[Federal Register Volume 59, Number 155 (Friday, August 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19686]
[[Page Unknown]]
[Federal Register: August 12, 1994]
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DEPARTMENT OF AGRICULTURE
Farmers Home Administration
7 CFR Parts 1901, 1940, 1951, and 2003
Rural Development Administration
7 CFR Part 4284
RIN 0570-AA02
Rural Technology Development Grants
AGENCIES: Rural Development Administration and Farmers Home
Administration, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: The Rural Development Administration (RDA) promulgates a new
regulation for Community Facility grants. The Farmers Home
Administration (FmHA) amends its regulations that are utilized by RDA
in administering Community Facility grants. This action complies with
legislation which authorizes grants for establishing and operating
centers for rural technology or cooperative development. The intended
effect of this action is to publish regulations and application
processing procedures to implement this new grant program to award
fiscal year (FY) 1994 grants before the end of the FY.
DATES: These interim regulations are effective August 12, 1994.
Comments should be in writing and received on or before October 11,
1994.
ADDRESSES: Submit written comments in duplicate to the Office of the
Chief, Regulations Analysis and Control Branch, FmHA, USDA, Room 6348,
South Agriculture Building, 14th and Independence Avenue SW.,
Washington, DC 20250-0700. All written comments made pursuant to this
notice will be available for public inspection during regular working
hours at the above address.
FOR FURTHER INFORMATION CONTACT: Jennifer Barton, Loan Specialist,
Community Facilities Division, Room 6304, South Agriculture Building,
14th and Independence Avenue SW., Washington, DC 20250-0700, Telephone:
(202) 720-1504.
SUPPLEMENTARY INFORMATION:
Cross References of Regulations
The Rural Development Administration is a result of a
reorganization of programs administered by Farmers Home Administration
(FmHA) as required by section 364 of the Consolidated Farm and Rural
Development Act (CONACT), as amended, (7 U.S.C. 2006f) and an order of
the Secretary of Agriculture. Dual-references or cross-references to
FmHA regulations are provided for by section 364.
Classification
This interim rule has been determined to be significant/
economically significant and was reviewed by the Office of Management
and Budget under Executive Order 12866.
Environmental Impact Statement
This document has been reviewed in accordance with 7 CFR part 1940,
subpart G, ``Environmental Program.'' RDA 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 document has been reviewed in light of Executive Order (E.O.)
12778 and meets the applicable standards provided in sections 2(a) and
2(b)(2) of that E.O. Provisions within this part which are inconsistent
with State law are controlling. All administrative remedies pursuant to
7 C.F.R. part 1900, subpart B, must be exhausted prior to filing suit.
Intergovernmental Review
This program is listed in the Catalog of Federal Domestic
Assistance under number 10.771, Rural Technology Development Grants,
and are subject to the provisions of Executive Order 12372 which
requires intergovernmental consultation with State and local officials.
RDA conducts intergovernmental consultation in the manner delineated in
FmHA Instruction 1940-J.
Paperwork Reduction Act
The information collection or recordkeeping requirements contained
in these regulations have been 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, 0575-0060, and 0570-0006 in
accordance with the Paperwork Reduction Act of 1980. This interim final
rule does not revise or impose any new information collection or
recordkeeping requirement from those approved by OMB.
Justification for Interim Final Rule
It is the policy of the Department that rules relating to public
property, loans, grants, benefits, or contracts shall be published for
public comment not withstanding the exemption of 5 U.S.C. 553 with
respect to such rules. However, the Department is making this action
effective immediately upon publication in the Federal Register without
securing prior public comment.
The purpose of this rule is to implement section 2347 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (Pub. L. 101-624)
which amends Sec. 310B (f) through (h) (7U.S.C. 1932) of the CONACT.
This statutory amendment created a new program for Rural Technology
Grants. In FY 1993, $1 million was appropriated to this program as part
of the Extension Service (ES) budget. Three proposals were selected for
funding under ES administration. The program was transferred to RDA
under a Memorandum of Understanding. ES received another appropriation
in their budget in FY 1994 for $1.5 million. This amount has been
transferred to RDA through an apportionment of funds. RDA is
responsible for implementing this program for FY 1994.
It has been determined that failure to implement the program will
result in a substantial negative impact in the rural areas if grants
from this program are not awarded from the appropriation for FY 1994.
Because the appropriated funds for this program are not available past
the end of FY 1994, it is essential that this authorization be
implemented this year. RDA anticipates receiving a wide range of grant
proposals as compared to the funding availability and expects the level
of competition to be high. These regulations have a sunset provision of
July 13, 1995.
The economies of many rural areas have experienced significant
stress as a result of relying primarily on the agricultural or natural
resource-based industries to provide employment. As the result of
improvements in efficiency and productivity or the decline in
importance of those industries in certain areas, employment
opportunities and the general economy of those areas have declined
significantly. Therefore, immediate implementation of this program will
provide $1.5 million for these needy areas.
Since this is a new program, there is no historical data available
to quantify benefits. However, the benefit to be derived from the
program is the opportunity to create new investment and employment
opportunities in rural areas based on new uses for agricultural or
natural resources, thereby assisting in the diversification of rural
economies, creating new employment opportunities, and simultaneously
developing new markets for agricultural products and natural resources.
The Interim Final Rule describes the procedures and practices for
applying for and obtaining this grant assistance. The Agency, however,
is providing for public comment in order for members of the public who
wish to suggest alternative rule provisions or courses of action in
implementing this program to have an opportunity to give RDA the
benefit of their views. In the event that public comments are received,
the Department will consider them, as appropriate, before further
publishing of this rule.
Program Description
Grants awarded under the Rural Technology Development Grant (RTDG)
program will be to nonprofit institutions and public bodies to
establish and operate centers for rural technology or cooperative
development. The term ``nonprofit institution'' is defined by the
CONACT, Sec. 310B(f)(4)(A) to mean ``* * * any organization or
institution, 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.'' While this
definition does not include public bodies, the reference to public
bodies in Sec. 310B(f) of the CONACT does indicate congressional intent
to make rural technology development grants available to public bodies.
