[Federal Register Volume 60, Number 238 (Tuesday, December 12, 1995)]
[Rules and Regulations]
[Pages 63872-63873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30127]




[[Page 63871]]

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Part V





Department of Education





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34 CFR Part 75



Direct Grant Programs; Final Rule

Federal Register / Vol. 60, No. 238 / Tuesday, December 12, 1995 / 
Rules and Regulations 

[[Page 63872]]


DEPARTMENT OF EDUCATION

34 CFR Part 75

RIN 1880-AA69


Direct Grant Programs

AGENCY: Department of Education.

ACTION: Final regulations.

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SUMMARY: The Secretary amends the Education Department General 
Administrative Regulations (EDGAR) that govern discretionary grant 
programs. These amendments reduce the need for specific regulations 
governing individual programs. The amendments authorize the Secretary 
to establish selection criteria for a discretionary grant program based 
on statutory provisions that apply to a program and on existing 
selection criteria in EDGAR. The amendments also clarify the 
Secretary's authority to establish annual funding priorities for grant 
competitions.

EFFECTIVE DATE: These regulations take effect January 11, 1996. These 
regulations will affect only those competitions announced in the 
Federal Register after this effective date.

FOR FURTHER INFORMATION CONTACT: Ms. Jacinta Ma, U.S. Department of 
Education, 600 Independence Avenue, SW., Washington, DC 20202-2241. 
Telephone: (202) 401-8300. Individuals who use a telecommunications 
device for the deaf (TDD) may call the Federal Information Relay 
Service (FIRS) at 1-800-877-8339 between 8 a.m. and 5 p.m., Eastern 
time, Monday through Friday.

SUPPLEMENTARY INFORMATION: These amendments allow the Secretary to 
establish selection criteria based on certain statutory provisions, 
clarify the Secretary's authority to establish one or more annual 
priorities, and allow the Secretary to establish the maximum score for 
each selection criterion on a competition-by-competition basis. The 
amendments also conform existing regulations in Secs. 75.1 and 75.200 
to reflect the additional method for establishing selection criteria.
    On September 1, 1995, the Secretary published a notice of proposed 
rulemaking (NPRM) for these amendments in the Federal Register (60 FR 
46004).
    Except for minor technical and editorial revisions, there are no 
differences between the NPRM and these final regulations.

Analysis of Comments and Changes

    In response to the Secretary's invitation in the NPRM two parties 
submitted comments on the proposed regulations. An analysis of the 
comments follows.
    Technical and other minor changes--and suggested changes the 
Secretary is not legally authorized to make under the applicable 
statutory authority--are not addressed.
    Comment: One commenter suggested that the Secretary add a selection 
criterion that would give additional consideration to small entities, 
such as small vocational rehabilitation agencies, because these 
entities have fewer resources than large entities for developing grant 
proposals, and thus are at a disadvantage in competing for awards.
    Discussion: These amendments to EDGAR are not intended to change 
the substance of the EDGAR selection criteria. These amendments allow 
the Secretary to establish selection criteria based on statutory 
provisions and allow the Secretary to establish the maximum value of 
each criterion on a competition-by-competition basis. The Secretary 
expects to amend the EDGAR selection criteria in the future and will 
consider this comment in developing the new selection criteria.
    Changes: None.
    Comment: One commenter expressed opposition to the provision that 
would allow the Secretary to establish without public comment annual 
funding priorities that are specified in a program statute or selected 
from allowable activities specified in a program statute. The commenter 
believed that it would be important for the public to be able to 
comment on the establishment of annual priorities to alert the 
Secretary to important issues within States that might require changing 
a proposed priority.
    Discussion: The Secretary believes that creating the option for the 
Department to establish certain annual funding priorities without 
public comment will allow the Department to award grants more quickly 
and at a time more convenient and useful to potential grantees. The 
Secretary believes that public comment on these types of priorities 
would be minimal. For those priorities specified in the authorizing 
statute, public comment would be limited to the way the Department 
implements the statutory priority, e.g., what weight to give to the 
priority or how to choose among priorities. Statutory priorities, 
moreover, are established through the legislative process, which 
provides for participation and comment from the public. In establishing 
priorities, the Department will continue to be guided by information 
generated during the legislative process, the Department's experience 
in administering its programs, and feedback from customers, grantees 
and others. The Secretary has balanced the benefits to all grant 
recipients of a speedier and more efficient grant making process 
against the loss of the public's opportunity to provide formal comment 
in these limited circumstances and has determined that the benefits 
outweigh the disadvantages.
    Changes: None.

