21608 Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules

DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 26

RIN#0503–AA22

Outreach and Assistance for Socially

Disadvantaged Farmers and Ranchers

Program

AGENCY: Office of Outreach, Office of the

Secretary, USDA.

ACTION: Proposed rule.

SUMMARY: The United States Department

of Agriculture (USDA or the

Department) is proposing to add

regulations at 7 CFR part 26 to govern

the Outreach and Assistance for Socially

Disadvantaged Farmers and Ranchers

Program whereby the 1890 Land Grant

Colleges, including Tuskegee

University, Indian tribal community

colleges and Alaska native cooperative

colleges, Hispanic serving postsecondary educational institutions and

or other qualifying educational

institutions and community-based

organizations are eligible to compete for

grants and cooperative agreements to

provide outreach and technical

assistance to socially disadvantaged

farmers and ranchers. The program’s

objective is to reverse the decline of

socially disadvantaged farmers and

ranchers across the United States. The

recipients of these awards will provide

services to encourage and assist socially

disadvantaged farmers and ranchers to

own and operate their own farms and

ranches, participate in agricultural

programs, and thus allow them to

become an integral part of the

agricultural community and strengthen

the rural economy.

DATES: Comments on the proposed rule

must be received on or before May 30,

2001.

ADDRESSES: Submit written comments,

in duplicate, to Director, USDA Office of

Outreach, Ag STOP 1710, 1400

Independence Avenue, SW.,

Washington, DC 20250–1710, fax

number (202) 720–7489, or via e-mail to

2501rfp@usda.gov. Comments handdelivered or those delivered by

overnight express mail or courier

service should be brought to the

following address: USDA Office of

Outreach, 501 School Street, SW., First

Floor, Washington, DC 20024 between

the hours of 8:00 a.m. and 5:00 p.m.

Monday through Friday, excluding

Federal holidays. All written comments

made pursuant to this notice will be

available for public inspection during

regular working hours at the above

address.

FOR FURTHER INFORMATION CONTACT:

Geraldine Herring, Special Outreach

Program Coordinator, USDA Office of

Outreach, telephone (202) 720–6350 or

1–800–880–4183, fax number (202) 720–

7489, e-mail: 2501rfp@usda.gov.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12988

The Office of Management and Budget

(OMB) has determined that the

proposed rule is not a ‘‘significant

regulatory action’’ as defined in

Executive Order 12866 because the

proposed rule will not have an annual

effect on the economy of $100 million

or more or have any other adverse

affects on the economy or any sector

thereof, will not create a serious

inconsistency or otherwise interfere

with prior or intended actions of

another agency, will not materially alter

the budgetary impact of grants or similar

programs or the rights or recipients

thereof, and does not raise novel legal

or policy issues. Therefore, Executive

Order 12866 does not require review of

the proposed rule by OMB, and such

review has not occurred.

USDA has reviewed this proposed

rule in accordance with Executive Order

12998, Civil Justice Reform. The

proposed rule meets the applicable

standards in section 3 of Executive

Order 12988.

Executive Order 12372

For the same reasons contained in the

Final rule related notice to 7 CFR part

3015, subpart V (48 FR 29114, June 24,

1983), the Secretary has determined that

this program does not directly affect

State and local governments, and thus is

not subject to the provisions of

Executive Order 12372 which requires

intergovernmental consultation with

State and local officials.

Executive Order 13132

Executive Order 13132, Federalism,

imposes requirements on USDA in the

development of regulatory policies that

have Federalism implications. USDA

has determined that the proposed rule

will not have substantial direct effects

on the States, on the relationship

between the Federal Government and

the States, or on the distribution of

power and responsibilities among the

various levels of government. This rule

also will not impose substantial costs on

States and localities. Accordingly, the

proposed rule is not subject to the

requirements of Executive Order 13132.

Executive Order 13175

Executive Order 13175, Consultation

and Coordination with Indian Tribal

Governments, imposes requirements on

USDA in the development of regulatory

policies that have tribal implications or

preempt tribal law. USDA has

determined that the proposed regulation

does not have a substantial direct effect

on one or more Indian tribes or on either

the relationship or the distribution of

powers and responsibilities between the

Federal Government and the Indian

Tribes. Thus, the proposed rule is not

subject to the requirements of Executive

Order 13175.

Regulatory Flexibility Act

In compliance with the Regulatory

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

the undersigned has determined and

certified by signature of this document

that the proposed rule will not have a

significant economic impact on a

substantial number of small entities.

Eligibility and guidelines for this

program are dictated by statute.

Educational institutions are not small

entities as defined in the Regulatory

Flexibility Act. Community-based

organizations may or may not qualify as

small entities. The amount of annual

funding for this program thus far

typically ranges from $3 million to $6

million, including awards to both

educational institutions and

community-based organizations, and

thus does not have a large economic

impact on small entities. This program

does not impose requirements on small

entities which are not eligible and do

not affirmatively elect to apply for a

competitive award under this program,

and imposes on small entities receiving

applying for and receiving awards only

minimal requirements necessary for

proper administration, oversight, and

fiscal accountability of this program.

Therefore, a regulatory flexibility

analysis is not required and was not

performed.

The Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), 2 U.S.C.

1531–1538, established requirements for

Federal agencies to assess the effects of

their regulatory actions on State, local,

and tribal governments or the private

sector. Under section 202 of the UMRA,

2 U.S.C. 1532, agencies must prepare a

written statement, including a cost

benefit analysis, before promulgating a

notice of proposed rulemaking that

includes any Federal mandates that may

result in expenditures to State, local,

and tribal governments, in the aggregate,

or to the private sector, of $100 million

or more in any one year. The proposed

rule contains no Federal mandates that

would result in such expenditures for

State, local, and Tribal governments or

Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules 21609

the private sector. Therefore, no written

statement, including cost-benefit

analysis, is required under the UMRA

for this proposed rule.

National Environmental Policy Act

It is the determination of USDA that

this action is not a major Federal action

significantly affecting the quality of the

human environment. Therefore, in

accordance with the National

Environmental Policy Act of 1969,

Public Law 91–190, an Environmental

Impact Statement is not required.

