Community Facility Loans and Grants

DEPARTMENT OF AGRICULTURE

Farmers Home Administration

7 CFR Part 1942

RIN 0575-AB68

Community Facility Loans and Grants

AGENCY: Farmers Home Administration and Rural Development

Administration, USDA.

ACTION: Final rule with request for comments.

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SUMMARY: The Farmers Home Administration (FmHA) amends its regulations

that are utilized by the Rural Development Administration (RDA) in

administering Community Facility Loans and Grants. This action is

necessary to implement provisions of the Act making appropriations for

Agriculture, Rural Development, Food and Drug Administration, and

Related Agencies Programs for the fiscal year ending September 30, 1994

(the Act). The Act provides up to $15 million in RDA grant funds for

water and waste disposal (WWD) facilities in rural Alaskan villages.

The WWD grant funds authorized by the Act are to be made available to

remedy the dire sanitation conditions that exist in rural Alaskan

villages.

DATES: This final rule is effective on March 16, 1994. Written comments

must be received on or before May 16, 1994.

ADDRESSES: Submit written comments in duplicate to the Chief,

Regulations and Analysis and Control Branch, Farmers Home

Administration, U.S. Department of Agriculture, room 6348, South

Agriculture Building, 14th St. and Independence Ave., SW., Washington,

DC 20250. All written comments will be available for public inspection

during regular work hours at the above address.

FOR FURTHER INFORMATION CONTACT: Jerry W. Cooper, Loan Specialist,

Water and Waste Disposal Division, Rural Development Administration,

USDA, South Agriculture Building, room 6328, Washington, DC 20250,

telephone: (202) 720-9589.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

We are issuing this rule in conformance with Executive Order 12866,

and we have determined that it is not a ``significant regulatory

action.'' Based on information complied by the Department, we have

determined that this rule: (1) Would have an effect on the economy of

less than $100 million; (2) would not adversely affect in a material

way the economy, a sector of the economy, productivity, competition,

jobs, the environment, public health or safety, or State, local, or

tribal governments or communities; (3) would not create a serious

inconsistency or otherwise interfere with an action taken or planned by

another agency; (4) would not alter the budgetary impact of

entitlements, grants, user fees, or loan programs or rights and

obligations or recipients thereof; and (5) would not raise novel legal

or policy issues arising out of legal mandates, the President's

priorities, or principles set forth in Executive Order 12866.

Intergovernmental Review

This program is listed in the Catalog of Federal Domestic

Assistance under number 10.760, Water and Waste Systems For Rural

Communities and is subject to the provisions of Executive Order 12372

which requires intergovernmental consultation with State and local

officials.

Environmental Impact Statement

This action has been reviewed in accordance with FmHA Instruction

1940-G, ``Environmental Program.'' RDA has determined that the action

does not constitute a major Federal action significantly affecting the

quality of the human environment, and in accordance with the National

Environmental Policy Act of 1969, Public Law 91-190, an Environmental

Impact Statement is not required.

Compliance With Executive Order 12778

The regulation has been reviewed in light of Executive Order 12778

and meets the applicable standards provided in sections 2(a) and

(2)(b)(2) of that Order. Provisions within this part which are

inconsistent with State law are controlling. All administrative

remedies pursuant to 7 CFR part 1900 Subpart B must be exhausted prior

to filing suit.

Paperwork Reduction Act

In accordance with the Paperwork Reduction Act (44 U.S.C. 3507),

the information collection requirements included in this rule have been

approved through 7 CFR 1942-A. The assigned OMB control number is 0575-

0015. This rule does not revise or impose any new information

collection or recordkeeping requirements from those approved by the

Office of Management and Budget.

Background

It is the policy of this Department that rules relating to public

property, loans, grants, benefits, or contracts shall be published for

comment notwithstanding the exemption in 5 U.S.C. 553 with respect to

such rules. These amendments, however, are not published for proposed

rulemaking because they are merely following the specific directions of

the Act and no discretion is left with the agency as to how to use the

funds appropriated for this purpose.

The Act provides up to $15,000,000 of the amount appropriated for

WWD grants for projects to remedy the dire sanitation conditions that

exist in rural Alaskan villages. RDA grants are directed to Alaskan

villages that have a median household income that does not exceed 110

percent of the statewide nonmetropolitan median household income. The

statewide nonmetropolitan median household income for Alaska is

$39,804. The Act further provides that the grants are limited to 50

percent of the development cost of a project. The other 50 percent must

be from a State or local contribution. The RDA grant funds can be used

by rural Alaskan villages to construct or improve water or waste

disposal facilities to serve the residents of these villages. New or

improved water or waste disposal systems would solve a major health

problem that has burdened the rural parts of Alaska, inhabited

primarily Alaskan Natives. The lack of clean, running water and

sanitary facilities have led to severe health problems for many of the

villages residents.

List of Subjects in 7 CFR Part 1942

Community development, Community facilities, Grant programs--

Housing and community development, Rural areas, Waste treatment and

disposal--Domestic, Water supply--Domestic.

Therefore, chapter XVIII, title 7, Code of Federal Regulations is

amended as follows:

PART 1942--ASSOCIATIONS

1. The authority citation for part 1942 continues to read as

follows:

Authority: 7 U.S.C. 1989; 16 U.S.C. 1005; 5 U.S.C. 301; 7 CFR

2.23; 7 CFR 2.70.

Subpart H--Development Grants for Community Domestic Water and

Waste Disposal Systems

2. Section 1942.386 is added to read as follows:

Sec. 1942.386 Rural Alaskan villages.

(a) General.

(1) This section contains regulations for providing grants to

remedy the dire sanitation conditions in rural Alaskan villages using

funds specifically made available for this purpose.

(2) Unless specifically modified by this section, grants will be

made, processed, and serviced in accordance with this subpart.

(b) Definitions. (1) Dire sanitation condition. For the purpose of

this section, a dire sanitation condition exists where:

(i) Recurring instances of a waterborne communicable disease have

been documented; or

(ii) No community-wide water and sewer system exists and individual

residents must haul water to or human waste from their homes and/or use

pit privies.

(2) Rural Alaskan village. A rural Alaskan community which meets

the definition of a village under State statutes and does not have a

population in excess of 10,000 inhabitants, according to the latest

decennial Census of the United States.

(c) Eligibility. (1) The applicant must be a rural Alaskan village.

(2) The median household income of the village cannot exceed 110

percent of the statewide nonmetropolitan household income.

(3) A dire sanitation condition must exist in the village.

(4) The applicant must obtain 50 percent of project development

costs from State or local contributions. The local contribution can be

from loan funds authorized under subpart A of this part.

(d) Grant amount. Grants will be made for up to 50 percent of the

project development costs.

(e) Use of funds. Grant funds can be used to pay reasonable costs

associated with providing potable water or waste disposal services to

residents of rural Alaskan villages.

(f) Construction. (1) If the State of Alaska is contributing to the

project costs, the project does not have to meet the construction

requirements of this subpart.

(2) If a loan is made in accordance with subpart A of this part for

part of the local contribution, all of the requirements of that subpart

apply.

Dated: February 24, 1994.

Bob J. Nash,

Under Secretary for Small Community and Rural Development.

[FR Doc. 94-6024 Filed 3-15-94; 8:45 am]

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