[Federal Register: September 11, 2003 (Volume 68, Number 176)]
[Notices]
[Page 53540-53545]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11se03-30]

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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Funding Availability and Invitation To Apply for
Agriculture Innovation Center Demonstration Program Grants

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Business-Cooperative Service (RBS or Agency)
provides notice of the availability of $10,000,000 in fiscal year (FY)
2003 funds (NOFA) to fund the establishment of agriculture innovation
centers that are to provide assistance to agriculture producers in the
development of value-added businesses. This NOFA lists the information
needed to submit an application for these grants.

DATES: The deadline for receipt of an application is 4 p.m. eastern
time on September 16, 2003.

ADDRESSES: Hand-delivered applications or applications submitted using
an express mail or overnight courier service should be sent to: Marc
Warman, USDA Rural Business-Cooperative Service, 1400 Independence
Ave., SW., Room 4016, Washington, DC 20250; Telephone: (202) 720-8460.
Applications sent via the U.S. Postal Service must be sent to: Marc
Warman, USDA Rural Business-Cooperative Service, STOP 3252, 1400
Independence Ave., SW., Washington, DC 20250-3252. Applications sent
via email attachment must be sent to: marc.warman@usda.gov. Please note
that due to recent security concerns, packages sent to the Agency have
suffered significant delays. Entities wishing to apply for assistance
should contact Marc Warman to receive further information and copies of
the application package.

FOR FURTHER INFORMATION CONTACT: Jim Haskell, Acting Deputy
Administrator, Rural Business-Cooperative Service, USDA, Stop 3250,
Room 4016, 1400 Independence Ave., SW., Washington, DC 20250-3250,
telephone: (202) 720-8460, or email: james.haskell@usda.gov.
SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The Agency published a notice requesting comments on the collection
requirements contained in this NOFA concurrent with the publication of
the related proposed rule on June 13, 2003 (68 FR 35321). No comments
were received on the paperwork burden. OMB granted a standard approval
of the paperwork burden under control number 0570-0045 for this
program.

Background

    Section 6402 of the Farm Security and Rural Investment Act of 2002
(Pub. L. 107-171) (2002 Farm Bill) authorizes the Secretary of
Agriculture to establish up to 10 agriculture innovation demonstration
centers (Agriculture Innovation Centers or AICs) in Fiscal Year 2003.
The purpose of these centers is to foster the ability of agricultural
producers to reap the benefits of producing and marketing value-added
products.
    Relationship between this NOFA and the earlier published Advance
RFP Recognizing that the time requirements for publishing the final
rule were very tight, the Agency published a notice on August 1, 2003
(Advance RFP) outlining all of the requirements for applying for FY
2003 grants that were then known. While the Advance RFP anticipated the
publication of a final rule implementing the AIC grant program before
the end of

[[Page 53541]]

FY 2003, we now recognize that it is not likely that a final rule will
be published in time to obligate FY 2003 funds under terms and
conditions established in a final rule. Accordingly, we are publishing
this NOFA now in order to be able to implement this program before the
end of FY 2003.
    The Advance RFP advised the public that in order to fund AIC grants
for FY 2003 there would be an extremely short deadline for the
submission of applications. In the Advance RFP interested parties were
offered the opportunity of receiving notice of the timing for
submission of applications via electronic mail. All parties who
requested such electronic notification are receiving an electronic
version of this notice.
    The policies and procedures incorporated in this NOFA are the same
as those outlined in the Advance RFP published on August 1, 2003; the
only differences that pertain to this NOFA are that the deadline is
firmly established for the receipt of applications and the paperwork
burden associated with this program has been approved by OMB.
    In the event the RBS is not able to timely obligate FY 2003 funds,
applications received will be held for consideration for FY 2004
funding if and when funding is available and after a Final Rule is
published. Applicants will then be allowed to revise their applications
if the requirements of the Final Rule are different from the policies
and procedures outlined for FY 2003 in this NOFA.

Restrictions on Awards

    1. RBS will not award more than ten grants for FY 2003.
    2. RBS will not make a grant to more than one entity in any one
State.
    3. A grant award may not exceed the lesser of $1,000,000 or twice
the dollar amount (in cash or in kind) of the resources committed to
the Center's operations apart from the program grant funds.

