[Federal Register Volume 88, Number 204 (Tuesday, October 24, 2023)]
[Proposed Rules]
[Pages 72974-72985]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23477]


=======================================================================
-----------------------------------------------------------------------

GENERAL SERVICES ADMINISTRATION

41 CFR Part 102-83

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


Federal Management Regulation; Designation of Authority and 
Sustainable Siting

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

ACTION: Proposed rule.

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

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

DATES: Interested parties should submit comments in writing on or 
before December 26, 2023 to be considered in the formulation of the 
final rule.

ADDRESSES: Submit comments in response to FMR Case 2023-102-1 to 
Regulations.gov at http://www.regulations.gov via the Federal 
eRulemaking portal by searching for ``FMR Case 2023-102-1.'' Select the 
link ``Comment Now'' that corresponds with ``FMR Case 2023-102-1.'' 
Follow the instructions provided at the ``Comment Now'' screen. Please 
include your name, company name (if any), and ``FMR Case 2023-102-1'' 
on your attached document. If your comment cannot be submitted using 
https://www.regulations.gov, call or email the points of contact in the 
FOR FURTHER INFORMATION CONTACT section of this document for 
alternative instructions.
    Instructions: Please submit comments only and cite FMR Case 2023-
102-1 in all correspondence related to this case. Comments received 
generally will be posted without change to http://www.regulations.gov, 
including any personal or business confidential information, or both, 
provided. To confirm receipt of your comment(s), please check 
www.regulations.gov approximately two-to-three days after submission to 
verify posting.

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

SUPPLEMENTARY INFORMATION: 

I. Background

    The Administrator of General Services (Administrator) is authorized 
to acquire

[[Page 72975]]

real estate and interests in real estate to accommodate the space needs 
of Federal agencies. In particular, these authorities are codified at 
40 U.S.C. 301 note (specifically, the 1950 Reorganization Plan No. 18), 
113(d), 581(c)(1), 585, 3304, and 28 U.S.C. 462(f). In addition, 40 
U.S.C. 584 requires the Administrator to assign space to executive 
agencies in accordance with policies and directives the President 
prescribes under 40 U.S.C. 121(a), after consultation with the affected 
agency, and based on a determination by the Administrator that the 
assignment or reassignment is advantageous to the Government in terms 
of economy, efficiency, or national security.
    There are several other statutory authorities that underlie Federal 
site location policy. The Rural Development Act of 1972, as amended (7 
U.S.C. 2204b-1) (RDA), requires executive agencies to give first 
priority to locating in rural areas. The Federal Urban Land Use Act of 
1949, as amended (40 U.S.C. 901-905), requires GSA and other Federal 
agencies to consult with the unit of general local government 
exercising zoning and land use jurisdiction so that Federal urban land 
acquisitions and uses are developed in accordance with local zoning, 
land use practices and planning and development objectives to the 
greatest extent practicable. The National Historic Preservation Act of 
1966, as amended (54 U.S.C. 300101 et seq.) (NHPA), encourages the 
preservation and utilization of all usable elements of the Nation's 
historic built environment. The Competition in Contracting Act of 1984, 
as amended (41 U.S.C. 3301 et seq.)(CICA), requires executive agencies 
to consider whether the location decision or delineated area will 
provide for adequate competition when acquiring leased space. Finally, 
40 U.S.C. 121(c) authorizes the Administrator of General Services to 
issue regulations that the Administrator considers necessary to carry 
out the Administrator's functions under, as relevant here, subtitle I 
of chapter 40 of the United States Code. Thus, this rule implements the 
requirements of the statutes described above and establishes factors to 
be considered in the pre-procurement or acquisition process for Federal 
agency location decisions.
    This rule updates the existing part 102-83 by incorporating new 
terminology, but continues to implement the underlying principles for 
location decisions that have been in existence for almost 50 years. 
These principles were first incorporated in 41 CFR part 101-17, 
Assignment and Utilization of Space (45 FR 37200-37206, June 2, 1980), 
and continue to be the foundation for the factors elaborated on today. 
The procedures for location decisions were eventually given a separate 
part in the FMR in 2002, when 41 CFR part 102-83, Location of Space, 
was issued. This part was last revised and published in the Federal 
Register on November 8, 2005 (70 FR 67857-67860).
    The rule continues to be guided by the longstanding Executive Order 
(E.O.) 12072, ``Federal Space Management,'' which prescribes policies 
and directives for the planning, acquisition, utilization, and 
management of Federal space facilities in accordance with 40 U.S.C. 
121(a) (43 FR 36869, August 18, 1978). E.O. 12072 requires that 
``serious consideration'' be given ``to the impact a site selection 
will have on improving the social, economic, environmental, and 
cultural conditions of the communities in the urban area.''
    In addition, in accordance with the NHPA and consistent with E.O. 
12072, E.O. 13006, ``Locating Federal Facilities on Historic Properties 
in Our Nation's Central Cities'' (80 FR 15871, May 24, 1996), requires 
Federal agencies to give first consideration to historic properties 
within historic districts. If no such property is suitable, then 
Federal agencies must consider other developed or undeveloped sites 
within historic districts. If no suitable site exists within historic 
districts, Federal agencies must then consider historic properties 
outside of historic districts.
    Other E.O.s and more recent administration policies further inform 
this rule by providing new terminology to help understand and address 
what it means to consider the impact of social, economic, 
environmental, and cultural conditions. For example, E.O 
11988,''Floodplain Management'' (42 FR 26951, May 24, 1977), as amended 
by E.O 13690, ``Establishing a Flood Risk Management Standard and a 
Process for Further Soliciting and Considering Stakeholder Input'' (80 
FR 6425, Jan. 30, 2015), and E.O. 11990, ``Wetlands Protection'' (42 FR 
26961, May 24, 1977), direct agencies to avoid locating in a floodplain 
and disturbing wetlands. E.O. 14057, ``Catalyzing Clean Energy 
Industries and Jobs Through Federal Sustainability'' (86 FR 70935, 
December 8, 2021), its accompanying Implementing Instructions, dated 
August 31, 2022, and the associated OMB, White House Council on 
Environmental Quality and National Climate Policy Office memorandum (M-
22-06, 12/8/2021) direct Federal agencies to promote sustainable 
locations for Federal facilities and strengthen the vitality and 
livability of the communities in which Federal facilities are located. 
These directives charge agencies with advancing sustainable land use 
that promotes the conservation of natural resources, reduced greenhouse 
gas (GHG) emissions and increased resilience to the impacts of climate 
change; efficient use of local infrastructure; expanded public 
transportation use and access; equitable development that promotes 
environmental justice and economic opportunity for disadvantaged 
communities; and coordination and alignment with the development plans 
of Tribal, State, and local or regional governments that advance these 
and related goals. Note that while E.O. 12072 and E.O. 13006 only 
address urban areas, E.O. 14057 applies many of the same goals to both 
urban and rural areas.
    E.O. 14008, ``Tackling the Climate Crisis at Home and Abroad'' (86 
FR 7619, January 27, 2021), directs Federal agencies to employ a 
Government-wide approach across a wide range of activities and goals 
related to tackling the climate change crisis. Most relevant to this 
part, it directs agencies to reduce climate pollution and increase 
resilience to the impacts of climate change, and seek environmental 
justice and spur economic opportunity for disadvantaged communities 
that have been historically marginalized and overburdened by pollution 
and underinvestment in housing, transportation, water and wastewater 
infrastructure, and health care.
    E.O. 14091, ``Further Advancing Racial Equity and Support for 
Underserved Communities Through the Federal Government'' (88 FR 10825, 
February 16, 2023), directs Federal agencies to advance equity for all 
communities, especially those populations that historically have 
suffered from underinvestment and inequality, discrimination and 
persistent poverty, and to give equitable treatment to all individuals 
in a consistent and systematic manner. The order further promotes 
efficiency by directing Federal agencies, when planning for federally 
owned and leased facilities, to consider locations near existing 
employment centers and public transit so that a broad range of the 
region's workforce and population may access the jobs and services at 
those facilities. This enables the agencies for which GSA provides 
space to more readily carry out their missions. Where the Federal 
development may spur displacement of current community populations, the 
E.O. instructs Federal agencies to engage further with those

