Food for Progress Program
| Citation | 84 FR 45057 |
| Record Number | 2019-18420 |
| Published date | 28 August 2019 |
| Section | Rules and Regulations |
| Court | Commodity Credit Corporation |
Federal Register, Volume 84 Issue 167 (Wednesday, August 28, 2019)
[Federal Register Volume 84, Number 167 (Wednesday, August 28, 2019)]
[Rules and Regulations]
[Pages 45057-45060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18420]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 84, No. 167 / Wednesday, August 28, 2019 /
Rules and Regulations
[[Page 45057]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1499
RIN 0551-AA94
Food for Progress Program
AGENCY: Foreign Agricultural Service and Commodity Credit Corporation,
USDA.
ACTION: Final rule with request for comments.
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SUMMARY: The Commodity Credit Corporation (CCC) is amending the
regulations governing the Food for Progress Program to include colleges
and universities among the entities eligible for awards under the
program, and to make other minor changes. The Agricultural Improvement
Act of 2018 added colleges and universities to the list of eligible
entities in the Food for Progress Act of 1985. This amendment
implements the statutory change to expand the types of entities that
can receive awards under the program, and it makes other technical
changes to update the regulations.
DATES: This rule is effective August 28, 2019. Written comments must be
received by CCC or carry a postmark or equivalent no later than
September 27, 2019.
ADDRESSES: Comments, identified by Regulatory Information Number (RIN)
0551-AA94, may be sent by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for sending comments.
Email: [email protected]. Include RIN 0551-AA94 in the
subject line of the message.
Mail: Director, Food Assistance Division, Office of
Capacity Building and Development, Foreign Agricultural Service, 1400
Independence Ave. SW, STOP 1034, Washington, DC 20250.
Instructions: All submissions received must include the agency name
and RIN 0551-AA94.
FOR FURTHER INFORMATION CONTACT: Angela Crooks, (202) 756-7194,
[email protected].
SUPPLEMENTARY INFORMATION:
Background
The Food for Progress Program provides for the donation of U.S.
agricultural commodities to developing countries and emerging
democracies committed to introducing and expanding free enterprise in
the agricultural sector. The commodities are generally sold on the
local market and the proceeds are used to support agricultural
development activities. The program has two principal objectives: To
improve agricultural productivity and expand trade in agricultural
products. The Food for Progress Program is authorized in section 1110
of the Food Security Act of 1985 (also known as the Food for Progress
Act of 1985) (7 U.S.C. 1736o).
The Foreign Agricultural Service (FAS) implements the Food for
Progress Program on behalf of CCC. FAS uses the regulations in 7 CFR
part 1499, Food for Progress Program, in the administration of the Food
for Progress Program. The previous version of the regulations was
published as a final rule on September 12, 2016 (81 FR 62603).
Amendment of Regulations
FAS, on behalf of CCC, is amending the Food for Progress Program
regulations in 7 CFR part 1499 through this final rule to implement a
change made by the Agricultural Improvement Act of 2018 (Pub. L. 115-
334) to the Food for Progress Act of 1985, which added colleges and
universities, as defined in 7 U.S.C. 3103(4), to the list of entities
eligible for awards under the program. FAS is adding the definition
``College or university'' to section 1499.2 and amending sections
1499.1(d), (f)(1), and (g)(1), and 1499.3(a) to implement this
statutory change. The change will foster greater competition in
proposal submissions and provide an opportunity for more innovative
projects to be considered.
In addition, FAS is amending the regulations to make changes that
are technical in nature and intended to improve the efficiency and
effectiveness of the Food for Progress Program, including the
following:
(1) Clarifying that regulatory provisions that are generally
applicable to CCC apply to the Food for Progress Program (7 CFR
1499.1(c)).
(2) Clarifying that provisions specified by CCC during the
negotiation of an agreement, which are in addition to provisions
required by the regulations, will be included in the agreement but will
not necessarily be in the plan of operation component of the agreement
(7 CFR 1499.5(d)).
(3) Bringing the language in the regulations into better alignment
with references in the Food for Progress Act of 1985 (7 CFR
1499.5(e)(1) and (e)(4)).
(4) Clarifying that the required assertion by a recipient that
adequate transportation and storage facilities will be available in the
target country refers to the time of arrival of the commodities in the
target country (7 CFR 1499.5(e)(5)).
(5) Modifying references to economic sanction programs to allow for
situations in which a U.S. Government economic sanction program is not
country-specific (7 CFR 1499.11(e) and 1499.14(b)(2)).
