[Federal Register Volume 62, Number 26 (Friday, February 7, 1997)]
[Notices]
[Pages 5804-5812]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2933]
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DEPARTMENT OF ENERGY
Policy and Planning Guidance for Community Transition Activities
AGENCY: Office of Worker and Community Transition, Department of
Energy.
ACTION: Notice of interim guidance and opportunity for public comment.
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SUMMARY: The Department of Energy today publishes for public comment
Interim Guidance for Community Transition Activities that has been
issued primarily for the benefit of field organizations and community
reuse organizations responsible for implementing and administering a
financial assistance program to alleviate the adverse impact of
downsizing defense nuclear facilities on affected local economies.
DATES: Written comments (7 copies) are due on or before April 8, 1997.
The interim guidance is effective March 10, 1997.
ADDRESSES: Comments must be submitted to: U.S. Department of Energy,
Office of Worker and Community Transition, WT-1, 1000 Independence
Avenue, SW, Washington, DC 20585.
FOR FURTHER INFORMATION CONTACT: Ms. Deborah Swichkow, U.S. Department
of Energy, 1000 Independence Avenue, SW, Washington, DC 20585, (202)
586-0876.
SUPPLEMENTARY INFORMATION:
I. Background
Pursuant to the Atomic Energy Act of 1954 (AEA), the Department of
Energy (DOE) owns defense nuclear facilities in various locations in
the United States that are operated by management and operating
contractors. As a result of the end of the Cold War, many of these
facilities are undergoing work force restructuring that often has a
significant impact on local economies. The Atomic Energy Act of 1954
contains broad authority to adopt and carry out policies, subject to
the availability of appropriations, for downsizing these facilities and
for alleviating the adverse impacts on affected local communities. 42
U.S.C. 2201.
Section 3161 of the National Defense Authorization Act for Fiscal
Year 1993, 42 U.S.C. 7274h, provides additional and specific authority
for DOE to provide impact assistance to communities that are adversely
affected by work force restructuring. Section 3161 further requires DOE
to coordinate the provision of such assistance with programs carried
out by the Departments of Labor, Commerce, and Defense. In devising a
local impact assistance program under section 3161, DOE has chosen to
follow the example of the Department of Defense under the Defense
Economic Adjustment, Diversification, Conversion, and Stabilization Act
of 1990 (Pub. L. 101-510) which is referenced in section 3161. Like the
Department of Defense, DOE has developed a financial assistance program
that, for the most part, consists of awards to broadly representative,
community reuse organizations (CROs) who either expend or sub-award the
funds for projects to stimulate the local economy under an approved
Community Transition Plan developed with public input. CROs may be
governmental or non-governmental organizations. If a CRO is non-
governmental and applies for financial assistance, it would have to be
organized under local law and be able to enter into, and assume the
obligations of a DOE financial assistance agreement. Although section
3161 does not require CROs, DOE use of such organizations is consistent
with the Congressional requirement to coordinate the provision of local
impact assistance, as appropriate, with the Department of Defense
programs under the Defense Economic Adjustment, Diversification,
Conversion, and Stabilization Act.
The award and administration of DOE financial assistance agreements
is subject to generally applicable regulations set forth at 10 CFR part
600. The interim guidance in this notice supplements those regulations
and provides a general decision making framework to guide the exercise
of discretion by DOE field organizations. Issuing policy in the form of
guidance allows for greater flexibility to modify policy if the facts
and circumstances warrant modification.
Various aspects of the interim guidance appeared previously in
DOE's August 24, 1994, Report on the Department of Energy's Worker and
Community Transition Program. Today's notice will clarify the roles and
responsibilities of DOE Headquarters, DOE field organizations, and
CROs. The interim guidance is subject to revision in light of public
comments received in response to this notice.
II. Description of Key Provisions
Although this notice contains policies applicable to funding
decisions in DOE Headquarters, for the most part, it contains interim
guidance to DOE field organizations on economic development activities
of CROs, approval of CRO plans to expend funds, evaluation criteria for
funding decisions, CRO performance measures and reporting.
Much of the interim guidance is self-explanatory. This document
highlights policy decisions embodied in various provisions of the
interim guidance that may be of interest to members of the public.
First, the financial assistance is targeted on communities
substantially impacted by work force restructuring plans under section
3161 for ``defense nuclear facilities'' which are listed in Appendix B
to the interim guidance.
Second, the CROs are intended to be broadly and fairly
representative of local community interests. To that end, the interim
guidance contains minimum evaluation criteria at paragraph II.C.3 for
approving CROs that all DOE field organizations should follow. The
interim guidance also provides for application of the conflict of
interest avoidance policy in 10 CFR 600.142 to all subagreements under
a financial assistance agreement including, but not limited to,
subcontracts, subgrants, loans, etc.
Third, the interim guidance provides for start-up, planning,
administrative, and project financial assistance, and indicates the
range of amounts of assistance for each type of activity. These ranges
are based on experience with pilot activities financed by local impact
assistance grants already awarded under section 3161. The evaluation
criteria provide for consideration of cost-sharing offered by an
applicant. However, cost-sharing is not a requirement because DOE does
not believe Congress intended that assistance be denied for proposals
from sources who are unable to offer cost sharing.
Fourth, consistent with DOE's experience in this program, the
interim guidance provides for program and project assistance for
sources other than CROs. These provisions are useful because some CROs
prefer to serve in an advisory role in the selection of projects
[[Page 5805]]
rather than being a direct financial assistance recipient.
Fifth, the interim guidance refers to a broad array of programs
that have been funded by past awards and thereby indicates the range of
possibilities for future awards and sub-awards. Among the types of
programs a CRO could finance are small business incubators, venture and
risk capital investments, training seminars, and revolving loans funds.