The term ``public body'' has been defined to mean any State, county,
city, township, incorporated towns and villages, boroughs, authorities,
districts, locally-based areawide economic development organizations,
Indian tribes on Federal and State reservations, and other federally
recognized Indian tribes in rural areas. Furthermore, the Agency
believes public bodies should be eligible because they are eligible for
other RDA programs and could reasonably be expected to operate such
centers.
The statute requires that these centers satisfy certain conditions
in order to be eligible for grant funds. The primary objective of the
program, established by CONACT Sec. 310B(f)(2)(B), is 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. The intent of this law is to provide
incentives to establish new businesses, implement advanced technologies
for businesses presently in place, and create alternative agricultural
enterprises to stimulate the farm economy in the rural areas.
Definitions referenced in the interim rule generally are based on
working definitions used by the Agency or other Federal agencies in
similar grant programs and common usage of the terms. ``Cooperative
development,'' however, was taken from the CONACT, Sec. 310B(f)(2)(B),
and ``technology development'' was taken from the CONACT, Sec.
310B(f)(2)(C)(vi). ``Rural and rural area,'' ``urbanized area,'' and
``urbanizing area'' were taken from related RDA program regulations
also under the authority of the CONACT, Sec. 310B. The term ``United
States'' is defined in accordance with Sec. 310B(f)(4)(B) to mean the
several States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, and the other
territories and possessions of the United States.
Eligibility
RTDGs may be made to nonprofit institutions and public bodies
serving rural areas. Rural area determinations will be made to
ascertain the eligibility of the applicant's proposed serving area. The
procedure established in this rule to determine eligible grant areas is
based on density requirements used by RDA in other grant programs.
In accordance with the CONACT, Sec. 310B(h), grants may be used to
pay only up to 75 percent of the administrative costs. The Agency has
further determined that to better utilize limited funds available under
the program and to leverage those funds to bring in other sources of
funding for the projects, the maximum grant amount for each proposed
project will not be more than 75 percent of the project costs. This
requirement is considered necessary to stimulate other funding
participation in economic development activities and allow program
grant funds to reach a broader range of rural economic development
efforts. The applicant must contribute at least 25 percent to the cost
of the project and administrative costs. The applicant's contribution
may be in cash or third-party in-kind contributions in accordance with
7 CFR 3015, ``Uniform Federal Assistance Regulations,'' and 3016,
``Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments.'' Under 7 CFR 3015 and 3016,
matching funds generally cannot come from another Federal grant
program.
No Federal funds for this program shall be granted to an applicant
who has an outstanding delinquent Federal debt until the delinquent
account has been paid in full, nor shall funds be granted to an
applicant for which an outstanding judgment obtained by the United
States in a Federal Court (other than in the United States Tax Court),
which has been recorded, unless it has been paid in full or otherwise
satisfied, as required by the Federal Debt Collection Act of 1990.
Section 310B(d)(2) further prohibits financial assistance over $1
million, or where direct employment is increased by more than 50
employees, if: (1) it is likely to result in the transfer from one area
to another any employment or business activity, unless it expands
existing businesses or establishes a new location or; (2) it will
increase the production or the availability of services or facilities
in an area which will increase employment and have an adverse effect on
existing competitors.
Application Process
Applications to be submitted must include a clear statement of the
goal(s) and objective(s) of the project and a plan which describes the
proposed project as required by the CONACT, Sec. 310B (f)(2). Such plan
must contain specific elements to be addressed which have been deemed
necessary to carry out the intent of the program and will also serve as
the basis for the selection criteria that will be used to evaluate the
project.
The program objectives and eligible grant purposes based on the
statute are set forth in the interim rule. The Agency has expanded
these eligible purposes to include equipment and materials necessary to
carry out the objectives of the plan. This purpose is incidental and
required to carry out the program's statutory objectives.
Ineligible grant purposes identified in the interim rule are in
accordance with 7 CFR 3015 and 3016 and are consistent with other RDA
grant programs. In addition, RTDG funds may not be provided to support
greater than 75 percent of eligible project costs or to pay for
building construction, the purchase of real estate or vehicles,
improving and/or renovation of office space, or repair or maintenance
of privately-owned property. Due to the limited funding available,
these limitations are necessary to benefit as many eligible projects as
possible.
Application requirements include submission of an SF-424,
``Application for Federal Assistance,'' and other supporting
documentation. The information required is consistent with RDA's other
grant programs. The application process for RTDG funds is a two-stage
process. Preapplications are submitted to determine applicant
eligibility. Upon an eligibility determination, applications are
submitted to process for competitive project selection. All supporting
documentation required in connection with the preapplication/
application are necessary for RDA to determine if the applicant is
eligible, if the proposed grant purposes are eligible, and to help the
Agency select the best grant applications for funding. RDA is
simultaneously publishing in this issue of the Federal Register a
Notice (inviting applications) that contains more specific guidance on
submission of applications for FY 1994.
Project Selection
Section 310B(f)(3) of the CONACT limits the Agency's discretion in
selecting eligible projects for funding. Grants shall be made on a
competitive basis. Preferences will be given to support projects that
most effectively improve business, industry, and employment in rural
areas. Emphasis for project selection will be given to those projects
that ``* * * contribute the most to the improvement of economic
conditions of rural areas. * * *'' The Agency has interpreted this
statutory phrase to establish preferences for projects that will create
industries or agribusinesses, increase employment, stem the flow of
outmigration, and increase the tax base in the areas to be served. The
applicant must provide data to support these criteria for the most
current full calendar year for which data is available and the 3 prior
calendar years. This range of information should provide an accurate
picture of the economic conditions of the rural areas to be served. The
Agency is placing an emphasis on these criteria based on the purposes
and objectives set forth in the statute. The actual number of proposals
to receive funding will depend on the total number of applications
received and the amount of grant funds requested. Projects will be
selected based on a priority point system set out in the regulation.
The point system emphasizes those factors given preference by statute.
Points will be totalled and ranked with other applications. This
selection method has been successful in other grant programs
administered by the Agency and is considered the best method to use for
this program.
RDA monitors and evaluates each project it approves in accordance
with 7 CFR 3015 and 3016. Monitoring typically involves site visits by
RDA staff and designated evaluators, telephone conversations, and
evaluation of the grantee's written activity reports. Activity reports
are used to evaluate projects and must be in a measurable form.