Application

    Applicants must file an original and one copy of the required forms
and a proposal.
    (1) Required forms. The following forms must be completed, signed
and submitted as part of the application package.
    (a) ``Application for Federal Assistance.''
    (b) ``Budget Information'Non-Construction Programs.''
    (c) ``AssurancesNon-Construction Programs.''
    (2) Proposal. Each proposal must contain the following elements.
    (a) Title Page.
    (b) Table of Contents.
    (c) Executive Summary. A summary of the proposal should briefly
describe the project including goals, tasks to be completed and other
relevant information that provides a general overview of the project
and the amount requested.
    (d) Eligibility. A detailed discussion describing how the applicant
meets the eligibility requirements.
    (e) Proposal Narrative. The narrative portion of the proposal must
include, but is not limited to, the following:
    (i) Project Title. The title of the proposed project must be brief,
not to exceed 75 characters, yet describe the essentials of the
project.
    (ii) Information Sheet. A separate one page information sheet
listing each of the evaluation criteria followed by the page numbers of
all relevant material and documentation contained in the proposal that
address or support the criteria.
    (iii) Goals of the Project. The first part of this section should
list each Provider Service to be offered by the Center. The second part
of this section should list one or more specific goals relating to
increasing and improving the ability of identified local agricultural
producers to develop a market or process for value-added agricultural
commodities or products.
    (iv) Work Plan. Actions that must be taken in order for the
Provider Services to be available from the Center. Each action listed
should include a target date by which it will be completed. General
start up tasks should be listed, followed by specific tasks listed for
each Provider Service to be offered, as well as tasks associated with
the start of operations. The tasks associated with the start of
operations should include a focused marketing and delivery plan
directed to the local agricultural producers that were identified in
paragraph (2)(e)(iii) above. The actions to be taken should include
steps for identifying customers, acquiring personnel and contracting
for services to the Center, including arrangements for strategic
alliances.
    (v) Performance Evaluation Criteria. Performance criteria suggested
by the applicant for incorporation in the grant award in the event the
proposal receives grant funding under this subpart. These suggested
criteria are not binding on USDA.
    (vi) Agricultural Community Support. Evidence of support from the
local agricultural community should be included in this section.
Letters in support should reflect that the writer is familiar with the
provisions of the Plan for the Center, including the stated goals.
Evidence of support can take the form of making employees available to
the Center, service as a board member and other in-kind contributions.
    (vii) Strategic Coordination and Alliances. Describe arrangements
in place or planned with end users (processing and distribution
companies and regional grocers) as well as arrangements with entities
having technical research capabilities, broad support from the
agricultural community in the state or region, significant coordination
with end users (processing and distribution companies and regional
grocers), strategic alliances with entities having technical research
capabilities and a focused delivery plan for reaching out to the
producer community. (viii) Capacity. Evidence of the ability of the
grantee(s) to successfully establish and operate a Center. A
description of the grantee's track record in providing services similar
to those listed for Producer Services or evidence that the entity has
the capability to provide Producer Services. Resumes of key personnel
should be included in this section. Past successes should be described
in detail, with a focus on lessons learned, best practices, familiarity
with producer problems in value-added ventures, and how these barriers
are best overcome should be elaborated on in this section. For every
challenge identified, the applicant should demonstrate how they are
addressed in the Work Plan (see paragraph (2)(e)(iv) above). All
successes should include a monetary estimate of the value-added
achieved.
    (ix) Legal structure. Provide a description of the legal
relationship between the grantee(s) and the proposed Center. If the
Center is to be an independent corporate entity, provide copies of the
corporate charter, bylaws and other relevant organizational documents.
Describe how funds for the Center will be handled and include copies of
the agreements documenting the legal relationships between the Center
and related parties. If the Center is not to be an independent legal
entity, provide copies of the corporate governance documents that
describe how members of the Board of Directors for the Center are to be
determined.
    (x) Evaluation Criteria. Each of the evaluation criteria referenced
below must be specifically and individually addressed in narrative
form. Supporting documentation, as applicable, should be included in
this section, or a cross reference to other sections in the

[[Page 53542]]

application should be provided, as applicable.
    (xi) Verification of Adequate Resources. Present a budget to
support the work plan showing sources and uses of funds (1) during the
start up period prior to the start of operations and (2) for the first
year of full operations. Present a copy of a bank statement evidencing
sources of funds equal to amounts required in excess of the grant
requested, or, in the alternative, a copy of confirmed funding
commitments from credible sources such that USDA is satisfied that the
Center has adequate resources to complete a full year of operation.
Include information sufficient to facilitate verification by USDA of
all representations.
    (xii) Certification of Adequate Resources Applicants must certify
that non-Federal funds identified in the budget pursuant to paragraph
(2)(e)(xi) of this section will be available and funded commensurately
with grant funds.

