[Federal Register Volume 87, Number 168 (Wednesday, August 31, 2022)]
[Rules and Regulations]
[Pages 53363-53369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18743]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
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  Federal Register / Vol. 87, No. 168 / Wednesday, August 31, 2022 / 
Rules and Regulations  

[[Page 53363]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1499

RIN 0551-AB02


Food for Progress Program

AGENCY: Foreign Agricultural Service and Commodity Credit Corporation, 
U.S. Department of Agriculture (USDA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Commodity Credit Corporation (CCC) is amending the 
regulation governing the Food for Progress Program to update citations 
and make other technical and clarifying changes. The Office of 
Management and Budget (OMB) revised and renumbered certain provisions 
in its regulations regarding universal identifiers, the System for 
Award Management, and the uniform administrative requirements, cost 
principles, and audit requirements for Federal awards. This amendment 
makes technical corrections to the Food for Progress Program regulation 
to reflect the revised OMB regulations, and it makes other minor 
changes intended to improve the efficiency and effectiveness of the 
program.

DATES: This rule is effective August 31, 2022.

FOR FURTHER INFORMATION CONTACT: Ingrid Ardjosoediro, 202-720-3627, 
[email protected]. Persons with disabilities who require an 
alternative means for communication of information (e.g., Braille, 
large print, audiotape, etc.) should contact [email protected] or Cynthia Stewart (Reasonable 
Accommodation Coordinator), [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Food for Progress Program provides for the donation of U.S. 
agricultural commodities to developing countries and emerging 
democracies committed to introducing and expanding free enterprise in 
the agricultural sector. The commodities are generally sold on the 
local market and the proceeds are used to support agricultural 
development activities. The program has two principal objectives: to 
improve agricultural productivity and expand trade in agricultural 
products. The Food for Progress Program is authorized in section 1110 
of the Food Security Act of 1985 (also known as the Food for Progress 
Act of 1985) (7 U.S.C. 1736o).
    The Foreign Agricultural Service (FAS) implements the Food for 
Progress Program on behalf of CCC. FAS uses the regulation in 7 CFR 
part 1499, Food for Progress Program, in the administration of the Food 
for Progress Program. The previous version of the regulation was 
published as a final rule on August 28, 2019 (84 FR 45059).

Amendment of Regulation

    The Food for Progress Program regulation, 7 CFR part 1499, refers 
to and cites various sections of 2 CFR part 25, Universal Identifier 
and System for Award Management, and 2 CFR part 200, Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards. OMB amended 2 CFR parts 25 and 200 in August 2020 
and, as a result, CCC has identified a number of instances where 
technical corrections to 7 CFR part 1499 are necessary to update 
citations and make the language consistent with 2 CFR parts 25 and 200. 
FAS, on behalf of CCC, is amending the Food for Progress Program 
regulation to make these technical corrections.
    In addition, FAS is amending the Food for Progress Program 
regulation to make other changes that are technical or clarifying in 
nature and intended to improve the efficiency and effectiveness of the 
program, including the following:
    (1) Clarifying that other regulations that are generally applicable 
to grants and cooperative agreements of USDA, including the applicable 
regulations set forth in 2 CFR chapters I, II, and IV, also apply to 
the Food for Progress Program, to the extent that such regulations do 
not directly conflict with the provisions of 7 CFR part 1499 (7 CFR 
1499.1(c));
    (2) Providing further detail about the impact description that must 
be included as part of the strategic analysis in an application for an 
award under the Food for Progress Program (7 CFR 1499.4(b)(2));
    (3) Replacing ``interim evaluation'' with ``midterm evaluation'' to 
be consistent with the ``Monitoring and Evaluation Policy,'' issued by 
the Foreign Agricultural Service--Food Assistance Division, USDA (7 CFR 
1499.4(b)(6) and 1499.13(d));
    (4) Bringing the language in the regulation into better alignment 
with language in the Food for Progress Act of 1985 (7 CFR 
1499.5(e)(4));
    (5) Clarifying that the term ``point of entry'' refers to the point 
of entry of the donated commodities into the target country (7 CFR 
1499.6(e));
    (6) Providing that, when a recipient needs to use funds that have 
been advanced by CCC to pay approved expenses under an agreement, the 
recipient may transfer the funds from a bank account located in the 
United States, where they have been required by the regulation to be 
maintained, to a bank account in the target country (7 CFR 
1499.6(f)(7));
    (7) Clarifying that transportation of donated commodities to the 
designated discharge port or point of entry will be arranged for under 
an agreement, in the manner determined by CCC, by CCC or the recipient; 
and the recipient will be responsible for any transportation of the 
donated commodities after their arrival at the designated discharge 
port or point of entry for as long as the recipient has title to such 
donated commodities, except as may otherwise be provided in the 
agreement (7 CFR 1499.7(b) and (f));
    (8) Providing that a recipient may only use the services of a 
transportation company that is legally operating in the country in 
which it will be transporting the donated commodities and that would 
not have a conflict of interest in transporting the commodities (7 CFR 
1499.7(d));
    (9) Clarifying that CCC will arrange for transporting the donated 
commodities in accordance with 7 CFR 1499.7(b)(1) when CCC determines 
that it is applicable, regardless of where and when title to the 
donated commodities passes to a recipient; and that a recipient must 
maintain the donated commodities in good condition from the time that 
it takes possession of them at the designated discharge port, point of 
entry, or point of receipt from the originating carrier until their 
distribution, sale, or barter (7 CFR 1499.8(b) and (c));

