[Federal Register Volume 89, Number 78 (Monday, April 22, 2024)]
[Rules and Regulations]
[Pages 29261-29273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08452]



[[Page 29261]]

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GENERAL SERVICES ADMINISTRATION

41 CFR Part 102-83

[FMR Case 2023-102-1; Docket No. GSA-FMR-2023-0012; Sequence No. 2]
RIN: 3090-AK69


Federal Management Regulation; Designation of Authority and 
Sustainable Siting

AGENCY: Office of Government-wide Policy (OGP), U.S. General Services 
Administration (GSA).

ACTION: Final rule.

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SUMMARY: GSA, in furtherance of its authority to furnish space to 
federal agencies, hereby amends the Federal Management Regulation (FMR) 
to elaborate on the factors that are advantageous to the Government 
when planning for location decisions. In addition, the proposed 
revisions are necessary to bring the current regulation into compliance 
with updated terminology in statute and Office of Management and Budget 
(OMB) bulletins. The objective of these changes is to direct agencies 
to better integrate strategic, holistic analysis into planning for 
agency location decisions and to provide consistency in the application 
of these regulations across Federal agencies and regions.

DATES: May 22, 2024.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Chris Coneeney, Office of Government-wide Policy, at 202-208-2956. 
For information pertaining to status or publication schedules, contact 
the Regulatory Secretariat Division (MVCB), 1800 F Street NW, 
Washington, DC 20405, 202-501-4755. Please cite FMR Case 2023-102-1.

SUPPLEMENTARY INFORMATION:

I. Background

    This final rule amends the Federal Management Regulation (FMR) to 
elaborate on the factors that are advantageous to the Government when 
planning for location decisions. The U.S. General Services 
Administration (GSA) published a proposed rule in the Federal Register 
on October 24, 2023 (88 FR 72974).
    The Administrator of General Services (Administrator) is authorized 
to acquire real estate and interests in real estate to accommodate the 
space needs of federal agencies. In particular, these authorities are 
codified at 40 U.S.C. 301 note (specifically, the 1950 Reorganization 
Plan No. 18), 113(d), 581(c)(1), 585, and 3304, and 28 U.S.C. 462(f). 
In addition, 40 U.S.C. 584 requires the Administrator to assign space 
to executive agencies in accordance with policies and directives the 
President prescribes under 40 U.S.C. 121(a), after consultation with 
the affected agency, and based on a determination by the Administrator 
that the assignment or reassignment is advantageous to the Government 
in terms of economy, efficiency, or national security.
    There are several other statutory authorities that underlie federal 
site location policy. The Rural Development Act of 1972, as amended (7 
U.S.C. 2204b-1) (RDA), requires executive agencies to give first 
priority to locating in rural areas.
    The Federal Urban Land Use Act of 1949, as amended (40 U.S.C. 901-
905), requires GSA and other Federal agencies to consult and engage 
with the unit of general local government exercising zoning and land 
use jurisdiction so that Federal urban land acquisitions and uses are 
developed in accordance with local zoning, land use practices and 
planning and development objectives to the greatest extent practicable. 
The National Historic Preservation Act of 1966, as amended (54 U.S.C. 
300101 et seq.) (NHPA), encourages the preservation and utilization of 
all usable elements of the Nation's historic built environment. The 
Competition in Contracting Act of 1984, as amended (41 U.S.C. 3301 et 
seq.) (CICA), requires executive agencies to consider whether the 
location decision or delineated area will provide for adequate 
competition when acquiring leased space. Finally, 40 U.S.C. 121(c) 
authorizes the Administrator to issue regulations that the 
Administrator considers necessary to carry out the Administrator's 
functions under, as relevant here, subtitle I of chapter 40 of the 
United States Code. Thus, this rule implements the requirements of the 
statutes described above and establishes factors to be considered in 
the pre-procurement or acquisition process for federal agency location 
decisions.
    This rule updates the existing part 102-83 by incorporating new 
terminology but continues to implement the underlying principles for 
planning for location decisions that have been in existence for almost 
50 years. These principles were first incorporated in 41 CFR part 101-
17, Assignment and Utilization of Space (45 FR 37200-37206, June 2, 
1980), and continue to be the foundation for the factors elaborated on 
today. The procedures for location decisions were eventually given a 
separate part in the FMR in 2002, when 41 CFR part 102-83, Location of 
Space, was issued. This part was last revised and published in the 
Federal Register on November 8, 2005 (70 FR 67857-67860).
    The rule continues to be guided by the longstanding Executive Order 
(E.O.) 12072, ``Federal Space Management,'' which prescribes policies 
and directives for the planning, acquisition, utilization, and 
management of federal space facilities in accordance with 40 U.S.C. 
121(a) (43 FR 36869, August 18, 1978). E.O. 12072 requires that 
``serious consideration'' be given ``to the impact a site selection 
will have on improving the social, economic, environmental, and 
cultural conditions of the communities in the urban area.''
    In addition, in accordance with the NHPA and consistent with E.O. 
12072, E.O. 13006, ``Locating Federal Facilities on Historic Properties 
in Our Nation's Central Cities'' (61 FR 26071, May 24, 1996), requires 
Federal agencies to give first consideration to historic properties 
within historic districts. If no such property is suitable, then 
Federal agencies must consider other developed or undeveloped sites 
within historic districts. If no suitable site exists within historic 
districts, Federal agencies must then consider historic properties 
outside of historic districts.
    On May 15, 2023, GSA published a bulletin to the FMR (88 FR 30975, 
May 15, 2023) to bring the regulation into alignment with current 
terminology and concepts, and to attempt to provide consistency when 
applying the existing regulation across Federal agencies. As these 
concepts and associated terminology are incorporated into this final 
rule, GSA will cancel the bulletin once this rule takes effect.
    Other E.O.s and more recent administration policies further inform 
this rule by providing new terminology to help understand and address 
what it means to consider the impact of social, economic, 
environmental, and cultural conditions. For example, E.O 
11988,''Floodplain Management'' (42 FR 26951, May 25, 1977), as amended 
by E.O 13690, ``Establishing a Flood Risk Management Standard and a 
Process for Further Soliciting and Considering Stakeholder Input'' (80 
FR 6425, Feb. 4, 2015), and E.O. 11990, ``Wetlands Protection'' (42 FR 
26961, May 24, 1977), direct agencies to avoid locating in a floodplain 
and disturbing wetlands. E.O. 14057, ``Catalyzing Clean Energy 
Industries and Jobs Through Federal Sustainability'' (86 FR 70935, 
December 13, 2021), its accompanying Implementing Instructions, dated 
August 31, 2022, and the associated Office of Management and Budget 
(OMB), White House Council on Environmental Quality and National

[[Page 29262]]

