[Federal Register Volume 59, Number 243 (Tuesday, December 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31218]


[[Page Unknown]]

[Federal Register: December 20, 1994]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Office of the Secretary

43 CFR Part 12

RIN 1090-AA48

 

Administrative and Audit Requirements and Cost Principles for 
Assistance Programs

AGENCY: Office of the Secretary, Interior.

ACTION: Final rule.

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

SUMMARY: This final rule is in response to the ``Department of the 
Interior and Related Agencies Appropriations Act, 1995,'' and the 
``Energy and Water Development Appropriations Act, 1995.'' Section 
307(a) of Public Law 103-332 required that no funds made available in 
the Act may be expended by an entity unless the entity agrees that in 
expending the funds they will comply with the ``Buy American Act.'' As 
it did in FY 1994, the Department continues to interpret this 
requirement to apply to assistance programs. Section 501 of Public Law 
103-316 only states that it is the sense of Congress that, to the 
greatest extent practicable, all equipment and products purchased with 
funds made available in the Act should be American-made. Therefore, the 
Department is taking the position that Congressional intent was 
different for awards made by the Bureau of Reclamation. As such, only 
the provisions in the regulation addressing the sense of Congress 
(Sec. 12.700) and the notice requirements (Sec. 12.710) will apply to 
awards made by the Bureau of Reclamation using appropriated funds for 
FY 1995.

EFFECTIVE DATE: December 20, 1994.

FOR FURTHER INFORMATION CONTACT:
Dean A. Titcomb, (Chief, Acquisition and Assistance Division), (202) 
208-6431.

SUPPLEMENTARY INFORMATION: On September 30, 1994, the Department of the 
Interior and Related Agencies Appropriations Act for Fiscal Year 1995 
(``the Act'') was signed into law. Section 307(a) of the Act was 
entitled ``Compliance with Buy American Act.'' The section applied to 
funds appropriated or transferred pursuant to the Act for the purchase 
of any equipment or product that may be authorized to be purchased with 
financial assistance. Section 307(b) expressed the ``sense of the 
Congress'' that entities receiving the assistance, purchase only 
American-made equipment and products.
    Section 307(b)(2) required that in providing the financial 
assistance under the Act, the Secretary shall provide to each recipient 
of the assistance a notice describing the requirement. No other 
specific guidance was given regarding the implementation of this 
requirement.
    The Department is revising Subpart E of 43 CFR Part 12, to 
implement these requirements for awards made using appropriated funds 
for FY 1995. No specific guidance was provided by Congress, so the 
Department decided to continue its implementation of these requirements 
based upon the final rule published in the Federal Register on July 19, 
1994 (59 FR 36713).
    Because of the applicability of different appropriation acts and 
the fact that the requirements are different, the notice in paragraph 
(b) of Sec. 12.710 has been changed to account for the reference to 
language in Pub. L. 103-332. A separate notice included in paragraph 
(c) of Sec. 12.710 has been amended to account for the reference to 
language in Pub. L. 103-316 and its use only for awards made by the 
Bureau of Reclamation.

Finding of Good Cause for Waiver of Proposed Rulemaking and for Making 
Rule Effective Upon Publication

    In accordance with the Administrative Procedure Act (5 U.S.C. 553), 
it is usually the practice of the Department to offer interested 
parties the opportunity to comment on proposed regulations. However, 
the Department waives notice and comment on these regulations under 
section 553(b)(B) of the Administrative Procedure Act (5 U.S.C. 
553(b)(B)). This section provides that notice and comment for 
rulemaking is not required when the agency for good cause finds that 
notice and public procedure are impracticable, unnecessary, or contrary 
to the public interest. The Department believes further public comment 
on the revision of this regulation is unnecessary because the substance 
of these provisions is based on statutory requirements governing the 
award of assistance with appropriated funds for FY 1995, that the 
Department is unable to change.
    The Administrative Procedure Act provides that rules be published 
at least 30 days prior to their effective date, except as otherwise 
provided by an agency on a finding of good cause (5 U.S.C. 553(d)(3)). 
In this case, because this requirement is a statutory condition of 
expenditure of appropriated funds in this fiscal year, the Department 
has determined that the rule must be effective upon publication.

Executive Order 12866, Paperwork Reduction Act, and Regulatory 
Flexibility Act

    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866.
    The Department has determined that this rule will not have a 
significant economic impact on a substantial number of small entities 
since it is anticipated that no additional costs will be imposed on a 
substantial number of small entities as a result of the rule. This rule 
does not contain a collection of information subject to the Paperwork 
Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

Environmental Effects

    The Department has determined that this rule does not constitute a 
major Federal action having a significant impact on the human 
environment under the National Environmental Policy Act of 1969.

