Community Facility Loans and Grants

[[Page 11019]]

DEPARTMENT OF AGRICULTURE

Rural Housing and Community Development Service; Rural Business and

Cooperative Development Service; Rural Utilities Service; Consolidated

Farm Service Agency

7 CFR Part 1942

RIN 0575-AB82

Community Facility Loans and Grants

AGENCIES: Rural Housing and Community Development Service, Rural

Business and Cooperative Development Service, Rural Utilities Service,

Consolidated Farm Service Agency, USDA.

ACTION: Final rule.

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SUMMARY: The regulations utilized to administer Community Facility

Loans and Grants are being amended. This action changes the security

requirements for solid waste disposal loans. The change affects the

security requirements for loans secured primarily by revenue and the

funds used to construct or improve solid waste facilities in rural

communities. The effect of changing the security requirements for solid

waste facilities is to provide better service to communities seeking to

resolve solid waste disposal problems on a regional level.

EFFECTIVE DATE: March 1, 1995.

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

Water and Waste Disposal Division, Rural Utilities Service, USDA, South

Agriculture Building, Room 6328, Washington, DC 20250, telephone: (202)

720-9589.

SUPPLEMENTARY INFORMATION:

Classification

This rule has been determined to be not significant for the

purposes of Executive Order 12866 and therefore has not been reviewed

by the Office of Management and Budget.

Intergovernmental Review

The programs are listed in the Catalog of Federal Domestic

Assistance under number 10.760, Water and Waste Disposal Systems For

Rural Communities, and are 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.'' It has been determined that this

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, Pub. L. 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

The information collection requirements contained in this

regulation have been approved by the Office of Management and Budget

(OMB) under the provisions of 44 U.S.C. Chapter 35 and have been

assigned OMB control number 0575-0015 in accordance with the Paperwork

Reduction Act (44 U.S.C. 3507). This final rule does not revise or

impose any new information collection requirement from those approved

by OMB.

Background

A change is needed in the security requirements for loans made for

construction or improvements to solid waste facilities. The

requirements of the Environmental Protection Agency Subtitle D

regulations have increased the capital needs of rural communities for

disposal of solid waste. The current security requirements for loans on

solid waste facilities are too stringent, and this final action will

add flexibility that is needed to improve the program. Currently,

additional security is required when revenue is the primary security

for loans involving solid waste facilities. This change will remove the

requirement for additional security.

Comments on Proposed Rule

The Farmers Home Administration published a proposed rule in the

Federal Register on August 19, 1994, (59 FR 42783) and asked for

written comments on or before October 18, 1994. Ten comments were

received from the public review process. All ten of the comments

received were in relation to the proposed change to incorporate into

Community Programs loan and grant regulations the provision contained

in Rural Electrification Administration Loan Restructuring Act of 1993,

(REA Act). No comments were received regarding the proposed change in

the security requirements for loans made for solid waste disposal

facilities. Certain provisions of the REA Act prohibits a recipient of

the programs from imposing certain conditions on the users of the

service provided. The REA Act requires that appropriate measures and

sanctions be implemented against any person violating or attempting to

violate this prohibition. Based on the comments received, the proposed

change relating to the REA Act will not be included in this final rule.

Eight of the comments made stated that the proposed rule did not go far

enough in implementing the provisions of the REA Act. Another rule will

be issued in the future to comply with provisions of the REA Act

relating to all the Department's rural development programs.

List of Subjects in 7 CFR Part 1942

Community development, Community facilities, Loan programs-Housing

and community development, Loan security, 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 A--Community Facility Loans

2. Section 1942.17 is amended by revising paragraphs (g)(2)(ii) and

(g)(3)(ii) to read as follows:

Sec. 1942.17 Community facilities.

* * * * *

(g) * * *

(2) * * *

(ii) Solid waste systems. The type of security required will be

based on State law and what is determined adequate to protect the

interest of the United States during the repayment period of the loan.

* * * * *

(3) * * *

(ii) Solid waste systems. The type of security required will be

based on State law and what is determined adequate to protect the

interest of the United States during the repayment period of the loan.

* * * * *

3. Section 1942.50 is revised to read as follows:

Sec. 1942.50 OMB control number.

The reporting and recordkeeping requirements contained in this

regulation have been approved by the Office of Management and Budget

(OMB) and have been assigned OMB [[Page 11020]] control number 0575-

0015. Public reporting burden for this collection of information is

estimated to vary from five minutes to 15 hours per response, with an

average of 2.7 hours per response, including time for reviewing

instructions, searching existing data sources, gathering and

maintaining the data needed, and completing and reviewing the

collection of information. Send comments regarding this burden estimate

or any other aspect of this collection of information, including

suggestions for reducing this burden to the Department of Agriculture,

Clearance Officer, OIRM, Ag Box 7630, Washington, D.C. 20250; and to

the Office of Management and Budget, Paperwork Reduction Project (OMB

#0575-0015), Washington, D.C. 20503.

Dated: January 26, 1995.

Bob J. Nash,

Under Secretary, Rural Economic and Community Development.

[FR Doc. 95-4954 Filed 2-28-95; 8:45 am]

BILLING CODE 3410-32-U