[[Page 72976]]

communities and the relevant regional and local officials to address 
displacement risks.
    E.O. 14096, ``Revitalizing Our Nation's Commitment to Environmental 
Justice for All'' (88 FR 25251, April 21, 2023), builds on the E.O.s 
described above to reinforce agency use of data analysis in identifying 
communities suffering environmental injustice, including related to 
climate change and cumulative impacts, and targeting mitigation or harm 
avoidance through Federal actions. GSA and other Federal agencies can 
use various data sets and tools, such as the Climate and Economic 
Justice Screening Tool \1\ (CEJST), to identify if proposed locations 
for federally owned and leased facilities are in geographically defined 
disadvantaged communities. The tool has an interactive map and uses 
datasets that are indicators of burdens in eight categories: climate 
change, energy, health, housing, legacy pollution, transportation, 
water and wastewater, and workforce development. The tool uses this 
information to identify communities that are experiencing these 
burdens. These are the communities that are disadvantaged because they 
are overburdened and underserved. The order also re-emphasizes 
consultation and engagement with members of affected communities that 
allow meaningful participation for those communities in agency 
decision-making, including individuals with limited English proficiency 
and individuals with disabilities. This is in keeping with the 
requirements of the Federal Urban Land Use Act.
---------------------------------------------------------------------------

    \1\ The CEJST tool is available at https://screeningtool.geoplatform.gov/en/.
---------------------------------------------------------------------------

    As mentioned above, the principles that underlie this rule have 
been in existence for decades and it is well established that GSA has 
broad discretion regarding the substance of this regulation because it 
involves managerial and economic choices that are dependent on GSA's 
special expertise in this area. Moreover, when a project subject to 40 
U.S.C. 3307 is contemplated, as part of the appropriation process, GSA 
provides the Committee on Environment and Public Works of the Senate 
and the Committee on Transportation and Infrastructure of the House of 
Representatives notice of the potential location of the project and a 
comprehensive plan that demonstrates that the project will enhance the 
architectural, historical, social, cultural, and economic environment 
of the locality. Thus, by adopting resolutions approving the 
appropriation of the funds for the proposed project, there is a 
presumption of congressional approval of the delineated area and the 
process completed by which either GSA or the agencies operating under 
GSA's authority, or both, establish the location decision. The 
congressional approval of the location decision is further evidenced by 
a provision that Congress routinely includes in GSA's annual 
appropriations act (See, for example, section 525 of title V of 
division E of section 2 of the Consolidated Appropriations Act, 2023, 
Pub. L. 117-328, 136 Stat. 4459, 4687). That provision requires the 
Administrator to ensure that the delineated area of a prospectus-level 
lease procurement is identical to the delineated area included in the 
approved prospectus and, if the Administrator determines that the 
delineated area of the procurement should not be identical to the 
delineated area included in the prospectus, the Administrator must 
provide an explanatory statement to GSA's authorizing and 
appropriations committees.
    For non-prospectus projects, GSA exercises its discretion in 
accordance with the principles that underlie this rule.
    It is important to note that these proposed rule changes work in 
concert with, and not in lieu of, agency mission and physical security 
needs, CICA, cost considerations, consolidation and reductions in 
square footage, prioritizing federally owned space, and other 
procurement policies. In accordance with the statutes and policies 
described above, the optimal Federal location decision is the one that 
meets Federal agency mission needs, at an appropriate cost to 
taxpayers, while achieving the necessary level of security and 
leveraging Federal development in support of other Federal and local 
goals.
    This proposed rule will revise in its entirety 41 CFR part 102-83, 
Location of Space. Federal agencies operating under or subject to the 
real property authorities of the Administrator of General Services must 
comply with the provisions of the FMR that cover real property (41 CFR 
parts 102-71 through 102-86).