[[Page 53364]]

    (10) Providing additional information about requirements regarding 
the acknowledgment of funding by USDA, the use of the USDA logo, and 
communications to the public, as well as the process for a recipient to 
request a waiver of compliance with one or more of such requirements (7 
CFR 1499.8(d) and (e));
    (11) Clarifying that the recipient's responsibility for the donated 
commodities, which becomes effective following transfer of title to the 
recipient, remains in effect for as long as the recipient has title to 
the commodities (7 CFR 1499.9(a) and (b) and 1499.10(a));
    (12) Providing that the recipient must report damage to or loss of 
donated commodities in accordance with one of three stated procedures, 
depending on the estimated amount of such damage or loss (7 CFR 
1499.9(b)(1));
    (13) Clarifying that the ``in excess of $5,000'' threshold amount 
that triggers the requirement to inspect damaged donated commodities 
refers to the amount of damage sustained by the donated commodities, 
not to the overall value of the donated commodities; and the value of 
the donated commodities prior to the damage must be determined on the 
basis of the costs incurred by CCC with respect to such commodities, as 
well as costs incurred by the recipient and paid by CCC (7 CFR 
1499.9(e));
    (14) Modifying the text previously in 7 CFR 1499.13(f) and moving 
it to 7 CFR 1499.13(c) to clarify that information covering the 
receipt, handling, and disposition of the donated commodities, and the 
receipt and use of any sale proceeds, etc., must be included in the 
performance reports (7 CFR 1499.13(c)(ii) and (iii)); and
    (15) Clarifying that the date of submission of the final 
expenditure report, as referenced in 2 CFR 200.334, will be the date of 
submission of the final financial report (7 CFR 1499.13(h)).

Notice and Comment

    This rule is being issued as a final rule without prior notice and 
opportunity for comment. This rule involves a matter relating to agency 
management or personnel or to public property, loans, grants, benefits, 
or contracts. The Administrative Procedure Act exempts such rules from 
the statutory requirement for prior notice and opportunity for comment 
(5 U.S.C. 553(a)(2)). Accordingly, this rule may be made effective less 
than 30 days after publication in the Federal Register.

Assistance Listings for Federal Users

    The program covered by this regulation is included in the 
Assistance Listings for Federal Users at SAM.gov under the following 
FAS CFDA number: 10.606, Food for Progress.

E-Government Act Compliance

    CCC is committed to complying with the E-Government Act of 2002 (44 
U.S.C. chapter 36), to promote the use of the internet and other 
information technologies to provide increased opportunities for 
citizens' access to Government information and services, and for other 
purposes.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs has designated this 
rule as not a major rule, as defined by 5 U.S.C. 804(2).

Executive Orders 12866 and 13563

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasized the importance 
of quantifying both costs and benefits, reducing costs, harmonizing 
rules, and promoting flexibility. The requirements in Executive Orders 
12866 and 13563 for the analysis of costs and benefits apply to rules 
that are determined to be significant. It has been determined that this 
rule is not significant for the purposes of Executive Order 12866; 
therefore, this rule was not reviewed by the Office of Management and 
Budget.

