Muskie Congressional Record: EDA Regulations

CONGRESSIONAL RECORD — SENATE

August 27, 1976

Page 28100

EDA REGULATIONS ON PUBLIC WORKS JOBS

Mr. MUSKIE. Mr. President, I ask unanimous consent that the Economic Development Administration's regulations and guidelines for local communities for implementation of the Local Public Works Capital Development and Investment Program, be printed in the

RECORD.

There being no objection, the material was ordered to be printed in the RECORD, as follows :

[From the Federal Register, Vol. 41, No. 164– Monday, August 23, 1976]

PART V: DEPARTMENT OF COMMERCE: ECONOMIC DEVELOPMENT ADMINISTRATION
LOCAL PUBLIC WORKS CAPITAL DEVELOPMENT AND INVESTMENT PROGRAM — FINAL RULEMAKING

Title 13— Business Credit Assistance

Chapter III Economic Development Administration, Department of Commerce

Part 316— Local Public Works Capital Development and Investment Program

The Economic Development Administration, pursuant to Title I of the Public Works Employment Act of 1976, hereby publishes these regulations to amend Title 13 of the Code of Federal Regulations by adding a new Part 316. These regulations describe procedures by which eligible applicants may receive financial assistance for the construction (including demolition and other site preparation activities), renovation, repair, or other improvement of local public works projects and for the completion of plans, specifications, and estimates for local public works projects.

Statement of Objectives — Legislative objectives

On the basis of an indepth study of the Local Public Works Capital Development and Investment Act of 1976 and its legislative history, it has been determined that the purpose of this legislation is to provide:

a. Employment opportunities in areas of high unemployment through the expeditious construction or renovation of useful public facilities; and

b. A countercyclical stimulus to the national economy.

EDA program objectives

Analyses of past public works programs and the Economic Development Administration's (EDA) experience in operating such programs have revealed certain characteristics about the extent and nature of employment generated by public works construction. Of these, the most relevant to the objectives of the Local Public Works Capital Development and Investment Act are the preponderance of skilled construction jobs and the relatively high cost of creating a job through such an approach. Between 68 and 81 percent of the costs of a public works project are for materials, equipment, overhead, and contractor profits, leaving between 19 and 32 percent for onsite wages. Consequently, even the most labor intensive public works projects generate a limited amount of direct employment per dollar of project cost. Public works projects do, however, result in useful end products and are commonly believed to provide general economic stimulation, particularly to the construction and construction-related industries.

In recognition of these characteristics of public works construction projects, as well as other considerations deriving from the legislation and EDA's experience, the following objectives for implementing the Local Public Works Act have been established :

a. To insure that consideration is given to the relative needs of the various sections of the country;

b. Within those sections, to fund projects that maximize immediate employment opportunities and, wherever possible, that maximize employment opportunities for unemployed residents of the project area;

c. To fund locally oriented projects that provide useful public facilities in areas of high unemployment and low income;

d. To fund projects that advance local plans and contribute to long term development;

e. To fund facilities that could not have been constructed in the absence of the Local Public Works grant (i.e., facilities for which Federal funds are not merely replacing or reducing local, State, or other Federal monies that have been specifically provided or set aside); and

f. To carry out a comprehensive evaluation of both the direct employment impact and the indirect or stimulative impact of the projects funded.

Because these regulations pertain to a grant program administered by the Economic Development Administration, the relevant provisions of the Administrative Procedure Act (5 U.S.C. 553) requiring notice of proposed rulemaking, opportunity for public participation and delay in effective date are inapplicable. In addition, Section 107 of the Public Works Employment Act of 1976 requires implementing regulations to be prescribed within thirty days after date of enactment.

However, in accordance with the spirit of the public policy set forth in 5 U.S.C. 553, interested persons may submit written comments or suggestions to the Assistant Secretary for Economic Development, U.S. Department of Commerce, Room 7800B, Washington, D.C. 20230 by September 24, 1976. This is a new and widespread program, and all suggestions received will be carefully considered. If a sufficient number of valid comments raising significant issues are received, these regulations may be amended and republished. Until such time as further changes are made, however, 13 CFR Part 316 shall remain in effect, thus permitting the public business to proceed more expeditiously.

The application form, necessary to carry out the Public Works Employment Act of 1976, as provided in Section 107 therein, has been prescribed and submitted to the Office of Management and Budget for clearance as required by OMB Circular No. A10, as revised on February 10, 1976. When clearance has been received, EDA will publish the application form, which will then be available through EDA and its Regional Offices.

Interested persons should take notice that it is the policy of the Economic Development Administration that no applications for financial assistance pursuant to Title I of the Public Works Employment Act of 1976 will be accepted until the funds to implement the program have actually been appropriatedand apportioned to and made available for use by the agency.

Consideration has been given as to whether matters set forth in these regulations constitute a major proposal with an inflationary impact within the meaning of OMB Circular A107 and interpretative guidelines as issued by the Department of Commerce. A determination has been made that these regulations do not extend or go beyond the statute, and therefore, there is no inflationary impact of these regulations beyond the statute.

Accordingly, the regulations shall read as follows:

Sec.

316.1 Purpose.

316.2 Definitions.

316.3 Applicants.

316.4 Direct grants.

316.5 Supplemental grants.

316.6 Limitations on grants.

316.7 Priority of projects.

316.3 Allocation of program resource levels to regional offices.

316.9 Determination of unemployment rates.

316.10 General considerations and requirements for financial assistance.

316.11 Compliance with other Federal requirements.

316.12 Acceptance of applications.

316.13 Environmental considerations.

316.14 Final determination.

316.15 Termination.

AUTHORITY: Title Pub. L. 94-369 (July 22, 1976) ; 42 U.S.C. 6701 et seq.; 90 Stat. 999; and Department of Commerce Organization Order 104 (September 30, 1975), as amended(40 FR 56702, as amended at 40 FR 58878).

§ 316.1 Purpose.

The purpose of this part is to set forth the requirements and procedures pursuant to which eligible applicants may receive grants under Title I of the Public Works Employment Act of 1976, which is entitled the "Local Public Works Capital Development and Investment Act of 1976.

1316.2 Definitions.

"Assistant Secretary" means the Assistant Secretary of Commerce for Economic Development or his delegate.

"Indian tribe" means the governing body of a tribe, nonprofit Indian corporation (restricted to Indians), Indian authority or other tribal organization or entity or Alaskan native village.

"Initiation of construction" means that a contract has been awarded for construction of the project or notice to proceed or its equivalent has been issued or onsite labor has begun, whichever is earlier.

"Local Public Works Act" means the "Local Public Works Capital Development and Investment Act of 1976,"which is Title I of the Public Works Employment Act of 1976.

"Local government" means any city, county, town, parish, or other political subdivision of a State (including local school districts), and any Indian tribe.

"Maintenance costs" means costs that are incurred for any necessary repairs or upkeepof property which neither adds to the permanent value of the property or appreciably prolongs its intended life, but rather keeps it in an efficient operating condition.

"Political subdivision of a State" means the agencies, instrumentalities and authorities established or authorized by State law including, but not limited to, special districts and regional authorities formed by local governments.

"Public works" means public facilities including, but not limited to, municipal offices, courthouses, libraries, schools, police and fire stations, detention facilities, water and sewerlines, streets and roads (including curbs), sidewalks, lighting, recreational facilities, convention centers, civic centers, museums, and health, education and social service facilities.

"State" includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam and American Samoa.

