This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

3779

Vol. 61, No. 23

Friday, February 2, 1996

DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business—Cooperative Service

Rural Utilities Service

Farm Service Agency

7 CFR Parts 1901, 1940, 1951, and 2003

Rural Business—Cooperative Service

Rural Utilities Service

7 CFR Chapter XLII and Part 4284

RIN 0570–AA02

Rural Technology and Cooperative

Development Grants

AGENCY: Rural Housing Service, Rural

Business-Cooperative Service, Rural

Utilities Service, and Farm Service

Agency, USDA.

ACTION: Final rule.

SUMMARY: The Rural BusinessCooperative Service (RBS) revises its

regulations for Rural Technology and

Cooperative Development Grants

(RTCDG) and amends other regulations

utilized by RBS in administering its

grant programs. This action is necessary

to comply with legislation which

authorizes grants for establishing and

operating centers for rural technology or

cooperative development. The intended

effect of this action is to implement this

grant program.

EFFECTIVE DATE: February 2, 1996.

FOR FURTHER INFORMATION CONTACT:

Joseph R. Binder, Director, Specialty

Lenders Division, Rural BusinessCooperative Service, US Department of

Agriculture, Room 2245, South

Agriculture Building, 14th and

Independence Ave. SW, Washington,

D.C. 20250. Telephone (202) 720–1400.

SUPPLEMENTARY INFORMATION:

Classification

We are issuing this final rule in

conformance with Executive Order

12866, and the Office of Management

and Budget has determined that it is not

a ‘‘significant regulatory action.’’

Environmental Impact Statement

This document has been reviewed in

accordance with 7 CFR part 1940,

subpart G, ‘‘Environmental Program.’’

RBS has determined that this action

does not constitute a major federal

action significantly affecting the quality

of the human environment, and in

accordance with the National

Environmental Policy Act of 1969, Pub.

L. 91–190, an Environmental Impact

Statement is not required.

Executive Order 12778

This final rule has been reviewed

under Executive Order 12778, Civil

Justice Reform. In accordance with this

rule: (1) all state and local laws and

regulations that are in conflict with this

rule will be preempted; (2) no

retroactive effect will be given to this

rule and; (3) administrative proceedings

in accordance with the regulations of

the Agency at 7 CFR, part 1900, subpart

B, or those regulations published by the

Department of Agriculture to implement

the provisions of the National Appeals

Division as mandated by the

Department of Agriculture

Reorganization Act of 1994, whichever

is applicable, must be exhausted before

bringing suit in court challenging action

taken under this rule unless those

regulations specifically allow bringing

suit at an earlier time.

Intergovernmental Review

This program is listed in the Catalog

of Federal Domestic Assistance under

number 10.771 and is subject to the

provisions of Executive Order 12372

which requires intergovernmental

consultation with state and local

officials. RBS has conducted

intergovernmental consultation in the

manner delineated in FmHA Instruction

1940–J.

National Performance Review

This regulatory action is being taken

as part of the National Performance

Review program to eliminate

unnecessary regulations and improve

those that remain in force.

Unfunded Mandate Reform Act of 1995

Title II of the Unfunded Mandate

Reform Act of 1995 (UMRA), Pub. L.

104–4, establishes requirements for

Federal agencies to assess the effects of

their regulatory actions on State, local,

and tribal governments and the private

sector. Under section 202 of the UMRA,

RBS generally must prepare a written

statement, including a cost-benefit

analysis, for proposed and final rules

with ‘‘Federal mandates’’ that may

result in expenditures to State, local, or

tribal governments, in the aggregate, or

to the private sector, of $100 million or

more in any one year. When such a

statement is needed for a rule, section

205 of the UMRA generally requires

RBS to identify and consider a

reasonable number of regulatory

alternatives and adopt the least costly,

more cost-effective or least burdensome

alternative that achieves the objectives

of the rule.

This rule contains no Federal

mandates (under the regulatory

provisions of Title II of the UMRA) for

State, local, and tribal governments or

the private sector. Thus today’s rule is

not subject to the requirements of

sections 202 and 205 of the UMRA.

Paperwork Reduction Act

The information collection and record

keeping requirements contained in these

regulations were previously approved

by the Office of Management and

Budget (OMB) under the provisions of

44 U.S. C. Chapter 35 and have been

assigned OMB control numbers 0575–

0018, 0575–0066, and 0570–0006, in

accordance with the Paperwork

Reduction Act of 1980. This final rule

does not impose any new information or

record keeping requirements from those

approved by OMB.

Background

The RTCDG program was established

by interim rule on August 12, 1994 (59

Fed. Reg. 41386–98). The public

comment period ended October 11,

1994. The RTCDG program is authorized

by section 310B(f) through (h) of the

Consolidated Farm and Rural

Development Act (7 U.S.C. § 1932 Act).

The primary objective of the program is

to improve the economic condition of

rural areas. The RTCDG program will

achieve this objective by supporting the

creation or enhancement of institutions

including cooperatives capable of
3780 Federal Register / Vol. 61, No. 23 / Friday, February 2, 1996 / Rules and Regulations

promoting the development and

commercialization of new services,

products, processes, and enterprises.

The program is administered through

Rural Economic and Community

Development (RECD) State Offices

acting on behalf of RBS. RBS, formerly

known as the Rural Business and

Cooperative Development Service, is the

successor of the Rural Development

Administration as to the RTCDG

program pursuant to the Department of

Agriculture Reorganization Act of 1994

(Pub. L. 103–354).

Discussion of Public Comments

A total of 14 commenters offered

comments to the interim rule. The

commenters represented the federal

agencies, Arkansas Enterprise Groups,

National Rural Cooperative

Development Task Force, New York

Department of City & Regional Planning,

Winrock International in Arkansas,

Southwest Grain of North Dakota, The

Maine Ambulatory Care Coalition, and

The North Dakota Associations of Rural

Electric and Telephone Cooperatives.

Several respondents objected to the

kinds of demographic data required

because they believe it was not

available, did not accurately represent,

or only partially represented the

distressed economic conditions of rural

areas. The Agency agrees and, therefore,

amends the regulation to allow

applicants to use their choice of data as

long as they reflect the intent of serving

economically distressed communities

and the data are from established

official independent sources. This

change will give applicants flexibility to

use available data that best describe the

conditions impacted by their proposal.

