83 FR 28563 - Regulations for the Gulf Coast Restoration Trust Fund
DEPARTMENT OF THE TREASURY Federal Register Volume 83, Issue 119 (June 20, 2018)
Federal Register Volume 83, Issue 119 (June 20, 2018)
| Page Range | 28563-28566 | |
| FR Document | 2018-13227 |
[Federal Register Volume 83, Number 119 (Wednesday, June 20, 2018)] [Proposed Rules] [Pages 28563-28566] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-13227] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY 31 CFR Part 34 RIN 1505-AC55 Regulations for the Gulf Coast Restoration Trust Fund AGENCY: Office of the Fiscal Assistant Secretary, Treasury. ACTION: Notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: The Department of the Treasury (Treasury) proposes to amend its rules to revise the method by which the statutory three percent limitation on administrative costs (referred to throughout this notice of proposed rulemaking (NPRM) as the ``three percent administrative cost cap'') is applied under the Direct Component, Comprehensive Plan Component, and Spill Impact Component under the Resources and Ecosystem Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012 (RESTORE Act or Act). This proposed amendment will help ensure that the Gulf Coast states and localities have the necessary funding to efficiently and effectively oversee and manage projects and programs for ecological and economic restoration of the Gulf Coast Region while ensuring compliance with the statutory three percent administrative cost cap. It does not change the definition of ``administrative costs'' or the indirect cost reimbursement calculation on an individual federal grant using the negotiated indirect cost rate agreement (NICRA) or de minimis rate. DATES: Written comments on this NPRM must be received on or before: July 20, 2018. ADDRESSES: Treasury invites comments on the topic addressed in this NPRM. Comments may be submitted by any of the following methods: Electronic Submission of Comments: Interested persons may submit comments electronically through the Federal eRulemaking Portal at http://www.regulations.gov. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt, and enables Treasury to make them available to the public. Comments submitted electronically through the http://www.regulations.gov website can be viewed by other commenters and interested members of the public. Mail: Send to Department of the Treasury, Attention: Laurie McGilvray, Office of Gulf Coast Restoration, Office of the Fiscal Assistant Secretary, Room 2112; 1500 Pennsylvania Avenue NW, Washington, DC 20220. In general, Treasury will post all comments to http://www.regulations.gov without change, including any business or personal information provided, such as names, addresses, email addresses, or telephone numbers. All comments received, including attachments and other supporting materials, will be part of the public record and subject to public disclosure. You should submit only information that you wish to make publicly available. FOR FURTHER INFORMATION CONTACT: The Office of Gulf Coast Restoration at [email protected], or Laurie McGilvray at 202-622-7340. SUPPLEMENTARY INFORMATION: I. Background The RESTORE Act (33 U.S.C. 1321(t) and note) makes funds available for the ecological and economic restoration of the Gulf Coast Region, and certain programs with respect to the Gulf of Mexico, through a trust fund in the Treasury of the United States known as the Gulf Coast Restoration Trust Fund (trust fund). The trust fund holds 80 percent of the administrative and civil penalties paid under the Federal Water Pollution Control Act after July 6, 2012 in connection with the Deepwater Horizon Oil Spill. Treasury administers two of the five components established by the Act, the Direct Component and Centers of Excellence Research Grants Program. The Act also established an independent Federal entity, the Gulf Coast Ecosystem Restoration Council (Council), to administer two components of the Act, the Comprehensive Plan Component and the Spill Impact Component. The National Oceanic and Atmospheric Administration (NOAA) administers one component, the NOAA RESTORE Act Science Program. This NPRM only affects grants under the Direct Component, Comprehensive Plan Component, and Spill Impact Component of the Act, which are collectively referred to throughout the NPRM as the three ``components.'' On December 14, 2015, Treasury promulgated a final rule on the RESTORE Act, 80 FR 77239, which became effective on February 12, 2016. [[Page 28564]] The final rule contains two relevant limitations on the amount of grant funds that may be used for administrative costs. First, the final rule subjects the grants to government-wide cost principles. Treasury's final rule defines ``administrative costs'' as ``indirect costs for administration'' and provides that such ``[c]osts must comply with administrative requirements and cost principles in applicable federal laws and policies on grants.'' 31 CFR 34.2, 34.200(a)(1). Treasury's final rule excludes ``indirect costs that are identified specifically with, or readily assignable to, facilities'' from its definition of ``administrative costs.'' Indirect cost principles are contained in the Office of Management and Budget's ``Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards'' in 2 CFR part 200, which Treasury has adopted. 