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988, ``Civil Justice Reform.'' This rule does not preempt State or 
local laws, regulations, or policies unless they present an 
irreconcilable conflict with this rule. This rule will not be 
retroactive.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with officials of State and local 
governments that would be directly affected by the proposed Federal 
financial assistance. The objectives of the Executive Order are to 
foster an intergovernmental partnership and a strengthened federalism 
by relying on State and local processes for the State and local 
government coordination and review of proposed Federal financial 
assistance and direct Federal development. This rule will not directly 
affect State or local officials and, for this reason, it is excluded 
from the scope of Executive Order 12372.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996, 
generally requires an agency to prepare a regulatory flexibility 
analysis of any rule that is subject to notice and comment rulemaking 
under the Administrative Procedure Act (APA) or any other law, unless 
the agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities. The Regulatory 
Flexibility Act does not apply to this rule because CCC is not required 
by the APA or any other law to publish a notice of proposed rulemaking 
with respect to the subject matter of the rule.

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' This rule will not have any substantial direct effect 
on States, on the relationship between the Federal government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, except as required by law. This rule does 
not impose substantial direct compliance costs on State and local 
governments. Therefore, consultation with the States was not required.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments.'' Executive Order 13175 requires Federal agencies 
to consult and coordinate with tribes on a government-to-government 
basis on policies that have tribal implications, including regulations, 
legislative comments or proposed legislation, and other policy 
statements or actions that have substantial direct effects on one or 
more Indian tribes, on the relationship between the Federal Government 
and Indian tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes. CCC does not expect 
this rule to have any effect on Indian tribes.

[[Page 53365]]

Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) does 
not apply to this rule because it does not impose any enforceable duty 
or contain any unfunded mandate as described under the UMRA.

List of Subjects in 7 CFR Part 1499

    Agricultural commodities, Cooperative agreements, Exports, Food 
assistance programs, Foreign aid, Grant programs--agriculture, 
Technical assistance.

    For the reasons set forth in the preamble, the Commodity Credit 
Corporation amends part 1499 of title 7 of the Code of Regulations as 
follows:

PART 1499--FOOD FOR PROGRESS PROGRAM

0
1. The authority citation for part 1499 continues to read as follows:

    Authority:  7 U.S.C. 1736o; and 15 U.S.C. 714b and 714c.


0
2. In Sec.  1499.1, revise paragraphs (c), (e), and (f)(1) to read as 
follows:


Sec.  1499.1   Purpose and applicability.

* * * * *
    (c) In addition to the provisions of this part, other regulations 
that are generally applicable to grants and cooperative agreements of 
USDA, including the applicable regulations set forth in 2 CFR chapters 
I, II, and IV, also apply to the FFPr Program, to the extent that such 
regulations do not directly conflict with the provisions of this part. 
The provisions of the CCC Charter Act (15 U.S.C. 714 et seq.) and any 
other statutory or regulatory provisions that are generally applicable 
to CCC apply to the FFPr Program.
* * * * *
    (e) The OMB guidance at 2 CFR part 200, and the provisions of 2 CFR 
part 400 and of this part, do not apply to an award by CCC under the 
FFPr Program to a recipient that is a foreign public entity, as defined 
in 2 CFR 200.1, and, therefore, they do not apply to a foreign 
government or an intergovernmental organization.
    (f)(1) The OMB guidance at subparts A through E of 2 CFR part 200, 
as supplemented by 2 CFR part 400 and this part, applies to all awards 
by CCC under the FFPr Program to all recipients that are private 
voluntary organizations, including a private voluntary organization 
that is a foreign organization, as defined in 2 CFR 200.1; nonprofit 
agricultural organizations or cooperatives, including a nonprofit 
agricultural organization or cooperative that is a foreign 
organization; nongovernmental organizations, including a 
nongovernmental organization that is a for-profit entity or a foreign 
organization; colleges or universities; or other private entities, 
including a private entity that is a for-profit entity or a foreign 
organization.
* * * * *

0
3. In Sec.  1499.2, revise the definitions of ``Commodities'' and 
``Program income'' to read as follows:


Sec.  1499.2   Definitions.

