Basic laws and authorities on housing and community development, revised through January 3, 1979

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Title:
Basic laws and authorities on housing and community development, revised through January 3, 1979
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Laws, etc
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2 v. (vii, 1530, lxxx p.) : ; 24 cm.
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English
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United States
United States -- Congress. -- House. -- Committee on Banking, Finance, and Urban Affairs
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Housing -- Law and legislation -- United States   ( lcsh )
Community development -- Law and legislation -- United States   ( lcsh )
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bibliography   ( marcgt )
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Bibliography:
Includes bibliographical references and index.
General Note:
CIS Microfiche Accession Numbers: CIS 79 H242-9 (pt.1), CIS 80 H242-16 (pt.1/supp), CIS 79 H242-10 (pt.2)
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At head of title: Committee print 96-6.
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Reuse of record except for individual research requires license from LexisNexis Academic & Library Solutions.
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Committee on Banking, Finance and Urban Affairs, House of Representatives, 96th Congress, first session.

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University of Florida
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All applicable rights reserved by the source institution and holding location.
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aleph - 024800487
oclc - 06306025
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AA00024813:00002

Full Text
\ 41 2 2A


[COMMITTEE PRINT 96-61






BASIC LAWS AND AUTHORITIES ON
HOUSING AND COMMUNITY DEVELOPMENT REVISED THROUGH JANUARY 3, 1979



COMMITTEE ON BANKING, FINANCE
AND URBAN AFFAIRS
HOUSE OF REPRESENTATIVES
96th CONGRESS, FIRST SESSION












PART 2






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[COMMITTEE PRINT 96-6]







BASIC LAWS AND AUTHORITIES ON
HOUSING AND COMMUNITY DEVELOPMENT
REVISED THROUGH JANUARY 3, 1979




COMMITTEE ON BANKING, FINANCE
AND URBAN AFFAIRS
HOUSE OF REPRESE-NTATIVES

96th CONGRESS, FIRST SESSION














PART 2






Printed for the use of the
Committee on Banking, Finance and Urban Affairs

U.S. GOVERNMENT PRINTING OFFICE 454705 0 WASHINGTON : 1979

]For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402










HOUSE COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS
HENRY S. REUSS, Wisconsin, Chairman
THOMAS L. ASHLEY, Ohio J. WILLIAM STANTON, Ohio
WILLIAM S. MOORHEAD, Pennsylvania CHALMERS P. WYLIE, Ohio FERNAND J. ST GERMAIN, Rhode Island STEWART B. McKINNEY, Connecticut HENRY B. GONZALEZ, Texas GEORGE HANSEN, Idaho
JOSEPH G. MINISH, New Jersey HENRY J. HYDE, Illinois
FRANK ANNUNZIO, Illinois RICHARD KELLY, Florida
JAMES M. HANLEY, New York JIM LEACH, Iowa
PARREN J. MITCHELL, Maryland THOMAS B. EVANS, JR., Delaware
WALTER E. FAUNTROY, S. WILLIAM GREEN, New York
District of Columbia RON PAUL, Texas
STEPHEN L. NEAL, North Carolina ED BETHUNE, Arkansas JERRY M. PATTERSON, California NORMAN D. SHUMWAY, California JAMES J. BLANCHARD, Michigan CARROLL A. CAMPBELL, JR.,
CARROLL HUBBARD, JR., Kentucky South Carolina
JOHN J. LAFALCE, New York DON RITTER, Pennsylvania
GLADYS NOON SPELLMAN, Maryland JON HINSON, Mississippi LES AuCOIN, Oregon
DAVID W. EVANS, Indiana NORMAN E. D'AMOURS, New Hampshire STANLEY N. LUNDINE, New York JOHN J. CAVANAUGH, Nebraska MARY ROSE OAKAR, Ohio JIM MATTOX, Texas
BRUCE F. VENTO, Minnesota DOUG BARNARD, Georgia WES WATKINS, Oklahoma ROBERT GARCIA, New York MIKE LOWRY, Washington PAUL NELSON, Clerk and Staff Director MICHAEL P. FLAHERTY, General Counsel MERCER L. JACKSON, Minority Staff Director



SUBCOMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
THOMAS L. ASHLEY, Ohio, Chairman WILLIAM S. MOORHEAD, Pennsylvania J. WILLIAM STANTON, Ohio FERNAND J. ST GERMAIN, Rhode Island CHALMERS P. WYLIE, Ohio HENRY B. GONZALEZ, Texas STEWART B. McKINNEY, Connecticut
JAMES M. HANLEY, New York RICHARD KELLY, Florida
WALTER E. FAUNTROY, THOMAS B. EVANS, JR., Delaware
District of Columbia S. WILLIAM GREEN, New York
JERRY M. PATTERSON, California JIM LEACH, Iowa JOHN J. LAFALCE, New York ED BETHUNE, Arkansas
LES AuCOIN, Oregon DON RITTER, Pennsylvania
GLADYS NOON SPELLMAN, Maryland JAMES J. BLANCHARD, Michigan DAVID W. EVANS, Indiana STANLEY N. LUNDINE, New York MARY ROSE OAKAR, Ohio BRUCE F. VENTO, Minnesota WES WATKINS, Oklahoma ROBERT GARCIA, New York MIKE LOWRY, Washington GERALD R. MCMURRAY, Staff Director ROGER C. FAXON, Professional Staff Member DIANE E. DoRIus, Assistant Counsel ANTHONY VALANZANO, Minority Counsel
(iI)











LETTERS OF TRANSMITTAL


DECEMBER 1979.
To: All Members of the Committee on Banking, Finance and Urban
Affairs:
I hereby transmit for the use of the Committee on Banking, Finance, and Urban Affairs a revised Committee Print entitled. "Basic Laws and Authorities on Housing and Community Development." This compilation of laws and authorities is being updated in response to the numerous requests from Members of Congress and the public. The revision is made necessary by laws enacted, and numerous Executive Orders issued, since January 3, 1978. the date of our last revision.
The laws. Executive Orders. and other authorities contained in this Committee Print are those which authorize the functions and activities of the Department of Housing and Urban Development, or which are closely related to those functions and activities. They are arranged in accordance with their subject matter and are divided into the general categories of "Housing," "Community I)evelopment" and other "General Laws Applicable to Housing and Community Development Activities."
The Committee has been assisted in the preparation of this revised compilation by the Office of General Counsel in the Department of Housing and Urban Development. As in past years. the excellent technical assistance provided by this Office has proved invaluable.
Sincerely.
HENRY S. REUSS, Chairman.


DECEMBER 1979.
Hon. HENRY S. REUSS,
Chairman. Committee on Banking. Finance and U'rban Affairs. U.S. House of Representatives. War.shinqton. D.C.
DEAR 31R. CHAIRR\MAX : Transmitted herewith for your consideration is an extensive revision of the Committee publication "Basic Laws and Authorities on Housing and Community Development."
Due to the increased volume and the rapidly changing nature of laws and authorities relating to housing and community development, periodic revisions of this compilation of "Basic Laws" is necessary.
In transmitting this revised compilation. I would like to acknowledge the excellent assistance in its preparation we received from the Office of General Counsel, Department of Housing and Urban Development.
Sincerely.
THomrAs L. ASHLEY,
Jhair-man, Subcoimmittee on Housing and Community Development.
(Ill)























Digitized by the Internet Archive in 20-13

















http://archive.org/details/basiclawsauthoriOOunit-0













CONTENTS


Part I-Basic Laws and Authorities on Housing ?age
National Housing goals and reports---1
Department of HUD-General policy directives -------------------- 9
Organizational chart of HUD .................. 19
Local housing assistance plans-fund allocation 21
Fraud and false statements ----------------------------------23
Employment of lower income persons--24 Transfer of certain 221(d)(3) and 202 mortgages to 236 program_ 27 Sale of surplus Federal land for housing-27 Congressional Budget and Impoundment Control Act-- 29
Joint Funding Simplification Act--75
Department of Housing and Urban Development Independent
Agencies Appropriation Act, 1978-......................... 81
Supplemental Appropriations Act, 1977_-89 Appropriation Act-1975----------- 92
Supplemental Appropriations- 1975- 98
Appropriation Act-1974--100
Agriculture-Environmental and Consumer Protection Appropriation Act-Excerpts-1974----------------------------------107
Appropriations-Rent Supplement-1973--------------------- 107
Appropriations-Disaster Assistance-1973 ------------------- 107
Appropriations-Revolving Fund-1955-_-108 Appropriations Act-1977-110 Appropriations Act-Emergency Homeowners Relief-1976-.... 116 Supplemental Appropriations-1976 ------------------------ 125
Supplemental appropriations-1978 ---------------------------130
Appropriations Act-1979 ------------------------------------130
Miscellaneous administrative provisions-H U D ................... 138
Advisory committees_--140 Civil defense-vulnerability to attack--------------------------141
Jointly funded projects ------------------------------------- 141
Byrd amendment-HUD contracts -------------------------- 142
President's functions delegated to HUD ---------------------- 143
Special Assistant for Cooperative Housing ....................-145
Strikes by HUD employees----------------------------------145
Vacancy in Office of Secretary- .... .................. ....... 146
Handicapped-accessibility to buildings ------------- 147
Assigning emergency preparedness functit ns -------------------149
Executive Order 12049-Defense economic adjustment programs. 152
Federal Coordinating Council for Science, Engineering, and Tec hnology- ------------------------------------------------154
Delegation of Presidential functions----------------- --155
Coordination of Federal urban programs------ ........ 156
National Institute of Building Sciencs.--------------------- 159
Paperwork reduction --------------------------------------- 164
Inspector General ------------------------------------------ 165
National Housing Act-HUD--......-------.......... 173
Housing renovation and modernization-title 1 .----------------173
Mortgage insurance-title II------ 184
M iscellaneous-title V .....................................309
War housing insurance--title VI ------------ 320
Insurance for investment in rental housing-title VII- - -- 337 Armed services housing-title VIII -------------------------- 345
National defense housing- title IX- .......................... 358
Mortgage insurance for land development-title X-------....... 366
Mortgage insurance for group practice facilities-tifc XI_____ 372 FHA and VA interest rates------------------379
(v)






VI

Part I-Basic Laws and Authorities on Housing-Continued Pagei
Rehabilitation Act of 17-----------------382
Commission on mortgage interest rates------------------------385
Right of reepin------------------ 385
Builders warranty-----------------------------386
Equity skimming ------------------------------------------ 387
Closing of military bases-mortgage defaults ------------------ -887
Low rent public hungH D----------------391
Other HUD housing assistance porm-------------453
Section 8-Housing for large families ----------------------~ 452
Emergency homeowners rle----------------453
Housing for the edry------------------461
College huig---------------------469
Rehabilitation las-------------------479
Rent splmns--------------------485
Urban homesteading --------------------------------------- 491
Assistance for housing in Alsa--------------493
Public housing-territories----------------------------------- 495
Research, studies, demonstrations and solar energy--------503 Counseling---------------------------537
Training and technical assistance -----------------------------549
Prototype costs---------------------------553
International hosn-------------------557
Operating assistance for troubled multifamily housing projects 562 Public housing security ------------------------------------J568
State housing and development agencies_ -------- 571
Congregate housing----------------------- ----------------1 575
HUD Programs Regulating Housing------------------583

Interstate land sae---------------------0
Real estate settlement--------------------------615
Mobile home construction and safety standards---------627
Secondary market for mortgage las--------------645
Federal National Mortgage Association-FNMA---------------654
Government National Mortgage Association-GNMA-----------658
Federal Home Loan Mortgage Corp oration-FHLMC------698 Participation sales----------------------694
Interest rates-Federal-State cofit------------700
Rural, defense and veterans housing programs------------701
Department of Agriculture-FmHA---- 701
Department of Dfne------------------73$9
Veterans' Amnsrto------------------751
National financial institutions--- 776
Department of Treasury, ------------------------------------- 776
Investment powers----------------------785
Federal Home Loan Bak-----------------797
Federal savings and loan, associations..------------809
Federal financing bak------------------831
National housing patesis---------------839
Federal Reserve-Mortgage Dslsr------------844
financial privacy------------------------------------------ 848
Index ----------------------------------------(i)
Part II-Basic Laws and Authorities on Community Development:
Growth policy and plnig------------------863
New comnte---------------------863
Intergovernmental Cooperation Ac------------OMB Circular A-19--------------------------------------- 897
0MB Circular A9--------------------911
Executive Order 12044-Improving Government regulations,,---. 937
0MB Circular 947------------------Coastal Zone Management At---------------947
Comprehensive planning-section 701 -------------------------977
Clean air aedet-------------------985
Water Pollution Control At----------------991
Excerpt from Department of Energy Act------------997
Excerpts from Energy Conservation and Production Act-----997 Planned areawide deeomn---------------1025
Urban mass transportation-planning ------------------------ 1033
Urban and community impact analyses ----------------------! 11044
interagency coordinating council---------------------------110





VII

Part II-Basic Laws and Authorities on Community Development-Con. Page
Community development assistance programs-HUD -------------- 1047
Community development block grants -----------------------1047
Community Reinvestment --------------------------------- 1083
Neighborhood Reinvestment Corporation -------------------I 1085
Neighborhood Self-Help Development -----------------------I 1091
Livable cities---- ---------------------------------------- 1095
National Commission on Neighborhoods----------------------1099
Urban renewal ------- -------------------1108
Public works planning advances ----------------------------- 1151
Public facilities loans --------------------- 1155
Public facilities grants ------------------------ 1161
Model cities ------- --- ----------------------1167
Open space and urban beautification------------------------- 1175
Historic preservation------------------------------------- 1183
Lead-Based Paint Poisoning Prevention Act------------------ 1195
Property disposal-Los Alamos------------------------------ 1203
Community dIevelopment insurance programs-H UD- _______ --1227
Property and crime insurance-- .... . . . . . . -1227
Flood insurance....-----.------------.-- ------------- 1245
Rural and other non-Il UD community development programs -----1277
Consolidated Farmers Home Administration --------------- 1277
Rur al I)evelopment Act .... --1303
Hea dstar t, Action and Conununitv Economic )ev lopment-_ --- 1311 Regional action planning commissions -- - ---- - 1321
Appalachian Regional 1),velopment ------ - ------- --1327
Federal Advisory Council on Economic )evelopment----------- 1329
Part III-General Laws Applicable to Housing and C('omnunity Relocation Assistance ...---------.. 1335
C ivil right -s . .. .. .. .. .1365
National policy for the environment -----1389
Disaster assistance ---- 1425
Participation in Presidential an(d national committees .---------------- 1485
Glossary..------------..-.------------- -----------1525
I n d e x . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .( i)













701

PART II: BASIC LAWS AND AUTHORITIES
ON COMMUNITY DEVELOPMENT

NEW COMMUNITIES

EXCERPTS FROM HOUSING AND URBAN DEVELOPMENT ACT OF 1970
[Public Law 91-609, 84 St-at. 1791; 42 U.S.C. 4501]

TITLE VII-NATIONAL URBAN POLICY AND NEW
COMMUNITY DEVELOPMENT
SHORT TITLE AND STATE MENT OF PURPOSE
SEC. 701. (a) This title may be cited as "National Urban Policy 2 and New Community Development Act of 1970".*
(b)3 It is the policy of the Congress and the purpose of this title to provide for the development of a national urban policy and to encourage the rational, orderly, efficient, and economic growth, development, and redevelopment of our States, metropolitan areas, cities, counties, towns, and communities in predominantly rural areas which demonstrate a special potential for accelerated growth; to encourage the prudent use and conservation of energy and our natural resources; and to encourage and support development which will assure our communities and their residents of adequate tax bases, community services, job opportunities, and good housing in well-balanced neighborhoods in socially, economically, and physically attractive living environments.

PART A-DEVELOPMENT OF A NATIONAL URBAN POLICY 4

FINDINGS AND DECLARATION OF POLICY
SEC. 702. (a) 5 The Congress finds that rapid changes in patterns of urban settlement, including change in population distribution and economic bases of urban areas, have created an imbalance between the Nation's needs and resources and seriously threaten our physical and social environment, and the financial viability of our cities, and that
Sec. 601 (d) of the Housing and Community Development Act of 1977. Public Law 95-128, approved October 12, 1977. amended Title VII by deleting "URBAN GROWTH" and Inserting in lieu thereof "NATIONAL URBAN POLICY".
1 2Sec. 601 (a) of the Housing and Community Development Act of 1977, Public Law 945-128. approved October 12. 1977. 8"'entled siibsection (a) by striking out "Urban Growth" and Inserting In lieu thereof "National Urban Policy" 38Sec. 601 (a) of the Housing and Community Development Act of 1977, Public Law 95-128, annroved October 12. 1977, amended subsection (b) as set forth In the text. Sec. 601 (e) of the Housina and Community Develonment Act of 1977, Public Law 95-128. approved October 12, 1977, amended part A by deleting "Growth".
5 Sec. 601 (c) of the Housing and Community Development Act of 1977, Public Law 95-128, approved October 12, 1977, amended section 702 (a) as set forth In the text.


863





702 NEW COMM&UNITIES

the economic and social development of the Nation, the proper conservation of our energy and other natural resources, and the achievement of satisfactory living standards depend upon the sound, orderly, and more b balanced development of all areas of the Nation.
(b)'1 The Congress further finds that Federal programs affect the location of population, economic growth, and the character of urban development; -that such -programs frequently conflict and result in undesirable and costly patterns of urban development and redevelopment which adversely affect. the environment and wastefully use energy and other natural. resources; and that existing and future programs must be interrelated and coordinated within a system of orderly development and established priorities consistent with a national urban policy.
(c) To promote the general welfare and properly apply the resources of the Federal Government in strengthening the economic and social health of all areas of the Nation and more adequately protect the physical environment and conserve energy and other natural resources, the Congress declares that the Federal Government, consistent with the responsibilities of State and local government and the private sector, must assume responsibility for the development of a national urban policy which shall incorporate social, economic, and other appropriate factors. Such policy shall serve as a guide in making specific decisions at the national level which 'affect the pattern of urba~n development and redevelopment and shall provide a framework for development of interstate, State, and local urban policy. 2
(d )3 The Congress further declares that the national urban policy should(1) favor patterns of urbanization and economic development
and stabilization which offer a range of alternative locations and encourage the wise and balanced use of physical and human resources mn metropolitan and urban regions as well as in smaller
urban places which have a potential for accelerated growth;
(2) foster the continued economic strength of all parts of the
United States, including central cities, suburbs, smaller communities, local neighborhoods, and rural areas;
(3) 3 encourage patterns of development and redevelopment
which minimize disparities among States, regions, and cities;
(4) treat comprehensively the problems of poverty and employment (including the erosion of tax bases, and the need for better community services and job opportunities) which are associated with disorderly urbanization and rural decline,(5) develop means to encourage good housing for ;li Americans without regard to race or creed;
(6) refine the role of the Federal Government in revitalizing
existing communities and encouraging planned, large-scale urban
and new communty development
(7) strengthen the capacity o1 general governmental institutions to contribute to balanced urban growth and stabilization;
and
1Sec. 601 (b) of the Housing and Community Development Act of 1977, Public Law 95-428, approved October 12, 1977, amended section 702 (b) as 'set forth In the text.
2 Sec. 601 (a) (3) of. the Hdousing and Community Development Act of 1977, approved Octber12,197, amended section 702 (c) to read as set forth in the text.
SSee. 601 (b) () of the Housing and Community Development Act of 1977, Public Law 95-128, approved October 12, 1977, amended subsections 702 (d), (d) (3), and (d) (8) to read as set forth in the text.

884,





NEW COMMUNITIS 703

(8) 1 facilitate increased coordination in the administration of
Federal programs so as to encourage desirable patterns of urban
development and redevelopment, encourage the prudent use of energy and other natural resources, and protect the physical
environment.

NATIONAL URBAN POLICY REPORT z
SEC. 703.2 (a) The President shall transmit to the Congress during February 1978, and during February of every even-numbered year thereafter, a Report on Natonal Urban Policy which shall contribute to the forziulation of such a policy and in addition shall include-(1) information, statistics, and significant trends relating to the
pattern or urban development for the preceding two years ;3
(2) a summary of significant problems facing the United States
as a result of urban trends and developments affecting the wellbeing of urban areas;4
(3)5 an examination of the housing and related community
development problems experienced by cities undergoing a growth
rate which equals or exceeds the national average;
(4) 3 an evaluation of the progress and effectiveness of Federal
efforts designed to meet such problems and to carry out the
national urban policy;
(5)1 an assessment of the policies and structure of existing and
proposed interstate planning and developments affecting such
policy;
(6)5 a review of State, local, and private policies, plans, and
programs relevant to such policy;
( ) 5 current and foreseeable needs in the areas served by policies, plans, and programs designed to carry out such policy, and
the steps being taken to meet such needs; and
(8) 5 recoiiinendations for programs and policies for ca'rvilig
out such policy, including such legislation and administrative
actions as may be deemed necessary and desirable.
(b) The President may transmit from time to time to the Congress supplementary reports on urban growth which shall include such supplementary and revised recommendations as may be appropriate.
(c) To assist in the preparation of the National Urban Policy Report 2 and any supplementary reports, the President may establish an advisory board, or seek the advice from time to time of temporary advisory boards, the members of whom shall be drawn from among

See. 601 (b) (4) of the Housing and Community Development Act of 1977. Public Law 95-128, approved October 12, 1977, amended subsections 702 (d), (d) (3), and (d) (8) to read as set forth in the text.
2Sec. 601(c) amended Reetion 703(a) by deleting the section heading which read "URBAN GROWTH REPORT" and inserting in lieu thereof "NATIONAL URBAN POLICY REPORT"; and also by deleting the material preceding paragraph (1) of subsection (a) and inserting in lieu thereof the material as set forth in the text. See. 601 (c) of the Housing and Community Development Act of 1977. Public Law 95-128. approved October 12, 1977, amended section 703(a)(1) to read as set forth in the text.
Sec. 601(c) of the Housing and Community Development Act of 1977. Public Law 95-128. approved October 12, 1977, deleted "growth" after the word "urban" and inserted "affecting the well-being of urban areas" before the semicolon at the end of paragraph (2). Sc. 601 (c) of the Housing gnd Community Develonment Act of 1977. Public Law 95-128, approved October 12, 1977, amended section 703(a) by inserting a new paragraph (3) and by redesignating paragraphs (3) through (7) as paragraphs (4) through
(8). respectively.


85





710 NEW COMMUNITIES

private citizens familiar with the problems of urban areas and from among Federal officials, Governors of States, mayors, county officials, members of State and local legislative bodies, and others qualified to assist in the preparation of such reports.
PART B-DVELOPMENT or NEW COMMUNriS
FINDINGS AND PURPOSE
SE~C. 710. (a) The Congress finds that this Nation is likely to experience during the remaining years of this century a population increase of about seventy-five million persons.(b) The Congress further finds that continuation of established patterns of urban development, together with the anticipated increase in population, will result in (1) in~effcient and wasteful use ofr land r~esources which are of national economic and environmental importance;
(2) destruction of irreplaceable natural and recreational resources and increasing pollution of air and water; (3) diminished opportunity for the private homebuilding industry to' operate at' its highest potential capacity in providing good housing needed to serve the expanding population and to replace substandard housing; (4) costly and inefficient public facilities and services at all levels of government; (5) unduly limited options for many of our people as to- where they may live, and the types of housing and environment in which they may live; (6) failure to make the most economic. use of present and potential resources of many of the Nation's smaller' cities and towns, including those in rural and economically depressed areas, 'and decreasing employment and business and opportunities for their residents; (7) further lessening of employment andi business opportunities for the residents of central cities and of the ability of such cities to retain a tax base adequate to support vital services for all their citizens, particularly the poor and disadvantaged; (8) further separation of people within the metropolitan areas by income and by race;
(9) further increases in the distances between the places where people live and where they work and find recreation; and (10) increased cost and decreased effectiveness of public and private facilities for urban transportation.
(c) The Congress further finds that better patterns of urban development and revitalization are essential to accommodate future population growth; to prevent further deterioration of the Nation's physical and social environment; and to make positive contributions to improving the overall qualit-y of life within the Nation.
(d) The Congress further finds that the national welfare requires the encouragement of ..well-planned, diversified, and economically sound new communities. including major additions to existing communities, as one of several essential elements of a consistent national program for bettering patterns of development and renewal.
(e) The Congress further finds that desirable new community development on a significant national scale has been prevented by- difficul ties in (1) obtaining adequate financing at moderate cost for enterprises which involve large initial capital investment, extensive periods before investment can be returned, and irregular patterns of return; (2) the
I See. 601 (c) of the Hove~inz and Community Deve-lopment Act of 1977. Pliblic Law 95-128. approved October 12, 1977, amended section 703 to read as set forth In the text.





NEW C03MUNMES 711

timely assembly of sufficiently large sites in economically favorable locations at reasonable cost; and (3) making necessary arrangements, among all private and public organizations involved, for providing site and related improvements (including streets, sewer and water facilities, and other public and community facilities) in a timely and coordinated manner.
(f) It is, therefore, the purpose of this part to provide private developers and State and local public bodies and agencies (including regional or metropolitan public bodies and agencies) with financial and other assistance necessary for encouraging, the orderly development of well-planned, diversified, and economically sound new communities, including major additions to existing communities, and to do so in a manner which will rely to the maximum extent on private enterprise; strengthen the capacity of State and local governments to deal with local problems; preserve and enhance both the natural and urban environment; increase for all persons, particularly members of minority groups, the available choices of locations for living. and working, thereby providing a more just economic and social environment; encourage he fullest utilization of the economic potential of older central cities, smaller towns, and rural communities; assist in the efficient production of a steady supply of residential, commercial, and industrial building sites at reasonable cost; increase the capability of all segments of the home-building industry, including both small and large producers, to utilize impro v ed technology in producing the large volume of well-designed, inexpensive housing needed to acconimodate population growth; help create neighborhoods designed for easier access between the places where people live and the places where they work and find recreation; and encourage desirable innovation in meeting domestic problems whether physical, economic, or social. It is also the purpose of this part to improve the organizational capacity of the Federal Government to carry out programs of assistance for the development of new communities and the revitalization of the Nation's urban areas.
DMI,=OWS

SEC. 711. As used in this part(a) The term "new community development program means a program which is intended to result in a newly built community or a major addition to an existing community and which meets the eligibility standards set forth in section 712.
(b) The term "private new community developer" means any private entity organized in a form satisfactory to the Secretary for carrying out one or more new community development programs. 61 (c) The term "State land development agency" means any State
or local public body or agency with authority to act as developer in carrying out one or more new community development programs.
(d) The term "State" means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of any of the foregoing.
(e) The term "local public body or agency" means any public body or agency, including a political subdivision, created by or under the laws of a State or two or more States, or a combination* of such bodies or agencies.

