83_FR_21938 83 FR 21846 - Matching Funds Requirements for Agricultural Research and Extension Capacity Funds at 1890 Land-Grant Institutions, Including Central State University, Tuskegee University, and West Virginia State University, and at 1862 Land-Grant Institutions in Insular Areas

83 FR 21846 - Matching Funds Requirements for Agricultural Research and Extension Capacity Funds at 1890 Land-Grant Institutions, Including Central State University, Tuskegee University, and West Virginia State University, and at 1862 Land-Grant Institutions in Insular Areas

DEPARTMENT OF AGRICULTURE
National Institute of Food and Agriculture

Federal Register Volume 83, Issue 92 (May 11, 2018)

Page Range21846-21850
FR Document2018-10015

This final rule amends National Institute of Food and Agriculture (NIFA) regulations for the purpose of implementing the statutory amendments applicable to the National Institute of Food and Agriculture's (NIFA) matching requirements for Federal agricultural research and extension capacity (formula) funds for 1890 land-grant institutions (LGUs), including Central State University, Tuskegee University, and West Virginia State University, and 1862 land-grant institutions in insular areas, and to remove the term ``qualifying educational activities.'' These matching requirements were amended by the Farm Security and Rural Investment Act; the Food, Conservation, and Energy Act of 2008; and the Agricultural Act of 2014.

Federal Register, Volume 83 Issue 92 (Friday, May 11, 2018)
[Federal Register Volume 83, Number 92 (Friday, May 11, 2018)]
[Rules and Regulations]
[Pages 21846-21850]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10015]


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DEPARTMENT OF AGRICULTURE

National Institute of Food and Agriculture

7 CFR Part 3419

RIN 0524-AA68


Matching Funds Requirements for Agricultural Research and 
Extension Capacity Funds at 1890 Land-Grant Institutions, Including 
Central State University, Tuskegee University, and West Virginia State 
University, and at 1862 Land-Grant Institutions in Insular Areas

AGENCY: National Institute of Food and Agriculture, USDA.

ACTION: Final rule.

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

SUMMARY: This final rule amends National Institute of Food and 
Agriculture (NIFA) regulations for the purpose of implementing the 
statutory amendments applicable to the National Institute of Food and 
Agriculture's (NIFA) matching requirements for Federal agricultural 
research and extension capacity (formula) funds for 1890 land-grant 
institutions (LGUs), including Central State University, Tuskegee 
University, and West Virginia State University, and 1862 land-grant 
institutions in insular areas, and to remove the term ``qualifying 
educational activities.'' These matching requirements were amended by 
the Farm Security and Rural Investment Act; the Food, Conservation, and 
Energy Act of 2008; and the Agricultural Act of 2014.

DATES: This final rule is effective May 11, 2018.

FOR FURTHER INFORMATION CONTACT: Maggie Ewell, Senior Policy Advisor, 
202-401-0222.

SUPPLEMENTARY INFORMATION:

I. Background and Purpose

    The National Institute of Food and Agriculture (NIFA) amends part 
3419 of Title 7, subtitle B, chapter XXXIV of the Code of Federal 
Regulations which implements the matching requirements provided under 
section 1449 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (NARETPA) for agricultural research and 
extension capacity (formula) funds authorized for the 1890 land-grant 
institutions, including Central State University, Tuskegee University, 
and West Virginia State University and 1862 land-grant institutions in 
insular areas. This revision is required due to the statutory 
amendments of sections 7212 of the Farm Security and Rural Investment 
Act of 2002 (FSRIA); section 7127 of the Food, Conservation, and Energy 
Act of 2008; and section 7129 of the Agricultural Act of 2014. 
Additionally, NIFA makes these changes to the Definitions and Use of 
Matching Funds sections to provide clarity on allowable uses of 
matching funds.

Response to Comments on the Proposed Rule and Revisions Included in 
Final Rule

    On November 13, 2017, NIFA published in the Federal Register a 
Notice of Proposed Rulemaking entitled ``Matching Funds Requirements 
for Agricultural Research and Extension Capacity Funds at 1890 Land-
Grant Institutions and 1862 Land-Grant Institutions in Insular Areas'' 
(82 FR 52250) with the same purpose as above. The public had 60 days to 
comment, with the comment period closing January 12, 2018. NIFA 
received only one comment in response to the Notice of Proposed 
Rulemaking and this comment addressed issues that are outside the scope 
of this rule. The commenter discussed the inhumane treatment of farm 
animals in general. Because this comment is outside the scope of this 
rule, no change will be made to the language of the revision based on 
this comment.

Summary of Changes in Final Rule

Section 3419.1 Definitions
    The definition of an eligible institution is updated to include 
West Virginia State University (formerly West Virginia State College) 
and Central State University. Section 753 of the Agricultural, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2002 (Pub. L. 107-76) restored 1890 land-grant 
institution status to West Virginia State College. In 2004, the West 
Virginia Legislature approved West Virginia State College's transition 
to University status. Central State University was recognized as an 
1890 land-grant institution under section 7129 of the Agricultural Act 
of 2014.
    In 2014, NIFA re-branded its formula grant programs as ``capacity 
grants.'' Therefore, the definition of formula funds is changed to 
reflect this terminology, capacity funds, and the words ``by formula'' 
are inserted to clarify that capacity funds are provided by formula to 
eligible institutions.
    The term and definition for qualifying educational activities is 
removed due to the fact that this term has caused confusion regarding 
what constitutes an allowable qualifying educational

[[Page 21847]]