Climate Policy Office memorandum (M-22-06, 12/8/2021), direct Federal 
agencies to promote sustainable locations for Federal facilities and 
strengthen the vitality and livability of the communities in which 
Federal facilities are located. These directives charge agencies with 
advancing sustainable land use that promotes the conservation of 
natural resources, reduces greenhouse gas (GHG) emissions and increases 
resilience to the impacts of climate change; efficient use of local 
infrastructure; expanded public transportation use and access; 
equitable development that promotes environmental justice and economic 
opportunity for disadvantaged communities; and coordination and 
alignment with the development plans of Tribal, State, and local or 
regional governments that advance these and related goals. Note that 
while E.O. 12072 and E.O. 13006 only address urban areas, E.O. 14057 
applies many of the same goals to both urban and rural areas.
    E.O. 14008, ``Tackling the Climate Crisis at Home and Abroad'' (86 
FR 7619, February 1, 2021), directs Federal agencies to employ a 
Government-wide approach across a wide range of activities and goals 
related to tackling the climate change crisis. Most relevant to this 
part, it directs agencies to reduce climate pollution, increase 
resilience to the impacts of climate change, and deliver environmental 
justice, spur economic opportunity for disadvantaged communities that 
have been historically marginalized, and overburdened by pollution and 
underinvestment in housing, transportation, water and wastewater 
infrastructure, and health care.
    E.O. 14091, ``Further Advancing Racial Equity and Support for 
Underserved Communities Through the Federal Government'' (88 FR 10825, 
February 22, 2023), directs Federal agencies to advance equity for all 
communities, especially those populations that historically have 
suffered from underinvestment and inequality, discrimination and 
persistent poverty, and to give equitable treatment to all individuals 
in a consistent and systematic manner. The order further promotes 
efficiency by directing Federal agencies, when planning for Federally 
owned and leased facilities, to consider locations near existing 
employment centers and public transit so that a broad range of the 
region's workforce and population may access the jobs and services at 
those facilities. This enables the agencies for which GSA provides 
space to more readily carry out their missions. Where the Federal 
development may spur displacement of current community populations, the 
E.O. instructs Federal agencies to engage further with those 
communities and the relevant regional and local officials to address 
displacement risks.
    E.O. 14096, ``Revitalizing Our Nation's Commitment to Environmental 
Justice for All'' (88 FR 25251, April 26, 2023), builds on the E.O.s 
described above to reinforce agency use of data analysis in identifying 
communities suffering environmental injustice, including related to 
climate change and cumulative impacts, and targeting mitigation or harm 
avoidance through Federal actions. GSA and other Federal agencies can 
use various data sets and tools to identify if proposed locations for 
Federally owned and leased facilities are in communities with 
environmental justice concerns. For example, the Climate and Economic 
Justice Screening Tool \1\ (CEJST) identifies geographically defined 
disadvantaged communities, includes an interactive map, and uses 
datasets that are indicators of burdens in eight categories: climate 
change, energy, health, housing, legacy pollution, transportation, 
water and wastewater, and workforce development. The tool uses this 
information to identify disadvantaged communities that are experiencing 
these burdens. These are the communities that are disadvantaged because 
they are overburdened by pollution and marginalized by underinvestment. 
The order also re-emphasizes consultation and engagement with members 
of affected communities that allow meaningful participation for those 
communities in agency decision-making, including individuals with 
limited English proficiency and individuals with disabilities. This is 
in keeping with the requirements of the Federal Urban Land Use Act. As 
mentioned above, the principles that underlie this rule have been in 
existence for decades and it is well established that GSA has broad 
discretion regarding the substance of this regulation because it 
involves managerial and economic choices that are dependent on GSA's 
special expertise in this area. Moreover, when a project subject to 40 
U.S.C. 3307 is contemplated, as part of the appropriations process, GSA 
provides the Committee on Environment and Public Works of the Senate 
and the Committee on Transportation and Infrastructure of the House of 
Representatives notice of the delineated area for locating the project 
and a comprehensive plan that demonstrates that the project will 
enhance the architectural, historical, social, cultural, and economic 
environment of the locality. Thus, by adopting resolutions approving 
the appropriation of the funds for the proposed project, there is a 
presumption of congressional approval of the delineated area and the 
process completed by which either GSA or the agencies operating under 
GSA's authority, or both, establish the location decision. The 
congressional approval of the future location decision is further 
evidenced by a provision that Congress routinely includes in GSA's 
annual appropriations act (See, for example, section 525 of title V of 
division E of section 2 of the Consolidated Appropriations Act, 2023, 
Pub. L. 117-328, 136 Stat. 4459, 4687). That provision requires the 
Administrator to ensure that the delineated area of a prospectus-level 
lease procurement is identical to the delineated area included in the 
approved prospectus and, if the Administrator determines that the 
delineated area of the procurement should not be identical to the 
delineated area included in the prospectus, the Administrator must 
provide an explanatory statement to GSA's authorizing and 
appropriations committees.
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    \1\ The CEJST tool is available at https://screeningtool.geoplatform.gov/en/.
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    For non-prospectus projects, GSA exercises its discretion in 
accordance with the principles that underlie this rule.
    It is important to note that these final rule changes work in 
concert with, and not in lieu of, agency mission and physical security 
needs, CICA, cost considerations, consolidation and reductions in 
square footage, prioritizing Federally owned space, and other 
procurement policies. In accordance with the statutes and policies 
described above, the optimal Federal location decision is the one that 
meets Federal agency mission needs, at an appropriate cost to 
taxpayers, while achieving the necessary level of security and 
leveraging Federal development in support of other Federal and local 
goals.
    This final rule will revise in its entirety 41 CFR part 102-83, 
Location of Space. Federal agencies operating under or subject to the 
real property authorities of the Administrator of General Services must 
comply with the provisions of the FMR that cover real property (41 CFR 
parts 102-71 through 102-85).

[[Page 29263]]

II. Discussion of the Final Rule

A. Summary of Major Changes

    The following updates and clarification changes are incorporated 
into the amended part 102-83:

 Social, Economic, Environmental, and Cultural 
factors in Location Decisions

    The rule now more explicitly explains the factors associated with 
social, economic, environmental, and cultural conditions to be 
considered in location decisions.

 Central Cities to Principal Cities

    The term ``central cities'' has, for many years, been retired in 
favor of the term ``principal cities,'' as published in the OMB ``2010 
Standards for Delineating Metropolitan and Micropolitan Statistical 
Areas'' (75 FR 37246, June 28, 2010) (the 2010 Standards). This term 
reflects new consideration for how single or multiple urban centers 
function as commuting destinations and population centers within a 
single core-based statistical area (CBSA). This final rule updates the 
terminology throughout the part accordingly.

 Metropolitan Areas to Core-Based Statistical Areas

    The shift from metropolitan areas (MA) to CBSAs reflects the change 
that first appeared in the OMB ``2000 Standards for Delineating 
Metropolitan and Micropolitan Statistical Areas'' (65 FR 82228, 
December 27, 2000) (the 2000 Standards) to recognize both MAs and 
micropolitan statistical areas as having an urbanized core and 
surrounding areas with a high degree of integration to that core. The 
2000 Standards were replaced and superseded by the 2010 Standards, and 
the most recent delineations for CBSA boundaries appeared in OMB 
Bulletin No. 18-04 on September 14, 2018. This final rule updates the 
term throughout the part accordingly.

 Urban/Rural Definitions

    The definitions for ``urban area'' and ``rural area'' in the 
existing regulations are difficult to interpret because they draw on 
two different sources, and these definitions are not necessarily 
mutually exclusive from one another. The current part 102-83 has a 
definition for urban that relies on the boundaries of MAs defined by 
OMB.
    The current definition for rural area comes not from the RDA, but 
rather from the Consolidated Farmers Home Administration Act of 1961 
(CFHA), as amended by the Farm Security and Rural Investment Act of 
2002, which identifies a rural area for general purposes of CFHA as any 
area except a city or town with a population greater than 50,000 people 
or adjacent urbanized areas. The original definition of rural area 
applicable to the RDA was stricken from the statute and, subsequently, 
GSA adopted the CFHA definition. The circularity of these current 
definitions, however, makes the boundaries of urban and rural difficult 
to interpret. Among the difficulties are the fact that the boundaries 
established by the definitions do not relate to jurisdictional 
boundaries and are measured at the fine grain of census blocks, meaning 
that adjacent parcels within the same jurisdiction may be designated 
one as rural and the other as urban. With urban and rural areas 
immediately across the street from each other, making the case that an 
agency can only meet its need in the parcel designated as urban rather 
than the adjacent parcel designated rural, or vice versa, needlessly 
opens the Federal space action to protest.
    Given that subsequent revisions of the RDA have actually eliminated 
the original definition of rural area, GSA has chosen a definition that 
better meets the needs of the Federal location decision process, and 
this final rule simplifies the definition to the boundaries of CBSAs, 
which follow county lines. Those areas contained within the boundaries 
are considered urban, and those outside the boundaries are considered 
rural. As with the current definitions, agency mission need remains the 
primary determinant of whether a Federal agency will seek space in an 
urban or rural area.

 Considering Real Estate Cost and Efficiency Factors

    Federal location policy has long advocated that Federal agencies 
balance cost, mission and real estate efficiencies, as well as local 
development goals, when making location decisions. This derives from 
statute and related policies. This revised part enumerates these 
factors to encourage agencies to reach balanced, holistic decisions, 
and to clarify agency latitude to consider cost and other business 
factors.

