Federal Register / Vol. 80, No. 239 / Monday, December 14, 2015 / Rules and Regulations 77239 

DEPARTMENT OF THE TREASURY 

31 CFR Part 34 

RIN 1505–AC44 

Department of the Treasury 

Regulations for the Gulf Coast 

Restoration Trust Fund 

AGENCY: Office of the Fiscal Assistant 

Secretary, Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury is issuing final regulations 

concerning the investment and use of 

amounts deposited in the Gulf Coast 

Restoration Trust Fund, which was 

established in the Treasury of the 

United States by the Resources and 

Ecosystem Sustainability, Tourist 

Opportunities, and Revived Economies 

of the Gulf Coast States Act of 2012 

(RESTORE Act). 

DATES: Effective date: February 12, 2016. 

FOR FURTHER INFORMATION CONTACT: 

Please send questions by electronic mail 

to restoreact@treasury.gov, or contact 

Janet Vail at the Office of Gulf Coast 

Restoration at 202–622–6873. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The RESTORE Act makes funds 

available for the restoration and 

protection of the Gulf Coast Region, and 

certain programs with respect to the 

Gulf of Mexico, through a trust fund in 

the Treasury of the United States, 

known as the Gulf Coast Restoration 

Trust Fund. The trust fund will contain 

80 percent of the administrative and 

civil penalties paid after July 6, 2012 

under the Federal Water Pollution 

Control Act in connection with the 

Deepwater Horizon oil spill. Amounts in 

the trust fund will be invested and made 

available through five components of 

the RESTORE Act. 

The Direct Component, administered 

by Treasury, sets aside 35 percent of the 

penalties paid into the trust fund for 

eligible activities proposed by the State 

of Alabama, the State of Mississippi, the 

State of Texas, the State of Louisiana 

and 20 Louisiana parishes, and 23 

Florida counties. The Comprehensive 

Plan Component sets aside 30 percent of 

the penalties, plus half of all interest 

earned on trust fund investments, to be 

managed by a new independent Federal 

entity called the Gulf Coast Ecosystem 

Restoration Council (Council). The 

Council includes members from six 

Federal agencies or departments and the 

five Gulf Coast States. One of the 

Federal members, the Secretary of 

Commerce, at this time serves as 

Chairperson of the Council. The Council 

will direct those funds to projects and 

programs for the restoration of the Gulf 

Coast Region, pursuant to a 

comprehensive plan that is being 

developed by the Council. Under the 

Spill Impact Component, entities 

representing the Gulf Coast States use 

an additional 30 percent of penalties in 

the trust fund for eligible activities 

pursuant to State Expenditure Plans 

approved by the Council. The remaining 

five percent of penalties, plus one-half 

of all interest earned on trust fund 

investments, will be divided equally 

between the NOAA RESTORE Act 

Science Program established by the 

National Oceanic and Atmospheric 

Administration (NOAA), an operating 

unit of the Department of Commerce, 

and the Centers of Excellence Research 

Grants Program, administered by 

Treasury. 

On August 15, 2014, Treasury 

published a comprehensive interim 

final rule containing procedures for 

implementing the RESTORE Act. 

Among its provisions, the procedures 

allocated amounts to the five 

components, described the activities 

that could be funded and the entities 

entitled to apply for funds, and set forth 

compliance requirements. Treasury 

accepted public comment on the 

comprehensive interim final rule for 

thirty days. Treasury published a 

second interim final rule on October 10, 

2014, which allocated amounts to 

Louisiana parishes under one RESTORE 

Act component, called the Direct 

Component. Both interim final rules 

took effect on October 14, 2014. 

II. Public Comments and Summary of 

Changes From the Interim Final Rules 

Treasury received 21 unique comment 

letters on the comprehensive interim 

final rule, and no comments on the 

interim final rule that allocated funds to 

the Louisiana parishes. Several 

commenters repeated suggestions made 

on the proposed rule issued in 

September 2013, and opined on matters 

discussed in the preamble to the 

comprehensive interim final rule, such 

as the application of the National 

Environmental Policy Act (NEPA) to 

RESTORE Act grant programs. 

One commenter, a state, 

acknowledged the benefits of providing 

funds through grants, but encouraged 

Treasury to consider using a revenue 

sharing arrangement. The commenter 

raised a concern that grant processes are 

an inefficient means of disbursing funds 

to meet the goals of the RESTORE Act. 

Treasury addressed this comment when 

it published the comprehensive interim 

final rule. The RESTORE Act imposes 

conditions on how states use funds 

provided under the Act, requires 

Federal oversight, and authorizes 

Treasury to stop the flow of funds when 

there is noncompliance. These controls 

are characteristic of Federal grant 

programs. The controls required by 

Treasury’s regulations and Federal laws 

and policies on grants hold recipients 

accountable to use the funds as required 

by the RESTORE Act. The public 

comments Treasury received on the 

proposed rule and comprehensive 

interim final rule overwhelmingly 

support the distribution of RESTORE 

Act funds through Federal grants. 

Accordingly, no change has been made 

in the final rule to address this 

comment. 

Several commenters, particularly 

public interest groups, requested that 

Treasury exercise more authority over 

the selection of projects funded under 

the RESTORE Act. Some commenters 

asked Treasury to establish substantive 

criteria for evaluating project proposals, 

such as performance goals and 

preferences for certain kinds of 

activities. Other commenters proposed 

that Treasury adopt procedures, such as 

independent expert reviews, for 

evaluating synergies and potential 

conflicts between projects proposed 

under different components, or to 

address project proposals that may be 

controversial. 

Treasury considered similar 

comments during its review of 

comments on the proposed rule. The 

Act does not impose uniform criteria for 

the selection of projects under the Direct 

Component, Comprehensive Plan 

Component, and Spill Impact 

Component, or require the coordination 

of projects across components. Each 

component has different eligibility 

criteria, different processes for selecting 

activities, and different entities 

responsible for selecting the activities to 

be funded. The final rule acknowledges 

these differences, while still requiring 

compliance with the Act and Federal 

laws and policies applying to grants. 

Under these policies, Federal awards 

will include an indication of the timing 

and scope of performance, and may 

include specific performance goals, 

indicators, milestones, and expected 

outcomes. The appropriate vehicle for 

addressing these project specific 

requirements is the Federal award 

agreement. 

Beyond what the Act stipulates, 

Treasury cannot require the Council, 

NOAA, states, counties, or parishes to 

coordinate their selection of projects 

across components in order to achieve 

particular economic or environmental 

goals. Treasury encourages voluntary 

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77240 Federal Register / Vol. 80, No. 239 / Monday, December 14, 2015 / Rules and Regulations 

efforts to coordinate work, and intends 

to facilitate these efforts by publishing 

Direct Component Multiyear 

Implementation Plans and other 

information related to the grant 

programs it administers. 

Several public interest groups also 

asked Treasury to reconsider its views 

regarding the application of NEPA to 

Treasury’s activities under the Direct 

Component and the Centers of 

Excellence Research Grants Program. In 

the preamble to the comprehensive 

interim final rule, we stated that 

‘‘Treasury does not anticipate that its 

review of Multiyear Implementation 

Plans or the issuance of individual 

grants will require a NEPA review. 

Other Federal actions connected with 

activities funded through a RESTORE 

Act grant, such as issuance of a permit, 

may require NEPA review by the agency 

issuing the permit.’’ 79 FR 48039, 48051 

(Aug. 15, 2014). 

Treasury’s view is based on its limited 

statutory role for the administration of 

Direct Component grants and the 

Centers of Excellence Research Grants 

Program. The Act gives Treasury no role 

in project selection or design for the 

Direct Component. The Act specifies the 

activities or disciplines that are eligible 

for funding, and does not explicitly 

authorize Treasury to reject an activity 

or discipline, or to require funding of an 

alternative design, when the activity 

otherwise complies with the Act and 

other Federal law. Also, Treasury 

neither approves nor disapproves 

Multiyear Implementation Plans. 

Accordingly, Treasury will review 

Multiyear Implementation Plans and 

grant applications to determine whether 

they satisfy financial and administrative 

requirements in the Act and these 

regulations, and apply requirements in 

the Office of Management and Budget’s 

Uniform Administrative Requirements, 

Cost Principles, and Audit 

Requirements for Federal Awards 

(OMB’s Uniform Guidance), 2 CFR part 

200, in its review of grant applications. 

Because Treasury has a limited role in 

reviewing Multiyear Implementation 

Plans and issuing grants, Treasury does 

not anticipate that its actions will 

require an Environmental Assessment or 

Environmental Impact Statement under 

NEPA. NEPA is designed to help federal 

agencies consider environmental 

consequences in their decision-making 

process. When an agency action is nondiscretionary under a statute, the 

information that a NEPA review 

provides would not assist the agency’s 

decision-makers. Several commenters 

urged Treasury to reconsider the 

application of NEPA to its RESTORE 

Act grant programs, but no commenter 

offered an analysis of the RESTORE Act 

or its legislative history showing where 

Treasury has the discretion to consider 

environmental consequences and 

project alternatives when making grants. 

Treasury’s limited role does not mean 

that NEPA will never apply to activities 

undertaken with funds provided 

through the Direct Component and 

Centers of Excellence Research Grants 

Program. As Treasury stated in the 

preamble to the comprehensive interim 

final rule, other Federal actions, such as 

the issuance of permits, may trigger 

NEPA review by the Federal regulatory 

agency. In addition, it is Treasury policy 

under Treasury Directive 75–02 to fully 

evaluate its actions to ensure 

compliance with NEPA requirements 

and regulations issued by the Council 

on Environmental Quality, where 

applicable. As necessary, Treasury will 

consider NEPA environmental 

documentation in the context of 

individual grant applications, if it is 

determined that Treasury has sufficient 

discretion to consider environmental 

consequences and project alternatives. 

The final rule contains several 

technical edits, some of which were 

suggested by commenters. Substantive 

comments and changes to the 

comprehensive interim final rule are 

described below. 

Section-by-Section Analysis 

Section 34.2 (Definitions) 

Treasury received several comments 

requesting a more clear definition of 

administrative costs. The final rule 

continues to define administrative costs 

as indirect costs for administration 

incurred by the Gulf Coast States, 

coastal political subdivisions, and 

coastal zone parishes that are allocable 

to activities authorized under the Act. 

Administrative costs do not include 

indirect costs that are identified 

specifically with, or readily assignable 

to, facilities. The final rule references 

the definition of facilities in OMB’s 

Uniform Guidance at 2 CFR 200.414(a). 

To avoid confusion, Treasury has 

removed the list of activities that may 

result in administrative costs from the 

final rule. 

The definition of administrative costs 

in the comprehensive interim final rule 

also included a statement that certain 

costs are direct costs. This statement 

was imprecise and Treasury has deleted 

it from the final rule. Grant applicants 

should look to OMB’s Uniform 

Guidance for general information about 

direct and indirect costs. Questions 

about whether particular costs are direct 

or indirect costs should be addressed to 

the relevant Federal awarding agency. 

