RD Instruction 1948-B

Title 7 - Agriculture

CHAPTER XVIII - RURAL DEVELOPMENT, DEPARTMENT OF AGRICULTURE

SUBCHAPTER H - PROGRAM REGULATIONS

PART 1948 - RURAL DEVELOPMENT

Subpart B - SECTION 601 - Energy Impacted Area Development Assistance

Program

## TABLE OF CONTENTS

[Sec]{.underline}. [Page]{.underline}

1948.51 General. 1

1948.52 Objectives. 1

1948.53 Definitions. 1

\(a\) Approved designated area. 1

\(b\) Available financial resources. 1

\(c\) Coal. 1

\(d\) Coal or uranium development activities. 1

\(e\) Condemnation by U.S. Department of Agriculture. 2

\(f\) Council of local governments. 2

\(g\) Eligible employment. 2

\(h\) Eligible employment facility. 2

\(i\) Energy impacted area. 2

\(j\) Fair market value. 2

\(k\) Grantee. 2

\(l\) Growth management planning. 2

\(m\) Housing planning. 3

\(n\) Industry reports. 3

\(o\) local government. 3

\(p\) Person. 3

\(q\) Public facilities. 3

\(r\) Public services. 3

\(s\) Site. 3

\(t\) Site acquisition. 3

\(u\) Site development. 3

\(v\) Site restoration. 4

\(w\) State. 4

\(x\) State Investment Strategy for Energy Impacted Areas. 4

\(y\) Substandard housing. 4

1948.54 Eligible applicants. 4

1948.55 Source of funds. 4

1948.56 Program purposes. 4

1948.57 Eligible activities. 5

1948.58 \[Reserved\] 6

(1-30-84) SPECIAL PN

RD Instruction 1948-B

Table of Contents (Cont.)

[Sec]{.underline}. [Page]{.underline}

1948.60 Delegation and redelegation of authority. 8

1948.61 State supplements and guides. 8

\(a\) State supplements. 8

\(b\) State guides. 8

1948.62 Environmental requirements. 8

1948.63 Historic preservation requirements. 9

1948.64 Equal opportunity requirements. 9

1948.65 Relocation Act requirements. 9

1948.66 \[Reserved\] 9

1948.67 Procedure for designation. 9

1948.68 Criteria for designation and submission of designation. 9

1948.69 \[Reserved\] 12

1948.70 Designation approval. 12

1948.71 \[Reserved\] 12

1948.72 Industry reports. 12

1948.73 \[Reserved\] 13

1948.74 - 1948.77 \[Reserved\] 13

1948.78 Growth management and housing planning projects. 13

1948.79 Application procedure for planning grants. 14

1948.80 Planning grant selection criteria. 17

1948.81 State Investment Strategy for Energy Impacted Areas. 17

1948.82 Plan and State Investment Strategy approval procedure. 18

1948.83 Performance of site development work. 21

1948.84 Application procedure for site development and 22

acquisition grants.

1948.85 \[Reserved\] 25

1948.86 Site development and acquisition grant selection criteria.25

\(a\) Required criteria. 25

\(b\) Competitive criteria. 26

1948.87 \[Reserved\] 27

1948.88 Direct land acquisition by Rural Development. 27

1948.89 Land condemnation by Rural Development. 29

1948.90 Land transfers. 29

1948.91 Inspections of development. 30

1948.92 Grant approval and fund obligation. 30

1948.93 Appeal procedure. 33

1948.94 Reporting requirements. 33

1948.95 Grant monitoring. 34

1948.96 Audit requirements. 34

1948.97 Grant closing and fund disbursement. 34

1948.98 Grant agreements. 34

1948.99 - 1948.100 \[Reserved\] 34

Exhibit A - Grant Agreement Growth Management and Housing Planning for

Approved Designated Energy Impact Area.

Exhibit B - Grant Agreement (Public Bodies) for Site Development and/or

Site Acquisition for Housing and/or Public Facilities and/or

Services.

RD Instruction 1948-B

PART 1948 - RURAL DEVELOPMENT

Subpart B - Section 601-Energy Impacted Area Development Assistance\
Program

§1948.51 [General]{.underline}.

This subpart sets forth policies and procedures for designation,
approval of designation, and making grants for assistance to areas
impacted by increased coal and uranium production, processing, or
transportation. The Rural Development will fully consider all A-95
clearinghouse review comments and recommendations in selecting
applications for funding. Any processing or servicing activity conducted
pursuant to this subpart involving authorized assistance to Rural
Development employees, members of their families, known close relatives,
or business or close personal associates, is subject to the provisions
of Subpart D of Part 1900 of this chapter. Applicants for this
assistance are required to identify any known relationship or
association with a Rural Development employee. (Revised 02-04-93,
SPECIAL PN.)

§1948.52 [Objectives]{.underline}.

The objective of the program is to help areas impacted by coal or
uranium development activities by providing assistance for the
development of growth management and housing plans and in developing and
acquiring sites for housing and public facilities and services.

§1948.53 [Definitions]{.underline}.

\(a\) [Approved designated area]{.underline}. 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.

\(b\) [Available financial resources]{.underline}. All existing
financial resources which could be used for impact assistance including
Federal, State, and local financial resources and financial resources
accruing to States and local governments as a result of coal or uranium
development activity and not already committed to other programs by law
or historical precedent.

\(c\) [Coal]{.underline}. Coal means anthracite and bituminous coal,
lignite, and any fuel derivative thereof.

\(d\) [Coal or uranium development activities]{.underline}. The
production, processing, or transportation of coal or uranium.

\(1\) Production includes the mining of coal or uranium and all mine
site operations connected with such mining operations and processing
activities. This includes construction activities on mine sites relating
to mining, production, and processing.

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

DISTRIBUTION: WSDC Loan and Grant Making

Rural Development

## 1

## (Revision 1)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.53 (d) (Con.)

\(2\) Processing includes all operations performed on coal or uranium
including construction of processing plants. However, processing does
not include conversion into electrical energy.

\(3\) Transportation which directly relates to the production and
processing of coal or uranium including transportation networks in the
county of origin of the coal or uranium and counties of processing of
coal and uranium. This includes transportation depots along
transportation networks that are used primarily for the transfer of coal
or uranium for domestic consumption. This also includes unit train
rolling stock construction and repair facilities.

\(e\) [Condemnation by U.S. Department of Agriculture
(USDA)]{.underline}. The use of Federal authority by the Secretary of
Agriculture to condemn real property.

\(f\) [Council of local governments]{.underline}. An area wide
development organization which includes one or more local governments
servicing at least a portion of an approved designated area. Such
organization must either have a policymaking body made up of a majority
of local elected officials.

\(g\) [Eligible employment]{.underline}. Full time work related to coal
or uranium development activities.

\(h\) [Eligible employment facility]{.underline}. A coal or uranium
mine, processing plant, or transportation depot.

\(i\) [Energy impacted areas]{.underline}. An area where coal and
uranium development activities have a significant impact on the
socio-economic structure of the area and which meet the criteria set out
at §1948.68 of this Subpart.

\(j\) [Fair market value]{.underline}. The price at which a property
will sell in the open market allowing a reasonable period of time for
typical, fully-informed buyers and sellers to react, assuming that the
purchaser and seller are both willing participants in the transaction.

\(k\) [Grantee]{.underline}. An entity with whom Rural Development has
entered into a grant agreement under this program.

\(l\) [Growth management planning]{.underline}. Planning for the orderly
development of an approved designated area. This planning includes, but
is not limited to: planning for provision of resources to support
housing, public facility needs, sewer and water needs; planning for the
provision of additional public services needed; overall plans for the
coordinated development of all approved designated areas within a State;
the development of State Investment Strategies for Energy Impacted
Areas; and coordination of development of approved designated areas at
the interstate level where impact is interstate in nature.

## 2

## (Revision 1) 

§1948.53 (Con.) RD Instruction 1948-B

\(m\) [Housing planning]{.underline}. Identification of present and
future housing needs within an approved designated area and providing
methods for developing needed housing. This planning includes, but is
not limited to the identification of: housing sites; housing site
development needs; data and resource needs; funding needs; acquisition
methods; and agencies of government responsible for delivery of housing
services.

\(n\) [Industry reports]{.underline}. Those reports concerning
production, expected production, and employment within an approved
designated area which are requested by the Governor and submitted by a
person to the Secretary of Energy.

\(o\) [Local government]{.underline}. Any county, parish, city, town,
township, village, or other general purpose political subdivision of a
State with the power to levy taxes and expend Federal, State, and local
funds and exercise governmental powers and which is located in, or has
authority over, the energy impact area. With the concurrence of the
Governor, the term may also include such school, water, sewer, highway,
or other public special purpose districts or authorities, or public or
private nonprofit corporations as may be appropriate to carry out the
purpose for which a grant is being made. These corporations or special
districts or authorities may apply (including applications previously
received) for grants from fiscal year 1981 and earlier fiscal year funds
only. (Revised 6-26-81, SPECIAL PN.)

\(p\) [Person]{.underline}. Any corporation, individual, partnership,
company, association, firm, institution, society, trust, joint venture,
or joint stock company, any State or any agency or instrumentality
thereof.

\(q\) [Public facilities]{.underline}. 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.

\(r\) [Public services]{.underline}. The provision to the public of
services such as: health care, fire and police protection, recreation,
etc.

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

\(t\) [Site acquisition]{.underline}. Obtaining legal title to a site
(or sites) or obtaining leaseholds or other interests in land, by an
instrumentality of a State or local government, or by Rural Development,
for housing, public facilities or services. (Revised 4-23-80, PN 723.)

\(u\) [Site development]{.underline}. Site restoration, necessary
off-site improvements and such on-site improvements as the construction
of sewerage collection and water distribution lines (does not include
individual taps) and construction of access roads; but does not include
the construction of houses or public facilities.

## 3

## (Revision 2)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.53 (Con.)

\(v\) [Site restoration]{.underline}. On-site improvements to the real
property (such as backfilling, compacting, grading and leveling)
necessary for the construction of houses and public facilities.

\(w\) [State]{.underline}. Any of the fifty States, Puerto Rico, and any
territory or possession of the United States.

\(x\) [State Investment Strategy for Energy Impacted Areas]{.underline}.
The investment strategy for the development of approved designated areas
within a State as proposed by the Governor and approved by Rural
Development.

\(y\) [Substandard housing]{.underline}. All housing units which do not
have complete plumbing fixtures, lack adequate heating systems, are not
structurally sound, or contain any other conditions that would cause a
safety, sanitary, or health hazard to the family or community.

§1948.54 [Eligible applicants]{.underline}.

Organizations eligible for grants include local governments, councils of
local government, and State governments that have the legal authority
necessary to undertake the proposed project. (Revised 6 26-81, SPECIAL
PN.)

§1948.55 [Source of funds]{.underline}.

\(a\) Grants will be awarded from appropriated funds specifically
allocated for this program.

\(b\) Grants made for growth management and housing planning may equal
but will not exceed 10 percent of the total amount of funds appropriated
for and allotted to this program.

§1948.56 [Program purposes]{.underline}.

\(a\) Rural Development will make grants for assistance to approved
designated areas in accordance with criteria contained in this Subpart
by providing assistance to fill gaps in growth management and housing
planning, and to provide supplementary support for acquisition and
development of sites for housing and public facilities and services by
States, local governments, and councils of local government.

\(b\) Efforts will be made to provide comprehensive assistance to
approved designated areas through the coordination power of the
Secretary of Agriculture by utilizing existing plans, State and local
programs, and other Federal programs to the maximum extent

## 4

## (Revision 2) 

RD Instruction 1948-B

§1945.56 (b) (Cont.)

possible. Particular attention will be given to the utilization of
existing Rural Development authorities under other Rural Development
programs in conjunction with this Subpart for providing assistance to
approved designated areas in accordance with the Governor\'s approved
State Investment Strategy for Energy Impacted Areas.

\(c\) Where existing plans are unsuitable or nonexistent, and other
assistance programs are inadequate or unavailable on a timely basis,
Rural Development will provide assistance under this Subpart to States,
councils of local governments, and local governments for the
modification, updating, and/or development of growth management and/or
housing plans to deal with problems resulting from coal or uranium
development within approved designated areas according to the criteria
contained in this Subpart.