The Agency, however, still will give

preference in selecting those projects

demonstrating their ability to effectively

serve rural areas with few rural

industries and agribusinesses, high

levels of unemployment or

underemployment, high rates of

outmigration of people, businesses, and

industries, or low levels of per capita

income. This preferential treatment is

required by Conact § 310B (f) (3).

Three respondents objected to the use

of the terms, ‘‘industry’’ and

‘‘agribusiness’’ because there were no

definitions provided and there is no

consistent source of comprehensive data

available. These terms also did not

explain how to consider other points

such as temporary businesses, and small

vs. large businesses. These comments

were adopted to allow applicants to use

their choice of data with regard to

industries and agribusinesses as long as

they provided an accurate,

comprehensive description of the

economic conditions of their

community and their data are secured

from established official independent

sources.

Three respondents recommended that

a higher score or priority be given to

applicants who collaborate with others.

The comment was not adopted because

collaboration will strengthen the

preapplication in all or most of the

listed selection criteria so that it would

not be a distinguishing factor. One

respondent suggested that a higher

priority be given to regional and

multistate projects. The rule was not

amended to adopt this comment

because it would work unfairly against

those organizations which do not have

multistate responsibilities. Under the

final rule there is no prohibition against

multistate projects. In fact, applicants

who propose multistate projects may get

more points because of their project’s

ability to demonstrate national

applicability of innovations developed

under the program. One of the

preferential selection criteria is the

transferability or demonstration value of

the project in helping rural areas outside

the project area.

One respondent suggested that a

higher priority be given to applicants in

states who have not received RTCDG

grants. This comment was not adopted

because it would work unfairly against

organizations which produce multiple

quality applications.

One respondent suggested that a

higher priority be given to organizations

which administer multiple projects

through several organizations. Another

respondent suggested that fewer points

be given to organizations which

administer multiple projects. These

comments were not adopted because the

Agency sees no clear advantages or

disadvantages to funding organizations

who administer multiple projects. The

possibility exists that organizations

which administer multiple projects

would have a broader perspective, a

better ability to disseminate their

innovations nationally, and a stronger

capacity to manage projects effectively;

however, the possibility also exists that

this organization would increase

overhead costs and provide fewer

resources to benefit rural communities.

Thus, the Agency finds no basis for

treating multiple project applicants

differently than single project

applicants.

Two respondents suggested that a

higher priority be given to organizations

with demonstrated ability to administer

effective projects. The Agency agrees

and has adopted the comment as part of

the criteria for scoring. Specifically, the

Agency will consider the experience,

organizational skills, and background

needed to successfully carry out the

project.

One respondent suggested that the

requirement for 25 percent matching

funds be limited to administrative costs.

The rule was not amended because

program funds are limited and it is

believed that organizations need to

match some of the funding to

demonstrate local support for the

application.

One respondent suggested that all

projects must be exclusively rural. The

comment was not adopted. The projects

will serve rural areas; however, there is

nothing wrong with indirect benefits

supporting urban interests as well as

rural.

Two respondents recommended that

the requirement to secure ‘‘evidence of

support’’ for the project from all of the

affected local governmental bodies be

dropped. The rule was not amended

because all affected governmental

bodies should be on record as

supporting the project. The time spent

documenting this support will be worth

the time spent in order to avoid

misunderstandings later.

One respondent recommended that

projects be selected in all major rural

areas of the United States. The comment

was not adopted in order to allow for

the highest quality preapplications to be

selected.

One respondent recommended that a

different theme be selected each year.

The Agency agrees that this is a

desirable policy and plans to adopt it to

the extent possible in keeping with rulemaking requirements of the

Administrative Procedures Act.

One respondent recommended that

the preapplications be sent to the RECD

State Office for initial processing to

determine eligibility and to ensure that

all necessary forms were in place before

sending the preapplications to the RBS

National Office for scoring and

selection. The RBS National Office will

follow this process. This is a better

process because the RECD State Office

employees know the area, applicants,

and conditions of the communities

better and can advise the National

Office. Organizations who prepare

multistate preapplications are to submit

their preapplications through the state

where the organization’s headquarters

are located.

One respondent commented that

using RTCDG funds for revolving loans

should be given a low priority. The

Agency agrees that the RTCDG program

should emphasize those statutory

factors that will benefit economically

distressed communities. However,

Conact § 310B (f) (2) (C) specifically
Federal Register / Vol. 61, No. 23 / Friday, February 2, 1996 / Rules and Regulations 3781

provides that an acceptable center

activity is a program providing loans

and grants to individuals, small

businesses, and cooperatives in rural

areas served by the center for purposes

of generating, evaluating, developing,

and commercializing new products,

processes, or services. The Agency will

continue to carry out this mandate in its

review and selection process.

In addition to the changes made in

response to public comments, the

Agency has made some administrative

revisions. The Agency has revised its

selection criteria to provide for

Administrator’s points. The

Administrator may give emphasis to

geographical distribution, interagency

cooperation, or other appropriate

factors. This change will allow the

Administrator the flexibility to choose

the best applicants for limited grant

funds.

The Agency has added definitions for

‘‘center’’ and ‘‘subcenter’’ for clarity.

The Agency also has added references

to the applicability of recently adopted

departmental regulations to RTCDG

grants made to nonprofit institutions.

The Uniform Administrative

Requirements For Grants and

Agreements with Institutions of Higher

Education, Hospitals, and Other Nonprofit Organizations, 7 CFR part 3019,

were adopted by interim final rule (60

Fed. Reg. 44122–39) on August 24,

1995.

The final rule removes the points

from the selection criteria. The points

assigned to each of the selection criteria

will be given in the Federal Register

notice to be published in advance each

year. This will allow the Agency to

adjust the priorities given to each of the

preferential factors on a yearly basis to

best meet the objectives set forth in the

regulations.

All references to Farmers Home

Administration in the organization

procedures of 7 CFR part 2003 will be

left in place but will be revised in the

near future. At that time they will be

changed to reflect the current names of

the new agencies which were formed as

a result of the reorganization.

Internal management procedures have

been removed from the regulations but

will appear in internal agency

instructions.

List of Subjects

7 CFR Part 1901

Civil rights, Compliance reviews, Fair

housing, Minority groups.

7 CFR Part 1940

Allocations, Administrative practice

and procedure, Agriculture, Grant

programs—Housing and community

development, Loan programs—

Agriculture, Rural areas.

7 CFR Part 1951

Account servicing, Grant programs—

Housing and community development,

Reporting requirements, Rural areas.