II. Major Changes

    The following updates and clarification changes are proposed for 
part 102-83:

<bullet> Social, Economic, Environmental, and Cultural Factors in 
Location Decisions

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

<bullet> Central Cities to Principal Cities

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

<bullet> Metropolitan Areas to Core-Based Statistical Areas

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

<bullet> Urban/Rural Definitions

    The definitions for ``urban area'' and ``rural area'' in the 
existing regulations are difficult to interpret because they draw on 
two different sources, and these definitions are not necessarily 
mutually exclusive from one another. The current part 102-83 has a 
definition for urban that relies on the boundaries of MAs defined by 
OMB.
    The current definition for rural area comes not from the RDA, but 
rather from the Consolidated Farmers Home Administration Act of 1961 
(CHSA), as amended by the Farm Security and Rural Investment Act of 
2002, which identifies a rural area for general purposes of CSHA as any 
area except a city or town with a population greater than 50,000 people 
or adjacent urbanized areas. The original definition of rural area 
applicable to the RDA was stricken from the statute and, subsequently, 
GSA adopted the CHSA definition. The circularity of these current 
definitions, however, makes the boundaries of urban and rural difficult 
to interpret. Among the difficulties are the fact that the boundaries 
established by the definitions do not relate to

[[Page 72977]]

jurisdictional boundaries and are measured at the fine grain of census 
blocks, meaning that adjacent parcels within the same jurisdiction may 
be designated one as rural and the other as urban. With urban and rural 
areas immediately across the street from each other, making the case 
that an agency can only meet its need in the parcel designated as urban 
rather than the adjacent parcel designated rural, or vice versa, 
needlessly opens the Federal space action to protest.
    Given that subsequent revisions of the RDA have actually eliminated 
the original definition of rural area, GSA has chosen a definition that 
better meets the needs of the Federal location decision process, and 
this proposed rule simplifies the definition to the boundaries of 
CBSAs, which follow county lines. Those areas contained within the 
boundaries are considered urban, and those outside the boundaries are 
considered rural. As with the current definitions, agency mission need 
remains the primary determinant of whether a Federal agency will seek 
space in an urban or rural area.

<bullet> Considering Real Estate Cost and Efficiency Factors

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

<bullet> Local Consultation Requirements

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

III. Executive Orders 12866, 13563, and 14094

    Executive Order (E.O.) 12866 (Regulatory Planning and Review) 
directs agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). E.O. 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. E.O. 14094 (Modernizing Regulatory Review) amends Section 
3(f) of Executive Order 12866 and supplements and reaffirms the 
principles, structures, and definitions governing contemporary 
regulatory review established in E.O. 12866 and E.O. 13563. The Office 
of Management and Budget's, Office of Information and Regulatory 
Affairs (OIRA) has determined that this rule is a significant 
regulatory action and, therefore, it is subject to review under section 
6(b) of E.O. 12866.

IV. Regulatory Flexibility Act

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

V. Regulatory Impact Analysis

    During the first and subsequent years after publication of the 
rule, new construction members and leasing acquisition members (which 
include a combination of Planning Managers, Site Acquisition Staff, 
Program Managers, Lease Contracting Officers, and Lease Project 
Managers) will need to learn about GSA's government-wide plan and 
compliance requirements.
    GSA estimates this cost by multiplying the time required to review 
the regulations and guidance implementing the rule by the estimated 
hourly compensation. GSA calculates the estimated hourly compensation 
using the U.S. Office of Personnel Management's 2023 General Schedule 
(GS) Rest of United States Locality Pay Table and the full fringe 
benefit cost factor of 36.25%.<SUP>2 3 4</SUP>
---------------------------------------------------------------------------

    \2\ General Schedule (opm.gov).
    \3\ OMB Memo M-08-13, dated March 11, 2008.
    \4\ Computing Hourly Rates of Pay Using the 2,087-Hour Divisor 
(opm.gov).
---------------------------------------------------------------------------

    GSA assumes the new construction members and leasing acquisition 
members will, on average, stay consistent in the subsequent years. GSA 
also delegates leasing authority to several agencies, which are 
required to follow GSA's policies. As of July 2023, GSA has 9 active 
agencies using delegated leasing authority. Numbers and assumptions 
apply to delegated leasing agencies as well.
1. Government Costs
a. New Construction
    The Government must educate its new construction members via a 
government-wide plan to heighten their familiarity with the rule. Below 
is a list of training and communication activities related to 
regulatory familiarization and compliance that GSA anticipates will 
occur.
    GSA estimates it will take 5 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $86.12/hour, 20 hours each in 
year 1 to develop new content for planning managers and site 
acquisition staff training. Therefore, GSA estimates the total 
estimated cost for this part of the rule to be $8,612 (= 5 x $86.12 GS-
14 step 5 rate x 20 hours).
    GSA estimates it will take 5 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $86.12/hour, 1 hour each in years 
3, 5, 7, and 9 to update new content for planning managers and site 
acquisition staff training. Therefore, GSA estimates the total annual 
estimated cost for this part of the rule to be $431 (= 5 x $86.12 GS-14 
step 5 rate x 1 hour).
    GSA estimates it will take 5 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $86.12/hour, 1.5 hours each in 
years 1,

[[Page 72978]]