(6) Replacing the specific reference to a percentage of the ``Grand
Total Costs'' in the agreement budget with a more general reference to
the amount specified in the agreement, which would allow CCC to make a
change to the budget format if it determines that it would be
beneficial (7 CFR 1499.11(h)(1)).
(7) Allowing CCC to specify in the agreement the circumstances in
which a recipient must submit to CCC a contract with a provider of
goods, services, or construction work (7 CFR 1499.11(k)).
(8) Allowing for the possibility that there might not be any
closeout and post-closeout provisions specified in an agreement and
that only those provisions in 2 CFR 200.343 and 200.344 would apply (7
CFR 1499.16(b)(3)).
(9) Modifying language to reflect that FAS personnel who act on
behalf of CCC to make determinations under the Food for Progress
Program are not necessarily CCC officials but are acting under
delegated authority (7 CFR 1499.17(b) and (c)).
Notice and Comment
This rule is being issued as a final rule without prior notice and
[[Page 45058]]
opportunity for comment. The Administrative Procedure Act exempts rules
``relating to agency management or personnel or to public property,
loans, grants, benefits, or contracts'' from the statutory requirement
for prior notice and opportunity for comment (5 U.S.C. 553(a)(2)).
Accordingly, this rule may be made effective less than 30 days after
publication in the Federal Register. However, members of the public may
participate in this rulemaking by submitting written comments, data, or
views. CCC will consider the comments received and may conduct
additional rulemaking based on the comments. Written comments must be
received by CCC or carry a postmark or equivalent no later than
September 27, 2019.
Catalog of Federal Domestic Assistance
The program covered by this regulation is listed in the Catalog of
Federal Domestic Assistance (CFDA) under the following FAS CFDA number:
10.606, Food for Progress.
E-Government Act Compliance
CCC is committed to complying with the E-Government Act of 2002 (44
U.S.C. chapter 36), to promote the use of the internet and other
information technologies to provide increased opportunities for
citizens' access to Government information and services, and for other
purposes.
Executive Order 12866
This rule is issued in conformance with Executive Order 12866,
``Regulatory Planning and Review.'' It has been determined to be not
significant for the purposes of Executive Order 12866 and, therefore,
was not reviewed by the Office of Management and Budget. Pursuant to
the Congressional Review Act (5 U.S.C. 801 et seq.), the Office of
Information and Regulatory Affairs designated this rule as not a major
rule, as defined by 5 U.S.C. 804(2).
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988, ``Civil Justice Reform.'' This rule does not preempt State or
local laws, regulations, or policies unless they present an
irreconcilable conflict with this rule. This rule will not be
retroactive.
Executive Order 12372
Executive Order 12372, ``Intergovernmental Review of Federal
Programs,'' requires consultation with officials of State and local
governments that would be directly affected by the proposed Federal
financial assistance. The objectives of the Executive Order are to
foster an intergovernmental partnership and a strengthened federalism
by relying on State and local processes for the State and local
government coordination and review of proposed Federal financial
assistance and direct Federal development. This rule will not directly
affect State or local officials and, for this reason, it is excluded
from the scope of Executive Order 12372.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by
the Small Business Regulatory Enforcement Fairness Act of 1996,
generally requires an agency to prepare a regulatory flexibility
analysis of any rule that is subject to notice and comment rulemaking
under the Administrative Procedure Act (APA) or any other law, unless
the agency certifies that the rule will not have a significant economic
impact on a substantial number of small entities. The Regulatory
Flexibility Act does not apply to this rule because CCC is not required
by the APA or any other law to publish a notice of proposed rulemaking
with respect to the subject matter of the rule.
Executive Order 13132
This rule has been reviewed under Executive Order 13132,
``Federalism.'' This rule will not have any substantial direct effect
on States, on the relationship between the Federal government and the
States, or on the distribution of power and responsibilities among the
various levels of government, except as required by law. This rule does
not impose substantial direct compliance costs on State and local
governments. Therefore, consultation with the States was not required.
Executive Order 13175
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' Executive Order 13175 requires Federal agencies
to consult and coordinate with tribes on a government-to-government
basis on policies that have tribal implications, including regulations,
legislative comments or proposed legislation, and other policy
statements or actions that have substantial direct effects on one or
more Indian tribes, on the relationship between the Federal Government
and Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes. CCC does not expect
this rule to have any effect on Indian tribes.
Unfunded Mandates
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) does
not apply to this rule because it does not impose any enforceable duty
or contain any unfunded mandate as described under the UMRA.
List of Subjects in 7 CFR Part 1499
Agricultural commodities, Cooperative agreements, Exports, Food
assistance programs, Foreign aid, Grant programs-agriculture, Technical
assistance.