§ 316.3 Applicants.

A State or a local government, as defined in § 316.2 of this part, is eligible for assistance under the Local Public Works Act.1 313.1 Direct grants.

(a) The Assistant Secretary may make direct grants to any State or local government for construction (including demolition and other site preparation activities) , renovation, repair, or other improvement of local public works projects, including those for which Federal financial assistance is authorized under provisions of law other than the Local Public Works Act. Such grants may include funds for the completion of plans, specifications and estimates where additional architectural and engineering work or related planning is required to permit construction of the project under this section.

(b) Applications under this section will be approved only if the applicant submits with its application, if applicable, a written certification from the other Federal agency/ agencies that the project meets all applicable Federal statutory and regulatory requirements.

(c) The Federal share of any project for which a grant is made under this section shall be 100 per centum of the cost of the project.

§ 316.5 Supplemental grants.

(a) The Assistant Secretary may make supplemental grants for the purpose of increasing the Federal contribution to 100 percent of the project cost for any Federally-assisted public works project authorized by any Federal law other than the Local Public Works Act if the applicant submits with its application:

(1) A written certification from the other Federal agency/agencies that:

(i) Federal financial assistance for the project has been approved and the funds are immediately available for the project;

(ii) The project meets all applicable Federal statutory and relevant related requirements; and

(2) Its written certification that actual construction of the project has not yet been initiated because of lack of funding for the non-Federal share.

(b) The Assistant Secretary also may make grants in an amount necessary to provide allor part of the required State or local share (but not both shares) of the cost of any public works project for which financial assistance is authorized by State or local law requiring such contribution if the applicant submits with its application a written certification from the appropriate authority that:

(1) The share of financial assistance not applied for has been properly approved and is immediately available for the project;

(2) The project meets all applicable statutory and other relevant requirements of law; and

(c) Grants under this section may include funds for the completion of plans, specifications, and estimates where additional architectural and engineering work or related planning is required to permit construction of the project under this section.

§ 316.6 Limitations on grants.

(a) Canals and watersources. No grants shall be made under this part for any project having as its principal purpose and permanent effect:

(1) The channelization, damming, diversion, or dredging of any natural watercourse, or

(2) The construction or enlargement of any canal except a canal or raceway designated for maintenance as an historic site.

(b) Real property. No part of any grant made under this part shall be used for the acquisition of any interest in real property.

(c) Maintenance. No part of any grant made under this part shall be used for the payment of maintenance costs in connection with a project constructed (in whole or in part) with Federal financial assistance under the Local Public Works Act.

§ 316.7 Priority of projects.

(a) Allocation of funds. (1) In making grants under this part, when the average national unemployment rate for the three most recent consecutive months for which data is available from the United States Department of Labor, has been at least 6% percent:

(i) Seventy percent of all amounts appropriated to carry out the Local Public Works Act shall be allocated for project applications submitted by State or local governments whose average unemployment rate for the three most recent consecutive months for which information is available exceeds the average national unemployment rate for the same period of time. The Assistant Secretary shall expedite and give priority to applications in this category.

(ii) The remaining thirty percent of all amounts appropriated to carry out the Local Public Works Act shall be available for distribution according to priority as listed below:

(A) Project applications submitted by State or local governments whose average unemployment rate for the three most recent consecutive months for which information is available is more than 6% percent but not more than the average national unemployment rate for the same period of time, and

(B) Project applications submitted by State or local governments whose average unemployment rate for the three most recent consecutive months for which information is available is 6% percent or less. These project applications will be considered only when funding of such projects is necessary to fulfill the minimum funding level required for each State or if funds are available in the 30 percent category.

(b) State limitations: Not less than one-half of one percent or more than twelve and one-half percent of all amounts appropriated to carry out the Local Public Works Act shall be granted for local public works projects within any one State, except that not less than one-half of one percent of the total of all funds appropriated for this part shall be granted for public works projects in Guam, the Virgin Islands, and American Samoa, in the aggregate.

§ 816.8 Allocation of program' resource levels to regional offices.

(a) Regional allocations. To assist in the orderly utilization of program resources, the Assistant Secretary will assign to each regional office a target level of anticipated project assistance for the total of all areas served by that regional office. Such regional allocations of program resources shall be based on appropriation apportionments available to EDA and shall be calculated on a formula basis reflecting the relative numbers of unemployed persons in the States served by the regional office and the level of unemployment rates in those States.

(b) State planning ceilings. Regional offices shall observe with respect to each State served by it a ceiling on project approval recommendations. The allocation of funds to regions and States will be made after the funds have been apportioned to EDA and will be based on unemployment data available at that time. EDA will announce the date ion which the funds are apportioned and the allocation is made. The formula by which the planning ceiling for each State will be established is as follows :

Subject to program administrative costs and statutory minimum and maximum amounts allocated to individual States by the legislation, 65 percent of the funds will be set aside as planning ceilings for individual States based on the share of unemployed workers residing in a State of the total national unemployed; 35 percent of the funds will be set aside as planning ceilings to individual States based on the relative severity of unemployment for each State above the national unemployment rate.

(c) It is to be understood that the planning ceiling assigned to each State is not to establish an entitlement to any minimum level of project assistance within that State (unless such is the statutory maximum or minimum) but is adopted only for the purpose of furthering the objective of assuring that adequate consideration is given to the relative needs of various sections of the country. Where the planning ceiling calculated on the formula basis is less than the statutory minimum assured for each State the statutory minimum shall be the planning ceiling, and where the planning ceiling calculated on the formula basis is greater than the statutory maximum for any State the statutory maximum shall be the planning ceiling.

(d) 120 days after the date on which funds are first apportioned for program assistance under the Act and at any time thereafter the Assistant Secretary may reconsider the regional allocations and State ceilings previously established and make such adjustments as are determined to be reasonable in achieving the purposes of the Act.

§ 316.9 Determination of unemployment rates.

(a) The average unemployment rate for the three most recent consecutive months for which data is available for a State or local government applicant under this part may be determined from information obtained in the following order:

(1) The United States Department of Labor. (i) EDA's Qualification Division has provided to EDA's Regional Offices and Economic Development Representatives a list, prepared by the United States Department of Labor, which shows the average unemployment rate for the three most recent consecutive months for:

(A) the entire nation;

(B) each State; and

(ii) On or before September 15, 1976, EDA's Qualification Division will provide to FDA's Regional Offices and Economic Development Representatives a list, prepared by the United States Department of Labor, which will show the average unemployment rate for the three most recent consecutive months for approximately 1,000 counties throughout the nation.

(iii) The above lists will be updated and expanded if and when more information is obtained from the United States Department of Labor.

(2) If not available from the United States Department of Labor the average unemployment rate for the three most recent consecutive months for which information is available shall be obtained from the State employment security agency.

(3) Indian tribes shall submit information from the Bureau of Indian Affairs of the United States Department of Interior or other appropriate sources acceptable to the Assistant Secretary.

(b) If requested by an applicant, the unemployment rate of a local government shall be based upon the unemployment rate of any community or neighborhood (defined without regard to political or other subdivisions or boundaries) within the jurisdiction of such local government, except that any grant made to a local government based upon the unemployment rate of a community or neighborhood within its jurisdiction must be for a project of direct benefit to or provide employment for, unemployed persons who are residents of that community or neighborhood. The applicant shall apply to the State employment security agency for the average unemployment rate for the three most recent consecutive months for which data is available. The data obtained from the State employment security agency will be accepted by the Assistant Secretary.

