[Federal Register Volume 60, Number 186 (Tuesday, September 26, 1995)]
[Rules and Regulations]
[Pages 49670-49703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23522]




[[Page 49669]]

_______________________________________________________________________

Part II





Department of Commerce





_______________________________________________________________________



Economic Development Administration



_______________________________________________________________________



13 CFR Chapter III



Simplification and Streamlining of Regulations of the Economic 
Development Administration; Final Rules

Federal Register / Vol. 60, No. 186 / Tuesday, September 26, 1995 / 
Rules and Regulations 

[[Page 49670]]


DEPARTMENT OF COMMERCE

Economic Development Administration

13 CFR Chapter III

[Docket No. 950525142-5142-01]
RIN 0610-AA47


Simplification and Streamlining of Regulations of the Economic 
Development Administration

AGENCY: Economic Development Administration (EDA), Commerce.

ACTION: Interim rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The purpose of this interim-final rule is to revise all of the 
regulations of the Economic Development Administration (EDA) so that 
they are easy to read and use, and accurately reflect program 
requirements, evaluation criteria and selection processes in 
implementing programs under the Public Works and Economic Development 
Act of 1965, as amended, (PWEDA or the Act) the Trade Act of 1974, as 
amended (the Trade Act) and other statutes to be noted herein. This 
streamlining effort includes the removal of numerous unnecessary, 
redundant and outdated parts, sections and portions thereof.

DATES: This rule is effective on October 1, 1995. Submit comments by 
November 27, 1995.

ADDRESSES: Send comments to Awilda R. Marquez, Chief Counsel, Economic 
Development Administration, U.S. Department of Commerce, Herbert C. 
Hoover Building, 14th Street between Pennsylvania and Constitution 
Avenues, NW, Room 7001A, Washington, DC. 20230.

FOR FURTHER INFORMATION CONTACT: Awilda R. Marquez, 202-482-4687, fax 
number: 202-482-5671.

SUPPLEMENTARY INFORMATION:

Background

     In March 1995, President Clinton issued a directive to 
Federal agencies regarding their responsibilities under his Regulatory 
Reform Initiative. This initiative is part of the National Performance 
Review and calls for immediate, comprehensive regulatory reform. The 
President directed all agencies to undertake an exhaustive review of 
all their regulations--with an emphasis on eliminating or modifying 
those that are obsolete or otherwise in need of reform. This final rule 
represents one of the first steps in EDA's response to this new 
directive.
     EDA's regulations have been criticized by Congress, 
applicants, recipients, and others as being too long, burdensome, 
complex and difficult to understand. This interim final rule addresses 
these problems as described in the Changes section.
     Public comments were solicited and received during three 
representative regional meetings of applicants and recipients of EDA 
financial assistance held in Philadelphia, Pennsylvania, in February 
1995, in Chicago, Illinois, in March 1995, and in Monterey, California, 
in April 1995. Comments from these groups were about the complexity and 
length of time and repetitive nature of grant processing. These 
streamlined regulations address these concerns because they are less 
complex and set forth program descriptions, evaluation criteria and 
processing procedures in an easy to read and straightforward manner.
     All employees of EDA were invited to participate in this 
process, and many did.

Description of Major Changes

    This interim-final rule removes, streamlines, and redesignates 
parts, sections and portions thereof. Significant changes are described 
below.

Removals

     Certain removals are made because the programs to which 
these regulations apply are no longer in existence, such as Part 313--
Job Opportunities Program; Part 314--Property Management--Subpart C--
Excess Property; Part 316--Local Public Works Capital Development and 
Investment Program; and Part 317--Round II of the Local Public Works 
Capital Development and Investment Program.
     Other removals are made because policy rules not required 
by PWEDA have become unnecessarily constraining or outdated, such as 
Part 305--Public Works and Development Facilities Program in Subpart 
C--Specific types of projects: Sec. 305.43(a) (2), (3), (4) and (b) 
(2), (3), (5) Industrial parks and sites, Sec. 305.44 Tourism and 
recreation, Sec. 305.45 Skill training center facilities; and in 
Subpart D--Limitations: Sec. 305.54 Employment of local labor and 
Sec. 305.59 Energy conservation and other requirements.
     Removals were also made because provisions repeated 
requirements in PWEDA, Pub. L. 89-136; 42 U.S.C. 3121 et seq., the 
Trade Act, Pub. L. 93-618, 19 U.S.C. 2101 et seq., or other statutes, 
or regulations, GAO opinions, Executive Orders or OMB Circulars which 
apply to EDA's programs. In these instances, of course, the statutory 
and other legal requirements are still in effect. Unless otherwise 
stated, PWEDA is the basic underlying statutory authority incorporated 
into and relied upon in 13 CFR Chapter III.

Streamlining

     In Part 304, streamlined selection processing procedures 
and uniform general evaluation criteria for EDA projects funded under 
PWEDA are set forth.
    This part condenses and clarifies policies and criteria previously 
published in annual funding notices which are being codified in this 
interim-final rule.
     Section 316.3 on excess capacity has been changed to 
describe three categories under section 702 of PWEDA (702 studies/
reports) determinations: studies, reports or exemptions. The exemptions 
have been expanded. Market studies from applicants are to be submitted 
to EDA early in application processing to be used if possible as the 
basis for 702 studies or reports. This will save time in making the 702 
studies/reports.
     The nonrelocation prohibition in Sec. 316.4 will only 
apply before a grant is awarded, and categorical exclusions from the 
nonrelocation requirements have been expanded. This removes a post-
approval burden on recipients.
     In Sec. 316.5 on electric and gas energy, requirements 
have been combined to the extent that exceptions to the statutory 
prohibition are identical, and additional exceptions have been added 
for electrical energy.
     In part 305, sections describing particular types of 
projects are removed and in their place are generalized programmatic 
requirements which are applicable to all Title I projects. The project 
specific requirements were policy driven and overly burdensome. The new 
requirements are easier to understand and to apply.
     Part 307 on Technical Assistance, Research and Planning 
has been changed to reflect program requirements, evaluation criteria 
and selection procedures for the five programs implemented by EDA under 
Title III of the Act: Local Technical Assistance, University Center 
Technical Assistance, National Technical Assistance, Research and 
Evaluation, State and Urban Planning and District Planning, to replace 
confusing and often burdensome regulations.
     Part 308 on Requirements for Grants under the Title IX 
Economic Adjustment Program has been modified to incorporate program 
requirements and procedures described in EDA's annual Notice of Funding 
Availability 

[[Page 49671]]
and now more accurately describes the types of projects typically 
funded under the broad authority of Title IX. For Presidentially-
declared disasters, area eligibility criteria findings would be waived.
     Part 314 on Property Management Standards has been changed 
as follows:
     To specify the nature of a grantee's trustee interest in 
project property and EDA's retained reversionary interest.
     To cover personal property, including revolving loan 
funds, as well as real property.
     To cover the form and evidence of title required for real 
property under a project.
     To clarify the determination of the Federal share of 
property for which the Federal Government is to be compensated in case 
of misuse or disposition of project property during a project's 
estimated useful life.
     To clarify and simplify the procedure for allowing 
encumbrances of project property.
     To specify that EDA may approve a substitution of the 
grantee under a grant award.
     To remove unnecessary provisions and ambiguities in the 
current regulations.
     Part 315 on Certification and Adjustment Assistance for 
Firms has been substantially modified to reflect that this program has 
been scaled back since communities are no longer funded and loans are 
no longer made. Trade Adjustment Assistance Centers (TAACs) are 
described, including the role they play in the certification and 
adjustment assistance process.
     Part 317--Sections providing for the enforcement of Title 
VI have been modified to remove the mandatory submission of the 
Affirmative Action Plan, thereby reducing the paperwork burden on the 
applicant. The modification does not remove the authority to enforce 
Title VI.

Table of Changes

    The following distribution table lists all the changes to the 
regulations, including those discussed above.
     In the left column, the table lists the old sections in 13 
CFR Chapter III.
     In the middle column, the table lists new parts or 
sections that track the number and/or provisions of the regulations in 
the left column.
     In the right column, the table explains the changes from 
the old section in the left column to the new section in the middle 
column.

----------------------------------------------------------------------------------------------------------------
          Old section                    New section                         Description of change              
----------------------------------------------------------------------------------------------------------------
Part 301--Establishment and     Part 300--General Information  Renamed and redesignated.                        
 Organization.                                                                                                  
Subpart A--Introduction.......  .............................  Removed as unnecessary.                          
Sec.  301.1...................  Sec.  300.1..................  The new rule adds statement that unless otherwise
                                                                so stated, all parts describe requirements which
                                                                are based upon and subject to PWEDA.            
Sec.  301.2...................  Sec.  300.2..................  The new rule contains definitions of terms, used 
                                                                throughout the rule, unless otherwise provided. 
Subpart B--Description of       .............................  Removed as unnecessary since repeated elsewhere  
 Program Areas.                                                 in the rule.                                    
Subpart C--Description of       .............................  Removed as unnecessary.                          
 Organization.                                                                                                  
Sec.  301.30, Sec.  301.31....  Sec.  300.4..................  The new rule refers to EDA's annual FY NOFA for  
                                                                addresses and phone numbers of EDA's Washington,
                                                                D.C., Regional and EDR offices.                 
Secs.  301.34-301.36..........  .............................  Removed as unnecessary.                          
Subpart D--Disclosure of        .............................  Removed as unnecessary.                          
 Information to the Public.                                                                                     
Sec.  301.50..................  Sec.  316.8..................  The new rule redesignates this section.          
Subpart E--Information          .............................  Removed as unnecessary.                          
 Collection Requirements Under                                                                                  
 the Paperwork Reduction Act:                                                                                   
 OMB Control Numbers.                                                                                           
Sec.  301.70..................  Sec.  300.3..................  The new rule redesignates this section and       
                                                                updates for accuracy.                           
Part 302--Designation of Areas  Part 301--Designation of       Redesignated.                                    
                                 Areas.                                                                         
Subpart A--Standards for        Subpart A--Standards for       Redesignated.                                    
 Designation of Redevelopment    Designation of Redevelopment                                                   
 Areas Under Section 401(a) of   Areas Under Section 401(a)                                                     
 the Act.                        of the Act.                                                                    
Secs.  302.1-302.3............  Secs.  301.1-301.3...........  The new rule redesignates this section ad refers 
                                                                to PWEDA for area designations on the basis of  
                                                                unemployment, loss of population, and median    
                                                                family income.                                  
Secs.  302.4-302.5............  Secs.  301.4-301.5...........  The new rule redesignates this section. Refers on
                                                                EDA, not Assistant Secretary for area           
                                                                designations on the basis of American Indian    
                                                                lands and sudden rise in unemployment.          
Sec.  302.6...................  .............................  Removed since no longer in effect.               
Sec.  302.7...................  Sec.  301.6..................  The new rule redesignates this section and refers
                                                                to EDA, not Assistant Secretary.                
Sec.  302.8...................  Sec.  301.7..................  The new rule redesignates this section and refers
                                                                to EDA, not Assistant Secretary.                
Sec.  302.9...................  Sec.  301.8..................  The new rule redesignates, updates and removes   
                                                                unnecessary references.                         
Sec.  302.10..................  Sec.  301.9..................  The new rule redesignates this section.          
Sec.  302.11..................  Sec.  301.10.................  The new rule redesignates this section and refers
                                                                to EDA, not Assistant Secretary.                
Sec.  302.12..................  Sec.  301.11.................  The new rule redesignates this section which no  
                                                                longer repeats statutory language.              

[[Page 49672]]
                                                                                                                
Sec.  302.13..................  Sec.  301.12.................  The new rule redesignates this section and refers
                                                                to EDA, not Assistant Secretary. No longer cites
                                                                to old Sec.  302.6.                             
Subpart B--Limitations on       Subpart B--Limitations on      Redesignated.                                    
 Designation of Areas.           Designation of Areas.                                                          
Sec.  302.20..................  Sec.  301.13.................  The new rule redesignates this section. Refers to
                                                                EDA, not Assistant Secretary.                   
Sec.  302.21..................  Sec.  301.14.................  The new rule redesignates this section. Refers to
                                                                EDA, not Assistant Secretary.                   
Subpart C--Annual Review,       Subpart C--Modification of     Redesignated and renamed.                        
 Modification, and Termination   Designated Areas.                                                              
 of Designated Areas.                                                                                           
Sec.  302.40..................  Sec.  301.15.................  The new rule redesignates and streamlines this   
                                                                section. Refers to EDA, not Assistant Secretary.
Sec.  302.41..................  .............................  Removed as no longer in effect.                  
Subpart D--Notice.............  Subpart D--Notice............  Redesignated.                                    
Sec.  302.50..................  Sec.  301.16.................  The new rule redesignates and streamlines this   
                                                                section.                                        
Sec.  302.51..................  .............................  Removed as repetitive.                           
Subpart E--Information........  .............................  Removed as unnecessary.                          
Part 303--Economic Development  Part 302--Economic             Redesignated.                                    
 Districts.                      Development Districts.                                                         
Subpart A--Standards for        Subpart A--Standards for       Redesignated.                                    
 Designation, Modification and   Designation, Modification                                                      
 Termination of Economic         and Termination of Economic                                                    
 Development Districts.          Development Districts.                                                         
Sec.  Sec.  303.1-303.3.......  Sec.  Sec.  302.1-302.3......  The new rule redesignates and streamlines these  
                                                                sections and makes them easier to read. Refers  
                                                                to EDA, not Assistant Secretary.                
Sec.  303.4-1.................  Sec.  302.4..................  The new rule redesignates this section and       
                                                                deletes references to waiver and to Civil Rights
                                                                Guidelines.                                     
Sec.  303.4-2.................  .............................  Removed because it is no longer necessary as a   
                                                                matter of policy.                               
Sec.  303.4-3.................  Sec.  302.5..................  The new rule redesignates this section and       
                                                                deletes references to EDA components, certain   
                                                                civil rights requirements and outdated          
                                                                requirements.                                   
Sec.  303.5...................  Sec.  302.6..................  The new rule redesignates this section and no    
                                                                longer repeats statutory language.              
Sec.  303.6...................  Sec.  302.7..................  The new rule redesignates this section. Refers to
                                                                EDA, not Assistant Secretary.                   
Sec.  303.7...................  Sec.  302.8..................  The new rule redesignates and streamlines this   
                                                                section. Refers to EDA, not Assistant Secretary 
                                                                and deletes unnecessary references.             
Sec.  303.8...................  Sec.  302.9..................  The new rule redesignates this section and       
                                                                removes references to other parts of the        
                                                                regulations as unnecessary.                     
Subpart B--Standards for        Subpart B--Standards for       Redesignated.                                    
 Designation Modification, and   Designation, Modification,                                                     
 Termination of Economic         and Termination of Economic                                                    
 Development Centers.            Development Centers.                                                           
Sec.  Sec.  303.10-303.14.....  Sec.  Sec.  302.10-302.14....  The new rule redesignates these sections. Refer  
                                                                to EDA, not Assistant Secretary.                
Subpart C--Financial and Other  Subpart C--Financial and       Redesignated.                                    
 Assistance to Economic          Other Assistance to Economic                                                   
 Development Centers and         Development Centers and                                                        
 Districts.                      Districts.                                                                     
Secs.  303.20-303.25..........  Secs.  302.15-302.19.........  The new rule redesignates these sections. Refer  
                                                                to EDA, not Assistant Secretary and cite to new 
                                                                redesignated regulations.                       
Part 304--Overall Economic      Part 303--Overall Economic     Redesignated.                                    
 Development Program.            Development Program.                                                           
Sec.  304.1...................  Sec.  301.1..................  The new rule redesignates and streamlines this   
                                                                section to remove cites to other regulations as 
                                                                unnecessary.                                    
Sec.  304.2...................  Sec.  303.2..................  The new rule redesignates this section. It has   
                                                                been shortened and made easier to read.         
Sec.  304.3...................  Sec.  303.3..................  The new rule redesignates and shortens this      
                                                                section. References to Civil Rights Guidelines  
                                                                have been removed.                              
Sec.  304.4...................  Sec.  303.4..................  The new rule redesignates this section and makes 
                                                                it easer to read and use.                       
Secs.  304.5-304.6............  Sec.  303.5..................  The new rule redesignates this section. It       
                                                                combines two sections and removes unnecessary   
                                                                requirements.                                   
Secs.  304.7 and 304.9........  Sec.  303.6..................  The new rule redesignates this section. It       
                                                                combines two sections into a streamlined and    
                                                                easier to read section.                         
Sec.  304.8...................  .............................  Removed.                                         
                                Part 304--General Selection    The new rule adds part 304 which sets forth      
                                 Process and Evaluation         uniform selection procedures and general        
                                 Criteria.                      evaluation criteria for projects funded under   
                                                                PWEDA.                                          
Part 305--Public Works and      Part 305--Public Works and     The new rule streamlines and clarifies this part.
 Development Facilities          Development Facilities                                                         
 Program.                        Program.                                                                       

[[Page 49673]]
                                                                                                                
Subpart A--Direct and           Subpart A--General...........  Renamed.                                         
 Supplementary Grants for                                                                                       
 Public Works and Development                                                                                   
 Facilities.                                                                                                    
Sec.  305.1...................  Sec.  305.1..................  The new rule expands the purpose section to      
                                                                include the scope of public works projects in   
                                                                creating and retaining private sector jobs to   
                                                                alleviate unemployment and underemployment.     
Sec.  305.2...................  Sec.  305.2..................  The new rule is updated to include the Republic  
                                                                and Palau as an eligible applicant and states   
                                                                that private or public non-profts must represent
                                                                a redevelopment area or part thereof and the    
                                                                project must be located within an eligible EDA  
                                                                area represented by such non-profit.            
                                Sec.  305.3..................  The new rule describes eligibility requirements. 
Secs.  305.3-305.4............  Secs.  305.4 and 305.6.......  The new rule separates out statutory requirements
                                                                for regular public works and for public works   
                                                                impact program projects and places them in Sec. 
                                                                305.4 as project requirements. New Sec.  305.6  
                                                                contains evaluation criteria previously found in
                                                                annual fiscal year NOFAs and has been modified  
                                                                to encompass all types of projects under this   
                                                                program.                                        
                                Sec.  305.5..................  The new rule sets forth the selection process.   
                                Subpart B--Supplementary and   The new rule adds this subpart.                  
                                 Overrun Grants.                                                                
Sec.  305.5...................  Sec.  305.8..................  The new rule redesignates and streamlines this   
                                                                section to delete unnecessary narrative.        
Sec.  305.6...................  Sec.  305.9..................  The new rule redesignates this section. Refers to
                                                                EDA, not Assistant Secretary.                   
Sec.  305.7...................  .............................  Removed since program is no longer in effect.    
                                Sec.  305.7..................  The new rule adds this section on award          
                                                                requirements which have appeared in EDA's NOFA  
                                                                which indicates the length of time for a grant  
                                                                award under this program and matching local     
                                                                share requirements.                             
Sec.  305.8...................  Sec.  305.10.................  The new rule redesignates this section. Refers to
                                                                EDA, not Assistant Secretary.                   
Subpart B--Public Works         .............................  Removed since program is no longer in effect.    
 Development Facilities Loans.                                                                                  
Subpart C--Specific Types of    .............................  Removed since contained burdensome policy        
 Projects.                                                      requirements.                                   
Subpart D--Limitations........  .............................  Removed because some sections repeated           
                                                                requirements found elsewhere and others were    
                                                                based on restrictive policies.                  
Subpart E--Project Costs......  .............................  Removed because requirements were unnecessary and
                                                                repetitive.                                     
Subpart F--Disbursement of      .............................  Removed as unnecessary.                          
 Funds for Grant and Loan                                                                                       
 Projects.                                                                                                      
Secs.  305.81-305.85..........  .............................  Removed since program no longer is in effect.    
Secs.  305.86-305.87..........  Sec.  305.11.................  The new rule combines portions of these sections 
                                                                to provide greater flexibility and to update    
                                                                terminology for financial assistance award and  
                                                                references to EDA, not Assistant Secretary.     
Sec.  305.88..................  .............................  Removed as unnecessary.                          
Sec.  305.89..................  Sec.  305.12.................  The new rule redesignates this section.          
Subpart G--Servicing of Grant   .............................  Removed as unnecessary.                          
 and Loan Projects.                                                                                             
Secs.  305.91-305.95..........  .............................  Removed as unnecessarily repetitive.             
Sec.  305.96..................  Sec.  305.15.................  The new rule redesignates and retitles this      
                                                                section as ``Contract and Subcontract Clauses.''
                                                                The new rule refers to the Common Rule at 15 CFR
                                                                Part 24 and OMB Circular A-110 for required     
                                                                clauses.                                        
Sec.  305.97..................  .............................  Removed and merged into new Sec.  314.7.         
Sec.  305.98..................  Secs.  305.13-305.14.........  The new rule reformulates portions of the old    
                                                                rule and states that any changes made without   
                                                                prior approval by EDA are made at grantee's own 
                                                                risk of suspension or termination of the project
                                                                (Sec.  315.13); and a section on final          
                                                                inspection has been set out (Sec.  305.14).     
Sec.  305.99..................  .............................  Removed as unnecessarily repetitive.             
Sec.  305.100.................  .............................  Removed and merged into new Sec.  316.7.         
Part 306--Business Development  .............................  Removed since program is no longer in existence. 
 Program.                                                                                                       
Subpart A--Financial            .............................  Removed.                                         
 Assistance & Commercial                                                                                        
 Purposes.                                                                                                      
Subpart B--Project Closing and  .............................  Removed.                                         
 Servicing.                                                                                                     
Secs.  306.31-306.33..........  Sec.  316.7..................  The new rule redesignates, combines and renames  
                                                                these sections as ``Project Servicing'' to      
                                                                assure retention of EDA's monitoring and        
                                                                servicing of business development loans and     
                                                                guarantees. Refers to EDA, not Assistant        
                                                                Secretary.                                      

[[Page 49674]]
                                                                                                                