One commenter asked Treasury to 

clarify the definition of Gulf Coast 

Region. The commenter contends that 

the geographic scope of watersheds in 

paragraph three of the definition is 

ambiguous. Treasury’s comprehensive 

interim final rule defines the Gulf Coast 

Region to comprise four geographic 

areas: 

(1) In the Gulf Coast States, the coastal 

zones defined under section 304 of the 

Coastal Zone Management Act of 1972 

that border the Gulf of Mexico; 

(2) Land within the coastal zones 

described in paragraph (1) that is held 

in trust by, or the use of which is by law 

subject solely to the discretion of, the 

Federal Government or officers or agents 

of the Federal Government; 

(3) Any adjacent land, water, and 

watersheds, that are within 25 miles of 

the coastal zone described in paragraphs 

(1) and (2); and 

(4) All Federal waters in the Gulf of 

Mexico. 

Under paragraph 3, the Gulf Coast 

Region includes those parts of adjacent 

watersheds that extend up to, but no 

further than, 25 miles from the coastal 

zones. An activity is carried out in the 

Gulf Coast Region when, in the 

reasonable judgment of the entity 

applying for a grant, each severable part 

of the activity is primarily designed to 

restore or protect that geographic area. 

See 31 CFR 34.201–203. 

Section 34.104 (Expenditures) 

In the preamble to the comprehensive 

interim final rule, Treasury stated that it 

was deleting a sentence requiring grant 

recipients to minimize the time between 

receipt of funds and disbursement, 

because this requirement is addressed 

more completely in OMB’s Uniform 

Guidance. A commenter noted that the 

sentence was not deleted from the rule. 

Treasury has corrected this inadvertent 

error in the final rule. Grant recipients 

with questions about the application of 

OMB’s Uniform Guidance should direct 

them to the relevant Federal awarding 

agency. 

Section 34.200 (General) 

This section provides that a Gulf 

Coast State, coastal political 

subdivision, and coastal zone parish 

may use amounts available under the 

Direct Component and Spill Impact 

Component to satisfy the non-Federal 

cost-share of an activity that is eligible 

under §§ 34.201 and 34.203 and 

authorized by Federal law. Commenters 

questioned why a similar opportunity is 

not available for funds made available 

under the Comprehensive Plan 

Component and the Centers of 

Excellence Research Grants Program. 

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Federal Register / Vol. 80, No. 239 / Monday, December 14, 2015 / Rules and Regulations 77241 

The Act does not allow Comprehensive 

Plan Component funds or Centers of 

Excellence Research Grant funds to be 

used for satisfying the non-Federal costshare. Those allocations are subject to 

the general rule in OMB’s Uniform 

Guidance, 2 CFR 200.306, which states 

that a non-Federal cost share cannot be 

met with funds paid by the Federal 

government under a Federal award. 

Another commenter noted a provision 

in the Act stating that the use of trust 

fund amounts to satisfy the non-Federal 

share of an eligible activity ‘‘shall not 

affect the priority in which other 

Federal funds are allocated or 

awarded.’’ 33 U.S.C. 1331(t)(1)(N)(ii). 

The commenter requested that Treasury 

include this provision in its regulations. 

Treasury currently sees no need to 

elaborate on this statutory provision, 

which does not need a regulation to be 

effective. If a grant recipient believes 

that a Federal agency has allocated or 

awarded funds in violation of this 

provision, it should raise that concern 

with the agency providing assistance. 

Section 34.201 (Eligible Activities for 

the Direct Component) 

Treasury received several comments 

about whether particular activities are 

reimbursable under the Direct 

Component, such as costs for grant 

management staff and certain pre-award 

and planning activity costs. Grant 

applicants will find detailed 

information about allowable costs in 

OMB’s Uniform Guidance. In addition, 

grant applicants can consult information 

posted on Treasury’s RESTORE Act Web 

page, or contact Treasury’s Office of 

Gulf Coast Restoration for information 

about particular costs at restoreact@

treasury.gov. Other than a clarifying 

change to the description of planning 

assistance, there are no changes to this 

section. 

Section 34.203 (Eligible Activities for 

the Spill Impact Component) 

One commenter asserted that 

activities funded under the Spill Impact 

Component should focus primarily on 

ecosystem restoration. Treasury’s rule 

closely tracks the statute. The Act 

clearly provides that funds are available 

under the Spill Impact Component ‘‘for 

projects, programs, and activities that 

will improve the ecosystems or 

economy of the Gulf Coast region,’’ 

subject to certain criteria that are 

included in Treasury’s rule. Because 

Treasury’s rule is consistent with the 

Act, no change is necessary. 

Section 34.204 (Limitations on 

Administrative Costs and 

Administrative Expenses) 

One commenter, a member of the Gulf 

Coast Ecosystem Restoration Council, 

requested clarification on how state 

members of the Council can access 

amounts set aside for the Council’s 

administrative expenses. Treasury’s rule 

does not address this issue. The Council 

determines how it allocates funds for 

administrative expenses. Questions 

about how the Council allocates its 

funds should be directed to the Council. 

In a separate notice of proposed 

rulemaking, Treasury plans to propose 

an amendment to this section to change 

when the 3% limitation is applied to the 

Council. Under the Act, the Council 

cannot spend more than three percent of 

amounts it receives from the Trust Fund 

on administrative expenses. The current 

regulation states that the three percent 

limit is applied to the total amount of 

funds received by the Council under the 

Comprehensive Plan Component, 

beginning with the first fiscal year the 

Council receives funds through the end 

of the fourth, or most recent fiscal year, 

whichever is later. This approach limits 

the amounts available for administrative 

expenses to a percentage of amounts 

drawn down from the Trust Fund in a 

particular year, which may vary 

considerably. Because the Council 

requires more regular and predictable 

funding for its administrative expenses, 

Treasury will propose to cap the 

Council’s administrative expenses at 

three percent of amounts the Council 

receives under the Comprehensive Plan 

Component before termination of the 

Trust Fund. The notice of proposed 

rulemaking will include a forty-five day 

comment period. The current rule will 

remain in effect pending review of the 

public comments. 

Section 34.302 (Allocation of Funds— 

Direct Component) 

Treasury amended this section to add 

the allocations for Louisiana parishes 

that Treasury published as an interim 

final rule at 79 FR 61236 (Oct. 10, 2014). 

The allocations did not change. 

Section 34.303 (Application 

Procedure—Direct Component) 

A commenter requested clarification 

about Treasury’s application and 

disbursement process. Treasury 

published detailed guidance and 

application processes and posted 

materials on Treasury’s RESTORE Act 

Web page, available at http://

www.treasury.gov/services/restore-act/

Pages/default.aspx. Treasury also 

provided on-site training to the Gulf 

Coast States, eligible Florida counties, 

and eligible Louisiana parishes. 

Applicants with questions about these 

matters should contact Treasury’s Office 

of Gulf Coast Restoration at restoreact@

treasury.gov. 

One commenter, a state, requested 

clarification about the public review 

and comment process required in 31 

CFR 34.303(b)(8). The commenter stated 

that it can provide adequate 

opportunities for public review and 

comment, but cannot guarantee that the 

public will fully participate in this 

process. Treasury’s rule does not require 

a state to ensure full participation in the 

public comment process. The rule is 

clear that a state must make its 

Multiyear Implementation Plan 

available for public review and 

comment ‘‘in a manner calculated to 

obtain broad-based participation from 

individuals, businesses, Indian tribes, 

and non-profit organizations. . . .’’ 

Treasury cannot describe in detail the 

steps that will satisfy this requirement 

in every case, as the steps may vary for 

each state, county, or parish. For 

example, if a large segment of the 

affected population does not have 

Internet access, or does not speak 

English, a state may need to employ 

other methods to notify the affected 

population of its plans and the 

opportunity to provide comment, such 

as providing reasonable access to public 

meetings and presentations in language 

other than English. 

One commenter requested guidance 

about whether modifications to a 

Multiyear Implementation Plan require 

a public review and comment period for 

Multiyear Implementation Plans. In 

response to this comment, the final rule 

now requires the same public review 

and comment period for material 

changes as for an accepted Multiyear 

Implementation Plan. Material 

modifications can only be adopted after 

consideration of meaningful public 

comment. Applicants with questions 

about which modifications are material 

should contact Treasury’s Office of Gulf 

Coast Restoration. 

Section 34.305 (Use of Funds—Direct 

Component) 

One commenter requested that 

Treasury add a sentence to § 34.305, as 

well as other parts of the rule, requiring 

a written justification for all sole source 

procurements and preferences given to 

individuals and companies. The 

commenter also asked that Treasury 

incorporate preferences for small and 

minority owned businesses. OMB’s 

Uniform Guidance has an extensive 

discussion on the procurement 

requirements applying to Federal grants, 

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77242 Federal Register / Vol. 80, No. 239 / Monday, December 14, 2015 / Rules and Regulations 

including requirements for competition 

and language requiring affirmative steps 

to benefit small and minority owned 

businesses. 2 CFR 200.319–200.321. The 

procurement requirements in OMB’s 

Uniform Guidance apply to RESTORE 

Act grants. Therefore, the final rule has 

not been amended to address this 

comment. 

Some commenters discussed the need 

for activities that improve the resiliency 

of communities, such as funds for 

workforce development and job 

creation. While the Act does not require 

states, counties, or parishes to fund 

these activities, workforce development 

and job creation are eligible activities 

for funding under the Direct Component 

and the Spill Impact Component. The 

Act’s legislative history explains that 

workforce development ‘‘is intended to 

include non-profit, university, and 

community college-based workforce, 

career and technical training programs. 

This would also include the 

identification of projects, research, 

programs and partnerships with federal, 

state and local workforce agencies, 

industry and local stakeholders from 

economically and socially 

disadvantaged communities.’’ S. Rep. 

No. 112–100, at 8 (2011). This list of 

activities, while not exclusive, describes 

the kinds of activities that are eligible 

for funding. Commenters with 

suggestions for specific projects should 

contact the states, counties, and 

parishes that are developing Multiyear 

Implementation Plans and Spill Impact 

State Expenditure Plans. 

During implementation of the 

comprehensive interim final rule, 

Treasury received questions about the 

availability of funds for county and 

local parks. One eligible activity under 

the Direct Component and Spill Impact 

Component is ‘‘Improvements to or on 

State parks located in coastal areas 

affected by the Deepwater Horizon oil 

spill.’’ 33 U.S.C. 1321(t)(1)(B)(i)(V). 

Treasury does not interpret this 

provision to apply to county and local 

parks. However, improvements to 

county and local parks, such as 

activities that restore and protect natural 

resources under 33 U.S.C. 

1321(t)(1)(B)(i)(I), may fall under other 

eligible activities. 

Section 34.404 (Comprehensive Plan 

Component) 

Treasury has made a clarifying change 

to this section to indicate that assignees 

must submit reports as prescribed by the 

Council or Treasury, and the Council 

must submit reports as prescribed by 

Treasury. 

Section 34.405 (Recordkeeping— 

Comprehensive Plan Component) 

Treasury has made a clarifying change 

to this section to add that the Council 

must make its records concerning the 

activities of assignees available to 

Treasury, including the Treasury 

Inspector General. This provision will 

assist Treasury in gathering the 

information it needs to carry out its 

supplemental compliance functions 

under 31 CFR 34.804. 

