team.
    The result of this effort is a plan to make changes to 50 CFR part 
80 through four separate rulemakings. Each round of rulemaking will 
make changes to the rule to address concerns that have already been 
vetted and resolved and will now be included in regulation, as well as 
a few complex topics. This approach will distribute the workload in 
multiple ways, allowing for more focused involvement and well-developed 
comments. You may find further information on the schedule and topics 
at https://fawiki.fws.gov/display/5C8SDT. The proposed schedule is:

------------------------------------------------------------------------
                             Year 1                          Year 2
         ---------------------------------------------------------------
  Round    1
           *   2   3   4   5   6   7  8  9  10  11  12  1  2  3  4  5  6
------------------------------------------------------------------------
      1   PR              FR
------------------------------------------------------------------------
      2           PR                  F
                                       R
------------------------------------------------------------------------
      3                                  P                 F
                                          R                 R
------------------------------------------------------------------------

[[Page 59566]]

 
      4                                             PR                 F
 
------------------------------------------------------------------------
PR means proposed rule; FR means final rule.
* ``1'' indicates the month the proposed rule publishes, not necessarily
  January. The pattern will follow as closely as possible, considering
  sufficient time for States to comment and the Service to respond,
  while ensuring no overlap in rulemakings.

Topics Under Consideration as Part of Phased Rulemaking

    In addition to the specific amendments that we are proposing 
elsewhere in this document, we are also requesting comments and 
information on some topics identified as being more complex or having 
the potential to elicit a wide range of opinion or approaches that 
could impact the proposed rules we issue later in this phased 
rulemaking process. The Service is asking you to respond to the 
questions we ask or suggestions we make. This will help us to 
understand how your State addresses the associated issues and how we 
can make changes that will improve the ability of fish and wildlife 
agencies to implement successful projects. We ask you to tell us if you 
support a suggested change or approach, as well as comment on suggested 
changes or approaches you do not support. When responding, we ask you 
to give the reasoning behind your comments to help us better understand 
your position. When your comments include a legal reference, please 
specifically cite the legal document. We recommend you use citation 
formats in Association of Legal Writing Directors (ALWD) Guide to Legal 
Citation or Bluebook: A Uniform System of Citation as your guide. If 
possible, please give a location where we may access the document 
electronically.
    The terms you, your, and I refer to a State fish and wildlife 
agency that applies for or receives a grant under the Acts, their 
subgrantees, or interested members of the public who comment. The terms 
we, us, and our refer to the Service or the Service's Wildlife and 
Sport Fish Restoration Program (WSFR).
    Our focus audience for these topics consists of the State fish and 
wildlife agencies who receive funding under the Wildlife Restoration 
and Sport Fish Restoration Act (Acts) and those interested in the 
activities of these agencies. We offer definitions and approaches to 
address a certain topic as a starting point to allow you to know what 
we are considering and to respond. We ask you to (1) tell us if you 
agree with an approach, (2) suggest alternatives, (3) advise us of 
potential obstacles or concerns, (4) give examples of scenarios that 
would help inform us, and (5) offer your knowledge and experience to 
assist us in understanding how our rulemaking can best support wildlife 
management goals and objectives.
    We have posted pertinent information about these topics and the 
development of 50 CFR part 80 at https://fawiki.fws.gov/display/5C8SDT/50+CFR+80+Update. This website includes copies of documents that we 
reference and information about scheduled webinars. These topics are 
open for discussion and you may contact the WSFR Policy Branch 
([email protected]) or other WSFR staff with whom you work prior 
to or after making comments. You may view other comments at 
www.regulations.gov by searching for docket number FWS-HQ-WSR-2017-
0002.

Definitions

Wildlife

    A definition for ``wildlife'' is not in the Act and was not in the 
regulations until 1960, at which time the term was simply defined as 
``wild birds and wild mammals.'' The definition did not appear in the 
2008 final rule (73 FR 43120, July 24, 2008), but the Service 
reintroduced the term with a new definition in the 2010 proposed rule 
(75 FR 32877, June 10, 2010), and the term was codified by the 2011 
final rule (76 FR 46150, August 1, 2011). The definition of 
``wildlife'' set forth in 2011 remains the definition in 50 CFR 80.2 
today.
    We received many comments on our proposed rule to revise 50 CFR 
part 80 in 2010 (75 FR 32877, June 10, 2010). Among those comments were 
some from States that sell licenses to hunt or fish species that did 
not meet the definition of wildlife. These comments suggested that we 
consider adjusting the definition to allow State fish and wildlife 
agencies to use funds under the Acts for managing these other species. 
We did not make changes to the proposed definition in the 2011 final 
rule, as we wanted to gather comments from all State fish and wildlife 
agencies as to whether we should consider expanding the definition to 
include other species.
    We ask you to consider a possible alternative to the current 
definition at 50 CFR 80.2 that would include other species for which a 
State fish and wildlife agency sells a license to hunt. We ask your 
response to these questions:
    1. Should we expand the definition of ``wildlife'' to include other 
species for which a State fish and wildlife agency sells a license to 
hunt? This would include any indigenous or naturalized species other 
than birds or mammals that meet the existing criteria and for which a 
State issues a license for the legal taking of the species.
    2. If this option is acceptable, should we consider including a 
requirement that the hunting of the species does not interfere with or 
oppose the legal hunting of birds and mammals already in the 
definition?
    3. If this option is acceptable, should we consider including the 
requirement that the State Director approve the inclusion of that 
species as meeting the definition of ``wildlife'' for that State? 
Should the Service Director approve?
    4. If we should expand the definition, do you have comments on the 
suggested new definition?
    5. Are there advantages or concerns we should consider?

Law Enforcement

    We received a comment during the 2011 rulemaking asking that we 
define ``law enforcement.'' Law enforcement is an ineligible activity 
under the Acts and the current regulations. States have told us that 
law enforcement officers sometimes conduct activities that do not 
involve enforcing laws and that are beneficial to the State fish and 
wildlife agency for fish and wildlife management. Agencies may 
interpret the current regulations to mean that any activities done by 
law enforcement personnel are not eligible. Without a definition for 
law enforcement, agencies do not have clear, consistent direction.
    We request your comments on how to define law enforcement and if 
any activities conducted by law enforcement personnel may be eligible 
using funds under the Acts. Please note that license revenue may be 
used for any activities that support the administration of the State 
fish and wildlife agency as described at 50 CFR 80.10(c), which could 
include some law enforcement activities. WSFR proposed the following 
definition for informal comment in

[[Page 59567]]

2015, and we offer it in this document for further comment and 
development. We ask you to comment on whether you think this definition 
is sufficient to guide States and WSFR regarding eligible and 
ineligible activities, and if the proposed definition is lacking, 
please describe what additional considerations you recommend.
    Law enforcement means the act of developing regulations, issuing 
punitive citations or tickets for infractions of the law, or assisting 
with inspections and other enforcement activities that have the 
potential to result in the issuance of penalties.

