Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations 51395 

■ 25. Amend § 102–117.355 by revising 

paragraph (b) to read as follows: 

§ 102–117.355 What is the 

Governmentwide Transportation Policy 

Council (GTPC)? 

* * * * * 

(b) Provides assistance to your agency 

with the requirement to report your 

transportation activity to GSA (see 

§ 102–117.345). 

§ 102–117.360 [Amended] 

■ 26. Amend § 102–117.360 by 

removing ‘‘Office of Transportation and 

Personal Property (MT)’’ and adding 

‘‘Office of Travel, Transportation and 

Asset Management (MT)’’ in its place. 

[FR Doc. 2010–20604 Filed 8–19–10; 8:45 am] 

BILLING CODE 6820–14–P 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE 

45 CFR Chapter XXV 

RIN 3045–AA51 

AmeriCorps National Service Program 

AGENCY: Corporation for National and 

Community Service. 

ACTION: Final rule. 

SUMMARY: The Corporation for National 

and Community Service (‘‘the 

Corporation’’) is issuing rules to 

implement changes to the operation of 

the National Service Trust as directed 

by the Edward M. Kennedy Serve 

America Act (‘‘the Serve America Act’’ 

or ‘‘SAA’’). In addition, this rule 

provides flexibility for exceptions to the 

80 percent cost reimbursement 

requirement for Senior Companion and 

Foster Grandparent programs based on 

hardship. Finally, this rule reorders and 

renumbers certain parts of the existing 

regulations, adds new definitions, and 

makes several minor technical edits. 

DATES: This final rule is effective 

September 20, 2010, except for the 

amendments to §§ 2522.220, 2522.230, 

2522.235, and 2522.240, which are 

effective August 20, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Amy Borgstrom, Docket Manager, 

Corporation for National and 

Community Service, (202) 606–6930, 

TDD (202) 606–3472. Persons with 

visual impairments may request this 

rule in an alternate format. 

SUPPLEMENTARY INFORMATION: 

List of Topics 

I. Background 

II. Public Comments 

III. Specifics of Final Rule and Analysis of 

Comments 

A. Definitions 

B. Eligibility to Receive an Education 

Award 

C. Successful Completion of a Term of 

Service 

D. Partial Awards for Release for 

Compelling Personal Circumstances 

E. Limitation on Amount of Award 

Disbursed to Institution of Higher 

Education 

F. Use of Education Award for a Program 

of Education Approved by the Secretary 

of Veterans Affairs 

G. Payment of Accrued Interest 

H. Amount of AmeriCorps Education 

Award 

I. Amount of Silver Scholar and Summer 

of Service Education Awards 

J. Limitation on Value of Education 

Awards Received 

K. Impact of Aggregate Value of Education 

Awards Received 

L. Transfer of Education Awards 

M. Periods of Availability for Silver 

Scholar, Summer of Service, and 

Transferred Education Awards 

N. Certifications of Successful Completion 

of Terms of Service 

O. Effect of Erroneous Certifications of 

Successful Completion of Terms of 

Service 

P. Public Service Loan Forgiveness and 

AmeriCorps 

Q. Term Limits for AmeriCorps State and 

National 

R. Selection Criteria Sub-Categories for 

AmeriCorps State and National 

S. Applications for the Same Project 

T. Pre-Approval of Formula Programs 

U. Hardship Waiver Permitted for Cost 

Reimbursement Requirement for Senior 

Companion and Foster Grandparent 

Programs. 

IV. Summary of Redesignations 

V. Effective Dates 

VI. Non-Regulatory Issues 

I. Background 

On April 21, 2009, President Obama 

signed into law the Edward M. Kennedy 

Serve America Act (Serve America Act). 

The Serve America Act reauthorizes and 

expands national service programs 

administered by the Corporation by 

amending the National and Community 

Service Act of 1990 (42 U.S.C. 12501 et 

seq.) (NCSA) and the Domestic 

Volunteer Service Act (42 U.S.C. 4950 et 

seq.) (DVSA). The Corporation engages 

more than five million Americans of all 

ages and backgrounds in service each 

year, including approximately 85,000 

AmeriCorps members, nearly 500,000 

Senior Corps volunteers, 1.5 million 

Learn and Serve America students, and 

three million additional community 

volunteers mobilized and managed 

through agency programs. 

Section 6101 of the Serve America 

Act authorizes the Chief Executive 

Officer of the Corporation to issue such 

regulations as may be necessary to carry 

out the amendments required under the 

Act. To fulfill that responsibility, on 

September 10, 2009, the Corporation 

issued an interim final rule to 

implement time-sensitive changes to the 

Corporation’s AmeriCorps State and 

National, Senior Corps, and Learn and 

Serve America program regulations. (74 

FR 46495). The changes resulting from 

the interim final rule were required as 

a result of amendments to the NCSA 

and DVSA by the Serve America Act, 

which took effect for most purposes on 

October 1, 2009. 

In that rule, we stated our intention to 

engage in full notice and comment 

rulemaking to implement those 

amendments mandated by the Serve 

America Act that did not require 

immediate regulatory action. This 

rulemaking is the Corporation’s second 

in a series to implement the 

amendments mandated by the Serve 

America Act. This rule primarily makes 

amendments and additions to existing 

regulations regarding the National 

Service Trust, including limitations on 

education award receipt, the available 

uses of an education award, eligibility to 

receive an education award, eligibility 

to transfer an education award, and the 

amount of an education award. This 

rule also addresses the limitation on the 

number of terms an individual may 

serve in an AmeriCorps State and 

National program. This rule adds 

flexibility in managing match 

requirements for Senior Companion and 

Foster Grandparent programs facing 

hardship. Finally, this rule makes 

several technical corrections 

inadvertently omitted from the interim 

final rule, including an amendment to 

the provision on pre-approval of 

Subtitle C formula programs, 

amendments to the AmeriCorps State 

and National selection criteria, and an 

amendment to include a reference to the 

Department of Education’s new Public 

Service Loan Forgiveness Program. 

II. Public Comments 

On February 23, 2010, the 

Corporation published a proposed rule 

in the Federal Register (75 FR 8013) 

with a 60-day comment period. In 

addition to accepting comments in 

writing through e-mail and through 

http://www.regulations.gov, the 

Corporation held four conference calls. 

During the public comment period, the 

Corporation received over 400 

comments on the proposed rule from 

grantees, the Corporation’s Inspector 

General, and other interested parties. 

Over half of the comments received 

recommended changes to the rule that 

are not currently authorized by statute, 

including expanding the types of people 

who can transfer and receive education 


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51396 Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations 

awards. The Corporation also received 

numerous comments on items not 

within the scope of this rulemaking, 

such as comments on the Silver Scholar 

program and the amount of the Foster 

Grandparent stipend. While these 

comments are not addressed here, the 

Corporation will take them under 

consideration in the future. 

The remaining comments expressed 

views on the merits of particular 

sections of the proposed regulations, as 

well as some broader policy statements 

and issues. Acknowledging that there 

are strong views on, and competing 

legitimate public policy interests 

relating to, issues in this rulemaking, 

the Corporation has carefully 

considered all of the comments on the 

proposed regulations. 

The Corporation has summarized 

below the major comments received on 

the proposed regulatory changes, and 

has described the changes we made in 

the final regulatory text in response to 

the comments received. In addition to 

the more substantive comments below, 

the Corporation received some editorial 

suggestions, some of which we have 

adopted. The Corporation has also made 

minor editorial changes to better 

organize the regulatory text. 

III. Specifics of the Final Rule and 

Analysis of Comments 

As discussed in more detail below, 

the final rule: 

• Amends the definitions of 

‘‘education award’’ and ‘‘term of service,’’ 

and adds definitions for ‘‘AmeriCorps 

education award,’’ ‘‘Silver Scholar 

education award,’’ ‘‘Summer of Service 

education award,’’ ‘‘approved Silver 

Scholar position,’’ ‘‘approved Summer of 

Service position,’’ ‘‘G.I. Bill approved 

program,’’ and ‘‘economically 

disadvantaged youth’’; 

• Adds individuals who complete 

approved Silver Scholar and Summer of 

Service positions as eligible to receive 

an education award; 

• Adds a requirement for programs to 

complete an end-of-term evaluation to 

determine whether an individual 

successfully completed the term of 

service; 

• Clarifies that an individual must 

have served satisfactorily prior to being 

released for compelling personal 

circumstances in order to receive a 

partial award; 

• Removes consideration of an 

individual’s veterans’ benefits when 

determining the maximum amount of an 

individual’s education award that may 

be disbursed to an institution of higher 

education; 

• Adds to the list of uses for an 

education award use to pay expenses 

incurred in enrolling in an educational 

institution or training establishment 

approved by the Secretary of Veterans 

Affairs for offering programs of 

education, apprenticeship, or on-the-job 

training for which educational 

assistance may be provided by the 

Secretary of Veterans Affairs; 

• Includes individuals who 

successfully complete service in a Silver 

Scholar program as eligible for the 

payment of accrued interest on qualified 

student loans; 

• Amends the amount of a full-time 

AmeriCorps education award to be 

equal to the maximum amount of a 

Federal Pell Grant for the year in which 

the AmeriCorps position is approved; 

• Adds sections stating the amount of 

a Silver Scholar education award 

($1,000) and Summer of Service 

education award ($500); 

• Adds limitation that no individual 

may receive more than the aggregate 

value of two full-time education awards 

and describes how an education award’s 

value is determined; 

• Adds a new part on transferring 

education awards, including limitations 

on who may transfer, who may receive 

a transferred award, and the processes 

for transferring, accepting, rejecting, and 

revoking a transferred award; 

• Clarifies the periods of availability 

for Silver Scholar education awards (7 

years), Summer of Service education 

awards (10 years), and transferred 

education awards (10 years); 

• Adds a requirement for programs to 

certify that an individual successfully 

completed a term of service in order to 

receive an education award; 

• Adds a section on the Corporation’s 

recourses in cases where a grantee 

makes an erroneous certification that an 

individual successfully completed a 

term of service; 

• Adds flexibility to permit an 

individual to credit service time 

towards receiving an education award 

and earning Public Service Loan 

Forgiveness through the Department of 

Education; 

• Increases the limit of terms one may 

serve in AmeriCorps State and National 

from two to four; 

• Removes selection criteria subcategories and relative weights for 

AmeriCorps State and National grant 

competitions; 

• Removes the restriction on 

submitting more than one application 

for the same project at the same time 

and clarifies that the Corporation will 

not provide more than one grant to the 

same project in the same fiscal year; 

• Removes the requirement that State 

Commissions pre-select formula 

programs prior to submitting a formula 

application; and 

• Adds an option for a hardship 

waiver for the Senior Companion and 

Foster Grandparent cost-reimbursement 

requirement. 

A. Definitions (§§ 2510.20, 2525.20) 

The National Service Trust is an 

account in the U.S. Treasury authorized 

to disburse education awards to national 

service participants. Prior to passage of 

the Serve America Act, the Corporation 

was authorized to disburse one type of 

education award from the National 

Service Trust—a national service 

education award, also known as a Segal 

AmeriCorps Education Award, available 

upon successful completion of a term of 

service in an approved AmeriCorps 

position. An ‘‘approved AmeriCorps 

position’’ is one of the positions 

described in Section 123 of the Act, 

including a position in AmeriCorps 

State and National, AmeriCorps NCCC, 

AmeriCorps VISTA, and the newly 

authorized ServeAmerica Fellowship 

program. 

The Serve America Act authorizes 

two new types of education awards: (1) 

A Silver Scholar education award of 

$1,000, available upon successful 

completion of a term of service in an 

approved Silver Scholar position; and 

(2) a Summer of Service education 

award of $500 (with authority for 

awards up to $750 for economically 

disadvantaged youth), available upon 

successful completion of a term of 

service in an approved Summer of 

Service position. Silver Scholar and 

Summer of Service education awards 

are available for use for the same 

purposes as AmeriCorps education 

awards: to repay qualified student loans, 

to pay for current educational expenses 

at an institution of higher education, 

and to pay for the cost of attending a 

program of education approved by the 

Secretary of Veterans Affairs. 

Several commenters sought 

clarification regarding the nature of the 

Summer of Service program, as the 

Corporation has supported multiple 

initiatives referred to as ‘‘Summers of 

Service.’’ To clarify, an approved 

Summer of Service position is one 

supported through a Learn and Serve 

America grant authorized and funded 

under Subtitle B of Title I of the NCSA. 

For more information on the Summer of 

Service program, see http://www.

learnandserve.gov/about/programs/

community_based.asp. 

To align with the amended statute, 

this rule amends § 2525.20 by adding 

three separate definitions for 

‘‘AmeriCorps education award,’’ ‘‘Silver 


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Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations 51397 

Scholar education award,’’ and 

‘‘Summer of Service education award.’’ 

Each of these awards is based upon 

successful completion of a term of 

service in an approved position. For a 

position of any type to be considered 

‘‘approved,’’ the Corporation must have 

agreed to provide a corresponding 

education award upon successful 

completion of a term of service in that 

position. This rule amends § 2510.20 by 

adding definitions to clarify that in 

order for a Summer of Service or Silver 

Scholar position to be considered 

approved, it must be approved by the 

Corporation for the receipt of a Silver 

Scholar or Summer of Service education 

award, respectively. 

A term of service in an approved 

Silver Scholar position must be for at 

least 350 hours during a period of one 

year. A term of service in an approved 

Summer of Service position must be for 

at least 100 hours ‘‘during the summer 

months.’’ To clarify that what 

constitutes a term of service will vary 

depending upon the program, this rule 

amends the definition of ‘‘term of 

service’’ in § 2525.20 to align with the 

NCSA by providing separate 

descriptions for terms of service in 

approved AmeriCorps, Silver Scholar, 

and Summer of Service positions. 

We received many requests for 

additional clarification on the Silver 

Scholar and Summer of Service 

programs, including whether there will 

be limitations on the number of terms 

an individual may serve in each 

program and how the Silver Scholar 

program will interact with other 

programs. Specific rules for these 

programs were not a part of this 

rulemaking; the Corporation may 

undertake separate rulemakings on 

these topics in the future. 

As stated above, a Summer of Service 

education award will generally be $500. 

However, the NCSA authorizes the 

Corporation to establish a Summer of 

Service award of $750 for ‘‘economically 

disadvantaged youth.’’ The Corporation 

defines ‘‘economically disadvantaged 

youth’’ for the purposes of the larger 

Summer of Service education award as 

a child who is eligible for a free lunch 

or breakfast under the Richard B. 

Russell National School Lunch Act. 

This rule amends § 2525.20 to add this 

definition. 

The Corporation received several 

comments questioning the Corporation’s 

definition of ‘‘economically 

disadvantaged youth,’’ including 

comments that such a definition would 

exclude home-schooled children and 

middle school youth who do not sign up 

for free lunch. Using the eligibility 

guidelines for participation in a free 

lunch or breakfast program under the 

Richard B. Russell National School 

Lunch would not exclude homeschooled students or students who do 

not sign up for a free lunch or breakfast. 

A child need not actually be enrolled in 

a school-based free lunch or breakfast 

program to qualify for the larger 

Summer of Service education award. 

The definition means only that the 

eligibility standards of such a program 

will be used to determine whether a 

child qualifies for a larger education 

award. 

The proposed rule defined an 

‘‘economically disadvantaged youth’’ as 

one who is eligible for free or reduced 

lunch and breakfast. Upon further 

consideration, the Corporation has 

amended the definition in the final rule 

to an individual who is eligible for free 

or reduced lunch or breakfast. 

While the Corporation has the 

authority to establish a larger award for 

economically disadvantaged youth, the 

Corporation has not elected to use this 

authority in the first year of funding 

Summer of Service programs. 

B. Eligibility To Receive an Education 

Award (§ 2526.10) 

The Serve America Act created two 

new types of education awards: Silver 

Scholar education awards and Summer 

of Service education awards, for $1,000 

and $500 respectively, available upon 

successful completion of an approved 

Silver Scholar or Summer of Service 

position. This rule amends § 2526.10 to 

include individuals who successfully 

complete terms of service in approved 

Silver Scholar or Summer of Service 

positions as eligible to receive an 

education award from the National 

Service Trust. 

Previously, the list of eligibility 

criteria to receive an education award in 

§ 2526.10 described the eligibility 

criteria to serve in AmeriCorps State 

and National, AmeriCorps NCCC, and 

AmeriCorps VISTA, including age and 

education criteria that would exclude 

individuals in Summer of Service 

positions, which are available for ‘‘youth 

who will be enrolled in any of grades 6 

through 12 at the end of the summer’’ 

(42 U.S.C. 12563(c)(8)). To align with 

the amended statute, this rule amends 

§ 2526.10 to defer to the eligibility 

criteria of individual programs for 

program-specific criteria. 

