Financial Assistance: Wildlife Restoration, Sport Fish Restoration, Hunter Education and Safety, 46150-46171 [2011-19206]

Agencies

• Fish and Wildlife Service
• DEPARTMENT OF THE INTERIOR

[Federal Register Volume 76, Number 147 (Monday, August 1, 2011)]
[Rules and Regulations]
[Pages 46150-46171]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19206]



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Vol. 76

Monday,

No. 147

August 1, 2011

Part IV





Department of the Interior





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Fish and Wildlife Service





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50 CFR Part 80





Financial Assistance: Wildlife Restoration, Sport Fish Restoration, 
Hunter Education and Safety; Final Rule

Federal Register / Vol. 76, No. 147 / Monday, August 1, 2011 / Rules 
and Regulations

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DEPARTMENT OF THE INTERIOR

Fish and Wildlife Service

50 CFR Part 80

[Docket No. FWS-R9-WSR-2009-0088; 91400-5110-POLI-7B; 91400-9410-POLI-
7B]
RIN 1018-AW65


Financial Assistance: Wildlife Restoration, Sport Fish 
Restoration, Hunter Education and Safety

AGENCY: Fish and Wildlife Service, Interior.

ACTION: Final rule.

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SUMMARY: We, the U.S. Fish and Wildlife Service, are revising 
regulations governing the Wildlife Restoration, Sport Fish Restoration, 
and Hunter Education and Safety (Enhanced Hunter Education and Safety) 
financial assistance programs. We proposed a revision of these 
regulations on June 10, 2010, to address changes in law, regulation, 
policy, technology, and practice during the past 25 years. We also 
proposed a clarification of some provisions of the issue-specific final 
rule that we published on July 24, 2008. This final rule simplifies 
specific requirements of the establishing authorities of the three 
programs and clarifies terms in those authorities as well as terms 
generally used in grant administration. We organized the final rule to 
follow the life cycle of a grant, and we reworded and reformatted the 
regulations following Federal plain language policy and current 
rulemaking guidance.

DATES: The final rule is effective on August 31, 2011.

FOR FURTHER INFORMATION CONTACT: Joyce Johnson, Wildlife and Sport Fish 
Restoration Program, Division of Policy and Programs, U.S. Fish and 
Wildlife Service, 703-358-2156.

SUPPLEMENTARY INFORMATION: 

Background

    This final rule revises title 50 part 80 of the Code of Federal 
Regulations (CFR), which is ``Administrative Requirements, Pittman-
Robertson Wildlife Restoration and Dingell-Johnson Sport Fish 
Restoration Acts.'' The primary users of these regulations are the fish 
and wildlife agencies of the 50 States, the Commonwealths of Puerto 
Rico and the Northern Mariana Islands, the District of Columbia, and 
the territories of Guam, the U.S. Virgin Islands, and American Samoa. 
We use ``State'' or ``States'' in this document to refer to any or all 
of these jurisdictions, except the District of Columbia for purposes of 
the Pittman-Robertson Wildlife Restoration Act and the two grant 
programs and one subprogram under its authority, because the Act does 
not authorize funding for the District. The term, ``the 50 States,'' 
applies only to the 50 States of the United States. It does not include 
the Commonwealths of Puerto Rico and the Northern Mariana Islands, the 
District of Columbia, or the territories of Guam, the U.S. Virgin 
Islands, and American Samoa.
    These regulations tell States how they may: (a) Use revenues from 
hunting and fishing licenses; (b) receive annual apportionments from 
the Federal Aid to Wildlife Restoration Fund and the Sport Fish 
Restoration and Boating Trust Fund; (c) receive financial assistance 
from the Wildlife Restoration program, the Basic Hunter Education and 
Safety subprogram, and the Enhanced Hunter Education and Safety 
program; and (d) receive financial assistance from the Sport Fish 
Restoration program, the Recreational Boating Access subprogram, the 
Aquatic Resources Education subprogram, and the Outreach and 
Communications subprogram. These programs provide financial assistance 
to State fish and wildlife agencies to: (a) Restore or manage wildlife 
and sport fish; (b) provide hunter-education, hunter-development, and 
hunter-safety programs; (c) provide recreational boating access; (d) 
enhance the public's understanding of water resources, aquatic-life 
forms, and sport fishing; and (e) develop responsible attitudes and 
ethics toward aquatic and related environments. The Catalog of Federal 
Domestic Assistance at https://www.cfda.gov describes these programs 
under 15.611, 15.605, and 15.626.
    The Pittman-Robertson Wildlife Restoration Act, as amended (50 
Stat. 917; 16 U.S.C. 669-669k), and the Dingell-Johnson Sport Fish 
Restoration Act, as amended (64 Stat. 430; 16 U.S.C. 777-777n, except 
777e-1 and g-1), established the programs affected by this final rule 
in 1937 and 1950 respectively. We refer to these acts in this document 
and in the final rule as ``the Acts.'' They established a hunting- and 
angling-based user-pay and user-benefit system in which the State fish 
and wildlife agencies of the 50 States, the Commonwealths, and the 
territories receive formula-based funding from a continuing 
appropriation from a dedicated fund in the Treasury. The District of 
Columbia also receives funding, but only under the Dingell-Johnson 
Sport Fish Restoration Act. The Pittman-Robertson Wildlife Restoration 
Act does not authorize funding for the District of Columbia. Industry 
partners pay excise taxes into a dedicated fund in the Treasury on 
equipment and gear manufactured for purchase by hunters, anglers, 
boaters, archers, and recreational shooters. The Service distributes 
these funds to the fish and wildlife agencies of the States that 
contribute matching funds, generally derived from hunting and fishing 
license sales. In fiscal year 2010, the States and other eligible 
jurisdictions received $384 million in new funding through the Wildlife 
Restoration and Enhanced Hunter Education and Safety programs and $363 
million in new funding through the Sport Fish Restoration program.
    We published a proposed rule in the June 10, 2010, Federal Register 
[75 FR 32877] to revise the regulations governing 50 CFR part 80. We 
reviewed and considered all comments that were delivered to the 
Service's Division of Policy and Directives Management during a 60-day 
period from June 10 to August 9, 2010, and all comments that were 
entered on https://www.regulations.gov or postmarked during that period. 
We received 10 comments from State agencies, 2 comments from nonprofit 
organizations, and 2 comments from one individual. Most commenters 
addressed several issues, so we reorganized the issues into 33 single-
issue comments. This final rule adopts the proposed rule that we 
published on June 10, 2010, with changes based on the comments 
received. We discuss these comments in the following section.

Response to Public Comments

    We arranged the public comments under the relevant sections of the 
rule. Each numbered comment is from only one agency, organization, or 
individual unless it states otherwise. The comments summarize the 
recommendations or opinions as the commenter presented them. We state 
in the response to each comment whether we made any changes as a result 
of the recommendation. We also state how we changed the rule, or we 
refer the reader to the location of the change in the final rule.
    Some public comments led us to reexamine sections beyond those that 
the public addressed specifically. Based on this reexamination, we made 
nonsubstantive changes throughout the document to improve clarity, 
consistency, organization, or comprehensiveness. We addressed any 
substantive changes that resulted from this reexamination in our 
responses to the comments.

