Federal Register / Vol. 62, No. 31 / Friday, February 14, 1997 / Rules and Regulations 6869

projects required under § 627.1(a) of this

part. Consultants or firms should not be

retained to conduct studies of their own

designs unless they maintain separate

and distinct organizational separation of

their VE and design sections.

(d) Funding eligibility. The cost of

performing VE studies is project related

and is, therefore, eligible for

reimbursement with Federal-aid

highway funds at the appropriate prorata share for the project studied.

[FR Doc. 97–3758 Filed 2–13–97; 8:45 am]

BILLING CODE 4910–22–P

23 CFR Parts 630, 635, and 771

[FHWA Docket No. 96–3]

RIN 2125–AD58

Federal-Aid Project Agreement

AGENCY: Federal Highway

Administration (FHWA), DOT.

ACTION: Final rule.

SUMMARY: The FHWA is amending its

regulation on project agreements. The

Intermodal Surface Transportation

Efficiency Act (ISTEA) of 1991 modified

the requirement that preliminary

engineering and right-of-way projects

must be advanced to the construction

stage within certain time limits.

Changes to the agreement provisions

reflect these adjustments. The new

procedures provide more flexibility in

the format of the agreement document

and permit the development of a single

document to serve as both the project

authorization and project agreement

document. Other changes were made to

shorten the agreement document and to

add clarity to the process.

EFFECTIVE DATE: This final rule is

effective March 17, 1997.

FOR FURTHER INFORMATION CONTACT: Jack

Wasley, Office of Engineering, 202–366–

0450, or Wilbert Baccus, Office of the

Chief Counsel, 202–366–0780, FHWA,

400 Seventh Street, SW., Washington,

DC 20590. Office hours are from 7:45

a.m. to 4:15 p.m., e.t., Monday through

Friday except Federal holidays.

SUPPLEMENTARY INFORMATION: The

amendments in this final rule are based

primarily on the notice of proposed

rulemaking (NPRM) published in the

January 30, 1996, Federal Register at 61

FR 2973 (FHWA Docket No. 96–3). All

comments received in response to this

NPRM have been considered in

adopting these amendments.

Under the provisions of 23 U.S.C. 110,

a formal agreement between the State

highway agency and the FHWA is

required for Federal-aid highway

projects. This agreement, referred to as

the ‘‘project agreement,’’ is in essence a

written contract between the State and

the Federal government defining the

extent of the work to be undertaken and

commitments made concerning the

project.

Requirements covering project

agreements are contained in this final

rule. This final rule updates and

modifies the existing Federal-aid project

agreement regulation to incorporate

changes mandated by the ISTEA, Pub. L.

102–240, 105 Stat. 1914, to streamline

the project agreement form and

provisions, and to allow more versatility

in its use. This final rule amends the

existing regulation in the following

manner and for the reasons indicated

below.

Section 630.301 Purpose

The statement of purpose is revised

with minor changes for clarity.

Section 630.303 Preparation of

Agreement

This section no longer requires the

use of a specific form. Instead, a State

has the flexibility to use whatever

format is suitable to provide the

information required for a project

agreement document.

Section 630.305 Modification of

Original Agreement

A State is still required to prepare a

modification to a project agreement as

changes occur. However, this section no

longer requires the use of a specific

form. Instead, a State is allowed to

develop its own form for modification of

the project agreement, provided it

contains necessary information as

identified by the regulation.

Section 630.307 Agreement Provisions

This section identifies the provisions

that must be a part of each agreement.

The project agreement has been

simplified by eliminating all the

boilerplate provisions that are not

required from the agreement itself. The

provisions that are necessary have been

included in this section of the

regulation. The simplified project

agreement would incorporate, by

reference to this section, these

provisions into each agreement. The

following discussion covers each of the

required provisions.

Section 630.307(a) is a general

provision under which the State agrees

to comply with title 23, United States

Code (U.S.C.), the regulations

implementing title 23, and the policies

and procedures established by the

FHWA. In addition, States must also

comply with all other applicable

Federal laws and regulations. This

general provision is broad in scope and

there is little need for other provisions

which cover only a limited feature of

title 23, U.S.C.

Section 630.307(b) represents an

acknowledgment by the State that it has

a financial obligation for the nonFederal share of the cost of the project.

Sections 630.307(c)(1) and (c)(2)

contain provisions that implement

statutory requirements concerning a

State’s payback of Federal funds it has

received for right-of-way acquisition or

preliminary engineering should the

project not be advanced within the

designated statutory time frames.