Section 34.503 (State Expenditure 

Plans—Spill Impact Component) 

A commenter requested clarification 

about the public review and comment 

processes for State Expenditure Plans 

described in § 34.503(g). The 

commenter, who submitted a similar 

comment on § 34.303, is concerned that 

a state cannot ensure that the public 

will fully participate in the public 

review and comment process. As 

described above, states are not expected 

to guarantee full public participation in 

the public review and comment process. 

Treasury’s rule is clear that states must 

use methods ‘‘calculated to obtain 

broad-based participation from 

individuals, businesses, Indian tribes, 

and non-profit organizations.’’ Treasury 

cannot describe in detail the methods 

that will satisfy this requirement in 

every case, as they may depend on the 

state and the impacted region or 

population. 

Another commenter asked Treasury to 

clarify the public review and comment 

requirements that apply to 

modifications of a State Expenditure 

Plan. The final rule now states that 

material modifications are subject to the 

same public review and comment 

requirements, as well as other 

requirements, that apply to the original 

plan. States with questions about which 

modifications are material should 

contact the Council for guidance. 

Section 34.506 (Reports—Spill Impact 

Component) 

Treasury has made a clarifying change 

to this section to indicate that the 

Council must submit reports as 

prescribed by Treasury, in order to 

assist Treasury in fulfilling its 

supplemental compliance functions 

under 31 CFR 34.804. 

Section 34.507 (Recordkeeping—Spill 

Impact Component) 

Consistent with changes made to 

section 34.405, Treasury has amended 

this section to add that the Council must 

make available its records concerning 

the activities of recipients to Treasury, 

including the Treasury Inspector 

General. 

Section 34.703 (Application 

Procedure—Centers of Excellence 

Research Grants Program) 

One state commenter asked Treasury 

to clarify that each state will receive its 

full allocation provided by the Act. 

Treasury’s regulations are already clear 

that each state will receive an equal 

share of amounts made available under 

the Centers of Excellence Research 

Grants Program. To receive its share, 

each state will apply to Treasury for a 

grant and specify how the funds will be 

used, a standard requirement for all 

Federal grants. Requiring states to 

identify how they will use Federal 

funds is necessary to assist the Federal 

awarding agency in performing 

oversight, one of the grant management 

responsibilities described in OMB’s 

Uniform Guidance. 

During implementation of the 

comprehensive interim final rule, 

Treasury received questions about the 

public notice requirements applying to 

the rules and policies for the Centers of 

Excellence Research Grants Program. 

Treasury’s regulation requires each state 

to describe the rules and policies for 

grants it will issue to subrecipients. 

Each state also must demonstrate the 

rules and policies that became effective 

after publication of the comprehensive 

interim final rule were available for 

public review and comment for a 

minimum of 45 days. Many states have 

longstanding rules and policies that 

generally apply to grant programs, 

including competitive project selection 

and conflict of interest policies. 

Treasury’s regulation does not require 

states to seek public comment on rules 

and policies that were effective prior to 

publication of the comprehensive 

interim final rule. 

Section 34.802—(Certifications) 

One commenter, a state, noted that 

the certification in § 34.802(c) appears 

to require that each activity be selected 

after consideration of comments from a 

diverse cross-section of the public. The 

commenter stated that it can provide 

opportunities for public review and 

comment, but it cannot guarantee that 

all segments of the public will 

participate. Treasury agrees with this 

comment, and has amended the 

certification to be consistent with 

requirements in §§ 34.303(b)(8) and 

34.503(g). The amended certification 

requires grant recipients to certify that 

each activity is part of a plan that was 

made available for public review and 

comment in a manner calculated to 

obtain broad-based participation from 

individuals, businesses, Indian tribes, 

and nonprofit organizations, and that 

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Federal Register / Vol. 80, No. 239 / Monday, December 14, 2015 / Rules and Regulations 77243 

the activity was selected after 

consideration of meaningful input from 

the public, as described in the 

recipient’s grant application. 

Treasury has also amended the 

certification at § 34.803(a) to conform 

more closely to the language of the 

statute, and to make clear that the 

certification can apply to planning 

activities as well as activities that carry 

out the restoration or protection of the 

Gulf Coast Region. 

Section 34.803 (Conditions) 

In the preamble to the comprehensive 

interim final rule, Treasury stated that 

grants must conform to the requirements 

in OMB’s Uniform Guidance and other 

Federal laws and policies on grants. 

These requirements include reports on 

how grants funds were used. To avoid 

any inconsistency between these 

requirements and the reporting 

requirements in § 34.803(e), Treasury is 

deleting certain details that were listed 

in the comprehensive interim final rule. 

Section 34.804 (Noncompliance) 

Two commenters suggested that 

Treasury impose penalties on Council 

members that violate the Act or 

Treasury regulations. Because the Act 

does not authorize Treasury to impose 

penalties, the final rule does not adopt 

this suggestion. 

III. Procedural Requirements 

A. Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) generally requires 

agencies to prepare a regulatory 

flexibility analysis of any rule subject to 

notice and comment rulemaking 

requirements under the Administrative 

Procedure Act or any other statute, 

unless the agency certifies that the rule 

will not have a significant economic 

impact on a substantial number of small 

entities. In the preamble to the 

comprehensive interim final rule, 

Treasury certified that the rule will not 

have a significant economic impact on 

a substantial number of small entities. 

Small entities will incur costs to 

develop the plans and projects 

described in the rule, but these costs 

arise from requirements in the 

RESTORE Act and not Treasury 

regulations. Treasury did not receive 

any comments in response to the 

comprehensive interim rule on the 

impact to small entities and there are no 

changes in the final rule that warrant a 

change in this certification. 

Accordingly, Treasury certifies that the 

final rule will not have a significant 

impact on a substantial number of small 

entities, and no regulatory flexibility 

analysis is required. 

B. Paperwork Reduction Act 

The collections of information 

contained in the comprehensive interim 

final rule were submitted to the Office 

of Management and Budget for review 

in accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

3507(d)), and approved under control 

number 1505–0250. The final rule does 

not contain any new collections of 

information. Under the Paperwork 

Reduction Act, an agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information unless it displays a valid 

OMB control number. 

C. Regulatory Planning and Review 

(Executive Orders 12866 and 13563) 

The rule affects those entities in the 

five Gulf Coast States that are eligible to 

receive funding under the RESTORE 

Act, and is focused on the 

environmental restoration and economic 

recovery of the Gulf Coast Region in the 

aftermath of the Deepwater Horizon oil 

spill. The amounts made available from 

the trust fund will continue efforts that 

provide for the long-term health of the 

ecosystems and economy of this region. 

In accordance with Executive Order 

12866, as supplemented by Executive 

Order 13563, OMB has reviewed this 

regulation. This rule finalizes without 

significant change a comprehensive 

interim final rule published on August 

15, 2014 that was designated as 

economically significant for purposes of 

Executive Order 12866. The Department 

adopts without revision the regulatory 

impact assessment published with the 

comprehensive interim final rule at 79 

FR 48052 because this final rule does 

not adopt changes that require updates 

in the analysis. In accordance with 

Executive Order 12866, as 

supplemented by Executive Order 

13563, this rule is designated as 

significant and OMB has reviewed this 

regulation. 

D. Congressional Review Act 

The Congressional Review Act, 5 

U.S.C. 801 et seq., generally provides 

that before a rule may take effect, the 

agency promulgating the rule must 

submit a rule report, which includes a 

copy of the rule, to each House of the 

Congress and to the Comptroller General 

of the United States. A major rule 

cannot take effect until 60 days after it 

is published in the Federal Register. 

This action is a ‘‘major rule’’ as defined 

by 5 U.S.C. 804(2) and will become 

effective 60 days after publication. 

E. Unfunded Mandates Reform Act 

The Unfunded Mandates Act of 1995 

(2 U.S.C. 1531–1538) requires federal 

agencies to assess the effects of their 

regulatory actions. In particular, the Act 

addresses actions that may result in the 

expenditure by a state, local, or tribal 

government, in the aggregate, or by the 

private sector of $100,000,000 (adjusted 

for inflation) or more in any one year. 

Treasury believes that the regulatory 

impact assessment referenced in this 

preamble provides the analysis required 

by the Unfunded Mandates Act. 

List of Subjects in 31 CFR Part 34 

Coastal zone, Fisheries, Grant 

programs, Grants administration, 

Intergovernmental relations, Marine 

resources, Natural resources, Oil 

pollution, Research, Science and 

technology, Trusts and trustees, 

Wildlife. 

For the reasons set forth in the 

preamble, the Department of the 

Treasury amends 31 CFR subtitle A by 

revising part 34 to read as follows: 

PART 34—RESOURCES AND 

ECOSYSTEMS SUSTAINABILITY, 

TOURIST OPPORTUNITIES, AND 

REVIVED ECONOMIES OF THE GULF 

COAST STATES 

Subpart A—General Provisions 

Sec. 

34.1 Purpose. 

34.2 Definitions. 

Subpart B—Trust Fund 

34.100 The Trust Fund. 

34.101 Investments. 

34.102 Interest earned. 

34.103 Allocation of funds. 

34.104 Expenditures. 

34.105 Waiver. 

Subpart C—Eligible Activities for the 

Section 311(t) Gulf RESTORE Program 

Components 

34.200 General. 

34.201 Eligible activities for the Direct 

Component. 

34.202 Eligible activities for the 

Comprehensive Plan Component. 

34.203 Eligible activities for the Spill 

Impact Component. 

34.204 Limitations on administrative costs 

and administrative expenses. 

34.205 Council’s audited financial 

statements and audits. 

Subpart D—Gulf RESTORE Program— 

Direct Component 

34.300 General. 

34.301 Responsibility for administration— 

Direct Component. 

34.302 Allocation of funds—Direct 

Component. 

34.303 Application procedure—Direct 

Component. 

34.304 Grant award process—Direct 

Component. 

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34.305 Use of funds—Direct Component. 

34.306 Reports—Direct Component. 

34.307 Recordkeeping—Direct Component. 

34.308 Audits—Direct Component. 

Subpart E—Gulf RESTORE Program— 

Comprehensive Plan Component 

34.400 General. 

34.401 Responsibility for administration— 

Comprehensive Plan Component. 

34.402 Grant administration— 

Comprehensive Plan Component. 

34.403 Use of funds—Comprehensive Plan 

Component. 

34.404 Reports—Comprehensive Plan 

Component. 

34.405 Recordkeeping—Comprehensive 

Plan Component. 

34.406 Audits—Comprehensive Plan 

Component. 

Subpart F—Gulf RESTORE Program—Spill 

Impact Component 

34.500 General. 

34.501 Responsibility for administration— 

Spill Impact Component. 

34.502 Allocation of funds—Spill Impact 

Component. 

34.503 State Expenditure Plans—Spill 

Impact Component. 

34.504 Grant administration—Spill Impact 

Component. 

34.505 Use of funds—Spill Impact 

Component. 

34.506 Reports—Spill Impact Component. 

34.507 Recordkeeping—Spill Impact 

Component. 

34.508 Audits—Spill Impact Component. 

Subpart G—NOAA RESTORE Act Science 

Program 

34.600 General. 

34.601 Responsibility for administration— 

NOAA RESTORE Act Science Program. 

34.602 Use of funds and eligible activities— 

NOAA RESTORE Act Science Program. 

34.603 Limitations on activities—NOAA 

RESTORE Act Science Program. 