\(d\) Where needed, Rural Development will provide assistance for the
development of sites and/or the acquisition of sites for housing and
public facilities and services within approved designated areas
according to the criteria contained in this Subpart. Such assistance for
site development and acquisition will be made in accordance with Rural
Development approved plans and State Investment Strategies for Energy
Impacted Areas in accordance with the criteria contained in the Subpart.

\(e\) At the request of the Governor of the appropriate State, Rural
Development will take action to acquire real property directly for sites
for housing and/or public facilities and services in accordance with
procedures set forth in this Subpart.

\(f\) At the request of the Governor of the appropriate State, where
neither the State nor local government has power to do so for this
purpose, Rural Development may take action through condemnation to
acquire real property for sites necessary for housing, public
facilities, or services.

§1948.57 [Eligible Activities]{.underline}.

Grant Funds may be used for:

\(a\) The preparation of growth management and/or housing plans (or
aspects thereof) for which financial resources are not available for
approved designated areas as set forth in the grant agreement, including
but limited to:

\(1\) One hundred percent of the total cost of developing growth
management and/or housing plans.

## 5

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.57 (a) (Cont.)

\(2\) One hundred percent of the cost of developing aspects of growth
management plans and/or housing plans including but not limited to:

\(i\) sewer plans;

\(ii\) water plans;

\(iii\) recreation plans;

\(iv\) transportation plan;

\(v\) education plans; and

\(vi\) subdivision plans.

\(3\) Payment of salaries of professional, technical, and clerical staff
to carry out growth management and housing planning and evaluation;

\(4\) Payment of necessary reasonable office expenses such as office
rental, office utilities, and office equipment rental;

\(5\) Purchase of office supplies;

\(6\) Payment of necessary reasonable administrative costs, such as
workmen\'s compensation, liability insurance, and employer\'s share of
social security and travel; and

\(7\) Payment of costs to undertake tests, make appraisals, and arrange
for engineering/architectural services necessary for the planning
activity.

\(b\) Up to 75 percent of the actual cost of developing or acquiring
sites for housing, public facilities, or services for which financial
resources are otherwise not available as set forth in the grant
agreement, including but not limited to:

\(1\) Necessary grading and leveling;

\(2\) Sewer and water connections;

\(3\) Necessary water and sewer lines to housing and public facilities
sites;

\(4\) Access roads to housing and public facilities sites;

\(5\) Restoring previously mined sites;

\(6\) Necessary engineering reports in connection with site development;

\(7\) Payment of costs to undertake tests, make appraisals, and
engineering/architectural services necessary for the site development
and/or site acquisition;

\(8\) Necessary legal fees involved in the transfer of the real
property.

§1948.58 \[Reserved\]

## 6 

RD Instruction 1948-B

§1948.59 [Ineligible activities]{.underline}.

\(a\) Growth management and hou[sing planning grant funds may not be
used for:]{.underline}

\(1\) Acquisition, construction, repair, or rehabilitation of existing
housing and public facilities;

\(2\) Replacement of, or substitution for, any financial support
previously provided or assured from any other source which would result
in a reduction of current efforts on the part of the applicant;

\(3\) Duplication of current services;

\(4\) Routine administrative activities not allowed under Federal
Management Circular FMC 74-4, \"Cost Principles Applicable to Grants and
Contracts with State and Local Governments;\"

\(5\) Planning for areas other than approved designated areas;

\(6\) Planning other than growth management and housing planning; or

\(7\) Political activities.

\(b\) Grant funds for site development may not be used for:

\(1\) Construction, repair, or rehabilitation of housing and public
facilities;

\(2\) Replacement of, or substitution for, any financial support
previously provided or assured from any other source which would result
in a reduction of effort on the part of the applicant;

\(3\) Administrative expenses not allowed under FMC 74-4;

\(4\) Purposes for which funding exists under other State or Federal
Programs that may reasonably be obtained on a timely basis by the
applicants;

\(5\) Duplication of current services; or

\(6\) Political activities.

## 7

## (Revision 1)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.60 [Delegation and redelegation of authority]{.underline}.

The Rural Development State Director is responsible for implementing the
authorities contained in this Subpart and may issue State supplements
redelegating these authorities to appropriate Rural Development
employees.

§1948.61 [State supplements and guides]{.underline}.

Rural Development State Directors will obtain National Office clearance
for all State supplements and guides in accordance with paragraph VIII
of RD Instruction 2006-B, (available in any Rural Development office).
(Revised 3-23-83, PN 874.)

\(a\) [State supplements]{.underline}. State Directors, may supplement
this Subpart as appropriate to meet State and local laws and regulations
and to provide for orderly application processing and efficient service
to applicants. State supplements shall not contain any requirements
pertaining to designations, designation approval, or plan approvals more
restrictive than those in this Subpart.

\(b\) [State guides]{.underline}. State Directors may develop guides for
use by applicants if the guides to this Subpart are not adequate. State
Directors may prepare guides for: items needed for the application;
items necessary for the docket; and items required prior to grant
closing or construction starts.

§1948.62 [Environmental requirements]{.underline}.

\(a\) The policies and regulations contained in Subpart G of Part 1940
of this Chapter apply to grants made and other actions under this
program. (Revised 1-30-84, SPECIAL PN.)

\(b\) Subsequent to an energy impact area designation by the Governor
and establishment of priorities, the Rural Development State Director,
in consultation with the Governor, shall define the geographic
boundaries or otherwise delineate the areas which will be studied for
environmental impacts.

\(c\) Boundaries shall define the area within which the environmental
impacts of the proposed action can be reasonably studied. Proper
delineation of impact areas will avoid duplication of effort by using
one assessment or impact statement to study a broad area rather than
numerous overlapping documents prepared for smaller projects.

## 8

## (Revision 1) 

RD Instruction 1948-B

§1948.63 [Historic preservation requirements]{.underline}.

The policies and regulations contained in Part 1901, Subpart F, of this
Chapter applies to this program.

§1948.64 [Equal opportunity requirements]{.underline}.

The policies and regulations contained in Part 1901, Subpart E, of this
Chapter applies to grants made under this program.

§1948.65 [Relocation Act requirements]{.underline}.

The policies and regulations contained in Title 7, Subtitle A, Part 21
of the Code of Federal Regulations (Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970) will apply to site
development and acquisition grants and other actions under this program.

§1948.66 \[Reserved\]

§1948.67 [Procedure for designation]{.underline}.

\(a\) Local governments may request the Governor of the State in which
they are located to designate an area served by them as an energy
impacted area.

\(b\) The Governor will define the geographic area of a designated area
consistent with the nature of the impact and the socio-economic
integration of the area.

\(c\) The Governor may designate an area as an energy impacted area
based on the criteria contained in this Subpart.

§1948.68 [Criteria for designation]{.underline}.

\(a\) An area designated by the Governor must have the following
characteristics:

\(1\) During the most recent calendar year, the eligible employment in
coal or uranium development activities within the area has increased by
eight percent or more from the preceding year, or such

## 9

## (Revision 1)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.68 (a) (1) (Cont.)

employment (as projected by generally acceptable estimates) will
increase by eight percent (of the eligible employment in the year of the
designation) or more per year during each of the next three calendar
years.

\(2\) Because of increased employment in coal or uranium development
activities, a shortage of housing, inadequate public facilities, or
services exists or will exist in the area. Such shortages or
inadequacies may be demonstrated by: housing shortage statistics; higher
occupancy rates of substandard houses than has historically occurred
within the area; an increase (for which data or projected data is
available) in eligible employment from the year of the designation of at
least 100 workers and one-half of one percent of the designated area\'s
population; or data showing that available public facilities and
services in the area are below generally accepted standards due to the
increased demand resulting from coal and uranium development activities.
(Revised 6-26-81, SPECIAL PN.)

\(3\) Available State and local financial resources are inadequate to
meet the public need for housing or public facilities and services at
present or in the next three years. In making this determination the
Governor should consider the following:

\(i\) State revenue increases resulting from coal and uranium
development activity based on existing tax laws;

\(ii\) Federal funds transferred to the State for impact assistance;

\(iii\) Local revenue increases resulting from coal or uranium
development activities based on existing tax laws;

\(iv\) Other federal financial assistance to which the area may have
access;

\(v\) All other available State and local sources of funding;

\(vi\) The time during which the resources will be available;

\(vii\) Existing laws committing increases in State and local revenues
and Federal transfers to purposes other than impact assistance; and

\(viii\) The estimated cost of development based on the best available
informed judgment.

## 10

## (Revision 1) 

§1948.68 (Cont.) RD Instruction 1948-B

\(b\) Designations submitted to the Secretary of Energy for approval
must have the following attached:

\(1\) A list of all counties and parts of counties covered by the
designation;

\(2\) If the area is smaller than a county, a map showing the boundary
of the area and the approximate location of all eligible employment
facilities in the area and nearby;

\(3\) A written justification for the inclusion of an area if the area
is smaller than a county.

\(4\) The level of eligible employment within the designated area for
each of the two most recent calendar years. This data should be obtained
from a single source for the entire State, if possible; special surveys
may be used when the Governor determines that these more accurately
reflect employment conditions within the designated area, or in cases
where data from other sources for the most recent calendar year is
unavailable at the time of designation. Reference should be made to the
data sources used if it is a Federal source; if a non-Federal sources is
used, a copy of the source and a brief description of the procedures
used for justification should be included. If projections of eligible
employment are to be considered, projections of such employment for the
next three years must be attached; identification of data sources and
methodology used in developing those projections and a copy of any
survey data used should be included.

\(c\) In areas where the impacted area covers counties or parts of
counties located in more than one State, the Governors of the affected
States may jointly designate such area and submit the designation to the
Secretary of Energy for approval.

\(d\) After examining these factors and determining that the area meets
the criteria of (a) above, the Governor may so certify in a letter
bearing his or her signature and submit the letter of certification with
all data and estimates upon which the designation is based to the
Secretary of Energy for approval.

\(e\) Each designation submitted should have the name and phone number
of a contact person in the Governor\'s designating office.

\(f\) An original and one copy of the designation should be submitted to
Secretary of Energy, Department of Energy, Mail Stop 8G-031, Forrestal
Building, Washington, D. C. 20585.

## 11

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.68 (Cont.)

\(g\) Two copies of all designations submitted for approval shall be
submitted to the appropriate Rural Development State Director. The Rural
Development State Director shall forward on copy to the Office of Area
Development Assistance in the Rural Development National Office.

\(h\) The Governor should designate all areas expected to be considered
in FY 1979 allocations of funds before July 1, 1979.

§1948.69 \[Reserved\]

§1948.70 [Designation approval]{.underline}.

Upon receipt of a request for approval of a designation made under this
section, the Secretary of Energy shall:

\(a\) Determine to the best of his ability the consistency of the
supporting data submitted along with the designation by the Governor;

\(b\) Confer with Rural Development on approval;

\(c\) Notify the Governor and the Administrator of Rural Development of
action taken on each designation within 30 calendar days of the receipt
of a request for approval;

\(d\) Consult with the Governor before the disapproval of any
designation; and

\(e\) Publish a description in the Federal Register of all designated
areas approved within 30 days of their approval.

§1948.71 \[Reserved\]

§1948.72 [Industry reports]{.underline}.

Any person regularly engaged in any coal or uranium development activity
within an area designated and approved in accordance with this Subpart,
shall prepare and transmit a report to the Secretary of Energy,
Department of Energy, Mail Stop 8G-031, Forrestal Building, Washington,
D. C. 20585 within 90 days after a written request to such person by the
Governor of the State in which such area is located.

## 12 

§1948.72 (Cont.) RD Instruction 1948-B

\(a\) The report shall contain:

\(1\) Projected levels of employment in coal or uranium development
activities within the approved designated area for the next three
calendar years;

\(2\) The projected number of new jobs to be created in coal or uranium
development activities by the person within the approved designated area
in each of the following three calendar years;

\(3\) Current or planned actions of the person in relation to the
provision of housing or public facilities for such person\'s employees
in the next three calendar years;

\(4\) Contracts in force whereby the person intends to provide funds to
State government, local governments, and public or private nonprofit
organizations for the provision of housing or public facilities for such
person\'s employees; and

\(5\) The projected quantity of coal or uranium to be produced,
processed, or transported by the person in each of the next three years.