Paperwork Reduction Act

This proposed rule does not impact

existing approved collections. This rule

contains no new reporting or

recordkeeping burdens under OMB

control number 0560–0163 that would

require approval under the Paperwork

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

Chapter 35).

Discussion of Proposed Rule

Background

The Department is proposing

regulations in 7 CFR Part 26 to reflect

the transfer of the Outreach and

Assistance for Socially Disadvantaged

Farmers and Ranchers Program to the

USDA Departmental Administration,

Office of Outreach. The USDA Office of

Outreach administers the Outreach and

Assistance for Socially Disadvantaged

Farmers and Ranchers Program

pursuant to section 2501(a) of the Food,

Agriculture, Conservation, and Trade

Act of 1990, 7 U.S.C. 2279(a) (the FACT

Act). Congress intended to make funds

available to provide outreach and

technical assistance to encourage and

assist socially disadvantaged farmers

and ranchers to own and operate farms

and ranches and to participate in

agricultural programs. This outreach

and assistance should enable socially

disadvantaged farmers and ranchers to

obtain information on application and

bidding procedures, farm management,

and other essential information to

participate in agricultural programs.

Prior to 1997, USDA administered

this program through other agencies.

When USDA last competed awards

under this program, the predecessor to

the Farm Service Agency (FSA)

administered the competition in

conjunction with its administration of

other outreach, training and technical

assistance programs. In August 1997,

the Secretary delegated to the USDA

Office of Outreach responsibility solely

for the section 2501 Outreach and

Assistance for Socially Disadvantaged

Farmers and Ranchers Program.

Therefore, the new regulations proposed

by the USDA Office of Outreach are

limited exclusively to the section 2501

authority and thus narrower in scope

than the prior combination of program

authorities administered by the

predecessor to FSA.

The definition of ‘‘Agricultural

programs’’ contained in § 26.4 of this

subpart is based on the programs

authorized by the statutes referenced in

Section 2501 (e)(3) (7 U.S.C. 2279

(e)(3)). Section 2501 (e)(3)(G) also

authorizes the Secretary of Agriculture,

who has delegated this authority to the

Office of Outreach, to designate

additional USDA programs as

‘‘Agricultural programs’’ for purposes of

this program as appropriate. The USDA

Office of Outreach bases the designation

of additional Acts, and thereby the

programs in those Acts on a belief that

the participation of socially

disadvantaged farmers and ranchers in

such programs will serve an important

public purpose. The definition of

‘‘Agricultural programs’’ references

many USDA programs, however, the list

is not intended to be all inclusive.

Rather, the regulation intends to

increase participation by socially

disadvantaged farmers and ranchers in

all relevant USDA agricultural

programs. The public may request the

Director, USDA Office of Outreach to

include additional Acts and programs

within this definition. Requests must be

submitted in writing and include an

explanation of the reasons for inclusion.

The Director will make determinations

on a case-by-case basis. During the

project period, the USDA Office of

Outreach will need to work with USDA

field offices to provide information to

the recipients regarding each USDA

Agency’s relevant agricultural programs

within the scope of the funded project.

Specific Agricultural programs

include but are not limited to the

following, identified by the Catalog of

Federal Domestic Assistance number

and program title: (10.054) Emergency

Conservation Program; (10.055)

Production Flexibility Payments for

Contract Commodities; (10.064) Forestry

Incentives Program; (10.069)

Conservation Reserve Program; (10.404)

Emergency Loans; (10.406) Farm

Operating Loans; (10.407) Farm

Ownership Loans; (10.900) Great Plains

Conservation; and (10.903) Soil Survey.

Program Description

The program’s objective is to reverse

through the use of the outreach and

assistance the decline of socially

disadvantaged farmers and ranchers

throughout the United States. This

outcome will be reached by encouraging

and assisting socially disadvantaged

farmers and ranchers to own and

operate their own farms, participate in

agricultural programs, and thus allow

them to become an integral part of the

agricultural community.

The recipients of the Federal

assistance will provide services to

socially disadvantaged farmers and

ranchers through such means as

outreach and technical assistance in

farm and ranch management,

recordkeeping, marketing techniques,

and testing innovative solutions to

existing or anticipated issues or

problems that these farmers and

ranchers may encounter.

When funds are available, the USDA

Office of Outreach will publish a

request for proposals for the Outreach

and Assistance for Socially

Disadvantaged Farmers and Ranchers

Program. The USDA Office of Outreach

will make competitive awards to eligible

organizations and institutions to

implement a one-year plan for outreach

and technical assistance to encourage

and assist socially disadvantaged

farmers and ranchers to own and

operate farms and ranches and to

participate in agricultural programs.

The USDA Office of Outreach will

select peer reviewers to evaluate

individually the technical merit of

responsive proposals. The peer

reviewers are necessary to evaluate what

is expected to be a variety of very

technical proposals. The USDA Office of

Outreach staff will use these evaluations

to make recommendations for funding

to the Director, USDA Office of

Outreach. The Director will make final

funding decisions. To assure

consistency and fairness in the

evaluation process, the proposed rule

establishes proposal guidelines,

evaluation criteria and the decisionmaking process for reviewing

responsive proposals.

The accounting for the funds awarded

under the section 2501 program is

subject to the applicable rules for USDA

assistance awards in parts 3015 and

3019 of this title. The proposal content

and format regulations are intended to

assure that applicants provide sufficient

information to evaluate proposals and

make awards. The application format

and evaluation process is similar to that

used by other USDA agencies for their

competitive assistance programs.

Section by Section analysis

Section 26.1 states the general

purpose of the program pursuant to

section 2501 (a) of the FACT Act and

explains what the implementing

regulations are intended to accomplish

and why compliance is necessary. The

USDA Office of Outreach has no

21610 Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules

discretion regarding the purpose of the

program and is repeating the terms of

the statute.

Section 26.2 states the objectives of

assistance awards under this program.

These objectives come from the statute

and legislative history for this program.

