Rule2026-05229
Streamlining the Requirements for Approved Projects for Public Works and Economic Development Investments
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 17, 2026
Effective
March 17, 2026
Issuing agencies
Commerce DepartmentEconomic Development Administration
Abstract
By this rule, EDA amends its regulations governing public works and economic development investments by removing certain unnecessary language. Specifically, this action removes unnecessary language related to bid overrun, project signs, and occupancy prior to final acceptance. This action is intended to streamline EDA's regulations without diminishing any substantive rights or obligations in connection with public works and economic development investments.
Full Text
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<title>Federal Register, Volume 91 Issue 51 (Tuesday, March 17, 2026)</title>
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[Federal Register Volume 91, Number 51 (Tuesday, March 17, 2026)]
[Rules and Regulations]
[Pages 12677-12678]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05229]
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DEPARTMENT OF COMMERCE
Economic Development Administration
13 CFR Part 305
[Docket No. 260311-0080]
RIN 0610-AA75
Streamlining the Requirements for Approved Projects for Public
Works and Economic Development Investments
AGENCY: Economic Development Administration (EDA), Department of
Commerce (Department).
ACTION: Final rule.
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SUMMARY: By this rule, EDA amends its regulations governing public
works and economic development investments by removing certain
unnecessary language. Specifically, this action removes unnecessary
language related to bid overrun, project signs, and occupancy prior to
final acceptance. This action is intended to streamline EDA's
regulations without diminishing any substantive rights or obligations
in connection with public works and economic development investments.
DATES: The rule is effective March 17, 2026.
FOR FURTHER INFORMATION CONTACT: Jeffrey Roberson, Chief Counsel,
Economic Development Administration, at (202) 779-0563.
SUPPLEMENTARY INFORMATION: By this rule, the Department amends the
regulations at 13 CFR part 305, subpart B, which establish the
requirements for approved projects for EDA's public works and economic
development investments. The Department amends those regulations in the
following ways.
First, the Department is removing unnecessary language from the
regulatory section governing bid overrun. Specifically, Sec.
305.10(b)(2) establishes that, in the event of bid overrun, recipients
may request additional funding, and it expressly states that ``[t]he
award of additional Investment Assistance is at EDA's sole discretion
and will be considered in accord with EDA's competitive process
requirements.'' 13 CFR 305.10(b)(2). Section 305.10(b)(2) goes on to
also state that ``EDA's consideration of a request for additional
Investment Assistance does not indicate approval.'' Id. Upon
[[Page 12678]]
review, the Department has determined that this final statement is
unnecessary, because consideration is not ordinarily understood to
necessarily indicate approval, and because the preceding sentence of
Sec. 305.10(b)(2) already sufficiently establishes that the
consideration of a request for additional funding, which will be done
in accord with EDA's competitive process requirements, is distinct from
the actual approval and award of additional funding, which is up to
EDA's sole discretion.
Second, the Department is removing Sec. 305.12, the section
pertaining to project signs. That section states that recipients are
responsible for the construction, erection, and maintenance of signs
indicating that the Federal government is participating in the project,
in accordance with EDA's specifications. 13 CFR 305.12. As this section
alludes to, EDA provides recipients with clear signage specifications
and requirements through its regional offices and award documents, as
appropriate. Accordingly, EDA has determined that this general
reference to those signage specifications is unwarranted and
appropriate for removal, for the sake of simplifying and streamlining
part 305.
Third, the Department is removing Sec. 305.14, the section
pertaining to occupancy prior to final acceptance. Specifically, Sec.
305.14 states that ``[o]ccupancy of any part of the Project prior to
final acceptance is entirely at the Recipient's risk and must follow
the requirements of local and State law.'' 13 CFR 305.14. The
Department is satisfied, however, that both of these basic points are
sufficiently well-established independent of Sec. 305.14; risk and
liability allocation is adequately established by both the government-
wide regulations at 2 CFR part 200 and common law principles, and the
default understanding that State and local laws apply independent of
Federal law is adequately established under our constitutional
structure and system of laws. The Department has therefore determined
that the removal of Sec. 305.14 is warranted to simplify and
streamline part 305.
Overall, the Department has determined that these amendments to
part 305 will reduce the unnecessary complexity of part 305 and promote
administrative efficiency, without diminishing any substantive rights
or obligations related to EDA's public works and economic development
investments.
Classifications
A. Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b)(B), the Department finds good cause to
waive the prior notice and opportunity for public participation
requirements of the Administrative Procedure Act for this final rule.
The Department considers this rule to be uncontroversial, and has
determined that prior notice and opportunity for public participation
is unwarranted, because this rule only removes language that provides
unnecessary clarification, reiteration, and/or elaboration. None of the
language being removed by this rule is statutorily required, and public
participation could not justify the continued maintenance of any of the
language at issue under the Department's broader regulatory policies.
For the same reasons, the Department has determined that delaying the
effectiveness of these amendments would be contrary to the public
interest. The language being removed by this rule adds complexity and
clutter to part 305, poses some risk of confusion and distraction, and
impedes administrative efficiency; the removal of this language will
immediately streamline part 305 and benefit the public at little to no
cost. The Department therefore finds good cause to waive the public
notice and comment period under 553(b)(B) and to waive the 30-day delay
in effectiveness under 553(d).
B. Executive Orders 12866, 14192, 13132
The Office of Management and Budget has determined this rule is not
significant pursuant to Executive Order (``E.O.'') 12866. This rule is
an E.O. 14192 deregulatory action. This rule does not contain policies
having federalism implications as the term is defined in E.O. 13132.
C. Regulatory Flexibility Act
Because a notice of proposed rulemaking and an opportunity for
public participation are not required to be given for this rule by 5
U.S.C. 553(b)(B), the analytical requirements of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly,
no regulatory flexibility analysis is required, and none has been
prepared.
D. Paperwork Reduction Act
This rule will not impose additional reporting or recordkeeping
requirements under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501
et seq.
List of Subjects for 13 CFR Part 305
Public works, Economic development, Award and application
requirements, Requirements for approved projects.
Dated: March 13, 2026.
Benjamin Page,
Deputy Assistant Secretary and Chief Operating Officer.
For the reasons set forth in the preamble, EDA amends 13 CFR part
305 as follows:
PART 305--PUBLIC WORKS AND ECONOMIC DEVELOPMENT INVESTMENTS
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1. The authority citation for part 305 continues to read as follows:
Authority: 42 U.S.C. 3211; 42 U.S.C. 3141; Department of
Commerce Organization Order 10-4.
Subpart B--Requirements for Approved Projects
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2. Amend Sec. 305.10 by revising paragraph (b)(2) to read as follows:
Sec. 305.10 Bid underrun and overrun.
* * * * *
(b) * * *
(2) If the Recipient demonstrates to EDA's satisfaction that the
options listed in paragraph (b)(1) of this section are not feasible and
the Project cannot be completed otherwise, the Recipient may submit a
written request to EDA for additional funding in accordance with
applicable EDA guidance. The award of additional Investment Assistance
is at EDA's sole discretion and will be considered in accord with EDA's
competitive process requirements.
Sec. 305.12 [Removed and Reserved]
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3. Remove and reserve Sec. 305.12.
Sec. 305.14 [Removed and Reserved]
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4. Remove and reserve Sec. 305.14.
[FR Doc. 2026-05229 Filed 3-16-26; 8:45 am]
BILLING CODE 3510-24-P
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