\(b\) The Governor requesting the report will notify the Secretary of
Energy of persons from whom reports have been requested.

\(c\) The Secretary of Energy shall provide a copy of these reports to
the Secretary of Agriculture, the appropriate Governor, and the
appropriate county or local officials, and make it available for public
inspection and copying in the public reading room of the Department of
Energy, Room GA152, Forrestal Building, Washington, DC. 20585.

§§1948.73 - 1948.77 \[Reserved\]

§1948.78 [Growth management and housing planning projects]{.underline}.

\(a\) Existing plans for growth management and housing may be used to
meet the planning requirements of this Subpart.

\(b\) A reasonable effort should be made to modify existing plans for
use in meeting the planning requirements of this section.

\(c\) The Governor shall be responsible for the coordination of planning
within a State.

## 13

## (Revision 2)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.78 (Cont.)

\(d\) The planning process developed with assistance under this section
should begin at the local level and flow upward to the State.

\(e\) Planning processes developed with assistance under this section
should have the maximum possible citizen involvement in the development
of plans.

\(f\) Governors should give full consideration to local and substate
priorities in the development of the State Investment Strategy for
Energy Impacted Areas. (Revised 12-23-83, SPECIAL PN.)

\(g\) Plans developed with assistance under this section should be fully
coordinated with other Federal, State, substate, and local planning
activities affected by the project.

\(h\) Planning conducted by the State include effective management
activities for coordinated development of approved designated areas
through the plan implementation stage. (Renumbered 12-23-83, SPECIAL
PN.)

§1948.79 [Application procedure for planning grants]{.underline}.

\(a\) Applicants may submit a preapplication for a planning grant upon
designation of the area as an energy impacted area by the Governor.
Rural Development will not take final action on the preapplication until
the designation has been approved by the Secretary of Energy.

\(b\) Intergovernmental consultation should be carried out in accordance
with 7 CFR, Part 3015, Subpart V, \"Intergovernmental Review of
Department of Agriculture Programs and Activities. Sec RD Instruction
1940-J, available in any Rural Development Office. (Revised 12-23-83,
SPECIAL PN.)

\(c\) Applicants shall file an original and one copy of SF 424.1 ,
\"Application for Federal Assistance (For Non-construction),\" with the
appropriate Rural Development office. A copy should also be filed with
the Governor\'s office of the appropriate State. This form is available
in all Rural Development offices. Local governments and councils of
local governments shall submit preapplications to the appropriate Rural
Development District Office. State governments shall apply to the
appropriate Rural Development State Office. The Rural Development
District Office will forward the preapplication with written comments
within 10 working days to the appropriate State Office. (Revised
4-11-90, SPECIAL PN)

## 14

## (Revision 2) 

§1948.79 (d) (Cont.) RD Instruction 1948-B

\(d\) All preapplications shall be accompanied by:

\(1\) Evidence of applicant\'s legal existence;

\(2\) Evidence of applicant\'s authority to prepare growth management
and/or housing plans;

\(3\) A statement declaring that the planning neither duplicates nor
conflicts with current activities;

\(4\) An original and one copy of Forms RD 400-1, \"Equal Opportunity
Agreement,\" and Form RD 400-4, \"Assurance Agreement,\" and (Revised
4-11-90, SPECIAL PN.)

\(5\) A statement regarding other financial resources available to the
area for this planning. (Renumbered 1-30-84, SPECIAL PN.)

\(e\) District and State Rural Development Offices receiving
preapplications will:

\(1\) Determine if the area to be covered by the project is an
\"approved designated area\" as defined in this Subpart;

\(2\) Comply with the environmental requirements set forth in this
Subpart; and

\(3\) Prepare a Historic Preservation Assessment in accordance with Part
1901, Subpart F, of this Chapter.

\(f\) District Rural Development Offices receiving preapplications will
also provide written comments reflecting planning grant selection
criteria listed in this Subpart.

\(g\) The Rural Development District Office will forward the original of
the preapplication and accompanying documents including those described
in paragraphs (e)(1) through (e)(3) and (f) of this section to the
appropriate Rural Development State Director within 10 working days of
receipt of the preapplication.

\(h\) Upon receipt of a preapplication, the Rural Development State
Office will:

\(1\) Review and evaluate the preapplication and accompanying documents;

## 15

## (Revision 3)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.79 (h) (Cont.)

\(2\) Consult with the Governor of the appropriate State concerning the
Governor\'s priorities and recommended funding level for the project;
and

\(3\) Respond to the applicant within 30 days of the date of receipt of
the preapplication using Form AD-622, \"Notice of Preapplication Review
Action,\" indicating the action taken on the preapplication.

\(i\) Upon notification that the applicant is eligible to compete with
other applicants for funding, a SF 424.1 may be submitted to the Rural
Development State Office by all applicants. (Revised 4-11-90, SPECIAL
PN)

\(j\) The Rural Development State Office will send evidence of the
applicant\'s legal existence and authority to the USDA Regional Office
of General Counsel (OGC) and request that a legal determination be made
of the applicant\'s legal existence and authority to prepare growth
management and/or housing plans in those cases where an application (SF
424.1) is requested. (Revised 4-11-90, SPECIAL PN)

\(k\) Upon receipt of an application on SF 424.1 by the Rural
Development State Office, a docket will be prepared which will include
the following:(Revised 4-11-90, SPECIAL PN)

\(1\) Form SF 424.1; (Revised 4-11-90, SPECIAL PN)

\(2\) Form AD-622;

\(3\) Any comments received in accordance with 7 CFR, Part 3015 Subpart
V, \"Intergovernmental Review of Department of Agriculture Programs and
Activities.\" See RD Instruction 1940-J, available in any Rural
Development Office. (Revised 12-23-83, SPECIAL PN.)

\(4\) Form SF 424.1; (Revised 4-11-90, SPECIAL PN)

\(5\) Evidence of the applicant\'s legal existence and authority to
prepare growth management and/or housing plans;

\(6\) OGC legal determinations;

\(7\) Grant agreement and scope of work;

\(8\) Form RD 1940-1, \"Request for Obligation of Funds;\"

\(9\) Form RD 400-1;

\(10\) Form RD 400-4;

## 16

## (Revision 3) 

§1948.79 (k) (Cont.) RD Instruction 1948-B

\(11\) Historic Preservation Assessment;

\(12\) District, where appropriate, and State Rural Development written
comments, assessments, and analysis of the proposed projects in
accordance with the grant selection criteria; and

\(13\) All certificates and statements accompanying the preapplication
and/or application.

§1948.80 [Planning grant selection criteria]{.underline}.

The following criteria will be used in the selection of planning grant
recipients:

\(a\) Planning assistance which could be used for the purpose of the
proposed planning process is not available from other sources on a
timely basis (Mandatory);

\(b\) The increase in the number of new employees and the percentage of
increase in employment in coal and/or uranium development activities in
the year of designation within the approved designated area (years
projected will be averaged and treated equally);

\(c\) The need for planning in relation to the financial resources
available for such planning.

\(d\) The planning priorities and recommended funding level of the
Governor(s) of the appropriate State(s);

\(e\) The appropriateness of the proposed planning activity for meeting
the planning needs of the area, including but not limited to the
building of planning capacity and the local priority for the project;

\(f\) The inadequacy of existing plans for mitigating the effects of
coal and/or uranium development activities; and

\(g\) The nature of comments and recommendation received in accordance
with 7 CFR Part 3015 Subpart V, \"Intergovernmental Review of Department
of Agriculture Programs and Activities.\" (See RD Instruction 1940-J,
available in any Rural Development Office.) (Revised 12-23-83, SPECIAL
PN.)

§1948.81 [State Investment Strategy for Energy Impacted
Areas]{.underline}.

\(a\) The State Investment Strategy for Energy Impacted Areas should be
a dynamic document updated as each plan or group of plans is submitted
to Rural Development for approval.

## 17

## (Revision 1)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.81 (Cont.)

\(b\) The Governor shall consult with the Rural Development State
Director when developing or updating a State Investment Strategy for
Energy Impacted Areas.

\(c\) The State Investment Strategy for Energy Impacted Areas will
include but is not limited to:

\(1\) A list of projects in order of priority;

\(2\) The Governor\'s recommended level of and method of funding for
each project through completion of the project identified in the plans
submitted and incorporated into the State Investment Strategy for Energy
Impacted Areas;

\(3\) Methods of coordinating assistance with other State and Federal
development programs;

\(4\) The differential between available financial resources and the
cost of needed site development and acquisition for housing and public
facilities and services within the area covered by the State Investment
Strategy for Energy Impacted Areas.

\(5\) References to plan and page number of plan on which each priority
project is described.

\(d\) The State Investment Strategy for Energy Impacted Areas having
projects expected to be funded in FY 1979 should be submitted to the
Rural Development State Director of the appropriate State before July
15, 1979. A copy should also be forwarded to the Administrator, Rural
Development.

§1948.82 [Plan and State Investment Strategy approval
procedure]{.underline}.

\(a\) Any plan submitted for Rural Development approval, whether it is a
plan developed with assistance under this section, an existing plan, or
a modified plan, should contain:

\(1\) The present level of coal or uranium production, processing, or
transportation within the approved designated area covered by the Plan;

## 18

## (Revision 1) 

§1948.82 (a) (Cont.) RD Instruction 1948-B

\(2\) The anticipated level of coal or uranium production, processing,
or transportation in each of the next three calendar years within the
area covered by the plan;

\(3\) A brief description of the socio-economic impacts that have
occurred during the two most recent calendar years in the approved
designated area covered by the plan;

\(4\) A brief description of the socio-economic impacts that are
expected to occur in the approved designated area covered by the plan
within each of the next three calendar years;

\(5\) The anticipated number of new employees expected to be hired in
coal or uranium development activities in each of the next three years
within the approved designated area covered by the plan;

\(6\) Available financial resources and federal programs that may be
applied to meeting the needs of the approved designated area including
but not limited to the following:

\(i\) The expected amount of State assistance and State expenditures in
the approved designated area covered by the plan which will be used for
impact assistance in the next three years;

\(ii\) The amount of tax revenues expected to accrue to local
governments serving the approved designated area covered by the plan in
each of the next three years due to increased economic activities which
have occurred since the year prior to designation or are expected to
occur as a result of coal and uranium development activity;

\(iii\) Sources and amount of assistance State and local governments are
now receiving or are expected to receive from persons for the provision
of housing and public facility and services; and

\(iv\) Existing budget surplus at the State and local level.

\(7\) The specific needs of the area covered by the plan as to the
number of housing units now needed and the number that are expected to
be needed in each of the next three years, and/or the number and type of
public facilities and services now needed or expected to be needed in
the next three years;

## 19

## 

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.82 (a) (Cont.)

\(8\) The type and quantity of real property now needed or expected to
be needed in the next three years for the construction of public
facilities and/or housing and/or in the provisions of public services;

\(9\) Proposed method of acquisition for each site to be acquired by the
State or local governments; and

\(10\) An estimate of assistance that will be necessary under this
section and/or other Rural Development or Federal programs for the
development of the site.

\(b\) All plans meeting the criteria in paragraph (a) of this section
should be forwarded to the Governor of the appropriate State or States
for possible incorporation into the State Investment Strategy for Energy
Impacted Areas.

\(c\) Appropriate growth management and/or housing plans received by the
Governor under this section may be submitted to the appropriate Rural
Development State Office by the Governor.

\(d\) The Governor shall submit a copy of the State Investment Strategy
for Energy Impacted Areas along with all plans the Governor is
submitting to Rural Development for approval.

\(e\) During fiscal year 1979 the Governor may submit existing plans to
Rural Development for qualified approval in which some sections under
paragraph (a) above are incomplete, provided that planning is presently
being done to fill these gaps, or application for a planning grant has
been submitted or is to be submitted to cover the cost of the needed
planning. These plans must be resubmitted for final approval on or
before December 31, 1980. No requested grant will be approved for land
acquisition or site development unless the request is cited in the Rural
Development-approved comprehensive growth management plan for the
designated area in which the project is located.

\(f\) The Rural Development State Director shall review all plans and
the State Investment Strategy for Energy Impacted Areas and provide
comments on the following:

\(1\) Appropriateness of Rural Development assistance under this section
as called for in the plans;

\(2\) Appropriateness of Rural Development assistance under other
programs as called for in the plans;

## 20 

RD Instruction 1948-B

§ 1948.82(f) (Cont.)