Part 307--Technical             Part 307--Local Technical      Renamed.                                         
 Assistance, Research, and       Assistance, University                                                         
 Information.                    Center Technical Assistance,                                                   
                                 National Technical                                                             
                                 Assistance, Research and                                                       
                                 Evaluation and Planning.                                                       
Subpart A--Technical            Subpart A--Local Technical     Renamed.                                         
 Assistance.                     Assistance; Subpart B--                                                        
                                 University Center Program;                                                     
                                 Subpart C--National                                                            
                                 Technical Assistance.                                                          
Secs.  307.1-307.2............  Secs.  307.1, 307.6 and        The new rule is divided into 3 subparts for      
                                 307.11.                        technical assistance (TA) with the purpose and  
                                                                scope of the local TA program stated in Sec.    
                                                                307.1; the purpose and scope of the university  
                                                                center program stated in Sec.  307.6 and the    
                                                                purpose and scope of the national TA program    
                                                                stated in Sec.  307.11.                         
Secs.  307.3, 307.4 and 307.6.  Secs.  307.4, 307.9 and        The new rule has a separate evaluation criteria  
                                 307.14.                        section for each of the three kinds of TA       
                                                                projects describing factors considered in       
                                                                choosing projects to be funded. Subpart A       
                                                                describes local TA programs, Subpart B describes
                                                                university center programs, and Subpart C       
                                                                describes national TA programs.                 
Sec.  307.5...................  Secs.  307.2, 307.7 and        The new rule in Subparts A-C described above     
                                 307.12.                        lists eligible applicants under each of the     
                                                                three TA programs.                              
                                Secs.  307.3, 307.8 and        The new rule in Subparts A-C described above     
                                 307.13.                        explains the selection process under each of the
                                                                three TA programs.                              
Secs.  307.7-307.9............  .............................  Removed because program is no longer in          
                                                                existence.                                      
Sec.  307.10..................  Secs.  307.5, 307.10 and       The new rule redesignates and renames these      
                                 307.15.                        sections as ``Award Requirements'' and          
                                                                streamlines requirements on local share,        
                                                                duration, etc.                                  
Secs.  307.11-307.17..........  .............................  Removed because repeats other authorities.       
Subpart B--Planning Grants and  Subpart E--Economic            Redesignated and renamed.                        
 Economic Growth Study Grants.   Development Districts,                                                         
                                 American Indian Tribes and                                                     
                                 Redevelopment Areas,                                                           
                                 Economic Development                                                           
                                 Planning Grants.                                                               
Secs.  307.21-307.22..........  Sec.  307.22.................  The new rule describes the purpose and scope of  
                                                                planning grants for administrative expenses.    
                                                                References to economic growth study grants have 
                                                                been removed.                                   
Sec.  307.23..................  .............................  Removed because program is no longer in          
                                                                existence.                                      
                                Sec.  307.23.................  The new rule adds a definition section describing
                                                                the two categories of planning grants for       
                                                                purposes of the EDA grant rate.                 
Sec.  307.24..................  Sec.  307.24.................  The new rule describes eligible applicants as    
                                                                economic development districts, redevelopment   
                                                                areas or parts thereof, American Indian tribes, 
                                                                organizations representing tribes, the Republics
                                                                of Palau, Marshall Islands, the Commonwealths of
                                                                Puerto Rico, and Northern Marianna Islands, the 
                                                                Federated States of Micronesia, U.S. Virgin     
                                                                Islands, American Samoa and Guam.               
Sec.  307.25..................  Secs.  307.27-307.28.........  The new rule sets forth award requirements and   
                                                                limitations.                                    
Secs.  307.26-307.27..........  .............................  Removed because repeated other authorities and   
                                                                referred to program no longer in existence.     
                                Sec.  307.25.................  The new rule describes the selection process     
                                                                including those having to do with an overall    
                                                                economic development program (OEDP).            
Sec.  307.28..................  Sec.  307.26.................  The new rule sets forth EDA's evaluation criteria
                                                                using some elements in old rule.                
Sec.  307.29..................  .............................  Removed as unnecessary.                          
Subpart C--Study, Training,     Subpart D--Research and        Redesignated and renamed.                        
 and Research Program.           Evaluation.                                                                    
Secs.  307.41-307.42..........  Sec.  307.16.................  The new rule describes the purpose and scope of  
                                                                research and evaluation grants and cooperative  
                                                                agreements.                                     
                                Sec.  307.17.................  The new rule describes eligible applicants.      
                                Sec.  307.18.................  The new rule describes the selection process.    
                                Sec.  307.19.................  The new rule describes the evaluation criteria.  
                                Sec.  307.20.................  The new rule describes research topics and       
                                                                structure.                                      
                                Sec.  307.21.................  The new rule describes award requirements.       
Secs.  307.43-307.44..........  .............................  Removed because repeated portions of the Act.    
Subpart D--State and Local      Subpart F--State and Urban     Redesignated and renamed.                        
 Economic Planning Grants.       Economic Development                                                           
                                 Planning Grants.                                                               
Secs.  307.50-307.51..........  Sec.  307.29.................  The new rule describes the purpose and scope of  
                                                                state and urban economic planning grants.       
Secs.  307.53 and 307.55......  Sec.  307.32.................  The new rule sets forth evaluation criteria for  
                                                                these planning grants using some elements in the
                                                                old rule.                                       
Sec.  307.52..................  Sec.  307.30.................  The new rule describes eligible applicants as    
                                                                governors of states, chief executive officers of
                                                                cities or designated entities and counties, and 
                                                                sub-state planning and development              
                                                                organizations.                                  

[[Page 49675]]
                                                                                                                
Sec.  307.54..................  Sec.  307.31.................  The new rule sets forth EDA's selection process  
                                                                for this planning program, modifying the old    
                                                                rule.                                           
Sec.  307.56..................  Sec.  307.33.................  The new rule describes award requirements for    
                                                                planning grants including the duration of grants
                                                                and local share match requirements.             
Secs.  307.57-307.59..........  .............................  Removed as unnecessary.                          
Part 308--Special Economic      Part 308--Requirements for     The new rule renames, streamlines, and clarifies 
 Development and Adjustment      Grants Under the Title IX      this part.                                      
 Assistance Grants.              Economic Adjustment Program.                                                   
Subpart A--Requirements for     .............................  Removed.                                         
 Adjustment Grants Under Title                                                                                  
 IX.                                                                                                            
Sec.  308.1...................  Sec.  308.1..................  The new rule is more detailed in describing      
                                                                various components of the purpose and scope of  
                                                                economic adjustment programs, most of which was 
                                                                in EDA's annual NOFA.                           
Secs.  308.2-308.3............  Sec.  308.3..................  The new rule describes eligible applicants under 
                                                                the economic adjustment program.                
Sec.  308.4...................  Sec.  308.4..................  The new rule is revised to describe eligibility  
                                                                criteria for areas wishing to receive economic  
                                                                adjustment grants. The new rule is more concise 
                                                                and easier to read and use.                     
Sec.  308.5 and Subpart B--     Sec.  308.2..................  The new rule redesignates this section and       
 Specific Uses of Grants to                                     subpart and describes how funds under this      
 Carry out Economic Adjustment.                                 program can be used.                            
                                Sec.  305.5..................  The new rule sets forth the selection process for
                                                                economic adjustment grants.                     
Sec.  308.6...................  .............................  Removed as unnecessary.                          
                                Sec.  308.6..................  The new rule sets forth evaluation factors used  
                                                                by EDA in selecting projects for economic       
                                                                adjustment funding. Such factors have been      
                                                                published in EDA's annual fiscal year NOFAs.    
Subpart C--Reports............  .............................  Removed as unnecessary.                          
                                Sec.  308.7..................  The new rule sets forth award requirements for   
                                                                adjustment assistance grants, including matching
                                                                share and reporting requirements.               
Part 309--General Requirements  Part 316--General              Redesignated.                                    
                                 Requirements.                                                                  
Sec.  309.0...................  .............................  Removed as unnecessary.                          
Sec.  309.1...................  Sec.  316.2..................  The new rule redesignates this section. The new  
                                                                rule updates procedures for certification from  
                                                                EPA as to waste treatment, since many states    
                                                                have been delegated authority by EPA to make    
                                                                such certifications. EDA can in those instances 
                                                                rely on such state certifications.              
Sec.  309.2...................  Sec.  316.3..................  The new rule redesignates this section and       
                                                                renames it as ``Excess Capacity''. It           
                                                                streamlines and clarifies to describe a more    
                                                                efficient method for making Section 702 findings
                                                                under the Act and includes additional categories
                                                                of exemptions from doing reports and studies    
                                                                based upon the nature of the goods and services 
                                                                to be produced, the nature of the EDA           
                                                                assistance, and market conditions.              
Sec.  309.3...................  Sec.  316.4..................  The new rule redesignates this section. It       
                                                                greatly simplifies EDA's nonrelocation          
                                                                requirement and applies only to firms relocating
                                                                before the EDA grant award.                     
Sec.  309.4...................  Sec.  316.5..................  The new rule redesignates this section.          
                                                                Exemptions have been added concerning electric  
                                                                and gas energy.                                 
Secs.  309.5-309.14...........  .............................  Removed as unnecessarily repetitive.             
Secs.  309.15, 309.18 and       Sec.  316.1..................  The new rule redesignates this section and lists 
 315.3(c).                                                      major environmental requirements noting that the
                                                                list will be supplemented and modified as       
                                                                applicable in EDA's annual fiscal year NOFAs.   
Secs.  309.16-309.17..........  .............................  Removed as unnecessary.                          
Sec.  309.19..................  Sec.  316.9..................  The new rule redesignates this section. It does  
                                                                not make any substantive changes.               
Secs.  309.20.................  Part 317--Civil Rights.......  The new rule redesignates and streamlines this   
                                                                section, clarifying EDA's civil rights          
                                                                requirements.                                   
Secs.  309.21-309.24..........  .............................  Removed since no longer in effect.               
Sec.  309.25..................  Sec.  316.6..................  The new rule redesignates this section. Refers to
                                                                EDA, not Assistant Secretary.                   
Secs.  309.26-309.29..........  .............................  Removed as unnecessarily repetitive.             
Part 310-Relocation Assistance  .............................  Removed as unnecessarily repetitive.             
 and Land Acquisition Policies.                                                                                 
Part 311--Civil Rights          Part 317--Civil Rights.......  The new rule redesignates this part, streamlining
 Requirements on EDA Assisted                                   and clarifying EDA's civil rights requirements. 
 Projects and 315.5(b).                                                                                         
Part 312--Supplemental and      Part 312--Supplemental and     The new rule streamlines and clarifies this part.
 Basic Assistance Under          Basic Assistance Under                                                         
 Section 304 of the Act.         Section 304 of the Act.                                                        
Secs.  312.1-312.2............  .............................  Removed as unnecessary and outdated.             
Sec.  312.3...................  Secs.  312.1 and 312.4.......  The new rule states the purpose and scope of     
                                                                supplemental and basic assistance under Section 
                                                                302 of PWEDA (Sec.  312.1) and award            
                                                                requirements, including local share match (Sec. 
                                                                312.4).                                         

[[Page 49676]]
                                                                                                                
Secs.  312.4-312.5............  Secs.  312.2-312.3...........  The new rules remove references to business loan 
                                                                programs under Title II of the Act, since such  
                                                                programs have not been appropriated funds over  
                                                                the past several years, and they refer to EDA,  
                                                                not the Assistant Secretary.                    
Sec.  312.6...................  Sec.  312.5..................  The new rule redesignates this section. The new  
                                                                rule on construction management deletes         
                                                                references to Title II of the Act.              
Sec.  312.7...................  Sec.  312.6..................  The new rule redesignates this section. The new  
                                                                rule on conditions for disbursements has been   
                                                                updated to delete references to Title II of the 
                                                                Act (see above) and to refer to EDA, not        
                                                                Assistant Secretary.                            
Part 313--Job Opportunities     .............................  Removed as no longer in effect.                  
 Program.                                                                                                       
Part 314--Property Management   Part 314--Property Management  The new rule streamlines and clarifies this part.
 Standards.                      Standards.                                                                     
Subpart A--Real Property......  .............................  Removed.                                         
Sec.  314.1...................  Sec.  314.1..................  The new rule begins the property management      
                                                                standards part by setting forth the Federal     
                                                                interest and applicability of this part to only 
                                                                grants and cooperative agreements.              
Sec.  314.2...................  Sec.  314.2..................  The new rule contains definitions not found in   
                                                                the current rule, and removes some that are no  
                                                                longer applicable. For example, personal        
                                                                property and estimated useful life are included 
                                                                and defined.                                    
Sec.  314.3...................  Sec.  314.3..................  The new rule covers real and personal property   
                                                                and is streamlined to read clearly in setting   
                                                                forth authorized use requirements.              
Sec.  314.4...................  Secs.  314.4 and 314.5.......  The new rule on unauthorized use of real and     
                                                                personal property has been streamlined and      
                                                                simplified and includes reference to EDA, not   
                                                                the Assistant Secretary (Sec.  314.4); and the  
                                                                rule on valuation has been expanded to a        
                                                                separate section on the Federal share which     
                                                                covers leasehold situations, transfer of        
                                                                property and the end of EDA's interests in the  
                                                                ownership, use or disposition of the property.  
Sec.  314.5...................  Sec.  314.6..................  The new rule redesignates this section and       
                                                                renames it as ``Encumbrances''. The new rule has
                                                                been clarified and streamlined in describing    
                                                                situations involving encumbrances, including    
                                                                waivers.                                        
                                Sec.  314.7..................  The new rule sets forth title requirements.      
Sec.  314.6...................  Secs.  314.8 and 314.9.......  The new rule is divided into separate subparts   
                                                                for real and personal property. Sec.  314.8 sets
                                                                forth requirements for recording statements for 
                                                                projects involving acquisition construction or  
                                                                improvement of a building; and Sec.  314.9 does 
                                                                the same for the acquisition or improvement of  
                                                                significant items of tangible items of personal 
                                                                property.                                       
                                Sec.  314.10.................  The new rule sets forth specific requirements for
                                                                revolving loan funds (RLFs).                    
Subpart B--(Reserved).........  .............................  Removed as unnecessary.                          
Subpart C--Excess Property      .............................  Removed as no longer in effect.                  
 Sec.  314.50.                                                                                                  
Part 315--Certification and     Part 315--Certification and    The new rule streamlines and clarifies this part 
 Adjustment Assistance for       Adjustment Assistance for      and subpart.                                    
 Firms and Communities.          Firms and Communities.                                                         
Subpart A--General Provisions.  Subpart A--General Provisions                                                   
Sec.  315.1...................  Sec.  315.1..................  The new rule describes the updated purpose and   
                                                                scope of EDA's role in the certification and    
                                                                adjustment assistance for firms under Chapter 3 
                                                                of Title II of the Trade Act of 1974, as        
                                                                amended.                                        
Secs.  315.2, 315.29, 315.53..  Sec.  315.2..................  The new rule's definitions section for Trade Act 
                                                                certifications and adjustment assistance        
                                                                cooperative agreements, has been expanded to    
                                                                include significant words or phrases in this    
                                                                part.                                           
Sec.  315.3(a)................  .............................  Removed as not applicable.                       
Subpart B--Certification of     Subpart B--Trade Adjustment    Renamed.                                         
 Eligibility of Firms to Apply   Assistance Centers.                                                            
 for Adjustment Assistance.                                                                                     
Secs.  315.20-315.23(a)(b)....  .............................  Removed as no longer in effect.                  
Sec.  315.23(c)...............  Sec.  315.3..................  The new rule streamlines and clarifies           
                                                                requirements concerning submission of           
                                                                information which a firm seeks to designate as  
                                                                confidential business information.              
                                Sec.  315.4..................  The new rule describes eligible applicants under 
                                                                EDA's Trade Act Program.                        
                                Sec.  315.5..................  The new rule describes EDA's selection process,  
                                                                much of which was published in EDA's annual FY  
                                                                NOFA.                                           
Secs.  315.23 (d)-(f)-315.24,   Sec.  315.10.................  The new rule sets forth requirements for         
 315.30.                                                        processing petitions for certification,         
                                                                including acceptance, withdrawal and            
                                                                investigations.                                 
Secs.  315.25-315,27, 315.31..  Sec.  315.11.................  The new rule sets forth requirements for appeals 
                                                                and final determinations.                       
Sec.  315.28..................  Sec.  315.9..................  The new rule redesignates and renames this       
                                                                section as ``Certification Requirements''. It   
                                                                has been streamlined and made easier to read and
                                                                understand.                                     

[[Page 49677]]
                                                                                                                
Subpart C--Adjustment           Subpart C--Certification of    Renamed.                                         
 Assistance for Firms.           Firms.                                                                         
Secs.  315.51-315.52..........  Sec.  315.6..................  The new rule describes evaluation criteria for   
                                                                TAACs, firms and organizations representing     
                                                                trade-injured industries.                       
Sec.  315.54(d)...............  Sec.  315.7..................  The new rule sets forth award requirements which 
                                                                include duration of awards and matching share   
                                                                requirements.                                   
Secs.  315.54 (b)(1) and (c)..  Sec.  315.8..................  The new rule describes the purpose and scope of  
                                                                TAACs.                                          
Sec.  315.32..................  Sec.  315.12.................  The new rule redesignates and renames this       
                                                                section as ``Termination of Certification and   
                                                                Procedure.'' It is streamlined and refers to    
                                                                EDA, not Deputy Assistant Secretary for         
                                                                Planning.                                       
Sec.  315.54 (a), (b)(2)......  .............................  Removed as no longer in effect.                  
Secs.  315.55-315.66..........  .............................  Removed as no longer in effect.                  
Subpart D--Study of Firms in    Subpart D--Assistance to       Renamed.                                         
 an Industry Which is the        Industries.                                                                    
 Subject of an Investigation                                                                                    
 of Injury or Threat of Injury                                                                                  
 by the International Trade                                                                                     
 Commission.                                                                                                    
Sec.  315.80..................  .............................  Removed as no longer in effect.                  
                                Sec.  315.13.................  The new rule describes loss of certification     
                                                                benefits.                                       
Sec.  315.81..................  Sec.  315.14.................  The new rule redesignates and renames this       
                                                                section as ``Assistance to Firms in Import-     
                                                                impacted Industries.'' It has been updated to   
                                                                refer to section 202(B) of the Trade Act and to 
                                                                clearly describe industry assistance            
                                                                limitations.                                    
Subpart E--Certification of     .............................  Removed as no longer in effect.                  
 Eligibility of Communities to                                                                                  
 Apply for Adjustment                                                                                           
 Assistance and Subpart F--                                                                                     
 Adjustment Assistance for                                                                                      
 Communities.                                                                                                   
Part 316--Local Public Works    .............................  Removed as no longer in effect.                  
 Capital Development and                                                                                        
 Investment Program.                                                                                            
                                Sec.  316.7..................  The new rule sets forth loan and loan guarantee  
                                                                servicing procedures.                           
                                Sec.  316.10.................  The new rule sets forth additional requirements, 
                                                                policies and procedures applicable to EDA       
                                                                programs.                                       
Part 317--Round II of the       .............................  Removed as no longer in effect.                  
 Local Public Works Capital                                                                                     
 Development and Investment                                                                                     
 Program.                                                                                                       
Part 318--Community Emergency   .............................  Removed as no longer in effect.                  
 Drought Relief Program Secs.                                                                                   
 318.1-318.23 and 318.25.                                                                                       
Sec.  318.24..................  .............................  Removed and merged with new Sec.  316.7.         
----------------------------------------------------------------------------------------------------------------



Savings Clause

    The rights, duties, and obligations of all parties pursuant to 
parts, sections and portions thereof of the Code of Federal Regulations 
removed by this rule shall continue in effect.

Executive Order 12866

    This interim-final rule has been determined to be significant for 
purposes of E.O. 12866.

Notice and Comment

    This rule is not subject to the rulemaking requirements of 5 U.S.C. 
553 because it relates to public property, loans, grants, benefits and 
contracts, 5 U.S.C. 553(c)(2), including the provision of prior notice 
and an opportunity for public comment and delayed effective date.
    No other law requires that notice and opportunity for comment be 
given for this rule.
    However, because the Department is interested in receiving comments 
from those who will benefit from the amendments, this rule is being 
issued as interim final. Public comments on the interim final rule are 
invited and should be sent to the address or numbers listed in the 
ADDRESSES and FOR FURTHER INFORMATION CONTACT sections above.
    Comments received by November 27, 1995 will be considered in 
promulgating a final rule.

Regulatory Flexibility Act

    Since notice and an opportunity for comment are not required to be 
given for the rule under 5 U.S.C. 553 or any other law, under sections 
603(a) and 604(a) of the Regulatory Flexibility Act (5 U.S.C. 601-612) 
no initial or final Regulatory Flexibility Analysis is required, and 
none has been prepared.

Paperwork Reduction Act

    This rule contains new information collection or recordkeeping 
requirements under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 
et seq.) pending approval of the Office of Management and Budget.

E.O. 12612

    This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism Assessment under 
Executive Order 12612.

List of Subjects

13 CFR Part 300

    Reporting and recordkeeping requirements.

13 CFR Part 301

    Community development.

13 CFR Part 302

    Community development; Grant programs-community development; Loan 
programs-business; Loan programs-community development; Technical 
assistance. 

[[Page 49678]]


13 CFR Part 303

    Community development; Reporting and recordkeeping requirements.

13 CFR Part 304

    Selection and evaluation.

13 CFR Part 305

    Community development; Community facilities; Grant programs-
community development; American Indians.

13 CFR Part 307

    Business and industry; Community development; Grant programs--
business; Grant programs--community development; American Indians; 
Research; Technical assistance.

13 CFR Part 308

    Business and industry; Community development; Community facilities; 
Grant programs--business; Grant programs--community development; 
American Indians; Manpower training programs; Mortgages; Relocation 
assistance; Rent subsidies; Reporting and recordkeeping requirements; 
Research; Technical assistance; Unemployment compensation.

13 CFR Part 312

    Community development; Grant programs--community development.

13 CFR Part 314

    Community development; Grant programs--community development.

13 CFR Part 315

    Administrative practice and procedure; Community development; Grant 
programs--business; Technical assistance; Trade adjustment assistance.

13 CFR Part 316

    Community development; grant programs--community development; 
Freedom of information; Uniform Relocation Act.

13 CFR Part 317

    Civil rights; sex discrimination.

    For the reasons set forth in the preamble, 13 CFR Chapter III is 
revised to read as follows:

CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF 
COMMERCE

Part

300  General Information
301  Designation of Areas
302  Economic Development Districts
303  Overall Economic Development Program
304  General Selection Process and Evaluation Criteria
305  Public Works and Development Facilities Program
306  [Reserved]
307  Local Technical Assistance, University Center Technical 
Assistance, National Technical Assistance, Research and Evaluation 
and Planning
308  Requirements for Grants Under the Title IX Economic Adjustment 
Program
309  [Reserved]
310  [Reserved]
311  [Reserved]
312  Supplemental and Basic Under Section 304 of the Act
313  [Reserved]
314  Property Management Standards
315  Certification and Adjustment Assistance for Firms
316  General Requirements for Financial Assistance
317  Civil Rights
318  [Reserved]

PART 300--GENERAL INFORMATION

Sec.
300.1  Purpose.
300.2  Definitions.
300.3  OMB control numbers.
300.4  Economic Development Administration--Washington, D.C., 
Regional Offices and Economic Development Representatives.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Department of Commerce Organization Order 10-4, as amended 
(40 FR 56702, as amended).


Sec. 300.1   Purpose.

    The purpose of the Public Works and Economic Development Act of 
1965, as amended, (PWEDA) as administered by the Economic Development 
Administration (EDA), is to provide assistance in economically 
distressed areas, regions and communities in order to alleviate 
conditions of substantial and persistent unemployment and 
underemployment and to establish stable and diversified economies 
subject to PWEDA. Unless otherwise stated in this Chapter, all parts 
describe requirements which are based upon and subject to PWEDA.


Sec. 300.2   Definitions.