Comprehensive Management System

    State fish and wildlife agencies may use one of two methods of 
operation for managing financial assistance. One method is project-by-
project grants, and the other is the Comprehensive Management System 
(CMS). Currently, five States utilize the CMS method, leaving the 
majority using the project-by-project method. A CMS grant is not the 
same as a ``block grant,'' and Federal compliance requirements apply to 
eligible projects. States using a comprehensive plan link programs, 
financial systems, human resources, goals, products, and services in 
developing a strategic plan and carrying it out through an operational 
planning process. The process must allow an opportunity for public 
participation, clearly define projects to the level where grant 
managers can evaluate for compliance, and include approaches for 
evaluating results. The plan also assesses the current, projected, and 
desired status of fish and wildlife.
    We intend to define a comprehensive management plan and specify 
that the planning period must be at least 5 years and use a minimum 15-
year projection of the desires and needs of the State's citizens. We 
would emphasize requirements for public participation in developing the 
plan. We would describe that a CMS grant funds all or part of your 
plan, you receive one grant at the beginning of the grant period, and 
the grant period consists of segments funded by annual apportionments. 
We would describe compliance requirements. Some compliance requirements 
may be completed when the plan is approved, but discrete projects in 
the plan, changing conditions or considerations, and other factors 
would require additional compliance prior to projects being initiated. 
We would describe situations that would require additional compliance 
actions. Plans will include projects using funding under the Acts and 
projects using other sources of funding. Service staff often must 
conduct extensive compliance for projects that have limited funding 
under the Acts, so we are considering a funding threshold under which 
States or other Federal entities will be responsible for compliance.
    We request your comments on whether we need to give more detail on 
the level of public participation required, type of notification to 
citizens, level of budget detail, compliance, and reporting.

Loss of Control/Diversion

    We often receive questions from States as to what the Service means 
when we use the term ``control'' in 50 CFR part 80. We use the term 
``control'' in conjunction with funding under the Acts, license 
revenues, real and personal property, third-party agreements, and more. 
States ask us to define the parameters for what constitutes a loss of 
control and what actions would lead to a diversion of license revenue 
or grant funds. States also ask us about control of real property when 
certain real property rights are held by other entities. We address 
Loss of Control and Disposal of Real Property in our Service manual at 
522 FW 20, but this information is limited. Our Regional offices 
routinely respond to issues involving loss of control and diversion of 
funds under the Acts, which leads us to consider the need for clear 
information on control and diversion.
    We understand that this topic is complicated and that each State 
has a different perception of the needs, limits, and use of control 
under the Acts, and the meaning of control when certain situations 
present themselves. We intend to address this subject in a future 
proposed rule and ask State fish and wildlife agencies to comment on 
how this issue has affected your agency, what challenges you have 
encountered, and what concerns you wish us to address. We ask that you 
give us examples of scenarios that could be difficult to manage without 
further clarification. We ask you to tell us if your State has 
encountered situations where an outside entity has dictated, or 
attempted to dictate, the scope of work of the State fish and wildlife 
agency and what the response has been. We are also interested in 
hearing about situations that involve oil, gas, and mineral extraction 
on or under State fish and wildlife agency-owned and -managed lands. We 
encourage States to discuss this topic with your Regional WSFR offices.

Allowable Recreational and Commercial Activities

    We address allowable recreational and commercial activities at 
Service manual chapters 522 FW 21 (https://www.fws.gov/policy/522fw21.html) and 522 FW 22 (https://www.fws.gov/policy/522fw22.html). 
We intend to move this policy information into regulations for those 
programs under the Acts. We welcome any comments you have on the 
information in the chapters, the approach, and making these policy 
provisions regulatory.

Proposed Rule

    This document is not a full update of the proposed changes we plan 
to make to the regulations in 50 CFR part 80, but rather we address 
only certain topics at this time. State and Federal representatives 
proposed and accepted the list of topics we address in this proposed 
update to the regulations.

Definitions

     We define the terms ``asset'' and ``obligation'' in 
response to requests for clarifying these terms.
     We revise the definition of ``capital improvement'' to 
raise the monetary threshold from $10,000 to $25,000.
     We add definitions for the terms ``geographic location,'' 
``structure,'' and ``technical assistance.''
     We revise the definition for the term ``match'' to include 
that match may be from a Federal source if a statute authorizes it. We 
revise the definition for the term ``real property'' to make the 
definition consistent with other guidance.

License Certification

    We collaborated with the Association of Fish and Wildlife Agencies 
(AFWA) to recommend changes to the regulations at Subpart D--
Certification of License Holders that would address States' concerns 
over the current language. In September 2016, AFWA voted in support of 
the changes. In November 2016, the Joint Federal/State Task Force for 
Federal Assistance Policy proposed changes to the draft that will 
encourage all States to adopt the new method for all licenses as soon 
as possible. In December 2016, AFWA again voted in support of the 
changes.
    The major proposed change is in the method for determining the 
minimum standard needed to count a license holder. The current method 
requires a minimum of $1 of net revenue per year. State fish and 
wildlife agencies determine this amount through various cost accounting 
methods, tracking costs of multiple types of licenses, tracking and 
applying administrative costs, and

[[Page 59568]]

comparing multiyear licenses to annual licenses. The proposed method 
simply requires a minimum of $2 of revenue (no net) to the State fish 
and wildlife agency for each privilege to hunt or fish, for each year 
the license is valid. The major effect is in how States count multiyear 
licenses. The proposed changes will allow a State to count a multiyear 
license for each year that it meets the standard and all other 
requirements of the subpart.