Evaluation Criteria and Weights

    Each of the following seven evaluation criteria may be awarded up
to five (5) points.
    (1) Ability to Deliver. The application will be evaluated as to
whether it evidences unique abilities to deliver Producer Services so
as to create sustainable value-added ventures. Abilities that are
transferable to a wide range of agricultural value-added commodities
are preferred over highly specialized skills. Strong skills must be
accompanied by a credible and thoughtful plan.
    (2) Successful Track Record. The applicant's track record in
achieving value-added successes.
    (3) Work Plan/Budget. The work plan will be reviewed for detailed
actions and an accompanying timetable for implementing the proposal.
Clear, logical, realistic and efficient plans will result in a higher
score. Budgets will be reviewed for completeness and the strength of
non Federal funding commitments.
    (4) Qualifications of personnel. Proposals will be reviewed for
whether the key personnel who are to be responsible for performing the
proposed tasks have the necessary qualifications and whether they have
a track record of performing activities similar to those being
proposed. If a consultant or others are to be hired, points may be
awarded for consultants only if the proposal includes evidence of their
availability and commitment as well. Proposals using in-house employees
with strong track records in innovative activities will receive higher
points relative to proposals that out-source expertise.
    (5) Local support. Proposed Centers must show local support and
coordination with other developmental organizations in the proposed
service area and with state and local institutions. Support
documentation should include recognition of rural values that balance
employment opportunities with environmental stewardship and other rural
amenities. Proposed Centers that show strong support from potential
beneficiaries and coordination with other developmental organizations
will receive more points than those not evidencing such support.
    (6) Future support. Applicants that can demonstrate financial
independence in future years will receive more points for this
criterion. Points will be awarded only where future funding sources are
documented by letters of commitment.
    (7) Performance Criteria. Criteria suggested by the applicant in
the proposal narrative that are ambitious, relevant and quantifiable
and reflect serious consideration and seriousness of purpose will score
more points than superficial performance criteria that reflect little
or no challenge or that do not incorporate variables that reflect
value-added results.
    In the event of a tied score between two or more applications, the
scores for the first individual criterion will be compared, and the
highest score for that individual criterion will break the tie. If the
scores for the first criterion are tied, the scores for the second
criterion will be compared, and so on.

Form of Submission

    Applicants are encouraged, but not required, to submit applications
and reports in electronic form. A complete, original application may be
electronically sent as an e-mail attachment to marc.warman@usda.gov. If
applications are submitted electronically, a signature page must be
submitted via facsimile to the attention of Marc Warman at (202) 720-
4641 or in hard copy to Marc Warman at the address provided at the
beginning of this Notice. Alternatively, an original application
package plus one paper copy may be submitted to the address provided at
the beginning of this Notice.

Evaluation Screening

    The Agency will conduct an initial screening of all proposals to
determine whether the applicant is eligible and whether the application
is complete and sufficiently responsive to the requirements set forth
in this Notice to allow for an informed review. Failure to address any
of the required evaluation criteria will disqualify the proposal.
Submissions which do not pass the initial screening may be returned to
the Applicant. If the submission deadline has not expired and time
permits, returned applications may be revised and re-submitted.

Evaluation Process

    (1) Applications will be evaluated by agricultural economists or
other technical experts appointed by the Agency.
    (2) After all proposals have been evaluated and scored, Agency
officials will present to the Administrator a list of all applications
in rank order, together with funding level recommendations.
    (3) The Administrator has not elected to reserve the right to award
additional points for this round of competition; the applications will
be funded in rank order until all available funds have been obligated.

Related Policies and Procedures Applicable to AIC Grants

Definitions
    Agency--Rural Business-Cooperative Service (RBS), an agency of the
United States Department of Agriculture (USDA), or a successor agency.
    Agriculture Producer Group--An organization that represents
Independent Producers, whose mission includes working on behalf of
Independent Producers and the majority of whose membership and board of
directors is comprised of Independent Producers.
    Agricultural Product--Plant and animal products and their by-
products to include forestry products, fish and seafood products.
    Board of Directors--The group of individuals that govern the
Center.
    Center--The Agriculture Innovation Center to be established and
operated by the grantees. It may or may not be an independent legal
entity, but it must be independently governed in accordance with the
requirements of this subpart.
    Cooperative--A user-owned and controlled business from which
benefits are derived and distributed equitably on the basis of use.
    Cooperative Services--The office within RBS, and its successor
organization, that administers programs authorized by the Cooperative
Marketing Act of 1926 (7 U.S.C. 451 et seq.) and such other programs so
identified in USDA regulations.
    Economic development--The economic growth of an area as evidenced
by increase in total income, employment opportunities, decreased

