Original Notice.

     Exempt from preproposal statement of inquiry under RCW 34.05.310(4).

     Title of Rule: 350-120, Economic development certification process.

     Purpose: The purpose of this rule is to define the process by which the Gorge Commission certifies economic development grants and loans, awarded by the Washington and Oregon investment boards, as consistent with the federal Columbia River Gorge National Scenic Area Act, the management plan, and land use ordinances adopted pursuant to the act.

     Statutory Authority for Adoption: RCW 43.97.015, 16 U.S.C. § 544i.

     Statute Being Implemented: Same.

     Summary: This rule proposes an expedited certification process for certain types of economic grants and loans. The proposed rule allows the executive director of the Gorge Commission to certify these grants and loans rather than the full Gorge Commission. This could save up to several weeks.

     Reasons Supporting Proposal: The proposal includes adding an expedited process for certifying economic development grants and loans. The Washington and Oregon investment boards believe this will stimulate economic development.

     Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Martha Bennett, #1 Town & Country Square, P.O. Box 730, White Salmon, WA, (509) 493-3323.

     Name of Proponent: Columbia River Gorge Commission, at the request of the Washington and Oregon investment boards, governmental.

     Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: The commission is especially interested in public comment concerning whether public input should be required prior to the executive director certifying the grant or loan, and if so, then how that should occur within the time proposed.

     Rule is not necessitated by federal law, federal or state court decision.

     Explanation of Rule, its Purpose, and Anticipated Effects: This rule proposes an expedited certification process for certain types of economic grants and loans. The proposed rule allows the executive director of the Gorge Commission, rather than the full Gorge Commission, to certify these grants and loans. This could save up to several weeks for applicants. The Washington and Oregon investment boards have not provided the Gorge Commission with specific dollar amounts, but have testified that an expedited procedure will facilitate persons obtaining grants and loans and enable faster action on economic development opportunities. The Gorge Commission does not expect the proposed expedited certification process to have any fiscal impact on its budget.

     Proposal Changes the Following Existing Rules: The proposed rule will amend 350-120-010, 350-120-020, 350-120-030, and 350-120-040. The proposed rule will add new sections 350-120-015, 350-120-025, and 350-120-050.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. No statement has been prepared because the amendments will not impose any new costs on businesses. The amendments only allow an expedited certification of economic development grants and loans, which will reduce costs on businesses.

     RCW 34.05.328 does not apply to this rule adoption. This rule is exempt under RCW 34.05.328 (5)(b)(ii).

     Hearing Location: Columbia Gorge Discovery Center, 5000 Discovery Drive, The Dalles, OR, on February 10, 2004, at 9:00 a.m.

     Assistance for Persons with Disabilities: Contact

Nancy Andring by February 6, 2004.

     Submit Written Comments to: Columbia River Gorge Commission, #1 Town and Country Square, P.O. Box 730, White Salmon, WA 98672, fax (509) 493-2229, by February 9, 2004.

     Date of Intended Adoption: February 10, 2004.

December 4, 2003

Nancy A. Andring

Rules Coordinator

350-120-010 Authority.

     Section 11 (c)(1) of the Scenic Area Act requires the Commission to certify all activities undertaken under a National Scenic Area economic development grant and/or loan are consistent with the purposes of the Act, the management plan, and land use ordinances adopted pursuant to the Act.

     The Scenic Area Act states as follows:

     § 544i. Economic development

     (a) Economic development plan. Based on the Economic Opportunity Study and other appropriate information, each State, in consultation with the counties and the Commission, shall develop a plan for economic development projects for which grants under this section may be used in a manner consistent with this Act.

     (b) Funds provided to States for grants. Upon certification of the management plan, and receipt of a plan referred to in subsection (a) of this section, the Secretary shall provide $5,000,000 to each State which each State shall use to make grants and loans for economic development projects that further the purposes of this Act.

     (c) Conditions of grants. Each State making grants under this section shall require as a condition of a grant that --

     (1) all activities undertaken under the grant are certified by the Commission as being consistent with the purposes of the Act, the management plan, and land use ordinances adopted pursuant to this Act;

     (2) grants and loans are not used to relocate a business from one community to another;

     (3) grants and loans are not used for program administration; and

     (4) grants and loans are used only in counties which have in effect land use ordinances found consistent by the Commission and concurred on by the Secretary pursuant to section 8 of this Act [16 USCS § 544f].

     (d) Report. Each State shall --

     (1) prepare and provide the Secretary with an annual report to the Secretary on the use of the funds made available under this section;

     (2) make available to the Secretary and to the Commission, upon request, all accounts, financial records, and other information related to grants and loans made available pursuant to this section; and

     (3) as loans are repaid, make additional grants and loans with the money made available for obligation by such repayments.

     16 USCS § 544i.

     Reviser's note: The brackets and enclosed material in the text of the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

     Reviser's note: The typographical errors in the above material occurred in the copy filed by the Columbia River Gorge Commission and appear in the Register pursuant to the requirements of RCW 34.08.040.

NEW SECTION

350-120-015 Definitions.

     For the purpose of this rule, the following definitions apply:

     (1) "Activity" refers to the specific proposed action for which the grant or loan is being sought.

     (2) "Project" refers to the ultimate business enterprise, development, and/or land use for which the activity supports or is a component part.

     Reviser's note: The unnecessary underscoring in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION

350-120-020 Application for Certification.