2 CFR 1000.10. Indirect costs are defined in 2 CFR 200.56 and are allowable subject to Subpart E of 2 CFR part 200 and Appendix VII. Under Subpart E, a grant recipient's negotiated indirect cost rate agreement (NICRA) with its cognizant agency determines the allowable indirect cost rate for the recipient's grants, taking into account the unique circumstances and cost structure of the recipient. The NICRA, or a de minimis rate if elected, must be used across all of the recipient's federal grants.\1\ 2 CFR 200.414(c)(1). In accordance with the 2 CFR part 200 Uniform Guidance, Appendix VII--State and Local Government and Indian Tribe Indirect Cost Proposals, these allowable indirect costs are computed on each individual Federal award. --------------------------------------------------------------------------- \1\ Subpart E provides that when a recipient has never had a NICRA and receives $35 million or less in direct federal funding, a de minimis rate of 10 percent of modified total direct costs (MTDC) may be used to calculate its allowable indirect costs in lieu of establishing a NICRA. 2 CFR 200.414(f), 2 CFR part 200, Appendix VII(D)(1)(b). --------------------------------------------------------------------------- The second limitation for RESTORE awards on the amount of grant funds that can be used for administrative costs under the three components is a three percent administrative cost cap. The Act provides that ``[o]f the amounts received by a Gulf Coast State . . ., not more than 3 percent may be used for administrative costs . . . .'' 33 U.S.C. 1321(t)(1)(B)(iii)(I). The Act does not specify the method by which this three percent administrative cost cap is to be applied. Treasury's final rule, however, provides that the three percent administrative cost cap is to be applied on a grant-by-grant basis: ``The three percent limit is applied to the total amount of funds received by a recipient under each grant.'' 31 CFR 34.204(a). In other words, under the current regulation, the administrative costs associated with each particular grant may not exceed three percent of the total amount of that grant. Thus, under the current regulation, allowable administrative costs for a particular grant, (i.e., the indirect costs for administration) are limited to three percent of total funds received under that particular grant even in cases where a recipient's NICRA (or its de minimis rate) allows more. For example, if a recipient with a NICRA with a direct labor base were to contract out the labor on a project, the indirect costs under its NICRA may be much lower than three percent of the total amount of the grant. In contrast, if the bulk of the labor is performed in-house, the indirect costs will typically be much greater than three percent of the total amount of the grant. To address this issue, Treasury proposes to provide a recipient the option to apply the three percent administrative cost cap, within each component, on either a grant-by-grant basis or on an aggregate basis. More specifically, this proposed revision provides that the three percent administrative cost cap may be applied by component to a Gulf Coast State, coastal political subdivision, or coastal zone parish's trust fund allocation, i.e., an aggregate of (1) all grants received by it under one component, and (2) the amount in the trust fund for the same component that is allocated to, but not yet received by it. As used in this NPRM, the phrase ``allocated to, but not yet received under that component by a Gulf Coast State, coastal political subdivision, or coastal zone parish'' refers only to funds presently in the trust fund and not to future deposits into the trust fund,\2\ and includes the following amounts with respect to each component: (1) With respect to the Direct Component, amounts made available in equal shares for the Gulf Coast States in accordance with 31 CFR 34.302; (2) with respect to the Comprehensive Plan Component, the estimated aggregate cost of all projects included in all approved Funded Priorities Lists; and (3) with respect to the Spill Impact Component, amounts allocated to the Gulf Coast States in accordance with 31 CFR 34.502 and 40 CFR 1800.500. --------------------------------------------------------------------------- \2\ BP Exploration & Production Inc. began making annual civil penalty payments in April 2017, and is expected to continue to make annual payments through mid-2031 pursuant to a consent decree entered on April 4, 2016 under the Federal Water Pollution Control Act (Clean Water Act), of which 80 percent of the total will be deposited into the trust fund and invested. The annual payments into the trust fund through 2031 are expected to total $4.4 billion. In 2032, BP will make a final payment in the form of penalty interest. --------------------------------------------------------------------------- The Treasury regulations allocate precise sums to specific entities based on criteria in the Act, which allows the flexibility to administer the administrative cost cap on an aggregate basis. Permitting recipients to allocate administrative costs by component from their ``pool'' in the trust fund toward the indirect costs in their grants will enable them to recover the maximum amount of indirect costs allowed under the Act and to more efficiently and effectively oversee and manage projects and programs. Under this methodology, if a recipient's allowable indirect costs for administration for one