5804 Federal Register / Vol. 62, No. 26 / Friday, February 7, 1997 / Notices

include the following: U.S.

Environmental Protection Agency; U.S.

Fish and Wildlife Service; U.S. Forest

Service; U.S. Geological Survey; Natural

Resource Conservation Service; and the

U.S. National Park Service. The

Baltimore District invites potentially

affected Federal, state, and local

agencies, and other organizations and

entities to participate in this study.

7. The DEIS is tentatively scheduled

to be available for public review in the

winter of 1998.

Dr. James F. Johnson,

Chief, Planning Division.

[FR Doc. 97–3047 Filed 2–6–97; 8:45 am]

BILLING CODE 3710–41–M

DEPARTMENT OF ENERGY

Policy and Planning Guidance for

Community Transition Activities

AGENCY: Office of Worker and

Community Transition, Department of

Energy.

ACTION: Notice of interim guidance and

opportunity for public comment.

SUMMARY: The Department of Energy

today publishes for public comment

Interim Guidance for Community

Transition Activities that has been

issued primarily for the benefit of field

organizations and community reuse

organizations responsible for

implementing and administering a

financial assistance program to alleviate

the adverse impact of downsizing

defense nuclear facilities on affected

local economies.

DATES: Written comments (7 copies) are

due on or before April 8, 1997. The

interim guidance is effective March 10,

1997.

ADDRESSES: Comments must be

submitted to: U.S. Department of

Energy, Office of Worker and

Community Transition, WT–1, 1000

Independence Avenue, SW,

Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: Ms.

Deborah Swichkow, U.S. Department of

Energy, 1000 Independence Avenue,

SW, Washington, DC 20585, (202) 586–

0876.

SUPPLEMENTARY INFORMATION:

I. Background

Pursuant to the Atomic Energy Act of

1954 (AEA), the Department of Energy

(DOE) owns defense nuclear facilities in

various locations in the United States

that are operated by management and

operating contractors. As a result of the

end of the Cold War, many of these

facilities are undergoing work force

restructuring that often has a significant

impact on local economies. The Atomic

Energy Act of 1954 contains broad

authority to adopt and carry out

policies, subject to the availability of

appropriations, for downsizing these

facilities and for alleviating the adverse

impacts on affected local communities.

42 U.S.C. 2201.

Section 3161 of the National Defense

Authorization Act for Fiscal Year 1993,

42 U.S.C. 7274h, provides additional

and specific authority for DOE to

provide impact assistance to

communities that are adversely affected

by work force restructuring. Section

3161 further requires DOE to coordinate

the provision of such assistance with

programs carried out by the

Departments of Labor, Commerce, and

Defense. In devising a local impact

assistance program under section 3161,

DOE has chosen to follow the example

of the Department of Defense under the

Defense Economic Adjustment,

Diversification, Conversion, and

Stabilization Act of 1990 (Pub. L. 101–

510) which is referenced in section

3161. Like the Department of Defense,

DOE has developed a financial

assistance program that, for the most

part, consists of awards to broadly

representative, community reuse

organizations (CROs) who either expend

or sub-award the funds for projects to

stimulate the local economy under an

approved Community Transition Plan

developed with public input. CROs may

be governmental or non-governmental

organizations. If a CRO is nongovernmental and applies for financial

assistance, it would have to be

organized under local law and be able

to enter into, and assume the obligations

of a DOE financial assistance agreement.

Although section 3161 does not require

CROs, DOE use of such organizations is

consistent with the Congressional

requirement to coordinate the provision

of local impact assistance, as

appropriate, with the Department of

Defense programs under the Defense

Economic Adjustment, Diversification,

Conversion, and Stabilization Act.

The award and administration of DOE

financial assistance agreements is

subject to generally applicable

regulations set forth at 10 CFR part 600.

The interim guidance in this notice

supplements those regulations and

provides a general decision making

framework to guide the exercise of

discretion by DOE field organizations.

Issuing policy in the form of guidance

allows for greater flexibility to modify

policy if the facts and circumstances

warrant modification.

Various aspects of the interim

guidance appeared previously in DOE’s

August 24, 1994, Report on the

Department of Energy’s Worker and

Community Transition Program.

Today’s notice will clarify the roles and

responsibilities of DOE Headquarters,

DOE field organizations, and CROs. The

interim guidance is subject to revision

in light of public comments received in

response to this notice.

II. Description of Key Provisions

Although this notice contains policies

applicable to funding decisions in DOE

Headquarters, for the most part, it

contains interim guidance to DOE field

organizations on economic development

activities of CROs, approval of CRO

plans to expend funds, evaluation

criteria for funding decisions, CRO

performance measures and reporting.

Much of the interim guidance is selfexplanatory. This document highlights

policy decisions embodied in various

provisions of the interim guidance that

may be of interest to members of the

public. First, the financial assistance is

targeted on communities substantially

impacted by work force restructuring

plans under section 3161 for ‘‘defense

nuclear facilities’’ which are listed in

Appendix B to the interim guidance.

Second, the CROs are intended to be

broadly and fairly representative of local

community interests. To that end, the

interim guidance contains minimum

evaluation criteria at paragraph II.C.3 for

approving CROs that all DOE field

organizations should follow. The

interim guidance also provides for

application of the conflict of interest

avoidance policy in 10 CFR 600.142 to

all subagreements under a financial

assistance agreement including, but not

limited to, subcontracts, subgrants,

loans, etc.

Third, the interim guidance provides

for start-up, planning, administrative,

and project financial assistance, and

indicates the range of amounts of

assistance for each type of activity.

These ranges are based on experience

with pilot activities financed by local

impact assistance grants already

awarded under section 3161. The

evaluation criteria provide for

consideration of cost-sharing offered by

an applicant. However, cost-sharing is

not a requirement because DOE does not

believe Congress intended that

assistance be denied for proposals from

sources who are unable to offer cost

sharing.

Fourth, consistent with DOE’s

experience in this program, the interim

guidance provides for program and

project assistance for sources other than

CROs. These provisions are useful

because some CROs prefer to serve in an

advisory role in the selection of projects
Federal Register / Vol. 62, No. 26 / Friday, February 7, 1997 / Notices 5805

rather than being a direct financial

assistance recipient.