867





1712 NEW CO2MUNrIES
(f) The term "land development" means the process of clearing and grading land, making, installing, or constructing waterlines and water supply installations, sewerlines and sewage or waste disposal I installations, steam, gas, and electric lines and installations, roads, streets, curbs, gutters, sidewalks, storm drainage facilities, community or neighborhood central heating or air-conditioning systems,' and other installations or work, whether on or off the site, which the Secretary deems necessary or desirable to prepare land for residential, commercial, industrial, or other uses, or to provide facilities for public or common use. The term "land development" includes the construction of public facilities, but does not include the construction of any other building unless it is (1) needed in connection with a water supply or sewage or waste disposal 1 installation, a community or neighborhood central heating or air-conditioning system,1 or a steam, gas, or electric line or installation, or (2) is to be owned and maintained by residents of the new community under joint or cooperative arrangements approved by the Secretary.
(g) The term "actual cost" means the costs (exclusive of rebates or discounts) incurred by a new community developer in carrying out the land development assisted under this Act. These costs may include amounts paid for labor, materials, construction contracts, land planning engineers' and architect's fees surveys, taxes, and interest during development, organizational and legal expenses, such allocation of general overhead expenses as are acceptable to the Secretary, and other items of expense incidental to development which may be approved by the Secretary. If the Secretary determines that there is an identity of interest between the developer and a contractor, there may be included as a part of actual cost an allowance for the contractor's profit or risk an amount deemed reasonable by the Secretary.
(h) The term "Secretary" means the Secretary of Housing and Urban Development.
(i) The term "New Community Development Corporation" 2 means the corporation established within the Department of Housing and Urban Development under section 729.
E.LIGIBLE NW COM1UNTY DEVELOPMENT
SEc. 712. (a) A new community development program is eligible for assistance under this part only if the Secretary determines that the program (or the new community it contemplates)(1) will provide an alternative to disorderly urban growth
helping preserve or enhance desirable aspects of the natural and urban environment or so improving general and economic conditions in established communities as to help reverse migration
from existing cities or rural areas;
(2) will be economically feasible in terms of economic base
or potential for economic growth;
1See. 803(e) (1) of Housing and 'Community Development Act of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, substituted the words "sewage or waste disposal" for "sewage disposal" in the first and second sentences; Section 803(e) (2) of this Act added the words "community or neighborhood central heating or air-conditioning systems," after "storm drainage facilities," in the first sentence: and Section 803(e) (3) of this Act -added the words ", a community or neighborhood central heating or air-conditioning system," after "disposal installation" in the second sentence.
2 See. 803 (a) (1) of Housing and Community Development Act of 1974, Public Law 93-383, 88 Stat. 633, sub tituted "New Community Development Corporation"' for "Community Development Corpbration" each place it appears In this Port B.

868





NEW COM&UNITES 713

(3) will contribute to the welfare of the entire area which will
be substantially affected by the program and of which the land
to be developed is a. part:
(4) is consistent with comprehensive planning, physical and
social, determined by the Secretary to provide an adequate basis for evaluating the new community development program in relation to other plans (including State, local, and private plans) and activities involving area population, housing and development trends, and transportation, water, sewerage, open space,
recreation, and other relevant facilities;
(5) hias received all governmental reviews and approvals
required by State or local law, or by the Secretary;
(6) will contribute to good living conditions in the community,
and that suich community will be characterized by well balanced and diversified land use patterns and will include or be served by adequate public, community, and commercial facilities includingg facilities needed for education, health and social services, recreation, and trans portati on) deemed satisfactory by the Secretary;
(7) makes substantial provision for housing wiithin the means
of persons of low and moderate income and that such housing will constitute an appropriate proportion of the community's housing
supply; and
(8) will make significant use of advances in design and technology with respect to land utilization, materials and methods of construction, and the provision of community facilities and
services.
(b) A new community development program approved for assistance under this part shall be undertaken by a private newv community developer or State land development agency approved by the Secretarv on the basis of financial, technical. and administrative ability which demonstrates capacity to carry out the program with reasonable assurance of its completion.
GUARA NTEES
SEC. 713. (a) The Secretary (acting through the New Community Development Corporation), is authorized to guarantee, and enter into commitments to guarantee, the bonds, debentures, notes, and other obligations issued by or on behalf of private new community developers and State land development agencies for the purpose of financing real property acquisition and land development and to compensate for the use of real property or the removal of liens or encumbrances on such property, pursuant to the new community development programs approved by the Secretary. The Secretary may make such guarantees and enter .into such commitments upon such terms and conditions as he may prescribe consistent with the limitations and conditions contained in section 716; except that no obligation of any State land development agency shall be guaranteed under this section if the income from such obligation is exempt from Federal taxation. rThe Secretary is authorized to make grants to any State land development agency the obligations of which are guaranteed under this section in amounts equal to 30 per centum of the interest paid on such obligations.,
See. 803(c) of H~ousing and community Development Act of 1974. Public Law 93-383. 88 Stat. 633, approved August 22. 1974. amended the last sentence of section 713(a).
869





9714 NEW COMMUNITIES
(b) The full faith and credit of the United States is pledged to the payment of all guarantees made under this section with respect to principal, interest, and any redemption premiums. Any such guarantce made by the Secretary shall be conclusive evidence of the eligibility of the obligations for such guarantee, and the validity ofany guarantee so made shall be incontestable in the hands of a holder of th e guaranteed obligation.
(c) The outstanding bonds, debentures, notes or other obligations guaranteed under this section with respect to a single new community development program shall involve a principal obligation in an amount (1) in the case of a State land development agency, not exceed"i 100 per centum of the sum of the Secretary's estimate of the value of the real property before development, and his estimate of the actual cost of the land development, or (2) in the case of a private new community developer, not exceeding the sum of 80 per centum of the Secretary's estimate of the value of the real property before development and 90 per centum of his estimate of the actual cost of the land development.
(d) The outstanding principal obligations guaranteed under this section with respect to a single new community development program shall at no time exceed $50,000,000.
(e) The aggregate of the outstanding principal obligations guaranteed under this section shall at no time exceed $500,000,000, which amount shall be increased by $195,500,000 on July 1,1973.1
LOANS
SEC. 714. (a) The Secretary (acting through the New Community Development Corporation) is authorized, subject to the limitations and conditions contained in section 716, to make and enter into agreements to make loans to or on behalf of private new community developers and State land development agencies for the purpose of assisting them to make interest payments on indebtedness incurred by them to finance new community development programs approved by him. Loans under this section shall be in amounts which do not exceed the amount of interest the Secretary estimates is payable on indebtedness attributable to land acquisition or land development and shall be made only with respect to interest payments on indebtedness outstanding during an initial development period (not to exceed fifteen years) which the Secretary estimates to be prior to the time when land marketing activity is of sufficient volume to permit continued development under the new community development program without the benefit of further loans under this section.
(b) The Secretary shall require that loans under this section shall be repaid, with interest and on terms and conditions satisfactory to him, commencing at such time as development progress and marketing under the new community development program permit such repayment, but not later than fifteen years after the date the loan is made. Such loans shall bear interest at a rate specified by the Secretary which shall not be less than a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with
1 Sec. 12 of Public Law 93-117. 87 Stat. 421. approved October 2, 1973. increasing authorization by $195,500,000 on July 1, 1973.

870





NEW COMMUNITIES 716

remaining periods to maturity comparable to the average maturities of such loans, plus one-eighth of 1 per centum.
(c) The principal amount of the loans outstanding at; any time under this section with respect to a single new community development program shall not exceed $20,000,~000.
(d)" The aggregate principal amount of the loans outstanding under this section shall at no time exceed $240,000,000.
PUBLIC SERVICE GRANTS
SEC. 71.5. In addition to providing assistance under the preceding sections, the Secretary (acting through the New Community Development Corporation) may make public service grants (in such amounts and on such terms and conditions as 'he deems appropriate) to a State land development agency or to the State or local public body having responsibility for providincz the services involved to cover the cost of providing diirina an initial periodic (not exceeding three years) essential public services (including educational, health, and safety services) which the Secretary deems necessary adequately to serve the needs of the residents of the development prior to completion of permanent arrangements for the provision of such services. There are authorized to be appropriated such sums as may be necessary to carry out the purposes of this section.

LIMITATIONS ON GUARANTEES AND LOANS
SEc. 716. (a) No guarantee or loan shall be made under this part unless the Secretary has determined that the new community development program represents an acceptable financial risk to tlie United States, taking into consideration (1) the financial and security interests of the United States, including the manner in which the developer proposes to finance and schedule land acquisition, land development, and marketing, and (2) the public purposes of this part and the special problems involved in financing new communities, including (i) the large amount of initial capital required to finance sound new communities, (ii) the extended period before initial returns can be expected, and (iii) the irregular pattern of cash returns characteristic of this type of development.
(b) The Secretary shall take such steps as he considers reasonable to assure that bonds, debentures, notes, and other obligations guaranteed, or with respect to which interest loans are made, under this part will(1) be issued to investors approved by, or meeting requirements prescribed by, the Secretary, or if an offering to the public is contemplated, be underwritten upon terms and conditions
approved by the Secretary;
(2) bear interest at a rate satisfactory to the Secretary;
(3) contain or be subject to repayment, maturity, and other
provisions satisfactory to the Secretary; and
(4) contain or be subject to provisions with respect to the protection of the security interests of the United States, including any provisions deemed appropriate by the Secretary relating to subrogation, liens, and releases of liens, payment of taxes, cost certification procedures, escrow or trusteeship requirements or
other matters.

871
45-705 0 79 2





J 718 NEW CONNUNITES

REVOLVING FUND
SEC. 717.. (a) The Secretary is authorized to establish a revolving fund to provide for (1) the timely payment of any liabilities incurred as the result of guarantees or grants under section 713; (2) making loans authorized under this part; (3) payment of obligations issued to the Secretary of the Treasury under subsection (b) of this section; and (4) any other program expenditures, including administrative and nonadministrative expenses. Such revolving fund shall be comprised of (1) receipts from fees and charges; ( 2) recoveries under security, subrogation, and other rights; (3) repayments, interest income, and any other receipts obtained in connection with guarantees or loans made under this part; (4) proceeds of the obligations issued to the Secretary of the Treasury pursuant to subsection (b) of this section; and (5) such sums, which are hereby authorized, to be* appropriated, as may be required for the payment of the obligations issued to the Secretary of the Treasury for the purpose of making grants to State land development agencies under section 713, and for other purposes under this part. Money in the revolving fund not currently needed for the purpose of this part shall be kept in cash on hand or on deposit, or invested -in obligations of the United States or guaranteed thereby, or in obligations, participations, or other. instruments which are lawful investments for fiduciary, trust, or public funds.
(b) The Secretary may issue obligations to the Secretary of the Treasury in an amount sufficient to enable the Secretary to carry out the functions authorized by this part. The obligations issued under this subsection shall have such maturities and bear such rate or rates of interest as shall be determined by the Secretary of the Treasury. The Secretary of the Treasury is authorized and directed to purchase any obligations so issued, and for that purpose he is authorized to use as a C:Ipublic debt transaction the proceeds. from the sale of any securities issued under the Second Liberty Bond Act, and the purposes for which securities may be issued under that Act are extended to include purchases of the obligations, hereunder.
(c) Notwithstanding any other provision of law relating to the acquisition, handling, improvement, or disposal of real and other property by the United States, the Secretary shall have power, for the protection of the interests of the fund authorized under this section, to pay out of such fund all expenses or charges in connection with the acquisition, handling, improvement, or disposal of aniy property, real or personal, acquired by him as a result of recoveries under security, subrogation, or other rights.

SUPPLEMENTARY GRANTS FOR PUBLIC FACILITiE
Sx~c. 718. (a) The Secretary is authorized to make supplementary grants to any State, local public body or agency, or other entity1 carrying out a new community assistance project, as defined in suibsection (c), if the Secretary determines that such project is necessary or desirable for carrying out a new community development program. In no case shall any grant under this section exceed 20 per centum of the cost of the new community assistance project for which the grant
'The words "State, local public body or agency, or other entity" were substituted for the words "State or local public body or agency" by me. 7 of Public law 92-213, approved December 22, 1971. 85 Stat. 775, 776.
872





NEW C03MUNITIES 719

is made; and in no case shall the total Federal contributions to the cost of such project be more than 80 per centum.
(b) In carrying out his authority under this section, the Secretary shall, with respect to any new community assistance project assisted by grants administered 1; a Federal department or agency other than the Department of Housing and Urban Development, consult with such department or agency concerning the project; and he shall, for the purpose of subsection (a), accept the certification of such department or agency as to the cost of such project.
(c) For the purposes of this section, a "new community assistance project" is a project assisted by grants under section 3 of the Urban Mass Transportation Act of 1964; section 120 (a) of title 23, United States Code; section 19 of the Airport and Airway Development Act of 1970; title VI of the Public Health Service Act; title II of the Library Services and Construction Act; section 5 of the Land and Water Conservation Fund Act of 1965; title VII of the Housing Act of 1961; section 702 or 703 of the Housing and Urban Development Act of 1965, section 8 of the Federal Water Pollution Control Act; section 306 (a) (2) of the Consolidated Farmers Home Administration Act; section 103 or 104 of the Higher Education Facilities Act of 1963; or section 101 (a) (1) of the Public Works and Economic Development Act of 1965 with respect to projects of a type eligible for assistance under any of the other provisions of law listed in Ohis subsection, or a project or portion of a project consisting of the purchase, renovation, or construction of facilities, the purchase of land, or the acquisition of equipment or works of art assisted by contracts or grants under section 5 of the National Foundation on the Arts and the Humanities Act of 1965.1
(d) There are authorized to be appropriated for supplementary grants under this section not to exceed $36,000,000 for the fiscal Vear ending June 30, 1971, not to exceed $66,000,000 for each of the Ascal years ending June 30, 1972, and June 30, 1973, and not to exceed such sums as may be necessary for any fiscal year commencing after June 30, 1973. Any amount so appro rated shall remain available until expended, and any amount torized for any fiscal year but not appropriated may be appropriated for any succeeding fiscal year. In addition, the amounts authorized to be appropriated for grants under section 412 of the Housing and Urban Development Act of 1968 and the amounts appropriated thereunder shall be available for calryin out this section and shall remain available until appropriated ani expended.
TECHNICAL ASSISTANCE
SEC. 719. The Secretary is authorized to provide, either directly or by contract or other arrangements, technical assistance to private new community developers and State land development agencies, or State and local public bodies and agencies to assist them in connection with planning -and carrying out new community development programs.
I 'Sec. 803(d) of Honsing and Commimity Development Act of 1974, Public Law 93-383, 88 Stat. 6 3, approved August 22, 1974 amended section 718 (c)



873





5720 NEW COMMUrNITIZS

SPECIAL PLANNING ASSISTANCE
SEC. 720. (a) The Secretary may, until October 1, 1979,' enter into agreements wih private new community developers and State land development agencies to provide financial assistance, in amounts not exceeding two-thirds of the estimated cost of such work, for planning new community development programs, including planning work which he determines will have special value in assuring that new community development programs (1) will be fully responsive to social or environmental problems related to the public purposes of new community development, or (2) will adequately provide for, or encourage the use of, new or advanced technology in support of program objectives.
(b) The Secretary shall enter into agreements under this section only with respect to new community development programs which had been approved or are being actively considered for approval, having met such initial feasibility criteria as the Secretary may have prescribed, and, in the case of private new community developers, only with respect to planning work which the Secretary determines
is in excess of that which would ordinarily be needed to establish final market, financial, and engineering feasibility for programs or projects of similar size and scope not subject to the special purposes of this part. The financial assistance extended pursuant to such agreements shall be subject to such terms and conditions, which,, in the case of private new community developers, may include provisions for repayment where appropriate, as the Secretary may prescribe.
(c) There are authorized to be appropriated for financial assistance under this section not to exceed $5,000,000, which limit shall be increased by $5,000,000 on July 1, 1971. Any amount appropriated under this section shall remain available until expended.
FEES AND CHARGES
SEC. 721. The Secretary is authorized to establish and collect fees for guarantees under this part, and may make such charges in connection with 'guarantees, loans, and technical and other assistance under this part as he considers reasonable for the analysis of applications, appraisals, inspections, and other activities related to such assistance. On or before March 1, 1973, the Secretary, shall make a report to the Congress concerning the fees and charges for guarantees under this part that he estimates will be adequate to provide income sufficient for a self-supporting -guarantee program and concerning the relationship of other charges to costs incurred under this part.
ENCOURAGEMENT OF SMALL BUILDERS
SEC. 722. The Secretary shall adopt such requirements as he deems necessary to assure that new community assistance under this part will ( 1) help maintain a diversified, local homebuilding industry;
(2) increase the capability of all segments of the homebuilding
I See. 19 of the Housing Authorization Act of 1976, Public Law 94-375, approved August 8, 1976, 90 Stat. 1067, aniended section 720(a) of the Housing and Urban Development Act of 1970 by striking "June 30. 1975"1 and inserting In lieu thereof "October i, 1977"; section 208 of the Housing and Community Development Act of 1977, Public Law 95-128, approved October 12, 1977, amended section 720 by deleting 1977 and Inserting in lieu thereof "1978."1 Extended further by Sec. 306, Housing and Community Development Amendments of 1979, Public Law 95-557, 92 Stat. 2080, approved October 31, 1978.

874





-NEW- MMUNITIES 723

industry, including both small and large producers, to participate, through an increased supply of building sites at reasonable costs and through improved technology, in producing the needed, large volume of well-designed, inexpensive housing; and (3) encourage broad participation by the homebuilding industry, particularly small builders.
NEW COMMUNITY DEMONSTRATION PROJECTS
SEC. 723. Upon s ecific authorization by the President and under applicable Federal faw respecting the use of federally owned lands, the Secret ry, utilizing funds made available for the purpose by the Congress, is authorized to plan and carry out large-scale projects demonstrating the development of new communities, which shall be designed to contribute to the achievement of the purposes of this part and serve as models for new community developments which could feasibly be carried out by other public and private developers.
REAL PROPERTY TAXATION
SEC. 724. Nothing in this part shall be construed to exempt any real property that may be acquired and held by the Secretary as a result of the exercise of lien or subrogation rights from real property taxation to the same extent, according to its value, as other real property is taxed.
AUDIT BY GENERAL ACCOUNTING OMCE
SEC. 725. Insofar as they relate to any guarantees, loans, or grants made pursuant to this part, the financial transactions of recipe nts of Federal assistance may be audited by the General Accounting Office under such rules and regulations as may be prescribed by the Comptroller General of the United States. The representatives of the General Accounting Office shall have access to all books, accounts, records, reports, files, and all other papers, things, or property belonging to or in use by such recipients pertaining to such financial transac6ons and necessary to facilitate the audit.'

GENERAL PROVISIONS
SEC. 726. In the performance of, and with respect to, the functions, powers, and duties vested in him by this part, the Secretary, in addition to any authority otherwise vested in him, shall(1) have the functions, powers, and duties (including the
authority to issue rules and regulations) set forth in section 402, except subsections (c) (2), (c) (4), (d), and (f), of the Housing Act of 1950: Provided, That subsection (a) (1) of section 402 shall not apply with respect to functions, powers, and duties
under section 719 of this part;
(2) have the power, notwithstanding any other provision of
law, in connection with any assistance under this part, whether before or after any default, to provide by contract for the extinguishment upon default of any redemption, equitable, legal, or other right, title, or interest of the private new community developer or State land development agency in any mortgage, deed, trust, or other instrument held by or on behalf of the Secre875





727 NEW C0O MTES

tary for the protection of the security interests of the United
States;. and
(3) have the power to foreclose on any property or commence
any action to protect or enforce any right conferred upon him by law, contract, or other agreement, and bid for and purchase at any foreclosure or other sale any property in connection with which he has provided assistance pursuant to this part. In the event of any such acquisition, the Secretary may, notwithstanding any other provision of law relating to the acquisition,. handling, or disposal of -real property by the United States, complete, administer, remodel and convert, dispose of, lease, and otherwise deal with, such property. Notwithstanding any other provision of law, the Secretary shall also have power to. pursue to final collection by way of compromise or otherwise all claims acquired by him in connection with 'any security, subrogation, or other rights
obtained by him in administering this part.

TECHNICAL AND CONFORMING PROVISIONS
SEC. 727. (a) No bonds, debentures, notes, or other obligations shall be guaranteed under title IV of the Housing and Urban Development Act of 1968 after the effective date 1 of this part except pursuant to an offer or commitment to guarantee, or a project approval, made before that date: Provided, That a new community developer whose new community development project has, as of the effective date of this part, been approved by the Secretary under title IV shall be eligible with respect to obligations thereafter issued by him for guarantee assistance as authorized either by title'IV or by this part, and such guarantee assistance may be given without a further determination by the Secretary under sections 712 and 716 (a) of this part. If the Secretary finds that an applicant for title IV assistance has submitted complete financial and internal development~ plans and related materials pursuant to section 404 of such title IV, or major elements of such plans or materials, the Secretary may accept such plans and materials or major elements, respectively, as fully or partially satisfying the requirement under this part for the submission of a new commu nity development program. All receipts, funds, or other assets and all liabilities of the revolving fund established pursuant to section 407 of the Housing and Urban Development Act of 1968 includingg liabilities arising under guarantees made pursuant to such title TV and this section) shall become and be assets and liabilities of the revolving fund established pursuant to this part, as if such assets and liabilities had been received or incurred pursuant to this part, and shall be paid over, held, and accounted for accordingly.

(f) All laborers and mechanics employed by contractors or subcontractors in land development assisted under this -part shall be paid wa ges at rates not less than those previi 'ng on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a276a-5). No assistance shall be extended under this. part for any land
1December 31, 1970.
876






NEW COMM&UNITES 728

development without first obtaining adequate assurance that these labor standards will be maintained upon the construction work involved in such program. The Secretary of Labor shall have, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267), and section 2 of the Act of June 13, 1934 (40 U.S.C. 276c).
(g) With respect to any obligation issued by or on behalf of any State land development agency for which the issuer has elected to receive the benefits of the guarantees provided under this part, the interest paid on such obligation and received by the purchaser thereof (or his successor in interest) shall be included in gross income for the purposes of chapter 1 of the Internal Revenue Code of 1954.
JOINT FUNDING
SiEC. 728. Funds made available under any Federal assistance program for projects or activities approved as part of, or pursuant to, a new community development program may be used jointly with funds made available for such projects or activities under any other Federal assistance program, subject to regulations prescribed by the President. Such regulations may include provisions for common technical or administrative requirements where varying or conflicting provisions of law would otherwise apply, for establishing joint management funds and common non-Federal shares, and for special agreements, or delegations of authority, among different Federal, agencies in connection with the supervision or "administration of assistance. Such regulations shall in any case include appropriate criteria and procedures to assure that any special authorities conferred, which are not otherwise provided for by law, shall be employed only as necessary to promote effective and efficient administration and in a manner consistent with the protection of the Federal interest and program purposes or statutory requirements of a substantive nature. For purposes of this section, the term "Federal assistance program" has the same meaning as under the Intergovernmental Cooperation Act of 1968.

NEW COMMU1CNIETY DEVELOPMENT CORPORATION'
SEC. 729 (a) There is hereby created within the Department of Housing and Urban Development a body corporate to be known as the Community Development Corporation which shall carry out its functions subject to the direction-and supervision of the S'ecretary.
(b) The Corporation shall have a Board of Directors (hereinafter referred to as the "Board") which shall consist of seven members 2 as follows:
(1) The Secretary, who shall be Chairman of the Board;
(2) one person, to be appointed by the President by and with
the advice and consent of the Senate, who shall serve at the pleasure of the President, shall be the General Manager of the Cor' See. 803(a) (2) of Housing and Community Development Act of 1974. Ptiblic Law 93-383, 88 Stat. 633, approved Auguist 22, 1974, inserted "NEW" before eMUIY In this heading."CMUIY 2'Sec. 803 (b) of Housing aind community DeveloPmont Act of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, substituted "seven members" for "five members".

877






p735 NEW COMM1UNTIE
poration, serving as its chief executive officer under the Board's general direction, and shall receive compensation at the -ate provided for positions at level IV of the Executive Schedule (5
U.S.C. 5315);- and
(3) five persons,' to be appointed by the'Secretary, who shall
serve at his pleasure, but not more than one such person shall be selected from among officers or employees of the Department of
Housing and Urban Development.
Members of the Board who are regular, full-time officers or employees of the Federal Government shall receive no additional compensation for their services as Board members. Other members shall, receive for their services as members, when engaged in'the performance of their duties, the per diem equivalent to the rate for level IV of the Federal Executive Salary Schedule under section 5315 of title 5 of the United States Code. Each member of the Board shall be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of such title for persons in the Government service employed intermittently.
(c) -The functions of the Secretary with respect to guarantees and loans in aid of new community development under this part shall be administered through the Community Development Corporation, and the Corporation shall perform such additional functions, powers, and duties as the Secretary may prescribe from time to time.
PART C-DEVELOPMENT OF RATIONAL URBAN GROWTH PArrERNs,
STATE AND REGIONAL PLANNING
SEC. 73592
PART D-DEVELOPMENT OF INNER CITY AREAS
PURPOSE
SEC. 740. It is the purpose of this part, to provide our cities, which urgenitly'need to augment their inventories of housing (particularly housing for low and moderate income families) and to find sites for essential public facilities and additional sources of employment, but have virtually no vacant land upon which to build, with a program which will make possible the more rational use of urban land and space that is currently occupied by industrial or commercial uses which though not physically blighted are functionally obsolete or uneconomic, or of land and space that is not usable in its present state because of natural hazards or inadequate development, so that in appropriate cases major rebuilding projects (including new communities in town) may be undertaken without major residential clearance activities and -with minimal displacement.
AMENDMENTS TO TITLE I OF THE HOUSING ACT OF 194 9
SEC. 741 0
Approved December 31,1970.
Sa5'c. 803 (b) (2) of Housing and Community Development Act of 1974. Public Law 93-383, 88 Stat. 833, approved. August 22, 1974,, substituted "five persons"l for "three persons."
2 See see. 701 (J), Housing Act of'1954.
38See secs. 103 (a) (1), 110 (c) (1), and 110 (c) (7), Housing Act of 1949.
878





NEW COMMUNTIES 401

HOUSING AND URBAN DEVELOPMENT ACT OF 1968
[Public Law 90-448, 82 Stat. 476, 513; 42 U.S.C. 3901 et seq.]
TITLE IV-GUARANTEES FOR FINANCING NEW
COMMUNITY LAND DEVELOPMENT
CITATION
SEC. 401. This title may be referred to as the "New Communities Act of 1968".
PURPOSE
SEC. 402. It is the purpose of this title, by facilitating the enlistment of private capital in new community development, to encourage the development of new communities that(1) contribute to the general betterment of living conditions
through the improved quality of community development made possile by a consistent design for the provision of homes, commercial and industrial facilities, public and community facilities,
and open spaces;
(2) make substantial contributions to the sound and economic
growth of the areas in which they are located;
(3) provide needed additions to the general housing supply; (4) provide opportunities for innovation in housing and community development technology and in land use planning;
(5) enlarge housing and employment opportunities by increasing the range of housing choice "and providing new investment
opportunities for industry and commerce;
(6) encourage the maintenance and growth of a diversified
local homebuilding industry; and
(7) include, to the greatest extent feasible, the employment of
new and improved technology, techniques, materials, and methods in housing construction, rehabilitation, and maintenance under programs administered by the Department of Housing and Urban Development with a view to reducing the cost of such construction, rehabilitation, and maintenance, and stimulating the increased and sustained production of housing under '-Such
programs.
GUARANTEE AUTHORITY
SEC. 403. To carry out the purposes of this title the Secretary is authorized to guarantee, and enter into commitments to guarantee, the bonds, debentures, notes, and other obligations issued by new community developers to help finance new community development projects. The Secretary may make such guarantees and enter into such commitments, subject to the limitations contained in sections 404 and 405, upon such terms and conditions as he may prescribe, taking into account (1) the large initial capital investment required to finance sounit new communities, (2) the extended period before initial returns on this type of investment can be expected, (3) the irregular pattern of cash returns characteristic of such investment, and (4) 'the financial and security interests of the United States in connection with guarantees made- under this title.