Section 26.3 addresses the project

period for awards under this program.

Awards under this program previously

were for five-year periods, with funding

provided for the first year and annual

renewal of each award based on the

progress of the awardee and the

availability of funds. Because of the

substantial fluctuation in the amount of

funding available for this program from

year to year, the USDA Office of

Outreach made an administrative

determination that the limiting of the

project periods for a duration of one

year with full funding for each project

at the time of award would carry out

this program in the most effective and

efficient manner. The USDA Office of

Outreach considers a shorter period

with full funding to provide more

certainty to the awardees and to ensure

that projects will be carried out in their

entireties. Shorter project periods also

allow the USDA Office of Outreach to

fund more projects and provide greater

flexibility to respond better to everchanging societal needs in terms of

socially disadvantaged groups,

geographic areas, and agricultural

programs.

Section 26.4 defines relevant terms for

purposes of this program. These

definitions are limited to this program.

Many terms are defined by statute. The

USDA Office of Outreach has no

discretion regarding the definitions of

statutorily-defined terms and has merely

repeated the statutory definitions. The

statutorily-defined terms are ‘‘socially

disadvantaged group’’ and ‘‘socially

disadvantaged farmer or rancher.’’ The

definition of ‘‘socially disadvantaged

group’’ establishes the criteria for a

group to qualify. The Secretary

determines which groups meet the

criteria. The proposed regulation allows

the public to submit requests for the

designation of additional groups for

purposes of this program. The term

‘‘agricultural programs’’ also is defined

by statute, but that definition too still

provides limited discretion to the

Secretary of Agriculture to expand the

definition to include similar programs.

Again, the proposed regulation provides

for the public to submit requests for

inclusion of additional Acts and

programs, with case-by-case

determinations by the USDA Office of

Outreach on such requests.

The USDA Office of Outreach used

statutory definitions applicable to U.S.

Department of Education programs to

define the various educational

institutions eligible to compete for

awards under this program. Use of the

same definitions as the Department of

Education promotes uniformity and

consistency among Federal programs,

which is intended to benefit the public.

Furthermore, those statutory definitions,

while not directly applicable to this

program, shed light on the congressional

intent in using these terms. The USDA

Office of Outreach found no indication

in the section 2501 program authority or

legislative history to suggest that the

Congress intended for these terms to

have a distinct meaning for this

program. The definitions are 1890 Land

Grant Colleges, Indian tribal community

college, Alaska Native cooperative

college, Alaska Native, Hispanic serving

post-secondary educational institution,

post secondary educational institution,

full-time equivalent student, junior or

community college, and low-income

individual. Grant and cooperative

agreement are defined by statute at 31

U.S.C. 6304 and 6305. The remaining

definitions in section 26.4 reflect terms

and definitions commonly used for

USDA competitive assistance programs.

Section 26.5 lists the eligible entities

as set by the statute. The USDA Office

of Outreach has no discretion regarding

eligibility for this program. The

proposed regulations describe the type

of documentary evidence required from

a community-based organization to

show prior relevant experience.

Section 26.6 discusses substantial

involvement on cooperative agreements.

As noted in section 26.1, USDA Office

of Outreach has the authority to award

assistance through grants or cooperative

agreements under this program. USDA

Office of Outreach may determine that

the responsibility for the management,

control, or direction of the project will

be shared both by the USDA Office of

Outreach and the awardee. If so, the

USDA Office of Outreach will award a

cooperative agreement as the instrument

to distribute the award and will be

substantially involved in the

implementation and performance of the

project. It is important to understand

that such an agreement will be a

cooperative venture in which each party

has a substantial role to play. Being

substantially involved can enable a

better understanding and knowledge of

how well the project is performing,

whether it is meeting its goals and

objectives, and what types of assistance

the recipient needs to do a better job.

Section 26.7 is reserved.

Section 26.8 addresses solicitation of

proposals through the program

announcement. USDA Office of

Outreach has decided to publish

program announcements soliciting

proposals in the Federal Register which

is consistent with general USDA

practice for competitive assistance

programs. The USDA also reserves the

right to publish the program

announcement in other publications as

appropriate which will be determined

for each new competition.

Section 26.9 provides guidance on

how to prepare a proposal for this

program. This section sets guidelines for

the proposal format and content. The

proposed requirements are similar to

those established for other USDA

assistance programs. Uniform proposal

format and content are necessary for fair

comparative evaluation and review of

competitive proposals.

Section 26.10 outlines the proposal

review process, including the evaluation

criteria. The USDA Office of Outreach

will specify the weight of the evaluation

criteria in the program announcement.

Not indicating the weight in the

regulations allows the USDA Office of

Outreach the ability to vary the relative

weights of these criteria for each

competition as necessary to best achieve

the program objectives. The USDA

Office of Outreach decided to use peer

reviewers to assess the merits of

applications. Peer reviewers contribute

expert judgment and objectivity to the

proposal review process. Prior to any

technical review, USDA Office of

Outreach staff will review each proposal

for responsiveness to the request for

proposals. The USDA Office of Outreach

will review for technical merit only

those proposals submitted by eligible

entities for projects within the scope of

this program.

Section 26.11 discusses the

fundamental aspects of the award

procedure. USDA Office of Outreach

staff will use the evaluations by the

individual reviewers to rank the

proposals and make recommendations

to the Director, USDA Office of

Outreach for funding. The USDA Office

of Outreach reserves the right to make

awards to ensure the necessary variety

among funded projects to best achieve

the program objectives. Necessary

variety refers to both types of entities

receiving award and types of projects,

including targeted populations and

regions. Based on the limited resources

available for this program, the USDA

Office of Outreach also reserves the

right to negotiate with applicants the

scope of projects recommended for

funding. For example, a proposal may

have substantial merit, but at a very

high cost. Funding of that one proposal

would preclude funding of several other

meritorious proposals. The Director,

Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules 21611

USDA Office of Outreach, could

negotiate with that applicant in an effort

to reduce the scope and funding

requirements of that proposal, perhaps

focusing on one or two discrete

components of the project. The Director,

USDA Office of Outreach will take great

care during any such negotiations not to

engage in any actions that would

undermine the competitive nature of

this program. All revisions must be

within the scope of the original

proposal. No revisions will be allowed

to enlarge the project or funding

originally proposed.