Eligible Activities

    We propose to revise Sec. Sec.  80.50 and 80.51 to:
    a. Add ``technical assistance'' as an eligible activity.
    b. Add information on payments in lieu of taxes.
    c. Expand the guidance on leased vs. purchased equipment.
    d. Add at Sec.  80.50(c)(6) that buying real property for firearm 
and archery ranges is eligible under the Enhanced Hunter Education and 
Safety program.

Other

    Additional proposed changes to 50 CFR part 80 in this document 
include the following:
    a. We revise Sec.  80.56 to clarify that projects may have 
different components and still be substantial in character and design.
    b. We revise Sec.  80.82 to separate ``Purpose'' and 
``Objectives.''
    c. We add a new section (at Sec.  80.97) to incorporate guidance on 
how grantees and subgrantees may charge equipment-use costs to a WSFR 
grant.
    d. We update Sec.  80.120 to include hunter education course fees 
as program income.
    e. We update Sec. Sec.  80.123 and 80.124 to address program income 
banking.
    f. We add a new section (at Sec.  80.134) to state that a lease is 
real property.
    g. We add a new section (at Sec.  80.136) to address prescribed 
fires on land acquired under the Acts. (This proposed change is in 
response to requests from States to clarify the standards.)
    h. We revise current Sec.  80.137 (proposed to be moved to Sec.  
80.139) to remove the reference to 43 CFR 12.71, which no longer exists 
as 43 CFR part 12 has been removed and reserved from the CFR.
    i. We add Sec.  80.140 to replace the reference to 43 CFR 12.71 at 
current Sec.  80.137 (proposed Sec.  80.139).
    j. We update Sec.  80.160 for terms and references.

Public Comments

    We will accept comments on all the issues addressed that we 
describe in this preamble and that are set forth in the amendatory 
instructions. Prior to issuing a final rule on this proposed action, we 
will take into consideration all comments and any additional 
information we receive. Such information may lead to a final rule that 
differs from this proposal. All comments and recommendations, including 
names and addresses, will become part of the administrative record.
    You may submit your comments and materials by one of the methods 
listed in ADDRESSES. Comments must be submitted to http://www.regulations.gov before 11:59 p.m. (Eastern Time) on the date 
specified in DATES. We will not consider hand-delivered comments that 
we do not receive, or mailed comments that are not postmarked, by the 
date specified in DATES. Please note that comments posted to http://www.regulations.gov are not immediately viewable. When you submit a 
comment, the system receives it immediately. However, the comment will 
not be publicly viewable until we post it, which might not occur until 
several days after submission.
    We will post your entire comment on http://www.regulations.gov. 
Before including personal identifying information in your comment, you 
should be aware that we may make your entire comment--including your 
personal identifying information--publicly available at any time. While 
you can ask us in your hardcopy comment to withhold your personal 
identifying information from public review, we cannot guarantee that we 
will be able to do so. Comments submitted electronically to http://www.regulations.gov will be posted in their entirety.
    In addition, comments and materials we receive, as well as 
supporting documentation we used in preparing this proposed rule, will 
be available for public inspection in two ways:
    (1) You can view them on http://www.regulations.gov. In the Search 
box, enter FWS-HQ-WSR-2017-0002, which is the docket number for this 
rulemaking.
    (2) You can make an appointment, during normal business hours, to 
view the comments and materials in person at the U.S. Fish and Wildlife 
Service's headquarters office in Falls Church, VA (contact the person 
listed under FOR FURTHER INFORMATION CONTACT).

Required Determinations

Regulatory Planning and Review (Executive Orders 12866 and 13563)

    Executive Order 12866 provides that the Office of Information and 
Regulatory Affairs (OIRA) will review all significant rules. OIRA has 
determined that this rule is not significant.
    Executive Order 13563 reaffirms the principles of E.O. 12866 while 
calling for improvements in the nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory ends. 
The executive order directs agencies to consider regulatory approaches 
that reduce burdens and maintain flexibility and freedom of choice for 
the public where these approaches are relevant, feasible, and 
consistent with regulatory objectives. E.O. 13563 emphasizes further 
that regulations must be based on the best available science and that 
the rulemaking process must allow for public participation and an open 
exchange of ideas. We have developed this proposed rule in a manner 
consistent with these requirements.

Regulatory Flexibility Act (5 U.S.C. 601 et seq.)

    The Regulatory Flexibility Act requires an agency to consider the 
impact of rules on small entities, i.e., small businesses, small 
organizations, and small government jurisdictions. If there is a 
significant economic impact on a substantial number of small entities, 
the agency must perform a regulatory flexibility analysis. This 
analysis is not required if the head of an agency certifies the rule 
will not have a significant economic impact on a substantial number of 
small entities. The Small Business Regulatory Enforcement Fairness Act 
(SBREFA) amended the Regulatory Flexibility Act to require Federal 
agencies to state the factual basis for certifying that a rule will not 
have a significant economic impact on a substantial number of small 
entities.
    We have examined this proposed rule's potential effects on small 
entities as required by the Regulatory Flexibility Act. We have 
determined that this proposed rule does not have a significant impact 
and does not require a regulatory flexibility analysis because it:
    a. Gives information to State fish and wildlife agencies that 
allows them to apply for and administer financial assistance more 
easily, more efficiently, and with greater flexibility. Only State fish 
and wildlife agencies may receive Wildlife Restoration, Sport Fish 
Restoration, and Hunter Education program and subprogram grants.
    b. Addresses changes in law and regulation. This helps applicants 
and grantees by making the regulations

[[Page 59569]]