Termination of grant provisions are in accordance with 7 CFR 3015 and
3016. These provisions are consistent with other RDA grant programs.
Miscellaneous
Recipients and subrecipients are subject to all applicable Federal
laws, Federal and USDA policies, regulations, and procedures applicable
to Federal financial assistance. Requirements concerning civil rights,
the environment, debarment and suspension, etc., have been listed in
this rule. These restrictions are consistent with other RDA grant
programs.
List of Subjects
7 CFR Part 1901
Agriculture, Authority delegations, 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.
Therefore, chapters XVIII and XLII, title 7, Code of Federal
Regulations, are amended as follows:
PART 1901--PROGRAM-RELATED INSTRUCTIONS
1. The authority citation for part 1901, subpart E, continues to
read as follows:
Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 40 U.S.C. 442; 5
U.S.C. 301; 42 U.S.C. 2942; 7 C.F.R. 2.23; 7 CFR 2.70.
Subpart E--Civil Rights Compliance Requirements *C*
2. Section 1901.204 is amended by adding a paragraph (a)(27) to
read as follows:
Sec. 1901.204 Compliance reviews.
(a) * * *
(27) Rural Technology Development Grants in subpart F of part 4284
of this title.
* * * * *
PART 1940--GENERAL
3. The authority citation for part 1940 continues to read as
follows:
Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR
2.23; 7 CFR 2.70.
Subpart L--Methodology and Formulas for Allocation of Loan and Grant
Program Funds
4. Section 1940.590 is amended by adding paragraph (j) to read as
follows:
Sec. 1940.590 Community and Business Programs appropriations not
allocated by State.
* * * * *
(j) Rural Technology Development Grants. Control of funds will be
retained in the National Office and allocated on a project case basis.
Funds may be requested by sending in Exhibit C of subpart F of part
4284 of this title (available in any FmHA State Office).
PART 1951--SERVICING AND COLLECTIONS
5. The authority citation for part 1951 continues to read as
follows:
Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR
2.23 and 7 CFR 2.70.
Subpart E--Servicing of Community and Insured Business Programs
Loans and Grants
Sec. 1951.201 [Amended]
6. Section 1951.201 is amended by removing the word ``and'' before
the words ``Section 306C'' and by adding the words ``; and Rural
Technology Development Grants in subpart F of part 4284 of this title''
after the words ``subpart E of part 4284 of this title''.
PART 2003--ORGANIZATION
7. The authority citation for part 2003 continues to read as
follows:
Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 5 U.S.C. 301; Public
Law 100-82, 7 CFR 2.23 and 2.70.
Subpart A--Functional Organization of the Farmers Home
Administration
8. Exhibit A of subpart A, paragraph 2 under the heading of 07 02
03 Assistant Administrator--Community and Business Programs is amended
by adding the words ``rural technology development grants,'' after the
words ``rural business enterprise/television demonstration grants.''
PART 4284--GRANTS
9. The authority citation for part 4284 continues to read as
follows:
Authority: 7 U.S.C. 1989; 16 U.S.C. 1005; 5 U.S.C. 301; 7 CFR
2.70.
Subpart F--Rural Technology Development Grants
10. Subpart F of part 4284, consisting of Secs. 4284.501 through
4284.600, is added to read as follows:
Subpart F--Rural Technology Development Grants
Table of Contents
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.
4284.542-4284.555 [Reserved]
4284.556 Docket preparation and Letter of Conditions.
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 Forms and exhibits.
4284.589-4284.599 [Reserved]
4284.600 OMB control number.
Exhibit A to Subpart F--Agreement of Administrative Requirements for
Rural Technology Development Grants
Subpart F--Rural Technology Development Grants
Sec. 4284.501 Purpose.
(a) This subpart outlines the Rural Development Administration's
(RDA) policies and authorizations and sets forth procedures to provide
grants for technology and cooperative development in rural areas.
Grants will not be awarded under this subpart after July 13, 1995.
(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 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 any Farmers Home Administration (FmHA) State Office.
Sec. 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 RDA servicing
offices.
Sec. 4284.503 [Reserved]
Sec. 4284.504 Definitions.
Approval official--Any authorized FmHA/RDA official.
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 or expansion 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, and/or new
enterprises that can add value to on-farm production through processing
or marketing.
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, and/or gains in
other measurements of economic activity, such as land values.
Nonprofit institutions--Any organization or institution, 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 and/or cooperative development center.
Public body--Any State, county, city, township, incorporated towns
and villages, boroughs, authorities, districts, locally-based areawide
economic development organizations, and Indian tribes on Federal and
State reservations, and other federally recognized Indian tribes in
rural areas.
Servicing office--Any FmHA State 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 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.
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.
Rural and rural area--Includes all territory of a State, the
Commonwealth of Puerto Rico, the Virgin Islands of the United States,
Guam, American Samoa, or the Commonwealth of the Mariana Islands 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.
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 boundary(ies) 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.
Sec. 4284.505 Applicant eligibility.
(a) Grants may be made to public bodies or nonprofit institutions.
(1) The approval official will proceed as follows in rural area
determinations: When the approval official determines an area to be
urbanized or urbanizing, he/she must then determine the population
density per square mile. If the project otherwise appears to be
eligible, the approval official will request the National Office to
provide the correct density figure.
(2) 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.
(b) 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. RDA grant funds may not be used to satisfy
the judgement. Questions about whether or not a judgement is still
outstanding should be directed to the Office of the General Counsel
(OGC).
Secs. 4284.506-4284.514 [Reserved]
Sec. 4284.515 Grant purposes.
Grant funds may be used to pay up to 75 percent of the costs for
establishing and/or operating centers for rural technology and/or
cooperative development. Applicant's contribution may be in cash or
third-party in-kind contribution in accordance with parts 3015 and 3016
of this title. 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.
Sec. 4284.516 Ineligible grant purposes.
Grant funds may not be used to:
(a) Pay more than 75 percent of a project cost.
(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 and/or renovation of office space; or repair or
maintenance of privately-owned 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.