Sections 26.12–26.14 are reserved.

Section 26.15 discusses the

authorized use of funds. The statute

limits the purposes for which USDA can

award funds. Once USDA awards a

grant or cooperative agreement, the

awardee can use those funds only in

accordance with the terms of the

agreement, i.e. for the identified project

and as specified in the approved budget.

Sections 26.16 through 26.25 are

reserved.

Section 26.26 lists some of the other

applicable Federal statutes and

regulations that govern the actions of

the awardee and the Federal agency for

assistance programs. The USDA Office

of Outreach has no discretion regarding

the mandated laws and regulations

governing the USDA assistance

programs.

Section 26.27 discusses the payment

mechanism and payment method. The

U.S. Department of the Treasury

regulations at 31 CFR part 208 establish

the payment mechanism for recipients

of Federal funds. These regulations

implement the Debt Collection

Improvement Act of 1996 (P.L. 104–134,

Title III, Chapter 10) which amended 31

U.S.C. 3332 to require federal agencies

to convert their payments (including

assistance payments) from check to

electronic funds transfer (EFT)

beginning January 1, 1999. The USDA

Office of Outreach has decided to

require the SF–270, Request for

Advance or Reimbursement, be used by

the recipients to request payments

under this program pursuant to their

awards and reimbursement will be by

EFT.

Section 26.28 sets forth the

procedures for monitoring and reporting

on the awardee’s financial management

systems and program performance and

the necessary standard reporting forms.

The USDA Office of Outreach proposes

the frequency for the financial

management and program performance

reporting to be quarterly.

Sections 26.29 through 26.36 are

reserved.

Section 26.37 discusses the

monitoring process to assure

compliance with the terms and

conditions of the award, including

compliance with applicable Federal

statutes and regulations. The USDA

Office of Outreach has chosen to

monitor performance of the recipient

and assess compliance with laws,

regulations, and policies by conducting

site visits to monitor business

management capability and

performance. The monitoring methods

will also include the reviews of audit

reports, performance reports, financial

status reports, recipient correspondence

and information received from USDA

field offices, the intended project

beneficiaries and the public. These are

standard methods used in administering

similar USDA assistance programs to

meet the provisions of pertinent

statutes, regulations, agency

administrative requirements, and

relevant OMB circulars to ensure project

success.

Sections 26.38 through 26.40 are

reserved.

Section 26.41 notifies the applicant of

the applicable USDA policies and

regulations on nondiscrimination.

Whenever an individual or organization

accepts federal funds under an

assistance award, there are certain

public requirements, established by

Congress or the President, with which

the recipient must comply. The USDA

Office of Outreach has no discretion

regarding these requirements and has a

duty to enforce compliance.

Sections 26.42 through 26.50 are

reserved.

List of Subjects in 7 CFR Part 26

Grant programs—agriculture.

For reasons set out in the preamble,

USDA proposes to add 7 CFR part 26 as

set forth below.

Sec.

PART 26—OUTREACH AND ASSISTANCE

FOR SOCIALLY DISADVANTAGED

FARMERS AND RANCHERS PROGRAM

26.1 General.

26.2 Objectives.

26.3 Project period.

26.4 Definitions.

26.5 Eligible entities.

26.6 Substantial Federal Involvement.

26.7 [Reserved].

26.8 Program announcement.

26.9 Proposal content. savesproposal.xml

26.10 Proposal review.

26.11 Award process.

26.12–26.14 [Reserved].

26.15 Authorized use of funds.

26.16–26.25 [Reserved].

26.26 Other applicable Federal statutes and

regulations.

26.27 Fund disbursement.

26.28 Financial management systems and

reporting requirements.

26.29–26.36 [Reserved].

26.37 Monitoring compliance and penalty

for noncompliance.

26.38–26.40 [Reserved].

26.41 Nondiscrimination.

26.42–26.50 [Reserved].

Authority: 5 U.S.C. 301; 7 U.S.C. 2279(a);

7 CFR 2.24.

PART 26—OUTREACH AND

ASSISTANCE FOR SOCIALLY

DISADVANTAGED FARMERS AND

RANCHERS PROGRAM

§ 26.1 General.

This part establishes procedures for

the administration of the Outreach and

Assistance for Socially Disadvantaged

Farmers and Ranchers Program whereby

eligible entities enter into a grant or

cooperative agreement with the USDA

Office of Outreach (OR) to provide

outreach and technical assistance to

encourage and assist socially

disadvantaged farmers and ranchers to

own and operate farms and ranches and

to participate in agricultural programs.

The Catalog of Federal Domestic

Assistance (CFDA) number for this

program is 10.443.

§ 26.2 Objectives.

OR will fund grant agreements or

cooperative agreements with eligible

entities for outreach and assistance to

socially disadvantaged farmers and

ranchers projects, which are determined

to meet the following program

objectives:

(a) To encourage and assist members

of socially disadvantaged groups to own

and operate farms and ranches and to

participate in agricultural programs.

(b) To keep socially disadvantaged

farmers and ranchers on the farm and to

ensure diversified ownership of

agricultural land and farm operations

throughout the United States, thus

strengthening the rural economy.

§ 26.3 Project period.

An agreement under this program will

specify a project period for a duration

not to exceed one year, subject to the

availability of funds or termination of

the project either by mutual agreement

or for material noncompliance with the

terms and conditions of an award.

§ 26.4 Definitions.

For the purpose of the Outreach and

Assistance for Socially Disadvantaged

Farmers and Ranchers Program, the

following definitions apply:

1890 Land-Grant Colleges means one

of those institutions eligible to receive

funds under the Act of August 30, 1890,

as amended (7 U.S.C. 321 et seq.),

including Tuskegee University.