3, 5, 7, and 9 to deliver new training content to planning managers and 
site acquisition staff. Therefore, GSA estimates the total annual 
estimated cost for this part of the rule to be $646 (= 5 x $86.12 GS-14 
step 5 rate x 1.5 hours).
    GSA estimates it will take 103 GSA planning managers and site 
acquisition staff on average, with a GS-13 step 5 with an average 
hourly rate of $72.88/hour, 1.5 hours each in years 1, 3, 5, 7, and 9 
to receive new training content. Therefore, GSA estimates the total 
annual estimated cost for this part of the rule to be $11,259 (= 103 x 
$72.88 GS-13 step 5 rate x 1.5 hours).
    GSA estimates it will take 5 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $86.12/hour, 4 hours each in year 
1 to develop new content for training for client agencies. Therefore, 
GSA estimates the total estimated cost for this part of the rule to be 
$1,722 (= 5 x $86.12 GS-14 step 5 rate x 4 hours).
    GSA estimates it will take 5 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $86.12/hour, 1 hour each in years 
3, 5, 7, and 9 to develop new content for training for client agencies. 
Therefore, GSA estimates the total annual estimated cost for this part 
of the rule to be $431 (= 5 x $86.12 GS-14 step 5 rate x 1 hour).
    GSA estimates it will take 5 GSA Central Office program managers on 
average, with a GS-14 step 5 with an average hourly rate of $86.12/
hour, 1.5 hours each in years 1, 3, 5, 7, and 9 to provide training to 
client agencies. Therefore, GSA estimates the total annual estimated 
cost for this part of the rule to be $646 (= 5 x $86.12 GS-14 step 5 
rate x 1.5 hours).
    GSA estimates it will take 400 client agency employees on average, 
with a GS-13 step 5 with an average hourly rate of $72.88/hour, 1.5 
hours each in years 1, 3, 5, 7, and 9 to receive training. Therefore, 
GSA estimates the total annual estimated cost for this part of the rule 
to be $43,726 (= 400 x $72.88 GS-13 step 5 rate x 1.5 hours).
    GSA estimates it will take 11 GSA regional office employees on 
average, with a GS-13 step 5 with an average hourly rate of $72.88/
hour, 1 hour each in years 1, 3, 5, 7, and 9 to provide additional 
communications from GSA regional offices to client agency regional 
offices on the new training content. Therefore, GSA estimates the total 
annual estimated cost for this part of the rule to be $802 (= 11 x 
$72.88 GS-13 step 5 rate x 1 hour).
    GSA estimates it will take 400 client agency regional office 
employees on average, with a GS-13 step 5 with an average hourly rate 
of $72.88/hour, 0.5 hours each in years 1, 3, 5, 7, and 9 to review the 
GSA regional office communications on the new training content. 
Therefore, GSA estimates the total annual estimated cost for this part 
of the rule to be $14,575 (= 400 x $72.88 GS-13 step 5 rate x 0.5 
hours).
    GSA estimates it will take 2 GSA project managers on average, with 
a GS-13 step 5 with an average hourly rate of $72.88/hour, 2 hours each 
in years 1, 3, 5, 7, and 9 to share GSA site selection analysis 
information with community organizations. Therefore, GSA estimates the 
total annual estimated cost for this part of the rule to be $292 (= 2 x 
$72.88 GS-13 step 5 rate x 2 hours).
b. Leased Buildings
    The Government must educate its leasing acquisition members via a 
government-wide plan to heighten their familiarity with the rule. Below 
is a list of training and communication activities related to 
regulatory familiarization and compliance that GSA anticipates will 
occur.
    GSA estimates it will take 3 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $86.12/hour, 5 hours each in year 
1 to develop new contract language relating to location and 
preferences. Therefore, GSA estimates the total estimated cost for this 
part of the rule to be $1,292 (= 3 x $86.12 GS-14 step 5 rate x 5 
hours).
    GSA estimates it will take 3 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $86.12/hour, 1 hour each in years 
2 and 3 to develop new contract language relating to location and 
preferences. Therefore, GSA estimates the total annual estimated cost 
for this part of the rule to be $258 (= 3 x $86.12 GS-14 step 5 rate x 
1 hour).
    GSA estimates it will take 1 GSA employee on average, with an SES 
Level 3 with an average hourly rate of $127.31/hour, 2 hours in year 1 
to develop new contract language relating to location and preferences. 
Therefore, GSA estimates the total estimated cost for this part of the 
rule to be $255 (= 1 x $127.31 SES Level 3 rate x 2 hours).
    GSA estimates it will take 1 GSA employee on average, with an SES 
Level 3 with an average hourly rate of $127.31/hour, 1 hour in years 2 
and 3 to develop new contract language relating to location and 
preferences. Therefore, GSA estimates the total annual estimated cost 
for this part of the rule to be $127 (= 1 x $127.31 SES Level 3 rate x 
1 hour).
    GSA estimates it will take 3 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $86.12/hour, 5 hours each in year 
1 to update existing locational policy guidance. Therefore, GSA 
estimates the total estimated cost for this part of the rule to be 
$1,292 (= 3 x $86.12 GS-14 step 5 rate x 5 hours).
    GSA estimates it will take 3 GSA employees on average, with a GS-14 
step 5 with an average hourly rate of $86.12/hour, 1 hour each in years 
2 and 3 to update existing locational policy guidance. Therefore, GSA 
estimates the total annual estimated cost for this part of the rule to 
be $258 (= 3 x $86.12 GS-14 step 5 rate x 1 hour).
    GSA estimates it will take 1 GSA employee on average, with an SES 
Level 3 with an average hourly rate of $127.31/hour, 2 hours in year 1 
to update existing locational policy guidance. Therefore, GSA estimates 
the total estimated cost for this part of the rule to be $255 (= 1 x 
$127.31 SES Level 3 rate x 2 hours).
    GSA estimates it will take 1 GSA employee on average, with an SES 
Level 3 with an average hourly rate of $127.31/hour, 1 hour in years 2 
and 3 to update existing locational policy guidance. Therefore, GSA 
estimates the total annual estimated cost for this part of the rule to 
be $127 (= 1 x $127.31 SES Level 3 rate x 1 hour).
    GSA estimates it will take 1 GSA employee on average, with a GS-13 
step 5 with an average hourly rate of $72.88/hour, 1 hour in year 1 to 
update training for Lease Contracting Officers and Lease Project 
Managers. Therefore, GSA estimates the total estimated cost for this 
part of the rule to be $73 (= 1 x $72.88 GS-13 step 5 rate x 1 hour).
    GSA estimates it will take 1 GSA employee on average, with a GS-13 
step 5 with an average hourly rate of $72.88/hour, 1 hour in year 1 to 
deliver training to Lease Contracting Officers and Lease Project 
Managers. Therefore, GSA estimates the total estimated cost for this 
part of the rule to be $73 (= 1 x $72.88 GS-15 step 5 rate x 1 hour).
    GSA estimates it will take 650 GSA Lease Contracting Officers and 
Lease Project Managers on average, with a GS-12 step 5 with an average 
hourly rate of $61.29/hour, 1 hour each in year 1 to receive training. 
Therefore, GSA estimates the total estimated cost for this part of the 
rule to be $39,836 (= 650 x $61.29 GS-12 step 5 rate x 1 hour).
    GSA estimates it will take 650 GSA Lease Contracting Officers and 
Lease Project Managers on average, with a GS-12 step 5 with an average 
hourly rate of $61.29/hour, 0.5 hours each in years 3, 5, 7, and 9 to 
receive training. Therefore, GSA estimates the total annual estimated 
cost for this part of the rule