grant are less than three percent of the total amount of that grant, the difference would be available to cover allowable indirect costs for administration exceeding three percent on other grants. The two methods for applying the three percent administrative cost cap are illustrated by the examples below. Example 1--Grant-by-Grant Method A recipient receives a Direct Component planning assistance grant totaling $216,494. The grant consists of $210,000 for direct costs and, under the three percent cap, $6,494 for indirect costs. Example 2--Aggregate Method As in the first example, a recipient with a NICRA receives a Direct Component planning assistance grant which includes $210,000 for direct costs. Under the aggregate method, its grant may also include $56,000 for indirect costs under its NICRA, for a grant totaling $266,000. The recipient has a total administrative cost pool of $2,600,000, based on three percent of its gross trust fund allocation for the Direct Component. The recipient has received indirect costs for administration totaling $112,000 for two prior grants, leaving a net amount of $2,488,000 available in its administrative cost pool. Therefore, the recipient may use $56,000 for indirect costs in this grant award because the funds are available in the pool. At least annually, Treasury will post publicly the amounts available in the administrative cost ``pool'' by component, simultaneously with its updates to the trust fund allocations. At no time, however, may the total amount of administrative costs of a Gulf Coast State, coastal political subdivision, or coastal zone parish exceed three percent of the aggregate of (1) all grants received by it under one of the three components, and (2) the amount in the trust fund for [[Page 28565]] the same component that is allocated to, but not yet received by such Gulf Coast State, coastal political subdivision, or coastal zone parish. Also, at no time would a recipient be able to recover more in indirect costs under an individual award than it would receive under its NICRA or its de minimis rate. Treasury invites public comments on all aspects of this proposed amendment for 30 days, and anticipates publishing a final rule on this revision soon after the 30 day public comment period. In particular, Treasury solicits comments from eligible entities on the following: (1) Is the aggregate method an attractive option and if so, describe the benefits; (2) How would you manage and track administrative indirect costs under each method; (3) Is there an additional burden associated with managing the administrative indirect cost cap using the aggregate method? II. This Notice of Proposed Rulemaking For the reasons described above, Treasury proposes amending the method by which the statutory three percent administrative cost cap is applied under 31 CFR 34.204(a). Conceptually, the proposed revision allows each recipient to establish a ``pool'' of funds for administrative costs under each component if it so chooses. Within each component, a recipient may budget these funds among its grants, consistent with the definition of administrative costs at 31 CFR 34.2 and Subpart E. Treasury believes that this NPRM will help ensure that recipients have the necessary funding to efficiently and effectively oversee and manage projects and programs while ensuring compliance with the statutory three percent administrative cost cap and a recipient's NICRA or de minimis rate under Subpart E. To clarify that recipients are no longer required to apply the three percent administrative cost cap on a grant-by-grant basis, Treasury proposes deleting ``in a grant'' from the first sentence of Sec. 34.204(a). Treasury proposes replacing the second sentence in existing Sec. 34.204(a), which currently requires the three percent administrative cost cap to be applied on a grant-by-grant basis, with language permitting the three percent administrative cost cap to be applied on either a grant-by-grant basis or on an aggregated basis within each component. For the latter method, this NPRM states that amounts used for administrative costs may not at any time exceed three percent of the aggregate of: (1) The amounts received under a component by a recipient, beginning with the first grant through the most recent grant, and (2) the amounts in the trust fund that are allocated to, but not yet received under such component, by a Gulf Coast State, coastal political subdivision, or coastal zone parish under Sec. 34.103, consistent with the definition of administrative costs in Sec. 34.2. This proposed revision helps ensure that the recipient will not exceed the statutory three percent administrative cost cap before the termination of the trust fund. Please note the NPRM does not amend the definition of administrative costs in Sec. 34.2. Treasury also proposes adding ``recipient and'' before ``subrecipient'' in the last sentence of Sec. 34.204(a) to clarify that Federal grant law and policies apply to recipient costs as well as to subrecipient costs. Treasury will conduct a retrospective analysis of this proposed revision no later than seven years after the date it becomes effective. This review will consider whether the revision ensures that the Gulf Coast states, coastal political subdivisions, and coastal zone parishes have the necessary funding to efficiently and effectively oversee and manage projects and programs for ecological and economic restoration of the Gulf Coast Region while ensuring compliance with the statutory three percent administrative cost cap, and whether it helps them to administer RESTORE grant projects effectively and efficiently. III. Procedural Requirements A. Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally requires agencies to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements under the Administrative Procedures Act or any other statute, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Six of the 20 Louisiana parishes and six of the 23 Florida counties eligible to receive grants under the RESTORE Act have fewer than 50,000 residents. (2010 U.S. Census) and thus qualify as small governmental jurisdictions under the Regulatory Flexibility Act. (5 U.S.C. 601(5)). Treasury anticipates that this proposed revision will have no significant economic impact on these small entities because all recipients have the option to continue applying the three percent administrative cost cap on a grant-by-grant basis. Accordingly, Treasury certifies that the amendment to this regulation will not have a significant impact upon a substantial number of small entities, and no regulatory flexibility analysis is required. B. Regulatory Planning and Review (Executive Orders 12866 and 13563) The amendment to the regulation is a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. C. Catalog of Federal Domestic Assistance The affected program for Treasury is listed in the Catalog of Federal Domestic Assistance Program under 21.015, Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States. The affected programs for the Council are listed under 87.051, and 87.052, for its Comprehensive Plan and Spill Impact Components, respectively. List of Subjects in 31 CFR Part 34 Coastal zone, Fisheries, Grant programs, Grants administration, Intergovernmental relations, Marine resources, Natural resources, Oil pollution, Research, Science and technology, Trusts, Wildlife. For the reasons set forth herein, the Department of the Treasury proposes to amend 31 CFR part 34 to read as follows: PART 34--RESOURCES AND ECOSYSTEMS SUSTAINABILITY, TOURIST OPPORTUNITIES, AND REVIVED ECONOMIES OF THE GULF COAST STATES 0 1. The authority citation continues to read as follows: Authority: 31 U.S.C. 301; 31 U.S.C. 321; 33 U.S.C. 1251 et seq. 0 2. Amend Sec. 34.204 by revising paragraph (a) to read as follows: Sec. 34.204 Limitations on administrative costs and administrative expenses. (a)(1) Of the amounts received by a Gulf Coast State, coastal political subdivision, or coastal zone parish from Treasury under the Direct Component, or from the Council under the Comprehensive Plan Component or Spill Impact Component, not more than three percent may be used for administrative costs. The three percent limit on administrative costs may be applied to the total amount of funds received by a recipient under each of the three Components either on a grant-by-grant basis or on an aggregate basis. For the latter method, amounts used for administrative costs under each of the [[Page 28566]] three Components may not at any time exceed three percent of the aggregate of: (i) The amounts received under a Component by a recipient, beginning with the first grant through the most recent grant; and (ii) The amounts in the Trust Fund that are allocated to, but not yet received under such Component by a Gulf Coast State, coastal political subdivision, or coastal zone parish under Sec. 34.103, consistent with the definition of administrative costs in Sec. 34.2. The three percent limit does not apply to the administrative costs of subrecipients. All recipient and subrecipient costs are subject to the cost principles in Federal laws and policies on grants. (2) Treasury will conduct a retrospective analysis of this provision no later than seven years after the date it becomes effective. This review will consider whether the revision ensures that the Gulf Coast states, coastal political subdivisions, and coastal zone parishes have the necessary funding to efficiently and effectively oversee and manage projects and programs for ecological and economic restoration of the Gulf Coast Region while ensuring compliance with the statutory three percent administrative cost cap, and whether it helps them to administer RESTORE grant projects effectively and efficiently. * * * * * David A. Lebryk, Fiscal Assistant Secretary. [FR Doc. 2018-13227 Filed 6-19-18; 8:45 am] BILLING CODE 4810-25-P
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General information and press Signed at Washington, DC, on June 15, submitted electronically through the
inquiries: Mr. Frank Meilinger, OSHA 2018. http://www.regulations.gov website can
Office of Communications; telephone: Loren Sweatt, be viewed by other commenters and
(202) 693–1999; email: Deputy Assistant Secretary of Labor for interested members of the public.
Meilinger.Francis2@dol.gov. Occupational Safety and Health. Mail: Send to Department of the
Technical inquiries: Mr. Vernon [FR Doc. 2018–13280 Filed 6–15–18; 4:15 pm] Treasury, Attention: Laurie McGilvray,
Preston, Directorate of Construction; BILLING CODE 4510–26–P Office of Gulf Coast Restoration, Office
telephone: (202) 693–2020; fax: (202) of the Fiscal Assistant Secretary, Room
693–1689; email: preston.vernon@ 2112; 1500 Pennsylvania Avenue NW,
dol.gov. DEPARTMENT OF THE TREASURY Washington, DC 20220.