(c) If requested by an applicant, in determining the unemployment rate of a local government, unemployment in those adjoining areas from which the labor force for a project may be drawn shall be taken into consideration.

(d) The Assistant Secretary has obtained from all State employment security agencies their cooperation to provide all applicants, other than Indian tribes, with unemployment data.

(e) EDA will not accept an unemployment rate determination that is based on data obtained for a time period which is longer than twelve months prior to the date of the application as stated therein.

(f) The unemployment rate established by one of the procedures above, will determine whether the area qualifies for the 70 percent or 30 percent category as described in § 316.7 above.

(g) No data regarding unemployment rates for time periods after the date of the application as stated therein, may be changed.

§ 316.10 General considerations and requirements for financial assistance.

(a) Project selection procedure — (1) Considerations. In line with the purposes and objectives of the Act, EDA's goal of choosing projects having the greatest potential for furthering these purposes and objectives, the relative importance of various factors in determining this potential, and the availability and consistency of data specified in the Act, the following project selection procedures have been adopted.

(2) Project selection formula. The ranking procedure developed for selecting projects within each State's planning allocation uses those project and area factors that will contribute most to achieving substate equity in the distribution of planning funds and insults that the relatively more economically efficient projects are selected. All factors will be standardized for comparability purposes and assigned policy weights to reflect their importance in the ranking procedure.

(i) Basic rank. The basic rank of a project will be determined by the following factors:

(A) The number of unemployed workers in the project area averaged over the three most recent months for which data is available. An area characterized as having a high unemployment rate overall is generally characterized as having a high unemployment rate in the construction industry. Similarly, an area characterized as having a large number of unemployed overall is generally characterized as having a relatively large number of unemployed construction workers as a share of the overall unemployed. Therefore, this factor gives consideration to construction unemployment. This factor will constitute 30 percent of a project's basic rank.

(B) Severity and duration of unemployment, as measured by the unemployment rate prevailing in the project area averaged over the last three months for which data is available. This factor will constitute 25 percent of a project's basic rank.

(C) The cost per person-month of employment, defined as the ratio of the total cost of the project to the total number of person-months of employment to be generated. In formulating project proposals, applicant should bear in mind the intent of the Act to reduce unemployment generally, and to give due consideration to the amount of unemployment and underemployment in the construction and construction-related industries. As previously indicated, projects eligible for funding would include, but are no limited to, such local public works project as municipal offices, courthouses, libraries schools, police and fire stations, detention facilities, water and sewer lines, streets and roads, civic centers, museums, health, education and social service facilities, convention centers, and the upgrading of existing facilities through renovation, repair, and other related improvements. Finally, it should be emphasized that supplemental assistance provided for under the Act will be considered as part of total project costs; the latter is defined as funds from all sources whether Federal, State, or local. The cost per person-month of employment factor will constitute 30 percent of a project's basic rank.

(ii) Additional considerations. A project's basic rank will be increased if the project meets one or more of the following criteria:

(A) Exhibits potential for providing long term benefits. The basic rank of a project will be increased up to a maximum of 10 percent if it meets this criterion. The amount of increase will be determined by the nature and extent of the long term benefit(s) to be provided by the project.

(B) Is sponsored by a general purpose unit of local government, as defined in § 316.2 above. Projects meeting this criterion will have their basic ranks increased by five percent.

(C) Relates to existing approved plans and programs of a local community development or regional development nature or promotes or advances longer range plans and programs.The basic rank of a project meeting this criterion will be increased by five percent.

(iii) Final rank. The final rank of a project is to be determined by summing the basic rank and increases attributable to the additional considerations defined above.

(3) Application of project selection formula — (1) Geographic considerations. Projects will be ranked and assessed relative to other projects submitted from the same State until such time as the Assistant Secretary determines, pursuant to paragraph (a) (2) above, that comparison of projects submitted from different States is required to either further the purposes and objectives of the Act or to comply with statutory requirements.

(ii) Priority considerations. Within each State, projects submitted from areas with an unemployment rate exceeding the national average for the most recent consecutive three months will be ranked and compared only with projects submitted from other areas in this priority category. Similarly, projects submitted by areas with an unemployment rate below the national average for the most recent consecutive three months will be ranked and compared only with projects submitted from other areas in the same priority category. Applicants who anticipate the project labor requirements will draw upon the unemployed and underemployed labor resources of other jurisdictions outside the immediate project area (such as a multicounty area) will be given priority consideration on the basis of the unemployment rate prevailing in the extended geographical (labor market) area. Similarly, the basic rank computations discussed above will be computed in aggregate on data provided for the extended geographical area.

(iii) Project selection. Within each State and priority category, projects will be selected on the basis of their final ranks until the State planning allocation for each priority category has been exhausted or until such time as the Assistant Secretary determines that the remaining funds made available under the Act must be reallocated among the States.

(b) An application shall be rejected unless:

(1) It is properly prepared on appropriate forms prescribed by the Assistant Secretary.

(2) It contains one of the following:

(i) Information showing that the area conforms to an area for which United States Department of Labor unemployment statistics are available; or

(ii) Unemployment information from the appropriate State unemployment security agency.

(3) It contains a certification by the applicant that construction on the project has not yet been initiated;

(4) It contains assurances, satisfactory to the Assistant Secretary, that onsite labor can begin within ninety days of project approval;

(5) Where applicable, it relates the proposed project to existing approved plans and programs of a local community development or regional development nature so as to avoid harmful or costly consistencies or contradictions;

(6) It contains evidence, where feasible, that the proposed project will promote or advance longer range plans and programs;

(7) It contains adequate assurances that all laborers and mechanics employed by contractors or subcontractors on the proposed project will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a—276a-5).

(8) It contains adequate assurance by the applicant and by any "other parties" as defined in 15 CPR Subtitle A, Part 8, that no person shall, on the grounds of race, color, sex, or national origin, be excluded from participation in, be denied the benefit of, or be subjected to discrimination under the proposed project; and an assurance that it is not involved in any civil rights litigation or if it is involved in a lawsuit or Federal administrative action alleging discrimination it shall state the name of the case, the court where filed, or the name of the agency involved in the administrative action.

(9) It contains certification, by the properly authorized official of the Federal agency or State or local government, that no funds budgeted and available or otherwise specifically committed for the project applied for in its application shall be reduced, diminished, or replaced by funds requested under this part.

(c) Applicants should be advised that false representations and/or certifications in connection with applications for assistance under this part may be the basis for criminal liability under title 18 of the United States Code.

(d) No cost overruns for public works projects previously funded under this part will be approved.

(e) Project costs for administration, plans, specifications, estimates and other A/E costs, which have been incurred prior to the date of application, will not be funded.

(f) Applications will not normally be approved where any of the following conditions exist:

(1) The project site, including easements and rights-of-way, has not been obtained, clear of any encumbrances; or

(2) The project request is for a supplemental to another Federal, State or local grant which has not been approved by the applicable grant agency.

(g) The maximum amount of financial assistance made available under this part should not exceed $5 million for each project; however, the Assistant Secretary may, in his discretion, waive this policy for good cause.

(h) Projects which cannot be completed within two years after date of approval will not be considered; however, the Assistant Secretary may, in his discretion, waive this policy for good cause.

§ 316.11 Compliance with other Federal requirements.