consistent with current authorities and standards.
    c. Rewords and reorganizes the regulations to make them easier to 
understand.
    d. Allows small entities to voluntarily become subgrantees of 
agencies, and any impact on these subgrantees would be beneficial.
    The Service has determined that the proposed changes primarily 
affect State governments and any small entities affected by the changes 
voluntarily enter into mutually beneficial relationships with a State 
agency. They are primarily concessioners and subgrantees, and the 
impact on these small entities will be very limited and beneficial in 
all cases.
    Consequently, we certify that because this proposed rule will not 
have a significant economic effect on a substantial number of small 
entities, a regulatory flexibility analysis is not required.
    In addition, this proposed rule is not a major rule under SBREFA (5 
U.S.C. 804(2)) and will not have a significant impact on a substantial 
number of small entities because it will not:
    a. Have an annual effect on the economy of $100 million or more;
    b. Cause a major increase in costs or prices for consumers, 
individual industries, Federal, State, or local government agencies, or 
geographic regions; or
    c. Have significant adverse effects on competition, employment, 
investment, productivity, innovation, or the ability of U.S.-based 
enterprises to compete with foreign-based enterprises.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1501 et seq.) 
establishes requirements for Federal agencies to assess the effects of 
their regulatory actions on State, local, and tribal governments and 
the private sector. The Act requires each Federal agency, to the extent 
permitted by law, to prepare a written assessment of the effects of 
proposed regulations with Federal mandates that may result in the 
expenditure by State, local, and tribal governments, in aggregate, or 
by the private sector, of $100 million or more (adjusted annually for 
inflation) in any 1 year. We have determined the following under the 
Unfunded Mandates Reform Act:
    a. As discussed in the determination for the Regulatory Flexibility 
Act, this proposed rule will not have a significant economic effect on 
a substantial number of small entities.
    b. The regulation does not require a small government agency plan 
or any other requirement for expending local funds.
    c. The programs governed by the current regulations and enhanced by 
the proposed changes potentially assist small governments financially 
when they occasionally and voluntarily participate as subgrantees of an 
eligible agency.
    d. The proposed rule clarifies and improves upon the current 
regulations allowing State, local, and tribal governments and the 
private sector to receive the benefits of financial assistance funding 
in a more flexible, efficient, and effective manner.
    e. Any costs incurred by a State, local, or tribal government or 
the private sector are voluntary. There are no mandated costs 
associated with the proposed rule.
    f. The benefits of grant funding outweigh the costs. The Federal 
Government may legally provide up to 100 percent for Puerto Rico and 
DC. The Federal Government will also waive the first $200,000 of match 
for each grant to the Commonwealth of the Northern Mariana Islands and 
the territories of Guam, the U.S. Virgin Islands, and American Samoa. 
Of the 50 States and 6 other jurisdictions that voluntarily are 
eligible to apply for grants in these programs each year, all 
participate. This is clear evidence that the benefits of this grant 
funding outweigh the costs.
    g. This proposed rule will not produce a Federal mandate of $100 
million or greater in any year, i.e., it is not a ``significant 
regulatory action'' under the Unfunded Mandates Reform Act.

Takings

    This proposed rule will not have significant takings implications 
under E.O. 12630 because it will not have a provision for taking 
private property. Therefore, a takings implication assessment is not 
required.

Federalism

    This proposed rule will not have sufficient Federalism effects to 
warrant preparing a federalism summary impact statement under E.O. 
13132. It would not interfere with the States' ability to manage 
themselves or their funds. We work closely with the States 
administering these programs. They helped us identify those sections of 
the current regulations needing further consideration and new issues 
that prompted us to develop a regulatory response.

Civil Justice Reform

    The Office of the Solicitor has determined under E.O. 12988 that 
the rule will not unduly burden the judicial system and meets the 
requirements of sections 3(a) and 3(b)(2) of the Order. The proposed 
rule will help grantees because it:
    a. Updates the regulations to reflect changes in policy and 
practice and recommendations received during the past 5 years;
    b. Makes the regulations easier to use and understand by improving 
the organization and using plain language;
    c. Modifies the final rule to amend 50 CFR part 80 published in the 
Federal Register at 76 FR 46150 on August 1, 2011, based on subsequent 
experience; and
    d. Adopts recommendations on new issues received from State fish 
and wildlife agencies. We will review all comments on this proposed 
rule and consider all suggestions when preparing the final rule for 
publication.

Paperwork Reduction Act (PRA)

    This proposed rule does not contain new information collection 
requirements that require approval under the PRA (44 U.S.C. 3501 et 
seq.). OMB reviewed and approved the U.S. Fish and Wildlife Service 
application and reporting requirements associated with the Wildlife 
Restoration, Sport Fish Restoration, and Hunter's Education financial 
assistance programs and assigned OMB Control Number 1018-0109, which 
expires November 30, 2018. An agency may not conduct or sponsor and you 
are not required to respond to a collection of information unless it 
displays a currently valid OMB control number.

National Environmental Policy Act

    We have analyzed this proposed rule under the National 
Environmental Policy Act (42 U.S.C. 4321 et seq.), 43 CFR part 46, and 
part 516 of the Departmental Manual. This rule is not a major Federal 
action significantly affecting the quality of the human environment. An 
environmental impact statement/assessment is not required due to the 
categorical exclusion for administrative changes given at 43 CFR 
46.210(i).

Government-to-Government Relationship With Tribes

    We have evaluated potential effects on federally recognized Indian 
tribes under the President's memorandum of April 29, 1994, 
``Government-to-Government Relations with Native American Tribal 
Governments'' (59 FR 22951), E.O. 13175, and 512 DM 2. We have 
determined that there are no potential effects. This proposed rule

[[Page 59570]]

will not interfere with the tribes' ability to manage themselves or 
their funds.

Energy Supply, Distribution, or Use (E.O. 13211)

    E.O. 13211 addresses regulations that significantly affect energy 
supply, distribution, and use, and requires agencies to prepare 
Statements of Energy Effects when undertaking certain actions. This 
rule is not a significant regulatory action under E.O. 12866 and does 
not affect energy supplies, distribution, or use. Therefore, this 
action is not a significant energy action and no Statement of Energy 
Effects is required.

List of Subjects in 50 CFR Part 80

    Fish, Grant programs, Natural resources, Reporting and 
recordkeeping requirements, Signs and symbols, Wildlife.

Proposed Regulation Promulgation

    For the reasons discussed in the preamble, we propose to amend 
title 50 of the Code of Federal Regulations, part 80, as follows:

PART 80--ADMINISTRATIVE REQUIREMENTS, PITTMAN-ROBERTSON WILDLIFE 
RESTORATION AND DINGELL-JOHNSON SPORT FISH RESTORATION ACTS

0
1. The authority citation for part 80 is revised to read as follows:

    Authority: 16 U.S.C. 669-669k and 777-777n, except 777e-1 and g-
1.

Subpart A--General

0
2. Amend Sec.  80.2 by:
0
a. Adding a definition for ``Asset'';
0
b. Revising the definition of ``Capital improvement'';
0
c. Adding a definition for ``Geographic location'';
0
d. Revising the definition of ``Match'';
0
e. Adding a definition for ``Obligation'';
0
f. Revising the definition of ``Real property'';
0
g. Adding a definition for ``Structure''; and
0
h. Adding a definition for ``Technical assistance''.
    The additions and revisions read as follows:


Sec.  80.2  What terms do I need to know?