* * * * *
    Commodities means agricultural commodities, or products of 
agricultural commodities, that are produced in the United States.
* * * * *
    Program income means interest earned on proceeds from the sale of 
donated commodities, as well as funds received by a recipient or 
subrecipient as a direct result of carrying out an approved activity 
under an agreement. The term includes but is not limited to income from 
fees for services performed, the use or rental of real or personal 
property acquired under a Federal award, the sale of items fabricated 
under a Federal award, license fees and royalties on patents and 
copyrights, and principal and interest on loans made with Federal award 
funds. Program income does not include any of the following: proceeds 
from the sale of donated commodities; CCC-provided funds; interest 
earned on CCC-provided funds; funds provided for cost sharing or 
matching contributions, refunds, rebates, credits, or discounts; or 
interest earned on funds provided for cost sharing or matching 
contributions, refunds, rebates, credits, or discounts.
* * * * *

0
4. In Sec.  1499.3, revise the first sentence of paragraph (a) to read 
as follows:


Sec.  1499.3   Eligibility and conflicts of interest.

    (a) A private voluntary organization, a nonprofit agricultural 
organization or cooperative, a nongovernmental organization, a college 
or university, or any other private entity is eligible to submit an 
application under this part to become a recipient under the Food for 
Progress Program. * * *
* * * * *

0
5. In Sec.  1499.4, revise paragraphs (b)(2) and (6), (c) introductory 
text, and (c)(3) to read as follows:


Sec.  1499.4   Application process.

* * * * *
    (b) * * *
    (2) An introduction and a strategic analysis, which includes a 
description of opportunities for lasting impact and sustainable 
benefits, as specified in the notice of funding opportunity;
* * * * *
    (6) Unless otherwise specified in the notice of funding 
opportunity, an evaluation plan that describes the proposed design, 
methodology, and time frame of the project's evaluation activities, and 
how the applicant intends to manage these activities, and that will 
include a baseline study, midterm evaluation, final evaluation, and any 
applicable special studies; and
* * * * *
    (c) Unless an exception in 2 CFR 25.110 applies, each applicant is 
required to:
* * * * *
    (3) Maintain an active SAM registration, in accordance with 2 CFR 
part 25, with current information at all times during which it has an 
active Federal award or an application or plan under consideration by a 
Federal awarding agency.

0
6. In Sec.  1499.5, revise paragraphs (b), (c), (d)(4), (e) 
introductory text, and (e)(4) to read as follows:


Sec.  1499.5   Agreements.

* * * * *
    (b) The agreement will include the general information required in 
2 CFR 200.211(b), as applicable.
    (c) The agreement will incorporate general terms and conditions, 
pursuant to 2 CFR 200.211(c), as applicable.
    (d) * * *
    (4) Performance goals for the agreement, including a list of 
results, with long-term benefits where applicable, to be achieved by 
the activities; indicators, targets, and baseline data; and information 
about how performance will be assessed, including the timing and scope 
of expected performance; and
* * * * *
    (e) The agreement will also include specific terms and conditions, 
and certifications and representations, including the following, as 
applicable:
* * * * *
    (4) The recipient will assert that, to the best of its knowledge, 
any sale or barter of the donated commodities will not displace or 
interfere with any sales of United States commodities that would 
otherwise be made to or within the target country. The recipient must 
submit information to CCC to support this assertion; and
* * * * *

0
7. In Sec.  1499.6, revise paragraphs (a)(1), (e), and (f)(7) and (8) 
to read as follows:

[[Page 53366]]

Sec.  1499.6   Payments.

    (a) * * *
    (1) The original, or a true copy, of each on board bill of lading 
indicating the freight rate and signed by the originating ocean 
carrier;
* * * * *
    (e) If CCC has agreed to be responsible for the costs of 
transporting, storing, and distributing the donated commodities from 
the designated discharge port or the point of entry into the target 
country, and if the recipient will bear or has borne any of these 
costs, in accordance with the agreement, CCC will either provide an 
advance payment or a reimbursement to the recipient in the amount of 
such costs, in the manner set forth in the agreement.
    (f) * * *
    (7) Except as may otherwise be provided in the agreement, a 
recipient must deposit and maintain in an insured bank account located 
in the United States all funds advanced by CCC. The account must be 
interest-bearing, unless one of the exceptions in 2 CFR 200.305(b)(8) 
applies or CCC determines that this requirement would constitute an 
undue burden. A recipient will not be required to maintain a separate 
bank account for advance payments of CCC-provided funds. However, a 
recipient must be able to separately account for funds received, 
obligated, and expended under each agreement. When the recipient 
requires the use of funds that have been advanced by CCC to pay 
approved expenses under this agreement, the recipient may transfer the 
funds from the bank account located in the United States to a bank 
account in the target country.
    (8) A recipient may retain, for administrative purposes, up to $500 
per Federal fiscal year of any interest earned on funds advanced under 
an agreement. The recipient must remit to the U.S. Department of Health 
and Human Services any additional interest earned during the Federal 
fiscal year on such funds, in accordance with the procedures in 2 CFR 
200.305(b)(9).
* * * * *

0
8. In Sec.  1499.7:
0
a. Revise paragraphs (b) introductory text and (b)(1);
0
b. Redesignate paragraph (d) as paragraph (e);
0
c. Add new paragraphs (d) and (f).
    The revisions and additions read as follows:


Sec.  1499.7   Transportation of donated commodities.