Paragraph (c)(1), Project for Acquisition

of Rights-of-Way, implements the

requirement in 23 U.S.C. 108(a) that the

agreement between the State and the

FHWA for right-of-way acquisition

projects shall include a provision that

construction shall begin within 20

years. This reflects an amendment to 23

U.S.C. 108(a) resulting from passage of

section 1017(a) of the ISTEA.

With regard to paragraph (c)(2),

Preliminary engineering project, prior to

passage of the ISTEA, an administrative

decision by the FHWA required

repayment of Federal-aid highway funds

authorized for preliminary engineering

if right-of-way acquisition or actual

construction had not begun within 5

years after authorization of the

preliminary engineering. The general

concept of this provision is now found

in the statute; section 1016(a) of the

ISTEA incorporated this provision into

23 U.S.C. 102(b). One significant

difference between the statutory

provision and the existing FHWA

practice is that 10 years instead of 5

years must pass before payback is

required. Paragraph (c)(2) reflects the

10-year payback period.

Sections 630.307(c)(3), (c)(4) and

(c)(5) contain provisions for a drug-free

workplace, suspension/debarment, and

lobbying required by 49 CFR 29.630, 49

CFR 29.510 and 49 CFR 20.110,

respectively.

According to 49 CFR 29.630(c), a State

is allowed to make one yearly

certification for the drug-free workplace

certification. Although the FHWA has

used annual or quarterly program

certifications for the others in the past,

it was determined that these

certifications do not fully comply with

the provisions of previously cited

requirements in 49 CFR 29.510 and 49

CFR 20.110. Placing language in the

project agreement as part of the general

provisions provides the separate

certification action required for every

project. Project-by-project certifications

are deemed to fully satisfy the

requirements in title 49, CFR, and
6870 Federal Register / Vol. 62, No. 31 / Friday, February 14, 1997 / Rules and Regulations

constitute the making of the

certifications by virtue of signature on

the project agreement document.

In the NPRM, the FHWA proposed to

remove provision 20, Environmental

Impact Mitigation Features, from

§ 630.307, appendix A, and to move it

to 23 CFR part 771. The requirements of

this provision ensure that State

Highway agencies comply with Federal

mitigation standards as directed by the

Council on Environmental Quality

(CEQ) regulations for implementing the

National Environmental Policy Act

(NEPA)(40 CFR 1505.3). The State

Highway agencies would then be

required to comply with 23 CFR part

771 through the broad scope of 23 CFR

630.301.

Section 635.102 Definitions

Section 635.102 incorporates the

definitions contained in § 630.302 (b),

(d), (h), (i), and (k). These definitions

apply to § 630.305, Agreement

provisions regarding overrun in contract

time. Due to the move of § 630.305 to

§ 635.127, the definitions contained in

§ 630.302 (b), (d), (h), (i), and (k) have

been inserted in alphabetical order into

the definitions currently in this section.

The term Secondary Road Plan is

removed as this plan no longer exists.

Section 630.305 Agreement Provisions

Regarding Overruns in Contract Time

Section 630.305 has been

redesignated as § 635.127. The text of

the section remains unchanged.

The FHWA is also making three

minor technical changes to 23 CFR part

635, which were not included in the

NPRM. Those changes simply involve

the removal of the term ‘‘Secondary

Road Plan’’ in §§ 635.103, 635.124, and

635.126. As in 23 CFR 635.102, these

sections need to be updated to reflect

the nonexistence of the Secondary Road

Plan, which was phased out in the

ISTEA. The FHWA believes that prior

notice and comment are unnecessary

because these changes are not

substantive in nature, but merely update

23 CFR part 635 to reflect current law.

Discussion of Comments

Interested persons were invited to

participate in the development of this

final rule by submitting written

comments on the NPRM to FHWA

Docket 96–3 on or before April 1, 1996.

There were 15 commenters to this

docket, all representing State

transportation agencies. Ten State

transportation agencies specially stated

their endorsement of the proposed

rewrite of the regulation. The remainder

were in agreement with the rewrite and

raised items for consideration. A

summary of the comments received

relative to each proposed amendment

follows.

For § 630.301, no comments were

received.

Section 630.303 discusses preparation

of the project agreement. All

commenters were in favor of eliminating

from the regulation the specified form

for this agreement. One commenter

objected to the requirement in proposed

§ 630.303(b)(5) that the project

agreement include information on the

Federal share expressed either as a pro

rata percentage or lump sum. The

FHWA agrees with this comment

because the Federal share is established

at authorization and does not have to be

repeated in the agreement. Therefore,

this requirement is not included in the

regulation.