For the reasons set forth in the preamble, the Commodity Credit
Corporation amends part 1499 of title 7 of the Code of Regulations as
follows:
PART 1499--FOOD FOR PROGRESS PROGRAM
0
1. The authority citation for part 1499 continues to read as follows:
Authority: 7 U.S.C. 1736o; and 15 U.S.C. 714b and 714c.
0
2. In Sec. 1499.1, revise paragraphs (c), (d), (f)(1), and (g)(1) and
(2) to read as follows:
Sec. 1499.1 Purpose and applicability.
* * * * *
(c) Except as otherwise provided in this part, other regulations
that are generally applicable to grants and cooperative agreements of
USDA, including the applicable regulations set forth in 2 CFR chapters
I, II, and IV, also apply to the FFPr Program. The provisions of the
CCC Charter Act (15 U.S.C. 714 et seq.) and any other statutory or
regulatory provisions that are generally applicable to CCC apply to the
FFPr Program.
(d) In accordance with 7 U.S.C. 1736o(b)(5), assistance under the
FFPr Program may be provided to governments of emerging agricultural
countries, intergovernmental organizations, private voluntary
organizations, nonprofit agricultural organizations or cooperatives,
nongovernmental organizations, colleges or universities, and any other
private entities.
* * * * *
(f)(1) The OMB guidance at subparts A through E of 2 CFR part 200,
as supplemented by 2 CFR part 400 and this part, applies to all awards
by CCC under the FFPr Program to all recipients that are private
voluntary organizations, including a private voluntary organization
that is a foreign organization, as defined in 2 CFR
[[Page 45059]]
200.47; nonprofit agricultural organizations or cooperatives, including
a nonprofit agricultural organization or cooperative that is a foreign
organization; nongovernmental organizations, including a
nongovernmental organization that is a for-profit entity or a foreign
organization; colleges or universities; or other private entities,
including a private entity that is a for-profit entity or a foreign
organization.
* * * * *
(g)(1) The OMB guidance at subpart F of 2 CFR part 200, as
supplemented by 2 CFR part 400 and this part, applies only to awards by
CCC to recipients that are private voluntary organizations,
agricultural organizations or cooperatives, nongovernmental
organizations, colleges or universities, or other private entities, but
that are not for-profit entities or foreign organizations.
(2) The OMB guidance at subpart F of 2 CFR part 200, as
supplemented by 2 CFR part 400 and this part, applies to subawards to
subrecipients under this part, except where the subrecipient is a for-
profit entity, foreign public entity, or foreign organization.
* * * * *
0
3. In Sec. 1499.2, add a definition for ``College or university'' in
alphabetical order to read as follows:
Sec. 1499.2 Definitions.
* * * * *
College or university means an educational institution in any State
which admits as regular students only persons having a certificate of
graduation from a school providing secondary education, or the
recognized equivalent of such a certificate; is legally authorized
within such State to provide a program of education beyond secondary
education; provides an educational program for which a bachelor's
degree or any other higher degree is awarded; is a public or other
nonprofit institution; and is accredited by a nationally recognized
accrediting agency or association. The terms include a research
foundation maintained by such a college or university. As used in this
definition, State will have the meaning given in 7 U.S.C. 3103(16).
* * * * *
0
4. In Sec. 1499.3, revise paragraph (a) to read as follows:
Sec. 1499.3 Eligibility and conflicts of interest.
(a) A private voluntary organization, a nonprofit agricultural
organization or cooperative, a nongovernmental organization, a colleges
or university, or any other private entity is eligible to submit an
application under this part to become a recipient under the Food for
Progress Program. CCC will set forth specific eligibility information,
including any factors or priorities that will affect the eligibility of
an applicant or application for selection, in the full text of the
applicable notice of funding opportunity posted on the U.S. Government
website for grant opportunities.
* * * * *
0
5. In Sec. 1499.5:
0
a. Revise paragraphs (d)(2)(vii) and (viii);
0
b. Remove paragraph (d)(2)(ix);
0
c. Revise paragraphs (d)(3) and (4);
0
d. Add paragraph (d)(5); and
0
e. Revise paragraphs (e)(1), (4), and (5).
The revisions and addition read as follows:
Sec. 1499.5 Agreements.