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    We use the term ``current'' to refer to 50 CFR part 80 or any 
section or paragraph of 50 CFR part 80 that became effective after 
publication of a final rule in the Federal Register at 73 FR 43120, 
July 24, 2008. The term ``proposed'' refers to language that was in the 
proposed rule published in the Federal Register at 75 FR 32877, June 
10, 2010. The term ``new'' refers to the language of 50 CFR part 80 as 
published in this final rule.

Subpart A--General

Section 80.2 What terms do I need to know?
    Comment 1: Define personal property and law-enforcement activities.
    Response 1: We defined personal property to include intellectual 
property and gave examples at the new Sec.  80.2. We removed the 
definition of intellectual property and all examples from the proposed 
Sec.  80.20. To conform to these changes for personal property, we 
moved the examples of real property from the proposed Sec.  80.20(b)(1) 
to the definition at Sec.  80.2. We will consider proposing a 
definition of law enforcement during the next revision of 50 CFR part 
80, so we can receive public comments on a proposed definition.
    Comment 2: Three commenters had concerns about the proposed 
definition of wildlife, which includes only birds and mammals. One 
commenter said that the narrow definition would cause conflicts with 
States that define it more broadly. Another commenter requested that we 
broaden the definition to include alligators. The third commenter noted 
the proposed definition does not include snapping turtles or bullfrogs, 
which are part of at least one State's hunting or sportfishing program.
    Response 2: We did not make any changes in response to these 
comments. The proposed rule's definition of wildlife is specific to 
wild birds and mammals. This is a common element in all State 
definitions of wildlife, and program regulations since 1956 have 
limited the benefits of the Pittman-Robertson Wildlife Restoration Act 
(Act) to wild birds and mammals. The Act did not define wildlife in the 
original 1937 legislation, and none of its amendments defined wildlife 
for purposes of projects under the Act. Although Public Law 106-553 
(December 21, 2000) amended the Act and defined wildlife, the only 
effects of the amendment were to authorize fiscal year 2001 funds for 
the Wildlife Conservation and Restoration program and to clarify the 
effect of the Federal Advisory Committee Act. Public Law 106-553's 
definition of wildlife did not apply to projects under the Act 
according to section 902(f).

Subpart C--License Revenue

Section 80.20 What does revenue from hunting and fishing licenses 
include?
    Comment 3: The opening statement in Sec.  80.20(a) reads, ``Hunting 
and fishing license revenue includes: (1) Proceeds that the State fish 
and wildlife agency receives from the sale of State-issued general or 
special hunting or fishing licenses * * * '' This is a change from the 
current Sec.  80.4, which reads, ``Revenues from license fees paid by 
hunters and fishermen are any revenues the State receives from the sale 
of licenses * * *'' This change could exclude as license revenue any 
license fees collected by other State agencies on behalf of the State 
fish and wildlife agencies.
    Response 3: We changed the proposed Sec.  80.20(a) to read, ``All 
proceeds from the sale of State-issued general or special hunting and 
fishing licenses, permits, stamps, tags, access and use fees, and other 
State charges to hunt or fish for recreational purposes.''

Subpart D--Certification of License Holders

Section 80.31 How does an agency certify the number of paid license 
holders?
    Comment 4: Insert ``or his or her designee'' after ``the director 
of the [State] agency'' at Sec.  80.31(b) because another individual 
may be responsible for submitting annual license- certification data 
electronically to the Service on behalf of the agency director.
    Response 4: We changed Sec.  80.31(b) to incorporate the 
recommendation.
Section 80.33 How does an agency decide who to count as paid license 
holders in the annual certification?
    Comment 5: One commenter supported the language at Sec.  
80.33(a)(1) allowing States to count license holders regardless of 
whether the licensee engages in the activity. Two other commenters said 
that the State should not count license holders in the annual 
certification if the licensee does not hunt or fish.
    Response 5: We did not make any changes based on this comment. Some 
people buy a license because they plan to hunt or fish, but never do. 
Others buy a license to take part in other outdoor activities on a 
State Wildlife Management Area where it is required for entry. Some buy 
a license solely to support wildlife and sport fish programs. Others 
buy a lifetime license as a gift for a child who is too young to hunt 
or fish. The Acts require States to count the number of paid hunting- 
or fishing-license holders. They do not require States to count those 
who actually hunt or fish.
    Comment 6: Allow a State to verify a license holder in State 
records using a unique identifier instead of a name. This will 
accommodate a State that does not record the name of certain categories 
of license holders, such as minors, out-of-State hunters and anglers, 
and individuals who do not want to give their names for religious 
reasons.
    Response 6: We accepted the recommendation, but we need to ensure 
that the agency can associate a license holder with the unique 
identifier. We changed the proposed Sec.  80.33(a) to read: ``A State 
fish and wildlife agency must count only those people who have a 
license issued: (1) In the license holder's name, or (2) With a unique 
identifier that is traceable to the license holder, who must be 
verifiable in State records.''
    Comment 7: Section 80.33(a)(4) does not allow a State director to 
count all persons who have paid licenses to hunt or fish in the State-
specified certification period. This is inconsistent with the Acts and 
the proposed Sec.  80.31(a).
    Response 7: We did not make any changes based on this comment. We 
use data from the annual certification of licenses to divide excise tax 
revenue among the States. Section 80.33 provides an equitable way to 
count: (a) Individuals holding licenses for a fixed period 
corresponding to the license-certification year, and (b) other 
individuals holding licenses for a period that starts on the date of 
purchase and ends 365 days later (variable period). A State that sells 
variable-period licenses should not be able to count them in two annual 
certification periods if a State that sells only single-year fixed-
period licenses can count them in only one annual certification period.
    Comment 8: Combination license holders should be counted as both 
anglers and hunters at Sec.  80.33(a)(6) only if the State offers an 
option to buy a separate license to hunt or fish. If no such option 
exists, the State should conduct a survey or use other means to find 
out how many license holders intend to hunt and how many intend to 
fish. The same approach should apply to use permits and entrance fees 
for wildlife management areas, to find out how many enter to hunt or 
fish, and how many enter for other activities. States should count only 
those who hunt or fish as paid license holders.
    Response 8: The Acts require States to count the number of paid 
hunting and