In addition, an electronic version of

the agreement, as provided by the

FHWA, may be used. Two commenters

suggested that they also be allowed to

provide their own electronic version of

the agreement subject to FHWA

approval. It is noted that the FHWA

version is closely tied to the agency’s

Fiscal Management and Information

System (FMIS). Any alternate electronic

form proposed would need to be fully

compatible with the FMIS. Use of

electronic format also requires

acceptance of an electronic signature.

The FHWA has established procedures

under which electronic signatures, both

by State and FHWA officials, can be

used for executing project agreements.

One State suggested it be allowed to use

its own digital signature format. Again,

any alternate signature format would

have to be compatible with the FMIS.

Section 630.305 discusses preparation

of modifications to the project

agreement. No specific form is specified,

and similar to the project agreement, the

FHWA has provided an electronic

version to modify project agreements.

Again, all commenters were in favor of

eliminating from the regulation the

specified form for a project agreement

modification. Two commenters were

concerned about the need to provide a

sequential number identifying the

modification and the need to provide

the revised total project cost and

amount of Federal funds under

agreement. These two data items have

long been required as part of the

standard modification of project

agreement form. The FHWA’s electronic

process for modifying a project

agreement will automatically assign a

sequential number to the modification

and determine the new total project cost

and amount of Federal funds. If a State

chooses to use its own written form, it

will need to provide this information.

The FHWA believes these two data

items are reasonable information to

require in tracking agreement changes,

and the final rule continues the

requirement that these data items be

included in a modification to the project

agreement. The FHWA recognizes that

using the project agreement to modify

the cost continues to present problems.

This is even more complex and

complicated when translated into an

electronic version of the agreement. The

FHWA will continue to review this

situation and will consider issuing

additional guidance or undertaking

further rulemaking as appropriate.

Section 630.307 identifies provisions

that, by reference, must be included in

each project agreement. The first

provision, § 630.307(a), is a general

provision in which the State agrees to

comply with the requirements of title

23, United States Code, and the

implementing regulations and policies,

as well as other applicable Federal laws

and regulations such as title VI of the

1964 Civil Rights Act. In the NPRM

preamble, the FHWA solicited input on

the need to specifically refer to other

non-title 23 Federal laws and

regulations with which the States must

comply. Most commenters on this issue

felt that it was not necessary to list the

non-title 23 laws and regulations. Many

felt that such a listing would become

outdated, and that the general statement

contained in the first provision,

§ 630.307(a), referencing these other

laws and regulations is sufficient. Based

on this input, the FHWA has decided to

proceed with § 630.307(a) only

providing the general reference to other

non-title 23 laws and regulations.

Section 630.307(c) (1) and (2)

implement the requirements in 23

U.S.C. 108(a) and 102(b) for payback of

Federal-aid funds authorized for rightof-way or preliminary engineering

should a project not be advanced within

designated time frames. Section 108(a)

of title 23, U.S.C., requires payback of

Federal funds made available for rightof-way acquisition if the actual

construction of the project has not

started within 20 years following the

fiscal year that Federal funding is made

available for right-of-way acquisition.

Section 102(b) of title 23, U.S.C.,

requires payback of Federal funds made

available for preliminary engineering if

right-of-way acquisition or construction

has not started within 10 years after the

date that Federal funding is made

available for the preliminary

engineering.

For these payback requirements, the

term ‘‘available’’ has been interpreted by

the FHWA to mean the fiscal year in

which the FHWA authorizes the right-
Federal Register / Vol. 62, No. 31 / Friday, February 14, 1997 / Rules and Regulations 6871

of-way or preliminary engineering

activity. One commenter believes the

term ‘‘available’’ should instead be

interpreted to mean the date the project

agreement is executed. The FHWA

disagrees. The FHWA’s commitment or

obligation of Federal funds to a specific

project activity occurs at the time that

the FHWA authorizes Federal funds for

that activity. It is reasonable to equate

this authorization action to a point in

time that funds are first made available

for an activity.

Another commenter suggested that

the 10-year payback requirement for

preliminary engineering include a

provision that would allow extension of

this time limit under special

circumstances. It is noted that under 23

U.S.C. 108(a), the statute does allow

extensions of the 20-year payback limit

for right-of-way acquisition projects.