* * * * *
    (b) Transportation to the designated discharge port or point of 
entry of donated commodities, and other goods such as bags that may be 
provided by CCC under the FFPr Program, will be arranged for under a 
specific agreement in the manner determined by CCC. Such transportation 
will be arranged for by:
    (1) CCC in accordance with the Federal Acquisition Regulation (FAR) 
in 48 CFR chapter 1, the Agriculture Acquisition Regulation (AGAR) in 
48 CFR chapter 4, and directives issued by the Director, Office of 
Contracting and Procurement, USDA; or
* * * * *
    (d) A recipient may only use the services of a transportation 
company that is legally operating in the country in which it will be 
transporting the donated commodities and that would not have a conflict 
of interest in transporting such donated commodities.
* * * * *
    (f) A recipient will be responsible for arranging and paying for 
any transportation of the donated commodities after their arrival at 
the designated discharge port or point of entry for as long as the 
recipient has title to such donated commodities, except as may 
otherwise be provided in the agreement.

0
9. Revise Sec.  1499.8 to read as follows:


Sec.  1499.8   Entry, handling, and labeling of donated commodities and 
notification requirements.

    (a) A recipient must make all necessary arrangements for receiving 
the donated commodities in the target country, including obtaining 
appropriate approvals for entry and transit. The recipient must make 
arrangements with the target country government for all donated 
commodities that will be distributed to beneficiaries to be imported 
and distributed free from all customs duties, tolls, and taxes. A 
recipient is encouraged to make similar arrangements, where possible, 
with the government of a country where donated commodities to be sold 
or bartered are delivered.
    (b) A recipient must, as provided in the agreement, arrange for 
transporting, storing, and distributing the donated commodities from 
the designated point and time where title to the donated commodities 
passes to the recipient, except that CCC will arrange for transporting 
the donated commodities in accordance with Sec.  1499.7(b)(1) when CCC 
determines that it is applicable.
    (c) A recipient must maintain the donated commodities in good 
condition from the time that it takes possession of such donated 
commodities at the designated discharge port, the point of entry, or 
the point of receipt from the originating carrier until their 
distribution, sale or barter.
    (d) A recipient must comply with the following requirements in this 
paragraph, and the requirements specified in the agreement, regarding 
the acknowledgment of funding by USDA, the use of the USDA logo, and 
communications to the public:
    (1) If a recipient arranges for the packaging or repackaging of 
donated commodities that are to be distributed, the recipient must 
ensure that the packaging:
    (i) Is plainly labeled in the language of the target country;
    (ii) Contains the name of the donated commodities;
    (iii) Includes a statement indicating that the donated commodities 
are furnished by the Food for Progress Program of the United States 
Department of Agriculture; and
    (iv) Includes a statement indicating that the donated commodities 
must not be sold, exchanged or bartered.
    (2) If a recipient arranges for the processing and repackaging of 
donated commodities that are to be distributed, the recipient must 
ensure that the packaging:
    (i) Is plainly labeled in the language of the target country;
    (ii) Contains the name of the processed product;
    (iii) Includes a statement indicating that the processed product 
was made with commodities furnished by the Food for Progress Program of 
the United States Department of Agriculture; and
    (iv) Includes a statement indicating that the processed product 
must not be sold, exchanged or bartered.
    (3) If a recipient distributes donated commodities that are not 
packaged, the recipient must display a sign at the distribution site 
that includes the name of the donated commodities, a statement 
indicating that the donated commodities are being furnished by the Food 
for Progress Program of the United States Department of Agriculture, 
and a statement indicating that the donated commodities must not be 
sold, exchanged, or bartered.
    (4) A recipient must ensure that signs are displayed at all 
activity implementation and commodity distribution sites to inform 
beneficiaries that funding for the project was provided by the Food for 
Progress Program of the United States Department of Agriculture.
    (5) A recipient must ensure that all communications to the public 
relating to the project, the activities, or the donated commodities, 
whether made through print, broadcast, digital, or other media, include 
a statement