* * * * *
    Asset means all tangible and intangible real and personal property 
of monetary value.
    Capital improvement means:
    (1) A structure that costs at least $25,000 to build or install; or
    (2) The alteration or repair of a structure or the replacement of a 
structural component, if it increases the structure's useful life by at 
least 10 years or its market value by at least $25,000.
* * * * *
    Geographic location means an area defined with enough specificity 
for a reviewer to find the parcel location on a United States 
Geological Survey quadrangle map or its equivalent.
* * * * *
    Match means the value of any non-Federal in-kind contributions and 
the portion of the costs of a grant-funded project or projects not 
borne by the Federal Government, unless a Federal statute authorizes 
match using Federal funds.
    Obligation has two meanings depending on the context:
    (1) When a grantee of Federal financial assistance obligates funds 
by incurring costs for purposes of the grant, the definition at 2 CFR 
200.71 applies.
    (2) When the Service sets aside funds for disbursement immediately 
or at a later date in the formula-based programs under the Acts, the 
definition at 50 CFR 80.91 applies.
* * * * *
    Real property means one, several, or all interests, benefits, and 
rights inherent in the ownership of a parcel of land or water. Examples 
of real property include fee and some leasehold interests, conservation 
easements, and mineral rights.
    (1) A parcel includes (unless limited by its legal description) the 
space above and below it and anything physically and firmly attached to 
it by a natural process or human action. Examples include standing 
timber, other vegetation (except annual crops), buildings, roads, 
fences, and other structures.
    (2) A parcel may also have rights attached to it by a legally 
prescribed procedure. Examples include water rights or an access 
easement that allows the parcel's owner to travel across an adjacent 
parcel.
    (3) The legal classification of an interest, benefit, or right 
depends on its attributes rather than the name assigned to it. For 
example, a grazing ``lease'' is often a type of personal property known 
as a license, which is described in the definition of ``personal 
property'' in this section.
* * * * *
    Structure means a building or anything permanently attached to the 
land by human action so that removal would cause material damage to the 
land or the structure itself.
* * * * *
    Technical assistance means providing fish, wildlife, and habitat 
information and advice to target segments of the public, including 
landowners or other citizens and beneficiaries. This may include 
collecting or distributing information on fish and wildlife presence 
and activities, advising on appropriate public response to fish and 
wildlife interactions, and directing landowners on how they may support 
fish and wildlife practices on private lands. Technical assistance does 
not include actual on-the-ground management activities.
* * * * *
0
3. Revise subpart D, including the heading, to read as follows:

Subpart D--License Holder Certification

Sec.
80.30 Why must an agency certify the number of paid license holders?
80.31 How does an agency certify the number of paid license holders?
80.32 What is the certification period?
80.33 How does an agency decide who to count as paid license holders 
in the annual certification?
80.34 Must a State fish and wildlife agency receive a minimum amount 
of revenue for each license holder counted?
80.35 What additional requirements apply to multiyear licenses?
80.36 May an agency count license holders in the annual 
certification if the agency receives funds from the State or another 
entity to cover their license fees?
80.37 May the State fish and wildlife agency offer a discount on a 
license when combined with another license or privilege?
80.38 May an entity other than the State fish and wildlife agency 
offer a discount on a license or offer a free license under any 
circumstances?
80.39 What must an agency do if it becomes aware of errors in its 
certified license data?
80.40 May the Service recalculate an apportionment if an agency 
submits revised data?
80.41 May the Director correct a Service error in apportioning 
funds?

Subpart D--License Holder Certification


Sec.  80.30  Why must an agency certify the number of paid license 
holders?

    A State fish and wildlife agency must certify the number of people 
having paid licenses to hunt and paid licenses to fish because the 
Service uses these data in statutory formulas to apportion funds in the 
Wildlife Restoration and Sport Fish Restoration programs among the 
States.

[[Page 59571]]

Sec.  80.31  How does an agency certify the number of paid license 
holders?

    (a) A State fish and wildlife agency certifies the number of paid 
license holders by responding to the Director's annual request for the 
following information:
    (1) The number of people who have paid licenses to hunt in the 
State during the State-specified certification period (certification 
period); and
    (2) The number of people who have paid licenses to fish in the 
State during the certification period.
    (b) The agency director or his or her designee:
    (1) Must certify the information at paragraph (a) of this section 
in the format that the Director specifies;
    (2) Must provide documentation to support the accuracy of this 
information at the Director's request;
    (3) Is responsible for eliminating multiple counting of the same 
individuals in the information that he or she certifies; and
    (4) May use statistical sampling, automated record consolidation, 
or other techniques approved by the Director for this purpose.
    (c) If an agency director uses statistical sampling to eliminate 
multiple counting of the same individuals, he or she must ensure that 
the sampling is complete by the earlier of the following:
    (1) Five years after the last statistical sample; or
    (2) Before completing the first certification following any change 
in the licensing system that could affect the number of license 
holders.


Sec.  80.32  What is the certification period?

    A certification period must:
    (a) Be 12 consecutive months;
    (b) Correspond to the State's fiscal year or license year;
    (c) Be consistent from year to year unless the Director approves a 
change; and
    (d) End at least 1 year and no more than 2 years before the 
beginning of the Federal fiscal year in which the apportioned funds 
first become available for expenditure.


Sec.  80.33  How does an agency decide who to count as paid license 
holders in the annual certification?

    (a) A State fish and wildlife agency must count only those people 
who have a license issued:
    (1) In the license holder's name; or
    (2) With a unique identifier that is traceable to the license 
holder, who must be verifiable in State records.
    (b) A State fish and wildlife agency must count a person holding a 
single-year license only once in the certification period in which the 
license is sold. (Single-year licenses are valid for any length of time 
less than 2 years.)
    (c) A person is counted as a license holder even if the person is 
not required to have a paid license or is unable to hunt or fish.
    (d) A person having more than one license to hunt or to fish 
because the person either voluntarily obtained them or was required to 
in order to obtain a different privilege may be counted only once each 
certification period as either a hunter or an angler, or both.
    (e) A person who has a license that allows the license holder only 
to trap animals or only to engage in commercial fishing or other 
commercial activities must not be counted.