activity. NIFA follows the authorized uses of funds in NARETPA, 
codified at 7 U.S.C. 3221 and 3222, for extension and research 
programs. Research funds are for conducting agricultural research, 
printing, disseminating the results of research, administration, 
planning and direction, purchase and rental of land, and the 
construction, acquisition, alteration, or repair of buildings necessary 
for conducting agricultural research. Extension funds are for the 
expenses of conducting extension programs and activities. 7 U.S.C. 
3221(e) expressly prohibits extension funds from being spent on college 
course teaching or lectures in college.
    NARETPA also contains definitions that explain the difference 
between education in conjunction with extension programs and education 
and teaching. Extension education is defined as ``informal'' while 
teaching and education is defined as ``formal classroom instruction,'' 
which is expressly prohibited under 7 U.S.C. 3221(e).
    Because the authorized uses related to education expenses are 
clearly outlined in NARETPA and in 7 U.S.C. 3221 and 3222, NIFA does 
not see the value in including the term ''qualifying educational 
activity'' as a term in regulation and, further, wants to ensure there 
is no conflict between its regulatory authorizations and the law. 
Therefore, NIFA removes the term ``qualifying educational activity'' 
and will allow only informal educational activities, as authorized by 
statute.
Section 3419.2 Matching Funds Requirements
    Revisions to this section are required due to statutory amendments 
of sections 7212 of FSRIA; section 7127 of the Food, Conservation, and 
Energy Act of 2008; and section 7129 of the Agricultural Act of 2014. 
The information regarding Fiscal Years 2000, 2001, and 2002 are removed 
as they are outdated and no longer applicable. NIFA replaces this text 
with the matching requirements for 1862 land-grant institutions in 
insular areas for the Smith-Lever 3(b) and (c) program (7 U.S.C. 
343(e)(4)(A)) and the Hatch Act program (7 U.S.C. 361c(d)(4)(A)), which 
state that insular areas will provide matching funds from non-Federal 
sources in an amount equal to not less than 50 percent of the formula 
funds distributed by NIFA to each of the 1862 land-grant institutions 
in insular areas, respectively. NIFA replaces existing text with the 
matching requirement to the Evans Allen/Section 1445 fund program (7 
U.S.C. 3222d) and Extension/Section 1444 fund programs (7 U.S.C. 3221) 
which state that the State will provide equal matching funds from non-
Federal sources.
Section 3419.3 Limited Waiver Authority
    The section entitled, ``Determination of non-Federal sources of 
funds,'' Sec.  3419.3, is removed, because it reiterated a statutory 
requirement to submit, in the year 1999, a report on non-Federal funds 
used as match to be submitted. There is no further statutory 
requirement or authority to submit reports on the sources of non-
Federal funds. Section 3419.4 Limited Waiver Authority is re-designated 
as Sec.  3419.3 and modified to include the provisions of 7 U.S.C 
3222d(d): authorization of a 50% waiver of matching funds authority for 
1890 land-grant institutions. Additionally, Sec.  3419.3 includes the 
authority to waive up to 100% of the required match for 1862 land-grant 
institutions in insular areas that is present in 7 U.S.C. 343(e)(4)(B).
    NIFA also adds to this section a description of the criteria a 
land-grant institution must demonstrate in order to be eligible for a 
waiver. The three criteria are: Impacts from natural disaster, flood, 
fire, tornado, hurricane, or drought; State and/or Institution facing a 
financial crisis; or lack of matching funds after demonstrating a good 
faith effort to obtain funds.
Section 3419.4 Application for Waivers for Both 1890 Land-Grant 
Institutions and 1862 Land-Grant Institutions in Insular Areas
    NIFA adds Sec.  3419.4 to outline how 1890 land-grant institutions 
and 1862 land-grant institutions in insular areas may request a 
matching waiver. To request a waiver, the president of the institution 
must submit in writing a request for a waiver of the matching 
requirements. The request must include the name of the eligible 
institution, the type of capacity funds, which would include Section 
1444 Extension, Section 1445 Research; Smith-Lever; or Hatch Act; the 
fiscal year of the match; and the basis of the request, i.e., one or 
more of the criteria identified in 3419.3. Requests for waivers may be 
submitted with the application for funds or at any time during the 
period of performance of the award. Additionally, NIFA includes a 
requirement for current supporting documentation, where current is 
defined as within the past two years from the date of the letter 
requesting the waiver. It is critical that NIFA base its decisions for 
matching waivers on the current state of affairs within the State and 
institution. Using older data does not provide adequate rationale for 
NIFA to waive the statutorily required match for capacity programs.
Section 3419.5 Certification of Matching Funds
    The only change in this section is changing the word ``formula'' to 
``capacity,'' consistent with the current terminology used by NIFA.
Section 3419.6 Use of Matching Funds
    NIFA includes minor technical changes to this section: Use of the 
term ``capacity'' in place of ``formula'' and ``must'' in place of 
``shall.'' These technical changes have no impact on the requirements 
from the existing to the proposed regulation. Additionally, NIFA adds 
clarifying language that matching funds must be used for the same 
purpose as Federal dollars as well as a specific prohibition on the use 
of tuition dollars and student fees as match.
    The intent of the rule is to clarify two requirements. First, the 
amended rule clarifies that matching funds must be used by an eligible 
institution for the same purpose as Federal award dollars: Agricultural 
research and extension activities that have been approved in the plan 
of work. Second, the amended rule removes the end phrase: ``or for 
approved qualifying educational activities.'' As discussed in Sec.  
3419.1 Definitions, the use of the phrase ``qualifying educational 
activities'' has caused confusion regarding what constitutes an 
allowable qualifying educational activity. NIFA supports the position, 
as required under 2 CFR 200.306, that all matching funds must be 
necessary and reasonable for accomplishment of project or program 
objectives. In other words, to be allowable as a match, the costs must 
be allowable under the Federal award. This principle applies to 
matching funds 1890 land-grant institutions receive for Research and 
Extension programs, as well as the funds received by 1862 land-grant 
institutions in insular areas for Smith-Lever and Hatch programs.
    NIFA follows the authorized uses of funds in the authorizing 
statutes for determining what is allowable under the Federal award. For 
1862 land-grant institutions in insular areas, this is the authorized 
uses under 7 U.S.C. 343 for Smith-Lever programs and 7 U.S.C. 361a for 
Hatch Act programs.
    For 1890 Extension and Research programs, NIFA follows the 
authorizations included in NARETPA, codified at 7 U.S.C. 3221 and 3222. 
Research funds are for conducting agricultural research; printing; 
disseminating the results of research,

[[Page 21848]]

administration, planning and direction; purchase and rental of land; 
and the construction, acquisition, alteration, or repair of buildings 
necessary for conducting agricultural research. Extension funds are for 
the expenses of conduction extension programs and activities. 7 U.S.C. 
3221(e) expressly prohibits extension funds from being spent on college 
course teaching or lectures in college.
    NARETPA also contains definitions that explain the difference 
between education in conjunction with extension programs versus 
education and teaching. Extension education is defined as ``informal'' 
while teaching and education is defined as ``formal classroom 
instruction,'' which is expressly prohibited under 7 U.S.C. 3221(e).
    Because the authorized uses related to education expenses are 
clearly outlined in NARETPA and 7 U.S.C. 3221 and 3222, NIFA does not 
see value in including the term ``qualifying educational activity'' as 
a term in regulation and further, wants to ensure there is no conflict 
between its regulatory authorizations and the law. Therefore, NIFA 
removes the term ``qualifying educational activity;'' however, the 
removal is intended to prohibit expenditures related to formal 
education activities. NIFA will allow only informal education 
activities, as authorized by statute.
    Under 7 U.S.C. 3221(a)(3), funds appropriated for extension must be 
used for the expenses of conducting extension programs and activities, 
and for contributing to the retirement of employees subject to the 
provisions of 7 U.S.C. 331. 7 U.S.C. 3222(e) expressly prohibits 
extension funds from being spent on college course teaching and 
lectures in college. Section 1404(7) of NARETPA defines the term 
extension to mean informal education programs conducted in the States 
in cooperation with the Department of Education. Therefore, NIFA has 
determined that the current authorizations allow for informal education 
programs to be conducted with extension funding, but not for formal 
classroom instruction.
    7 U.S.C. 3222(a)(3) states that: ``research funding must be used 
for the expenses of conducting agricultural research, printing, 
disseminating the results of such research, contributing to the 
retirement of employees subject to the provisions of 7 U.S.C. 331 of 
this title, administrative planning and direction, and purchase and 
rental of land and the construction, acquisition, alteration, or repair 
of buildings necessary for conducting agricultural research.''
    Because the authorizing statutes so clearly identify authorized 
uses and prohibitions, NIFA believes that no further explanation or 
inclusion of qualifying educational activities is needed in this 
regulation.
    Finally, Section 1473 of NARETPA, 7 U.S.C. 3319, prohibits grantee 
institutions from using capacity funds for tuition remission. 
Therefore, NIFA revises this section to clarify that this prohibition 
also applies to student fees, as they are related to tuition. Further 7 
U.S.C. 3221 and 3222 do not include tuition or student fees as 
authorized uses of funds. As provided in 7 U.S.C. 3221(e) and 3222(d), 
no portion of the funds provided to an 1890 institution for extension 
and research shall be applied, directly or indirectly, to any purpose 
other than those specified in the authorizing statutes. Therefore, NIFA 
clarifies that tuition dollars and student fees are not to be used as 
matching funds.
Section 3419.7 Reporting of Matching Funds
    This revision adds a section on reporting of matching funds to 
clarify an existing requirement that 1890 land-grant institutions and 
1862 land-grant institutions in insular areas report all capacity funds 
expended on an annual basis using Standard Form (SF) 425, in accordance 
with 7 CFR part 3430. This ensures that the information on matching 
funds is reported to NIFA.
Section 3419.8 Redistribution of Funds
    This revision removes the first sentence of the existing provision 
as the timing of reapportionment may vary. Removing this sentence does 
not change the statutory requirements for reapportionment. The only 
significance of the deletion is to remove the July 1 date for action.
    Additionally, one other technical correction changes ``shall'' to 
``must,'' consistent with the plain English provisions relating to 
rulemaking.

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying the costs and 
benefits of simplifying and harmonizing rules, and of promoting 
flexibility. This rule has been determined to be not significant for 
purposes of Executive Order 12866.