Fifth, the interim guidance refers to a

broad array of programs that have been

funded by past awards and thereby

indicates the range of possibilities for

future awards and sub-awards. Among

the types of programs a CRO could

finance are small business incubators,

venture and risk capital investments,

training seminars, and revolving loans

funds. With respect to such loans, the

interim guidance provides a termination

date of five years from the first award.

A terminal date is desirable to facilitate

closeout under 10 CFR part 600 and to

limit the period for an assistance

agreement to the amount of time

necessary to mitigate the effects of

downsizing on the local economy.

Sixth, the interim guidance provides

for development of performance

measures and periodic reporting under

10 CFR part 600 to assess the

effectiveness of the program (see

Appendix C). While there is some

burden in complying, the burden is

justified by the need to determine that

taxpayer dollars are being expended

effectively to achieve the Congressional

objective of alleviating the impact of

work force restructuring on affected

local communities. DOE anticipates that

the information will be useful in

supporting budget requests, reporting to

Congress, and responding to inquiries, if

any, from Congress’ General Accounting

Organization and DOE’s Inspector

General.

III. Review Under Executive Order

12866

This action has been determined not

to be a ‘‘significant regulatory action’’

under Executive Order 12866,

‘‘Regulatory Planning and Review’’ (58

FR 51735, October 4, 1993).

Accordingly, it was not subject to

review by the Office of Information and

Regulatory Affairs of the Office of

Management and Budget.

IV. Review Under the National

Environmental Policy Act

Pursuant to the Council on

Environmental Quality Regulations (40

CFR parts 1500–1508), DOE has

established guidelines in 10 CFR part

1021 for its compliance with the

provisions of the National

Environmental Policy Act of 1969

(NEPA) (42 U.S.C. 4321, et seq.).

Pursuant to Categorical Exclusion A6 in

Appendix A of Subpart D to 10 CFR part

1021, DOE has determined that this

action is categorically excluded from the

need to prepare an environmental

impact statement or environmental

assessment.

V. Congressional Notification

Pursuant to the Small Business

Regulatory Enforcement Fairness Act of

1996, DOE will send a report regarding

promulgation of this notice to Congress

prior to its effective date. 5 U.S.C. 801.

VI. Opportunity for Public Comment

Interested persons are invited to

submit data, views, or arguments with

respect to the policies set forth in this

notice. Seven (7) copies of written

comments should be submitted to the

address indicated in the ADDRESSES

section of this notice. A copy of the

comments received in response to this

notice will be available for public

inspection in the Department of Energy

Freedom of Information Reading Room,

1E–190, Forrestal Building, 1000

Independence Avenue SW.,

Washington, D.C., 20585, between the

hours of 9 a.m. and 4 p.m., Monday

through Friday, except Federal holidays.

Late-filed comments will be considered

to the extent that time allows. Any

person submitting information which

that person believes to be confidential

and which may be exempt from public

disclosure should submit one complete

copy, as well as an additional copy from

which the information claimed to be

confidential has been deleted. The

Department of Energy reserves the right

to determine the confidential status of

the information or data and to treat it

accordingly. The Department of

Energy’s generally applicable

procedures for handling information

which has been submitted in a

document and may be exempt from

public disclosure are set forth in 10 CFR

1004.11.

Issued in Washington, D.C., on January 17,

1997.

Robert W. DeGrasse, Jr.,

Director, Office of Worker and Community

Transition.

For the reasons stated in the

preamble, the Department of Energy

hereby promulgates the following

interim policy, as set forth below.

Interim Guidance for Community Transition

Activities

Table of Contents

I. Introduction

II. Program Scope

A. General

B. Allowable Uses of Funding

C. Eligibility and Funding Recipients

D. Types of Assistance

1. Start-up Assistance for CROs

2. Planning Assistance for CROs

3. Operational Assistance

4. Community Transition Program and

Project Assistance

III. Roles and Responsibilities

A. The Secretary of Energy

B. The Director, Office of Worker and

Community Transition

C. Department Field Organizations

D. Community Reuse Organizations

IV. Program Planning

A. General

B. Development of the Community

Transition Plan

C. Department Field Organization and

Office Reviews

D. Economic Development Administration

and the Peer Review Board

E. Office of Worker and Community

Transition Review and Decisions

V. Evaluation Criteria for Review of Projects

and Programs

VI. Community Transition Plans

A. Purpose

B. General

C. Community Transition Plan

Components

1. Planning Analysis

2. Stakeholder Involvement

3. Prioritized Projects

VII. Performance Measures

A. Purpose

B. Guidance

C. Model

D. Areas to Address

VIII. Reviews

A. Financial Management Reviews

1. General

2. Purpose

3. Procedures

B. Program Reviews

Appendices

A. Office of Worker and Community

Transition Contacts

B. Listing of Defense Nuclear Facilities

C. Progress Report Format

D. Requirement for Financial Assistance—

10 CFR Part 600

INTERIM GUIDANCE FOR

COMMUNITY TRANSITION

ACTIVITIES

I. Introduction

The end of the Cold War has reduced

the country’s need for national security

activities. As a result, the Department of

Energy’s (the Department) nuclear

weapons production capacity is

decreasing. The Department is

accomplishing this by reconfiguring,

downsizing, and closing many of its

facilities. Since the Department realizes

that these actions may adversely affect

the communities nearby containing a

substantial number of displaced

workers, it will cooperate with the

recognized representative of each

community and execute economic

development initiatives to help offset

those impacts.

Initial program guidance for the

community transition program was first

developed in the spring and summer of

1993, shortly after the formation of the

Department’s Task Force on Worker and

Community Transition. In the

intervening period, the community

transition program has evolved. This

guidance reflects the changes necessary
5806 Federal Register / Vol. 62, No. 26 / Friday, February 7, 1997 / Notices

for the continued progress of the

program. It reflects the work and input

of stakeholders as well as the staff of the

Department’s Office of Worker and

Community Transition (the Office). It

replaces previous guidance on

community transition activities and

should be used while comments are

being collected. The Office appreciates

the assistance and effort of Department

field organizations, site contractors, and

representatives of the affected

communities for their assistance in

developing this guidance.