879





1404 M~W COMMdUNITIES

ELIGIBLE NEW COMMUNITY DEVELOPMENT
SEC. 404. No guarantee or commitment to guarantee may be made under this title unless the Secretary has determined that(1) the proposed new community (A) will be economically
feasible in terms of economic base or potential for growth, and (B) will contribute to the orderly growth and development of the
area of which it is a part;
(2) there is a practicable plan (including appropriate time
schedules) for financing the land acquisition and land development costs of the proposed new community and for improving an d marketing the land which, giving due consideration to the public purposes of this title and the special problems involved in financing new communities, represents an acceptable financial risk to
the United States;
(3) there is a, sound internal development plan for the new community which (A) has received all governmental approvals required by State or local law or by the Secretary; and (B) is acceptable to the Secretary as providing reasonable assurance that the development will contribute to good living conditions in the area being developed, will be characterized by sound land use patterns, will include a proper balance of housing for families of low and moderate income, and will include or be served by such shopping, school, recreational, transportation, and other .facilities as
the Secretary deems satisfactory; and
(4) the internal development plan is consistent with a comprehensive plan which covers, or within comprehensive planning being carried on for, the area in which the land is situated, and which meets criteria established by the Secretary for such comprehensive
plans or planning.

ELIGBLEOBLIGATIONS
SEC. 405. (a) Any bond, debenture, note or other obligation' guaranteed under this title shall(1) be issued by a new community developer, other than a public body, approved by the Secretary on the basis of financial, technical and administrative ability which demonstrates his capacity to carry out the proposed project;
(2) be issued to and held by investors -approved by, or meeting
requirements prescribed by. the Secretary, or if an offering to the public is contemplated, be underwritten upon terms and conditions approved by the Secretary;
(3) be issued to finance a program of land development (including acquisition or use of land) approved by the Secretary: Provided, That the Secretary shall, through cost certification procedures, escrow or trusteeship requirements, or other means, insure that all proceeds from the sale of obligations guaranteed
under this title are. expended pursuant to such program;
(4) involve a principal obligation in an amount not to exceed
the lesser of (A) 80 per centum of the Secretary's estimate of the value of the property upon completion of the land development or (B) the sum of 75 per centum of the Secretary's estimate


880





NEW COBEUNITIES 4O6

of the value of the land before development and 90 per centum
of his estimate of the actual cost of the land development;
(5) bear interest at a rate satisfactory to the Secretary, such
interest to be exclusive of any service charges and fees that may
be approved by the Secretary;
(6) contain repayment and maturity provisions satisfactory to
the Secretary; and
(7) contain provisions which the Secretary shall prescribe with
respect to the protection of the security interests of the United States (including subrogation provisions), liens and releases of liens, payment of taxes, and such other matters as the Secretary
may, in his discretion, prescribe.
(b) The outstanding principal obligations guaranteed under this title with respect to a single new community development project shall at no time exceed $50,000,000.
FEES AND CHARGES
SEC. 406. The Secretary is authorized to establish and collect fees for guarantees made under this title and may make such charges as he considers reasonable for the analysis of development and financing plans and for appraisals and inspections related to new community development projects. On or before January 1, 1970, the Secretary shall make a report to the Congress concerning the fees and other charges under this title that he estimates will be adequate to provide income sufficient for a self-supporting program.
GUARA NTEE FUND
SEC. 407. (a) To provide for the payment of any liabilities incurred as a result of guarantees made under this title, the Secretary is authorized to establish a revolving fund which shall be comprised of (1) receipts from fees and charges; (2) recoveries under security or subrogation rights or other rights, and any other receipts obtained in connection with such guarantees; and (3) uch sums, which are hereby authorized to be appropriated, as may b required for program operations and nonadministrative expenses an to make any and all payments guaranteed under this title. The I Secretary may issue obligations to the Secretary of the Treasury in an amount outstanding at any one time sufficient to enable the Secretary to carry out his functions with respect to the guarantees authorized by this title. The obligations issued under this subsection shall have such maturities and bear such rate or rate of interest as shall be determined by the Secretary of the Treasury. The Secretary of the Treasury is authorized and directed to purchase any obligations of the Secretary issued under this subsection, and for such purpose the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as now or hereafter in force, and the purposes for which securities may be issued upder such Act are extended to include purchase of the Secretary's obligations hereunder.
ISec. 703, Emereeey Home Finance Act of 1970, Public Law 91-351, approved July 24, 1970, 84 Stat. 450, 462, added the remaining language in this subsection (a) beginning at this point.

881





408 NEW COMMUNITIES

(b) The full faith and credit of the United Statesis pledged to the payment of all guarantees made under this title with *respect to both principal and interest, including (1) interest, as may be provided for in the guarantee, accruing between the date of default under a guaranteed obligation and the payment in full of the guarantee, and
(2) principal and interest due under any debentures issued by the Secretary toward payment of guarantees made under this title.
(c) Notwithstanding any other provision of law relating to the acquisition, handling, improvement, or disposal of real and other property by the United States, the Secretary shall have power, for the protection of the interests of the guarantee fund authorized under this section, to pay out of such fund all expenses or charges in connection with the acquisition, handling, improvement, or disposal of any property acquired by him under this title; and notwithstanding any other provision of law, the Secretary shall also have power to pursue to final collection by way of compromise or otherwise all claims acquired by him in connection with any security, subrogation, or other rights obtained by him in carrying out this title.
(d) The aggregate of the' outstanding principal, obligations guaranteed under this title shall at no time exceed $500,000,000.1

INCONTESTABILITY
SEC. 408. Any guarantee made by the Secretary under this title shall be conclusive evidence of the eligibility of the obligations for such guarantee, and the validity of any guarantee so made shall be incon2 2
testable in the hands of a holder of the guaranteed obligation.

ENCOURAGEMENT OF SMALL BUILDERS
f
SEC. 409. The Secretary shall adopt such requirements as he deems necessary to assure that new community construction assisted under this title will encourage the maintenance of a diversified local homebuilding industry and broad participation by builders, particularly small builders'.
LABOR
SEC. 410. All laborers and mechanics employed by contractors or subcontractors in land development assisted under section 403 shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a276a-5). No assistance shall be extended under section 403 for land development without first obtaining adequate assurance that these labor standards will be maintain d upon the construction work involved in such development. The Secretary of Labor shall have, with respect to the labor standards specified in thiss'ection, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267), and section 2 of the Act of June 13, 1934 (40 U.S.C. 276c)
1 See. 303 (a), Housing and Urban Development Act of 1970, Public Law 91-409, approved December 31, 1970, 84 Stat. 1770, 1780, substituted "$500,000,000" for "$250,000000".
2 See. 303 (c), Housing and Urban Development Act of 1970, Public Law 91-609, W proved December 31, 1970, 84 Stat. 1770, 1780, deleted at this point the word -qualified" and also deleted the remainder of this sentence which read "except for fraud or material misrepresentation on the part of such holder.".
882





NWCOIIMUNITES 411

REAL PROPERTY TAXATION
SEC. 411. Nothing in this title shall be construed to exempt any real property that may be acquired and held by the Secretary as a result of the exercise of lien or subrogation rights from real property taxation to the same extent, according to its value, as other real property is taxed.
SU-PPLEMENTARY GRANTS
SEC. 412. (a) The Secretary is authorized to make supplementary grants to State and local public bodies and agencies carrying out new community assistance projects, as defined in section 415 (c), if the Secretary determines that such grants are necessary or desirable for carrying out a new community development project approved for assistance under section 403, and that a substantial number of housing units for low and moderate income persons is to be made available through such development project.
(b) In no case shall any grant under this section exceed 20 per centum of the cost of the new community assistance project for which the grant is made; and in no case shall the total Federal contributions to the cost of such project be more than 80 per centum.
(c) In carrying out his authority under this section the Secretary shall consult with the Secretary of Agriculture with respect to new community assistance projects assisted by that Department, and he shall, for the purpose of subsection .(b) accept that Department's certifications as to the cost of such projects.
(d) There are authorized to be appropriated for grants under this section not to exceed $5,000,000 for the fiscal year ending June 30, 1969, and not to exceed $25,000,000 for the fiscal year ending.c June 30, 1970. Any amounts so appropriated shall remain available until expended, -and any amounts authorized for any fiscal year under this subsection but not appropriated may be appropriated for any succeeding fiscal year commencing prior to July 1, 1974.1

GENERAL PROVISIONS A'ND RULES AND REGULATIONS
SEC. 413. In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Secretary shall (in addition to any authority otherwise vested in him) have the functions, powers, and duties (including the authority to issue rules and regulations) set forth in section 402, except subsections (c) (2),
(d), and (f), of the Housing Act of 1(950: Provided, That subsection
(a) (1) of section 402 shall not apply with respect to functions, powers, and duties under section 412 of this title.

AUDIT BY GENERAL ACCOUNTING OFFICE
SEC. 414. Insofar as they relate to any grants or guarantees made pursuant to this title, the financial transactions of recipients of Federal grants or of developers whose obligations are guaranteed by the United States pursuant to this title may be audited by the General
1 See. 304, Housing and Urban Development Act of 1969, Public Law 91-152, approved December 24. 1969. 83 Stat. 379. 391, substituted "July 1. 1971)' for "July 1. 1970" and sec. 303(b), Housing and Urban Development Act of 1970, Public Law 91-609, approved December 31, 1970, 84 Stat. 1770. 1780, substituted July 1, 1974" for "July 1, 1971".

883





1415 NEW COMMUNITIES
Accounting Office under such rules and regulations as may be prescribed by the Comptroller General of the United States. The representatives of the General Accounting Office shall have access to all books, accounts, records, reports, files, and all other papers, things, or property belonging to or in use by such developers or recipients of grants pertaining to such financial transactions and necessary to facilitate the audit.
DEFINITIONS
SEc. 415. As used in this title-(a) The term "land development" means the process of grading land, making, installing, or constructing water lines and water supply installations, sewer lines and sewage disposal installations, steam, gas, and electric lines and installations, roads, streets, curbs gutters, idewalks, storm drainage facilities, and other installations or work, whether on or off the site, which the Secretary deems necessary or desirable to prepare land for residential, commercial, industrial, or other uses, or to provide facilities for public or common use. The term "land development" shall not include any building unless it is (1) a building which is needed in connection with a water supply or sewage disposal installation or a steam, gas,'or electric line or installation, or
(2) a building, other than a school, which is to be owned and maintained jointly by the residents of the new community or is to be transferred to public ownership, but not prior to its completion.
(b) The term "actual costs" means the costs (exclusive of rebates or discounts) incurred by a new community developer in carrying out the land development assisted under this title. These costs may include amounts paid for labor, materials, construction contracts, land planning, engineers and architects' fees, surveys, taxes, and interest during development, organizational and legal expenses, such allocation of general overhead expenses as are acceptable to the Secretary, and other, items of expense incidental to development which may be approved by the Secretary. If the Secretary determines that there is an identity. of interest between the new community developer and a contractor, there may be included as a part of actual costs an allowance for the contractor's profit in an amount deemed reasonable by the Secretary.
(c) The term "new community assistance projects" means projects assisted by grants made under section 702 of the Housing and Urban Development Act of 1965, section 306(a) (2) of the Consoli4dated Farmers' Home Administration Act, or title VII of the Housing Act of 1961.
Approved August 1, 1968.










884









101

INTERGOVERNMENTAL COOPERATION ACT OF 1968
[Public Law 90-577, 82 Stat. 1098; 42 U.S.C. 4201]
AN ACT To achieve the fullest cooperation and coordination of activities among
the levels of government in order to improve the operation of our federal system in an increasingly complex society, to improve the administration of grants-in-aid to the States, to permit provision of reimbursable technical services to State and local government, to establish coordinated intergovernmental policy and administration of development assistance programs, to provide for the acquisition, use, and disposition of land within urban areas by Federal agencies in conformity with local government programs, to provide for periodic congressional review of Federal grants-in-aid, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act be cited as the "Intergovernmental Cooperation Act of 1968".
TITLE I-DEFINITIONS
When used in this ActFEDERAL AGENCY
SEc. 101. The term "Federal agency" means any department, agency, or instrumentality in the executive branch of the Government and any wholly owned Government corporation.
STATE
SEc. 102. The term "State" means any of the several States of the United States, the District of Columbia, Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State, but does not include the governments of the political subdivisions of the State.
POLITICAL SUBDIVISION OR LOCAL GOVERNMENT
SEc. 103. The term "political subdivision" or "local government" means a local unit of government, including specifically a county, municipality, city, town, township, or a school or other special district created by or pursuant to State law.
UNIT OF GENERAL LOCAL GOVERNMENT
SEc. 104. "Unit of general local government" means any city, county, town, parish, village, or other general purpose political subdivision of a State.


885





105 INTERGOVERNMENTAL COOPERATION
SPECIAL-PURPOSE UNIT OF LOCAL GOVERNMENT
SEC. 105. "Special-purpose unit of local government" means any special district, public-purpose corporation, or other strictly limitedpurpose political subdivision of a State, but shall not include a school district.
GRANT OR GRANT-IN-AID
SEC. 106. The term "grant" or "gr nt-in-aidll means money, or property provided in lieu of money, paid or furnished by the United States under a fixed annual or aggregate authorization(A) to a State; or
(B) to a political subdivision of a State; or
(C) to a beneficiary under a plan or program, administered
by a State or a political subdivision of a State, which is subject
to approval by a Federal agency -if such authorization either (i) requires the States or political subdivisions to expend non-Federal funds as a condition for the receipt of money or property from the United States; or (ii) specifies directly, or establishes by means of a formula., the amounts which may be paid or furnished to States or political subdivisions, or the amounts to be allotted for use in each of the States by the States, political subdivisions, or other beneficiaries. The term also includes money, or property provided in lieu of money, paid and furnished by the United States to any community action agency under the Economic Opportunity Act of 1964, as amended. The term does not include (1) shared reve. nues; (2) payments of taxes; (3) payments in lieu of taxes; ( ) loans or repayable advances; (5) surplus property or surplus agricultural commodities furnished as such; (6) payments under research
-and development contracts or grants which are awarded directly and on similar terms to all qualifying organizations, whether public or private; or (7) payments to States or political subdivisions as full reimbursement for the costs incurred in paying benefits or furnishing services to persons entitled thereto under Federal laws.

FEDERAL ASSISTANCE, FEDERAL FINANCIAL ASSISTANCE, FEDERAL ASSISTANCE PROGRAMS, OR FEDERALLY ASSISTED PROGRAMS
SEC. 107. The term "Federal assistance", "Federal financial assistance7l "Federal assistance programs", or "federally assisted programs", means programs that provide assistance through grant or contractual arrangements, and in-eludes technical assistance programs or programs providing assistance in the form of loans, loan guarantees, or insurance. The term does not include any annual payment by the United States to the District of Columbia authorized by article VI of the District of Columbia Revenue Act of 1947 (D.C. Code sees. 47-2501a and 47-2501b).
SPECIALIZED OR TECHNICAL SERVICES
SEC. 108. "Specialized or technical services" means statistical and other studies and compilations, development projects, technical tests



886





RNTERGOVERN3"NTAL COOPERATION 109 and 202

and evaluations, technical information, training activities, surveys, reports, documents, and any other similar service functions which any department or agency of the executive branch of the Federal Govern.. ment is especially equipped and authorized by law to perform.
COMPREHENSIVE PLANIG
SEC. 109. "Comprehensive plannn" includes the following, to the extent directly related to area needs or needs of a unit of general local government: (A) preparation, as a guide for governmental policies and action, of general plans with respect to (i) the pattern and intensity of land use, (ii) the provision of public facilities (including transportation facilities) and other government services, and (iiiI) the effective development and utilization of human and natural resources;
(B) long-range physical and fiscal plans for such action; (C) programing of capital improvements and other major expenditures, based on a determination of relative urgency, together with definitive financing plans for such expenditures in the earlier years of the program; (D) coordination of all related plans and activities of the State and local governments and agencies concerned; and (E) preparation ,of regulatory and administrative measures in support of the foregoing.
EMA OF AGENCY
SE~C. 110. The term "head of a Federal agency" or "head of a State agency" includes a duly designated delegate of such agency head.
TITLE H1-IMPROVED ADMINISTRATION OF GRANTS-INAID TO THE STATES
FULL INFORMATION ON FUNDS RECEIVED
SEC. 201. Any department or agency of the United States Government which administers a programof grants-in-aid to any of the State governments of the United States or to their political subdivisions shall, upon request, notify in writing the Governor, the State legislature, or other official designated by either, of the purpose and amounts of actual grants-in-aid to the State or to its political subdivisions. In ,each instance, a copy of requested information shall be furnished the State legislature or the Governor depending upon the original request for such data.
DEPOSIT OF GRANTS-IN-AID
SEC. 202. No grant-in-aid to a State shall be required by Federal law .or administrative regulation to be deposited in a separate bank account apart from other funds administered by the State. All Federal grantin-aid funds made available to the States shall be properly accounted for as Federal funds in the accounts of the State. In each case the State agency concerned shall render regular authenticated reports to the
-appropriate Federal agency covering the status and the application of the funds, the liabilities and obligations on hand, and such other facts as may be required by said Federal agency. The head of the Federal
-agency and the Comptroller General of the United States or any of



45-705 0 79 3 887





203 and 301 INTERGOVERNMENTAL COOPERATION

their duly authorized representatives shall have access for the purpose of audit and examination to any books, documents, papers, and records that are pertinent to the grant-in-aid received by the States.
SCHEDULING OF FEDERAL TRANSFERS TO THE STATES
SF~c. 203. Heads of Federal departments and agencies responsible for administering grant-in-aid programs shall schedule the transfer of grant-in-aid funds consistent with program purposes and applicable Treasury regulations, so as to minimize the time elapsing between the transfer of such funds from the United States Treasury and the disbursement thereof by a State, whether such disbursement occurs prior to or subsequent to such transfer of funds. States shall not be held accountable for interest earned on grant-in-aid funds, pending their disbursement for program purposes.
ELIGIBLE STATE AGENCY
SEC. 204. Notwithstanding any other Federal law which provides that a single State agency or multimnember board or commission must be established or designated to administer or supervise the administration of any grant-in-aid program, the head of any Federal department or agency administering such program may, upon request of the Governor or other appropriate executive or legislative authority of the State responsible for determining or revising the organizational structure of State government, waive the single State agency or multimember board or commission provision upon adequate showing that such provision prevents the establishment of the most effective and efficient organizational arrangements within the State governmetan'p prove other State administrative structure or arrangements: Provided, That the head of the Federal department or agency determines that the objectives of the Federal statute authorizingthe grant-in-aid program will not be endangered by the use of such other State structure or arrangements.

TITLE III-PERMITTING, FEDERAL DEPARTMENTS AND
AGE NCIES, TO PROVIDE SPECIAL OR TECH NICAL SE RVICES, TO STATE AND LOCAL UNITS -OF GOVERNMENT
STATEMXENT OF PURPOSE
SEC. 301. It is the purpose of this title to encourage intergovernmental cooperation in the conduct of specialized or technical services and provision of facilities essential to the administration of State or local governmental activities, many of which are nationwide in scope and financed in part by Federal funds; to enable State or local governments to avoid unnecessary duplication of special service functions;and to authorize all departments and agencies of the executive branch of the Federal Government which do not have such authority to provide reimbursable specialized or technical services to State and local governments.




888





INTERGOVERNMENTAL COOPERATION 302 and 401

AUTHORITY TO PROVIDE SERVICE

SEC. 302. The head of any Federal department or agency is authorized within his discretion, upon written request f rom a State or political subdivision thereof, to provide specialized or technical services, upon payment, to the department or agency by the unit of government making the request, of salaries and all other identifiable direct or indirect costs of performing such services: Pro-vided, however, That such services shall include only those which the Director of the Bureau of the Budget through rules and regulations determines Federal departments and agencies have special competence to provide. Such rules and regulations shall be consistent with and in furtherance of the Government's policy of relying on the private enterprise system to provide those services which are reasonably and expeditiously available through ordinary business channels.
REIMBURSEMENT OF APPROPRIATION

SEC. 303. All moneys received by any department or agency of the executive branch of the Federal Government, or any bureau or other administrative division thereof, in payment for filrnishing specialized or technical services as authorized under section 302 shall be deposited to the credit of the principal appropriation from which the cost of providing such services has been paid or is to be charged.
REPORTS TO CONGRESS
SEC. 304. The Secretary of any department or the administrative head of any agency of the executive branch of the Federal Government shall furnish annually to the respective committees on Government Operations of the Senate and House of Representatives a summary report on the scope of the services provided under the administration of this title.
RESERVATION OF EXISTING AUTHORITY
SEC. 305. This title is in addition to and does not supersede any existing authority now possessed by any Federal department or agency with respect to furnishing services, whether on a reimbursable or nonreimbursable basis, to State and local units of government.
TITLE IV-COORDINATED INTERGOVERNMENTAL POLICY AND ADMINISTRATION OF DEVELOPMENT ASSISTANCE PROGRAMS

DECLARATION OF ]DEVELOPMENT ASSISTANCE POLICY
SEC. 401. (a) The economic and social development of the Nation and the achievement of satisfactory levels of living depend upon the sound and orderly development of all areas, both urban and rural. Moreover, in a time of rapid urbanization, the sound and orderly development of urban communities depends to a large degree upon the social and economic health and the sound development of smaller communities and rural areas. The President 1 shall, therefore, establish


889





401 INTERGOVERNMENTAL COOPERATION
rules and regulations governing the formulation, evaluation, and review of Federal programs and projects having' a significant impact on area and community development, including programs providing Federal assistance to the States and localities, to the end that they shall most 0fFectively serve these basic objectives. Such rules and egulations shall provide for full consideration of the concurrent achievement of the following specific objectives and, to the extent authorized by law, reasoned choices shall be made between such objectives when they conflict:
(1) Appropriate land uses for housing, commercial, industrial,
governmental, institutional, and other purposes;
(2) Wise development and conservation of natural resources,
including land, water, minerals, wildlife, and others;
(3) Balanced transportation systems, including highway, air,
water, pedestrian, mass transit, and other modes for the movement
of people and goods;
(4) Adequate outdoor recreation and open space;
(5) Protection of areas of unique natural beauty, historical and
scientific interest;
(6) Properly planned community facilities, including utilities
for the supply of power, water, and communications, for the safe
disposal of wastes, and for other purposes; and
(7) concern for high standards of design.
(b) All viewpoints-national, regional, State, and local-shall, to the extent possible, be fully considered and taken into account in planning Federal or federally assisted development programs and projects. State and local government objectives, together with the objectives of regional organizations shall be considered and evaluated ithin a framework of"national public objectives, as expressed in Federal law, and available projections of future national conditions and needs of regions, States, and localities shall be considered in plan formulation, evaluation, and review.
(c) To the maximum extent possible, consistent with national objectives, all Federal aid for development purposes shall be consistent with and further the objectives of State, regional, and local comprehensive planning. Consideration shall be given to all developmental aspects of our total national community, including but not limited to housing, transportation, economic development, natural and human resources develop ent, community facilities, and the general improvement of living environments.
(d) Each Federal department and agency. administRring a development assistance program shall, to the maximum extent practicable, consult with and seek advice from all other significantly affected Federal departments and agencies in an effort to assure fully coordinated programs.
(e) Insofar as possible, systematic planning required by individual Federal programs (such as highway construction, urban renewal, and open space) shall be coordinated with and, to the extent authorized by
,In a memorandum to the Director of the Bureau of the Budget, dated Nov. 8, 1968, the President delegated this authority to the Director, and stated he expected the Bureau "to generally coordinate the actions of the departments and agencies In exercising the new authorizations provided by the Intergovernmental Cooperation Act with the ob uniform
motive of consistent and action by the Federal Government." (33 Fed. Ree.
l 87


890





INTERGOVERNMENTAL COOPERATION 402 and 501

law, made part of comprehensive local and areawide development planning.

FAVORING UNITS OF GENERAL LOCAL GOVERNMENT
SEC. 402. Where Federal law provides that both special-purpose units of local government and units of general local government are eligible to receive loans or grants-in-aid, heads of Federal departments and agencies shall, in the absence of substantial reasons to the contrary, make such loans or grants-in-aid to units of general local government rather than to spec'ial-purpose units of local government.

RULES AND REGULATIONS
SEC. 403. The Bureau of the Budget or such other agency as may be designated by the President is hereby authorized to prescribe such rules and regulations as are deemed appropriate for the effective administration of this title.