\(3\) Appropriateness of the State Investment Strategy for Energy
Impacted Areas;

\(4\) Other Federal programs which could be used instead of, or in
addition to, assistance under this section; and

\(5\) Recommended action.

\(g\) The Rural Development State Director shall submit all plans
received from the Governor, the State Investment Strategy for Energy
Impacted Areas, and any comments to the Rural Development National
Office for approval within 10 days of the submission of plans and the
State Investment Strategy for Energy Impacted Areas to the State
Director.

\(h\) The Rural Development National Office shall review all plans and
State Investment Strategies for Energy Impacted Areas received and
approve or return them for modification within 30 days of their receipt
in the Rural Development National Office.

\(i\) The Rural Development National Office shall notify the appropriate
State Director of all plans that have been approved by the
Administrator.

\(j\) Upon approval of the plans and State Investment Strategy for
Energy Impacted Areas by the Administrator, Rural Development, the Rural
Development State Director may exercise the authority of the Secretary
of Agriculture under Section 603 of the Rural Development Act of 1972 to
convene a meeting of the appropriate representatives of all Federal and
State agencies which are requested to supply development funds by the
State Investment Strategy for Energy Impacted Areas for the purpose of
obtaining tentative funding commitments consistent with their
authorities.

\(k\) The Rural Development State Office shall notify the Governor and
the appropriate District Directors of all plans approved by the
Administrator, Rural Development.

\(l\) Modifications to approved plans shall be approved by the
Administrator of Rural Development following the above procedure.

\(m\) The Governor\'s modification to the State Investment Strategy for
Energy Impacted Areas may be approved by the Rural Development State
Director provided the modification is consistent with Rural Development
approved plans.

§ 1948.83 [Performance of site development work]{.underline}.

Site development work will be done in accordance with §1942.18 of RD
Instruction 1942-A.

## 21

## (Revision 3)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§ 1948.84 [Application procedure for site development and acquisition
grants]{.underline}.

\(a\) For those projects for which Federal funding is sought in excess
of \$100,000 the applicant shall file SF 424.2, \"Applicant for Federal
Assistance (For Construction),\" with the appropriate Rural Development
office. For those projects for which Federal funding is sought for less
than \$100,000, the applicant shall file SF 424.2 with the appropriate
Rural Development office. A copy should also be filed with the
Governor\'s office of the appropriate State. (Revised 4-11-90,\
SPECIAL PN.)

\(b\) The Rural Development office receiving a SF 424.2 shall reply to
the applicant within 45 calendar days regarding the applicant\'s
eligibility to compete for funding under this program using Form AD-622.
(Rural Development District Offices will send each preapplication to the
Rural Development State Offices for review before replying to the
applicant. Rural Development District offices will send a copy of Form
AD-622 to the Rural Development State Office at the time the AD-622 is
sent to the applicant.) (Revised 4-11-90, SPECIAL PN.)

\(c\) Intergovernmental consultation should be carried out in accordance
with 7 CFR Part 3015 Subpart V, \"Intergovernmental Review of Department
of Agriculture Programs and Activities.\" See RD Instruction 1940-J,
available in any Rural Development Office. (Revised 12-23-83,\
SPECIAL PN.)

\(d\) Applicants shall file an original and one copy of SF 424.2 with
the appropriate Rural Development office. Local governments and councils
of local government shall submit applications to the Rural Development
District Office and State governments to the Rural Development State
Office. Applications shall include: (Revised 4-11-90, SPECIAL PN.)

\(1\) Evidence of applicant\'s legal existence and authority to
undertake the proposed project;

\(2\) Evidence of ownership of or lease on a site to be developed or
\"Options to Purchase Real Property,\" Form RD 440-34, (Lease on a site
for a public facility will be in accordance with Rural Development
1942-A and lease on a site for housing will be in accordance with 7 CFR
part 3550; (Revised 01-23-03, SPECIAL PN.)

\(3\) Description of project and relationship to approved growth
management and housing plan. Applicant must cite pages and section of
the approved plan;

\(4\) A plat of the area including elevations;

## 22

## (Revision 3) 

§1948.84 (d) (Cont.) RD Instruction 1948-B

\(5\) Preliminary plans and specifications on proposed development which
will contain an estimate of the projected cost of site development
prepared by independent qualified appraisers or architects/engineers;

\(6\) The amount of Federal grant needed;

\(7\) The amount and source of applicant\'s financial contribution to
the project;

\(8\) An original and one copy of Form RD 1940-20;

\(9\) An original and one copy of Forms RD 400-1 and Form RD 400-4;

\(10\) Evidence that the land is stable if the land has been previously
mined (include relevant data on soil and analysis);

\(11\) Assurance that the requirements set forth in Title 7, Subtitle A,
Part 21 of the Code of Federal Regulations (Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970) have been
met; and (Renumbered 1-30-84, SPECIAL PN.)

\(12\) Specific concurrence of the Governor if the proposed applicant is
neither a council of local governments nor a general purpose political
subdivision of a State. (Renumbered 1-30-84, SPECIAL PN.)

\(e\) District and State Rural Development Offices receiving
applications shall:

\(1\) Determine if the project is in accordance with a Rural Development
approved growth management and/or housing plan covering the approved
designated area;

\(2\) Comply with environmental requirements set forth in Part 1940,
Subpart G of this chapter; (Revised 1-30-84, SPECIAL PN.)

\(3\) Prepare a Historic Preservation Assessment in accordance with Part
1901, Subpart F, of this Chapter;

\(4\) Determine site stability if the land has been previously mined;
and

## 23

## (Revision 4)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.84 (Cont.)

\(f\) District Rural Development Offices receiving applications shall
also provide written comments reflecting site development and
acquisition grant selection criteria (§1948.86) listed in this Subpart.

\(g\) The Rural Development District Office shall forward the original
of the application and accompanying documents including those required
in paragraph (e) of this section to the Rural Development State Director
within 10 working days of receipt of the application.

\(h\) Upon receipt of an application, the Rural Development State Office
shall:

\(1\) Review and evaluate the application and accompanying documents;

\(2\) Determine that the project is a part of and consistent with the
State Investment Strategy for Energy Impacted Areas;

\(3\) Send a copy of the applicant\'s evidence of legal existence and
authority to the USDA Regional OGC for review;

\(4\) If applicant is local government(s), consult with the Governor on
funding recommendation of the project; and

\(5\) Respond to the applicant within 30 days of the date of receipt of
the application.

\(i\) Upon receipt of an application by the Rural Development State
Office, a docket shall be prepared which shall include the following:

\(1\) Application SF 424.2 and enclosures; (Revised 4-11-90,\
SPECIAL PN)

\(2\) Any comments received in accordance with 7 CFR, Part 3015 Subpart
V, \"Intergovernmental Review of Department of Agriculture Programs and
Activities.\" See RD Instruction 1940-J, available in any Rural
Development Office. (Revised 12-23-83, SPECIAL PN.)

\(3\) Evidence of ownership or lease of site to be developed;

\(4\) Evidence of applicant\'s legal existence and authority;

\(5\) OGC legal determination;

## 24

## (Revision 4) 

§1948.84 (i) (Con.) RD Instruction 1948-B

\(6\) Preliminary plans and specifications concerning the proposed
development;

\(7\) Grant agreement and scope of work;

\(8\) An estimate of projected cost of site development prepared by
independent qualified appraisers or engineers/architects;

\(9\) A topographical map of the area;

\(10\) Form RD 1940-1;

\(11\) Form RD 400-1;

\(12\) Form RD 400-4;

\(13\) Form RD 1940-20, if required by Subpart G of Part 1940 of this
chapter; (Revised 1-30-84, SPECIAL PN.)

\(14\) A copy of the appropriate Rural Development environmental review
required by Subpart G of Part 1940 of this chapter; (Revised 1-30-84,
SPECIAL PN.)

\(15\) Historic Preservation Assessment;

\(16\) A copy of the State Investment for Energy Areas; and

\(17\) District, where appropriate, and State Rural Development written
comments, assessments and analysis of the proposed project in accordance
with the grant selection criteria.

§1948.85 \[Reserved\]

§1948.86 [Site development and acquisition grant selection
criteria]{.underline}.

The following criteria will be considered in the selection of site
development and/or acquisition grant recipients:

\(a\) [Required criteria]{.underline}. Each project must meet the
following criteria:

\(1\) The area is covered by a Rural Development approved plan;

\(2\) The Rural Development approved plan specifically calls for the
site development and/or acquisition;

## 25

## (Revision 1)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.86 (a) (Cont.)

\(3\) Other Federal funds that the community could receive for the
project are inadequate or not available, and no State or local funds for
site development are available to permit development on a timely basis;

\(4\) The site is to be developed and/or acquired and is to be used for
housing, public facilities, or services;

\(5\) The applicant has title to the site, lease on site, or an option
on the site and funds to purchase the site, or is applying for site
acquisition funds;

\(6\) The site will comply with Executive Orders 11988, \"Flood Plain
Management\" and 11990, \"Protection of Wetlands.\"

\(7\) An appraisal of the fair market value of the site must have been
completed;

\(8\) Priority has been given in the selection of site to unoccupied or
previously mined land;

\(9\) Class I or Class II farm land was included in the site only if
other suitable land was not available;

\(10\) The land is stable if previously mined; and

\(11\) Assurance that the requirements set forth in Title 7, Subtitle A,
Part 21 of the Code of Federal Regulations (Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970) have been
met.

\(b\) [Competitive criteria]{.underline}. The following criteria will be
considered in the selection of grantees:

\(1\) Priority assigned and recommended funding level by the Governor in
the State Investment Strategy for Energy Impacted Areas;

\(2\) The increase in the number of new employees and the percentage of
increase in employment in coal and/or uranium development activities in
the year of designation within the approved designated area (years
projected will be averaged and treated equally);

## 26

## (Revision 1) 

§1948.86 (b) (Cont.) RD Instruction 1948-B

\(3\) The severity of need for housing, public facilities, services that
has resulted from coal or uranium development activities in relation to
available financial resources within the approved designated area
covered by the plan calling for the project;

\(4\) Local priority for the project;

\(5\) The amount of effort by State and local government to meet the
needs of the area covered by the application as called for in the State
Investment Strategy for Energy Impacted Areas in relation to available
financial resources;

\(6\) An assessment of the environmental impacts of the project; and

\(7\) The nature of comments and recommendations of A-95
clearinghouse(s).

§1948.87 \[Reserved\]

§1948.88 [Direct land acquisition by Rural Development]{.underline}.

\(a\) Rural Development may take action to acquire real property
directly upon the written request of the Governor of the State in which
the real property is located. Rural Development will not acquire real
property directly under this section without such a request.

\(b\) All requests for direct land acquisition should be submitted to
the Rural Development State Director. The following conditions must be
met prior to the submission of a request for direct acquisition by Rural
Development:

\(1\) The State or local government serving the area must lack power to
condemn land of this type for this purpose and must supply an opinion by
the State Attorney General that this authority is lacking;

\(2\) The real property is to be used as a site for needed housing,
public facilities, or services;

\(3\) The site acquisition is called for in a Rural Development approved
plan;

\(4\) The site is specifically identified by a Rural Development
approved plan;

## 27

## 

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.88 (b) (Cont.)

\(5\) State and local governments have been unable to obtain the real
property for a price which does not substantially exceed its fair market
value; and suitable alternate sites are not available;

\(6\) The land is not Indian Trust land;

\(7\) The land is not U.S. Forest Service land; and

\(8\) There is legal authority to undertake the proposed project.

\(c\) Rural Development may acquire Federal real property not prohibited
in paragraphs (b)(6) and (7) of this section for purposes contained in
this Subpart. Farmland (Class I and II) will not be considered unless
there is no other suitable land available.

\(d\) If the State Director determines that no other suitable real
property exists that can be obtained at a price which does not
substantially exceed its fair market value, and if the appropriate State
or local government lacks condemnation authority as evidenced by opinion
from the Attorney General, and there is authority to undertake the
proposed project, then the State Director shall follow the procedures
set out in Title 7, Subtitle A, Part 21 of the Code of Federal
Regulations (Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970) and immediately open negotiations to directly
acquire the real property through purchase or trade.