Secs. 4284.517-4284.526 [Reserved]
Sec. 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
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. RDA will give particular
emphasis to ensuring compliance with the environmental policies
contained in Secs. 1940.303 and 1940.304 of subpart G of part 1940 of
this title. 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,
wetlands, and floodplains. 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
Sec. 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 the potential environmental impacts of the
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. RDA will review the
preapplication, supporting materials, and any required Forms FmHA 1940-
20 and initiate a Class II assessment for the preapplication in
accordance with Sec. 1940.318 of subpart G of part 1940 of this title.
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 and that can be identified at this
time from the information submitted. Because RDA's approval of this
type of grant application does not constitute RDA's commitment to the
use of grant funds for any identified third-party projects (see
Sec. 4284.541 of this subpart), no public notification requirements for
a Class II assessment 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 RDA 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, RDA may perform the appropriate environmental assessment in
accordance with the requirements of subpart G of part 1940 of this
title and forego initiating a Class II 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 in subpart G
of part 1940 of this title.
(c) Governmentwide debarment and suspension (nonprocurement) and
requirements for drug-free workplace. All projects must comply with the
requirements set forth in part 3017 of this title and FmHA Instruction
1940-M (available in any FmHA State Office).
(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 RDA 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 shall 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 unless there is reason to believe that such
expansion is being established with the intention of closing down the
operations of the existing business entity in the area of its original
location or in any other area where it conducts such 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 Non-Relocation 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
(available in any FmHA State Office) as an example in preparing the
resolution. Future occupants of the site must be certified by the
Department of Labor (DOL) for a period of 3 years after the initial
certification by DOL.
(2) RDA will check each document for completeness and accuracy and
submit nine copies of each to the National Office for forwarding to
DOL.
(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 RDA. The information will be
submitted to DOL by the RDA National Office. Grant approval may be
given and funds may be obligated, subject to the DOL certification
being received, provided RDA has made its own separate determinations
of (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, and 3017 of this title, as
appropriate, and established RDA guidelines.
(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) Floodplains and wetlands. All projects must comply with
Executive Order 11988, ``Floodplain 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 to projects from a revolving fund, in an amount
equal to the grant provided by RDA, the requirements imposed on the
grantee shall not be applicable to any new projects thereafter financed
from the revolving funds. Such new projects shall not be considered as
being derived from Federal funds.
(l) Intergovernmental review. Grant projects are subject to the
provisions of Executive Order 12372 which requires intergovernmental
consultation with State and local officials. A revolving 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
revolving loan project. For each project to be assisted with a grant
under this subpart and for which the State has elected to review the
project 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 RDA grant
funds for the specific project. Prior to RDA's decision on the request,
compliance with requirements of intergovernmental consultation must be
demonstrated for each project. These requirements should be carried out
in accordance with subpart V, ``Intergovernmental Review of Department
of Agriculture Programs and Activities,'' of part 3015 of this title
(see subpart J of part 1940 of this title, available in any FmHA State
Office).
Sec. 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 RDA office. This form is
available in any FmHA 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
and 3016 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 resolution or a written statement
from the chief elected local official.
(vi) The most current demographic information (and source) about
the area to be served which includes information on the rural
industries and agribusinesses in the area; unemployment rate;
description of under employment in the area; information regarding
outmigration of people, businesses and industries; and the per capita
income of the area. The source of information and dates must be
identified and must be from a recognized source such as Census data or
State employment data.
(vii) Businesses to be assisted.
(viii) Applicant's experience, including experience of key staff
members and person(s) who will be providing the proposed service(s) 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/businesses that
will receive the service.
(xi) Brief description of how the work will be performed and
whether organizational staff or consultants/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) A description of the activities that the applicant will carry
out to accomplish such objective.
(D) A description of the proposed activities to be funded under
this subpart.
(E) 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.
(F) Provisions that the applicant, in carrying out its activities,
will seek, where appropriate, the advice, participation, expertise, and
assistance of representatives of business, industry, educational
institutions, the Federal Government, and State and local governments.
(G) 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.
(H) 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.
(I) Provisions for:
(1) Monitoring and evaluating its activities; and
(2) Accounting for money received and expended by the institution
under this subpart.
(J) Provisions that the applicant will provide for the optimal
application of technology and cooperative development in rural areas,
especially those areas adversely affected by adverse 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
and/or grants to eligible individuals, small businesses, or
cooperatives (ultimate recipients) in rural areas for eligible purposes
under this subpart, the applicant shall develop a plan which outlines
the purpose and administration of the fund and include in the
preapplication a copy of a proposed agreement to be used between the
applicant and the ultimate recipient(s) 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 and 3016 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 Form FmHA
400-4, ``Assurance Agreement.''
(D) Clear documentation that the ultimate recipient understands its
responsibilities to the applicant.
(E) Clear 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) Brief written narrative addressing all items in
Sec. 4284.540(a) of this subpart, regarding grant selection criteria.
(3) Upon receipt of a preapplication, RDA will:
(i) Review and evaluate the preapplication and accompanying
documents;
(ii) Request from the OGC, a legal determination of the applicant's
legal existence and authority to perform the proposed activity; and
(iii) Respond to the applicant (usually within 45 days) using Form
AD-622, ``Notice of Preapplication Review Action,'' indicating the
action taken on the preapplication.
(4) Applicants whose preapplications are found to be ineligible
will be given notice by use of Form AD-622 and advised of their appeal
rights under subpart B of part 1900 of this title.
(5) If at any time prior to grant approval it is decided that
favorable action will not be taken on a preapplication or application,
the RDA will notify the applicant in writing of the reasons why the
request was not favorably considered. The notification will advise the
applicant of appeal rights under subpart B of part 1900 of this title.
(6) Applicants eligible for funding within the available funds will
be provided forms and instructions for filing a complete application.
Applicants should be advised against incurring obligations which cannot
be fulfilled without RDA funds.
(b) Applications. Upon notification on Form AD-622 that the
applicant is eligible for funding, the following will be submitted to
the RDA by the applicant:
(1) SF 424.1.
(2) Proposed scope of work, detailing the proposed activities to be
accomplished and timeframes 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 requested information needed by RDA 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 Form AD-622
(normally 30 days from the date of Form AD-622), RDA may discontinue
consideration of the application. Appeal rights will be given in
accordance with subpart B of part 1900 of this title.