Each applicant shall, as a condition to its receipt of a grant under this part, comply with the following relevant Federal requirements:

(a) All labor standards including those relating to the payment of wages, working conditions, anti-kickback prohibitions and equal employment as provided 13 CPR 309.6;

(b) Those concerning relocation and related payments to all persons displaced as a result of the development of a public works project with funds received under this part, as provided for in the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. 4601 et seq., and 13 CFR Part 310;

(c) If the project involves a detention facility, those sections of Part E of the Omnibus Crime Control and Safe Streets Act of 1968, as amended, found at 42 U.S.C. 3750 b(1) and (4)(9);

(d) The provisions of OMB Circular A95, except during the first ninety days after EDA begins receiving applications when the following procedures shall apply:

(1) Applicants must submit their full applications or notifications of intent to apply to the appropriate clearinghouse as early as possible.

(2) Upon submission of an application to EDA, the applicant must certify that he has submitted the full application to the appropriate clearinghouse.

(3) EDA may begin processing the application upon its receipt but will make no final approval of an application until 30 days after its receipt unless clearinghouse response is received before 30 days have elapsed.

(4) Clearinghouse comments will be submitted directly to EDA; EDA will consider such comments until it has finished processing the application.

(e) All environmental requirements, to the maximum extent possible, as determined by the Assistant Secretary, including, but not limited to:

(1) The National Environmental Policy Act of 1969, as amended (42 U.S.C. § 4321 et seq.); and EDA's requirements found in if 316.13 below;

(2) The Clean Air Act, as amended (42 U.S.C. 1857-1858a) ;

(3) The Federal Water Pollution Control Act, as amended (33 U.S.C. 1251-1376);

(4) The National Historic Preservation Act of 1966 (16 U.S.C. 470 et seq.) and EDA'srequirements found in $ 316.13 below;

(5) The Wild and Scenic Rivers Act, as amended (16 U.S.C. 1271-1287) and EDA's requirements found in $ 316.13 below;

(6) The Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.);

(7) The Historical and Archeological Data Preservation Act, as amended (16 U.S.C. 469 et seq.) ; and

(8) The Fish and Wildlife Coordination Act of March 10, 1934, as amended (16 U.S.C. 361-666c).

(f) 13 CFR 309.9, entitled "Records and Audit;"

(g) 18 CFR 309.27, entitled "Land use near Federal airfields;"

(h) 13 CFR 309.14, entitled "Design, construction, and alteration of buildings to accommodate the physically handicapped;"

(i) 13 CFR 309.26, entitled "Project modification;"

(j) 18 CFR Part 314, entitled, "Property management standards;"

(k) The National Flood Insurance Program and EDA's requirements regarding flood hazards found at 13 CFR 309.15; and

(1) Other laws affecting this program.

§ 316.12 Acceptance of applications.

(a) Applications for assistance under this part shall only be submitted to the appropriate EDA Regional Office, as provided in 18 CFR 301.81.

(b) Applications shall be recorded and deemed received upon their arrival at the appropriate EDA Regional Office.

(c) EDA shall endeavor, within five working days from the date the application is actually received by the appropriate Regional Office, to determine whether the application has been completely and properly prepared, and contains accurate unemployment rates. An application may be rejected (denied) unless it contains full and accurate information including the requirements of Section 316.10 above. By the end of the fifth working day after the date the application was received, the Regional Director should notify the applicant if the application has been rejected, and state what is needed to properly complete the application. However, EDA reserves the right during the 60 day period after receipt of an application to reject an application for substantially being incomplete, improperly prepared, or otherwise failing to meet the requirements of this part.

§ 316.13 Environmental considerations.

(a) The National Environmental Policy Act. (1) Since the Local Public Works Act requires applications to be processed within 60 days of their acceptance, EDA will not be able to prepare environmental impact statements for those projects which may significantly affect the quality of the human environment. However, to the fullest extent possible within this time period, EDA will analyze a project's potential environmental impacts and give appropriate consideration to environmental impacts in making its final decision.

(2) In order that EDA may conduct its environmental analysis of proposed projects, applicants shall include the following materials with their application, except with respect to subsections C and D, if such materials are not available, in which case the applicant must so certify:

(i) a description of those elements of the proposed project which will have an impact on the environment, the nature of the environment which will be affected; and data on the expected environmental impact;

(ii) alternatives to the proposed project;

(iii) any environmental analysis previously conducted by local, State, federal agencies; and

(iv) evidence of public reaction to the project such as transcripts of local public hearings held on the proposal.

(3) EDA will independently review and analyze environmental information submitted by applicants.

(i) Where appropriate, EDA, within the 60 day limit, may seek the views of other government agencies which have jurisdiction by law or special expertise with respect to any environmental impact involved.

(ii) If a project appears to be highly controversial for environmental reasons and there is a need. to further understand the basis of the controversy, EDA may, within the 60 day limit, request the views of concerned residents through a newspaper notification or a public information meeting held near the project site.

(4) EDA shall deny an application if, after consideration of the benefits of a project against any environmental costs, it concludes that the environmental costs exceed the benefits. EDA may deny any application solely on the basis that its environmental impact analysis discloses that unacceptable adverse impacts will or are likely to result. EDA, where necessary, may condition approval of a project upon the adoption of specified measures designed to mitigate any adverse environmental impacts.

(b) The National Historic Preservation Act. (1) Applicants shall include with their applications either a statement of their State Historic Preservation Officer's views of the proposed project or shall certify that their State Historic Preservation Officer was provided with a detailed project description and request for comments prior to application's submission to EDA.

(2) If necessary, EDA will attempt to complete the coordination of proposed projects with the Advisory Council on Historic Preservation. EDA will use the results of this coordination process, even though completion of this process may not be possible, as a factor in making a final decision on the project.

(c) The Wild and Scenic Rivers Act. (1) If required, EDA will coordinate its processing of a proposed project with either the Department of Interior or the Department of Agriculture.

(2) EDA will use the results of this coordination process, even though completion of the process may not be possible, as a factor in making a final decision on the project. § 316.14 Final determination.

(a) All applications for assistance under this part shall be processed by the appropriate EDA Regional Office.

(b) The Regional Director shall notify the applicant, in writing, when its application has been rejected and state the reasons therefor.

(c) The Regional Director shall forward to the Assistant Secretary in Washington, D.C., all applications which he deems are properly completed and eligible for assistance under this part.

(d) The Assistant Secretary shall review all applications received from the Regional Directors and make the final determination.

(e) If no determination has been made by the end of the sixtieth day after the application was received as determined in § 316.12 above, the application will be deemed to be approved.

§ 316.15 Termination.

(a) An appropriate official of the grantee may request EDA to cancel or terminate a public works project approved under this part. This request must be accompanied by a certified resolution or ordinance authorizing the requesting party to make such request. Before agreeing to such request, EDA will determine the legal sufficiency of such request.

(b) EDA may initiate a cancellation or termination of a protest approved under this part for failure by the grantee to adhere to the requirements of the grant.

(c) EDA may initiate a cancellation or termination of a project approved under this part whenever it determines that such cancellation or termination is in the best interest of the government. Cancellation or termination shall be effected by delivering a notice to the grantee specifying the extent of the cancellation or termination and the date upon which it becomes effective.

Effective date: These regulations become effective on August 23, 1976.

JOHN W. EDEN,

Assistant Secretary. [FR Doc.76-24805 Filed 8-20-76; 9:47 am]

ECONOMIC DEVELOPMENT ADMINISTRATION — GUIDELINES FOR LOCAL PUBLIC WORKS CAPITAL DEVELOPMENT AND INVESTMENT PROGRAM

A. AUTHORITY

Title I of the Public Works Employment Act of 1976, which is entitled the Local Public Works Capital Development and Investment Act of 1976, authorizes grants to any State or local government for local public works projects that will stimulate employment.