 Local Consultation and Engagement Requirements

    The various governing authorities and directives for this part 
require that Federal agencies consult and engage with local officials 
when making real estate decisions and that they seek opportunities for 
Federal action to support local development objectives. These 
authorities and policies include the Federal Urban Land Use Act of 1949 
(40 U.S.C. 901-905); the RDA; and E.O. 12072. For the Federal 
Government to consider locating Federal facilities in a specific area 
or jurisdiction in keeping with the goals of this part, the existing or 
planned development composition for that area needs to be appropriate 
both to meeting Federal agency mission and space needs and local 
development goals.
    Determining whether a specific area is appropriate for Federal 
facilities calls for consultation and engagement with State and local 
officials, Tribal governments, Alaska Native corporations, and Native 
Hawaiian Organizations, and meaningful engagement with communities in 
applicable geographies, to better understand local conditions and 
development goals, including those related to sustainability, climate 
change mitigation and resilience, and environmental justice. Further, 
where Federal agencies determine through data analysis, including 
through use of CEJST or other applicable Federal tools, and local 
consultation and other engagement that displacement risks or other 
environmental justice concerns exist for current populations in the 
vicinity of a planned facility, Federal agencies are directed to engage 
with the affected communities and relevant regional and local officials 
to address mitigating those risks.
    To encourage both effective long-term consultation and engagement 
and efficient processes that are not overly burdensome to Federal 
agencies, this revised part outlines the latitude that agencies have to 
develop efficient internal policy and procedure.

B. Analysis of Public Comments

    In response to the notice of public rulemaking, five commenters 
submitted comments on the provisions of the proposed rule, including 
three environmental advocacy groups, one individual and one anonymous 
commenter.
    GSA appreciates the thorough public response to the proposed rule, 
and carefully considered all comments received. Commenters provided 
feedback on several provisions of the proposed rule, but primarily 
focused on the following topics: referencing the numerous statutory and 
executive authorities governing the process by which the agency plans 
for location decisions; providing an explanation on how to apply the 
changes in the regulation; explaining the hard to quantify benefits of 
the rule; and protection of floodplains and wetlands to avoid harming 
these critical native ecosystems.

[[Page 29264]]

Citing Additional Authorities for This Rule
    Some of the commenters requested GSA include additional authorities 
that pertain to the selection of a specific site. GSA has based the 
rule on the existing authorities pertaining to the factors that are 
advantageous to the Government when planning for location decisions. 
This rule establishes the process for determining the delineated area 
and, once the delineated area is determined, helps to inform the 
specific site selection decision. The references cited by commenters 
are better addressed at the point in the process when specific sites 
are under consideration.
Explain How To Apply Changes in the Rule
    The FMR outlines, at a high level, what must be considered when 
planning for location decisions to meet Federal space needs. The 
comments regarding specific procedures to implement the changes in the 
regulation will be addressed in subsequent implementation policies and 
guidance to be published after the rule takes effect.
Explain the Non-Quantifiable Benefits of the Rule
    GSA notes that when selecting a site to accommodate Federal space 
needs, there are considerations, such as equity, environmental justice 
and sustainability, whose benefits to society are difficult to 
quantify. This rule outlines those factors that Federal agencies must 
consider in location decisions, but it does not dictate outcomes. Even 
if the specific location decision and the associated outcomes were 
addressed in this rule, that decision would be very difficult to 
anticipate, given that the Federal real estate inventory is highly 
diverse in terms of geography, scale, and function. The scope of the 
analysis is, therefore, limited to the processes of governments and 
stakeholders rather than the outcomes of those processes.
Floodplain and Wetlands Protection
    GSA made an edit to the rule to acknowledge the protection of the 
natural environment by preserving ecosystems, including native 
ecosystems, avoiding development of green space, and promoting climate 
change adaptation planning. GSA reiterates, though, that mitigating the 
impact to wetlands and floodplains largely occurs during the site 
planning and design steps in the process, after the location decision 
itself. Those steps are not the subject of this rule.

III. Executive Orders 12866, 13563 and 14094

    Executive Order (E.O.) 12866 (Regulatory Planning and Review) 
directs 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). E.O. 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. E.O. 14094 (Modernizing Regulatory Review) amends 
subsection 3(f) of Executive Order 12866 and supplements and reaffirms 
the principles, structures, and definitions governing contemporary 
regulatory review established in E.O. 12866 and E.O. 13563. OMB's 
Office of Information and Regulatory Affairs has determined that this 
rule is a significant regulatory action and, therefore, it is subject 
to review under subsection 6(b) of E.O. 12866.

IV. Regulatory Flexibility Act

    GSA does not expect this final rule to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601 et seq.

V. Regulatory Impact Analysis

    During the first and subsequent years after publication of the 
rule, Federally owned new construction members and leasing acquisition 
members (which include a combination of Planning Managers, Site 
Acquisition Staff, Program Managers, Lease Contracting Officers, and 
Lease Project Managers) will need to learn about GSA's government-wide 
plan and compliance requirements. GSA estimates this cost by 
multiplying the time required to review the regulations and guidance 
implementing the rule by the estimated hourly compensation. GSA 
calculates the estimated hourly compensation using the U.S. Office of 
Personnel Management's 2023 General Schedule (GS) Rest of United States 
Locality Pay Table, a full fringe benefit cost factor of 36.25% and an 
overhead cost factor of 12%.2 3 4 5
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    \2\ General Schedule (opm.gov).
    \3\ OMB Memo M-08-13, dated March 11, 2008.
    \4\ OMB Circular-76.
    \5\ Computing Hourly Rates of Pay Using the 2,087-Hour Divisor 
(opm.gov).
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    GSA assumes the Federally owned new construction members and 
leasing acquisition members will, on average, stay consistent in the 
subsequent years. GSA also delegates leasing authority to several 
agencies, which are required to follow GSA's policies. As of July 2023, 
GSA has nine agencies actively using delegated leasing authority. The 
numbers and assumptions also apply to agencies using delegated leasing 
authority.

1. Government Costs

a. Federally Owned New Construction
    The Government must educate its Federally owned new construction 
members via a government-wide plan to heighten their familiarity with 
the rule. GSA makes these assumptions based on historical 
familiarization and subject matter expert judgment. Below is a list of 
training and communication activities related to regulatory 
familiarization and compliance that GSA anticipates will occur.
    GSA estimates it will take 5 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $93.70/hour, 20 hours each in 
year 1 to develop new content for planning managers and site 
acquisition staff training. Therefore, GSA estimates the total 
estimated cost for this part of the rule to be $9,370 (= 5 x $93.70 GS-
14 step 5 rate x 20 hours).
    GSA estimates it will take 5 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $93.70/hour, 1 hour each in years 
3, 5, 7, and 9 to update new content for planning managers and site 
acquisition staff training. Therefore, GSA estimates the total annual 
estimated cost for this part of the rule to be $469 (= 5 x $93.70 GS-14 
step 5 rate x 1 hour).
    GSA estimates it will take 5 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $93.70/hour, 1.5 hours each in 
years 1, 3, 5, 7, and 9 to deliver new training content to planning 
managers and site acquisition staff. Therefore, GSA estimates the total 
annual estimated cost for this part of the rule to be $703 (= 5 x 
$93.70 GS-14 step 5 rate x 1.5 hours).
    GSA estimates it will take 103 GSA planning managers and site 
acquisition staff on average, with a GS-13 step 5 with an average 
hourly rate of $79.29/hour, 1.5 hours each in years 1, 3, 5, 7, and 9 
to receive new training content. Therefore, GSA estimates the total 
annual estimated cost for this part of the rule to be $12,251 (= 103 x 
$79.29 GS-13 step 5 rate x 1.5 hours).
    GSA estimates it will take 5 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $93.70/hour, 4 hours each in year 
1 to