Sec.  80.34  Must a State fish and wildlife agency receive a minimum 
amount of revenue for each license holder counted?

    (a) For the State fish and wildlife agency to count a license 
holder, the agency must establish that it receives:
    (1) A minimum of $2 for each year the license is valid, for either 
the privilege to hunt or the privilege to fish; and
    (2) A minimum of $4 for each year the license is valid for a 
combination license that gives privileges to both hunt and fish.
    (b) A State fish and wildlife agency must follow the requirement in 
paragraph (a) of this section for all licenses sold as soon as 
practical, but by no later than July 1, 2018.


Sec.  80.35  What additional requirements apply to multiyear licenses?

    The following additional requirements apply to multiyear licenses:
    (a) A State fish and wildlife agency must follow the requirement at 
Sec.  80.34(a) for all multiyear licenses sold before and after the 
date that the agency adopts the new standard, unless following the 
exception at paragraph (d) of this section.
    (b) If a valid license was not eligible to be counted in the annual 
license certification the year before adopting the standard at Sec.  
80.34(a), it must not be counted in any future certification.
    (c) If an agency is using an investment, annuity, or similar method 
to fulfill the net-revenue requirements of the version of Sec.  80.33 
that was effective from August 31, 2011, until [EFFECTIVE DATE OF THE 
FINAL RULE], the agency may discontinue that method and convert to the 
new method.
    (1) If the amount collected at the time of sale has not been spent, 
the agency must begin to use the new standard by applying the total 
amount the agency received at the time of sale.
    (2) If the amount collected at the time of sale has been spent, the 
agency must apply the new standard as if it were applicable at the time 
of sale. For example, if a single-privilege, multiyear license sold for 
$100 in 2012, and the agency adopts the new standard in 2018, then 4 
years have been used toward the amount received by the agency (4 years 
x $2 = $8) and the license holder may be counted for up to 46 more 
years ($100 -$8 = $92/$2 = 46).
    (d) An agency may continue to follow the requirements of the 
version of Sec.  80.33 that was effective from August 31, 2011, until 
[EFFECTIVE DATE OF THE FINAL RULE], for those multiyear licenses that 
were sold before the date specified at Sec.  80.34(b) if the agency:
    (1) Notifies the Director of the agency's intention to do so;
    (2) Describes how the new requirement will cause financial or 
operational harm to the agency when applied to licenses sold before the 
effective date of these regulations; and
    (3) Commits to follow the current standard for those multiyear 
licenses sold after the date specified at Sec.  80.34(b).
    (e) A multiyear license may be valid for either a specific or 
indeterminate number of years, but it must be valid for at least 2 
years.
    (f) The agency may count the license for all certification periods 
for which it received the minimum required revenue, as long as the 
license holder meets all other requirements of this subpart. For 
example, an agency may count a single-privilege, multiyear license that 
sells for $25 for 12 certification periods. However, if the license 
exceeds the life expectancy or the license is valid for only 5 years, 
it may be counted only for the number of years it is valid.
    (g) An agency may spend a multiyear license fee as soon as the 
agency receives it.
    (h) The agency must count only the licenses that meet the minimum 
required revenue for the license period based on:
    (1) The duration of the license in the case of a multiyear license 
with a specified ending date; or
    (2) Whether the license holder remains alive.
    (i) The agency must obtain the Director's approval of its proposed 
technique to decide how many multiyear-license holders remain alive in 
the certification period. Some examples of techniques are statistical 
sampling, life-expectancy tables, and mortality tables. The agency may

[[Page 59572]]

instead use 80 years of age as a default for life expectancy.


Sec.  80.36  May an agency count license holders in the annual 
certification if the agency receives funds from the State or another 
entity to cover their license fees?

    If a State fish and wildlife agency receives funds from the State 
to cover fees for some license holders, the agency may count those 
license holders in the annual certification only under the following 
conditions:
    (a) The State funds to cover license fees must come from a source 
other than hunting- and fishing-license revenue.
    (b) The State must identify funds to cover license fees separately 
from other funds provided to the agency.
    (c) The agency must receive at least the average amount of State-
provided discretionary funds that it received for the administration of 
the State's fish and wildlife agency during the State's 5 previous 
fiscal years.
    (1) State-provided discretionary funds are those from the State's 
general fund that the State may increase or decrease if it chooses to 
do so.
    (2) Some State-provided funds are from special taxes, trust funds, 
gifts, bequests, or other sources specifically dedicated to the support 
of the State fish and wildlife agency. These funds typically fluctuate 
annually due to interest rates, sales, or other factors. They are not 
discretionary funds for purposes of this part as long as the State does 
not take any action to reduce the amount available to its fish and 
wildlife agency.
    (d) The agency must receive and account for the State funds as 
license revenue.
    (e) The agency must issue licenses in the license holder's name or 
by using a unique identifier that is traceable to the license holder, 
who is verifiable in State records.
    (f) The license fees must meet all other requirements at 50 CFR 
part 80.


Sec.  80.37  May the State fish and wildlife agency offer a discount on 
a license when combined with another license or privilege?

    Yes. A State fish and wildlife agency may offer a discount on a 
license when combined with another license or privilege as long as the 
agency meets the rules for minimum revenue at Sec.  80.34 for each 
privilege.


Sec.  80.38  May an entity other than the State fish and wildlife 
agency offer a discount on a license or offer a free license under any 
circumstances?

    (a) An entity other than the agency may offer the public a license 
that costs less than the regulated price only if:
    (1) The license is issued to the individual according to the 
requirements at Sec.  80.33;
    (2) The amount received by the agency meets all other requirements 
in this subpart; and
    (3) The agency agrees to the amount of revenue it will receive.
    (b) An entity other than the agency may offer the public a license 
that costs less than the regulated price without the agency agreeing, 
but must pay the agency the full cost of the license.


Sec.  80.39  What must an agency do if it becomes aware of errors in 
its certified license data?

    A State fish and wildlife agency must submit revised certified data 
on paid license holders within 90 days after it becomes aware of errors 
in its certified data. The State may become ineligible to participate 
in the benefits of the relevant Act if it becomes aware of errors in 
its certified data and does not resubmit accurate certified data within 
90 days.


Sec.  80.40  May the Service recalculate an apportionment if an agency 
submits revised data?