With respect to such loans, the interim guidance provides a termination
date of five years from the first award. A terminal date is desirable
to facilitate closeout under 10 CFR part 600 and to limit the period
for an assistance agreement to the amount of time necessary to mitigate
the effects of downsizing on the local economy.
Sixth, the interim guidance provides for development of performance
measures and periodic reporting under 10 CFR part 600 to assess the
effectiveness of the program (see Appendix C). While there is some
burden in complying, the burden is justified by the need to determine
that taxpayer dollars are being expended effectively to achieve the
Congressional objective of alleviating the impact of work force
restructuring on affected local communities. DOE anticipates that the
information will be useful in supporting budget requests, reporting to
Congress, and responding to inquiries, if any, from Congress' General
Accounting Organization and DOE's Inspector General.
III. Review Under Executive Order 12866
This action has been determined not to be a ``significant
regulatory action'' under Executive Order 12866, ``Regulatory Planning
and Review'' (58 FR 51735, October 4, 1993). Accordingly, it was not
subject to review by the Office of Information and Regulatory Affairs
of the Office of Management and Budget.
IV. Review Under the National Environmental Policy Act
Pursuant to the Council on Environmental Quality Regulations (40
CFR parts 1500-1508), DOE has established guidelines in 10 CFR part
1021 for its compliance with the provisions of the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321, et seq.).
Pursuant to Categorical Exclusion A6 in Appendix A of Subpart D to 10
CFR part 1021, DOE has determined that this action is categorically
excluded from the need to prepare an environmental impact statement or
environmental assessment.
V. Congressional Notification
Pursuant to the Small Business Regulatory Enforcement Fairness Act
of 1996, DOE will send a report regarding promulgation of this notice
to Congress prior to its effective date. 5 U.S.C. 801.
VI. Opportunity for Public Comment
Interested persons are invited to submit data, views, or arguments
with respect to the policies set forth in this notice. Seven (7) copies
of written comments should be submitted to the address indicated in the
ADDRESSES section of this notice. A copy of the comments received in
response to this notice will be available for public inspection in the
Department of Energy Freedom of Information Reading Room, 1E-190,
Forrestal Building, 1000 Independence Avenue SW., Washington, D.C.,
20585, between the hours of 9 a.m. and 4 p.m., Monday through Friday,
except Federal holidays. Late-filed comments will be considered to the
extent that time allows. Any person submitting information which that
person believes to be confidential and which may be exempt from public
disclosure should submit one complete copy, as well as an additional
copy from which the information claimed to be confidential has been
deleted. The Department of Energy reserves the right to determine the
confidential status of the information or data and to treat it
accordingly. The Department of Energy's generally applicable procedures
for handling information which has been submitted in a document and may
be exempt from public disclosure are set forth in 10 CFR 1004.11.
Issued in Washington, D.C., on January 17, 1997.
Robert W. DeGrasse, Jr.,
Director, Office of Worker and Community Transition.
For the reasons stated in the preamble, the Department of Energy
hereby promulgates the following interim policy, as set forth below.
Interim Guidance for Community Transition Activities
Table of Contents
I. Introduction
II. Program Scope
A. General
B. Allowable Uses of Funding
C. Eligibility and Funding Recipients
D. Types of Assistance
1. Start-up Assistance for CROs
2. Planning Assistance for CROs
3. Operational Assistance
4. Community Transition Program and Project Assistance
III. Roles and Responsibilities
A. The Secretary of Energy
B. The Director, Office of Worker and Community Transition
C. Department Field Organizations
D. Community Reuse Organizations
IV. Program Planning
A. General
B. Development of the Community Transition Plan
C. Department Field Organization and Office Reviews
D. Economic Development Administration and the Peer Review Board
E. Office of Worker and Community Transition Review and
Decisions
V. Evaluation Criteria for Review of Projects and Programs
VI. Community Transition Plans
A. Purpose
B. General
C. Community Transition Plan Components
1. Planning Analysis
2. Stakeholder Involvement
3. Prioritized Projects
VII. Performance Measures
A. Purpose
B. Guidance
C. Model
D. Areas to Address
VIII. Reviews
A. Financial Management Reviews
1. General
2. Purpose
3. Procedures
B. Program Reviews
Appendices
A. Office of Worker and Community Transition Contacts
B. Listing of Defense Nuclear Facilities
C. Progress Report Format
D. Requirement for Financial Assistance--10 CFR Part 600
INTERIM GUIDANCE FOR COMMUNITY TRANSITION ACTIVITIES
I. Introduction
The end of the Cold War has reduced the country's need for national
security activities. As a result, the Department of Energy's (the
Department) nuclear weapons production capacity is decreasing. The
Department is accomplishing this by reconfiguring, downsizing, and
closing many of its facilities. Since the Department realizes that
these actions may adversely affect the communities nearby containing a
substantial number of displaced workers, it will cooperate with the
recognized representative of each community and execute economic
development initiatives to help offset those impacts.
Initial program guidance for the community transition program was
first developed in the spring and summer of 1993, shortly after the
formation of the Department's Task Force on Worker and Community
Transition. In the intervening period, the community transition program
has evolved. This guidance reflects the changes necessary
[[Page 5806]]
for the continued progress of the program. It reflects the work and
input of stakeholders as well as the staff of the Department's Office
of Worker and Community Transition (the Office). It replaces previous
guidance on community transition activities and should be used while
comments are being collected. The Office appreciates the assistance and
effort of Department field organizations, site contractors, and
representatives of the affected communities for their assistance in
developing this guidance.