7 CFR Part 2003

Organization and functions

(Government agencies).

7 CFR Part 4284

Business and Industry, Grant

programs—Housing and community

development, Rural areas.

Accordingly, chapters XVIII and XLII,

title 7, Code of Federal Regulations, are

amended as follows:

CHAPTER XVIII—RURAL HOUSING

SERVICE, RURAL BUSINESS

COOPERATIVE SERVICE, RURAL UTILITIES

SERVICE, AND FARM SERVICE AGENCY

PART 1901—PROGRAM-RELATED

INSTRUCTIONS

1. The authority citation for part 1901,

subpart E, is revised as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 40

U.S.C. 442; 42 U.S.C. 1480, 2942.

Subpart E—Civil Rights Compliance

Requirements *C*

2. Section 1901.204 is amended by

revising paragraph (a)(27) to read as

follows:

§ 1901.204 Compliance reviews.

(a) * * *

(27) Rural Technology and

Cooperative Development Grants in

subpart F of part 4284 of this title.

* * * * *

PART 1940—GENERAL

3. The authority citation for part 1940

is revised to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42

U.S.C. 1480.

Subpart L—Methodology and

Formulas for Allocation of Loan and

Grant Program Funds

§ 1940.590 [Removed and Reserved]

4. Section 1940.590 is removed and

reserved.

PART 1951—SERVICING AND

COLLECTIONS

5. The authority citation for part 1951

is revised to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42

U.S.C. 1480.

Subpart E—Servicing of Community

and Insured Business Programs Loans

and Grants

6. Section 1951.201 is revised to read

as follows:

§ 1951.201 Purpose.

This subpart prescribes the Rural

Economic and Community Development

(RECD) mission area policies,

authorizations, and procedures for

servicing Water and Waste Disposal

System loans and grants; Community

Facility loans; Rural Business

Enterprise/Television Demonstration

grants; loans for Grazing and other shiftin-land-use projects; Association

Recreation loans; Association Irrigation

and Drainage loans; Watershed loans

and advances; Resource Conservation

and Development loans; Insured

Business loans; Economic Opportunity

Cooperative loans; loans to Indian

Tribes and Tribal Corporations; Rural

Renewal loans; Energy Impacted Area

Development Assistance program

grants; National Nonprofit Corporation

grants; Water and Waste Disposal

Technical Assistance and Training

grants; Emergency Community Water

Assistance grants; System for Delivery

of Certain Rural Development Programs

panel grants; section 306C WWD loans

and grants in subpart E of part 4284 of

this title; and Rural Technology and

Cooperative Development Grants in

subpart F of part 4284 of this title. RECD

State Offices act on behalf of the Rural

Housing Service, the Rural BusinessCooperative Service and the Rural

Utilities Service as to loan and grant

programs formerly administered by the

Farmers Home Administration, the

Rural Development Administration, and

the Rural Electrification Administration.

Loans sold without insurance to the

private sector will be serviced in the

private sector and will not be serviced

under this subpart. The provisions of

this subpart are not applicable to such

loans. Future changes to this subpart

will not be made applicable to such

loans.

* * * * *

PART 2003—ORGANIZATION

7. The authority citation for part 2003

is revised to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42

U.S.C. 1480; Public Law 100–82, 101 Stat.

545.
3782 Federal Register / Vol. 61, No. 23 / Friday, February 2, 1996 / Rules and Regulations

Subpart A—Functional Organization of

the Farmers Home Administration or

its Successor Agency Under Public

Law 103–354

Exhibit A to part 2003 [Amended]

8. In part 2003, Exhibit A of subpart

A, paragraph 2, under the heading of

Assistant Administrator—Community

and Business Programs is amended by

revising ‘‘rural technology development

grants’’ to read ‘‘rural technology and

cooperative development grants.’’

9. The heading of 7 CFR chapter XLII

is revised to read as follows:

CHAPTER XLII—RURAL BUSINESSCOOPERATIVE SERVICE AND RURAL

UTILITIES SERVICE, DEPARTMENT OF

AGRICULTURE

Chapter XLII (Parts 4284 and 4285)

[Amended]

10. In 7 CFR chapter XLII (consisting

of parts 4284 and 4285), everywhere

‘‘Farmers Home Administration’’,

‘‘FmHA’’, ‘‘Rural Development

Administration’’, or ‘‘RDA’’ appear,

except ‘‘FmHA Instruction’’ and ‘‘Form

FmHA’’ references, add the phrase ‘‘or

its successor agency’’ immediately

thereafter.

PART 4284—GRANTS

11. The authority citation for part

4284 is revised to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16

U.S.C. 1005.

12–13. Subpart F of part 4284 is

revised to read as follows:

Subpart F—Rural Technology and

Cooperative Development Grants

Sec.

4284.501 Purpose.

4284.502 Policy.

4284.503 [Reserved]

4284.504 Definitions.

4284.505 Applicant eligibility.

4284.506–4284.514 [Reserved]

4284.515 Grant purposes.

4284.516 Ineligible grant purposes.

4284.517–4284.526 [Reserved]

4284.527 Other considerations.

4284.528 Application processing.

4284.529–4284.539 [Reserved]

4284.540 Grant selection criteria.

4284.541 Grant approval, fund obligation,

grant closing, and third-party financial

assistance.

4284.542–4284.556 [Reserved]

4284.557 Fund disbursement.

4284.558 Reporting.

4284.559–4284.570 [Reserved]

4284.571 Audit requirements.

4284.572 Grant servicing.

4284.573 Programmatic changes.

4284.574 Subsequent grants.

4284.575 Grant suspension, termination,

and cancellation.

4284.576–4284.586 [Reserved]

4284.587 Exception authority.

4284.588–4284.599 [Reserved]

4284.600 OMB control number.

Subpart F–Rural Technology and

Cooperative Development Grants

§ 4284.501 Purpose.

(a) This subpart outlines the Rural

Business-Cooperative Service’s (RBS)

policies and authorizations and sets

forth procedures to provide grants for

technology and cooperative

development in rural areas.

(b) Grants for establishing and

operating centers for rural technology or

cooperative development will be for the

primary purpose of improving the

economic condition of rural areas by

promoting the development (through

technological innovation, cooperative

development, and adaptation of existing

technology) and commercialization of

new services and products that can be

produced or provided in rural areas;

new processes that can be utilized in the

production of products in rural areas;

and new enterprises or cooperatives that

can add value to on-farm production

through processing or marketing.