34.604 Limitations on administrative 

expenses—NOAA RESTORE Act Science 

Program. 

34.605 Reports—NOAA RESTORE Act 

Science Program. 

34.606 Recordkeeping—NOAA RESTORE 

Act Science Program. 

34.607 Audits—NOAA RESTORE Act 

Science Program. 

Subpart H—Centers of Excellence Research 

Grants Program 

34.700 General. 

34.701 Responsibility for administration— 

Centers of Excellence Research Grants 

Program. 

34.702 Allocation of funds—Centers of 

Excellence Research Grants Program. 

34.703 Application procedure—Centers of 

Excellence Research Grants Program. 

34.704 Use of funds and eligible activities— 

Centers of Excellence Research Grants 

Program. 

34.705 Ineligible activities—Centers of 

Excellence Research Grants Program. 

34.706 Reports—Centers of Excellence 

Research Grants Program. 

34.707 Recordkeeping—Centers of 

Excellence Research Grants Program. 

34.708 Audits—Centers of Excellence 

Research Grants Program. 

Subpart I—Agreements 

34.800 General. 

34.801 Grant agreements. 

34.802 Certifications. 

34.803 Conditions. 

34.804 Noncompliance. 

34.805 Treasury Inspector General. 

Authority: 31 U.S.C. 301; 31 U.S.C. 321; 

33 U.S.C. 1251 et seq. 

Subpart A—General Provisions 

§ 34.1 Purpose. 

This part describes policies and 

procedures applicable to the following 

programs authorized under the 

Resources and Ecosystems 

Sustainability, Tourist Opportunities, 

and Revived Economies of the Gulf 

Coast States Act of 2012 (RESTORE 

Act). 

(a) The Gulf RESTORE Program is 

authorized under section 311(t) of the 

Federal Water Pollution Control Act (33 

U.S.C. 1321(t)), as amended by the 

RESTORE Act, and includes the 

following components: 

(1) Direct Component (subpart D of 

this part), administered by the 

Department of the Treasury. 

(2) Comprehensive Plan Component 

(subpart E of this part), administered by 

the Gulf Coast Ecosystem Restoration 

Council. 

(3) Spill Impact Component (subpart 

F of this part), administered by the Gulf 

Coast Ecosystem Restoration Council. 

(b) NOAA RESTORE Act Science 

Program (subpart G of this part) is 

administered by the National Oceanic 

and Atmospheric Administration, and 

authorized by the RESTORE Act, section 

1604, 33 U.S.C. 1321 note. 

(c) Centers of Excellence Research 

Grants Program (subpart H of this part) 

is administered by the Department of 

the Treasury, and authorized by the 

RESTORE Act, section 1605, 33 U.S.C. 

1321 note. 

§ 34.2 Definitions. 

As used in this part: 

Act or RESTORE Act means the 

Resources and Ecosystems 

Sustainability, Tourist Opportunities, 

and Revived Economies of the Gulf 

Coast States Act of 2012. 

Activity means an activity, project, or 

program, including research and 

monitoring, eligible for funding under 

the Act. 

Administrative costs means those 

indirect costs for administration 

incurred by the Gulf Coast States, 

coastal political subdivisions, and 

coastal zone parishes that are allocable 

to activities authorized under the Act. 

Administrative costs do not include 

indirect costs that are identified 

specifically with, or readily assignable 

to, facilities as defined in 2 CFR 

200.414. 

Administrative expenses means those 

expenses incurred for administration by 

the Council or NOAA, including 

expenses for general management 

functions, general ledger accounting, 

budgeting, human resource services, 

general procurement services, and 

general legal services. Administrative 

expenses do not include expenses that 

are identified specifically with, or 

readily assignable to: 

(1) Facilities; 

(2) Eligible projects, programs, or 

planning activities; 

(3) Activities related to grant 

applications, awards, audit 

requirements, or post-award 

management, including payments and 

collections; 

(4) The Council’s development, 

publication, and implementation of the 

Comprehensive Plan and any 

subsequent amendments; 

(5) The Council’s development and 

publication of regulations and 

procedures for implementing the Spill 

Impact Component, and the review of 

State Expenditure Plans submitted 

under the Spill Impact Component; 

(6) Preparation of reports required by 

the Act; 

(7) Establishment and operation of 

advisory committees; or 

(8) Collection and consideration of 

scientific and other research associated 

with restoration of the Gulf Coast 

ecosystem. 

Alabama Gulf Coast Recovery Council 

means the entity identified in section 

311(t)(1)(F)(i) of the Federal Water 

Pollution Control Act, as amended by 

the RESTORE Act. 

Assignee means a member of the Gulf 

Coast Ecosystem Restoration Council 

who has been assigned primary 

authority and responsibility for a project 

or program included in the 

Comprehensive Plan through a grant or 

interagency agreement. 

Best available science means science 

that maximizes the quality, objectivity, 

and integrity of information, including 

statistical information; uses peerreviewed and publicly available data; 

and clearly documents and 

communicates risks and uncertainties in 

the scientific basis for such projects. 

Centers of Excellence Research Grants 

Program means the program authorized 

by section 1605 of the Act. 

Coastal political subdivision means 

any local political jurisdiction that is 

immediately below the state level of 

government, including a county, parish, 

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or borough, with a coastline that is 

contiguous with any portion of the 

United States Gulf of Mexico. The term 

includes any of the disproportionately 

affected counties and 

nondisproportionately impacted 

counties in Florida, as defined below. 

Coastal zone parishes means the 

parishes of Ascension, Assumption, 

Calcasieu, Cameron, Iberia, Jefferson, 

Lafourche, Livingston, Orleans, 

Plaquemines, St. Bernard, St. Charles, 

St. James, St. John the Baptist, St. 

Martin, St. Mary, St. Tammany, 

Tangipahoa, Terrebonne, and Vermilion 

in the State of Louisiana. 

Comprehensive Plan Component 

means the component of the Gulf 

RESTORE Program authorized by 

section 311(t)(2) of the Federal Water 

Pollution Control Act, as added by 

section 1603 of the Act, in which funds 

are provided through the Council, in 

accordance with a plan developed by 

the Council, to entities to carry out the 

purposes of the Act. 

Council means the Gulf Coast 

Ecosystem Restoration Council, an 

independent entity in the Federal 

Government whose members are the 

Governors of the Gulf Coast States; the 

Secretaries of Agriculture, the Army, 

Commerce, and the Interior; the head of 

the department in which the Coast 

Guard is operating, and the 

Administrator of the Environmental 

Protection Agency (or their designees at 

the level of Assistant Secretary or the 

equivalent). 

Deepwater Horizon oil spill means the 

blowout and explosion of the mobile 

offshore drilling unit Deepwater 

Horizon that occurred on April 20, 

2010, and resulting hydrocarbon 

releases into the environment. 

Direct Component means the 

component of the Gulf RESTORE 

Program authorized by section 311(t)(1) 

of the Federal Water Pollution Control 

Act, as added by section 1603 of the 

Act, in which Gulf Coast States, coastal 

zone parishes, disproportionately 

affected counties, and 

nondisproportionately impacted 

counties are provided funds directly by 

Treasury through grants to carry out the 

purposes of the Act. 

Disproportionately affected counties 

means the counties of Bay, Escambia, 

Franklin, Gulf, Okaloosa, Santa Rosa, 

Wakulla, and Walton in the State of 

Florida. 

Federal Water Pollution Control Act 

means 33 U.S.C. 1251 et seq. 

Gulf Coast Region means: 

(1) In the Gulf Coast States, the coastal 

zones defined under section 304 of the 

Coastal Zone Management Act of 1972 

that border the Gulf of Mexico; 

(2) Land within the coastal zones 

described in paragraph (1) of this 

definition that is held in trust by, or the 

use of which is by law subject solely to 

the discretion of, the Federal 

Government or officers or agents of the 

Federal Government; 

(3) Any adjacent land, water, and 

watersheds, that are within 25 miles of 

the coastal zone described in paragraphs 

(1) and (2) of this definition; and 

(4) All Federal waters in the Gulf of 

Mexico. 

Gulf Coast State means any of the 

States of Alabama, Florida, Louisiana, 

Mississippi, and Texas. 

Gulf Coast State entity means a party 

that carries out the duties of a state for 

the Centers of Excellence Research 

Grants Program under § 34.702. 

Infrastructure means the public 

facilities or systems needed to support 

commerce and economic development. 

These installations and facilities span a 

wide range, including highways, 

airports, roads, buildings, transit 

systems, port facilities, railways, 

telecommunications, water and sewer 

systems, public electric and gas utilities, 

levees, seawalls, breakwaters, major 

pumping stations, and flood gates. 

Infrastructure encompasses new 

construction, upgrades and repairs to 

existing facilities or systems, and 

associated land acquisition and 

planning. 

Multiyear Implementation Plan means 

the plan submitted by entities eligible 

for funding directly from Treasury 

under the Direct Component, and 

described at § 34.303. 

NOAA means the National Oceanic 

and Atmospheric Administration. 

NOAA RESTORE Act Science 

Program means the program authorized 

by section 1604 of the Act. 

Nondisproportionately impacted 

counties means the counties of 

Charlotte, Citrus, Collier, Dixie, 

Hernando, Hillsborough, Jefferson, Lee, 

Levy, Manatee, Monroe, Pasco, Pinellas, 

Sarasota, and Taylor in the State of 

Florida. 

Pass-through entity means a nonFederal entity that provides a subaward 

to a subrecipient to carry out part of a 

program under the Act. 

Planning assistance means data 

gathering, studies, modeling, analysis 

and other tasks required to prepare 

plans for eligible activities under 

§ 34.201(a) through (i), including 

environmental review and compliance 

tasks and architectural and engineering 

studies. Planning assistance also means 

one-time preparations that will allow 

the recipient to establish systems and 

processes needed to review grant 

applications, award grants, monitor 

grants after award, and audit 

compliance with respect to eligible 

activities under § 34.201 in a Multiyear 

Implementation Plan or State 

Expenditure Plan. 

Recipient means a non-Federal entity 

that receives a Federal award directly 

from a Federal awarding agency to carry 

out an activity under the Act. As used 

in these regulations, a recipient also 

includes a pass-through entity. The term 

recipient does not include 

subrecipients. 

Spill Impact Component means the 

component of the Gulf RESTORE 

Program authorized by section 311(t)(3) 

of the Federal Water Pollution Control 

Act, as added by section 1603 of the 

Act, in which Gulf Coast States are 

provided funds by the Council 

according to a formula that the Council 

establishes by regulation, using criteria 

listed in the Act. 

State Expenditure Plan means the 

plan that each Gulf Coast State must 

submit to the Council for the 

expenditure of amounts disbursed 

under the Spill Impact Component, and 

described at § 34.503. 

Subrecipient means a non-Federal 

entity that receives a subaward from a 

recipient to carry out an activity under 

the Act. 

Treasury means the U.S. Department 

of the Treasury, the Secretary of the 

Treasury, or his/her designee. 

Trust Fund means the Gulf Coast 

Restoration Trust Fund. 

Subpart B—Trust Fund 

§ 34.100 The Trust Fund. 