    Unless otherwise defined in other parts or sections of this 
chapter, the terms listed below are defined as follows:
    Act and PWEDA are used interchangeably to mean the Public Works and 
Economic Development Act of 1965, as amended. (Pub. L. 89-136, 42 
U.S.C. 121 et seq.)
    Alaskan Native Village means:
    (1) A town or village site occupied and used by natives of Alaska-
American Indians, Eskimos, and Aleuts under the Native Townsite Act of 
1926;
    (2) Native villages under the Alaska Native Claims Settlement Act 
and any contiguous corporate boundary adjustments under the state laws 
of Alaska; and
    (3) Such additional lands as are authorized to be included under 
the Pub. L. 92-203, sec 2, Dec. 18, 1971, 85 Stat. 688, 43 U.S.C. 1601.
    Community Development Corporation means an entity as defined in the 
Community Economic Development Act of 1981, 42 U.S.C. 9802; i.e., 
Community Development Corporations receiving financial assistance under 
authority of the Community Assistance Block Grant Act, as amended, 42 
U.S.C. 9815.
    Cooperative agreement, grant, financial assistance award, financial 
assistance grant, offer of grant and grant award all refer to the non-
procurement award of EDA funds to an eligible entity under PWEDA or the 
Trade Act, as applicable.
    District, Economic Development District or EDD means a geographic 
area consisting of one or more redevelopment areas as defined under 
PWEDA and designated in accordance with part 302 of this chapter.
    EDA means the Economic Development Administration when a place or 
agency is intended; or it means the Assistant Secretary of Commerce for 
Economic Development or his/her designee when a person is intended.
    Growth Center means either an Economic Development Center (EDC), 
which is a geographic area located outside an EDA designated area, 
containing a population of 250,000 or less and identified in an OEDP as 
having growth potential and the ability to alleviate distress within 
the EDD; or a Redevelopment Center, which is a geographic area located 
within a designated redevelopment area identified in an OEDP as having 
growth potential and the ability to alleviate distress within the EDD.
    American Indian Tribe means the governing body of a tribe, non-
profit American Indian corporation (restricted to American Indians); 
American Indian authority or other tribal organization or entity or 
Alaskan Native Village.
    Local share, matching share or local share match are used 
interchangeably to mean non-Federal funds or goods and services from 
recipients or third parties, and includes funds from other Federal 
agencies only if there is statutory authority allowing such use.
    OEDP means an Overall Economic Development Program, (or plan of 
action) pertaining to an area or district.
    Project means the activity or activities whose purpose fulfills EDA 
program requirements and which is funded in whole or in part by EDA.
    Proposed District means a geographic entity composed of one or more 


[[Page 49679]]
designated redevelopment areas represented by an entity seeking 
designation as an EDD.
    Public Works and Development Facility means a project funded under 
Title I of the Act.
    Recipient, grantee, and awardee are used interchangeably to mean an 
entity accepting funds from EDA under PWEDA or the Trade Act, as 
applicable and includes any EDA approved successor to such recipient. 
Similarly, subawardee, subgrantee and subrecipient are also used 
interchangeably.
    The Trade Act means Chapter 3, Title II of the Trade Act of 1974, 
as amended (19 U.S.C. 2341 et seq.).


Sec. 300.3   OMB control numbers.

    (a) This table displays control numbers assigned to EDA's 
information collection requirements by the Office of Management and 
Budget (``OMB'') pursuant to the Paperwork Reduction Act of 1980, Pub. 
L. 96-511. EDA intends that this table comply with Section 3507(f) of 
the Paperwork Reduction Act, requiring agencies to display a current 
control number assigned by the Director of OMB for each agency 
information collection requirement.
    (b) Control Number Table:

------------------------------------------------------------------------
                                                            Current OMB 
  13 CFR part or section where identified and described     control No. 
------------------------------------------------------------------------
Part 305................................................       0610-0011
                                                               0610-0092
Part 308................................................       0610-0058
                                                               0610-0092
Part 315................................................       0610-0091
Sec. 316.4..............................................       0610-0082
Sec. 312.5..............................................       0610-0011
------------------------------------------------------------------------

Sec. 300.4  Economic Development Administration--Washington, D.C., 
Regional Offices and Economic Development Representatives.

    For addresses and phone numbers of the Economic Development 
Administration in Washington, D.C., its Regional and Field Offices and 
Economic Development Representatives, refer to EDA's annual FY NOFA.

PART 301--DESIGNATION OF AREAS

Subpart A--Standards for Designation of Redevelopment Areas Under and 
Subject to Section 401(a) of the Act

Sec.
301.1  Designation on the basis of unemployment.
301.2  Designation on the basis of loss of population.
301.3  Designation on the basis of median family income.
301.4  Designation on the basis of American Indian lands.
301.5  Designation on the basis of sudden rise in unemployment.
301.6  Designation of public works impact program areas.
301.7  Designation of special impact areas.
301.8  Recognition of redevelopment areas designated under the 
Community Economic Redevelopment Act of 1981, as amended.
301.9  Designation on the basis of per capita employment.
301.10  Designation on the basis of substantial unemployment and the 
national average rate of unemployment.
301.11  Designation on the basis of long-term economic 
deterioration.
301.12  Exception to criteria for qualification.

Subpart B--Limitations on Designation of Areas

301.13  Limitations with respect to the size and boundaries of 
redevelopment areas.
301.14  Receipt of an acceptable OEDP.

Subpart C--Modification of Designated Areas

301.15  Adjustment of boundaries.

Subpart D--Notice

  301.16  Notification of public officials.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Department of Commerce Organization Order 10-4, as amended 
(40 FR 56702, as amended).

Subpart A--Standards for Designation of Redevelopment Areas Under 
and Subject to Section 401(a) of the Act


Sec. 301.1  Designation on the basis of unemployment.

    On the basis of labor force data on unemployment supplied by the 
Secretary of Labor, EDA shall designate such redevelopment areas in 
accordance with section 401(a) of the Act.


Sec. 301.2  Designation on the basis of loss of population.

    Such designation shall be made in accordance with section 401(a) of 
the Act, 42 U.S.C. 3161.


Sec. 301.3  Designation on the basis of median family income.

    Such designation shall be made in accordance with section 401(a) of 
the Act.


Sec. 301.4  Designation on the basis of American Indian lands.

    (a) EDA shall designate as Redevelopment Areas those American 
Indian reservations, American Indian trust land areas, and restricted 
American Indian-owned land areas, including Alaskan Native Villages, 
which manifest the greatest degree of economic distress.
    (1) American Indian reservations shall consist of land areas which 
by official Federal or State action or recognition have been reserved 
for the use and benefit of a specific American Indian tribe or tribes, 
and shall include those lands to which the Federal or State Government 
retains title and may include tribally-owned lands, lands allotted to 
individual tribal members, and interspersed land belonging to non-
American Indians.
    (2) American Indian trust land areas shall consist of land areas 
held in trust by or under the authority of Federal or State Government 
for use and occupancy by American Indians.
    (3) Restricted American Indian-owned land areas shall consist of 
land areas owned by American Indian tribes, but subject to restrictions 
on alienation or use imposed by Federal or State Governments.
    (b) EDA shall make such designations of Redevelopment Areas upon 
consultation with the Secretary of Interior or an appropriate State 
agency and on the basis of unemployment and income statistics and other 
appropriate evidence of economic underdevelopment.
    (c) EDA, upon consultation with the Secretary of Interior or an 
appropriate State agency, may designate uninhabited Federal or State 
American Indian reservations or trust or restricted American Indian-
owned land areas where such designation would permit assistance to 
American Indian tribes, with a direct beneficial effect on the economic 
well-being of American Indians.
    (d) When the determination of economic distress pertains to land 
areas that are not contiguous, it must be shown that there is a clear 
economic connection between the noncontiguous land areas that will 
contribute to a more effective economic development program for the 
area.


Sec. 301.5  Designation on the basis of sudden rise in unemployment.

    Such designation can be made under the Act when the following 
conditions are met:
    (a) Where the loss, removal, curtailment, or closing of the major 
source of employment has occurred provided that:
    (1) The major source of employment shall be construed as a single 
firm or industry; or
    (2) Job losses in more than a single firm or in more than in a 
single industry may be considered in the aggregate where:
    (i) There is a clear demonstrable economic connection between or 
among the firms or industries; or 

[[Page 49680]]

    (ii) More than one firm or industry has been affected by a common 
disaster.
    (3) A major source of employment is when its loss, removal, 
curtailment, or closing has caused or can reasonably be expected to 
cause:
    (i) An increase of 500 or more of unemployed persons in the area; 
or
    (ii) An increase of 2 percentage points or more in the area's 
unemployment rate, based on the relationship of actual or expected 
additional unemployed to the number of persons in the area's labor 
force.
    (b) Where there is an actual or threatened closing of a major 
source of employment within 3 years after the date of the area's 
request provided that:
    (1) The rise in unemployment must be shown to be unusual or unique 
for the area, the industry, and the time of year; and
    (2) Such rise must have occurred or be reasonably expected to occur 
during a 1-year period within the qualifying span of 3 years before to 
3 years after the date of the request for designation.
    (c) The area's unemployment rate can reasonably be expected to 
exceed the national average by 50 percent or more, except for those 
job-loss situations in which it is public knowledge that the jobs lost 
were or will be of a type in such great demand that the persons laid 
off were or will be readily reemployable.
    (d) Areas designated under this section are allowed a reasonable 
time after designation to submit an acceptable OEDP to EDA. An area 
designated under this section which does not have an approved OEDP is 
not eligible for financial assistance under Title I of the Act.


Sec. 301.6  Designation of public works impact program areas.

    (a) EDA shall designate communities or neighborhoods defined 
without regard to political or other subdivisions or boundaries as a 
public works impact program (PWIP) area, when it determines one of the 
following conditions have been met by the defined area in its entirety.
    (1) A large concentration of low income persons. This includes:
    (i) An area selected for assistance under the Community Economic 
Development Act of 1981, as amended (42 U.S.C. 9815), Title VI, Chapter 
8, Subchapter A of the Omnibus Budget Reconciliation Act of 1981 (Pub. 
L. 97-35); or
    (ii) An area in which the majority of the families are living in 
poverty, as defined by the U.S. Department of Health and Human Services 
guidelines, as published each year in the Federal Register.
    (2) Rural areas having substantial outmigration. This includes an 
area which has experienced a minimum outmigration rate of at least 25 
percent during the period from the beginning to the end of the most 
recent 10-year census period for which data is available.
    (3) Substantial unemployment as established by an annual average 
unemployment rate of 8.5 percent or more during the most recent quarter 
for which such data is available.
    (4) An actual or threatened abrupt rise of unemployment due to the 
closing or curtailment of a major source of employment. The area must 
meet the qualifications as set forth in paragraphs (a)-(d) of 
Sec. 301.5. Although no boundary constraints, as set forth in 
Sec. 301.13, shall apply, the area for which designation is sought must 
be one for which EDA can obtain data establishing its eligibility for 
designation.
    (b) No PWIP area designated under this section shall be eligible to 
be considered a redevelopment area for the purposes of district 
designation.


Sec. 301.7  Designation of special impact areas.

    EDA shall designate special impact areas where:
    (a) One of the following criteria have been met:
    (1) There are large concentration of low-income persons. This 
includes:
    (i) An area presently selected for assistance by the Department of 
Health and Human Services under the Community Economic Development Act 
of 1981, as amended (42 U.S.C. 9815), (Title VI, Chapter 8, Subchapter 
A of the Omnibus Budget Reconciliation Act of 1981 (Pub. L. 97-35); or
    (ii) An area in which a majority of the families are living in 
poverty as defined by the Department of Health and Human Services 
guidelines as published each year in the Federal Register.
    (2) Rural Areas having substantial outmigration. This includes any 
area which has experienced a minimum outmigration rate of at least 25 
percent during the most recent 10-year period as established by the 
Bureau of the Census.
    (3) An area of substantial unemployment, meaning one which:
    (i) Experienced an average unemployment rate at least 50 percent 
higher than the U.S. average unemployment rate for the most recent 12-
month period for which data are available; or
    (ii) Is currently experiencing an unemployment rate at least 100 
percent higher than the U.S. average unemployment rate.
    (4) An area which has or is threatened with an abrupt rise in 
unemployment due to the closing or curtailment of a major source of 
employment, and which has or can reasonably be expected to have an 
unemployment rate 100 percent or more above the national average.
    (b) Written requests have been submitted by State or local 
governments, agencies or instrumentalities thereof, or with the 
concurrence of the appropriate governmental authority of the political 
subdivision of which the area is a part, by any public or private non-
profit organization or association representing the area for which 
designation is sought. Requests should contain the following material:
    (1) A description of the proposed boundary and facility 
characteristics of the proposed special impact area including a map 
showing the relation to the larger area to which it is a part. Such 
description should show consistency with area wide zoning ordinances 
and appropriate land use plans;
    (2) A description of the socioeconomic characteristics of the 
proposed special impact area;
    (3) An OEDP; and
    (4) Written evidence of support from members of the community at 
large.
    (c) No special impact area designated under this section shall be 
eligible to be considered a redevelopment area for the purposes of 
district designation.


Sec. 301.8  Recognition of redevelopment areas designated under the 
Community Economic Redevelopment Act of 1981, as amended.

    Areas selected for assistance under the Community Economic 
Development Act of 1981, as amended (42 U.S.C. 9815) will be deemed 
redevelopment areas within the meaning of section 401 of the Act.


Sec. 301.9  Designation on the basis of per capita employment.

    EDA shall designate as redevelopment areas those areas which have 
suffered a significant decline in per capita employment of more than 
1.2 percentage points from the beginning to the end of the most recent 
10-year census period for which data is available and has had net 
outmigration during the same period, as determined by the most 
currently available census data.


Sec. 301.10  Designation on the basis of substantial unemployment and 
the national average rate of unemployment.

    (a) EDA shall designate as a redevelopment area any area for which 
the Secretary of Labor has provided labor force data showing that: 

[[Page 49681]]

    (1) The area has experienced a substantial average unemployment 
rate over a 24-month period; and
    (2) The area has experienced an average 24-month unemployment rate 
for the most recent 24-month period for which data are available which 
was above the national 24-month average unemployment rate for the same 
period.
    (b) The Secretary of Labor shall provide the unemployment data for 
use by EDA in designating redevelopment areas pursuant to the criteria 
of section 401(a)(8) of the Act, as implemented by paragraphs (a)(1) 
and (a)(2) of this section.
    (c) For the purpose of this section, substantial unemployment is 
defined as an unemployment rate of 6 percent or more.
    (d) EDA may determine for the purpose of this section that 24 month 
unemployment data is not available so that data for the most recent 12-
month or 4-month period may be used instead.


Sec. 301.11  Designation on the basis of long-term economic 
deterioration.

    Such designation shall be made in accordance with section 401(a) of 
the Act.


Sec. 301.12  Exception to criteria for qualification.

    (a) EDA shall designate in a State which has no redevelopment area 
that area which most nearly qualifies under this subpart.
    (b) Designation made under paragraph (a) of this section shall be 
terminated in accordance with section 402 of the Act if any other area 
within the same State subsequently becomes qualified or designated 
under any other section of this subpart.
    (1) Designation under paragraph (a) of this section will not be 
terminated under paragraph (b) of this section if the area becoming 
qualified or designated becomes qualified under Sec. 301.6 or 
Sec. 301.7.
    (2) Termination under this subsection will become effective at the 
time of the annual review.

Subpart B--Limitations on Designation of Areas


Sec. 301.13  Limitations with respect to the size and boundaries of 
redevelopment areas.

    (a) The size and boundaries of redevelopment areas will be 
determined by EDA subject to requirements under the Act for at least 
1500 in population, unless designated under Sec. 301.4 or Secs. 301.6, 
301.7, 301.8, and other requirements in section 401(b) of the Act.
    (b) Except for areas designated under Secs. 301.4, 301.5, 301.6, 
301.7 and 301.8, no area may be designated which is smaller than a 
labor area (as defined by the Secretary of Labor), a county, or a 
municipality with a population of over 25,000 persons whichever EDA 
deems appropriate.
    (c) All parts of the area seeking designation under Sec. 301.5 must 
be contiguous.
    (d) Delineation of the area designated under Sec. 301.5 must be 
based on a reasonable grouping of census tracts or similar geographical 
units, or the area must be defined by specific boundaries incorporating 
commercial or industrial sites and enterprises which can offer 
employment opportunities for the work force of the area.
    (e) Nothing in this section shall prevent any municipality 
designated or eligible to be designated as a redevelopment area from 
combining with any other community having mutual economic interests and 
transportation and marketing patterns for the purpose of such 
designation.
    (f) Areas qualified in accordance with Sec. 301.5 may be designated 
subject to the receipt of an acceptable OEDP within 6 months following 
such conditional designation, or within such additional period as the 
Assistant Secretary may grant for good cause.
    (g) Any area, other than those areas eligible for designation 
pursuant to Secs. 301.5 and 301.6, which does not submit an acceptable 
OEDP within 6 months after notification of its qualification for 
designation, shall not thereafter be designated prior to the next 
annual review of eligibility; however, such period may be extended for 
good cause.


Sec. 301.14  Receipt of an acceptable OEDP.

    (a) No area shall be designated until it has an approved OEDP, as 
described in section 403 of the Act, except those areas eligible for 
designation under Secs. 301.5 and 301.6.
    (b) Areas qualified in accordance with Sec. 301.5 may be designated 
subject to the receipt of an acceptable OEDP within 6 months following 
such conditional designation, or within such additional period as EDA 
may grant for good cause.
    (c) Any area, other than those areas eligible for designation 
pursuant to Secs. 301.5 and 301.6, which does not submit an acceptable 
OEDP within 6 months after notification of its qualification for 
designation, shall not thereafter be designated prior to the next 
annual review of eligibility; however, such period may be extended for 
up to 6 months if EDA determines there is good cause.

Subpart C--Modification of Designated Areas


Sec. 301.15  Adjustment of boundaries.

    (a) EDA may make minor modifications in the boundaries of 
redevelopment areas designated under Subpart A of this part if:
    (1) Such modification will contribute to a more effective program 
for economic development within such area; and
    (2) There is a request in writing which:
    (i) Outlines the exact extent of the boundary adjustment;
    (ii) States how the absence of the boundary adjustment would impede 
the implementation of the approved OEDP;
    (iii) States why a specifically proposed project cannot be located 
within the existing boundaries of the designated redevelopment area; or
    (iv) States other reasons why a boundary adjustment is needed.
    (3) The interested State official or agency is informed and given 
opportunity to submit comments on and endorse or not endorse the 
request.
    (b) Additional areas will be included within the redevelopment area 
only if such inclusion is necessary to meet program requirements for a 
project.

Subpart D--Notice


Sec. 301.16  Notification of public officials.

    (a) EDA shall notify local, State, and national officials when an 
area:
    (1) Qualifies for designation under criteria set forth in subpart A 
of this part;
    (2) Is designated; and/or
    (3) Has its designation modified or terminated.
    (b) [Reserved]

PART 302--ECONOMIC DEVELOPMENT DISTRICTS

Subpart A--Standards for Designation, Modification and Termination of 
Economic Development Districts
Sec.
302.1  Authorization of economic development districts.
302.2  Designation of economic development districts.
302.3  Designation of nonfunded districts.
302.4  District organizations.
302.5  District organization functions and responsibilities.
302.6  Coordination with state and local organizations.
302.7  Modification of district boundaries.
302.8  Termination and suspension of district designation.
302.9  Benefits.

[[Page 49682]]

Subpart B--Standards for Designation, Modification, and Termination of 
Economic Development Centers
302.10  General standards for designation of economic development 
centers.
302.11  Number of economic development centers per district.
302.12  Boundaries of economic development centers and boundary 
modifications.
302.13  Termination and suspension of economic development centers.
302.14  Redevelopment centers.
Subpart C--Financial and Other Assistance to Economic Development 
Centers and Districts
302.15  Financial assistance to economic development centers.
302.16  Economic development center project characteristics.
302.17  Grant rate for economic development center projects.
302.18  Financial assistance to redevelopment centers.
302.19  Assistance to economic development districts.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Department of Commerce Organization Order 10-4, as amended 
(40 FR 56702, as amended).

Subpart A--Standards for Designation, Modification and Termination 
of Economic Development Districts


Sec. 302.1  Authorization of economic development districts.

    (a) EDA may authorize, at the request of the Governor(s) of the 
State or States, the delineation of proposed district boundaries as a 
prerequisite to designation as an economic development district and as 
a prerequisite to the provision of planning grants under part 307 of 
this chapter.
    (b) Authorization of delineation may be made:
    (1) Where the State or States, after analyzing economic and social 
relationships among the various redevelopment area counties, propose a 
boundary delineation for the proposed district;
    (2) Where the proposed district meets the general standards for 
designation set forth in Sec. 302.2;
    (3) Where a consideration of the following factors has been made:
    (i) The percentage of the population living in redevelopment areas;
    (ii) Per capita income in the proposed district;
    (iii) The percentage of families with annual income below the 
poverty threshold;
    (iv) Unemployment rates and labor force participation rates of the 
proposed district;
    (v) Economic characteristics of growth centers; and
    (vi) The proposed district's readiness to hire a professional staff 
and begin work.
    (4) Where the boundaries conform to an officially delineated sub-
State district or where the Governor has provided EDA with an 
explanation of and support for any variation of the officially 
delineated sub-State district.


Sec. 302.2  Designation of economic development districts.

    EDA is authorized to designate proposed districts as economic 
development districts (EDDs) with the concurrence of the States in 
which the EDDs will be wholly or partially located when the proposed 
district meets the following requirements:
    (a) It is of sufficient size or population, and contains sufficient 
resources, to foster economic development on a scale involving more 
than a single redevelopment area;
    (b) It contains at least one redevelopment area;
    (c) It contains one or more redevelopment areas or economic 
development centers identified in an approved district overall economic 
development program (hereinafter OEDP) as having sufficient size and 
potential to foster the economic growth activities necessary to 
alleviate the distress of the redevelopment areas within the district;
    (d) It has an OEDP which identifies one or more proposed growth 
centers, includes adequate land use and transportation planning, 
contains a specific program for district cooperation and public 
investment and is approved by the State or States affected and by EDA;
    (e) When at least three-fourths of the counties within the proposed 
district boundaries have submitted documentation of their commitment to 
support the economic development activities of the district;
    (f) A district organization has been established by the proposed 
district which meets the requirements of Sec. 302.4; and
    (g) The proposed district organization requests such designation.


Sec. 302.3  Designation of nonfunded districts.

    Designation is not limited to districts receiving EDA planning 
grants. However, the continuing designation of any nonfunded EDD is 
subject to the same criteria and organization requirements applicable 
to funded districts.


Sec. 302.4  District organizations.