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fishing license holders. They do not require States to count those who 
actually hunt or fish, so we will not require surveys as the commenter 
recommended.
    Comment 9: The proposed Sec.  80.33(b) states that, for a multiyear 
license to be counted in each certification period, a State fish and 
wildlife agency must receive $1 per year of net revenue for each year 
in which the license is valid. Clarify whether the agency can count the 
multiyear license as a paid license if the agency spends the entire 
multiyear license fee immediately after receiving it. Without this 
clarification, an alternative interpretation is that the agency must 
hold the fee over the lifetime of the license so that $1 of net revenue 
is available in each year that the agency will count it as a paid 
license.
    Response 9: We added a new Sec.  80.35 on requirements for 
multiyear licenses. Paragraph (b) of this new section addresses the 
commenter's concern: ``The agency must receive net revenue from a 
multiyear license that is in close approximation to the net revenue 
received for a single-year license providing similar privileges:
    (1) Each year during the license period, or
    (2) At the time of sale as if it were a single-payment annuity, 
which is an investment of the license fee that shows the agency would 
have received at least the minimum required net revenue for each year 
of the license period.''
Section 80.34 (new section 80.36) May an agency count license holders 
in the annual certification if the agency receives funds from the State 
to cover their license fees?
    Comment 10: One commenter said that senior citizens in his State 
must pay $11 for a license, of which the State fish and wildlife agency 
receives about $9. The commenter said this $9 in net revenue allows the 
State to count the license in only nine annual certification periods. 
He compared this to the proposed Sec. Sec.  80.33(b) and 80.34 which 
would allow a State to provide funds to its fish and wildlife agency to 
cover fees normally charged for a category of license, such as senior 
citizens or veterans. The agency would be able to count those license 
holders in the annual certification for each year that the State covers 
the fees. The commenter said this change would potentially shift funds 
from States that offer low-cost licenses to those where the State 
covers fees normally charged for a category of license. Two other 
commenters opposed the proposed Sec. Sec.  80.33(b) and 80.34, and two 
commenters supported these sections.
    Response 10: We did not make any changes based on this comment. If 
a State chooses to pay the hunting and fishing license fees for a 
category of its citizens, it should be able to count the license 
holders in the annual certification if the State and its fish and 
wildlife agency satisfy the conditions at the new Sec.  80.36.
    Comment 11: The proposed Sec.  80.34(b) requires that any funds 
that a State provides to its fish and wildlife agency to cover fees for 
a category of license holder must equal or exceed the fees that the 
license holder would have paid. Why is this different from the standard 
at the proposed Sec.  80.33(a)(4), which requires that the agency 
receive at least $1 per year of net revenue?
    Response 11: Licenses that provide similar privileges should not 
have a lower fee just because the State is paying for it. We retained 
this requirement with an additional clarification at the new Sec.  
80.36(d).

Subpart E--Eligible Activities

Section 80.50 What activities are eligible for funding under the 
Pittman-Robertson Wildlife Restoration Act?
    Comment 12: Add as an eligible activity, ``Obtain data to guide and 
direct the regulation of hunting.''
    Response 12: We added the recommended eligible activity at a new 
paragraph (a)(3).
    Comment 13: The use of ``or'' in the proposed Sec.  80.50(a)(4) 
allows funding for anything that simply provides public access. The 
public access should be associated with a wildlife- or habitat-
management or conservation purpose.
    Response 13: We changed the proposed Sec.  80.50(a)(4) to read, 
``Acquire real property suitable or capable of being made suitable for: 
(i) Wildlife habitat, or (ii) Public access for hunting and other 
wildlife-oriented recreation.'' We also moved the proposed Sec.  
80.50(a)(5)(ii) to the new Sec.  80.50(a)(6)(ii) and changed it to 
read, ``Provide public access for hunting or other wildlife-oriented 
recreation.''
    Comment 14: Add coordination of grants as an eligible activity for 
the Wildlife and Sport Fish Restoration programs. Add technical 
assistance as an eligible activity for the Wildlife Restoration 
program.
    Response 14: We added ``Coordinate grants in the Wildlife 
Restoration program and related programs and subprograms'' as an 
eligible activity for the Wildlife Restoration program at the new Sec.  
80.50(a)(8). We also added ``Coordinate grants in the Sport Fish 
Restoration program and related programs and subprograms'' as an 
eligible activity for the Sport Fish Restoration program at the new 
Sec.  80.51(a)(11). We did not add technical assistance because we may 
need to establish criteria to decide when it is appropriate, and we do 
not want to do this without the benefit of public comment following a 
proposed rule. However, the Regional Director may still approve 
technical assistance as an eligible activity on a case-by-case basis 
under the new section Sec.  80.52, which we discuss in Response 15.
    Comment 15: The ``closed list'' of eligible activities could 
exclude some creative projects that may be appropriate under the Act.
    Response 15: We added a new section Sec.  80.52 which reads: ``An 
activity may be eligible for funding even if this part does not 
explicitly designate it as an eligible activity if: (a) The State fish 
and wildlife agency justifies in the project statement how the activity 
will help carry out the purposes of the Pittman-Robertson Wildlife 
Restoration Act or the Dingell-Johnson Sport Fish Restoration Act, and 
(b) The Regional Director concurs with the justification.''
    Comment 16: One commenter was pleased that the proposed rule 
included hunter development and recruitment as eligible for funding 
under the Enhanced Hunter Education and Safety program. Another 
commenter said that recruitment has no foundation in the Act. The 
commenter also said that the Service could consider marketing, 
promotion, and advertising that may be part of recruitment as public 
relations, which is an ineligible activity.
    Response 16: We disagreed with the commenter's view that 
recruitment may be an ineligible activity. The Pittman-Robertson 
Wildlife Restoration Act at 16 U.S.C. 669h-1 specifically allows the 
use of funds for hunter-development programs, and recruitment may be 
the first phase of hunter development. We made no changes based on this 
comment.
    Comment 17: The linkage that Sec.  80.50(c)(1) makes between hunter 
development and target shooting is weak at best.
    Response 17: Target shooting is an activity that develops certain 
hunting skills and supplements hunter education and firearm safety. We 
made no changes based on this comment.
    Comment 18: The proposed rule should have said whether competitive 
shooting events are eligible activities and more specifically whether a 
grant could pay for prizes, scholarships, and awards associated with 
competitive shooting events.

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    Response 18: If the State fish and wildlife agency, or more 
typically, the subgrantee, holds the competitive shooting event for the 
primary purpose of producing income, the event would not be eligible 
for funding under the Pittman-Robertson Wildlife Restoration Act. We 
will consider developing Service policy on competitive events in the 
grant programs and subprograms authorized by the Acts. We made no 
changes based on this comment.
Section 80.51 What activities are eligible for funding under the 
Dingell-Johnson Sport Fish Restoration Act?
    Comment 19: Add as an eligible activity for the Sport Fish 
Restoration program, ``Stock fish for recreational purposes.''
    Response 19: We incorporated the recommendation at the new Sec.  
80.51(a)(5).
    Comment 20: Change the second sentence at Sec.  80.51(b)(1) so that 
it reads, ``A broad range of access facilities and associated amenities 
can qualify for funding, but they must provide benefits to recreational 
boaters.'' This change will align the regulation with the language of 
the Act. The Service's policy at 517 FW 7.12(B) already ensures that 
the facilities accommodate stakeholders who buy motorboat fuels or 
angling gear.
    Response 20: We changed the sentence as recommended.
Section 80.52 (80.53 in final rule) What activities are ineligible for 
funding?
    Comment 21: Clarify whether wildlife damage and predator control 
are eligible for funding from (a) a grant in the Wildlife Restoration 
program, or (b) license revenue.
    Response 21: We will consider this issue during the next revision 
of 50 CFR 80, so that the public will have the opportunity to offer 
comments. We made no changes based on this comment.