[[Page 53543]]

out-migration of population, value of production, increased
diversification of industry, higher labor force participation rates,
increased duration of employment, higher wage levels, or gains in other
measurements of economic activity, such as land values.
    Fixed equipment--Tangible personal property used in trade or
business that would ordinarily be subject to depreciation under the
Internal Revenue Code, including processing equipment, but not
including property for equipping and furnishing offices such as
computers, office equipment, desks or file cabinets.
    Independent Producers--Agricultural producers, to include
individuals, for profit and not for profit corporations, LLCs,
partnerships or LLPs, solely owned or controlled by producers who do
not produce the agricultural product under contract or joint ownership
with any other organization. An independent producer can also be a
steering committee composed of independent agricultural producers in
the process of organizing an association to operate a value-added
venture that will be owned and controlled by the independent producers
supplying agricultural product to the market.
    National Office--USDA RBS headquarters in Washington, D.C.
    Nonprofit institution--Any organization or institution, including
an accredited institution of higher education, no part of the net
earnings of which may inure, to the benefit of any private shareholder
or individual.
    Producer Services--are those services to be provided by the Centers
to agricultural producers. Producer services consist of the following
types of services:
    (1) Technical assistance, consisting of engineering services,
applied research, scale production, and similar services, to enable the
agricultural producers to establish businesses to produce value-added
agricultural commodities or products;
    (2) Assistance in marketing, market development and business
planning, including advisory services with respect to leveraging
capital assets; and
    (3) Organizational, outreach and development assistance to increase
the viability, growth and sustainability of businesses that produce
value-added agricultural commodities or products.
    Product segregation--Physical separation of a product or commodity
from similar products. Physical separation requires a barrier to
prevent mixing with the similar product.
    Public body--Any state, county, city, township, incorporated town
or village, borough, authority, district, economic development
authority, or Indian tribe on federal or state reservations or other
federally recognized Indian tribe in rural areas.
    Qualified Board of Directors--A Board of Directors that includes
representatives from each of the following groups: (1) The two general
agricultural organizations with the greatest number of members in the
State in which the Center is located, (2) the State department of
agriculture, or equivalent, of the State in which the Center is located
and (3) entities representing the four highest grossing commodities
produced in the State in which the Center is located, as determined on
the basis of annual gross cash sales.
    Rural and rural area--includes all the territory of a state that is
not within the outer boundary of any city or town having a population
of 50,000 or more and the urbanized area contiguous and adjacent to
such city or town, as defined by the U.S. Bureau of the Census using
the latest decennial census of the United States.
    Rural Development--A mission area within the USDA consisting of the
Office of Under Secretary for Rural Development, Office of Community
Development, Rural Business-Cooperative Service, Rural Housing Service
and Rural Utilities Service and their successors.
    State--includes each of the several States, the Commonwealth of
Puerto Rico, the Virgin Islands of the United States, Guam, American
Samoa, the Commonwealth of the Northern Mariana Islands, and, as may be
determined by the Secretary to be feasible, appropriate and lawful, the
Freely Associated States and the Federated States of Micronesia.
    State Office--USDA Rural Development offices located in each state.
    Value-Added--The incremental value that is realized by the producer
from an agricultural commodity or product as the result of (1) a change
in its physical state, (2) differentiated production or marketing, as
demonstrated in a business plan, or (3) Product segregation. Also, the
economic benefit realized from the production of farm or ranch-based
renewable energy. Incremental value may be realized by the producer as
a result of either an increase in value to buyers or the expansion of
the overall market for the product. Examples include milling wheat into
flour, slaughtering livestock or poultry, making strawberries into jam,
the marketing of organic products, an identity-preserved marketing
system, and collecting and converting methane from animal waste to
generate energy. Identity-preserved marketing systems include labeling
that identifies how the product was produced and by whom.