    (a) The district organization is a prerequisite to initial 
designation of proposed districts and EDDs and to the provision of 
planning grants under part 307 of this chapter and shall be organized 
in one of the following manners:
    (1) As non-profit organizations incorporated under the laws of the 
States in which they are located;
    (2) As public organizations through intergovernmental agreements 
for the joint exercise of local government powers; or
    (3) As public organizations established under State enabling 
legislation for the creation of multijurisdictional area wide planning 
organizations.
    (b) Each proposed district or EDD organization must meet EDA 
requirements concerning its membership composition as set forth in 
Sec. 302.4(c), its authorities and responsibilities for carrying out 
economic development functions as set forth in Sec. 302.5, and the 
maintenance of adequate staff support to perform its economic 
development functions as set forth in Sec. 302.4(d). Such requirements 
must be met by the board of directors (or other governing body of the 
organization) as a whole.
    (c) The proposed district or EDD organization shall demonstrate 
that it meets all of the following requirements:
    (1) It is broadly representative of the following interests:
    (i) The principal economic interests of the proposed district or 
EDD, including business, industry, finance, transportation, utilities, 
the professions, labor, agriculture, Federal and State recognized 
American Indian tribes and education. In meeting this requirement, the 
representatives of the principal economic interests may be private 
citizens, part-time elected officials, or minority representatives also 
selected under paragraph (c)(1)(ii) of this section;
    (ii) Minority and low-income populations whose representatives may 
be private citizens, elected officials, or government employees; and
    (iii) Representatives of the unemployed and underemployed who may 
also be minority representatives selected under paragraph (c)(1)(ii) of 
this section.
    (2) There is at least a simple majority of its membership who are 
elected officials and/or employees of a general purpose unit of local 
government who have been appointed to represent the government.
    (i) Where appointment of local government members is not otherwise 
provided for by the district organization charter or by-laws, each 
county and major unit of local government which joins the proposed 
district or EDD shall 

[[Page 49683]]
name an elected official or an employee to represent it.
    (ii) Where appropriate to their nongovernmental occupations, part-
time elected officials may also represent the principal economic 
interests.
    (3) There is at least one-fifth of its membership who are private 
citizens who are neither elected officials of a general purpose unit of 
local government nor employees of such a government who have been 
appointed to represent that government.
    (i) The district organization shall demonstrate that persons 
fulfilling this requirement represent the interests of groups listed in 
paragraphs (c)(1)(i) or (iii) of this section. Minority and low-income 
representatives who meet these criteria may be counted toward the 
fulfillment of the private citizen requirement.
    (ii) Except where these private citizens are also selected as 
minority/low-income representatives under paragraph (c)(1)(ii) of this 
section, these representatives shall be appointed by the governing 
bodies of the counties actively participating in the district 
organization or as otherwise provided in the district organizational 
charter and by-laws.
    (d) Staff support is provided as follows:
    (1) The district organization shall be assisted by a professional 
staff drawn from qualified persons in planning, economics, business 
administration, engineering and related disciplines.
    (2) EDA may provide planning grants to economic development 
districts to employ professional staff in accordance with part 307 of 
this chapter.
    (e) District organizations shall provide access for persons who are 
not members of the district organization to make their views known 
concerning ongoing and proposed district activities of the proposed 
district or EDD in accord with the following requirements:
    (1) The district organization shall conduct meetings open to the 
public at least once a year and shall also publish the date and agenda 
of the meeting at least four weeks in advance to allow the public a 
reasonable time to prepare to participate effectively in the meetings.
    (2) The district organization shall adopt a system of parliamentary 
procedures to assure that board members and others have access to and 
an effective opportunity to participate in the affairs of the proposed 
district or EDD.
    (3) Information should be provided sufficiently in advance of 
public decisions to give the public adequate opportunity to review and 
react to proposals. District organizations should seek to relate 
technical data and other material to the public so that they may 
understand the impact of public programs, available options and 
alternative decisions.


Sec. 302.5  District organization functions and responsibilities.

    (a) District organizations must arrange to carry out two classes of 
functions and responsibilities: Those which every EDD must carry out 
(paragraph (b) of this section), and those which EDDs receiving grants 
must carry out (paragraph (c)).
    (b) Subject to the requirements of Sec. 302.4, district 
organizations are responsible for seeing that the following functions 
are provided for on a continuing basis:
    (1) Organizational actions, including:
    (i) Arranging the legal form of organization which will be used;
    (ii) Arranging for the membership of the governing body to meet 
Sec. 302.4 requirements;
    (iii) Recruiting staff to carry out the economic development 
functions;
    (iv) Establishing a management system;
    (v) Contracting for services to carry out district functions;
    (vi) Establishing and directing activities of economic development 
subcommittees; and
    (vii) Submitting reports as determined by EDA to comply with civil 
rights requirements under part 317 of this chapter.
    (2) Actions to develop and maintain the required district OEDP, and 
any subsequent supplements or revisions, including:
    (i) Preparing the analytic, strategic and implementation components 
of the OEDP;
    (ii) Identifying growth centers, i.e., economic development centers 
and redevelopment centers, and any later boundary modifications;
    (iii) Adopting the OEDP by formal action of the EDD governing 
board;
    (iv) Submitting the OEDP, any supplements or revisions and annual 
reports for reviews by appropriate governmental bodies and interested 
organized groups, and attaching dissenting opinions and comments 
received; and
    (v) Submitting to EDA an approvable OEDP.
    (3) Preparation of proposals that EDA take actions which:
    (i) Establish or change the designation status of the district or 
its growth centers; or
    (ii) Affect economic development projects available to the EDD.
    (4) Coordination and implementation of economic development 
activities in the district, including:
    (i) Assisting other eligible units within the district to apply for 
grant assistance for economic development purposes;
    (ii) Carrying out economic development related research, planning, 
implementation and advisory functions as are necessary and helpful to 
the coordination with other local, State, Federal, and private 
organizations, and as are necessary and helpful to the development and 
implementation of the OEDP;
    (iii) Coordinating the development and implementation of the OEDP 
with other local, State, Federal and private organizations (including 
minority organizations); and
    (iv) Carrying out the annual OEDP plan for implementation.


Sec. 302.6  Coordination with state and local organizations.

    EDA shall cooperate with state and local organizations in 
accordance with Sec. 403 of PWEDA.


Sec. 302.7  Modification of district boundaries.

    EDA (with concurrence of the State or States affected, unless such 
concurrence is waived by EDA) may modify the boundaries of a district 
consistent with standards for authorizing new districts set forth in 
Sec. 302.1, if it determines that such modification will contribute to 
a more effective program for economic development.


Sec. 302.8  Termination and suspension of district designation.

    EDA may, upon 30 days prior notice, terminate the designation 
status of an economic development district:
    (a) When the district no longer meets the standards for designation 
as set forth in Sec. 302.2(a), (b), (c), (d), (f), or (g); or 
Sec. 302.2(e), except that district designation status may be continued 
if those counties which would maintain their commitment to support 
economic development activities are determined by EDA to meet the other 
standards of Sec. 302.2 and the standards of Sec. 302.1;
    (b) When a district has not maintained a currently approved OEDP in 
accordance with part 303 of this chapter;
    (c) When a district has requested termination (with the approval of 
the State or States affected, unless such approval is waived by EDA); 
or
    (d) Where a funded district fails to comply with terms and 
conditions of an EDA planning grant agreement. 

[[Page 49684]]



Sec. 302.9  Benefits.

    (a) Designation of an economic development district within which 
the economic development center (EDC) is located is a prerequisite to 
EDA providing financial assistance to an EDC.
    (b) Projects in redevelopment areas which are located within 
designated economic development districts and which actively 
participate in the economic development district's OEDP planning 
process are eligible for 10 percent bonus grants, if the project is 
consistent with a currently approved district OEDP.

Subpart B--Standards for Designation, Modification, and Termination 
of Economic Development Centers


Sec. 302.10  General standards for designation of economic development 
centers.

    EDA may designate an economic development center if such proposed 
center:
    (a) Has been identified and included in an approved district OEDP;
    (b) Is recommended by the State or States affected. Written 
concurrence from the State must be received by EDA;
    (c) Is geographically and economically so related to the economic 
development district that the economic development center's economic 
growth may be expected to contribute significantly to the alleviation 
of distress in the redevelopment areas of the district;
    (d) Does not have a population in excess of 250,000 according to 
the last preceding Federal census;
    (e) May reasonably be expected to accelerate or maintain existing 
rates of growth in terms of population, employment, and income;
    (f) Has the prospect of developing a diversified economy providing 
a wide range of health, educational, recreational, and cultural 
facilities; a relatively large local market; a relatively large well-
trained labor force; and other similar qualities which encourage the 
continuing growth of economic activities; and
    (g) Is an active participant in the district economic development 
program.


Sec. 302.11  Number of economic development centers per district.

    EDA will designate the single leading growth point in an EDD as the 
economic development center. However, additional centers may be 
designated where unusual conditions exist in the district, such as for 
example:
    (a) Where the district contains a relatively large number of 
redevelopment area residents who do not have reasonable commuting 
access to any one economic development center; and
    (b) Where the district contains several smaller growth points 
rather than one leading economic development center.


Sec. 302.12  Boundaries of economic development centers and boundary 
modifications.

    (a) An economic development center is administratively defined as a 
city or grouping of contiguous incorporated places. However, where 
justified, boundaries may be extended to include adjoining minor civil 
divisions or corridors of growth between centers.
    (b) EDA may modify either the boundaries of an economic development 
center or the number of economic development centers in a district 
after giving notice and opportunity for comment to the State or States 
affected, if such modification will contribute to a more effective 
program.


Sec. 302.13  Termination and suspension of economic development 
centers.

    EDA may, upon 30 days prior notice to the interested State and 
local agencies, terminate the designated status of an economic 
development center when:
    (a) The economic development center is no longer identified or 
recommended for designation in an approved district OEDP;
    (b) The economic development center no longer meets the standards 
for designation, Sec. 302.11;
    (c) It fails to actively pursue its role as an economic development 
center in a manner that makes a significant impact on the performance 
of the economic development district within which it is located; or
    (d) The economic development center is no longer part of a 
designated economic development district.
    The termination of the designation of an economic development 
district and termination of the designation of an economic development 
center may be done concurrently.


Sec. 302.14  Redevelopment centers.

    EDA may recognize a redevelopment center which meets the criteria 
for economic development centers, but which falls in a designated 
redevelopment area. There is no limit on the size of the population of 
a redevelopment center.

Subpart C--Financial and Other Assistance to Economic Development 
Centers and Districts


Sec. 302.15  Financial assistance to economic development centers.

    EDA may provide financial assistance in accordance with the 
criteria contained in part 305 of this chapter for projects in economic 
development centers (EDCs) when:
    (a) The project will further enhance the objectives of the OEDP of 
the district in which the EDC is located;
    (b) The project will enhance the relationship between the EDC and 
the EDD, particularly the redevelopment areas; and
    (c) The project will achieve one or more of the following:
    (1) Encourage economic growth;
    (2) Discourage out-migration from the district; and
    (3) Have a beneficial impact on the district's redevelopment areas.


Sec. 302.16  Economic development center project characteristics.

    Projects in EDCs shall have one or more of the following 
characteristics:
    (a) High job producing capability;
    (b) Remove barriers of access to jobs for the target population;
    (c) Ability to trigger further project activity;
    (d) Ability to trigger further economic impact; or
    (e) Provision of facilities and services deemed essential to 
stimulate further growth, at a level above that normally required for 
simple maintenance of a substantial community.


Sec. 302.17  Grant rate for economic development center projects.

    The grant rate for projects under Title I of the Act in EDCs shall 
not exceed 50 percent of the project costs.


Sec. 302.18  Financial assistance to redevelopment centers.

    The eligibility of redevelopment centers for EDA financial 
assistance, including the 10 percent bonus as provided for in this 
Sec. 302.18 is the same as for any designated redevelopment area within 
the district. The grant rate for the redevelopment center shall be 
determined by the rate applicable to the redevelopment area within 
which it is located.


Sec. 302.19  Assistance to economic development districts.

    Pursuant to Title III of the Act, EDA may provide other assistance 
to the district including:
    (a) Technical assistance;
    (b) Planning grants under part 307 of this chapter to assist the 
district 

[[Page 49685]]
organization in engaging a professional staff and carrying out its 
planning activities; and
    (c) Research assistance.

PART 303--OVERALL ECONOMIC DEVELOPMENT PROGRAM

Sec.
303.1  Purpose and scope.
303.2  Redevelopment area--District OEDPs.
303.3  Redevelopment area OEDP committee.
303.4  Initial OEDP.
303.5  Approval process for initial OEDPs.
303.6  The continuing program.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Department of Commerce Organization Order 10-4, as amended 
(40 FR 56702, as amended).


Sec. 303.1  Purpose and scope.

    (a) Approval of an OEDP is generally a prerequisite for designation 
of a redevelopment area or economic development district; and
    (b) A redevelopment area or economic development district, where 
appropriate, is required to maintain a currently approved OEDP to 
retain its previous designation for eligibility to receive EDA funds.


Sec. 303.2  Redevelopment area--District OEDP's.

    Those qualified areas within existing economic development 
districts may use the district's accepted OEDP in lieu of a separate 
area OEDP when the following conditions have been met:
    (a) The area actively participates in and supports the district 
OEDP planning process.
    (b) The area submits a letter or resolution to EDA signed by the 
area's chief elected official, governing body, or the local OEDP 
committee stating that the area will use the district OEDP.


Sec. 303.3  Redevelopment area OEDP committee.

    (a) The primary purpose of this committee is to develop an ongoing 
development program and to prepare the Area OEDP.
    (1) OEDP committees are required only in areas not located in 
districts. (District organization requirements are set forth at part 
302 of this chapter and are recommended whenever practicable for other 
areas.)
    (b) OEDP committees shall be representative of the community so 
that all viewpoints are considered in discussion and decisionmaking and 
all available local skills are engaged in program formulation. To the 
extent practicable, representation on these committees shall include 
those from local government, business, industry, finance, agriculture, 
the professions, organized labor, utilities, education, minorities, and 
the unemployed or underemployed.


Sec. 303.4  Initial OEDP.

    (a) The initial OEDP should contain the following information:
    (1) Background on the area or district's economic development 
situation, including for example a discussion of the district or 
area's:
    (i) Geography;
    (ii) Population;
    (iii) Labor force, including minority and female;
    (iv) Natural and manmade resources;
    (v) Economic and social activities; and
    (vi) Environmental considerations.
    (2) An examination of economic and community development, 
opportunities and problems, including for example, identification of 
current major activities of other organizations involved in economic 
and community development and improvement; and
    (3) A realistic action plan that will:
    (i) Promote the district or area's economic progress;
    (ii) Improve community facilities and services; and
    (iii) Serve as a basis for a continuing planning and development 
program.
    (b) In addition to requirements in paragraph (a) of this section, 
OEDPs for districts must contain the following:
    (1) Proposed designation or recognition of at least one growth 
center; and
    (2) Description of the role of the proposed center in implementing 
the district wide development program, particularly as it relates to 
redevelopment areas.


Sec. 303.5  Approval process for initial OEDPs.

    (a) The completed initial OEDP must be reviewed and commented upon 
by appropriate:
    (1) Governmental bodies;
    (2) Interest groups; and
    (3) EDA Regional Office.
    (b) If the OEDP is approved, copies must be made available to 
interested parties by the designated area or district.
    (c) If the initial OEDP is inadequate, the EDA Regional Office will 
contact the chairman of the OEDP committee by letter stating 
deficiencies and allowing additional time for corrections to be made 
and reviewed by EDA.


Sec. 303.6  The continuing program.

    (a) After designation by EDA the area or district shall implement 
the development program as updated and made known to EDA through annual 
reports or revised OEDPs.
    (b) No financial assistance for a designated area or district will 
be awarded if it:
    (1) Has not submitted a timely annual report;
    (2) Has submitted a deficient annual report; or
    (3) Has not corrected noted deficiencies.
    (c) Revised OEDPs.
    (1) A revised OEDP will be required if EDA determines that the 
initial OEDP of the area or district is inadequate, or outdated.
    (2) The area or district may choose to revise its initial OEDP if 
the OEDP committee determines that a complete reassessment of the local 
situation or a complete reassessment of the economic development 
program is desirable.
    (3) A revised OEDP may be submitted in lieu of the annual OEDP 
progress report.
    (4) Before any revised OEDP for a district is approved by EDA, it 
shall be reviewed by appropriate:
    (i) Governmental bodies;
    (ii) Interest groups; and
    (iii) EDA Regional Office.

PART 304--GENERAL SELECTION PROCESS AND EVALUATION CRITERIA

Sec.
304.1  General selection process and evaluation criteria for 
programs under PWEDA.
304.2  Demonstration project assistance under Section 301(f) of 
PWEDA.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Department of Commerce Organization Order 10-4, as amended 
(40 FR 56702, as amended).


Sec. 304.1  General selection process and evaluation criteria for 
programs under PWEDA.

    EDA has established a streamlined and uniform selection process 
based upon a short proposal and standardized application form with 
attachments as applicable to each particular program. Additional 
information if any, is set forth in program specific parts/sections. 
EDA applies uniform evaluation criteria to all programs, as well as 
evaluation criteria which are set forth in parts 305, 307 and 308 of 
this chapter.
    (a) The selection process is described as follows:
    (1) For projects to be funded under parts 305, 307 and 308 of this 
chapter proponents will submit forms to EDA during the selection 
process as follows:
    (i) There will be a brief proposal consisting of the face sheet 
(SF-424) and two additional pages, including for example, budget, scope 
of work and capability statements.

[[Page 49686]]

    (ii) There will be a standard application for all programs which 
will include an additional attachment for each program as appropriate.
    (2) For projects to be funded under part 307--Subparts A, B, E and 
F and parts 305 and 308 of this chapter, requirements are as follows:
    (i) Initial contact with EDA will generally be through contact with 
the appropriate Economic Development Representative (EDR) (see 
Sec. 300.4 of this chapter) who will provide assistance as needed in 
filling out the proposal as described in paragraph (a)(1) of this 
section.
    (ii) Generally, an EDR will evaluate proposals under Sec. 304.1(b) 
before submitting them to the EDA Regional Office for review by a 
project review committee (of at least three EDA officials).
    (iii) If the proposal is acceptable under Sec. 304.1(b), EDA may 
invite the submission of an application.
    (iv) An invitation to submit an application does not assure EDA 
funding.
    (v) Applications are generally to be submitted within 30 days after 
receipt of an invitation letter.
    (3) For projects to be funded under part 307--Subparts C and D of 
this chapter, requirements are as follows:
    (i) Initial contact by proponents for information and assistance 
concerning proposals will generally be with Washington, DC, at 
locations noted in Secs. 307.13 and 307.18 of this chapter.
    (ii) Generally, proposals will be reviewed for relevance and 
quality by three or more technically knowledgeable EDA officials.
    (iii) If the proposal is acceptable under Sec. 304.1(b), EDA may 
invite proponents to submit applications.
    (iv) An invitation to submit an application does not assure EDA 
funding.
    (v) Applications are generally to be submitted within 30 days after 
receipts of an invitation letter.
    (b) General evaluation criteria for projects to be funded under 
parts 305, 307 and 308 of this chapter in addition to criteria noted in 
such parts, are as follows: All proposals/applications will be screened 
for conformance to statutory and regulatory requirements, the relative 
severity of the economic problem of the area, the quality of the scope 
of work proposed to address the problem, the merits of the 
activity(ies) for which funding is requested, and the ability of the 
prospective applicant to carry out the proposed activity(ies) 
successfully.


Sec. 304.2  Demonstration project assistance under Section 301(f) of 
PWEDA.

    In addition to the selection of projects under the general 
selection process as set forth in Sec. 304.1 above, EDA may also select 
demonstration projects, as authorized under section 301(f) of PWEDA. 
Demonstration projects involve the provision of funds, through grants, 
loans or otherwise, to carry out the purpose of PWEDA. There are no set 
forms or procedure for project selection, and proposals may be 
submitted to EDA at any time. Demonstration projects must be within 
redevelopment areas.

PART 305--PUBLIC WORKS AND DEVELOPMENT FACILITIES PROGRAM

Subpart A--General
Sec.
305.1  Purpose and scope.
305.2  Applicants.
305.3  Eligibility requirements.
305.4  Project requirements.
305.5  Selection process.
305.6  Evaluation criteria.
305.7  Award requirements.

Subpart B--Supplementary and Overrun Grants

305.8  Supplementary grants.
305.9  10 percent bonus supplemental grants.
305.10  Grants for construction cost increases.
305.11  Disbursements of funds for grants.
305.12  Variance in cost of grant projects.
305.13  Amendments and changes.
305.14  Final inspection.
305.15  Contract and subcontract clauses.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Department of Commerce Organization Order 10-4, as amended 
(40 FR 56702, as amended).

Subpart A--General


Sec. 305.1  Purpose and scope.

    The purpose of the Public Works Program is to assist communities 
with the funding of public works and development facilities that 
contribute to the creation or retention of primarily private sector 
jobs and alleviation of unemployment and underemployment. Such 
assistance is designed to help communities achieve lasting improvement 
by stabilizing and diversifying local economies and by improving local 
living conditions and the economic development of the area. Alleviation 
of unemployment and underemployment among residents of the project area 
is a primary focus of this program.


Sec. 305.2  Applicants.

    Eligible applicants under this program include:
    (a) States, or political subdivisions thereof;
    (b) American Indian tribes;
    (c) The Federated States of Micronesia, the Republic of the 
Marshall Islands, the Republic of Palau, the Commonwealth of Puerto 
Rico, the Virgin Islands, Guam, American Samoa and the Commonwealth of 
the Northern Mariana Islands; and
    (d) A private or public non-profit organization or association 
representing any redevelopment area or part thereof, provided the EDA 
project is located within an eligible EDA area represented by such non-
profit organization or association.
    (e) When the applicant is not a State, American Indian tribe or 
other general-purpose governmental authority, the applicant must afford 
the appropriate local governmental authority of the area a minimum of 
15 days in which to review and comment on the proposed project. The 
applicant shall furnish with the application a copy of such comments, 
or a statement of the efforts made to obtain them together with an 
explanation of the actions taken to address any comments received.


Sec. 305.3  Eligibility requirements.

    (a) Other than those areas designated under PWIP, applicant areas, 
including Special Impact Areas (SIAs) must have a current EDA approved 
Overall Economic Development Program (OEDP).
    (b) Political entities claiming eligibility under OEDPs developed 
by multicounty economic development organizations are expected to 
continue to participate actively in the organization.
    (c) Non-profit organizations or associations must meet the 
following requirements:
    (1) Such non-profit organizations or associations must represent a 
redevelopment area or part thereof, if EDA determines that such 
applicant is potentially capable of furthering the objectives of the 
economic development program of the area in which it is located;
    (2) To the extent possible, non-profit applicants are urged to seek 
the cooperation and support of units of local government; and
    (3) When deemed appropriate by EDA, have the local government as 
co-applicant for EDA assistance. This ensures the financial stability 
and continuity of the project in the event that the non-profit entity 
finds itself in a position of not having the financial resources to 
administer, operate, and maintain the EDA assisted facility in a proper 
and efficient manner consistent 

[[Page 49687]]
with the provisions of part 314 of this chapter.


Sec. 305.4  Project requirements.

    (a) Public works projects other than PWIP projects must meet the 
following requirements:
    (1) Be consistent with the EDA approved OEDP for the area in which 
it is or will be located, and have broad community support;
    (2) Improve opportunities for the successful establishment or 
expansion of industrial or commercial facilities in the area where such 
project will be located;
    (3) The project will not result in the increase of goods or 
services beyond the demand for such goods or services existing or to be 
created in the market area;
    (4) The project fulfills a pressing need of the area or part 
thereof, in which it is located;
    (5) There is adequate local matching share; and
    (6) The project benefits the long-term unemployed and members of 
low-income families who are residents of the area to be served.
    (b) PWIP projects must create immediate useful work for the 
unemployed and underemployed residents in the project area.


Sec. 305.5  Selection process.

    Projects will be selected in accordance with Sec. 304.1 of this 
chapter.


Sec. 305.6  Evaluation criteria.