II. Program Scope
A. General
Pursuant to section 3161 of the National Defense Authorization Act
for Fiscal Year 1993, the Department's community transition program is
designed to minimize the social and economic impacts of work force
restructuring at defense nuclear facilities by providing local impact
assistance to affected communities, 42 U.S.C. 7274h(c)(6). Specific
assistance programs are designed by the communities and the local
Department facilities affected by the downsizing. Over the past 3
years, the Department has employed an extensive process of stakeholder
and public involvement to shape policies concerning worker and
community transition. This process included national stakeholder
meetings on July 12-13, 1993, on November 16-17, 1993, on February 3-4,
1994, on May 25-26, 1994, on November 15-16, 1994, on April 20-21,
1995, on September 13-15, 1995, and on March 13-15, 1996, as well as
specific input provided by nine community transition focus groups. It
also responds to the recommendations made by the General Accounting
Office in its December 1995 report to the Secretary of Energy, ``Energy
Downsizing: Criteria for Community Assistance Needed.'' Impact
assistance is provided by funding Department field organization-
approved proposals for activities of Community Reuse Organizations
(CRO), Management and Operating contractors, and others.
B. Allowable Uses of Funding
1. Funds for community transition activities may be allocated for
approved programs and projects described in community transition plans
or in field project requests prepared by Department facilities for
activities funded outside the community transition plans.
2. In reviewing proposals or applications, the broadest range of
allowable uses of funds will be considered. However, because funding is
limited, and because other appropriations may be seen as the proper or
primary source to fund certain activities, various activities may only
be approved where exceptional circumstances would justify the decision.
These include:
a. Activities that could be funded from work force restructuring
funds, such as employee retraining;
b. Landlord responsibilities normally funded by the program office
with landlord responsibilities at the site, including preparing
personal property for disposal; decontamination and decommissioning of
land and facilities; maintenance (to the extent it is not passed on to
the tenant); environmental baseline-facility condition reports;
administrative activities such as appraisals, title searches and
environmental assessments; and
c. Off-site construction, infrastructure, or other capital
improvement projects.
3. If funding for the type of projects described in Section II.B.2,
above, is being considered, the Department field organization should
make early contact with the Office to determine whether the project can
be funded by appropriations and, if so, what justification will be
necessary.
C. Eligibility and Funding Recipients
1. General
Community transition funds will generally flow through a Department
field organization to the CRO or CRO-designee. For activities funded
outside the community transition plan, funds may be made available by
direct contract between the Department and another party, such as the
on-site contractor. Financial assistance to CROs will be provided in
accordance with the requirements applicable to grants or cooperative
agreements that are in 10 CFR Part 600.
2. Definition of ``Defense Nuclear Facilities''
Pursuant to section 3161 of the National Defense Authorization Act
for Fiscal Year 1993, ``defense nuclear facilities'' for the purposes
of community transition assistance include the following types of
facilities under the control or jurisdiction of the Secretary of
Energy: Atomic energy defense facilities involving production or
utilization of special nuclear material; nuclear waste storage or
disposal facilities; testing and assembly facilities; and atomic
weapons research facilities. Department facilities that have been
determined to be defense nuclear facilities for the purposes of section
3161 are listed in Appendix B.
3. CRO Selection Criteria
The communities surrounding each site may be represented by a
single CRO. The selection criteria applied by the Department field
organizations in order to designate a CRO include, but are not limited
to, the following:
a. The organization should be formed for the purpose of addressing
the economic impacts in the affected communities as a result of the
changes in the work force at a defense nuclear facility.
b. The organization should solicit and accept participation by a
reasonably representative cross section of public and private sector
interests.
c. The organization should have a reasonable process for soliciting
public input into formulation of a Community Transition Plan and any
major amendments to such a Plan.
D. Types of Assistance
1. Start-up Assistance for CROs
a. The Department field organizations should solicit applications
for financial start-up assistance for CROs in a manner which provides
for the maximum amount of competition feasible as set forth in 10 CFR
Part 600.
b. This is one-time assistance to support the initial functions of
a CRO including: Development of a public participation plan;
development of scopes of work for impact analyses and a community
transition plan; and development of a proposal for planning assistance.
c. Funding for start-up assistance usually does not exceed $100,000
and may be spent over two fiscal years. It may be applied for at any
time in the Department budget cycle, based on knowledge by the
Department field organization that work force reductions are likely to
occur within 18 months.
d. Application for the assistance should include information about
how area local governments, economic development organizations, labor,
and other key stakeholders will be involved with creating the CRO.
Award of start-up assistance does not commit the Department to funding
future CRO activities and projects.
2. Planning Assistance for CROs
a. Planning assistance for the CROs is intended to pay for
administrative costs and planning studies associated with the
development of a Community Transition Plan.
b. Planning assistance is expected generally to be in the range of
$250,000 to $500,000.
c. A planning assistance application should include the following
elements:
[[Page 5807]]
(1) The purpose and need for community transition.
(2) A description of the CRO, including its membership, functions,
scope, and decisionmaking procedures.
(3) How the community transition plan will be developed. Where
appropriate, an analysis of socio-economic strengths, weaknesses,
opportunities and threats to the community should be included in the
scope of work for the planning effort.
(4) A program plan for utilization of the planning assistance
funds, including proposed scope of work and milestones.
(5) Required Federal grant application forms and financial
information, as specified by the Department field organization.
(6) A summary of the CRO-approved public participation plan which
includes discussion of access to meetings and records, community
involvement, fairness of opportunity for receipt of program benefits,
and avoidance of conflicts of interest.
(7) A discussion of CRO coordination with the applicable site, the
Site Specific Advisory Board, and regional planning and economic
development organizations and activities.
(8) Identification of any non-Department resources that will be
utilized in the planning phase of the program.