Treasury will deposit into the Trust 

Fund an amount equal to 80 percent of 

all administrative and civil penalties 

paid after July 6, 2012 by responsible 

parties in connection with the explosion 

on, and sinking of, the mobile offshore 

drilling unit Deepwater Horizon 

pursuant to a court order, negotiated 

settlement, or other instrument under 

section 311 of the Federal Water 

Pollution Control Act. After these 

administrative and civil penalties have 

been deposited into the Trust Fund, the 

Trust Fund will terminate on the date 

all amounts owed to the Trust Fund 

have been returned to the Trust Fund, 

and all amounts in the Trust Fund have 

been expended. 

§ 34.101 Investments. 

The Secretary of the Treasury will 

invest such amounts in the Trust Fund 

that are not, in the judgment of the 

Secretary, required to meet needs for 

current withdrawals. The Secretary may 

invest in interest-bearing obligations of 

the United States, having maturities 

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suitable to the needs of the Trust Fund 

as determined by the Secretary. These 

obligations will bear interest at rates 

described in 31 U.S.C. 9702, unless the 

Secretary determines that such rates are 

unavailable for obligations with suitable 

maturities. In that event, the Secretary 

will select obligations of the United 

States bearing interest at rates 

determined by the Secretary, taking into 

consideration current market yields on 

outstanding marketable obligations of 

the United States of comparable 

maturities. 

§ 34.102 Interest earned. 

Interest earned on Trust Fund 

investments will be available as 

described in § 34.103(b). 

§ 34.103 Allocation of funds. 

The amounts in the Trust Fund are 

allocated among the programs in § 34.1. 

(a) Available funds in the Trust Fund, 

other than interest, are allocated as 

follows: 

(1) Thirty-five percent in equal shares 

for the Gulf Coast States to be used for 

the Direct Component of the Gulf 

RESTORE Program. Section 34.302 

describes the allocation for each Gulf 

Coast State. 

(2) Thirty percent for the Council to 

be used for the Comprehensive Plan 

Component of the Gulf RESTORE 

Program. 

(3) Thirty percent for formula 

distribution to Gulf Coast States to be 

used for the Spill Impact Component of 

the Gulf RESTORE Program. 

(4) Two and one-half percent to be 

used for the NOAA RESTORE Act 

Science Program. 

(5) Two and one-half percent in equal 

shares for the Gulf Coast States to be 

used for the Centers of Excellence 

Research Grants Program. 

(b) Within ten days of the close of a 

Federal fiscal year, available funds 

equal to the interest earned on the Trust 

Fund investments will be allocated, as 

follows: 

(1) Twenty-five percent to be used for 

the NOAA RESTORE Act Science 

Program. 

(2) Twenty-five percent for the 

Centers of Excellence Research Grants 

Program. 

(3) Fifty percent for the 

Comprehensive Plan Component of the 

Gulf RESTORE Program. 

§ 34.104 Expenditures. 

Subject to limitations in the Act and 

these regulations, amounts in the Trust 

Fund will be available for the direct and 

indirect expenses of eligible activities 

without fiscal year limitation. 

§ 34.105 Waiver. 

To the extent not inconsistent with 

applicable law, Treasury may waive or 

modify a requirement in the regulations 

in this part in a single case or class of 

cases if the Secretary determines, in his 

or her sole discretion, that the 

requirement is not necessary for the 

deposit of amounts into, or the 

expenditure of amounts from, the Trust 

Fund. Treasury will provide public 

notice of any waivers or modifications 

granted that materially change a 

regulatory requirement. 

Subpart C—Eligible Activities for the 

Section 311(t) Gulf RESTORE Program 

Components 

§ 34.200 General. 

This subpart describes policies and 

procedures regarding eligible activities 

applicable to the Direct Component, 

Comprehensive Plan Component, and 

Spill Impact Component of the Gulf 

RESTORE Program. Subparts D, E, F, 

and I of this part describe additional 

requirements that must be met before an 

activity can receive funding. 

(a) Trust Fund amounts may be used 

to carry out an activity in whole or in 

part only if the following requirements 

are met: 

(1) Costs must comply with 

administrative requirements and cost 

principles in applicable Federal laws 

and policies on grants. 

(2) The activity must meet the 

eligibility requirements of the Gulf 

RESTORE Program as defined in 

§ 34.201, § 34.202, or § 34.203, 

according to component. 

(3) Activities funded through the 

Direct Component, Comprehensive Plan 

Component, and Spill Impact 

Component must not be included in any 

claim for compensation presented after 

July 6, 2012, to the Oil Spill Liability 

Trust Fund authorized by 26 U.S.C. 

9509. 

(b) A Gulf Coast State, coastal 

political subdivision, and coastal zone 

parish may use funds available under 

the Direct Component or Spill Impact 

Component to satisfy the non-Federal 

cost-share of an activity that is eligible 

under §§ 34.201 and 34.203 and 

authorized by Federal law. 

§ 34.201 Eligible activities for the Direct 

Component. 

The following activities are eligible 

for funding under the Direct 

Component. Activities in paragraphs (a) 

through (g) of this section are eligible for 

funding to the extent they are carried 

out in the Gulf Coast Region. Direct 

Component activities are carried out in 

the Gulf Coast Region when, in the 

reasonable judgment of the entity 

applying to Treasury for a grant, each 

severable part of the activity is primarily 

designed to restore or protect that 

geographic area. Applicants must 

demonstrate that the activity will be 

carried out in the Gulf Coast Region 

when they apply for a grant. Activities 

designed to protect or restore natural 

resources must be based on the best 

available science. All Direct Component 

activities must be included in and 

conform to the description in the 

Multiyear Implementation Plan required 

by § 34.303. 

(a) Restoration and protection of the 

natural resources, ecosystems, fisheries, 

marine and wildlife habitats, beaches, 

and coastal wetlands of the Gulf Coast 

Region. 

(b) Mitigation of damage to fish, 

wildlife, and natural resources. 

(c) Implementation of a Federallyapproved marine, coastal, or 

comprehensive conservation 

management plan, including fisheries 

monitoring. 

(d) Workforce development and job 

creation. 

(e) Improvements to or on state parks 

located in coastal areas affected by the 

Deepwater Horizon oil spill. 

(f) Infrastructure projects benefitting 

the economy or ecological resources, 

including port infrastructure. 

(g) Coastal flood protection and 

related infrastructure. 

(h) Promotion of tourism in the Gulf 

Coast Region, including promotion of 

recreational fishing. 

(i) Promotion of the consumption of 

seafood harvested from the Gulf Coast 

Region. 

(j) Planning assistance. Eligible 

entities under § 34.302 may apply for 

planning assistance grants to fund 

preparation and amendment of the 

Multiyear Implementation Plan. 

(k) Administrative costs. 

§ 34.202 Eligible activities for the 

Comprehensive Plan Component. 

The Council may expend funds that 

are available under the Comprehensive 

Plan Component for eligible activities 

under 33 U.S.C. 1321(t)(2) and (3), 

including the following: 

(a) The Council may expend funds to 

carry out activities in the Gulf Coast 

Region that are included in the 

Comprehensive Plan, as described in 33 

U.S.C. 1321(t)(2). An activity selected by 

the Council is carried out in the Gulf 

Coast Region when, in the reasonable 

judgment of the Council, each severable 

part of the activity is primarily designed 

to restore or protect that geographic 

area. The Council must document the 

basis for its judgment when it selects the 

activity. 

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(b) The Council may expend funds to 

develop and publish the proposed and 

initial Comprehensive Plans, and to 

implement, amend, and update the 

Comprehensive Plan as required by the 

Act or as necessary. 

(c) The Council may expend funds to 

prepare annual reports to Congress, and 

other reports and audits required by the 

Act, these regulations, and other Federal 

law. 

(d) The Council may expend funds to 

establish and operate one or more 

advisory committees as may be 

necessary to assist the Council. 

(e) The Council may expend funds to 

collect and consider scientific and other 

research associated with restoration of 

the Gulf Coast ecosystem, including 

research, observation, and monitoring. 

(f) Administrative expenses. 

§ 34.203 Eligible activities for the Spill 

Impact Component. 

Activities eligible for funding under 

the Spill Impact Component must meet 

the eligibility criteria in § 34.201(a) 

through (k), as well as the following: 

(a) The activities must be included in 

and conform to the description in a 

State Expenditure Plan required in 

§ 34.503 and approved by the Council. 

State entities may apply for a grant from 

the total amount allocated to that state 

under the Spill Impact Component 

before the Council has approved the 

State Expenditure Plan to fund eligible 

activities that are necessary to develop 

and submit that plan. 

(b) The activities included in the State 

Expenditure Plan must contribute to the 

overall economic and ecological 

recovery of the Gulf Coast. 

(c) Activities listed in § 34.201(a) 

through (g) are eligible for funding from 

the Spill Impact Component to the 

extent they are carried out in the Gulf 

Coast Region. For purposes of this 

component, an activity is carried out in 

the Gulf Coast Region when, in the 

reasonable judgment of the entity 

developing the State Expenditure Plan 

under § 34.503, each severable part of 

the activity is primarily designed to 

restore or protect that geographic area. 

State Expenditure Plans must include a 

demonstration that activities in the plan 

will be carried out in the Gulf Coast 

Region. 

§ 34.204 Limitations on administrative 

costs and administrative expenses. 

(a) Of the amounts received by a Gulf 

Coast State, coastal political 

subdivision, or coastal zone parish in a 

grant from Treasury under the Direct 

Component, or in a grant from the 

Council under the Comprehensive Plan 

Component or Spill Impact Component, 

not more than three percent may be 

used for administrative costs. The three 

percent limit is applied to the total 

amount of funds received by a recipient 

under each grant. The three percent 

limit does not apply to the 

administrative costs of subrecipients. 

All subrecipient costs are subject to the 

cost principles in Federal laws and 

policies on grants. 

(b) Of the amounts received by the 

Council under the Comprehensive Plan 

Component, not more than three percent 

may be used for administrative 

expenses. The three percent limit is 

applied to the total amount of funds 

received by the Council, beginning with 

the first fiscal year the Council receives 

funds through the end of the fourth, or 

most recent fiscal year, whichever is 

later. 

§ 34.205 Council’s audited financial 

statements and audits. 

(a) Not later than December 1, 2014, 

and each year thereafter, the Council 

must prepare and submit to the 

Secretary of the Treasury an audited 

financial statement for the preceding 

Federal fiscal year, covering all accounts 

and associated activities of the Council. 

(b) Each audited financial statement 

under this section must reflect: 

(1) The overall financial position of 

the accounts and activities covered by 

the statement, including assets and 

liabilities thereof. 

(2) Results of operations of the 

Council. 

(c) The financial statements must be 

prepared in accordance with the form 

and content of the financial statements 

prescribed by the Director of the Office 

of Management and Budget for 

executive agencies pursuant to 31 U.S.C. 

3515, consistent with applicable 

accounting and financial reporting 

principles, standards, and requirements. 

(d) The Treasury Inspector General 

may conduct audits and reviews of the 

Council’s accounts and activities as the 

Inspector General deems appropriate. 

Subpart D—Gulf RESTORE Program— 

Direct Component 

§ 34.300 General. 

This subpart describes the policies 

and procedures applicable to the Direct 

Component of the Gulf RESTORE 

Program. The funds made available 

under this subpart will be in the form 

of a grant. 

§ 34.301 Responsibility for 

administration—Direct Component. 