    In addition to and/or as an elaboration of the evaluation criteria 
set forth in part 304 of this chapter of this chapter and to the extent 
practicable, evaluations are made on the basis of whether the proposed 
project:
    (a) Assists in creating or retaining private sector jobs (primarily 
in the near term) and assists in the creation of additional long-term 
employment opportunities (provided the jobs have not been transferred 
from another commuting area of the United States) and will result in 
low costs-per-job in relation to total EDA costs, evidenced for example 
by:
    (1) Commitments to create such jobs;
    (2) Marketing; and
    (3) Financial capabilities of the applicant.
    (b) Is supported by significant private sector investment.
    (c) Maximizes the amount of local, state or other Federal funding 
that is available.
    (d) Is likely to be started and completed in a timely fashion.
    (e) If located in an EDC with a stable economy and little distress, 
an employment plan is required that explains how new employment 
opportunities for residents of nearby highly distressed redevelopment 
areas will be provided.
    (f) To the extent possible, factors that will be considered in the 
evaluation of PWIP projects include whether the proposed project:
    (1) Improves the economic or community environment in areas of 
severe economic distress;
    (2) Includes an acceptable plan for hiring the unemployed and 
underemployed from the project area to work on construction of the 
project;
    (3) Assists in providing long-term employment opportunities or 
other economic benefits for the unemployed and underemployed in the 
project area;
    (4) Primarily benefits low-income families by providing essential 
community services, or satisfying a pressing public need;
    (5) Involves construction which can be started (normally within 120 
days after affirmation of the award), and completed quickly (normally 
within one year) preferably without early construction start; or
    (6) Has significant labor intensity (i.e., the proportion of labor 
costs to the total project costs).


Sec. 305.7  Award requirements.

    (a) Projects are expected to be completed in a timely manner 
consistent with the nature of the project. Normally, the maximum period 
for any financial assistance that is provided shall be not more than 5 
years from the fiscal year of the award.
    (b) Matching Requirements are as follows:
    (1) EDA may provide direct grants not to exceed 50 percent of the 
estimated cost of the project;
    (2) Under certain circumstances supplementary grants to augment the 
direct grant may be provided up to a maximum of 80 percent of the 
eligible project costs, though waivers may be permitted in accordance 
with Section 101(c) of the Act. Supplementary grant assistance to 
finance over 50 percent of the project costs will be approved by EDA 
only for projects in areas of high distress. Decisions on such 
supplementary grant assistance will be based on the nature of the 
project, the amount of fair user charges or other revenues the project 
may reasonably be expected to generate, and the relative needs of the 
area;
    (3) Applicants are required to provide the local share from 
acceptable sources;
    (4) The local share need not be in hand at the time of application; 
however, the applicant must assure EDA that such share is committed and 
will be available at the time the award is accepted; and
    (5) The local share must not be encumbered in any way that would 
preclude its use consistent with the requirements of the grant.

Subpart B--Supplementary and Overrun Grants


Sec. 305.8  Supplementary grants.

    (a) In the case of projects for which EDA supplements direct grants 
of other Federal agencies, the total Federal funding may be up to 80 
percent of the project's costs (except as allowed by paragraph (b) (1), 
(2) or (3) of this section).
    (b) Based upon the kind of project, the severity of distressed 
factors and revenue above and beyond the amount needed to amortize the 
local share, supplemental grants in excess of 50% may be awarded by EDA 
in accordance with the following Table:

------------------------------------------------------------------------
                                                               Maximum  
                          Projects                           grant rates
                                                              (percent) 
------------------------------------------------------------------------
(1) Projects of American Indian Tribes which are concerned              
 with general economic development will be given special                
 consideration, and the Assistant Secretary may reduce or               
 waive the non-Federal share for such projects.............          100
(2) Projects located in redevelopment areas designated                  
 under section 401(a)(6) of the act, applied for by States              
 or political subdivision thereof which have demonstrated               
 they have exhausted their effective taxing and borrowing               
 capacity..................................................          100
(3) Projects located in redevelopment areas designated                  
 under section 401(a)(6) of the Act applied for by                      
 community development corporations (as defined in 13 CFR               
 300.2) which have demonstrated they have exhausted their               
 effective borrowing capacity..............................          100
(4) Projects located in redevelopment areas designated                  
 under section 401(a)(6) of the Act as special impact areas             
 and which were not designated under section 401(a)(6) as a             
 result of the October 12, 1976 amendment of section                    
 401(a)(8) of the Act, but which cannot meet the                        
 requirement of paragraph (b)(2) of this section...........          80 

[[Page 49688]]
                                                                        
(5) Projects located in areas designated under Title IV of              
 the Act which have been declared disaster areas by the                 
 President of the United States under the Disaster Relief               
 and Emergency Assistance Act (Pub. L. 100-707) as amended              
 provided:.................................................  ...........
    (i) Such areas retain their EDA designations, and                   
    (ii) No more than one year has elapsed since the date               
     of such area's disaster area designation..............           80
(6) Projects located in areas designated under Title IV of              
 the Act in which the median annual family income is $7,412             
 or below, or the average unemployment rate for the                     
 preceding 24 months is 12 percent or higher...............           80
(7) Projects located in areas designated under Title IV of              
 the act in which the median annual family income is $7,413             
 to $8,261, or the average unemployment rate for the                    
 preceding 24 months is 10 percent to 11.9 percent.........           70
(8) Projects located in areas designated under Title IV of              
 the Act in which the median annual family income is $8,262             
 to $9,110, or the average unemployment rate for the                    
 preceding 24 months is 8 percent to 9.9 percent...........           60
(9) Projects located in areas designated under section                  
 401(a)(6) of the Act solely on the basis of the October                
 12, 1976 amendment of section 401(a)(8) of the Act by Pub.             
 L. 94-487.................................................           50
(10) Projects in all other areas...........................           50
------------------------------------------------------------------------



    (c) The applicable maximum grant eligibility rate for projects 
located in EDDs pursuant to section 403(j) of the Act shall be the same 
as the grant rates for the redevelopment areas for which such projects 
are determined to be a direct and substantial benefit.
    (d) Notwithstanding paragraph (c) of this section, an applicant 
shall be eligible for the highest applicable maximum grant rate in 
effect between the time EDA invites the application and the time the 
project is approved.
    (e) Where municipalities of over 25,000 population qualify for 
designation under Title IV of the Act and part 302 of this chapter, but 
are located in areas already designated thereunder, such municipalities 
are eligible for the maximum grant under paragraph (b) of this section 
as if they were designated independent of the existing redevelopment 
area. In determining the maximum grant rate for such municipalities, 
EDA will use the appropriate statistical information for the 
municipality involved, provided that consideration of such information 
will work to the municipality's advantage.


Sec. 305.9  Ten percent bonus supplemental grants.

    (a) Subject to the limitation that the maximum Federal share for 
any project may not exceed 80 percent of the aggregate project cost or 
100 percent for projects listed in Sec. 305.8(b)(1)-(3), EDA may 
increase the amount of grant assistance for projects within 
redevelopment areas by an amount not to exceed 10 percent of the 
aggregate cost of any such project if:
    (1) The redevelopment area is situated within a designated economic 
development district (EDD) and is actively participating in the 
economic development activities of the district; and
    (2) The project is consistent with a currently approved district 
OEDP.
    (b) Projects assisted in districts outside redevelopment areas 
pursuant to section 403(j) of the Act shall not be eligible for 10 
percent bonus grants under this section.


Sec. 305.10  Grants for construction cost increases.

    (a) For the purposes of this section, construction cost increases 
means those costs which the applicant incurs or will incur in 
completing the project according to the original designs and 
specifications beyond the project costs set forth in the grant 
agreement.
    (b) EDA may increase the amount of any grant made under the 
authority of Title I of the Act when the following conditions are met:
    (1) The project is being or will be constructed in accordance with 
the original designs and specifications or in accord with final plans 
and specifications which reflect the original intent and purpose;
    (2) The project's total cost has increased because of increases in 
costs based on the original designs and specifications (or based on 
final plans and specifications reflecting the original intent and 
purpose); and
    (3) The project has incurred construction cost increases after the 
grant was made but prior to completion of the project.
    (c) Limitations on amount of grants are as follows:
    (1) The amount of a grant made under paragraph (b) of this section 
may be equal to an amount based on the percentage increase in the costs 
referred to in paragraph (b)(2) of this section, as determined by EDA; 
and
    (2) A grant for construction cost increases may not be in an amount 
which would cause the Federal share of the project's costs to exceed 
the percentage originally provided for in the grant agreement.


Sec. 305.11  Disbursements of funds for grants.

    (a) Though disbursements of funds for grants are generally made 
upon application for reimbursement, advances of funds are allowable at 
the discretion of EDA. Disbursements will be made when the following 
conditions have been met:
    (1) After execution of all contracts required for the completion of 
the project. This condition may be waived by EDA if the grantee can 
demonstrate that enforcement of the condition would place an undue 
burden on it;
    (2) For itemized and certified eligible costs incurred, as 
substantiated by such documentary evidence as EDA may require;
    (3) For the percentage of EDA participation, but in no event for 
more than the total sum stated in the financial assistance award 
accepted by the grantee;
    (4) Upon such evidence as EDA may require that grantee's 
proportionate share of funds is on deposit;
    (5) After a determination by EDA that all applicable conditions of 
the grant have been met; and
    (6) After meeting such other requirements as EDA shall establish.
    (b) Disbursements are generally made in installments, based upon 
grantee's actual rate of disbursement in accordance with the grant 
rate.


Sec. 305.12  Variance in cost of grant projects.

    (a) If the total eligible costs are equal to or exceed the amount 
stated in the financial assistance award, disbursements will be the 
amount identified in the financial assistance award.
    (b) If the total eligible project costs are less than the amount 
stated in the financial assistance award, the disbursements will be 
determined by multiplying the total eligible project costs by the grant 
rate percentage.
    (c) The grant rate percentage is determined by dividing the total 

[[Page 49689]]
    estimated project costs stated in the financial assistance award into 
the amount of EDA funding provided in the grant. For example, if the 
financial assistance award states that EDA will provide $50,000 for a 
project estimated to cost $100,000, the grant rate is 50% ($50,000 
divided by $100,000). If the actual eligible project costs were 
$100,000, EDA would provide $50,000. If the actual eligible project 
costs were $120,000, EDA would still provide $50,000. If the actual 
eligible project costs were only $80,000, EDA would provide $40,000 
(50% x $80,000).


Sec. 305.13  Amendments and changes.

    (a) Requests by grantees for amendments to a grant shall be 
submitted in writing to the EDA Regional Office for processing, and 
shall contain such information and documentation necessary to justify 
the request.
    (b) All change orders are subject to EDA approval. Any changes made 
without prior approval by EDA are made at grantee's own risk of 
suspension or termination of the project.
    (c) Changes of project scope will not be approved by EDA.


Sec. 305.14  Final inspection.

    A final inspection will be scheduled by the grantee, with EDA 
concurrence and/or participation, when the project has been completed 
and is functional and when all deficiencies have been corrected.


Sec. 305.15  Contract and subcontract clauses.

    Grantees must see that grantees' and subgrantees' contracts contain 
all required clauses in accordance with 15 CFR part 24, Uniform 
Administrative Requirements for Grants and Cooperative Agreements to 
State and Local Governments, or OMB Circular A-110, Uniform 
Administrative Requirements for Grants and Agreements with Non-profit 
Organizations, whichever is applicable.

PART 306--[RESERVED]

PART 307--LOCAL TECHNICAL ASSISTANCE, UNIVERSITY CENTER TECHNICAL 
ASSISTANCE, NATIONAL TECHNICAL ASSISTANCE, RESEARCH AND EVALUATION 
AND PLANNING

Subpart A--Local Technical Assistance

Sec.
307.1  Purpose and scope.
307.2  Applicants.
307.3  Selection process.
307.4  Evaluation criteria.
307.5  Award requirements.

Subpart B--University Center Program

307.6  Purpose and scope.
307.7  Applicants.
307.8  Selection process.
307.9  Evaluation criteria.
307.10  Award requirements.

Subpart C--National Technical Assistance

307.11  Purpose and scope.
307.12  Applicants.
307.13  Selection process.
307.14  Evaluation criteria.
307.15  Award requirements.

Subpart D--Research and Evaluation

307.16  Purpose and scope.
307.17  Eligible applicants.
307.18  Selection process.
307.19  Evaluation criteria.
307.20  Research topics and structure.
307.21  Award requirements.
Subpart E--Economic Development Districts, American Indian Tribes and 
Redevelopment Areas Economic Development Planning Grants
307.22  Purpose and scope.
307.23  Definition.
307.24  Applicants.
307.25  Selection process.
307.26  Evaluation criteria.
307.27  Award requirements.
307.28  Limitations.

Subpart F--State and Urban Economic Development Planning Grants

307.29  Purpose and scope.
307.30  Applicants.
307.31  Selection process.
307.32  Evaluation criteria.
307.33  Award requirements.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Department of Commerce Organization Order 10-4, as amended 
(40 FR 56702, as amended).

Subpart A--Local Technical Assistance


Sec. 307.1  Purpose and scope.

    Funds are awarded to eligible applicants to support the initiation 
and implementation of area, state, and regional development efforts 
designed to alleviate economic distress. This program is designed to 
help economically distressed areas to address local economic 
development problems through specific project efforts.


Sec. 307.2  Applicants.

    Eligible applicants for Local Technical Assistance grants or 
cooperative agreements include:
    (a) Public or private non-profit organizations;
    (1) National, state, area, district, or local organizations; and/or
    (2) Accredited educational institutions or non profit entities 
representing them.
    (b) Public sector organizations;
    (1) American Indian tribes;
    (2) Local governments; and
    (3) State agencies.
    (c) Other applicants such as private individuals, partnerships, 
firms, and corporations may be considered if the general public will 
benefit from the project. Technical assistance grant funds may not be 
used to start or expand a private business.


Sec. 307.3  Selection process.

    Projects will be selected in accordance with Sec. 304.1 of this 
chapter.


Sec. 307.4  Evaluation criteria.

    In addition to and/or as an elaboration of evaluation criteria set 
forth in part 304 of this chapter and to the extent practicable, 
evaluation criteria should include whether the project:
    (a) Strengthens the capability of state and local organizations and 
institutions, including non-profit development groups, to undertake and 
promote effective economic development programs targeted to people and 
areas of distress;
    (b) Benefits distressed areas;
    (c) Diversifies distressed economies;
    (d) Demonstrates innovative approaches to stimulating economic 
development in depressed areas;
    (e) Is consistent with the EDA approved Overall Economic 
Development Program (OEDP) for the area in which the project is 
located; and
    (f) Presents a reasonable, itemized budget.


Sec. 307.5  Award requirements.

    (a) Assistance will be for the period of time required to complete 
the scope of the work. This typically does not exceed twelve months.
    (b) EDA will provide grants and cooperative agreements not to 
exceed 75 percent of the proposed project costs. Applicants are 
expected to provide the remaining share. EDA may waive all or part of 
the 25 percent share of technical assistance grants if it determines 
that the nonfederal share is not reasonably available because of the 
critical nature of the situation requiring technical assistance, or for 
other good causes.
    (c) Quarterly financial reports, semi-annual progress reports and 
project products will be specified in the Special Award Conditions of 
the grant.

Subpart B--University Center Program


Sec. 307.6  Purpose and scope.

    Funds under the University Center Technical Assistance Program help 
institutions of higher education in using their own and other resources 
to address the economic development problems and opportunities of their 
service area. The University Center Technical Assistance Program is 
designed to help 

[[Page 49690]]
in improving the economies of distressed areas.


Sec. 307.7  Applicants.

    Eligible applicants for University Center Technical Assistance 
grants or cooperative agreements include public and private accredited 
educational institutions and non-profit entities representing them. In 
certain circumstances, other applicants proposing projects that benefit 
the University Center Technical Assistance Program may be considered.


Sec. 307.8  Selection process.

    (a) Projects will be selected in accordance with Sec. 304.1 of this 
chapter.
    (b) The concurrence of EDA in Washington, DC, is required for the 
selection of all new University Centers.


Sec. 307.9  Evaluation criteria.

    In addition to and/or as an elaboration of evaluation criteria set 
forth in part 304 of this chapter and to the extent practicable, 
evaluation criteria include whether the project:
    (a) Has the commitment of the highest management levels of the 
sponsoring institution;
    (b) Provides evidence of adequate nonfederal financial support, 
either from the sponsoring institution or other sources;
    (c) Outlines activities consistent with the expertise of the 
proposed staff, the academic programs, and other resources available 
within the sponsoring institution;
    (d) Presents a reasonable budget;
    (e) Documents past experience of the sponsoring institution in 
operating technical assistance programs; and
    (f) Adds to the geographic distribution of University Centers 
across the country.


Sec. 307.10  Award requirements.

    (a) Assistance will be for the period of time required to complete 
the scope of the work. This typically does not exceed twelve months.
    (b) EDA will provide grants and cooperative agreements not to 
exceed 75 percent of the proposed project costs. Applicants are 
expected to provide the remaining share. EDA may waive all or part of 
the 25 percent share of technical assistance grants if it determines 
that the nonfederal share is not reasonably available because of the 
critical nature of the situation requiring technical assistance or for 
other good cause.
    (c) Indirect costs are limited to 20 percent of the Federal and 
nonfederal shares. EDA encourages applicants to absorb all indirect 
costs for this program.
    (d) Quarterly financial reports, semi-annual progress reports and 
project products will be specified in the Special Award Conditions of 
the grant.

Subpart C--National Technical Assistance


Sec. 307.11  Purpose and scope.

    Funds under the National Technical Assistance Program are awarded 
to assure the successful initiation and implementation of development 
efforts designed to alleviate economic distress. This program is 
designed to help alleviate or prevent conditions of excessive 
unemployment or underemployment and problems of economically distressed 
areas.


Sec. 307.12  Applicants.

    Eligible applicants for National Technical Assistance grants or 
cooperative agreements include:
    (a) Public or private non-profit organizations, including:
    (1) Non-profit national, state, area, district, or local 
organizations; and
    (2) Accredited educational institutions or non-profit entities 
representing them;
    (b) Public sector organizations and Native American organizations, 
including:
    (1) American Indian tribes;
    (2) Local governments; and
    (3) State agencies.
    (c) Other applicants such as private individuals, partnerships, 
firms, and corporations may be considered if the general public will 
benefit from the project. Technical assistance grant funds may not be 
used to start or expand a private business.


Sec. 307.13  Selection process.

    (a) Projects will be selected in accordance with Sec. 304.1 of this 
chapter.
    (b) EDA may, during the course of the year, identify specific 
economic development technical assistance activities it wishes to have 
conducted. Organizations and individuals interested in being invited to 
respond to Solicitations of Applications (SOAs) to conduct such work 
should submit information on their capabilities and experience to the 
Director, Technical Assistance and Research Division, Economic 
Development Administration. See part 300 of this chapter.


Sec. 307.14  Evaluation criteria.

    In addition to and/or as an elaboration of the evaluation criteria 
described in part 304 of this chapter and to the extent practicable, 
evaluation criteria include whether the project:
    (a) Does not depend upon further EDA or other Federal funding 
assistance to achieve results;
    (b) Strengthens the capability of state and local organizations and 
institutions, including non-profit development groups, to undertake and 
promote effective economic development programs targeted to people and 
areas of distress;
    (c) Benefits severely distressed areas including both rural and 
urban counties and communities;
    (d) Diversifies distressed economies;
    (e) Demonstrates innovative approaches to stimulating economic 
development in depressed areas; and


Sec. 307.15  Award requirements.

    (a) Assistance will be for the period of time required to complete 
the scope of the work. This typically does not exceed twelve months.
    (b) EDA will provide grants and cooperative agreements not to 
exceed 75 percent of the proposed project costs. Applicants are 
expected to provide the remaining share. EDA may waive all or part of 
the 25 percent share of technical assistance grants if it determines 
that the nonfederal share is not reasonably available because of the 
critical nature of the situation requiring technical assistance or for 
other good cause.
    (c) Quarterly financial reports, semi-annual progress reports and 
project products will be specified in the Special Award Conditions of 
the grant.

Subpart D--Research and Evaluation


Sec. 307.16  Purpose and scope.

    The purposes of research and evaluation of projects are as follows:
    (a) To determine the causes of unemployment, underemployment, 
underdevelopment, and chronic depression in various areas and regions 
of the Nation;
    (b) To assist in the formulation and implementation of national, 
state, and local programs that will raise employment and income levels 
and otherwise produce solutions to problems resulting from the above 
conditions; and
    (c) To evaluate the effectiveness of programs, projects, and 
techniques used to alleviate economic distress and promote economic 
development.


Sec. 307.17  Eligible applicants.

    Eligible applicants for Research and Evaluation grants or 
cooperative agreements include:
    (a) Private individuals;
    (b) Partnerships;
    (c) Corporations;
    (d) Associations;
    (e) Colleges and universities; and
    (f) Other suitable organizations with expertise relevant to 
economic 

[[Page 49691]]
development research. Research funds may not be used to start or expand 
a private business.


Sec. 307.18  Selection process.

    (a) Projects will be selected in accordance with Sec. 304.1 of this 
chapter.
    (b) EDA may use solicitations of applications as follows: EDA may 
identify particular projects, including program evaluations it wishes 
to have conducted. Organizations and individuals interested in being 
invited to respond to Solicitations of Applications (SOAs) to conduct 
such studies should submit information on their capabilities and 
experience. See Sec. 300.4 of this chapter.


Sec. 307.19  Evaluation criteria.

    In addition to and/or as an elaboration of the evaluation criteria 
set forth in part 304 of this chapter and to the extent practicable, 
EDA will use the following criteria to evaluate research and evaluation 
proposals:
    (a) Suitability of the subject;
    (b) Potential usefulness of the research to state and local 
economic development officials and specialists;
    (c) General quality and clarity of the proposal;
    (d) Soundness and completeness of the research methodology; and
    (e) Total cost and value of proposed product in relation to cost.


Sec. 307.20  Research topics and structure.

    (a) EDA is interested in receiving proposals dealing with:
    (1) Employment and unemployment;
    (2) Income and poverty;
    (3) Rural and nonmetropolitan economic development;
    (4) Urban economic development; or
    (5) Regional and local growth and competitiveness.
    (b) Requests should be for specific, well-defined, one-time 
research projects. EDA research grants are not intended for support of 
continuing programs (permanent research programs, publication and 
information programs, periodic forecasts, etc.), or for nonresearch 
activities.
    (c) EDA normally prefers research of broad geographic scope 
covering the whole country or a large multistate region, as opposed to 
research covering in declining order of preference:
    (1) A small multistate region;
    (2) A state;
    (3) A multicounty area; or
    (4) A single city or county.
    (d) Preference will normally be given to practical cause-and-effect 
research (including hypothesis testing models) and descriptive 
analyses, as opposed to theoretical studies, forecasting models, and 
``how to'' guides.
    (e) The NOFA may announce additional areas of special research 
interest for that year.


Sec. 307.21  Award requirements.

    (a) Assistance under this program will normally be for a period not 
exceeding 15 months.
    (b) EDA will provide grants and cooperative agreements covering up 
to 100 percent of project costs.

Subpart E--Economic Development Districts, American Indian Tribes 
and Redevelopment Areas Economic Development Planning Grants


Sec. 307.22  Purpose and scope.

    The primary objective of planning assistance for administrative 
expenses is to support the formulation and implementation of economic 
development planning programs designed to create or retain permanent 
jobs and income, particularly for the unemployed and underemployed in 
the most distressed areas. Planning activities supported by these 
administrative funds must be part of a permanent and continuous process 
involving significant leadership by public officials and private 
citizens.