\(e\) The Rural Development State Director may acquire real property by
purchase to trade for other real property when Rural Development has
been requested to acquire real property by the Governor of the State in
which the real property is located.

\(f\) The Governor shall submit, with this request, a commitment from
the State to acquire real property, together with a plan of compensation
to Rural Development and evidence of the State\'s legal authority to
enter into this agreement with Rural Development to accept the real
property and repay Rural Development for the fair market value of the
real property for the intended purpose.

\(g\) Real property acquired by Rural Development shall be transferred
to the State requesting by a quitclaim deed for a price equal to the
fair market value in accordance with the terms of a transfer agreement.

\(h\) After obtaining title to the real property and prior to transfer
to the State, the property shall be managed by Rural Development in
accordance with Part 1955, Subpart B of this Chapter.

## 28 

RD Instruction 1948-B

§ 1948.88 (Cont.)

\(i\) The State Director shall inform the Governor that Rural
Development real property acquisition is not likely to occur by purchase
or trade if negotiations have failed to produce acceptable results
within 90 days of the request for Rural Development acquisition of real
property.

§ 1948.89 [Land condemnation by Rural Development]{.underline}.

\(a\) If Rural Development attempts to acquire real property at the
request of a Governor through purchase or trade and is unable to do so,
Rural Development may take action to condemn the real property by the
following procedures:

\(1\) A request for condemnation shall be submitted by the Rural
Development State Director to the Administrator, Rural Development,
Washington, D.C. 20250 at the request of the Governor of the appropriate
State. A copy of the Governor\'s request for Rural Development real
property condemnation and the State Attorney General\'s opinion that
State and local government condemnation authority is lacking shall be
attached to the Rural Development State Director\'s request.

\(2\) The Administrator shall forward all requests for Federal
condemnation to the OGC, USDA with a recommendation for action.

\(3\) The Administrator, Rural Development shall inform the Governor of
any action on the request for condemnation.

\(4\) Real property condemned by Rural Development shall be transferred
to the requesting State by a quitclaim Deed for a price equal to the
fair market value of the real property in accordance with terms of a
negotiated real property transfer agreement.

\(5\) After obtaining title to real property and prior to transfer to
the State, the property shall be managed by Rural Development in
accordance with Part 1955, Subpart B of this Chapter.

\(b\) Rural Development may not condemn Indian Trust Land or U.S. Forest
Service Land.

§ 1948.90 [Land transfers]{.underline}.

\(a\) Transfers of real property acquired by Rural Development.

\(1\) A request for Rural Development acquisition of real property by a
Governor of a State constitutes an agreement by that State to receive
said real property and to reimburse Rural Development for the fair
market value of said real property for the intended use.

## 29

## (Revision 3)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§ 1948.90 (a) (Con.)

\(2\) Terms and conditions, including reimbursement terms, for real
property transfers shall be set forth in a Real Property Transfer
Agreement between the Administrator, Rural Development and the
appropriate Governor. These terms and conditions will be agreed upon by
Rural Development and the State prior to Rural Development attempting to
acquire the property. These agreements shall be prepared after
consulting with OGC, and forwarded for prior approval by the Rural
Development National Office.

\(3\) All funds from real property transfers received by Rural
Development shall be deposited in the U.S. Treasury.

\(b\) Transfer of real property acquired and/or developed with grant
funds from a grant made under this Subpart to a person.

\(1\) Real property acquired and/or developed under this Subpart may be
transferred to a person for the purposes of construction of
privately-owned housing.

\(2\) All transfers of real property to a person must be approved by the
Rural Development State Director of the appropriate State.

\(3\) Transfer of real property by a recipient of assistance under this
Subpart to a person must be by contract which: acknowledges the use of
funds provided under this Subpart to acquire or develop the site;
specifies the date of performance prior to delivery of the deed;
provides for Rural Development concurrence before changes or
modifications; and assures Rural Development that the real property will
be used for the purposes under which the grant was made. (Revised
6-26-81, SPECIAL PN.)

\(4\) Proceeds derived from the sale of land acquired or developed
through the use of a grant provided under this Subpart must be divided
between the grantee and Rural Development on a pro rata basis. A grantee
may not recover its costs from sale proceeds to the exclusion of Rural
Development. The amount to be returned to Rural Development is to be
computed by applying the percentage of Rural Development grant
participation in the total cost of the project to the proceeds from the
sale. Funds will be remitted on Form RD 451-2, "Schedule of Remittances"
in accordance with the forms manual insert. (Revised 10-28-03, SPECIAL
PN.)

\(5\) All funds received by Rural Development from real property
transfers shall be deposited in the U.S. Treasury. (Added 6-26-81,
SPECIAL PN.)

## 30

## (Revision 3) 

RD Instruction 1948-B

§1948.91 [Inspections of development]{.underline}.

Inspections will be made by the Rural Development State Engineer or
other employee designated by the Rural Development State Director to
ascertain whether site development is proceeding in accordance with
plans and specifications. Such inspections are solely for the benefit of
the Government and not for the benefit of the Grantee or any other
person.

§1948.92 [Grant approval and fund obligation]{.underline}.

\(a\) The Rural Development State Office shall review the docket to
determine whether the proposed grant complies with this Subpart and that
funds are available.

\(b\) The Rural Development State Director shall be the approving
officer on all grants made under this Subpart.

## 30A

## (Revision 1)

(06-14-79) SPECIAL PN

§1948.92 (Cont.) RD Instruction 1948-B

\(c\) If at any time prior to grant approval it is decided that
favorable action will not be taken on a preapplication or application,
the Rural Development State Director will notify the applicant in
writing of the reasons why the request was not favorably considered. The
notification to the applicant will state that a review of this decision
by Rural Development may be requested by the applicant in accordance
with RD Instruction 1900-B.

\(d\) If a grant is recommended, Form RD 440-1 and the proposed grant
agreement and scope of work will be prepared and forwarded to the
applicant for signature.

\(e\) When Form RD 440-1 and the grant agreement and scope of work are
received by the applicant, the applicant will sign these documents and
forward them to the State Director.

\(f\) Exhibit A to RD Instruction 2015-C (available in any Rural
Development office) will be prepared by the State Director and sent to
the Director of Legislative Affairs and Public Information Staff
(LAPIS), Rural Development.

\(g\) If the State Director approves the project, the following actions
will be taken in the order listed:

\(1\) The State Director, or a designee, will telephone the Finance
Office requesting that grant funds for a particular project be
obligated. Immediately after contacting the Finance Office, the
requesting official shall furnish the requesting office\'s security
identification code. Failure to furnish the security code will result in
the rejection of the request of obligation. After the security code is
furnished, the required information from Form RD 440-1 shall be
furnished to the Finance Office. Upon receipt of the telephone request
for obligation of funds, the Finance Office shall record all information
necessary to process the request for obligation in addition to the date
and time of request;

\(2\) The individual making the request shall record the date and time
of the request.

\(3\) The Finance Office will notify the Rural Development State Office
by telephone when funds are reserved and the date the funds will be
obligated. If funds cannot be reserved for a project, the Finance Office
will notify the Rural Development State Office that funds are not
available. The obligation date will be six working days from the date
the request for obligation is processed.

## 31

## (Revision 1)

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.92 (g) (Cont.)

\(4\) The Finance Office will send Form RD 440-57. \"Acknowledgement of
Obligated Funds/Check Request,\" to the Rural Development State
Director, informing the State Director of the reservation of funds with
the obligation date inserted as required by Item 9 on the Forms Manual
Insert (FMI) for Form RD 440-57.

\(5\) Form RD 440-1 will not be mailed to the Finance Office.

\(6\) A copy of Form RD 440-1 will be sent the Rural Development
National Office.

\(7\) The State Director shall notify the Director of Information in the
Rural Development National Office with a recommendation that the project
announcement be released.

\(8\) An executed copy of Form RD 440-1 shall be sent to the applicant
along with an executed copy of the grant agreement and scope of work on
or before the date funds are obligated.

\(9\) The actual date of applicant notification will be entered on the
original of Form RD 440-1 and the original of the form will be included
as a permanent part of the file.

\(10\) For planning grants, Standard Form 270. \"Request for Advance or
Reimbursement,\" will be sent to the applicant for completion and return
to Rural Development. For site acquisition and site development grants,
Standard Form 271, \"Outlay Report and Request for Reimbursement for
Construction Programs,\" will be sent to the applicant for completion
and returned to Rural Development.

\(11\) If it is determined that a project will not be funded or if major
changes in the scope of the project are made after release of the
approval announcement, the Rural Development State Director will notify
the Director, Legislative Affairs and Public Information Staff (LAPIS)
by telephone or electronic mail, giving the reasons for such action. The
Director, LAPIS will inform all parties who were notified by the project
announcement that the project will not be funded or of major changes in
the project using a procedure similar to the announcement process. Form
RD 1940-10, \"Cancellation of U.S. Treasury Check and/or Obligation\",
will not be submitted to the Finance Office until five working days
after notifying the Director of LAPIS. (Revised 8-19-82, SPECIAL PN.)

## 32

## (Revision 1) 

§1948.92 (g) (Cont.) RD Instruction 1948-B

\(12\) Upon receipt of a properly completed SF 270 or SF 271, the
appropriate check request information will be telephoned to the Finance
Office.

§1948.93 [Appeal procedure]{.underline}.

Any grantee or applicant for Rural Development assistance under this
Subpart who has been directly and adversely affected by an
administrative decision by Rural Development may appeal such decision in
accordance with RD Instruction 1900-B.

§1948.94 [Reporting requirements]{.underline}.

\(a\) For planning grants, SF-270 shall be submitted by grantees on an
as-needed basis but not more frequently than once every 30 days. SF-269,
\"Financial Status Report,\" and a project performance activity report
will be required of all grantees on a quarterly basis. SF-269 and a
final project performance report will also be required. These final
reports may serve as the last quarterly reports. Grantees shall
constantly monitor performance to ensure that time schedules are being
met, projected work by time periods is being accomplished, and other
performance objectives are being achieved. All grantees except States
should submit an original of each report and one copy to the appropriate
Rural Development District Office. When the grantee is a State, an
original should be submitted to the appropriate Rural Development State
Office. The project performance reports shall include, but need not be
limited to the following:

\(1\) A comparison of actual accomplishments to the objectives
established for that period;

\(2\) Reasons why established objectives were not met;

\(3\) Problems, delays, or adverse conditions which will materially
affect attainment of planned project objectives, prevent the meeting of
time schedules or objectives, or preclude the attainment of project work
elements during established time periods. This disclosure shall be
accompanied by a statement of the action taken or contemplated and any
Federal assistance needed to resolve the situation; and

\(4\) Objectives established for the next reporting period.

\(b\) For site development and land acquisition grants, grantees shall
submit Form SF-271 for payment of site development costs. Multiple
advances will be made in accordance with RD Instruction 1902-A
(available in any Rural Development office) and will be made as needed
to cover required disbursements for not less than 30 day periods.
Advances will be requested for the next 30 day period

## 33

## 

(06-14-79) SPECIAL PN

RD Instruction 1948-B

§1948.94 (b) (Cont.)

by the grantee on Form SF-272, \"Report of Federal Cash Transactions.\"
Each payment estimate must be approved by the grantee. A final Form
SF-272 will be submitted to Rural Development to include the final
advance not later than 90 days after the final advance.

§1948.95 [Grant monitoring]{.underline}.

Each grant will be monitored by Rural Development to ensure that the
Grantee is complying with the terms of the grant and that the project
activities are completed as approved. This will involve on-site visits
to the project area and review of quarterly and final reports by Rural
Development.

§1948.96 [Audit requirements]{.underline}.

\(a\) Audit requirements for Site Development and Acquisition Grants
will be made in accordance with RD Instruction 1942-G.

\(b\) Audits for planning grants made in accordance with State statutes
or regulatory agencies will be acceptable provided they are prepared in
sufficient detail to permit Rural Development to determine that grant
funds have been used in compliance with the proposal, any applicable
laws and regulations, and the grant agreement. A copy of the audit shall
be submitted to the State Director as soon as possible but in no case
later than 90 days following the period covered by the grant.