Copies of this Federal Register notice In general, Treasury will post all
and news releases: Electronic copies of 31 CFR Part 34 comments to http://www.regulations.gov
these documents are available at without change, including any business
RIN 1505–AC55
OSHA’s web page at http:// or personal information provided, such
www.osha.gov. Regulations for the Gulf Coast as names, addresses, email addresses, or
SUPPLEMENTARY INFORMATION: Restoration Trust Fund telephone numbers. All comments
received, including attachments and
I. Extension of the Comment Period AGENCY: Office of the Fiscal Assistant other supporting materials, will be part
On May 21, 2018, OSHA published a Secretary, Treasury. of the public record and subject to
NPRM titled ‘‘Cranes and Derricks in ACTION: Notice of proposed rulemaking. public disclosure. You should submit
Construction: Operator Qualification’’ only information that you wish to make
SUMMARY: The Department of the publicly available.
(83 FR 23534). In the NPRM, OSHA
Treasury (Treasury) proposes to amend FOR FURTHER INFORMATION CONTACT: The
proposed to amend 29 CFR part 1926,
its rules to revise the method by which Office of Gulf Coast Restoration at
subpart CC, to revise sections that
the statutory three percent limitation on restoreact@treasury.gov, or Laurie
address crane operator training,
administrative costs (referred to McGilvray at 202–622–7340.
certification/licensing, and competency.
throughout this notice of proposed
The purpose of these amendments are SUPPLEMENTARY INFORMATION:
rulemaking (NPRM) as the ‘‘three
to: require comprehensive training of
percent administrative cost cap’’) is I. Background
operators; remove certification by
applied under the Direct Component, The RESTORE Act (33 U.S.C. 1321(t)
capacity from certification
Comprehensive Plan Component, and and note) makes funds available for the
requirements; clarify and permanently
Spill Impact Component under the ecological and economic restoration of
extend the employer duty to evaluate
Resources and Ecosystem Sustainability, the Gulf Coast Region, and certain
potential operators for their ability to
Tourist Opportunities, and Revived programs with respect to the Gulf of
safely operate equipment covered by
Economies of the Gulf Coast States Act Mexico, through a trust fund in the
subpart CC; and require documentation
of 2012 (RESTORE Act or Act). This Treasury of the United States known as
of that evaluation.
proposed amendment will help ensure the Gulf Coast Restoration Trust Fund
The public comment period for this
that the Gulf Coast states and localities (trust fund). The trust fund holds 80
NPRM was to conclude on June 20,
have the necessary funding to efficiently percent of the administrative and civil
2018, 30 days after publication of the
and effectively oversee and manage penalties paid under the Federal Water
NPRM. However, OSHA received
projects and programs for ecological and Pollution Control Act after July 6, 2012
requests from stakeholders for an
economic restoration of the Gulf Coast in connection with the Deepwater
extension of the public comment period
Region while ensuring compliance with Horizon Oil Spill.
(OSHA–2007–0066–0683 and –0693).
the statutory three percent Treasury administers two of the five
These requests state that, given the
administrative cost cap. It does not components established by the Act, the
complexity and significance of this
change the definition of ‘‘administrative Direct Component and Centers of
NPRM, more time for submitting
costs’’ or the indirect cost Excellence Research Grants Program.
comments was necessary to gather
reimbursement calculation on an The Act also established an
information from members of the
individual federal grant using the independent Federal entity, the Gulf
organizations and develop meaningful
negotiated indirect cost rate agreement Coast Ecosystem Restoration Council
comments.
(NICRA) or de minimis rate. (Council), to administer two
OSHA agrees to an extension and
believes that a 15 day extension of the DATES: Written comments on this NPRM components of the Act, the
public comment period is a sufficient must be received on or before: July 20, Comprehensive Plan Component and
amount of time to address these 2018. the Spill Impact Component. The
concerns in light of the short period of ADDRESSES: Treasury invites comments National Oceanic and Atmospheric
time remaining before the deadline for on the topic addressed in this NPRM. Administration (NOAA) administers
crane operator certification. Therefore, Comments may be submitted by any of one component, the NOAA RESTORE
the public comment period will now the following methods: Act Science Program. This NPRM only
conclude July 5, 2018. Comments can be Electronic Submission of Comments: affects grants under the Direct
submitted by following the procedures Interested persons may submit Component, Comprehensive Plan
sradovich on DSK3GMQ082PROD with PROPOSALS
listed under ADDRESSES section of this comments electronically through the Component, and Spill Impact
notice. Federal eRulemaking Portal at http:// Component of the Act, which are
www.regulations.gov. Electronic collectively referred to throughout the
List of Subjects in 29 CFR Part 1926 submission of comments allows the NPRM as the three ‘‘components.’’