(9) Any proposed program or project activities that are requested
and proposed to be conducted prior to approval of the community
transition plan together with the justification required for program
and project assistance (see Sections II.D.4 and VI.C.3).
(10) Written designation of the CRO by the responsible Department
field organization.
3. Operational Assistance
a. This is assistance to fund administrative expenses of the CRO
beyond start-up and planning assistance.
b. Funding for this activity may vary based upon the CRO
organization and the degree to which the CRO is supported by other
funding sources. It is suggested that requests normally be part of the
Community Transition Plan and provide the appropriate information
requested for program and project assistance in Section II.D.4 as well
as a discussion of the steps the CRO is taking to become self-
supporting and a timetable for when the CRO will be self-supporting.
4. Community Transition Program and Project Assistance
a. The purpose of this assistance is to fund the activities deemed
most likely to reduce the community's dependence on the Department and
to mitigate the negative impacts on communities resulting from the
downsizing of defense nuclear facilities. Project assistance typically
will provide financial assistance for a comprehensive, multi-year
community transition program--generally a 3 to 5-year program. The
program may be based upon community needs and may incorporate an
analysis of the socio-economic strengths, weaknesses, opportunities,
and threats in the community transition plan. Components may include
programs conducted directly by the CRO, contract services, and
competitively-based financial assistance for economic development
activities. Types of programs that may be funded include small business
incubators, revolving loan funds, equity position, venture and risk
capital funding, marketing of excess Department property,
entrepreneurial development, technology transfer assistance, and
applicable training seminars. Inclusion of these types of programs in a
financial assistance award will generally require special provisions in
the financial assistance instrument. For example, if a CRO institutes a
revolving loan fund, the loan program should not exceed an appropriate
length of time (i.e., 5 years) and all interest and principal payments
must be returned to the Government. The financial assistance award
should contain appropriate guidance on repayments of loans and if
desired, allow for reauthorization of principal repayments to be used
for payment of other costs under the financial assistance award.
b. In the past, program and project assistance has generally been
in the range of $400,000 to $5 million per year at each site.
c. The specific format for requests for program and project
assistance will depend on the applicant. For CRO requested projects or
programs, the request should be included in the Community Transition
Plan as described in Section VI. For funds to be managed by the site
independent of the CRO, the site shall submit a letter request to
Headquarters signed by the Field Manager which contains information
similar to that requested for prioritized projects submitted by the
CRO, together with a letter from the CRO with the CRO's comments.
d. The Lobbying Disclosure Act of 1995, Public Law 104-65, Dec. 19,
1995, as amended by Public Law 104-99, Jan. 26, 1996, prohibits the
Government from awarding financial assistance to non-profit
organizations described in section 501 (c) (4) of the Internal Revenue
Code of 1986 which engage in lobbying activities as defined by the Act.
Therefore, such organizations are not eligible to receive awards of
financial assistance.
III. Roles and Responsibilities
A. The Secretary of Energy is responsible for the overall program
direction and has final approval of all community transition funding
decisions.
B. The Director, Office of Worker and Community Transition is
responsible for the overall management of the community transition
program, including the following:
1. Authorizes actions, within approved funding levels, to mitigate
impacts of reconfiguration, downsizing, and closing of Department
facilities.
2. Establishes principles, policies, and procedures to implement
the Department's community transition mission.
3. Develops the Department-wide community transition budget,
recommends the Department field organization budget levels for
community transition, and establishes the criteria to be used for
community transition program funding levels at qualifying sites.
4. Determines allowable uses of Worker and Community Transition
program funds within legislatively-mandated parameters.
5. Recommends, to the Secretary, approval or denial of requests for
community transition assistance, after consultation with other
Department elements as necessary.
6. Ensures coordination of the Community Transition Plan with the
work force restructuring plans at the site.
7. Provides liaison among other program and staff offices in
Headquarters for community transition issues.
8. Conducts program reviews of field implementation of the
community transition program.
C. Department Field Organizations are responsible for the day-to-
day administration of the community transition program. This includes
responsibility for the following:
1. Working within their communities to designate the local CRO in
order to perform the roles and responsibilties as described in Section
III.D.
2. Assuring that CROs are entities formed for the purpose of
addressing the
[[Page 5808]]
economic impacts in the affected communities as a result of the changes
in the work force at a defense nuclear facility. CROs may be local
governments, corporations or affiliations of communities and interested
stakeholders.
3. Soliciting applications for financial assistance and approving
the CRO for sites under their jurisdiction; assuring that all
interested groups are afforded the opportunity to participate in the
CRO.
4. Assuring that the provision in Appendix D concerning the
standard of conduct requirements be included in each financial
assistance award for economic development activities.
5. Assuring that the Department's community transition policies and
guidance are carried out in a spirit of cooperation and openness.
6. Integrating the requirements of the community transition program
with the requirements of other programs and activities at their sites
and assuring that necessary support activities are identified and
budgeted for.
7. Providing planning guidance to the CROs for program plans and
reviewing and approving CRO-developed community transition plans.
8. Resolving conflicting proposed uses of the Department's assets
under its jurisdiction.
9. Integrating community transition locally so that it incorporates
the work and plans of the CRO with other community transition
activities, if any, proposed by the site.
10. Consulting with American Indian Tribal Governments to assure
that tribal rights and concerns are considered prior to the Department
taking actions, making decisions or implementing programs that may
affect tribes.
11. Publishing financial assistance award announcements publicly to
allow maximum participation.
12. Assuring that there is no financial assistance or loan awarded
to any non-profit organizations described in section 501(c)(4) of the
Internal Revenue Code of 1986 which engages in lobbying activities as
defined in the Lobbying Disclosure Act of 1995, as amended.