[[Page 53367]]

acknowledging that funding was provided by the Food for Progress 
Program of the United States Department of Agriculture. This includes 
project descriptions, fact sheets, signs, websites, press releases, 
social media, videos, reports, and other communications to the public. 
A recipient must also ensure that the USDA logo is used in 
communications to the public in accordance with the agreement.
    (e)(1) At the request of a recipient, CCC may waive compliance with 
one or more of the requirements in paragraph (d) of this section. A 
recipient may submit a written request for a waiver at any time after 
the agreement has been signed. Except as provided in paragraph (e)(2) 
of this section, the recipient must comply with the requirement(s) 
while awaiting a determination by CCC regarding its waiver request.
    (2) If a recipient determines that compliance with one or more of 
the requirements in paragraph (d) of this section poses an imminent 
threat of injury, loss of life, or destruction of property in the 
target country, the recipient must submit a request to CCC for a waiver 
of such requirement(s), with an explanation of the safety or security 
risk, as soon as possible. The recipient will not have to comply with 
such requirement(s) while awaiting a determination by CCC regarding its 
waiver request.
    (f) In exceptional circumstances, CCC may, on its own initiative, 
waive one or more of the requirements in paragraph (d) of this section 
for programmatic reasons.

0
10. In Sec.  1499.9, revise paragraphs (a) and (b), the sixth and ninth 
sentences of paragraph (c), paragraph (d)(3)(iii), and the first and 
second sentences of paragraph (e) introductory text to read as follows:


Sec.  1499.9   Damage to or loss of donated commodities.

    (a) CCC will be responsible for the donated commodities prior to 
the transfer of title to the donated commodities to the recipient. The 
recipient will be responsible for the donated commodities while the 
recipient has title to the donated commodities. The title will transfer 
as specified in the agreement.
    (b)(1) A recipient must inform CCC, in the manner set forth in the 
agreement, of any damage to or loss of donated commodities that occurs 
while the recipient has title to the donated commodities. The recipient 
must comply with the following procedures when reporting such damage to 
or loss of donated commodities:
    (i) If the amount of the damage or loss is estimated to exceed 
$20,000, the recipient must notify CCC in writing immediately after 
becoming aware of such damage or loss and, in this notification, 
provide detailed information about the circumstances surrounding such 
damage or loss, the quantity of damaged or lost donated commodities, 
and the amount of the damage or loss;
    (ii) If the amount of the damage or loss is estimated to exceed 
$1,000 but not to exceed $20,000, the recipient must notify CCC in 
writing of the damage or loss within 15 days after the date that the 
recipient becomes aware of it and then provide detailed information 
about the damage or loss in the first report required to be filed under 
Sec.  1499.13(c) that is due after the date that the recipient becomes 
aware of such damage or loss; and
    (iii) If the amount of the damage or loss is estimated not to 
exceed $1,000, the recipient must notify CCC, and provide detailed 
information about the damage or loss, in the first report required to 
be filed under Sec.  1499.13(c) that is due after the date that the 
recipient becomes aware of such damage or loss.
    (2) The recipient must take all steps necessary to protect its 
interests and the interests of CCC with respect to any damage to or 
loss of the donated commodities that occurs while the recipient has 
title to the donated commodities.
    (c) * * * All surveys obtained by the recipient must, to the extent 
practicable, be conducted jointly by the surveyor, the recipient, and 
the ocean carrier, and the survey report must be signed by all three 
parties. * * * CCC will reimburse the recipient for the reasonable 
costs of these services, as determined by CCC.
    (d) * * *
    (3) * * *
    (iii) Estimates the quantity of cargo, if any, lost during 
discharge through ocean carrier negligence;
* * * * *
    (e) If donated commodities to which a recipient has title sustain 
damage in excess of $5,000 at any time prior to their distribution or 
sale under the agreement, regardless of the party at fault, the 
recipient must immediately arrange for an inspection by a public health 
official or other competent authority approved by CCC and provide to 
CCC a certification by such public health official or other competent 
authority regarding the exact quantity and condition of the damaged 
donated commodities. The value of the donated commodities prior to the 
damage must be determined on the basis of the commodity acquisition, 
transportation, and related costs incurred by CCC with respect to such 
commodities, as well as such costs incurred by the recipient and paid 
by CCC. * * *
* * * * *

0
11. In Sec.  1499.10:
0
a. Revise paragraphs (a) and (b) introductory text;
0
b. Remove paragraph (b)(1);
0
c. Redesignate paragraphs (b)(2), (3), and (4) as paragraphs (b)(1), 
(2), and (3);
0
d. Remove paragraph (c); and
0
e. Redesignate paragraphs (d), (e), and (f) as paragraphs (c), (d), and 
(e).
    The revisions read as follows:


Sec.  1499.10  Claims for damage to or loss of donated commodities.