Subpart F--Allocation of Funds by an Agency

Section 80.60 What is the relationship between the Basic Hunter 
Education and Safety subprogram and the Enhanced Hunter Education and 
Safety program?
    Comment 22: Explain at Sec.  80.60(c) that the Service reapportions 
unobligated Enhanced Hunter Education funds to eligible States as 
Wildlife Restoration funds and not Hunter Education funds.
    Response 22: We changed Sec.  80.60(c) to incorporate this 
recommendation.
Section 80.66 What requirements apply to allocation of funds between 
marine and freshwater fisheries projects?
    Comment 23: The proposed Sec.  80.66(a) requires the use of a 
proportion based on the ratio of a State's resident marine anglers to 
the State's total anglers. This ratio must equal the ratio of: (a) The 
Sport Fish Restoration funds that the State allocates for marine 
projects, to (b) the total Sport Fish Restoration funds. However, some 
marine anglers also fish in freshwater, so a State has to allocate this 
overlap when developing a ratio for marine and a ratio for freshwater 
anglers. The Service has misinterpreted 16 U.S.C. 777(b)(1) which 
reads, `` * * * [E]ach coastal State * * * shall equitably allocate 
amounts apportioned to such State * * * between marine fish projects 
and freshwater fish projects in the same proportion as the estimated 
number of resident marine anglers and the estimated number of resident 
freshwater anglers, respectively, bear to the estimated number of all 
resident anglers in that State.'' This requires only a comparison of 
the number of marine anglers to the number of freshwater anglers in the 
same order as a comparison of the dollars allocated to marine projects 
and the dollars allocated to freshwater projects. The relationship of 
the numbers of the two types of anglers is a ratio, just as the 
relationship of the two dollar amounts is a ratio. The two ratios are 
in the ``same proportion'' as required by Sec.  777(b)(1). The proposed 
rule incorrectly requires a proportion based on: (a) A comparison of 
the funds allocated to marine fisheries projects with the total funds 
allocated to marine and freshwater fisheries, and (b) a comparison of 
marine anglers to the total number of marine and freshwater anglers.
    Response 23: The commenter's recommendation would make the 
allocation of funds simpler, but the proposed Sec.  80.66(a) is the 
most reasonable interpretation of what the drafters of the legislation 
intended. In any case, it would not be appropriate to impose a 
different allocation method based on an alternative interpretation 
without the benefit of public review. We made no changes based on this 
comment, but we will review this issue before the next revision of 50 
CFR 80.

Subpart G--Application for a Grant

Section 80.83 What is the Federal share of allowable cost?
    Comment 24: Section 80.83(a) gives the Regional Director the 
discretion to reimburse allowable costs on a sliding scale between 10 
and 75 percent, but does not give guidance on how the Regional Director 
should make that decision.
    Response 24: The commenter's general concern was also applicable to 
the other paragraphs of Sec.  80.83. We changed the proposed Sec.  
80.83 to provide more detail on how the Regional Director decides on 
the Federal share.

Subpart I--Program Income

Section 80.120 What is program income?
    Comment 25: Explain at the proposed Sec.  80.120(c)(1) why hunting 
and fishing license revenue collected as fees for special-area access 
or recreation cannot be program income.
    Response 25: We deleted the proposed Sec.  80.120(c)(1) from the 
list of examples of revenue that cannot be program income. This 
deletion is the result of a July 2010 determination that hunter-access 
fees on lands leased with grant funds for public hunting may qualify as 
program income under certain conditions.
    Comment 26: Explain the basis of the distinction between leases 
with terms greater than 10 years and leases with terms less than 10 
years.
    Response 26: Leases are legally complex. Their classification as 
personal or real property varies significantly among the States and 
even within a State depending on the type of property. The 
classification of a lease as real or personal property is important 
because it determines whether rent earned by a grantee from the lease 
of real property acquired under a grant is classified as program income 
or as proceeds from the disposition of real property. We proposed the 
10-year threshold to simplify this complexity by adopting a common 
standard for classifying leases as real or personal property for 
purposes of the grant programs under the Acts. We chose 10 years 
because it is a commonly accepted dividing line between long-term and 
short-term leases, which often affects the lessees' rights and 
responsibilities. We will present this subject in the context of a 
future proposed rule that focuses on the acquisition and disposition of 
all types of real property under a grant. Until we can develop a 
proposed rule with that focus, we will rely on case-by-case legal 
interpretations when faced with lease-related issues. We changed the 
proposed Sec.  80.120(c)(6), which is the new Sec.  80.120(c)(5), to 
read, ``Proceeds from the sale of real property.''

[[Page 46154]]

Section 80.123 How may an agency use program income?
    Comment 27: One commenter stated that we should not require State 
fish and wildlife agencies to obtain the Regional Director's approval 
of the matching method for using program income if we do not require 
the Regional Director's approval for other activities under a grant. 
This commenter and another stated that all grants qualified for use of 
the matching method under the criteria at Sec.  80.123(c), and both 
commenters said that we should consider approving the use of the 
matching method without conditions or give specific guidance on when 
its use is appropriate. A third commenter also requested guidance on 
when the matching method is appropriate.
    Response 27: The statement at Sec.  80.123(c) that the Regional 
Director may approve the use of the matching method is consistent with 
other prior-approval requirements of this regulation. The Director has 
delegated the authority to conduct grant programs to the Regional 
Director with only a few exceptions. The definition of ``Regional 
Director'' at Sec.  80.2 includes his or her designated representative, 
and Regional Directors have generally delegated most decisions on grant 
programs to the chiefs of their Regional Wildlife and Sport Fish 
Restoration Program Divisions. We will consider proposing criteria for 
approval of the matching method of using program income during the next 
revision of 50 CFR 80 so the public will have the opportunity to offer 
comments. We made no changes based on these comments.