Executive Order No. 12778

    The Department has certified to the Office of Management and Budget 
that this rule meets the applicable standards provided in sections 2(a) 
and 2(b)(2) of Executive Order No. 12778.

List of Subjects in 43 CFR Part 12

    Cooperative agreements, Grants administration, Grant program.

    Dated: December 6, 1994.

Bonnie R. Cohen,
Assistant Secretary-Policy, Management and Budget.

    Title 43, part 12 of the Code of Federal Regulations is amended as 
set forth below:

PART 12--ADMINISTRATIVE AND AUDIT REQUIREMENTS AND COST PRINCIPLES 
FOR ASSISTANCE PROGRAMS

    1. The authority citation for part 12 is revised to read as 
follows:

    Authority: 5 U.S.C. 301; 31 U.S.C. 7501; 41 U.S.C. 701 et seq.; 
sec. 307, Pub. L. 103-332, 108 Stat. 2499; section 501, Pub. L. 103-
316, 108 Stat. 1723; E.O. 12549, 3 CFR, 1986 Comp. p. 189; E.O. 
12674, 3 CFR, 1989 Comp. p. 215; E.O. 12731, 3 CFR, 1990 Comp. p. 
306; OMB Circular A-102; OMB Circular A-110; OMB Circular A-128; and 
OMB Circular A-133.

    2. Section 12.700 is revised to read as follows:


Sec. 12.700  Scope.

    This subpart implements section 307 of the Department of the 
Interior and Related Appropriations Act for Fiscal Year 1995 (Public 
Law 103-332, 108 Stat. 2499) and section 501 of the Energy and Water 
Development Appropriations Act, 1995 (Public Law 103-316, 108 Stat. 
1723). For awards made under the authority of section 307, this subpart 
requires that no funds made available in the Act may be expended by an 
entity unless the entity agrees that in expending the funds the entity 
will comply with sections 2 through 4 of the Act of March 3, 1933 (41 
U.S.C. 10a-10c; popularly known as the ``Buy American Act''). It 
applies to procurement contracts under grants and cooperative 
agreements which provide for the purchase of equipment and products. 
Section 501 of Public Law 103-316, 108 Stat. 1723, only applies to 
awards made by the Bureau of Reclamation. In addition, for these 
awards, there is only a requirement that in providing financial 
assistance to, or entering into any contract with, any entity using 
funds made available in this Act, the Secretary, to the greatest extent 
practicable, will provide to the entity a notice describing a statement 
within the Act made by Congress. This statement concerns the sense of 
the Congress that to the greatest extent practicable, all equipment and 
products purchased with funds made available in the Act, should be 
American-made. Therefore, for Fiscal Year 1995 awards, only the 
requirements in Secs. 12.700 and 12.710 will apply to awards made by 
the Bureau of Reclamation.
    3. Paragraphs (a), (b), and (c) of Sec. 12.710 are revised to read 
as follows:


Sec. 12.710   Policy.

    (a) In the case of any equipment or product that may be authorized 
to be purchased with financial assistance provided using funds made 
available under Public Law 103-332, it is the sense of Congress that 
entities receiving the assistance should, in expending the assistance, 
purchase only American-made equipment and products.
    (b) In awarding financial assistance under Public Law 103-332, 
bureaus and offices excluding the Bureau of Reclamation will provide to 
each recipient of the assistance the following notice:

Notice

    Pursuant to Sec. 307 of the Department of the Interior and 
Related Agencies Appropriations Act, 1995, Public Law 103-332, 108 
Stat. 2499, please be advised of the following:
    In the case of any equipment or product that may be authorized 
to be purchased with financial assistance provided using funds made 
available in this Act, it is the sense of the Congress that entities 
receiving the assistance should, in expending the assistance, 
purchase only American-made equipment and products.

    (c) In awarding financial assistance using funds made available 
under Public Law 103-316, to the greatest extent practicable, the 
Bureau of Reclamation will provide to each recipient of the assistance 
the following notice:

Notice

    Pursuant to Sec. 501 of the Energy and Water Development 
Appropriations Act, 1995, Public Law 103-316, 108 Stat. 1723, please 
be advise of the following:
    It is the sense of the Congress that, to the greatest extent 
practicable, all equipment and products purchased with funds made 
available in this Act should be American-made.
* * * * *
[FR Doc. 94-31218 Filed 12-19-94; 8;45 am]
BILLING CODE 4310-RF-M