D. Community Reuse Organizations serve to implement community
transition activities. In this capacity the CRO will:
1. Coordinate local community transition planning efforts that
address Department-related impacts.
2. Include a broad representation of the affected communities, with
opportunity for involvement given to people and groups such as
individual residents; representatives of community-based organizations;
representatives of business, educational, and financial institutions;
site workers and their labor organizations; local government officials;
established economic and community development organizations; public
interest groups; environmental groups; diversity groups; and federally-
recognized American Indian Tribes.
3. Develop and submit Community Transition Plans to the appropriate
Department field organization.
4. Receive Department funding and participate in the management of
community transition projects.
5. Coordinate CRO activities with Site Specific Advisory Boards
(SSAB) at Department facilities, particularly with regard to future
site planning.
IV. Program Planning
A. General
Future funding for all activities other than start-up and planning
assistance is expected to be requested through a Community Transition
Plan (or a letter request for Department field organization
activities). Table 1 describes the activities expected to occur at each
step. The intent of this process is to provide objectivity in the
selection of project and program activities to be supported. The
following paragraphs will describe the major activities in some detail.
B. Development of the Community Transition Plan
Department field organizations should provide guidance to the CROs
to assist them in developing a Community Transition Plan. Based upon
this guidance, the CROs should prepare a Community Transition Plan for
funding.
C. Department Field Organization and Office Reviews
Upon completion of the CRO Community Transition Plan and any
Department field organization projects, a field review of the Community
Transition Plan and an Office review of both the Community Transition
Plan and any site-sponsored projects should take place. The intent is
for the Department field organization and the Office to jointly
identify any needed revisions as soon as possible, thereby minimizing
multiple requests for changes. At the end of the review period, there
should be a plan ready for recommendation with a very high probability
of approval by the Office.
D. Economic Development Administration in the Department of Commerce
and the Peer Review Board
Reviews by the Economic Development Administration in the
Department of Commerce and the Peer Review Board should use the
criteria in Section V to compare and assess projects and programs. The
recommendations may be provided to the Office of Worker and Community
Transition for their consideration in the final determinations of
program funding.
E. Office of Worker and Community Transition Review and Decisions
The Office will review the submitted plans, the peer review
comments, and the independent review from the Economic Development
Administration of the Department of Commerce. Based upon these inputs,
and the Office staff review, final funding levels for the fiscal year
will be recommended. After Secretarial approval and appropriate
notifications, funds will be transferred to the appropriate Department
field organizations for implementation of the approved program.
Table 1.--Community Transition Funding Activities
------------------------------------------------------------------------
Step Activity
------------------------------------------------------------------------
(1)...................... CRO develops Community Transition Plan based
upon planning guidance from the Department.
If appropriate, local Department field
organization develops project descriptions
for any Department facility/activities to be
requested from the Office.
(2)...................... CRO submits Community Transition Plan to the
Department field organization.
(3a)..................... Department field organization conducts review
of Community Transition Plan and assists CRO
in refining proposal.
(3b)..................... Office concurrently assists development of
the Community Transition Plan and any
projects from the Department field
organization.
(4)...................... Department field organizations submit
community transition plan and field project
requests to the Office for review and
approval.
(5)...................... Economic Development Administration and the
Peer Review Board evaluate CRO Community
Transition Plans and field projects.
[[Page 5809]]
(6)...................... Peer Review Board Report and Economic
Development Administration Reports are
submitted to the Office.
(7)...................... The Office conducts internal review.
(8)...................... The Office makes funding award decision.
(9)...................... The Office authorizes release of funds into
Department field organization financial
plan.
(10)..................... Community transition funds are available to
recipients.
------------------------------------------------------------------------
V. Evaluation Criteria for Review of Projects and Programs
The following factors will be used to evaluate all project and
program funding requests in Community Transition Plans:
A. Projected job creation (communities should seek to create at
least one job for each $10,000 to $25,000 in Federal funding received,
leveraging those funds to attract other private and public funds).
B. Projected job creation for workers affected by downsizing.
C. Viability of project to induce investment/growth in production
of goods and services for which the community may have or be able to
develop a comparative economic advantage.
D. Ability to reduce the region's dependence on the Department.
E. Consistency with the identified strengths of the region.
F. Past performance of the applicant, if any.
G. Amount of local participation in the project, either financially
or in terms of coordinated services.
H. Demonstrated cooperation with regional or state economic
development efforts.
I. Ability of project to become self-sufficient.
J. Linkage of project to site cost reductions through transfer of
site equipment, facilities or technologies.
K. Other unique factors such as innovative features of the proposed
project, such as matching funds.
VI. Community Transition Plans
A. Purpose
1. The Community Transition Plan describes the overall strategies
and, within each strategy, the actions proposed by the communities to
respond to the changing missions at a Department facility. Where
appropriate, it also describes the proposed programs, projects and
estimated funding requested from the Department. It is the overall
framework and the rationale for the local response to the downsizing at
the Department facility.
2. The Plan serves an integrating function, building upon other
existing community and facility planning efforts in the region. It
should describe those efforts, the lessons learned from them, and
should focus on the additional, supplemental efforts the community
believes are necessary and useful to respond to the changes at the
Department facility. It should not duplicate other planning efforts,
but would afford the community an opportunity to highlight innovations
to address the impacts of downsizing.
B. General
1. Initial planning grants from the Department should be used by
CROs to prepare and submit to the Office a Plan for anticipated
community transition activities. This Plan should be submitted through
and be approved by the appropriate Department field organization.