[[Page 72979]]

to be $19,918 (= 650 x $61.29 GS-12 step 5 rate x 0.5 hours).
    GSA estimates it will take 500 Lease Contracting Officers and Lease 
Project Managers from delegated leasing agencies \5\ on average, with a 
GS-12 step 5 with an average hourly rate of $61.29/hour, 1 hour each in 
year 1 to receive GSA training. Therefore, GSA estimates the total 
estimated cost for this part of the rule to be $30,643 (= 500 x $61.29 
GS-12 step 5 rate x 1 hour).
---------------------------------------------------------------------------

    \5\ The GSA Office of Leasing provided this number as an 
averaged total across delegated leasing agencies by surveying their 
internal database.
---------------------------------------------------------------------------

    GSA estimates it will take 500 Lease Contracting Officers and Lease 
Project Managers from delegated leasing agencies on average, with a GS-
12 step 5 with an average hourly rate of $61.29/hour, 0.5 hours each in 
years 3, 5, 7, and 9 to receive GSA training. Therefore, GSA estimates 
the total annual estimated cost for this part of the rule to be $15,322 
(= 500 x $61.29 GS-12 step 5 rate x 0.5 hours).
    GSA estimates it will take 9 employees from delegated leasing 
agencies on average, with a GS-13 step 5 with an average hourly rate of 
$72.88/hour, 1 hour each in year 1 to update delegated leasing agency 
training for Lease Contracting Officers and Lease Project Managers. 
Therefore, GSA estimates the total estimated cost for this part of the 
rule to be $656 (= 9 x $72.88 GS-13 step 5 rate x 1 hour).
    GSA estimates it will take 9 employees from delegated leasing 
agencies on average, with a GS-13 step 5 with an average hourly rate of 
$72.88/hour, 1 hour each in year 1 to deliver training to Lease 
Contracting Officers and Lease Project Managers. Therefore, GSA 
estimates the total estimated cost for this part of the rule to be $656 
(= 9 x $72.88 GS-13 step 5 rate x 1 hour).
    GSA estimates it will take 500 Lease Contracting Officers and Lease 
Project Managers from delegated leasing agencies on average, with a GS-
12 step 5 with an average hourly rate of $61.29/hour, 1 hour each in 
year 1 to receive delegated leasing agency training. Therefore, GSA 
estimates the total estimated cost for this part of the rule to be 
$30,643 (= 500 x $61.29 GS-12 step 5 rate x 1 hour).
    GSA estimates it will take 500 Lease Contracting Officers and Lease 
Project Managers from delegated leasing agencies on average, with a GS-
12 step 5 with an average hourly rate of $61.29/hour, 0.5 hours each in 
years 3, 5, 7, and 9 to receive delegated leasing agency training. 
Therefore, GSA estimates the total estimated cost for this part of the 
rule to be $15,322 (= 500 x $61.29 GS-12 step 5 rate x 0.5 hours).
Total Government Costs
    GSA estimates the total estimated Government costs to be $682,967 
for years 1 through 10. A breakdown of total estimated Government costs 
by year is provided in the table below.\6\
---------------------------------------------------------------------------

    \6\ Costs are rounded to the nearest thousand.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                   Year                         1          2          3          4          5          6          7          8          9          10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Part a New Construction...................    $82,000  .........    $73,000  .........    $73,000  .........    $73,000  .........    $73,000  .........
Part b Leased Buildings...................    106,000      1,000     51,000  .........     51,000  .........     51,000  .........     51,000  .........
                                           -------------------------------------------------------------------------------------------------------------
    Total Government Costs................    188,000      1,000    124,000  .........    124,000  .........    124,000  .........    124,000  .........
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. Public Costs
    Public costs associated with this rule include small entities of 
community organizations in areas GSA is considering for new 
construction. GSA assumes for each site selection transaction, the 
agency will engage with 1 small entity which on average will have two 
employees. Those employees would receive, review and share GSA site 
selection analysis information. GSA estimates the average hourly rate 
of $86.12 for the small entity employees as the private sector pay 
equivalent of a GS-14 step 5. GSA estimates it will engage with 1 small 
entity on average with 2 small entity employees on average, with a GS-
14 step 5 with an average hourly rate of $86.12/hour, 4 hours each in 
years 1, 3, 5, 7, and 9 to receive, review and share GSA site selection 
analysis information. Therefore, GSA estimates the total annual 
estimated cost for this part of the rule to be $689 (= 2 x $86.12 GS-14 
step 5 rate x 4 hours).
Total Public Costs
    GSA estimates the total estimated public costs to be $3,445 for 
years 1 through 10. A breakdown of total estimated public costs by year 
is provided in the table below.\7\
---------------------------------------------------------------------------