Subpart J--Real Property

Section 80.130 Does an agency have to hold title to real property 
acquired under a grant?
    Comment 28: Do not restrict a State agency's ability in Sec.  
80.130 to carry out a grant-funded project on lands to which it does 
not have title. States may want to use grant funds to manage wildlife 
on Federal lands under the terms of a cooperative agreement.
    Response 28: Both Sec. Sec.  80.130 and 80.132 relate to the 
commenter's concern. We based these sections on 16 U.S.C. 777g(a), 43 
CFR 12.71(a) and (b), and the current regulation at Sec.  80.20, which 
has been part of 50 CFR part 80 with only a minor change since 1982. 
The final rule does not affect an agency's ability to manage Federal 
lands cooperatively if this management does not include the completion 
of a capital improvement.
Section 80.131 Does an agency have to hold an easement acquired under a 
grant?
    Comment 29: Replace ``subgrantee'' with ``third party'' because 
``subgrant'' implies that grant funding passes to a subgrantee for use 
at the subgrantee's discretion.
    Response 29: A subgrantee is an entity that receives an award of 
money or property. A subgrantee is accountable to the grantee for the 
use of the money or property (see definitions of subgrant and 
subgrantee at 43 CFR 12.43). The proposed Sec.  80.131(b) allows the 
grantee to subgrant only a concurrent right to hold the easement or a 
right of enforcement. The grantee will be able to set the terms of the 
subgrant agreement and ensure that the subgrantee's right will not 
supersede and will be concurrent with the agency's right of 
enforcement. Since a third party is not necessarily a subgrantee, the 
grantee may not be able to set the terms of any agreement on the right 
of enforcement or a concurrent right to hold the easement. We made no 
changes based on this comment.
    Comment 30: Define ``concurrent right to hold.''
    Response 30: We defined the term at the new Sec.  80.131(b)(2).
Section 80.132 Does an agency have to control the land or water where 
it completes capital improvements?
    See Comments 31 and 32 and our responses.
Section 80.134 How must an agency use real property?
    Comment 31: Instead of requiring a grantee to use real property for 
the uses in the grant, the regulation should state that the property 
must continue to serve the purpose of the grant and must be used for 
the administration of the fish and wildlife programs.
    Response 31: The new Sec.  80.134(a) states, ``If a grant funds 
acquisition of an interest in a parcel of land or water, the State fish 
and wildlife agency must use it for the purpose authorized in the 
grant.'' The requirement to use property for the administration of fish 
and wildlife programs applies only if: (a) The administration of fish 
and wildlife programs is a purpose of the grant-funded project that 
acquired, completed, operated, or maintained the real property; or (b) 
license revenue funded all or part of the project [see the proposed 50 
CFR 80.10(c)(2)]. We made no changes based on this comment.
    Comment 32: Clarify that grant projects on property other than that 
acquired with grant funds fall within the requirements of Sec.  80.134.
    Response 32: The comment applies to Sec.  80.132 as well as Sec.  
80.134. We changed Sec. Sec.  80.132 and 80.134 to incorporate the 
recommendation and to clarify in Sec.  80.134 the differences in use 
requirements for specific types of grant-funded projects.
Section 80.137 What if real property is no longer useful or needed for 
its original purpose?
    Comment 33: The proposed Sec.  80.137 says that if a State fish and 
wildlife agency's director and the Service's Regional Director jointly 
decide that grant-funded real property is no longer useful or needed 
for its original purpose, the State agency's director may request 
disposition instructions. Provide guidance on how the Service and State 
agency will cooperatively formulate these instructions.
    Response 33: We changed the proposed Sec.  80.137(b) so that it 
reads: ``Request disposition instructions for the real property under 
the process described at 43 CFR 12.71, `Administrative and Audit 
Requirements and Cost Principles for Assistance Programs'.''

Required Determinations

Regulatory Planning and Review (E.O. 12866)

    The Office of Management and Budget (OMB) has determined that this 
rule is not significant and has not reviewed this rule under E.O. 
12866. OMB bases its determination on the following four criteria:
    a. Whether the rule will have an annual effect of $100 million or 
more on the economy or adversely affect an economic sector, 
productivity, jobs, the environment, or other units of the government.
    b. Whether the rule will create inconsistencies with other Federal 
agencies' actions.
    c. Whether the rule will materially affect entitlements, grants, 
user fees, loan programs, or the rights and obligations of their 
recipients.
    d. Whether the rule raises novel legal or policy issues.

Regulatory Flexibility Act (5 U.S.C. 601 et seq.)

    The Regulatory Flexibility Act requires an agency to consider the 
impact of final rules on small entities, i.e., small businesses, small 
organizations, and small government jurisdictions. If there is a 
significant economic impact on a substantial number of small entities, 
the agency must perform a Regulatory Flexibility Analysis. This is not 
required if the

[[Page 46155]]

head of an agency certifies the rule would not have a significant 
economic impact on a substantial number of small entities. The Small 
Business Regulatory Enforcement Fairness Act (SBREFA) amended the 
Regulatory Flexibility Act to require Federal agencies to state the 
factual basis for certifying that a rule would not have a significant 
economic impact on a substantial number of small entities.
    We have examined this final rule's potential effects on small 
entities as required by the Regulatory Flexibility Act. We have 
determined that the changes in the final rule will not have a 
significant impact and do not require a Regulatory Flexibility Analysis 
because the changes:
    a. Give information to State fish and wildlife agencies that allows 
them to apply for and administer grants more easily, more efficiently, 
and with greater flexibility. Only State fish and wildlife agencies may 
receive grants in the three programs affected by this regulation, but 
small entities sometimes voluntarily become subgrantees of agencies. 
Any impact on these subgrantees would be beneficial.
    b. Address changes in law and regulation. This rule helps grant 
applicants and recipients by making the regulations consistent with 
current standards. Any impact on small entities that voluntarily become 
subgrantees of agencies would be beneficial.
    c. Change three provisions on license certification adopted in a 
final rule published on July 24, 2008, based on subsequent experience. 
These changes would impact only agencies and not small entities.
    d. Clarify additional issues in the Pittman-Robertson Wildlife 
Restoration Act and Dingell-Johnson Sport Fish Restoration Act. This 
clarification will help agencies comply with statutory requirements and 
increase awareness of alternatives available under the law. Any impact 
on small entities that voluntarily become subgrantees of agencies would 
be beneficial.
    e. Clarify that (1) cooperative farming or grazing arrangements and 
(2) sales receipts retained by concessioners or contractors are not 
program income. This clarification allows States to expand projects 
with small businesses and farmers without making these cooperative 
arrangements or sales receipts subject to program income restrictions. 
This clarification would be potentially beneficial to the small 
entities that voluntarily become cooperative farmers, cooperative 
ranchers, and concessioners.
    f. Add information that allows States to enter into agreements with 
nonprofit organizations to share rights or responsibilities for 
easements acquired under grants for the mutual benefit of both parties. 
This addition would benefit the small entities that enter into these 
agreements voluntarily.
    g. Reword and reorganize the regulation to make it easier to 
understand. Any impact on the small entities that voluntarily become 
subgrantees of agencies would be beneficial.
    The Service has determined that the changes primarily impact State 
governments. The small entities affected by the changes are primarily 
concessioners, cooperative farmers, cooperative ranchers, and 
subgrantees who voluntarily enter into mutually beneficial 
relationships with an agency. The impact on small entities would be 
very limited and beneficial in all cases.
    Consequently, we certify that because this final rule would not 
have a significant economic effect on a substantial number of small 
entities, a Regulatory Flexibility Analysis is not required.
    In addition, this final rule is not a major rule under SBREFA (5 
U.S.C. 804(2)) and would not have a significant impact on a substantial 
number of small entities because it does not:
    a. Have an annual effect on the economy of $100 million or more.
    b. Cause a major increase in costs or prices for consumers; 
individual industries; Federal, State, or local government agencies; or 
geographic regions.
    c. Have significant adverse effects on competition, employment, 
investment, productivity, innovation, or the ability of U.S.-based 
enterprises to compete with foreign-based enterprises.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. Ch. 25; Pub. L. 
104-4) establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. The Act requires each Federal 
agency, to the extent permitted by law, to prepare a written assessment 
of the effects of a final rule with Federal mandates that may result in 
the expenditure by State, local, and tribal governments, in aggregate, 
or by the private sector, of $100 million or more (adjusted annually 
for inflation) in any one year. We have determined the following under 
the Unfunded Mandates Reform Act (2 U.S.C. 1501 et seq.):
    a. As discussed in the determination for the Regulatory Flexibility 
Act, this final rule would not have a significant economic effect on a 
substantial number of small entities.
    b. The regulation does not require a small government agency plan 
or any other requirement for expenditure of local funds.
    c. The programs governed by the current regulations and enhanced by 
the changes potentially assist small governments financially when they 
occasionally and voluntarily participate as subgrantees of an agency.
    d. The final rule clarifies and enhances the current regulations 
allowing State, local, and tribal governments, and the private sector 
to receive the benefits of grant funding in a more flexible, efficient, 
and effective manner. They may receive these benefits as a subgrantee 
of a State fish and wildlife agency, a cooperating farmer or rancher, a 
concessioner, a concurrent holder of a grant-acquired easement, or a 
holder of enforcement rights under an easement.
    e. Any costs incurred by a State, local, and tribal government, or 
the private sector are voluntary. There are no mandated costs 
associated with the final rule.
    f. The benefits of grant funding outweigh the costs. The Federal 
Government provides up to 75 percent of the cost of each grant to the 
50 States in the three programs affected by the final rule. The Federal 
Government may also provide up to 100 percent of the cost of each grant 
to the Commonwealths of Puerto Rico and the Northern Mariana Islands, 
the District of Columbia, and the territories of Guam, the U.S. Virgin 
Islands, and American Samoa. All 50 States and other eligible 
jurisdictions voluntarily apply for grants in these programs each year. 
This rate of participation is clear evidence that the benefits of grant 
funding outweigh the costs.
    g. This final rule would not produce a Federal mandate of $100 
million or greater in any year, i.e., it is not a ``significant 
regulatory action'' under the Unfunded Mandates Reform Act.