Paperwork Reduction Act of 1995

    These amendments have been examined under the Paperwork Reduction 
Act of 1995 and have been found to contain no information collection 
requirements.

Intergovernmental Review

    Some of the programs that would be affected by these regulations 
are subject to the requirements of Executive Order 12372 and the 
regulations in 34 CFR part 79. The objective of the Executive order is 
to foster an intergovernmental partnership and a strengthened 
federalism by relying on processes developed by State and local 
governments for coordination and review of proposed Federal financial 
assistance.
    In accordance with the order, this document is intended to provide 
early notification of the Department's specific plans and actions for 
these programs.

Assessment of Educational Impact

    In the notice of proposed rulemaking, the Secretary requested 
comments on whether the proposed regulations would require transmission 
of information that is being gathered by or is available from any other 
agency or authority of the United States.
    Based on the response to the proposed rules and on its own review, 
the Department has determined that the regulations in this document do 
not require transmission of information that is being gathered by or is 
available from any other agency or authority of the United States.

List of Subjects in 34 CFR Part 75

    Administrative practice and procedure, Continuation funding, 
Education, Grant programs--education, Grants administration, 
Incorporation by reference, Performance reports, Reporting and 
recordkeeping requirements, Unobligated funds.

(Catalog of Federal Domestic Assistance Number does not apply.)

 
[[Page 63873]]

    Dated: December 5, 1995.
Richard W. Riley,
Secretary of Education.

    The Secretary amends part 75 of Title 34 of the Code of Federal 
Regulations as follows:

PART 75--DIRECT GRANT PROGRAMS

    1. The authority citation for part 75 continues to read as follows:

    Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted.

    2. Section 75.1 is amended by revising the Note to read as follows:


Sec. 75.1  Programs to which part 75 applies.

* * * * *
    Note: See part 76 for the general regulations that apply to 
programs that allocate funds among eligible States. For a 
description of the two kinds of direct grant programs see 
Sec. 75.200. Paragraph (b) of that section describes discretionary 
grant programs. Paragraph (c) of that section describes formula 
grant programs. Also see Secs. 75.201, 75.209, and 75.210 for the 
selection criteria for discretionary grant programs that do not have 
implementing regulations or whose implementing regulations do not 
include selection criteria.


Sec. 75.101  [Amended]

    3. Section 75.101 is amended by removing paragraph (c).
    4. Section 75.105 is amended by removing the word ``or'' following 
paragraph (b)(2)(ii), replacing the period at the end of paragraph 
(b)(2)(iii) with a semicolon, adding new paragraphs (b)(2)(iv) and 
(b)(2)(v), and revising the first sentence in paragraph (c)(2)(i) to 
read as follows:


Sec. 75.105  Annual priorities.

* * * * *
    (b) * * *
    (2) * * *
    (iv) The program statute requires or authorizes the Secretary to 
establish specified priorities; or
    (v) The annual priorities are chosen from allowable activities 
specified in the program statute.
    (c) * * *
    (2) * * *
    (i) The Secretary may award some or all bonus points to an 
application depending on the extent to which the application meets the 
priority. * * *

    5. Section 75.200 is amended by revising paragraph (b)(3) to read 
as follows:


Sec. 75.200  How applications for new grants and cooperative agreements 
are selected for funding; standards for use of cooperative agreements.