However, under 23 U.S.C. 102(b), the

statute contains no provision for

extensions of the 10-year limit for

preliminary engineering. Consequently,

the FHWA does not have the authority

to establish extensions to the

preliminary engineering payback limit.

Sections 630.307(c)(3), (c)(4), and

(c)(5) cover certifications for a drug-free

workplace, suspension/debarment, and

lobbying required by 49 CFR 29.630, 49

CFR 29.510, and 49 CFR 20.110,

respectively. One commenter suggested

that these certifications be done on an

annual basis. Although the FHWA has

used annual certifications in the past, a

question arose as to whether an annual

certification fully complies with the

provisions of previously cited

requirements in title 49, CFR. Projectby-project certifications satisfy the

requirements in title 49, CFR, and the

final rule provides that by signing the

project agreement, the State is providing

the required certifications.

The language in the NPRM for

proposed 23 CFR 630.307(c)(3), (4), and

(5) was intended to implement the

requirements of 49 CFR 29.630, 49 CFR

29.510, and 49 CFR 20.110, respectively.

Differences in language between title 23

and title 49, however, could lead to

confusion. Accordingly, it was decided

to replace the proposed language for 23

CFR 630.307(c)(3), (4), and (5) with

explicit cross-references to the relevant

provisions in title 49.

No comments were received on the

amendments to parts 635 and 771.

The following table is provided to

assist the user in locating the regulatory

paragraph changes made by this

rulemaking:

Old section New section

630.301 ..................... 630.301.

Old section New section

630.302 ..................... Removed (except (b),

(d), (h), (i), and (k)).

630.302(b) ................. 635.102.

630.302(d) ................. 635.102.

630.302(h) ................. 635.102.

630.302(i) .................. 635.102.

630.302(k) ................. 635.102.

630.303 ..................... 630.303.

630.304 ..................... 630.303.

630.305 ..................... 635.127.

630.306 ..................... 630.305.

None ......................... 630.307 (a) and (b).

Appendix A ............... Removed.

Prov. 1 ...................... Removed.

Prov. 2 ...................... Removed.

Prov. 3 ...................... 630.307(c)(1).

Prov. 4 ...................... 630.307(c)(2).

Prov. 5 through 19 .... Removed.

Prov. 20 .................... 771.109(d).

Appendix B ............... Removed.

Appendix C ............... Removed.

None ......................... 630.307(c)(3), (c)(4),

and (c)(5).

Rulemaking Analyses and Notices

As noted above, the FHWA is also

making three minor technical changes to

23 CFR part 635, which were not

included in the NPRM. Those changes

simply involve the removal of the term

‘‘Secondary Road Plan’’ from

§§ 635.103, 635.124, and 635.126. The

FHWA has determined that prior notice

and opportunity for comment as to these

changes are unnecessary under 5 U.S.C.

553(b)(3)(B) because these changes are

required to reflect the nonexistence of

the Secondary Road Plan, which was

phased out in the ISTEA, and are

therefore only minor and technical in

nature. The removal of the references to

Secondary Road Plan does not

substantively effect sections 635.103,

635.104, and 635.126, but merely

updates 23 CFR part 635 to reflect

current law.

Executive Order 12866 (Regulatory

Planning and Review) and DOT

Regulatory Policies and Procedures

The FHWA has determined that this

action is not a significant regulatory

action within the meaning of Executive

Order 12866 or significant within the

meaning of Department of

Transportation regulatory policies and

procedures. The proposed amendments

would update the Federal-aid project

agreement regulation to conform to

recent laws, regulations, or guidance

and to clarify existing policies. It is

anticipated that the economic impact of

this rulemaking will be minimal;

therefore, a full regulatory evaluation is

not required.

Regulatory Flexibility Act

In compliance with the Regulatory

Flexibility Act (5 U.S.C. 601–612), the

FHWA has evaluated the effects of this

rule on small entities. Based on the

evaluation, the FHWA certifies that this

action will not have a significant

economic impact on a substantial

number of small entities. The

amendments clarify or simplify

procedures used by State highway

agencies in accordance with existing

laws, regulations, or guidance.

Executive Order 12612 (Federalism

Assessment)

This action has been analyzed in

accordance with the principles and

criteria contained in Executive Order

12612, and it has been determined that

this action does not have sufficient

federalism implications to warrant the

preparation of a federalism assessment.

Executive Order 12372

(Intergovernmental Review)

Catalog of Federal Domestic

Assistance Program Number 20.205,

Highway Planning and Construction.

The regulations implementing Executive

Order 12372 regarding

intergovernmental consultation on

Federal programs and activities apply to

this program.