Executive Order 13771

    This final rule is not expected to be an E.O. 13771 regulatory 
action because this rule is not significant under E.O. 12866.

Regulatory Flexibility Act

    This final rule has been reviewed in accordance with the Regulatory 
Flexibility Act of 1980, as amended by the Small Business Regulatory 
Enforcement Fairness Act of 1996, (5 U.S.C. 601-612). The Director of 
the NIFA certifies that this regulation will not have a significant 
economic impact on a substantial number of small entities. This 
regulation will affect institutions of higher education receiving 
Federal funds under this program. The U.S. Small Business 
Administration Size Standards define institutions as ``small entities'' 
if they are for-profit or nonprofit institutions with total annual 
revenue below $5,000,000 or if they are institutions controlled by 
governmental entities with populations below 50,000. The rule does not 
involve regulatory and informational requirements regarding businesses, 
organizations, and governmental jurisdictions subject to regulation.

Catalogue of Federal Domestic Assistance

    The programs affected by this final rule are listed in the 
Catalogue of Federal Domestic Assistance under 10.500, Cooperative 
Extension Service; 10.511, Smith-Lever Funding; 10.512, Agriculture 
Extension at 1890 Land-grant Institutions, and 10.205, Payments to 1890 
Land-Grant Colleges and Tuskegee University Evans-Allen Research and/or 
Agricultural Research at 1890 Land-grant institutions, including 
Tuskegee University, West Virginia State University, and Central State 
University; and 10.203, Payments to Agricultural Experiment Stations 
Under the Hatch Act (The Hatch Act of 1887).

Paperwork Reduction Act

    The Department certifies that this final rule has been assessed in 
accordance with the requirements of the Paperwork Reduction Act (PRA), 
44 U.S.C. 3501 et seq. The Department concludes that this rule does not 
impose any new information collection requirements or change the burden 
estimate on existing information collection requirements. In addition 
to the SF-424 form families (i.e., Research

[[Page 21849]]

and Related and Mandatory) and the SF-425 Federal Financial Report 
(FFR) No. 0348-0061, NIFA has three currently approved OMB information 
collections associated with this rulemaking: OMB Information Collection 
No. 0524-0042, NIFA REEport; No. 0524-0041, NIFA Application Review 
Process; and No. 0524-0026, Organizational Information.

Unfunded Mandates Reform Act of 1995 and Executive Order 13132

    The Department has reviewed this final rule in accordance with the 
requirements of Executive Order No. 13132 and the Unfunded Mandates 
Reform Act of 1995, 2 U.S.C. 1501 et seq., and has found no potential 
or substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government. 
As there is no Federal mandate contained herein that could result in 
increased expenditures by State, local, or tribal governments, or by 
the private sector, the Department has not prepared a budgetary impact 
statement.

Clarity of This Regulation

    Executive Order 12866 and the President's Memorandum of June 1, 
1998, require each agency to write all rules in plain language. The 
Department invites comments on how to make this rule easier to 
understand.

List of Subjects in 7 CFR Part 3419

    1890 land-grant institutions, Agricultural extension, Agricultural 
research, Grant programs-agriculture, Insular areas, Land-grant 
institutions, Matching funds.

    For the reasons discussed in the preamble, the Department of 
Agriculture, National Institute of Food and Agriculture, amends 7 CFR 
part 3419 as follows:

PART 3419--MATCHING FUNDS REQUIREMENT FOR AGRICULTURAL RESEARCH AND 
EXTENSION CAPACITY FUNDS AT 1890 LAND-GRANT INSTITUTIONS, INCLUDING 
CENTRAL STATE UNIVERSITY, TUSKEGEE UNIVERSITY, AND WEST VIRGINIA 
STATE UNIVERSITY AND AT 1862 LAND-GRANT INSTITUTIONS IN INSULAR 
AREAS

0
1. The authority citation for part 3419 is revised to read as follows:

    Authority: 7 U.S.C. 3222d; 7 U.S.C. 343(e); 7 U.S.C. 361c; Pub. 
L. 107-171; Pub. L. 110-234; Pub. L. 113-79.


0
2. Revise the heading of part 3419 to read as set forth above.

0
3. Amend Sec.  3419.1 as follows:
0
a. Add a definition for ``Capacity funds'' in alphabetical order;
0
b. Revise the definition of ``Eligible institution'';
0
c. Remove the definition of ``Formula funds'';
0
d. Revise the definition of ``Matching funds''; and
0
e. Remove the definition of ``Qualifying educational activities''.
    The addition and revision read as follows:


Sec.  3419.1  Definitions.

* * * * *
    Capacity funds means agricultural extension and research funds 
provided by formula to the eligible institutions under sections 1444 
and 1445 of the National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (NARETPA), as amended, or under sections 3(b) and 
(c) of the Smith-Lever Act, 7 U.S.C. 343(b) and (c) or under section 3 
of the Hatch Act of 1887, 7 U.S.C. 361c.
    Eligible institution means a college or university eligible to 
receive funds under the Act of August 30, 1890 (7 U.S.C. 321 et seq.) 
(commonly known as the Second Morrill Act), including Central State 
University, Tuskegee University, and West Virginia State University 
(1890 land-grant institutions), and a college or university designated 
under the Act of July 2, 1862 (7 U.S.C. 301, et seq.) (commonly known 
as the First Morrill Act) and located in the Commonwealth of Puerto 
Rico and the insular areas of American Samoa, Guam, Micronesia, 
Northern Marianas, and the U.S. Virgin Islands (1862 land-grant 
institutions in insular areas).
    Matching funds means funds from non-Federal sources, including 
those made available by the State to the eligible institutions, for 
programs or activities that fall within the purposes of agricultural 
research and cooperative extension under: sections 1444 and 1445 of 
NARETPA; the Hatch Act of 1887; and the Smith-Lever Act.
* * * * *

0
4. Amend Sec.  3419.2 as follows:
0
a. Revise the section heading;
0
b. Remove the introductory text; and
0
c. Revise paragraphs (a) and (b).
    The revisions read as follows:


Sec.  3419.2  Matching funds requirement.

    (a) 1890 land-grant institutions. The distribution of capacity 
funds are subject to a matching requirement. Matching funds will equal 
not less than 100% of the capacity funds to be distributed to the 
institution.
    (b) 1862 land-grant institutions in insular areas. The distribution 
of capacity funds are subject to a matching requirement. Matching funds 
will equal not less than 50% of the capacity funds to be distributed to 
the institution.
* * * * *


Sec.  3419.3  [Removed]

0
5. Remove Sec.  3419.3.

0
6. Redesignate Sec.  3419.4 as Sec.  3419.3 and revise newly designated 
Sec.  3419.3 to read as follows:


Sec.  3419.3  Limited waiver authority.

    (a) 1890 land-grant institutions: The Secretary may waive the 
matching funds requirement in Sec.  3419.2 above the 50% level for any 
fiscal year for an eligible institution of a State if the Secretary 
determines that the State will be unlikely to satisfy the matching 
requirement.
    (b) 1862 land-grant institutions in insular areas: The Secretary 
may waive up to 100% of the matching funds requirements in Sec.  3419.2 
for any fiscal year for an eligible institution in an insular area.
    (c) The criteria to waive the applicable matching requirement for 
1890 land-grant institutions and 1862 land-grant institutions in 
insular areas is demonstration of one or more of the following:
    (1) Impacts from natural disaster, flood, fire, tornado, hurricane, 
or drought;
    (2) State and/or institution facing a financial crisis; or
    (3) Lack of matching funds after demonstration of good faith 
efforts to obtain funds.
    (d) Approval or disapproval of the request for a waiver will be 
based on the application submitted, as defined under Sec.  3419.4.

0
7. Add a new Sec.  3419.4 to read as follows:


Sec.  3419.4  Applications for waivers for both 1890 land-grant 
institutions and 1862 land-grant institutions in insular areas.