    \7\ Costs are rounded to the nearest thousand.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                   Year                         1          2          3          4          5          6          7          8          9          10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Public Costs........................     $1,000  .........     $1,000  .........     $1,000  .........     $1,000  .........     $1,000  .........
--------------------------------------------------------------------------------------------------------------------------------------------------------

3. Overall Total Additional Costs
    The overall total additional undiscounted cost of this rule is 
estimated to be $686,412 over a 10-year period. GSA did not identify 
any cost savings based on the impact of the rule. A breakdown of 
overall total additional costs by year is provided in the table 
below.\8\
---------------------------------------------------------------------------

    \8\ Costs are rounded to the nearest thousand.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                   Year                         1          2          3          4          5          6          7          8          9          10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Government Costs....................   $188,000     $1,000   $124,000  .........   $124,000  .........   $124,000  .........   $124,000  .........
Total Public Costs........................      1,000  .........      1,000  .........      1,000  .........      1,000  .........      1,000  .........
                                           -------------------------------------------------------------------------------------------------------------

[[Page 72980]]

 
    Overall Total Additional Costs........    189,000      1,000    125,000  .........    125,000  .........    125,000  .........    125,000  .........
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The following is a summary of the estimated costs calculated for a 
10-year time horizon at a 3- and 7-percent discount rate:

------------------------------------------------------------------------
                                                                 Total
                           Summary                               costs
------------------------------------------------------------------------
Present Value (3 percent)....................................   $601,071
Annualized Costs (3 percent).................................     70,464
Present Value (7 percent)....................................    512,057
Annualized Costs (7 percent).................................     72,905
------------------------------------------------------------------------

VI. Paperwork Reduction Act

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

VII. Small Business Regulatory Enforcement Fairness Act

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

VIII. Severability

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

List of Subjects in 41 CFR Part 102-83

    Federal buildings and facilities, government property management, 
rates and fares.

Krystal J. Brumfield,
Associate Administrator, Office of Government-wide Policy.

    Therefore, GSA proposes to revise 41 CFR part 102-83 to read as 
follows:

PART 102-83--LOCATION OF SPACE

Subpart A--General Provisions

Sec.
102-83.05 What does this part cover?
102-83.10 What are the governing authorities for this part?
102-83.15 Which Federal agencies must comply with these provisions?
102-83.20 How does an agency request a deviation from the provisions 
of this part?
102-83.25 Intentionally Omitted

Subpart B--Location of Space

102-83.30 What basic location of space policy governs a Federal 
agency?
102-83.35 Is there a general hierarchy of consideration that 
agencies must follow in their utilization of space?
102-83.40 What is a delineated area?
102-83.45 What is a Core-Based Statistical Area?
102-83.50 How is a Core-Based Statistical Area defined?
102-83.55 What is a rural area?
102-83.60 What is an urban area?
102-83.65 What is a principal city?
102-83.70 What are centralized community business areas and 
centralized business districts?
102-83.75 What is environmental justice?
102-83.80 What is equitable development?
102-83.85 In addition to Federal agency mission, security, and 
program requirements, what other factors and principles must 
agencies consider when establishing a potential delineated area?
102-83.90 What hierarchy of geographic consideration must agencies 
apply to location decisions for new Federal facilities or leased 
locations?
102-83.95 How must agencies consult with local officials to comply 
with the consultation elements of this part?
102-83.100 What flexibility do Federal agencies have to implement 
this part in high cost areas?
102-83.105 Are Federal agencies required to give preference to 
historic properties when acquiring leased space?
102-83.110 Does GSA provide assistance to Federal agencies by 
consulting with local officials to establish recommended delineated 
areas?
102-83.115 Are Federal agencies required to consider whether the CBA 
or other areas recommended by local officials will provide for 
adequate competition when acquiring leased space?
102-83.120 What information and data must agencies provide to the 
Administrator of General Services, or other acquiring agency head, 
to comply with the provisions of this part?
102-83.125 Who must approve the final delineated area?
102-83.130 When is written justification for a delineated area in 
urban areas required?
102-83.135 How will GSA negotiate changes to the final delineated 
area with requesting agencies?
102-83.140 Where may Federal agencies appeal GSA decisions and 
recommendations concerning the delineated area?
102-83.145 Do these regulations apply in GSA's National Capital 
Region?

Subpart C--Severability

102-83.150 What portions of this part are severable?

    Authority:  40 U.S.C. 113(d), 121(c), 581(c)(1), 584, 585, and 
901-905; section 1 of Reorganization Plan No. 18 of 1950, 15 FR 
3177, 64 Stat. 1270 (40 U.S.C. 301 note); 28 U.S.C. 462(f); 7 U.S.C. 
2204b; 41 U.S.C. 3301 et seq.; 54 U.S.C. 300101 et seq.; E.O.s 12072 
and 13006.

Subpart A--General Provisions


Sec.  102-83.05  What does this part cover?

    This part covers GSA's considerations when making location 
decisions for Federal agencies in both federally owned and leased space 
and the considerations of those Federal agencies operating under or 
subject to the real property authorities of the

[[Page 72981]]

Administrator of General Services (Administrator), including those 
using delegated real property authority, when making their own location 
decisions. It directs practices that foster the policies and programs 
of the Federal Government and improve the management, efficiency and 
effectiveness of Government activities.