Under this rule, for an individual to 

be eligible to receive an education 

award, the organization responsible for 

the individual’s supervision must 

certify that the individual: (1) Met the 

applicable eligibility requirements for 

the approved national service position, 

approved Silver Scholar position, or 

approved Summer of Service position, 

as appropriate; (2) successfully 

completed the term of service in the 

AmeriCorps, Silver Scholar, or Summer 

of Service program; and (3) is a citizen, 

national, or lawful permanent resident 

alien of the United States. 

C. Successful Completion of a Term of 

Service (§ 2526.15) 

Section 146 of the NCSA directs the 

Corporation to determine a process by 

which an organization responsible for 

the supervision of a national service 

participant may determine whether the 

participant successfully completed a 

term of service. This rule adds a new 

§ 2526.15 describing that process. Under 

this rule, organizations supervising 

AmeriCorps State and National 

participants will continue to use the 

existing process detailed at 

§ 2522.220(d). 

For Summer of Service and Silver 

Scholar programs, the organization is 

required to conduct an end-of-term 

evaluation for each participant to 

determine whether the individual 

successfully completed the term of 

service. To determine whether an 

individual successfully completed a 

term, the program must examine 

whether: (1) The individual completed 

the required number of service hours for 

the respective term of service; (2) the 

individual performed satisfactorily on 

assignments, tasks, or projects; and 

(3) the individual met any other 

performance criteria as communicated 

to the member by the organization. 

What is considered ‘‘satisfactory 

performance’’ is within the discretion of 

the program. 

For the purpose of this requirement, 

certification that an individual did or 

did not successfully complete a term of 

service will be deemed to incorporate an 

end-of-term evaluation. A certification 

of successful completion will not, 

however, suffice as documentation of 

hours served. 

One commenter noted that the 

proposed language of § 2526.15 is not 

explicit that an individual must satisfy 

all three elements of the evaluation in 

order to be considered to have 

successfully completed a term of 

service. 

The Corporation has amended 

§ 2526.15 to clarify that a certification of 

successful completion necessarily 

encompasses a determination that the 

individual completed the service hour 

requirement, performed satisfactorily, 

and met any other performance criteria 

set by the program. 

The Corporation received several 

requests for standard definitions of 

‘‘satisfactory’’ and ‘‘unsatisfactory.’’ To 


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51398 Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations 

afford programs the necessary flexibility 

to supervise and manage their members, 

the Corporation declines to set a 

standard for what is considered 

‘‘satisfactory.’’ 

The proposed rule inadvertently 

included AmeriCorps VISTA and 

AmeriCorps NCCC in the above 

certification process. The Corporation 

uses its own process to determine 

whether a VISTA or NCCC member has 

successfully completed a term of 

service; the above rules do not apply to 

VISTA or NCCC. 

D. Partial Awards for Release for 

Compelling Personal Circumstances 

(§§ 2526.20–25) 

Section 147 of the NCSA authorizes 

the Corporation to make education 

awards in five different amount 

categories: (1) An amount for successful 

completion of a full-time approved 

national service position; (2) an amount 

for successful completion of a part-time 

approved national service position; 

(3) an amount for partial completion of 

service, available upon release for 

compelling personal circumstances from 

an approved national service position; 

(4) an amount for a Silver Scholar 

education award for successful 

completion of an approved Silver 

Scholar position; and (5) an amount for 

a Summer of Service education award 

for successful completion of an 

approved Summer of Service position. 

Partial awards are described only in the 

context of release for compelling 

personal circumstances from an 

approved national service position. 

In describing types of service 

positions in section 146, the Act 

distinguishes between approved 

national service positions (which are 

described in section 123 to include 

AmeriCorps State and National, 

AmeriCorps VISTA, AmeriCorps NCCC, 

and ServeAmerica Fellows), approved 

Silver Scholar positions, and approved 

Summer of Service positions. The Act 

does not provide for a pro-rated award 

for a release for compelling personal 

circumstances from an approved Silver 

Scholar or Summer of Service position. 

This rule amends § 2526.20 and adds 

a new § 2526.25 to clarify that partial 

awards will not be available for 

individuals who are released early from 

Silver Scholar or Summer of Service 

positions, even for compelling reasons. 

We received several comments 

recommending that a release for 

compelling personal circumstances be 

permitted for Silver Scholars and 

Summer of Service positions. As stated 

above, there is no authority for a partial 

award for a release for compelling 

personal circumstances from a Silver 

Scholar or Summer of Service position. 

This rule also amends § 2526.20 to 

reflect the statutory requirement that an 

individual serving in an approved 

AmeriCorps position must have 

performed satisfactorily before being 

released for compelling personal 

circumstances in order to receive a 

partial education award. 

E. Limitation on Amount of Award 

Disbursed to Institution of Higher 

Education (§§ 2528.30–40) 

Prior to the effective date of the Serve 

America Act, under section 148(c)(6) of 

the NCSA, the Corporation’s 

disbursement from an individual’s 

education award for any period of 

enrollment at an institution of higher 

education could not exceed the 

difference between that individual’s 

cost of attendance for that period of 

enrollment and the sum of (1) the 

individual’s estimated financial 

assistance for that period under part A 

of title IV of the Higher Education Act 

and (2) the individual’s veterans’ 

benefits as defined under section 480(c) 

of the Higher Education Act. The Serve 

America Act amended section 148(c)(6) 

to eliminate consideration of an 

individual’s veterans’ benefits in this 

manner. This rule amends §§ 2528.30 

and 2528.40 to align with amended 

section 148(c)(6) by removing any 

consideration of an individual’s 

veterans’ benefits when determining the 

maximum amount of the individual’s 

education award that may be disbursed 

to an institution of higher education. 

F. Use of Education Award for a 

Program of Education Approved by the 

Secretary of Veterans Affairs 

(§§ 2528.10, 60–80) 

The Serve America Act amended 

section 148 of the NCSA to add a fifth 

available use for an education award. 

Under the amended law, the education 

award is available ‘‘to pay expenses 

incurred in enrolling in an educational 

institution or training establishment that 

is approved under chapter 36 of title 38, 

United States Code, or other applicable 

provisions of law, for offering programs 

of education, apprenticeship, or on-job 

training for which educational 

assistance may be provided by the 

Secretary of Veterans Affairs.’’ (42 U.S.C. 

12604(a)(4)). This rule amends § 2528.10 

to add this use to the list of available 

uses, and adds rules on the process for 

using the award for this purpose. 

Benefits offered under chapter 36 of title 

38, U.S.C., were authorized under the 

Montgomery G.I. Bill and the Post 9/11 

G.I. Bill. This rule adds a definition for 

‘‘G.I. Bill approved programs.’’ 

This rule requires that the institution 

or training establishment at which an 

individual requests to use an education 

award certify under penalty of law that 

the amount requested will be used to 

pay all or part of the individual’s 

expenses attributable to a course, 

program of education, apprenticeship, 

or job training program offered by that 

institution or training establishment. 

Further, the institution or training 

establishment must certify under 

penalty of law that the course or 

program for which the individual is 

requesting to use the education award is 

currently approved by the State 

approving agency for the State where 

the institution or establishment is 

located, or by the Secretary of Veterans 

Affairs. 

The Department of Veterans Affairs is 

the agency responsible for approving 

courses or programs of education under 

chapter 36 of title 38, U.S. Code, and the 

Corporation defers to the decisions 

made by the State approving agencies 

and the Secretary of Veterans Affairs 

regarding approving—or withdrawing 

approval—of a program of education. 

The Corporation will only disburse 

funds to an institution or establishment 

if it verifies that a course or program of 

education has received the requisite 

approval. 

Unlike G.I. education benefits, which 

may be disbursed directly to an 

individual, under this rule, the 

education award will only be disbursed 

directly to the educational institution or 

training establishment. 

If an individual for whom the 

Corporation has disbursed an education 

award withdraws or fails to complete 

the period of enrollment at an 

educational institution or training 

establishment in a program of education 

approved by the Secretary of Veterans 

Affairs, this rule requires the 

educational institution or training 

establishment to provide a pro-rated 

refund to the Corporation. The 

Corporation will provide more detailed 

guidance on the refund process during 

implementation. 

Please Note: An individual will begin 

being able to use the Corporation’s online 

systems to request the use of an award at a 

G.I. Bill approved program beginning midAugust, 2010 or 30 days following the 

publishing of this regulation, whichever is 

later. 

G. Payment of Accrued Interest 

(§ 2529.10) 

This rule amends § 2529.10, which 

previously provided for interest 

forbearance to individuals serving in 

approved AmeriCorps positions, to 

clarify that individuals who 


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Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations 51399 

successfully complete terms of service 

in approved Silver Scholar positions 

may also be eligible for payments of 

interest accrued on qualified student 

loans while serving. The rule does not 

include Summer of Service positions, as 

Summer of Service positions are 

reserved for rising 6th through 12th 

graders who, having not yet enrolled in 

an institution of higher education, will 

not yet have incurred qualified student 

loans. 

The Serve America Act also amended 

section 123 by expanding the list of 

positions considered to be approved 

national service positions to include 

‘‘a position involving service in the 

ServeAmerica Fellowship program.’’ 

The term ‘‘approved national service 

position’’ is used interchangeably with 

the term ‘‘approved AmeriCorps 

position.’’ Therefore, an individual who 

serves in a ServeAmerica Fellowship 

position will be eligible for the payment 

of accrued interest on qualified student 

loans upon successful completion of a 

term of service. 

H. Amount of AmeriCorps Education 

Award (§ 2527.10) 

Upon successful completion of a term 

of service in an approved AmeriCorps 

position, including positions in 

AmeriCorps State and National, 

AmeriCorps VISTA, AmeriCorps NCCC, 

and ServeAmerica Fellows, an 

individual is eligible to receive an 

AmeriCorps education award from the 

National Service Trust. Prior to the 

passage of the Serve America Act, the 

amount of a full-time AmeriCorps 

education award was set in law at 

$4,725. 

The Serve America Act amended 

section 147 of the NCSA by changing 

the amount of a full-time national 

service education award to be ‘‘equal to 

the maximum amount of a Federal Pell 

Grant under section 401 of the Higher 

Education Act of 1965 (20 U.S.C. 1071a) 

that a student eligible for such Grant 

may receive in the aggregate * * * for 

the year for which the national service 

position is approved by the 

Corporation.’’ This rule amends 

§ 2527.10 to conform to the changes in 

the NCSA in the amount of the full-time 

award. 

The amount of the Pell Grant upon 

which AmeriCorps education awards 

will be based may change each year. 

Thus, the amount of an AmeriCorps 

education award may also change 

annually. To determine the amount of 

an AmeriCorps education award, the 

Corporation will use the amount of the 

Pell Grant as of October 1 (the first day 

of the Federal fiscal year) in the fiscal 

year in which the national service 

position is approved. For example, if a 

national service position is approved in 

September of 2010, the amount of the 

education award will be based on a fulltime amount of $5,350—the amount of 

the Pell Grant as of October 1, 2009 (the 

first day of fiscal year 2010). 

The trigger date for determining the 

amount of an education award for a 

particular national service position is 

the date that position is approved—not 

the date the individual begins serving in 

a national service position. Not all 

positions that begin in a fiscal year will 

receive an education award based on the 

amount of the Pell Grant in that fiscal 

year. 

In accordance with the national 

service laws, funding for education 

awards is obligated on a different 

schedule for AmeriCorps VISTA, 

AmeriCorps NCCC, and AmeriCorps 

State and National. What follows is a 

detailed discussion on how the approval 

date for a national service position is 

determined for the purposes of 

establishing the amount of an education 

award. 

For AmeriCorps VISTA, a position is 

considered to be approved at the time 

the Corporation enters into an 

enforceable agreement with an 

individual, signified by the individual’s 

taking the VISTA oath of service. (42 

U.S.C. 4954(c)). For an AmeriCorps 

VISTA position, the education award 

amount is equal to the amount of a Pell 

Grant on October 1 of the fiscal year in 

which the VISTA takes the oath of 

service. For example, a VISTA who 

takes the oath on any date between 

October 1, 2009, and September 30, 

2010, is eligible for a full-time award 

amount of $5,350—the amount of the 

Pell Grant as of October 1, 2009. 

For AmeriCorps NCCC, a position is 

considered to be approved at the time 

the Corporation enters into an 

enforceable agreement with an 

individual, signified by the individual’s 

signing of an AmeriCorps NCCC 

member agreement. (42 U.S.C. 

12606(a)(1)(A)(i)). For an AmeriCorps 

NCCC position, the education award 

amount will be equal to the amount of 

a Pell Grant on October 1 of the fiscal 

year in which the AmeriCorps NCCC 

member signs the member agreement. 

Therefore, an individual who signs an 

AmeriCorps NCCC member agreement 

on any date between October 1, 2009, 

and September 30, 2010, will receive an 

award based on a full-time award 

amount of $5,350—the amount of the 

Pell Grant as of October 1, 2009. 

For AmeriCorps State and National, 

by law, a position is considered to be 

approved at the time the Corporation 

executes a grant used to support the 

AmeriCorps member—not the date an 

AmeriCorps member takes an oath, 

signs an agreement, or begins service. 

(42 U.S.C. 12606(a)(1)(A)(ii)). 

AmeriCorps State and National grants 

are generally made during the spring 

and summer, i.e., in the latter half of a 

fiscal year. As a result, unlike 

AmeriCorps NCCC and AmeriCorps 

VISTA members (who are eligible for 

the new amount of the award as of 

October 1), the earliest point at which 

an AmeriCorps member may begin 

serving in a position funded by those 

grants may be closer to the end of a 

fiscal year. 

For example, if an AmeriCorps State 

program receives a grant and an 

allotment of AmeriCorps positions on 

August 1, 2010, and enrolls a member 

using fiscal year 2010 grant funds on 

August 3, 2010, that member will 

receive an education award based on a 

full-time amount of $5,350—the amount 

of the Pell Grant on October 1, 2009, the 

first day of the fiscal year in which the 

August 2010 grant was made. If the 

program then enrolls another member 

on October 10, 2010, that member will 

also receive an education award based 

on the $5,350 amount—even though at 

that point a new fiscal year has begun, 

and the Pell Grant for fiscal year 2011 

may have increased or decreased as of 

October 1, 2010. The determining factor 

is that the member position was 

approved by the Corporation in a grant 

awarded in fiscal year 2010. 

Further, unlike an AmeriCorps NCCC 

or AmeriCorps VISTA member, whose 

approval date will closely correlate with 

the day the individual begins service, it 

is possible for an AmeriCorps State and 

National member beginning service in 

one fiscal year to be supported with 

funds from a grant made in a prior fiscal 

year. Therefore, it is possible for two 

AmeriCorps members starting service on 

the same day to be supported by two 

different grant awards made in two 

different fiscal years, resulting in two 

different approval dates and two 

different education award amounts. 

For example, consider two programs 

with different member enrollment 

periods. Program A has an enrollment 

period of September 1, 2010 to August 

30, 2011. Program B’s enrollment period 

is September 15, 2010 to September 14, 

2011. Both programs receive a grant 

award for the second year of their grant 

in the summer of 2011, and each enrolls 

a member on September 2, 2011. The 

member enrolling in Program A will be 

enrolling at the beginning of the 

enrollment period for that program year, 

and will receive an education award 

based on the amount of a full-time 

award on October 1, 2010. The member 


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enrolling in Program B will be enrolling 

at the end of the enrollment period for 

the prior program year, and will receive 

an education award based on the 

amount of a full-time award on October 

1, 2009. 

The Corporation received several 

comments expressing concern about the 

possibility of two members serving 

simultaneously but receiving different 

education award amounts. Specifically, 

these commenters noted that different 

education award amounts may give the 

appearance of inequity between 

members. 

In the proposed rule, the Corporation 

included an example of a scenario 

under which a program enrolls two 

members on the same day using one slot 

from the prior year grant and one slot 

from the current year grant. While such 

a scenario is possible, it is unlikely to 

occur. However, it is likely that an 

AmeriCorps State and National member 

may start on the same day as an 

AmeriCorps VISTA member at the same 

service site. To mitigate a perception of 

inequity among members in any case, 

and to reduce confusion, it is essential 

for AmeriCorps programs—particularly 

those with AmeriCorps State and 

National members—to clearly 

communicate to each member, prior to 

the commencement of service, the 

amount of the education award being 

offered to the individual for successful 

completion of the term of service. 