Sec. 307.23  Definition.

    (a) Category A grants means those made to Economic Development 
Districts and Redevelopment Areas; and
    (b) Category B grants means those made to American Indian Tribes.


Sec. 307.24  Applicants.

    Eligible applicants are economic development district 
organizations, redevelopment areas, organizations representing 
redevelopment areas (or parts of such areas), American Indian tribes, 
organizations representing multiple American Indian tribes, the 
Federated States of Micronesia, the Republic of the Marshall Islands, 
the Republic of Palau, the Commonwealth of Puerto Rico, the U.S. Virgin 
Islands, Guam, American Samoa, and the Commonwealth of the Northern 
Mariana Islands.


Sec. 307.25  Selection process.

    EDA invites currently funded grantees to apply if they are in 
compliance with their current financial assistance awards. EDA will 
select projects in accordance with Sec. 304.1 of this chapter.


Sec. 307.26  Evaluation criteria.

    (a) In addition to and/or as an elaboration of the evaluation 
criteria set forth in part 304 of this chapter and to the extent 
practicable, EDA will evaluate applicants on the following:
    (1) Quality of the proposed work program;
    (2) Management and staff capacity and qualifications;
    (3) Involvement of the local leadership in the applicant's economic 
development activities; and
    (b) Previously funded grantees, in addition to the requirements of 
paragraph (a) of this section, will be evaluated on the basis of the 
quality of their past performance.


Sec. 307.27  Award requirements.

    (a) Assistance will normally be for a 12-month period.
    (b) Grant assistance may be provided for up to 75 percent of 
project costs for Category A grants with the applicant required to 
provide the remaining share from non-federal sources. Category B grant 
assistance may be provided for up to 100 percent of project costs.
    (c) EDA will make annual determinations of satisfactory 
performance, and periodically conduct on-site performance appraisals.


Sec. 307.28  Limitations.

    (a) Except as set forth in paragraph (b) of this section, no 
planning grants to economic development district organizations will be 
extended unless at least three-fourths of the counties within the 
district boundaries indicate, by resolution or other appropriate 
document, their commitment to support the activities of the district.
    (b) Where a sufficient number of counties have withdrawn from the 
district to make compliance with this three-fourths requirement 
impossible or unreasonable, EDA may fund the continuing committed 
counties in the name of the original district organization if EDA 
determines that the remaining counties can meet the requirements for 
authorizing and designating economic development districts, as set 
forth at part 302 of this chapter.

Subpart F--State and Urban Economic Development Planning Grants


Sec. 307.29  Purpose and scope.

    Planning assistance is to strengthen significant economic 
development planning capability and initiatives of eligible applicants 
to ensure a more productive use of available resources in reducing the 
effects of economic problems by formulation and implementation of an 
economic development program. Assistance must be part of a continuous 
process involving significant local leadership from public officials 
and private citizens and should include efforts to reduce 

[[Page 49692]]
unemployment and increase incomes. These efforts should be systematic 
and coordinated when applicable, with other planning organizations in 
the area, and should strengthen the planning capabilities of 
applicants.


Sec. 307.30  Applicants.

    Eligible applicants under this program are as follows:
    (a) Governors or agencies so designated by Governors of States;
    (b) Chief executive officers of cities or counties, or their 
designated agencies or organizations; and
    (c) Sub-state planning and development organizations (including 
redevelopment areas and economic development districts).


Sec. 307.31  Selection process.

    Projects will be selected in accordance with Sec. 304.1 of this 
chapter.


Sec. 307.32  Evaluation criteria.

    In addition to and/or as an elaboration of the evaluation criteria 
set forth in part 304 of this chapter and to the extent practicable, 
EDA will evaluate projects on the following:
    (a) Overall quality of the proposal;
    (b) Extent to which the proposed planning activities are expected 
to:
    (1) Impact upon the service area's economic development needs; and
    (2) Address the problems of the unemployed and underemployed of the 
area, including minorities, workers displaced by plant closings, etc.;
    (c) The proximity of the performing office to the chief executive 
(i.e., likelihood that the activities will have a significant influence 
on the policy and decision making process);
    (d) Past performance of currently or formerly funded grantees, when 
applicable;
    (e) The amount of local participation provided as matching share to 
the Federal funds; and
    (f) Other characteristics, such as involvement of the private 
sector businesses and professional groups in the proposed activities, 
and particularly for states, the innovativeness of the proposed 
approach and replicability of the model process or results.


Sec. 307.33  Award requirements.

    (a) Assistance will be for the period of time required to complete 
the work. This period is normally 12 to 18 months.
    (b) Grant assistance may be provided for up to 75 percent of 
project costs. Applicants will be required to provide the remaining 
share, preferably in cash.

PART 308--REQUIREMENTS FOR GRANTS UNDER THE TITLE IX ECONOMIC 
ADJUSTMENT PROGRAM

Sec.
308.1  Purpose and scope.
308.2  Use of economic adjustment grants.
308.3  Eligible applicants.
308.4  Eligible areas.
308.5  Selection process.
308.6  Evaluation factors.
308.7  Award requirements.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Department of Commerce Organization Order 10-4, as amended 
(40 FR 56702, as amended).


Sec. 308.1  Purpose and scope.

    (a) The Economic Adjustment Program addresses the particular needs 
of areas experiencing changes in their economic situation which are 
causing, or threaten to cause, serious structural damage to the 
underlying economic base. Such changes may occur suddenly or over time, 
for example, as a result of industrial or corporate restructuring in 
response to technological advancements or changes in the marketplace, 
new Federal laws or requirements, reductions in defense expenditures, 
or depletion of natural resources or natural disasters.
    (b) Economic Adjustment grants are awarded for the purpose of 
enabling communities in such areas to meet the challenge of economic 
change more effectively through the development and implementation of 
strategies for inducing capital investment in production of the types 
of goods and/or services for which the community may have or be able to 
develop a comparative economic advantage, and which will lead to 
economic recovery and saving and/or creating permanent jobs.
    (c) Overall funding objectives of this program are to:
    (1) Provide impacted communities with the skills and knowledge 
needed to organize and carry out a strategic planning process focusing 
on increasing the productivity and competitiveness of a community's 
assets, such as for example, existing industries and business acumen, 
natural resources, or labor force skills;
    (2) Expand the capacity of public officials and development 
organizations to work more effectively with their business community to 
identify and address unmet needs of the types of firms identified in 
area strategies. Such needs include, for example, management assistance 
and information to help with modernization, financing, market research, 
and new product development;
    (3) Assist communities to overcome critical impediments to 
implementing their adjustment strategy. Such impediments include, for 
example, a lack of available financing for the businesses or weaknesses 
in economic infrastructure;
    (4) Enable communities to plan and coordinate:
    (i) The use of Federal, and/or other resources available to support 
economic recovery from Federal actions adversely affecting a major 
industrial sector;
    (ii) The economy of a discrete geographic region; or
    (iii) Recovery from natural disasters.
    (5) Encourage the development of innovative public/private 
approaches to economic restructuring and revitalization.


Sec. 308.2  Use of economic adjustment grants.

    (a) Grants shall be used to develop or implement economic 
adjustment strategies. Strategy grants provide the resources for 
organizing and conducting a strategic planning process. Implementation 
grants support one or more activities identified in an adjustment 
strategy approved by EDA. Such activities include the following, which 
may be undertaken singly or in combination:
    (1) Infrastructure improvements, such as for example, acquisition, 
site preparation, construction, rehabilitation and/or equipping of 
eligible facilities;
    (2) Provision of business financing through establishment of 
locally administered revolving loan funds (RLFs);
    (3) Planning, including strategy development, updating or 
refinement;
    (4) Market or industry research and analysis;
    (5) Technical assistance, including organizational development such 
as business networking, restructuring or improving the delivery of 
business services, or for feasibility studies;
    (6) Public Services;
    (7) Training; and
    (8) Other activities as justified by the economic adjustment 
strategy which meet statutory and regulatory requirements.
    (b) Adjustment grants may be disbursed by the grantee through 
direct expenditures or through redistribution by them to public and 
private entities.
    (1) Redistribution in the form of grants may only be to units of 
government or to public or private non-profit organizations.
    (2) Redistribution in the form of loans, loan guarantees or other 
appropriate assistance may be to public or private entities. 

[[Page 49693]]



Sec. 308.3  Eligible applicants.

    Eligible applicants within areas meeting the EDA eligibility 
criteria described below include:
    (a) A redevelopment area or economic development district 
established under Title IV of the Act;
    (b) An American Indian tribe;
    (c) A State;
    (d) A city or other political subdivision of a state;
    (e) A consortium of such political subdivisions;
    (f) A Community Development Corporation;
    (g) A non-profit organization determined by EDA to represent the 
interests of a redevelopment area(s) or economic development districts 
with respect to the objectives of the Economic Adjustment program; and
    (h) The Federated States of Micronesia, the Republic of the 
Marshall Islands, the Republic of Palau, the Commonwealth of Puerto 
Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of 
the Northern Mariana Islands.


Sec. 308.4  Eligible areas.

    (a) General. The area(s) to be assisted by the applicant must be 
eligible on the basis of the criteria described below for establishing 
that it is experiencing either Long-Term Economic Deterioration (LTED) 
or a Sudden and Severe Economic Dislocation (SSED) or a Special Need.
    (b) LTED. The area must be experiencing at least one of three 
economic problems:
    (1) Very high unemployment;
    (2) Low per capita income; or
    (3) Chronic distress (i.e., failure to keep pace with national 
economic growth trends over the last 5 years). Priority consideration 
will be given to those areas with two or more of these indicators. 
Eligibility is generally determined statistically. Further information 
is available from EDA's regional offices and EDRs (see Sec. 300.4 of 
this chapter).
    (c) SSED. The area must show actual or threatened permanent job 
losses that exceed the following threshold criteria:
    (1) For areas not in Metropolitan Statistical Areas:
    (i) If the unemployment rate of the Labor Market Area exceeds the 
national average, the dislocation must amount to the lesser of 2 
percent of the employed population, or 500 direct jobs; and
    (ii) If the unemployment rate of the Labor Market Area is equal to 
or less than the national average, the dislocation must amount to the 
lesser of 4 percent of the employed population, or 1,000 direct jobs.
    (2) For areas within Metropolitan Statistical Areas:
    (i) If the unemployment rate of the Metropolitan Statistical Area 
exceeds the national average, the dislocation must amount to the lesser 
of 0.5 percent of the employed population, or 4,000 direct jobs; and
    (ii) If the unemployment rate of the Metropolitan Statistical Area 
is equal to or less than the national average, the dislocation must 
amount to the lesser of 1 percent of the employed population or 8,000 
direct jobs.
    (3) In addition, 50 percent of the job loss threshold must result 
from the action of a single employer, or 80 percent of the job loss 
threshold must occur in a single standard industry classification 
(i.e., two digit SIC code).
    (4) Actual dislocations must have occurred within one year and 
threatened dislocations must be anticipated to occur within 2 years of 
the date EDA is contacted.
    (5) In the case of a Presidentially declared disaster, the area 
eligibility criteria findings are waived.
    (d) Special need. An area must be determined by EDA to require 
assistance for another kind of economic adjustment problem or problems.


Sec. 308.5  Selection process.

    (a) Projects will be selected in accordance with Sec. 304.1 of this 
chapter.
    (b) Applicants for funding of a Revolving Loan Fund (RLF) are 
generally required to submit a RLF Plan in addition to the adjustment 
strategy for the area. Guidelines on RLFs are available from the 
Regional Offices. (See part 300 of this chapter).


Sec. 308.6  Evaluation factors.

    (a) General. EDA will use the evaluation criteria set forth in part 
304 of this chapter. To the extent practicable, EDA will use the 
evaluation factors set out in this section in the selection process:
    (b) Strategy grants. EDA will review strategy grant applications to 
determine whether:
    (1) The applicant organization has the necessary authority, mandate 
and capacity to lead and manage the planning process and implementation 
of the resulting strategy;
    (2) The planning process provides for the representation of public 
and private sector entities with a contribution to make to the 
development of the strategy and/or on which accomplishment of the 
strategic objectives will depend. These entities include public program 
and service providers, trade and business associations, educational and 
research institutions, and community development corporations, etc.; 
and
    (3) The proposed scope of work focuses on the specific economic 
problems to be addressed and provides for undertaking the appropriate 
research and analysis needed to formulate a realistic, market-based, 
adjustment strategy.
    (c) Implementation grants. EDA will review implementation grant 
applications to determine whether:
    (1) Strategies have been completed; provided however, that EDA may 
in some instances, consider funding a project prior to completion of 
the strategy/plan, if:
    (i) An appropriate community planning process is underway;
    (ii) Sufficient analysis has been done to show that the proposed 
project is economically viable and potentially consistent with the 
evolving strategy; and
    (iii) The proposed project has the support of the community.
    (2) Activities or projects proposed for funding are generally 
identifiable as integral and priority elements within an adjustment 
strategy for the eligible area(s) prepared or updated within the 
preceding 2 years;
    (3) The strategy addresses the following:
    (i) An appropriately designed and conducted planning process;
    (ii) An understanding of the economic problems being addressed;
    (iii) An analysis of the industry sectors and the firms within them 
that comprise the area's economic base, and of the particular strengths 
and weaknesses of the area that contribute to, or detract from, its 
current and potential economic competitiveness;
    (iv) Strategic objectives that flow from the economic analysis and 
conclusions and focus on stimulating investment in new and/or expanding 
economic activities that offer the best prospects for revitalization 
and growth;
    (v) Appropriate and necessary resources in the area and elsewhere 
which have been identified and are/will be coordinated to support 
implementation of the strategy; and
    (vi) The performance measures which the applicant will use to 
assess progress toward accomplishing its strategic objectives.
    (4) All individual activities or projects proposed for funding are 
consistent with one or more of the Economic Adjustment Program 
objectives stated in Sec. 308.1.
    (d) Revolving Loan Fund grants. For implementation grants proposing 
to capitalize or recapitalize a Revolving Loan Fund (RLF), EDA will 
also review how the application discusses:
    (1) The need for a new or expanded public financing tool to 
complement 

[[Page 49694]]
other business assistance programs and services available to firms and/
or would-be entrepreneurs in industry sectors and/or locations targeted 
by the adjustment strategy;
    (2) The types of financing activities anticipated; and
    (3) The prospective capacity of the RLF's organization to work 
effectively with the business community and other financing providers, 
to function as an integral part of the overall economic adjustment 
effort and to manage the lending function.


Sec. 308.7  Award requirements.

    (a) Projects are expected to be completed in a timely manner 
consistent with the nature of the project. However, the maximum period 
for which assistance will be available shall not be more than 5 years 
from the fiscal year of award.
    (b) Title IX funds are awarded through grants generally not to 
exceed 75 percent of the project cost. EDA may waive all or part of the 
25 percent nonfederal share of economic adjustment assistance grants, 
because of the critical nature of the situation requiring economic 
adjustment assistance, or for other good cause. The local share must 
not be encumbered in any way that would preclude its use as required by 
the grant agreement. The local share for grants to establish or 
recapitalize a RLF must be in cash, and while the local share for 
grants for other activities may be cash or in-kind, priority 
consideration will be given to proposals with a cash local share.
    (c) Direct recipients of grant assistance shall submit a report to 
EDA each year that the assistance continues in accordance with the Act. 
The report shall include:
    (1) Whether planned activities are completed or their anticipated 
completion time;
    (2) The degree to which activities have achieved their planned 
goals as described in the plan; and
    (d) RLF grantees must submit semi-annual reports until graduated to 
annual report status.

PART 309--[RESERVED]

PART 310--[RESERVED]

PART 311--[RESERVED]

PART 312--SUPPLEMENTAL AND BASIC ASSISTANCE UNDER SECTION 304 OF 
THE ACT

Sec.
312.1  Purpose and scope.
312.2  Selection and qualification of projects for supplementary 
assistance.
312.3  Selection and qualification of projects for basic grant 
assistance.
312.4  Award requirements.
312.5  Construction management and disbursement.
312.6  Conditions for disbursement of funds.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Department of Commerce Organization Order 10-4, as amended 
(40 FR 56702, as amended).


Sec. 312.1  Purpose and scope.

    The purpose of this part is to set forth requirements governing the 
extension of assistance under section 304 of the Act (42 U.S.C. 3153). 
Funds obligated to a State shall be available for supplementing or 
making grants authorized under Titles I, III (other than planning 
grants authorized under sections 301(b) and 302), IV, and IX of the Act 
for projects within such States. The Assistant Secretary has notified 
the State of amounts available under section 304, if any, for basic and 
supplemental assistance under this part.


Sec. 312.2  Selection and qualification of projects for supplementary 
assistance.

    The selection of projects to be assisted by the use of funds in 
supplementing grants made by EDA under Titles I and III (other than 
planning grants authorized under sections 301(b) and 302), IV, and IX 
of the Act shall be made by the States and communicated to EDA on forms 
prescribed by EDA. Eligibility of a project for assistance shall be 
determined by EDA incident to the evaluation of the application for the 
underlying basic grant assistance for such project.


Sec. 312.3  Selection and qualification of projects for basic grant 
assistance.

    (a) In those cases where the States propose to use funds for basic 
grant assistance for projects meeting requirements for assistance under 
Titles I and III (other than planning grants authorized under sections 
301(b) and 302), IV, and IX of the Act, and for which funds have been 
determined to be unavailable by EDA under Titles I, III, IV, and IX, 
the States shall communicate the proposed use of the funds to EDA on 
forms prescribed by EDA. A proposal shall contain or be accompanied by 
the documentation or certification evidencing compliance with the 
requirements, conditions, and limitations as would be applicable to 
such project if it were being considered for funding under Titles I and 
III (other than planning grants authorized under sections 301(b) and 
302), IV, and IX of the Act. Eligibility and compliance of a project 
for assistance shall be determined by EDA in the same manner as 
applicable to projects receiving only supplementary assistance under 
section 304 of the Act.
    (b) A proposal by a State for the use of funds for a basic grant 
shall be accompanied by evidence that the principal governing 
authorities for the area in which a project is to be located have 
approved the project.
    (c) Funds may not be used by a State as a grant to a private 
profitmaking entity.


Sec. 312.4  Award requirements.

    States must make a contribution which is equal to at least 25 
percent of the funds being made available to a particular project from 
funds appropriated under section 304 of the Act. Participation in or 
contributions to a project by local subdivisions of a State or private 
individuals or organizations shall not be deemed contributions by the 
State as required by this section.


Sec. 312.5  Construction management and disbursement.

    Projects assisted through the use of funds in supplementing EDA 
grants under Titles I and III (other than planning grants authorized 
under sections 301(b) and 302), IV, and IX of the Act or in providing 
basic grants shall be subject to the same procedures and requirements 
relating to post-approval compliances, construction management, and 
disbursement as applicable to projects funded under Titles I, III, IV, 
and IX of the Act.


Sec. 312.6  Conditions for disbursement of funds.

    (a) As a condition for the disbursement of funds, a State shall 
conform to the requirements of the Act and provide acceptable evidence 
of compliance with requirements conditions and limitations applicable 
to projects assisted under Titles I, III (other than planning grants 
authorized under section 301(b) and 302), IV, and IX of the Act. States 
will be promptly notified of proposals which do not meet requirements.
    (b) It shall also be a condition for the disbursement of funds for 
any project that the State must make a showing:
    (1) That such funds will be used in a manner consistent with the 
State planning process assisted under part 307 of this chapter if such 
a planning process has been established;
    (2) That such State is not receiving planning assistance under part 
307 but has an economic development planning process meeting the 
standards required for assistance under part 307 of this chapter and 
that the proposed use of funds is consistent with such planning 
process; or 

[[Page 49695]]

    (3) That the project is clearly of such nature that EDA may 
conclude that its implementation would not impair the benefits intended 
to be derived from an orderly economic development planning process.

PART 313--[RESERVED]

PART 314--PROPERTY MANAGEMENT STANDARDS

Subpart A--In General

Sec.
314.1  Federal interest, applicability.
314.2  Definitions.
314.3  Use of property.
314.4  Unauthorized use.
314.5  Federal share.
314.6  Encumbrances.

Subpart B--Real Property

314.7  Title.
314.8  Recorded statement.

Subpart C--Personal Property

314.9  Recorded statement.
314.10  Revolving loan funds.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Title II, Chapter 3 of the Trade Act of 1974, as amended (19 
U.S.C. 2341-2355); Title I, Pub. L. 94-369, as amended, 90 Stat. 999 
(42 U.S.C. 6701); Pub. L. 95-31; 91 Stat. 169 (42 U.S.C. 184); 
Department of Commerce Organization Order 10-4, as amended (40 FR 
56702, as amended).

Subpart A--In General


Sec. 314.1  Federal interest, applicability.

    (a) All property that is acquired or improved with EDA grant 
assistance shall be held in trust by the recipient for the benefit of 
the project purposes under which the property was acquired or improved.
    (b) During the estimated useful life of the project, EDA retains an 
undivided equitable reversionary interest in property acquired or 
improved with EDA grant assistance.
    (c) EDA may approve the substitution of an eligible entity for a 
grantee. The original grantee remains responsible for the period it was 
the grantee, and the successor grantee holds the project property with 
the responsibilities of an original grantee under the award.
    (d) The requirements contained in this part apply solely to grant 
and cooperative agreement award projects.


Sec. 314.2  Definitions.

    As used in this part 314 of this chapter:
    Dispose includes sell, lease, abandon, or use for a purpose or 
purposes not authorized under the grant award or this part.
    Estimated useful life means that period of years from the time of 
award, determined by EDA as the expected lifespan of the project.
    Grantee includes any recipient, subrecipient, awardee, or 
subawardee of grant assistance under the Public Works and Economic 
Development Act of 1965, or under Title II, Chapter 3 of the Trade Act 
of 1974, Title I of the Public Works Employment Act of 1976, the Public 
Works Employment Act of 1977, or the Community Emergency Drought Relief 
Act of 1977, and any EDA-approved successor to such recipient, 
subrecipient, awardee or subawardee.
    Owner includes fee owner, transferee, lessee, or optionee of real 
property upon which project facilities or improvements are or will be 
located, or real property improved under a project which has as its 
purpose that the property be sold.
    Personal Property means all property other than real property. 
Project means the activity and property acquired or improved for which 
a grant is awarded. When property is used in other programs as provided 
in Sec. 314.3(b), ``project'' includes such programs.
    Property includes all forms of property, real, personal (tangible 
and intangible), and mixed.
    Real property means any land, improved land, structures, 
appurtenances thereto, or other improvements, excluding movable 
machinery and equipment. Improved land also includes land which is 
improved by the construction of such project facilities as roads, 
sewers, and water lines which are not situated directly on the land but 
which contribute to the value of such land as a specific part of the 
project purpose.


Sec. 314.3  Use of property.