Takings

    This final rule does not have significant takings implications 
under E.O. 12630 because it does not have a provision for taking 
private property. Therefore, a takings implication assessment is not 
required.

Federalism

    This final rule does not have sufficient Federalism effects to 
warrant preparation of a Federalism assessment under E.O. 13132. It 
will not interfere with the States' ability to manage themselves or 
their funds. We work

[[Page 46156]]

closely with the States in administration of these programs, and they 
helped us identify those sections of the current regulations in need of 
change and new issues in need of clarification through regulation. In 
drafting the final rule, we received comments from committees of the 
Association of Fish and Wildlife Agencies and from the Joint Federal/
State Task Force on Federal Assistance Policy. The Director of the U.S. 
Fish and Wildlife Service and the President of the Association of Fish 
and Wildlife Agencies jointly chartered the Joint Federal/State Task 
Force on Federal Assistance Policy in 2002 to identify issues of 
national concern in the three grant programs affected by the final 
rule.

Civil Justice Reform

    The Office of the Solicitor has determined under E.O. 12988 that 
the rule would not unduly burden the judicial system and meets the 
requirements of sections 3(a) and 3(b)(2) of the Order. The final rule 
will benefit grantees because it:
    a. Updates the regulations to reflect changes in policy and 
practice during the past 25 years;
    b. Makes the regulations easier to use and understand by improving 
the organization and using plain language;
    c. Modifies four provisions in the final rule to amend 50 CFR part 
80 published in the Federal Register at 73 FR 43120 on July 24, 2008, 
based on subsequent experience; and
    d. Addresses four new issues that State fish and wildlife agencies 
raised in response to the proposed rule to amend 50 CFR part 80 
published in the Federal Register at 73 FR 24523, May 5, 2008.

Paperwork Reduction Act

    We examined the final rule under the Paperwork Reduction Act (44 
U.S.C. 3501 et seq.). We may not collect or sponsor and you are not 
required to respond to a collection of information unless it displays a 
current OMB control number. The final rule at 50 CFR 80.160 describes 
eight information collections. All of these collections request 
information from State fish and wildlife agencies, and all have current 
OMB control numbers.
    OMB authorized and approved Governmentwide standard forms for four 
of the eight information collections. These four information 
collections are for the purposes of: (a) Application for a grant; (b) 
assurances related to authority, capability, and legal compliance for 
nonconstruction programs, (c) assurances related to authority, 
capability, and legal compliance for construction programs; and (d) 
reporting on the use of Federal funds, match, and program income.
    OMB approved three other information collections in the final rule 
under control number 1018-0109, but has not approved Governmentwide 
standard forms for these collections. The purposes of these information 
collections are to provide the Service with: (a) A project statement in 
support of a grant application, (b) a report on progress in completing 
a grant-funded project, and (c) a request to approve an update or 
another change in information provided in a previously approved 
application. OMB authorized these information collections in its 
Circular A-102.
    The Acts and the current 50 CFR 80.10 authorize the eighth 
information collection. This collection allows the Service to learn the 
number of people who have a paid license to hunt and the number of 
people who have a paid license to fish in each State during a State-
specified certification year. The Service uses this information in 
statutory formulas to apportion funds in the Wildlife Restoration and 
Sport Fish Restoration programs among the States. OMB approved this 
information collection on forms FWS 3-154a and 3-154b under control 
number 1018-0007. The final rule does not change the information 
required on forms FWS 3-154a and 3-154b. It merely establishes a common 
approach for States to assign license holders to a certification year.

National Environmental Policy Act

    We have analyzed this rule under the National Environmental Policy 
Act, 42 U.S.C. 432-437(f) and part 516 of the Departmental Manual. This 
rule does not constitute a major Federal action significantly affecting 
the quality of the human environment. An environmental impact 
statement/assessment is not required due to the categorical exclusion 
for administrative changes provided at 516 DM 8.5A(3).

Government-to-Government Relationship With Tribes

    We have evaluated potential effects on federally recognized Indian 
tribes under the President's memorandum of April 29, 1994, 
``Government-to-Government Relations with Native American Tribal 
Governments'' (59 FR 22951), E.O. 13175, and 512 DM 2. We have 
determined that there are no potential effects. This final rule will 
not interfere with the tribes' ability to manage themselves or their 
funds.