[[Page 29265]]

develop new content for training for client agencies. Therefore, GSA 
estimates the total estimated cost for this part of the rule to be 
$1,874 (= 5 x $93.70 GS-14 step 5 rate x 4 hours).
    GSA estimates it will take 5 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $93.70/hour, 1 hour each in years 
3, 5, 7, and 9 to develop new content for training for client agencies. 
Therefore, GSA estimates the total annual estimated cost for this part 
of the rule to be $469 (= 5 x $93.70 GS-14 step 5 rate x 1 hour).
    GSA estimates it will take 5 GSA Central Office program managers on 
average, with a GS-14 step 5 with an average hourly rate of $93.70/
hour, 1.5 hours each in years 1, 3, 5, 7, and 9 to provide training to 
client agencies. Therefore, GSA estimates the total annual estimated 
cost for this part of the rule to be $703 (= 5 x $93.70 GS-14 step 5 
rate x 1.5 hours).
    GSA estimates it will take 400 client agency employees on average, 
with a GS-13 step 5 with an average hourly rate of $79.29/hour, 1.5 
hours each in years 1, 3, 5, 7, and 9 to receive training. Therefore, 
GSA estimates the total annual estimated cost for this part of the rule 
to be $47,577 (= 400 x $79.29 GS-13 step 5 rate x 1.5 hours).
    GSA estimates it will take 11 GSA regional office employees on 
average, with a GS-13 step 5 with an average hourly rate of $79.29/
hour, 1 hour each in years 1, 3, 5, 7, and 9 to provide additional 
communications from GSA regional offices to client agency regional 
offices on the new training content. Therefore, GSA estimates the total 
annual estimated cost for this part of the rule to be $872 (= 11 x 
$79.29 GS-13 step 5 rate x 1 hour).
    GSA estimates it will take 400 client agency regional office 
employees on average, with a GS-13 step 5 with an average hourly rate 
of $79.29/hour, 0.5 hours each in years 1, 3, 5, 7, and 9 to review the 
GSA regional office communications on the new training content. 
Therefore, GSA estimates the total annual estimated cost for this part 
of the rule to be $15,859 (= 400 x $79.29 GS-13 step 5 rate x 0.5 
hours).
    GSA estimates it will take 2 GSA project managers on average, with 
a GS-13 step 5 with an average hourly rate of $79.29/hour, 2 hours each 
in years 1, 3, 5, 7, and 9 to share GSA location decision information 
with community organizations. Therefore, GSA estimates the total annual 
estimated cost for this part of the rule to be $317 (= 2 x $79.29 GS-13 
step 5 rate x 2 hours).
    Beyond the direct costs of educating users and stakeholders about 
the policy changes associated with the rule, the location decisions 
resulting from incorporating sustainability factors and engaging with 
local stakeholders could be different from what they otherwise might 
have been without this revised rule. GSA anticipates that changes in 
outcomes will come with changes in costs and benefits. Inclusion of 
those costs and benefits in the regulatory impact analysis are not 
easily quantifiable. This rule guides processes in location decisions 
but does not mandate outcomes. Outcomes, moreover, would be very 
difficult to anticipate across the breadth of the Federal location 
decisions, which are highly diverse in geography, scale, and function 
and highly variable in quantity across a given time period. By 
incorporating sustainability factors and local planning goals into 
agency location decision making, GSA seeks to maximize benefits to the 
Federal Government, the environment and local communities and minimize 
negative externalities. Direct costs and indirect impacts associated 
with location decisions will depend on the specific characteristics of 
each decision and will more appropriately be addressed at the time an 
agency makes such a decision. Lastly, while impossible to predict for 
future projects, in GSA's experience the community engagement and 
collaboration envisioned by the rule are more likely to lead to 
outcomes that reduce rather than increase project costs for two 
reasons:
    (1) effective collaboration with local stakeholders and 
coordination with local officials tends toward reducing risk of 
opposition to a project along with attendant costs associated with 
delay; and
    (2) site selections that align with local goals are often supported 
by local government through donation or discount to the Federal 
Government or assistance with land assembly.
b. Leased Buildings
    The Government must educate its leasing acquisition members via a 
government-wide plan to heighten their familiarity with the rule. Below 
is a list of training and communication activities related to 
regulatory familiarization and compliance that GSA anticipates will 
occur.
    GSA estimates it will take 3 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $93.70/hour, 5 hours each in year 
1 to develop new contract language relating to location and 
preferences. Therefore, GSA estimates the total estimated cost for this 
part of the rule to be $1,406 (= 3 x $93.70 GS-14 step 5 rate x 5 
hours).
    GSA estimates it will take 3 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $93.70/hour, 1 hour each in years 
2 and 3 to develop new contract language relating to location and 
preferences. Therefore, GSA estimates the total annual estimated cost 
for this part of the rule to be $281 (= 3 x $93.70 GS-14 step 5 rate x 
1 hour).
    GSA estimates it will take 1 GSA employee on average, with an SES 
Level 3 with an average hourly rate of $138.52/hour, 2 hours in year 1 
to develop new contract language relating to location and preferences. 
Therefore, GSA estimates the total estimated cost for this part of the 
rule to be $277 (= 1 x $138.52 SES Level 3 rate x 2 hours).
    GSA estimates it will take 1 GSA employee on average, with an SES 
Level 3 with an average hourly rate of $138.52/hour, 1 hour in years 2 
and 3 to develop new contract language relating to location and 
preferences. Therefore, GSA estimates the total annual estimated cost 
for this part of the rule to be $139 (= 1 x $138.52 SES Level 3 rate x 
1 hour).
    GSA estimates it will take 3 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $93.70/hour, 5 hours each in year 
1 to update existing locational policy guidance. Therefore, GSA 
estimates the total estimated cost for this part of the rule to be 
$1,406 (= 3 x $93.70 GS-14 step 5 rate x 5 hours).
    GSA estimates it will take 3 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $93.70/hour, 1 hour each in years 
2 and 3 to update existing locational policy guidance. Therefore, GSA 
estimates the total annual estimated cost for this part of the rule to 
be $281 (= 3 x $93.70 GS-14 step 5 rate x 1 hour).
    GSA estimates it will take 1 GSA employee on average, with an SES 
Level 3 with an average hourly rate of $138.52/hour, 2 hours in year 1 
to update existing locational policy guidance. Therefore, GSA estimates 
the total estimated cost for this part of the rule to be $277 (= 1 x 
$138.52 SES Level 3 rate x 2 hours).
    GSA estimates it will take 1 GSA employee on average, with an SES 
Level 3 with an average hourly rate of $138.52/hour, 1 hour in years 2 
and 3 to update existing locational policy guidance. Therefore, GSA 
estimates the total annual estimated cost for this part of the rule to 
be $139 (= 1 x $138.52 SES Level 3 rate x 1 hour).
    GSA estimates it will take 1 GSA employee on average, with a GS-13 
step 5 with an average hourly rate of $79.29/hour, 1 hour in year 1 to 
update training

[[Page 29266]]

for Lease Contracting Officers and Lease Project Managers. Therefore, 
GSA estimates the total estimated cost for this part of the rule to be 
$79 (= 1 x $79.29 GS-13 step 5 rate x 1 hour).
    GSA estimates it will take 1 GSA employee on average, with a GS-13 
step 5 with an average hourly rate of $79.29/hour, 1 hour in year 1 to 
deliver training to Lease Contracting Officers and Lease Project 
Managers. Therefore, GSA estimates the total estimated cost for this 
part of the rule to be $79 (= 1 x $79.29 GS-15 step 5 rate x 1 hour).
    GSA estimates it will take 650 GSA Lease Contracting Officers and 
Lease Project Managers on average, with a GS-12 step 5 with an average 
hourly rate of $66.68/hour, 1 hour each in year 1 to receive training. 
Therefore, GSA estimates the total estimated cost for this part of the 
rule to be $43,345 (= 650 x $66.68 GS-12 step 5 rate x 1 hour).
    GSA estimates it will take 650 GSA Lease Contracting Officers and 
Lease Project Managers on average, with a GS-12 step 5 with an average 
hourly rate of $66.68/hour, 0.5 hours each in years 3, 5, 7, and 9 to 
receive training. Therefore, GSA estimates the total annual estimated 
cost for this part of the rule to be $21,672 (= 650 x $66.68 GS-12 step 
5 rate x 0.5 hours).
    GSA estimates it will take 500 Lease Contracting Officers and Lease 
Project Managers from delegated leasing agencies \6\ on average, with a 
GS-12 step 5 with an average hourly rate of $66.68/hour, 1 hour each in 
year 1 to receive GSA training. Therefore, GSA estimates the total 
estimated cost for this part of the rule to be $33,342 (= 500 x $66.68 
GS-12 step 5 rate x 1 hour).
---------------------------------------------------------------------------

    \6\ The GSA Office of Leasing provided this number as an 
averaged total across delegated leasing agencies by surveying their 
internal database.
---------------------------------------------------------------------------