Paperwork Reduction Act

The information collection

requirements associated with this

rulemaking in § 630.303 have been

approved by the Office of Management

and Budget under control number OMB

2125–0529 and expire June 30, 1997.

The information collection requirements

associated with this rulemaking would

update and modify existing

requirements to reflect statutory changes

to the project agreement process enacted

by the ISTEA, streamline the project

agreement form and provisions, and

allow more versatility in its use.

National Environmental Policy Act

The agency has analyzed this action

for the purpose of the National

Environmental Policy Act of 1969 (42

U.S.C. 4321 et seq.) and has determined

that this action would not have any

effect on the quality of the environment.

Regulation Identification Number

A regulation identification number

(RIN) is assigned to each regulatory

action listed in the Unified Agenda of

Federal Regulations. The Regulatory

Information Service Center publishes

the Unified Agenda in April and

October of each year. The RIN contained

in the heading of this document can be

used to cross reference this action with

the Unified Agenda.
6872 Federal Register / Vol. 62, No. 31 / Friday, February 14, 1997 / Rules and Regulations

List of Subjects

23 CFR Parts 630

Government contracts, Grant

programs—Transportation, Highways

and roads, Project agreement

procedures, Reporting and

recordkeeping requirements.

23 CFR Parts 635

Buy America, Government contracts—

construction authorization, Grant

programs—transportation, Highways

and roads, Intergovernmental relations,

Interstate maintenance, Materials and

product selection.

23 CFR Parts 771

Environmental impact statements,

Grant programs—transportation,

Highways and roads, Historic

preservation, Public lands, Recreation

areas, Wildlife refuges.

Issued on: February 4, 1997.

Rodney E. Slater,

Federal Highway Administrator.

In consideration of the foregoing, the

FHWA amends Title 23, Code of Federal

Regulations, Parts 630, 635, and 771 as

set forth below.

PART 630—PRECONSTRUCTION

PROCEDURES

1. The authority citation for part 630

is revised to read as follows and all

other authority citations which appear

throughout part 630 are removed:

Authority: 23 U.S.C. 105, 106, 109, 110,

115, 315, 320, and 402(a); 23 CFR 1.32; 49

CFR 1.48(b).

2. The authority citation for part 635

is revised to read as follows:

Authority: 23 U.S.C. 101 (note), 109, 112,

113, 114, 116, 117, 119, 128, and 315; 31

U.S.C. 6506; 42 U.S.C. 3334, 4601 et seq.; 23

CFR 1.32; 49 CFR 1.48(b); sec. 1041(a), Pub.

L. 102–240, 105 Stat. 1914.

§ 630.305 [Redesignated as § 635.127]

3. Section 630.305, Agreement

provisions regarding overruns in

contract time, is redesignated as

§ 635.127.

4. Part 630, subpart C is revised to

read as follows:

Subpart C—Project Agreements

Sec.

630.301 Purpose.

630.303 Preparation of agreement.

630.305 Modification of original agreement.

630.307 Agreement provisions.

Subpart C—Project Agreements

§ 630.301 Purpose.

The purpose of this subpart is to

prescribe the procedures for the

execution of the project agreement

required by 23 U.S.C. 110(a) for Federalaid projects, except for forest highway

projects pursuant to 23 U.S.C. 204, and

for non-highway public mass transit

projects administered by the Federal

Transit Administration.

§ 630.303 Preparation of agreement.

(a) The State highway agency (SHA)

shall prepare a project agreement for

each Federal-aid highway and FHWA

planning and research project eligible

for Federal-aid funding.

(b) The SHA may develop the project

agreement in a format acceptable to both

the SHA and the FHWA provided the

following are included:

(1) A description of the project

location including State and project

termini;

(2) The Federal-aid project number;

(3) The phases of work covered by the

agreement along with the effective date

of authorization for each phase;

(4) The total project cost and amount

of Federal funds under agreement;

(5) A statement that the State accepts

and will comply with the agreement

provisions set forth in 23 CFR 630.307;

(6) A statement that the State

stipulates that its signature on the

project agreement constitutes the

making of the certifications set forth in

23 CFR 630.307; and

(7) Signatures of officials from both

the State and the FHWA and date

executed.

(c) The project agreement may be

combined with the project authorization

required under 23 CFR part 630, subpart

A.

(d) The SHA may use an electronic

version of the agreement as provided by

the FHWA.

(Approved by the Office of Management and

Budget under control number 2125–0529)

§ 630.305 Modification of original

agreement.