Energy Supply, Distribution, or Use (E.O. 13211)

    E.O. 13211 addresses regulations that significantly affect energy 
supply, distribution, and use and requires agencies to prepare 
Statements of Energy Effects when undertaking certain actions. This 
rule is not a significant regulatory action under E.O. 12866 and will 
not affect energy supplies, distribution, or use. Therefore, this 
action is not a significant energy action and no Statement of Energy 
Effects is required.

List of Subjects in 50 CFR Part 80

    Education, Fish, Fishing, Grants administration, Grant programs, 
Hunting, Natural resources, Real property acquisition, Recreation and 
recreation areas, Signs and symbols, Wildlife.

Final Regulation Promulgation

    For the reasons discussed in the preamble, we amend title 50 of the 
Code of Federal Regulations, chapter I, subchapter F, by revising part 
80 to read as set forth below:

Title 50--Wildlife and Fisheries

PART 80--ADMINISTRATIVE REQUIREMENTS, PITTMAN-ROBERTSON WILDLIFE 
RESTORATION AND DINGELL-JOHNSON SPORT FISH RESTORATION ACTS

Subpart A--General
Sec.
80.1 What does this part do?
80.2 What terms do I need to know?
Subpart B--State Fish and Wildlife Agency Eligibility
80.10 Who is eligible to receive the benefits of the Acts?
80.11 How does a State become ineligible to receive the benefits of 
the Acts?
80.12 Does an agency have to confirm that it wants to receive an 
annual apportionment of funds?
Subpart C--License Revenue
80.20 What does revenue from hunting and fishing licenses include?
80.21 What if a State diverts license revenue from the control of 
its fish and wildlife agency?
80.22 What must a State do to resolve a declaration of diversion?
80.23 Does a declaration of diversion affect a previous Federal 
obligation of funds?
Subpart D--Certification of License Holders
80.30 Why must an agency certify the number of paid license holders?
80.31 How does an agency certify the number of paid license holders?
80.32 What is the certification period?

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80.33 How does an agency decide who to count as paid license holders 
in the annual certification?
80.34 How does an agency calculate net revenue from a license?
80.35 What additional requirements apply to multiyear licenses?
80.36 May an agency count license holders in the annual 
certification if the agency receives funds from the State to cover 
their license fees?
80.37 What must an agency do if it becomes aware of errors in its 
certified license data?
80.38 May the Service recalculate an apportionment if an agency 
submits revised data?
80.39 May the Director correct a Service error in apportioning 
funds?
Subpart E--Eligible Activities
80.50 What activities are eligible for funding under the Pittman-
Robertson Wildlife Restoration Act?
80.51 What activities are eligible for funding under the Dingell-
Johnson Sport Fish Restoration Act?
80.52 May an activity be eligible for funding if it is not 
explicitly eligible in this part?
80.53 Are costs of State central services eligible for funding?
80.54 What activities are ineligible for funding?
80.55 May an agency receive a grant to carry out part of a larger 
project?
80.56 How does a proposed project qualify as substantial in 
character and design?
Subpart F--Allocation of Funds by an Agency
80.60 What is the relationship between the Basic Hunter Education 
and Safety subprogram and the Enhanced Hunter Education and Safety 
program?
80.61 What requirements apply to funds for the Recreational Boating 
Access subprogram?
80.62 What limitations apply to spending on the Aquatic Resource 
Education and the Outreach and Communications subprograms?
80.63 Does an agency have to allocate costs in multipurpose projects 
and facilities?
80.64 How does an agency allocate costs in multipurpose projects and 
facilities?
80.65 Does an agency have to allocate funds between marine and 
freshwater fisheries projects?
80.66 What requirements apply to allocation of funds between marine 
and freshwater fisheries projects?
80.67 May an agency finance an activity from more than one annual 
apportionment?
80.68 What requirements apply to financing an activity from more 
than one annual apportionment?
Subpart G--Application for a Grant
80.80 How does an agency apply for a grant?
80.81 What must an agency submit when applying for a comprehensive-
management-system grant?
80.82 What must an agency submit when applying for a project-by-
project grant?
80.83 What is the Federal share of allowable costs?
80.84 How does the Service establish the non-Federal share of 
allowable costs?
80.85 What requirements apply to match?
Subpart H--General Grant Administration
80.90 What are the grantee's responsibilities?
80.91 What is a Federal obligation of funds and how does it occur?
80.92 How long are funds available for a Federal obligation?
80.93 When may an agency incur costs under a grant?
80.94 May an agency incur costs before the beginning of the grant 
period?
80.95 How does an agency receive Federal grant funds?
80.96 May an agency use Federal funds without using match?
80.97 May an agency barter goods or services to carry out a grant-
funded project?
80.98 How must an agency report barter transactions?
80.99 Are symbols available to identify projects?
80.100 Does an agency have to display one of the symbols in this 
part on a completed project?
Subpart I--Program Income
80.120 What is program income?
80.121 May an agency earn program income?
80.122 May an agency deduct the costs of generating program income 
from gross income?
80.123 How may an agency use program income?
80.124 How may an agency use unexpended program income?
80.125 How must an agency treat income that it earns after the grant 
period?
80.126 How must an agency treat income earned by a subgrantee after 
the grant period?
Subpart J--Real Property
80.130 Does an agency have to hold title to real property acquired 
under a grant?
80.131 Does an agency have to hold an easement acquired under a 
grant?
80.132 Does an agency have to control the land or water where it 
completes capital improvements?
80.133 Does an agency have to maintain acquired or completed capital 
improvements?
80.134 How must an agency use real property?
80.135 What if an agency allows a use of real property that 
interferes with its authorized purpose?
80.136 Is it a diversion if an agency does not use grant-acquired 
real property for its authorized purpose?
80.137 What if real property is no longer useful or needed for its 
original purpose?
Subpart K--Revisions and Appeals
80.150 How does an agency ask for revision of a grant?
80.151 May an agency appeal a decision?
Subpart L--Information Collection
80.160 What are the information collection requirements of this 
part?

    Authority: 16 U.S.C. 669-669k; 16 U.S.C. 777-777n, except 777e-1 
and g-1.

Subpart A--General


Sec.  80.1  What does this part do?

    This part of the Code of Federal Regulations tells States how they 
may:
    (a) Use revenues derived from State hunting and fishing licenses in 
compliance with the Acts.
    (b) Receive annual apportionments from the Federal Aid to Wildlife 
Restoration Fund (16 U.S.C. 669(b)), if authorized, and the Sport Fish 
Restoration and Boating Trust Fund (26 U.S.C 9504).
    (c) Receive financial assistance from the Wildlife Restoration 
program, the Basic Hunter Education and Safety subprogram, and the 
Enhanced Hunter Education and Safety grant program, if authorized.
    (d) Receive financial assistance from the Sport Fish Restoration 
program, the Recreational Boating Access subprogram, the Aquatic 
Resources Education subprogram, and the Outreach and Communications 
subprogram.
    (e) Comply with the requirements of the Acts.