    GSA estimates it will take 500 Lease Contracting Officers and Lease 
Project Managers from delegated leasing agencies on average, with a GS-
12 step 5 with an average hourly rate of $66.68/hour, 0.5 hours each in 
years 3, 5, 7, and 9 to receive GSA training. Therefore, GSA estimates 
the total annual estimated cost for this part of the rule to be $16,671 
(= 500 x $66.68 GS-12 step 5 rate x 0.5 hours).
    GSA estimates it will take 9 employees from delegated leasing 
agencies on average, with a GS-13 step 5 with an average hourly rate of 
$79.29/hour, 1 hour each in year 1 to update delegated leasing agency 
training for Lease Contracting Officers and Lease Project Managers. 
Therefore, GSA estimates the total estimated cost for this part of the 
rule to be $714 (= 9 x $79.29 GS-13 step 5 rate x 1 hour).
    GSA estimates it will take 9 employees from delegated leasing 
agencies on average, with a GS-13 step 5 with an average hourly rate of 
$79.29/hour, 1 hour each in year 1 to deliver training to Lease 
Contracting Officers and Lease Project Managers. Therefore, GSA 
estimates the total estimated cost for this part of the rule to be $714 
(= 9 x $79.29 GS-13 step 5 rate x 1 hour).
    GSA estimates it will take 500 Lease Contracting Officers and Lease 
Project Managers from delegated leasing agencies on average, with a GS-
12 step 5 with an average hourly rate of $66.68/hour, 1 hour each in 
year 1 to receive delegated leasing agency training. Therefore, GSA 
estimates the total estimated cost for this part of the rule to be 
$33,342 (= 500 x $66.68 GS-12 step 5 rate x 1 hour).
    GSA estimates it will take 500 Lease Contracting Officers and Lease 
Project Managers from delegated leasing agencies on average, with a GS-
12 step 5 with an average hourly rate of $66.68/hour, 0.5 hours each in 
years 3, 5, 7, and 9 to receive delegated leasing agency training. 
Therefore, GSA estimates the total estimated cost for this part of the 
rule to be $16,671 (= 500 x $66.68 GS-12 step 5 rate x 0.5 hours).
Total Government Costs
    GSA estimates the total estimated Government costs to be $743,118 
for years 1 through 10. A breakdown of total estimated Government costs 
by year is provided in the table below.\7\
---------------------------------------------------------------------------

    \7\ Costs are rounded to the nearest thousand.

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

[[Page 29267]]

[GRAPHIC] [TIFF OMITTED] TR22AP24.800

2. Public Costs

    Public costs associated with this rule include small entities of 
community organizations in areas GSA is considering for Federally owned 
new construction. GSA assumes, for each location decision, the agency 
will engage with one small entity, which, on average, will have two 
employees. Those employees would receive, review, and share GSA 
location decision information. GSA estimates the average hourly rate of 
$93.70 for the small entity employees as the private sector pay 
equivalent of a GS-14 step 5. GSA estimates it will engage with 1 small 
entity on average with 2 small entity employees on average, with a GS-
14 step 5 with an average hourly rate of $93.70/hour, 4 hours each in 
years 1, 3, 5, 7, and 9 to receive, review and share GSA location 
decision information. Therefore, GSA estimates the total annual 
estimated cost for this part of the rule to be $750 (= 2 x $93.70 GS-14 
step 5 rate x 4 hours).
Total Public Costs
    GSA estimates the total estimated public costs to be $3,748 for 
years 1 through 10. A breakdown of total estimated public costs by year 
is provided in the table below.\8\
---------------------------------------------------------------------------

    \8\ Costs are rounded to the nearest thousand.
    [GRAPHIC] [TIFF OMITTED] TR22AP24.801
    
3. Overall Total Additional Costs

    The overall total additional undiscounted cost of this rule is 
estimated to be $746,866 over a 10-year period. GSA did not identify 
any cost savings based on the impact of the rule. A breakdown of 
overall total additional costs by year is provided in the table 
below.\9\
---------------------------------------------------------------------------

    \9\ Costs are rounded to the nearest thousand.

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

[[Page 29268]]

[GRAPHIC] [TIFF OMITTED] TR22AP24.802

    The following is a summary of the estimated costs calculated for a 
10-year time horizon at a 3- and 7-percent discount rate:
[GRAPHIC] [TIFF OMITTED] TR22AP24.803

VI. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FMR do not impose recordkeeping or information collection 
requirements, or the collection of information from offerors, 
contractors, or members of the public that require the approval of OMB 
under 44 U.S.C. 3501 et seq.

VII. Small Business Regulatory Enforcement Fairness Act

    This final rule is also exempt from congressional review prescribed 
under 5 U.S.C. 801 since it relates solely to agency management and 
personnel.

VIII. Severability

    GSA is adding a new provision on severability at 41 CFR 102-83.150, 
which states that all provisions included in part 102-83 are separate 
and severable from one another.
    Regulations concerning location policy do a number of things--from 
identifying and elaborating upon the factors that are advantageous to 
the Government when planning for location decisions, to outlining the 
consultation and engagement requirements with local officials and the 
communities potentially impacted by Federal location decisions, to 
explaining the role of agencies when planning for such decisions.
    Accordingly, if any particular term or provision in part 102-83, or 
the application thereof to any agency or circumstance, is determined by 
a court of competent jurisdiction to be invalid or unenforceable, the 
remaining terms or provisions, or the application of such term or 
provision to agencies or circumstances other than those to which it is 
invalid or unenforceable, will not be affected thereby, and each term 
and provision of this rule will be valid and enforced to the fullest 
extent permitted by law. For example, if any location factor is 
determined to be invalid, the other factors would remain in full force 
and effect.
    Further, any cross-references that appear throughout part 102-83 
are duplicative and are intended only to make the regulations more 
user-friendly. Invalidation of a particular provision that is cross-
referenced elsewhere will not materially alter the provision that 
contains the cross-reference.
    In summary, removal of any particular provision from part 102-83 
would not render the entire regulatory scheme unworkable. Thus, GSA 
considers each of the provisions in part 102-83 to be

[[Page 29269]]

separate and severable from one another. In the event of a stay or 
invalidation of any particular provision, it is GSA's intention that 
the remaining provisions will continue in effect.

List of Subjects in 41 CFR Part 102-83

    Federal buildings and facilities, Government property management, 
Rates and fares.

Robin Carnahan,
Administrator of General Services.

0
For the reasons stated in the preamble, GSA revises 41 CFR part 102-83 
to read as follows:

PART 102-83--LOCATION OF SPACE

    Authority:  40 U.S.C. 113(d), 121(c), 581(c)(1), 584, 585, and 
901-905; section 1 of Reorganization Plan No. 18 of 1950, 15 FR 
3177, 64 Stat. 1270 (40 U.S.C. 301 note); 28 U.S.C. 462(f); 7 U.S.C. 
2204b; 41 U.S.C. 3301 et seq.; 54 U.S.C. 300101 et seq.; E.O. 12072, 
43 FR 36869, 3 CFR, 1978., p. 213; and E.O. 13006, 61 FR 26071, 3 
CFR, 1996 Comp., p. 195.
Subpart A--General Provisions
Sec.
102-83.05 What does this part cover?
102-83.10 What are the governing authorities for this part?
102-83.15 Which Federal agencies must comply with these provisions?
102-83.20 How does an agency request a deviation from the provisions 
of this part?
102-83.25 Intentionally Omitted

Subpart A--General Provisions


Sec.  102-83.05  What does this part cover?

    This part covers GSA's considerations when making location 
decisions for Federal agencies in both Federally owned and leased space 
and the considerations of those Federal agencies operating under or 
subject to the real property authorities of the Administrator of 
General Services (Administrator), including those using delegated real 
property authority, when making their own location decisions. It 
directs practices that foster the policies and programs of the Federal 
Government and improve the management, efficiency, and effectiveness of 
Government activities.


Sec.  102-83.10   What are the governing authorities for this part?

