Federal Register - June 22, 2021
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Fuente: Federal Register
Federal Register / Vol. 86, No. 117 / Tuesday, June 22, 2021 / Notices
lotter on DSK11XQN23PROD with NOTICES1
resubmit the action plan within 45 days of the notification.
Grantee must sign and return the grant agreement to HUD.
HUD will sign the grant agreement and establish the grantees CDBGDR
line of credit amount to reflect the total amount of available funds. Grantee posts the final HUD-approved action plan on its official website.
Grantee enters the activities from its approved action plan into the DRGR
system if it has not previously done so and submits its DRGR action plan to HUD funds can be drawn from the line of credit only for activities that are established in the DRGR system.
Grantee may draw down CDBGDR
funds from its line of credit after the Responsible Entity completes applicable environmental reviews pursuant to 24
CFR part 58 or adopts another Federal agencys environmental review as authorized under the Appropriations Act, and, as applicable, receives from HUD the Authority to Use Grant Funds AUGF form.
Substantial amendments are subject to requirements in V.A.2.d., including a 30-day public comment period and posting the substantial amendment to the grantees website followed by a 60day review period for HUD.
V. Applicable Rules, Statutes, Waivers, and Alternative Requirements This section of the notice describes requirements established by the Appropriations Act, as well as waivers and alternative requirements that apply to the CDBGDR funds for electrical power system improvements. These waivers and alternative requirements provide flexibility in program design and implementation to support the grantees prudent implementation of activities to address necessary expenses and mitigate disaster risks to their electrical power systems, improve system reliability, resiliency, efficiency, sustainability and address each systems long-term financial viability, while ensuring that statutory requirements are met. For each waiver and alternative requirement, the Secretary has determined that good cause exists and that the waivers and alternative requirements are not inconsistent with the overall purpose of title I of the HCDA.
The Appropriations Act authorizes the Secretary to waive or specify alternative requirements for any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary, or use by the recipient, of these funds, except for requirements related to fair housing,
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nondiscrimination, labor standards, and the environment. HUD also has regulatory waiver authority under 24
CFR 5.110, 91.600, and 570.5.
Grantees may request additional waivers and alternative requirements from the Department as needed to address specific needs related to their electrical power system improvement activities. Grantee requests for waivers and alternative requirements must be accompanied by relevant data to support the request and must demonstrate to the satisfaction of the Department that there is good cause for the waiver or alternative requirement.
Grantees must work with their assigned HUD CPD representative to request additional waivers or alternative requirements and such waivers and alternative requirements shall be subject to approval by HUD headquarters.
Except when noted, the waivers and alternative requirements described below apply only to CDBGDR funds subject to the requirements of this notice. Waivers and alternative requirements must be published in the Federal Register and are effective five 5 days after publication.
Except as described for CDBGDR
funds, statutory and regulatory provisions governing the State CDBG
program shall apply to both Puerto Rico and the USVI including but not limited to, the principle of maximum feasible deference as provided at 24 CFR
570.480. Statutory provisions for the State CDBG program title I of the HCDA can be found at 42 U.S.C. 5301
et seq. State CDBG regulations can be found at 24 CFR part 570. References to the action plan in these regulations refer to the action plan required by this notice.
V.A. Grant Administration and Action Plan Requirements V.A.1. Pre-award evaluation of management and oversight of funds.
HUD plans to work with other Federal agencies and the grantee to closely consult with and provide coordinated federal technical assistance to the grantee in its planning and implementation of all aspects of the electrical power system improvements to be funded with CDBGDR grants described in this notice. This coordinated Federal technical assistance aligns with the view that these electrical power system improvements by grantees will require a high level of interaction between HUD, the grantee, and other Federal agencies in order to ensure longterm performance and compliance. In establishing an alternative eligible activity for electrical power system improvements in section V.A.8.a. of this
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notice, HUD recognizes the unique nature of the activities to be funded with this allocation, the extent to which implementation of this activity is dependent upon each grantees public utility, and the financial management and program risks to grantees that are presented by the on-going operational and financial challenges of their respective public utilities. Accordingly, HUD will also give increased attention to the financial and operational capacity of each grantees subrecipients, subgrantees, and any other departments and divisions of the grantee that will carry out activities funded with this grant, including each of the public utilities that currently operate and maintain each grantees electrical power system.
Consistent with 2 CFR part 200, HUD
will use grant conditions to reduce risk, to contribute to improved outcomes in the use of this CDBGDR funding, and to help strengthen grantee management practices and improve the grantees capacity to respond to future disasters.
Among the conditions which may be established are requirements for notifying HUD of the planned disposition of components of the electrical power system acquired or improved with CDBGDR funds and for the management of any program income resulting from such disposition and standards for the procurement of electrical power system improvements, including those established by the U.S.
Department of Agricultures Rural Utility Service.
As electrical power system improvements necessarily rely on the grantees public utility, and for grantees that are considered by HUD to have unmitigated high risks, that impact their ability to carry out large-scale projects, HUD, in consultation with the U.S. Department of Treasury, may consider possible grant conditions.
These grant conditions may include but are not limited to requiring the grantee to provide periodic reports on how the expenditure of CDBGDR funds is contributing to the financial stability of the public utility including steps the utility is taking e.g., cost-cutting measures, increases in operational efficiency, increases to customer base and investments of public utility funds in the system.
The Department may, based on its assessment of risk, restrict the availability of funds until such time as various grant conditions are met by a grantee. Grantees are reminded that HUD may, at any time, establish new grant conditions based on the risk arising from the performance of a grantee or its subrecipients or may
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