2. While each community faces unique transition challenges and will
develop a plan specific to its situation, there are common topical
areas that should be addressed in all Plans. The following paragraphs
offer guidance on what the Office considers critical components of a
Community Transition Plan. These are elements to be addressed in the
Plan, not necessarily an outline of the developed Plans. The continued
allocation of the Department's limited financial and other available
resources will be contingent upon the completion of the Plan and its
contents. Both short-term and long-term objectives may be included.
C. Community Transition Plan Components
1. Planning Analysis
a. An analysis should be performed to establish the primary and
secondary community impacts likely as a result of planned site
restructuring. From a baseline established from local information
sources, project the likely impacts on such primary factors as net job
loss, changes in unemployment, loss of wages and disposable income, and
business closings. Secondary impacts could include such factors as
decreases in taxes and other user fees, loss of business and sales
volumes, decreases in property values and other factors. Impacts on
education, cultural activities, recreation, the environment and other
socio-economic factors should also be considered. From an analysis of
these impacts, develop a set of issues.
b. A critical part of the Community Transition Plan is the analysis
of strengths, weaknesses, opportunities and threats (SWOT analysis) to
the community. This can be performed with planning assistance funds, or
existing studies can be used. With the SWOT analysis as a framework,
set out an overall vision for the community and identify the programs
and projects to be established, including the degree to which the
programs and projects address the issues.
2. Stakeholder Involvement
Stakeholders should have the opportunity to participate in the
planning process. Identify stakeholders providing input to the Plan,
describe method of input, and common areas of interest. A communication
strategy should also be a component of insuring proper representation
and community input into the planning and implementation process. This
should also include CRO coordination with the applicable site and other
groups, such as: any Site Specific Advisory Boards; regional planning
and economic development organizations and activities; labor; the
business community; academic communities; and American Indian Tribal
Governments.
3. Prioritized Projects
Develop a list of prioritized projects or programs based on the
above considerations with an overall project budget and schedule for
completion of each. The following items are suggested topics for
discussion for each project:
a. The primary goal of transition initiatives is the creation of
jobs through the retention, expansion, and creation of businesses, and
through other measures, to offset the economic impacts of the
Department's work force restructuring actions. The Plan should identify
likely benefits to workers displaced by the Department and the area's
work force in general.
[[Page 5810]]
b. Amount, type, timing, and continuity of funding available from
non-Department sources such as the U.S. Department of Labor's Job
Training Partnership Act and the U.S. Department of Commerce's Economic
Development Administration. Also include any state and local funding,
and any private development sources, such as venture capital, financial
institutions, revenue bonds, seed capital, revolving loans and other
private funds. The use of these funds should be set out relative to any
Department funding provided.
c. Coordination with other community programs.
d. Performance measures for each project.
e. A proposed scope of work, timeline, and reporting schedule
(generally, quarterly) of proposed activities, accomplishments, and
expenditures.
f. Required Federal grant application forms and financial
information, as specified by the Department field organization.
g. Any anticipated preferences or non-traditional competition
elements of the program, and their relationship to program objectives.
h. A discussion of CRO coordination with units of Federal, state,
local, or tribal governments. Demonstration that proposed projects will
augment and not duplicate current community efforts.
I. Plans, if any, to support CRO operating and program costs
following completion of the project grant (e.g., self-sustaining
mechanisms, local or non-Department support, revenue/income generation,
future Department funding, or transfer of programs to other
organizations).
j. Identification of any time-sensitive opportunities, or other
pertinent background information.
k. If multi-year funding is anticipated, show how this year's
increment related to prior-year activities and what will happen if
future year funding is reduced or eliminated.
VII. Performance Measures
A. Purpose
1. Performance measures represent a mechanism that the CROs and the
Department can use to monitor performance. They do this by providing a
means for: (1) determining how well a project is being executed; (2)
indicating when corrective actions are required; and (3) documenting
success.
2. Performance measures establish a mechanism for program
assessment. It is suggested that the CROs use the results of their
performance measures for self assessment purposes. The Department field
organization and Headquarters staff should use the same results for
purposes of external oversight.
3. Performance measures should be used to allow the Department to
provide objective and defensible indications to the Congress and to the
American people that the Department's economic development program is
effective.
4. Finally, since the intent of performance measures is to evaluate
program execution, performance measures need not be developed for
start-up or planning assistance.
B. Guidance
1. The CROs are responsible for developing performance measures
based on this guidance and on their unique circumstances, goals, and
objectives. The final measures should be negotiated with the
appropriate Department field organization and, ultimately, approved by
the Office.
2. Many CROs may have similar objectives. The Office encourages,
but does not require, developing consistent performance measures in
such cases and also encourages sharing best-practices and lessons-
learned to the maximum extent possible.
3. Performance measures should not focus on minor aspects of
performance, rather, they should comprehensively measure critical
aspects of performance for any enterprise.
4. Performance measures and objectives should not be so difficult
that they cannot be achieved through a reasonable amount of effort, nor
shall they be excessively easy to achieve.
5. Performance measures shall be periodically assessed by the CROs
and the results reported to the Department field organization and the
Office.
6. When a performance measure is no longer providing useful
information, it should be eliminated or replaced.
7. Performance measures shall be measurable in a numerical fashion
to the maximum extent possible. Where numeric measurement is not
possible, performance measures shall be evaluated against a clearly
defined set of criteria.
8. In cases where grant requests are small (i.e., less than
$300,000), a less stringent requirement for performance measures may
apply.
9. On a quarterly basis, the CROs should submit a progress report
to Department Headquarters via the appropriate Department field
organization. The quarterly progress reports should contain, among
other things, updated information on the CRO's performance measures.
The progress report format may be found in Appendix C.