Secs. 4284.529-4284.539 [Reserved]
Sec. 4284.540 Grant selection criteria.
Grants will be awarded under this subpart on a competitive basis.
The priorities described below will be used by the RDA to rate
preapplications and applications. Points will be distributed as
indicated in paragraph (a) of this section. Points will be distributed
according to ranking as compared with other preapplications/
applications on hand. A copy of the score sheet (available in any FmHA
State Office) should be placed in the casefile for future reference.
(a) The selection criteria are as follows:
(1) Economic conditions. Preference will be given to proposed
projects which will serve a rural area(s) that has few rural industries
and agribusinesses; high levels of unemployment or underemployment;
high rates of outmigration of people, businesses, and industries; and
low levels of per capita income. RDA will consider data supporting
these demographics from the United States Bureau of the Census or other
reliable data from recognized local, regional, State or Federal sources
or from surveys conducted by reliable, impartial sources. Outmigration
of businesses and industries, for example, may be supported by county
business patterns data available from the Bureau of the Census. Data to
support all categories must be for the most current full calendar year
for which the data is available and the 3 calendar years prior to that
year. The competitive range for proposed projects is as follows:
(i) Number of rural industries and agribusinesses in comparison
with the population of the area(s) to be served: 1 or less per 5,000
residents--25 points; 1 or less per 3,000 residents--15 points; or 1 or
less per 1,000 residents--5 points.
(ii) Unemployment rate in the area(s) to be served: Exceeds the
State rate by 25 percent or more--15 points; or exceeds the State rate
by less than 25 percent but more than 5 percent--10 points.
(iii) Underemployment in the area(s) to be served exceeds the State
rate of underemployment by 25 percent or more--20 points; exceeds the
State rate by less than 25 percent--10 points; or is equal to or less
than State rate--0 points.
(iv) Outmigration of rural residents from the area(s) as evidenced
by a population loss in the last full calendar year of at least 20
percent--20 points.
(v) Outmigration of business and industry and/or business and
industry closures in the area(s) of at least 20 percent in the last 3
years--20 points.
(vi) Average per capita income of the area(s) is less than the
State average by: 50 percent--25 points; or 25 percent--10 points.
(2) Project proposal. The project proposal will contribute the most
to the improvement of economic conditions of the rural area(s) by:
(i) Creation of industries or agribusinesses in the area(s): 1 or
more per 5,000 residents--20 points; 1 or more per 10,000 residents--10
points; or 1 or more per 20,000 residents--5 points.
(ii) Increasing employment by 10 percent or more--10 points.
(iii) Stemming the flow of outmigration of people, businesses, or
industries by 10 percent or more--10 points.
(iv) Increasing the tax base of the area(s) by 2 percent or more--5
points.
(3) Applicant experience. The applicant demonstrates capability to
transfer for practical application in rural areas the technology
generated and demonstrates the ability to commercialize products,
processes, services, and enterprises in rural areas--15 points.
(b) Review of decision. Each application for assistance will be
carefully reviewed in accordance with the priorities established in
this section. A priority rating will be assigned to each application.
Applications selected for funding will be based on the priority rating
assigned each application and the total funds available. All
applications submitted for funding should contain sufficient
information to permit RDA to complete a thorough priority rating. When
a determination is made that favorable action will not be taken on a
preapplication or application, the applicant will be notified in
writing of the reasons why the request was not favorably considered.
The notification to the applicant will state that a review of this
decision by RDA may be requested by the applicant in accordance with
subpart B of part 1900 of this title.
Sec. 4284.541 Grant approval, fund obligation, grant closing, and
third-party financial assistance.
(a) [Reserved]
(b) [Reserved]
(c) A copy of the executed Form FmHA 1940-1, ``Request for
Obligation of Funds,'' and the approved scope of work will be sent to
the applicant on the obligation date. The grant will be considered
closed on the obligation date. Exhibit A of this subpart, shall become
a permanent part of Form FmHA 1940-1 when grant funds are involved, and
the following paragraphs will appear in the comment section of that
form as appropriate:
(1) ``The grantee understands the requirements for receipt of funds
under the Rural Technology Development Grant program. The grantee
assures and certifies that it is in compliance with all applicable
laws, regulations, Executive Orders, and other generally applicable
requirements, including those set forth in exhibit A of subpart F of
part 4284 of this chapter, 7 CFR parts 3015, 3016, 3017, and 3018
(including revisions through ________________ (date of grant
approval)); and the Letter of Conditions and the approved scope of
work.''
(2) For grants involving the establishment of a revolving loan
program to benefit third parties, the following statement shall also be
added to the comment section of Form FmHA 1940-1: ``The grantee
furthermore agrees to use grant funds for the purposes outlined in the
Scope of Work approved by RDA.''
Secs. 4284.542-4284.555 [Reserved]
Sec. 4284.556 Docket preparation and Letter of Conditions.
(a) The following forms and documents will be part of the grant
docket:
(1) Form FmHA 400-4 for the applicant and recipients of the
technical assistance or loans under a revolving loan fund.
(2) Scope of work and budget prepared by the applicant.
(3) Form FmHA 1940-1.
(4) Resolution of the Board, if appropriate, approving the grant
application.
(5) Evidence of authority for individual, in the applicant's
organization, to execute grant documents.
(6) Evidence of fidelity bond coverage.
(7) Form FmHA 1942-43, ``Project Summary--Community Facilities
(Other Than Utility-Type Projects).''
(8) Executed Forms AD-1047, ``Certification Regarding Debarment,
Suspension, and Other Responsibility Matters--Primary Covered
Transactions,'' and AD-1049, ``Certification Regarding Drug-Free
Workplace Requirements (Grants) Alternative I--For Grantees Other Than
Individuals.''
(9) Executed certification in accordance with part 3018, appendix A
of this title, that no Federal appropriated funds have been paid or
will be paid for lobbying activities and Form LLL, ``Disclosure of
Lobbying Activities.''
(10) Proposed agreement between applicant and ultimate recipient as
required in Sec. 4284.528(a)(2)(xiv) of this subpart (if applicable).
(11) Class II Environmental Assessment (if applicable).