II. Program Scope

A. General

Pursuant to section 3161 of the

National Defense Authorization Act for

Fiscal Year 1993, the Department’s

community transition program is

designed to minimize the social and

economic impacts of work force

restructuring at defense nuclear

facilities by providing local impact

assistance to affected communities, 42

U.S.C. 7274h(c)(6). Specific assistance

programs are designed by the

communities and the local Department

facilities affected by the downsizing.

Over the past 3 years, the Department

has employed an extensive process of

stakeholder and public involvement to

shape policies concerning worker and

community transition. This process

included national stakeholder meetings

on July 12–13, 1993, on November 16–

17, 1993, on February 3–4, 1994, on

May 25–26, 1994, on November 15–16,

1994, on April 20–21, 1995, on

September 13–15, 1995, and on March

13–15, 1996, as well as specific input

provided by nine community transition

focus groups. It also responds to the

recommendations made by the General

Accounting Office in its December 1995

report to the Secretary of Energy,

‘‘Energy Downsizing: Criteria for

Community Assistance Needed.’’ Impact

assistance is provided by funding

Department field organization-approved

proposals for activities of Community

Reuse Organizations (CRO),

Management and Operating contractors,

and others.

B. Allowable Uses of Funding

1. Funds for community transition

activities may be allocated for approved

programs and projects described in

community transition plans or in field

project requests prepared by Department

facilities for activities funded outside

the community transition plans.

2. In reviewing proposals or

applications, the broadest range of

allowable uses of funds will be

considered. However, because funding

is limited, and because other

appropriations may be seen as the

proper or primary source to fund certain

activities, various activities may only be

approved where exceptional

circumstances would justify the

decision. These include:

a. Activities that could be funded

from work force restructuring funds,

such as employee retraining;

b. Landlord responsibilities normally

funded by the program office with

landlord responsibilities at the site,

including preparing personal property

for disposal; decontamination and

decommissioning of land and facilities;

maintenance (to the extent it is not

passed on to the tenant); environmental

baseline-facility condition reports;

administrative activities such as

appraisals, title searches and

environmental assessments; and

c. Off-site construction, infrastructure,

or other capital improvement projects.

3. If funding for the type of projects

described in Section II.B.2, above, is

being considered, the Department field

organization should make early contact

with the Office to determine whether

the project can be funded by

appropriations and, if so, what

justification will be necessary.

C. Eligibility and Funding Recipients

1. General

Community transition funds will

generally flow through a Department

field organization to the CRO or CROdesignee. For activities funded outside

the community transition plan, funds

may be made available by direct

contract between the Department and

another party, such as the on-site

contractor. Financial assistance to CROs

will be provided in accordance with the

requirements applicable to grants or

cooperative agreements that are in 10

CFR Part 600.

2. Definition of ‘‘Defense Nuclear

Facilities’’

Pursuant to section 3161 of the

National Defense Authorization Act for

Fiscal Year 1993, ‘‘defense nuclear

facilities’’ for the purposes of

community transition assistance include

the following types of facilities under

the control or jurisdiction of the

Secretary of Energy: Atomic energy

defense facilities involving production

or utilization of special nuclear

material; nuclear waste storage or

disposal facilities; testing and assembly

facilities; and atomic weapons research

facilities. Department facilities that have

been determined to be defense nuclear

facilities for the purposes of section

3161 are listed in Appendix B.

3. CRO Selection Criteria

The communities surrounding each

site may be represented by a single CRO.

The selection criteria applied by the

Department field organizations in order

to designate a CRO include, but are not

limited to, the following:

a. The organization should be formed

for the purpose of addressing the

economic impacts in the affected

communities as a result of the changes

in the work force at a defense nuclear

facility.

b. The organization should solicit and

accept participation by a reasonably

representative cross section of public

and private sector interests.

c. The organization should have a

reasonable process for soliciting public

input into formulation of a Community

Transition Plan and any major

amendments to such a Plan.

D. Types of Assistance

1. Start-up Assistance for CROs

a. The Department field organizations

should solicit applications for financial

start-up assistance for CROs in a manner

which provides for the maximum

amount of competition feasible as set

forth in 10 CFR Part 600.

b. This is one-time assistance to

support the initial functions of a CRO

including: Development of a public

participation plan; development of

scopes of work for impact analyses and

a community transition plan; and

development of a proposal for planning

assistance.

c. Funding for start-up assistance

usually does not exceed $100,000 and

may be spent over two fiscal years. It

may be applied for at any time in the

Department budget cycle, based on

knowledge by the Department field

organization that work force reductions

are likely to occur within 18 months.

d. Application for the assistance

should include information about how

area local governments, economic

development organizations, labor, and

other key stakeholders will be involved

with creating the CRO. Award of startup assistance does not commit the

Department to funding future CRO

activities and projects.

2. Planning Assistance for CROs

a. Planning assistance for the CROs is

intended to pay for administrative costs

and planning studies associated with

the development of a Community

Transition Plan.

b. Planning assistance is expected

generally to be in the range of $250,000

to $500,000.

c. A planning assistance application

should include the following elements:
Federal Register / Vol. 62, No. 26 / Friday, February 7, 1997 / Notices 5807

(1) The purpose and need for

community transition.

(2) A description of the CRO,

including its membership, functions,

scope, and decisionmaking procedures.

(3) How the community transition

plan will be developed. Where

appropriate, an analysis of socioeconomic strengths, weaknesses,

opportunities and threats to the

community should be included in the

scope of work for the planning effort.

(4) A program plan for utilization of

the planning assistance funds, including

proposed scope of work and milestones.

(5) Required Federal grant application

forms and financial information, as

specified by the Department field

organization.

(6) A summary of the CRO-approved

public participation plan which

includes discussion of access to

meetings and records, community

involvement, fairness of opportunity for

receipt of program benefits, and

avoidance of conflicts of interest.