TITLE V-ACQUISITION, USE, AND DISPOSITION OF
LAND WITHIN URBAN AREAS BY FEDERAL AGENCIES IN CONFORMITY WITH LAND UTILIZATION PROGRAM2NS OF AFFECTED LOCAL GOVERNMENT
AMENDMENT OF FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
SEC. 501. The Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 471 et seq.), is amended by adding at the end thereof a new title as follows:

"TITLE VIJI-URBAN LAND UTILIZATION
('SHORT TITLE

"SEC. 801. This title may be cited as the 'Federal Urban Land-Use Act'.
cc DECLARATION OF PURPOSE AND POLICY

"SEC. 802. It is the purpose of this title to promote more harmonious intergovernmental relations and to encourage sound planning, zoning, and land-use practices by prescribing uniform policies andl procedures whereby the Administrator shall acquire, use, and dispose of land in urban areas in order that urban land transactions entered into for the General Services Administration or on behalf of other Federal agencies shall, to the greatest extent practicable be consistent with zoning and land-use practices and shall be made to the greatest extent practicable in accordance with planning and development objectives of the local governments and local planning agencies concerned.
DISPOSALL OF URBAN LANDS
"SEC. 803. (a) Whenever the Administrator contemplates the disposal for or on behalf of any Federal agen cy of any real property Situated within an urban area, he shall, prior to offering such land for


891





501 INTRGOVERNMENTAL COOPERATION

sale, give reasonable notice to the head of the governing body of the unit of general local government having jurisdiction over zoning and land-use regulation in the geographical area within which the land or lands are located in order to afford the government the opportunity of zoning for the use of such land in accordance with local comprehensive planning.
(b) The Administrator, to the greatest practicable extent, shall
-furnish to all prospective purchasers of such real property, full and ,complete information concerning" (1) current zoning regulations and prospective zoning requirements and objectives for such property when it is unzoned; and
(2) current availability to such property of streets, sidewalks,
sewer-s, water, street lights, and other service facilities and prospective availability of such services if such property is included
in comprehensive planning.
~ACQUISMTON OR CHANGE OF USE OF REAL PROrERTY
"SEC. 804. (a) To the extent practicable, prior to a commitment to acquire any real property situated in an urban area, te- Administrator shall notify the unit of general local government exercising zoning and land-use jurisdiction over the land proposed to be purchased of his Intent to acquire such land and the proposed use of the property. In the event that the Administrator determines that such advance notice would have an adverse impact on the proposed purchase, he shall, upon conclusion of the acquisition, immediately notify such local governmnent of the acquisition and the proposed use of the property. i" (b) In the acquisition or change of use of any real property situated ian urban area as a site for public building, the Administrator shall, to the extent he determines practicable" (1) consider all objections made to any such acquisition or
change of use by such unit of government upon the ground that the proposed acquisition or change of use conflicts or would conflict with the zoning regulations or planning objectives of such
unit; and
(2) comply with and conform to such regulations of the unit
of general. local government having Jurisdiction with respect to the area within which such property is situated and the planning
and development objectives of such local government.
,"SEC. 805. The procedures prescribed in sections 803 and 804 may be waived during any period of national emergency proclaimed by the President.
cc'DEFINITIONS

"SEC. 806. As used in this title" (a) 'Unit of general local government' means any city, county, town, parish, village, or other general-purpose political subdivision of a State.
"(b) 'Urban area' means"()anv geographical area within the jurisdiction of any incorporated city, town, borough, village, or other unit of general local government, except county or parish, having a population of
ten thousand or more inhabitants;



892





INTERGOVERNMENTAL COOPERATION 601
"(2) that portion of the geographical area within the jurisdiction of any county, town, township, or similar governmental entity which contains no incorporated unit of general local government but has a population density equal to or exceeding one thousand
five hundred inhabitants per square mile; and
"(3) that portion of any geographical area having a population
density equal to or exceeding one thousand five hundred inhabitants per square mile and situated adjacent to the boundary of any incorporated unit of general local government which has a
population of ten thousand or more inhabitants.
"(c) 'Comprehensive planning' includes the following, to the extent directly related to the needs of a unit of general local government: "(1) Preparation, as a guide for governmental policies and action, of general plans with respect to (A) the pattern and intensity of land use, (B) the provision of public facilities (including transportation facilities) and other governmental services, and (C) the effective development and utilization of human and natural resources;
"(2) Long-range physical and fiscal plans for such action;
"(3) Programing of capital improvements and other major
expenditures, based on a determination of relative urgency, together with definitive financing plans for such expenditures in
the earlier years of the program:
"(4) Coordination of all related plans and activities of the
State and local governments and agencies concerned; and
"(5) Preparation of regulatory and administrative measures in
support of the foregoing."
TITLE VI-REVIEW OF FEDERAL GRANT-IN-AID
PROGRAMS
CONGRESSIONAL REVIEW Or GRANT-I.N-AID PROGRAMS
SEC. 601. (a) Where any Act of Congress authorizes the making of grants-in-aid and no expiration date for such authority has been specifled by law, then prior to the expiration of each period specified in subsection (b) the Committees of the Senate and the House having legislative jurisdiction over such grants-in-aid shall, separately or jointly, conduct studies of the program under which such grants-in-aid are made and advise their respective Houses of the results of their findings with special attention to(1) The extent to which the purposes for which the grants-inaid are authorized have been met:
(2) The extent to which the objectives of such programs can be
carried on without further financial assistance from the United
States;
(3) Whether or not any changes in purpose, direction or administration of the original program, or in procedures and requirements applicable thereto, shall be made: and
(4) The extent to which such grant-in-aid programs are adequate to meet the growing and changing needs which they were
designed to support.



893





602 INTERGOVERNMENTAL COOPERATION
(b) (1) A study of a grant-in-aid program' to which subsection (a) applies and which is authorized by an Act of Congress enacted before the date of enactment of this Act shall be conducted prior to the expiration of the fourth calendar year beginning after the date of enactment of this Act, and thereafter prior to the expiration of the fourth calendar year following the year during which a study of such program was last conducted under this paragraph.
(2) A study of a grant-in-aid program to which subsection (a) applies and which is authorized by an Act of Congress enacted after the date of enactment of this Act shall be conducted prior to the expiration of the fourth calendar year following the year of enactment of such Act, and prior to the expiration of each fourth calendar year thereafter.
BTUDIES BY CoMPTROLLE GENERAL OF FDEAL GRANT-rN-An) PROGRAMS
SEc. 602. (a) Upon request of any committee having jurisdiction over a grant-in-aid program, the Comptroller General shall make a study of such program to determine among other relevant matters, the extent to which(1) such program conflicts with or duplicates other grant-in-aid
programs; and
(2) more effective, efficient, economical and uniform administration of such program can be achieved by changing certain
requirements and procedures applicable thereto.
(b) In reviewing grant-in-aid programs the Comptroller General shall consider, among other relevant matters, the budgetary, accounting, reporting and administrative procedures applicable to such programs. Reports on such studies, together with recommendations, shall be submitted by the Comptroller General to the Congress. Reports on expiring programs should, to the extent practicable, be submitted in the year prior to the date set for their expiration.
I
STUDIES BY ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS
SEC. 603. Upon request of any committee having jurisdiction over a grant-in-aid program, the Advisory Commission on Intergovernmental Relations (established by Public Law 86-380, as amended) shall conduct studies of the intergovernmental relations aspects of such program including (1) the impact of such program, if any, on the structural organization of State and local governments and on Federal-Statelocal fiscal relations, and (2) the coordination of Federal administration of such program with State and local administration thereof, and shall report its findings and recommendations to such committee and to the Congress.
PRESERVATION OF HOUSE AND SENATE COMITTME JURISDI T1ON
SEc. 604. Nothing in this Act shall be construed to affect the jurisdiction of committis under the rules of the Senate and the House of Representatives.
Approved October 16,1968.



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INTERGOVERNMENTAL COOPERATION 1

ESTABLISHING AN OFFICE OF INTERGOVERNMENTAL RELATIONS
EXECUTIVE ORDER 11455
[34 Fed. Reg. 2299]
By virtue of the authority vested in me by the Constitution and the statutes of the United States, and as President of the United States, it is ordered as follows:
SECTION 1. Establishment of the Office. (a) There is hereby established the Office of Intergovernmental Relations (hereinafter referred to as "the Office"). The Office shall be under the immediate supervision of the Vice President of the United States.
(b) In addition to his other duties, the Vice President shall act as the President's liaison with executive and legislative officials of State and local governments; encourage and assist in facilitating maximum cooperation between and among the various Federal agencies and such other governments; help to make the Federal executive branch, especially those sectors thereof having a direct impact on intergovernmental relations, more sensitive, receptive and responsive to the views of State and local officials; serve as the focal point of efforts by Federal departments, agencies, and interagency councils and committees to resolve specific difficulties that arise in their relationships with such officials; work closely with and encourage the work of the Advisory Commission on Intergovernmental Relations; and inform the Council for Urban Affairs on general intergovernmental issues of an informational, administrative, or program nature so that the Council may more effectively advise and assist the President with respect to urban affairs.
SEc. 2. Functions of the Office. The Office shall advise and assist the Vice President with respect to (1) intergovernmental relations generally, and (2) the responsibilities assigned to the Vice President specifically under section 1 (b). In addition, the Office shall:
(a) serve as the clearinghouse for the prompt handling and solution of Federal-State-local problems brought to the attention of the President or Vice President by executive and legislative officers of State and local governments;
(b) identify and report to the Vice President on recurring intergovernmental problems of a Federal interdepartmental and interprogram nature;
(c) explore and report to the Vice President on ways and means of strengthening the headquarters and interagency relationships of Federal field offices as they relate to intergovernmental activities;
(d) maintain continuing liaison with intergovernmental units in Federal departments and agencies and with the staff of the Council for Urban Affairs, and provide the staff of the Council with information and assistance regarding issues arising in Federal-State-local relations; and
(e) review procedures utilized by Federal executive agencies for affording State and local officials an opportunity to confer and comment on Federal assistance programs and other intergovernmental issues, and propose methods of strengthening such procedures.

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13 INTERGOVERNMENTAL COOPERATION

SEc. 8. Adminkgtrative Ar'angements. (a) A person designated by the Vice President shall serve as Director of the Office. The Director shall perform such duties as the Vice President may from time to time direct.,
(b) A person designated by the Vice President shall serve as Deputy Director of the Office and assist the Director in performing those duties assigned to him.#
(c) All Federal departments, agencies, interagency councils and committees having an impact on intergovernmental relations, and all Federal Executive Boards, shall extend full cooperation and assistance to the Vice President and the Director of the Office in carrying out the responsibilities under this order. The Director shall, upon request, assist all Federal departments and agencies with problems that may arise between them and the executive agencies or elected officials of State and local governments.
(d) The head of each Federal department and agency shall designate an appropriate official with broad general experience in his department or agency to serve, upon request of the Vice President, as a point of contact in carrying out Federal-State-local liaison activities under this order.
SEC. 4. Oomnution. (a) Nothing in this order shall be construed as subjecting any department, establishment, or other instrumentality of the executive branch of the Federal Government or the head thereof, or any function vested by law in or assigned pursuant to law to any such agency or head, to the authority of any other such agency or head or as abrogating, modifying, or restricting any such function in any manner.
(b) This order supersedes Executive Order No. 11426 of August 31, 1968.
BicarAw NIXON.
TME WHMi HousE, FebmaucwJ? 14, 1969.





















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OFFICE OF MANAGEMENT AND BUDGET

EXECUTIVE OFFICE OF THE PRESIDENT, OFFICE OF MA\NAGEAIENT AND BUDGET,

Circular No. A-19, Revi sed. a3intD.,Juy1192
To the heads of executive departments and establishments. Subject : Legislative coordination and clearance.
1. Purpose.-This Circular outlines procedures for the coordination and clearance by the Office of Management and Budget (0MB) of agency recommendations on proposed, pending, and enrolled legislation. It also includes instructions on the timing and preparation of agency legislative programs.
2. Rescision.-T his revision supersedes and rescinds Circular No. A-19, Revised, dated June, 9, 1964, and Transmittal Memorandum No. 1, dated October 18, 1971.
3. Back gro'und.-OMB performs legislative coordination and clearance functions to (a) assist the President in developing his position on legislation, (b) make known the Administration's position on particular legislation for the guidance of the agencies and information
of Congress, (c) assure appropriate consideration of the views of all affected agencies, and (d) assist the President with respect to his action on enrolled bills.
4. Co'verage.-All executive branch agencies (as defined in para~graph 5b), are subject to the provisions of this Circular. Agencies of the legislative and judicial branches are not covered by its provisions.
5. Definitio-ws.-For the purpose of this Circular, the following definitions shall apply:
a. Advice.-Information transmitted to an agency by 0MB stating the relationship of particular legislation and reports thereon to the program of the President or stating the views of 0MNB as a staff agency for the President with respect, to such legislation and reports.
b. Agency.-Any executive department or independent commission. board, bureau, office, agency, Government -owned or controlled corporation, or other establishment of the Government. including re gulatory commission or board, and also the municipal government of the District of Columbia.
c. Proposed legislatim.*-~A draft bill with supporting documents which an agency wishes to present to Congress for its consideration. Also, any proposal for or endorsement of legislation included in an agency's annual or special report or in other written form which an agency proposes to transmit to the Congress, or to any member or committee, or to make available to any study group, commission, or the public.
*The terms "proposed legislation" and "report" do not Include materials submitted In Justification of appropriation requests or proposals for reorganization plans.


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OFFICE OF MANAGEMENT AND BUDGET
d. Pending bill.-Any bill or resolution which has been introduced in Congress or any amendment to a bill or resolution while in comnmittee or when proposed for House or Senate floor consideration during debate. Also, any proposal placed before the conferees on a bill which has passed both Houses.
e. Report (including testimony) .*-Any written expression of official views prepared by an agency on pending bills for (1) transmittal to any committee, Member, or officer of Congress', or (2) presentation as testimony before a congressional committee.
f. Enrolled bill.-A bill or resolution passed by both Houses of Congress and presented to the President for his action.,
6. Agency legislative programs.
a. Submission to OMB.-Each agency shall prepare and submit to, 0MB annually its proposed legislative program for the next session of Congress. These programs must be submitted at the same time as the initial submission of an agency's annual budget request as required by 0MB Circular No. A-il. Timely submission is essential for consideration of the items in the programs by Executive Office staff in assisting the President in preparing his budget, legislative program, and annual and special messages.I
b. Late submission.-Items not included in an agency's legislative program and which have significant upward impact on the annual budget under preparation w"ill not be considered later unless they are the result of circumstances not foreseeable at the time final decisions are made on the budget.
c. Number of copies.-Each agency shall furnish 20 copies of its proposed legislative program to 0MB. If an agency has no proposals to make, it should submit a statement to this effect.
d. Program content .-Each agency shall -prepare its legislative program in accordance with Attachment A and its submission should include:
1(1) All items of legislation which an agency contemplates prop osing to Congyress (or actively supporting, if already pending legislation) during the coming session, including proposals to extend expiring laws or repeal provisions of existing law. These items, should be based on policy-level decisions within the agency and should take into account the President's known legislative, budgetary, and other relevant policies. Z1
(2) A separate list of legislative proposals under active consideration in the agency which have not yet reached the stage of inclusion in its proposed legislative program. For each item in this list, the agency should indicate when it expects to reach a policy-level decisions and, specifically, whether it expects to propose the item in time for its consideration for inclusion in the annual budget under preparation.
(3) A separate list of all laws or provisions of law affecting an agency which will expire between the date the program is submitted to 0MB and the end of the two following calendar years, whether or not the agency plans to propose their extension. Agencies should propose extensions of expiring laws in the congressional session occurring in the year preceding the expiration date.
*The terms "proposed legislation" and "eot" do not Include materials submitted In Justification of appropriation requests or proals for reorganization plans.


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OFFICE OF MANAGEMENT AND BUDGET
(4) All items in the submissions which are proposed, or expected to be proposed, for inclusion in the annual budget shall be accompanied by a tabulation showing amounts for the budget year and for each of the four fiscal years following the budget year as required by section 221 (a) of P.L. 91-510, the Legislative Reorganization Act of 1970 (31 U.S.C. 11(a) (12)). (For language of this section, see Attachment B.) The criteria provided in OMB Circular No. A-11 shall be used in preparing these tabulations and are also set forth in Attachment B.
e. Relationship to advice. Submission of a legislative program to OMB does not constitute a request for advice ol specific legislative proposals. Such requests should be made in the manner prescribed in paragraph 7 of this Circular.
7. Clearance of agency proposed legi/sation and reports-The originating agency shall submit to OMB for clearance, proposed legislation or reports (as defined in paragraphs 5c and 5e) before they are transmitted outside the executive branch. Agencies should not commit themselves to testify on pending bills or to submit reports or proposed legislation to Congress on a time schedule which does not allow orderly coordination and clearance to take place. To facilitate congressional action on Administration proposals and to forestall hasty, last-minute clearance requests on pending legislation. agencies should plan their submission to OMB on a time schedule which will permit such coordination and clearance to take place. Particular care should be given to insuring that draft legislation to carry out Presidential legislative recommendations is submitted )romptly to 0MB with the maximum possible allowance for analysis and review.
a. Timing of agency l, bmissions.
(1) Agencies should submit proposed legislation, reports and testimony to OMB well in advance of the desired date of transmission to the Congress.
(2) Depending on the complexity and significance of the subject matter, the policy issues involved, and the number of agencies affected, an adequate period for clearance by OMB may range from several days to a number of months. Agencies shall consult with OMB staff as to necessary periods for clearance, particularly in cases of major or complex legislation.
(3) On occasion, very short periods for clearances may be unavoidable because of congressional time schedules or other factors. Nevertheless, agencies should make every effort to give OMB a minimum of three full working days for clearance of proposed reports or testimony.
(4) Agencies shall state in their letters of transmittal to 0MB any information on congressional schedules or other special circumstances which may require expedited clearance.
b. Copies to be furished. Agencies should furnish at least six copies of proposed legislation (and supporting materials) and draft reports or testimony to OMB. In cases where wide circulation or expedited action may be required, the originating agency shall consult informally in advance with appropriate OMB staff as to the number of copies to be supplied.
c. Items to be included in aqcncy submissions.
(1) Agencies should identify proposed legislation submitted to 0MB by using the number assigned to the proposal in the agency's

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OFFICE OF MANAGEMENT AND BUDGET
legislative program submission; e.g., Agriculture, 92-12 (see Attachment A). They shall furnish with each proposal a draft of the transmittal letter to the Speaker of the House -and the President of the Senate as well as background information and justification, including whereapplicable:
(a) an analysis of the provisions of the. proposed legislation:
b) comparison with existing law:
c) comparison with previous agency proposals or related hills introduced in the Congress;
(d) a statement of other agencies' interests;
(e) an indication of any consultation with other agencies in the development of the proposal;
(f) an indication of the impact on State and local governments where significant; and
(g) information required by statute or by Administration policies, as for example, that noted in paragraph 7d below.
(2) Similarly, in their letters requesting advice on reports or testimony, agencies should identify related bills and set forth any rele, vant comments not included in the report or testimony itself.,
(3) In cases where legislation carries out a Presidential recommendation, agencies should include in the proposed report or the letter transmitting proposed legislation a statement identifying the recommendation and indicating the degree to which the legislation concerned will carry it out.
(4) Agencies shall include in their letters to OMB requesting clearance of proposed legislation and of those reports favoring legislation, an estimate of the budget authority and budget outlays for each of the first five years needed to carry out responsibilities under the legislation involved. The relationship of the first (or second) yearls'estimate to the President's budget should be described.
(5) Similarly, if the legislation in question would effect savings, increase or decrease Federal revenues, or affect the receipts or outlays of trust or special funds, agencies shall include in their transmittal letters to OMB estimates of these savings -or changes.
(6) All estimates should be on a fiscal year basis. Estimates of budget authority and budget outlays shall be projected on the basis of the criteria set forth in Attachment B.
d. Certain statutory requirements and Administration policies. In the preparation of proposed legislation and repor s, agencies shall carefully consider and take into account certain requirements of existing law and Administration policies and directives, which are, of general applicability. Agency reports and proposed legislation, shall to the maximum extent possible, contain or be accompanied by, appropriate recommendations, statements, or provisions to give effect to such requirements, including the following:
(1) Civil Rights: Laws, Executive Ordersand other relevant directives in the civil rights area shall receive full consideration. These include Title VI of the Civil Rights Act of 196- (42 U.S.C. 2000d) providing for equal access to and benefits from programs receiving Federal financial assistance; Titles VIII and IX of Public Law.90284 (42 U.S.C. 3601ff and 3631) providing for equal opportunity in housing; section 2(8) of Public Law 85-536 (15 U.S.C. 637) providing the basis for channeling Federal agency procurement to minority businesses; the directives relating to equal employment opportu900





OFFICE OF MANAGEMENT AND BUDGET

nity in the Federal Service and in private employment by Federal contractors (Executive Orders 11246 and 11478) ; and the directive on planning, acquisition, and management of Federal space (Executive Order 11512).
(2) Environmental impact: Public Law 91-190 (42 U.S.C. 4332) requires that agencies prepare detailed statements concerning the environmental impact of major Federal actions (including recommendations or reports on proposals for legislation) significantly affecting the quality of the human environment. Implementation of this requirement is dealt with generally in guidelines issued by the Council on Environmental Quality. However, information copies of required 102 statements should be submitted to OMB if available at the time clearance is requested.
(3) Cost analysis: Public Law 89-554 (5 U.S.C. 2953) requires that in certain cases agency reports and proposed legislation include fiveyear estimates of additional expenditures and manpower which would result from enactment of legislation. Public Law 91-510, sections 252(a) and (b), impose a similar requirement on congressional committees and require a comparison of the committee estimates with the five-year estimates of costs provided by executive agencies. (For ready reference, these statutory provisions are set forth in Attachment C.)
e. OMB action on agency subnm swis.
(1) Upon receipt of an agency's proposed legislation or report, OMB will undertake the necessary coordination with other interested agencies. If congressional committees have not requested reports from all of the interested agencies. OMB will request additional agency views within specified time liniits which must be carefully observed. It will consult with the President. when appropriate. and undertake such staff work for him as may he necessary in cooperation with other Presidential staff. It may request the originating agency to provide additional information: or it may arrange interagency meetings to exchange views, resolve differences of opinion, or to clarify the factual situation.
(2) When coordination is completed, OMB will transmit advice to the appropriate agencies, either in writing or by telephone. In transmitting advice, it inay indicate considerations which agencies should or may wish to take into account before submitting proposed legislation or reports to the Congress.
f. Agency action on receipt of adlrie from OMB.
(1) Agencies shall incorporate in their reports and in their letters transmitting proposed legislation to the Congress, the advice received from OMB.
(2) In the case of reports, receipt of advice contrary to views expressed does not require an agency to change its views. In such cases however, the agency will review its position. If it decides to modify its views, the agency shall consult with OMB to determine what change, if any, in advice previously received is appropriate. If, after the review, the agency's views are not modified, it shall incorporate the advice received in full in its report.
(3) In the case of proposed legislation, the originating agency shall not submit to Congress any proposal which OMB has advised is in conflict with the programs of the President.



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OFFICE OF MANAGEMENT AND BUDGET
(4) Agencies shall furnish to OMB a copy of all proposed legislation, transmittal letters, and reports (including testimony) in the form actually transmitted to the Congress. In cases where reports or testimony cover more than one bill, agencies shall furnish one copy for each bill.
g. Agency action where prior clearance A" not been effected.
(1) Agencies shall not submit to Congress proposed legislation which has not been coordinated -and cleared within the executive branch in accordance with the provisions of this Circular.
(2) If congressional time schedules do not permit an agency to transmit its proposed report in time for the normal clearance and advice, the agency shall consult informally with OMB as to the advice to be included in the proposed report. 0M 13 may advise the agency to state in its report that time has not permitted securing advice from OMB as to the relationship of the proposed report to the program of the President. Agencies shall transmit to OMB four copies of such reports at the same time that they are transmitted to the Congress. Where appropriate, OMB will subsequently furnish advice on -the report, which the agency shall transmit promptly to the Congress.
(3) In cases where an agency has not submitted a report for clearance and its views on pending legislation are to be expressed in the form of oral, unwritten testimony, OMB will undertake such coordination and give such advice as the circumstances permit. In presenting oral testimony, the -agency should indicate what advice, if any, has been received from OMB. If none, has been obtained, the agency should so indicate.
h. Drafting service. Agencies need not submit for clearance bills which they prepare as a drafting service fora congressional committee or a Member of Congress, provided that they state in their transmittal letters that the drafting service does not constitute a commitment with respect to the position of the Administration or the agency. Agencies are encouraged to advise OMB of these drafting service requests while the requests are being complied with. A copy of each such draft bill and the accompanying letter should be furnished to OMB at the time of transmittal, together with an explanatory statement of what the bill would accomplish if that is not contained in the transmittal letter.
i. Transmittal of agency conwwnicatiom to the Congress. Agencies should observe the instructions in House and Senate rules to forward proposed legislation or various reports required by law to the Speaker of the House and the President of the Senate. These instructions do not. require that reports which have been requested by committee chairmen on bills and resolutions pending before their committees be sent to the Speaker of the House and the President of the Senate. Such reports should be transmitted directly to the requesting committee.
j. Reelearance requirenwnts. (1) The advice received from OMB generally applies to all sessions of each Congress, but does not carry over from one Congress to the next. Accordingly, agencies do not need to seek reclearance, of reports on which they have -already received advice before making the same reports on identical bills introduced in the same Congress, unless considerable time has elapsed or changed conditions indicate that the need for clearance is appropriate or should be rechecked. Agencies shall, in cases where clearance does not take place, include in the subsequent report appropriate reference

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OFFICE OF MANAGEMENT AND BUDGET
to the advice received on the original report. They shall also transmit one copy of any subsequent report to OMB at the same time that it is transmitted to the Congress. The transmittal letter to OMB should indicate what related report was previously cleared.
(2) Agencies wishing to request reclearance of a draft bill or report, identical or substantially similar to one cleared for transmittal to a previous Congress should transmit their request in a form similar to that illustrated in Attachment D. Submittal of lists of bills or reports will not suffice for this purpose.
(3) Agencies need not submit for clearance reports or written testimony on pending legislation if they have already received advice on the same legislation and the report or testimony simply confirms or enlarges on previously cleared reports or testimony and raises no new issue. However, prior to submitting such reports or testimony, agencies shall consult informally with an appropriate OMB staff member. Where appropriate, OMB may request submission of the report or testimony for clearance even if advice has previously been given with respect to the same legislation. In either case, agencies shall furnish OMB a copy of the report or testimony as sent or delivered.
k. Use of no cormeid reports. As a general rule, agencies should submit no comment reports only when they have no interest in the pending legislation or nothing to contribute by way of informed comment. Agencies should submit such rel)orts for normal clearance, unless a different 1)roedure i' s inforniallv arran 0ed with ()NIB. In either event, they should furnish 0MB witl one copy of each such report at the time it is transmitted to Congress.
8. Interagency co/oi7tat 'o n.-Jn carrying out their legislative functions, agencies are encourage(l to consult with each other in order that all relevant interests and points of view may be considered and accommodated, where appropriate, in the formulation of their positions. Such consultation is particularly important in cases of overlapping interests, and intensive efforts should be made to reach interagency agreement before proposed legislation or reports are transmitted to OMB. However, in order that the President may have the individual views of the responsible heads of the agencies, any proposed legislation or reports so coordinated shall be transmitted to OMB by the individual agencies involved with appropriate reference to the interagency consultation which has taken place.
9. Enrolled bills.-Under the Constitution, the President has 10 days (including holidays but excluding Sundays) to act on enrolled bills after they are presented to him. To provide the fullest possible opportunity for Presidential consideration, agencies shall give enrolled bills top priority handling.
a. Initial OMB action. OMB will obtain facsimilies of enrolled bills from the Government Printing Office and immediately forward one facsimile to each interested agency, requesting the agency's views and its recommendation for Presidential action.
b. Agency action. Each agency receiving such a request shall immediately prepare a letter presenting its views and deliver it in duplicate to OMB not later than two working days after receipt of the facsimile. Different deadlines may be fixed as dictated by circumstances. Agencies shall deliver these letters by special messenger to OMB.