(a) When changes are needed to the

original project agreement, a

modification of agreement shall be

prepared.

(b) The SHA may develop the

modification of project agreement in a

format acceptable to both the SHA and

the FHWA provided the following are

included:

(1) The Federal-aid project number

and State;

(2) A sequential number identifying

the modification;

(3) A reference to the date of the

original project agreement to be

modified;

(4) The original total project cost and

the original amount of Federal funds

under agreement;

(5) The revised total project cost and

the revised amount of Federal funds

under agreement;

(6) The reason for the modifications;

and,

(7) Signatures of officials from both

the State and the FHWA and date

executed.

(c) The SHA may use an electronic

version of the modification of project

agreement as provided by the FHWA.

§ 630.307 Agreement provisions.

(a) The State, through its highway

agency, accepts and agrees to comply

with the applicable terms and

conditions set forth in title 23, United

States Code, Highways, the regulations

issued pursuant thereto, the policies

and procedures promulgated by the

FHWA relative to the designated project

in which the FHWA authorized certain

work to proceed, and all other

applicable Federal laws and regulations.

(b) Federal funds obligated for the

project must not exceed the amount

agreed to on the project agreement, the

balance of the estimated total cost being

an obligation of the State. Such

obligation of Federal funds extends only

to project costs incurred by the State

after the FHWA authorization to

proceed with the project involving such

costs.

(c) The State must stipulate that as a

condition to payment of the Federal

funds obligated, it accepts and will

comply with the following applicable

provisions:

(1) Project for acquisition of rights-ofway. In the event that actual

construction of a road on this right-ofway is not undertaken by the close of

the twentieth fiscal year following the

fiscal year in which the project is

authorized, the SHA will repay to the

FHWA the sum or sums of Federal

funds paid to the highway agency under

the terms of the agreement.

(2) Preliminary engineering project. In

the event that right-of-way acquisition

for, or actual construction of, the road

for which this preliminary engineering

is undertaken is not started by the close

of the tenth fiscal year following the

fiscal year in which the project is

authorized, the SHA will repay to the

FHWA the sum or sums of Federal

funds paid to the highway agency under

the terms of the agreement.

(3) Drug-free workplace certification.

By signing the project agreement, the

SHA agrees to provide a drug-free

workplace as required by 49 CFR part

29, subpart F. In signing the project

agreement, the State is providing the

certification required in appendix C to

49 CFR part 29, unless the State

provides an annual certification.
Federal Register / Vol. 62, No. 31 / Friday, February 14, 1997 / Rules and Regulations 6873

(4) Suspension and debarment

certification. By signing the project

agreement, the SHA agrees to fulfill the

responsibility imposed by 49 CFR

29.510 regarding debarment,

suspension, and other responsibility

matters. In signing the project

agreement, the State is providing the

certification for its principals required

in appendix A to 49 CFR part 29.

(5) Lobbying certification. By signing

the project agreement, the SHA agrees to

abide by the lobbying restrictions set

forth in 49 CFR part 20. In signing the

project agreement, the State is providing

the certification required in appendix A

to 49 CFR part 20.

PART 635—CONSTRUCTION AND

MAINTENANCE [AMENDED]

5. Subpart A of part 635 is amended

by revising § 635.102 to read as follows:

§ 635.102 Definitions.

As used in this subpart:

Administrator means the Federal

Highway Administrator.

Calendar day means each day shown

on the calendar but, if another

definition is set forth in the State

contract specifications, that definition

will apply.

Certification acceptance means the

alternative procedure which may be

used for administering certain highway

projects involving Federal funds

pursuant to 23 U.S.C. 117.

Contract time means the number of

workdays or calendar days specified in

a contract for completion of the contract

work. The term includes authorized

time extensions.

Division Administrator means the

chief FHWA official assigned to conduct

business in a particular State. A State is

as defined in 23 U.S.C. 101.

Force account means a basis of

payment for the direct performance of

highway construction work with

payment based on the actual cost of

labor, equipment, and materials

furnished and consideration for

overhead and profit.

Formal approval means approval in

writing or the electronic transmission of

such approval.

Incentive/disincentive for early

completion as used in this subpart,

describes a contract provision which

compensates the contractor a certain

amount of money for each day

identified critical work is completed

ahead of schedule and assesses a

deduction for each day the contractor

overruns the incentive/disincentive

time. Its use is primarily intended for

those critical projects where traffic

inconvenience and delays are to be held

to a minimum. The amounts are based

upon estimates of such items as traffic

safety, traffic maintenance, and road

user delay costs.