(7) A discussion of CRO coordination

with the applicable site, the Site

Specific Advisory Board, and regional

planning and economic development

organizations and activities.

(8) Identification of any nonDepartment resources that will be

utilized in the planning phase of the

program.

(9) Any proposed program or project

activities that are requested and

proposed to be conducted prior to

approval of the community transition

plan together with the justification

required for program and project

assistance (see Sections II.D.4 and

VI.C.3).

(10) Written designation of the CRO

by the responsible Department field

organization.

3. Operational Assistance

a. This is assistance to fund

administrative expenses of the CRO

beyond start-up and planning

assistance.

b. Funding for this activity may vary

based upon the CRO organization and

the degree to which the CRO is

supported by other funding sources. It is

suggested that requests normally be part

of the Community Transition Plan and

provide the appropriate information

requested for program and project

assistance in Section II.D.4 as well as a

discussion of the steps the CRO is taking

to become self-supporting and a

timetable for when the CRO will be selfsupporting.

4. Community Transition Program and

Project Assistance

a. The purpose of this assistance is to

fund the activities deemed most likely

to reduce the community’s dependence

on the Department and to mitigate the

negative impacts on communities

resulting from the downsizing of

defense nuclear facilities. Project

assistance typically will provide

financial assistance for a

comprehensive, multi-year community

transition program—generally a 3 to 5-

year program. The program may be

based upon community needs and may

incorporate an analysis of the socioeconomic strengths, weaknesses,

opportunities, and threats in the

community transition plan. Components

may include programs conducted

directly by the CRO, contract services,

and competitively-based financial

assistance for economic development

activities. Types of programs that may

be funded include small business

incubators, revolving loan funds, equity

position, venture and risk capital

funding, marketing of excess

Department property, entrepreneurial

development, technology transfer

assistance, and applicable training

seminars. Inclusion of these types of

programs in a financial assistance award

will generally require special provisions

in the financial assistance instrument.

For example, if a CRO institutes a

revolving loan fund, the loan program

should not exceed an appropriate length

of time (i.e., 5 years) and all interest and

principal payments must be returned to

the Government. The financial

assistance award should contain

appropriate guidance on repayments of

loans and if desired, allow for

reauthorization of principal repayments

to be used for payment of other costs

under the financial assistance award.

b. In the past, program and project

assistance has generally been in the

range of $400,000 to $5 million per year

at each site.

c. The specific format for requests for

program and project assistance will

depend on the applicant. For CRO

requested projects or programs, the

request should be included in the

Community Transition Plan as

described in Section VI. For funds to be

managed by the site independent of the

CRO, the site shall submit a letter

request to Headquarters signed by the

Field Manager which contains

information similar to that requested for

prioritized projects submitted by the

CRO, together with a letter from the

CRO with the CRO’s comments.

d. The Lobbying Disclosure Act of

1995, Public Law 104–65, Dec. 19, 1995,

as amended by Public Law 104–99, Jan.

26, 1996, prohibits the Government

from awarding financial assistance to

non-profit organizations described in

section 501 (c) (4) of the Internal

Revenue Code of 1986 which engage in

lobbying activities as defined by the

Act. Therefore, such organizations are

not eligible to receive awards of

financial assistance.

III. Roles and Responsibilities

A. The Secretary of Energy is

responsible for the overall program

direction and has final approval of all

community transition funding

decisions.

B. The Director, Office of Worker and

Community Transition is responsible for

the overall management of the

community transition program,

including the following:

1. Authorizes actions, within

approved funding levels, to mitigate

impacts of reconfiguration, downsizing,

and closing of Department facilities.

2. Establishes principles, policies, and

procedures to implement the

Department’s community transition

mission.

3. Develops the Department-wide

community transition budget,

recommends the Department field

organization budget levels for

community transition, and establishes

the criteria to be used for community

transition program funding levels at

qualifying sites.

4. Determines allowable uses of

Worker and Community Transition

program funds within legislativelymandated parameters.

5. Recommends, to the Secretary,

approval or denial of requests for

community transition assistance, after

consultation with other Department

elements as necessary.

6. Ensures coordination of the

Community Transition Plan with the

work force restructuring plans at the

site.

7. Provides liaison among other

program and staff offices in

Headquarters for community transition

issues.

8. Conducts program reviews of field

implementation of the community

transition program.

C. Department Field Organizations are

responsible for the day-to-day

administration of the community

transition program. This includes

responsibility for the following:

1. Working within their communities

to designate the local CRO in order to

perform the roles and responsibilties as

described in Section III.D.

2. Assuring that CROs are entities

formed for the purpose of addressing the
5808 Federal Register / Vol. 62, No. 26 / Friday, February 7, 1997 / Notices

economic impacts in the affected

communities as a result of the changes

in the work force at a defense nuclear

facility. CROs may be local

governments, corporations or affiliations

of communities and interested

stakeholders.

3. Soliciting applications for financial

assistance and approving the CRO for

sites under their jurisdiction; assuring

that all interested groups are afforded

the opportunity to participate in the

CRO.

4. Assuring that the provision in

Appendix D concerning the standard of

conduct requirements be included in

each financial assistance award for

economic development activities.

5. Assuring that the Department’s

community transition policies and

guidance are carried out in a spirit of

cooperation and openness.

6. Integrating the requirements of the

community transition program with the

requirements of other programs and

activities at their sites and assuring that

necessary support activities are

identified and budgeted for.

7. Providing planning guidance to the

CROs for program plans and reviewing

and approving CRO-developed

community transition plans.

8. Resolving conflicting proposed uses

of the Department’s assets under its

jurisdiction.

9. Integrating community transition

locally so that it incorporates the work

and plans of the CRO with other

community transition activities, if any,

proposed by the site.

10. Consulting with American Indian

Tribal Governments to assure that tribal

rights and concerns are considered prior

to the Department taking actions,

making decisions or implementing

programs that may affect tribes.

11. Publishing financial assistance

award announcements publicly to allow

maximum participation.