§1948.97 [Grant closing and fund disbursement]{.underline}.

Grant closing and fund disbursement will be accomplished in accordance
with RD Instruction 1942-G.

§1948.98 [Grant agreements]{.underline}.

The following Grant Agreements are a part of this regulation.

\(a\) Exhibit A of this Subpart is a Grant Agreement for Growth
Management and Housing Planning Grants for approved Designated Energy
Impacted Areas.

\(b\) Exhibit B of this Subpart is a Grant Agreement for Site
Development and/or Site Acquisition for Housing and/or Public Facilities
and/or Services.

§§1948.99 - 1948.100 \[Reserved\]

Attachments: Exhibits A and B

## 34

## oOo 

RD Instruction 1948-B

## Exhibit A

## 

## Grant Agreement

## 

## Growth Management and Housing Planning 

## 

## for Approved Designated Energy Impacted Areas

## 

This Agreement is
between[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}

[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}(name),

[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}(address),

(Grantee) and the United States of America acting through the Rural
Development (Grantor or Rural Development). Grantee has determined to
undertake certain growth management and housing planning for energy
impacted areas at an estimated cost of \$
[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}\_ and has duly authorized
such planning. The Grantor agrees to grant to Grantee a sum not to
exceed \$ [\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline} subject to the terms
and conditions established by the Grantor; provided, however, that any
grant funds actually advanced and not needed for grant purposes shall be
returned immediately to the Grantor. The Grantor may terminate the grant
in whole, or in part, at any time before the date of completion,
whenever it is determined that the Grantee has failed to comply with the
conditions of the grant. In consideration of said grant by Grantor to
Grantee, to be made pursuant to Section 601 of the Powerplant and
Industrial Fuel Use Act of 1978 (P.L. 95-620) for the purpose only of
defraying the planning costs as permitted by applicable Rural
Development regulations:

[Part A]{.underline}

Grantor and Grantee agree:

1\. This agreement shall be effective when executed by both parties.

2\. The scope of work set out below shall be completed prior to

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

3\. Use of grant funds for travel which is determined as being necessary
to the program for which the grant is established may be subject to the
travel policies of the Grantee institution if they are uniformly applied

(06-14-79) SPECIAL PN

RD Instruction 1948-B

Exhibit A

Page 2

regardless of the source of funds in determining the amounts and types
of reimbursable travel expenses of Grantee staff and consultants. Where
the Grantee institution does not have such specific policies uniformly
applied, the Federal Travel Regulations shall apply in determining the
amount charged to the grant. Grantee may purchase furniture and office
equipment only if specifically approved in the scope of work. Approval
will be given only when Grantee demonstrates that purchase is necessary
and would result in less cost to the Government in providing
Federal-share funds or to the Grantee in providing its contributions.
Commercial purchase under these circumstances will be approved only
after consideration of Federal supply sources.

\(b\) Expenses and Purchases Excluded:

\(i\) In no event shall the Grantee expend or request reimbursement from
Federal-share funds for obligations entered into or for costs incurred
or accrued prior to the effective date of this grant.

\(ii\) Funds budgeted under this grant may not be used for entertainment
expenses.

\(iii\) Funds budgeted under this grant may not be used to pay for
capital assets, the purchase of real estate or vehicles, improvement and
renovation of space, and repair and maintenance of privately-owned
vehicles.

\(c\) Grant funds shall not be used to replace any financial support
previously provided or assured from any other source. The Grantee agrees
that the general level of expenditure by the Grantee for the benefit of
program area and/or program covered by this agreement shall be
maintained and not reduced as a result of the Federal share funds
received under this grant.

4\. (a) In accordance with Treasury Circular 1075, grant funds will be
disbursed by the Rural Development as cash advances on an as-needed
basis not to exceed one advance every 30 days. The financial management
system of the recipient organization shall provide for effective control
over and accountability for all Federal funds as stated in OMB Circular
A-102 revised for State and local governments.

\(b\) Cash advances to the Grantee shall be limited to the minimum
amounts needed and shall be timed to be in accord only with the actual,
immediate cash requirements of the Grantee in carrying out the purpose
of the planning project.

\(c\) The timing and amount of cash advances shall be as close as is
administratively feasible to the actual disbursements by the recipient
organization for direct program costs.

RD Instruction 1948-B

Exhibit A

Page 3

\(d\) Federal funds should be promptly refunded to the Rural Development
and redrawn when needed if the funds are erroneously drawn in excess of
immediate disbursement needs. The only exceptions to the requirement for
prompt refunding are when the funds involved:

\(i\) will be disbursed by the recipient organization within seven
calendar days, or

\(ii\) are less than \$10,000 and will be disbursed within 30 calendar
days.

\(e\) Grantee shall provide satisfactory evidence to Rural Development
that all officers of Grantee organization authorized to receive and/or
disburse Federal funds are covered by such bonding and/or insurance
requirements as are normally required by the Grantee.

\(f\) Grant funds will be placed in a bank account(s). If for any reason
grant funds are invested, income earned on such investment shall be
identified as interest income on grant funds and forwarded to the
Finance Office, Rural Development, St. Louis, Missouri, unless the
Grantee is a State. \"State\" includes instrumentalities of a State but
not political subdivisions of a State. A State Grantee is not
accountable for interest earned on grant funds.

5\. The Grantee will submit Performance and Financial reports as
indicated below:

\(a\) As needed, but not more frequently than once every 30 days, an
original and 2 copies of Standard Form 270, \"Request for Advance or
Reimbursement;\"

\(b\) Quarterly, an original and 2 copies of Standard Form 269,
\"Financial Status Report,\" and a Project Performance report according
to the schedule below:

[Period]{.underline} [Date Due]{.underline}

(06-14-79) SPECIAL PN

RD Instruction 1948-B

Exhibit A

Page 4

\(c\) Final, an original and 2 copies of Standard Form 269, \"Financial
Status Report,\" and a Project Performance report according to the
schedule below:

[Period]{.underline} [Date Due]{.underline}

Note: Final reports may serve as the last quarterly reports.

\(d\) The Project Performance reports shall include but need not be
limited to the following:

\(i\) A comparison of actual accomplishment to the objectives
established for that period;

\(ii\) Reasons why established objectives were not met;

\(iii\) Problems, delays, or adverse conditions which will materially
affect attainment of planned project objectives, prevent the meeting of
1 time schedules or objectives, or preclude the attainment of project
work elements during established time periods. This disclosure shall be
accompanied by a Statement of the action taken or contemplated and any
Federal assistance needed to resolve the situation; and

\(iv\) Objectives established for the next reporting period.

\(e\) All Grantees except States shall submit an original of each report
and one copy to the appropriate Rural Development District Office. A
State Grantee shall submit original reports to the appropriate Rural
Development State Office.

\(f\) The plan(s) developed under this grant shall be submitted to the
appropriate Governor for incorporation into the State Investment
Strategy for Energy Impacted Areas. The Governor will submit the plan
and the State Investment Strategy to the appropriate Rural Development
State Office(s). The Rural Development State Office will forward the
plan and State Investment Strategy to the Rural Development National
Office for approval of the plan.

RD Instruction 1948-B

Exhibit A

Page 5

6\. The Budget covered by this agreement is:

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

\| \|Federal \| Non-Federal \| \|

\|[Budget
Categories]{.underline}\_\_\_\_\_\_\_\|[Funds]{.underline}\_\_\_\_\|\_\_\_\_\_\_\_\_[Share]{.underline}\_\_\_\_\_\_\_\_\|\_[Total]{.underline}\_\_\_\_\_\_\_\_\_\|

\|Direct Charges: \| \| Cash \| In-kind \| \|

\| \| \| \| \| \|

\|1. Personnel
\|\$\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|

\|2. Fringe Benefits
\|\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|

\|3. Travel
\|\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|

\|4. Equipment
\|\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|

\|5. Supplies
\|\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|

\|6. Contractual
\|\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|

\|7. Other
\|\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|

\| Total Direct
Charges\|\$\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|

\|8. Indirect Charges
\|\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|

\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|

\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_[TOTAL]{.underline}\_\_\_\|\$\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\|\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\|

\(a\) In accordance with FMC 74-4, Attachment B, compensation for
employees will be considered reasonable to the extent that such
compensation is consistent with that paid for similar work in other
activities of the State or local government.

\(b\) In accordance with OMB Circular A-102, Attachment K, transfers
among direct cost budget categories of more than 5 percent of the total
budget must have prior written approval by the State Director, Rural
Development.

7\. (a) The scope of work is described in the attached exhibit 1. The
Grantee accepts responsibility for establishing a development process
which will improve local conditions and alleviate problems associated
with increased coal or uranium production in the Grantee areas. The
Grantee shall:

\(i\) Develop a growth management and housing plan for assistance to
approved designated area(s) impacted by increased coal or uranium
production.

\(ii\) Contribute to development of a State Investment Strategy for
Energy Impacted Areas.

\(iii\) Endeavor to coordinate and provide liaison with State
development organizations, where they exist.

\(iv\) Provide continuing information to Rural Development on the status
of Grantee programs, projects, related activities, and problems.

(06-14-79) SPECIAL PN

RD Instruction 1948-B

Exhibit A

Page 6

\(b\) The Grantee shall inform the Grantor as soon as the following
types of conditions become known:

\(i\) Problems, delays, or adverse conditions which materially affect
the ability to attain program objectives, prevent the meeting of time
schedules or goals, or preclude the attainment of project work units by
established time periods. This disclosure shall be accompanied by a
statement of the action taken or contemplated, and any Grantor
assistance needed to resolve the situation.

\(ii\) Favorable developments or events which enable meeting time
schedules and goals sooner than anticipated or producing more work units
than originally projected.

[Part B]{.underline}

Grantee agrees:

1\. To comply with property management standards established by
Attachment N of OMB Circular A-102 for expendable and nonexpendable
personal property \"Personal property\" means property of any kind
except real property. It may be tangible\--having physical
existence\--or intangible-having no physical existence, such a patents,
inventions, and copyrights. \"Nonexpendable personal property\" means
tangible personal property having a useful life of more than one year
and an acquisition cost of \$300 or more per unit. A Grantee may use its
own definition of nonexpendable personal property provided that such
definition would at least include all tangible personal property as
defined above. \"Expendable personal property\" refers to all tangible
personal property other than nonexpendable property. When nonexpendable
tangible property is acquired by a Grantee with project funds, title
shall not be taken by the Federal Government but shall vest in the
Grantee subject to the following conditions:

\(a\) Right to transfer title. For items of nonexpendable personal
property having a unit acquisition cost of \$1,000 or more, Rural
Development may reserve the right to transfer the title to the Federal
Government or to a third party named by the Federal Government when such
third party is otherwise eligible under existing statutes. Such
reservation shall be subject to the following standards:

\(1\) The property shall be appropriately identified in the grant or
otherwise made known to the Grantee in writing.

\(2\) Rural Development shall issue disposition instructions within 120
calendar days after the end of the Federal support of the project for
which it was acquired. If Rural Development fails to issue disposition
instructions within the 120 calendar day period, the Grantee shall apply
the standards of paragraph (4) below.

RD Instruction 1948-B

Exhibit A

Page 7

\(3\) When Rural Development exercises its right to take title, the
personal property shall be subject to the provisions for federally owned
nonexpendable property discussed in paragraph (4), below.

\(4\) When title is transferred either to the Federal Government or to a
third party and the Grantee is instructed to ship the property
elsewhere, the Grantee shall be reimbursed by the benefiting Federal
agency with an amount which is computed by applying the percentage of
the Grantee participation in the cost of the original grant project or
program to the current fair market value of the property, plus any
reasonable shipping or interim storage costs incurred.

\(b\) Use of other nontangible expendable property for which the Grantee
has title.

\(1\) The Grantee shall use the property in the project or program for
which it was acquired as long as needed, whether or not the project or
program continues to be supported by Federal funds. When it is no longer
needed for the original project or program, the Grantee shall use the
property in connection with its other Federally sponsored activities, in
the following order of priority:

\(a\) Activities sponsored by Rural Development.

\(b\) Activities sponsored by other Federal agencies.