21612 Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules

Agricultural programs means those

activities established or authorized by

the Agricultural Act of 1949; the

Consolidated Farm and Rural

Development Act; the Agricultural

Adjustment Act of 1938; the Soil

Conservation Act; the Domestic

Allotment Assistance Act; the Food

Security Act of 1985; and other such

Acts as determined by the Director,

USDA Office of Outreach, on a case-bycase basis either at the Director’s

initiative or in response to a written

request with supporting explanation for

inclusion of an Act. Covered programs

include, but are not limited to,

agricultural conservation program,

programs comprising the environmental

conservation acreage reserve program

(ECARP), conservation technical

assistance program, emergency

conservation program, forestry

incentives program, Great Plains

Conservation Program, integrated farm

management option program, price

support and production adjustment

programs, rural environmental

conservation program, soil survey

program, and water bank program; and

USDA farm loan programs (farm

ownership, operating, soil and water,

and emergency loans).

Alaska Native means a citizen of the

United States who is a person of onefourth degree or more Alaska Indian

(including Tsimshian Indians not

enrolled in the Metlaktla Indian

Community) Eskimo, or Aleut blood, or

combination thereof. It also includes, in

the absence of proof of a minimum

blood quantum, any citizen of the

United States who is regarded as an

Alaska Native by the Native village or

Native group of which he claims to be

a member and whose father or mother

is (or, if deceased, was) regarded as

Native by any village or group.

Alaska Native cooperative colleges

means any post-secondary education

institution that at the time of

application, has an enrollment of

undergraduate students that is at least

20 percent Alaska Native students.

Authorized organizational

representative means the president or

chief executive officer of the applicant

organization or the official, designated

by the president or chief executive

officer of the applicant organization,

who has the authority to commit the

resources of the organization.

Awardee means the recipient

designated in the grant award document

as the responsible legal entity to which

the Federal assistance is awarded.

Awarding official means the Director

of the USDA Office of Outreach or the

Director’s designee, who has been

delegated the authority to issue or

modify program agreements on behalf of

the Secretary of Agriculture for this

program.

Budget period means the interval of

time (usually 12 months) into which the

project period is divided for budgetary

and reporting purposes.

Community-based organization

means a nonprofit, nongovernmental

organization with a well-defined

constituency that includes all or part of

a particular community, e.g.,

communities consisting of socially

disadvantaged farmers and ranchers.

Cooperative agreement means an

award of funds to an eligible entity with

the following characteristics:

(1) The principal purpose of the

award is to transfer a thing of value to

the awardee to accomplish a public

purpose of support or stimulation

authorized by statute, rather than

acquisition, by purchase, lease, or

barter, of property or services for the

direct benefit or use of the Federal

Government; and

(2) At the time of award, substantial

involvement is anticipated between OR

and the awardee in performing the

activity under the agreement.

Department or USDA means the

United States Department of

Agriculture.

Enrollment of needy students means

an enrollment at an institution with

respect to which:

(1) At least 50 percent of the degree

students so enrolled are receiving needbased Federal financial assistance,

including the Federal work-study

program, in the second fiscal year

preceding the fiscal year for which the

determination is made (other than loans

for which an interest subsidy is paid

pursuant to 20 U.S.C. 1078); or

(2) A substantial percentage of the

students so enrolled are receiving

Federal Pell Grants in the second fiscal

year preceding the fiscal year for which

determination is made, compared to the

percentage of students receiving Federal

Pell Grants at all such institutions in the

second fiscal year preceding the fiscal

year for which the determination is

made.

Full-time equivalent students means

the sum of the number of students

enrolled full time at an institution, plus

the full-time equivalent of the number

of students enrolled part time

(determined on the basis of the quotient

of the sum of the credit hours of all parttime students divided by 12) at such

institution.

Grant means an award of funds to an

eligible entity with the following

characteristics:

(1) The principal purpose of the

award is to transfer a thing of value to

the awardee to accomplish a public

purpose of support or stimulation

authorized by statute, rather than

acquisition, by purchase, lease, or

barter, of property or services for the

direct benefit or use of the Federal

Government; and

(2) At the time an award is made, no

substantial involvement is anticipated

between OR and the awardee in

performing the activity under the

agreement.

Hispanic serving post-secondary

educational institutions means a postsecondary educational institution that:

(1) At the time of application, has an

enrollment of undergraduate full-time

equivalent students that is at least 25

percent Hispanic students; and

(2) Provides assurances that not less

than 50 percent of the institution’s

Hispanic students are low-income

individuals.

Indian Tribal Community Colleges

means a post-secondary educational

institution which:

(1) Is formally controlled, or has been

formally sanctioned, or chartered, by the

governing body of an Indian tribe or

tribes, except that no more than one

such institution shall be recognized

with respect to any such tribe; and

(2) Includes an institution listed in

the Equity in Educational Land Grant

Status Act of 1994, as amended (7

U.S.C. 301 note). The 1994 Land-Grant

Institutions are: Bay Mills Community

College, Blackfeet Community College,

Cankdeska Cikana Community College,

Cheyenne River Community College,

Dine Community College, D-Q

University, Dullknife Memorial College,

Fond Du Lac Community College, Fort

Belknap Community College, Fort

Berthold Community College, Fort Peck

Community College, LacCourte Orielles

Ojibwa Community College, Little Big

Horn Community College, Little Priest

Community College, Nebraska Indian

Community College, Northwest Indian

College, Oglala Lakota College, Salish

Kootenai College, Sinte Gleska

University, Sisseton Wahpeton

Community College, Sitting Bull

College, Stonechild Community College,

Turtle Mountain Community College,

United Tribes Technical College,

Southwest Indian Polytechnic Institute,

Institute of American Indian Arts,

Crownpoint Institute of Technology,

Haskell Indian Nations University,

Leech Lake Tribal College, and College

of the Menominee Nation.