    The authorities for this regulation are as follows:
    (a) Rural Development Act of 1972, as amended (7 U.S.C. 2204b-1), 
requires executive agencies to give first priority to locating in rural 
areas.
    (b) Federal Urban Land Use Act of 1949, as amended (40 U.S.C. 901-
905), requires GSA and other Federal agencies to consult and engage 
with the unit of general local government exercising zoning and land 
use jurisdiction. To the greatest extent possible, GSA must coordinate 
Federal projects with local planning agencies to be in accordance with 
zoning, land use practices and planning and development objectives.
    (c) Competition in Contracting Act of 1984, as amended, (41 U.S.C. 
3301 et seq.) (CICA), requires executive agencies to consider whether 
the delineated area will provide for adequate competition when 
acquiring leased space.
    (d) 40 U.S.C. 113(d) authorizes the Administrator to provide space 
to the Senate, the House of Representatives, and the Architect of the 
Capitol upon their request.
    (e) 40 U.S.C. 121(c) authorizes the Administrator to issue 
regulations that the Administrator considers necessary to carry out the 
Administrator's functions under subtitle I of title 40 of the United 
States Code.
    (f) National Historic Preservation Act of 1966, as amended, 54 
U.S.C. 300101 et seq., encourages, among other things, the public and 
private preservation and utilization of all usable elements of the 
Nation's historic built environment.
    (g) 40 U.S.C. 584 authorizes the Administrator to assign and 
reassign space for an executive agency in any Federal Government-owned 
or leased building.
    (h) 40 U.S.C. 581(c)(1) authorizes the Administrator to acquire, by 
purchase, condemnation or otherwise, real estate and interests in real 
estate.
    (i) 40 U.S.C. 585 authorizes the Administrator to enter into a 
lease agreement for the accommodation of a federal agency in a building 
or improvement that is in existence or being erected by the lessor to 
accommodate the federal agency, and to assign and reassign the leased 
space to a federal agency.
    (j) Section 1 of Reorganization Plan No. 18 of 1950, 15 FR 3177, 64 
Stat. 1270 (40 U.S.C. 301 note), which, with certain exceptions, 
transferred all function with respect to acquiring space in buildings 
by lease, and all functions with respect to assigning and reassigning 
space in buildings for use by agencies (including both space acquired 
by lease and space in Government-owned buildings) to the Administrator.
    (k) 28 U.S.C. 462(f) authorizes the Administrator to provide space 
to the judicial branch upon request from the Director of the 
Administrative Office of the United States Court.
    (l) E.O. 12072 encourages Federal agencies to locate and use real 
estate in ways that serve to strengthen the Nation's cities and make 
them attractive places to live and work, conserve existing urban 
resources, and encourage the development and redevelopment of cities. 
Toward this end, the E.O. requires executive agencies to give first 
consideration to centralized community business areas and other areas 
recommended by local officials as possible locations for Federal 
facilities when locating in urban areas.
    (m) E.O. 13006 requires that, when operationally appropriate and 
economically prudent, and subject to the RDA and E.O. 12072, when 
locating Federal facilities, Federal agencies must give first 
consideration to historic properties within historic districts. If no 
such property is suitable, then Federal agencies must consider other 
developed or undeveloped sites within historic districts. Federal 
agencies must then consider historic properties outside of historic 
districts, if no suitable site within a district exists.


Sec.  102-83.15  Which Federal agencies must comply with these 
provisions?

    All Federal agencies operating under or subject to the real 
property authorities of the Administrator, including those using 
delegated real property authority, must comply with these provisions. 
Refer to 41 CFR 102-71.20 for the definition of Federal agency. Federal 
agencies using independent authority must still comply with statutory 
requirements and E.O.s (consistent with such authority), but this part 
does not apply to these agencies. Agencies with independent authority 
may use these provisions at agency discretion.


Sec.  102-83.20   How does an agency request a deviation from the 
provisions of this part?

    Refer to Sec. Sec.  102-2.60 through 102-2.110 of this chapter for 
information on how to obtain a deviation from this part.


Sec.  102-83.25  Intentionally Omitted.

Subpart B--Location of Space
Sec.
102-83.30 What basic location of space policy governs a Federal 
agency?
102-83.35 Is there a general hierarchy of consideration that 
agencies must follow in their utilization of space?
102-83.40 What is a delineated area?
102-83.45 What is a Core-Based Statistical Area?
102-83.50 How is a Core-Based Statistical Area defined?
102-83.55 What is a rural area?
102-83.60 What is an urban area?
102-83.65 What is a principal city?
102-83.70 What are centralized community business areas and 
centralized business districts?
102-83.75 What is environmental justice?
102-83.80 What is equitable development?

[[Page 29270]]

102-83.85 In addition to Federal agency mission, security and 
program requirements, what other factors and principles must 
agencies consider when establishing a potential delineated area?
102-83.90 What hierarchy of geographic consideration must agencies 
apply to location decisions for new Federal facilities or leased 
locations?
102-83.95 How must agencies consult and engage with local officials 
to comply with the consultation and engagement elements of part 102-
83?
102-83.100 What flexibility do Federal agencies have to implement 
part 102-83 in high cost areas?
102-83.105 Are Federal agencies required to give preference to 
historic properties when acquiring leased space?
102-83.110 Does GSA provide assistance to Federal agencies by 
consulting and engaging with local officials to establish 
recommended delineated areas?
102-83.115 Are Federal agencies required to consider whether the CBA 
or other areas recommended by local officials will provide for 
adequate competition when acquiring leased space?
102-83.120 What information and data must agencies provide to the 
Administrator of General Services, or other acquiring agency head, 
to comply with the provisions of this part?
102-83.125 Who must approve the final delineated area?
102-83.130 When is written justification for a delineated area in 
urban areas required?
102-83.135 How will GSA negotiate changes to the final delineated 
area with requesting agencies?
102-83.140 Where may Federal agencies appeal GSA decisions and 
recommendations concerning the delineated area?
102-83.145 Do these regulations apply in GSA's National Capital 
Region?

Subpart B--Location of Space


Sec.  102-83.30   What basic location of space policy governs a Federal 
agency?

    (a) All Federal agencies when planning for location decisions under 
the authorities of the Administrator, including those using delegated 
real property authority, are required to apply the applicable laws, 
regulations, and E.O.s outlined in this part to their activities. This 
applies to agencies using the space and to agencies acquiring a 
leasehold interest or a new site to accommodate a space requirement.
    (b) Federal agencies intending to use space under this part are 
responsible for identifying the geographic area within which to locate 
their activities (i.e., the delineated area) to support their mission 
and program requirements. Agencies must define delineated areas that 
support the applicable laws, regulations, and E.O.s outlined in this 
part. In addition to these responsibilities, agencies conducting a 
space acquisition have certain additional specific responsibilities as 
outlined in this part.


Sec.  102-83.35  Is there a general hierarchy of consideration that 
agencies must follow in their utilization of space?

    Yes. In accordance with part 79, Assignment and Utilization of 
Space, Federal agencies must follow the hierarchy of consideration, 
giving first priority to Government-owned and Government-leased 
buildings. When no existing Government-owned or Government-leased space 
meets the space need, Federal agencies must follow the hierarchy of 
geographic consideration in Sec.  102-83.95 when obtaining new space as 
identified in this subpart.


Sec.  102-83.40   What is a delineated area?

    The delineated area is the specific geographic boundary within 
which space will be obtained to satisfy a Federal agency space 
requirement.


Sec.  102-83.45   What is a Core-Based Statistical Area?

    A Core-Based Statistical Area (CBSA) is a geographic area 
established by the Office of Management and Budget (OMB). Current CBSAs 
are listed in OMB Bulletin No. 20-01, ``Revised Delineations of 
Metropolitan Statistical Areas, Micropolitan Statistical Areas, and 
Combined Statistical Areas, and Guidance on Uses of the Delineations of 
These Areas,'' dated March 6, 2020, or succeeding OMB Bulletin. In this 
part, the CBSA designation is used to distinguish between urban and 
rural areas, which have different directives associated with them.


Sec.  102-83.50   How is a CBSA defined?

    A CBSA is defined by OMB using U.S. Census data as an area that has 
at its core an urban center and includes the adjacent areas that are 
socioeconomically tied to the urban center by commuting patterns 
pursuant to the Standards for Delineating Metropolitan and Micropolitan 
Statistical Areas, as updated periodically and published in the Federal 
Register, pursuant to 31 U.S.C. 1104(d) and 44 U.S.C. 3504.


Sec.  102-83.55   What is a rural area?

    A rural area is any area that is not contained within the 
geographic boundaries of a CBSA.


Sec.  102-83.60  What is an urban area?

    An urban area is any area contained within the geographic 
boundaries of a CBSA.


Sec.  102-83.65   What is a principal city?

    (a) A principal city is an incorporated place or census designated 
place within a CBSA that meets certain employment and population-based 
criteria. Major metropolitan areas typically have several principal 
cities.
    (b) The principal city designation is established by OMB pursuant 
to the Standards for Delineating Metropolitan and Micropolitan 
Statistical Areas, as updated periodically and published in the Federal 
Register, pursuant to 31 U.S.C. 1104(d) and 44 U.S.C. 3504(e). OMB 
regularly publishes an updated list of Principal Cities (OMB Bulletin 
No. 20-01, and succeeding). In this part, the principal city 
designation is used to help the Federal agency focus local consultation 
and engagement.