    The Service may recalculate an apportionment of funds based on 
revised certified license data under the following conditions:
    (a) If the Service receives revised certified data for a pending 
apportionment before the Director approves the final apportionment, the 
Service may recalculate the pending apportionment.
    (b) If the Service receives revised certified data for an 
apportionment after the Director has approved the final version of the 
apportionment, the Service may recalculate the apportionment only if 
doing so would not reduce funds to other State fish and wildlife 
agencies.


Sec.  80.41  May the Director correct a Service error in apportioning 
funds?

    Yes. The Director may correct any error that the Service makes in 
apportioning funds.

Subpart E--Eligible Activities

0
4. Amend Sec.  80.50 by adding paragraphs (a)(9) through (11) and 
(c)(6) to read as follows:


Sec.  80.50  What activities are eligible for funding under the 
Pittman-Robertson Wildlife Restoration Act?

    (a) * * *
    (9) Give technical assistance.
    (10) Make payments in lieu of taxes on real property under the 
control of the State fish and wildlife agency when the payment is:
    (i) Required by State or local law; and
    (ii) Required for all State lands including those acquired with 
Federal funds and those acquired with non-Federal funds.
    (11) Acquire the use of equipment by leasing it, but purchase may 
be eligible if:
    (i) The grantee can justify that it is cost effective and that the 
equipment will be used for project purposes for its useful life; or if
    (ii) Leasing the equipment is not feasible.
* * * * *
    (c) * * *
    (6) Buy real property for firearm or archery ranges.
0
5. Amend Sec.  80.51(a) by adding paragraphs (a)(12) through (14) to 
read as follows:


Sec.  80.51  What activities are eligible for funding under the 
Dingell-Johnson Sport Fish Restoration Act?

* * * * *
    (a) * * *
    (12) Give technical assistance.
    (13) Make payments in lieu of taxes on real property under the 
control of the State fish and wildlife agency when the payment is:
    (i) Required by State or local law; and
    (ii) Required for all State lands including those acquired with 
Federal funds and those acquired with non-Federal funds.
    (14) Acquire the use of equipment by leasing it, but purchase may 
be eligible if:
    (i) The grantee can justify that it is cost effective and that the 
equipment will be used for project purposes for its useful life; or if
    (ii) Leasing the equipment is not feasible.
* * * * *
0
6. Revise Sec.  80.56 including the heading to read as follows:


Sec.  80.56  What does it mean for a project to be substantial in 
character and design?

    (a) Projects may have very different components and still be 
substantial in character and design.
    (b) A proposed project qualifies as substantial in character and 
design if it:
    (1) Describes a need consistent with the Acts;
    (2) States a purpose and sets measureable objectives, both of which 
you base on the need;
    (3) Uses a planned approach, appropriate procedures, and accepted 
principles of fish and wildlife conservation and management, research, 
or education; and
    (4) Is cost effective.

Subpart G--Application for a Grant

0
7. Amend Sec.  80.82 by:

[[Page 59573]]

0
a. Revising paragraph (c)(2) to read as set forth below;
0
b. Redesignating paragraphs (c)(3) through (13) as paragraphs (c)(4) 
through (14);
0
c. Adding a new paragraph (c)(3) to read as set forth below; and
0
d. Revising newly designated paragraphs (c)(9)(iv) and (v) and (10) to 
read as set forth below.


Sec.  80.82  What must an agency submit when applying for a project-by-
project grant?

* * * * *
    (c) * * *
    (2) Purpose. State the purpose and base it on the need. The purpose 
states the desired outcome of the proposed project in general or 
abstract terms.
    (3) Objectives. State the objectives and base them on the need. The 
objectives state the desired outcome of the proposed project in terms 
that are specific and quantified.
* * * * *
    (9) * * *
    (iv) Indicate whether the agency wants to treat program income that 
it earns after the grant period as license revenue or additional 
funding for purposes consistent with the grant terms and conditions or 
program regulations.
    (v) Indicate whether the agency wants to treat program income that 
the subgrantee earns as license revenue, additional funding for the 
purposes consistent with the grant or subprogram, or income subject 
only to the terms of the subgrant agreement.
    (10) Budget narrative.
    (i) Provide costs by project and subaccount with additional 
information sufficient to show that the project is cost effective. 
Agencies may obtain the subaccount numbers from the Service's Regional 
Division of Wildlife and Sport Fish Restoration.
    (ii) Describe any item that requires the Service's approval and 
estimate its cost. Examples are preaward costs, capital improvements, 
and acquiring land or equipment.
    (iii) Include a schedule of payments to finish the project if an 
agency proposes to use funds from two or more annual apportionments.
* * * * *
0
8. Amend Sec.  80.85 by revising paragraph (b)(2) to read as follows:


Sec.  80.85  What requirements apply to match?

* * * * *
    (b) * * *
    (2) Use the cost or value of an in-kind contribution to satisfy a 
match requirement if the cost or value has been or will be used to 
satisfy a match requirement of another Federal grant, cooperative 
agreement, or contract.
* * * * *
0
9. Amend subpart H by:
0
a. Redesignating Sec. Sec.  80.97 through 80.100 as Sec. Sec.  80.98 
through 80.101;
0
b. Adding a new Sec.  80.97 to read as follows; and
0
c. Revising newly designated Sec.  80.98 to read as follows:

Subpart H--General Grant Administration

* * * * *


Sec.  80.97  How may a grantee charge equipment use costs to a WSFR-
funded project?