    (a) The grantee or owner shall use any property acquired or 
improved in whole or in part with grant assistance only for the 
authorized purpose of the project as long as it is needed during the 
estimated useful life of the project and such property shall not be 
leased, sold, disposed of or encumbered without the written 
authorization of EDA.
    (b) In the event that EDA and the grantee determine that property 
acquired or improved in whole or in part with grant assistance is no 
longer needed for the original grant purpose, it may be used in other 
Federal grant programs, or programs that have purposes consistent with 
those authorized for support by EDA, if EDA approves such use.
    (c) When the authorized purpose of the EDA grant is to develop real 
property to be leased or sold, as determined by EDA, such sale or lease 
is permitted provided the sale is consistent with the authorized 
purpose of the grant and with applicable EDA requirements concerning, 
but not limited to, nondiscrimination and nonrelocation.
    (d) When acquiring replacement personal property of equal or 
greater value, the grantee may trade-in the property originally 
acquired or sell the original property and use the proceeds in the 
acquisition of the replacement property, provided that the replacement 
property shall be used for the project and be subject to the same 
requirements as the original property.


Sec. 314.4  Unauthorized use.

    (a) Except as provided in Sec. 314.3 (b), (c) or (d), whenever, 
during the expected useful life of the project, any property acquired 
or improved in whole or in part with grant assistance is disposed of 
without the approval of EDA, or no longer used for the authorized 
purpose of the project, the Federal Government shall be compensated by 
the grantee for the Federal share of the value of the property; 
provided that for equipment and supplies, the standards of the Uniform 
Administrative Requirements for Grants at 15 CFR part 24 and OMB 
Circular A-110 or any supplements or successors thereto, as applicable, 
shall apply.
    (b) If property is disposed of without approval, EDA may assert its 
interest in the property to recover the Federal share of the value of 
the property for the Federal Government. EDA may pursue its rights 
under both paragraphs (a) and (b) of this section, except that the 
total amount to be recovered shall not exceed the Federal share, plus 
costs and interest.


Sec. 314.5  Federal share.

    (a) For purposes of this part 314, the Federal share of the value 
of property is that percentage of the current fair market value of the 
property attributable to the EDA participation in the project (after 
deducting actual and reasonable selling and fix-up expenses, if any, 
incurred to put the property into condition for sale).
    (b) Where the grantee's interest in property is a leasehold for a 
term of years less than the depreciable remaining life of the property, 
that factor shall be considered in determining the percentage of the 
Federal share.
    (c) If property is transferred from the grantee to another eligible 
entity, as provided in Sec. 314.1(c), the Federal government shall be 
compensated the Federal share of any money paid by or on behalf of the 
successor grantee to or for the benefit of the original grantee, 

[[Page 49696]]
provided that EDA may first permit the recovery by the original grantee 
of an amount not exceeding its investment in the project nor exceeding 
that percentage of the value of the property that is not attributable 
to the EDA participation in the project.
    (d) When the Federal Government is compensated for the Federal 
share of the value of property acquired or improved in whole or in part 
with grant assistance, EDA has no further interest in the ownership, 
use or disposition of the property.


Sec. 314.6  Encumbrances.

    (a) Except as provided in Sec. 314.6(c), grantee-owned property 
acquired or improved in whole or in part with grant assistance may not 
be used to secure a mortgage or deed of trust or otherwise be used as 
collateral or encumbered except to secure a grant or loan made by a 
State or Federal agency or other public body participating in the same 
project.
    (b) Encumbering such property other than as permitted in this 
section is an unauthorized use of the property requiring compensation 
to the Federal Government as provided in Secs. 314.4 and 314.5.
    (c) EDA may waive the provisions of Sec. 314.6(a) for good cause 
when EDA determines all of the following:
    (1) All proceeds from the grant/loan to be secured by the 
encumbrance on the property shall be available only to the grantee, and 
all proceeds from such secured grant/loan shall be used only on the 
project for which the EDA grant was awarded or on related activities of 
which the project is an essential part;
    (2) The lender/grantor would not provide funds without the security 
of a lien on the project property; and
    (3) There is a reasonable expectation that the borrower/grantee 
will not default on its obligation.
    (d) EDA may waive the provisions of Sec. 314.6(a) as to an 
encumbrance on property which is acquired and/or improved by an EDA 
grant when EDA determines that the encumbrance arises solely from the 
requirements of a pre-existing water or sewer facilities or other 
utility encumbrance which by its terms extends to additional property 
connected to such facilities. EDA's determination shall make reference 
to the specific requirements (for example, ``water system and all 
accessions or additions or improvements thereto'') which extend the 
terms of the pre-existing encumbrance to the property which is acquired 
and/or improved by the EDA grant.

Subpart B--Real Property


Sec. 314.7  Title.

    (a) The grantee must furnish evidence, satisfactory in form and 
substance to EDA, that title to real property required for a project 
(other than property of the United States) is vested in the grantee, 
and that such easements, rights-of-way, state permits, or long-term 
leases as are required for the project have been or will be obtained by 
the grantee within an acceptable time. EDA may determine that, in lieu 
of title, a long-term leasehold interest for a period not less than the 
estimated useful life of the project will be acceptable, but only if 
fee title is not obtainable and the lease provisions adequately 
safeguard EDA's interest in the project.
    (b) The grantee must disclose to EDA any liens, mortgages, other 
encumbrances, reservations, reversionary interests, or other 
restrictions on title or the grantee's interest in the property. No 
such encumbrance or restriction will be acceptable if, as determined by 
EDA, the encumbrance or restriction will interfere with the 
construction, use, operation or maintenance of the project during its 
estimated useful life.


Sec. 314.8  Recorded statement.

    (a) For all projects involving the acquisition, construction or 
improvement of a building, as determined by EDA, the grantee shall 
execute a lien, covenant or other statement of EDA's interest in the 
property acquired or improved in whole or in part with the funds made 
available under the award. The statement shall specify in years the 
estimated useful life of the project and shall include, but not be 
limited to disposition, encumbrance, and compensation of Federal share 
requirements of this part 314. The statement shall be satisfactory in 
form and substance to EDA.
    (b) The statement of EDA's interest must be perfected and placed of 
record in the real property records of the jurisdiction in which the 
property is located, all in accordance with local law.
    (c) Facilities in which the EDA investment is only a small part of 
a large project, as determined by EDA, may be exempted from the 
requirements of this section.

Subpart C--Personal Property


Sec. 314.9  Recorded statement.

    For all projects which EDA determines involve the acquisition or 
improvement of significant items of tangible personal property, 
including but not limited to ships, machinery, equipment, removable 
fixtures or structural components of buildings, EDA will require the 
grantee to execute a security interest or other statement of EDA's 
interest in the property, acceptable in form and substance to EDA, 
which statement must be perfected and placed of record in accordance 
with local law, with continuances refiled as appropriate.


Sec. 314.10  Revolving loan funds.

    (a) With EDA's consent, grantees holding revolving loan fund (RLF) 
property (including but not limited to money, notes, and security 
interests) may sell such property or encumber such property as part of 
a securitization of the RLF portfolio in either case to generate money 
to be used for additional loans as part of the RLF project;
    (b) When a grantee determines that it is no longer necessary or 
desirable to operate an RLF, the RLF may be terminated; provided that, 
unless otherwise stated in the award, the Federal Government shall be 
compensated the Federal share of the value of the RLF property. The 
Federal share shall apply proportionate to the percentage of the 
capitalization of the RLF contributed by EDA to all RLF property 
including the present value of all outstanding loans; provided that the 
grantee may use for other economic development purposes with EDA's 
approval that portion of such RLF property which EDA determines is 
attributable to the payment of interest on RLF loans and not used by 
the grantee for administrative or other allowable expenses.

PART 315--CERTIFICATION AND ADJUSTMENT ASSISTANCE FOR FIRMS AND 
INDUSTRIES

Subpart A--General Provisions

Sec.
315.1  Purpose and scope.
315.2  Definitions.
315.3  Confidential business information.
315.4  Eligible applicants.
315.5  Selection process.
315.6  Evaluation criteria.
315.7  Award requirements.

Subpart B--Trade Adjustment Assistance Centers

315.8  Purpose and scope.

Subpart C--Certification of Firms

315.9  Certification requirements.
315.10  Processing petitions for certification.
315.11  Hearings, appeals and final determinations.
315.12  Termination of certification and procedure.
315.13  Loss of certification benefits. 

[[Page 49697]]


Subpart D--Assistance to Industries

315.14  Assistance to firms in import-impacted industries.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Title II, Chapter 3 of the Trade Act of 1974, as amended, (19 
U.S.C. 2341-2355); Department of Commerce Organization Order 10-4, 
as amended (40 FR 56702, as amended).

Subpart A--General Provisions


Sec. 315.1  Purpose and scope.

    The regulations in this part implement certain changes to 
responsibilities of the Secretary of Commerce under Chapter 3 of Title 
II of the Trade Act of 1974, as amended (19 U.S.C. 2341 et. seq.) 
(Trade Act), concerning adjustment assistance for firms. The statutory 
authority and responsibilities of the Secretary of Commerce relating to 
adjustment assistance are delegated to EDA. EDA has the duties of 
certifying firms as eligible to apply for adjustment assistance, 
providing technical adjustment assistance to eligible recipients, and 
providing assistance to organizations representing trade injured 
industries.


Sec. 315.2  Definitions.

    As used in this part 315:
    Adjustment assistance is technical assistance provided to firms or 
industries under Chapter 3 of Title II of the Trade Act.
    Adjustment proposal means a certified firm's plan for improving its 
economic situation.
    Certified firm means a firm which has been determined by EDA to be 
eligible to apply for adjustment assistance.
    Confidential business information means information submitted to 
EDA or TAACs by firms that concerns or relates to trade secrets for 
commercial or financial purposes which is exempt from public disclosure 
under 5 U.S.C. 552(b)(4), 5 U.S.C. 552 b(c)(4) and 15 CFR part 4.
    Decreased absolutely means a firm's sales or production has 
declined:
    (1) Irrespective of industry or market fluctuations; and
    (2) Relative only to the previous performance of the firm;
    Directly competitive means:
    (1) Articles which are substantially equivalent for commercial 
purpose, i.e., are adapted to the same function or use and are 
essentially interchangeable; and
    (2) Oil or natural gas (exploration, drilling or otherwise 
produced);
    Firm means an individual proprietorship, partnership, joint 
venture, association, corporation (including a development 
corporation), business trust, cooperative, trustee in bankruptcy or 
receiver under court decree and includes agricultural entities and 
those which explore, drill or otherwise produce oil or natural gas. 
When a firm owns or controls other firms as described below, for 
purposes of receiving benefits under this part, the firm and such other 
firms may be considered a single firm when they produce like or 
directly competitive articles or are exerting essential economic 
control over one or more production facilities. Such other firms 
include:
    (1) Predecessor;
    (2) Successor;
    (3) Affiliate; or
    (4) Subsidiary.
    A group of workers threatened with total or partial separation 
means there is reasonable evidence that such total or partial 
separation is imminent;
    Like articles means articles which are substantially identical in 
their intrinsic characteristics.
    Partial separation means either:
    (1) A reduction in an employee's work hours to 80 percent or less 
of the employee's average weekly hours during the year preceding such 
reduction; or
    (2) A reduction in the employee's weekly wage to 80 percent or less 
of his/her average weekly wage during the year preceding such 
reduction.
    Person means individual, organization or group.
    The record means:
    (1) A petition for certification of eligibility to qualify for 
adjustment assistance;
    (2) Any supporting information submitted by the petitioner;
    (3) Report of the EDA investigation in regard to the petition; and
    (4) Any information developed during the investigation or in 
connection with any public hearing held on the petition.
    Recipient means a firm, Trade Adjustment Assistance Center or other 
party receiving adjustment assistance or through which adjustment 
assistance is provided under the Trade Act.
    A significant number or proportion of workers means 5 percent of 
the firm's work force or 50 workers, whichever is less. Partially 
separated workers shall be taken into account in proportion to their 
percentage of separation, and for agricultural operations that are sole 
proprietorships, an individual farmer is considered a significant 
number or proportion of workers.
    Substantial interest means a direct, material, economic interest in 
the certification or noncertification of the petitioner.
    Technical Assistance means assistance provided to firms or 
industries under Chapter 3 of Title II of the Trade Act.
    A totally separated worker means an employee who has been laid off 
or whose employment has been terminated by his/her employer for lack of 
work.


Sec. 315.3  Confidential business information.

    EDA will follow the procedures set forth in 15 CFR 4.7, and 
submitters should so designate any information they believe 
confidential.


Sec. 315.4  Eligible applicants.

    (a) Trade Adjustment Assistance Centers (TAACs) are eligible 
applicants. A TAAC can be:
    (1) A university affiliate;
    (2) State or local government affiliate;
    (3) Non-profit organization.
    (b) Firms;
    (c) Organizations assisting or representing industries in which a 
substantial number of firms or workers have been certified as eligible 
to apply for adjustment assistance under sections 223 or 251 of the 
Trade Act including the following:
    (1) Existing agencies;
    (2) Private individuals;
    (3) Firms;
    (4) Universities;
    (5) Institutions;
    (6) Associations;
    (7) Unions; or
    (8) Other non-profit industry organizations.


Sec. 315.5  Selection process.

    (a) TAACs are selected in accordance with the following:
    (1) Currently funded TAACs are invited by EDA to submit either new 
or amended applications, provided they have performed in a satisfactory 
manner and complied with previous and or current conditions in their 
cooperative agreements with EDA and contingent upon availability of 
funds. Such TAACs shall submit an application on a form approved by 
OMB, as well as a proposed budget, narrative scope of work, and such 
other information as requested by EDA. Acceptance of an application or 
amended application for a cooperative agreement does not assure funding 
by EDA; and
    (2) New TAACs will be invited to submit proposals, and if they are 
acceptable, EDA will invite an application on a form approved by OMB. 
An application will be accompanied by a narrative scope of work, 
proposed budget and such other information as requested by EDA. 
Acceptance of an application does not assure funding by EDA.
    (b) Firms are selected in accordance with the following: 

[[Page 49698]]

    (1) Firms may apply for certification generally through a TAAC by 
filling out a petition for certification. The TAAC will provide 
technical assistance to firms wishing to fill out such petitions;
    (2) Once firms are certified in accordance with the procedures 
described in Secs. 315.9 and 315.10, an adjustment proposal is usually 
submitted to EDA which is prepared with technical assistance from a 
party independent of the firm, usually the TAAC;
    (3) Certified firms which have submitted acceptable adjustment 
proposals within the time limits described in Sec. 315.13 below, may 
begin implementation of such proposal, generally through the TAAC and 
often with Technical Assistance from the TAAC, by submitting a request 
to the TAAC to provide assistance in implementing an accepted 
adjustment proposal; and
    (4) EDA determines whether or not to provide assistance for 
adjustment proposals based upon Sec. 315.6(c)(2).
    (c) Organizations representing trade injured industries must meet 
with an EDA representative to discuss the industry problems, 
opportunities and assistance needs, and if invited by EDA may then 
submit an application as approved by OMB, as well as a scope of work 
and proposed budget.


Sec. 315.6  Evaluation criteria.

    (a) Currently funded TAACs are generally evaluated based on the 
following:
    (1) How well they have performed under cooperative agreements with 
EDA and if they are in compliance with the terms and conditions of such 
cooperative agreements;
    (2) Proposed scope of work, budget and application or amended 
application; and
    (3) The availability of funds.
    (b) New TAACs are generally evaluated on the following:
    (1) Demonstrates competence in administering business assistance 
programs;
    (2) Background and experience of staff;
    (3) Proposed scope of work, budget and application; and
    (4) The availability of funding.
    (c) Firms are generally evaluated based on the following:
    (1) For certification, firms' petitions are selected strictly on 
the basis of conformance with requirements set forth in Sec. 315.9 
below;
    (2) An adjustment proposal is evaluated on the basis of the 
following:
    (i) The proposal must be submitted to EDA within 2 years after the 
date of the certification of the firm; and
    (ii) The adjustment proposal must include a description of any 
technical assistance requested to implement such proposal including 
financial and other supporting documentation as EDA determines is 
necessary, based upon either:
    (A) An analysis of the firm's problems, strengths and weaknesses 
and an assessment of its prospects for recovery; or
    (B) If EDA so determines, an acceptable adjustment proposal can be 
prepared on the basis of other available information.
    (iii) The adjustment proposal must be evaluated to determine that 
it:
    (A) Is reasonably calculated to contribute materially to the 
economic adjustment of the firm, i.e., that such proposal will be a 
constructive aid to the firm in establishing a competitive position in 
the same or a different industry;
    (B) Gives adequate consideration to the interests of a sufficient 
number of separated workers of the firm, by providing for example that 
the firm will:
    (1) Give a rehiring preference to such workers;
    (2) Make efforts to find new work for a number of such workers; and
    (3) Assist such workers in obtaining benefits under available 
programs.
    (C) Demonstrates that the firm will make all reasonable efforts to 
use its own resources for economic development, though under certain 
circumstances, resources of related firm or major stockholders will 
also be considered.
    (d) Organizations representing trade injured industries must 
demonstrate that the industry is injured by increased imports and that 
the activities to be funded will yield some short-term actions that the 
industry itself (and individual firms) can and will take toward the 
restoration of the industry's international competitiveness.
    (1) The emphasis is on practical results that can be implemented in 
the near term, and long-term research and development activities are 
given low priority.
    (2) It is also expected that the industry will continue activities 
on its own without the need for continued Federal assistance.


Sec. 315.7  Award requirements.

    (a) Award periods are as follows:
    (1) TAACs are generally funded for 12 months;
    (2) Firms are generally provided assistance over a 2-year period; 
and
    (3) Organizations representing trade injured industries are 
generally funded for 12 months.
    (b) Matching requirements are as follows:
    (1) There are no matching requirements for certification assistance 
provided by the TAACs to firms or for administrative expenses for the 
TAACs;
    (2) All adjustment proposals and implementation assistance must 
include not less than 25% nonfederal match, provided to the extent 
practicable, by firms being assisted; and
    (3) Contributions of at least 50% of the total project cash cost, 
in addition to appropriate in kind contribution, are expected from 
organizations representing trade injured industries.

Subpart B--Trade Adjustment Assistance Centers


Sec. 315.8   Purpose and scope.

    (a) Trade Adjustment Assistance Centers (TAACs) are available to 
assist firms in all fifty states, the District of Columbia and the 
Commonwealth of Puerto Rico in obtaining adjustment assistance. TAACs 
provide technical assistance in accordance with this subpart either 
through their own staffs or by arrangements with outside consultants. 
Information concerning TAACs serving particular areas can be obtained 
from EDA (See part 300 of this chapter).
    (b) Prior to submitting a request for technical assistance to EDA, 
a firm should determine the extent to which the required technical 
assistance can be provided through a TAAC. EDA will provide technical 
assistance through TAACs whenever EDA determines that such assistance 
can be provided most effectively in this manner. Requests for technical 
assistance will normally be made through TAACs.
    (c) TAACs generally provide technical assistance to a firm by 
providing the following:
    (1) Assistance to a firm in preparing its petition for 
certification;
    (2) Assistance to a certified firm in diagnosing its strengths and 
weaknesses and developing an adjustment proposal for the firm; and
    (3) Assistance to a certified firm in the implementation of the 
adjustment proposal for the firm.

Subpart C--Certification of Firms


Sec. 315.9   Certification requirements.

    A firm will be certified eligible to apply for adjustment 
assistance based upon the petition for certification if EDA determines, 
under section 251(c) of the Trade Act, that:
    (a) A significant number or proportion of workers in such firm have 
become or are threatened to become totally or partially separated; 

[[Page 49699]]

    (b) Either sales or production, or both of the firm have decreased 
absolutely; or sales or production, or both of any article that 
accounted for not less than 25 percent of the total production or sales 
of the firm during the 12-month period preceding the most recent 12-
month period for which data are available have decreased absolutely; 
and
    (c) Increases of imports (absolute or relative to domestic 
production) of articles like or directly competitive with articles 
produced by such firm contributed importantly to such total or partial 
separation or threat thereof, and to such decline in sales or 
production; provided that imports will not be considered to have 
contributed importantly if other factors were so dominant, acting 
singly or in combination, that the worker separation or threat thereof, 
or decline in sales or production would have been essentially the same 
irrespective of the influence of imports.


Sec. 315.10  Processing petitions for certification.

    (a) Firms are encouraged to consult with a TAAC or EDA for guidance 
and assistance in the preparation of their petitions for certification.
    (b) A firm seeking certification shall complete a petition (OMB 
Control Number 0610-0091) in the form prescribed by EDA with the 
following information about such firm:
    (1) Identification and description of the firm, including legal 
form of organization, economic history, major ownership interests, 
officers, directors, management, parent company, subsidiaries or 
affiliates, and production and sales facilities;
    (2) Description of goods and services produced and sold;
    (3) Description of imported articles like or directly competitive 
with those produced;
    (4) Data on its sales, production and employment for the 3 most 
recent years;
    (5) Copies of its audited financial statements or if not available 
unaudited financial statements and Federal income tax returns for the 3 
most recent years;
    (6) Copies of unemployment insurance reports for the 3 most recent 
years;
    (7) Information concerning its major customers and their purchases; 
and
    (8) Such other information as EDA may consider material.
    (c) EDA shall determine whether the petition has been properly 
prepared and can be accepted. Immediately thereafter, EDA shall notify 
the petitioner that the petition has been accepted or advise the 
petitioner that the petition has not been accepted, but may be 
resubmitted at any time without prejudice when the specified 
deficiencies have been corrected and the resubmission will be treated 
as a new petition.
    (d) A notice of acceptance of a petition shall be published in the 
Federal Register.
    (e) An investigation shall be initiated by EDA to determine whether 
the petitioner meets requirements set forth in section 251(c) of the 
Trade Act and Sec. 315.9 above. The investigation can be terminated at 
any time for failure to meet such requirements. A report of this 
investigation shall become part of the record upon which a 
determination of the petitioner's eligibility to apply for adjustment 
assistance shall be made.
    (f) A petitioner may withdraw a petition for certification if a 
request for withdrawal is received by EDA before a certification 
determination or denial is made. Such firm may submit a new petition at 
any time thereafter in accordance with the requirements of this section 
and Sec. 315.9.
    (g) Following acceptance, EDA shall decide what action to take on 
petitions for certification as follows:
    (1) Make a determination based on the record as soon as possible 
after all material has been submitted. In no event may the period 
exceed 60 days from the date on which the petition was accepted; and
    (2) Either certify the petitioner eligible to apply for adjustment 
assistance or deny the petition, and in either event EDA shall promptly 
give notice of the action in writing to the petitioner. A notice to the 
petitioner or any parties requesting notice as specified in 
Sec. 315.10(d) of a denial of a petition shall specify the reasons upon 
which the denial is based. If a petition is denied, the petitioner 
shall not be entitled to resubmit its petition within one year from the 
date of the denial. At the time of the denial of a petition EDA may 
waive the 1-year limitation for good cause.


Sec. 315.11   Hearings, appeals and final determinations.