Eligibility for Grant Assistance

    Non-profit and for-profit corporations, institutions of higher
learning and other entities, including a consortium where a lead entity
has been designated and agrees to act as funding agent, that meet the
following requirements are eligible for grant assistance:
    (1) The entity--
    (a) has provided services similar to those listed for Producer
Services; or
    (b) demonstrates the capability of providing Producer Services;
    (2) The application includes a plan that meets the requirements of
paragraph (2)(e)(iv) in the application requirements above, that also
outlines--
    (a) the support for the entity in the agricultural community;
    (b) the technical and other expertise of the entity; and
    (c) the goals of the entity for increasing and improving the
ability of local agricultural producers to develop markets and
processes for value-added agricultural commodities or products;
    (3) The entity demonstrates that adequate resources (in cash or in
kind) are available, or have been committed to be made available to the
entity, to increase and improve the ability of local agricultural
producers to develop markets and processes for value-added agricultural
commodities or products;
    (4) The proposed Center has a Qualified Board of Directors; and
    (5) There is no recorded outstanding judgment obtained against the
applicant by the United States in a Federal Court (other than in the
United States Tax Court), that has not been paid in full or otherwise
satisfied.

Use of Grant Funds

    Grant funds may be used to assist eligible recipients in
establishing Centers that provide Producer Services and may only be
used to support operations of the Center that directly relate to
providing Producer Services. Grant funds may be used for the following
purposes:
    (1) Consulting services for legal, accounting and technical
services to be used by the grantee in establishing and operating a
Center;
    (2) Hiring of employees, at the discretion of the Qualified Board
of Directors;
    (3) The making of matching grants to agricultural producers,
individually not to exceed $5,000, where the aggregate amount of all
such matching grants made by the grantee does not exceed $50,000;

[[Page 53544]]

    (4) Applied research; and
    (5) Legal services.

Limitations on Use of Grant Funds

    Grant funds may not be used to:
    (1) Duplicate current services or replace or substitute support
previously provided. If the current service is inadequate, however,
grant funds may be used to expand the level of effort or services
beyond what is currently being provided;
    (2) Pay costs of preparing the application package for funding
under this program;
    (3) Pay costs of the project incurred prior to the date of grant
approval;
    (4) Fund political activities;
    (5) Pay for assistance to any private business enterprise which
does not have at least 51 percent ownership by those who are either
citizens of the United States or reside in the United States after
being legally admitted for permanent residence;
    (6) Pay any judgment or debt owed to the United States;
    (7) Plan, repair, rehabilitate, acquire, or construct a building or
facility (including a processing facility);
    (8) Purchase, rent or install Fixed Equipment; or
    (9) Pay for the repair of privately owned vehicles.

Grant Approval and Obligation of Funds

    The following statement will be entered in the comment section of
the Request for Obligation of Funds, which must be signed by the
grantee:
    ``The grantee certifies that it is in compliance with and will
continue to comply with all applicable laws, regulations, Executive
Orders and other generally applicable requirements, including those
contained in 7 CFR part 4284 and 7 CFR parts 3015, 3016, 3017, 3018,
3019 and 3052 in effect on the date of grant approval, and the approved
Letter of Conditions.''

Grant Disbursement

    The Agency will determine, based on 7 CFR parts 3015, 3016 and
3019, as applicable, whether disbursement of a grant will be by advance
or reimbursement. The Agency may limit the frequency in which a Request
for Advance or Reimbursement may be submitted.

Grant Closing

    (1) Letter of Conditions. The Agency will notify an approved
applicant in writing, setting out the conditions under which the grant
will be made.
    (2) Applicant's intent to meet conditions. Upon reviewing the
conditions and requirements in the letter of conditions, the applicant
must complete, sign and return the Agency's ``Letter of Intent to Meet
Conditions,'' or, if certain conditions cannot be met, the applicant
may propose alternate conditions to the Agency. The Agency must concur
with any changes proposed to the letter of conditions by the applicant
before the application will be further processed.
    (3) Grant agreement. The Agency and the grantee must enter into an
``Agriculture Innovation Center Grant Agreement'' prior to the advance
of funds.

Award Requirements

    All approved applicants will be required to do the following:
    (1) Use ``Request for Advance or Reimbursement'' to request
advances or reimbursements, as applicable, but not more frequently than
once a month;
    (2) Maintain a financial management system that is acceptable to
the Agency; and
    (3) Collect and maintain data on race, sex and national origin of
the beneficiaries of the project.