(c) Copies of all forms and

Instructions referenced in this subpart

are available in the RBS National Office

or any RECD State Office.

§ 4284.502 Policy.

(a) The grant program will be used to

assist in the economic development of

rural areas.

(b) Funds allocated for use in

accordance with this subpart are also to

be considered for use by Native

American tribes within the state

regardless of whether state development

strategies include Indian reservations

within the state’s boundaries. Native

American tribes residing on such

reservations must have equal

opportunity along with other rural

residents to participate in the benefits of

these programs. This includes equal

application of outreach activities of

RECD servicing offices.

§ 4284.503 [Reserved]

§ 4284.504 Definitions.

Approval official—Any authorized

agency official.

Center—The place established and

operated by the grantee for rural

technology or cooperative development.

Cooperative—An association

organized to provide a specific service

with open membership, equality in

ownership and control, limited return

on members’ capital, and equitable

methods to distribute any excess

earnings back to its members.

Cooperative development—The

startup, expansion, or operational

improvement of a cooperative which

will promote the development of new

services and products that can be

produced or provided in rural areas,

new processes that can be utilized in the

production of products in rural areas, or

new enterprises that can add value to

on-farm production through processing

or marketing. Operational improvement

includes making the cooperative more

efficient, better managed, etc.

Economic development—The growth

of an area as evidenced by increases in

total income, employment

opportunities, decreased outmigration

of populations, value of production,

increased diversification of industry,

higher labor force participation rates,

increased duration of employment,

higher wage levels, or gains in other

measurements of economic activity,

such as land values.

Nonprofit institution—Any

organization or entity, including an

accredited institution of higher

education, no part of the net earnings of

which inures, or may lawfully inure, to

the benefit of any private shareholder or

individual.

Project—The undertaking for which

funds will be used to develop or operate

a technology or cooperative

development center.

Public body—Any state, county, city,

township, incorporated town or village,

borough, authority, district, economic

development authority, or Indian tribe

on federal and state reservation or other

federally recognized Indian tribe in

rural areas.

RBS—The Rural Business-Cooperative

Service, an agency of the United States

Department of Agriculture, or a

successor agency.

RECD—Rural Economic and

Community Development mission area.

Rural and rural area—Includes all

territory of a state that is not within the

outer boundary of any city having a

population of 50,000 or more and its

immediately adjacent urbanized and

urbanizing areas with a population

density of more than 100 persons per

square mile, as determined by the

Secretary of Agriculture according to the

latest decennial census of the United

States.

Servicing office. Any RECD State

Office or successor office.

Small business—A business which

does not exceed the maximum number

of employees or annual receipts allowed

for a concern (including its affiliates) to

be considered small according to the

established size standards for Small

Business Administration (SBA)

assistance as set forth in § 121.601, 13

CFR, part 121. The business may be

operated on a profit or nonprofit basis

but must rely primarily on revenues of

the business for operation rather than

outside support.
Federal Register / Vol. 61, No. 23 / Friday, February 2, 1996 / Rules and Regulations 3783

State—Any of the 50 States, the

Commonwealth of Puerto Rico, the

Virgin Islands of the United States,

Guam, American Samoa, the

Commonwealth of the Northern Mariana

Islands, the Republic of Palau, the

Federated States of Micronesia, and the

Republic of the Marshall Islands.

Subcenter—A unit of a center acting

under the same direction as and having

a purpose consistent with that of the

center.

Technology—The application of

science to industrial or commercial

objectives. The entire body of methods

and material used to achieve such

objectives.

Technology development—The

creation of new technology or the use

and application of existing technology

to promote the development and

commercialization of new products,

new processes, and new services that

can be produced or provided in rural

areas.

Urbanized area—An area

immediately adjacent to a city having a

population of 50,000 or more which, for

general social and economic purposes,

constitutes a single community and has

a boundary contiguous with that of the

city. Such community may be

incorporated or unincorporated to

extend from the contiguous boundaries

to recognizable open country, less

densely settled areas, or natural

boundaries such as forests or water.

Minor open spaces such as airports,

industrial sites, recreational facilities, or

public parks shall be disregarded. Outer

boundaries of an incorporated

community extend at least to its legal

boundaries. Cities which may have a

contiguous border with another city, but

are located across a river from such city,

are recognized as a separate community

and are not otherwise considered a part

of an urbanized or urbanizing area, as

defined in this section, are not in a

nonrural area.

Urbanizing area—A community

which is not now, or within the

foreseeable future not likely to be,

clearly separate from and independent

of a city of 50,000 or more population

and its immediately adjacent urbanized

areas. A community is considered

‘‘separate from’’ when it is separated

from the city and its immediately

adjacent urbanized area by open

country, less densely settled areas, or

natural barriers such as forests or water.

Minor open spaces such as airports,

industrial sites, recreational facilities, or

public parks shall be disregarded. A

community is considered ‘‘independent

of’’ when its social and economic

structure (e.g. government; educational,

health, and recreational facilities; and

business, industry, tax base, and

employment opportunities) is not

primarily dependent on the city and its

immediately adjacent urbanized areas.

§ 4284.505 Applicant eligibility.

(a) Grants may be made to public

bodies or nonprofit institutions.

(b) Grants may be made for

technology and cooperative

development in ‘‘rural areas.’’ In

determining whether an area is rural,

the Agency will determine whether the

area is urbanized or urbanizing and then

the population density per square mile.

All such density determinations will be

made on the basis of minor civil

division or census county division as

used by the Bureau of the Census. In

making the density calculations, large

nonresidential tracts devoted to urban

land uses such as railroad yards,

airports, industrial sites, parks, golf

courses, and cemeteries or land set aside

for such purposes will be excluded.

(c) An outstanding judgement

obtained against an applicant by the

United States in a Federal Court (other

than in the United States Tax Court),

which has been recorded, shall cause

the applicant to be ineligible to receive

any grant or loan until the judgement is

paid in full or otherwise satisfied. RBS

grant funds may not be used to satisfy

the judgement.

§§ 4284.506–4284.514 [Reserved]

§ 4284.515 Grant purposes.

Grant funds may be used to pay up to

75 percent of the costs for establishing

or operating centers for rural technology

or cooperative development.

