RD Instruction 2000-Z

PART 2000 - GENERAL

SUBPART Z - MEMORANDUM OF UNDERSTANDING BETWEEN THE BUREAU OF LAND
MANAGEMENT AND THE FARMERS HOME ADMINISTRATION

§2000.1251 [General]{.underline}.

The Farmers Home Administration (FmHA) has entered into a Memorandum of
Understanding with the Bureau of Land Management (BLM). The memorandum
provides for cooperation, to the extent possible, in the use of the
agencies\' authorities to assist rural communities in obtaining land for
housing and public facilities and services to meet the needs caused by
energy development activities in areas impact by increased coal or
uranium development activities. The memorandum is attached as Exhibit A.

§2000.1252 [Authorities]{.underline}.

The authorities for the respective agencies are cited in the memorandum.

§2000.1253 [Coordination]{.underline}.

Personnel of the Farmers Home Administration and Bureau of Land
Management must coordinate the implementation of this memorandum at the
National and State levels.

§2000.1254 - 2000.1300 \[Reserved\]

Attachment: Exhibit A

## oOo

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Distribution: W, S, D, C Administration

General

## 1

(1-28-81) PN 763

RD Instruction 2000-Z

Exhibit A

## UNITED STATES DEPARTMENT OF AGRICULTURE

## FARMERS HOME ADMINISTRATION

## Washington, D.C. 20250

> [Memorandum of Understanding between the Bureau\
> of Land Management (BLM), U.S. Department of\
> Interior, and the Farmers Home Administration\
> (FmHA), U.S. Department of Agriculture, pertaining\
> to the use and/or disposal of Public Lands in Coal\
> and Uranium Impacted Areas]{.underline}.

I. PREAMBLE. This Memorandum of Understanding sets forth the desire of
FmHA and BLM to cooperate in use of their respective authorities, to the
extent possible, to assist rural communities in obtaining land for
housing and public facilities and services to meet the needs caused by
energy development activities in areas impacted by increased coal or
uranium development activities.

II\. AUTHORITY

1\. [Section 601 of Public Law 95-620]{.underline}, the Powerplant and
Industrial Fuel Use Act of 1978, (92 Stat. 3323) authorizes the Farmers
Home Administration to provide assistance to areas impacted by increased
coal or uranium development activities.

2\. [Section 603 of Public Law 92-419]{.underline}, the Rural
Development Act of 1972, (86 Stat. 675) authorizes the Secretary of
Agriculture to provide leadership and coordination of rural development
programs within the executive branch.

3\. [Public Law 94-57, the Federal Land Policy and Management Act of
1976, (90 Stat. 2743) (FLPMA)]{.underline}, authorizes the Secretary of
Interior to sell and/or authorize the use of a tract of Public lands
(except lands in units of the National Wilderness Preservation Systems,
National Wild and Scenic Rivers Systems, and National System of Trails)
when the Secretary determines that the sale or use of the tract meets
certain disposal criteria and such disposal has been identified through
land use planning by the Secretary. Sec. 307 of FLPMA is BLM\'s
authorization to enter into this agreement.

III\. DEFINITIONS

1\. [Approved designated area]{.underline} can be a group of counties, a
county, or a part of a county designated as an energy impacted area by
the Governor of a State and approved by the Secretary of Energy.

2\. [Coal and uranium development activities]{.underline} is the
production, processing, or transportation of coal or uranium.

3\. [Energy impacted area]{.underline} is an area where coal or uranium
development activities have a significant impact on the socioeconomic
structure of the area and which meets the following criteria:

(1-28-81) PN 763

RD Instruction 2000-Z

Exhibit A

Page 2

a\. Either employment in coal or uranium production development
activities in the area is increased for the most recent calendar year by
eight percent or more from the immediately preceding year, or employment
in such activities will increase eight percent or more per year during
each of the three calendar years after the date of such finding;

b\. Such employment increase has required or will require substantial
increases in housing or public facilities or services or combination of
both in the area; and

c\. The State and the local government or governments serving the area
lack the financial and other resources to meet the increase in demand
for housing or public facilities or services within a reasonable time.

4\. [Public facilities]{.underline} are installations open to the public
and used for the public welfare. This includes but is not limited to:
hospitals, clinics, firehouses, parks, recreation areas, sewer plants,
water plants, community centers, libraries, city or town halls,
jailhouses, courthouses, and schoolhouses.

5\. [Public lands]{.underline} means any land or interest in land owned
by the United States within the several States and administered by the
Secretary of Interior through the Bureau of Land Management, without
regard to how the United States acquired ownership, except lands located
on the Outer Continental Shelf and lands held for the benefit of
Indians, Aleuts, and Eskimos.

6\. [Public services]{.underline} is the provision to the public of
services such as health care, fire and police protection, recreation,
etc.

7\. [Site]{.underline} is a plot of land which is suitable or can be
made suitable for providing housing, public facilities, or services.

8\. [State Investment Strategy for Energy Impacted Areas]{.underline} is
the investment strategy for the development of approved designated areas
within a State as proposed by the Governor and approved by FmHA.

IV\. GENERAL GUIDELINES

1\. The FmHA administers the Energy Impacted Area Development Assistance
Program (Section 601) through its State and District Offices. The
primary contact for financial assistance under the Section 601 program
is the State FmHA Office. The BLM administers the public lands for
purposes of this memorandum through its State and District Offices. The
primary contact for availability of \"public land\" is the BLM State
Office.