\(2\) Shared use. During the time that nonexpendable personal property
is held for use on the project or program for which it was acquired, the
Grantee shall make it available for use on other projects or programs if
such other use will not interfere with the work on the project or
program for which the property was originally acquired. First preference
for such other use shall be given to other projects or programs
sponsored by Rural Development; second preference shall be given to
projects or programs sponsored by other Federal agencies. If the
property is owned by the Federal Government, use on other activities not
sponsored by the Federal Government shall be permissible if authorized
by Rural Development. User charges should be considered if appropriate.

\(c\) Disposition of other nonexpendable property. When the Grantee no
longer needs the property as provided in l(a)(4) above, the property may
be used for other activities in accordance with the following standards:

(06-14-79) SPECIAL PN

RD Instruction 1948-B

Exhibit A

Page 8

\(1\) Nonexpendable property with a unit acquisition cost of less than
\$1,000. The Grantee may use the property for other activities without
reimbursement to the Federal Government or sell the property and retain
the proceeds.

\(2\) Nonexpendable personal property with a unit acquisition cost of
\$1,000 or more. The Grantee may retain the property for other use
provided that compensation is made to Rural Development or its
successor. The amount of compensation shall be computed by applying the
percentage of Federal participation in the cost of the original project
or program to the current fair market value of the property. If the
Grantee has no need for the property and the property has further use
value, the Grantee shall request disposition instructions from the
original Grantor agency.

Rural Development shall determine whether the property can be used to
meet the agency\'s requirements. If no requirement exists within that
agency, the availability of the property shall be reported, in
accordance with the guidelines of the Federal Property Management
Regulations (FPMR), to the General Services Administration by Rural
Development to determine whether a requirement for the property exists
in other Federal agencies. Rural Development shall issue instructions to
the Grantee no later than 120 days after the Grantee request and the
following procedures shall govern:

\(a\) If so instructed or if disposition instructions are not issued
within 120 calendar days after the Grantee\'s request, the Grantee shall
sell the property and reimburse Rural Development an amount computed by
applying to the sales proceeds the percentage of Federal participation
in the cost of the original project or program. However, the Grantee
shall be permitted to deduct and retain from the Federal share \$100 or
ten percent of the proceeds, whichever is greater, for the Grantee\'s
selling and handling expenses.

\(b\) If the Grantee is instructed to dispose of the property other than
as described in l(a)(4) above, the Grantee shall be reimbursed by Rural
Development for such costs incurred in its disposition.

\(c\) Property management standards for nonexpendable property. The
Grantee\'s property management standards for nonexpendable personal
property shall include the following procedural requirements:

\(1\) Property records shall be maintained accurately and shall include:

\(a\) A description of the property.

\(b\) Manufacturer\'s serial number, model number, Federal stock number,
national stock number, or other identification number.

RD Instruction 1948-B

Exhibit A

Page 9

\(c\) Sources of the property including grant or other agreement number.

\(d\) Whether title vests in the Grantee or the Federal Government.

\(e\) Acquisition date (or date received, if the property was furnished
by the Federal Government) and cost.

\(f\) Percentage (at the end of the budget year) of Federal
participation in the cost of the project or program for which the
property was acquired. (Not applicable to property furnished by the
Federal Government.)

\(g\) Location, use and condition of the property and the date the
information was reported.

\(h\) Unit acquisition cost.

\(i\) Ultimate disposition data, including date of disposal and sales
price or the method used to determine current fair market value where a
Grantee compensates the Federal agency for its share.

\(2\) Property owned by the Federal Government must be marked to
indicate Federal ownership.

\(3\) A physical inventory of property shall be taken and the results
reconciled with the property records at least once every two years. Any
differences between quantities determined by the physical inspection and
those shown in the accounting records shall be investigated to determine
the causes of the difference. The Grantee shall, in connection with the
inventory, verify the existence, current utilization, and continued need
for the property.

\(4\) A control system shall be in effect to ensure adequate safeguards
to prevent loss, damage, or theft of the property. Any loss, damage, or
theft of nonexpendable property shall be investigated and fully
documented; if the property was owned by the Federal Government, the
Grantee shall promptly notify Rural Development.

\(5\) Adequate maintenance procedures shall be implemented to keep the
property in good condition.

\(6\) Where the Grantee is authorized or required to sell the property,
proper sales procedures shall be established which would provide for
competition to the extent practicable and result in the highest possible
return.

\(7\) Expendable personal property shall vest in the Grantee upon
acquisition. If there is a residual inventory of such property exceeding

(06-14-79) SPECIAL PN

RD Instruction 1948-B

Exhibit A

Page 10

\$1,000 in total aggregate fair market value, upon termination or
completion of the grant and if the property is not needed for any other
Federally sponsored project or program, the Grantee shall retain the
property for use on nonfederally sponsored activities, or sell it, but
must in either case compensate the Federal Government for its share. The
amount of compensation shall be computed in the same manner as
nonexpendable personal property.

2\. To provide Financial Management Systems which will include:

\(a\) Accurate, current, and complete disclosure of the financial
results of each grant. Financial Reporting will be on an accrual basis.

\(b\) Records which identify adequately the source and application of
funds for grant-supported activities. Those records shall contain
information pertaining to grant awards and authorizations, obligations,
unobligated balances, assets, liabilities, outlays, and income.

\(c\) Effective control over and accountability for all funds, property,
and other assets. Grantee shall adequately safeguard all such assets and
shall assure that they are used solely for authorized purposes.

\(d\) Accounting records supported by source documentation.

\(e\) Provide an audit report prepared in sufficient detail to allow
Grantor to determine that funds have been used in compliance with the
proposal any applicable laws and regulations and this agreement.

3\. To retain financial records, supporting documents, statistical
records, and all other records pertinent to the grant for a period of at
least three years after closing except that the records shall be
retained beyond the three-year period if audit findings have not been
resolved. Microfilm copies may be substituted in lieu of original
records. The Grantor and the Comptroller General of the United States,
or any of their duly authorized representatives, shall have access to
any books, documents, papers, and records of the Grantee which are
pertinent to the specific grant program for the purpose of making audit,
examination, excerpts, and transcripts.

4\. To provide information as requested by the Grantor to determine the
need for and complete any necessary Environmental Impact Statements.

5\. To provide information as requested by the Grantor concerning the
Grantee\'s actions in soliciting citizen participation in the
application process, including published notice of public meetings,
actual public meetings held, and content of written comments received.

RD Instruction 1948-B

Exhibit A

Page 11

6\. To account for and to return to Grantor interest earned on grant
funds pending their disbursement for program purposes unless the Grantee
is a State. See Part A 4(f) above.

7\. Not to encumber, transfer, or dispose of the property or any part
thereof, furnished by the Grantor or acquired wholly or in part with
Grantor funds without the written consent of the Grantor except as
provided in Part B 1.

8\. To provide Grantor such periodic reports as it may require of
Grantee operations by designated representative of the Grantor.

9\. To execute Form RD 400-1, \"Equal Opportunity Agreement,\" and to
execute any other agreements required by Grantor to implement the civil
rights requirements.

10\. To include in all contracts in excess of \$100,000 a provision for
compliance with all applicable standards, orders, or regulations issued
pursuant to the Clean Air Act of 1970. Violations shall be reported to
the Grantor and the Regional Office of the Environmental Protection
Agency.

11\. That, upon any default under its representations or agreements set
forth in this instrument, Grantee, at the option and demand of Grantor,
will, to the extent legally permissible, repay to the Grantor forthwith
the original principal amount of the grant stated herein above, with
interest at the rate of five percent per annum from the date of the
default. The provisions of this Grant Agreement may be enforced by
Grantor, at its option and without regard to prior waivers by it of
previous defaults of Grantee, by judicial proceedings to require
specific performance of the terms of this Grant Agreement or by such
other proceedings in law or equity, in either Federal or State courts,
as may be deemed necessary by Grantor to assure compliance with the
provisions of this Grant Agreement and the laws and regulations under
which this grant is made.

12\. That no member of Congress shall be admitted to any share or part
of this grant or any benefit that may arise therefrom; but this
provision shall not be construed to bar as a contractor under the grant
a publicly held corporation whose ownership might include a member of
Congress.

13\. That all non-confidential information resulting from its activities
shall be made available to the general public on an equal basis.

14\. That the purpose and scope of work for which this grant is made
shall not duplicate programs for which monies have been received, are
committed, or are applied for from other sources, public and private.

(06-14-79) SPECIAL PN

RD Instruction 1948-B

Exhibit A

Page 12

15\. That the Grantee shall relinquish any and all copyrights and/or
privileges to the materials developed under this grant, such material
being the sole property of the Federal Government. In the event anything
developed under this grant is published in whole or in part, the
material shall contain notice and be identified by language to the
following effect: \"The material is the result of tax-supported research
and as such is not copyrightable. It may be freely reprinted with the
customary crediting of the source.\"

16\. That the Grantee shall abide by the policies promulgated in OMB
Circular A-102, Attachment 0, which provides standards for use by
Grantees in establishing procedures for the procurement of supplies,
equipment, and other services with Federal grant funds.

17\. To the following termination provisions:

\(a\) Termination for cause: The Grantor agency may terminate any grant
in whole, or in part, at any time before the date of completion,
whenever it is determined that the Grantee has failed to comply with the
conditions of the grant. The Grantor agency shall promptly notify the
Grantee in writing of the determination and the reasons for the
termination, together with the effective date.

\(b\) Termination for convenience. The Grantor agency or Grantee may
terminate grants in whole, or in part, when both parties agree that the
continuation of the project would not produce beneficial results
commensurate with the further expenditure of funds. The two parties
shall agree upon the termination conditions, including the effective
date and, in the case of partial terminations, the portion to be
terminated. The Grantee shall not incur new obligations for the
terminated portion after the effective date, and shall cancel as many
outstanding obligations as possible. The Grantor agency shall allow full
credit to the Grantee for the Federal share of the noncancelable
obligations, properly incurred by the Grantee prior to termination.

[Part C]{.underline}

Grantor agrees:

1\. That it will assist Grantee, within available appropriations, with
such technical assistance as Grantor deems appropriate in planning the
project and coordinating the plan with local official comprehensive
plans and with any State or area plans for the area in which the project
is located.

RD Instruction 1948-B

Exhibit A

Page 13

2\. That at its sole discretion, Grantor may at any time give any
consent, deferment, subordination, release, satisfaction, or termination
of any or all of Grantee\'s grant obligations, with or without valuable
consideration, upon such terms and conditions as Grantor may determine
to be (a) advisable to further the purposes of the grant or to protect
Grantor\'s financial interest therein, and (b) consistent with both the
statutory purposes of the grant and the limitations of the statutory
authority under which it is made.

This agreement is subject to current Grantor regulations and any future
regulations not inconsistent with the express terms hereof.

Grantee on [\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}\_,
20[\_\_]{.underline}\_, has caused this agreement to be executed by its
duly authorized [\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline} and
attested and its corporate seal affixed by its duly authorized
[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}.

Attest:

Grantee:

By \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

(Title)

By \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

(Title)

Grantor:

UNITED STATES OF AMERICA

RURAL DEVELOPMENT

By \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

(Title)

## o0o

(06-14-79) SPECIAL PN

RD Instruction 1948-B

## Exhibit B

## 

## Grant Agreement (Public Bodies)

## 

## for Site Development and/or Site Acquisition

## 

## for Housing and/or Public Facilities and/or Services

## 

THIS AGREEMENT dated
[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline},
20[\_\_]{.underline}\_, between \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}\_\_

a public body corporate organized and operating under
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Authorizing State Statute) Herein called \"Grantee,\" and the United
States of America acting through the Rural Development, Department of
Agriculture, herein called \"Grantor,\" WITNESSETH:

Grantee has determined to undertake a project for site acquisition
and/or site development as follows:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(herein called project) to serve the approved designated energy impacted
area under its jurisdiction at an estimated cost of
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, and has duly authorized the
undertaking of such project;

Grantee is able to finance not more than
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_of the site acquisition and/or site
development costs through revenues, charges, taxes or assessments, or
funds otherwise available to Grantee. Said sum has been committed to and
by Grantee for such project acquisition and/or site development costs.

The Grantor agrees to grant to Grantee a sum not to exceed
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_ subject to the terms and conditions
established by the Grantor. Provided, however, that the proportionate
share of any grant funds actually advanced and not needed for grant
purposes shall be returned immediately to the Grantor. The Grantor may
terminate the grant in whole, or in part, at any time before the date of
completion, whenever it is determined that the Grantee has failed to
comply with the conditions of the grant.