B. OBJECTIVES

1. Legislative Objectives

Employment opportunities in areas of high unemployment through the expeditious construction or renovation of useful public facilities.

A countercyclical stimulus to the national economy.

2. EDA Program Objectives

To insure that adequate consideration is given to the relative needs of the various sections of the country.

Within those sections, to fund projects that maximize immediate employment opportunities and, wherever possible, that maximize employment opportunities for unemployed residents of the project area.

To fund locally oriented projects that provide useful public facilities in areas of high unemployment and low income.

To fund projects that advance local plans and provide long term benefits.

To fund facilities that could not have been constructed in the absence of the Local Public Works grant (i.e., facilities for which Federal funds are not merely replacing or reducing local, State, or other Federal monies that have been specifically provided or set aside).

To carry out a comprehensive evaluation of both the direct employment impact and the indirect or stimulative impact of the projects funded.

C. FUNDING

The authorization for carrying out this program is $2.0 billion for the period beginning with EDA's receipt of appropriation and ending September 30, 1977.

D. ELIGIBLE APPLICANTS

Eligible applicants for this program are:

1. States

The several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.

2. Local Governments

Any city, county, town, parish, or other political subdivision of a State (including general-purpose and special-purpose units of government and local school districts), and any Indian tribe.

E. ELIGIBLE AREAS

The Act requires that 70 percent of all funds appropriated for this program be granted for projects submitted by States or local governments having unemployment rates in excess of the national rate. It further requires that 30 percent of all funds appropriated be for projects submitted by States or local governments having unemployment rates equal to or below the national average.

In line with these requirements, the following guidelines will govern area eligibility.

1. Unemployment Level

It shall be EDA's policy that the majority of projects approved will be in areas with an unemployment rate of 6.5 percent or more for the average of the three most recent consecutive months for which data is available. Projects in areas with an unemployment rate of less than 6.5 percent will be considered only when funding of such projects is necessary to fulfill the minimum funding level required for each State or if funds are available in the 30 percent category.

2. Eligibility for Priority Consideration

An area will be eligible for priority consideration based on unemployment rates developed using the procedures described in Section E.3.b. Priority will be given to areas based on these unemployment rates for the 70-30 categories discussed above.

3. Determination of Areas Eligible for Priority Consideration

a. Project Area Definition:

(1) To establish an unemployment rate for an area, a "project area" must be defined. The boundaries for this project area may be defined according to the area from which the labor force for the project is expected to be drawn. The project area should be one for which unemployment rates are available or easily calculable. Such areas include, but are not limited to, census tracts, neighborhoods, counties, cities, Standard Metropolitan Statistical Areas, and multicounty areas or parts thereof.

(2) In determining where the labor force can be expected to be drawn from, the journey-to-work characteristics of the labor force and the applicant's intent to hire the unemployed of a specific area must be considered.

(3) Applicants who anticipate that project labor requirements will draw upon the unemployed and underemployed labor resources of other jurisdictions outside the immediate project area (such as a multicounty area) may define their project area to include those jurisdictions.

b. Procedures for Obtaining Unemployment Data:

Note: The unemployment data discussed in these guidelines must be for periods within the 12 months preceding the date of application.

(1) Bureau of Labor Statistics

The principal source of the unemploymentstatistics to be used in considering applications submitted by States and local governments will be the latest available data published by the U.S. Bureau of Labor Statistics (BLS). This data will be used to determine whether an application comes from a 70 percent area or a 30 percent area and to rank individual projects from these areas within a State.

Initially, EDA Regional Offices and Economic Development Representatives (EDRS) will be furnished a list for public use that will contain unemployment data for those States and "identifiable" local governments for which BLS, for its Comprehensive Employment and Training Act of 1975 (CETA), has published such data. The initial data will include the unemployment rate and total number of unemployed persons for the three most recent consecutive months for States and areas for which information is available. BLS data indicating unemployment rates by county will become available in the near future and will also be furnished to EDA Regional Offices and EDRs. Potential applicants should contact EDRs or EDA Regional Office staff to determine if they are covered by such BLS data.

(2) State Employment Security Agencies — An applicant whose proposed project is in an area for which BLS unemployment data is not available may seek to obtain the required data, for the three most recent consecutive months, from the appropriate State Employment Security Agency. EDA will automatically accept the unemployment data as confirmed by the State Agency. This confirmation must accompany the project application.

(3) Specially Defined Areas—

A local government situation within a larger area may seek to obtain State confirmation for its own unemployment date. A local government may also seek to obtain State confirmation for any community or neighborhood within its jurisdiction. The U.S. Department of Labor has issued instructions to State Employment Security Agencies to respond affirmatively to the requests of local governments for unemployment rates for the three most recent consecutive months for both these types of areas. However, no such request should be made by a local government unless it has good reason to believe that the unemployment rates of such areas warrant the establishment of separate rates.

A project application submitted to EDA by a local government for a specially defined area must be accompanied by evidence that the unemployment data for that area has been confirmed by the State Employment Security Agency.

If, for any reason, a State Agency should advise an applicant that it is unable to provide unemployment dates for areas covered under this section and Section (2) above, a statement of the circumatances should be furnished the appropriate EDA Regional Office, which will contact EDA's Qualification Division in Washington (telephone 202 337-2710) for advice and assistance.

(4) Indian Reservations

If an Indian tribe is unable to establish its three month average unemployment rate according to the procedures described above, it may submit to the appropriate EDA Regional Office such evidence as it can produce regarding unemployment conditions within its jurisdiction. Preferably, this would be in the form of a statement signed by an authorized official of the Bureau of Indian Affairs. However, if this cannot be obtained, the evidence should include the reaults of a study or survey showing labor force, employment and unemployment numbers, and unemployment rates for the three most recent consecutive months. The individuals or organizations carrying out the survey or study should be identified, and the methodologies and procedures followed should be described. This documentation should be submitted to EDA's Qualification Division in Washington, which will determine the acceptability of the unemployment data submitted and advise the applicant and the Regional Office of its findings.

F. TYPES OF GRANTS

The types of grants that are available to State and local governments under this program are:

1. Direct Grants

100 percent grants for local public works projects on which construction has not been started.

2. Supplemental Grants

a. Grants to supplement other Federally funded public works projects, in the amount necessary to make the Federal share 100 percent of the project cost, provided that the other Federal funds are immediately available and that construction on the project has not been started owing to a lack of funding for the non-Federal share.

b. Grants to provide all or any part of the required State or a local share (but not both shares) of the cost of a public works project for which financial assistance is authorized under the State or local law requiring such a contribution, provided that the financial assistance other than that being provided is immediately available and that construction on the project has not been started.

The guidelines and requirements set forth here apply to both direct and supplemental grants, unless otherwise specified.

G. TYPES OF PROJECTS

1. Eligible Projects

The types of projects eligible for funding under this program are :

a. Construction (including demolition and other site preparation activities), renovation, repair, and other improvements related to public works projects that have a local orientation. Such local public works projects include, but are not limited to, municipal offices, courthouses, libraries, schools, police and fire stations, detention facilities, water and sewer lines, streets and roads (including curbs), sidewalks, lighting, recreational facilities, convention centers, civic centers, museums, and health, education and social service facilities.

b. Public works projects authorized by other Federal acts.