    Application for waivers for both 1890 land-grant institutions and 
1862 land-grant institutions in insular areas. The president of the 
eligible institution must submit any request for a waiver for matching 
requirements. A waiver application must include the name of the 
eligible institution, the type of Federal capacity funds (i.e. 
research, extension, Hatch, etc.), appropriate fiscal year, the basis 
for the request (e.g. one or more of the criteria identified in Sec.  
3419.3); current supporting documentation, where current is

[[Page 21850]]

defined as within the past two years from the date of the letter 
requesting the waiver; and the amount of the request.


Sec.  3419.5  [Amended]

0
8. Amend Sec.  3419.5 by removing the word ``formula'' and adding, in 
its place, the word ``capacity''.

0
9. Revise Sec.  3419.6 to read as follows:


Sec.  3419.6  Use of matching funds.

    The required matching funds for the capacity programs must be used 
by an eligible institution for the same purpose as Federal award 
dollars: Agricultural research and extension activities that have been 
approved in the plan of work required under sections 1445(c) and 
1444(d) of the National Agricultural Research, Extension, and Teaching 
Policy Act of 1977, section 7 of the Hatch Act of 1887, and section 4 
of the Smith-Lever Act. For all programs, tuition dollars and student 
fees may not be used as matching funds.

0
10. Redesignate Sec.  3419.7 as Sec.  3419.8 and revise newly 
redesignated Sec.  3419.8 to read as follows:


Sec.  3419.8  Redistribution of funds.

    Unmatched research and extension funds will be reapportioned in 
accordance with the research and extension statutory distribution 
formulas applicable to the 1890 and 1862 land-grant institutions in 
insular areas, respectively. Any redistribution of funds must be 
subject to the same matching requirement under Sec.  3419.2.

0
11. Add a new Sec.  3419.7 to read as follows:


Sec.  3419.7  Reporting of matching funds.

    Institutions will report all capacity matching funds expended 
annually using Standard Form (SF) 425, in accordance with 7 CFR 
3430.56(a).

    Done at Washington, DC, this 7th day of May 2018.
Meryl Broussard,
Associate Director for Programs, National Institute of Food and 
Agriculture.
[FR Doc. 2018-10015 Filed 5-10-18; 8:45 am]
 BILLING CODE 3410-22-P



                                              21846                 Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and Regulations

                                              chapter, adjusted by § 1006.51(b), at the               DEPARTMENT OF AGRICULTURE                             Farm Security and Rural Investment Act
                                              location of the plant where the milk                                                                          of 2002 (FSRIA); section 7127 of the
                                              would have normally been received and                   National Institute of Food and                        Food, Conservation, and Energy Act of
                                              the value specified in § 1000.52, as                    Agriculture                                           2008; and section 7129 of the
                                              adjusted by § 1005.51(b) and                                                                                  Agricultural Act of 2014. Additionally,
                                              § 1007.51(b) of this chapter, at the                    7 CFR Part 3419                                       NIFA makes these changes to the
                                              location of the plant to which the milk                 RIN 0524–AA68                                         Definitions and Use of Matching Funds
                                              was rerouted;                                                                                                 sections to provide clarity on allowable
                                                 (3) The value per hundredweight at                   Matching Funds Requirements for                       uses of matching funds.
                                              the lowest classified price for the month               Agricultural Research and Extension                   Response to Comments on the Proposed
                                              of September 2017 for milk dumped at                    Capacity Funds at 1890 Land-Grant                     Rule and Revisions Included in Final
                                              the farm and classified as other use milk               Institutions, Including Central State                 Rule
                                              pursuant to § 1000.40(e) of this chapter                University, Tuskegee University, and
                                              as a result of Hurricane Irma;                          West Virginia State University, and at                   On November 13, 2017, NIFA
                                                                                                      1862 Land-Grant Institutions in Insular               published in the Federal Register a
                                                 (4) The value per hundredweight at                                                                         Notice of Proposed Rulemaking entitled
                                              the lowest classified price for the month               Areas
                                                                                                                                                            ‘‘Matching Funds Requirements for
                                              of September 2017 for milk dumped                       AGENCY:  National Institute of Food and               Agricultural Research and Extension
                                              from milk tankers after being moved off-                Agriculture, USDA.                                    Capacity Funds at 1890 Land-Grant
                                              farm and classified as other use milk                   ACTION: Final rule.                                   Institutions and 1862 Land-Grant
                                              pursuant to § 1000.40(e) of this chapter                                                                      Institutions in Insular Areas’’ (82 FR
                                              as a result of Hurricane Irma;                          SUMMARY:    This final rule amends                    52250) with the same purpose as above.
                                                 (5) The value per hundredweight at                   National Institute of Food and                        The public had 60 days to comment,
                                              the lowest classified price for the month               Agriculture (NIFA) regulations for the                with the comment period closing
                                              of September 2017 for skim portion of                   purpose of implementing the statutory                 January 12, 2018. NIFA received only
                                              milk dumped and classified as other use                 amendments applicable to the National                 one comment in response to the Notice
                                              milk pursuant to § 1000.40(e) of this                   Institute of Food and Agriculture’s                   of Proposed Rulemaking and this
                                              chapter as a result of Hurricane Irma;                  (NIFA) matching requirements for                      comment addressed issues that are
                                              and                                                     Federal agricultural research and                     outside the scope of this rule. The
                                                 (6) The difference between the                       extension capacity (formula) funds for                commenter discussed the inhumane
                                              announced class price applicable to the                 1890 land-grant institutions (LGUs),                  treatment of farm animals in general.
                                              milk as classified by the market                        including Central State University,                   Because this comment is outside the
                                              administrator for the month of                          Tuskegee University, and West Virginia                scope of this rule, no change will be
                                              September 2017 and the actual price                     State University, and 1862 land-grant                 made to the language of the revision
                                              received for milk delivered to nonpool                  institutions in insular areas, and to                 based on this comment.
                                              plants outside the state of Florida as a                remove the term ‘‘qualifying educational
                                                                                                      activities.’’ These matching                          Summary of Changes in Final Rule
                                              result of Hurricane Irma.
                                                                                                      requirements were amended by the                      Section 3419.1    Definitions
                                                 (h) The total amount of payment to all               Farm Security and Rural Investment
                                              handlers under paragraph (g) of this                                                                             The definition of an eligible
                                                                                                      Act; the Food, Conservation, and Energy
                                              section shall be limited for each month                                                                       institution is updated to include West
                                                                                                      Act of 2008; and the Agricultural Act of
                                              to an amount determined by                                                                                    Virginia State University (formerly West
                                                                                                      2014.
                                              multiplying the total Class I producer                                                                        Virginia State College) and Central State
                                                                                                      DATES: This final rule is effective May               University. Section 753 of the
                                              milk for all handlers pursuant to
                                              § 1000.44(c) of this chapter times $0.09                11, 2018.                                             Agricultural, Rural Development, Food
                                              per hundredweight.                                      FOR FURTHER INFORMATION CONTACT:                      and Drug Administration, and Related
                                                                                                      Maggie Ewell, Senior Policy Advisor,                  Agencies Appropriations Act, 2002
                                                 (i) If the cost of payments computed
                                                                                                      202–401–0222.                                         (Pub. L. 107–76) restored 1890 land-
                                              pursuant to paragraphs (g)(1) through
                                              (g)(6) of this section exceeds the amount               SUPPLEMENTARY INFORMATION:                            grant institution status to West Virginia
                                              computed pursuant to paragraph (h) of                                                                         State College. In 2004, the West Virginia
                                                                                                      I. Background and Purpose                             Legislature approved West Virginia
                                              this section, the market administrator
                                              shall prorate such payments to each                        The National Institute of Food and                 State College’s transition to University
                                              handler based on each handler’s                         Agriculture (NIFA) amends part 3419 of                status. Central State University was
                                              proportion of transportation and other                  Title 7, subtitle B, chapter XXXIV of the             recognized as an 1890 land-grant
                                              use milk costs submitted pursuant to                    Code of Federal Regulations which                     institution under section 7129 of the
                                              paragraphs (g)(1) through (g)(6). Costs                 implements the matching requirements                  Agricultural Act of 2014.
                                              submitted pursuant to paragraphs (g)(1)                 provided under section 1449 of the                       In 2014, NIFA re-branded its formula
                                              through (g)(6) which are not paid as a                  National Agricultural Research,                       grant programs as ‘‘capacity grants.’’
                                              result of such a proration shall be paid                Extension, and Teaching Policy Act of                 Therefore, the definition of formula
                                              in subsequent months until all costs                    1977 (NARETPA) for agricultural                       funds is changed to reflect this
                                              incurred and documented through (g)(1)                  research and extension capacity                       terminology, capacity funds, and the
                                              through (g)(6) have been paid.                          (formula) funds authorized for the 1890               words ‘‘by formula’’ are inserted to
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                                                                                                      land-grant institutions, including                    clarify that capacity funds are provided
                                                Dated: May 8, 2018.                                   Central State University, Tuskegee                    by formula to eligible institutions.
                                              Bruce Summers,                                          University, and West Virginia State                      The term and definition for qualifying
                                              Acting Administrator, Agricultural Marketing            University and 1862 land-grant                        educational activities is removed due to
                                              Service.                                                institutions in insular areas. This                   the fact that this term has caused
                                              [FR Doc. 2018–10085 Filed 5–10–18; 8:45 am]             revision is required due to the statutory             confusion regarding what constitutes an
                                              BILLING CODE 3410–02–P                                  amendments of sections 7212 of the                    allowable qualifying educational