Applicant’s contribution may be in cash

or third party in-kind contribution in

accordance with parts 3015, 3016 and

3019 of this title and must be from

nonfederal funds except that a loan from

another federal source can be used for

the applicant’s contribution. Grant

funds may be used for, but are not

limited to, the following purposes:

(a) Technology research,

investigations, and basic feasibility

studies in any field or discipline for the

purpose of generating principles, facts,

technical knowledge, new technology,

or other information that may be useful

to rural industries, cooperatives,

agribusinesses, and other persons or

entities in rural areas served by such

centers in the development and

commercialization of new products,

processes, or services.

(b) The collection, interpretation, and

dissemination of principles, facts,

technical knowledge, new technology,

or other information that may be useful

to rural industries, cooperatives,

agribusinesses, and other persons or

entities in rural areas served by the

center in the development and

commercialization of new products,

processes, or services.

(c) Providing training and instruction

for individuals residing in rural areas

served by the center with respect to the

development (through technological

innovation, cooperative development,

and adaptation of existing technology)

and commercialization of new products,

processes, or services.

(d) Providing loans and grants to

individuals, small businesses and

cooperatives in rural areas for purposes

of generating, evaluating, developing

and commercializing new products,

processes, or services.

(e) Providing technical assistance and

advisory services to individuals, small

businesses, cooperatives, and industries

in rural areas served by the center for

purposes of developing and

commercializing new products,

processes, or services.

(f) Providing research and support to

individuals, small businesses,

cooperatives, and industries in rural

areas served by the center for purposes

of developing new agricultural

enterprises to add value to on-farm

production through processing or

marketing.

(g) Paying up to 75 percent of the

administrative costs of the applicant in

carrying out its projects.

(h) Equipment and materials

necessary to carry out other eligible

grant purposes under this section.

§ 4284.516 Ineligible grant purposes.

Grant funds may not be used to:

(a) Pay more than 75 percent of

project costs.

(b) Pay more than 75 percent of

administrative costs.

(c) Duplicate current services or

replace or substitute support previously

provided.

(d) Pay costs of preparing the

application package for funding under

this program.

(e) Pay costs incurred prior to the

effective date of the grant made under

this subpart.

(f) Pay for building construction or the

purchase of real estate or vehicles;

improving or renovation of office space;

or repair or maintenance of privatelyowned property.

(g) Fund political activities.

(h) Pay for assistance to any private

business enterprise which does not have

at least 51 percent ownership by those

who are either citizens of the United

States or reside in the United States

after being legally admitted for

permanent residence.
3784 Federal Register / Vol. 61, No. 23 / Friday, February 2, 1996 / Rules and Regulations

§§ 4284.517–4284.526 [Reserved]

§ 4284.527 Other considerations.

(a) Civil rights compliance

requirements. All grants made under

this subpart are subject to the

requirements of title VI of the Civil

Rights Act of 1964 which prohibits

discrimination on the basis of race,

color, and national origin as outlined in

subpart E of part 1901 of this title. In

addition, the grants made under this

subpart are subject to the requirements

of section 504 of the Rehabilitation Act

of 1973, as amended, which prohibits

discrimination on the basis of handicap;

the requirements of the Age

Discrimination Act of 1975 which

prohibits discrimination on the basis of

age; and title III of the Americans with

Disabilities Act, Pub. L. 101–336, which

prohibits discrimination on the basis of

disability by private entities in places of

public accommodations.

(b) Environmental requirements.

(1) General applicability. Unless

specifically modified by this section, the

requirements of subpart G of part 1940

of this title apply to this subpart. For

example, the Agency’s general and

specific environmental policies

contained in §§ 1940.303 and 1940.304

of subpart G of part 1940 of this title

must be met. Although the purpose of

the grant program established by this

subpart is to improve business,

industry, and employment in rural

areas, this purpose is to be achieved, to

the extent practicable, without

adversely affecting important

environmental resources of rural areas

such as important farmland and forest

lands, prime rangelands, wetland, and

flood plains. Prospective recipients of

grants, therefore, must consider the

potential environmental impacts of their

applications at the earliest planning

stages and develop plans and projects

that minimize the potential to adversely

impact on the environment.

(2) Technical assistance. An

application for a technical assistance

project is generally excluded from the

environmental review process by

§ 1940.333 of subpart G of part 1940 of

this title. However, as further specified

in that section, the grantee of a technical

assistance grant, in the process of

providing technical assistance, must

consider and generally document within

their plans the potential environmental

impacts of the plan and

recommendations provided to the

recipient of the technical assistance.

(3) Applications for grants to provide

financial assistance to third-party

recipients. As part of the preapplication,

the applicant must provide a complete

Form FmHA 1940–20, ‘‘Request for

Environmental Information,’’ for each

project specifically identified in its plan

to provide financial assistance to third

parties who will undertake eligible

projects with such assistance. The

Agency will review the preapplication,

supporting materials, and any required

Forms FmHA 1940–20 and initiate an

appropriate environmental review for

the preapplication. This assessment will

focus on the potential cumulative

impacts of the projects as well as any

environmental concerns or problems

that are associated with individual

projects that can be identified at this

time from the information submitted.

Because the Agency’s approval of this

type of grant application does not

constitute a commitment to the use of

grant funds for any identified thirdparty projects (see § 4284.541 of this

subpart), no public notification

requirements will apply to the

preapplication. After the grant is

approved, each third-party project to be

assisted under the grant will undergo

the applicable environmental review

and public notification requirements in

subpart G of part 1940 of this title prior

to the Agency providing its consent to

the grantee to assist the third-party

project. If the preapplication reflects

only one specific project which is

specifically identified as the third-party

recipient for financial assistance, the

Agency may perform the appropriate

environmental assessment with no

public notification. However, the

applicant must be advised that if the

recipient or project changes after the

grant is approved, the project to be

assisted under the grant will undergo

the applicable environmental review

and public notification requirements .

(c) Government wide debarment and

suspension (non-procurement) and

requirements for drug-free workplace.

Persons who are disbarred or suspended

are excluded from federal assistance and

benefits including grants under this

subpart. Grantees must certify that they

will provide a drug free workplace. See

part 3017 of this title and FmHA

Instruction 1940–M (available in any

RECD State Office) for further guidance.

(d) Restrictions on lobbying. All grants

must comply with the lobbying

restrictions set forth in part 3018 of this

title.

(e) Excess capacity or transfer of

employment.