45-705 0 79 4 903





OFFICE OF MANAGEMENT AND BUDGET
c. Preparation of views letters.
(1) Agencies' views letters on enrolled bills are transmitted to the President and should be written with the objective of assisting him in reaching a decision. Each letter should therefore be complete in itself ani'd should not as a general rule incorporate by reference earlier reports.
(2) Views letters on enrolled bills are privileged communications and agencies shall be guided accordingly in determining their content.
Because of the definitive nature of Presidential action on enrolled bills, agency views letters shall be signed by a Presidential appointee.
(4) Agencies' views letters shall contain:
(a) an analysis of the significant features of the, bill including changes from existing law (OMB staff will communicate with the agencies on which one should write the -detailed analysis of the bill where more than one agency is substantially affected) ;
(b) a comparison of the bill with Administration proposals, if any, on the same subject;
(c) such comments, criticisms, analyses of benefits and shortcomings, or special considerations as will assist the President in reaching a decision;
(d) identification of any factors which make it necessary or desirable for the President to act by a particular date;
(e) an estimate of the first-year and recurring costs or savings and the relationship of the first-year estimates to the President's budget; and
(f) a specific recommendation for -approval or disapproval by the President.
(5) Agencies recommending disapproval shall submit with their views letters a proposed veto message or memorandum of disapproval, in quadruplicate, prepared on legal-size paper and double-spaced. Such messages or memoranda should be finished products in form and substance which can be used by the President without further revision.
(6) Agencies may wish, in exceptional cases, to'recommend issuance of a signing statement by the President. Agencies so recommending shall submit with their views letters a draft of such statement, in the same form and quantity as required for a proposed veto message.
(7) Agencies' views letters on private bills shall cite, where appropriate, precedents which support the action they recommend or which need to be distinguished from the action recommended.
d. Subsequent OMB action. OMB will transmit to the President agencies' views letters, together with a covering memorandum, not later than the fifth day following receipt of the enrolled bill at the White House.
10. Agency legislative liaison offlee*s. As an additional means of
0
effecting interagency coordination, OMB will furnish agencies from time to time with lists of the liaison officers who have been designated by their agencies to handle the coordination of legislative, matters. Agencies should promptly notify OMB of any change in their liaison officers.
11. Communications to OMB.
,a. Writtenagency communications to OMB transmitting proposed legislation, proposed reports, views letters on other agencies' proposed

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legislation or reports, and views letters on enrolled bills should I generally be addressed to:
Direct-or, Office of Management and Budget. Attention: Assistant Director for Legislative Reference.
The envelopes containing such communications should be addressed
Le islative Reference Division,
Office of Management and Budget,
Room 458, Old Executive Office Building.
unless a different arrangement is made with an appropriate OMB staff member.
b. Questions on status of proposed legislation, reports, testimony, or enrolled bills shoud be directed to appropriate OMB staff or to the Legislative Information Center (telephone 395-3900; IDS code 103-3900).
CASPAR W. WEINBERGER, Director. Attachments.

ATTACHMENT A
(Circular No. A-19 Revised)
INSTRUCTIONS RELATING TO THE PREPARATION OF
AGENCY LEGISLATIVE PROGRAMS
1. Agencies' proposed legislative program should be divided into two parts:
PART I-PRESIDENT S PROGRAM PROPOSALS
Those tennis which the agency believes are of sufficient importance to be included in tho President's legislative program and given specific endorsement by him in one of the regular annual messages, such as the budget message, or in a special message.
PART II-ALL OTHER PROPOSALS
2. Within each Part, agencies should list the items in order of relative priority. Each item of proposed legislation should be given a separate number for purposes of ready identification, using a numbering system which identifies. the Congress; e.g., Agriculture, 92-12.
3. With respect to each item, agencies should provide the following information:
a. A brief description of the proposal, its objectives, and its relationship to existing programs. Agencies should include greater detail on the specific provisions of proposals included in Part I, or where the subject matter of the proposal contains new policies or programs or raises complex issues.
b. Pertinent comments as to timing and readiness of draft legislation.
c. Pertinent references to billc, and reports concerning the subject of the proposal in current or recent sessions of Congress.
d. An estimate of (1) any budget authority and outlay which would be required during each of the first five years, (2) any savings in budget authority and outlays, or (3) any changes in budget receipts. These estimates should be, made for both Federal funds and trust funds.

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4. The li sts of (a) legislative proposals still under consideration in an agency and (b) expiring laws (see paragraph 6 of the Circular) should be presented separately from Parts I and IL. The following special instructions apply to them:
a. Items still under consideration should be listed in approximate order of priority and each briefly described in terms of subject matter and status.
b. Each expiring law should be described in terms of (1) the subject', (2) the citation, (3) the date of expiration, (4) the agency's views as to whether the law should be extended or permitted to expire, and (5) and other pertinent information. If an agency recoinments extension, the proposal should be included in Part I or Part II, as appropriate.
5. The legislative program submission should be prepared on 8 x 101/2 size paper. General conformance to the format of the -attached exhibit will greatly facilitate the use of these programs.

EXHIBIT FOR ATTACHMENT A

(Circular No. A-19 Revised)

DEPARTMENT oF GOVERNMENT
Proposed legislative program for the -session of the -Congress. (Items in each Part are listed in order -of priority.)
FART I-PRESDENTI S PROGRAM PROPOSALS
92-i. "GI Bill"-authorize increases in educational assistance rate:
This proposal would increase educational assistance allowances payable under chapters 31, 34,'and 35 of title 38. These programs include vocational rehabilitation training for disabled veterans; education, vocational, cooperative, onl-job, farm cooperative, and apprentice training for veterans ; and institutional and cooperative training for children, widows and wives of deceased or totally and permanently service-connected disabled veterans.
The suggested new rate for a single veteran with no dependents who is pursuing a full-time institutional program would, for example, be $190 per month compared with the currently $175 monthly rate. This represents an increase of approximately 8."6%, which is tantamount to the increase in the cost of living which has occurred since the last increase became effective on February 1, 1970. It is believed that substantial increases should be provided in the on-job and apprentice training programs-areas in which it is felt that larger increases are justified.
Although precise cost data has not been determined, it is believed that the annual increased cost would be of the magnitude of approximately $175 million.
92-2. * *.
PART 11-ALL OTHER PROPOSALS
92-3. Repeal of Naval Stores, Wool Standards, and Tobacco Seed and Plant Ex~portation A cts. This proposal would. repeal 3 Acts which

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are no longer necessary. The Agricultural Marketing Act of 1946 provides authorities to effectively carry out the purposes of the Naval Stores Act of 1923 and the Wool Standards Act of 1928. There is no constructive purpose to be served by the Tobacco Seed and Plant Exportation Act of 1940 in its restriction of American exports to tobacco seed and plants for experimental purposes ony, since most of the tobacco producing countries of the world have well established research programs in tobacco seed breeding and production. Legislation to repeal these Acts was introduced in the 91st Congress as S. 568 but no action was taken.
(Dollars in thousands)
1973 1974 1975 1976 1977
Budget authority---------------------------------- -59 -59 -59 -59
Outlays----------------------------------------- -59 -59 -59 -59

ATTACHMENT B

(Circular No. A-19 Revised)

FIVE-YEAR PROJECTIONS FOR LEGISLATIVE PROPOSALS

Section 2-21(a) of Public Law 91-510, the Legislative Reorganization Act of 1970 (31 U.S.C. 11 (a) (12)), requires that the annual budget include project ions of appropriation requ 1 rements for four years beyond the budget year. The pertinent languagei o of that section is set forth below for ready reference.:t-n
"(12) with respect to each propos-al in the Budgret for new or additional legislation which would cr-eat e or expand any f unctions, activity, or authority, in addition to those functions, activities, and authorities then existing or as then being administered and operated, a tabulation showing" (A) the amount proposed in the Budget for appropriation and for expenditure in the ensuing fiscal year on -account of such proposal; and
"(B) the estimated appropriation required on account of such proposal in each of thie four fiscal years immediately following that ensuing fiscal year, during which 'such proposal is to be in effect."

CRITERIA FOR FIVE-YEAR PROJECTIONS
A. 021B Circular No. A-li1 provides that five-year projections for legislative proposals included in the annual budget are to be developed on the basis of the following criteria:
1. The estimates shown for the budget year will be the same as the amounts contained in the regular program and financing schedules for those ongoing activities which require additional authorizing legislation; and the amount contained in schedules headed, "Proposed for separate transmittal under proposed legislation."
2. Estimates should be provided at a. high level of program aggregation, avoiding relatively small details and program specifics for which five-year projects would be highly conjectural.
3. The 5-year estimates should be recognized as simple projections of cost (in constant dollars at prices existing at the time the estimates

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OFFICE OF '.NIANAGE.NIENT AND BUDGET \ \

are prepared), which: (a) are not intended to predict future economic conditions, and (b) do not reflect possible changes in the scope or quality of the 'program which might result from experience gained in actual practice.
4. In the case of legislation authorizing nonrecurring, one-time projects or activities, the estimates should provide for phasing the total cost over the period of time required for completion of the work involved.
5. In the case of legislation which extends ongoing programs, the forward projections should reflect only the discretionary program, decisions made for the budget year. That is, the future year estimates should be a simple extension of the budget-year program level, with exceptions to be considered only where the program level is determined by statutory or other provisions which make the future year size of the program uncontrollable (e.g., beneficiary population growth) ; or where the legislation or other provisions clearly add a new component or activity to an ongoing program or significantly revise an ongoing program (in which case the estimates should include an appropriate -amount to cover the cost of the added active y).
In the case of such legislation renewing or extending ongoing programs amounts for new substantive activities (i.e., activities not authorized in existing or expiring legislation or proposed reductions in activities) should be shown separately as nonadd entries. These entries should reflect only the increased (or decreased) costs due to policy changes proposed in the reauthorization legislation and should exclude the changes in funding requirements due to factors uncontrollable under current (or expiring) law, such as beneficiary population growth (or decline), etc.
6. Similarly, in the case of legislation authorizing now programs, the forward estimates should reflect only the discretionary decisions made for the budget year. Thus, the forward estimates will be a simple projection of the amount required for continuation on an annual basis of the approved program level that was incorporated in -the estimate for the budget year. The projection for future years may, if and only if appropriate, take account of uncontrollable factors such as population growth; for example, population growth (or other demographic factors) may be, considered if, and only if, it is clearly recognized in the legislation or other provisions as a determining factor in the size of the program.
B. The Budget of the United States G government, Fiscal Year 1973, Table 16, entitled "Legislative Proposals for Major New and Expanded Programs in the 1973 Budget," contains the following pertinent footnote :
"This table is supplied pursuant to the requirements of see. 221 (a) of the Legislative Reorganization Act of 1970 (Public Law 91-510). Except for cost-of-living adjustments for social security and veterans compensation, the estimates represent simple projections of cost expressed in constant dollars at prices existing at the time the estimates are prepared. They -are not intended to predict future economic conditions; they do not reflect possible changes in the scope or quality of the proposal which might result from experience gained in actual practice; nor do they reflect, in all cases possible reductions in the costs of other programs that may come about as a result of adoption of the

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proposals. Further, the resources which might appropriately be applied in later years will require a reexamination of the relative priorities of these and other Government programs, in the light of economic and other circumstances then prevailing. Thus, the estimates do nt represent a commitment as to amounts to be included in future budgets.
ATTACHMENT C

(Circular No. A-19 Revised)
PUBLIC LAW 89-554 (5 U.S.C. 2953)
"(a) Each report, recommendation, or other communication, of an official nature, of an executive agency which"(1) relates to pending or proposed legislation which, if enacted, will entail an estimated annual expenditure of appropriated funds in excess of $1,000,000.
"(2) is submitted or transmitted to the Congress or a committee thereof in compliance with law or on the initiative of the appropriate authority of the executive branch, and "(3) officially proposes or recommends the creation or expansion, either by action of the Congress or by adinistrative action, of a function, activity, or authority of the executive agency to be in addition to those functions, activities, and authorities thereof existing when the report, recommendation, or other communication is so submitted or transmitted; shall contain a statement concerning the executive agency, for each of the first 5 fiscal years during which each additional or expanded function, activity, or authority so proposed or recommended is to be in effect, setting forth the following information: "(A) The estimated maximum additional"(i) man-years of civilian employment, by general categories of positions;
"(ii) expenditures for personal services; and
"(iii) expenditures for all purposes other than personal services;
which are attributable to the function, activity, or authority which will be required to be effected by the executive agency in connection with the performance thereof; and
"(B) such other statement, discussion, explanation, or other information as is considered advisable by the appropriate authority of the executive branch or that is required by Congress or a committee thereof.
"(b) Subsection (a.) of this section does not apply to"(1) the Central Intelligence Agency;
"(2) a Government controlled corporation; or
"(3) the General Accounting Office."

PUBLIC LAW 91-510. THE LEGISLATIVE REORGANIZATION ACT OF 1970
SECTIONS 252(a) (2 U.S.C. 190]) AND 252(b)
Section 252(a) of the Act provides:
"(1) the report accompanying each bill or joint resolution of a public character reported by any committee of the Senate (except the Committee on Appropriations) shall contain909





OFFICE OF MANAGEMENT AND BUDGET

"(A) An estimate, made by such comfiittee, of the costs which would be -incurred in carrying out such bill or joint resolution in the fiscal year in which it is reported and in each of the five fiscal years following such fiscal year (or for the authorized duration of any program authorized by such bill or joint resolution, if less than five years), except that, in the cause of measures affecting the revenues, such reports shall require only an estimate of the gain or loss in revenues for a one-year period ; and
"1(B) a comparison of the estimate of costs described in subparagraph (a) made by such committee with any estimate of costs made by any Federal agency; or
"4(C) in lieu of such estimate or comparison, or both, a statement of the reasons why compliance by the committee with the requirements of subparagraph (A) or (B), or both, is impracticable.
"1(2) It shall not be in order in the Senate to consider any such bill or joint resolution if such bill or joint resolution was reported in the Senate after the effective date of this subsection and the report of that committee of the Senate which reported such bill or joint resolution does not comply with the provisions of paragraph (1) of this subsection,"
Section 252(b) amends the Rules of the House of Representatives by adding similar larrguage applicable to House committees.

ATTACHMENT D
(Circular No. A-19 Revised)
ExECuTivE OFFICE OF THE PRESIDENT, OFFICE OF MANAGEMENT AND BUDGET, 'Washington, D.C.
DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, Exvecutive Office of the President,
WasingonD.C. 20503
Attention: Assistant Director for Legislative Reference. Subject: Proposed report on H.R. 10000, 92d Congress.
The Department of Government has been requested to submit a report on the subject bill, which is identical with H.R. 9000 of the 91st Congress.
Will you please advise whether there is any objection to submitting the same report on the subject bill as was cleared by you on June 27, 1970, except for the following modifications:












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[Rev. Circular A-95]
Federal and Federally Assisted Programs and Projects
EVALUATION, Ri_, VlW AND COORDINATION
JANUARY 2, 1976.
1. Purpose. This Circular furnishes guidance to Federal agencies for cooperation with State and local governments in the evaluation, review, and coordination of Federal and federally assisted programs and projects. The Circular promulgates regulations (Attachment A) which provide, in part, for:
a. Encouraging the establishment of a project notification and review system to facilitate coordinated planning on an intergovernmental basis for certain Federal assistance programs in furtherance of section 204 of the Demonstration Cities and Metropolitan Development Act of 1966 and Title IV of the Intergovernmental Cooperation Act of 1968 (Attachment B).
b. Coordination of direct Federal development programs and projects with State, areawide, and local planning and programs pursuant to Title IV of the Intergovernmental Cooperation Act of 1968.
c. Securing the comments and views of State and local agencies which are authorized to develop and enforce environmental standards on certain Federal or federally assisted projects affecting the environment pursuant to section 102(2) (C) of the National Environmental Policy Act of 1969 (Attachment (C)) and regulations of the Council on Environmental Quality.
d. Furthering the objectives of Title VI of the Civil Rights Act of 1964.
This Circular supersedes Circular No. A-95 (Revised), dated November 13, 1973 (Part II, FEDERAL REGISTER, Vol. 38, No. 228, pp. 32874-32881, November 23, 1973). It will become effective February 27, 1976.
2. Basis. This Circular has been prepared pursuant to:
a. Section 401(a) of the Intergovernmental Cooperation Act of 1968 which provides, in part, that: The President shall * establish rules and regulations governing the formulation, evaluation and review of Federal programs and projects having a significant impact on area and community development. * and the President's Memorandum of November 8, 1968, to the Director of the Bureau of the Budget (FEDERAL REGISTER, Vol. 33, No. 221, November 13,1968) which provides: By virtue of the authority vested in me by section 301 of title 3 of the United States Code and section 401(a) of the Intergovernmental Cooperation Act of 1968 (Public Law 90-577), I hereby delegate to you the authority vested in the President to establish the rules and regulations provided for in that section governing the formulation, evaluation, and review of Federal programs and projects
A






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having a significant impact on area and community development, including pro:grams providing Federal assistance to the States and localities, to the end that "they shall most effectively serve these basic objectives.
In addition, I expect the Bureau of the Budget to generally coordinate the actions of the departments and agencies in exercising the new authorizations provided by the Intergovernmental Cooperation Act, with the objective of conavlstent and uniform action by the Federal Government.
b. Title IV, section 403, of the Intergovernmental Cooperation Act of 1968 which provides that:
The Bureau of the Budget or such other agency as may be designated by the President, is hereby authorized to prescribe such rules and regulations as are deemed appropriate for the effective administration of this Title.
c. Section 204(c) of the Demonstration Cities and Metropolitan Development Act of 1966 which provides that:
The Bureau of the Budget, or such other agency as may be designated by the President, shall prescribe such rules and regulations as are deemed appropriate for the effective administration of this section.
d. Reorganization Plan No. 2 of 1970 and Executive Order No. 11.541 of July 1, 1970, which vest all functions of the Bureau of the Budget or the Director of the Bureau of the Budget in the Director of the Office of Management and Budget.
3. Coverage. The regulations promulgated by this Circular (Attachment A) will have applicability:
a. Under Part I, to all projects and activities (or significant substantive changes thereto) for which Federal assistance is being sought under the programs listed in Attachment D or Appendix I of the Catalog of Federal Domertic Assistance whichever bears the later date. Limitations and provisions for exceptions are noted therein or under paragraph 8 of Part I.
b. Under Part II, to all direct Federal development activities, including the acquisition, use, and disposal of Federal real property; in addition, agencies responsible for granting licenses and permits for developments or activities significantly affecting area and community development or the physical environment are strongly urged to consult with clearinghouses on applications for such licenses or permits..
c. Under Part III, to all Federal programs as listed in Appendix II of the Catalog of Federal Domestic As~itawe, requiring, by statute or administrative regulation, a State plan as a condition of assistance.
d. Under Part IV, to all Federal programs providing assistance to State, areawide, or local agencies or organizations for multijurisdictional or areawide planning.
4. "A-95: What It Is--ow It Works." A fuller discussion of the background, purposes, and objectives of the Circular and of the requirements promulgated thereunder may be found in the brochure. A-95-. What It Is-How It Works," obtainable from the Office of
Management and Budget or from Federal Regional Councils.
5. "A-95 Administrative Notes." From time to time OMB will issue "A-95 Administrative Notes" providing interim determinations or interpretations on matters of national scope relating to administration of the Circular.
6. Federal Regional Couw&. Federal Regional Councils are responsible for coordinating the implementation of the requirements of this Circular at the Fedeial regional level. The Office of Management and Budget is responsible for policy oversight of the Circular and liaison

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with departmental and agency liaison officers on matters of national scale related to the requirements of the Circular.
7. Federal agency implementing procedures and regulations. Agencies will develop interim procedures and regulations implementing the requirements of this Circular revision which will become effective on February 27, 1976. The interim procedures and regulations will be published in the FEDERAL REGISTER no later than February 27, 1976. Agencies will promulgate final implementing procedures and regulations no later than April 29, 1976. OMB will assist and cooperate with agencies in developing such procedures and regulations.
8. Inquiries. Inquiries concerning this Circular may be addressed to the Regional A-95 Coordinator for the appropriate Federal Regional Council or to the Office of Management and Budget, Washington, D.C. 20503, telephone (202) -395-3031.
JAMES T. LYNN, Director.
A"rACHMENT A--CIRCULAR No. A-95 REVISED
Regulation U ler Section 04 of the Demonstration Cities and Metropolitan Development Act of 1966, Title IV of the Intcrgvernmntal Cooperation Act of 1968, and Section 102 (2) (C) of the National
Environmental Policy Act of 1969
PART I: PROJECT NOTIFICATION AND REVIEW SYSTEM
1. Purpose. The purpose of this Part is to:
a. Further the policies and directives of Title IV of the Intergovernmental Cooperation Act of 1968 by encouraging the establishment of a network of State and areawide planning and development clearinghouses which will aid in the coordination of Federal or federally assisted projects and programs with State, areawide, and local planning for orderly growth and development.
b. Implement requirements or 1 section 204 of the Demonstration Cities and Metropolitan Development Act of 1966 for metropolitan areas within that network.
c. Implement, in part, requirements of section 102(2) (C) of the National Environmental Policy Act of 1969, which require that State, areawide, and local agencies which are authorized to develop and enforce environmental standards be given an opportunity to comment on the environmental impact of Federal or federally assisted projects.
d. Provide public agencies charged with enforcing or furthering the objectives of State and local civil rights laws with opportunity to participate in the review process established under this Part.
e. Encourage, by means of early contact between applicants for Federal assistance and State and local governments and agencies, an expeditious process of intergovernmental coordination and review of proposed projects.
2. Notification of intent.
a. Any agency of State or local government or any oranization or individual undertaking to apply for assistance to a project or major substantive modification thereto under a Federal program covered by this Part will be required to notify both the State and areawide planning and development clearinghouse in the jurisdiction of which the
I So In original.

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project is to be located of its intent to apply for assistance at such time as it determines it will develop an application.
In the case of applications for projects involving land or water use and development or construction in the National Capital Region (as defined in section 1 (b) of the National Capital Planning Act of 1952, as amended) a copy of the notification will be sent to the National Capital Planning Commission (NCPC) in addition to the areawide clearinghouse and the appropriate State clearinghouse. NCPC is the official planning agency for the Federal Government in the National Capital Region.
In the case of an application in any State -for an activity that is Statewide or broader in nature (such as for various types of research) and does not affect nor have specific applicability to areawide or local planning and programs, the notification need be sent only to the State clearinghouse. Involvement of areawide clearinghouses in the review in such cases will be at the initiative of the State clearinghouse.
Notifications will include a summary description of thecproject for which assistance will be sought. The summary description will contain the following information, as appropriate and to the extent available:
(1) Identity of the applicant agency, organization, or individual.
(2) The geographic location of the project to be assisted. A map should be provided, if appropriate.
(3) A brief description of the proposed project to be assisted. A map should be scale, estimated cost, beneficiaries, or other characteristics which will enable the clearinghouses to identify agencies of State or local government having plans, programs, or projects that might be affected by the proposed projects.
(4) A statement as to whether or not the applicant -has been advised by the funding agency from which assistance is being sought that he will be required to submit environmental impact information in connection with the proposed project.
(5) The Federal program title and number and agency under which assistance will be sought as indicated in Attachment D or the latest Catalog of Federal Domestic Assistance. (The Catalog is issued annually in the spring and is updated during the year.) In the case of programs not listed therein, programs will be identified by Public Law number or U.S. Code citation.
(6) The estimated date the applicant expects to formally file an application. Many clearinghouses have developed notification forms and instructions. Applicants are urged to contact their clearinghouses for such information in order to expedite clearinghouse review.
b. In order to assure maximum time for effective coordination and so as not to delay the timely submission of the completed application to the funding agency, notifications containing the preliminary information indicated above should be sent at the earliest. feasible time.
c. Applicants from federally recognized Indian tribes are not subject to the requirements of this Part. However, Indian tribes may voluntarily participate in the Project Notification and Review System and are encouraged to do so. Federal agencies will notify the appropriate State and areawide clearinghouses of any applications from federally recognized Indian tribes upon their receipt. 'Where a federally recognized Tribal Government has established a mechanism for coordinating the activities of Tribal departments, divisions, enterprises,


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and entities, Federal agencies will, upon request of such Tribal Government transmitted through the Office of Management and Budget, require that applications for assistance under programs covered by this Part from such Tribal departments, divisions, enterprises, and entities be subject to review by such Tribal coordinating mechanism as though it were a State or areawide clearinghouse.
3. Clearinghouse functions. Clearinghouse functions include:
a. Evaluating the significance of proposed Federal or federally assisted projects to State, areawide, or local plans and programs.
b. Receiving and disseminating project notifications to appropriate State and multistate agencies in the case of the State clearinghouse and to appropriate local governments and agencies and regional organizations in the case of areawide clearinghouses: and providing liaison, as may be necessary, between such agencies or bodies and the applicant. In the case of units of general local government, notifications of all projects affecting his jurisdiction will, if requested, be sent to the chief executive of such unit by the areawide clearinghouse or to such-central agency as he may designate for review and reference to appropriate agencies of such unit.
c. In the case of projects under programs covered by this Part located in the coastal zone, as defined in the Coastal Zone Management Act of 1972, assuring that the State agency. if other than the State clearinghouse, responsible for administration of the approved program for the management of the coastal zone. is given opportunity to review the project for its relationship to such program and its consistency therewith.
d. Assuring, pursuant to section 102(2) (C) of the National Environmental Policy Act of 1969, that appropriate State. multistate, areawide, or local agencies which are authorized to develop and enforce environmental standards are informed of and are given opportunity to review and comment on the environmental significance of proposed projects for which Federal assistance is sought.
e. Providing public agencies charged with enforcing or furthering the objectives of State and local civil rights laws with opportunity to review and comment on the civil rights aspects of the project for which assistance is sought.
f. Providing, pursuant to Part II of these regulations, liaison between Federal agencies" contemplating direct Federal development projects and the State or areawide agencies or local governments having plans or programs that might be affected by the proposed project.
g. In the case of a project for which Federal assistance is sought by a special purpose unit of local government, clearinghouses will assure that any unit of general local government having jurisdiction over the area in which the project is to be located has opportunity to confer, consult, and comment upon the project and the application.
h. Where areawide clearinghouse jurisdictions are contiguous, coordinative arrangements should be established between the clearinghouses in such areas to assure that projects in one area which may have an impact on the development of a contiguous area are jointly studied. Any comments and recommendations made by or through a clearinghouse in one area on a project in a contiguous area will accompany the application for assistance to that project.


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4. C/onmuttation and revieW,1 a. State and areawide clearinghouses maay have a period of 30 days after receipt of a project notification in which to inform State and multistate agencies and local or regional governments or agencies (including agencies referred to in subparagraphs c, d, and e, above) that may be affected by the proposed project and arrange, as may be necessary, to consult with the applicant thereon. The review may be completed in this period and comments may be submitted to the applicant.
b. If the review is not completed during this period, the clearinghouse may work with the applicant in the resolution of any problems raised by the proposed project during the period in which the application is being completed.
c. In cases where no project notification has been submitted and the clearinghouse receives only a completed application, it may have 60 days to review the completed application. If a completed application is submitted during the first 30 days after a notification has been submitted,, the clearinghouse may have 30 days plus the number of days remaining in the initial 30 day notification period to complete its review. In all other cases, the clearinghouse may have 30 days to review a completed application. Where clearinghouses have not completed their reviews during the 30 day notification period, they are strongly urged to give the applicant formal notice to that effct. Where reviews have been completed prior to completion of an application, an information copv will be supplied to the clearinghouse, upon request, when the application is submitted to the funding agency.
d. Written comments submitted to the areawide clearinghouse by other jurisdictions, agencies, or parties will be included as attachments to the comments of areawide clearinghouses, when they are at variance with the clearinghouse comments; -and others from whom comments were solicited and received should be listed.
e. Under some programs, applicants--primarily nongovernmentalare required to submit confidential information to the funding izgency. Such information may relate to the applicant's financial status or structure (e.g., overall investment program or holdings); to personnel (e.g., personal histories of project officers) or may involve proprietary information (e.g., industrial processes, research ideas). Such confidential information need not be included with applications submitted to clearinghouses for review.
f. Applicants will include with the completed application as submitted to the Federal agency (or to the State -agency in the case of projects for which the State, under certain programs has final project
-approval) :
0(1) All comments and recommendations made by or through clearinghouses, along with a statement that such comments have been considered prior to submission of the application; or
(2) Where no comments have been received from a clearinghouse, a statement that the procedures outlined in this section have been followed and that no comments or recommendations have been received.
g,. Applications for renewal or continuation grants or applications not submitted to or acted on by the funding agency within one year after completion of clearinghouse review will be subject to re-review upon request of the clearinghouse.