Beginning with grants made in 2010, 

AmeriCorps State and National grant 

provisions will direct grantees to specify 

the amount of the education award 

being offered for successful completion 

of a term of service in the member 

service agreement. 

One commenter recommended that 

the Corporation make the education 

award amount for a particular 

AmeriCorps position available to the 

member and the program through the 

MyAmeriCorps portal. The Corporation 

is developing its systems to provide this 

information through the MyAmeriCorps 

portal in the near future, but will also 

require programs to communicate this 

information to the member in the 

member service agreement. 

It is important to remember that the 

Serve America Act went into effect on 

October 1, 2009. All positions approved 

prior to that date are eligible for awards 

based on a full-time amount of $4,725. 

To learn more about the amount of the 

education award and how it is 

determined, visit the AmeriCorps Web 

site at http://www.americorps.gov/ 

for_individuals/benefits/ 

benefits_ed_award.asp. 

I. Amount of Silver Scholar and 

Summer of Service Education Awards 

(§ 2527.10) 

As previously discussed, the Serve 

America Act created two new types of 

education awards: Silver Scholar 

education awards and Summer of 

Service education awards. This rule 

amends § 2527.10 to include the Silver 

Scholar education award of $1,000, 

available upon successful completion of 

a term of service of at least 350 hours 

in a Silver Scholar position. 

This rule also amends § 2527.10 to 

include the Summer of Service 

education award of $500, available upon 

successful completion of at least 100 

hours in a Summer of Service position. 

The Corporation may authorize a 

Summer of Service education award of 

$750 if the participant is an 

economically disadvantaged youth. 

In the proposed rule, we stated that in 

order to authorize the increased award, 

the Corporation must receive a 

certification from the school with which 

the participant served that the 

participant meets the definition of 

‘‘economically disadvantaged youth,’’ 

defined in this rule as a child that is 

eligible for a free lunch or breakfast 

under the Richard B. Russell National 

School Lunch Act (42 U.S.C. 1758(b)). 

Upon further consideration, the 

Corporation is changing this 

certification requirement in the final 

rule, and will instead require 

verification from the school or 

organization with which the participant 

served. 

Pro-rated education awards for an 

early release for compelling personal 

circumstances from a Silver Scholar or 

Summer of Service position are not 

available. If an individual fails to 

complete either type of term for any 

reason, the individual will not receive 

an award. And unlike the AmeriCorps 

education award described in the 

previous section, under the authorizing 

statute Silver Scholar and Summer of 

Service education awards will not vary 

in amount from one year to the next. 

Summer of Service and Silver Scholar 

education awards may be used for the 

same purposes as AmeriCorps education 

awards, including paying for the cost of 

attendance or other current educational 

expenses at an institution of higher 

education, to pay expenses incurred in 

enrolling in an educational institution 

or training establishment approved by 

the Secretary of Veteran’s Affairs for 

programs of education, apprenticeship, 

or on the job training, and to repay 

qualified student loans. 

J. Limitation on Value of Education 

Awards Received (§ 2526.50) 

Prior to the passage of the Serve 

America Act, the national service laws 

limited individuals to receive an 

education award ‘‘only on the basis of 

the first and second * * * terms of 

service.’’ A term of service includes fulltime, part-time, or less-than-part-time 

terms, terms in which the person served 

at least 15 percent of the term of service, 

and terms for which an individual was 

released for misconduct regardless of 

the amount of time served. Terms range 

in service hour requirements from 300 

hours to more than 1,700 hours, but 

despite the contrast in the level of 

commitment required or the service 

opportunity presented, all terms were 

previously considered of equal value for 

the purposes of limiting the receipt of 

education awards. 

The Serve America Act amended the 

national service laws to no longer limit 

the receipt of education awards based 

upon the number of terms served, but 

rather place the limit on the aggregate 

value of education awards received. 

Section 146(c) now states: ‘‘An 

individual may not receive, through 

national service educational awards and 

silver scholar educational awards, more 

than an amount equal to the aggregate 

value of [two] such awards for full-time 

service.’’ 

The amended law allows for an 

individual to earn more than two 

education awards, so long as the 

aggregate value of all awards received 

does not exceed the aggregate value of 

two full-time national service education 

awards. Significantly, the law does not 

create an entitlement to receive the 

aggregate value of two full-time awards; 

rather, it prohibits an individual from 

receiving more than the aggregate value 

of two full-time awards. This rule 

amends § 2526.50 to align with the 

amended statutory language. 

As previously discussed, the amount 

of a full-time education award is now 

tied to the amount of a Pell Grant in the 

year the position is awarded, and is 

likely to change each year. The 

Corporation does not interpret the 

amended statute to provide that the 

value of two full-time education awards 

for the purposes of this section is equal 

to the dollar amount of two full-time 

awards and would thus similarly change 

on an annual basis, providing a 

potentially unlimited number of service 

opportunities and education awards. 

Nor does the Corporation interpret this 

change as a means of ensuring that all 

national service participants receive an 

identical amount. Rather, the 

Corporation interprets the change in 


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focus from the number of terms served 

to the value of education awards 

received as a means of affording 

individuals serving in less-than-fulltime terms more service opportunities. 

In other words, for the purposes of the 

limitation on education award receipt, 

value is distinct from amount. 

The Corporation considers an 

education award to be the counterpart to 

successful completion of a term of 

service, and while the amount of that 

award might change, the service 

opportunity offered by a particular term 

of service is constant. The Corporation 

interprets the ‘‘value’’ of a full-time 

education award to be representative of 

the service opportunity upon which it is 

based. Therefore, a limitation of two 

full-time education awards can be 

understood as a limitation of two fulltime service opportunities. 

In order to attribute a value to an 

award received on the basis of a static 

service opportunity in an environment 

in which the award amount may 

fluctuate annually, the Corporation will 

measure the value of any award amount 

relative to the amount of a full-time 

award in a given year. For the purposes 

of this section, the value of an education 

award will be considered equal to the 

actual amount of the education award 

received divided by the amount of a 

full-time education award in the fiscal 

year the AmeriCorps or Silver Scholar 

position upon which the award is based 

was approved. Using this calculation, 

every award received will be considered 

to have a value between 0 and 1. 

Although the amount of a full-time 

award may change, the value of a fulltime award will always be equal to 1. 

For example, an individual who 

completed a part-time position 

approved in 2009 received an education 

award of $2,362.50. The value of this 

award is the amount received, 

$2,362.50, divided by $4,725, the 

amount of a full-time award in the year 

the position was approved, or .5. 

Another individual completes a parttime position approved in 2010 and 

receives an education award of $2,675. 

The value of this award is the amount 

received, $2,675, divided by $5,350, the 

amount of a full-time award in the year 

the position was approved, or .5. Using 

this calculation, the value of an award 

received for part-time service will 

always be equal to .5. 

If an individual leaves a term of 

service for compelling personal 

circumstances and receives a pro-rated 

award, the value attributed to that 

award will be based on the amount 

actually received. For example, an 

individual was released for compelling 

personal circumstances from a full-time 

position approved in 2009 after serving 

800 hours, and received a pro-rated 

award of $2,223.52. The value of this 

award is the amount of the award 

received, $2,223.52, divided by, $4,725, 

the amount of a full-time award in the 

year the position was approved, or .47. 

Another individual was released for 

compelling personal circumstances from 

a full-time position approved in 2010 

after serving 800 hours, and received a 

pro-rated award of $2,517.64. The value 

of this award is the amount of the award 

received, $2,517.64, divided by $5,350, 

the amount of a full-time award in the 

year the position was approved, or .47. 

If an individual exits a term for cause 

and does not receive an education 

award, the amount received will be $0, 

and therefore no value will be attributed 

to the individual for purposes of this 

section. However, an exit for cause will 

have an impact on the individual’s 

eligibility to serve subsequent terms of 

service. A term exited for cause is 

considered a term of service for the 

purposes of term limitations for 

individual programs. For example, if an 

individual has already served one term 

of service in AmeriCorps NCCC, and 

exits a second term in AmeriCorps 

NCCC for cause, the individual has 

exhausted the two terms of service one 

may serve in AmeriCorps NCCC. 

Additionally, if an individual is 

released for cause from an approved 

AmeriCorps position (including 

positions in AmeriCorps State and 

National, AmeriCorps VISTA, 

AmeriCorps NCCC, and ServeAmerica 

Fellows), and the program determines in 

the end-of-term evaluation that the 

individual served unsatisfactorily, the 

individual may not serve a subsequent 

term in an approved AmeriCorps 

position. 

For the purpose of transferred awards 

(discussed further in the section in this 

preamble on transfer), the value of the 

award received by a transferee will be 

the actual amount of the award received 

divided by the amount of a full-time 

award in the year the position for which 

the transferring individual received the 

award was approved. For example, if an 

individual receives an education award 

based on a term of service approved in 

2010, and later transfers $1,000 of that 


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award to a grandchild, the grandchild 

will be considered to have received an 

award value of .19, the result of dividing 

the amount received, $1,000, by the 

amount of a full-time award in 2010, 

$5,350. If the transferring individual 

revokes all or part of an award, the 

value considered to be received by the 

designated individual will be decreased 

accordingly. An individual who 

receives the aggregate value of two fulltime awards through transferred awards 

may enroll in a national service 

position, but will not be eligible to 

receive any additional AmeriCorps or 

Silver Scholar education awards. 

For purposes of this section, an award 

is considered to be received at the time 

it becomes available for an individual’s 

use, and the fact that an individual does 

not use an award does not diminish its 

value. In addition, an individual who 

transfers an award will still be 

considered to have received the award, 

and the value of the award for the 

purposes of this section will not be 

decreased by the amount the individual 

transfers to a designated individual. For 

example, if an individual successfully 

completes two full-time terms of 

service, and the individual then 

transfers both full-time awards to a 

child, both the child and the 

transferring individual will be 

considered to have received two fulltime awards. 

This rule states that an individual 

may receive no more than the aggregate 

value of two full-time education awards. 

The aggregate value of awards received 

will be equal to the sum of the value of 

each national service education award 

received (awards received from terms of 

service in AmeriCorps State and 

National, AmeriCorps VISTA, 

AmeriCorps NCCC, or ServeAmerica 

fellowships), including partial awards, 

the value of each Silver Scholar award 

received, and the value of each 

transferred award received. The 

calculation of the aggregate value does 

not include Summer of Service 

education awards, as these are excluded 

by law. 

For example, an individual served a 

full-time term in 2008 and received an 

award of $4,725. The same individual 

served a part-time term in 2009 and 

received an award of $2,362.50. The 

individual enrolls in a minimum-time 

term in 2010 and receives an award of 

$1,132.60. The value of the first award 

is 1 ($4,725 divided by $4,725), the 

value of the second award is .5 

($2,362.50 divided by $4,725), and the 

value of the third award is .21 

($1,132.60 divided by $5,350). The 

aggregate value of awards received is 

1.71 (1 + .5 + .21). 

The Corporation has received 

questions about whether awards 

received prior to the effective date of the 

Serve America Act will be included in 

determining the aggregate value of 

education awards received. The national 

service laws, as amended by the Serve 

America Act, do not differentiate 

between awards received prior to the 

effective date and those received 

subsequent to the effective date. All 

awards earned in the past will have a 

value attributed to them for the 

purposes of this section. Thus, under 

the proposed rule, if an individual has 

received two full-time education awards 

in the past, that individual is not 

eligible to receive another education 

award. 

K. Impact of Aggregate Value of 

Education Awards Received (§§ 2526.55, 

2527.10) 

The proposed rule included a 

limitation that an individual would not 

be permitted to enroll in a subsequent 

term of service if successful completion 

of that term would result in receipt of 

an education award the value of which, 

when added to the aggregate value of 

awards previously received, would be 

greater than 2. The proposed rule 

provided that this would not prevent an 

individual from enrolling in a term of 

service for which the individual chooses 

to waive receipt of the education award. 

The Corporation received many 

comments on this provision. Some 

commenters requested additional 

clarification on waiving an education 

award. Other commenters questioned 

the Corporation’s proposal to require an 

individual who is not eligible to receive 

an entire education award for a 

particular term of service to waive the 

entire award in order to enroll in the 

term. Among the comments received, 

there was broad support for permitting 

an individual eligible to receive only a 

portion of an award to receive that 

portion upon successful completion of a 

term of service. 

After further consideration, the 

Corporation agrees that an individual 

who is eligible to receive a portion of an 

education award should be able to 

receive that portion upon successful 

completion of the term of service. Under 

this rule, if an amount offered for a term 

of service has a value that, when added 

to the aggregate value of awards 

previously received, would exceed 2, 

the individual will receive a discounted 

award representing that portion of the 

award having a value for which the 

individual is eligible. 

However, the Corporation will need 

time to implement this policy properly, 

including time to make necessary 

upgrades to our systems. We estimate 

that our systems should be updated by 

November 1, 2010. Prior to that date, the 

Corporation will notify applicants in the 

MyAmeriCorps portal of the new rule, 

but will not provide individualized 

notice to applicants of the amount of 

award the individual may receive. Once 

the system changes have been 

implemented, an individual will be 

notified upon enrollment in a particular 

term of service of the aggregate value of 

awards the individual has previously 

received, and the maximum award 

amount the individual is eligible to 

receive for that term of service. The 

maximum amount the individual will 

receive upon successful completion will 

be either the amount of the award 

offered for that term of service, or a 

discounted amount having a value that, 

when added to the aggregate value of 

awards previously received, does not 

exceed 2—whichever is less. The 

discounted amount is determined by 

multiplying the value the individual is 

eligible to receive by the amount of a 

full-time award in the year the position 

is approved, and may be equal to zero 

dollars. 

(2¥aggregate value of education awards 

received) 

× 

(amount of full-time education award in 

year position was approved) 

This rule adds a new paragraph (g) to 

§ 2527.10 describing how a discounted 

award amount is determined. 

For example, consider an individual 

who has received an aggregate value of 

1.26 awards who wishes to enroll in a 

full-time term offering an award with a 

value of 1. The individual is eligible to 

receive an award with a value of .74, 

and therefore upon successful 

completion will receive a discounted 

award amount of $3,959 ((2¥1.26) × 

$5,350). 

If an individual had already received 

the value of two full-time education 

awards, the maximum discounted 

amount the individual is eligible to 

receive for successful completion of the 

term of service is $0 ((2¥2) × $5,350). 

An individual must successfully 

complete the term of service in which 

the individual enrolls in order to receive 

the entire amount of the education 

award for which the individual is 

eligible. Section 147(c) of the Act states 

that if ‘‘an individual serving in an 

approved national service position is 

released [for compelling personal 

circumstances], the Corporation may 

provide the individual with that portion 

of the national service educational 

award approved for the individual that 

corresponds to the quantity of the term 


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of service actually completed by the 

individual.’’ An individual is only 

approved to receive an award amount 

for which the individual is eligible. If an 

individual is eligible to receive a 

discounted education award, and the 

individual leaves a term of service for 

compelling personal circumstances, the 

individual will receive a corresponding 

portion of the discounted award 

amount. 

For example, consider an individual 

who enrolls in a term of service offering 

an award amount of $5,350, but who is 

only eligible to receive an amount of 

$3,000 based on the aggregate value of 

awards the individual had previously 

received. If this individual exits the 

term for compelling personal 

circumstances after serving 50% of the 

required service hours, the individual 

will receive $1,500, or 50% of $3,000— 

the discounted award amount for which 

the individual was approved. 

Please Note: the option to elect to waive an 

education award was proposed in order to 

enable an individual to serve in a term of 

service offering an education award amount 

with a value exceeding the value for which 

the individual is eligible. The Corporation is 

not including a waiver requirement or option 

in the final rule. 

L. Transfer of Education Awards (Part 

2530) 

The Serve America Act amended 

Subtitle D of title I of the NCSA to 

authorize individuals to transfer an 

education award, with limitations on 

who can transfer an award, and who can 

receive a transferred award. By statute, 

to transfer an award, an individual 

must: (1) Have successfully completed a 

term of service in an approved 

AmeriCorps State and National or Silver 

Scholar position; and (2) have been age 

55 or older before beginning that term 

of service. To receive an award, an 

individual must: (1) Be designated by a 

qualifying transferring individual; (2) be 

the child, grandchild, or foster child of 

the transferring individual; and (3) be a 

citizen, national, or lawful permanent 

resident alien of the United States. The 

effective date of this provision was 

October 1, 2009; only individuals 

beginning service on or after that date 

will be eligible to transfer an education 

award. 