    (a) A State fish and wildlife agency must establish and use 
equipment rates that reflect the local market, the type of equipment 
used on a project, and actual costs to own and operate the equipment. 
Agencies must calculate their own rates and not use general State 
rates.
    (b) State fish and wildlife agencies must not use a predetermined 
rate or schedule published by a Federal agency for equipment used on a 
WSFR grant. However, States may allow subgrantees to use either the 
agency equipment rate schedule or a regional rate schedule published by 
a Federal agency if WSFR approves the rate schedule and if the schedule 
reflects the standards at paragraph (a) of this section.
    (c) States may choose from three methods to recover the cost of the 
equipment it owns when used on a grant. You may use only one method for 
the same equipment use.
    (1) Indirect. Grantees may apply costs to the pool of indirect 
costs that are included either as part of the Negotiated Indirect Cost 
Rate Agreement or an allowed de minimis rate.
    (2) Direct. Using one of these approaches:
    (i) Direct cost to the grant. Grantees may charge the total cost of 
acquiring and operating equipment directly to a grant. Once the cost of 
acquiring equipment is recovered through a Federal grant, the grantee 
has been paid in full and cannot charge to any other Federal grant 
through any method. Operating costs may be charged to future grants. 
This practice may require States to establish separate use rates for 
equipment acquired as a direct cost to a Federal grant.
    (ii) Allocation to the grant using an internally developed rate. 
The grantee uses depreciation to develop a rate considering acquisition 
cost of the equipment and the cost to operate the equipment. The 
allocation must be based on a methodology that properly allocates costs 
based on benefits received.
    (3) Match/cost share. The grantee may charge costs as match. The 
guidance for properly applying equipment as match is at 2 CFR 
200.306(g)-(j) and 2 CFR 200.434. Guidance on operating cost items can 
be found at 2 CFR part 200, subpart E--Cost Principles.


Sec.  80.98  May an agency barter goods or services to carry out a 
grant-funded project?

    Yes. A State fish and wildlife agency may barter to carry out a 
grant-funded project. A barter transaction is the exchange of goods or 
services for other goods or services without the use of cash. Barter 
transactions are subject to the cost principles at 2 CFR part 200.
* * * * *

Subpart I--Program Income

0
10. Amend Sec.  80.120 by:
0
a. Redesignating paragraphs (b)(5) and (6) as paragraphs (b)(6) and 
(7);
0
b. Adding a new paragraph (b)(5) to read as set forth below;
0
c. Removing paragraph (c)(3); and
0
d. Redesignating paragraphs (c)(4) and (5) as paragraphs (c)(3) and 
(4).


Sec.  80.120  What is program income?

* * * * *
    (b) * * *
    (5) Hunter-education course fees;
* * * * *
0
11. Amend Sec.  80.123(a) by revising the last sentence to read as 
follows:


Sec.  80.123  How may an agency use program income?

    (a) * * * Program income must be spent within the grant period that 
it is earned and before requesting additional Federal funds.
* * * * *
0
12. Revise Sec.  80.124 to read as follows:


Sec.  80.124  How may an agency use unexpended program income?

    If a State fish and wildlife agency has unexpended program income 
on its final Federal financial report, it may use the income under a 
subsequent grant for any activity eligible for funding in the grant 
program that generated the income. The agency must spend program income 
before requesting additional payments for these activities.
0
13. Amend subpart J by:
0
a. Redesignating Sec.  80.134 as Sec.  80.135;
0
b. Adding a new Sec.  80.134 to read as set forth below;
0
c. Redesignating Sec. Sec.  80.136 through 80.138 as Sec. Sec.  80.137 
through 80.139;
0
d. Adding a new Sec.  80.136 to read as set forth below;
0
e. Revising newly designated Sec.  80.139 to read as set forth below; 
and

[[Page 59574]]

0
f. Adding new Sec.  80.140 to read as set forth below:

Subpart J--Real Property

* * * * *


Sec.  80.134  Is a lease considered real property or personal property?

    A lease of real property is a contract in which the fee owner 
transfers to a lessee the right of exclusive possession and is, 
therefore, treated as real property.
* * * * *


Sec.  80.136  What standards must an agency follow when conducting 
prescribed fire on land acquired with financial assistance under the 
Acts?

    The State fish and wildlife agency:
    (a) Must comply with existing State laws that require compliance 
with Federal, State, and local laws; and
    (b) Does not have to comply with the Federal National Wildfire 
Coordinating Group (NWCG) requirements unless the Service has 
substantial involvement in the project or these requirements are 
contained in State or local laws. The NWCG provides national leadership 
to develop, maintain, and communicate standards, guidelines, 
qualifications, training, and other capabilities that enable common 
operations on wildland fires among Federal and non-Federal entities.
* * * * *


Sec.  80.139  What if real property is no longer useful or needed for 
its original purpose?

    If the director of the State fish and wildlife agency and the 
Regional Director jointly decide that grant-funded real property is no 
longer useful or needed for its original purpose under the grant, the 
director of the agency must:
    (a) Propose another eligible purpose for the real property under 
the grant program and ask the Regional Director to approve this 
proposed purpose; or
    (b) Follow the regulations at 2 CFR 200.311 through 200.315 and 
Sec.  80.140 for instructions on treating proceeds from the disposition 
of real or personal property.


Sec.  80.140  When the Service approves the disposition of real 
property, equipment, intangible property, and excess supplies, what 
must happen to the proceeds of the disposition?

    (a) A grantee must refer to the regulations at 2 CFR 200.311 
through 200.315 before depositing, allocating, or using any proceeds of 
the disposition of real property, equipment, unused supplies exceeding 
$5,000 in total aggregate value, or intangible property.
    (b) A grantee must treat the proceeds of the disposition of real 
and personal property as license revenue if the grantee acquired the 
property with:
    (1) License revenue; or
    (2) Federal financial assistance funds matched by license revenue.
    (c) A grantee must use its share of the proceeds under a subsequent 
grant for any activity eligible for funding in the grant program that 
generated the income. The agency must spend proceeds of the disposition 
of real or personal property before requesting additional Federal 
payments for these activities.
    (d) A grantee must credit the Service, through that State's 
Regional Office, with the Federal share of the proceeds. The Regional 
Office determines how the Federal share of the proceeds will be 
allocated.

Subpart L--Information Collection

0
14. Amend Sec.  80.160 by revising paragraphs (b) and (c) to read as 
follows:


Sec.  80.160  What are the information collection requirements of this 
part?

* * * * *
    (b) The authorizations for information collection under this part 
are in the Acts and in 2 CFR part 200, ``Uniform Administrative 
Requirements, Cost Principles, and Audit Requirements for Federal 
Awards.''
    (c) Send comments on the information collection requirements to: 
U.S. Fish and Wildlife Service, Information Collection Clearance 
Officer, 5275 Leesburg Pike, Falls Church, Virginia 22041-3803.

    Dated: December 5, 2017.
Jason Larrabee,
Principal Deputy Assistant Secretary for Fish and Wildlife and Parks, 
Exercising the Authority of the Assistant Secretary for Fish and 
Wildlife and Parks.
[FR Doc. 2017-26762 Filed 12-14-17; 8:45 am]
 BILLING CODE 4333-15-P