12. Assuring that there is no financial

assistance or loan awarded to any nonprofit organizations described in section

501(c)(4) of the Internal Revenue Code

of 1986 which engages in lobbying

activities as defined in the Lobbying

Disclosure Act of 1995, as amended.

D. Community Reuse Organizations

serve to implement community

transition activities. In this capacity the

CRO will:

1. Coordinate local community

transition planning efforts that address

Department-related impacts.

2. Include a broad representation of

the affected communities, with

opportunity for involvement given to

people and groups such as individual

residents; representatives of

community-based organizations;

representatives of business, educational,

and financial institutions; site workers

and their labor organizations; local

government officials; established

economic and community development

organizations; public interest groups;

environmental groups; diversity groups;

and federally-recognized American

Indian Tribes.

3. Develop and submit Community

Transition Plans to the appropriate

Department field organization.

4. Receive Department funding and

participate in the management of

community transition projects.

5. Coordinate CRO activities with Site

Specific Advisory Boards (SSAB) at

Department facilities, particularly with

regard to future site planning.

IV. Program Planning

A. General

Future funding for all activities other

than start-up and planning assistance is

expected to be requested through a

Community Transition Plan (or a letter

request for Department field

organization activities). Table 1

describes the activities expected to

occur at each step. The intent of this

process is to provide objectivity in the

selection of project and program

activities to be supported. The following

paragraphs will describe the major

activities in some detail.

B. Development of the Community

Transition Plan

Department field organizations should

provide guidance to the CROs to assist

them in developing a Community

Transition Plan. Based upon this

guidance, the CROs should prepare a

Community Transition Plan for funding.

C. Department Field Organization and

Office Reviews

Upon completion of the CRO

Community Transition Plan and any

Department field organization projects,

a field review of the Community

Transition Plan and an Office review of

both the Community Transition Plan

and any site-sponsored projects should

take place. The intent is for the

Department field organization and the

Office to jointly identify any needed

revisions as soon as possible, thereby

minimizing multiple requests for

changes. At the end of the review

period, there should be a plan ready for

recommendation with a very high

probability of approval by the Office.

D. Economic Development

Administration in the Department of

Commerce and the Peer Review Board

Reviews by the Economic

Development Administration in the

Department of Commerce and the Peer

Review Board should use the criteria in

Section V to compare and assess

projects and programs. The

recommendations may be provided to

the Office of Worker and Community

Transition for their consideration in the

final determinations of program

funding.

E. Office of Worker and Community

Transition Review and Decisions

The Office will review the submitted

plans, the peer review comments, and

the independent review from the

Economic Development Administration

of the Department of Commerce. Based

upon these inputs, and the Office staff

review, final funding levels for the fiscal

year will be recommended. After

Secretarial approval and appropriate

notifications, funds will be transferred

to the appropriate Department field

organizations for implementation of the

approved program.

TABLE 1.—COMMUNITY TRANSITION FUNDING ACTIVITIES

Step Activity

(1) ..................... CRO develops Community Transition Plan based upon planning guidance from the Department. If appropriate, local Department field organization develops project descriptions for any Department facility/activities to be requested from the Office.

(2) ..................... CRO submits Community Transition Plan to the Department field organization.

(3a) ................... Department field organization conducts review of Community Transition Plan and assists CRO in refining proposal.

(3b) ................... Office concurrently assists development of the Community Transition Plan and any projects from the Department field organization.

(4) ..................... Department field organizations submit community transition plan and field project requests to the Office for review and approval.

(5) ..................... Economic Development Administration and the Peer Review Board evaluate CRO Community Transition Plans and field

projects.
Federal Register / Vol. 62, No. 26 / Friday, February 7, 1997 / Notices 5809

TABLE 1.—COMMUNITY TRANSITION FUNDING ACTIVITIES—Continued

Step Activity

(6) ..................... Peer Review Board Report and Economic Development Administration Reports are submitted to the Office.

(7) ..................... The Office conducts internal review.

(8) ..................... The Office makes funding award decision.

(9) ..................... The Office authorizes release of funds into Department field organization financial plan.

(10) ................... Community transition funds are available to recipients.

V. Evaluation Criteria for Review of

Projects and Programs

The following factors will be used to

evaluate all project and program

funding requests in Community

Transition Plans:

A. Projected job creation

(communities should seek to create at

least one job for each $10,000 to $25,000

in Federal funding received, leveraging

those funds to attract other private and

public funds).

B. Projected job creation for workers

affected by downsizing.

C. Viability of project to induce

investment/growth in production of

goods and services for which the

community may have or be able to

develop a comparative economic

advantage.

D. Ability to reduce the region’s

dependence on the Department.

E. Consistency with the identified

strengths of the region.

F. Past performance of the applicant,

if any.

G. Amount of local participation in

the project, either financially or in terms

of coordinated services.

H. Demonstrated cooperation with

regional or state economic development

efforts.

I. Ability of project to become selfsufficient.

J. Linkage of project to site cost

reductions through transfer of site

equipment, facilities or technologies.

K. Other unique factors such as

innovative features of the proposed

project, such as matching funds.

VI. Community Transition Plans

A. Purpose

1. The Community Transition Plan

describes the overall strategies and,

within each strategy, the actions

proposed by the communities to

respond to the changing missions at a

Department facility. Where appropriate,

it also describes the proposed programs,

projects and estimated funding

requested from the Department. It is the

overall framework and the rationale for

the local response to the downsizing at

the Department facility.

2. The Plan serves an integrating

function, building upon other existing

community and facility planning efforts

in the region. It should describe those

efforts, the lessons learned from them,

and should focus on the additional,

supplemental efforts the community

believes are necessary and useful to

respond to the changes at the

Department facility. It should not

duplicate other planning efforts, but

would afford the community an

opportunity to highlight innovations to

address the impacts of downsizing.

B. General

1. Initial planning grants from the

Department should be used by CROs to

prepare and submit to the Office a Plan

for anticipated community transition

activities. This Plan should be

submitted through and be approved by

the appropriate Department field

organization.