C. Model
Per the above guidance, the individual CROs should be tasked with
developing performance measures for their particular enterprise. The
Office recognizes that:
1. The various CROs will have different missions, objectives, and
priorities; the CROs are best equipped to determine what constitutes a
good measure of performance for their particular situation.
2. The CRO missions are dynamic, and, therefore, their objectives
may change from time-to-time. As a consequence, what constitutes a good
performance measure today may not be appropriate tomorrow; therefore,
the CROs should be allowed the flexibility to alter their performance
measures, with the Office's concurrence, to more closely align with
changing missions and objectives.
3. The CROs should have latitude in regard to the substance and
nature of their performance measures. However, it is suggested that
they follow generally recognized principles for developing and
measuring performance. By employing a performance measurement system,
the Department will be able to assess and describe the effectiveness of
the program. This will assist in determining appropriate levels for the
program in future years and will help each site and each CRO assess the
effectiveness of its program.
D. Areas to Address
The following paragraphs delineate the types of issues that should
be considered when developing a performance measurement program.
1. Job creation: The act of creating jobs that did not previously
exist in a defined marketplace, especially jobs that will assist
displaced workers from the affected site. Communities should seek to
create at least one job for each $10,000 to $25,000 in Federal funding
received, leveraging those funds to attract other private and public
funds.
2. Job retention: Holding in place the existing work force and
providing substitute employment for at-risk or displaced workers within
a defined geographic area.
3. Regional development: Enhancement of the attributes of a
geographic area to promote the commonly-held and understood assets of
that region.
4. Business start-ups: New commercial or industrial enterprises,
legal entities, partnerships, etc.
[[Page 5811]]
5. Expansion of existing businesses: The ability to hire more
workers and to increase the demand for goods and services ultimately
stimulating the economy (e.g., increase revenues, broaden the tax
base).
6. Economic diversification: Any activity within a defined
geographical area that makes the area less dependent upon Department
business.
7. Training: Providing skills and classes necessary to prepare
workers to maintain the skills required to continue in one's current
position or alternative job.
8. Commercialization: The act of making assets (e.g., technologies,
use of facilities or equipment) under Department control available for
third party use or for use by the M&O contractor for non-Department
business activities.
9. Facility reuse: The reuse of Department facility real estate and
fixtures including buildings, land, and facilities that are not needed
for the Department's traditional missions.
10. Leveraging: The ability of the CRO to commit non-Department
resources as a match for Department funds requested. Leveraging should
be indicated as a ratio of non-Department to Department resources,
e.g., if a CRO requests a $100,000 grant and commits $50,000 in non-
Department matching funds, the leveraging factor would be 1:2.
11. Matching funds: Defined as non-Department resources committed
to CRO programs. Matching funds may include the following:
a. Cash--funds committed to projects to pay for various program
activities, including personnel, equipment, materials, supplies,
facilities, etc.
b. In-kind--contributions other than cash committed to program
activities. In-kind contributions may include personal time, donated
facility space, equipment loans or value of discounted services.
12. Personal property transfer: The transfer of Department-
controlled equipment, supplies, and intellectual property to another
entity--can involve transfer of title, licensing or leasing of the
property.
13. Community relations: Broad-based solicitation and encouragement
of public awareness and participation in decision-making processes.
14. Administration, Outreach and Finance: Business systems and
processes incorporated to manage the development and implementation of
the community transition program, including community involvement and
fiscal responsibilities (e.g., contractual compliance, auditing, the
raising and expending of monies, granting credit, and making
investments).
VIII. Reviews
A. Financial Management Reviews
1. Generally, the Department field organizations should apply the
requirements of Departmental financial assistance policies and
procedures which are set forth in 10 CFR Part 600. Those sections of
the CFR provide guidance in the various aspects of financial assistance
management including general administrative requirements, reports and
records, making changes in the grant scope, and auditing requirements.
2. Purpose
Careful monitoring of program implementation is necessary due to
the level of public involvement in community transition activities. The
Office is responsible for establishing appropriate standards to assure
proper accounting for the use of community transition assistance funds.
3. Procedures
a. Conduct financial management reviews of Department field
organization community transition programs on an as-needed basis.
Specific areas of review are: Financial reporting; accounting records;
internal control; budget control; allowable cost; source documentation;
cash management; and project accounting.
b. The Office should track completed grants and close-out reports
that address audit findings.
B. Program Reviews
The Office plans to conduct programmatic reviews of Department
field organizations to assess accomplishments, determine progress and
identify issues needing study. These reviews should be performed on a
frequency and at locations as determined by the Office Director, and
should be coordinated with the management of the Department field
organization being reviewed. The Office should not review the CROs,
except when accompanying a Department field organization during its
review. It is the general goal of the Office to review each Department
field organization that is implementing a community transition program
at least once every year.
Appendix A
Office of Worker and Community Transition Contacts
Director:
Bob DeGrasse....................................... 202-586-7550, FAX 586-8403.
Deputy Director:
Terry Freese....................................... 202-586-5907, FAX 586-8403.
Program Communications:
Pat Parizzi........................................ 202-586-7550, FAX 586-8403.
Work Force Planning:
Lyle Brown......................................... 202-586-0431, FAX 586-1540.
Laurel Smith....................................... 202-586-4091, FAX 586-1540.
Debby Swichkow..................................... 202-586-0876, FAX 586-8403.
Work Force Restructuring:
Terry Freese....................................... 202-586-5907, FAX 586-8403.
Labor Relations:
Lyle Brown......................................... 202-586-0431, FAX 586-1540.
Deborah Sullivan................................... 202-586-0452, FAX 586-1540.
Community Transition:
Bob Baney.......................................... 202-586-3751, FAX 586-1540.