Junior or community college means an

institution of higher education:

(1) That admits as regular students

persons who are beyond the age of

compulsory school attendance in the

State in which the institution is located

Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules 21613

and who have the ability to benefit from

the training offered by the institution;

(2) That does not provide an

educational program for which the

institution awards a bachelor’s degree

(or an equivalent degree); and

(3) That—

(i) Provides an educational program of

not less than 2 years in duration that is

acceptable for full credit toward such a

degree; or

(ii) Offers a 2-year program in

engineering, mathematics, or the

physical or biological sciences, designed

to prepare a student to work as a

technician or at the semiprofessional

level in engineering, scientific, or other

technological fields requiring the

understanding and application of basic

engineering, scientific, or mathematical

principles of knowledge.

Low-income individual means an

individual from a family whose taxable

income for the preceding year did not

exceed 150 percent of an amount equal

to the poverty level determined by using

criteria of poverty established by the

Bureau of the Census.

Peer reviewers means experts from the

public and private sectors qualified by

training and experience in particular

fields and designated by the Director,

USDA Office of Outreach or other

designated official to evaluate eligible

proposals.

Post-secondary educational

institutions means an institution of

higher education in any State which:

(1) Admits as regular students only

persons having a certificate of

graduation from a school providing

secondary education, or the recognized

equivalent of such a certificate;

(2) Is a public or other nonprofit

institution;

(3) Which has an enrollment of needy

students as defined in the definition of

‘‘low-income individual’’;

(4) The average educational and

general expenditures of which are low,

per full-time equivalent undergraduate

student, in comparison with the average

educational and general expenditures

per full-time equivalent undergraduate

student of institutions that offer similar

instruction;

(5) Which is—

(i) Legally authorized to provide, and

provides within the State, an

educational program for which such

institution awards a bachelor’s degree;

(ii) A junior or community college; or

(iii) The College of the Marshall

Islands, the College of Micronesia/

Federated States of Micronesia, and

Palau Community College;

(6) Which is accredited by a

nationally recognized accrediting

agency or association determined by the

Secretary to be reliable authority as to

the quality of training offered or which

is, according to such an agency or

association, making reasonable progress

toward accreditation;

(7) Which meets such other

requirements as the Secretary may

prescribe; and

(8) Located in a State. Any branch of

any institution of higher education

described above which satisfies the

criteria in paragraphs (3) and (4) of this

definition. For purposes of the

determination of whether an institution

is an eligible institution under this

paragraph, the factor in paragraph (3) of

this definition shall be given twice the

weight of the factor in paragraph (4) of

this definition.

Prior approval means written, prior

consent by the awarding official.

Project means the total activities

within the scope of the program as

identified in the grant or cooperative

agreement.

Project director means the individual

responsible for the direction and

management of the project, as

designated by the awardee in the project

proposal and approved by the awarding

official. The project director will devote

full time to the administration of the

project.

Project period means the total time

approved by the awarding official for

conducting the proposed project as

outlined in an approved project

proposal or the approved portions

thereof and as specified in the grant or

cooperative agreement.

Recipient means an entity as defined

in § 26.5 of this part that has entered

into a grant or cooperative agreement

with OR.

Requests for Proposals (RFP) means

an invitation to submit proposals for

consideration for funding under this

program.

Socially disadvantaged farmer or

rancher means a farmer or rancher who

is a member of a socially disadvantaged

group.

Socially disadvantaged group means a

group whose members have been

subjected to racial or ethnic prejudice

because of their identity as members of

a group without regard to their

individual qualities. Socially

disadvantaged groups include, but are

not limited to, African-Americans,

Native Americans, Alaskan Natives,

Hispanics, Asians, and Pacific Islanders.

The Secretary will determine on a caseby-case basis whether additional groups

qualify under this definition, either at

the Secretary’s initiative or in response

to a written request with supporting

explanation.

§ 26.5 Eligible entities.

The statute limits eligibility under

this program to the following

institutions and organizations:

(a) 1890 Land-Grant Colleges,

including Tuskegee University;

(b) Indian tribal community colleges;

(c) Alaska Native cooperative colleges;

(d) Hispanic-serving post-secondary

educational institutions;

(e) Other post-secondary educational

institutions with demonstrated

experience in providing agricultural

education or other agriculturally-related

services to socially disadvantaged

family farmers or ranchers in their

region; and

(f) Any community-based

organization that:

(1) Has demonstrated experience in

providing agricultural education or

other agriculturally-related services to

socially disadvantaged farmers and

ranchers;

(2) Provides documentary evidence of

its past experience in working with

socially disadvantaged farmers and

ranchers during the 2 years preceding

its application for assistance.

Documentary evidence shall include a

narrative providing specific information

regarding the scope of past projects

(including the number of socially

disadvantaged farmers and ranchers

served or the area served by the

organization), activities conducted, and

community involvement and copies of

prior agreements, press releases, news

articles, and other contemporaneous

documents supporting the narrative;

and

(3) Does not engage in activities

prohibited under Section 501 (c)(3) of

the Internal Revenue Code of 1986.

§ 26.6 Substantial federal involvement.

The USDA Office of Outreach may

award cooperative agreements under

this program. By statute, the Federal

awarding agency must be substantially

involved in the project to enter into a

cooperative agreement to provide

assistance. The USDA Office of

Outreach anticipates the following

involvement, which it has deemed

substantial, in carrying out projects

funded with Federal assistance

provided through a cooperative

agreement under this program:

(a) The USDA Office of Outreach will

serve as liaison and coordinate the close

collaboration between awardees and

USDA agencies that administer

agricultural programs targeted for

outreach under the project;

(b) The USDA Office of Outreach will

facilitate and coordinate training and

continuing updates for awardees

regarding the regulatory requirements,

21614 Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules

application procedures, and compliance

for targeted agricultural programs;

(c) USDA Office of Outreach will

assist awardees in planning workshops

for targeted socially disadvantaged

groups, including coordinating the

provision of available information (e.g.,

application forms and instructions) from

USDA necessary to accomplish

workshop objectives;

(d) The USDA Office of Outreach

must approve position descriptions and

the selection of key personnel as

identified in the project proposal if such

personnel are hired or replaced during

the project period;

(e) The USDA Office of Outreach will

work closely with awardees to obtain

the significant amounts of information

necessary for the USDA Office of

Outreach to comply with its statutory

requirements to provide reports

regarding this program to the Congress;

and

(f) The USDA Office of Outreach will

monitor projects closely and may

request changes in project direction as

necessary.