2. Ineligible Projects

The types of projects that are not eligible for funding under this program are:

a. Projects that have as their principal purpose — or permanent effect — the channelization, damming, diversion, or dredging of any natural watercourse, or the construction or enlargement of any canal (other than a canal or raceway designated for maintenance as an historic site). The primary purpose of this restriction is the environmental protection of the Nation's natural watercourses.

This prohibition refers, generally, to the alteration of the natural state of a watercourse, i.e., to those watercourses (or portions of watercourses) that have not been disturbed by man. Therefore, the construction of a new dam or the expansion of the capacity of an existing dam is prohibited, as is the construction of a new canal or the expansion of an existing canal, except one designated as an historic site.

Construction on natural watercourses that have already been diverted, dammed, and channelized would constitute an acceptable project if the final project result were the improvement of the natural flow of the entire watercourse. Thus, acceptable projects would include: dredging a previously diverted river; desilting an existing dam; temporarily diverting a river for the principal purpose of constructing a bridge; and constructing, reconstructing, or repairing a jetty in an area where beach erosion or storm damage has occurred.

b. Projects on which construction is ongoing (i.e., on which a contract for construction has been awarded, notice to proceed or its equivalent has been issued or onsite labor has begun, whichever has occurred earlier).

c. Projects requiring financial assistance in excess of $5 million. However, in unusual circumstances, the Assistant Secretary may waive this requirement.

d. Projects that will take more than two years to complete. This requirement may also be waived by the Assistant Secretary in unusual circumstances.

e. Projects for which this program's funds would reduce, diminish, or replace funds specifically budgeted and/or committed for the project by the State, local government, Indian tribe, or other Federal agency.

H. PROGRAM ADMINISTRATION

1. Considerations

The following factors will be considered in the administration of this program:

a. Unemployment, in both absolute numbers and concentration, is unevenly distributed in the country.

b. Areas in some States do not have unemployment rates in the 70-30 proportions prescribed by the Act.

e. There are large concentrations of unemployed persons in the major urban areas of the country.

2. Policy Implications

To account for these factors, the following policies will govern the administration of this program.

a. State Minimum Funding Level, PlanningAllocations, or Ceiling(s) :

(1) Each Regional Office will observe, with respect to each State served by it, a State minimum funding level, planning allocation, or ceiling(s). The formula by which these levels will be established is as follows:

Subject to EDA administrative costs and statutory minimum amounts allocated to individual States by the Act, 65 percent of the appropriated funds will be set aside as planning allocations for individual States based on each State's share of the total national unemployed (i.e, the ratio between the number of unemployed workers residing in a State and the total number of unemployed workers in the Nation) averaged for the three most recent consecutive months; 35 percent of the funds will be set aside as planning allocations to individual States based on the relative severity of unemployment for each State (i.e, the relationship between a State's unemployment rate and the national unemployment rate) averaged for the three most recent consecutive months.

Further, in accordance with statutory requirements, each State allocation, including that for the District of Columbia and for Puerto Rico, will not be less than 0.5 percent or more than 12.5 percent. For Guam, the Virgin Islands, and American Samoa, not less than 0.5 percent will be granted for all three.

(2) It should be understood that the level assigned to each State is not intended to establish an entitlement to any minimum or maximum level of project assistance within the State (unless such is the statutory minimum or maximum). Rather, it is adopted to further the objective of insuring that consideration is given to the relative needs of various sections of the country.

(3) One hundred and twenty days after the date on which funds are first apportioned for program assistance, and at any time thereafter, the Assistant Secretary may reconsider the State funding levels previously established and make such adjustments as are determined to be reasonable in achieving the purposes of the Act.

b. 70-30 Priority:

The 70-30 requirement of the Act (discussed in Section E of these guidelines) will be met by totaling the funding of projects on a State level — or regionally or nationally, if necessary.

(1) First priority and expedited processing will be given to applications submitted from areas having an unemployment rate for the average of the three most recent consecutive months (for which data is available at the time of application) that is in excess of the national unemployment rate. Seventy percent of the funds appropriated for this program will be available for projects from these areas.

(2) Second priority will be given to applications submitted from areas having an unemployment rate for the average of the three most recent consecutive months (for which data is available at the time of application) in excess of 6.5 percent but less than or equal to the national average. Thirty percent of the funds appropriated for this program will be available for projects from these areas.

(3) Third priority will be given to applications submitted from areas having an unemployment rate equal to or less than 6.5 percent. Applications from such areas will be approved if funds are available in the 30 percent priority level, or if funding of the proposed project is necessary to fulfill the minimum funding level required for each State.

(4) Public works projects of generalpurpose units of local governments within each of the above priorities will be given priority and preference.

3. Project Selection Procedure

a. Considerations:

In line with the purposes and objectives of the Act, EDA's goal of choosing projects having the greatest potential for furthering these purposes and objectives, the relative importance of various factors in determining this potential, and the availability and consistency of data specified in the Act, the following project selection procedures have been adopted.

b. Project Selection Formula:

The ranking procedure developed for selecting projects within each State's planning allocation uses those project and area factors that will contribute most to achieving substate equity (priority allocation of funds based on need) in the distribution of planning funds, and insures that the relatively more economically efficient projects (those having maximum impact on unemployment) are selected. Certain factors will be standardized in order to perform comparative analyses of projects within each State. Each factor has been assigned a weight to reflect its importance in the ranking procedures.

(1) Basic Rank

The basic rank of a project will be determined by the following factors:

(a) The number of unemployed workers in the project area averaged over the three most recent consecutive months for which data is available at the time of application. An area characterized as having a high unemployment rate overall is generally characterized as having a high unemployment rate in the construction industry. Similarly, an area characterized as having a large number of unemployed overall is generally characterized as having a relatively large number of unemployed construction workers as a share of the overall unemployed. Therefore, this factor gives consideration to construction unemployment. This factor will constitute 30 percent of a project's basic rank.

(b) Severity and duration of unemployment, as measured by the unemployment rate prevailing in the project area averaged over the three most recent consecutive months for which data is available at the time of application. This factor will constitute 25 percent of a project’s basic rank.

(c) The cost per person-month of employment, defined as the ratio of the total cost of the project to the total number of person-months of employment to be generated. It should be emphasized that supplemental assistance provided for under the Act will be considered as part of total project costs; the latter is defined as funds from all sources, whether Federal, State, or local. This factor will constitute 30 percent of a project's basic rank.

(d) The level of income prevailing in the project area. This factor will constitute 15 percent of a project's basic rank.

(2) Additional Consideration

A project's basic rank will be increased if the project meets one or more of the following criteria:

(a) Exhibits potential for providing longterm benefits (e.g., provides a needed community facility). The basic rank of a project will be increased up to a maximum of 10 percent if it meets this criterion. The amount of increase will be determined by the nature and extent of the longterm benefit(s) to be provided by the project.

(b) Is sponsored by a general-purpose unit of local government. Projects meeting this criterion will have their basic rank increased by five percent.

(c) Relates to existing approved plans and programs of a local community development or regional development nature or promotes or advances longer range plans and programs. The basic rank of a project meeting this criterion will be increased by five percent.

(3) Final Rank

The final rank of a project is to be determined by summing the basic rank and increases attributable to the additional considerations defined above.

c. Application of Project Selection Formula:

(1) Geographic Considerations

Projects will be ranked and assessed relative to other projects submitted from the same State until such time as the Assistant Secretary determines, pursuant to Section H.2.a3. of these guidelines, that comparison of projects submitted from different States is required either to further the purposes and objectives of the Act or to comply with statutory requirements.