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                                                                    Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and Regulations                                          21847

                                              activity. NIFA follows the authorized                   which state that the State will provide               rationale for NIFA to waive the
                                              uses of funds in NARETPA, codified at                   equal matching funds from non-Federal                 statutorily required match for capacity
                                              7 U.S.C. 3221 and 3222, for extension                   sources.                                              programs.
                                              and research programs. Research funds
                                                                                                      Section 3419.3 Limited Waiver                         Section 3419.5 Certification of
                                              are for conducting agricultural research,
                                                                                                      Authority                                             Matching Funds
                                              printing, disseminating the results of
                                              research, administration, planning and                    The section entitled, ‘‘Determination                  The only change in this section is
                                              direction, purchase and rental of land,                 of non-Federal sources of funds,’’                    changing the word ‘‘formula’’ to
                                              and the construction, acquisition,                      § 3419.3, is removed, because it                      ‘‘capacity,’’ consistent with the current
                                              alteration, or repair of buildings                      reiterated a statutory requirement to                 terminology used by NIFA.
                                              necessary for conducting agricultural                   submit, in the year 1999, a report on
                                                                                                                                                            Section 3419.6 Use of Matching Funds
                                              research. Extension funds are for the                   non-Federal funds used as match to be
                                              expenses of conducting extension                        submitted. There is no further statutory                 NIFA includes minor technical
                                              programs and activities. 7 U.S.C. 3221(e)               requirement or authority to submit                    changes to this section: Use of the term
                                              expressly prohibits extension funds                     reports on the sources of non-Federal                 ‘‘capacity’’ in place of ‘‘formula’’ and
                                              from being spent on college course                      funds. Section 3419.4 Limited Waiver                  ‘‘must’’ in place of ‘‘shall.’’ These
                                              teaching or lectures in college.                        Authority is re-designated as § 3419.3                technical changes have no impact on the
                                                 NARETPA also contains definitions                    and modified to include the provisions                requirements from the existing to the
                                              that explain the difference between                     of 7 U.S.C 3222d(d): authorization of a               proposed regulation. Additionally,
                                              education in conjunction with extension                 50% waiver of matching funds authority                NIFA adds clarifying language that
                                              programs and education and teaching.                    for 1890 land-grant institutions.                     matching funds must be used for the
                                              Extension education is defined as                       Additionally, § 3419.3 includes the                   same purpose as Federal dollars as well
                                              ‘‘informal’’ while teaching and                         authority to waive up to 100% of the                  as a specific prohibition on the use of
                                              education is defined as ‘‘formal                        required match for 1862 land-grant                    tuition dollars and student fees as
                                              classroom instruction,’’ which is                       institutions in insular areas that is                 match.
                                              expressly prohibited under 7 U.S.C.                     present in 7 U.S.C. 343(e)(4)(B).                        The intent of the rule is to clarify two
                                              3221(e).                                                  NIFA also adds to this section a                    requirements. First, the amended rule
                                                 Because the authorized uses related to               description of the criteria a land-grant              clarifies that matching funds must be
                                              education expenses are clearly outlined                 institution must demonstrate in order to              used by an eligible institution for the
                                              in NARETPA and in 7 U.S.C. 3221 and                     be eligible for a waiver. The three                   same purpose as Federal award dollars:
                                              3222, NIFA does not see the value in                    criteria are: Impacts from natural                    Agricultural research and extension
                                              including the term ’’qualifying                         disaster, flood, fire, tornado, hurricane,            activities that have been approved in the
                                              educational activity’’ as a term in                     or drought; State and/or Institution                  plan of work. Second, the amended rule
                                              regulation and, further, wants to ensure                facing a financial crisis; or lack of                 removes the end phrase: ‘‘or for
                                              there is no conflict between its                        matching funds after demonstrating a                  approved qualifying educational
                                              regulatory authorizations and the law.                  good faith effort to obtain funds.                    activities.’’ As discussed in § 3419.1
                                              Therefore, NIFA removes the term                                                                              Definitions, the use of the phrase
                                                                                                      Section 3419.4 Application for
                                              ‘‘qualifying educational activity’’ and                                                                       ‘‘qualifying educational activities’’ has
                                                                                                      Waivers for Both 1890 Land-Grant
                                              will allow only informal educational                                                                          caused confusion regarding what
                                                                                                      Institutions and 1862 Land-Grant
                                              activities, as authorized by statute.                                                                         constitutes an allowable qualifying
                                                                                                      Institutions in Insular Areas
                                                                                                                                                            educational activity. NIFA supports the
                                              Section 3419.2 Matching Funds                             NIFA adds § 3419.4 to outline how                   position, as required under 2 CFR
                                              Requirements                                            1890 land-grant institutions and 1862                 200.306, that all matching funds must
                                                Revisions to this section are required                land-grant institutions in insular areas              be necessary and reasonable for
                                              due to statutory amendments of sections                 may request a matching waiver. To                     accomplishment of project or program
                                              7212 of FSRIA; section 7127 of the                      request a waiver, the president of the                objectives. In other words, to be
                                              Food, Conservation, and Energy Act of                   institution must submit in writing a                  allowable as a match, the costs must be
                                              2008; and section 7129 of the                           request for a waiver of the matching                  allowable under the Federal award. This
                                              Agricultural Act of 2014. The                           requirements. The request must include                principle applies to matching funds
                                              information regarding Fiscal Years 2000,                the name of the eligible institution, the             1890 land-grant institutions receive for
                                              2001, and 2002 are removed as they are                  type of capacity funds, which would                   Research and Extension programs, as
                                              outdated and no longer applicable.                      include Section 1444 Extension, Section               well as the funds received by 1862 land-
                                              NIFA replaces this text with the                        1445 Research; Smith-Lever; or Hatch                  grant institutions in insular areas for
                                              matching requirements for 1862 land-                    Act; the fiscal year of the match; and the            Smith-Lever and Hatch programs.
                                              grant institutions in insular areas for the             basis of the request, i.e., one or more of               NIFA follows the authorized uses of
                                              Smith-Lever 3(b) and (c) program (7                     the criteria identified in 3419.3.                    funds in the authorizing statutes for
                                              U.S.C. 343(e)(4)(A)) and the Hatch Act                  Requests for waivers may be submitted                 determining what is allowable under the
                                              program (7 U.S.C. 361c(d)(4)(A)), which                 with the application for funds or at any              Federal award. For 1862 land-grant
                                              state that insular areas will provide                   time during the period of performance                 institutions in insular areas, this is the
                                              matching funds from non-Federal                         of the award. Additionally, NIFA                      authorized uses under 7 U.S.C. 343 for
                                              sources in an amount equal to not less                  includes a requirement for current                    Smith-Lever programs and 7 U.S.C. 361a
                                              than 50 percent of the formula funds                    supporting documentation, where                       for Hatch Act programs.
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                                              distributed by NIFA to each of the 1862                 current is defined as within the past two                For 1890 Extension and Research
                                              land-grant institutions in insular areas,               years from the date of the letter                     programs, NIFA follows the
                                              respectively. NIFA replaces existing text               requesting the waiver. It is critical that            authorizations included in NARETPA,
                                              with the matching requirement to the                    NIFA base its decisions for matching                  codified at 7 U.S.C. 3221 and 3222.
                                              Evans Allen/Section 1445 fund program                   waivers on the current state of affairs               Research funds are for conducting
                                              (7 U.S.C. 3222d) and Extension/Section                  within the State and institution. Using               agricultural research; printing;
                                              1444 fund programs (7 U.S.C. 3221)                      older data does not provide adequate                  disseminating the results of research,