Certification, Construction industry, commenter maximum time to prepare On December 14, 2015, Treasury
Cranes, Derricks, Occupational safety and submit a comment, ensures timely promulgated a final rule on the
and health, Qualification, Safety, receipt, and enables Treasury to make RESTORE Act, 80 FR 77239, which
Training. them available to the public. Comments became effective on February 12, 2016.
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The final rule contains two relevant amount of funds received by a recipient the Spill Impact Component, amounts
limitations on the amount of grant funds under each grant.’’ 31 CFR 34.204(a). In allocated to the Gulf Coast States in
that may be used for administrative other words, under the current accordance with 31 CFR 34.502 and 40
costs. regulation, the administrative costs CFR 1800.500.
First, the final rule subjects the grants associated with each particular grant The Treasury regulations allocate
to government-wide cost principles. may not exceed three percent of the precise sums to specific entities based
Treasury’s final rule defines total amount of that grant. on criteria in the Act, which allows the
‘‘administrative costs’’ as ‘‘indirect costs Thus, under the current regulation, flexibility to administer the
for administration’’ and provides that allowable administrative costs for a administrative cost cap on an aggregate
such ‘‘[c]osts must comply with particular grant, (i.e., the indirect costs basis. Permitting recipients to allocate
administrative requirements and cost for administration) are limited to three administrative costs by component from
principles in applicable federal laws percent of total funds received under their ‘‘pool’’ in the trust fund toward the
and policies on grants.’’ 31 CFR 34.2, that particular grant even in cases where indirect costs in their grants will enable
34.200(a)(1). Treasury’s final rule a recipient’s NICRA (or its de minimis them to recover the maximum amount
excludes ‘‘indirect costs that are rate) allows more. of indirect costs allowed under the Act
identified specifically with, or readily For example, if a recipient with a and to more efficiently and effectively
assignable to, facilities’’ from its NICRA with a direct labor base were to oversee and manage projects and
definition of ‘‘administrative costs.’’ contract out the labor on a project, the programs. Under this methodology, if a
Indirect cost principles are contained indirect costs under its NICRA may be recipient’s allowable indirect costs for
in the Office of Management and much lower than three percent of the administration for one grant are less
Budget’s ‘‘Uniform Administrative total amount of the grant. In contrast, if than three percent of the total amount
Requirements, Cost Principles, and the bulk of the labor is performed in- of that grant, the difference would be
Audit Requirements for Federal house, the indirect costs will typically available to cover allowable indirect
Awards’’ in 2 CFR part 200, which be much greater than three percent of costs for administration exceeding three
Treasury has adopted. 2 CFR 1000.10. the total amount of the grant. percent on other grants.
Indirect costs are defined in 2 CFR To address this issue, Treasury The two methods for applying the
200.56 and are allowable subject to proposes to provide a recipient the three percent administrative cost cap are
Subpart E of 2 CFR part 200 and option to apply the three percent illustrated by the examples below.
Appendix VII. administrative cost cap, within each
Under Subpart E, a grant recipient’s component, on either a grant-by-grant Example 1—Grant-by-Grant Method
negotiated indirect cost rate agreement basis or on an aggregate basis. More A recipient receives a Direct
(NICRA) with its cognizant agency specifically, this proposed revision Component planning assistance grant
determines the allowable indirect cost provides that the three percent totaling $216,494. The grant consists of
rate for the recipient’s grants, taking into administrative cost cap may be applied $210,000 for direct costs and, under the
account the unique circumstances and by component to a Gulf Coast State, three percent cap, $6,494 for indirect
cost structure of the recipient. The coastal political subdivision, or coastal costs.
NICRA, or a de minimis rate if elected, zone parish’s trust fund allocation, i.e.,
Example 2—Aggregate Method
must be used across all of the recipient’s an aggregate of (1) all grants received by
federal grants.1 2 CFR 200.414(c)(1). In it under one component, and (2) the As in the first example, a recipient
accordance with the 2 CFR part 200 amount in the trust fund for the same with a NICRA receives a Direct
Uniform Guidance, Appendix VII—State component that is allocated to, but not Component planning assistance grant
and Local Government and Indian Tribe yet received by it. As used in this which includes $210,000 for direct
Indirect Cost Proposals, these allowable NPRM, the phrase ‘‘allocated to, but not costs. Under the aggregate method, its
indirect costs are computed on each yet received under that component by a grant may also include $56,000 for
individual Federal award. Gulf Coast State, coastal political indirect costs under its NICRA, for a
The second limitation for RESTORE subdivision, or coastal zone parish’’ grant totaling $266,000. The recipient
awards on the amount of grant funds refers only to funds presently in the has a total administrative cost pool of
that can be used for administrative costs trust fund and not to future deposits $2,600,000, based on three percent of its
under the three components is a three into the trust fund,2 and includes the gross trust fund allocation for the Direct
percent administrative cost cap. The Act following amounts with respect to each Component. The recipient has received
provides that ‘‘[o]f the amounts received component: (1) With respect to the indirect costs for administration totaling
by a Gulf Coast State . . ., not more Direct Component, amounts made $112,000 for two prior grants, leaving a
than 3 percent may be used for available in equal shares for the Gulf net amount of $2,488,000 available in its
administrative costs . . . .’’ 33 U.S.C. Coast States in accordance with 31 CFR administrative cost pool. Therefore, the
1321(t)(1)(B)(iii)(I). The Act does not 34.302; (2) with respect to the recipient may use $56,000 for indirect
specify the method by which this three Comprehensive Plan Component, the costs in this grant award because the
percent administrative cost cap is to be estimated aggregate cost of all projects funds are available in the pool.