Sec.  102-83.70   What are centralized community business areas and 
centralized business districts?

    A centralized community business area (CBA) or centralized business 
district, also commonly referred to as a central business district, is 
an area of concentration of commercial real estate and activity within 
a principal city, including other specific areas of similar character 
that may be recommended by local officials. The CBA may be part of a 
traditional downtown area or part of another area that local government 
officials have identified as supportive of their long-term economic 
development objectives. CBAs are designated by local governments and 
not by Federal agencies, so Federal agencies must consult and engage 
with local officials to understand the current boundaries of these 
areas. As described in E.O. 12072, these areas may include other 
specific areas that are recommended by local officials.


Sec.  102-83.75   What is environmental justice?

    Environmental justice is the just treatment and meaningful 
involvement of all people, regardless of income, race, color, national 
origin, Tribal affiliation, or disability, in agency decision-making 
and other Federal activities that affect human health and the 
environment so that people are fully protected from disproportionate 
and adverse human health and environmental effects including risks and 
hazards, such as those related to climate change and cumulative impacts 
of environmental and other burdens on communities with environmental 
justice concerns; and have equitable access to a healthy, sustainable, 
and resilient environment. Advancing environmental justice further 
requires Federal agencies to provide opportunities for meaningful 
engagement of the public, including communities with environmental 
justice concerns who are potentially affected by

[[Page 29271]]

Federal activities. When planning for location decisions, which is the 
federal activity for purposes of this rule, Federal agencies must be 
especially mindful of how proposed locations would impact communities 
with environmental justice concerns. As appropriate and consistent with 
applicable law, Federal agencies should seek to minimize negative and 
maximize positive impacts in these areas, using available data and 
meaningful engagement with local stakeholders to identify such 
communities, and identify, analyze, and address adverse human health 
and environmental effects (including risks) and hazards of the Federal 
activity.


Sec.  102-83.80  What is equitable development?

    Equitable development is a positive development approach that 
employs processes, policies, and programs that aim to meet the needs of 
all communities and community members, with a particular focus on 
underserved communities and populations. When seeking Federal 
locations, agencies should, to the extent consistent with applicable 
law, consider the needs of communities, including those communities 
that are underserved, through policies and actions that reduce 
disparities while fostering communities that are healthy and vibrant.


Sec.  102-83.85   In addition to Federal agency mission, security and 
program requirements, what other factors and principles must agencies 
consider when establishing a potential delineated area and planning for 
location decisions?

    (a) In addition to agency mission, security and program 
requirements, Federal agencies also must give serious consideration to 
the impact a location decision will have on improving the social, 
economic, environmental, and cultural conditions of communities, 
including those that have been historically harmed by environmental 
injustice and inequality, as well as avoiding harm to such communities, 
while at the same time promoting efficient and cost-effective 
Government real estate management. These factors and principles derive 
from the relevant authorities in this part and include the following:
    (1) Cost to the Government, including both upfront real estate 
acquisition as well as long-term operating costs;
    (2) Opportunities to reduce the Federal real estate footprint and 
optimize agency space usage;
    (3) Ability to manage the local Federal real estate portfolio 
strategically to optimize effective operations over the long term; and
    (4) Consideration of the competition requirements under CICA, if 
applicable to the site location decision.
    (b) In addition to agency mission, security and program 
requirements, Federal agencies also must consider a series of factors 
meant to promote Federal investment that supports larger Federal 
program goals and local development objectives. These factors include 
the following:
    (1) Compatibility with State and local economic development 
objectives, such as local and regional comprehensive plans, housing and 
transportation plans, neighborhood scale plans and local plans covering 
sustainability and resilience goals. When planning for location 
decisions, agencies should align, where possible, with local and 
regional planning goals. Agencies should meaningfully engage with local 
officials and community members potentially impacted by a location 
decision and consider their recommendations in light of Federal mission 
needs and equitability and sustainability goals, including where 
affected populations have experienced historic and ongoing harms due to 
environmental injustice and inequality;
    (2) Promoting environmentally sustainable development, reduced 
greenhouse gas emissions, increased resilience to the impacts of 
climate change, and stewardship of regional natural resources;
    (3) Maximizing the use of existing resources by leveraging 
investment in existing infrastructure;
    (4) Prioritizing development of brownfields (properties, the 
expansion, redevelopment, or reuse of which may be complicated by the 
presence or potential presence of a hazardous substance, pollutant, or 
contaminant), greyfields (previously developed land that is 
underutilized) and infill development;
    (5) Locating facilities along transportation corridors to encourage 
the use of alternate modes of transportation, and seeking efficient 
locations that provide a variety of transportation options for 
employees and the public, especially walking, biking and public transit 
options, while maximizing use of existing infrastructure and minimizing 
employee and visitor travel by car;
    (6) Prioritizing central business districts, existing employment 
centers and rural town centers, and locating in areas that are 
accessible by public transit, where it exists, to a broad range of the 
workforce and population, such as those seeking services or needing to 
visit Federal space locations;
    (7) Avoiding development in floodplains or impacts to wetlands to 
the extent practicable;
    (8) Fostering protection of the natural environment by preserving 
ecosystems, including native ecosystems, avoiding development of green 
space, and promoting climate change adaptation planning;
    (9) Advancing environmental justice and equitable development; and
    (10) Advancing Federal and local historic preservation objectives 
and promoting the preservation of historic resources and other existing 
buildings.
    (c) The factors listed in paragraphs (a) and (b) of this section 
must be considered when applying the hierarchy of geographic 
consideration in Sec.  102-83.90. The optimal Federal location decision 
is the choice that meets Federal agency mission, security and program 
requirements and is cost effective, while leveraging Federal 
development in support of these other Federal programs policies and 
goals, as well as local development objectives.


Sec.  102-83.90   What hierarchy of geographic consideration must 
agencies apply to location decisions?

    (a) Agencies must develop policies and procedures for applying the 
goals of this part in their business practices. These policies and 
procedures must include methods for applying the hierarchy outlined in 
paragraph (b) of this section.
    (b) When making new location decisions, agencies must give 
preference to geographic areas in the following order:
    (1) Agencies must give first priority to locating in a rural area 
in accordance with the Rural Development Act of 1972 (RDA). As with 
other elements of this part, acquiring agencies must develop their own 
policies and procedures for implementing the goals of the RDA. Agencies 
must consider the objectives outlined in Sec.  102-83.85 and use these 
principles and factors to differentiate among potential locations. 
Agencies are encouraged to seek a location that best meets these 
factors or meet multiple factors. If an agency's mission cannot be 
accomplished in a rural area, the agency may locate in an urban area.
    (2) When an agency's mission requires location in an urban area, 
the agency must give priority to the CBA within a principal city of a 
CBSA or other areas as recommended by local officials. Agencies must 
consider the objectives outlined in Sec.  102-83.85 and use these 
principles and factors to differentiate among potential locations. 
Agencies are encouraged to seek a location that best

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meets these factors or meets multiple factors.
    (3) If an agency mission cannot be met within a principal city, or 
where areas, such as existing employment centers, outside the principal 
city offer better opportunities to advance the objectives outlined in 
Sec.  102-83.85, in accordance with their established policies and 
procedures, agencies may proceed to seek space in those areas.
    (4) Once an agency has set a delineated area in a rural or urban 
area, agencies must comply with the requirements for consideration of 
historic properties and districts set forth in Sec.  102-78.60.


Sec.  102-83.95   How must agencies consult and engage with local 
officials and communities to comply with the consultation and 
engagement elements of part 102-83?