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                                              21848                 Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and Regulations

                                              administration, planning and direction;                   Because the authorizing statutes so                 of promoting flexibility. This rule has
                                              purchase and rental of land; and the                    clearly identify authorized uses and                  been determined to be not significant for
                                              construction, acquisition, alteration, or               prohibitions, NIFA believes that no                   purposes of Executive Order 12866.
                                              repair of buildings necessary for                       further explanation or inclusion of
                                                                                                                                                            Executive Order 13771
                                              conducting agricultural research.                       qualifying educational activities is
                                              Extension funds are for the expenses of                 needed in this regulation.                              This final rule is not expected to be
                                              conduction extension programs and                         Finally, Section 1473 of NARETPA, 7                 an E.O. 13771 regulatory action because
                                              activities. 7 U.S.C. 3221(e) expressly                  U.S.C. 3319, prohibits grantee                        this rule is not significant under E.O.
                                              prohibits extension funds from being                    institutions from using capacity funds                12866.
                                              spent on college course teaching or                     for tuition remission. Therefore, NIFA                Regulatory Flexibility Act
                                              lectures in college.                                    revises this section to clarify that this
                                                 NARETPA also contains definitions                    prohibition also applies to student fees,               This final rule has been reviewed in
                                              that explain the difference between                     as they are related to tuition. Further 7             accordance with the Regulatory
                                              education in conjunction with extension                 U.S.C. 3221 and 3222 do not include                   Flexibility Act of 1980, as amended by
                                              programs versus education and                           tuition or student fees as authorized                 the Small Business Regulatory
                                              teaching. Extension education is defined                uses of funds. As provided in 7 U.S.C.                Enforcement Fairness Act of 1996, (5
                                              as ‘‘informal’’ while teaching and                      3221(e) and 3222(d), no portion of the                U.S.C. 601–612). The Director of the
                                              education is defined as ‘‘formal                        funds provided to an 1890 institution                 NIFA certifies that this regulation will
                                              classroom instruction,’’ which is                       for extension and research shall be                   not have a significant economic impact
                                              expressly prohibited under 7 U.S.C.                     applied, directly or indirectly, to any               on a substantial number of small
                                              3221(e).                                                purpose other than those specified in                 entities. This regulation will affect
                                                 Because the authorized uses related to               the authorizing statutes. Therefore,                  institutions of higher education
                                              education expenses are clearly outlined                 NIFA clarifies that tuition dollars and               receiving Federal funds under this
                                              in NARETPA and 7 U.S.C. 3221 and                        student fees are not to be used as                    program. The U.S. Small Business
                                              3222, NIFA does not see value in                        matching funds.                                       Administration Size Standards define
                                              including the term ‘‘qualifying                                                                               institutions as ‘‘small entities’’ if they
                                              educational activity’’ as a term in                     Section 3419.7 Reporting of Matching                  are for-profit or nonprofit institutions
                                              regulation and further, wants to ensure                 Funds                                                 with total annual revenue below
                                              there is no conflict between its                          This revision adds a section on                     $5,000,000 or if they are institutions
                                              regulatory authorizations and the law.                  reporting of matching funds to clarify an             controlled by governmental entities
                                              Therefore, NIFA removes the term                        existing requirement that 1890 land-                  with populations below 50,000. The
                                              ‘‘qualifying educational activity;’’                    grant institutions and 1862 land-grant                rule does not involve regulatory and
                                              however, the removal is intended to                     institutions in insular areas report all              informational requirements regarding
                                              prohibit expenditures related to formal                 capacity funds expended on an annual                  businesses, organizations, and
                                              education activities. NIFA will allow                   basis using Standard Form (SF) 425, in                governmental jurisdictions subject to
                                              only informal education activities, as                  accordance with 7 CFR part 3430. This                 regulation.
                                              authorized by statute.                                  ensures that the information on
                                                 Under 7 U.S.C. 3221(a)(3), funds                                                                           Catalogue of Federal Domestic
                                                                                                      matching funds is reported to NIFA.                   Assistance
                                              appropriated for extension must be used
                                              for the expenses of conducting                          Section 3419.8 Redistribution of                         The programs affected by this final
                                              extension programs and activities, and                  Funds                                                 rule are listed in the Catalogue of
                                              for contributing to the retirement of                     This revision removes the first                     Federal Domestic Assistance under
                                              employees subject to the provisions of 7                sentence of the existing provision as the             10.500, Cooperative Extension Service;
                                              U.S.C. 331. 7 U.S.C. 3222(e) expressly                  timing of reapportionment may vary.                   10.511, Smith-Lever Funding; 10.512,
                                              prohibits extension funds from being                    Removing this sentence does not change                Agriculture Extension at 1890 Land-
                                              spent on college course teaching and                    the statutory requirements for                        grant Institutions, and 10.205, Payments
                                              lectures in college. Section 1404(7) of                 reapportionment. The only significance                to 1890 Land-Grant Colleges and
                                              NARETPA defines the term extension to                   of the deletion is to remove the July 1               Tuskegee University Evans-Allen
                                              mean informal education programs                        date for action.                                      Research and/or Agricultural Research
                                              conducted in the States in cooperation                    Additionally, one other technical                   at 1890 Land-grant institutions,
                                              with the Department of Education.                       correction changes ‘‘shall’’ to ‘‘must,’’             including Tuskegee University, West
                                              Therefore, NIFA has determined that the                 consistent with the plain English                     Virginia State University, and Central
                                              current authorizations allow for                        provisions relating to rulemaking.                    State University; and 10.203, Payments
                                              informal education programs to be                                                                             to Agricultural Experiment Stations
                                              conducted with extension funding, but                   Executive Order 12866 and Executive
                                                                                                                                                            Under the Hatch Act (The Hatch Act of
                                              not for formal classroom instruction.                   Order 13563
                                                                                                                                                            1887).
                                                 7 U.S.C. 3222(a)(3) states that:                        Executive Orders 12866 and 13563
                                              ‘‘research funding must be used for the                 direct agencies to assess all costs and               Paperwork Reduction Act
                                              expenses of conducting agricultural                     benefits of available regulatory                         The Department certifies that this
                                              research, printing, disseminating the                   alternatives and, if regulation is                    final rule has been assessed in
                                              results of such research, contributing to               necessary, to select regulatory                       accordance with the requirements of the
                                              the retirement of employees subject to                  approaches that maximize net benefits                 Paperwork Reduction Act (PRA), 44
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                                              the provisions of 7 U.S.C. 331 of this                  (including potential economic,                        U.S.C. 3501 et seq. The Department
                                              title, administrative planning and                      environmental, public health and safety               concludes that this rule does not impose
                                              direction, and purchase and rental of                   effects, distributive impacts, and                    any new information collection
                                              land and the construction, acquisition,                 equity). Executive Order 13563                        requirements or change the burden
                                              alteration, or repair of buildings                      emphasizes the importance of                          estimate on existing information
                                              necessary for conducting agricultural                   quantifying the costs and benefits of                 collection requirements. In addition to
                                              research.’’                                             simplifying and harmonizing rules, and                the SF–424 form families (i.e., Research