Treasury is responsible for awarding 

and administering grants and grant 

agreements under this subpart. Treasury 

will develop and apply policies and 

procedures consistent with the Act and 

Federal laws and policies on grants. 

Treasury also will establish and 

implement a program to monitor 

compliance with its grant agreements. 

§ 34.302 Allocation of funds—Direct 

Component. 

The amounts made available in any 

fiscal year from the Trust Fund and 

allocated to this component will be 

available in equal shares for the Gulf 

Coast States for expenditure on eligible 

activities. The following entities are 

eligible to receive Direct Component 

grants. 

(a) The amounts available to Alabama 

will be provided directly to the Alabama 

Gulf Coast Recovery Council, or such 

administrative agent as it may designate. 

All administrative duties of the 

Alabama Gulf Coast Recovery Council 

must be performed by public officials 

and employees that are subject to the 

ethics laws of the State of Alabama. 

(b) Of the amounts available to 

Florida, 75 percent of funding will be 

provided directly to the eight 

disproportionately affected counties. 

Each disproportionately affected 

county’s share is as follows: Bay 

County, 15.101453044%; Escambia 

County, 25.334760043%; Franklin 

County, 8.441253238%; Gulf County, 

6.743202296%; Okaloosa County, 

15.226456794%; Santa Rosa County, 

10.497314919%; Wakulla County, 

4.943148294%; and Walton County, 

13.712411372%. 

(c) Of the amounts available to 

Florida, 25 percent of funding will be 

provided directly to the 

nondisproportionately impacted 

counties. Each nondisproportionately 

impacted county’s share is as follows: 

Charlotte County, 5.162%; Citrus 

County, 4.692%; Collier County, 

7.019%; Dixie County, 3.484%; 

Hernando County, 4.982%; 

Hillsborough County, 13.339%; 

Jefferson County, 3.834%; Lee County, 

8.776%; Levy County, 3.894%; Manatee 

County, 6.809%; Monroe County, 

8.297%; Pasco County, 7.079%; Pinellas 

County, 11.002%; Sarasota County, 

7.248%; and Taylor County, 4.383%. 

(d) Of the amounts available to 

Louisiana, 70 percent will be provided 

directly to the Coastal Protection and 

Restoration Authority Board of 

Louisiana, through the Coastal 

Protection and Restoration Authority of 

Louisiana. 

(e) Of the amounts available to 

Louisiana, 30 percent will be provided 

directly to the coastal zone parishes. 

Each coastal zone parish’s share is as 

follows: Ascension, 2.42612%; 

Assumption, 0.93028%; Calcasieu, 

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5.07063%; Cameron, 2.10096%; Iberia, 

2.55018%; Jefferson, 11.95309%; 

Lafourche, 7.86746%; Livingston, 

3.32725%; Orleans, 7.12875%; 

Plaquemines, 17.99998%; St. Bernard, 

9.66743%; St. Charles, 1.35717%; St. 

James, 0.75600%; St. John the Baptist, 

1.11915%; St. Martin, 2.06890%; St. 

Mary, 1.80223%; St. Tammany, 

5.53058%; Tangipahoa, 3.40337%; 

Terrebonne, 9.91281%; and Vermilion, 

3.02766%. 

(f) No parish will receive funds until 

the parish chief executive has certified 

to the Governor of Louisiana, in a form 

satisfactory to the Governor or the 

Governor’s designee, that the parish has 

completed a comprehensive land use 

plan that is consistent with, or 

complementary to, the most recent 

version of the state’s Coastal Master 

Plan approved by the Louisiana 

legislature. 

(g) The amounts available to 

Mississippi will be provided directly to 

the Mississippi Department of 

Environmental Quality. 

(h) The amounts available to Texas 

will be provided directly to the Office 

of the Governor or to an appointee of the 

Office of the Governor. 

§ 34.303 Application procedure—Direct 

Component. 

The entities identified in § 34.302 are 

eligible to apply for their allocation as 

a grant. Treasury has developed an 

application process for grants available 

under this subpart that is consistent 

with the Act and Federal laws and 

policies on grants. The application 

process includes the following 

requirements: 

(a) Before an eligible entity may 

receive a Direct Component activity 

grant, the grant applicant must submit a 

Multiyear Implementation Plan 

describing each activity for which it 

seeks funding under the Direct 

Component. Applications to fund 

preparation and amendment of the 

Multiyear Implementation Plan are 

exempt from this requirement. 

(b) For each activity, the Multiyear 

Implementation Plan must include a 

narrative description demonstrating: 

(1) The need for, purpose, and 

objectives of the activity; 

(2) How the activity is eligible for 

funding and meets all requirements; 

(3) Location of the activity; 

(4) Budget for the activity; 

(5) Milestones for the activity; 

(6) Projected completion dates for the 

activity; 

(7) Criteria the applicant will use to 

evaluate the success of each activity in 

helping to restore and protect the Gulf 

Coast Region impacted by the 

Deepwater Horizon oil spill; 

(8) The plan was made available for 

public review and comment for a 

minimum of 45 days in a manner 

calculated to obtain broad-based 

participation from individuals, 

businesses, Indian tribes, and non-profit 

organizations; and 

(9) Each activity in the plan was 

approved after consideration of 

meaningful input from the public. 

Treasury may require a standard format 

and additional information in the plans. 

Plans can be phased and incremental 

and may be modified later by the 

applicant. If the applicant has requested 

or anticipates requesting funding for any 

part of the activity from other sources, 

including other components in the Act, 

the applicant must identify the source, 

state the amount of funding, and 

provide the current status of the request. 

For the State of Louisiana parishes, the 

applicant must submit information 

demonstrating compliance with 

§ 34.302(f). 

(c) Material modifications to a 

Multiyear Implementation Plan are 

subject to all applicable requirements in 

paragraph (b) of this section. 

(d) The applicant must include 

supporting information in each grant 

application that: 

(1) Proposed activities meet the 

statutory requirements for eligibility; 

and 

(2) Each activity designed to protect 

or restore natural resources is based on 

best available science. 

(e) An applicant may satisfy some or 

all of the requirements in this section 

and § 34.802(a) through (e) if it can 

demonstrate in its application to 

Treasury that before July 6, 2012: 

(1) The applicant established 

conditions to carry out activities that are 

substantively the same as the 

requirements in this section and 

§ 34.802(a) through (e). 

(2) The applicable activity qualified as 

one or more of the eligible activities in 

§ 34.201. 

§ 34.304 Grant award process—Direct 

Component. 

Upon determining that the Multiyear 

Implementation Plan and the grant 

application meet the requirements of 

these regulations and the Act, Treasury 

will execute a grant agreement with the 

recipient that complies with subpart I of 

this part, the Act, and other Federal 

laws and policies on grants. 

§ 34.305 Use of funds—Direct Component. 

(a) An activity may be funded in 

whole or in part if the applicable 

requirements of subparts C and D of this 

part are met. 

(b) When awarding contracts to carry 

out an activity under the Direct 

Component, a Gulf Coast State, coastal 

political subdivision, or coastal zone 

parish may give preference to 

individuals and companies that reside 

in, are headquartered in, or are 

principally engaged in business in the 

state of project execution consistent 

with Federal laws and policies on 

grants. 

(c) A Gulf Coast State, coastal political 

subdivision, or coastal zone parish may 

propose to issue subawards for eligible 

activities. Recipients that propose to 

issue subawards must demonstrate their 

ability to conduct subrecipient 

monitoring and management, as 

required by Federal laws and policies 

on grants. 

§ 34.306 Reports—Direct Component. 

Recipients must submit reports as 

prescribed by Treasury. 

§ 34.307 Recordkeeping—Direct 

Component. 

Recipients must maintain records as 

prescribed by Treasury, and make the 

records available to Treasury, including 

the Treasury Inspector General. 

§ 34.308 Audits—Direct Component. 

Treasury, including the Treasury 

Inspector General, may conduct audits 

and reviews of recipient’s accounts and 

activities relating to the Act as deemed 

appropriate by Treasury. 

Subpart E—Gulf RESTORE Program— 

Comprehensive Plan Component 

§ 34.400 General. 

This subpart describes the policies 

and procedures applicable to the 

Comprehensive Plan Component. The 

Comprehensive Plan is developed by 

the Council in accordance with 33 

U.S.C. 1321(t)(2) and will include 

activities the Council intends to carry 

out, subject to available funding. When 

selecting activities to carry out in the 

first three years, except for certain 

projects and programs that were 

authorized prior to July 6, 2012, the 

Council will give highest priority to 

projects meeting one or more of the 

criteria in 33 U.S.C. 1321(t)(2)(D)(iii). 

§ 34.401 Responsibility for 

administration—Comprehensive Plan 

Component. 

(a) After selecting Comprehensive 

Plan projects and programs to be 

funded, the Council must assign 

primary authority and responsibility for 

overseeing and implementing projects 

and programs to a Gulf Coast State or 

Federal agency represented on the 

Council, which are called assignees in 

these regulations. In assigning 

responsibility, the Council must enter 

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into a grant agreement with the Gulf 

Coast State or an interagency agreement 

with the Federal agency. Any grant 

agreement must be consistent with 

applicable Federal laws and policies on 

grants. The Council must specify 

whether any part of an assignee’s 

responsibility may be further assigned 

to another entity and under what terms. 

(b) When an assignee’s grant or 

subaward to, or cooperative agreement 

with, a nongovernmental entity would 

equal or exceed ten percent of the total 

amount provided to the assignee for that 

activity, the Council must publish in the 

Federal Register and deliver to the 

following Congressional Committees at 

least 30 days prior to the assignee 

entering into an agreement the name of 

the recipient or subrecipient; a brief 

description of the activity, including its 

purpose; and the amount of the award. 

(1) House of Representatives 

committees: Committee on Science, 

Space, and Technology; Committee on 

Natural Resources; Committee on 

Transportation and Infrastructure; 

Committee on Appropriations. 

(2) Senate committees: Committee on 

Environment and Public Works; 

Committee on Commerce, Science, and 

Transportation; Committee on Energy 

and Natural Resources; Committee on 

Appropriations. 

(c) The Council must establish and 

implement a program to monitor 

compliance with its grant agreements 

and interagency agreements. 

§ 34.402 Grant administration— 

Comprehensive Plan Component. 

The Council must publish policies 

and procedures for administration of 

Comprehensive Plan Component grants 

that are consistent with applicable 

Federal laws and policies on grants. 

These grant policies and procedures 

must include uniform guidelines for 

assignees to use when selecting 

subrecipients, awarding grants and 

subawards, and monitoring compliance. 

The Council must also establish and 

implement a program to monitor 

compliance with its grant agreements. 

§ 34.403 Use of funds—Comprehensive 

Plan Component. 

An activity may be funded in whole 

or in part if the applicable requirements 

of subparts C and E of this part are met. 

§ 34.404 Reports—Comprehensive Plan 

Component. 

Assignees must submit reports as 

prescribed by the Council or Treasury. 

In addition, the Council must submit 

reports as prescribed by Treasury. 

§ 34.405 Recordkeeping—Comprehensive 

Plan Component. 

Assignees must maintain records as 

prescribed by the Council and Treasury, 

and make the records available to the 

Council and Treasury, including the 

Treasury Inspector General. In addition, 

the Council must make its records 

concerning the activities of assignees 

available to Treasury, including the 

Treasury Inspector General. 