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5. Subject matter Of commets and recmmndati o Comments and recommendations made by or through clearinghouses with respect to any project are for the purpose of assuring maximum consistency of such project with State, areawide, and local comprehensive plans. They are also intended to assist the Federal agency (or State agency, in the case of projects for which the State under certain Federal grants has final project approval) administering such a program in determming whether the project is in accord with applicable Federal law, particularly those requiring consistency with State, areawide, or local plans. Comments or recommendations may include, but need not be limited to, information about:
a. The extent to which the project is consistent with or contributes to the fulfillment of comprehensive planning for the State, area, or locality.
b. The extent to which the proposed project:
(1) Duplicates, runs counter to, or needs to be coordinated with other projects or activities being carried out in or affecting the area; or
(2) Might be revised to increase its effectiveness or efficiency in relationship to other State, area, or local programs and projects.
c. The extent to which the project contributes to the achievement of State, areawide, and local objectives and priorities relating to natural and human resources and economic and commmity development as specified in section 401 of the Intergovernmental Cooperation Act of 1968, including:
(1) Appropriate land uses for housing, commercial, industrial, governmental, institutional, and other purposes;
(2) Wise development and conservation of natural resources, including land, water, mineral, wildlife, and others;
(3) Balanced transportation systems, including highway, air, water, pedestrian, mass transit, and other modes for the movement of people and goods;
(4) Adequate outdoor recreation and open space;
(5) Protection of areas of unique natural beauty, historical and scientific interest;
(6) Properly planned community facilities, including utilities for the supply of power, water, and communications, for the safe disposal of wastes, and for other purposes; and
(7) Concern for high standards of design.
d. As provided under section 102(2) (C) of the National Environmental Policy Act of 1969, the extent to which the project significantly affects the environment including consideration of:
(1) The environmental impact of the proposed project;
(2) Any adverse environmental effects which cannot be avoided should the proposed project be implemented;
3) Alternatives to the proposed project;
4) The relationship between local short term uses of man's environment and the maintenance and enhancement of long term productivity; and
(5) Any irreversible and irretrievable commitments of resources which would be involved in the proposed project or action, should it be implemented.
e. Effects on energy resource supply and demand.


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f. The extent to which people or businesses -will be displaced and the availability of relocation resources.
g. As provided under section 307 (d) .of the Coastal, Zone Management Act of 1972, in the case of a project located in the coastal zone, the relationship of the project to the approved State program -for the management of the coastal zone and its consistency therewith.
h. The extent to which the project contributes to more balanced patterns of settlement and delivery of services to all sectors of the area population, including minority groups.
i. In the case of a project for which assistance is being sought by a special purpose unit of local government, whether the unit of general local government having jurisdiction over the area in which the proj-. ect is to be located has a pplied, or plans to apply, for assistance for the same or a similar type project. This information is necessary to enable the Federal (or State) agency to make the judgments required under section 4029 of the Intergovernmental Cooperaiion Act of 1968.
6 Federal agency procedures. Federal agencies having programs covered under this Part will develop appropriate procedures for:
a. Informing potential applicants for assistance under such programs of the requirements of this Part (1) in program information materials, (2) *in response to inquiries respecting application procedures. (3) in pre-application conferences, or (4) by other means which will assure earliest contact between applicant and clearinghouses.
b. Assuring that all applications for assistance under programs covered by tIs part have been submitted to appropriate clearinghouses for review prior to their submission to the funding agency. Applications that do not carry evidence that both areawide and Stae cearinghouses have been given an opportunity to review the application will be returned to the applicant with instructions to fulfill the requirements of this Part. Agencies will insure' that all applications contain a State Application Identifier (SAL) number. (This is mandatory for use in notifying clearinghouses of action taken on the application.)
c. Notifying such clearinghouses within seven working days of any major action taken on such applications that have been reviewed by said clearinghouses. Major actions will include awards, rejections, returns for amendment, deferrals, or withdrawals. The standard multipurpose form, SF 424, promulgated by Federal Management Circular 74-7, will be used for this purpose,, unless a waiver has been granted by 0MB. (See Attachment E.)
d. Where a clearinghouse has recommended. against approval of an application or approval only with specific and major substantive changes, and the funding agency approves the application substantiallyas submitted, the ending agency will provide the clearinghouse, along with the action notice, an explanation therefor.
e. Where a clearinghouse has recommended against approval of a project because it conflicts with or duplicates another Federal or federally assisted project, the funding agency will consult with the agency assisting the reference projects prior to acting,. if it plans to approve the application.
f. Assuring, in the case of an application submitted by a special purpose unit of local government, where accompanying comments indicate that the unit of general local government having jurisdiction


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over the area in which the project is to be located has submitted or plans to submit an application for assistance for the same or a similar type project, that appropriate considerations and preferences as specified in section 402 of the Intergovernmental Cooperation Act of 1968, are accorded the unit of general local government. Where such preference cannot be so accorded, the agency shall supply, in writing, to the unit of general local government and the Office of Management and Budget its reasons therefor.
7. Housing programs. For housing programs of the Department of Housing and Urban Development, the Veterans Administration, and the Farmers Home Administration of the Department of Agriculture the following procedures will be followed, except as provided in subparagraph d below:
a. The appropriate HUD. VA, or USDA/FHA office will transmit to the appropriate State and areawide clearinghouses a copy of the initial application for project approval.
b. Clearinghouses will have 30 days from receipt to review the applications and to forward to the HUD. VA. or USDA/FHA office any comments which they may have, including observations concerning the consistency of the proposed project with State and areawide development plans, the extent to which the proposed project will provide housing opportunities for all segments of the community, and identification of major environmental concerns including impact on energy resource supply and demand. Processing of applications in the HUD, VA, or USDA/FHA office will proceed concurrently with the clearinghouse review.
c. This procedure will include only applications involving new construction or substantial rehabilitation and will apply to applications for loans, loan guarantees, mortgage insurance, or other housing assistance:
(1) In Urbanized Areas, as defined by the U.S. Bureau of the Census (see Appendix A, 1970 Census of Population, Characteristics of the Population or Characteristics of Housing), to:
(a) Subdivisions having 25 or more lots.
(b) Multifamily projects having 50 or more dwelling units.
(c) Mobile home courts with 50 or more spaces.
(d) College housing provided under the debt service or direct loan student programs for 200 or more students.
(2) In all other areas, to:
(a) Subdivisions having 10 or more lots.
(b) Multifamily projects having 25 or more dwelling units.
(c) Mobile home courts with 25 or more spaces.
(d) College housing provided under the debt service or direct loan program for 100 or more students.
d. As an alternative to the above procedure, the developer may submit his application directly to the appropriate clearinghouses prior to submitting it to the Federal agency. In such cases, the application, when submitted to the Federal agency, will be accompanied by the comments of the clearinghouses.
e. Exemption : Applications for additional units in a subdivision substantially completed (i.e., with streets, water and sewer facilities, culverts, etc.) are exempted from this requirement when:



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(1) The subdivision was approved and/or recorded by the appropriate unit of local government within three years of the application submittal.; and
S(2) In cases of subdivisions approved more than three years prior, the clearinghouses waive the requirement. This exemption does not apply to applications for housing in an undeveloped subdivision or in proposed extensions of existing subdivisions.
8. Coverage, exceptions, and variations. a. Generally, this Part of this Circular and the laws on which it is based are concerned with programs providing financial assistance to projects and activities which have an impact on State, areawide, and local development, including development of natural, economic, and human resources. This Part is concerned with achieving the most effective and efficient utilization of Federal assistance programs through coordination among and between Federal, multistate, State, areawide, and local plans and programs and the elimination of conflict, overlap, and'duplication of projects and activities under -such programs. Coverage under this Part includes, or will be extended from time to time as deemed necessary and practicable to include programs bearing upon these concerns and objectives.
Ib. Programs not considered appropriate to this Part are programs of the following typs
(1) Direct financial assistance to individuals or families for housing, welfare, health care services, education, training, economic improvement, and other direct assistance for individual and family enhancement.
(2) Incentive payments or insurance for private sector activities not involving real property development or land use and development.
(3) Agricultural crop supports or payments.
(4) Assistance to organizations and institutions for the provision of education or training not designed to meet the needs of specific individual States or localities.
i(5) Research, not involving capital construction, which is national scope or is not resigned 1 to meet the needs or to address problems of a particular State, area, or locality (except in the case of -demonstration or pilot research programs where projects may have an impact on the community or area in which they are being conducted).
(6) Assistance to educational, medical, or similar service institutions or agencies for internal staff development or management improvement purposes.
(7) Assistance to educational institutions for activities that are part of a school's regular academic program and are not related to local p rograms of health, welfare, employment, or other social services.
(8) Assistance for construction involving only routine maintenance, repair, or minor construction which does not change the use or the scale or intensity of use of the structure or f acility.
c. 0MB will consider Federal agency requests for exemption of certain classes of projects or activities. under programs otherwise covered which:I
(1) Meet any of the above characteristics of programs inappropriate for coverage under this Part;
I So In original.

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(2) Are of small scale or size or are highly localized as to impact: or (3) Display other characteristics which might make review impractical.
d. OMB will consider Federal agency requests for procedural variations from normal review processes:
(1) On a temporary basis for programs with time constraints brought about because of start up requirements or other unusual circumstances beyond the control of the funding agency. (Note: Delay in fund availability is not normally an acceptable reason for a variation. When a delay is anticipated, applicants should be instructed to have their applications reviewed by clearinghouses in readiness for submission when funds become available.)
(2) For programs where statutory or related procedural limitations make the normal review processes impracticable.
e. All requests from Federal agencies for exemptions or procedural variations should be addressed to the Associate Director for Management and Operations, Office of Management and Budget.
f. Individual clearinghouses may exempt certain types of projects from review for reasons indicated above or for other reasons appropriate to the State or area.
g. Applicants should be made aware that, in various States, State law requires review of applications for Federal assistance under various programs not covered by this Part. Implementation of such laws is enforced through State rules and regulations, and applicants are urged to ascertain the existence of such laws and to acquaint themselves with applicable State procedures.
9. Joint funding. Applications for assistance to activities under the Joint Funding Simplification Act (P.L. 93-510) or any other joint funding authority, which involve activities funded under one or more of the programs covered under this Part, will be subject to the requirements of this Part.
10. Agen-y procedures and regulations. a. Proposed agency procedures and regulations for implementing the requirements of this Part will be published in the FEDERAL REGISTER as specified in paragraph 7 of this Circular. Programs to which the procedures and regulations will apply will be cited by their numbers in the Cataloq of Federal Domestwc As,* tanwe. Where such numbers have not yet been assigned, programs will be referenced by Public Law and section or by U.S. Code citation. Subsequent amendments to such procedures and regulations will also be published pursuant to paragraph 7 of the Circular.
b. As a part of such proposed procedures and regulations published in the FDiFuLP RFisn1-, agencies may identify specific types of projects which they believe should be exempt from coverage under programs for which proposed procedures and regulations are being published. Such publication will constitute a formal request for exemption to the Oice of Management and Budget, to which it will respond in its review of the proposed procedures and regulations.
c. OMB will assist and cooperate with agencies in developing such procedures and regulations.
d. A copy of agency internal procedures for implementation of this Part, if not contained inL the above procedures and regulations, will be sent to the Associate Director of the Office of Management and Budget for Management and Operation.

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11. Repo-rts and directories. a. The Director of the. Office of 'Management A nd Budget may require reports, -from time to -time, on the implementation of this Part.
b. The Office of Ma nagement'and Budget will maintain and distribute to appropriate Federal agencies a directory of State and areawide clearinghouses.
c. The Olffice of Management and Budget will notify Federal Regional Councils, clearinghouses, and Federal agencies of any excepted categories of projects under covered programs.

PART II: DIRECT FEDERAL DEVELOPMENT
1. Purpose. The purpose of this Part is to:
a. Provide State and local government with information on projected Federal development so as to facilitate coordination with-State, areawide, and local plans and programs.
b. Provide Federal agencies wih information on the relationship of proposed direct Federal development projects and activities to State,. areawide, and local plans and programs; and to assure maximum feasible consistency of Federal developments with State, areawide, and local plans and programs.
c. Provide Federal agencies with information on the possible impact on the environment of proposed Federal development.
2. Coordination of direct TFederal development 'projects with State,. ctreawide, and local development, a. Federal agencies having responsibility for the planning and construction of Federal buildings and installations or other Federal public works or development or for the acquisition, use, and disposal of Federal land and real property will establish procedures for:
(1) Consulting with Governors, State and areawide clearinghouses,, and local elected officials at the earliest, practicable stage in project or development planning on the relationship of any plan or project to the development plans and programs of the State, area, or locality in which the project is to be located. 'In the case of projects in the National Capital Region, such consultation should be undertaken in co-operation with the National Capital Planni.ng Commi ssion.
(2) Assuring that any such ederal plan or project is consistent or compatible with State, areawide, and local development plans -and programs identified in the course of such consultations. Exceptions will be made only where there "is clear justification. Explanation of any necessary inconsistency or incompatibility will be provided, in, writing, to the appropriate clearinghouses.
(3) Providing State, areawide,' and local agencies which are authorized to develop and enforce environmental standards 'with. adequate opportunity to review such Federal plans and projects pursuant to section 102(2) (C) of the National Environmental Policy Act of 1969. Any comments of such agencies will accompany the environ-mental impact statement submitted by the Federal agency.
(4) Providing, in the case of projects located in-the coastal zone, the State agency responsible for admiinistration of the approved program for the management of the coastal zone with opportunity to review the relationship of the proposed project to such program and its consistency therewith.

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(5) Providing, through the appropriate clearinghouses, Health Systems Agencies and State Health Planning and Development Agencies designated pursuant to the National Health Planning and Resources Development Act of 1974 with adequate opportunity to review Federal projects for construction and/or equipment involving Capital expenditures exceeding. $200,000 for modernization, conversion, and. expansion of Federal inpatient care facilities, which alter the bed capacity or modify the primary function of the facility, as well as plans for provision of 'major new medical care services. (Excluded are projects to renovate or install mechanical systems, air conditioning systems, or other similar internal system modifications.) The agencies are expected to evaluate proposed Federal projects for consistency with arcawide and local health delivery plans and health supply-demand situations, as well as considering clearinghouse comments on such specific points as those listed in paragraph 5 of Part L. The comments of such agencies and any clearinghouise comments -will accompany the plan and budget requests submitted by the Federal agency to the Office of Management and Budget or a certification that the agencies and clearinghouses had been provided a reasonable time to comment and had failed to do so.
3. Use of clearinghouses. The State and areawide planning and development clearinghouses established pursuant to Part I will be utilized to the greatest extent practicable to effectuate the requirements of this Part. Agencies are urged to establish early contact with clearinghouses to work out arrangements for carrying out the consultation and review required under this Part, including identification of types of projects considered appropriate for consultation and review. Clearinghouses may utilize criteria set forth in paragraph 5 of Part I in evaluating direct Federal development projects.
4. Federal icene.q and permnits-. Agencies responsible for grantingr Federal licenses and permits for development projects and activities which would have a significant impact on State. interstate, areawide, or local development plans or programs or on the environment are strongly urged to consult with -Sla~te and areawide clearingr-houses and to seek their evaluations of suchi impacts prior to grantingr suich licenses or permits.
5. Agency procedures and regulations. a. To the greatest extent possible, agencies enpraged in direct Federal development activities will follow the general procedures outlined under Part I of Attachment A in affording State and areawide clearinghouses opportunities to review and comment on plans and developments.
b. Where legislative or executive constraints or related circumstances do not permit following such procedures, agency procedures and regulations -will set forth for each program at a minimum:
(1) The point in project planning at which clearinghouses will be contacted;
(2) The minimum time clearinghouses will be afforded to review theproposed project;
(3) The minimum information to be provided to the clearinghouses;and
(4) Procedures for notifying clearinghouses on actions taken on, such project (implementation, timing, postponement, abandonment)923





OFFICE OF MANAGEMENT AND BUDGET
and explaining actions taken contrary to clearinghouse recommendations.
c. The Office of Management and Budget will consider other procedures such as memoranda of agreement between Federal installations and clearinghouses for coordinating Federal and civilian planning, that are designed to achieve the objectives of this Part. d. All proposed agency procedures and regulations to implement this Part will be published in the FErnCW REGISTER pursuant to paragraph 7 of the Circular. OMB will assist and cooperate with agencies in developing such procedures and regulations.

PART I : fTATE PLANS
1. Purpose. The purpose of this Part is to provide Federal agencies with information about the relationship to State or areawide comprehensive planning of State plans which are required or form the basis for funding under various Federal programs.
2. State plam. To the extent not presently required by statute or administrative regulation, Federal agencies administering programs requiring by statute or regulation a State plan as a condition of assistance under such programs will require that the Governor, or his delegated agency, be given the opportunity to comment on the relationship of such State plan to comprehensive and other State plans and programs and to those of affected areawide or local jurisdictions. The Governor is urged to involve areawide clearinghouses in the review of State plans, particularly where such plans have specific applicability to or affect areawide or local plans and programs.
a. The Governor will be afforded a period of 45 days in which to make such comments, and any such comments will be transmitted with the plan.
b. A "State plan" under this Part is defined to include any required supporting planning reports or documentation that indicate the programs, projects, and activities for which Federal funds will be utilized. Such reports or documentation will also be submitted for review at the.request of the Governor or the agency he has designated to perform review under this Part.
c. Programs requiring State plans are listed in Appendix II of the Catalog of Federal Domestic Assistance.
PART IV: COORDINATION OF PLANNING IN MULTIJUISDICTIONAL AREAS
1. Policies and objectives. The purposes of this Part are:
a. To encourage and facilitate State and local initiative and responsibility in developing organizational and procedural arrangements for coordinating comprehensive and functional planning activities.
b. To eliminate overlap, duplication, and competition in areawide planning activities assisted or required under Federal programs and to encourage the most effective use of State and local resources available for planning.
c. To minimize inconsistency among Federal administrative and approval requirements laced on areawide planning activities.
d. To encourage the States to exercise leadership in delineating and establishing a system of planning and development districts or regions


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in each State, which can provide a consistent geographic base for the planning and coordination of Federal, State, and local development programs.
e. To encourage Federal agencies administering progoTams assisting or requiring areawide planning to utilize agencies that have been designated to perform areawide comprehensive planning in planning and development districts or regions established pursuant to subparagraph d above (generally, areawide clearinghouses designated pursuant to Part I of Attachment A of this Circular) to carry out or coordinate planning under such programs. In the case of interstate metropolitan areas, agencies designated as metropolitan areawide clearinghouses should be utilized to the extent possible to carry out or coordinate Federally assisted or required areawide planning.
2. Common or consistent planning and development districts or regions. a. Prior to the designation or redesignation (or approval thereof) of any planning and development district or region under any Federal program, Federal agency procedures will provide a period of 30 days for the Governor(s) of the State(s) in which the district or region will be located to review the boundaries thereof and comment upon its relationship to planning and development districts or regions established by the State. 'Where the State has established such planning and development districts, the boundaries of areas designated under Federal programs will conform to them unless there is clear justification for not doing so.
b. Where the State has not established planning and development districts or regions which provide a basis for evaluation of the boundaries of the area proposed for designation, major units of general local government and the appropriate Federal Regional Council in such areas will also be consulted prior to designation of the area to assure consistency with districts established under inter-local agreement and under related Federal programs.
c. The Office of Management and Budget will be notified through the appropriate Federal Regional Council by Federal agencies of any proposed designation and will be informed of such designation when it is made, including such justifications as may be required under subparagraph a above.
3. Common and consistent planning bases and coordination of related activities in multijurisdictional areas. Each agency will develop procedures and requirements for applications for multijurisdictional planning and development assistance under appropriate programs to assure the fullest consistency and coordination with related planning and development being carried on by the areawide comprehensive planning agency or clearinghouse designated under Part I of this Circular in the multijurisdictional area.
Such procedures shall include provision for submission to the funding agency by any applicant for multijurisdictional planning assistance, if the applicant is other than an areawide comprehensive planning agency referred to in paragraph le of this Part, of a memorandum of agreement between the applicant and such areawide comprehensive planning agency covering the means by which their planning activities will be coordinated. The agreement will cover but need not be limited to the following matters:


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a. Identification of relationships between the planning proposed by the applicant and that of the areawide agency and of similar or related activities that will require coordination;
b. The organizational and procedural arrangements for coordinating such activities, such as: Overlapping board membership, procedures for joint rev Iiews -of. projected activities and policies, information exchange, etc.;
c. Cooperative arrangements for sharing planning resources (funds, personnel, facilities, and services);
d. Agreed upon base data, statistics, and projections (social, economic, demographic) on the basis of which planning in the- area will proceed.
Where an applicant has been unable to effectuate such an agreement, he will submit a statement indicating the efforts he has made to secure agreement and the issues that have prevented it. In. such case, the funding agency, in consultation with the Federal Regional Council and the State clearinghouse designated under Part I, will undertake, within a 30 days period after receipt of the application, resolution of the issues before approving the application, if it is otherwise in good
-order.
4. Joint funding. Where it will enhance the quality, comprehensive 'scope, and. coordination of planning in multijurisdictional areas, Fe~deral agencies will, to the extent practicable, provide for joint funding of planning activities being carried on therein.
5. Coordination of agency procedures and regulations. With respect to the steps called for in paragraphs 2 and 3 of this Part, departments a,,qnd agencies w ill develop for relevant programs appropriate draft. procedures and~ regulations which will be published in the FEDERnAL REGISTER pursuant to paragraph T of this Circular. Copies of such d rafts will be furnished to the Director of the Office of Management and Budget and to the heads of departments and agencies administering related programs. The Office, in consultation with the agencies, will review the draft procedures and regulations to assure the maximum Obtainable consistency among them.

PART V: DEFINITIONS
Term used in this Circular will have following meanings:
1. Federal agency-any department, agency, or instrumentality in the executive branch of the Government and any wholly owned 'Government corporation.
2. State-any of the several States of the United States, the District
-of Columbia, Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State, but does not include the governments of the political subdivisions of the State.
3. Unit of general local government-any city, county, town, parish, village, or other general purpose political subdivision of a State.
4. Special purpose unit of local government-any -special district, public purpose corporation, or other strictly limited purpose political subdivision of a State, but shall not include a school district.
5. Federal assistance, Federal financial assistance, Federal assistance program, or federally assisted programs-programis that provide assistance through grant or contractual arrangements. They


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include technical assistance programs, or programs providing assistance in the form of loans, loan guarantees, or insurance. The term does not include any annual payment by the United States to the District of Columbia authorized by article VI of the District of Columbia Revenue Act of 1947 (D.C. Code sec. 47-2501a and 47-2501b).
6. Funding agency. The Federal agency or, in the case of certain formula grant programs, the State agency which is responsible for final approval of applications for assistance.
7. Comprehensive planning, to the extent directly related to area needs or needs of a unit of general local government, including the following:
a. Preparation, as a guide for governmental policies and action, of general plans with respect to:
(1) Pattern and intensity of land use.,
(2) Provision of public facilities (including transportation facilities) and other government services.
(3) Effective development and utilization of human and natural resources.
b. Preparation of long range physical and fiscal plans for such action.
c. Programming of capital improvements and other major expenditures. based on a determination of related urgency, together with definitive financing plans for such expenditures in the earlier years of the program.
d. Coordination of all related plans and activities of the State and local governments and agencies concerned.
e. Preparation of regulatory and administrative measures in support of the foregroing.
8. M tropolitan area-a standard metropolitan statistical area as established bv the Office of Management and Budget, subject, however, to such modifications and extensions as the Oflice of Management and Budget may determine to be appropriate for the purposes of section 204 of the Demonstration Cities and MIetropolitan Development Act of 1906, and these Regulations.
9. Areawide-Cominprising, in metropolitan areas, the whole of contiguous urban and urbanizing areas; and any nonmetropolitan areas, contiguous counties or other multijurisdictional areas having coinmmon or related social, economic, or physical characteristics indicating a community of developmental interests; or, in either, the area included in a substate district designated pursuant to paragraph id, Part IV, Attachment A of this Circular.
10. Planning and development clearinghouse or clearinghouse includes:
a. "State cleari'gho'se"-an agency of the State Government desigiated by the Governor or by State law to carry out the requirements of Part I of Attachment A of this Circular.
b. "Areawide clearingho use"- (1) In nonmetropolitan areas a comprehensive planning agency designated by the Governor (or
Governors in the case of regions extending into more than one State) or by State law to carry out requirements of this Circular; or
(2) In metropolitan areas an areawide agency that has been recognized by the Office of Management and Budget as an appropriate


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agency to perform review functions under section 204 of the Demonstration Cities and Metropolitan Development Act of 1966, Title IV of the Intergovernmental Cooperation Act of 1968, and this Circular.
11. Multi Juisdictional area-any geographical area comprising, encompassing, or extending into more than one unit of general local government.
12. Planning and development district or region-a mu ltijurisdictional area that has been formally designated or recognized as an appropriate area for planning under State law or Federal program requirements.
13. Direct Federal developmnt-planning -and construction of public works, physical facilities, and installations or land and real property development (including the acquisition, use, and disposal of real property) undertaken by or for the use of the Federal Government or any of its agencies; or the leasing of real property for Federal use where the use or intensity of use of such property will be substantially altered.
ATTACHMENT B-CIcLAR No. A-95 RvIsF
Section 204 of the Demonstration Cities and Metropolitan Development Act of 1966 as amended (80 Stat. 1263, 82 Stat. 208)
"SEc. 204. (a) All applications made after June 30,1967, for Federal loans or grants to assist in carrying out open-space land projects or for planning or construction of hospitals, airports, libraries, water supply and distribution facilities, sewage facilities and waste treatment works, highway, transportation facilities, law enforcement facilities, and water development and land conservation projects within any metropolitan area shall be submitted for review"(1) to any areawide agency which is designated to perform metropolitan or regional planning for the area within which the assistance is to be used, and which is, to the greatest practicable extent, composed of or responsible to the elected officials of a unit of areawide government or of the units of general local government within whose jurisdiction such agency is authorized to engage in such planning, and
"(2) if made by a special purpose unit of local government, to the unit or units of general local government with authority to operate in the area within which the project is to be located.
"(b) (1) Except as provided in paragraph (2) of this subsection, each application shall be accompanied (A) by the comments and recommendation with respect to the project involved by the areawide agency and governing bodies of the units of general local government to which the application has been submitted for review, and (B) by a statement by the applicant that such comments and recommendations have been considered prior to formal submission of the application. Such comments shall include information concerning the extent to which the project is consistent with comprehensive planning developed or in the process of development for the metropolitan area or the unit of general local government, as the case may be, and the extent to which such project contributes to the fulfillment of such planning. The comments and recommendations and the statement reerred to in this paragraph shall, except in the case referred to in paragraph (2) of this subsection, be reviewed 'by the agency of the

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Federal Government to which such application is submitted for the sole purpose of assisting it in determining whether the application is in accordance with the provisions of Federal law which govern the making of the loans or grants.
"1(2) An application for a Federal loan or grant need not be accompanied by the comments and recommendations and the statements referred to in paragraph b (1) of this subsection, if the applicant certifies that a plan or description of the project, meeting the requirements of such rules and regulations as may be prescribed under subsection (c), or such application, has lain before an appropriate areawide agency or instrumentality or unit of general local government for a period of sixty days without comments or recommendations thereon being made by such agency or instrumentality.
"(3) The requirements of paragraphs (1) and (2) shall also apply to any amendment of the application which, in light of the -purposes of this title, involves a major change in the project covered by the application prior to such amendment.
(c) The Bureau of the Budget, or such other agency as may be designated by the President, is hereby authorized to prescribe such rules and regulations as are deemed appropriate for the effective administration of this section."