(12) Finding of No Significant Impact (if applicable).
(13) Form FmHA 400-8, ``Compliance Review (Nondiscrimination by
Recipients of Financial Assistance through Farmers Home
Administration.)''
(b) The RDA representative will prepare a Letter of Conditions
outlining the conditions under which the grant will be made. It will
include those matters necessary to ensure that the proposed grant is
completed in accordance with the terms of the scope of work and budget,
that the grant funds are expended for authorized purposes, and that the
requirements prescribed in parts 3015, 3016, 3017, and 3018 of this
title are complied with. Each Letter of Conditions will contain the
following paragraphs:
(1) ``This letter establishes conditions which must be understood
and agreed to by you before further consideration may be given to the
application.''
(2) ``This letter is not to be considered as grant approval nor as
a representation as to the availability of funds. The docket may be
completed on the basis of a grant not to exceed $________________ and a
matching share by the applicant in the amount of $________________.''
(3) ``Please complete and return the attached Form FmHA 1942-46,
`Letter of Intent to Meet Conditions,' if you desire further
consideration be given your application.''
(4) ``You must certify that the activities provided under the grant
will benefit a rural area.''
(5) ``You must certify that at least 25 percent of the total funds
for this project are provided as the grantee's share and meet the
matching fund requirements of 7 CFR parts 3015 and 3016.''
(6) ``You must certify that no Federal appropriated funds have been
paid or will be paid for lobbying activities in accordance with 7 CFR
part 3018, Appendix A, and execute Form LLL.''
(7) ``You must execute Form AD-1047, `Certification Regarding
Debarment, Suspension, and Other Responsibility Matters--Primary
Covered Transactions,' to certify that your organization is not
debarred or suspended from Government assistance. You also must obtain
a certification on Form AD-1048, `Certification Regarding Debarment,
Suspension, Ineligibility and Voluntary Exclusion--Lower Tier Covered
Transactions,' from any person or entity you do business with as a
result of this Government assistance that they are not debarred or
suspended from Government assistance.''
(8) ``You must execute Form AD-1049, `Certification Regarding Drug-
Free Workplace Requirements (Grants) Alternative I--For Grantees Other
Than Individuals,' to certify that you will provide a drug-free
awareness program for employees.''
(9) ``You must 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 of work or budget can result in suspension/
termination of grant funds.''
(10) Other items in the Letter of Conditions should include those
appropriate items relative to: maximum amount of grant; contributions;
required project audit; evidence of compliance with all applicable
Federal, State, and local requirements; closing instructions; DOL
certifications; compliance with any required environmental mitigation
measures; and other requirements.
Sec. 4284.557 Fund disbursement.
Grantees will be reimbursed as follows:
(a) An SF-270, ``Request for Advance or Reimbursement,'' will be
completed by the applicant and submitted to RDA not more frequently
than monthly.
(b) Upon receipt of a properly completed SF-270, the funds will be
requested through the field office terminal system. Ordinarily, payment
will be made within 30 days after receipt of a proper request for
reimbursement.
(c) Grantees are encouraged to use minority banks (a bank which is
owned by at least 50 percent minority group members) for the deposit
and disbursement of funds. A list of minority owned banks can be
obtained from the Office of Minority Business Enterprise, Department of
Commerce, Washington, DC 20230.
(d) 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 will not
be permitted to provide its contribution at the end of the grant
period.
Sec. 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 RDA. 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 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.
Secs. 4284.559-4284.570 [Reserved]
Sec. 4284.571 Audit requirements.
The grantee will provide an audit report in accordance with subpart
A of part 1942 of this title. The audit requirements only apply to the
year(s) in which grant funds are received. Audits must be prepared in
accordance with generally accepted Government auditing standards using
the publication, ``Standards for Audit of Governmental Organizations,
Programs, Activities and Functions.''
Sec. 4284.572 Grant servicing.
Grants will be serviced in accordance with subpart E of part 1951
of this title.
Sec. 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/termination
of grant funds.
Sec. 4284.574 Subsequent grants.
Subsequent grants will be processed in accordance with the
requirements set forth in this subpart.
Sec. 4284.575 Grant suspension, termination, and cancellation.
Grants may be cancelled by RDA by use of Form FmHA 1940-10,
``Cancellation of U.S. Treasury Check and/or Obligation.'' The RDA will
notify the applicant, by letter, that the grant has been cancelled. A
copy of the letter will be sent to the Regional Attorney, OGC, if the
Regional Attorney has been involved. The applicant will be provided
appeal rights, as appropriate, in accordance with subpart B of part
1900 of this title. Grants may be suspended or terminated for cause or
convenience, in accordance with parts 3015 and 3016 of this title.
Secs. 4284.576-4284.586 [Reserved]
Sec. 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
interest and shows how the adverse impact will be eliminated or
minimized if the exception is made.
Sec. 4284.588 Forms and exhibits.
Exhibits A and B and forms referenced (all available in any FmHA
State Office) are for use in administering grants made under this
subpart.
Secs. 4284.589-4284.599 [Reserved]
Sec. 4284.600 OMB control number.
The reporting and recordkeeping 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, D.C. 20250; and to the Office of Management and
Budget, Paperwork Reduction Project (OMB #0570-0006), Washington, D.C.
20503.
Exhibit A of Subpart F--Agreement of Administrative Requirements for
Rural Technology Development Grants
This exhibit contains information regarding the responsibilities of
the grantee for receipt of grant funds under the Rural Technology
Development Grant (RTDG) program. These requirements do not supersede
the requirements for receipt of Federal funds as stated in 7 CFR parts
3015 and 3016; however, specific areas related to the program are cited
below.
In consideration for the RTDG grant by RDA, grantee agrees to:
1. Cause the RTDG program to be completed within the total sums
available to it, including grant funds, in accordance with the scope of
work and any necessary modifications thereof prepared by grantee and
approved by grantor.
2. Permit periodic inspection of the program operations by a
representative of grantor.
3. Make the program available to all persons in grantee's service
area without regard to race, color, national origin, religion, sex,
marital status, age, physical or mental handicap.
4. Not use grant funds to replace any financial support previously
provided or assured from any other source. The grantee agrees that the
general level of expenditure by the grantee for the benefit of program
area and/or program covered by this agreement shall be maintained and
not reduced as a result of the Federal share funds received under this
grant.