Section 148(f) specifies that the 

‘‘designated individual,’’ meaning the 

child, grandchild, or foster child 

designated by the transferring 

individual to receive the award, may 

use the award for the purposes 

described in paragraphs (b), (c), and (d) 

of that section—i.e., to repay qualified 

student loans, to pay for current 

educational expenses at an institution of 

higher education, or to pay expenses 

incurred in an approved school-to-work 

program. The school-to-work program, 

authorized under the School-to-Work 

Opportunities Act of 1994, sunsetted in 

2001; thus, in practice, the designated 

individual would be able to use the 

award only for current educational 

expenses or to repay qualified student 

loans. The NCSA as amended does not 

extend the use of the transferred award 

to pay expenses incurred in enrolling in 

an institution or training establishment 

approved under the G.I. Bill to 

designated individuals, nor does it 

permit designated individuals to receive 

interest forbearance payments as 

described in Section 148(e). 

This section of the NCSA also permits 

a transferring individual to, ‘‘on any date 

on which a portion of the education 

award remains unused, modify or 

revoke the transfer of the educational 

award with respect to that portion.’’ 

This rule adds a new part 2530 on 

transfer, including rules reflecting 

statutory guidelines, and details on the 

processes for requesting transfers and 

revocations of transferred awards. The 

NCSA also includes a provision 

requiring the Corporation to ‘‘establish 

requirements to prevent waste, fraud, or 

abuse in connection with the transfer of 

an educational award and to protect the 

integrity of the educational award under 

this subsection.’’ This rule includes 

several measures intended to prevent 

waste, fraud, or abuse in connection 

with the transfer of an education award. 

First, as part of the process for the 

transferring individual to request the 

transfer and the process for the 

designated individual to accept the 

transfer, this rule requires both the 

transferring individual and the 

designated individual to provide a 

certification under penalty of law that 

each meets the criteria to transfer, or 

receive, a transferred award. As with 

any certification, an individual may be 

required to produce verifying 

documentation. 

This rule specifies in § 2530.70 that 

an individual is not required to accept 

a transferred award. We received a 

question regarding whether an 

individual may reject an award at any 

time, or must do so at the outset. An 

individual may reject an award at the 

outset, or at any point after acceptance. 

Any award amount that has been 

rejected will not be considered when 

calculating the aggregate value of 

education awards an individual has 

received. A transferring individual may 

re-transfer an award if the designated 

individual rejects the transferred award 

in full and the award has not yet 

expired. 

Second, this rule limits an individual 

to making a single transfer of an 

education award that is attributable to a 

single term of service. An individual 

may transfer an award in whole or in 

part; thus, the transferring individual 

may keep a portion of an award for his 

or her use and transfer a portion to a 

designated individual. However, an 

individual may not transfer a single 

award attributable to completion of a 

single term of service to more than one 

designated individual. 

The Corporation received several 

comments opposing this limitation, and 

one recommendation that the 

Corporation increase the limit to two 

designated individuals for each award. 

Several commenters noted that the Act 

does not specifically dictate this 

limitation; however, the Act directs the 

Corporation to establish rules to prevent 

fraud, waste, and abuse in connection 

with transferred awards, and this 

limitation is designed to mitigate such 

risks. Also, as stated in the proposed 

rule, this provision limits, but does not 

proscribe, an individual’s ability to 

transfer to multiple individuals; in order 

to transfer awards to more than one 

designated individual, the transferring 

individual will need to earn awards for 

more than one term of service. 

As stated above, a transferring 

individual also has the authority to 

revoke the transfer of any unused 

portion of an education award. As 

another measure to prevent waste, 

fraud, or abuse, and in line with the 

Corporation’s intent to limit individuals 

to a single transfer from each award, a 

transferring individual would not, as a 

general rule, be permitted to re-transfer 

a revoked award to another individual. 

This rule includes an exception to 

this general rule for those situations in 

which the Corporation considers the 

award to have been revoked for good 

cause, as demonstrated by the 

transferring individual. For example, if 

a transferring individual revokes the full 

amount transferred upon the death of a 

designated individual, the Corporation 

would permit the transferring 

individual to re-transfer the award in 

whole or in part. 

The Corporation received several 

requests for a definition of ‘‘good cause.’’ 

Beyond the death of a transferee or a 

transferee’s rejection of an award in full, 

the Corporation cannot speculate as to 

the types of situations that may arise 

that would necessitate an individual to 

revoke an award, and thus is not 

prepared to define ‘‘good cause’’ at this 

time. The Corporation will make 

determinations of whether there is good 

cause to permit someone to re-transfer 

an award in a consistent manner, and 


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may develop a more formal policy in the 

future based upon the types of requests 

received. 

This rule also includes several 

clarifying provisions. As discussed in 

the section in this rule on the limitation 

on the value of education awards an 

individual may receive, the NCSA 

prohibits an individual from receiving 

more than the aggregate value of two 

education awards. Under this rule, an 

award is considered to be ‘‘received’’ at 

the time it becomes available for an 

individual’s use. The fact that an 

individual transfers an award to a 

designated individual will not decrease 

the value of awards the individual is 

considered to have received. 

Transferred awards a designated 

individual receives will also be 

considered when calculating the 

aggregate value of awards received. 

For example, if an individual receives 

two full-time awards and transfers both 

awards to a child, both the transferring 

and designated individual will be 

considered to have received the 

aggregate value of two full-time awards, 

and neither will be eligible to receive 

additional AmeriCorps or Silver Scholar 

awards from the National Service Trust. 

As discussed in the section on 

calculating the value of an education 

award, a transferred award would have 

a value based on the amount of a fulltime education award in the year the 

position on which the transferring 

individual’s award was based was 

approved. 

Under the national service laws, an 

individual has seven years from the date 

the individual completes a term of 

service to use an award, and a 

designated individual receiving a 

transferred award has ten years from the 

date the term of service is completed to 

use the award. For example, if an 

individual receives an award for a term 

completed in 2010, and transfers the 

award five years after receiving the 

award, the designated individual would 

have five years to use the award. 

In accordance with these statutory 

time frames, this rule permits an 

individual to revoke the transfer of an 

award at any point prior to its use, but 

the individual may only use such an 

award if the award has not expired. For 

example, if an individual received an 

award for a term completed in 2010, 

transferred the award five years after 

receiving the award, and then revoked 

the transfer six years after receiving the 

award, the transferring individual 

would have only one year to use any 

unused portion of the award. If, 

however, the transferring individual had 

revoked the transfer eight years after it 

was originally earned, the award would 

expire immediately upon revocation, 

because although the award had not yet 

expired for use by the designated 

individual, it would have expired for 

the transferring individual a year earlier. 

Several commenters suggested that, in 

the event a person receiving a 

transferred award does not or cannot 

use it, the individual who originally 

transferred the award should be 

permitted to use the award beyond the 

seven-year period specified in statute. 

The Corporation will grant extensions to 

the statutory seven-year period in 

circumstances in which an individual 

was unavoidably prevented from using 

an education award. An individual who 

does not use an award during its seven 

year period of availability because the 

individual transferred the award and 

did not revoke the transfer prior to the 

award’s expiration will not be 

considered to have been unavoidably 

prevented from using the award. 

The Corporation received many 

comments opposing elements of this 

rulemaking that simply implement 

provisions of the Serve America Act, 

including: The provision that only an 

individual who serves in an AmeriCorps 

State and National or Silver Scholar 

position may transfer an education 

award, meaning that an individual who 

serves in an AmeriCorps VISTA, 

ServeAmerica Fellowship, or 

AmeriCorps NCCC position cannot 

transfer an award; the requirement that 

an individual must have served in a 

national service position in order to 

transfer an award, meaning that an 

individual who receives a transferred 

award cannot transfer that award to 

someone else; the provision that an 

eligible individual may only transfer to 

a child, grand-child, or foster child, 

meaning an individual cannot transfer 

an award to other family members, 

mentored children, or scholarship 

funds; the provision limiting the option 

to transfer to individuals age 55 and 

older; and the provision that education 

awards received by transfer must be 

considered when calculating the 

aggregate value of awards received. 

Expanding the types of individuals who 

can transfer an award, the types of 

individuals who may receive an award, 

and the impact of receiving an 

education award by transfer on an 

individual’s eligibility to receive a 

subsequent award would require 

amendments to the statute, which can 

be done only by Congress. 

Many commenters expressed concern 

that an individual who has received 

education awards by transfer will be 

ineligible to serve terms of service in 

national service positions. If an 

individual has received education 

awards by transfer, the individual’s 

eligibility to receive additional 

education awards may be limited, 

however, receipt of awards by transfer 

will not impact an individual’s ability to 

serve in a national service position. The 

fact that an individual has received the 

maximum value of education awards 

does not preclude the individual’s 

future participation in a national service 

position. 

We received a question regarding the 

tax implications for the recipient of a 

transferred award. The Internal Revenue 

Service previously ruled that an 

education award is taxable to the person 

using the award in the year that it is 

used. The Corporation will notify 

national service participants and 

designated individuals should the 

Corporation receive any guidance from 

the Internal Revenue Service to the 

contrary in connection with an 

individual’s use of a transferred award. 

One commenter asked whether an 

individual could transfer a pro-rated 

award received after leaving a term for 

compelling personal circumstances. An 

eligible individual may transfer a prorated award received after leaving a 

term for compelling reasons. 

Please note: an individual wishing to 

transfer an award will be able to do so 

using the Corporation’s online systems 

beginning mid-October, 2010. 

M. Periods of Availability for Silver 

Scholar, Summer of Service, and 

Transferred Education Awards 

(§ 2526.40) 

This rule amends section § 2526.40 to 

include periods of availability for Silver 

Scholar, Summer of Service, and 

transferred education awards. Under 

section 146 of the NCSA, the period of 

availability for a Silver Scholar 

education award is seven years from the 

date the individual completes a term of 

service. The period of availability for a 

Summer of Service education award is 

ten years from the date the individual 

completes the term of service. 

Individuals who receive a transferred 

award may use the award within ten 

years of the date the transferring 

individual completes the term of service 

that is the basis for the award—not the 

date the designated individual receives 

the transferred award. For example, if 

an individual transfers an award five 

years after the date the individual 

completed the term of service, the 

designated individual would have five 

years to use the award—ten years from 

the date the transferring individual 

completed the term of service. 

Similar to national service education 

awards, section 146 authorizes the 

Corporation to grant an extension to the 


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period of availability for a Silver 

Scholar education award, a Summer of 

Service education award, or a 

transferred award if the individual 

requesting the extension ‘‘was 

unavoidably prevented’’ from using the 

education award or if the individual 

‘‘performed another term of service in an 

approved national service position, 

approved summer of service position, or 

approved silver scholar position during 

that period.’’ 

Several commenters urged the 

Corporation to grant extensions to 

individuals who have received a 

transferred award but are too young to 

use the award by the expiration date, 

noting that many individuals eligible to 

transfer an award have very young 

children or grandchildren. Indeed, it is 

unlikely that any designated individual 

under the age of 8 will have had an 

opportunity to use an education award 

by the 10-year expiration date. 

As stated in the proposed rule, to 

permit extensions for a designated 

individual who is too young to use an 

award would mean, in some cases, 

extensions for up to nine years beyond 

the original expiration date—nearly 

twice the statutory period of 

availability. The Corporation believes 

that the longer the period of availability, 

the greater the risk of fraud, waste, or 

abuse. Further, Congress selected ten 

years as a reasonable period of 

availability for a transferred award. 

Based upon these considerations, this 

rule maintains that an individual who is 

unable to use an education award as a 

result of being too young will not be 

considered to be unavoidably prevented 

from using the education award. 

Individuals wishing to transfer an award 

will be reminded at the time they 

request a transfer that, while there is no 

minimum age for a designated 

individual, extensions based on age will 

not be granted. 

N. Certifications of Successful 

Completion of Terms of Service 

(§ 2526.10) 

The Serve America Act amended the 

NCSA by adding a new section 146A, 

which requires that a national service 

program certify under penalty of law 

that an individual successfully 

completed an agreed-upon term of 

service to be eligible to receive an 

education award from the National 

Service Trust. Specifically, section 

146A(a) provides that, in making 

disbursements from the National 

Service Trust, the Corporation is 

authorized to act on the basis of 

certifications that individuals who 

served in approved AmeriCorps 

positions, approved Summer of Service 

positions, or approved Silver Scholar 

positions, successfully completed the 

term of service required to be eligible for 

an education award. These certifications 

must be made by the entity which 

selected the individual to serve in the 

position, and supervised the 

individual’s performance of their 

service. This rule implements section 

146A(a) by including the certification 

requirement in the determination of 

who is eligible to receive an education 

award under § 2526.10(a)(2)(i), (iii), and 

(iv). 

O. Effect of Erroneous Certifications of 

Successful Completion of Terms of 

Service (§ 2526.70) 

Under section 146A(b) of the NCSA, 

if the Corporation finds that a 

certification made under section 

146A(a) is erroneous or incorrect, the 

Corporation shall assess a charge against 

the national service program which 

made the certification. The charge is to 

be assessed for the amount of any 

payment which the Corporation has or 

may make from the National Service 

Trust based on the erroneous 

certification. In assessing the amount of 

a charge, the Corporation is to consider 

the full facts and circumstances 

surrounding the erroneous or incorrect 

certification. 

This rule implements section 146A(b) 

and specifies that any Corporation 

determination in regard to a charge 

under § 2526.70 will not preclude the 

Corporation from taking any other 

actions which may be warranted under 

other applicable authorities, such as the 

Program Fraud Civil Remedies Act. 

One commenter noted that the 

proposed rule does not describe the 

factors which the Corporation will 

consider in determining the amount it 

will assess based on an erroneous or 

incorrect certification. The commenter 

noted that the Corporation could take a 

number of different approaches which 

could range from strict liability 

standards to considerations of fault 

(assessed against a specific evidentiary 

standard) to assessing charges by a 

formula based on the number of hours 

appropriately served. The commenter 

suggested that, if the Corporation 

intends to use any such standards or 

procedures, that they be set out by the 

rule. 

The authority granted in section 

146A(b) of the National and Community 

Service Act and implemented by 

§ 2526.70 is broad. It grants to the 

Corporation the authority to assess and 

collect charges related to education 

awards (or portions thereof) which have 

not yet been disbursed from the 

National Service Trust. This authority 

also requires the Corporation to 

consider ‘‘the full facts and 

circumstances surrounding the 

erroneous or incorrect certification.’’ 

Because of the breadth of this authority 

and the charge to consider the facts and 

circumstances surrounding each 

certification, the Corporation will make 

its assessments of erroneous or incorrect 

certifications on a case-by-case basis 

consistent with its overriding 

responsibility to treat similarly situated 

entities in a consistent manner. Some 

factors the Corporation may consider 

include, but are not limited to: The 

number of hours an individual fell short 

from successful completion; the number 

of members with hour shortfalls; and 

the prevalence of programmatic 

weaknesses. 

One commenter noted that the term 

‘‘national service program’’ is not 

specifically defined in § 2526.70. The 

commenter questioned whether the 

Corporation would assess charges only 

against ‘‘the certifying program’’ or may 

also assess charges against ‘‘upstream 

grantees.’’ The authority in section 

146A(b) is to assess charges for 

erroneous certifications made under 

section 146A(a). Those certifications 

must be made ‘‘by the entity that 

selected the individual for and 

supervised the individual in the 

approved national service position.’’ The 

Corporation expects that in many cases 

those entities will be either subgrantees 

of state service commissions or 

AmeriCorps national grantees who 

receive their awards directly from the 

Corporation. However, the Corporation 

reserves the right to collect erroneous 

payments from the grantee or any other 

entity with responsibility for the 

program. The Corporation has not 

modified the proposed rule in this 

regard because it does not view the 

proposed rule as inconsistent with the 

authority given in section 146A(b). 

One commenter asked whether the 

Corporation will assess charges for 

erroneous certifications only if an award 

has been disbursed from the National 

Service Trust. Section 146A(b) gives the 

Corporation the authority to assess a 

charge ‘‘for the amount of any associated 

payment or potential payment from the 

National Service Trust.’’ (Emphasis 

added). As discussed above, this 

authority is broad enough to encompass 

an assessment before an education 

award is disbursed. The Corporation’s 

proposed regulation did not limit that 

authority. 