applied. Treasury’s final rule, however, included in all approved Funded At least annually, Treasury will post
provides that the three percent Priorities Lists; and (3) with respect to publicly the amounts available in the
administrative cost cap is to be applied administrative cost ‘‘pool’’ by
2 BP Exploration & Production Inc. began making component, simultaneously with its
sradovich on DSK3GMQ082PROD with PROPOSALS
on a grant-by-grant basis: ‘‘The three
annual civil penalty payments in April 2017, and updates to the trust fund allocations. At
percent limit is applied to the total is expected to continue to make annual payments
through mid-2031 pursuant to a consent decree
no time, however, may the total amount
1 Subpart E provides that when a recipient has entered on April 4, 2016 under the Federal Water of administrative costs of a Gulf Coast
never had a NICRA and receives $35 million or less Pollution Control Act (Clean Water Act), of which State, coastal political subdivision, or
in direct federal funding, a de minimis rate of 10 80 percent of the total will be deposited into the coastal zone parish exceed three percent
percent of modified total direct costs (MTDC) may trust fund and invested. The annual payments into
be used to calculate its allowable indirect costs in the trust fund through 2031 are expected to total
of the aggregate of (1) all grants received
lieu of establishing a NICRA. 2 CFR 200.414(f), 2 $4.4 billion. In 2032, BP will make a final payment by it under one of the three components,
CFR part 200, Appendix VII(D)(1)(b). in the form of penalty interest. and (2) the amount in the trust fund for
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three Components may not at any time Dissemination to Improve Services and comments are accurately represented in
exceed three percent of the aggregate of: Results for Children with Disabilities the development of the final
(i) The amounts received under a (TA&D) program. The Assistant requirements.
Component by a recipient, beginning Secretary may use this requirement for We invite you to assist us in
with the first grant through the most a competition in fiscal year (FY) 2018 complying with the specific
recent grant; and and later years. requirements of Executive Orders
(ii) The amounts in the Trust Fund DATES: We must receive your comments 12866, 13563, and 13771 and their
that are allocated to, but not yet on or before July 11, 2018. overall requirement of reducing
received under such Component by a ADDRESSES: Submit your comments regulatory burden that might result from
Gulf Coast State, coastal political through the Federal eRulemaking Portal this proposed requirement. Please let us
subdivision, or coastal zone parish or via postal mail, commercial delivery, know of any further ways we could
under § 34.103, consistent with the or hand delivery. We will not accept reduce potential costs or increase
definition of administrative costs in comments submitted by fax or by email potential benefits while preserving the
§ 34.2. The three percent limit does not or those submitted after the comment effective and efficient administration of
apply to the administrative costs of period. To ensure that we do not receive the program.
subrecipients. All recipient and duplicate copies, please submit your During and after the comment period,
subrecipient costs are subject to the cost comments only once. In addition, please you may inspect all public comments
principles in Federal laws and policies include the Docket ID at the top of your about this proposed requirement by
on grants. comments. accessing Regulations.gov. You may also
(2) Treasury will conduct a • Federal eRulemaking Portal: Go to inspect the comments in person in
retrospective analysis of this provision www.regulations.gov to submit your Room 5145, 550 12th Street SW,
no later than seven years after the date comments electronically. Information Washington, DC, between 8:30 a.m. and
it becomes effective. This review will on using Regulations.gov, including 4:00 p.m., Eastern Time, Monday
consider whether the revision ensures instructions for accessing agency through Friday of each week except
that the Gulf Coast states, coastal documents, submitting comments, and Federal holidays. Please contact the
political subdivisions, and coastal zone viewing the docket, is available on the persons listed under FOR FURTHER
parishes have the necessary funding to site under ‘‘How to Use INFORMATION CONTACT.