(2) Priority Considerations

Within each State, projects submitted from areas with an employment rate exceeding the national average for the three most recent consecutive months for which data is available at the time of application will be ranked and compared only with projects submitted from other areas in this priority category.

Similarly, projects submitted by areas with an unemployment rate below the national average for the three most recent consecutive months will be ranked and compared only with projects submitted from other areas in the same priority category.

(3) Project Selection

Within each State and priority category, projects will be selected on the basis of their final ranks until the State planning allocation for each priority category has been exhausted or until such time as the Assistant Secretary, pursuant to Section H.2.a.3 of these guidelines, determines that the remaining funds made available under the Act must be reallocated among the States.

The Agency may disapprove an application for a project when it is believed that the project construction activity will generate labor requirements in excess of those available among the unemployed in the project area. Further, for areas having large pools of unemployed labor, projects will be ranked; however, the Agency may decline applications of lower rank when the sum of project labor requirements exceeds the available supply of unemployed labor.

I. APPLICATIONS PROCEDURES

1. Forms

An application form, developed for this program and available from EDA's Regional Offices and EDRs, is to be used for all proposed projects. Owing to the short time available for developing project applications, pre-application conferences for projects will not be held.

2. General Considerations and Requirements for Financial Assistance

a. An applicant must provide EDA with satisfactory assurance that onsite labor can begin within 90 days of project approval. It is recognized that many Northern States could have difficulty in meeting this requirement, particularly during the winter months. This problem will be minimized by the following:

(1) The planning allocation established for each State will insure that the relative needs of the country are met, and that projects are competing with other projects within the same State, rather than with all projects in the Nation. This will eliminate unfair competition among States. It is expected that those States having the most severe seasonality problems will have projects that are funded later in the program.

(2) Because in those States experiencing varying weather conditions the 90-day requirement could be seen as giving unfair advantage to fair weather areas, the definition of onsite labor will be interpreted liberally. That is, some onsite labor must begin within 90 days, with fullfledged construction capable of being started as soon as weather permits.

b. An applicant must provide EDA with the following environmental information (exceptitems (5) and (6) if such materials are not available and the applicant so certifies): (1) those elements of the project that will impact the environment; (2) the nature of the environment to be impacted; (3) data on the expected environmental impact; (4) alternatives to the proposed project; (5) any environmental analyses previously conducted by local, State, or Federal agencies; and (6) public reaction as evidenced, for example, in transcripts of local public hearings held on the proposed project.

c. An applicant must insure that plans, specifications, and estimates for projects are either complete or sufficiently complete so as to insure that onsite labor can begin within 90 days of project approval. Final plans and specifications will not be required for EDA review and approval except in unusual circumstances.

d. An applicant must provide EDA with satisfactory assurance that no person has been discriminated against or will be denied the benefit of the project on the grounds of sex, national origin, color, or race.

e. A project should relate to existing approved local plans and programs of a community or regional development nature — e.g., OEDPs, Comprehensive Plans, HUD 701 Plans, EPA Areawide 208 Plans — as applicable, and should advance long range plans.

f. To the extent possible, at least 10 percent of the personnel hired for a project should be project area residents who had been unemployed for at least 30 days prior to being hired.

g. For a project involving a neighborhood or community within a larger jurisdiction that is eligible for priority assistance on the basis of the unemployment rate for this specially defined area, the project must directly benefit or provide employment for unemployed persons within that neighborhood or community. However, it is not necessary that the project be located in that neighborhood or community — only that it benefit or provide employment for unemployed area residents.

h. For supplemental grants providing the non-Federal share of another Federally-funded public works project, the applicant must obtain certification from the other agency involved in the project that; (1) the project is approved and funds are immediately available; (2) construction has not been started owing to the lack of the non-Federal share; and (3) onsite labor can begin within 90 days.

i. For supplemental grants providing the State or local share of any State or local authorized public works project, the applicant must obtain certification from the State or local agency involved in the project that: (1) the project is approved and funds for one of the shares are immediately available; (2) construction has not been started; and (3) onsite labor can begin within 90 days.

j. If a 100 percent direct grant application has been authorized and is pending under another Federal program(s), that application — to be eligible for funding under this program — must be withdrawn from the other program, and evidence of the withdrawal must accompany the application for EDA funding. In certain situations, as required by EDA, grant applications authorized and/orpending under another Federal program(s) must be reviewed — and certifications obtained from the agency (agencies) involved — concerning design, program, and technical standards.

3. Procedures

a. An applicant will develop an application in conjunction with EDA's field organization and will submit the completed application to the appropriate EDA Regional Office.

b. An application may be accepted only by the appropriate Regional Director, processed by the Regional Office, and approved by the Assistant Secretary. No application will be accepted unless funds have been appropriated and made available to the Agency.

c. A modified A95 clearinghouse procedure has been requested by EDA from the Office of Management and Budget. The procedure will be as follows. An applicant will be encouraged to submit its full application or notification of intent to apply to the appropriate clearinghouses as early as possible. Upon submission of an application to EDA, the applicant must certify that the full application has been submitted to the appropriate clearinghouses. EDA may begin processing the application upon its acceptance; however, the Agency will make no final decision to approve an application until 30 days after its acceptance, unless, of course, clearinghouse response is received before the 30 days have elapsed. Clearinghouse comments will be submitted directly to EDA, and EDA will consider such comments until processing of the application is completed. This procedure will be in effect for 90 days.

An applicant submitting an application after the first 90 days during which EDA is accepting applications will be expected to attach all State and areawide clearinghouse comments to the application, as required by Circular No. A95. It should be noted that clearinghouses will often be able to provide technical assistance in the preparation of applications for assistance under this program.

4. Acceptance of Applications

The Regional Office will begin the processing of an application after it has been determined that the application is eligible for consideration, has been properly prepared, and contains all necessary material. The Regional Office will notify the applicant of one of the following:

The application has been received for processing.

The application contains deficiencies that must be corrected. After the deficiencies have been corrected, the application may be resubmitted to the Regional Office. Upon resubmission, the application will be treated as a first submission.

The application is ineligible for funding, stating the specific reason (e.g., ineligible project type or applicant) .

There is a need for comment by other Federal agencies.

Although the project is eligible, all funds have been expended, the State's maximum funding level has been met, for no funds remain for the priority group.

5. Final Determination

After the Regional Director has received and begun processing the application, EDA has 60 days within which to make a final determination on approving or denying the project proposal. If, after 60 calendar days, the applicant has not been advised regarding final determination, the project will be considered approved.

EDA, to comply with the Local Public Works Capital Development and Investment Act, the regulations governing this Act, and these guidelines — particularly in the case of areas in other than the 70 percent priority group — may disapprove applications without prejudice. When this is done, EDA will so notify the applicant promptly. Applications that have been disapproved without prejudice automatically will be considered as resubmitted for further processing, unless the applicant withdraws the application in writing.

J. EXCLUSIONS

To meet the time frames mandated by the Act, delays in the initiation or construction of projects must be avoided. Therefore, projects normally will not be approved if it appears that any of the following conditions might result in delays that would prevent construction from being initiated within 90 days of project approval:

Clear title to the project site has not been obtained.

Condemnation or relocation actions are involved.

Information contained in assurances for plans and specifications is not sufficient.