TITLE IV OF THE INTERGOVERNMENTAL COOPERATION ACT OF 1968 (82 STAT. 1103)
"~Title IV-Coordinated Intergovernmental Policy and Admiis
tration of Development Assistance Pro grcun8"

"Declaration of deveiajnment assistance polic~y"1
"SEc. 401. (a) The economic and social development of the Nation and the achievement of satisfactory levels of living depend upon the sound and orderly development of all areas, both'urban and rural. Moreover, in a time of rapid urbanization, the sound and orderly development of urban communities depends to a large degree upon the social and economic health and the sound development of small communities and rural areas. The President shall, therefore, establish rules and regulations governing the formulation, e valuation, and review of Federal programs and projects having a significant impact on area and community development including programs providing Federal assistance to the States and localities, o the end that they shall most ,effectively serve these basic objectives. Such rules and regulations shall provide for full consideration of the concurrent achievement of the following specific objectives and, to the extent authorized by law, reasoned choices shall be made between such objectives when they conflict:
"c(1) Appropriate land uses for housing, commercial, industrial, governmental, institutional, and other purposes;
(2) Wise development and conservation of natural resources, inceluding land, water, minerals, wildlife, and others;
(3) Balanced transportation systems, including highway, air, water, pedestrian, mass transit, and other modes for the movement of people and goods;.
"(4) Adequate outdoor recreation and open space;


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"(5) Protection of areas of unique natural beauty, historical and
scientific interest;
"(6) Properly planned community facilities, including utilities for
the supply of power, water, and communications, for the safe disposal of wastes, and for other purposes; and
"(7) Concern for high standards of design.
"(b) All viewpoints-national, regional, State and local-shall, to
the extent possible, be fully considered and taken into account in planning Federal or federally assisted development programs and projects. State and local government objectives, together with the objectiN es of regional organizations shall be considered and evaluated within a framework of national public objectives, as expressed in Federal law, and available projections of future national conditions and needs of regions, States, and localities shall be considered in plan formulation, evaluation, and review.
"(c) To the maximum extent possible, consistent with national objectives, all Federal aid for development purposes shall be consistent with and further the objectives of State, regional, and local comprehensive planning. Consideration shall be given to all developmental aspects of our total national community, including but not limited to housing, transportation, economic development, natural and human resources development, community facilities, and the general improvement of living environments.
"(d) Each Federal department and agency administering a development assistance program shall, to the maximum extent practicable, consult with and seek advice from all other significantly affected Federal departments and agencies in an effort to assure fully coordinated programs.
"(e) Insofar as possible, systematic planning required by individual Federal programs (such as highway construction, urban renewal, and open space) shall be coordinated with and, to the extent authorized by law, made part of comprehensive local and areawide development planning."
"Favoring units of general local government"
"See. 402. Where Federal law provides that both special-purpose units of local government and units of general local government are eligible to receive loans or grants-in-aid, heads of Federal departments and agencies shall, in the absence of substantial reasons to the contrary, make such loans or grants-in-aid to units of general locaa government rather than to special-purpose units of local government." "Rules and regulation"
"See. 403. The Bureau of the Budget, Or such other agency as may be designated by the President, is hereby authorized to prescribe such rules and regulations as are deemed appropriate for the effective administration of this title."
ATTACHMENT C-CIRCULAR No. A-95 REVISED
SECTION 102 (2) (c) OF THE NATIONAL ENVIRONMENTAL POLICY ACT OF
1969 (83 STAT. 853)
"Sec. 102. The Congress authorizes and directs that, to the fullest extent possible: (1) the policies, regulations, and public laws of the

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United States shall be interpreted and administered in accordance with the policies set forth in this Act, and (2) all agencies of the Federal Government shall- * *
(C) include in every recommendation or report on proposals for legislation and other major Federal actions significantly affecting the quality of the human environment, a -detailed statement by the responsible official on"(i) the environmental impact of the proposed action.
"(ii) any adverse environmental effects which cannot be avoided should the proposal be implemented,
(iii) alternatives to the proposed action,
(iv) the relationship between local short-term use of man's environment and the maintenance and enhancement of lono-ternproductivity, and
"4(v) any irreversible or irretrievable commitments of resources which would be involved in the proposed action should it be implemented.
"Prior to making any detailed statement, the responsible Federal
official shall consult with and obtain the comments of any Federal agency which has jurisdiction by law or special expertise with respect to any environmental impact involved. Copies of such statement and the comments and views of the appropriate Federal, State, and local agencies, which are authorized to develop and enforce environmental standards, shall be made available to the President, the Council on Environmental Quality and to the public as provided by section 552 of Title 5, United States Code, and shall accompany the proposal through the existing agency review processes; * *.1
A'rrAci-TNENT D-CicuLAR No. A-95 REVISED
COVERAGE OF PROGRAMS UNDER ATTACHMENT A, PART I

1. Programs listed below are referenced several ways, due to transitional phases in program development, funding status, etc. Generally, citations are to programs as they are listed in the June, 1975 Catalog of Federal Domestic A ssist an e. For certain new legislation, Catalog citations have not yet been developed. In such cases, references are to Public Law number and section. When no funding is available, for a program, it is not generally listed in the Catalog or this Attachment; but if funding becomes available for a program previously covered. it continues to be covered unless specifically exempted by 0MB. The Catalog is issued annually and revised periodically during thle year. Every effort will be made to keep Appendix I and Attachment D current. Reference should always be made to the one bearing the latest issue date. (However, the update to the 1975 Catalog will not reflect
all the changes herein. Therefore, this list should be referenced until issuance of the 1976 Catalog.)
Asterisks indicate certain State formula grant programs requiring State plans which are also covered under Part III. 'When listed under Part I, reference is to applications for subgrants, under the State allocation, not to the State's application for its allocation under the formula grant which is reviewable under Part III.
2. Heads of Federal departments and agencies may, with the concurrence of the Office of Management and Budget, exclude certain

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categories of projects or activities under listed programs from the requirenents of Attachment A, Part I. (Also see Part I, paragraph 8.)
3. Covered programs:
Department of Agriouure
10.405 Farm Labor Housing Loans and Grants. 10.409 Irrigation, Drainage, and Other Soil and Water Conservation Loans. (Exception: Loans to grazing associations to develop additional pasturage
and loans for purchase of equipment.) 10.410 Low to Moderate Income Housing Loans. 10.411 Rural Housing Site Loans. 10.414 Resource Conservation and Development Loan& 10.415 Rural Rental Housing Loan& 10.418 Water and Waste Disposal Systems for Rural Communities. 10.419 Watershed Protection and Flood Prevention Loas. 10.420 Rural Self-Help Housing Technical Assistane 10.422 Business and Industrial Development Loans. (Exception: Loans to rural
small businesses having no signifiat impact outside community in
which located.)
10.423 Community Facilities Loans. 10.424 Industrial Development Grants. 10.658 Cooperative Forest Insect and Disease Control 10.901 Resources Conservation and Development. (Exception: Small projects
costing under $7500 for erosion and sediment control and land stabilization and for rehabilitation and consolidation of existing irrigation
systems.)
10.904 Watershed Protection and Flood Prevention.
Department of C7ommeroe
11.300 Economic Development-Grants and Lans for Public Works and Development Facilities.
11302 Economic Development-Support for Planning Organizations. 11.303 Economic Development-Technical Assistance. 11.304 Economic Development-Public Works Impact Projects (Procedural
variation).
11.305 Economic Development-State and Local Economic Development
Planning.
11.806 Economic Development-District Operational Assistance. 11.307 Economic Development-Special Economic Development and Adjustment
Assistance Program.
11.308 Grants to States for Supplemental and Basic Funding of Title I, II, and
IV Activities. (Basic grants only.)
11.405 Anadromous and Great Lakes Fisheries Development. 11.407 Commercial Fisheries Research and Development. 11.418 Coastal Zone Management Program Development. 11.419 Coastal Zone Management Program Administration. 11.420 Coastal Zone Management-Estuarine Sanctuaries.
Department of Defense
12.101 Beach Erosion Control Projects. 12.106 Flood Control Projects. 12.107 Navigation Projects. 12.108 Snagging and Clearing for Flood Control.
Department of Health, Education, and Welfare
13.210* Comprehensive Public Health Services-Formula Grants. 13.211" Crippled Children's Services. 13.217" Family Planning Projects. 13.224 Health Services Development-Project Grants. 13.232* Maternal and Child Health Services. 13.235 Drug Abuse Community Service Programs. 13.237 Mental Health-Hospital Improvement Grants. 13.240 Mental Health-Community Mental Health Centers. 13.246 Migrant Health Grants. 13.251 Alcohol-Community Service Programs.


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13.252 Alcohol Demonstration Programs. 13.254 Drug Abuse Demonstration Programs. 13.256 Office for Health Maintenance Organization (HMOS). 13.258* National Health Service Corps. 13.259 Mental Health-Children's Services. 13.260 Family Planning Services-Training Grants. 13.261 Family Health Centers. 13.266 Childhood Lead-Based Paint Poisoning Control. 13.267 Urban Rat Control. 13.268 Disease Control-Project Grants. 13.275 Drug Abuse Education Programs. 13.284 Emergency Medical Services. 13.286 Limitation on Federal Participation for Capital Expenditures. 13.340 Health Professions Teaching Facilities-Construction Grants. 13.369 Nursing School Construction-Loan Guarantees and Interest Subsidies. 13.378 Health Professions Teaching Facilities--Loan Guarantees and Interest
Subsidies.
13.392 Cancer-Construction. 13.400* Adult Education-Grants to States. 13.401 Adult Education-Special Projects. 13.408* Construction of Public Libraries. 13.421 Educational Personnel Training Grants-Career Opportunities. 13.427 Educationally 1Deprived Children-Handicapped. 13.428* Educationally Deprived Children-Local Educational Agencies. 13.429* Educationally Deprived Children-Migrants. 13.433 Follow Through.
13.464* Library Services-Grants For Public Libraries. 13.477 School Assistance in Federally Affected Areas-Construction. 13.493* Vocational Education-Basic Grants to States. 13.494* Vocational Education-Consumer and Homemaking. 33.495* Vocational Education-Cooperative Education. 13.499* Vocational Education-Special Needs. 13.501* Vocational Education-Work Study. 13.52( Vocational Education-Innovation. 13.516 Supplementary Educational Centers and Services-Special Programs
and Projects.
13.519* Supplementary Educational Centers and Services, Guidance, Counseling,
and Testing.
13.520 Special Programs for Children with Specific Learning Disabilities. 13.522 Eunvironmental Education. 13.543 Educational Opportunity Centers. 13.570* Libraries and Learning Resources. 13.600 Child Development-Head Start. 13.612 Native American Programs. 13.623 Runaway Youth.
13.624* Rehabilitation Services and Facilities-Basic Support. 13.626 Rehabilitation Services and Facilities-Special Projects. 13.628 Child Development-Child Abuse and Neglect Prevention and Treatment. 13.030* Developmental Disabilities-Basic Support. 13.631 Developmental Disabilities-Special Projects. 13.633* Special Programs for the Aging-State Agency Activities and Area
Planning and Social Services Programs.
13.634 Aging Programs Title III. Section 308, Model Projects. 13.635* Special Programs for the Aging-Nutrition Program for the Elderly. 16.636 Programs for the Aging-Research and Demonstration. 16.637* Programs for the Aging-Training. P.L. 93-318: (Section 161) Construction of Academic Facilities. P.L. 93-641: (Section 1516) Planning Grants to Health Systems Agencies:
(Section 1601 et seq., Title XVI Public Health Service Act) Assistance for modernization, construction or conversion of medical facilities. These programs will replace Catalog 13.206, 13.220, 13.249 and
13.253.
Department of Housing and Urban Development
14.001 Flood Insurance (Applications for community eligibility). 14.103 Interest Reduction Payments-Rental and Cooperative Housing for
Lower Income Families.

933






OFFICE OF MANAGEMENT AND BUDGET

14.105 Interest Subsidy-Homes for Lower Income Families. 14.112 Mortgage Insurance-Construction of Rehabilitation or Condominium
Projects.
14.115 Mortgage Insurance-Development of Sales-Type Cooperative Projects. 14.116 Mortgage Insurance-Group Practice Facilities. 14.117 Mortgage Insurance-Homes. 14.118 Mortgage Insurance-Homes for Certified Veterans. 14.119 Mortgage Insurance-Homes for Disaster Victims. 14.120 Mortgage Insurance-Homes for Low and Moderate Income Families. 14.121 Mortgage Insurance-Homes in Outlying Areas. 14.122 Mortgage Insurance-Homes in Urban Renewal Areas. 14.124 Mortgage Insurance-Investor Sponsored Cooperative Housing. 14.125 Mortgage Insurance-Land Development and New Communities. 14.126 Mortgage Insurance-Management-Type Cooperative Projects. 14.127 Mortgage Insurance-Mobile Home Parks. 14.128 Mortgage Insurance--Hospitals. 14.129 Mortgage Insurance-Nursing Homes and Related Care Facilities. 14.134 Mortgage Insurance-Rental Housing. 14.135 Mortgage Insurance-Rental Housing for Moderate Income Families. 14.137 Mortgage Insurance-Rental Housing for Low and Moderate Income
Families, Market Interest Rate.
14.138 Mortgage Insurance-Rental Housing for the Elderly. 14.139 Mortgage Insurance-Rental Housing in Urban Renewal Areas. 14.141 Nonprofit Housing Sponsor Loans-Planning Projects for Low and
Moderate Income Families.
14.146 Public Housing-Acquisition. (Turnkey and Conventional Production
Methods.) (New construction only.)
14.149 Rent Supplements-Rental Housing for Lower Income Families. 14.154 Mortgage Insurance-Experimental Rental Housing. 14.156 Lower Income Housing Assistance Program. 14.203 Comprehensive Planning Assistance. 14.207 New Communities-Loan Guarantees. 14.218 Community Development Block Grants-Entitlement Grants. 14.219 Community Development Block Grants-Discretionary Grants. 14.702 State Disaster Preparedness Grants.
Department of the Interior
15.350 Coal Mine Health and Safety Grants. 15.400* Outdoor Recreation-Acquisition, Development and Planning. 15.501 Irrigation Distribution System Loans. 15.503 Small Reclamation Projects. 15.600 Anadromous Fish Conservation. 15.605 Fish Restoration. 15.611 Wildlife Restoration. 15.904 Historic Preservation.
Department qg Juetice
16.500 Law Enforcement Assistance-Comprehensive Planning Grants. 16.501 Law Enforcement Assistance-Discretionary Grants. 16.502* Law Enforcement Assistance-Improving and Strengthening Law En.
forcement and Criminal Justice.
16.515 Criminal Justice Systems Development. 16.516 Law Enforcement Assistance-Juvenile Justice and Delinquency Pre.
vention-Allocation to States.
16.517 Law Enforcement Assistance Administration-JJPD Special Emphasis
Prevention and Treatment.
Department of Labor
17.211 Job Corps.
17.226 Work Incentives Program (WIN). 17.230 Farm Workers. (Procedural variation.) 17.232* Comprehensive Employment and Training Program&
Department of Transportation
20.102 Airport Development Aid Program. 20.103 Airport Planning Grant Program.


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OFFICE OF XANAGE31EXT AND BUDGET

20.205 Highway Research, Planning, and Construction. 20.214 Highway Beautification-Control of Outdoor Advertising, Control of
Junkyards, Landscaping and Scenic Enhancement.
20.500 Urban Mass Transportation Capital Improvement Grants. (Planning
and construction only.)
20.501 Urban Mass Transportation Capital Improvement Loans. (Planning
and construction only.)
20.505 Urban Mass Transportation Technical Studies Grants. (Planning and
construction only.)
20.506 Urban Mass Transportation Demonstration Grants. 20.507 Urban Mass Transportation Capital and Operating Assistance Formula
Grants.
Appalachian Regional COMMi88ion 23.003 Appalachian Development Highway System. 23.004 Appalachian Health Demonstration. 23.005 Appalachian Housing Planning Loan Fund. 23.008 Appalachian Local Access Roads. 23.010 Appalachian Aline Area Restoration. 23.011 Appalachian State Research, Technical Assistance, and Demonstration
Projects.
23.012 Appalachian Vocational Education Facilities and Operations. 23.013 Appalachian Child Development. 23.014 Appalachian Housing Site Development and Office State Improvement
Grants.
23.016 Appalachian Vocational Education and Technical Education Demonstration Grants.
(NoTE.-Except for 23.001, administration of these grants Is not In the Commission but in the appropriate program agency-e.g., 23.003 is handled by DOT. For 23.002, Appalachian Supplements to Federal Grants-in-aid, which can provide all or any portion of the Federal contribution under certain defined grantIn-aid programs, coverage under Part I is determined by the provisions applicable to the basic grant-in-aid program. For 28.003, 38-003, 48.003, 52.003, and 6.3.003-Regional Commission Supplements to Federal Gran ts-in-aid-the same rule would apply.)
Coastal Plains Regional Commission
28.002 Coastal Plains Technical and Planning Assistance.
(See note under Appalachian Regional Commission programs.)
Four Corners Regional Commi8sion 88.002 Four Corners Technical and Planning Assistance.
(See note under Appalachian Regional Commission programs.)
National Science Foundation
47.036 Intergovernmental Science.

New England Regional Commission
48.002 New England Technical and Planning Assistance.
(See note under Appalachian Regional Commission programs.)
Community ServiM Admini8tration
49.002 Community Action. 49.010 Older Persons Opportunities and Services. 49.011 Community Economic Development.

Ozarks Regional Commission
52.002 Ozarks Technical and Planning Assistance.
(See note under Appalachian Regional Commission programs.)
Upper Great Lakes Regional Commission
63.002 Upper Great Lakes Technical and Planning Assistance.
(See note under Appalachian Regional Commission programs.)



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45-705 0 79 6





OFFICE OF MANAGEMENT AND BUDGET

Veterans Adiministration
64.005 Grants to States for Construction of State Nursing Home Care Facilities. 64.01T Grants to States for Remodeling of State Home Hospital./Domiciliary
Facilities.
64.020 Assistance in the Establishment of New State Medical Schools. 64.021 Grants to Affiliated Medical Schools-Assistance to Health Manpower
Training Institutes.
64.114 Veterans Housing-Guaranteed and Insured Loans (GI Home Loans).
Water Resources Council
65.001 Water Resources Planning.
Environmental Protection Agency
66.001 Air Pollution Control Program Grants. 66.005 Air Pollution Survey and Demonstration Grants. 66.027 Solid Waste Planning Grants. 66.028 'Solid Waste Demonstration Grants. 66.418 Construction Grants for Wastewater Treatment Works. 66.419 Water Pollution Control-State and Interstate Program Grants. 66.426 Water Pollution Control-Areawide Waste Treatment Management
Planning Grants.
66.432 Grants for State Public Water System Subdivision Programs. 66.433 Grants for Underground Injection Control Programs. ,66.505 Water Pollution Control Demonstration Grants. ,66.506 Safe Drinking Water Research and Demonstration Grants. (Demonstration only).
'66.600 Environmental Protection-Consolidated Program Grants. ~66.602 Environmental Protection-Consolidated Special Purpose Grants.

Action
72.001 Foster Grandparents. 72.002 Retired Senior Volunteer Program. 72.008 The Senior Companion Program.

Old Western Regional Commission
75.002 Old West Technical and Planning Assistance.
Pacific North~west Regional Commission
76.002 Pacific Northwest Technical and Planning Assistance Regulations.
























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OFFICE OF MANAGEMENT AND BUDGET 2

IMPROVING GOVERNMENT REGULATIONS
Executive Order 120441
[43 Fed. Reg. 12661]
As President of the United States of Amierica. I direct each Executive Agency to adopt procedures to improve existing and future regulations.
SECTIOX 1. Policy. Regulations shall be as simple and clear as possible. They shall achieve legislative goals effectively and efficiently. They shall not impose unnecessary burdens on the economy, on individuals, on public or private organizations, or on State and local governments.
To achieve these objectives, regulations shall be developed through a process which ensures that:
(a) the need for and purposes of the regulation are clearly
established;
(b) heads of agencies and policy officials exercise effective. oversight;
(c) opportunity exists for early participation and comment by
other Federal agencies, State and local governments. businesses,
organizations and individual members. of the public;
(d) meaningful alternatives are considered and analyzed before
the regulation is issued; and
(e) compliance costs, paperwork and other burdens on the public are minimized.
SEC. 2. Reform of the Process fomr Developinq ig ifcn Regulations. Agencies shall review ain d revise their procedures fo r developing regulations to be consistent with the policies of this Order and in a manner that minimizes paperwork.
Agencies' procedures should fit their own needs but, at a minimum, these procedures shall include the following:
(a) Semiannuali Agenida of Regatlatians. To give the public adequate notice, agencies shall publish at least semiannually an agenda of significant regulations under development or review. On the first Monday in October, each agency shall publish in the Federal Register a schedule showing the times during the coming fiscal year when the agency's semiannual agenda will be published. Supplements to the agenda may be published at other times during the year if necessary, but the semiiannual agendas shall be as complete as possible. The head of each agency shall approve the agenda
before it is published.
At a minimum, each published agenda shall describe the regulations being considered by the agency, the need for and the legal basis for the action being taken, and the status of regulations previously listed on the agenda.
Each item on the agenda shall also include the name and telephone number of a knowledgeable agency official and, if possible,

1Supersedes and rescinds OMB Circulars No. A-85 (Consultation With the Heads of State and Local Government In Development of Federal Regulations) and No. A-107 (Evaluation of the Inflationary Impact of Major Proposals for Legislation and for the Promulgation of Regulations or Rules).


937





2 OFFICE OF MANAGEMENT AND BUDGET

state whether or not a regulatory analysis will be required. The agenda shall also include existing regulations, scheduled to be reviewed in accordance with Section 4 of tis Order.
(b) Agency Head Oversight. Before an agency proceeds to develop significant new regulations, the agency head shall have reviewed the issues to be considered, the alternative approaches to be explored, a tentative plan for obtaining public comment, and target dates for completion -of steps in the development of the regulation. .1
(c) Opportunity for Public Participation. Agencies shall give the public an early and meaningful opportunity to participate in the development of agency regulations. They shall consider a variety of ways to provide this opportunity, including (1) publishing an advance notice of proposed rulemaking; (2) holding open conferences or public hearings; (3) sending notices of proposed regulations to publications likely to be read by those affected; and (4) notifying interested parties directly.
Agencies shall give the public at least 60 days to comment on proposed significant regulations. In the few instances where agencies de-termine this is not possible, the regulation shall be accompanied by a brief statement of the reasons for a shorter time period.
(d) Approval of Significant Regulations. The head of each agency, or the designated official with statutory responsibility, shall approve significant regulations before they are published for public comment in the FEDERAL REGISTEFR. At a minimum, this official should determine that:
(1) the proposed regulation is needed;
(2) the direct and indirect effects of the regulation have been adequately considered;
(3) alternative approaches have been considered and the least burdensome of the acceptable alternatives has been chosen;
(4) public comments have been considered and an adequate response has been prepared;
(5) the regulation is written in plain English and is understandable to those who must comply with it;
(6) an estimate has been made of the new reporting burdens or recordkeeping requirements necessary for compliance with the regulation;
(7) the name, address and telephone number of a knowledgeable agency official is included in the publication; and
(8) a plan for evaluating the regulation after its issuance has been developed.
(e) Criteria for Determining Significant Regulations. Agent cies shall establish criteria for identifying which regulations are significant. Agencies, shall consider among other things: (1) the type and number of individuals, businesses, organizations, State and local governments affected; (2) the compliance and reporting requirements likely to be involved; (3) direct and indirect effects *of the regulation including the effect on competition; and (4) the relationship of the regulations to those of other programs and agencies. Regulations that do not meet an agency's criteria for determining significance shall be accompanied by a statement to that effect at the time the regulation is proposed.



938





OFFICE OF MANAGEMENT AND BUDGET 3

SEC. 3. Regulatory Analysis. Some of the regulations identified as significant may have major economic consequences for the general economy, for individual industries, geographical regions or levels of government. For these regulations, agencies shall prepare a regulatory analysis. Such an analysis shall involve a careful examination of alternative approaches early in the decision-making process. The following requirements shall govern the preparation of regulatory analyses:
(a) Criteria. Agency heads shall establish criteria for determining which regulations require regulatory analyses. The criteria established shall:
(1) ensure that regulatory analyses are performed for all regulations which will result in (a) an annual effect on the economy of $100 million or more; or (b) a major increase in costs or prices for individual industries, levels of government or geographic regions; and
(2) provide that in the agency heads discretion, regulatory analysis may be completed on any proposed regulation.
(b) Procedures. Agency heads shall establish procedures for developing the regulatory analysis and obtaining public comment.
(1) Each regulatory analysis shall contain a succinct statement of the problem; a description of the major alternative ways of dealing with the problem that were considered by the agency; analysis of the economic consequences of each of these alternatives and a detailed explanation of the reasons for choosing one alternative, over the others.
(2) Agencies shall include in their public notice of proposed rules an explanation of the regulatory approach that has been selected or is favored and a short description of the other alternatives considered. A statement of how the public may obtain a copy of the, draft regu, latory analysis shall also be included.
(3) Agencies shall prepare a final regulatory analysis to be made available when the final regulations ai-e published.
Regulatory analyses shall not be required in rulemaking proceedings pending at the time this Order is issued if an Economic Impact Statement h as already been prepared in accordance with Executive Orders 11821 and 11949.
SEC. 4. Review of Existing Rcya7at;om. Agencies shall periodically review their existing regulations to determine whether they are achieving the policy goals of this Onion This review will follow the same procedural steps outlined for the development of new regulations.
In selecting regulations to be reviewed, agencies shall consider such criteria as:
(a) the continued need for the regulation;
(b) the typeand number of complaints or suggestions received;
(c) the burdens imposedon those directly or indirectly affected by the regulations;
(d) the need to simplify or clarify language;
(e) the need to eliminate overlapping and duplicative regulations; and
(f) the length of time since the regulation has been evaluated or the degree to which technology, economic conditions or other factors have changed in the area a6cted by the regulation.