§ 26.7 [Reserved]

§ 26.8 Program announcement.

A program announcement for each

new competition will be published in

the Federal Register and such other

publication(s) as deemed appropriate.

§ 26.9 Proposal content.

The project proposal must contain at

a minimum the following information:

(a) Background and need for the

project. Explain the circumstances that

necessitate an Outreach and Technical

Assistance Project within a county,

region, State or other geographic area to

serve socially disadvantaged farmers

and ranchers.

(b) Objectives and goals proposed to

meet the objectives. Clearly state the

objectives of the project and explain the

goals proposed to meet the objectives.

Identify all important project milestones

and dates as they relate to project startup, execution, evaluation,

dissemination, and close out. Indicate

the specific agricultural programs for

which the proposed project will provide

outreach and assistance.

(c) Statement of Work, including

staffing. Describe the plan of action for

meeting the objectives of the Outreach

and Technical Assistance Program and

the necessary staffing. Describe and

explain the nature of any proposed

collaborative or subcontractural

arrangements necessary to carry out the

project.

(d) Proposed budget.

(1) Submit a detailed budget

accompanied by a narrative description

outlining and justifying the listed costs,

for one year (12 months).

(2) Show all funding sources and

itemize costs by the following line

items: Personnel costs, equipment,

material and supplies, travel, and all

other costs.

(3) Salaries of project personnel who

will be working on the project may be

requested in proportion to the effort that

they will devote to the project.

(4) Funds may be requested under any

of the line items listed above provided

that the item or source for which

support is requested is identified as

necessary for the successful conduct of

the project, is allowable under the

authorizing legislation and applicable

Federal cost principles, and is not

prohibited under any applicable Federal

statute or regulation.

(5) The program announcement will

specify any limitations on indirect costs

under this program. The General

Provisions of the annual Appropriations

Act funding USDA ordinarily limit

indirect costs under cooperative

agreements between USDA and nonprofit institutions, including institutions

of higher education, to ten percent of

the total direct costs of the agreement,

with an exception when an institution

computes its direct cost rates on a

similar basis for all agencies covered by

that Act (typically referred to as the

Federal negotiated indirect cost rate).

(e) Personnel. Include the resumes of

all anticipated personnel, including the

Project Director in the proposal package.

Also discuss the experience,

qualifications, and availability of all

personnel, including the Project

Director, to direct and carry out the

project.

§ 26.10 Proposal review.

(a) Prior to the technical examination,

a preliminary review will be made by

the USDA Office of Outreach staff for

responsiveness to this solicitation.

Proposals that do not fall within the

solicitation guidelines will be

eliminated from competition. All

responsive proposals will be reviewed

by peer reviewers using the evaluation

criteria stated below. The peer reviewers

will be selected to provide maximum

expertise and objective judgment in the

evaluation of proposals.

(b) To assist in the evaluation and

obtain the best possible balance of

viewpoints for funding consideration,

peer reviewers will evaluate responsive

proposals. The proposal review panel

will be selected and organized to

provide maximum expertise and

objective judgment in the evaluation of

proposals. The peer reviewers will

evaluate each proposal using the

following evaluation criteria. The

weight of each criterion will be

specified in the program announcement:

(1) Institutional commitment and

resources. Degree to which the

institution or organization is committed

to the project. Experience,

qualifications, competence, and

availability of personnel and resources

to direct and carry out the project.

(2) Feasibility and policy consistency.

Degree to which the proposal clearly

describes its objectives and evidences a

high level of feasibility and consistency

with the USDA policy and mission. This

criterion relates to the adequacy,

soundness of the proposed approach to

the solution of the problem and

evaluates the plan of operation,

timetable, evaluation and dissemination

plans.

(3) Number of socially disadvantaged

farmers and ranchers served and

collaboration. Degree to which the

proposal reflects partnerships and

collaborative initiatives with other

agencies or organizations to enhance the

quality and effectiveness of the program.

Additionally, the areas and number of

socially disadvantaged farmers and

ranchers who would benefit from the

services offered.

(4) Socially disadvantaged applicantsoutreach. Degree to which the proposal

contains efforts to reach persons

identified as socially disadvantaged

farmers and ranchers in targeted

counties. Potential for encouraging and

assisting socially disadvantaged farmers

and ranchers to own and operate farms

and ranches and to participate in

agricultural programs. Elements

considered include impact,

continuation plans, innovation, and

expected products and results.

(5) Preparatory features—statement of

work. Degree to which the proposal

reflects innovative strategies for

reaching the population targeted in the

proposal and achieving the project

objectives. Elements evaluated include

originality, practicality, and creativity in

developing and testing innovative

solutions to existing or anticipated

issues or problems of socially

disadvantaged farmers and ranchers.

Responsiveness to the need to provide

socially disadvantaged farmers and

ranchers with information and

assistance on application and bidding

procedures, farm management, other

essential information to enhance

participation of agricultural programs

and conducting a successful farming

operation.

(6) Overall quality of the proposal.

Degree to which the proposal complies

with the Application Guidelines and is

of high quality. Elements considered

Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules 21615

include adherence to instructions,

accuracy and completeness of forms,

clarity and organization of ideas,

thoroughness and sufficiency of detail

in the budget narrative, specificity of

allocations between targeted areas if the

proposal addresses more than one area,

and completeness of vitae for all key

personnel associated with the project.

§ 26.11 Award process.

(a) OR will use the views of the

individual reviewers to determine

which proposals to recommend to the

awarding official for funding. Evaluated

proposals will be ranked by OR based

on merit. The awarding official reserves

the right to make awards to ensure the

variety among successful applicants and

the nature of the projects funded in

order to accomplish the program

objectives. The awarding official also

reserves the right to negotiate with

applicants recommended for funding

regarding project revisions (e.g.,

reductions in scope of work), funding

level, or period of support prior to an

award, based on the amount of

resources available to achieve the broad

program objectives. Revisions to

proposals recommended for funding

may not increase the proposed scope of

or funding for a project or otherwise

undermine or circumvent the

competitive nature of the award process.