In consideration of said grant by Grantor to Grantee, to be made
pursuant to Section 601 of the Powerplant and Industrial Fuel Use Act of
1978 (P.L. 95-620) for the purpose only of defraying a part of the
acquisition and/or site development costs, as defined by applicable
Rural Development regulations:

(06-14-79) SPECIAL PN

RD Instruction 1948-B

Exhibit B

Page 2

Grantee agrees that Grantee will

1\. Cause said project to be completed within the total sums available
to it, including said grant, in accordance with the project plans and
specifications and any necessary modifications thereof prepared by
Grantee and approved by Grantor.

2\. Permit periodic inspection of the project by a representative of
Grantor.

3\. Make the housing or public facility or services available to all
persons in Grantee\'s service area without regard to race, color,
national origin, religion, sex, marital status, age, physical or mental
handicap.

4\. Use the real property including land and land improvements for
authorized purposes of the grant as long as needed.

a\. The Grantee shall obtain approval of the Grantor before using the
real property for other purposes when the Grantee determines that the
property is no longer for the original purposes.

b\. When the real property is no longer needed as provided above, return
all real property furnished or purchased wholly with Federal grant funds
to the Grantor. In the case of property purchased in part with Federal
grant funds, the Grantee may be permitted to take title to the Federal
interest therein upon compensating the Federal Government for its fair
share of the property. The Federal share of the property shall be the
amount computed by applying the percentage of the Federal participation
in the total cost of the grant program for which the property was
acquired to the current fair market value of the property.

5\. Not use grant funds to replace any financial support previously
provided or assured from any other source. The Grantee agrees that the
general level of expenditure by the Grantee for the benefit of program
area and/or program covered by this agreement shall be maintained and
not reduced as a result of the Federal share funds received under this
grant.

6\. Not use grant funds to pay for construction costs of housing or
public facilities.

This Grant Agreement covers the following described real property (use
continuation sheets as necessary).

RD Instruction 1948-B

Exhibit B

Page 3

7\. Abide by the following conditions pertaining to nonexpendable
personal property which is furnished by the Grantor or acquired wholly
or in part with Grant Funds.

a\. The Grantee shall retain such property as long as there is a need
for the property to accomplish the purpose of the grant. When there is
no longer a need for the property to accomplish the purpose of the
grant, the Grantee shall use the property in connection with other
Federal grants it has received in the following order of priority.

\(1\) Other grant of the Grantor needing the property.

\(2\) Grants of other Federal agencies needing the property.

b\. When the Grantee no longer has need for the property in any of its
Federal grant programs, the property may be used for its own official
activities in accordance with the following standards:

\(1\) Nonexpendable property with an acquisition cost of less than \$500
and used four years or more. The Grantee may use the property for its
own official activities without reimbursement to the Federal Government
or sell the property and retain the proceeds.

\(2\) All other nonexpendable property. The Grantee may retain the
property for its own use provided that a fair compensation is made to
the Grantor. The amount of compensation shall be computed by applying
the percentage of the Grantor participation in the grant program to the
current fair market value of the property as determined by the Grantor.

c\. If the Grantee has no need for the property, disposition shall be
made as follows:

\(1\) Nonexpendable property with an acquisition cost of \$1,000 or
less. Except for that property which meets the criteria of b (1) above,
the Grantee shall sell the property and reimburse the Grantor an amount
which is computed in accordance with (3) below.

(06-14-79) SPECIAL PN

RD Instruction 1948-B

Exhibit B

Page 4

\(2\) Nonexpendable property with an acquisition cost of over \$1,000.
The Grantee shall request disposition instructions from Grantor.

\(3\) If disposition instructions are not issued within 120 days after
reporting, the Grantee shall sell the property and reimburse the Grantor
an amount which is computed by applying the percentage of the Grantor
participation in the grant program to the sales proceeds. Further, the
Grantee shall be permitted to retain \$100 or ten percent of the
proceeds, whichever is greater, for the Grantee\'s selling and handling
expenses.

d\. The Grantee\'s property management standards for nonexpendable
personal property shall also include:

\(1\) Property records which accurately provide for: a description of
the property; manufacturer\'s serial number or other identification
number; acquisition date and cost; sources of the property; and ultimate
disposition data including sales price or the method used to determine
current fair market value if the Grantee reimburses the Grantor for its
share.

\(2\) A physical inventory of property shall be taken and the result
reconciled with the property records at least once every two years to
verify the existence, current utilization, and continued need for the
property.

\(3\) A control system shall be in effect to insure adequate safeguards
to prevent loss, damage, or theft to the property shall be investigated
and full documented.

\(4\) Adequate maintenance procedures shall be implemented to keep the
property in good condition.

\(5\) Proper sales procedures shall be established for unneeded property
which would provide for competition to the extent practicable and result
in the highest possible return.

This Grant Agreement covers the following described nonexpendable
property (use continuation sheets as necessary).

RD Instruction 1948-B

Exhibit B

Page 5

8\. Provide Financial Management Systems which will include:

\(a\) Accurate, current, and complete disclosure of the financial
results of each grant. Financial Reporting will be on an accrual basis.

\(b\) Records which identify adequately the source and application of
funds for grant-supporting activities. Those records shall contain
information pertaining to grant awards and authorizations, obligations,
unobligated balances, assets, liabilities, outlays, and income.

\(c\) Effective control over and accountability for all funds, property
and other assets. Grantees shall adequately safeguard all such assets
and shall assure that they are used solely for authorized purposes.

\(d\) Accounting records supported by source documentation.

9\. Retain financial records, supporting documents, statistical records,
and all other records pertinent to the grant for a period of at least
three years after grant closing except that the records shall be
retained beyond the three-year period if audit findings have not been
resolved. Microfilm copies may be substituted in lieu of original
records. The Grantor and the Comptroller General of the United States,
or any of their duly authorized representatives, shall have access to
any books, documents, papers, and records of the Grantee governments
which are pertinent to the specific grant program for the purpose of
making audit, examination, excerpts and transcripts.

10\. Provide information as requested by the Grantor to determine the
need for and complete any necessary Environmental Impact Statements.

11\. Provide an audit report prepared in sufficient detail to allow the
Grantor to determine that funds have been used in compliance with the
proposal, any applicable laws and regulations and this agreement.

12\. Agree to account for and to return to Grantor interest earned on
grant funds pending their disbursement for program purposes when the
Grantee is a unit of local government. States and agencies of
instrumentalities of states shall not be held accountable for interest
earned on grant funds pending their disbursement.

(06-14-79) SPECIAL PN

RD Instruction 1948-B

Exhibit B

Page 6

13\. Not encumber, transfer, or dispose of the property or any part
hereof, furnished by the Grantor or acquired wholly or in part with
Grantor funds without the written consent of the Grantor except as
provided in item 5 above.

14\. Provide Grantor with such periodic reports as it may require and
permit periodic inspection of its operations by a designated
representative of the Grantor.

15\. Execute Form RD 400-1, \"Equal Opportunity Agreement,\" Form RD
400-4, \"Nondiscrimination Agreement,\" and any other agreements
required by Grantor to implement the civil rights requirements. If any
such form has been executed by Grantee as a result of a loan being made
to Grantee by Grantor contemporaneously with the making of this grant,
another form of the same type need not be executed in connection with
this grant.

16\. Include in all contracts for construction or repair a provision for
compliance with the Copeland \"Anti-Kick Back\" Act (18 USC 874) as
supplemented in Department of Labor regulations (29 CFR, Part 3). The
Grantee shall report all suspected or reported violations to the
Grantor.

17\. In Contracts in excess of \$2,000 and in other contracts in excess
of \$2,500 which involve the employment of mechanics or laborers, to
include a provision for compliance with sections 103 and 107 of the
Contract Work Hours and Safety Standards Act (40 USC 327-330) as
supplemented by Department of Labor regulations (29 CFR, Part 5).

18\. Include in all contracts in excess of \$2,500 a provision for
compliance with applicable regulations and standards of the Cost of
Living Council in establishing wages and prices. Grantee shall report
any violations of such regulation and standards to the Grantor and the
local Internal Revenue Service field office.

19\. Include in all contracts in excess of \$100,000 a provision for
compliance with all applicable standards, orders, or regulations issued
pursuant to the Clear Air Act of 1970. Violations shall be reported to
the Grantor and the Regional Office of the Environmental Protection
Agency.

20\. Upon any default under its representations or agreements set forth
in this instrument, Grantee, at the option and the demand of Grantor,
will, to the extent legally permissible, repay to

RD Instruction 1948-B

Exhibit B

Page 7

Grantor forthwith the original principal amount of the grant stated
hereinabove, with interest at the rate of five percent per annum from
the date of the default. The provisions of this grant Agreement may be
enforced by Grantor at its option and without regard to prior waivers by
it of previous defaults of Grantee, by judicial proceedings to require
specific performance of the terms of this Grant Agreement or by such
other proceedings in law or equity, in either Federal or State courts,
as may be deemed necessary by Grantor to assure compliance with the
provisions of this Grant Agreement and the laws and regulations under
which this grant is made.

21\. That no member of Congress shall be admitted to any share or part
of this grant or any benefit that may arise therefrom; but this
provision shall not be construed to bar as a contractor under the grant
a publicly held corporation whose ownership might include a member of
Congress.

22\. That all non-confidential information resulting from its activities
shall be made available to the general public on an equal basis.

23\. That the purpose and scope of work for which this grant is made
shall not duplicate programs for which monies have been received, are
committed, or are applied for from other sources, public and private.

24\. That Grantee shall relinquish any and all copyrights and/or
privileges to the materials developed under this grant, such material
being the sole property of the Federal Government. In the event anything
developed under this grant is published in whole or in part, the
material shall contain notice and be identified by language to the
following effect: \"The material is the result of tax-supported research
and as such is not copyrightable. It may be freely reprinted with the
customary crediting of the source.\"

25\. That the Grantee shall abide by the policies promulgated in OMB
Circular A-102, Attachment O, which provides standards for use by
Grantees in establishing procedures for the procurement of supplies,
equipment, and other services with Federal grant funds.

(06-14-79) SPECIAL PN

RD Instruction 1948-B

Exhibit B

Page 8

26\. To the following termination provisions:

\(a\) Termination for cause: The Grantor agency may terminate any grant
in whole, or in part, at any time before the date of completion,
whenever it is determined that the Grantee has failed to comply with the
conditions of the grant. The Grantor agency shall promptly notify the
Grantee in writing of the determination and the reasons for the
termination, together with the effective date.

\(b\) Termination for convenience. The Grantor agency or Grantee may
terminate grants in whole, or in part, when both parties agree that the
continuation of the project would not produce beneficial results
commensurate with the further expenditure of funds. The two parties
shall agree upon the termination conditions, including the effective
date and, in the case of partial terminations, the portion to be
terminated. The Grantee shall not incur new obligations for the
terminated portion after the effective date, and shall cancel as many
outstanding obligations as possible. The Grantor agency shall allow full
credit to the Grantee for the Federal share of the noncancelable
obligations, properly incurred by the Grantee prior to termination.

Grantor agrees that it will:

1\. Assist Grantee, within available appropriations, with such technical
assistance as Grantor deems appropriate in planning the project and
coordinating the plan with local official comprehensive plans and with
any State or area plans for the area in which the project is located.

2\. In its sole discretion, Grantor may at any time give any consent,
deferment, subordination, release, satisfaction, or termination of any
or all of Grantee\'s grant obligations, with or without valuable
consideration, upon such terms and conditions as Grantor may determine
to be (a) advisable to further the purposes of the grant or to protect
Grantor\'s financial interest therein, and (b) consistent with both the
statutory purposes of the grant and the limitations of the statutory
authority under which it is made.

RD Instruction 1948-B

Exhibit B

Page 9

Grantee on the date first above written has caused this agreement to be
executed by its duly authorized
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
and attested and its corporate seal affixed by its duly authorized
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

Grantee

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

Attest

(Seal) By \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

By \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Title)

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

(Title) Grantor

UNITED STATES OF AMERICA

RURAL DEVELOPMENT

By \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

(Title)

## o0o

(06-14-79) SPECIAL PN