(1) If a proposed grant is for more than

$1 million and will increase direct

employment by more than 50

employees, the applicant will be

requested to provide written support for

an Agency determination that the

proposal will not result in a project

which is calculated to, or likely to,

result in:

(i) The transfer of any employment or

business activity from one area to

another (this limitation will not prohibit

assistance for the expansion of an

existing business entity through the

establishment of a new branch, affiliate,

or subsidiary of such entity if the

expansion will not result in an increase

in the unemployment in the area of

original location or in any other area

where such entity conducts business

operations, or

(ii) An increase in the production of

goods, materials, or commodities or the

availability of services or facilities in the

area when there is not sufficient

demand for such goods, materials,

commodities, services, or facilities to

employ the efficient capacity of existing

competitive commercial or industrial

enterprises, unless such financial or

other assistance will not have an

adverse effect upon existing competitive

enterprises in the area. The applicant’s

written support will consist of a

resolution from the applicant and Form

FmHA 449–22, ‘‘Certification of NonRelocation and Market and Capacity

Information Report,’’ from each existing

and future occupant of the site. The

applicant may use Guide 2 of subpart G

of part 1942 of this title (available in any

RECD State Office) as an example in

preparing the resolution. Future

occupants of the site must be certified

by the Department of Labor (DOL) as

outlined in paragraph (e)(3) of this

section for a period of 3 years after the

initial certification by DOL.

(2) [Reserved]

(3) Grants shall not be made if the

Secretary of Labor certifies within 30

days after the matter has been submitted

by the Secretary of Agriculture that the

provisions of paragraph (e) (1) of this

section have not been met. Information

for obtaining this certification will be

submitted, in writing, by the applicant

to RECD. Grant approval may be given

and funds may be obligated, subject to

the DOL certification being received,

provided RBS has made its own

separate determinations of paragraphs

(e) (1) (i) and (ii) of this section when

applicable.

(f) Management assistance. Grant

recipients will be supervised, as

necessary, to ensure that projects are

completed in accordance with approved

plans and specifications and that funds

are expended for approved purposes.

Grants made under this subpart will be

administered under, and are subject to,

parts 3015, 3016, 3017 and 3019 of this

title, as appropriate, and established

RBS guidelines.
Federal Register / Vol. 61, No. 23 / Friday, February 2, 1996 / Rules and Regulations 3785

(g) National Historic Preservation Act

of 1966. All projects will be in

compliance with the National Historic

Preservation Act of 1966 in accordance

with subpart F of part 1901 of this title.

(h) Uniform Relocation Assistance

and Real Property Acquisition Policies

Act. All projects must comply with the

requirements set forth in part 21 of this

title.

(i) Flood plains and wetlands. All

projects must comply with Executive

Order 11988, ‘‘Flood Plain

Management,’’ and Executive Order

11990, ‘‘Protection of Wetlands.’’

(j) Flood or mudslide hazard area

precautions. If the grantee financed

project is in a flood or mudslide area,

flood or mudslide insurance must be

provided.

(k) Termination of Federal

requirements. Once the grantee has

provided assistance with project loans

in an amount equal to the grant

provided by RBS, the requirements

imposed on the grantee shall not be

applicable to any new projects thereafter

financed from the RTCDG funds. Such

new projects shall not be considered as

being derived from federal funds. The

purposes of such new projects ,

however, shall be consistent with these

regulations.

(l) Intergovernmental review. Grant

projects are subject to the provisions of

Executive Order 12372 which requires

intergovernmental consultation with

state and local officials. A loan fund

established in whole, or in part, with

grant funds will also be considered a

project for the purpose of

intergovernmental review as well as the

specific projects funded with grant

funds from the RTCDG funds. For each

project to be assisted with a grant under

this subpart and which the state has

elected to review under their

intergovernmental review process, the

state point of contact must be notified.

Notification, in the form of a project

description, can be initiated by the

grantee. Any comments from the state

must be included with the grantee’s

request to use RBS grant funds for the

specific project. Prior to RBS’s decision

on the request, compliance with

requirements of intergovernmental

consultation must be demonstrated for

each project. These requirements should

be completed in accordance with

‘‘Intergovernmental Review of

Department of Agriculture Programs and

Activities,’’ subpart V of part 3015 of

this title (see FmHA Instruction 1940–

J, available in any RECD State Office).

§ 4284.528 Application processing.

(a) Preapplications.

(1) Applicants will file an original and

one copy of Standard Form (SF)–424.1,

‘‘Application for Federal Assistance (For

Non-construction),’’ with the

appropriate RECD State Office. This

form is available in any RECD State

Office.

(2) All preapplications shall be

accompanied by:

(i) Evidence of applicant’s legal

existence and authority to perform the

proposed activities under the grant.

(ii) Latest financial information to

show the organization’s financial

capacity to carry out the proposed work.

At a minimum, the information should

include a balance sheet and an income

statement. A current audit report is

preferred where one is reasonably

obtainable.

(iii) Estimated breakdown of total

costs, including costs to be funded by

the applicant as well as other sources.

Other sources should be identified.

Certification must be provided from the

applicant that its matching share to the

project is available and will be used for

the project. The matching share must

meet the requirements of parts 3015,

3016 and 3019 of this title.

Certifications from an authorized

representative of each source of funds

must be provided indicating that funds

are available and will be used for the

proposed project.

(iv) Budget and description of the

accounting system in place or proposed.

(v) Area to be served, identifying each

government unit, i.e., town, county, etc.,

if affected by the proposed project and

evidence of support and concurrence in

the proposed project from the affected

local governmental bodies as evidenced

by a resolution or a written statement

from the chief elected local official.

(vi) Evidence that the proposed

project will serve or have the potential

to serve economically distressed areas

supported by established official

independent sources of data which are

sufficient to verify the extent to which

economically distressed conditions

exist. (Preference will be given in

selecting projects demonstrating their

ability to effectively serve rural areas

with few rural industries and

agribusinesses, high levels of

unemployment or underemployment,

high rates of outmigration of people,

businesses, and industries, or low levels

of per capita income).

(vii) A listing of businesses to be

assisted.

(viii) Applicant’s experience,

including experience of key staff

members and persons who will be

providing the proposed services and

managing the project.

(ix) The number of months duration

of the project or service and the

estimated time it will take from grant

approval to beginning of service.

(x) Method and rationale used to

select the areas or businesses that will

receive the service.

(xi) Brief description of how the work

will be performed and whether

organizational staff, consultants or

contractors will be used.

(xii) Evaluation method to be used by

the applicant to determine if objectives

of the proposed activity are being

accomplished.