Liquidated damages means the daily

amount set forth in the contract to be

deducted from the contract price to

cover additional costs incurred by a

State highway agency because of the

contractor’s failure to complete the

contract work within the number of

calendar days or workdays specified.

The term may also mean the total of all

daily amounts deducted under the terms

of a particular contract.

Local public agency means any city,

county, township, municipality, or

other political subdivision that may be

empowered to cooperate with the State

highway agency in highway matters.

Major change or major extra work

means a change which will significantly

affect the cost of the project to the

Federal Government or alter the termini,

character or scope of the work.

Materially unbalanced bid means a

bid which generates a reasonable doubt

that award to the bidder submitting a

mathematically unbalanced bid will

result in the lowest ultimate cost to the

Federal Government.

Mathematically unbalanced bid

means a bid containing lump sum or

unit bid items which do not reflect

reasonable actual costs plus a

reasonable proportionate share of the

bidder’s anticipated profit, overhead

costs, and other indirect costs.

Public agency means any organization

with administrative or functional

responsibilities which are directly or

indirectly affiliated with a governmental

body of any nation, State, or local

jurisdiction.

Publicly owned equipment means

equipment previously purchased or

otherwise acquired by the public agency

involved primarily for use in its own

operations.

Specialty items means work items

identified in the contract which are not

normally associated with highway

construction and require highly

specialized knowledge, abilities or

equipment not ordinarily available in

the type of contracting organizations

qualified and expected to bid on the

contract; in general, these items are to

be limited to minor components of the

overall contract.

State highway agency (SHA) means

that department, commission, board, or

official of any State charged by its laws

with the responsibility for highway

construction. The term ‘‘State’’ should

be considered equivalent to ‘‘State

highway agency’’ if the context so

implies.

Workday means a calendar day during

which construction operations could

proceed for a major part of a shift,

normally excluding Saturdays, Sundays,

and State-recognized legal holidays.

§ 635.103 [Amended]

6. Section 635.103 is amended by

removing the words ‘‘or secondary road

plan’’.

7. In § 635.124, paragraph (b) is

amended by revising the last sentence to

read as follows:

§ 635.124 Participation in contract claim

awards and settlements.

* * * * *

(b) * * *. Claims arising on projects

handled on Certification Acceptance

projects or on exempt non-NHS projects

should be processed in accordance with

the State’s approved Certification

Acceptance Plan or Stewardship Plan,

as appropriate.

* * * * *

8. In § 635.126, the introductory text

of paragraph (b) is revised to read as

follows:

§ 635.126 Record of materials, supplies,

and labor.

* * * * *

(b) On all Federal-aid construction

contracts of $1 million or more for

projects on the National Highway

System, the SHA shall require the

contractor:

* * * * *

PART 771—ENVIRONMENTAL IMPACT

AND RELATED PROCEDURES

9. The authority citation for part 771

is revised to read as follows and all

other authority citations which appear

throughout part 771 are removed:

Authority: 42 U.S.C. 4321 et seq.; 23 U.S.C.

109, 110, 128, 138 and 315; 49 U.S.C. 303(c),

5301(e), 5323, and 5324; 40 CFR part 1500 et

seq.; 49 CFR 1.48(b) and 1.51.

10. Section 771.109 is amended by

adding paragraph (d) to read as follows:

§ 771.109 Applicability and

responsibilities.

* * * * *

(d) When entering into Federal-aid

project agreements pursuant to 23

U.S.C. 110, it shall be the responsibility

of the State highway agency to ensure

that the project is constructed in

accordance with and incorporates all

committed environmental impact

mitigation measures listed in approved

environmental documents unless the

State requests and receives written

Federal Highway Administration
6874 Federal Register / Vol. 62, No. 31 / Friday, February 14, 1997 / Rules and Regulations

approval to modify or delete such

mitigation features.

[FR Doc. 97–3746 Filed 2–13–97; 8:45 am]

BILLING CODE 4910–22–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8692]

RIN 1545–AR76

Reissuance of Mortgage Credit

Certificates; Correction

AGENCY: Internal Revenue Service,

Treasury.

ACTION: Correction to the final and

temporary regulations.

SUMMARY: This document contains a

correction to the final and temporary

regulations (TD 8692) which were

published in the Federal Register on

Tuesday, December 17, 1996 (61 FR

66212). The final and temporary

regulations relates to the reissuance of

mortgage credit certificates.