2. While each community faces

unique transition challenges and will

develop a plan specific to its situation,

there are common topical areas that

should be addressed in all Plans. The

following paragraphs offer guidance on

what the Office considers critical

components of a Community Transition

Plan. These are elements to be

addressed in the Plan, not necessarily

an outline of the developed Plans. The

continued allocation of the

Department’s limited financial and

other available resources will be

contingent upon the completion of the

Plan and its contents. Both short-term

and long-term objectives may be

included.

C. Community Transition Plan

Components

1. Planning Analysis

a. An analysis should be performed to

establish the primary and secondary

community impacts likely as a result of

planned site restructuring. From a

baseline established from local

information sources, project the likely

impacts on such primary factors as net

job loss, changes in unemployment, loss

of wages and disposable income, and

business closings. Secondary impacts

could include such factors as decreases

in taxes and other user fees, loss of

business and sales volumes, decreases

in property values and other factors.

Impacts on education, cultural

activities, recreation, the environment

and other socio-economic factors should

also be considered. From an analysis of

these impacts, develop a set of issues.

b. A critical part of the Community

Transition Plan is the analysis of

strengths, weaknesses, opportunities

and threats (SWOT analysis) to the

community. This can be performed with

planning assistance funds, or existing

studies can be used. With the SWOT

analysis as a framework, set out an

overall vision for the community and

identify the programs and projects to be

established, including the degree to

which the programs and projects

address the issues.

2. Stakeholder Involvement

Stakeholders should have the

opportunity to participate in the

planning process. Identify stakeholders

providing input to the Plan, describe

method of input, and common areas of

interest. A communication strategy

should also be a component of insuring

proper representation and community

input into the planning and

implementation process. This should

also include CRO coordination with the

applicable site and other groups, such

as: any Site Specific Advisory Boards;

regional planning and economic

development organizations and

activities; labor; the business

community; academic communities;

and American Indian Tribal

Governments.

3. Prioritized Projects

Develop a list of prioritized projects

or programs based on the above

considerations with an overall project

budget and schedule for completion of

each. The following items are suggested

topics for discussion for each project:

a. The primary goal of transition

initiatives is the creation of jobs through

the retention, expansion, and creation of

businesses, and through other measures,

to offset the economic impacts of the

Department’s work force restructuring

actions. The Plan should identify likely

benefits to workers displaced by the

Department and the area’s work force in

general.
5810 Federal Register / Vol. 62, No. 26 / Friday, February 7, 1997 / Notices

b. Amount, type, timing, and

continuity of funding available from

non-Department sources such as the

U.S. Department of Labor’s Job Training

Partnership Act and the U.S.

Department of Commerce’s Economic

Development Administration. Also

include any state and local funding, and

any private development sources, such

as venture capital, financial institutions,

revenue bonds, seed capital, revolving

loans and other private funds. The use

of these funds should be set out relative

to any Department funding provided.

c. Coordination with other

community programs.

d. Performance measures for each

project.

e. A proposed scope of work,

timeline, and reporting schedule

(generally, quarterly) of proposed

activities, accomplishments, and

expenditures.

f. Required Federal grant application

forms and financial information, as

specified by the Department field

organization.

g. Any anticipated preferences or nontraditional competition elements of the

program, and their relationship to

program objectives.

h. A discussion of CRO coordination

with units of Federal, state, local, or

tribal governments. Demonstration that

proposed projects will augment and not

duplicate current community efforts.

I. Plans, if any, to support CRO

operating and program costs following

completion of the project grant (e.g.,

self-sustaining mechanisms, local or

non-Department support, revenue/

income generation, future Department

funding, or transfer of programs to other

organizations).

j. Identification of any time-sensitive

opportunities, or other pertinent

background information.

k. If multi-year funding is anticipated,

show how this year’s increment related

to prior-year activities and what will

happen if future year funding is reduced

or eliminated.

VII. Performance Measures

A. Purpose

1. Performance measures represent a

mechanism that the CROs and the

Department can use to monitor

performance. They do this by providing

a means for: (1) determining how well

a project is being executed; (2)

indicating when corrective actions are

required; and (3) documenting success.

2. Performance measures establish a

mechanism for program assessment. It is

suggested that the CROs use the results

of their performance measures for self

assessment purposes. The Department

field organization and Headquarters

staff should use the same results for

purposes of external oversight.

3. Performance measures should be

used to allow the Department to provide

objective and defensible indications to

the Congress and to the American

people that the Department’s economic

development program is effective.

4. Finally, since the intent of

performance measures is to evaluate

program execution, performance

measures need not be developed for

start-up or planning assistance.

B. Guidance

1. The CROs are responsible for

developing performance measures based

on this guidance and on their unique

circumstances, goals, and objectives.

The final measures should be negotiated

with the appropriate Department field

organization and, ultimately, approved

by the Office.

2. Many CROs may have similar

objectives. The Office encourages, but

does not require, developing consistent

performance measures in such cases and

also encourages sharing best-practices

and lessons-learned to the maximum

extent possible.

3. Performance measures should not

focus on minor aspects of performance,

rather, they should comprehensively

measure critical aspects of performance

for any enterprise.

4. Performance measures and

objectives should not be so difficult that

they cannot be achieved through a

reasonable amount of effort, nor shall

they be excessively easy to achieve.

5. Performance measures shall be

periodically assessed by the CROs and

the results reported to the Department

field organization and the Office.

6. When a performance measure is no

longer providing useful information, it

should be eliminated or replaced.

7. Performance measures shall be

measurable in a numerical fashion to

the maximum extent possible. Where

numeric measurement is not possible,

performance measures shall be

evaluated against a clearly defined set of

criteria.

8. In cases where grant requests are

small (i.e., less than $300,000), a less

stringent requirement for performance

measures may apply.

9. On a quarterly basis, the CROs

should submit a progress report to

Department Headquarters via the

appropriate Department field

organization. The quarterly progress

reports should contain, among other

things, updated information on the

CRO’s performance measures. The

progress report format may be found in

Appendix C.

C. Model

Per the above guidance, the

individual CROs should be tasked with

developing performance measures for

their particular enterprise. The Office

recognizes that:

1. The various CROs will have

different missions, objectives, and

priorities; the CROs are best equipped to

determine what constitutes a good

measure of performance for their

particular situation.