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

    The authorities for this regulation are--
    (a) Rural Development Act of 1972, as amended (7 U.S.C. 2204b-1), 
requires executive agencies to give first priority to locating in rural 
areas;
    (b) Federal Urban Land Use Act of 1949, as amended (40 U.S.C. 901-
905), requires GSA and other Federal agencies to consult with the unit 
of general local government exercising zoning and land use 
jurisdiction. To the greatest extent possible, GSA must coordinate 
Federal projects with local planning agencies to be in accordance with 
zoning, land use practices and planning and development objectives;
    (c) Competition in Contracting Act of 1984, as amended, (41 U.S.C. 
3301 et seq.) (CICA), requires executive agencies to consider whether 
the delineated area will provide for adequate competition when 
acquiring leased space; and
    (d) 40 U.S.C. 113(d) authorizes the Administrator to provide space 
to the Senate, the House of Representatives, and the Architect of the 
Capitol upon their request.
    (e) 40 U.S.C. 121(c) authorizes the Administrator to issue 
regulations that the Administrator considers necessary to carry out the 
Administrator's functions under subtitle I of title 40 of the United 
States Code.
    (f) National Historic Preservation Act of 1966, as amended, 54 
U.S.C. 300101 et seq., encourages, among other things, the public and 
private preservation and utilization of all usable elements of the 
Nation's historic built environment.
    (g) 40 U.S.C. 584 authorizes the Administrator to assign and 
reassign space for an executive agency in any Federal Government-owned 
or leased building.
    (h) 40 U.S.C. 581(c)(1) authorizes the Administrator to acquire, by 
purchase, condemnation or otherwise, real estate and interests in real 
estate.
    (i) 40 U.S.C. 585 authorizes the Administrator to enter into a 
lease agreement for the accommodation of a Federal agency in a building 
or improvement that is in existence or being erected by the lessor to 
accommodate the Federal agency, and to assign and reassign the leased 
space to a Federal agency.
    (j) Section 1 of Reorganization Plan No. 18 of 1950, 15 FR 3177, 64 
Stat. 1270 (40 U.S.C. 301 note), which, with certain exceptions, 
transferred all function with respect to acquiring space in buildings 
by lease, and all functions with respect to assigning and reassigning 
space in buildings for use by agencies (including both space acquired 
by lease and space in Government-owned buildings) to the Administrator.
    (k) 28 U.S.C. 462(f) authorizes the Administrator to provide space 
to the judicial branch upon request from the Director of the 
Administrative Office of the United States Court.
    (l) E.O. 12072 encourages Federal agencies to locate and use real 
estate in ways that serve to strengthen the Nation's cities and make 
them attractive places to live and work, conserve existing urban 
resources and encourage the development and redevelopment of cities. 
Toward this end, the E.O. requires executive agencies to give first 
consideration to centralized community business areas and other areas 
recommended by local officials as possible locations for Federal 
facilities when locating in urban areas (43 FR 36869, August 18, 1978).
    (m) E.O. 13006 requires that, when operationally appropriate and 
economically prudent, and subject to the RDA and E.O. 12072, when 
locating Federal facilities, Federal agencies must give first 
consideration to historic properties within historic districts. If no 
such property is suitable, then Federal agencies must consider other 
developed or undeveloped sites within historic districts. Federal 
agencies must then consider historic properties outside of historic 
districts, if no suitable site within a district exists (80 FR 15871, 
May 24, 1996).


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

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


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

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


Sec.  102-83.25  Intentionally Omitted.

Subpart B--Location of Space


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

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


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

    Yes. In accordance with part 79 of the FMR (41 CFR 102-79), 
Assignment and Utilization of Space, Federal agencies must follow the 
hierarchy of consideration, giving first priority to Government-owned 
and Government-leased buildings. When no existing Government-owned or 
Government-leased space meets the space need, Federal agencies must 
follow the hierarchy of geographic consideration in Sec.  102-83.95 
when obtaining new space as identified in this subpart.


Sec.  102-83.40  What is a delineated area?

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


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

    A Core-Based Statistical Area (CBSA) is a geographic area 
established by OMB. Current CBSAs are listed in OMB Bulletin No. 20-01, 
``Revised Delineations of Metropolitan Statistical Areas, Micropolitan 
Statistical Areas, and Combined Statistical Areas, and Guidance on Uses 
of the Delineations of

[[Page 72982]]

These Areas,'' dated March 6, 2020, or succeeding OMB Bulletin. In this 
part, the CBSA designation is used to distinguish between urban and 
rural areas, which have different directives associated with them.


Sec.  102-83.50  How is a CBSA defined?

    A CBSA is defined by OMB using U.S. Census data as an area that has 
at its core an urban center and includes the adjacent areas that are 
socioeconomically tied to the urban center by commuting patterns 
pursuant to the 2010 Standards for Delineating Metropolitan and 
Micropolitan Statistical Areas (75 FR 37246, June 28, 2010), or 
succeeding OMB publication.


Sec.  102-83.55  What is a rural area?

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


Sec.  102-83.60  What is an urban area?

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


Sec.  102-83.65  What is a principal city?

    (a) A principal city is an incorporated place or census designated 
place within a CBSA that meets certain employment and population-based 
criteria. Major metropolitan areas typically have several principal 
cities.
    (b) The principal city designation is established by OMB pursuant 
to the 2010 Standards for Delineating Metropolitan and Micropolitan 
Statistical Areas (75 FR 37246, June 28, 2010), or succeeding 
standards. OMB regularly publishes an updated list of Principal Cities 
(OMB Bulletin No. 20-01, and succeeding). In this part, the principal 
city designation is used to help the Federal agency focus local 
consultation.


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

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


Sec.  102-83.75  What is environmental justice?