(xiii) A brief plan which contains the

following provisions and describes how

the applicant will meet those

provisions:

(A) A provision that substantiates that

the applicant will effectively serve rural

areas in the United States.

(B) A provision that the primary

objective of the applicant will be to

improve the economic condition of rural

areas by promoting the development

(through technological innovation,

cooperative development, and

adaptation of existing technology) and

commercialization of:

(1) New services and products that

can be produced or provided in rural

areas;

(2) New processes that can be utilized

in the production of products in rural

areas; and

(3) New enterprises that can add value

to on-farm production through

processing or marketing.

(C) Copies of the established official

independent sources of data need to be

included in the plan along with any

documentation that more fully explains

the date produced, methodology,

source, or interpretation of the data.

(D) A description of the activities that

the applicant will carry out to

accomplish such objective.

(E) A description of the proposed

activities to be funded under this

subpart.

(F) A description of the contributions

that the applicant’s proposed activities

are likely to make to the improvement

of the economic conditions of the rural

areas served by the applicant.

(G) Provisions that the applicant, in

carrying out its activities, will seek,

where appropriate, the advice,

participation, expertise, and assistance
3786 Federal Register / Vol. 61, No. 23 / Friday, February 2, 1996 / Rules and Regulations

of representatives of business, industry,

educational institutions, the federal

government, and state and local

governments.

(H) Provisions that the applicant will

consult with any college or university

administering Extension Service

programs and cooperate with such

college or university in the coordination

of the center’s activities and programs.

(I) Provisions that the applicant will

take all practicable steps to develop

continuing sources of financial support

for the center, particularly from sources

in the private sector.

(J) Provisions for:

(1) Monitoring and evaluating its

activities; and

(2) Accounting for money received

and expended by the institution under

this subpart.

(K) Provisions that the applicant will

provide for the optimal application of

technology and cooperative

development in rural areas, especially

those areas adversely affected by

agricultural economic conditions,

through the establishment of

demonstration projects and subcenters

for:

(1) Rural technology development

where the technology can be

implemented by communities,

community colleges, businesses,

cooperatives, and other institutions; or

(2) Cooperative development where

such development can be implemented

by cooperatives to improve local

economic conditions.

(xiv) If grant funds are to be used for

the purpose of making loans or grants to

individuals, small businesses, or

cooperatives (ultimate recipients) in

rural areas for eligible purposes under

this subpart, the preapplication must

include the agreement proposed to be

used between the applicant and the

ultimate recipients which includes the

following:

(A) An assurance that the

responsibilities of the grantee, as a

recipient of grant funds under this

subpart, are passed on to the ultimate

recipient and the ultimate recipient

understands its responsibilities to

comply with the requirements set forth

in this subpart, including parts 3015,

3016, and 3019 of this title.

(B) Provisions that the ultimate

recipient will comply with debarment

and suspension requirements contained

in part 3017 of this title and will

execute Form AD–1048, ‘‘Certification

Regarding Debarment, Suspension,

Ineligibility and Voluntary Exclusion—

Lower Tier Covered Transactions.’’

(C) Provisions that the ultimate

recipient will execute Forms FmHA

400–1, ‘‘Equal Opportunity Agreement,’’

and FmHA 400–4, ‘‘Assurance

Agreement.’’

(D) Documentation that the ultimate

recipient understands its

responsibilities to the applicant.

(E) Documentation that the applicant

understands its responsibilities in

monitoring the ultimate recipient’s

activities under the grant and the

applicant’s plan for such monitoring.

(F) Documentation when other

references or sources of information are

used, along with copies if possible, to

provide dates, addresses, page numbers

and explanations of how interpretations

are made to substantiate that such

things as economically distressed

conditions do exist.

(G) Narrative addressing all items in

§ 4284.540 (a) of this subpart regarding

grant selection criteria.

(b) Applications. Upon notification

that the applicant has been selected for

funding, the following will be submitted

to the RECD by the applicant:

(1) SF 424.1, ‘‘Application for Federal

Assistance (for Non-construction)’’.

(2) Proposed scope of work, detailing

the proposed activities to be

accomplished and time frames for

completion of each activity.

(3) Proposed budget, including source

and amount of applicant contribution

and any other funding sources for the

proposed project.

(4) Other information requested by

RECD to make a grant award

determination.

(c) Applicant response. If the

applicant fails to submit the application

and related material by the date shown

on the notice, RECD may discontinue

consideration of the preapplication.

§§ 4284.529–4284.539 [Reserved]

§ 4284.540 Grant selection criteria.

Grants will be awarded under this

subpart on a competitive basis. The

priorities described in this paragraph

will be used by RBS to rate

preapplications. Preference will be

given to applicants demonstrating

factors in paragraphs (a) (4) and (5) of

this section. RBS’ review of

preapplications will include the

complete preapplication package

submitted to the RECD State Office.

Points will be distributed according to

ranking as compared with other

preapplications on hand. Recognizing

that a wide variety of individual

strategies and approaches may be used

to promote economic development and

that specific needs vary according to

geographic region and over time, the

Agency has determined to publish an

informational notice annually in the

Federal Register which will contain

those objective strategies or approaches,

consistent with this subpart with

weighted priorities, that the Agency

wishes to emphasize during that year.

The notice will establish the period of

time that the Agency will accept

preapplications for consideration of that

fiscal year’s funding.

(a) The selection criteria are as

follows:

(1) Likelihood of project being

effective in achieving one or more of the

following: technological innovation,

adaptation of existing technology,

cooperative development,

commercialization of new services and

products, and promotion of new

processes and enterprises.

(2) Innovativeness or originality of

project in addressing authorized grant

purposes.

(3) Experience, organizational skills,

and background that are needed for

applicant to successfully carry out

project.

(4) Transferability or demonstration

value of project to help rural areas

outside of project area.

(5) Ability of project to contribute to

the improvement of economic

conditions in rural areas with one or

more of the following: few rural

industries and agribusinesses; high

levels of unemployment or

underemployment; high rates of

outmigration of people, businesses,

industries; and low levels of per capita

income.

(6) The Administrator may award

discretionary points to focus on

geographical distribution, interagency

cooperation or other appropriate factors.

(b) Each preapplication for assistance

will be carefully reviewed in accordance

with the priorities established in this

section. A priority rating will be

assigned to each preapplication.

Preapplications selected for funding

will be based on the priority rating

assigned each preapplication and the

total funds available. All

preapplications submitted for funding

should contain sufficient information to

permit RBS to complete a thorough

priority rating.