P. Public Service Loan Forgiveness and 

AmeriCorps (§ 2526.20) 

On September 27, 2007, President 

Bush signed the College Cost Reduction 


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51406 Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations 

and Access Act of 2007 (Pub. L. 110–84) 

into law. The CCRAA created the Public 

Service Loan Forgiveness Program. This 

program offers forgiveness for 

outstanding Federal Direct loans for 

those individuals who make 120 

qualifying payments after October 1, 

2007, while working full-time in a 

‘‘public service job.’’ In the Department 

of Education’s implementing rules, 

‘‘public service job’’ has been defined to 

include ‘‘serving in a full-time 

AmeriCorps * * * position.’’ (34 CFR 

685.219(c); 73 FR 63527, Oct. 23, 2008). 

‘‘AmeriCorps position’’ as defined in 

that section would include full-time 

service in AmeriCorps State and 

National, AmeriCorps NCCC, 

AmeriCorps VISTA, and ServeAmerica 

Fellowships. 

Generally, an individual cannot 

receive an education award and related 

interest benefits from the National 

Service Trust as well as other loan 

cancellation benefits for the same 

service. For example, the law 

authorizing the Teacher Loan 

Forgiveness Program (TLFP) explicitly 

states that ‘‘no borrower may, for the 

same service, receive a benefit under 

this [program] and subtitle D of title I of 

the National and Community Service 

Act of 1990.’’ (20 U.S.C. 1078–10(g)(2)). 

Thus, an AmeriCorps member serving in 

a teacher corps program would have to 

choose whether to count the service 

year towards TLFP or AmeriCorps, but 

would not be able take both benefits for 

the same period of service. 

The Public Service Loan Forgiveness 

Program is an exception to this general 

rule. Service performed by an 

individual serving in a full-time 

AmeriCorps position may be credited to 

both an education award and Public 

Service Loan Forgiveness. 

This rule amends § 2526.60 to include 

an exception to the general prohibition 

on an individual’s receiving an 

education award and related interest 

benefits from the National Service Trust 

as well as other loan cancellation 

benefits for the Public Service Loan 

Forgiveness Program. 

For more information on qualifying 

for Public Service Loan Forgiveness 

while serving in AmeriCorps, please 

visit: http://www.nationalservice.gov/ 

for_organizations/highered/ccraa.asp. 

Q. Term Limits for AmeriCorps State 

and National (§ 2522.235) 

AmeriCorps State and National is the 

national service program funded under 

Subtitle C of Title I of the NCSA. Prior 

to passage of the Serve America Act, 

section 140(h) of the NCSA included a 

limitation that no program could use 

any Federal funds to support an 

individual during a third term of service 

in an AmeriCorps State and National 

position. The Serve America Act 

removed section 140(h) of the NCSA, 

thereby eliminating the statutory 

limitation on the number of terms in 

which one could be supported with 

Federal funds while serving in an 

AmeriCorps State and National position. 

The Serve America Act amended 

section 146(c) by changing the 

limitation from receiving awards for the 

first two terms of service to receiving up 

to the value of two full-time education 

awards. As discussed in the section on 

the limitation of education award 

receipt, these amendments now give the 

Corporation the flexibility to support a 

single individual during more than two 

terms of service in less-than-full-time 

terms. The amendments do not 

guarantee that an individual may serve 

more than two terms of service, nor do 

they direct the Corporation to provide 

an individual with the opportunity to 

serve more than two terms of service. 

Rather, the amended provision 

establishes a new limitation that the 

Corporation must enforce. 

By statute, one of the Corporation’s 

guiding purposes is to ‘‘encourage 

citizens of the United States * * * to 

engage in full-time or part-time national 

service.’’ In furtherance of this, the 

Corporation’s longstanding policy is to 

limit the number of terms an individual 

may serve in an approved national 

service position to ensure that there are 

opportunities for all interested 

Americans to serve. Increasingly, 

applications for AmeriCorps far exceed 

available positions. The Corporation’s 

longstanding limitation of two terms of 

service in AmeriCorps State and 

National meant that, after a maximum of 

two terms, a position was available for 

a new individual to have an opportunity 

to serve. 

However, the Corporation appreciates 

that the law as amended affords more 

opportunities to serve for those 

individuals who serve in less-than-fulltime positions. To balance the increased 

flexibility afforded by the amended 

statute with the Corporation’s interest in 

providing more Americans an 

opportunity to serve, this rule doubles 

the number from two to four terms an 

individual may serve in AmeriCorps 

State and National and be supported 

with federal funds. This will provide 

twice as many opportunities as were 

previously available, but will place a 

reasonable limit in order to ensure 

service opportunities are available for 

other interested participants. This does 

not mean that an individual is 

guaranteed four terms of service in 

AmeriCorps State and National. 

A term of service includes full-time, 

part-time, reduced part-time, quartertime, and minimum-time terms, as well 

as any term from which one exits after 

serving 15 percent of the agreed term of 

service, and any term from which one 

is exited for misconduct. If a person 

leaves for reasons other than 

misconduct prior to serving 15 percent, 

the term is not considered a term of 

service for the purposes of this 

limitation. 

Exhaustion of the number of terms 

one may serve in AmeriCorps State and 

National would not necessarily prevent 

an individual from enrolling in a 

position in another national service 

program, such as AmeriCorps NCCC, 

AmeriCorps VISTA, or Silver Scholars. 

The Corporation received many 

comments expressing concern about the 

proposed limit of four terms. These 

comments generally fell into one of 

three categories: (1) Those who opposed 

any term limit for AmeriCorps; (2) those 

who believe the limitation on education 

award value received is a sufficient 

limitation on the number of terms an 

individual may serve; and (3) those who 

agree that there should be a limit on the 

number of terms an individual may 

serve, but recommend expanding the 

limit to 5 or more. 

The Corporation does not agree that 

an individual should be permitted to 

serve in AmeriCorps indefinitely. As 

discussed above, a limitation on terms 

ensures that national service positions 

will be available for more individuals to 

serve. 

Most commenters supported a 

limitation to the number of terms, but 

recommended an increase over the 

proposed rule. Many encouraged the 

Corporation to adopt a different 

mechanism for limiting terms, or to rely 

on the limitation of education award 

receipt as a sufficient limitation. Based 

upon the Corporation’s statement in the 

proposed rule that a limitation of the 

value of two full-time education awards 

should be understood as ‘‘a limitation of 

two full-time service opportunities,’’ one 

commenter recommended that the term 

limit approximate a limit of two fulltime service opportunities. One 

commenter suggested using MSY’s 

(member service years) served as a 

possible mechanism for measuring the 

value of service opportunities one has 

had in AmeriCorps. Another commenter 

recommended setting a limitation of 

3,400 hours served, the equivalent of 

two full-time terms of service. 

The Corporation considered various 

methodologies in implementing the 

Serve America Act amendments, but 

concluded that the number of possible 

service opportunities afforded by such 


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methodologies would be counter to 

ensuring that opportunities to serve are 

appropriately distributed among those 

interested. A limit of up to two MSYs 

would permit someone to serve up to 9 

minimum time terms, and a limit of 

3,400 hours would permit an individual 

to serve up to 10 minimum time terms. 

Further, developing separate value 

systems for AmeriCorps terms of service 

and education awards received presents 

an additional challenge by making 

AmeriCorps service overly complicated. 

The Corporation did not consider 

using the limitation on education 

awards alone as a sufficient limit to the 

number of terms an individual may 

serve, as using such a limitation would 

prevent an individual who received 

education awards through transfer from 

later serving in an approved 

AmeriCorps position. To enable these 

individuals to serve, the Corporation is 

permitting individuals to enroll in 

AmeriCorps without receiving an 

education award. In short, the 

Corporation believes it necessary to 

have separate limitations on the number 

of terms an individual may serve in 

AmeriCorps State and National and on 

the value of education awards an 

individual may receive. 

Many commenters offered arguments 

in support of expanding the term limit, 

including that participants want to 

continue service beyond four terms, that 

increasing the number of terms permits 

the organization to benefit from a 

participant’s cumulative experience, or 

similarly that the organization could 

benefit from the community 

relationships the participant may have 

developed over time. 

The Corporation does not believe that 

placing a limit on the number of terms 

one may serve in AmeriCorps State and 

National will prevent those individuals 

interested in continued service from 

serving, whether it be through their 

careers, as volunteers, or as participants 

in other programs such as AmeriCorps 

NCCC, AmeriCorps VISTA, or a Senior 

Corps program. Additionally, unlike 

employment, AmeriCorps is not 

intended to be a long-term arrangement. 

If a program wishes to retain a particular 

individual, the sponsoring organization 

should consider developing a staff 

position. In any event, a reasonable 

limit on the terms of service advances 

the overriding goal of having 

meaningful opportunities to serve for all 

those interested. 

The Corporation also received 

comments in opposition to the 

Corporation’s justification for limiting 

the number of terms. One commenter 

noted that the appropriate remedy for 

ensuring that there are sufficient 

AmeriCorps members is to increase 

funding for AmeriCorps, not limit the 

number of terms an individual may 

serve. However, recent funding 

increases have not kept up with the 

increase in the number of Americans 

applying to become AmeriCorps 

members. 

One commenter noted that while 

applications for AmeriCorps service 

may outnumber available positions 

overall, this may not be true for 

individual programs, and that the total 

number of applicants is not 

representative of the total number of 

qualified applicants. This commenter 

encouraged the Corporation to permit 

organizations that are able to 

demonstrate an inability to secure 

qualified AmeriCorps members a waiver 

to permit individuals to serve more than 

four terms. In such cases, the 

Corporation encourages programs to 

strengthen their local recruitment 

methods as well as use the 

Corporation’s online recruitment 

system. 

R. Selection Criteria Sub-Categories for 

AmeriCorps State and National (Part 

2522) 

The Serve America Act amended 

Subtitle C of Title I of the NCSA by 

placing greater emphasis on a grantee’s 

impact. Programs are now described not 

only in terms of their programmatic 

activities and the unmet community 

needs the programs are addressing, but 

also in terms of ‘‘performance 

indicators’’ that demonstrate the 

program’s impact. Additionally, the 

NCSA now requires the Corporation to 

fund each year at least two of five 

statutorily-described programs, 

including programs that address unmet 

education, health, economic 

opportunity, veteran, and clean energy 

needs. While the Corporation can 

accommodate these changes in future 

grant competitions without changing 

our current published selection criteria, 

the current ‘‘sub-categories’’ of the basic 

selection criteria and the published 

weights for the sub-categories are an 

imperfect fit for the increased emphasis 

on performance and funding of 

programs addressing particular 

community needs. 

This rule removes §§ 2522.425– 

2522.435, the sections that describe the 

sub-categories of the three basic 

selection criteria, as well as 

§§ 2522.445–2522.448, the sections that 

set out the weights given to the subcategories. 

The Corporation may, in the future, 

publish specific sub-categories for the 

basic selection criteria in the Notice of 

Funding Opportunity or Availability. 

This will enable the Corporation to 

adjust application components and the 

weights given to sub-components. The 

Corporation expects that future grant 

applications will focus less on the 

process through which grantees achieve 

their outcomes and more on the 

outcomes they produce. Additionally, 

this will further the Corporation’s 

continued efforts to simplify the 

application process, as supported by the 

Serve America Act. 

The Corporation will continue to use 

a multi-stage process, including review 

by a panel of experts, and will continue 

to make funding decisions based on the 

same basic selection criteria of program 

design, organizational capability, and 

cost-effectiveness and budget adequacy. 

The weights given to the basic selection 

criteria—50% for program design, 25% 

for organizational capability, and 25% 

for cost-effectiveness and budget 

adequacy—will not change. The change 

in location of published sub-categories 

and their respective weights does not 

signify a change in the Corporation’s 

standards for transparency, clarity, and 

consistency in considering applications. 

All applicants will be made aware of 

any sub-categories of selection criteria 

in advance of the application and 

review process. 

The Corporation received several 

comments expressing concern that the 

Corporation’s timeline for releasing 

application instructions will arrive too 

late for State Commissions to be able to 

help sub-grantees prepare their 

applications, for State Commissions to 

operate their own grant competition, 

and for programs to conduct the type of 

community assessment and planning 

necessary to formulate a potentially 

successful program model. The 

Corporation intends to release the 

Notice of Funds Availability and 

application instructions by late summer 

each year. This will allow Commissions 

and multi-state applicants the 

opportunity to run their RFP processes 

in the Fall in preparation for submitting 

applications to the Corporation by its 

due date the following winter. 

S. Applications for the Same Project 

(§ 2522.320) 

The Serve America Act amended 

section 130(g) of the NCSA, which 

previously required the Corporation to 

‘‘reject an application * * * if a project 

proposed to be conducted using 

assistance requested by the applicant is 

already described in another application 

pending before the Corporation.’’ As 

amended, this section now prohibits the 

Corporation from providing ‘‘more than 

[one] grant under the national service 

laws for a fiscal year to support the 


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51408 Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations 

same project under the national service 

laws.’’ This provision supports the 

Corporation’s longstanding practice not 

to provide more than one grant to the 

same project. In addition, the revised 

language increases the Corporation’s 

flexibility in structuring its grant 

application review process. 

This rule aligns the regulations with 

the amended statute by removing the 

regulatory conditions under which an 

applicant may submit multiple 

applications for the same project. In the 

future, the Corporation will include 

guidance on applying for different funds 

for the same project in the grant 

application instructions. For the 

purposes of preventing the same project 

from receiving more than one grant 

under the national service laws, the 

Corporation will continue to use the 

characteristics currently listed in 

§ 2522.340 when determining whether 

two projects are the same. 

T. Pre-Approval of Formula Programs 

(§ 2550.80) 

Section 130(f) of the NCSA was 

amended by the Serve America Act by 

removing the requirement that a State’s 

application for Subtitle C (of title I of 

the NCSA) formula funds include an 

assurance that formula programs be 

selected on a competitive basis prior to 

submission of the application. This 

amendment aligns with language from 

the Corporation’s annual appropriations 

and conforms to current practice. States 

continue to be required to provide an 

assurance that formula programs will be 

selected on a competitive basis, 

however, States may select these 

programs after submitting the 

application for Subtitle C formula funds. 

This rule amends § 2550.80 to reflect 

this change. 

U. Hardship Waiver Permitted for Cost 

Reimbursement Requirement for Senior 

Companion and Foster Grandparent 

Programs (§§ 2551.92, 2552.92) 

Under past regulations, the total of 

cost reimbursements attributable to 

Senior Companions or Foster 

Grandparents, including stipends, 

insurance, transportation, meals, 

physical examinations, and recognition, 

may not exceed 80 percent of the 

Federal share of the grant award. 

Because of the financial challenges 

faced by some organizations as a result 

of the recent economic downturn and 

the real potential for a decrease in nonFederal support, this rule permits the 

Corporation to allow an exception to the 

80 percent limit in cases of 

demonstrated need. Demonstrated need 

would include initial difficulties in 

developing local funding sources in the 

first three years of operation; an 

economic downturn, natural disaster, or 

other similar event that severely reduces 

sources of local funding support; or the 

unexpected discontinuation of a longterm local funding source. 

The Corporation received a total of 65 

comments related to the proposed rule 

change. One comment supported the 

proposal as stated in the Proposed Rule; 

one comment suggested the Corporation 

eliminate the ‘‘may not exceed 80 

percent of the Federal share’’ entirely; 3 

comments suggested that the 

Corporation change the ratio to ‘‘may not 

exceed 60 percent’’; and 60 comments 

suggested that the Corporation change 

the ratio to ‘‘may not exceed 70 percent.’’ 

Implicit in these comments was the 

concern that non-Federal sources of 

funds are increasingly difficult to 

secure, and that a proposal to waive the 

requirement on a case-by-case basis may 

not be applied consistently across all 

grantees. 

While the Corporation understands 

the concerns expressed and is sensitive 

to resource acquisition issues at the 

grantee level, it believes that the 

proposal put forth in the Proposed Rule 

best serves the statutory intent related to 

the programs. By allowing case-by-case 

waivers, based on specific conditions 

identified by grantees, the Corporation 

can provide administrative relief when 

warranted. The Corporation will 

develop standard criteria for waivers 

that will include economic downturn at 

the local level. 

IV. Summary of Redesignations 

Previous location New location 

§ 2522.220(c) § 2522.220(b) 

§ 2522.220(d) § 2522.220(c) 

§ 2522.220(e) § 2522.220(d) 

§ 2522.220(f) § 2522.220(e) 

§ 2522.220(g) § 2522.220(f) 

Part 2530 Part 2531 

Part 2531 Part 2532 

Part 2532 Part 2533 

V. Effective Dates 

Except for the amendments to 

§§ 2522.220, 2522.230, 2522.235, and 

2522.240, which are effective August 20, 

2010, this rule is effective September 20, 

2010. 