* * * * *
(d) * * *
(2) * * *
(vii) Any other governmental or nongovernmental entities that will
be involved in the implementation of the activities; and
(viii) Any processing, packaging, or repackaging of the donated
commodities that will take place prior to their distribution, sale, or
barter by the recipient;
(3) A budget, which will set forth the maximum amounts of sale
proceeds, CCC-provided funds, interest, program income, and voluntary
committed cost sharing or matching contributions that may be used for
each line item, as well as other applicable budget requirements;
(4) Performance goals for the agreement, including a list of
results, with long-term benefits where applicable, to be achieved by
the activities and corresponding indicators, targets, and time frames;
and
(5) Any additional provisions specified by CCC during the
negotiation of the agreement.
(e) * * *
(1) The agreement will prohibit the sale or transshipment of the
donated commodities by the recipient to a country not specified in the
agreement, or the use of the donated commodities for other than
domestic purposes, for as long as the recipient has title to such
donated commodities;
* * * * *
(4) The recipient will assert that, to the best of its knowledge,
any sale or barter of the donated commodities will not displace or
interfere with any sales of United States commodities that may
otherwise be made to or within the target country. The recipient must
submit information to CCC to support this assertion; and
(5) The recipient will assert that adequate transportation and
storage facilities will be available in the target country at the time
of the arrival of the donated commodities to prevent spoilage or waste
of the donated commodities. The recipient must submit information to
CCC to support this assertion.
* * * * *
0
6. In Sec. 1499.6, revise paragraph (f)(6)(iv) to read as follows:
Sec. 1499.6 Payments.
* * * * *
(f) * * *
(6) * * *
(iv) If a recipient must return funds to CCC in accordance with
paragraph (f)(6) of this section, the recipient must return the funds
by the later of five business days after the 91st day after the funds
were advanced, or five business days after the date on which the
recipient receives notice from CCC that it has denied the recipient's
request to roll over the funds; provided, however, that CCC may specify
a different date for the return of funds in a written communication to
the recipient.
* * * * *
0
7. In Sec. 1499.11, revise paragraphs (e), (h)(1), and (k) to read as
follows:
Sec. 1499.11 Use of donated commodities, sale proceeds, CCC-provided
funds, and program income.
* * * * *
(e) A recipient must not use sale proceeds, CCC-provided funds,
interest, or program income to acquire goods and services, either
directly or indirectly through another party, in a manner that violates
a U.S. Government economic sanction program, as specified in the
agreement.
* * * * *
(h)(1) Except as provided in paragraph (h)(2) of this section, a
recipient may make adjustments within the agreement budget between
direct cost line items without further approval, provided that the
total amount of adjustments does not exceed the amount specified in the
agreement. Adjustments beyond these limits require the prior approval
of CCC.
* * * * *
(k) A recipient must enter into a written contract with each
provider of goods, services, or construction work that is valued at or
above the Simplified Acquisition Threshold. Each such contract must
require the provider to
[[Page 45060]]
maintain adequate records to account for all donated commodities,
funds, or both furnished to the provider by the recipient and to comply
with any other applicable requirements that may be specified by CCC in
the agreement. The recipient must submit a copy of each signed contract
to CCC, as specified in the agreement.
0
8. In Sec. 1499.14, revise paragraph (b)(2) to read as follows:
Sec. 1499.14 Subrecipients.
* * * * *
(b) * * *
(2) The subrecipient is prohibited from using sale proceeds, CCC-
provided funds, interest, or program income to acquire goods and
services, either directly or indirectly through another party, in a
manner that violates a U.S. Government economic sanction program, as
specified in the agreement.
* * * * *
0
9. In Sec. 1499.16, revise paragraph (b)(3) to read as follows:
Sec. 1499.16 Suspension and termination of agreements.
* * * * *
(b) * * *
(3) Must comply with any closeout and post-closeout provisions
specified in the agreement and 2 CFR 200.343 and 200.344.
0
10. In Sec. 1499.17, revise paragraphs (b) and (c) to read as follows:
Sec. 1499.17 Opportunities to object and appeals.
* * * * *
(b) The recipient must submit its objection in writing, along with
any documentation, to the official specified in the agreement within 30
days after the date of CCC's written notification to the recipient of
the CCC action being challenged. This official will endeavor to notify
the recipient of his or her determination (the initial determination)
within 60 days after the date that CCC received the recipient's written
objection.
(c) The recipient may appeal the initial determination to the
Administrator, FAS. An appeal must be in writing and be submitted to
the Office of the Administrator within 30 days after the date of the
initial determination. The recipient may submit additional
documentation with its appeal.
* * * * *
Dated: July 19, 2019.
Robert Stephenson,
Executive Vice President, Commodity Credit Corporation.
In concurrence with.
Dated: July 18, 2019.
Ken Isley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2019-18420 Filed 8-27-19; 8:45 am]
BILLING CODE 3410-10-P
