[Federal Register Volume 61, Number 251 (Monday, December 30, 1996)]
[Rules and Regulations]
[Pages 68666-68668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33033]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Office of the Secretary
43 CFR Part 12
RIN 1090-AA59
Administrative and Audit Requirements and Cost Principles for
Assistance Programs
AGENCY: Office of the Secretary, Interior.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule is in response to the ``Omnibus Consolidated
Appropriations Act of 1997,'' and the ``Energy and Water Development
Appropriations Act, 1997.'' Section 307(a) of Public Law 104-208
required
[[Page 68667]]
that no funds made available in the Act may be expended by an entity
unless the entity agrees that in expending the funds they will comply
with sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-
10c; popularly known as the ``Buy American Act''). As it did for awards
governed by this provision made since FY 1993, the Department continues
to interpret this requirement to apply to assistance programs. Section
307(b)(1) of Public Law 104-208 again states that it is the sense of
Congress that all equipment and products purchased with funds made
available in the Act should be American-made. Likewise, the Department
is again taking the position that Congressional intent is different for
awards made by the Bureau of Reclamation. As such, only the provisions
in the regulation addressing the sense of Congress (section 12.700 and
the notice requirements (sections 12.710) will apply to awards made by
the Bureau of Reclamation using appropriated funds for FY 1997.)
In addition, a minor correction is being made to a cite in the
definition of ``domestic and product'' in Section 12.705.
EFFECTIVE DATE: December 30, 1996.
FOR FURTHER INFORMATION CONTACT:
Debra E. Sonderman, (Director, Procurement and Property Management
Systems), (202) 208-3336.
SUPPLEMENTARY INFORMATION: On September 30, 1996, the Omnibus
Consolidated Appropriations Act of 1997 (``the Act'') was signed into
law Section 307(a) of the Act was entitled ``Compliance with Buy
American Act.'' The section applied to funds appropriated or
transferred pursuant to the Act for the purchase of any equipment or
product that may be authorized to be purchased with financial
assistance. Section 307(b)(1) expressed the ``sense of the Congress''
that entities receiving the assistance purchase only American-made
equipment and products.
Section 307(b)(2) required that in providing the financial
assistance under the Act, the Secretary shall provide to each recipient
of the assistance a notice describing the requirement. As in prior
years, no other specific guidance was given regarding the
implementation of this requirement.
The Department is revising Subpart E of 43 CFR Part 12, to
implement these requirements for awards made using appropriated funds
for FY 1997. No specific guidance was provided by Congress, so the
Department decided to continue its implementation of these requirements
based upon the final rule published in the Federal Register on July 19,
1994 (59 FR 36713).
Because of the applicability of different appropriation acts and
the fact that the requirements are different, the notice in
subparagraph (b) of section 12.710 has been changed to account for the
reference to language in Public Law 104-208. A separate notice included
in subparagraph (c) of section 12.710 has been amended to account for
the reference to language in Public Law 104-206 and its use only for
awards made by the Bureau of Reclamation.
Finding of Good Cause for Waiver of Proposed Rulemaking and for Making
Rule Effective upon Publication
In accordance with the Administrative Procedure Act (5 U.S.C. 553),
it is usually the practice of the Department to offer interested
parties the opportunity to comment on proposed regulations. However,
the Department waives notice and comment on these regulations under
section 553(b)(B) of the Administrative Procedure Act (5 U.S.C.
553(b)(B)). This section provides that notice and comment for
rulemaking is not required when the agency for good cause finds that
notice and public procedures are impracticable, unnecessary, or
contrary to the public interest.
The Department believes public comment on the revision of this
regulation is unnecessary because the substance of these provisions is
based on statutory requirements governing the award of assistance with
appropriated funds for FY 1997, that the Department is unable to
change.
The Administrative Procedure Act provides that rules be published
at least 30 days prior to their effective date, except as otherwise
provided by an agency on a finding of good cause (5 U.S.C. 553(d)(3)).
In this case, because this requirement is a statutory condition of
expenditure of appropriated funds in this fiscal year, the Department
has determined that the rule must be effective upon publication.
Executive Order 12866, Paperwork Reduction Act, and Regulatory
Flexibility Act
This rule was not subject to Office Management and Budget review
under Executive Order 12866.
The Department has determined that this rule will not have a
significant economic impact on small entities since it is anticipated
that no additional costs will be imposed on a substantial number of
small entities as a result of the rule. This rule does not contain a
collection of information subject to the Paperwork Reduction Act of
1980 (44 U.S.C. 3501 et seq.).
Environmental Effects
The Department has determined that this rule does not constitute a
major Federal action having a significant impact on the human
environment under the National Environmental Policy Act of 1969.