5. Provide financial management systems which will include:
(a) Accurate, current, and complete disclosure of the financial
result of each grant.
(b) Records which identify adequately the source and application of
funds for grant-supporting activities. Those records shall contain
information pertaining to grant awards and authorizations, obligations,
unobligated balances, assets, liabilities, outlays, and income.
(c) Effective control over and accountability for all funds.
Grantee shall adequately safeguard all such assets and shall ensure
that they are used solely for authorized purposes.
(d) Accounting records supported by source documentation.
6. Retain financial records, supporting documents, statistical
records, and all other records pertinent to the grant for a period of
at least 3 years after grant closing except that the records shall be
retained beyond the 3-year period if audit findings have not been
resolved. Microfilm copies may be substituted in lieu of original
records. The grantor and the Comptroller General of the United States,
or any of their duly authorized representatives, shall have access to
any books, documents, papers, and records of the grantee which are
pertinent to the specific grant program for the purpose of making
audits, examinations, excerpts, and transcripts.
7. Provide an audit report prepared in accordance with generally
accepted Government auditing standards using the publication,
``Standards for Audit of Governmental Organizations, Programs,
Activities and Functions.''
8. Provide grantor with such periodic reports as it may require and
permit periodic inspection of its operations by a designated
representative of the grantor.
9. Execute Form FmHA 400-4, ``Assurance Agreement,'' and any other
agreements required by grantor to implement the civil rights
requirements. If any such form has been executed by grantee as a result
of a grant being made to grantee by grantor contemporaneously with the
making of this grant, another form of the same type need not be
executed in connection with this grant.
10. That upon any default under its representations or agreements
set forth in this instrument, grantee, at the option and the demand of
grantor, will, to the extent legally permissible, repay to grantor
forthwith the original principal amount of the grant stated herein
above, with interest equal to the rate of interest paid on U.S. 26-week
Treasury Bills adjusted quarterly from the date of the default. The
provisions of this exhibit may be enforced by grantor at its option and
without regard to prior waivers by it of previous defaults of grantee,
by judicial proceedings to require specific performance of the terms of
this exhibit, or by such other proceedings in the law or equity in
either Federal or State courts as may be deemed necessary by grantor to
assure compliance with the provisions of this exhibit and the laws and
regulations under which this grant is made.
11. That no member of Congress shall be admitted to any share or
part of this grant or any benefit that may arise therefrom; but this
provision shall not be construed to bar, as a contractor under the
grant, a publicly held corporation whose ownership might include a
member of Congress.
12. That all non-confidential information resulting from its
activities shall be made available to the general public on an equal
basis.
13. That the purpose and scope of work for which this grant is made
shall not duplicate programs for which monies have been received, are
committed, or are applied to from other sources (public or private).
14. That grantee shall relinquish any and all copyrights and/or
privileges to the materials developed under this grant as published in
whole or in part. The material shall contain a notice and be identified
by language to the following effect: ``The material is the result of
tax-supported research and as such is not copyrightable. It may be
freely reprinted with the customary crediting of the source.''
15. That the grantee shall abide by the policies promulgated in the
USDA Uniform Assistance Regulations, 7 CFR Parts 3015 and 3016, which
provides standards for use by grantee in establishing procedures for
the procurement of supplies, equipment, and other services with Federal
grant funds.
16. Obtain prior approval from grantor for use of grant funds for
uses or amounts not consistent with the approved scope of work and
budget.
17. That the grantee, except for States, will remit interest earned
on grant funds deposited in an interest bearing account in accordance
with the USDA Uniform Assistance Regulation, 7 CFR Parts 3015 and 3016.
18. Grantee will comply with property management standards
established by 7 CFR Parts 3015 and 3016 for personal property.
``Personal property'' means property of any kind except real property.
It may be tangible--having physical existence--or intangible--having no
physical existence; such as patents, inventions, and copyrights.
``Nonexpendable personal property'' means tangible personal property
having a useful life of more than 1 year and an acquisition cost of
$300 or more per unit. A grantee may use its own definition of
nonexpendable personal property provided that such definition would at
least include all tangible personal property as defined above.
``Expendable personal property'' refers to all tangible personal
property other than nonexpendable property. When nonexpendable property
is acquired by a grantee with project funds, title shall not be taken
by the Federal Government but shall be vested in the grantee subject to
the following conditions.
(a) Right to transfer title. For items of real or nonexpendable
personal property having a unit acquisition cost of $1,000 or more, RDA
may reserve the right to transfer the title to the Federal Government
or to a third party named by the Federal Government when such third
party is otherwise eligible under existing statutes. Such reservation
shall be subject to the following standards:
(i) The property shall be appropriately identified in the grant or
otherwise made known to the grantee in writing.
(ii) RDA shall issue disposition instructions within 120 calendar
days after the end of the Federal support of the project for which it
was acquired. If RDA fails to issue disposition instructions within the
120 calendar day period, the grantee shall apply the standards of
paragraph 18. (b) of this exhibit.
(iii) When RDA exercises its right to take title, the personal
property shall be subject to the provisions for federally owned
nonexpendable property discussed in paragraphs 18. (b) and (c) of this
exhibit.
(iv) When title is transferred either to the Federal Government or
to a third party and the grantee is instructed to ship the property
elsewhere, the grantee shall be reimbursed by the benefiting Federal
agency with an amount which is computed by applying the percentage of
the grantee's participation in the cost of the original grant project
or program to the current fair market value of the property, plus any
reasonable shipping or interim storage costs incurred.
(b) Use of other nonexpendable personal property for which the
grantee has title.
(i) The grantee shall use the property in the project or program
for which it was acquired as long as needed, whether or not the project
or program continues to be supported by Federal funds. When it is no
longer needed for the original project or program, the grantee shall
use the property in connection with its other federally sponsored
activities, in the following order of priority:
(1) Activities sponsored by RDA.
(2) Activities sponsored by other Federal agencies.
(ii) Shared use. During the time that nonexpendable personal
property is held for use on the project or program for which it was
acquired, the grantee shall make it available for use on other projects
or programs if such other use will not interfere with the work on the
project or program for which the property was originally acquired.