(b) The final decision to award is at

the discretion of the awarding official.

The awarding official shall consider the

peer reviewers’ comments and the

recommendations by the OR staff and

any other pertinent information before

making a final decision.

(c) After a decision regarding funding

is made, OR and the awardee which is

selected will enter into a grant or

cooperative agreement. The awarding

official will notify the awardee of

approval and inform it of the necessary

documents needed to execute the

agreement.

(d) Once all award decisions are

made, OR will notify all unsuccessful

applicants that their proposals did not

receive an award.

§§ 26.12–26.14 [Reserved]

§ 26.15 Authorized use of funds.

Any funds authorized by the Outreach

and Assistance for Socially

Disadvantaged Farmers and Ranchers

program must be used only for the

project under the grant or cooperative

agreement. There is no other authorized

use of the funds. Eligible costs are

limited to those line items specified in

the approved budget.

§§ 26.16—26.25 [Reserved]

§ 26.26 Other applicable Federal statutes

and regulations.

Several other Federal statutes and

regulations apply to this program. These

include, but are not limited to, the

following:

(a) 7 CFR part 1b—USDA

Implementation of the National

Environmental Policy Act;

(b) 7 CFR part 3—USDA

implementation of OMB Circular A–129

regarding debt collection;

(c) 7 CFR part 1.1—USDA

implementation of the Freedom of

Information Act;

(d) 7 CFR part 15, Subpart A—USDA

implementation of Title VI of the Civil

Rights Act of 1964;

(e) 7 CFR part 3015—USDA Uniform

Federal Assistance Regulations,

implementing OMB Directives (i.e.,

Circular Nos. A–110, A–21, and A–122)

and incorporating provisions of 31

U.S.C. 6301–6308 as well as general

policy requirements applicable to

awardees of Departmental financial

assistance;

(f) 7 CFR part 3017—USDA

implementation of Government-wide

Debarment and Suspension

(nonprocurement) and Governmentwide

Requirements for Drug-Free Workplace

(Grants);

(g) 7 CFR part 3018—USDA

implementation of New Restrictions on

Lobbying. Imposes prohibitions and

requirements for disclosure and

certification related to lobbying on

awardees of Federal contracts, grants,

cooperative agreements, and loans;

(h) 7 CFR part 3019—USDA Uniform

Administrative Requirements for Grants

and Agreements with Institutions of

Higher Education, Hospitals, and Other

Non-Profit Organizations;

(i) 29 U.S.C. 794, Section 504 of the

Rehabilitation Act of 1973, and 7 CFR

part 156 (USDA implementation of the

statute)—Prohibits discrimination based

upon physical or mental handicap in

Federally assisted programs; and

(j) 35 U.S.C. 200 et seq.—Bayh-Dole

Act, controlling allocation of rights to

inventions made by employees of small

business firms and domestic nonprofit

organizations, including universities, in

Federally assisted programs

(implementing regulations are contained

in 37 CFR part 401).

§ 26.27 Fund disbursement.

The method of payment will be by

reimbursement by Electronic Fund

Transfer (EFT), and payment will be

requested on Standard Form (SF) 270,

‘‘Request for Advance or

Reimbursement.’’ Payments will be

processed in accordance with 7 CFR

parts 3015 and 3019, as applicable.

§ 26.28 Financial management systems

and reporting requirements.

(a) Awardees must comply with

standards for the financial management

and reporting and program performance

reporting found in 7 CFR parts 3015 and

3019, as applicable.

(b) Awardees must provide to the OR

quarterly financial and program

performance reports. The reports are

due 30 days after the reporting period,

and an original and two copies of each

report will be submitted. The financial

report will be presented on SF–269,

‘‘Financial Status Report,’’ and the

financial and program performance

reports will be prepared in accordance

with 7 CFR parts 3015 and 3019, as

applicable.

(c) The program performance report

should also address progress on the

activities under each of the areas of

outreach and technical assistance, as

stipulated in the grant or cooperative

agreement.

§§ 26.29–26.36 [Reserved]

§ 26.37 Monitoring compliance and penalty

for noncompliance.

(a) OR monitoring. OR will monitor

compliance of the Outreach and

Assistance for Socially Disadvantaged

Farmers and Ranchers projects through

the reports received in accordance with

§ 26.28 of this part, through information

received from USDA field offices and

the public, and through on-site visits to

observe the operation and

administration of the program.

(b) Audits. Awardees are subject to

the audit requirements of 7 CFR parts

3015 and 3019, as applicable. An audit

report will be submitted to OR annually

in accordance with OMB Circular A–

133. All records of the awardees will be

subject to audit by appropriate USDA

Office of Outreach staff or other

responsible authority.

(c) Penalty for noncompliance. If the

Director, OR determines that a project

does not meet or no longer meets the

objective of the program, that there has

been a violation of the grant or

cooperative agreement, that reporting

requirements are not being met, or that

funds are not being used only for the

operation and administration of the

authorized project, the awarding official

is authorized to impose any penalties or

sanctions established in 7 CFR parts

3015 and 3019, as applicable. Penalties

may include withholding payments,

suspension of the grant or cooperative

agreement, or termination for cause. If a

penalty for noncompliance is enforced,

the reason(s) will be stated in a letter to

21616 Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules

the awardee along with appeal

procedures.

§§ 26.38–26.40 [Reserved]

§ 26.41 Nondiscrimination.

The policies and regulations

contained in 7 CFR parts 15, 15a, and

15b apply to grants and cooperative

agreements made under this part.

§§ 26.42–26.50 [Reserved]

Done at Washington, DC, this 23rd day of

April, 2001.

Ann M. Veneman,

Secretary of Agriculture.

[FR Doc. 01–10523 Filed 4–27–01; 8:45 am]

BILLING CODE 3410–01–U