List of Subjects in 43 CFR Part 12
Administrative practice and procedure, Contract programs,
Cooperative agreements, Grant programs, Grants administration,
Reporting and recordkeeping requirements.
Dated: December 4, 1996.
Bonnie R. Cohen,
Assistant Secretary--Policy, Management and Budget.
Title 43 of the Code of Federal Regulations, part 12 is amended as
follows:
PART 12--ADMINISTRATIVE AND AUDIT REQUIREMENTS AND COST PRINCIPLES
FOR ASSISTANCE PROGRAMS
1. The authority citation for part 12 is revised to read as
follows:
Authority: 5 U.S.C. 301; 31 U.S.C. 6101 note, 7501, 41 U.S.C.
252a, 701 et seq; sec. 501, Pub. L. 104-206, 110 Stat. 2984; sec.
307, Pub. L. 104-208, 110 Stat. 3009; E.O. 12549, 3 CFR, 1986 Comp.,
p. 189; E.O. 12674, 3 CFR, 1989 Comp., 215; E.O. 12689, 3 CFR, 1989
Comp., p. 235; E.O. 12731, 3 CFR, 1990 Comp., p. 306; OMB Circular
A-102; OMB Circular A-110; OMB Circular A-128; and OMB Circular A-
133.
2. Section 12.700 is revised to read as follows:
Sec. 12.700 Scope.
This subpart implements section 307 of the Omnibus Consolidated
Appropriations Act of 1997 (Public Law 104-208, 110 Stat. 3009) and
section 501 of the Energy and Water Development Appropriations Act,
1997 (Public Law 104-206, 110 Stat. 2984). For awards made under the
authority of section 307(a) of Public Law 104-208, this subpart
requires that no funds made available in the Act may be expended by an
entity unless the entity agrees that in expending the funds the entity
will comply with sections 2 through 4 of the Act of March 3, 1933 (41
U.S.C. 10a-10c; popularly known as the ``Buy American Act''). It
applies to procurement contracts under grants and cooperative
agreements which provide for the purchase of equipment and products.
Section 501 of Public Law 104-206, 110 Stat. 2984, only applies to
[[Page 68668]]
awards made by the Bureau of Reclamation. In addition, for these
awards, there is only a requirement that in providing financial
assistance to, or entering into any contract with, any entity using
funds made available in this Act, the Secretary, to the greatest extent
practicable, will provide to the entity a notice describing a statement
within the Act made by Congress. This statement concerns the sense of
the Congress that to the greatest extent practicable, all equipment and
products purchased with funds made available in the Act, should be
American-made. Therefore, for Fiscal Year 1997 awards, only the
requirements in Section 12.700 and 12.710 will apply to awards made by
the Bureau of Reclamation.
3. Section 12.705 is amended by revising the fourth sentence
included in the definition of domestic end product to read as follows:
Sec. 12.705 Definitions.
* * * * *
Domestic end product * * *
Components of foreign origin of the same class or kind for which
determinations have been made in accordance with Section 12.710(d) (3)
and (4) are treated as domestic. * * *
* * * * *
4. Paragraphs (a), (b), and (c) of Section 12.710 are revised to
read as follows:
Sec. 12.710 Policy.
(a) In the case of any equipment or product that may be authorized
to be purchased with financial assistance provided using funds made
available under Public Law 104-208, it is the sense of Congress that
entities receiving the assistance should, in expending the assistance,
purchase only American-made equipment and products.
(b) In awarding financial assistance under Public Law 104-208, 110
Stat. 3009, bureaus and offices excluding the Bureau of Reclamation
will provide to each recipient of the assistance the following notice:
Notice: Pursuant to Sec. 307 of the Omnibus Consolidated
Appropriations Act of 1997, Public Law 104-208, 110 Stat. 3009,
please be advised of the following:
In the case of any equipment or product that may be authorized
to be purchased with financial assistance provided using funds made
available in this Act, it is the sense of the Congress that entities
receiving the assistance should, in expending the assistance,
purchase only American-made equipment and products.
(c) In awarding financial assistance using funds made available
under Public Law 104-206, to the greatest extent practicable, the
Bureau of Reclamation will provide to each recipient of the assistance
the following notice:
Notice: Pursuant to Sec. 501 of the Energy and Water Development
Appropriations Act, 1997, Public Law 104-206, 110 Stat. 2984, please
be advised of the following:
It is the sense of the Congress, that to the greatest extent
practicable, all equipment and products purchased with funds made
available in this Act should be American-made.
* * * * *
[FR Doc. 96-33033 Filed 12-27-96; 8:45 am]
BILLING CODE 4310-RF-M