939





5 OFFICE OF MANAGEMENT AND BUDGET

Agencies shall develop their selection criteria and a listing of possible regulations for initial review. The criteria and listing shall be published for comment as required in Section 5.Subsequently, regulations selected for review shall be included in the semiannual agency agendas.
SEC. 5. Implementation.
(a) Each agency shall review its existing process for developing regulations and revise it as needed to comply with this Order. Within .60 days after the issuance of the Order, each agency shall prepare a draft report outlining (1) a brief description-of its process for developing regulations -and the changes that have been made to comply with t1ils Order; (2) its proposed criteria for defining significant agency regulations; (3) its proposed criteria for identifying which regulations require regulatory analysis; and (4) its proposed criteria fo r selecting existing regulations to be reviewed and a list of regulations that the agency will consider for its initial review. This report shall be published in the FEDERAL REGISTER for public comment. A copy of this report shall be sent to the Office of Management and Budget.
(b) After receiving public comment, agencies shall submit their revised report to the Office of Management and Budget for approval before final publication in the FEDERAL REGISTER.
(c) The Office of Management and Budget shall assure the effective implementation of this Order. OMB shall report at least semiannually to the President on the effectiveness of the Order and agency compliance with its provisions. By May 1, 1980, OMB shall recommend to the President whether or not there is a continued need for the Order and any further steps or actions necessary to achieve its purposes.
SEC. 6. Cover ge.
(a) As used in this Order, the term regulation means both rules and regulations issued by agencies including those which establish conditions for financial assistance. Closely related sets of regulations shall be considered together.
(b) This Order does not apply to:
(1) regulations issued in accordance with the formal rulemaking provisions of the Administrative Procedure Act (5 U.S.C. 556, 557) ;
(2) regulations issued with respect to a military or foreign affairs function of the United States;
(3) matters related to agency management or personnel;
(4) regulations related to Federal Government procurement;
(5) regulations issued by the independent regulatory -agencies; or (6) regulations that are issued in response to an emergency or which are governed by short-term statutory or judicial deadlines. In these cases, the agency shall publish in the FEDERAL REGISTER a statement of the reasons why it is impracticable or contrary to the' public interest for the agency to follow the procedures of this Order. Such a statement shall include the name of the policy official responsible for this determination.
SEC. 7. This Order is intended to improve the quality of Executive Agency regulatory practices. Itis not intended to create delay in the process or provide new grounds for judicial review. Nothing in this


940





OFFICE OF MANAGEMENT AND BUDGET 8

Order shall be considered to supersede existing statutory obligations governing rulemaking.
SEC. 8. Unless extended, this Executive Order expires on June 30, 1980.
JIMMY CARTER. THE WHITE HouSE, March 23, 1978.











































941





OFFICE OF MANAGEMENT AND BUDGET

[Circular No. A-97]
AUGUST 29, 1969.
To the heads of executive departments and establishents Subject: Rules and regulations permitting Federal agencies to provide
specialized or technical services to State and local units of government under Title III of the Intergovernmental Cooperation Act
of 1968
1. Purpose.-This Circular promulgates the rules and regulations which the Director of the Bureau of the Budget is authorized to issue pursuant to section 302 of the Intergovernmental Cooperation Act of 1968 (P.L. 90-577; 82 Stat. 1102). it also provides for the coordination of the action of Federal departments and agencies (hereinafter referred to as "Federal agencies") in exercising the authority contained in Title III of said Act as directed by the President's Memorandum of November 8, 1968 (33 F.R. 16487).
2. Bcckground.-a. Title III of the Intergovernmental Cooperation Act of 1968 is intended to:
(1) Encourage intergovernmental cooperation in the conduct
of secialized or technical services and provisions of facilities essential to the -administration of State or local governmental
activities.
(2) Enable State and local governments to avoid unnecessary
duplication -of special service functions.
(3) Authorize Federal agencies whi 'ch do not have such authority to provide reimbursable specialized and technical services
to State and local governments.
b. Title III of the Act authorizes the head of any Federal agency, within his discretion and upon written request from a State or political subdivision thereof, to provide specialized or technical services, upon payment to the Federal agency by the unit of government making the request, of salaries and all other identifiable direct or indirect costs of performing such services.
c. Title III of the Act requires that:
(1) Any services provided pursuant to Title III shall include
only those which the Director of the Bureau of the Budget through rules and regulations determines Federal agencies have
special competence to provide.
(2) The Director's rules and regulations shall be consistent with,
and in furtherance of, the Government's policy of relying on the private enterprise system to provide those services' which are reasonably and expeditiously available through -ordinary business
channels.
(3) All mioneys. received by any Federal agency in payment of
furnishing specialized or technical services under Title III of the Act shall be deposited to the credit of the principal appropriation-from which the cost of providing such services has been paid or
is to be charged.







942





OFFICE OF MANAGEMENT AND BUDGET

(4) The head of any Federal agency shall furnish annually to
the respective Committees on Government Operations of the Senate and House of Representatives a summary report on the
scope of the services provided under Title III.
3. Resem'-ation of existing authority.-The authority contained in Title III of the Act and this Circular is in addition to, and does not supersede, any existing authority now possessed by any Federal agency with respect to furnishing services, whether on a reimbursable or nonreimbursable basis, to State or local units of government. The reporting and other requirements and conditions contained in this Circular shall not apply to services furnished under such existing authorities.
4. Defnitions.-For purposes of this Circular:
a. The term "State" means any of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State, but does not include the governments of the political subdivisions of a State.
b. The terms "political subdivision" or "local government" mean a local unit of government, including specifically a county, municipality, city, town, township, or a school or other special district created by or pursuant to State law, or combinations thereof.
c. "Specialized or technical services" means statistical and other studies and compilations, development projects. technical tests and evaluations, technical information, training activities, surveys, reports, documents, and any other similar service functions which any Federal agency is especially equipped and authorized by law to perform.
5. Policy.-Federal agencies will cooperate to the maximum extent possible with State and local units ofT government to provide such specialized or technical services as maybe authorized. Such services shall generally supplement, not supplant existing services, and Federal agencies should not provide services with full reimbursement under this Circular which have heretofore been furnished for less than full reimbursement under other authorities, unless specifically requested to do so.
6. Types of 8ervces that may be provided.-a. It is hereby determined that Federal agencies have the special competence to provide, and may provide the following specialized or technical services, and facilities related thereto, pursuant to Title III of the Intergovernmental Cooperation Act of 1968:
(1) Any existing statistical or other studies and compilations,
results of technical tests and evaluations, technical information, surveys, reports, and documents, and any such materials which may be developed or prepared mi the future to meet the needs of the Federal Government or to carry out the normal program
responsibilities of the Federal agencies involved.
(2) Preparation of statistical or other studies and compilations, technical tests and evaluations, technical information, surveys, relrts, and documents, and assistance in the conduct of such activities and in the preparation of such materials, provided they are of a type similar to those which the Federal agency is
authorized by law to conduct or prepare.



943





OFFICE OF MANAGEMENT AND BUDGET
(3) Training of the type which the Federal agency is authorized by law to conduct for Federal personnel and others or which
is similar to such training.
'(4) Technical aid in the preparation of proposals for development and other projects for which the Federal agency provides grants-in-aid or other assistance, provided such aid primarily strengthens the ability of the recipient in developing its own
capacity to prepare proposals.
(5) Technical information, data processing, communications
and personnel management systems services, and technical advice on improving logistical and management services which the Federal agency normally provides for itself or others under-existing authorities.
b. Any of the above specialized or technical services provided to the States and their political subdivisions under existing authorities may also be provided under Title III of the Act and the terms of this Circular.
c. If a Federal agency receives a request for specialized or technical services which are not covered in subparagraph a above and which it believes is consistent with the Act and which it has a special competence to provide, it should forward such request to the Bureau of the Budget for action. Similarly, if there is doubt as to whether the service requested is covered by subparagraph a, the request should be forwarded to the Bureau of the Budget for action.
7. Conditions under which services may be provided.-The specialized or technical service provided under Title III of the Act and this Circular may be provided, in the discretion of the heads of Federal agencies, only under the following conditions:
a. Such services will be provided only to the States political subdivisions thereof, and combinations or associations oi such governments or their agencies and instrumentalities.
b. Such services will be provided only upon the written request of a State or political subdivision thereof. Requests will normally be made by the chief executives of such entities and will be addressed to the head of the agency involved.
c. Such services will not be provided unless the agency providing the services is providing similar services for its own use under the policies set forth in Bureau of the Budget Circular No. A-76, "Policies for acquiring commercial or industrial products and services for Government use" (Revised August 30, 1967). In addition, in accordance with the policies set forth in Circular No. A-76, the requesting entity must certify that such services cannot be produced reasonably and expeditiously by it through ordinary business channels.
d. Such services will not be provided if they require any additions of staff or involve outlays for additional equipment or other facilities solely for the purpose of providing such services, except where the costs thereof are charged to the user of such services. Further, no staff additions may be made which impede the implementation of or adherence to the employment ceilings contained in Bureau of the Budget allowance letters.
e. Such services will be provided only upon payment or provision for reimbursement to the Federal agency involved, by the unit of



944





OFFICE OF MANAGEMENT AND BUDGET
government making the request of salaries and all other identifiable direct and indirect costs of performing such services. For cost determination purposes, Federal agencies will be guided by the policies set forth in Bureau of the Budget Circular No. A-25, "User Charges" (September 23, 1959).
f. Any payments or reimbursements received by Federal agencies for the costs of such services will be deposited to the credit of the principal appropriation or other account from which the costs of providing the services have been paid or are to be charged.
g. In t event a request for a service is denied, the Federal agency shall furnish the entity making the request with a statement indicating the reasons for the denial.
8. Reports to Corngres.-The head of each Federal agency will furnish annually to the respective Committees on Government Operations of the Senate and House of Representatives a summary report on the scope of the services provided under Title III of the Act and this Circular. Such reports will be prepared as of the end of each calendar year and will indicate the nature of the services rendered, the names of the States and political subdivisions involved, where practical, and the cost of the work. Services provided under other authorities are not to be in included in the reports. Copies of the reports will be submitted to the Bureau of the Wudget not later than March 30 of each year.
9. Effectiove date.-This Circular is effective immediately. It supersedes the "Interim Regulation under Title III of the Intergovernmental Cooperation Act of 1968 (P.L. 90-577)," dated December 19, 1968, concerning training by the U.S. Civil Service Commission.
10. Inguires.-Inquiries regarding this Circular may be addressed to the Once of Executive Management, Bureau of the Budget, Washington, D.C. 20503, or telephone (202) 395-4934 (Government dial code 103-4934).
ROBr P. MATo, Director.




















945














301
COASTAL ZONE MANAGEMENT
COASTAL ZONE MANAGEMENT ACT OF 1972
[Public Law 92-583, 86 Stat. 1280]
AN ACT to establish a national policy and develop a national program for the
management, beneficial use, protection, and development of the land and water
resources of the Nation's coastal zones, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act entitled "An Act to provide for a comprehensive. long-range, and coordinated national program in marine science, to establish a National Council on Marine Resources and Engineeringr Development, and a Commission on Marine Science, Engineering and Resources, and for other purposes", approved June 17, 1966 (80 Stat. 203), as amended (33 U.S.C. 1101-1124), is further amended by adding at the end thereof the following new title:

TITLE III-MANAGEMENT OF THE COASTAL ZONE
SHORT TITLE
SEc. 301. This title may be cited as the "Coastal Zone Management Act of 1972".
CONGRESSIONAL FINDINGS
SEC. 302. The Congress finds that(a) There is a national interest in the effective management, beneficial use, protection, and development of the coastal zone.,
(b) The coastal zone is rich in a variety of natural, commercial, recreational, ecological,' industrial, and esthietic resources of immediate and potential value to the present and future well-being of the Nation.
(c) The increasing and competing demands upon the lands and waters of our coastal zone occasioned by population growth and economic development, including requirements for industry, commerce, residential development, recreation, extraction of mineral resources and fossil fuels. transportation and navigation, waste disposal, and harvesting of fish, shellfish, and other living marine resources, have resulted in the loss of living marine resources, wildlife, nutrient-rich areas, permanent and adverse changes to ecological systems, decreasing open space for public use, and shoreline erosion.
(d) The coastal zone, and the fish, shellfish, other living marine resources, and wildlife therein, are ecologically fragile and consequently extremely vulnerable to destruction by man's alterations.

2 Sec. 2(1) of the Coastal Zone Management Act Amendments of 1976, Public Law 94-370, approved July 26, 1976, 90 Stat. 1013, inserted the word "ecological" immediately after "recreational,". Sec. 2(2) (A) of such Act deleted the "semnicolon" at the end of subsections (a), (b), (c). (d), (e), and (f) ; section 2(2) (B) of such Act deleted and" at the end of subsection (g) and inserted a "period" at the end of each subsection.


947





1 303 COASTAL ZONFB MA~GMEIT

(e) Important ecological, cultural, historic, and esthetic values i the coastal zone which are essential to the well-being of all citizens are being irretrievably damaged or lost.
(f). Special natural and scenic characteristics are being damaged by ill-planned development that threatens these values.
(g) In light of competing demands and the urgent need to protect and to give high priority to natural systems in the coastal zone, present state and local institutional arrangements for planning and regulating land and water uses in such areas are inadequate.
(h) The key to more effective protection and use of the land and water resources of the coastal zone is to encourage the states to exercise their fu 1 authority over the lands and waters in the coastal zone by assisting the states, in cooperation with Federal and local governmnents and other vitally affected interests, in developing land and water use programs for the coastal zone, including unified policies, criteria, standards, methods, and processes for dealing with land and water use decisions of more than local significance.
(i) 1 The national objective of attaining a, greater degree of energy self-sufficiency would be advanced by providing Federal financial assistance to meet state and local needs resulting from new or expanded energy activity in or affecting the coastal zone.

DECLARATION OF POLICY
SEC. 303. The Congress finds and declares that it is the national policy (a) to preserve, protect, develop, and where possible, to restore or enhance, the resources of the Nation's coastal zone for this and succeeding generations, (b) to encourage and assist the states to exercise effectively their responsibilities in the coastal zone through the development and implementation of management programs to achieve wise use of the land and water resources of the coastal zone 'giving full consideration to ecological,. cultural, historic, and esthetic values as well as to needs for economic development,, (c) for all Federal agencies engaged in programs affecting the coastal zone to cooperate and participate with state and local governments and regional agencies in effectuating the purposes of this title, and (d) to encourage the participation of the public, of Federal, state, and local governments, and of regional agencies in the (levelopment of coastal zone management programs. With respect to implementation of such management programs, it is the national policy to encourage cooperation among the various state and regional agencies including establishment of interstate and reg-ional agreements, cooperative procedures, and joint action particularly regarding environmental problems.

DEFINITI1ONS
SEC. 304. For the purposes of this title(1)2 The term "coastal zone"~ means the coastal waters (including
see. 2(3) of the Coastal Zone Management Act Amendments of 1978, Public Law 94-370, approved July 26, 1976, 90 Stat. 1013, Inserted a new subsection "(1)" following subsection (h).
2 Sec. 3 (1) of the Coastal Zone Management Act Amendments of 1978, Public Law 94-370, approved July 26, 1970, 90 Stat. 1013, redesignated paragraph (a) as"aarp
(1); sec. 3(1) (A) of such Act deleted "Coastal" and Inserted In lieu thereof "The ~term coastala" 1; sec. 3 (1) (B) of such Act added the word "Islands" Immediately after "and Includes".


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COAM L ZONM MANAGEMENT 13d4
the lands therein and thereunder) and the adjacent shorelands (including the waters therein and thereunder), strongly mfluenced by each other and in proximity to the shorelines of the several coastal states, and includes islands,' transitional and intertidal areas, salt marshes, wetlands, and beaches. The zone extends, in Great Lakes waters, to the international boundary between the United States and Canada and, in other areas, seaward to the outer limit of the United States territorial sea. The zone extends inland from the shorelines only to the extent necessary to control shorelands, the uses of which have a direct and significant impact on the coastal waters. Excluded from the coastal zone are lands the use of which is by law subject solely to the discretion of or which is held in trust by the Federal Government, its officers or agents.
(2 )2 The term "coastal waters" means (A)2 in the Great Lakes area, the waters within the territorial jurisdiction of the United States consisting of the Great Lakes, their connecting -,waters, harbors, roadsteads, and estuary-type areas such as bays, shallows, and marshes and (B) in other areas, those waters, adjacent to the shorelines, which contain a measurable quantity or percentage of sea water, including, but not limited to, sounds, bays, lagoons, bayous, ponds, and estuaries.
(3) The term "coastal 3 state" means a state of the United States in, or bordering on, the Atlantic, Pacific, or Arctic Ocean, the Gulf of Mexico, Long Island Sound, or one or more of the Great Lakes. For the purposes of this title, the term also includes Puerto Rico, the Virgin Islands, Guam, and American Samoa.
(4)4 The term "coastal energy activity" means any of the following activities if, and to the extent that (A) the conduct, support, or facilitation of such activity requires and involves the siting, construction, expansion, or operation of any equipment or facility; and (B) any technical requirement exists which, in the determination of the Secretary, necessitates that the siting, construction, expansion, or operation of such equipment or facility be carried out in, or in close proximity to, the coastal zone of any coastal state;
i))Any outer Continental Shelf energy activity.
ii Any transportation, conversion, "treatment, transfer, or
storage of liquefied natural gas.
(iii) Any transportation, transfer, or storage of oil, natural
gas, or coal (including, but not limited to, by means of any deepwater port, as defined in section 3 (10) of the Deepwater Port Act
of 1974 (33 U.S.C. 1502 (10) ) ).
For purposes of this paragraph, the siti construction, expansion, or operation of any equipment or facility stall be "in close proximity to" the coastal zone of any coastal state if such siting, construction, expansion, or operation has, or is likely to have, a significant effect on such coastal zone.
I See. 3(l) (A) of the Coastal Zone Management Act Amendments of 1976, Public Law 94-370, approved July 26. 1976, 90 Stat. 1013, deleted "Coastal" and inserted in lieu thereof "the term 'coastal' See. 3 (1) (B) of such Act added the word "'Islands" Immediately after "and Includes".
21, pe. 3(2) of the Coastal Zone Management Act Amendments of 1976. Public Law 94-370, approved Julv, 26. 1976,A90 Stat. 1013, redesignated paragraph (b) as paragraph # (2) ; sec. 8 (2) of such ct deleted "Coastal" and Inserted in lieu thereof "The term coastal' 11 see. 3 (2) (B) of such Act redesignated (1) and (2) as (A) and (B). $Sec. 3(3) oi the Coastal Zone Management Act Amendments of 1976, Public Law 9"70, approved July 26, 1976, 90 St&t. 1013, deleted "(c) 'coastal"' and Inserted in lien thereof : 11 (3) The term #coastal' ".
4 Sec. 3M of the Coastal Zone Management Act Amendments of 1976, Public Law 94370, approved July 26, 1976, 90 Stat. 1013, inserted new paragraphs "(4)" and 11(5)





1304 OATLZONIZ MdAKAGEMENT
(5)1 The term "energy facilities" means any equipment or facility which is or will be used primarily-.(A) in the exploration for, or the development, production,!
conversion, storage, transfer, processing, or transportation of, any
energy resource; or
(B) for the manufacture, production, or assembly of equipment, machinery, products, or devices which are involved in any
activity described in subparagraph (A)'.
The term includes, but is not limited to (i) electric generating plants;
(ii). petroleum refineries and associated facilities; (iii) gasification plants; (iv) facilities used for the transportation, conversion, treatment, transfer, or storage of liquefied natural gas; (v) uranium enrichment or nuclear fuel processing facilities; (v'i*) oil and gas facilities, including platforms, assembly plants, storage depots, tank farms, crew and supply bases, and refining complexes; (vii) facilities including deepwatter ports, for the transfer of petroleum; (viii) pipelines and transmission facilities; and (ix) terminals which are associated with any of the foregoing.
(6)2 The term "Estuary" means that part of* a river or stream or
other body of water having unimpaired connection with the open sea, where the sea water is measurably diluted with fresh water derived from land drainage. The term includes estuary-type. areas of the Great Lakes.
(7)3 The term "estuarine sanctuary" means a re 'search area which may include any part or all of an estuary and any island, transitional area, and upland in, adjoining, or adjacent to such estuary, and which constitutes to the extent feasible a natural unit, set aside to provide scientists and students the'opportunity to examine over a 'period of time the eco logical relationships within the area.
(8)4 The term "Fund" means the Coastal Energy, Impact' Fund established by section 308 (h).
(9)4 The term "land use" means activities which are conducted in, or on the shorelands within, the coastal zone, subject to-the requirements outlined in section 307 (g).
(10)4 The term "local government" means any political subdivision of, or any special entity created by, any coastal state which (in whole or part) is located in, or has authority over, such state's coastal zone and which (A) has authority' to levy taxes, or to establish and collect user fees, or (B) provides any public facility or pub-lic service which is financed in whole or part by taxes or user fees. The term includes, but is not limited to, any school district, fire'district, transportation authority, and any other special purpose district or authority.
I'Sec. 3 (4) of. the Coastal Zone Management Act Amendments of 197-6. Public Law 94870, approved July 26, 1976, 90 Stat. 1013, inserted new paragraphs "(4)" and "(5)"9.
2 See_.3 3(5) of the Coastal Zone Management Act Amendments of 1976, Public Law 94-370, approved July 26, 1976, 90 Stat. 1013, deleted (d) 'Estuary' and Inserted in lieu thereof "1(6) The term 'estuary'".
3'Sec. 3 (6) of the Coastal Zone Management Act Amendments, of' 1976, Public Lai1 94-370, approved July 26, 1976. 90 Stat. 1013, redesit ed paragraph (e) aspagrp
(7) ; sec. 3 (6) (A) of such Act deleted "Estuarine" ad Inserted In lieu thereof "he term 'estuarine"'; sec. 3(6) (B) of such Act deleted the words "estuary, adjoining transitional are~a ad adjacent uplands, constituting" and Inserted In lieu thereof "sur
and any ilnd, transitional area, and upland in, adjoining, or adjacent to such estuary. and which constitutes"$.
4 Sec. 3(7) of the 'Coastal Zone Management Act Amendments of 1976,'Public Law 94-370, approved"July 26, 1976, 90 Stat. 1013, deleted, paragraph (f) which previously read 'as follows: "(f ) 'Secretary' means the S..4ecretary of Commerce". This section also added new paragraphs (8)" "(9)"' and "9(10)".,


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COASTAL ZONE MAGMMNT 305

(11)1 The term "management program"~ includes, but is not limited to, a comprehensive statement in words, maps, illustrations, or other media of communication, prepared and adopted by the state in accordance with the provisions of this title, setting' forth objectives, policies, and standards to guide public and private uses of lands and waters in the coastal zone.
(12)2 The term "outer Continental Shelf energy activity" means any exploration for, or any development or production of, oil or natural gas from the outer Continental Shelf (as defined in section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 (a)), or the siting, construction, expansion, or operation of any new or expanded energy facilities directly required by such exploration, development, or production.
(13)2 The term "person" means any individual; any corporation, partnership, association, or other entity organized or existing under the laws of any state; the Federal Government; any state, regional, or local government; or any entity of any such Federal, state, regional, or local government.
(14)2 The term publicc facilities and public services" means facilities or services which are financed, in whole or in part, by any state or political subdivision thereof, including, but not limited to, high ways and secondary roads, parking, mass transit, docks, navigation aids, fire and police protection, water supply, waste collection and treatment (including drainage), schools and education, and hospitals and health care. Such term may also include any other facility or service so fianced which the Secretary finds will support increased population.
(15) 2 The term "Secretary" means the Secretary of Commerce.
i(16),3 The term "water use' means activities which are conducted in o onthe water; but does not mean or include the establishment of any water quality standard or criteria or the regulation of the discharge or runoff of water pollutants except the standards, criteria, or regulations which are incorporated in any program as required by the a provisions of section 307 (f).


MANAGEM-NENT PROGRAMf DEVELOPMENT GRANTS
SEc. 305. (a) The Secretary may make grants to any coastal state(1) under subsection (c) for the purpose of assisting such
state-in the development of a management program for the land
and water resources of its coastal zone; and
(2) under subsection (d) for the purpose of assisting such
state in the completion of the development, and the initial implementation, of its management program before such state qualifies
for administrative grants under section 306.
1See. 3(8) of the Coastal Zone Management Act Amendments of 19T6. Public Law 94-370, approved July 26, 1976, 90 Stat. 1013, deleted "(g) 'Management'"1 and Inserted in lieu thereof "(11) The term 'management' 11 Sec. 3(9) of the Coastal Zone Management Act Amendment of 1976. Public Law 94-370, approved July 26, 1976, 90 Stat. 1013, added new paragraphs "1(12)"1, "(13)", "(14)" and "(15)P9
3RPc. 3(10) of the Coastal Zone Management Act Amendments of 1976, Public Law 94-370. approved July 26, 1970. 90 Stat. 1013, deleted (h) 'Water"' and Inserted In lieu thereof "(16) The term 'water' ".
'1Sec. 4 of the Coastal Zone Management Act Amendments of 1976. Public Law 94-370,
approved July 26, 1976, 90 Stat. 103 inserted a new section 305 to read as set forth In the text.


951
45-705 0 79 7






305 COASTAL ZONE MANAGEMENT

(b) The management program for each coastal state shall include each of the following requirements:
(1) An identification of the boundaries of the coastal zone
subject to -the management programl.0
(2) A definition of what shall constitute permissible land uses
and water uses within the coastal zone which have a direct and
significant impact on the coastal waters.
(3) An inventory and designation of areas of particular concernl Within the coastal zone.
(4) An identification of the means by which the state proposes,
to exert control over the land uses and water uses referred to in paragraph (2), including a listing of relevant constitutional provisions, laws, regulations, and judicial decisions.
(5) Broad guidelines on priorities of uses in particular areas,
including specifically those uses of lowest priority.
(6) A description of the organizational structure proposed to
implement such management program, including the responsibilities and interrelationships of local, areawide, state, regional,
and interstate agencies in the management process.
(7) A definition of the term 'beach' and a planning process
for the protection of, and access to, public beaches and other public coastal areas of environmental, recreational, historical, esthetic,
ecological, or cultural value.
.(8) A planning process for energy facilities likely to be located
in, or which may significantly affect, the coastal zone, including,' but not limited to, a process for anticipating and managing the
impacts from such facilities.
(9) A planning process for (A) assessing the effects of shoreline erosion (how-ever caused), and .(B) studying and evaluating ways to control, or lessen the impact of, such erosion, and to
restore areas adversely. affected by such erosion.
No management program is required to meet the requirements in paragraphs (7), (8), and (9) before October 1, 1978.
(c) The Secretary may make a grant annually to any coastal state for the purposes described in subsection (a) (1) if such state reasonably demonstrates to the satisfaction of the Secretary that such grant will be used to develop a management program consistent with the requirements set forth in section -,306. The amount of any such grant shall not exceed 80 per centum. of such state's costs for such Purposes in any one year. No coastal state is eligible to receive more than- for grants pursuant to this subsection. After the initial grant is made to any coastal state pursuant to this subsection, no subsequent grant shall be made to such state pursuant to this subsection unless the Secretary finds that ,such state is satisfactorily developing its management program. '
(d) (1) The Secretary may make a grant annually to any coastal state for the purposes described in subsection (a) (2) if the Secretary finds that such state meets the eligibility requirements set forth in paragraph (2). The amount of any such grant shall not exceed 80 per centum, of the costs for suth purposes in any one year.
(2) A coastal state is eligible to receive grants under this subsection if it has952