§ 4284.541 Grant approval, fund

obligation, grant closing, and third-party

financial assistance.

The grantee will execute all

documents required by the Agency to

make a grant under this subpart.

§§ 4284.542–4284.556 [Reserved]

§ 4284.557 Fund disbursement.

Grants will be disbursed as follows:

(a) An SF–270, ‘‘Request for Advance

or Reimbursement,’’ will be completed

by the applicant and submitted to RECD
Federal Register / Vol. 61, No. 23 / Friday, February 2, 1996 / Rules and Regulations 3787

not more frequently than monthly. The

grantee will only be reimbursed for

allowable costs incurred.

(b) [Reserved]

(c) The grantee’s share in the cost of

the project will be disbursed in advance

of grant funds or on a pro-rata

distribution basis with grant funds

during the disbursement period. The

grantee may not provide its contribution

at the end of the grant period.

§ 4284.558 Reporting.

An SF–269, ‘‘Financial Status

Report,’’ and a project performance

activity report will be required of all

grantees on a quarterly basis. A final

project performance report will be

required with the last SF–269. The final

report may serve as the last quarterly

report. The final report must include a

final evaluation of the project. Grantees

shall constantly monitor performance to

ensure that time schedules are being

met, projected work by time periods is

being accomplished, and other

performance objectives are being

achieved. Grantees are to submit an

original of each report to RECD. The

project performance reports shall

include, but not be limited to, the

following:

(a) A comparison of actual

accomplishments to the objectives

established for that period;

(b) Reasons why established

objectives (if any) were not met;

(c) Problems, delays, or adverse

conditions which will affect attainment

of overall project objectives, prevent

meeting time schedules or objectives, or

preclude the attainment of particular

project work elements during

established time periods. This

disclosure shall be accompanied by a

statement of the action taken or planned

to resolve the situation; and

(d) Objectives and timetable

established for the next reporting

period.

§§ 4284.559–4284.570 [Reserved]

§ 4284.571 Audit requirements.

The grantee will provide an audit

report in accordance with § 1942.17 of

subpart A of part 1942 of this title. The

audit requirements only apply to the

years in which grant funds are received.

Audits must be prepared in accordance

with general accounting principles and

standards using the publication,

‘‘Standards for Audit of Governmental

Organizations, Programs, Activities and

Functions.’’

§ 4284.572 Grant servicing.

Grants will be serviced in accordance

with subpart E of part 1951 of this title.

§ 4284.573 Programmatic changes.

The grantee shall obtain prior

approval for any change to the scope or

objectives of the approved project.

Failure to obtain prior approval of

changes to the scope or budget can

result in suspension or termination of

grant funds.

§ 4284.574 Subsequent grants.

Subsequent grants will be processed

in accordance with the requirements set

forth in this subpart.

§ 4284.575 Grant suspension, termination,

and cancellation.

Grants may be canceled by RBS by

written notice. Grants may be

suspended or terminated for cause or

convenience in accordance with parts

3015, 3016, and 3019 of this title.

§§ 4284.576–4284.586 [Reserved]

§ 4284.587 Exception authority.

The Administrator may, in individual

cases, make an exception to any

requirement or provision of this subpart

which is not inconsistent with the

authorizing statute, an applicable law,

or a decision of the Comptroller

General, if the Administrator determines

that application of the requirement or

provision would adversely affect the

Government’s financial interest and

shows how the adverse impact will be

eliminated or minimized if the

exception is made.

§§ 4284.588–4284.599 [Reserved]

§ 4284.600 OMB control number.

The reporting and record keeping

requirements contained in this

regulation have been approved by the

Office of Management and Budget

(OMB) and have been assigned OMB

control number 0570–0006. Public

reporting burden for this collection of

information is estimated to vary from 30

minutes to 8 hours per response, with

an average of 1.85 hours per response,

including time for reviewing

instructions, searching existing data

sources, gathering and maintaining the

data needed, and completing and

reviewing the collection of information.

Send comments regarding this burden

estimate or any other aspect of this

collection of information, including

suggestions for reducing this burden, to

Department of Agriculture, Clearance

Officer, OIRM, AG Box 7630,

Washington, DC 20250, and to the

Office of Management and Budget,

Paperwork Reduction Project

(OMB#0570–0006), Washington, D.C.

20503.

Dated: January 3, 1996.

Jill Long Thompson,

Under Secretary, Rural Economic and

Community Development.

[FR Doc. 96–1578 Filed 2–1–96; 8:45 am]

BILLING CODE 3410–32–U

Economics Management Staff

7 CFR Part 4001

Availability of Information

AGENCY: Economics Management Staff,

USDA.

ACTION: Final rule.

SUMMARY: This document removes the

regulations of the Economics

Management Staff (EMS) regarding the

availability of information to the public

in accordance with the Freedom of

Information Act (FOIA) to reflect an

internal reorganization of the

Department of Agriculture (USDA).

EFFECTIVE DATE: February 2, 1996.

FOR FURTHER INFORMATION CONTACT:

Stasia A.M. Hutchison, FOIA

Coordinator, Information Staff,

Agriculture Research Service, USDA,

6303 Ivy Lane, Room 456, Greenbelt,

MD 20770, Telephone (301) 344–2207.

SUPPLEMENTARY INFORMATION: The FOIA

(5 U.S.C. 552(a)(1) requires Federal

agencies to publish in the Federal

Register regulations describing how the

public may obtain information from the

agency. Part 4001 of Title 7, Code of

Federal Regulations, was issued in

accordance with the regulations of the

Secretary of Agriculture at 7 CFR Part 1,

Subpart A, implementing FOIA.

Pursuant to an internal reorganization

of USDA, EMS has been abolished. This

document removes 7 CFR Part 4001.

Requests for information relating to

EMS may be obtained through the FOIA

Coordinator for ARS pursuant to 7 CFR

Part 1, Subpart A, and 7 CFR Part 510.

This rule relates to internal agency

management. Therefore, pursuant to 5

U.S.C. 553, notice of proposed

rulemaking and opportunity for

comment are not required, and this rule

may be made effective less than 30 days

after publication in the Federal

Register. Further, since this rule relates

to internal agency management, it is

exempt from the provisions of Executive

Orders 12778 and 12866. Also, this rule

will not cause a significant economic

impact or other substantial effect on

small entities. Therefore, the

requirements of the Regulatory

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

not apply.