[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