     (1) The applicant shall submit one complete application to the Executive Director of the Commission.

     (2) A complete application shall include:

     (a) One complete copy of the application materials required by the state agency administering the grant or loan program, excluding confidential financial information;

     (b) If the proposed project will be located entirely or partially within the general management area or special management area one complete copy of a Scenic Area land use ordinance development review decision, issued by the applicable county planning director, approving the proposed project as consistent with the ordinance requirements, or a copy of a letter from the applicable county planning director stating why the proposed project does not require review under the county's Scenic Area land use ordinance;

     (c) One completed application for certification form, available from the Gorge Commission and/or the state agencies administering the grant or loan program. The form shall include the following information:

     (A) applicant's name and business address;

     (B) description of proposed project and activity for which a Scenic Area grant or loan is sought;

     (C) legal description and map of the specific location of proposed project; if project has multiple or regional locations, these should be identified;

     (D) description of the existing use of the property or properties on which the project will be located and/or used;

     (E) a statement setting forth any local, state or federal permits required and a report on their status; and

     (F) signature of applicant and property owner if, different from applicant.

     (d) One copy of each of any state and federal environmental permits that have been issued for the proposed project. If permits have not been received, copies of permit applications shall be submitted instead.

     (3) The Director shall review the application and determine if it is complete. If it is not complete, the applicant is required to submit the additional information requested by the Director. Once the Director determines the application is complete, the process of staff analysis shall begin.

NEW SECTION

350-120-025 Certification Procedures.

     All applications for certification shall follow either the process in 350-120-030 through 040 or the process in 350-120-050.

     Reviser's note: The unnecessary underscoring in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION

350-120-030 Recommendation of the Director.

     (1) In making a recommendation on a proposed grant or loan the Director shall:

     (a) Consult with the applicant and such agencies as the Director deems appropriate;

     (b) Consider information submitted by the applicant and all other relevant information available;

     (2) The Director shall recommend a grant or loan for certification only if it is consistent with the purposes of the Act, the management plan and land use ordinances adopted pursuant to the Act.

     (3) Within 15 working 21 days of acceptance of the application as complete, the Director shall issue a report setting forth the recommendation and the basis for it.

     (4) The Director shall mail a copy of the decision report to the applicant, Gorge Commissioners, the Forest Service, the States of Oregon and Washington, the Indian Tribes with treaty rights in the Scenic Area, and the planning director of the applicable county or city.

     Reviser's note: The typographical errors in the above material occurred in the copy filed by the Columbia River Gorge Commission and appear in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION

350-120-040 Review and Decision by Commission.

     (1) The Commission shall review the recommendation and report of the Director at a scheduled meeting. Public comment shall be allowed.

     (2) The Commission may request further information at the meeting if it is deemed relevant to its decision.

     (3) At the first Commission meeting occurring five (5) or more working days of after issuance of the Director's report, the Commission shall make a decision on the grant or loan, as follows:

     (a) approve the request, certifying the grant or loan is consistent with the purposes of the Act, the management plan and land use ordinances adopted pursuant to the Act;

     (b) approve the request contingent upon approval of certain required state and/or federal environmental permits;

     (c) defer the decision, pending receipt of further information; or

     (d) deny the request, stating that the grant or loan is not consistent with the purposes of the Act, the management plan and land use ordinances adopted pursuant to the Act.

     (4) The Director shall notify the applicant, and the applicable state investment board of the Commission's decision.

     Reviser's note: The typographical error in the above material occurred in the copy filed by the Columbia River Gorge Commission and appears in the Register pursuant to the requirements of RCW 34.08.040.

NEW SECTION

350-120-050 Expedited Certification.

     (1) The Executive Director of the Gorge Commission may issue a decision for a certification application that meets all of the following criteria. The Executive Director may, at his or her discretion, require an application be reviewed pursuant to 350-120-030 and 040 above.

     (a) The project and activity shall not involve ground disturbance or changes to structures that are 50 years old or older;

     (b) The project shall be located wholly within an Urban Area;

     (c) The project and activity shall be consistent with the economic development policies in the Management Plan

     (d) The project and activity shall be consistent with the Economic Development Plans for Oregon and Washington as amended from time to time by the states consistent with Section 11(a) of the Scenic Area Act;

     (e) The project shall not involve relocation of a business from one National Scenic Area community to another;

     (f) The activity shall not involve program administration; and

     (g) The project shall occur only in counties that have in effect land use ordinances found consistent by the Commission and concurred on by the Secretary.

     (2) In making a decision to certify a proposed grant or loan the Director shall:

     (a) Consult with the applicant and such agencies as the Director deems appropriate, and

     (b) Consider information submitted by the applicant and all other relevant information available.

     (3) The Director shall approve a grant or loan for certification only if it is consistent with the purposes of the Act, and the management plan.

     (4) Within 14 days of acceptance of the application as complete, the Director shall issue a decision along with findings of fact and conclusions of law setting forth the basis for the decision.

     (5) The Director shall mail a copy of the decision to the applicant, the Forest Service, the States of Oregon and Washington, the Indian Tribes with treaty rights in the Scenic Area, the planning director of the applicable county or city, and any person who requests a copy of the decision.

     (6) The Executive Director shall prepare periodic summaries of the certifications approved through this expedited process for submission to the Gorge Commission.

     Reviser's note: The unnecessary underscoring in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

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