    Agencies have wide latitude to develop their own internal policies 
for consulting and engaging in ways that are both effective and 
efficient based upon the intent of this part, the relevant development 
context and the agency's core business practices. Agencies must develop 
internal policies and procedures that guide consultation and engagement 
using different methods for actions of varying scale or scope. Location 
decisions to support fee simple acquisition and Federal construction in 
most cases will require direct consultation and engagement with local 
officials during the location evaluation process to meet the intent of 
this part. Conversely, for acquisition of existing space through a 
lease contract, agencies may develop internal procedures that apply the 
hierarchy outlined in this part such that no transaction-specific 
consultation or engagement with local officials would be required if 
the delineated area is within a recognized CBA or other area 
recommended by local officials. To expedite effective and efficient 
implementation of this part, where appropriate, agencies are encouraged 
to pursue consultation and engagement actively with local officials and 
communities, as appropriate, to discuss development goals well ahead of 
specific space actions.
    (a) Under multiple guiding authorities, acquiring agencies must 
consult and engage with local officials to apply the principles 
outlined in this part properly. Consultation and engagement and 
consideration of local input must occur in urban areas, and agencies 
are encouraged to perform similar consultation and engagement in rural 
areas, as appropriate.
    (b) Federal agencies should refer to their agency Tribal 
consultation policies and applicable legal requirements, and confer if 
needed with agency counsel, to determine whether consultation with 
Tribal governments, Alaska Native corporations, Native Hawaiian 
Organizations, or other entities is required, such as if the Federal 
location decision may include or affect Tribal trust or reserved lands, 
and natural resources, and if so conduct such consultation.
    (c) Where communities are likely to face displacement risks 
associated with a Federal location decision, based on agency analysis 
of existing data and consultation and engagement with local officials, 
or where communities have been harmed historically by inequity, such as 
persistent poverty or underinvestment, or environmental injustice, 
agency engagement should occur not only with relevant regional and 
local officials but also with members of the affected communities.
    (d) Meaningful engagement with local stakeholders outside of 
government or those who have been historically left out of community 
and economic development planning requires agencies to identify and 
include community members in federal location planning activities early 
enough in the process for them to have insight into and for their input 
to be reflected in the decision making process. This includes 
opportunities for significant participation through modes that reduce 
known barriers to participation, such as plain language use, 
translation, transportation, digital and non-digital access, culture, 
time of day, and availability of childcare and other supportive 
services.


Sec.  102-83.100   What flexibility do Federal agencies have to 
implement part 102-83 in high cost areas?

    Agencies have flexibility in considering the differing costs among 
principal cities within a single CBSA and in setting delineated areas 
to incorporate lower-cost markets.
    There may be some instances where the head of the responsible 
acquiring agency or the head of the agency's designee determines that 
cost and security issues take precedence over the hierarchy of 
consideration in this part. Federal agencies may deviate from the 
hierarchy only where doing so would represent significant cost savings 
or security advantages to the Government. In such cases, agencies must 
consult and engage with and consider the recommendations of local 
officials, review and affirm this determination, and document the file 
accordingly.
    In every instance, agencies must seek to meet the intent of the 
governing authorities described in Sec.  102-83.10, and they must 
incorporate their applicable process into their internal policies and 
procedures.


Sec.  102-83.105   Are Federal agencies required to give preference to 
historic properties when acquiring leased space?

    Yes. Federal agencies must give a price preference to historic 
properties when acquiring leased space. See Sec.  102-73.30 of this 
chapter for additional guidance.


Sec.  102-83.110  Does GSA provide assistance to Federal agencies by 
consulting and engaging with local officials to establish recommended 
delineated areas?

    Yes. GSA may, at its discretion, assist agencies by consulting and 
engaging with local officials to establish recommended delineated areas 
for use in Federal location decisions. These GSA-recommended delineated 
areas may be proactively developed independent of a specific space 
requirement. These recommended delineated areas will take into 
consideration the factors discussed in this part. The final delineated 
area used in the space acquisition may differ from these recommended 
areas, depending on the agency mission requirements, CICA and other 
factors relevant to a specific space action.


Sec.  102-83.115  Are Federal agencies required to consider whether the 
CBA or other areas recommended by local officials will provide for 
adequate competition when acquiring leased space?

    Yes. In accordance with CICA, Federal agencies must consider 
whether restricting the delineated area for obtaining leased space to 
CBAs or other areas recommended by local officials will provide for 
adequate competition when acquiring space. If a Federal agency 
determines that the delineated area must be expanded beyond the 
preferred areas to provide adequate competition, the agency may expand 
the delineated area in consultation and engagement with local 
officials. Federal agencies must continue to include the preferred area 
in such expanded areas.


Sec.  102-83.120  What information and data must agencies provide to 
the Administrator of General Services, or other acquiring agency head, 
to comply with the provisions of this part?

    Efficient and effective space management of Federally owned and 
leased facilities through the activities described in this part 
requires that Federal agencies cooperate with acquiring agencies and 
furnish any related data and information requested by the acquiring 
agencies, to the extent

[[Page 29273]]

not prohibited by law. This includes information or data that allows 
for:
    (a) Selecting, acquiring, managing, and disposing of Federal space 
in a manner that will foster the policies and programs of the Federal 
Government and improve the management and administration of Government 
activities;
    (b) Issuing regulations, standards and criteria for the selection, 
acquisition and management of Federally owned and leased space;
    (c) Surveying space requirements, space utilization and daily 
occupancy data of executive agencies;
    (d) Meeting essential space requirements in a manner that is 
economically feasible and prudent; and
    (e) Making maximum use of existing Federally controlled facilities 
that, in the acquiring agency head's judgment, are adequate or 
economically adaptable to meeting the space needs of executive 
agencies.


Sec.  102-83.125  Who must approve the final delineated area?

    The Federal agency conducting the space acquisition must approve 
the final delineated area for the site acquisition or action. The 
acquiring agency must confirm that the final delineated area complies 
with all applicable laws, regulations and E.O.s.


Sec.  102-83.130   When is written justification for a delineated area 
in urban areas required?

    If the delineated area identified is outside the CBA in a principal 
city, or differs from a GSA-recommended delineated area that has been 
developed in accordance with the guiding authorities in this part, an 
agency must demonstrate, in writing, that preference has been given to 
the CBA of a principal city or GSA's recommended delineated area, and 
that the agency considered the environmental and socioeconomic factors 
in subpart B, Location of Space, of this part. The agency justification 
also must address, at a minimum, the efficient performance of the 
mission(s) and program(s) of the agency, the nature and function of the 
facility or facilities involved, and the convenience of the public 
being served.


Sec.  102-83.135   How will GSA negotiate changes to the final 
delineated area with requesting agencies?

    For space acquisitions conducted by GSA, if, based on its review of 
a requesting agency's identified delineated area, GSA concludes that 
the requesting agency's identified delineated area should be modified, 
GSA will discuss its recommended changes with the requesting agency. 
If, after discussions, the requesting agency does not agree with GSA's 
delineated area recommendation, the requesting agency may appeal GSA's 
determination in accordance with Sec.  102-83.140. If a requesting 
agency elects to ask for a review of GSA's delineated area 
recommendation, GSA will continue to work on the requirements 
development and other activities related to the requesting agency's 
space request. GSA will not issue a solicitation to satisfy an agency's 
space request until a final delineated area is determined through the 
appeal process.


Sec.  102-83.140   Where may Federal agencies appeal GSA decisions and 
recommendations concerning the delineated area?

    Agencies may appeal decisions and recommendations, in writing, to 
the GSA Regional Commissioner of Public Buildings in the region where 
the space acquisition is to take place or to the GSA Regional 
Commissioner's designee. The written request for review must include 
all relevant facts and other considerations and must justify the 
alternative delineated area identified by the requesting agency with 
regard to the location requirements set forth in all applicable 
statutes, E.O.s and regulations. Once submitted to the Regional 
Commissioner or the Regional Commissioner's designee, the requesting 
agency's appeal will proceed according to the process established 
internally by GSA.


Sec.  102-83.145  Do these regulations apply in GSA's National Capital 
Region?

    The presence of the Federal Government in the National Capital 
Region is such that the distribution of Federal facilities has been, 
and will continue to be, a major influence on the character and extent 
of development in the National Capital Region. In view of the special 
nature of the National Capital Region and the preponderance of Federal 
space contained therein, these regulations will be applied in the 
National Capital Region in conjunction with regional plans and will 
guide the development of strategic plans for the housing of Federal 
agencies within the National Capital Region.

Subpart C--Severability


Sec.  102-83.150   What portions of this part are severable?

    All provisions of this part are separate and severable from one 
another. If any provision is stayed or determined to be invalid, it is 
GSA's intention that the remaining provisions will continue in effect.

[FR Doc. 2024-08452 Filed 4-19-24; 8:45 am]
BILLING CODE 6820-14-P