    (a) Any petitioner may appeal to EDA from a denial of certification 
provided that the appeal is received by EDA in writing by personal 
delivery or by registered or certified mail within 60 days from the 
date of notice of denial under Sec. 315.10(g). The appeal shall state 
the grounds on which the appeal is based, including a concise statement 
of the supporting facts and law. The decision of EDA on the appeal 
shall be the final determination within the Department of Commerce. In 
the absence of an appeal by the petitioner under this paragraph, such 
final determination shall be determined under Sec. 315.10(g).
    (b) A firm, its representative or any other interested domestic 
party aggrieved by a final determination under paragraph (a) of this 
section may, within 60 days after notice of such determination, begin a 
civil action in the United States Court of International Trade for 
review of such determination in accordance with section 284 of the 
Trade Act (19 U.S.C. 2395).
    (c) EDA will hold a public hearing on an accepted petition not 
later than 10 days after the date the publication of the Notice of 
Acceptance in the Federal Register if requested by either the 
petitioner or any other person found by EDA to have a substantial 
interest in the proceedings, under procedures, as follows:
    (1) The petitioner and other interested persons shall have an 
opportunity to be present, to produce evidence, and to be heard;
    (2) A request for public hearing must be delivered by hand or by 
registered mail to EDA. A request by a person other than the petitioner 
shall contain:
    (i) The name, address, and telephone number of the person 
requesting the hearing; and
    (ii) A complete statement of the relationship of the person 
requesting the hearing to the petitioner and the subject matter of the 
petition, and a statement of the nature of its interest in the 
proceedings.
    (3) If EDA determines that the requesting party does not have a 
substantial interest in the proceedings, a written notice of denial 
shall be sent to the requesting party. The notice shall specify the 
reasons for the denial;
    (4) EDA shall publish a notice of a public hearing in the Federal 
Register, containing the subject matter, name of petitioner, and date, 
time and place of hearing;
    (5) EDA shall appoint the presiding officer of the hearing who 
shall determine all procedural questions;
    (6) Procedures for requests to appear are as follows:
    (i) Within 5 days after publication of the Notice of Public Hearing 
in the Federal Register, each party wishing to be heard must file a 
request to appear with EDA. Such request may be filed by:
    (A) The party requesting such hearing;
    (B) Any other party with substantial interest; or
    (C) Any other party demonstrating to the satisfaction of the 
presiding officer that it should be allowed to be heard.
    (ii) The party filing the request shall submit the names of the 
witnesses and a summary of the evidence it wishes to present; and 

[[Page 49700]]

    (iii) Such requests to appear may be approved as deemed appropriate 
by the presiding officer.
    (7) Witnesses will testify in the order and for the time designated 
by the presiding officer, except that the petitioner shall have the 
opportunity to make its presentation first. After testifying, a witness 
may be questioned by the presiding officer or his/her designee. The 
presiding officer may allow any person who has been granted permission 
to appear to question the witnesses for the purpose of assisting him/
her in obtaining relevant and material facts on the subject matter of 
the hearing;
    (8) The presiding officer may exclude evidence which s/he deems 
improper or irrelevant. Formal rules of evidence shall not be 
applicable. Documentary material must be of a size consistent with ease 
of handling, transportation, and filing. Large exhibits may be used 
during the hearing, but copies of such exhibits must be provided in 
reduced size for submission as evidence. Two copies of all documentary 
evidence must be furnished to the presiding officer during the hearing;
    (9) Briefs may be presented to the presiding officer by parties who 
have entered an appearance. Three copies of such briefs shall be filed 
with the presiding officer within 10 days of the completion of the 
hearing; and
    (10) Procedures for transcripts are as follows:
    (i) All hearings will be transcribed. Persons interested in 
transcripts of the hearings may inspect them at the U.S. Department of 
Commerce in Washington, DC, or purchase copies as provided in 15 CFR 
part 4, Public Information; and
    (ii) Confidential business information as determined by EDA shall 
not be a part of the transcripts. Any confidential business information 
may be submitted directly to the presiding officer prior to the 
hearing. Such information shall be labeled Confidential Business 
Information. For the purpose of the public record, a brief description 
of the nature of the information shall be submitted to the presiding 
officer during the hearing.


Sec. 315.12   Termination of certification and procedure.

    (a) Whenever EDA determines that a certified firm no longer 
requires adjustment assistance or for other good cause, EDA will 
terminate the certification and promptly publish notice of such 
termination in the Federal Register. The termination will take effect 
on the date specified in the Notice.
    (b) EDA shall immediately notify the petitioner and shall state the 
reasons for such termination.


Sec. 315.13   Loss of certification benefits.

    A firm may fail to obtain benefits of certification, regardless of 
whether its certification is terminated for any of the following 
reasons:
    (a) Failure to submit an acceptable adjustment proposal within 2 
years after date of certification. While approval of an adjustment 
proposal may occur after the expiration of such 2-year period, an 
acceptable adjustment proposal must be submitted before such 
expiration;
    (b) Failure to submit documentation necessary to start 
implementation or modify its request for adjustment assistance 
consistent with its adjustment proposal within 6 months after approval 
of the adjustment proposal and 2 years have elapsed since the date of 
certification. If the firm anticipates that a longer period will be 
required to submit documentation, such longer period should be 
indicated in its adjustment proposal. If the firm becomes unable to 
submit its documentation within the allowed time, it should notify EDA 
in writing of the reasons for the delay and submit a new schedule. EDA 
has the discretion to accept or refuse a new schedule;
    (c) If the firm's request for adjustment assistance has been 
denied, the time period allowed for the submission of any documentation 
in support of such request has expired, and 2 years have elapsed since 
the date of certification; or
    (d) Failure to diligently pursue an approved adjustment proposal, 
and 2 years have elapsed since the date of certification.

Subpart D--Assistance to Industries


Sec. 315.14   Assistance to firms in import-impacted industries.

    (a) Whenever the International Trade Commission makes an 
affirmative finding under section 202(B) of the Trade Act that 
increased imports are a substantial cause of serious injury or threat 
thereof with respect to an industry, EDA shall provide to the firms in 
such industry, assistance in the preparation and processing of 
petitions and applications for benefits under programs which may 
facilitate the orderly adjustment to import competition of such firms.
    (b) EDA may provide technical assistance, on such terms and 
conditions as EDA deems appropriate for the establishment of industry 
wide programs for new product development, new process development, 
export development or other uses consistent with the purposes of this 
part.
    (c) Expenditures for technical assistance under this section may be 
up to $10,000,000 annually per industry and shall be made under such 
terms and conditions as EDA deems appropriate.

PART 316--GENERAL REQUIREMENTS FOR FINANCIAL ASSISTANCE

Sec.
316.1  Environment.
316.2  Certification as to waste treatment.
316.3  Excess capacity.
316.4  Nonrelocation.
316.5  Electric and gas facilities.
316.6  Procedures in disaster areas.
316.7  Project servicing for loans and loan guarantees.
316.8  Public information.
316.9  Relocation assistance and land acquisition policies.
316.10  Additional requirements; Federal policies and procedures.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Title II, Chapter 3 of the Trade Act of 1974, as amended, (42 
U.S.C. 2341-2355); Department of Commerce Organization Order 10-4, 
as amended (40 FR 56702, as amended).


Sec. 316.1  Environment.

    (a) The purpose of this section is to ensure proper environmental 
review of EDA's actions under PWEDA and the Trade Act and to comply 
with the Federal environmental statutes and regulations in making a 
determination that balances economic development and environmental 
enhancement and mitigates adverse environmental impacts to the extent 
possible.
    (b) Environmental assessments of EDA actions will be conducted in 
accordance with the statutes, regulations, and Executive Orders listed 
below. This list will be supplemented and modified, as applicable, in 
EDA's annual FY NOFA.
    (1) National Environmental Policy Act of 1969 (NEPA), Pub. L. 91-
190, as amended, 42 U.S.C. 4321 et seq. as implemented under 40 CFR 
parts 1500 et seq.;
    (2) Clean Air Act, Pub. L. 88-206 as amended, 42 U.S.C. 7401 et 
seq.;
    (3) Clean Water Act (Federal Water Pollution Control Act), c. 758, 
62 Stat. 1152 as amended, 33 U.S.C. 1251 et seq.;
    (4) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (CERCLA), Pub. L. 96-510, as amended, 42 U.S.C. 
9601 et seq. and the Superfund Amendments and Reauthorization Act of 
1986 (SARA), Pub. L. 99-499, as amended;
    (5) Floodplain Management Executive Order 11988 (May 24, 1977);
    (6) Protection of Wetlands Executive Order 11990 (May 24, 1977); 

[[Page 49701]]

    (7) Resource Conservation and Recovery Act of 1976, Pub. L. 94-580 
as amended, 42 U.S.C. 9601 et seq.;
    (8) Historical and Archeological Data Preservation Act, Pub. L. 86-
523, as amended, 16 U.S.C. 469a-1 et seq.;
    (9) National Historic Preservation Act of 1966, Pub. L. 89-665, as 
amended, 16 U.S.C. 470 et seq.;
    (10) Endangered Species Act of 1973, Pub. L. 93-205, as amended, 16 
U.S.C. 1531 et seq.;
    (11) Coastal Zone Management Act of 1972, Pub. L. 92-583, as 
amended, 16 U.S.C. 1451 et seq.;
    (12) Flood Disaster Protection Act of 1973, Pub. L. 93-234, as 
amended, 42 U.S.C. 4002 et seq.;
    (13) Safe Drinking Water Act of 1974, Pub. L. 92-523, as amended, 
42 U.S.C. 300f-j26;
    (14) Wild and Scenic Rivers Act, Pub. L. 90-542, as amended, 16 
U.S.C. 1271 et seq.;
    (15) Environmental Justice in Minority Populations and Low-Income 
Populations Executive Order 12898 (February 11, 1994);
    (16) Farmland Protection Policy Act, Pub. L. 97-98, as amended, 7 
U.S.C. 4201 et seq.; and
    (17) Other Federal Environmental Statutes and Executive Orders as 
applicable.


Sec. 316.2  Certification as to waste treatment.

    Whenever the Environmental Protection Agency (EPA) has established 
a permitting and enforcement system for the regulation and monitoring 
of the design and operation of wastewater treatment plants which is 
delegated to the states for certification, EDA under PWEDA will accept 
such state certifications in lieu of certification by EPA.


Sec. 316.3  Excess capacity.

    (a) All projects funded by EDA under PWEDA are subject to section 
702 of PWEDA and EDA shall determine section 702 compliance based on 
the following:
    (1) A Section 702 study;
    (2) A Section 702 report; or
    (3) A Section 702 exemption.
    (b) Definitions: For purposes of Sec. 316.3 only:
    Capacity means the maximum amount of goods or services that can be 
produced or supplied by existing competitive enterprises using existing 
facilities.
    Demand means the amount of goods or services consumers in the 
market area are willing to buy at current prices.
    Efficient Capacity means that part of capacity produced or supplied 
through the use of contemporary structures, machinery and equipment, 
designs and technologies.
    Existing Competitive Enterprise means an established facility which 
either produces the same product or supplies the same service to all or 
a substantial part of the market area.
    Market Area means the geographic area within which products and/or 
services compete for purchase by customers.
    Primary Beneficiary means one or more firms within the same 
industry which may reasonably be expected to use 50 percent or more of 
the capacity of an EDA-financed facility(ies) in order to expand the 
supply of goods or services sold in competition with other producers or 
suppliers of such goods or services.
    (c) For certain types of EDA projects, a section 702 study of 
competitive impact will be used as a basis for a decision by EDA that 
such project would not violate section 702 of PWEDA. A section 702 
study is required when either of the following situations exists:
    (1) Where a primary beneficiary is present; or
    (2) When EDA so determines.
    (d) The following procedures shall be followed to the extent 
necessary to provide EDA with sufficient information to prepare a 702 
study:
    (1) The primary beneficiary shall submit as part of the project 
selection process the following information with regard to each product 
or service affected by the project:
    (i) A detailed description;
    (ii) Current and projected amount and value of annual sales;
    (iii) Distribution channel(s) and geographic marketing area; and
    (iv) Name of other suppliers and amount presently available in the 
market area.
    (2) If the primary beneficiary has conducted or commissioned a 
market study supporting the proposed project, such market study shall 
be made available to EDA early in the project selection process for 
verification and possible use by EDA as a basis for the 702 study or 
report.
    (e) A section 702 report (a summary of supply/demand factors) will 
form an acceptable basis on which to make a section 702 compliance 
finding when the characteristics described in paragraph (c) (1) or (2) 
of this section are present and in addition, it is readily apparent 
that the resulting increase in output alleviates a shortage of goods or 
services in the market area.
    (f) EDA will make a blanket finding of compliance with section 702 
of PWEDA for those projects which have one or more of the following 
characteristics:
    (1) The project has no primary beneficiary;
    (2) The beneficiary's projected new or additional annual output is 
less than 1 percent of the last recorded annual output in the market 
area;
    (3) The project will replace or restore capacity recently destroyed 
by flood, fire, wind, or other natural disaster;
    (4) The project will assure the retention of the physical capacity 
and/or employment;
    (5) The project will replace, rebuild or modernize, within the same 
labor market area, facilities displaced by official governmental 
action;
    (6) The project assures completion of a project previously assisted 
by EDA where further funding is required because of revised project 
cost estimates, rather than for additional productive capacity;
    (7) When the purpose of research or evaluation grants or 
cooperative agreements is to determine the causes of or to assist in 
the formulation of programs to address, or to provide personnel needed 
to conduct programs concerning unemployment, underemployment, 
underdevelopment, or chronic depression;
    (8) When the purpose of planning grants to state or local 
governments, or regional or area organizations is to fund 
administrative expenses of a planning process or for the preparation of 
economic development plans or programs;
    (9) When a technical assistance grant is not designed to assist a 
specific firm or group of firms or lead directly to expanded productive 
capacity or output of specific goods or services for sale in a 
designated market area; and
    (10) PWIP projects.


Sec. 316.4  Nonrelocation.

    (a) General requirements for nonrelocation for funding under PWEDA 
are as follows:
    (1) EDA financial assistance will not be used to assist employers 
who transfer jobs from one commuting area to another. A commuting area 
(``area'') is that area defined by the distance people travel to work 
in the locality of the project receiving EDA financial assistance;
    (2) Every applicant for EDA financial assistance has an affirmative 
duty to inform EDA of any employer who will benefit from such 
assistance who will transfer jobs (not persons) in connection with the 
EDA grant;
    (3) EDA will determine compliance with this requirement prior to 
grant award based upon information provided 

[[Page 49702]]
by the applicant during the project selection process; and
    (4) Each applicant and identified primary beneficiary of EDA 
assistance, which for purposes of this section means an entity 
providing the economic justification for the project, must submit its 
certification of compliance with this section, and other applicable 
information as determined by EDA.
    (b) The nonrelocation requirements stated in paragraph (a) of this 
section shall not apply to businesses which:
    (1) Relocated to the area prior to the date of applicant's request 
for EDA assistance;
    (2) Have moved or will move into the area primarily for reasons 
which have no connection to the EDA assistance;
    (3) Will expand employment in the area where the project is to be 
located substantially beyond employment in the area in which the 
business had originally been located;
    (4) Are relocating from technologically obsolete facilities to be 
competitive;
    (5) Are expanding into the new area by adding a branch, affiliate, 
or subsidiary while maintaining employment levels in the old area or 
areas; or
    (6) Are determined by EDA to be exempt.


Sec. 316.5  Electric and gas facilities.

    (a) General requirements for funding under PWEDA are as follows:
    (1) Except for those types of facilities listed in paragraph 
(a)(2), (b) and (c) of this section, no financial assistance authorized 
under PWEDA will be used to finance:
    (i) The cost of facilities for the generation, transmission, or 
distribution of electrical energy; or
    (ii) For the production or transmission of natural, manufactured or 
mixed gas.
    (2) Electric or gas facilities are eligible to receive EDA funding 
under PWEDA if they meet the following requirements:
    (i) Those specifically authorized by Congress; or
    (ii) If not funded, jobs will be lost or reduced or new jobs will 
not be created, provided the following findings are made:
    (A) EDA determines that project financing is not available from 
private lenders or other Federal agencies on terms which, in the 
opinion of EDA, would permit completion and operation of the project; 
and
    (B) The Federal or state agency regulating such facility makes one 
of the following determinations:
    (1) There would not be any competition with existing public 
utilities under their jurisdiction in public rate charges; and
    (2) There would be such competition as described in paragraph 
(a)(2)(ii) (B)(1) of this section, but existing public utilities are 
unable or unwilling to meet the increase in demand for such energy.
    (b) Electrical facilities may also be funded if such funds would be 
used for:
    (1) An internal electrical system (system) on the consumer side of 
the distribution metering station, including for example, conductors, 
conduits, structures, switchgear, transformers and other appurtenances; 
provided such system meets the following requirements:
    (i) It is owned by the owner of all or a portion of the facility 
served by such system; and
    (ii) Electricity carried on such system will not be resold.
    (2) Standby electrical generating equipment, provided that such 
equipment is:
    (i) Incapable of and not intended to provide service on a regular 
and continuous basis; and
    (ii) Needed to prevent significant damage or harm resulting from a 
power failure.
    (3) Facilities for replacement or expansion of existing public 
utilities when the area served will remain unchanged;
    (4) Otherwise eligible components of projects which generate 
electricity but which also have other purposes, such as heating; or
    (5) Electrical generation facilities which use waste as an 
alternative to conventional fuels.
    (c) Gas facilities, including those needed for local storage, 
regulation and consumer metering, may also be funded if for the 
distribution of gas from the plant and metering station to consumers 
within a particular area.


Sec. 316.6  Procedures in disaster areas.

    When non-statutory EDA administrative or procedural conditions for 
financial assistance award cannot be met by applicants under PWEDA as 
the result of a disaster, EDA may waive such conditions.


Sec. 316.7  Project servicing for loans and loan guarantees.

    EDA will provide project servicing to borrowers and lenders who 
received EDA loans and/or guaranteed loans under any programs 
administered by EDA. This includes but is not limited to loans under 
PWEDA, the Trade Act and the Community Emergency Drought Relief Act of 
1977.
    (a) EDA will continue to monitor such loans and guarantees in 
accordance with the loan or guarantee program.
    (b) Borrowers/lenders shall submit to EDA any requests for 
modifications of their agreements with EDA. EDA shall, in accordance 
with applicable laws and policies, including the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661 c(e)), consider and respond to such 
modification requests.
    (c) In the event that EDA determines it necessary or desirable to 
take actions to protect or further the interests of EDA in connection 
with loans or guarantees made or evidences of indebtedness purchased, 
EDA may:
    (1) Assign or sell at public or private sale, or otherwise dispose 
of for cash or credit, in its discretion and upon such terms and 
conditions as it shall determine to be reasonable, any evidence of 
debt, contract, claim, personal or real property, or security assigned 
to or held by it in connection with financial assistance extended;
    (2) Collect or compromise all obligations assigned to or held by it 
in connection with EDA financial assistance projects until such time as 
such obligations may be referred to the Attorney General for suit or 
collection; and
    (3) Take any and all other actions determined by it to be necessary 
or desirable in purchasing, servicing, compromising, modifying, 
liquidating, or otherwise administratively dealing with or realizing on 
loans or guaranties made or evidences of indebtedness purchased.


Sec. 316.8  Public information.

    The rules and procedures regarding public access to the records of 
the Economic Development Administration are found at 15 CFR part 4.


Sec. 316.9  Relocation assistance and land acquisition policies.

    Recipients of EDA financial assistance under PWEDA and the Trade 
Act (states and political subdivisions of states and non-profits as 
applicable) are subject to requirements set forth at 15 CFR part 11.


Sec. 316.10  Additional requirements; Federal policies and procedures.

    Grantees as defined under Sec. 314.2 of this chapter are subject to 
all Federal laws and to Federal, Department of Commerce and EDA 
policies, regulations, and procedures applicable to Federal financial 
assistance awards.

PART 317--CIVIL RIGHTS

Sec.
317.1  Civil rights.

    Authority: Sec. 701, Pub. L. 89-136; 79 Stat. 570 (42 U.S.C. 
3211); Department of Commerce Organization Order 10-4, as amended 
(40 FR 56702, as amended). 

[[Page 49703]]



Sec. 317.1  Civil rights.

    (a) Discrimination is prohibited in programs receiving federal 
financial assistance from EDA in accordance with the following 
authorities:
    (1) Section 601 of Title VI of the Civil Rights Act of 1964, 
codified at 42 U.S.C. 2000d et seq. (proscribing discrimination on the 
basis of race, color, or national origin), and the Department of 
Commerce's implementing regulations found at 15 CFR part 8;
    (2) 42 U.S.C. 3123 (proscribing discrimination on the basis of 
sex);
    (3) 29 U.S.C. 794, as amended, and the Department of Commerce's 
implementing regulations found at 15 CFR part 8b (proscribing 
discrimination on the basis of disabilities);
    (4) 42 U.S.C. 6101, as amended, and the Department of Commerce's 
implementing regulations found at 15 CFR part 20; and
    (5) Other Federal statutes, regulations and Executive Orders as 
applicable.
    (b)(1) Definitions:
    (1) Other Parties means, as an elaboration of the definition in 15 
CFR part 8, entities which, or which are intended to create and/or save 
15 or more permanent jobs as a result of EDA assistance provided that 
they are also either specifically named in the application as 
benefitting from the project, or are or will be located in an EDA 
building, port, facility, or industrial, commercial or business park 
prior to EDA's final disbursement of funds awarded for the project.
    (2) Additional definitions are provided in EDA's Civil Rights 
Guidelines and 15 CFR part 8.
    (c) All recipients of EDA financial assistance under PWEDA and the 
Trade Act, and Other Parties are required to submit the following to 
EDA:
    (1) Written assurances that they will comply with Department of 
Commerce and EDA regulations, and such other requirements as may be 
applicable, prohibiting discrimination;
    (2) Employment data (form ED-612);
    (3) Information on civil rights status and involvement in charges 
of discrimination in employment or the provision of services during the 
2 years previous to the date of submission of such data as follows:
    (i) Description of the status of any lawsuits, complaints or the 
results of compliance reviews; and
    (ii) Statement indicating any administrative findings by a Federal 
or State agency.
    (4) Whenever deemed necessary by EDA to determine that applicants 
and other parties are in compliance with civil rights regulations, such 
applicants and other parties shall submit additional information in the 
form and manner requested by EDA; and
    (5) In addition to employment record requirements found in 15 CFR 
8.7, complete records on all employees and applicants for employment, 
including information on race, sex, national origin, age, education and 
job-related criteria must be retained by employers.
    (d) To enable EDA to determine that there is no discrimination in 
the distribution of benefits in projects which provide service 
benefits, in addition to requirements listed in paragraph (c) of this 
section, applicants are required to submit any other information EDA 
may deem necessary for such determination.
    (e) EDA assisted planning organizations must meet the following 
requirements:
    (1) For the selection of representatives, EDA expects planning 
organizations and OEDP Committees to take appropriate steps to ensure 
that there is adequate representation of minority and low-income 
populations, women, people with disabilities and Federal and State 
recognized American Indian tribes and that such representation is 
accomplished in a nondiscriminatory manner; and
    (2) EDA assisted planning organizations and OEDP Committees shall 
take appropriate steps to ensure that no individual will be subject to 
discrimination in employment because of their race, color, national 
origin, sex, age or disability.
    (f) Reporting and other procedural matters are set forth in 15 CFR 
parts 8, 8(b), 8(c), and 20 and the Civil Rights Guidelines which are 
available from EDA's Regional Offices. See part 300 of this chapter.

PART 318--[RESERVED]

    Dated: September 18, 1995.
Wilbur F. Hawkins,
Acting Assistant Secretary for Economic Development.
[FR Doc. 95-23522 Filed 9-25-95; 8:45 am]
BILLING CODE 3510-34-P