VI. Non-Regulatory Issues 

Executive Order 12866 

Under Executive Order 12866, the 

Chief Executive Officer must determine 

whether this regulatory action is 

‘‘significant’’ and therefore subject to the 

requirements of the Executive Order and 

review by OMB. Section 3(f) of 

Executive Order 12866 defines a 

‘‘significant regulatory action’’ as an 

action likely to result in a rule that may 

(1) Have an annual effect on the 

economy of $100 million or more, or 

adversely affect a sector of the economy, 

productivity, competition, jobs, the 

environment, public health or safety, or 

State, local or tribal governments, or 

communities in a material way (also 

referred to as an ‘‘economically 

significant’’ rule); (2) create serious 

inconsistency or otherwise interfere 

with an action taken or planned by 

another agency; (3) materially alter the 

budgetary impacts of entitlement grants, 

user fees, or loan programs or the rights 

and obligations of recipients thereof; or 

(4) create novel legal or policy issues 

arising out of legal mandates, the 

President’s priorities, or the principles 

set forth in the Executive Order. The 

Chief Executive Officer has determined 

that this regulatory action is not 

significant under the Executive Order. 

Regulatory Flexibility Act 

The Corporation has determined that 

the regulatory action will not result in 

(1) An annual effect on the economy of 

$100 million or more; (2) a major 

increase in costs or prices for 

consumers, individual industries, 

Federal, State, or local government 

agencies, or geographic regions; or 

(3) significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

export markets. Therefore, the 

Corporation has not performed the 

initial regulatory flexibility analysis that 

is required under the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.) for 

major rules that are expected to have 

such results. 

Paperwork Reduction Act of 1995 

Sections 2526.10, 2528.10, 2528.30, 

2528.40, 2528.60, 2528.70, 2529.10, 

2530.30, and 2530.85 contain 

information collection requirements. 

Under the Paperwork Reduction Act of 

1995 (44 U.S.C. 3507(d)), the 

Corporation has submitted a copy of 

these sections to the Office of 

Management and Budget (OMB) for its 

review. 

Section 2526.10 identifies two new 

categories of individuals eligible to 

receive education awards: Individuals 

who have successfully completed terms 

of service in Silver Scholar positions 

and those who have successfully 

completed terms of service in Summer 

of Service positions. These additions 

require the development of new 

enrollment and exit forms for the 


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Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations 51409 

National Service Trust for individuals 

enrolling in and exiting from Silver 

Scholar or Summer of Service positions. 

The Corporation estimates the burden 

associated with filling out a Silver 

Scholar or Summer of Service 

enrollment form to be 3 minutes and a 

Silver Scholar or Summer of Service 

exit form to be 3 minutes. Additionally, 

§ 2526.10 requires the program 

supervising the participant to certify 

that the participant met eligibility 

criteria and successfully completed the 

required term of service. The proposed 

change affects those programs that 

supervise participants. The burden hour 

estimate associated with the current exit 

form reported under OMB Control 

Number 3045–0015 is 3 minutes. The 

Corporation does not expect the 

proposed changes to increase the 

burden for this collection. 

Section 2528.10 expands the available 

uses of an education award to include 

use for current educational expenses 

incurred in enrolling in an educational 

institution or training establishment 

approved for educational benefits under 

the G.I. Bill for offering programs of 

education, apprenticeship, or on-job 

training for which educational 

assistance may be provided by the 

Secretary of Veterans Affairs. Sections 

2528.60–70 lay out the processes for 

requesting to use an award for this 

purpose. These provisions affect 

individuals who choose to use 

education awards for this purpose, and 

the educational institutions or training 

establishments at which such 

individuals elect to use their awards. 

The burden hour estimate associated 

with the current voucher and payment 

request form reported under OMB 

Control Number 3045–0014 is 5 

minutes. The Corporation does not 

expect these additions to increase the 

burden for this collection. 

Section 2529.10 expands the 

availability of payments on accrued 

interest to individuals who successfully 

complete terms of service in Silver 

Scholar positions. This affects those 

individuals who serve in Silver Scholar 

programs and elect to place qualified 

student loans in forbearance, and 

request accrued interest payments from 

the National Service Trust. The burden 

hour estimate associated with the 

current forbearance request form and 

interest accrual form, reported under 

OMB Control Numbers 3045–0030 and 

3045–0053 are 1 minute and 10 

minutes, respectively. The Corporation 

does not expect the changes to increase 

the burdens for these collections. 

Sections 2530.30 and 2530.85 set 

forth the processes for requesting to 

transfer an award, accepting a 

transferred award, and revoking a 

transferred award. This affects those 

individuals who choose to transfer their 

education awards and those individuals 

receiving awards via transfer. The 

Corporation estimates the burden 

associated with requesting to transfer an 

award and accepting a transferred award 

to be 5 minutes, and the burden 

associated with revoking a transferred 

award to be 5 minutes. 

List of Subjects 

45 CFR Part 2510 

Grant programs—social programs, 

Volunteers. 

45 CFR Part 2518 

Grants administration, Grant 

programs—social programs. 

45 CFR Part 2522 

Grants administration, Grant 

programs—social programs, Volunteers. 

45 CFR Part 2525 

Grant programs—social programs, 

Student aid, Volunteers. 

45 CFR Part 2526 

Education, Grant programs—social 

programs, Student aid, Volunteers. 

45 CFR Part 2527 

Education, Grant programs—social 

programs, Student aid, Volunteers. 

45 CFR Part 2528 

Education, Grant programs—social 

programs, Student aid, Volunteers. 

45 CFR Part 2529 

Education, Grant programs—social 

programs, Student aid, Volunteers. 

45 CFR Part 2530 

Education, Grant programs—social 

programs, Student aid, Volunteers. 

45 CFR Part 2531 

Grant programs—social programs. 

45 CFR Part 2532 

Grant programs—social programs, 

Volunteers. 

45 CFR Part 2533 

Grants administration, Grant 

programs—social programs. 

45 CFR Part 2550 

Grants administration, Grant 

programs—social programs. 

45 CFR Part 2551 

Grants administration, Grant 

programs—social programs, Volunteers. 

45 CFR Part 2552 

Grants administration, Grant 

programs—social programs, Volunteers. 

■ For the reasons stated in the preamble, 

under the authority 42 U.S.C. 12651d, 

the Corporation for National and 

Community Service amends chapter 

XXV, title 45 of the Code of Federal 

Regulations as follows: 

PART 2510—OVERALL PURPOSES 

AND DEFINITIONS 

■ 1. The authority citation for part 2510 

continues to read as follows: 

Authority: 42 U.S.C. 12501 et seq. 

■ 2. Amend § 2510.20 by adding 

definitions for ‘‘Approved Silver Scholar 

position’’ and ‘‘Approved Summer of 

Service position’’ in alphabetical order, 

to read as follows: 

§ 2510.20 Definitions 

* * * * * 

Approved Silver Scholar Position. The 

term approved Silver Scholar position 

means a Silver Scholar position for 

which the Corporation has approved a 

Silver Scholar education award. 

Approved Summer of Service 

Position. The term approved Summer of 

Service position means a Summer of 

Service position for which the 

Corporation has approved a Summer of 

Service education award. 

* * * * * 

PART 2518—SERVICE-LEARNING 

CLEARINGHOUSE 

■ 3. The authority citation for part 2518 

is amended to read as follows: 

Authority: 42 U.S.C. 12653o. 

§ 2518.100 [Amended] 

■ 4. Amend § 2528.100 by removing the 

reference ‘‘parts 2530 through 2533’’ and 

adding ‘‘parts 2531 through 2534’’ in its 

place. 

§ 2518.110 [Amended] 

■ 5. Amend § 2528.110 by removing the 

reference ‘‘parts 2530 through 2533’’ in 

the introductory text and adding ‘‘parts 

2531 through 2534’’ in its place. 

PART 2522—AMERICORPS 

PARTICIPANTS, PROGRAMS, AND 

APPLICANTS 

■ 6. The authority citation for part 2522 

continues to read as follows: 

Authority: 42 U.S.C. 12571–12595; 

12651b–12651d; E.O. 13331, 69 FR 9911. 


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§ 2522.100 [Amended] 

■ 7. Amend § 2522.100 by removing the 

reference ‘‘part 2532’’ in paragraph (g)(2) 

and adding ‘‘part 2533’’ in its place. 

■ 8. Amend § 2522.220 by: 

■ a. Revising the heading; 

■ b. Removing paragraph (b); 

■ c. Redesignating paragraphs (c) 

through (g) as (b) through (f), 

respectively; and 

■ d. Revising newly designated 

paragraph (b). 

The revisions read as follows: 

§ 2522.220 What are the required terms of 

service for AmeriCorps participants? 

* * * * * 

(b) Eligibility for subsequent term. A 

participant will only be eligible to serve 

a subsequent term of service if that 

individual has received a satisfactory 

performance review for any previous 

term of service in an approved 

AmeriCorps position, in accordance 

with the requirements of paragraph (d) 

of this section and § 2526.15. Mere 

eligibility for a second or further term of 

service in no way guarantees a 

participant selection or placement. 

* * * * * 

■ 9. Amend § 2522.230 by: 

■ a. Revising the heading; 

■ b. Revising paragraphs (b)(6) and 

(b)(7); and 

■ c. Amending paragraph (e) by 

removing the word ‘‘two’’. 

The revisions will read as follows: 

§ 2522.230 Under what circumstances may 

an AmeriCorps participant be released from 

completing a term of service, and what are 

the consequences? 

* * * * * 

(b) * * * 

(6) An individual’s eligibility for a 

subsequent term of service in 

AmeriCorps will not be affected by 

release for cause from a prior term of 

service so long as the individual 

received a satisfactory end-of-term 

performance review as described in 

§ 2522.220(c)(2) for the period served in 

the prior term. 

(7) Except as provided in paragraph 

(e) of this section, a term of service from 

which an individual is released for 

cause counts as one of the terms of 

service described in § 2522.235 for 

which an individual may receive the 

benefits described in §§ 2522.240 

through 2522.250. 

* * * * * 

■ 10. Add § 2522.235 to read as follows: 

§ 2522.235 Is there a limit on the number 

of terms an individual may serve in an 

AmeriCorps State and National program? 

(a) General limitation. An individual 

may receive the benefits described in 

§ 2522.240 through § 2522.250 for no 

more than four terms of service in an 

AmeriCorps State and National 

program, regardless of whether those 

terms were served on a full-, part-, or 

reduced part-time basis, consistent with 

the limitations in § 2526.50. 

(b) Early release. Except as provided 

in paragraph (c) of this section, a term 

of service from which an individual is 

released for compelling personal 

circumstances or for cause counts as one 

of the terms of service for which an 

individual may receive the benefits 

described in § 2522.240 through 

§ 2522.250. 

(c) Release prior to serving fifteen 

percent of a term. If a person is released 

for reasons other than misconduct prior 

to completing fifteen percent of a term 

of service, the term will not be 

considered one of the terms of service 

for which an individual may receive the 

benefits described in §§ 2522.240 

through 2522.250. 

■ 11. Amend § 2522.240 by: 

■ a. Revising paragraph (a); and 

■ b. Removing ‘‘§ 2522.220(g)’’ in 

paragraph (c) and adding ‘‘§ 2522.220(f)’’ 

in its place. 

The revision reads as follows: 

§ 2522.240 What financial benefits do 

AmeriCorps participants serving in 

approved AmeriCorps positions receive? 

(a) AmeriCorps education awards. An 

individual serving in an approved 

AmeriCorps State and National position 

may receive an education award from 

the National Service Trust upon 

successful completion of each of no 

more than four terms of service as 

defined in § 2522.220, consistent with 

the limitations in § 2526.50. 

* * * * * 

§§ 2522.320, 2522.330, 2522.425, 2522.430, 

2522.435, 2522.445, and 2522.448 

[Removed and Reserved] 

■ 12. Remove and reserve §§ 2522.320, 

2522.330, 2522.425, 2522.430, 2522.435, 

2522.445, and 2522.448. 

PART 2525—NATIONAL SERVICE 

TRUST: PURPOSE AND DEFINITIONS 

■ 13. The authority citation for part 

2525 is amended to read as follows: 

Authority: 42 U.S.C. 12601–12606. 

■ 14. Amend § 2525.20 by: 

■ a. Removing the definition for 

‘‘Approved school-to-work program’’; 

■ b. Revising the definitions for 

‘‘education award’’ and ‘‘term of service’’; 

and 

■ c. Adding definitions for ‘‘AmeriCorps 

education award,’’ ‘‘economically 

disadvantaged youth,’’ ‘‘G.I. Bill 

approved program,’’ ‘‘Silver Scholar 

education award,’’ and ‘‘Summer of 

Service education award’’ in 

alphabetical order, to read as follows: 

§ 2525.20 Definitions. 

* * * * * 

AmeriCorps education award. For the 

purposes of this section, the term 

AmeriCorps education award means the 

financial assistance available under 

parts 2526 through 2528 of this chapter 

for which an individual in an approved 

AmeriCorps position may be eligible. 

* * * * * 

Economically disadvantaged youth. 

For the purposes of this section, the 

phrase economically disadvantaged 

youth means a child who is eligible for 

a free lunch or breakfast under the 

Richard B. Russell National School 

Lunch Act (42 U.S.C. 1758(b)). 

Education award. For the purposes of 

this section, the term education award 

refers to the financial assistance 

available under parts 2526 through 2528 

of this chapter, including AmeriCorps 

education awards, Silver Scholar 

education awards, and Summer of 

Service education awards. 

* * * * * 

G.I. Bill approved program. For the 

purposes of this section, a G.I. Bill 

Approved Program is an educational 

institution or training establishment 

approved for educational benefits under 

the Montgomery G.I. Bill (38 U.S.C. 

3670 et seq.) for offering programs of 

education, apprenticeship, or on-job 

training for which educational 

assistance may be provided by the 

Secretary for Veterans Affairs. 

* * * * * 

Silver Scholar education award. For 

the purposes of this section, the term 

Silver Scholar education award means 

the financial assistance available under 

parts 2526 through 2528 of this chapter 

for which an individual in an approved 

Silver Scholar position may be eligible. 

Summer of Service education award. 

For the purposes this section, the term 

Summer of Service education award 

means the financial assistance available 

under parts 2526 through 2528 of this 

chapter for which an individual in an 

approved Summer of Service position 

may be eligible. 

Term of service. The term term of 

service means— 

(1) For an individual serving in an 

approved AmeriCorps position, one of 

the terms of service specified in 

§ 2522.220 of this chapter; 

(2) For an individual serving in an 

approved Silver Scholar position, not 

less than 350 hours during a one-year 

period; and 


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(3) For an individual serving in an 

approved Summer of Service position, 

not less than 100 hours during the 

summer months of a single year. 

PART 2526—ELIGIBILITY FOR AN 

EDUCATION AWARD 

■ 15. The authority citation for part 

2526 is revised to read as follows: 

Authority: 42 U.S.C. 12601–12604, 12606. 

■ 16. Amend § 2526.10 by revising 

paragraph (a) to read as follows: 

§ 2526.10 Who is eligible to receive an 

education award from the National Service 

Trust? 

(a) General. An individual is eligible 

to receive an education award from the 

National Service Trust if the 

organization responsible for the 

individual’s supervision in a national 

service program certifies that the 

individual— 

(1) Met the applicable eligibility 

requirements for the approved 

AmeriCorps position, approved Silver 

Scholar position, or approved Summer 

of Service position, as appropriate, in 

which the individual served; 

(2) (i) For an AmeriCorps education 

award, successfully completed the 

required term of service in the approved 

national service position; 

(ii) For a partial AmeriCorps 

education award, completed at least 15 

percent of the originally-approved term 

of service, and performed satisfactorily 

prior to being granted a release for 

compelling personal circumstances 

consistent with § 2522.230(a); 

(iii) For a Summer of Service 

education award, successfully 

completed the required term of service 

in a Summer of Service position; or 

(iv) For a Silver Scholar education 

award, successfully completed the 

required term of service in a Silver 

Scholar position; and 

(3) Is a citizen, national, or lawful 

permanent resident alien of the United 

States. 

* * * * * 

■ 17. Add § 2526.15 to read as follows: 

§ 2526.15 Upon what basis may an 

organization responsible for the 

supervision of a national service participant 

certify that the individual successfully 

completed a term of service? 

(a) An organization responsible for the 

supervision of an individual serving in 

an AmeriCorps State and National 

position must determine whether an 

individual successfully completed a 

term of service based upon an end-ofterm evaluation conducted pursuant to 

§ 2522.220(d). 