First preference for such other use shall be given to projects or
programs sponsored by RDA; second preference shall be given to projects
or programs sponsored by other Federal agencies. If the property is
owned by the Federal Government, use for other activities not sponsored
by the Federal Government shall be permissible if authorized by RDA.
User charges should be considered, if appropriate.
(c) Disposition of nonexpendable personal property. When the
grantee no longer needs the property as provided in paragraph 18(b) of
this exhibit, the property may be used for other activities in
accordance with the following standards:
(i) Personal property with a unit acquisition cost of less than
$1,000. The grantee may use the property for other activities without
reimbursement to the Federal Government or sell the property and retain
the proceeds.
(ii) Nonexpendable personal property with a unit acquisition cost
of $1,000 or more. The grantee may retain the property for other use
provided that compensation is made to RDA or its successor. The amounts
of compensation shall be computed by applying the percentage of Federal
participation in the cost of the original project or program to current
fair market value of the property. If the grantee has no need for the
property and the property has further use value, the grantee shall
request disposition instructions from the original grantor agency.
(iii) RDA shall determine whether the property can be used to meet
the Agency's requirements. If no need exists within RDA, the General
Services Administration Federal Property Management Regulations will be
used by RDA to determine whether a need for the property exists in
other Federal *agencies. RDA shall issue instructions to the grantee no
later than 120 days after the grantee request and the following
procedures shall govern:
(1) If so instructed or if disposition instructions are not issued
within 120 calendar days after the grantee's request, the grantee shall
sell the property and reimburse RDA an amount computed by applying the
percentage of the grantor participation in the grant program to the
sales proceeds. However, the grantee shall be permitted to deduct and
retain from the Federal share $100 or 10 percent of the proceeds,
whichever is greater, for the grantee's selling and handling expenses.
(2) If the grantee is instructed to dispose of the property other
than as described in paragraphs 18. (b) and (c) of this exhibit, the
grantee shall be reimbursed by RDA for such costs incurred in its
disposition.
(3) Property management standards for nonexpendable personal
property. The grantee's property management standards for nonexpendable
personal property shall include the following procedural requirements:
(a) Property records shall be maintained accurately and shall
include:
(i) A description of the property.
(ii) Manufacturer's serial number, model number, Federal stock
number, National stock number, or other identification number.
(iii) Sources of the property including grant or other agreement
number.
(iv) Whether title vests in the grantee or the Federal Government.
(v) Acquisition date (or date received, if the property was
furnished by the Federal Government) and costs.
(vi) Percentage (at the end of the budget year) of Federal
participation in the cost of the project or program for which the
property was acquired. (Not applicable to property furnished by the
Federal Government).
(vii) Location, use, and condition of the property and the date the
information was reported.
(viii) Unit acquisition cost.
(ix) Ultimate disposition data, including date of disposal and
sales price or the method used to determine current fair market value
where a grantee compensates the Federal agency for its share.
(b) Property owned by the Federal Government must be marked to
indicate Federal ownership.
(c) A physical inventory of property shall be taken and the results
reconciled with the property records at least once every 2 years. Any
differences between quantities determined by the physical inspection
and those shown in the accounting records shall be investigated to
determine the causes of the difference. The grantee shall, in
connection with the inventory, verify the existence, current
utilization, and continued need for the property.
(d) A control system shall be in effect to ensure adequate
safeguards to prevent loss, damage, or theft of the property. Any loss,
damage, or the theft of nonexpendable property shall be investigated
and fully documented; if the property was owned by the Federal
Government, the grantee shall promptly notify RDA.
(e) Adequate maintenance procedures shall be implemented to keep
the property in good condition.
(f) Where the grantee is authorized or required to sell the
property, proper sales procedures shall be established which would
provide for competition to the extent practicable and result in the
highest possible return.
(g) Expendable personal property shall vest in the grantee upon
acquisition. If there is a residual inventory of such property
exceeding $1,000 in total aggregate fair market value upon termination
or completion of the grant and if the property is not needed for any
other federally sponsored project or program, the grantee shall retain
the property for use on nonfederally sponsored activities or sell it,
but must in either case compensate the Federal Government for its
share. The amount of compensation shall be computed in the same manner
as nonexpendable personal property.
This exhibit covers the following described personal property and
any additional property acquired wholly or in part with grant funds
(use continuation sheets as necessary):
19. To the following termination provisions:
(a) Termination for cause: The grantor agency may terminate any
grant in whole, or in part, at any time before the date of completion,
whenever it is determined that the grantee has failed to comply with
the conditions of the grant. The grantor agency shall promptly notify
the grantee in writing of the determination and the reasons for the
termination, together with the effective date.
(b) Termination for convenience: The grantor agency or grantee may
terminate grants in whole, or in part, when both parties agree that the
continuation of the program would not produce beneficial results
commensurate with the further expenditure of funds. The two parties
shall agree upon the termination conditions, including the effective
date and, in the case of partial terminations, the portion to be
terminated. The grantee shall not incur new obligations for the
terminated portion after the effective date, and shall cancel as many
outstanding obligations as possible. The grantor agency shall allow
full credit to the grantee for the Federal share of the noncancelable
obligations properly incurred by the grantee prior to termination.
RDA agrees that it will:
1. Assist grantee, within available appropriations, with such
technical assistance as grantor deems appropriate in planning the
program and coordinating the plan with local official comprehensive
plans and with any State or area plans for the area in which the
program is located.
2. At its sole discretion, RDA may at any time give any consent,
deferment, subordination, release, satisfaction, or termination of any
or all of grantee's grant obligations, with or without valuable
consideration, upon such terms and conditions as RDA may determine to
be:
(a) Advisable to further the purposes of the grant or to protect
the Government's financial interest therein; and
(b) Consistent with both the statutory purposes of the grant and
the limitations of the statutory authority under which it is made.
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Name of Grantee
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Title
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Date
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RDA Approval Official
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Title
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Date
Dated: August 4, 1994.
Bob J. Nash,
Under Secretary, Small Community and Rural Development.
[FR Doc. 94-19686 Filed 8-11-94; 8:45 am]
BILLING CODE 3410-07-P