Mike Mescher....................................... 202-586-3924, FAX 586-1540.
Laurel Smith....................................... 202-586-4091, FAX 586-1540.
Debby Swichkow..................................... 202-586-0876, FAX 586-8403.
Public Participation:
Laurel Smith....................................... 202-586-4091, FAX 586-1540.
Natasha Wieschenberg............................... 202-586-5830, FAX 586-1540.
[[Page 5812]]
Community Transportation Field Contacts
Paul Dickman, Albuquerque Operations Office............ 505-845-4313, FAX 845-5508.
Gary Stegner, Fernald Environmental Management Site.... 513-648-3153, FAX 648-3073.
Ken Osborne, Idaho National Engineering Laboratory..... 208-526-0805, FAX 526-8789.
Dave Porco, Miamisburg Area Office..................... 513-865-3649, FAX 865-4489.
Darwin Morgan, Nevada Operations Office................ 702-295-3521, FAX 295-0154.
Bob Hamilton, Oak Ridge Operations Office.............. 423-576-7723, FAX 576-6363.
Gene Pressoir, Pinellas Area Office.................... 813-541-8062, FAX 541-8370.
Mike Dabbert, Portsmouth Gaseous Diffusion Plant....... 614-897-5525, FAX 897-2982.
Mark Coronado, Richland Operations Office.............. 509-376-3502, FAX 376-8142.
Mike Bolles, Rocky Flats Office........................ 303-966-2473, FAX 966-6633.
Sam Glenn, Savannah River Operations Office............ 803-725-2425, FAX 725-1910.
Appendix B.--Listing of Defense Nuclear Facilities
The list below reflects facilities receiving funding for Atomic
Energy Defense activities of the Department of Energy, with the
exception of activities under Naval Reactor Propulsion. It is
recognized that these facilities have varying degrees of defense
activities, ranging from a total defense dedication to a very small
portion of their overall activity. This may cause certain
difficulties in implementing the intent of the section 3161
legislation. Regardless, this listing will be used by the Office for
possible application of funding received for defense worker
assistance and community transition purposes.
Kansas City Plant
Pinellas Plant
Mound Facility
Fernald Environmental Management Project Site
Pantex Plant
Rocky Flats Environmental Technology Site, including the Oxnard
Facility
Savannah River Site
Los Alamos National Laboratory
Sandia National Laboratory
Argonne National Laboratory
Brookhaven National Laboratory
Lawrence Livermore National Laboratory
Oak Ridge National Laboratory
Nevada Test Site
Y-12 Plant
K-25 Plant
Hanford Site
Idaho National Engineering Laboratory
Waste Isolation Pilot Project
Portsmouth Gaseous Diffusion Plant
Paducah Gaseous Diffusion Plant
Appendix C.--Quarterly Progress Report: (Date)
Project Title: (a name selected by the site for the specific
activity or activities--e.g.; incubator loan fund; entrepreneurial
training. The site and the CRO will determine the best method for
project definition, consistent with the way funds were requested and
approved.
DOE Site Contact: (name of DOE Field or Area Office point of
contact)
CRO Contact: (name of CRO point of contact [if different from the
project manager])
Project Manager: (name, address, and phone number of the primary
applicant of the project under review)
Project start date: (date funding recipient is authorized to proceed
by the field office)
Expected completion date: (Date funding recipient is expected to
complete the project)
Description of project: (a short narrative description of the
project.)
Funding History: (a record of the project funding. Committed means
funds released to a field organization by the Office of Worker and
Community Transition [the Office]; obligated means monies released
to the CRO or other recipient by the field organization; and costed
means expended by the CRO or other recipient.)
------------------------------------------------------------------------
Status of the office funds Cumulative amount
------------------------------------------------------------------------
Committed by the Office...................
Obligated by the field organization.......
Costed by the recipient...................
Unobligated by the field organization.....
------------------------------------------------------------------------
For the Office funding, identify the cumulative amount committed by
the Office; the cumulative amount obligated by the field office; the
amount unobligated; and the amount costed by the recipient. For
leveraged funds, identify each source and the cumulative amount from
that source.
------------------------------------------------------------------------
Funding source Cash In-kind
------------------------------------------------------------------------
------------------------------------------------------------------------
Accomplishments: (project outcomes to-date: report on
performance measures identified and jointly agreed to by DOE field
and the CRO)
Performance Measures
----------------------------------------------------------------------------------------------------------------
Scheduled Actual Progress to-date (or to the end
Category date Projected outcome date of the project)
----------------------------------------------------------------------------------------------------------------
(e.g., create new businesses).... 9/94 Start-up 2 12/94 3 new businesses.
businesses.
(e.g., create new jobs).......... 9/94 20 jobs............. 10/94 30 jobs.
----------------------------------------------------------------------------------------------------------------
Date (Joint signature) DOE Field Office
Date (Joint signature) CRO
Appendix D.--Requirement for Financial Assistance--10 CFR Part 600
Section 600.142 of 10 CFR Part 600 contains a requirement for
recipients of financial assistance to maintain written standards of
conduct governing the performance of employees engaged in the award
and administration of contracts. Since organizations involved in
economic development activities may engage in activities other than
contracting, in which potential conflicts of interest may arise
(e.g., providing loans to local businesses), the following provision
should be included in all financial assistance awards to such
entities:
The requirements of 10 CFR 600.142 should be applied to the
activities of employees, agents and consultants of financial
assistance recipients whenever these activities involve decisions
about the award of DOE funds, regardless of the type of agreement or
arrangement to be supported by DOE funds (e.g., lease, loan,
contract, etc.).
[FR Doc. 97-2933 Filed 2-6-97; 8:45 am]
BILLING CODE 6450-01-P