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                                                                    Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and Regulations                                              21849

                                              and Related and Mandatory) and the                      ■ 2. Revise the heading of part 3419 to               100% of the capacity funds to be
                                              SF–425 Federal Financial Report (FFR)                   read as set forth above.                              distributed to the institution.
                                              No. 0348–0061, NIFA has three                           ■ 3. Amend § 3419.1 as follows:                         (b) 1862 land-grant institutions in
                                              currently approved OMB information                      ■ a. Add a definition for ‘‘Capacity                  insular areas. The distribution of
                                              collections associated with this                        funds’’ in alphabetical order;                        capacity funds are subject to a matching
                                              rulemaking: OMB Information                             ■ b. Revise the definition of ‘‘Eligible              requirement. Matching funds will equal
                                              Collection No. 0524–0042, NIFA                          institution’’;                                        not less than 50% of the capacity funds
                                              REEport; No. 0524–0041, NIFA                            ■ c. Remove the definition of ‘‘Formula               to be distributed to the institution.
                                              Application Review Process; and No.                     funds’’;                                              *     *     *    *      *
                                              0524–0026, Organizational Information.                  ■ d. Revise the definition of ‘‘Matching
                                                                                                                                                            § 3419.3   [Removed]
                                              Unfunded Mandates Reform Act of 1995                    funds’’; and
                                              and Executive Order 13132                               ■ e. Remove the definition of                         ■ 5. Remove § 3419.3.
                                                                                                      ‘‘Qualifying educational activities’’.                ■ 6. Redesignate § 3419.4 as § 3419.3
                                                 The Department has reviewed this                        The addition and revision read as                  and revise newly designated § 3419.3 to
                                              final rule in accordance with the                       follows:                                              read as follows:
                                              requirements of Executive Order No.
                                              13132 and the Unfunded Mandates                         § 3419.1   Definitions.                               § 3419.3   Limited waiver authority.
                                              Reform Act of 1995, 2 U.S.C. 1501 et                    *      *     *     *     *                               (a) 1890 land-grant institutions: The
                                              seq., and has found no potential or                        Capacity funds means agricultural                  Secretary may waive the matching funds
                                              substantial direct effects on the States,               extension and research funds provided                 requirement in § 3419.2 above the 50%
                                              on the relationship between the national                by formula to the eligible institutions               level for any fiscal year for an eligible
                                              government and the States, or on the                    under sections 1444 and 1445 of the                   institution of a State if the Secretary
                                              distribution of power and                               National Agricultural Research,                       determines that the State will be
                                              responsibilities among the various                      Extension, and Teaching Policy Act of                 unlikely to satisfy the matching
                                              levels of government. As there is no                    1977 (NARETPA), as amended, or under                  requirement.
                                              Federal mandate contained herein that                   sections 3(b) and (c) of the Smith-Lever                 (b) 1862 land-grant institutions in
                                              could result in increased expenditures                  Act, 7 U.S.C. 343(b) and (c) or under                 insular areas: The Secretary may waive
                                              by State, local, or tribal governments, or              section 3 of the Hatch Act of 1887, 7                 up to 100% of the matching funds
                                              by the private sector, the Department                   U.S.C. 361c.                                          requirements in § 3419.2 for any fiscal
                                              has not prepared a budgetary impact                        Eligible institution means a college or            year for an eligible institution in an
                                              statement.                                              university eligible to receive funds                  insular area.
                                                                                                      under the Act of August 30, 1890 (7                      (c) The criteria to waive the
                                              Clarity of This Regulation                                                                                    applicable matching requirement for
                                                                                                      U.S.C. 321 et seq.) (commonly known as
                                                Executive Order 12866 and the                         the Second Morrill Act), including                    1890 land-grant institutions and 1862
                                              President’s Memorandum of June 1,                       Central State University, Tuskegee                    land-grant institutions in insular areas is
                                              1998, require each agency to write all                  University, and West Virginia State                   demonstration of one or more of the
                                              rules in plain language. The Department                 University (1890 land-grant                           following:
                                              invites comments on how to make this                    institutions), and a college or university               (1) Impacts from natural disaster,
                                              rule easier to understand.                              designated under the Act of July 2, 1862              flood, fire, tornado, hurricane, or
                                                                                                      (7 U.S.C. 301, et seq.) (commonly                     drought;
                                              List of Subjects in 7 CFR Part 3419                                                                              (2) State and/or institution facing a
                                                                                                      known as the First Morrill Act) and
                                                1890 land-grant institutions,                         located in the Commonwealth of Puerto                 financial crisis; or
                                                                                                      Rico and the insular areas of American                   (3) Lack of matching funds after
                                              Agricultural extension, Agricultural
                                                                                                      Samoa, Guam, Micronesia, Northern                     demonstration of good faith efforts to
                                              research, Grant programs-agriculture,
                                                                                                      Marianas, and the U.S. Virgin Islands                 obtain funds.
                                              Insular areas, Land-grant institutions,
                                                                                                                                                               (d) Approval or disapproval of the
                                              Matching funds.                                         (1862 land-grant institutions in insular
                                                                                                                                                            request for a waiver will be based on the
                                                For the reasons discussed in the                      areas).
                                                                                                                                                            application submitted, as defined under
                                              preamble, the Department of                                Matching funds means funds from
                                                                                                                                                            § 3419.4.
                                              Agriculture, National Institute of Food                 non-Federal sources, including those
                                                                                                      made available by the State to the                    ■ 7. Add a new § 3419.4 to read as
                                              and Agriculture, amends 7 CFR part                                                                            follows:
                                              3419 as follows:                                        eligible institutions, for programs or
                                                                                                      activities that fall within the purposes of           § 3419.4 Applications for waivers for both
                                              PART 3419—MATCHING FUNDS                                agricultural research and cooperative                 1890 land-grant institutions and 1862 land-
                                              REQUIREMENT FOR AGRICULTURAL                            extension under: sections 1444 and                    grant institutions in insular areas.
                                              RESEARCH AND EXTENSION                                  1445 of NARETPA; the Hatch Act of                        Application for waivers for both 1890
                                              CAPACITY FUNDS AT 1890 LAND-                            1887; and the Smith-Lever Act.                        land-grant institutions and 1862 land-
                                              GRANT INSTITUTIONS, INCLUDING                           *      *     *     *     *                            grant institutions in insular areas. The
                                              CENTRAL STATE UNIVERSITY,                               ■ 4. Amend § 3419.2 as follows:                       president of the eligible institution must
                                              TUSKEGEE UNIVERSITY, AND WEST                           ■ a. Revise the section heading;                      submit any request for a waiver for
                                              VIRGINIA STATE UNIVERSITY AND AT                        ■ b. Remove the introductory text; and                matching requirements. A waiver
                                              1862 LAND-GRANT INSTITUTIONS IN                         ■ c. Revise paragraphs (a) and (b).                   application must include the name of
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                                              INSULAR AREAS                                              The revisions read as follows:                     the eligible institution, the type of
                                                                                                                                                            Federal capacity funds (i.e. research,
                                              ■  1. The authority citation for part 3419              § 3419.2   Matching funds requirement.                extension, Hatch, etc.), appropriate
                                              is revised to read as follows:                            (a) 1890 land-grant institutions. The               fiscal year, the basis for the request (e.g.
                                                Authority: 7 U.S.C. 3222d; 7 U.S.C. 343(e);           distribution of capacity funds are                    one or more of the criteria identified in
                                              7 U.S.C. 361c; Pub. L. 107–171; Pub. L. 110–            subject to a matching requirement.                    § 3419.3); current supporting
                                              234; Pub. L. 113–79.                                    Matching funds will equal not less than               documentation, where current is