2. The CRO missions are dynamic,

and, therefore, their objectives may

change from time-to-time. As a

consequence, what constitutes a good

performance measure today may not be

appropriate tomorrow; therefore, the

CROs should be allowed the flexibility

to alter their performance measures,

with the Office’s concurrence, to more

closely align with changing missions

and objectives.

3. The CROs should have latitude in

regard to the substance and nature of

their performance measures. However, it

is suggested that they follow generally

recognized principles for developing

and measuring performance. By

employing a performance measurement

system, the Department will be able to

assess and describe the effectiveness of

the program. This will assist in

determining appropriate levels for the

program in future years and will help

each site and each CRO assess the

effectiveness of its program.

D. Areas to Address

The following paragraphs delineate

the types of issues that should be

considered when developing a

performance measurement program.

1. Job creation: The act of creating

jobs that did not previously exist in a

defined marketplace, especially jobs

that will assist displaced workers from

the affected site. Communities should

seek to create at least one job for each

$10,000 to $25,000 in Federal funding

received, leveraging those funds to

attract other private and public funds.

2. Job retention: Holding in place the

existing work force and providing

substitute employment for at-risk or

displaced workers within a defined

geographic area.

3. Regional development:

Enhancement of the attributes of a

geographic area to promote the

commonly-held and understood assets

of that region.

4. Business start-ups: New

commercial or industrial enterprises,

legal entities, partnerships, etc.
Federal Register / Vol. 62, No. 26 / Friday, February 7, 1997 / Notices 5811

5. Expansion of existing businesses:

The ability to hire more workers and to

increase the demand for goods and

services ultimately stimulating the

economy (e.g., increase revenues,

broaden the tax base).

6. Economic diversification: Any

activity within a defined geographical

area that makes the area less dependent

upon Department business.

7. Training: Providing skills and

classes necessary to prepare workers to

maintain the skills required to continue

in one’s current position or alternative

job.

8. Commercialization: The act of

making assets (e.g., technologies, use of

facilities or equipment) under

Department control available for third

party use or for use by the M&O

contractor for non-Department business

activities.

9. Facility reuse: The reuse of

Department facility real estate and

fixtures including buildings, land, and

facilities that are not needed for the

Department’s traditional missions.

10. Leveraging: The ability of the CRO

to commit non-Department resources as

a match for Department funds

requested. Leveraging should be

indicated as a ratio of non-Department

to Department resources, e.g., if a CRO

requests a $100,000 grant and commits

$50,000 in non-Department matching

funds, the leveraging factor would be

1:2.

11. Matching funds: Defined as nonDepartment resources committed to

CRO programs. Matching funds may

include the following:

a. Cash—funds committed to projects

to pay for various program activities,

including personnel, equipment,

materials, supplies, facilities, etc.

b. In-kind—contributions other than

cash committed to program activities.

In-kind contributions may include

personal time, donated facility space,

equipment loans or value of discounted

services.

12. Personal property transfer: The

transfer of Department-controlled

equipment, supplies, and intellectual

property to another entity—can involve

transfer of title, licensing or leasing of

the property.

13. Community relations: Broad-based

solicitation and encouragement of

public awareness and participation in

decision-making processes.

14. Administration, Outreach and

Finance: Business systems and

processes incorporated to manage the

development and implementation of the

community transition program,

including community involvement and

fiscal responsibilities (e.g., contractual

compliance, auditing, the raising and

expending of monies, granting credit,

and making investments).

VIII. Reviews

A. Financial Management Reviews

1. Generally, the Department field

organizations should apply the

requirements of Departmental financial

assistance policies and procedures

which are set forth in 10 CFR Part 600.

Those sections of the CFR provide

guidance in the various aspects of

financial assistance management

including general administrative

requirements, reports and records,

making changes in the grant scope, and

auditing requirements.

2. Purpose

Careful monitoring of program

implementation is necessary due to the

level of public involvement in

community transition activities. The

Office is responsible for establishing

appropriate standards to assure proper

accounting for the use of community

transition assistance funds.

3. Procedures

a. Conduct financial management

reviews of Department field

organization community transition

programs on an as-needed basis.

Specific areas of review are: Financial

reporting; accounting records; internal

control; budget control; allowable cost;

source documentation; cash

management; and project accounting.

b. The Office should track completed

grants and close-out reports that address

audit findings.

B. Program Reviews

The Office plans to conduct

programmatic reviews of Department

field organizations to assess

accomplishments, determine progress

and identify issues needing study.

These reviews should be performed on

a frequency and at locations as

determined by the Office Director, and

should be coordinated with the

management of the Department field

organization being reviewed. The Office

should not review the CROs, except

when accompanying a Department field

organization during its review. It is the

general goal of the Office to review each

Department field organization that is

implementing a community transition

program at least once every year.

Appendix A

Office of Worker and Community Transition Contacts

Director:

Bob DeGrasse ................................................................................................................................................. 202–586–7550, FAX 586–8403.

Deputy Director:

Terry Freese ................................................................................................................................................... 202–586–5907, FAX 586–8403.

Program Communications:

Pat Parizzi ...................................................................................................................................................... 202–586–7550, FAX 586–8403.

Work Force Planning:

Lyle Brown ..................................................................................................................................................... 202–586–0431, FAX 586–1540.

Laurel Smith .................................................................................................................................................. 202–586–4091, FAX 586–1540.

Debby Swichkow ........................................................................................................................................... 202–586–0876, FAX 586–8403.

Work Force Restructuring:

Terry Freese ................................................................................................................................................... 202–586–5907, FAX 586–8403.

Labor Relations:

Lyle Brown ..................................................................................................................................................... 202–586–0431, FAX 586–1540.

Deborah Sullivan ........................................................................................................................................... 202–586–0452, FAX 586–1540.

Community Transition:

Bob Baney ...................................................................................................................................................... 202–586–3751, FAX 586–1540.

Mike Mescher ................................................................................................................................................ 202–586–3924, FAX 586–1540.