Reporting Requirements

    Grantees must submit the following to USDA:
    (1) A ``Financial Status Report'' listing expenditures according to
agreed upon budget categories, on a semi-annual basis. Reporting
periods end each March 31 and September 30. Reports are due 30 days
after the reporting period ends.
    (2) Semi-annual performance reports that compare accomplishments to
the objectives stated in the proposal. All tasks completed to date must
be specifically identified and documentation provided to support the
reported results. If the original schedule provided in the work plan is
not being met, the report should discuss the problems or delays that
may affect completion of the project. Objectives for the next reporting
period should be listed. Compliance with any special condition on the
use of award funds should be discussed. Reports are due as provided in
paragraph (1). The supporting documentation for completed tasks
include, but are not limited to, feasibility studies, marketing plans,
business plans, articles of incorporation and bylaws and an accounting
of how working capital funds were spent.
    (3) Final project performance reports, inclusive of supporting
documentation. The final performance report is due within 30 days of
the completion of the project.

Confidentiality of Reports

    All reports submitted to the Agency will be held in confidence to
the extent permitted by law.

Grant Servicing

    Grants will be serviced in accordance with 7 CFR part 1951,
subparts E and O. Grantees will permit periodic inspection of the
program operations by a representative of the Agency. All non-
confidential information resulting from the Grantee's activities shall
be made available to the general public on an equal basis.

Performance

    USDA may elect to suspend or terminate a grant in all or part, or
funding of a particular work plan activity, but nevertheless fund the
remainder of a request for advance or reimbursement, as applicable,
where USDA has determined:
    (1) that the grantee or subrecipient of grant funds has
demonstrated insufficient progress in complying with the terms of the
grant agreement;
    (2) there is reason to believe that other sources of joint funding
have not been or will not be forthcoming on a timely basis; or
    (3) such other cause as USDA identifies in writing to the grantee
(including but not limited to the use of federal grant funds for
ineligible purposes).

Other Considerations

    (1) Environmental review.
    All grants made under this subpart are subject to the requirements
of 7 CFR part 1940, subpart G or its successor. Applications for
technical assistance or planning projects are generally excluded from
the environmental review process by 7 CFR 1940.333, provided the
assistance it not related to the development of a specific site.
Applicants for grant funds must consider and document within their
plans the important environmental factors within the planning area and
the potential environmental impacts of the plan on the planning area,
as well as the alternative planning strategies that were reviewed.
    (2) Civil rights. All grants made under this subpart are subject to
the requirements of title VI of the Civil Rights Act of 1964, which
prohibits discrimination on the basis of race, color and national
origin as outlined in 7 CFR part 1901, subpart E. In addition, the
grants made under this subpart are subject to the requirements of
section 504 of the Rehabilitation Act of 1973, as amended, which
prohibits discrimination on the basis of disability;

[[Page 53545]]

the requirements of the Age Discrimination Act of 1975, which prohibits
discrimination on the basis of age; and title III of the Americans with
Disabilities Act, which prohibits discrimination on the basis of
disability by private entities in places of public accommodations. This
program will also be administered in accordance with all other
applicable Civil Rights Law.
    (3) Other USDA regulations. The grant programs under this part are
subject to the provisions of the following regulations, as applicable:
    (a) 7 CFR part 3015, Uniform Federal Assistance Regulations;
    (b) 7 CFR part 3016, Uniform Administrative Requirements for Grants
and Cooperative Agreements to State and Local Governments;
    (c) 7 CFR part 3017, Governmentwide Debarment and Suspension
(nonprocurement) and Governmentwide Requirements for Drug-Free
Workplace (Grants);
    (d) 7 CFR part 3018, New Restrictions on Lobbying;
    (e) 7 CFR part 3019, Uniform Administrative Requirements for Grants
and Agreements with Institutions of Higher Education, Hospitals and
Other Non-profit Organizations; and
    (f) 7 CFR part 3052, Audits of States, Local Governments and Non-
profit Organizations.

Member Delegate Clause

    No member of Congress shall be admitted to any share or part of a
grant program or any benefit that may arise there from, but this
provision shall not be construed to bar as a contractor under a grant a
publicly held corporation whose ownership might include a member of
Congress.

Audit Requirements

    Grantees must comply with the audit requirements of 7 CFR part
3052. The audit requirements apply to the years in which grant funds
are received and years in which work is accomplished using grant funds.

Programmatic Changes

    The Grantee shall obtain prior approval for any change to the scope
or objectives of the approved project. Failure to obtain prior approval
of changes to the scope of work or budget may result in suspension,
termination and recovery of grant funds.

    Dated: September 5, 2003.
Gilbert Gonzalez,
Acting Under Secretary, Rural Development.
[FR Doc. 03-23135 Filed 9-10-03; 8:45 am]