EFFECTIVE DATE: December 17, 1996.

FOR FURTHER INFORMATION CONTACT:

Michael Wachtel, (202) 622–3980 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final and temporary regulations

that is subject to this correction is under

section 25 of the Internal Revenue Code.

Need for Correction

As published, the final and temporary

regulations (TD 8692) contains an error

which may prove to be misleading and

is in need of clarification.

Correction of Publication

Accordingly, the publication of the

final and temporary regulations (TD

8692) which is the subject of FR Doc.

96–31772 is corrected as follows:

On page 66212, column 3, in the

heading, the RIN ‘‘RIN 1545-AR57’’ is

corrected to read ‘‘RIN 1545-AR76’’.

Cynthia E. Grigsby,

Chief, Regulations Unit Assistant Chief

Counsel (Corporate).

[FR Doc. 97–3653 Filed 2–13–97; 8:45 am]

BILLING CODE 4830–01–U

26 CFR Parts 1 and 602

[TD 8690]

RIN 1545–AS95

Deductibility, Substantiation, and

Disclosure of Certain Charitable

Contributions; Correction

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains

corrections to final regulations[TD 8690]

which were published in the Federal

Register for Monday, December 16, 1996

(61 FR 65946). The final regulations

provide guidance regarding the

allowance of certain charitable

contribution deductions, the

substantiation requirements for

charitable contributions of $250 or

more, and the disclosure requirements

for quid pro quo contributing in excess

of $75.

EFFECTIVE DATE: December 16, 1996.

FOR FURTHER INFORMATION CONTACT:

Jefferson K. Fox of the Office of

Assistant Chief Counsel (Income Tax

and Accounting) (202) 622–4930 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the

subject of these corrections are under

section 170 of the Internal Revenue

Code.

Need for Correction

As published final regulations [TD

8690] contain errors that are misleading

and in need of clarification.

Correction of Publication

Accordingly, the publication of final

regulations [TD 8690] which are the

subject of FR Doc. 96–31719 is corrected

as follows:

1. On page 65946, column three, in

the heading the RIN ‘‘1545-AS94’’ is

corrected to read ‘‘1545-AS95’’.

2. On page 65946, column three, in

the preamble following the paragraph

heading ‘‘Paperwork Reduction Act’’,

third paragraph, line 5, the language

‘‘average of six minutes.’’ is corrected to

read ‘‘average of six minutes. The

estimated annual burden per respondent

is two and a half hours.’’.

3. On page 65946, column three, in

the preamble following the paragraph

heading ‘‘Paperwork Reduction Act’’,

fourth paragraph, line 5, the language

‘‘Reports Clearance Officer, PC:FP,’’ is

corrected to read ‘‘Reports Clearance

Officer, T:FP,’’.

Cynthia E. Grigsby,

Chief, Regulations Unit Assistant Chief

Counsel (Corporate).

[FR Doc. 97–3654 Filed 2–13–97; 8:45 am]

BILLING CODE 4830–01–U

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Interest Assumptions

for Valuing Benefits

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty

Corporation’s regulation on Allocation

of Assets in Single-Employer Plans

prescribes interest assumptions for

valuing benefits under terminating

single-employer plans. This final rule

amends the regulation to adopt interest

assumptions for plans with valuation

dates in March 1997.

EFFECTIVE DATE: March 1, 1997.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General

Counsel, Office of the General Counsel,

Pension Benefit Guaranty Corporation,

1200 K Street, NW., Washington, DC

20005, 202–326–4024 (202–326–4179

for TTY and TDD).

SUPPLEMENTARY INFORMATION: The

PBGC’s regulation on Allocation of

Assets in Single-Employer Plans (29

CFR part 4044) prescribes actuarial

assumptions for valuing plan benefits of

terminating single-employer plans

covered by title IV of the Employee

Retirement Income Security Act of 1974.

Among the actuarial assumptions

prescribed in part 4044 are interest

assumptions. These interest

assumptions are intended to reflect

current conditions in the financial and

annuity markets.

Two sets of interest assumptions are

prescribed, one set for the valuation of

benefits to be paid as annuities and one

set for the valuation of benefits to be

paid as lump sums. This amendment

adds to appendix B to part 4044 the

annuity and lump sum interest

assumptions for valuing benefits in

plans with valuation dates during

March 1997.

For annuity benefits, the interest

assumptions will be 6.20 percent for the

first 25 years following the valuation

date and 5.00 percent thereafter. For

benefits to be paid as lump sums, the