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                                              21850                 Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and Regulations

                                              defined as within the past two years                    ACTION: Notification of availability;                 based on received comments. The FAA
                                              from the date of the letter requesting the              request for comments.                                 will consider all comments received
                                              waiver; and the amount of the request.                                                                        during the recurring review of the MOC
                                                                                                      SUMMARY:   This document announces the                and consensus standard and will
                                              § 3419.5   [Amended]                                    availability of 63 Means of Compliance                participate in the consensus standard
                                              ■ 8. Amend § 3419.5 by removing the                     (MOC) based on 30 published ASTM                      revision process.
                                              word ‘‘formula’’ and adding, in its                     International (ASTM) consensus
                                              place, the word ‘‘capacity’’.                           standards developed by ASTM                           Background
                                              ■ 9. Revise § 3419.6 to read as follows:                Committee F44 on General Aviation                        Under the provisions of the National
                                                                                                      Aircraft. A total of 46 of these accepted             Technology Transfer and Advancement
                                              § 3419.6   Use of matching funds.                       MOCs consist of ASTM consensus                        Act of 1995 1 and Office of Management
                                                 The required matching funds for the                  standards as published, with the                      and Budget (OMB) Circular A–119,
                                              capacity programs must be used by an                    remaining 17 MOCs comprised of a                      ‘‘Federal Participation in the
                                              eligible institution for the same purpose               combination of ASTM standards and                     Development and Use of Voluntary
                                              as Federal award dollars: Agricultural                  FAA changes. The Administrator finds                  Consensus Standards and in Conformity
                                              research and extension activities that                  these MOCs to be an acceptable means,                 Assessment Activities,’’ effective
                                              have been approved in the plan of work                  but not the only means, of showing                    January 27, 2016, the FAA participates
                                              required under sections 1445(c) and                     compliance to the applicable regulations              in the development of consensus
                                              1444(d) of the National Agricultural                    in part 23, amendment 23–64, for                      standards and uses consensus standards
                                              Research, Extension, and Teaching                       normal category airplanes. The                        as a means of carrying out its policy
                                              Policy Act of 1977, section 7 of the                    Administrator further finds that these                objectives where appropriate.
                                              Hatch Act of 1887, and section 4 of the                 accepted means of complying with part                    Consistent with the Small Airplane
                                              Smith-Lever Act. For all programs,                      23, amendment 23–64, provide at least                 Revitalization Act of 2013,2 the FAA has
                                              tuition dollars and student fees may not                the same level of safety as the                       been working with industry and other
                                              be used as matching funds.                              corresponding requirements in part 23,                stakeholders through ASTM to develop
                                              ■ 10. Redesignate § 3419.7 as § 3419.8                  amendment 23–63.                                      consensus standards for use as a MOC
                                              and revise newly redesignated § 3419.8                  DATES: Comments must be received on                   in certificating small airplanes under
                                              to read as follows:                                     or before July 10, 2018.                              part 23. In promulgating part 23,
                                                                                                      ADDRESSES: Mail comments to: Federal                  amendment 23–64, the FAA explained
                                              § 3419.8   Redistribution of funds.
                                                                                                      Aviation Administration, Policy and                   that if it determined such consensus
                                                Unmatched research and extension                                                                            standards were acceptable MOC to part
                                              funds will be reapportioned in                          Innovation Division, Small Airplane
                                                                                                      Standards Branch, AIR–690, Attention:                 23, it would publish a notice of
                                              accordance with the research and                                                                              availability of those consensus
                                              extension statutory distribution                        Steve Thompson, 901 Locust Street,
                                                                                                      Room 301, Kansas City, Missouri 64106.                standards in the Federal Register.
                                              formulas applicable to the 1890 and                                                                              Pursuant to FAA Advisory Circular
                                              1862 land-grant institutions in insular                 Comments may also be emailed to:
                                                                                                      steven.thompson@faa.gov. Specify the                  23.2010–1, section 3.1.1, this document
                                              areas, respectively. Any redistribution                                                                       serves as a formal acceptance by the
                                              of funds must be subject to the same                    MOC, and if applicable, the standard
                                                                                                      being addressed by designation and                    Administrator, of MOCs based on
                                              matching requirement under § 3419.2.                                                                          consensus standards developed by
                                                                                                      title. Mark all comments: Part 23 MOC
                                              ■ 11. Add a new § 3419.7 to read as                                                                           ASTM. The MOCs accepted by this
                                                                                                      Comments.
                                              follows:                                                                                                      document are one means, but not the
                                                                                                      FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                            only means of complying with part 23
                                              § 3419.7   Reporting of matching funds.                 Steve Thompson, Federal Aviation
                                                                                                                                                            regulatory requirements.
                                                Institutions will report all capacity                 Administration, Policy and Innovation                    The FAA has reviewed the consensus
                                              matching funds expended annually                        Division, Small Airplane Standards                    standards referenced in this NOA as the
                                              using Standard Form (SF) 425, in                        Branch, AIR–690, 901 Locust Street,                   basis for MOCs to the regulatory
                                              accordance with 7 CFR 3430.56(a).                       Room 301, Kansas City, Missouri 64106;                requirements of part 23, amendment 23–
                                                Done at Washington, DC, this 7th day of               telephone (816) 329–4126; facsimile:                  64. In some cases, the Administrator
                                              May 2018.                                               (816) 329–4090; email:                                finds sections of ASTM Standard
                                              Meryl Broussard,                                        steven.thompson@faa.gov.                              F3264–17, ‘‘Standard Specification for
                                              Associate Director for Programs, National               SUPPLEMENTARY INFORMATION:                            Normal Category Aeroplanes
                                              Institute of Food and Agriculture.                      Comments Invited                                      Certification,’’ without changes, are
                                              [FR Doc. 2018–10015 Filed 5–10–18; 8:45 am]                                                                   accepted as means of complying with
                                              BILLING CODE 3410–22–P
                                                                                                        Interested persons are invited to                   the airworthiness requirements of part
                                                                                                      submit written comments, data, or                     23, without degrading safety, and within
                                                                                                      views. Communications should identify                 the scope and applicability of the
                                                                                                      the MOC and consensus standard                        consensus standards. In other cases, the
                                              DEPARTMENT OF TRANSPORTATION
                                                                                                      number, where applicable, and be                      MOCs, while based on ASTM consensus
                                              Federal Aviation Administration                         submitted to the address previously                   standards, include additional FAA
                                                                                                      specified in the ADDRESSES section of                 provisions necessary to comply with the
                                              14 CFR Part 23                                          this NOA. The most helpful comments                   airworthiness requirements of part 23,
                                                                                                      reference a specific portion of the                   amendment 23–64.
sradovich on DSK3GMQ082PROD with RULES




                                              [Notice No. 23–18–01–NOA]                               accepted MOC(s) or standard(s), explain                  Part 23, amendment 23–64,
                                                                                                      the reason for any recommended                        established airworthiness requirements
                                              Accepted Means of Compliance;
                                                                                                      change, and include supporting data.                  based on the level of safety of
                                              Airworthiness Standards: Normal
                                                                                                      The FAA may forward communications
                                              Category Airplanes
                                                                                                      regarding the consensus standards to                    1 Ref Public Law 104–113 as amended by Public
                                              AGENCY:Federal Aviation                                 ASTM Committee F44 for consideration.                 Law 107–107.
                                              Administration, DOT.                                    The MOC or standard may be revised                      2 Ref Public Law 113–53.




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Document Created: 2018-11-02 09:49:43
Document Modified: 2018-11-02 09:49:43
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis final rule is effective May 11, 2018.
ContactMaggie Ewell, Senior Policy Advisor, 202-401-0222.
FR Citation83 FR 21846 
RIN Number0524-AA68
CFR Associated1890 Land-Grant Institutions; Agricultural Extension; Agricultural Research; Grant Programs-Agriculture; Insular Areas; Land-Grant Institutions and Matching Funds

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