K. ENVIRONMENTAL CONSIDERATIONS

1. National Environmental Policy Act — Because the Local Public Works Capital Development and Investment Act requires that EDA process applications within 60 days of their acceptance, EDA will not be able to prepare environmental impact statements for those projects that may significantly affect the quality of the human environment. However, EDA will, to the fullest extent possible within the allotted 60 days, analyze a proposed project's potential environmental impacts and give appropriate consideration to these impacts in making its final decision.

The environmental impact analysis will include: (1) the identification of any potential major adverse environmental impacts; and (2) when feasible, the development of mechanisms and measures to avoid or mitigate such impacts. EDA will deny an application if, after consideration of the benefits of a project against any environmental costs, the Agency concludes that the environmental costs exceed the benefits. EDA may deny any application solely on thebasis that its environmental impact analysis discloses that unacceptable adverse impacts will or are likely to result. Unacceptable adverse impacts may include, but are not limited to, the following:

The addition to the environment of a pollutant that will violate or increase an existing violation of a Federal, State, or local standard covering such a pollutant.

The deterioration of an environmental resource declared to be of national significance, such as a property listed on or eligible for the National Register of Historic Places.

The major disruption, or conversion to another land use, of important environmental resources within the surrounding area, particularly those resources in scarce supply.

The existence of substantial controversy among government agencies or residents/ users of the project area concerning the acceptability of the project's environmental impact.

The time frame for application review mandates that the Regional Offices identify early in the application stage those projects having substantial environmental costs and/ or unacceptable adverse impacts. Applications that are inconsistent with the environmental policies described above are discouraged.

2. National Historic Preservation Act In compliance with the National Historic Preservation Act, all project applications must be accompanied either by a statement of the State Historic Preservation Officer's (SHPO) views on the project or by evidence that the SHPO was provided with a detailed project description and a request for comment prior to submittal of the application.

EDA will attempt to complete the coordination of proposed projects with the Advisory Council on Historic Preservation, as required. Even though completion of the coordination process may not be possible, the results of the process will be used by EDA in making the final decision on the project.

3. The Wild and Scenic Rivers Act — As required, EDA will coordinate with either the Department of the Interior or the Department of Agriculture regarding the requirements of the Wild and Scenic Rivers Act.

L. COMPLIANCE

In addition to the requirements of the Local Public Works Capital Development andInvestment Act, projects must be in compliance with the following:

15 CFR Subtitle A, Part 8 Civil Rights and Title VI of the Civil Rights Act of 1964.

The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and 13 CFR Part 310.

The National Flood Insurance Program and 13 CPR 309.15.

The National Environmental Policy Act of 1969, as amended.

The Archeological and Historic Preservation Act.

The Federal Water Pollution Control Act, as amended.

The National Historic Preservation Act. The Clean Air Act.

The Fish and Wildlife Coordination Act of 1975.

The Wild and Scenic Rivers Act, as amended.

The Endangered Species Act of 1973.

OMB Circular A95 (modified procedure for this program) .

13 CFR 309.14 Design, construction and alteration of buildings to accommodate the physically handicapped.

13 CFR 309.11 Special purpose units of local governments.

13 CFR 309.26 Project modification.

The Davis-Bacon Act.

Part E of the Omnibus Safe Streets and Crime Control Act of 1968, as amended (for detention facility projects) .

13 CFR 314 Property Management.

The Contract Work Hours and Safety Standards Act.

The Intergovernmental Cooperation Act of 1968.

The Copeland Anti-Kickback Act.

13 CFR 309.9 Records and Audits.

13 CFR 309.27 Land Use near Federal Airfields.

Executive Order 11246, of 1965, Equal Employment Opportunity.

All other existing or further acts affecting this program, including State and local acts.

M. PROJECT COSTS

1. Eligible Costs

The types of project costs that are eligible for funding under this program are:

a. Construction and facility improvement costs.

b. Uniform Relocation Assistance expenses and payments.

c. Costs for capital equipment not included in the construction contract.

d. Interest on interim construction financing.

e. Costs for completing and updating plans, specifications, and estimates — where either architectural design/preliminary engineering or related planning has already been undertaken, and where additional architectural and engineering work or related planning is required to permit construction of the project.

f. Other A/E costs such as inspection fees and test borings.

g. Legal and audit costs.

2. Ineligible costs —

The types of costs that are not eligible for funding under this program are:

a. Costs for acquiring real property — acquisition of land, structures, and rights-of-way, including costs incidental to acquisition of land.

b. Maintenance costs — costs incurred for any necessary repairs or upkeep of property that neither add to the permanent value of the property nor appreciably prolong its intended life, but rather keep it in an efficient operating condition.

c. Costs for plans, specifications, and estimates for projects incurred prior to receipt of an application by EDA. Such costs will not be reimbursed by EDA, nor will costs incurred subsequent to receipt of applications unless the project is approved.

d. Cost overruns. This means that, regardless of the type of grant (100 percent direct or supplemental), no additional funding will be extended once a project is approved. Any cost overrun incurred on a project must be funded by the grantee.

N. CONSTRUCTION MANAGEMENT PROCEDURES

1. Processes

The following processes are to be followed in the implementation of projects funded under this program:

a. Each grantee will be provided with a copy of "Design and Construction Guidelines for the Local Public Works Capital Development and Investment Act," which details construction procedures and requirements.

b. EDA will monitor construction of 100 percent direct grant projects and projects for which the grant is supplemental to State or local funding.

c. EDA will transfer to other Federal agencies the supplemental grant funds for the projects of those agencies. The other agencies will then administer the grant, monitor construction, and provide EDA with assurance that program requirements of the Local Public Works Capital Development and Investment Act have been met.

d. Construction on projects normally will be contracted for through competitive bidding.

e. EDA will allow simultaneous design and construction of projects when this is necessary for the applicant to meet the requirement that onsite labor begin within 90 days of project approval.

A description of the procedures to be followed in such cases will be supplied to the grantee by the appropriate EDA Regional Office.

f. Any cost underrun incurred on a local public works project may be used for additional construction, if approved by EDA. If an underrun cannot be used for this purpose, the amount of the underrun will be returned to EDA.

2. Requirements

The following major construction management requirements are to he followed in the implementation of each project approved under this program. Detailed instructions for these and other requirements will be supplied to the grantee upon project approval.

a. A Project Management Conference normally will be held. This conference is to be attended by, but not limited to, EDA representatives, the grantee, his designer, and his attorney to discuss design and construction requirements.

b. The grantee must obtain EDA approval of A/E and related planning services that are found to be required after the project has been approved.

c. The grantee must insure that adequate construction surveillance and inspection are carried out by a fully qualified inspector.

d. The grantee must provide to EDA regular reports on design and construction progress and on the status of all advanced grant funds.

e. The grantee must provide to EDA evidence that all necessary permits, certifications, land titles, rights-of-way, easements, etc., needed to carry out the project have been obtained.

f. The grantee must establish a financial management system that meets FMC 7-47 standards.

g. The grantee must insure that bidding and contract award procedures are accomplished in accordance with FMC 7-47 standards.

h. The grantee must obtain EDA concurrence on any major changes affecting the project as approved by EDA.

i. During project construction, the grantee must provide to EDA monthly reports and a final report indicating number of employees, person-months of work, and certain characteristics of the individuals employed on the project.

j. EDA normally will make disbursements through the line of credit procedures outlined in the Department of the Treasury Fiscal Requirements Manual.