* * * * *
    (b) * * *
    (3) If a discretionary grant program does not have implementing 
regulations or has implementing regulations that do not include 
selection criteria, the Secretary uses one of the following to evaluate 
applications for new grants under the program:
    (i) Selection criteria established under Sec. 75.209.
    (ii) Selection criteria in Sec. 75.210.
    (iii) A combination of selection criteria established under 
Sec. 75.209 and selection criteria in Sec. 75.210.
* * * * *
    6. Section 75.201 is revised to read as follows:


Sec. 75.201  How to use the selection criteria.

    (a) If points are assigned to the selection criteria, the Secretary 
informs applicants of--
    (1) The total possible score for all of the criteria for a program; 
and
    (2) The maximum possible score for each criterion.
    (b) If no points are assigned to the selection criteria, the 
Secretary evaluates each criterion equally.

(Authority: 20 U.S.C. 1221e-3 and 3474)

    7. A new Sec. 75.209 is added to read as follows:


Sec. 75.209  Selection criteria based on statutory provisions.

    (a) If a discretionary grant program does not have implementing 
regulations or has implementing regulations that do not include 
selection criteria, the Secretary may evaluate applications by--
    (1) Establishing selection criteria based on statutory provisions 
that apply to the authorized program, which may include, but are not 
limited to--
    (i) Specific statutory selection criteria;
    (ii) Allowable activities;
    (iii) Application content requirements; or
    (iv) Other pre-award and post-award conditions; and
    (2) Assigning the maximum possible score for each of the criteria 
established under paragraph (a)(1) of this section.
    (b) The Secretary evaluates an application by determining how well 
the project proposed by the applicant meets each statutory provision 
selected under paragraph (a)(1) of this section.

    Example: If a program statute requires that each application 
address how the applicant will serve the needs of limited English 
proficient children, under Sec. 75.209 the Secretary could establish 
a criterion and evaluate applications based on how well the 
applicant's proposed project meets that statutory provision. The 
Secretary might decide to award up to 10 points for this criterion. 
Applicants who have the best proposals to serve the needs of limited 
English proficient children would score highest under the criterion 
in this example.

(Authority: 20 U.S.C. 1221e-3 and 3474)

    8. Section 75.210 is amended by revising the heading, removing 
paragraphs (a) and (c), removing the point designations following the 
italicized headings in paragraphs (b) (1), (2), (3), (4), (5), (6), and 
(7), adding undesignated introductory text, removing ``The criteria--'' 
in paragraph (b), and redesignating paragraphs (b)(1), (b)(1) (i) and 
(ii), (b)(2), (b)(2)(i)-(iv), (b)(3), (b)(3)(i)-(vi), (b)(4), 
(b)(4)(i)(A)-(D), (b)(4)(ii) (A) and (B), (b)(5), (b)(5) (i) and (ii), 
(b)(6), (b)(6) (i) and (ii), and (b)(7) as paragraphs (a), (a) (1) and 
(2), (b), (b)(1)-(4), (c), (c)(1)-(6), (d), (d)(1)(i)-(iv), (d)(2) (i) 
and (ii), (e), (e) (1) and (2), (f), (f) (1) and (2), and (g), 
respectively, to read as follows:


Sec. 75.210  General selection criteria.

    The Secretary may use one or more of the following selection 
criteria, together with one or more criteria established under 
Sec. 75.209, if any, to evaluate applications for new grants under a 
discretionary grant program:
    (a) Meeting the purposes of the authorizing statute. * * *
    (b) Extent of need for the project. * * *
    (c) Plan of operation. * * *
    (d) Quality of key personnel. * * *
    (e) Budget and cost effectiveness. * * *
    (f) Evaluation plan. * * *
    (g) Adequacy of resources. * * *

(Authority: 20 U.S.C. 1221e-3 and 3474)

[FR Doc. 95-30127 Filed 12-11-95; 8:45 am]
BILLING CODE 4000-01-P