2\. The FmHA State Office in any state having public lands will notify
the BLM State Office when (a) a preapplication or an application is
received, and it is likely that public lands could be involved, and (b)
when the State Investment Strategy for Energy Impacted Areas has been
approved by FmHA. A copy of said investment strategy will be provided to
the BLM State Office.

RD Instruction 2000-Z

Exhibit A

Page 3

3\. FmHA and BLM will establish a liaison at both the State and National
level and periodically coordinate their activities to: (a) exchange
detailed information concerning energy impact assistance; (b) define
areas of cooperation between the two agencies; (c) assure that their
programs are meeting the needs of energy impacted areas to the maximum
extent possible; (d) establish new methods to serve energy impacted
areas more expeditiously, (e) achieve maximum utilization of their
respective resources; (f) effect the exchange of addresses of
appropriate State and District Offices serving States with energy
impacted areas; and (g) identify areas likely to be impacted by federal
coal leasing.

4\. The BLM State Offices will provide FmHA State Offices and
Governors\' Offices with copies of their coal related land-use plans and
activity plans for consideration in the development of State Investment
Strategies for Energy Impacted Areas and will alert FmHA of applications
filed for major coal and uranium facilities.

5\. The FmHA State Offices will provide information on their grants for
growth management and housing planning and grants for site acquisition
and development for housing and public facilities and services to BLM
State Offices to be appropriately considered during energy mineral
management.

V. HOW ENERGY IMPACT ASSISTANCE IS MADE AVAILABLE

1\. How FmHA energy impact grants for acquisition and/or development of
land for housing and/or public facilities and services are made
available:

States, councils of local government, and local governments serving
energy impacted areas are eligible for grants after the area has been
designated as an energy impacted area by the Governor of the appropriate
State and that designation has been approved by the Secretary of Energy.
Growth management plans for energy impacted areas prepared by States,
multicounty planning districts, or localities must identify, among other
things, specific projects for housing and/or public facilities and
services which are needed as a result of energy development activities.
FmHA must approve these plans. The Governor will utilize these plans in
preparing the State Investment Strategy for Energy Impacted Areas. This
State Investment Strategy will contain a list of projects to be funded
under the Energy Impacted Area Development Assistance Program. Projects
will be funded by FmHA only if they are contained in an FmHA approved
plan and are on the Governor\'s State Investment Strategy.

2\. How public lands can be made available by BLM for purposes of the
Section 601 program:

a\. Tracts of public land may be sold to States and local governments at
fair market value under Sec. 203 of FLPMA. Sales may be

(1-28-81) PN 763

RD Instruction 2000-Z

Exhibit A

Page 4

made on a non-competitive basis since the public interest would best be
served by a direct sale. Such sales will be for the minimum acreage
needed for a specific project, and in conformance with BLM\'s land use
plans.

b\. Tracts of public lands may also be disposed of under the sale and/or
lease provisions of the Recreation and Public Purposes Act (Act of June
14, 1926, as amended; 44 Stat. 741; 68 Stat. 173; 43 U.S.C. 869), [for
recreation or public purposes]{.underline}. Such disposal will be in
conformance with BLM\'s land use plan.

c\. Transfers of interest in public lands may also be authorized under
the lease/permit provision of Sec. 302 of the FLPMA, if such action is
in conformance with BLM\'s land use plans.

d\. Acquisition of rights-of-way may also be authorized under Title V of
FLPMA.

3\. Under the authority set forth in Section 603 of the Rural
Development Act of 1972, FmHA State Offices will convene meetings among
appropriate Federal, State, and local agencies to coordinate and provide
assistance, where possible, to energy impacted areas. BLM State Offices
will actively participate in planning for and attending these meetings
in order to provide assistance, where possible, in these energy impacted
areas.

VI\. DESCRIPTION OF ENERGY IMPACT ASSISTANCE POLICIES

1\. The FmHA makes grants for growth management and housing planning and
for land acquisition and development of the land for housing and public
facilities and services in energy impacted areas. FmHA will use the
Section 603 authority to coordinate all appropriate Federal assistance
to help energy impacted areas in responding to the impact on rural
communities caused by energy development activities. FmHA has other
assistance for which such areas may qualify programs.

2\. The BLM will sell or otherwise make available public land needed in
energy impacted areas, wherever possible, to State or local governments
for use for housing and/or public facilities and services. Such disposal
will be in conformance with BLM\'s land use plans and criteria for
disposal which have been legally established.

VII\. ADMINISTRATIVE GUIDELINES

1\. The services of FmHA and BLM to applicants and others in the energy
impacted areas, as set forth herein, are by mutual agreement services
that each agency would provide in the normal course of business, and
there will be no reimbursement by either agency to the other for such
services.

RD Instruction 2000-Z

Exhibit A

Page 5

2\. The National Office of FmHA and the National Office of BLM will
cooperate in counseling their field offices and in resolving problems in
specific cases.

3\. This Memorandum of Understanding in no way alters or supersedes any
existing memorandums between the two agencies.

4\. This agreement may be amended at any time by written agreement of
both parties.

5\. This agreement can be cancelled after proper notice by either agency
head.

6\. A joint review of cooperation under this agreement will be made at
the National Office level annually.

7\. All BLM land planning, examination, and disposal activities will be
subject to available manpower and appropriation. All FmHA activities
under this memorandum will also be subject to available manpower and
appropriation.

8\. This agreement shall take effect upon the date of execution thereof.

/s/ Ed Hartey for /s/s

FRANK GREGG GORDON CAVANAUGH

Director Administrator

Bureau of Land Management Farmers Home Administration

1/13/81 1/8/81

Date: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## oOo

(1-28-81) PN 763