Laurel Smith .................................................................................................................................................. 202–586–4091, FAX 586–1540.

Debby Swichkow ........................................................................................................................................... 202–586–0876, FAX 586–8403.

Public Participation:

Laurel Smith .................................................................................................................................................. 202–586–4091, FAX 586–1540.

Natasha Wieschenberg ................................................................................................................................... 202–586–5830, FAX 586–1540.
5812 Federal Register / Vol. 62, No. 26 / Friday, February 7, 1997 / Notices

Community Transportation Field Contacts

Paul Dickman, Albuquerque Operations Office .................................................................................................. 505–845–4313, FAX 845–5508.

Gary Stegner, Fernald Environmental Management Site ................................................................................... 513–648–3153, FAX 648–3073.

Ken Osborne, Idaho National Engineering Laboratory ....................................................................................... 208–526–0805, FAX 526–8789.

Dave Porco, Miamisburg Area Office .................................................................................................................. 513–865–3649, FAX 865–4489.

Darwin Morgan, Nevada Operations Office ........................................................................................................ 702–295–3521, FAX 295–0154.

Bob Hamilton, Oak Ridge Operations Office ...................................................................................................... 423–576–7723, FAX 576–6363.

Gene Pressoir, Pinellas Area Office ..................................................................................................................... 813–541–8062, FAX 541–8370.

Mike Dabbert, Portsmouth Gaseous Diffusion Plant .......................................................................................... 614–897–5525, FAX 897–2982.

Mark Coronado, Richland Operations Office ...................................................................................................... 509–376–3502, FAX 376–8142.

Mike Bolles, Rocky Flats Office ........................................................................................................................... 303–966–2473, FAX 966–6633.

Sam Glenn, Savannah River Operations Office .................................................................................................. 803–725–2425, FAX 725–1910.

Appendix B.—Listing of Defense

Nuclear Facilities

The list below reflects facilities receiving

funding for Atomic Energy Defense activities

of the Department of Energy, with the

exception of activities under Naval Reactor

Propulsion. It is recognized that these

facilities have varying degrees of defense

activities, ranging from a total defense

dedication to a very small portion of their

overall activity. This may cause certain

difficulties in implementing the intent of the

section 3161 legislation. Regardless, this

listing will be used by the Office for possible

application of funding received for defense

worker assistance and community transition

purposes.

Kansas City Plant

Pinellas Plant

Mound Facility

Fernald Environmental Management Project

Site

Pantex Plant

Rocky Flats Environmental Technology Site,

including the Oxnard Facility

Savannah River Site

Los Alamos National Laboratory

Sandia National Laboratory

Argonne National Laboratory

Brookhaven National Laboratory

Lawrence Livermore National Laboratory

Oak Ridge National Laboratory

Nevada Test Site

Y–12 Plant

K–25 Plant

Hanford Site

Idaho National Engineering Laboratory

Waste Isolation Pilot Project

Portsmouth Gaseous Diffusion Plant

Paducah Gaseous Diffusion Plant

Appendix C.—Quarterly Progress

Report: (Date)

Project Title: (a name selected by the site for

the specific activity or activities—e.g.;

incubator loan fund; entrepreneurial

training. The site and the CRO will

determine the best method for project

definition, consistent with the way funds

were requested and approved.

DOE Site Contact: (name of DOE Field or

Area Office point of contact)

CRO Contact: (name of CRO point of contact

[if different from the project manager])

Project Manager: (name, address, and phone

number of the primary applicant of the

project under review)

Project start date: (date funding recipient is

authorized to proceed by the field office)

Expected completion date: (Date funding

recipient is expected to complete the

project)

Description of project: (a short narrative

description of the project.)

Funding History: (a record of the project

funding. Committed means funds released

to a field organization by the Office of

Worker and Community Transition [the

Office]; obligated means monies released to

the CRO or other recipient by the field

organization; and costed means expended

by the CRO or other recipient.)

Status of the office

funds Cumulative amount

Committed by the Office.

Obligated by the field

organization.

Costed by the recipient.

Unobligated by the

field organization.

For the Office funding, identify the

cumulative amount committed by the

Office; the cumulative amount obligated

by the field office; the amount

unobligated; and the amount costed by

the recipient. For leveraged funds,

identify each source and the cumulative

amount from that source.

Funding

source Cash In-kind

Accomplishments: (project outcomes todate: report on performance measures

identified and jointly agreed to by DOE field

and the CRO)

PERFORMANCE MEASURES

Category Scheduled

date Projected outcome Actualdate

Progress to-date (or

to the end of the

project)

(e.g., create new businesses) ......................... 9/94 Start-up 2 businesses .................................... 12/94 3 new businesses.

(e.g., create new jobs) .................................... 9/94 20 jobs ............................................................ 10/94 30 jobs.

Date (Joint signature) DOE Field Office

Date (Joint signature) CRO

Appendix D.—Requirement for

Financial Assistance—10 CFR Part 600

Section 600.142 of 10 CFR Part 600

contains a requirement for recipients of

financial assistance to maintain written

standards of conduct governing the

performance of employees engaged in the

award and administration of contracts. Since

organizations involved in economic

development activities may engage in

activities other than contracting, in which

potential conflicts of interest may arise (e.g.,

providing loans to local businesses), the

following provision should be included in all

financial assistance awards to such entities:

The requirements of 10 CFR 600.142

should be applied to the activities of

employees, agents and consultants of

financial assistance recipients whenever

these activities involve decisions about the

award of DOE funds, regardless of the type

of agreement or arrangement to be supported

by DOE funds (e.g., lease, loan, contract, etc.).

[FR Doc. 97–2933 Filed 2–6–97; 8:45 am]

BILLING CODE 6450–01–P

Federal Energy Regulatory

Commission

[Project No. 11499–000 Tennessee]

Armstrong Energy Resources; Notice

of Public Scoping Meetings

February 3, 1997.

The Federal Energy Regulatory

Commission (FERC) and the Tennessee

Valley Authority (TVA) are reviewing a

proposal from Armstrong Energy

Resources to construct and operate the

1,500-megawatt Laurel Branch Pumped