§ 34.406 Audits—Comprehensive Plan 

Component. 

The Council and Treasury, including 

the Treasury Inspector General, may 

conduct audits and reviews of assignee’s 

accounts and activities relating to the 

Act as any of them deems appropriate. 

Subpart F—Gulf RESTORE Program— 

Spill Impact Component 

§ 34.500 General. 

This subpart describes the policies 

and procedures applicable to the Spill 

Impact Component of the Gulf 

RESTORE Program. The funds made 

available under this subpart will be in 

the form of grants. 

§ 34.501 Responsibility for 

administration—Spill Impact Component. 

The Council is responsible for 

awarding and administering grants 

under this subpart. 

§ 34.502 Allocation of funds—Spill Impact 

Component. 

The Council will allocate amounts to 

the Gulf Coast States based on the Act 

and regulations promulgated by the 

Council. The Council will make 

allocated funds available through grants 

for activities described in a State 

Expenditure Plan approved by the 

Council. 

§ 34.503 State Expenditure Plans—Spill 

Impact Component. 

Each Gulf Coast State, through its 

Governor or the Governor’s designee, 

must submit a State Expenditure Plan to 

the Council for its approval that 

describes each activity for which the 

state seeks funding. The Council must 

develop requirements for these plans, 

including the requirements below. 

(a) The State Expenditure Plan must 

be developed by: 

(1) In Alabama, the Alabama Gulf 

Coast Recovery Council. 

(2) In Florida, a consortium of local 

political subdivisions that includes, at a 

minimum, one representative of each 

county affected by the Deepwater 

Horizon oil spill. 

(3) In Louisiana, the Coastal 

Protection and Restoration Authority of 

Louisiana, as approved by the Board. 

(4) In Mississippi, the Office of the 

Governor or an appointee of the Office 

of the Governor. 

(5) In Texas, the Office of the 

Governor or an appointee of the Office 

of the Governor. 

(b) The State Expenditure Plan must 

describe how it takes into consideration 

the Comprehensive Plan and is 

consistent with the goals and objectives 

of the Comprehensive Plan. In addition, 

the State Expenditure Plan must 

describe the processes used: 

(1) To evaluate and select activities 

included in the plan; 

(2) To assess the capability of third 

party entities that will implement 

activities in the plan; 

(3) To prevent conflicts of interest in 

the development and implementation of 

the plan; 

(4) To obtain public review and 

comment in accordance with paragraph 

(g) of this section; and 

(5) To verify compliance with the 

requirements of § 34.203 and this 

subpart. 

(c) For each activity in the State 

Expenditure Plan, the plan must include 

a narrative description demonstrating: 

(1) The need for, purpose, and 

objectives of the activity; 

(2) How the activity is eligible for 

funding and meets all requirements of 

§ 34.203 and this subpart; 

(3) Location of the activity; 

(4) Budget for the activity; 

(5) Milestones for the activity; 

(6) Projected completion dates for the 

activity; and 

(7) Criteria the applicant will use to 

evaluate the success of each activity in 

helping to restore and protect the Gulf 

Coast Region. Plans can be phased or 

incremental and may be modified with 

the Council’s approval. If funding has 

been requested from other sources, 

including other components of the Act, 

the plan must identify the source, state 

how much funding was requested, and 

provide the current status of the request. 

(d) The State Expenditure Plan must 

demonstrate how the activities in the 

plan will contribute to the overall 

economic and ecological recovery of the 

Gulf Coast, and how each activity that 

would restore and protect natural 

resources, ecosystems, fisheries, marine 

and wildlife habitats, beaches, coastal 

wetlands or the economy of the Gulf 

Coast is based on the best available 

science. 

(e) The State Expenditure Plan must 

demonstrate that activities described in 

§ 34.201(a) through (g) will be carried 

out in the Gulf Coast Region, as 

described in § 34.203(c). 

(f) No more than 25 percent of 

funding under the Spill Impact 

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Component is available to a Gulf Coast 

State under this subpart to pay for 

infrastructure, unless the Governor or 

the Governor’s representative on the 

Council certifies that: 

(1) The ecosystem restoration needs in 

the state will be addressed by the 

activities in the proposed plan; and 

(2) Additional investment in 

infrastructure is required to mitigate the 

impacts of the Deepwater Horizon Oil 

Spill to the ecosystem or economy. 

(g) Before being submitted to the 

Council for approval, a State 

Expenditure Plan must be available for 

public review and comment for a 

minimum of 45 days, in a manner 

calculated to obtain broad-based 

participation from individuals, 

businesses, Indian tribes, and non-profit 

organizations. 

(h) If the Council disapproves a State 

Expenditure Plan, the Council must 

notify the impacted state in writing and 

consult with the state to address any 

identified deficiencies with the plan. If 

the Council fails to approve or take 

action within 60 days after the date on 

which the Council receives the plan, the 

state may obtain expedited judicial 

review within 90 days in a United States 

district court located in the state seeking 

the review. 

(i) The Council must publish 

guidelines explaining when 

modifications to a State Expenditure 

Plan require the Council’s approval. 

Material modifications to a State 

Expenditure Plan are subject to the 

requirements of paragraphs (b) through 

(g) of this section. 

§ 34.504 Grant administration—Spill 

Impact Component. 

The Council must publish policies 

and procedures for administration of the 

Spill Impact Component grants that are 

consistent with applicable Federal laws 

and policies on grants. The Council 

must also establish and implement a 

program to monitor compliance with its 

grant agreements. 

§ 34.505 Use of funds—Spill Impact 

Component. 

An activity may be funded in whole 

or in part if the applicable requirements 

of subparts C and F of this part are met. 

§ 34.506 Reports—Spill Impact 

Component. 

Recipients must submit reports as 

prescribed by the Council or Treasury. 

In addition, the Council must submit 

reports as prescribed by Treasury. 

§ 34.507 Recordkeeping—Spill Impact 

Component. 

Recipients must maintain records as 

prescribed by the Council and make the 

records available to the Council, and 

Treasury, including the Treasury 

Inspector General. In addition, the 

Council must make its records 

concerning the activities of recipients 

available to Treasury, including the 

Treasury Inspector General. 

§ 34.508 Audits—Spill Impact Component. 

The Council and Treasury, including 

the Treasury Inspector General, may 

conduct audits and reviews of a 

recipient’s accounts and activities 

relating to the Act as any of them deem 

appropriate. 

Subpart G—NOAA RESTORE Act 

Science Program 

§ 34.600 General. 

This subpart describes policies and 

procedures applicable to the NOAA 

RESTORE Act Science Program. The 

program’s purpose is to carry out 

research, observation, and monitoring to 

support, to the maximum extent 

practicable, the long-term sustainability 

of the ecosystem, fish stocks, fish 

habitat, and the recreational, 

commercial, and charter fishing 

industries in the Gulf of Mexico. 

§ 34.601 Responsibility for 

administration—NOAA RESTORE Act 

Science Program. 

NOAA is responsible for establishing 

and administering this program, in 

consultation with the United States Fish 

and Wildlife Service. NOAA must 

develop, publish, and apply policies 

and procedures for the NOAA RESTORE 

Act Science Program consistent with the 

Act, this subpart, and Federal laws and 

policies on grants. NOAA must monitor 

compliance with its grant agreements, 

cooperative agreements, contracts, and 

agreements funded through the Trust 

Fund. NOAA and the United States Fish 

and Wildlife Service will consult with 

the Regional Gulf of Mexico Fishery 

Management Council and the Gulf 

States Marine Fisheries Commission in 

carrying out the program. 

§ 34.602 Use of funds and eligible 

activities—NOAA RESTORE Act Science 

Program. 

(a) Amounts made available to NOAA 

may be expended to carry out a program 

comprised of activities described in 

section 1604 of the Act. These activities 

include coordination of science and 

technology programs and stakeholder 

engagement, in accordance with section 

1604(f) of the Act, as well as the 

following activities with respect to the 

Gulf of Mexico: 

(1) Marine and estuarine research. 

(2) Marine and estuarine ecosystem 

monitoring and ocean observation. 

(3) Data collection and stock 

assessments. 

(4) Pilot programs for fishery 

independent data and reduction of 

exploitation of spawning aggregations. 

(5) Cooperative research. 

(b) NOAA may also expend amounts 

made available from the Trust Fund for 

administrative expenses connected with 

the program. All funds must be 

expended in compliance with the Act, 

these regulations, and other applicable 

law. 

§ 34.603 Limitations on activities—NOAA 

RESTORE Act Science Program. 

None of the Trust Fund amounts may 

be used for the following activities: 

(a) For any existing or planned 

research led by NOAA, unless agreed to 

in writing by the grant recipient. 

(b) To implement existing regulations 

or initiate new regulations promulgated 

or proposed by NOAA. 

(c) To develop or approve a new 

limited access privilege program (as that 

term is used in section 303A of the 

Magnuson-Stevens Fishery 

Conservation and Management Act [16 

U.S.C. 1853(a)]) for any fishery under 

the jurisdiction of the South Atlantic, 

Mid-Atlantic, New England, or Gulf of 

Mexico Fishery Management Councils. 

§ 34.604 Limitations on administrative 

expenses—NOAA RESTORE Act Science 

Program. 

(a) Of the amounts received by NOAA 

under the NOAA RESTORE Act Science 

Program, not more than three percent 

may be used for administrative 

expenses. 

(b) The three percent limit is applied 

to the total amount of funds received by 

NOAA, beginning with the first fiscal 

year it receives funds through the end 

of the fourth, or most recent fiscal year, 

whichever is later. 

(c) NOAA may seek reimbursement of 

administrative expenses incurred after 

the first deposit into the Trust Fund, to 

the extent permitted by Federal law. 

Administrative expenses incurred prior 

to the first deposit into the Trust Fund 

are not reimbursable. 

§ 34.605 Reports—NOAA RESTORE Act 

Science Program. 

NOAA must submit reports as 

prescribed by Treasury. 

§ 34.606 Recordkeeping—NOAA 

RESTORE Act Science Program. 

Recipients and other entities receiving 

funds under the NOAA RESTORE Act 

Science Program must maintain records 

as prescribed by NOAA and make the 

records available to NOAA. 

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§ 34.607 Audits—NOAA RESTORE Act 

Science Program. 

NOAA and the Treasury Inspector 

General may conduct audits and 

reviews of recipient’s accounts and 

activities relating to the Act as either of 

them deems appropriate. 

Subpart H—Centers of Excellence 

Research Grants Program 

§ 34.700 General. 

This subpart describes the policies 

and procedures applicable to the 

Centers of Excellence Research Grants 

Program. The program’s purpose is to 

establish centers of excellence to 

conduct research only on the Gulf Coast 

Region. The funds made available to the 

Gulf Coast States under this subpart will 

be in the form of a grant. 

§ 34.701 Responsibility for 

administration—Centers of Excellence 

Research Grants Program. 

Treasury is responsible for awarding 

grants to the Gulf Coast States, which 

will use the amounts made available to 

award grants to nongovernmental 

entities and consortia in the Gulf Coast 

Region for the establishment of Centers 

of Excellence. Treasury will develop 

and apply policies and procedures 

consistent with this Act and Federal 

laws and policies on grants. Each Gulf 

Coast State entity issuing grants must 

establish and implement a program to 

monitor compliance with its subaward 

agreements. 