Sec.  80.2  What terms do I need to know?

    The terms in this section pertain only to the regulations in this 
part.
    Acts means the Pittman-Robertson Wildlife Restoration Act of 
September 2, 1937, as amended (16 U.S.C. 669-669k), and the Dingell-
Johnson Sport Fish Restoration Act of August 9, 1950, as amended (16 
U.S.C. 777-777n, except 777e-1 and g-1).
    Agency means a State fish and wildlife agency.
    Angler means a person who fishes for sport fish for recreational 
purposes as permitted by State law.
    Capital improvement. (1) Capital improvement means:
    (i) A structure that costs at least $10,000 to build; or
    (ii) The alteration, renovation, or repair of a structure if it 
increases the structure's useful life or its market value by at least 
$10,000.
    (2) An agency may use its own definition of capital improvement if 
its definition includes all capital improvements as defined here.
    Comprehensive management system is a State fish and wildlife 
agency's method of operations that links programs, financial systems, 
human resources, goals, products, and services. It assesses the 
current, projected, and

[[Page 46158]]

desired status of fish and wildlife; it develops a strategic plan and 
carries it out through an operational planning process; and it 
evaluates results. The planning period is at least 5 years using a 
minimum 15-year projection of the desires and needs of the State's 
citizens. A comprehensive-management-system grant funds all or part of 
a State's comprehensive management system.
    Construction means the act of building or significantly renovating, 
altering, or repairing a structure. Acquiring, clearing, and reshaping 
land and demolishing structures are types or phases of construction. 
Examples of structures are buildings, roads, parking lots, utility 
lines, fences, piers, wells, pump stations, ditches, dams, dikes, 
water-control structures, fish-hatchery raceways, and shooting ranges.
    Director means:
    (1) The person whom the Secretary:
    (i) Appointed as the chief executive official of the U.S. Fish and 
Wildlife Service, and
    (ii) Delegated authority to administer the Acts nationally; or
    (2) A deputy or another person authorized temporarily to administer 
the Acts nationally.
    Diversion means any use of revenue from hunting and fishing 
licenses for a purpose other than administration of the State fish and 
wildlife agency.
    Fee interest means the right to possession, use, and enjoyment of a 
parcel of land or water for an indefinite period. A fee interest, as 
used in this part, may be the:
    (1) Fee simple, which includes all possible interests or rights 
that a person can hold in a parcel of land or water; or
    (2) Fee with exceptions to title, which excludes one or more real 
property interests that would otherwise be part of the fee simple.
    Grant means an award of money, the principal purpose of which is to 
transfer funds or property from a Federal agency to a grantee to 
support or stimulate an authorized public purpose under the Acts. This 
part uses the term grant for both a grant and a cooperative agreement 
for convenience of reference. This use does not affect the legal 
distinction between the two instruments. The meaning of grant in the 
terms grant funds, grant-funded, under a grant, and under the grant 
includes the matching cash and any matching in-kind contributions in 
addition to the Federal award of money.
    Grantee means the State fish and wildlife agency that applies for 
the grant and carries out grant-funded activities in programs 
authorized by the Acts. The State fish and wildlife agency acts on 
behalf of the State government, which is the legal entity and is 
accountable for the use of Federal funds, matching funds, and matching 
in-kind contributions.
    Lease means an agreement in which the owner of a fee interest 
transfers to a lessee the right of exclusive possession and use of an 
area of land or water for a fixed period, which may be renewable. The 
lessor cannot readily revoke the lease at his or her discretion. The 
lessee pays rent periodically or as a single payment. The lessor must 
be able to regain possession of the lessee's interest (leasehold 
interest) at the end of the lease term. An agreement that does not 
correspond to this definition is not a lease even if it is labeled as 
one.
    Match means the value of any non-Federal in-kind contributions and 
the portion of the costs of a grant-funded project or projects not 
borne by the Federal Government.
    Personal property means anything tangible or intangible that is not 
real property.
    (1) Tangible personal property includes:
    (i) Objects, such as equipment and supplies, that are moveable 
without substantive damage to the land or any structure to which they 
may be attached;
    (ii) Soil, rock, gravel, minerals, gas, oil, or water after 
excavation or extraction from the surface or subsurface;
    (iii) Commodities derived from trees or other vegetation after 
harvest or separation from the land; and
    (iv) Annual crops before or after harvest.
    (2) Intangible personal property includes:
    (i) Intellectual property, such as patents or copyrights;
    (ii) Securities, such as bonds and interest-bearing accounts; and
    (iii) Licenses, which are personal privileges to use an area of 
land or water with at least one of the following attributes:
    (A) Are revocable at the landowner's discretion;
    (B) Terminate when the landowner dies or the area of land or water 
passes to another owner; or
    (C) Do not transfer a right of exclusive use and possession of an 
area of land or water.
    Project means one or more related undertakings in a project-by-
project grant that are necessary to fulfill a need or needs, as defined 
by a State fish and wildlife agency, consistent with the purposes of 
the appropriate Act. For convenience of reference in this part, the 
meaning of project includes an agency's fish and wildlife program under 
a comprehensive management system grant.
    Project-by-project grant means an award of money based on a 
detailed statement of a project or projects and other supporting 
documentation.
    Real property means one, several, or all interests, benefits, and 
rights inherent in the ownership of a parcel of land or water. Examples 
of real property include fee and leasehold interests, conservation 
easements, and mineral rights.
    (1) A parcel includes (unless limited by its legal description) the 
air space above the parcel, the ground below it, and anything 
physically and firmly attached to it by a natural process or human 
action. Examples include standing timber, other vegetation (except 
annual crops), buildings, roads, fences, and other structures.
    (2) A parcel may also have rights attached to it by a legally 
prescribed procedure. Examples include water rights or an access 
easement that allows the parcel's owner to travel across an adjacent 
parcel.
    (3) The legal classification of an interest, benefit, or right 
depends on its attributes rather than the name assigned to it. For 
example, a grazing ``lease'' is often a type of personal property known 
as a license, which is described in the definition of personal property 
in this section.
    Regional Director means the person appointed by the Director to be 
the chief executive official of one of the Service's geographic 
Regions, or a deputy or another person temporarily authorized to 
exercise the authority of the chief executive official of one of the 
Service's geographic Regions. This person's responsibility does not 
extend to any administrative units that the Service's Washington Office 
supervises directly in that geographic Region.
    Secretary means the person appointed by the President to direct the 
operation of the Department of the Interior, or a deputy or another 
person who is temporarily authorized to direct the operation of the 
Department.
    Service means the U.S. Fish and Wildlife Service.
    Sport fish means aquatic, gill-breathing, vertebrate animals with 
paired fins, having material value for recreation in the marine and 
fresh waters of the United States.
    State means any State of the United States, the Commonwealths of 
Puerto Rico and the Northern Mariana Islands, and the territories of 
Guam, the U.S. Virgin Islands, and American Samoa. State also