(b) An organization responsible for 

the supervision of an individual serving 

in a program other than AmeriCorps 

State and National must determine 

whether an individual successfully 

completed a term of service based upon 

an end-of-term evaluation that examines 

whether the individual satisfies all of 

the following conditions: 

(1) Completed the required number of 

service hours for the term of service; 

(2) Satisfactorily performed on 

assignments, tasks, or projects; and 

(3) Met any performance criteria as 

determined by the program and 

communicated to the member. 

(c) A certification by the organization 

responsible for the supervision of an 

individual that the individual did or did 

not successfully complete a term of 

service will be deemed to incorporate an 

end-of-term evaluation. 

■ 18. Amend § 2526.20 by revising 

paragraph (a) to read as follows: 

§ 2526.20 Is an AmeriCorps participant 

who does not complete an originallyapproved term of service eligible to receive 

a pro-rated education award? 

(a) Compelling personal 

circumstances. A participant in an 

approved AmeriCorps position who is 

released prior to completing an 

approved term of service for compelling 

personal circumstances in accordance 

with § 2522.230(a) is eligible for a prorated education award if the 

participant— 

(1) Performed satisfactorily prior to 

being granted a release for compelling 

personal circumstances; and 

(2) Completed at least 15 percent of 

the originally-approved term of service. 

* * * * * 

■ 19. Add § 2526.25 to read as follows: 

§ 2526.25 Is a participant in an approved 

Summer of Service position or approved 

Silver Scholar position who does not 

complete an approved term of service 

eligible to receive a pro-rated education 

award? 

No. An individual released for any 

reason prior to completing an approved 

term of service in a Silver Scholar or 

Summer of Service position is not 

eligible to receive a pro-rated award. 

■ 20. Revise § 2526.40 to read as 

follows: 

§ 2526.40 What is the time period during 

which an individual may use an education 

award? 

(a) General requirement. Unless the 

Corporation approves an extension in 

accordance with the requirements of 

paragraph (b) of this section— 

(1) An individual may use an 

AmeriCorps education award or a Silver 

Scholar education award within seven 

years of the date on which the 

individual successfully completed a 

term of service in an approved 

AmeriCorps or Silver Scholar position; 

(2) An individual may use a Summer 

of Service education award within ten 

years of the date on which the 

individual successfully completed a 

term of service in an approved Summer 

of Service position; 

(3) A designated individual who 

receives a transferred education award 

in accordance with § 2530.10 may use 

the transferred education award within 

ten years of the date on which the 

individual who transferred the award 

successfully completed the term of 

service in an approved AmeriCorps or 

Silver Scholar position that is the basis 

of the award. 

(b) Extensions. In order to receive an 

extension of the period of availability 

specified in paragraph (a) of this section 

for using an education award, an 

individual must apply to the 

Corporation for an extension prior to the 

end of that time period. The Corporation 

may grant an application for an 

extension under the following 

circumstances: 

(1) If the Corporation determines that 

an individual was performing another 

term of service in an approved 

AmeriCorps, Summer of Service, or 

Silver Scholar position during the 

original period of availability, the 

Corporation may grant an extension for 

a time period that is equivalent to the 

time period during which the individual 

was performing the other term of 

service. 

(2) If the Corporation determines that 

an individual was unavoidably 

prevented from using the education 

award during the original period of 

availability, the Corporation may grant 

an extension for a period of time that 

the Corporation deems appropriate. An 

individual who is ineligible to use an 

education award as a result of the 

individual’s conviction of the 

possession or sale of a controlled 

substance is not considered to be 

unavoidably prevented from using the 

education award for the purposes of this 

paragraph. In the case of a transferred 

award, an individual who is unable to 

use an education award as a result of 

being too young to enroll in an 

institution of higher education or other 

training establishment is not considered 

to be unavoidably prevented from using 

the education award. 

■ 21. Revise § 2526.50 to read as 

follows: 


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§ 2526.50 Is there a limit on the total 

amount of education awards an individual 

may receive? 

(a) General Limitation. No individual 

may receive more than an amount equal 

to the aggregate value of two full-time 

education awards. 

(b) Calculation of the value of an 

education award. For the purposes of 

this section, the value of an education 

award is equal to the actual amount of 

the education award received divided 

by the amount of a full-time education 

award in the year the AmeriCorps or 

Silver Scholar position to which the 

award is attributed was approved. Each 

award received will be considered to 

have a value between 0 and 1. Although 

the amount of a full-time award as 

defined in § 2527.10(a) may change, the 

value of a full-time award will always 

be equal to 1. 

(c) Calculation of aggregate value of 

awards received. The aggregate value of 

awards received is equal to the sum of: 

(1) The value of each education award 

received as a result of successful 

completion of an approved AmeriCorps 

position; 

(2) The value of each partial 

education award received as a result of 

release from an approved AmeriCorps 

position for compelling personal 

circumstances; 

(3) The value of each education award 

received as a result of successful 

completion of a term of service in an 

approved Silver Scholar position; and 

(4) The value of any amount received 

as a transferred education award, except 

as provided in § 2530.60(c). 

(d) Determination of Receipt of 

Award. For purposes of determining the 

aggregate value of education awards, an 

award is considered to be received at 

the time it becomes available for an 

individual’s use. 

■ 22. Add § 2526.55 to read as follows: 

§ 2526.55 What is the impact of the 

aggregate value of education awards 

received on an individual’s ability to serve 

in subsequent terms of service? 

The aggregate value of education 

awards an individual has received will 

not impact an individual’s ability to 

serve in a subsequent term of service, 

but will impact the amount of the 

education award the individual may 

receive upon successful completion of 

that term of service. If the award amount 

offered for the term of service has a 

value that, when added to the aggregate 

value of awards previously received, 

would exceed 2, upon successful 

completion of the term of service, the 

individual will only receive that portion 

of the award having a value for which 

the individual is eligible pursuant to 

§ 2527.10(g). 

■ 23. Revise § 2526.60 to read as 

follows: 

§ 2526.60 May an individual receive an 

education award and related interest 

benefits from the National Service Trust as 

well as other loan cancellation benefits for 

the same service? 

An individual may not receive an 

education award and related interest 

benefits from the National Service Trust 

for a term of service and have that same 

service credited toward repayment, 

discharge, or cancellation of other 

student loans, except an individual may 

credit the service toward the Public 

Service Loan Forgiveness Program, as 

provided under 34 CFR § 685.219. 

■ 24. Add § 2526.70 to read as follows: 

§ 2526.70 What are the effects of an 

erroneous certification of successful 

completion of a term of service? 

(a) If the Corporation determines that 

the certification made by a national 

service program under § 2526.10(a)(2)(i), 

(2)(iii), or (2)(iv) is erroneous, the 

Corporation shall assess against the 

national service program a charge for 

the amount of any associated payment 

or potential payment from the National 

Service Trust, taking into consideration 

the full facts and circumstances 

surrounding the erroneous or incorrect 

certification. 

(b) Nothing in this section shall 

prohibit the Corporation from taking 

any action authorized by law based 

upon any certification that is knowingly 

made in a false, materially misleading, 

or fraudulent manner. 

PART 2527—DETERMINING THE 

AMOUNT OF AN EDUCATION AWARD 

■ 25. The authority citation for part 

2527 is amended to read as follows: 

Authority: 42 U.S.C. 12601–12606. 

■ 26. Amend § 2527.10 by: 

■ a. Revising the heading; 

■ b. Revising paragraphs (a), (b), and (c); 

and 

■ c. Adding new paragraphs (e), (f), and 

(g). 

The revisions and additions read as 

follows: 

§ 2527.10 What is the amount of an 

education award? 

(a) Full-time term of service. Except as 

provided in paragraph (g) of this 

section, the education award for a fulltime term of service in an approved 

AmeriCorps position of at least 1,700 

hours will be equal to the maximum 

amount of a Federal Pell Grant under 

Section 401 of the Higher Education Act 

of 1965 (20 U.S.C. 1070a) that a student 

eligible for such grant may receive in 

the aggregate for the award year in 

which the term of service is approved 

by the Corporation. 

(b) Part-time term of service. Except as 

provided in paragraph (g), the education 

award for a part-time term of service in 

an approved AmeriCorps position of at 

least 900 hours is equal to one half of 

the amount of an education award 

amount for a full-time term of service 

described in paragraph (a) of this 

section. 

(c) Reduced part-time term of service. 

Except as provided in paragraph (g), the 

education award for a reduced part-time 

term of service in an approved 

AmeriCorps position of fewer than 900 

hours is: 

(1) An amount equal to the product of: 

(i) The number of hours of service 

required to complete the reduced parttime term of service divided by 900; and 

(ii) The amount of the education 

award for a part-time term of service 

described in paragraph (b) of this 

section; or 

(2) An amount as determined 

otherwise by the Corporation. 

* * * * * 

(e) Summer of Service Education 

Award. (1) In general. The education 

award for a term of service in an 

approved Summer of Service position 

for at least 100 hours is $500. 

(2) Exception. The Corporation may 

authorize a Summer of Service 

education award of $750 if the 

participant is economically 

disadvantaged, as verified by the 

organization or school operating the 

Summer of Service program. 

(f) Silver Scholar Education Award. 

Except as provided in paragraph (g) of 

this section, the education award for a 

term of service in an approved Silver 

Scholar position for at least 350 hours 

is $1,000. 

(g) Calculating discounted education 

award amount. To ensure that an 

individual receives no more than the 

aggregate value of two awards, as 

determined pursuant to § 2526.50, the 

discounted amount an individual is 

eligible to receive is determined by the 

following formula: 

(2¥aggregate value of awards the 

individual has received) × (amount 

of a full-time education award in 

the year the position is approved) 

PART 2528—USING AN EDUCATION 

AWARD 

■ 27. The authority citation for part 

2528 is revised to read as follows: 

Authority: 42 U.S.C. 12601–12606. 

■ 28. Revise § 2528.10(a)(3) to read as 

follows: 


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§ 2528.10 For what purposes may an 

education award be used? 

(a) * * * 

(3) To pay expenses incurred in 

enrolling in a G.I. Bill approved 

program, in accordance with 

§§ 2528.60–80. 

* * * * * 

■ 29. Revise § 2528.30 (a)(2)(vi)(A) and 

(B) to read as follows: 

§ 2528.30 What steps are necessary to use 

an education award to pay all or part of the 

current educational expenses at an 

institution of higher education? 

(a) * * * 

(2) * * * 

(vi) * * * 

(A) The individual’s cost of 

attendance and other educational 

expenses; and 

(B) The individual’s estimated student 

financial assistance for that period 

under part A of title IV of the Higher 

Education Act (20 U.S.C. 1070 et seq.). 

* * * * * 

■ 30. Revise § 2528.40(a) and (b) to read 

as follows: 

§ 2528.40 Is there a limit on the amount of 

an individual’s education award that the 

Corporation will disburse to an institution 

of higher education for which the 

Corporation has disbursed all or part of that 

individual’s education award? 

* * * * * 

(a) The individual’s cost of attendance 

and other educational expenses, 

determined by the institution of higher 

education in accordance with section 

472 of the Higher Education Act of 1965 

(20 U.S.C. 1987ll); and 

(b) The individual’s estimated 

financial assistance for that period 

under part A of title IV of the Higher 

Education Act. 

■ 31. Revise § 2528.60 to read as 

follows: 

§ 2528.60 Who may use the education 

award to pay expenses incurred in enrolling 

in a G.I. Bill approved program? 

To use the education award to pay 

expenses for this purpose, you must 

have received an education award for 

successfully completing a term in an 

approved AmeriCorps position, 

approved Summer of Service position, 

or approved Silver Scholar position, in 

which you enrolled on or after October 

1, 2009. 

■ 32. Revise § 2528.70 to read as 

follows: 

§ 2528.70 What steps are necessary to use 

an education award to pay expenses 

incurred in enrolling in a G.I. Bill approved 

program? 

(a) Required Information. Before 

disbursing an amount from an education 

award for this purpose, the Corporation 

must receive— 

(1) An individual’s written 

authorization and request for a specific 

payment amount; 

(2) Verification from the individual 

that the individual meets the criteria in 

§ 2528.60; and 

(3) Information from the educational 

institution or training establishment as 

requested by the Corporation, including 

verification that— 

(i) The amount requested will be used 

to pay all or part of the individual’s 

expenses attributable to a course, 

program of education, apprenticeship, 

or job training offered by the institution 

or establishment; 

(ii) The course(s) or program(s) for 

which the individual is requesting to 

use the education award has been and 

is currently approved by the State 

approving agency for the State where 

the institution or establishment is 

located, or by the Secretary of Veterans 

Affairs; and 

(iii) If an individual who has used an 

education award withdraws or 

otherwise fails to complete the period of 

enrollment for which the education 

award was provided, the institution or 

establishment will ensure a pro-rata 

refund to the Corporation of the unused 

portion of the education award. 

(b) Payment. When the Corporation 

receives the information required under 

paragraph (a) of this section, the 

Corporation will pay the institution or 

establishment and notify the individual 

of the payment. 

■ 33. Add § 2528.80 to read as follows: 

§ 2528.80 What happens if an individual 

for whom the Corporation has disbursed 

education award funds withdraws or fails to 

complete the period of enrollment in a G.I. 

Bill approved program? 

(a) If an individual for whom the 

Corporation has disbursed education 

award funds withdraws or otherwise 

fails to complete a period of enrollment, 

the approved educational institution or 

training establishment that receives a 

disbursement of education award funds 

from the Corporation must provide a 

pro-rata refund to the Corporation of the 

unused portion of the education award. 

(b) The Corporation will credit any 

refund received for an individual under 

paragraph (a) of this section to the 

individual’s education award allocation 

in the National Service Trust. 

PART 2529—PAYMENT OF ACCRUED 

INTEREST 

■ 34. The authority citation of part 2529 

is amended to read as follows: 

Authority: 42 U.S.C. 12601–12606. 

■ 35. Amend § 2529.10 by revising the 

heading and paragraph (a)(1) to read as 

follows: 

§ 2529.10 Under what circumstances will 

the Corporation pay interest that accrues 

on qualified student loans during an 

individual’s term of service in an approved 

AmeriCorps position or approved Silver 

Scholar position? 

(a) * * * 

(1) The individual successfully 

completes a term of service in an 

approved AmeriCorps position or 

approved Silver Scholar position; and 

* * * * * 

PARTS 2530, 2531, 2532, and 2533 

[REDESIGNATED AS PARTS 2531, 

2532, 2533, and 2534] 

■ 36. Under the authority of 42 U.S.C. 

12651d, redesignate parts 2530, 2531, 

and 2532 as parts 2531, 2532, and 2533, 

respectively. 

■ 37. Add a new part 2530 to read as 

follows: 

PART 2530—TRANSFER OF 

EDUCATION AWARDS 

Sec. 

2530.10 Under what circumstances may an 

individual transfer an education award? 

2530.20 For what purposes may a 

transferred award be used? 

2530.30 What steps are necessary to transfer 

an education award? 

2530.40 Is there a limit on the number of 

individuals one may designate to receive 

a transferred award? 

2530.50 Is there a limit on the amount of 

transferred awards a designated 

individual may receive? 

2530.60 What is the impact of transferring 

or receiving a transferred education 

award on an individual’s eligibility to 

receive additional education awards? 

2530.70 Is a designated individual required 

to accept a transferred education award? 

2530.80 Under what circumstances is a 

transfer revocable? 

2530.85 What steps are necessary to revoke 

a transfer? 

2530.90 Is a designated individual eligible 

for the payment of accrued interest 

under Part 2529? 

Authority: 42 U.S.C. 12601–12606. 

§ 2530.10 Under what circumstances may 

an individual transfer an education award? 

An individual may transfer an 

education award if— 

(a) The individual enrolled in an 

approved AmeriCorps State and 

National position or approved Silver 

Scholar position on or after October 1, 

2009; 

(b) The individual was age 55 or older 

on the day the individual commenced 

the term of service in an approved 

AmeriCorps State and National position 

or in approved Silver Scholar position; 


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51414 Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations 

(c) The individual successfully 

completed a term of service in an 

approved AmeriCorps State and 

National position or an approved Silver 

Scholar position; 

(d) The award the individual is 

requesting to transfer has not expired, 

consistent with the period of availability 

set forth in § 2526.40(a); 

(e) The individual designated to 

receive the transferred award is the 

transferring individual’s child, 

grandchild, or foster child; and 

(f) The individual designated to 

receive the transferred award is a 

citizen, national, or lawful permanent 

resident alien of the United States. 

§ 2530.20 For what purposes may a 

transferred award be used? 

A transferred award may be used by 

a designated individual to repay 

qualified student loans or to pay current 

educational expenses at an institution of 

higher education, as described in 

§ 2528.10. 