    Environmental justice is the just treatment and meaningful 
involvement of all people, regardless of income, race, color, national 
origin, Tribal affiliation, or disability, in agency decision-making 
and other Federal activities that affect human health and the 
environment so that people are fully protected from disproportionate 
and adverse human health and environmental effects (including risks) 
and hazards; and have equitable access to a healthy, sustainable, and 
resilient environment. Advancing environmental justice further requires 
Federal agencies to provide opportunities for meaningful engagement of 
the public, including communities with environmental justice concerns 
who are potentially affected by Federal activities. When planning for 
location decisions, which is the Federal activity for purposes of this 
rule, Federal agencies must be especially mindful of how proposed 
locations would impact communities with environmental justice concerns. 
As appropriate and consistent with applicable law, Federal agencies 
should seek to minimize negative and maximize positive impacts in these 
areas, using available data and meaningful engagement with local 
stakeholders to identify such communities, and identify, analyze, and 
address adverse human health and environmental effects (including 
risks) and hazards of the Federal activity.


Sec.  102-83.80  What is equitable development?

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


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

    (a) In addition to agency mission, security, and program 
requirements, Federal agencies also must give serious consideration to 
the impact a location decision will have on improving the social, 
economic, environmental, and cultural conditions of communities, 
including those that have been historically harmed by environmental 
injustice and inequality, as well as avoiding harm to such communities, 
while at the same time promoting efficient and cost-effective 
Government real estate management. These factors and principles derive 
from the relevant authorities in this part and include the following:
    (1) Cost to the Government, including both upfront real estate 
acquisition as well as long-term operating costs;
    (2) Opportunities to reduce the Federal real estate footprint and 
optimize agency space usage;
    (3) Ability to manage the local Federal real estate portfolio 
strategically to optimize effective operations over the long term; and
    (4) Consideration of the competition requirements under CICA, if 
applicable to the site location decision.
    (b) In addition to agency mission, security and program 
requirements, Federal agencies also must consider a series of factors 
meant to promote Federal investment that supports larger Federal 
program goals and local development objectives. These factors include 
the following:
    (1) Compatibility with State and local economic development 
objectives, such as local and regional comprehensive plans, 
neighborhood scale plans and local plans covering sustainability and 
resilience goals. When planning for location decisions, agencies should 
align, where possible, with local and regional planning goals. Agencies 
should meaningfully engage with local officials and community members 
potentially impacted by a location decision and consider their 
recommendations in light of Federal mission needs and equitability and 
sustainability goals, including where affected populations have 
experienced historic and ongoing harms due to environmental injustice 
and inequality;
    (2) Promoting of environmentally sustainable development, reduced 
greenhouse gas emissions, increased resilience to the impacts of 
climate change, and stewardship of regional natural resources. 
Maximizing the use of existing resources by leveraging investment in 
existing infrastructure; prioritize development of brownfields 
(properties, the expansion, redevelopment, or reuse of which may be 
complicated by the presence or potential presence of a hazardous 
substance, pollutant, or contaminant),

[[Page 72983]]

greyfields (previously developed land that is underutilized) and infill 
development; avoid development in floodplains or impacts to wetlands to 
the extent practicable, and promote the preservation of historic 
resources and other existing buildings. Fostering protection of the 
natural environment by preserving existing ecosystems, avoiding 
development of green space and promoting climate change adaptation 
planning;
    (3) Advancing environmental justice and equitable development;
    (4) Advancing Federal and local historic preservation objectives; 
and
    (5) Seeking location-efficient sites that provide a variety of 
transportation options for employees and the public, while maximizing 
use of existing infrastructure and minimizing employee and visitor 
travel by car. Prioritize central business districts, existing 
employment centers and rural town centers; prioritize locations that 
promote transportation choice, especially walking, biking and public 
transit options; and locate in areas that are accessible by public 
transit, where it exists, to a broad range of the workforce and 
population, such as those seeking services or needing to visit Federal 
space locations.
    (c) The factors listed in paragraphs (a) and (b) of this section 
must be considered when applying the hierarchy of geographic 
consideration in Sec.  102-83.90. The optimal Federal location decision 
is the choice that meets Federal agency mission, security and program 
requirements and is cost effective, while leveraging Federal 
development in support of these other Federal programs policies and 
goals, as well as local development objectives.


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

    (a) Agencies must develop policies and procedures for applying the 
goals of this part in their business practices. These policies and 
procedures must include methods for applying the hierarchy outlined in 
paragraph (b) of this section.
    (b) When making new location decisions, agencies must give 
preference to geographic areas in the following order:
    (1) Agencies must give first priority to locating in a rural area 
in accordance with the Rural Development Act of 1972 (RDA). As with 
other elements of this part, acquiring agencies must develop their own 
policies and procedures for implementing the goals of the RDA. Agencies 
must consider the objectives outlined in Sec.  102-83.85 and use these 
principles and factors to differentiate among potential locations. 
Agencies are encouraged to seek a location that best meets these 
factors or meet multiple factors. If an agency's mission cannot be 
accomplished in a rural area, the agency may locate in an urban area.
    (2) When an agency's mission requires location in an urban area, 
the agency must give priority to the CBA within a principal city of a 
CBSA or other areas as recommended by local officials. Agencies must 
consider the objectives outlined in Sec.  102-83.85 and use these 
principles and factors to differentiate among potential locations. 
Agencies are encouraged to seek a location that best meets these 
factors or meets multiple factors.
    (3) If an agency mission cannot be met within a principal city, or 
where areas, such as existing employment centers, outside the principal 
city offer better opportunities to advance the objectives outlined in 
Sec.  102-83.85, in accordance with their established policies and 
procedures, agencies may proceed to seek space in those areas.
    (4) Once an agency has set a delineated area in a rural or urban 
area, agencies must comply with the requirements for consideration of 
historic properties and districts set forth in Sec.  102-78.60.


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

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


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

    Agencies have flexibility in considering the differing costs among 
principal cities within a single CBSA and in setting delineated areas 
to

[[Page 72984]]

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


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

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


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

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


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

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


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

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


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

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


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

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


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

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


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

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


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

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

[[Page 72985]]

housing of Federal agencies within the National Capital Region.

Subpart C--Severability


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

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

[FR Doc. 2023-23477 Filed 10-23-23; 8:45 am]
BILLING CODE 6820-14-P