efficiently and effectively oversee and Regulations.gov.’’ Assistance to Individuals with
manage projects and programs for • Postal Mail, Commercial Delivery, Disabilities in Reviewing the
ecological and economic restoration of or Hand Delivery: If you mail or deliver Rulemaking Record: On request, we will
the Gulf Coast Region while ensuring your comments about this proposed provide an appropriate accommodation
compliance with the statutory three requirement, address them to Jo Ann or auxiliary aid to an individual with a
percent administrative cost cap, and McCann, U.S. Department of Education, disability who needs assistance to
whether it helps them to administer 400 Maryland Avenue SW, Room 5162, review the comments or other
RESTORE grant projects effectively and Potomac Center Plaza, Washington, DC documents in the public rulemaking
efficiently. 20202–5076. record for this proposed requirement. If
* * * * * Privacy Note: The Department’s you want to schedule an appointment
policy is to make all comments received for this type of accommodation or
David A. Lebryk, from members of the public available for auxiliary aid, please contact the persons
Fiscal Assistant Secretary. public viewing in their entirety on the listed under FOR FURTHER INFORMATION
[FR Doc. 2018–13227 Filed 6–19–18; 8:45 am] Federal eRulemaking Portal at CONTACT.
BILLING CODE 4810–25–P www.regulations.gov. Therefore, Purpose of Program: The purpose of
commenters should be careful to the Technical Assistance and
include in their comments only Dissemination to Improve Services and
information that they wish to make Results for Children with Disabilities
DEPARTMENT OF EDUCATION
publicly available. program is to promote academic
34 CFR Chapter III FOR FURTHER INFORMATION CONTACT: Jo achievement and to improve results for
Ann McCann, U.S. Department of children with disabilities by providing
[Docket ID ED–2018–OSERS–0024] technical assistance (TA), supporting
Education, 400 Maryland Avenue SW,
Room 5162, Potomac Center Plaza, model demonstration projects,
Proposed Requirement—State disseminating useful information, and
Technical Assistance Projects To Washington, DC 20202–5076.
Telephone: (202) 245–7434. Email: implementing activities that are
Improve Services and Results for supported by scientifically based
Children Who Are Deaf-Blind and Jo.Ann.McCann@ed.gov. Tina Diamond,
400 Maryland Avenue SW, Room 5136, research.
National Technical Assistance and
Dissemination Center for Children Who Potomac Center Plaza, Washington, DC Program Authority: 20 U.S.C. 1461, 1463,
20202–5076. Telephone: (202) 245– 1481, and 1482.
Are Deaf-Blind (TA&D–DB)
6674. Email: Tina.Diamond@ed.gov. Proposed Requirement
Catalog of Federal Domestic If you use a telecommunications
Assistance (CFDA) Number: 84.326T. device for the deaf (TDD) or a text Background
AGENCY: Office of Special Education and telephone (TTY), call the Federal Relay The Individuals with Disabilities
sradovich on DSK3GMQ082PROD with PROPOSALS
Rehabilitative Services, Department of Service (FRS), toll free, at 1–800–877– Education Act (IDEA) requires that the
Education. 8339. Secretary reserve $12,832,000 of IDEA
ACTION: Proposed requirement. SUPPLEMENTARY INFORMATION: Part D funds each year to address the
Invitation to Comment: We invite you needs of children with deaf-blindness
SUMMARY: The Assistant Secretary for to submit comments regarding this (see section 682(d)(1)(A) of IDEA, 20
Special Education and Rehabilitative document. We urge you to identify U.S.C. 1482(d)). The Office of Special
Services proposes a requirement under clearly the specific issue that each Education Programs (OSEP) supports
the Technical Assistance and comment addresses to ensure your children who are deaf-blind and their
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Document Created: 2018-06-20 00:19:51
Document Modified: 2018-06-20 00:19:51
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Notice of proposed rulemaking. | |
| Dates | Written comments on this NPRM must be received on or before: July 20, 2018. | |
| Contact | The Office of Gulf Coast Restoration at [email protected], or Laurie McGilvray at 202-622-7340. | |
| FR Citation | 83 FR 28563 | |
| RIN Number | 1505-AC55 | |
| CFR Associated | Coastal Zone; Fisheries; Grant Programs; Grants Administration; Intergovernmental Relations; Marine Resources; Natural Resources; Oil Pollution; Research; Science and Technology; Trusts and Wildlife |
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