§ 34.702 Allocation of funds—Centers of 

Excellence Research Grants Program. 

An equal share of funds will be 

available to each Gulf Coast State to 

carry out eligible activities. The duties 

of a Gulf Coast State will be carried out 

by the following entities: 

(a) In Alabama, the Alabama Gulf 

Coast Recovery Council, or such 

administrative agent as it may designate. 

(b) In Florida, the Florida Institute of 

Oceanography. 

(c) In Louisiana, the Coastal 

Protection and Restoration Authority 

Board of Louisiana, through the Coastal 

Protection and Restoration Authority of 

Louisiana. 

(d) In Mississippi, the Mississippi 

Department of Environmental Quality. 

(e) In Texas, the Office of the 

Governor or an appointee of the Office 

of the Governor. 

§ 34.703 Application procedure—Centers 

of Excellence Research Grants Program. 

Treasury has developed an 

application process for grants available 

to the Gulf Coast States under this 

subpart that is consistent with the Act 

and Federal laws and policies on grants. 

The process includes the following 

requirements: 

(a) Each Gulf Coast State must 

describe the competitive process that 

the state will use to select one or more 

Centers of Excellence. The competitive 

process must allow nongovernmental 

entities and consortia in the Gulf Coast 

Region, including public and private 

institutions of higher education, to 

compete. The process must give priority 

to entities and consortia that 

demonstrate the ability to establish the 

broadest cross-section of participants in 

the grant with interest and expertise in 

science, technology, and monitoring in 

the discipline(s) on which the proposal 

is focused. The process must also guard 

against conflicts of interest. 

(b) Each Gulf Coast State must 

describe in its application the state rules 

and policies applying to subawards it 

will issue under this subpart. At a 

minimum, these state rules and policies 

must include the competitive selection 

process and measures to guard against 

conflicts of interest. 

(c) Each Gulf Coast State must 

demonstrate in its application that the 

state rules and policies applying to 

subawards it will issue under this 

subpart were published and available 

for public review and comment for a 

minimum of 45 days, and that they were 

approved after consideration of 

meaningful input from the public, 

including broad-based participation 

from individuals, businesses, Indian 

tribes, and non-profit organizations. 

These requirements do not apply to 

state statutes and regulations, or to 

policies that were in effect prior to 

August 15, 2014. 

(d) Each application must state the 

amount of funding requested and the 

purposes for which the funds will be 

used. 

§ 34.704 Use of funds and eligible 

activities—Centers of Excellence Research 

Grants Program. 

(a) A Gulf Coast State receiving funds 

under this subpart must establish a 

grant program that complies with the 

Act and Federal laws and policies on 

grants. 

(b) Gulf Coast States may use funds 

available under this subpart to award 

competitive subawards for the 

establishment of Centers of Excellence 

that focus on science, technology, and 

monitoring in at least one of the 

following disciplines: 

(1) Coastal and deltaic sustainability, 

restoration, and protection, including 

solutions and technology that allow 

citizens to live in a safe and sustainable 

manner in a coastal delta in the Gulf 

Coast Region. 

(2) Coastal fisheries and wildlife 

ecosystem research and monitoring in 

the Gulf Coast Region. 

(3) Offshore energy development, 

including research and technology to 

improve the sustainable and safe 

development of energy resources in the 

Gulf of Mexico. 

(4) Sustainable and resilient growth 

and economic and commercial 

development in the Gulf Coast Region. 

(5) Comprehensive observation, 

monitoring, and mapping of the Gulf of 

Mexico. 

§ 34.705 Ineligible activities—Centers of 

Excellence Research Grants Program. 

Any activity that is not authorized 

under the provisions of § 34.704 is 

ineligible for funding under this 

subpart. 

§ 34.706 Reports—Centers of Excellence 

Research Grants Program. 

Each Gulf Coast State entity must 

submit the following reports: 

(a) An annual report to the Council in 

a form prescribed by the Council that 

includes information on subrecipients, 

subaward amounts, disciplines 

addressed, and any other information 

required by the Council. When the 

subrecipient is a consortium, the annual 

report must also identify the consortium 

members. This information will be 

included in the Council’s annual report 

to Congress. 

(b) Reports as prescribed by Treasury. 

§ 34.707 Recordkeeping—Centers of 

Excellence Research Grants Program. 

Recipients must maintain records as 

prescribed by Treasury and make the 

records available to Treasury, including 

the Treasury Inspector General. 

§ 34.708 Audits—Centers of Excellence 

Research Grants Program. 

Treasury, including the Treasury 

Inspector General, may conduct audits 

and reviews of each recipient’s accounts 

and activities relating to the Act as 

deemed appropriate by Treasury. 

Subpart I—Agreements 

§ 34.800 General. 

This subpart describes procedures 

applicable to grant agreements used by 

Treasury, the Council (including 

Federal agencies carrying out 

responsibilities for the Council), NOAA, 

Gulf Coast States, coastal political 

subdivisions, and coastal zone parishes 

in making awards under subparts D, E, 

F, G, and H of this part. It also describes 

Treasury’s authority to inspect records 

and the Treasury Inspector General’s 

authority under the Act. 

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§ 34.801 Grant agreements. 

The grant agreements used must 

conform to the Act and Federal laws 

and policies on grants, including audit 

requirements. 

§ 34.802 Certifications. 

At a minimum, grant applications and 

agreements for the Direct Component, 

Comprehensive Plan Component, and 

Spill Impact Component must contain 

the following certifications. The 

certification must be signed by an 

authorized senior official of the entity 

receiving grant funds who can legally 

bind the organization or entity, and who 

has oversight for the administration and 

use of the funds in question. The 

certification in paragraph (c) of this 

section does not apply to planning 

assistance funds for the preparation and 

amendment of the Multiyear 

Implementation Plan. 

(a) I certify that each activity funded 

under this Agreement has been designed 

to plan for or undertake activities to 

restore and protect the natural 

resources, ecosystems, fisheries, marine 

and wildlife habitats, beaches, coastal 

wetlands, or economy of the Gulf Coast 

Region. 

(b) I certify that each activity funded 

under this Agreement is designed to 

carry out one or more of the eligible 

activities for this component. 

(c) I certify that each activity funded 

under this Agreement was part of a plan 

made available for public review and 

comment in a manner calculated to 

obtain broad-based participation from 

individuals, businesses, Indian tribes, 

and nonprofit organizations, and that 

the activity was selected after 

consideration of meaningful input from 

the public, as described in the grant 

application. 

(d) I certify that each activity funded 

under this Agreement that protects or 

restores natural resources is based on 

the best available science, as that term 

is defined in 31 CFR part 34. 

(e) I certify that this recipient has 

procedures in place for procuring 

property and services under this award 

that are consistent with the procurement 

standards applying to Federal grants. 

This recipient agrees that it will not 

request funds under this award for any 

contract unless this certification 

remains true and accurate. 

(f) I certify that a conflict of interest 

policy is in effect and covering each 

activity funded under this Agreement. 

(g) I make each of these certifications 

based on my personal knowledge and 

belief after reasonable and diligent 

inquiry, and I affirm that this recipient 

maintains written documentation 

sufficient to support each certification 

made above, and that this recipient’s 

compliance with each of these 

certifications is a condition of this 

recipient’s initial and continuing receipt 

and use of the funds provided under 

this Agreement. 

§ 34.803 Conditions. 

At a minimum, each grant agreement 

under subparts D, E, F, G, and H of this 

part must contain the following 

conditions: 

(a) The recipient must immediately 

report any indication of fraud, waste, 

abuse, or potentially criminal activity 

pertaining to grant funds to Treasury 

and the Treasury Inspector General. 

(b) The recipient must maintain 

detailed records sufficient to account for 

the receipt, obligation, and expenditure 

of grant funds. The recipient must track 

program income. 

(c) Prior to disbursing funds to a 

subrecipient, the recipient must execute 

a legally binding written agreement with 

the entity receiving the subaward. The 

written agreement will extend all the 

applicable program requirements to the 

subrecipient. 

(d) The recipient must use the funds 

only for the purposes identified in the 

agreement. 

(e) The recipient must report at the 

conclusion of the grant period, or other 

period specified by the Federal agency 

administering the grant, on the use of 

funds pursuant to the agreement. 

(f) Trust Fund amounts may only be 

used to acquire land or interests in land 

by purchase, exchange, or donation 

from a willing seller. 

(g) None of the Trust Fund amounts 

may be used to acquire land in fee title 

by the Federal Government unless the 

land is acquired by exchange or 

donation or the acquisition is necessary 

for the restoration and protection of the 

natural resources, ecosystems, fisheries, 

marine and wildlife habitats, beaches, 

and coastal wetlands of the Gulf Coast 

Region and has the concurrence of the 

Governor of the state in which the 

acquisition will take place. 

§ 34.804 Noncompliance. 

(a) If Treasury determines that a Gulf 

Coast State, coastal political 

subdivision, or coastal zone parish has 

expended funds received under the 

Direct Component, Comprehensive Plan 

Component, or Spill Impact Component 

on an ineligible activity, Treasury will 

make no additional funds available to 

that recipient from any part of the Trust 

Fund until the recipient has deposited 

in the Trust Fund an amount equal to 

the amount expended for an ineligible 

activity, or Treasury has authorized the 

recipient to expend an equal amount 

from the recipient’s own funds for an 

activity that meets the requirements of 

the Act. 

(b) If Treasury determines that a Gulf 

Coast State, coastal political 

subdivision, or coastal zone parish has 

materially violated a grant agreement 

under the Direct Component, 

Comprehensive Plan Component, or 

Spill Impact Component, Treasury will 

make no additional funds available to 

that recipient from any part of the Trust 

Fund until the recipient corrects the 

violation. 

(c) As a condition of receiving funds, 

recipients and subrecipients shall make 

available their records and personnel to 

Treasury in order to carry out the 

purposes of this section. 

§ 34.805 Treasury Inspector General. 

In addition to other authorities 

available under the Act, the Office of the 

Inspector General of the Department of 

the Treasury is authorized to conduct, 

supervise, and coordinate audits and 

investigations of activities funded 

through grants under the Act. 

David A. Lebryk, 

Fiscal Assistant Secretary. 

[FR Doc. 2015–31431 Filed 12–11–15; 8:45 am] 

BILLING CODE 4810–25–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[Docket No. USCG–2015–1066] 

Drawbridge Operation Regulation; 

Hoquiam River, Hoquiam, WA 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of temporary deviation 

from drawbridge regulation. 

SUMMARY: The Coast Guard has issued a 

temporary deviation from the operating 

schedule that governs the Simpson 

Avenue Bridge across the Hoquiam 

River, mile 0.5, at Hoquiam, WA. The 

deviation is necessary to accommodate 

Washington State Department of 

Transportation’s (WSDOT) extensive 

maintenance and restoration efforts on 

this bridge. This deviation allows 

WSDOT to open one leaf of the double 

leaf bascule bridge when at least two 

hours of notice is given. The vertical 

clearance will be reduced to 

approximately 25 feet at mean high tide, 

and the horizontal clearance will be 

reduced to 52 feet. 

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