    (a) CCC will be responsible for claims arising out of damage to or 
loss of a quantity of the donated commodities prior to the transfer of 
title to the donated commodities to the recipient. The recipient will 
be responsible for claims arising out of damage to or loss of a 
quantity of the donated commodities while the recipient has title to 
the donated commodities.
    (b) If the recipient has title to donated commodities that have 
been damaged or lost, and the amount of the damage or loss is estimated 
to exceed $20,000, the recipient must:
* * * * *

0
12. In Sec.  1499.11, revise paragraphs (e) and (h) to read as follows:


Sec.  1499.11   Use of donated commodities, sale proceeds, CCC-provided 
funds, and program income.

* * * * *
    (e) A recipient must not use sale proceeds, CCC-provided funds, 
interest, or program income to acquire goods and services, either 
directly or indirectly through another party, in a manner that violates 
a U.S. Government economic sanctions program, as specified in the 
agreement.
* * * * *
    (h)(1) Except as provided in paragraph (h)(2) of this section, a 
recipient may make adjustments within the agreement budget between 
direct cost line items without further approval, provided that the 
total amount of such adjustments does not exceed the amount specified 
in the agreement. Adjustments beyond these limits require the prior 
approval of CCC.
    (2) A recipient must not transfer any funds budgeted for 
participant support costs, as defined in 2 CFR 200.1, to other 
categories of expense without the prior approval of CCC.
* * * * *

[[Page 53368]]


0
13. Revise Sec.  1499.13 to read as follows:


Sec.  1499.13   Reporting and record keeping requirements.

    (a) A recipient must comply with the performance and financial 
monitoring and reporting requirements in the agreement and 2 CFR 
200.328 through 200.330.
    (b) A recipient must submit financial reports to CCC, by the dates 
and for the reporting periods specified in the agreement. Such reports 
must provide an accurate accounting of sale proceeds, CCC-provided 
funds, interest, program income, and voluntary committed cost sharing 
or matching contributions. When reporting financial information under 
the agreement, the recipient must include the amounts in U.S. dollars 
and, if funds are held in local currency, the exchange rate.
    (c)(1) A recipient must submit performance reports to CCC, by the 
dates and for the reporting periods specified in the agreement. These 
reports must include the following:
    (i) The information required in 2 CFR 200.329(c)(2), including 
additional pertinent information regarding the recipient's progress, 
measured against established indicators, baseline values, and targets, 
towards achieving the expected results specified in the agreement. This 
reporting must include, for each performance indicator, a comparison of 
actual accomplishments with the baseline values and the targets 
established for the period. When actual accomplishments deviate 
significantly from targeted goals, the recipient must provide an 
explanation in the report;
    (ii) Information covering the receipt, handling, and disposition of 
the donated commodities, until all of the donated commodities have been 
distributed, sold, or bartered and such disposition has been reported 
to CCC; and
    (iii) If the agreement authorizes the sale or barter of donated 
commodities, information covering the receipt and use of any sale 
proceeds, goods and services derived from barter, and program income, 
until all of the sale proceeds, goods and services derived from barter, 
and program income have been disbursed or used and reported to CCC.
    (2) A recipient must ensure the accuracy and reliability of the 
performance data submitted to CCC in performance reports. At any time 
during the period of performance of the agreement, CCC may review the 
recipient's performance data to determine whether it is accurate and 
reliable. The recipient must comply with all requests made by CCC or an 
entity designated by CCC in relation to such reviews.
    (d) Baseline, midterm, and final evaluation reports are required 
for all agreements, unless otherwise specified in the agreement. The 
reports must be submitted in accordance with the timeline in the CCC-
approved evaluation plan. Evaluation reports submitted to CCC may be 
made public in an effort to increase accountability and transparency 
and share lessons learned and best practices.
    (e) A recipient must, within 30 days after export of all or a 
portion of the donated commodities, submit evidence of such export to 
CCC, in the manner set forth in the agreement. The evidence may be 
submitted through an electronic media approved by CCC or by providing 
the ocean carrier's on board bill of lading. The evidence of export 
must show the kind and quantity of commodities exported, the date of 
export, and the country where the commodities will be delivered. The 
date of export is the date that the ocean carrier carrying the donated 
commodities sails from the final U.S. load port.
    (f) If requested by CCC, a recipient must provide to CCC additional 
information or reports relating to the agreement.
    (g) If a recipient requires an extension of a reporting deadline, 
it must ensure that CCC receives an extension request at least five 
business days prior to the reporting deadline. CCC may decline to 
consider a request for an extension that it receives after this time 
period. CCC will consider requests for reporting deadline extensions on 
a case by case basis and make a decision based on the merits of each 
request. CCC will consider factors such as unforeseen or extenuating 
circumstances and past performance history when evaluating requests for 
extensions.
    (h) A recipient must retain records and permit access to records in 
accordance with the requirements of 2 CFR 200.334 through 200.338. The 
date of submission of the final expenditure report, as referenced in 2 
CFR 200.334, will be the date of submission of the final financial 
report required by paragraph (b) of this section, as prescribed by CCC. 
The recipient must retain copies of and make available to CCC all sales 
receipts, contracts, or other documents related to the sale or barter 
of donated commodities and any goods or services derived from such 
barter, as well as records of dispatch received from ocean carriers.