§ 2530.30 What steps are necessary to 

transfer an education award? 

(a) Request for Transfer. Before 

transferring an award to a designated 

individual, the Corporation must 

receive a request from the transferring 

individual, including— 

(1) The individual’s written 

authorization to transfer the award, the 

year in which the award was earned, 

and the specific amount of the award to 

be transferred; 

(2) Identifying information for the 

individual designated to receive the 

transferred award; 

(3) A certification that the transferring 

individual meets the requirements of 

paragraphs (a) through (c) of § 2530.10; 

and 

(4) A certification that the designated 

individual is the child, grandchild, or 

foster child of the transferring 

individual. 

(b) Notification to Designated 

Individual. Upon receipt of a request 

including all required information listed 

in paragraph (a) of this section, the 

Corporation will contact the designated 

individual to notify the individual of 

the proposed transfer, confirm the 

individual’s identity, and give the 

individual the opportunity to accept or 

reject the transferred award. 

(c) Acceptance by Designated 

Individual. To accept an award, a 

designated individual must certify that 

the designated individual is the child, 

grandchild, or foster child of the 

transferring individual and that the 

designated individual is a citizen, 

national, or lawful permanent resident 

alien of the United States. Upon receipt 

of the designated individual’s 

acceptance, the Corporation will create 

or permit the creation of an account in 

the National Service Trust for the 

designated individual, if an account 

does not already exist, and the accepted 

amount will be deducted from the 

transferring individual’s account and 

credited to the designated individual’s 

account. 

(d) Timing of transfer. The 

Corporation must receive the request 

from the transferring individual prior to 

the date the award expires. 

§ 2530.40 Is there a limit on the number of 

individuals one may designate to receive a 

transferred award? 

(a) General Limitation. For each 

award an individual earns as a result of 

successfully completing a single term of 

service, an individual may transfer all or 

part of the award to a single designated 

individual. An individual may not 

transfer a single award attributable to 

successful completion of a single term 

of service to more than one designated 

individual. 

(b) Re-transfer. If a designated 

individual rejects a transferred award in 

full, or the Corporation otherwise 

determines that a transfer was revoked 

for good cause in accordance with 

§ 2530.80(c), the transferring individual 

may designate another individual to 

receive the transferred award. 

§ 2530.50 Is there a limit on the amount of 

transferred awards a designated individual 

may receive? 

Consistent with § 2526.50, no 

individual may receive more than an 

amount equal to the value of two fulltime education awards. If the sum of the 

value of the requested transfer plus the 

aggregate value of education awards a 

designated individual has previously 

received would exceed the aggregate 

value of two full-time education awards, 

as determined pursuant to § 2526.50(b), 

the designated individual will be 

deemed to have rejected that portion of 

the award that would result in the 

excess. If a designated individual has 

already received the aggregate value of 

two full-time education awards, the 

individual may not receive a transferred 

education award, and the designated 

individual will be deemed to have 

rejected the award in full. 

§ 2530.60 What is the impact of 

transferring or receiving a transferred 

education award on an individual’s 

eligibility to receive additional education 

awards? 

(a) Impact on Transferring Individual. 

Pursuant to § 2526.50, an award is 

considered to be received at the time it 

becomes available for an individual’s 

use. Transferring all or part of an award 

does not reduce the aggregate value of 

education awards the transferring 

individual is considered to have 

received. 

(b) Impact on Designated Individual. 

For the purposes of determining the 

value of the transferred education award 

under § 2526.50, a designated 

individual will be considered to have 

received a value equal to the amount 

accepted divided by the amount of a 

full-time award in the year the 

transferring individual’s position was 

approved. 

(c) Result of revocation on award 

value. If the transferring individual 

revokes, in whole or in part, a transfer, 

the value of the education award 

considered to have been received by the 

designated individual for purposes of 

§ 2526.50 will be reduced accordingly. 

§ 2530.70 Is a designated individual 

required to accept a transferred education 

award? 

(a) General Rule. A designated 

individual is not required to accept a 

transferred education award, and may 

reject an award in whole or in part. 

(b) Result of rejection in full. If the 

designated individual rejects a 

transferred award in whole, the amount 

is credited to the transferring 

individual’s account in the National 

Service Trust, and may be transferred to 

another individual, or may be used by 

the transferring individual for any of the 

purposes listed in § 2528.10, consistent 

with the original time period of 

availability set forth in § 2526.40(a). 

(c) Result of rejection in part. If the 

designated individual rejects a 

transferred award in part, the rejected 

portion is credited to the transferring 

individual’s account in the National 

Service Trust, and may be used by the 

transferring individual’s for any of the 

purposes listed in § 2528.10, consistent 

with the original time period of 

availability set forth in § 2526.40(a). An 

individual may not re-transfer the 

rejected portion of the award to another 

individual. 

§ 2530.80 Under what circumstances is a 

transfer revocable? 

(a) Revocation. An individual may 

revoke a transfer at any time and for any 

reason prior to the award’s use by the 

designated individual. 

(b) Use of Award. Upon revocation, 

the amount revoked will be deducted 

from the designated individual’s 

account and credited to the transferring 

individual’s account. The transferring 

individual may use the revoked 

transferred education award for any of 

the purposes described in § 2528.10, 


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Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations 51415 

consistent with the original time period 

of availability set forth in § 2526.40(a). 

(c) Re-transfer. Generally, an 

individual may not re-transfer an award 

to another individual after revoking the 

same award from the original designated 

individual. The Corporation may 

approve re-transfer of an award for good 

cause, including cases in which the 

original designated individual was 

unavoidably prevented from using the 

award, as demonstrated by the 

individual transferring the award. 

§ 2530.85 What steps are necessary to 

revoke a transfer? 

(a) Request for revocation. Before 

revoking a transfer, the transferring 

individual must submit a request to the 

Corporation that includes — 

(1) The individual’s written 

authorization to revoke the award; 

(2) The year in which the award was 

earned; 

(3) The specific amount to be revoked; 

and 

(4) The identity of the designated 

individual. 

(b) Credit to transferring individual. 

Upon receipt of a request including all 

required information listed in paragraph 

(a) of this section, the Corporation will 

deduct the amount specified in the 

transferring individual’s request from 

the designated individual’s account and 

credit the amount to the account of the 

transferring individual, except as 

provided in paragraph (c) of this 

section. The Corporation will notify the 

transferring individual of the amount 

revoked. 

(c) Used awards. A revocation may 

only apply to that portion of the 

transferred award that has not been used 

by the designated individual. If the 

designated individual has used the 

entire transferred amount prior to the 

date the Corporation receives the 

revocation request, no amount will be 

returned to the transferring individual. 

An amount is considered to be used 

when it is disbursed from the National 

Service Trust, not when a request is 

received to use an award. 

(d) Notification to designated 

individual. The Corporation will notify 

the designated individual of the amount 

being revoked as of the date of the 

Corporation’s receipt of the revocation 

request. 

(e) Timing of revocation. The 

Corporation must receive the request to 

revoke the transfer from the transferring 

individual prior to the award’s 

expiration ten years from the date the 

award was originally earned. 

§ 2530.90 Is a designated individual 

eligible for the payment of accrued interest 

under Part 2529? 

No, an individual must have 

successfully completed a term of service 

in an approved AmeriCorps position or 

Silver Scholar position to be eligible for 

the payment of accrued interest under 

Part 2529. 

PART 2533—TECHNICAL 

ASSISTANCE, TRAINING, AND OTHER 

SERVICE INFRASTRUCTUREBUILDING ACTIVITIES 

■ 38. The authority for part 2533 is 

revised to read as follows: 

Authority: 42 U.S.C. 12657. 

§ 2533.10 [Amended] 

■ 39. Amend newly redesignated 

§ 2533.10 by removing the reference 

‘‘part 2530’’ and adding ‘‘part 2531’’ in its 

place in the following locations: 

■ a. In the introductory text; and 

■ b. In paragraph (p). 

PART 2550—REQUIREMENTS AND 

GENERAL PROVISIONS FOR STATE 

COMMISSIONS AND ALTERNATIVE 

ADMINISTRATIVE ENTITIES 

■ 40. The authority citation for part 

2550 continues to read as follows: 

Authority: 42 U.S.C. 12638. 

■ 41. Amend § 2550.80 by revising 

paragraph (b) to read as follows: 

§ 2550.80 What are the duties of the State 

entities? 

* * * * * 

(b) Selection of subtitle C programs 

and preparation of application to the 

Corporation. Each State must: 

(1) Prepare an application to the 

Corporation to receive funding or 

education awards for national service 

programs operating in and selected by 

the State. 

(2) Administer a competitive process 

to select national service programs for 

funding. The State is not required to 

select programs for funding prior to 

submission of the application described 

in paragraph (b)(1) of this section. 

* * * * * 

PART 2551—SENIOR COMPANION 

PROGRAM 

■ 42. The authority citation for part 

2551 continues to read as follows: 

Authority: 42 U.S.C. 4950 et seq.; 42 

U.S.C. 12651b–12651d; E.O. 13331, 69 FR 

9911. 

■ 43. Amend § 2551.92 by revising 

paragraph (e) to read as follows: 

§ 2551.92 What are project funding 

requirements? 

* * * * * 

(e) How are Senior Companion cost 

reimbursements budgeted? (1) Except as 

provided in (e)(2) of this section, the 

total of cost reimbursements for Senior 

Companions, including stipends, 

insurance, transportation, meals, 

physical examinations, and recognition, 

shall be a sum equal to at least 80 

percent of the amount of the Federal 

share of the grant award. Federal, 

required non-Federal, and excess nonFederal resources can be used to make 

up the amount allotted for cost 

reimbursements. 

(2) The Corporation may allow 

exceptions to the 80 percent cost 

reimbursement requirement in cases of 

demonstrated need such as: 

(i) Initial difficulties in the 

development of local funding sources 

during the first three years of 

operations; 

(ii) An economic downturn, the 

occurrence of a natural disaster, or 

similar events in the service area that 

severely restrict or reduce sources of 

local funding support; or 

(iii) The unexpected discontinuation 

of local support from one or more 

sources that a project has relied on for 

a period of years. 

* * * * * 

PART 2552—FOSTER GRANDPARENT 

PROGRAM 

■ 44. The authority citation for Part 

2552 continues to read as follows: 

Authority: 42 U.S.C. 4950 et seq.; 42 

U.S.C. 12651b–12651d; E.O. 13331, 69 FR 

9911. 

■ 45. Amend § 2552.92 by revising 

paragraph (e) to read as follows: 

§ 2552.92 What are project funding 

requirements? 

* * * * * 

(e) How are Foster Grandparent cost 

reimbursements budgeted? (1) Except as 

provided in (e)(2) of this section, the 

total of cost reimbursements for Foster 

Grandparents, including stipends, 

insurance, transportation, meals, 

physical examinations, and recognition, 

shall be a sum equal to at least 80 

percent of the amount of the Federal 

share of the grant award. Federal, 

required non-Federal, and excess nonFederal resources can be used to make 

up the amount allotted for cost 

reimbursements. 

(2) The Corporation may allow 

exceptions to the 80 percent cost 

reimbursement requirement in cases of 

demonstrated need such as: 

(i) Initial difficulties in the 

development of local funding sources 

during the first three years of 

operations; or 


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51416 Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations 

(ii) An economic downturn, the 

occurrence of a natural disaster, or 

similar events in the service area that 

severely restrict or reduce sources of 

local funding support; or 

(iii) The unexpected discontinuation 

of local support from one or more 

sources that a project has relied on for 

a period of years. 

* * * * * 

Dated: August 13, 2010. 

Tom Bryant, 

Associate General Counsel. 

[FR Doc. 2010–20525 Filed 8–19–10; 8:45 am] 

BILLING CODE 6050–28–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 202, 212, and 234 

[DFARS Case 2008–D011] 

Defense Federal Acquisition 

Regulation Supplement; Acquisition of 

Commercial Items 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is adopting as final, 

without change, the interim rule that 

amended the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to implement sections 805 and 

815 of the National Defense 

Authorization Act for Fiscal Year 2008. 

This rule specified when time-andmaterials or labor-hour contracts may be 

used for the acquisition of commercial 

items, and revised the language to 

address the conditions under which 

major weapon systems or subsystems 

may be treated as commercial items. 

DATES: Effective Date: August 20, 2010. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Cassandra R. Freeman, Defense 

Acquisition Regulations System, OUSD 

(AT&L) DPAP/DARS, 3060 Defense 

Pentagon, Room 3B855, Washington, DC 

20301–3060. Telephone 703–602–8383; 

facsimile 703–602–0350. Please cite 

DFARS Case 2008–D011. 

SUPPLEMENTARY INFORMATION: 

A. Background 

DoD published an interim rule at 74 

FR 34263 on July 15, 2009, to 

implement sections 805 and 815 of the 

National Defense Authorization Act 

(NDAA) for Fiscal Year 2008 (Pub. L. 

110–181). A correction to the interim 

rule was published at 74 FR 35825 on 

July 21, 2009, to clarify the types of 

services to which this rule applies, 

consistent with subsections (c)(1)(A) 

and (c)(1)(C)(i) of section 805 of the 

NDAA for Fiscal Year 2008. Section 805 

specified when time-and-materials or 

labor-hour contracts may be used for 

commercial item acquisitions. Section 

815 of the NDAA for Fiscal Year 2008 

provided clarification regarding 

situations under which the procurement 

of a major weapon system, subsystems 

of major weapon systems, and 

components and spare parts for major 

weapon systems, may be acquired using 

procedures established for the 

acquisition of commercial items. 

Section 815 also clarified that the terms 

‘‘general public’’ and ‘‘non-governmental 

entities’’ with regard to sales of 

commercial items, do not include the 

Federal Government or a State, local, or 

foreign government. 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. 

B. Regulatory Flexibility Act 

DoD certifies that this rule will not 

have a significant economic impact on 

a substantial number of small entities 

within the meaning of the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq., 

because the rule reinforces existing 

requirements for the appropriate use of 

commercial acquisition procedures and 

for ensuring that contract prices are fair 

and reasonable. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the rule does not 

impose any information collection 

requirements that require the approval 

of the Office of Management and Budget 

under 44 U.S.C. 3501, et seq. 

List of Subjects in 48 CFR Parts 202, 

212, and 234 

Government procurement. 

Ynette R. Shelkin, 

Editor, Defense Acquisition Regulations 

System. 

Interim Rule Adopted as Final Without 

Change 

■ Accordingly, the interim rule 

published at 74 FR 34263 on July 15, 

2009, as corrected at 75 FR 35825 on 

July 21, 2009, is adopted as final 

without change. 

[FR Doc. 2010–20436 Filed 8–19–10; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 247 and 252 

Defense Federal Acquisition 

Regulation Supplement; 

Transportation (DFARS Case 2003– 

D028) 

AGENCY: Defense Acquisition 

Regulations System. Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule, 

with changes, amending the Defense 

Federal Acquisition Regulation 

Supplement (DFARS) to update text on 

transportation matters relating to DoD 

contracts. 

DATES: Effective Date: August 20, 2010. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Mary Overstreet, Defense Acquisition 

Regulations System, OUSD (AT&L) 

DPAP (DARS), 3060 Defense Pentagon, 

Room 3B855, Washington, DC 20301– 

3060. Telephone 703–602–0311; 

facsimile 703–602–0350. Please cite 

DFARS Case 2003–D028. 

SUPPLEMENTARY INFORMATION: 

A. Background 

In keeping with the DFARS 

Transformation initiative objective of 

improving the efficiency and 

effectiveness of the acquisition process, 

while allowing the acquisition 

workforce the flexibility to innovate, 

DoD issued a proposed rule at 70 FR 

43109 on July 26, 2005, to update text 

on transportation matters relating to 

DoD contracts, including clarifying 

certain shipping procedures and 

offering additional guidance on their 

use. 

This final rule is a result of the 

DFARS Transformation initiative. The 

changes to the final rule— 

Æ Delete text on transportation 

matters that are sufficiently addressed 

in the Federal Acquisition Regulation or 

in DoD transportation regulations; 

Æ Clarify requirements for inclusion 

of shipping instructions in solicitations 

and contracts; and 

Æ Delete procedures for contracting 

for the preparation of property for 

shipment or storage; and for preparation 

of consignment instructions. Text on 

these subjects will be relocated to the 

DFARS companion resource, 

Procedures, Guidance, and Information 

(PGI). Additional information on PGI is 

available at http://www.acq.osd.mil/ 

dpap/dars/pgi. 


jdjones on DSK8KYBLC1PROD with RULES