0
14. In Sec.  1499.14, revise the third sentence of paragraph (a), 
paragraph (b)(2), and the first sentence of paragraph (b)(4) to read as 
follows:


Sec.  1499.14   Subrecipients.

    (a) * * * The recipient must enter into a written subagreement with 
the subrecipient and comply with the applicable provisions of 2 CFR 
200.332. * * *
    (b) * * *
    (2) The subrecipient is prohibited from using sale proceeds, CCC-
provided funds, interest, or program income to acquire goods and 
services, either directly or indirectly through another party, in a 
manner that violates a U.S. Government economic sanctions program, as 
specified in the agreement.
* * * * *
    (4) The subrecipient is responsible for complying with the 
applicable compliance requirements set forth in the subaward in 
accordance with Sec.  1499.18 and 2 CFR 200.501(h). * * *
* * * * *

0
15. In Sec.  1499.15, revise the first sentence to read as follows:


Sec.  1499.15   Noncompliance with an agreement.

    If a recipient fails to comply with a Federal statute or regulation 
or the terms and conditions of the agreement, and CCC determines that 
the noncompliance cannot be remedied by imposing additional conditions, 
CCC may take one or more of the actions set forth in 2 CFR 200.339 and, 
if appropriate, initiate a claim against the recipient. * * *
0
16. In Sec.  1499.16:
0
a. Revise paragraph (a);
0
b. Redesignate paragraph (b) as paragraph (c);
0
c. Add new paragraph (b); and
0
d. Revise newly redesignated paragraph (c)(3).
    The revisions and addition read as follows:


Sec.  1499.16   Suspension and termination of agreements.

    (a) CCC may suspend or terminate an agreement if it determines 
that:
    (1) One of the bases in 2 CFR 200.339 or 200.340 for suspension or 
termination by CCC has been satisfied;
    (2) The continuation of the assistance provided under the agreement 
is no longer necessary or desirable; or
    (3) Storage facilities are inadequate to prevent spoilage or waste 
of the donated commodities, or distribution of the donated commodities 
will result in a substantial disincentive to or interference with 
domestic production or marketing in the target country.
    (b) The termination provisions in 2 CFR 200.340 and 200.341 will 
apply to an agreement.

[[Page 53369]]

    (c) * * *
    (3) Must comply with any closeout and post-closeout provisions 
specified in the agreement and 2 CFR 200.344 and 200.345.

0
17. In Sec.  1499.19, revise the first sentence to read as follows:


Sec.  1499.19   Paperwork Reduction Act.

    The information collection requirements contained in this part have 
been approved by OMB under the Paperwork Reduction Act of 1995, 44 
U.S.C. Chapter 35, and have been assigned OMB control number 0551-0035. 
* * *

Zach Ducheneaux,
Executive Vice President, Commodity Credit Corporation.
    In concurrence with:
Clay Hamilton,
Acting Administrator, Foreign Agricultural Service.
[FR Doc. 2022-18743 Filed 8-30-22; 8:45 am]
BILLING CODE 3410-10-P