[Federal Register Volume 59, Number 160 (Friday, August 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20433]


[[Page Unknown]]

[Federal Register: August 19, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1942

RIN 0575-AB82

 

Community Facility Loans and Grants

AGENCY: Farmers Home Administration, USDA.

ACTION: Proposed rule.

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SUMMARY: The Farmers Home Administration (FmHA) proposes to amend its 
regulations that are utilized by the Rural Development Administration 
(RDA) in administering Community Facility Loans and Grants. This action 
is necessary to implement a provision of the Rural Electrification 
Administration Loan Restructuring Act of 1993, (REA Act) and change the 
security requirements for solid waste disposal loans. The REA Act 
prohibits that a condition for assistance under any RDA program be a 
requirement that the recipient of such assistance accept or receive 
electric service from any particular utility, supplier, or cooperative. 
Also, a change is proposed in the security requirements for loans 
secured primarily by revenue and the funds used to construct or improve 
solid waste facilities in rural communities. The intended 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.

DATES: Written comments must be received on or before October 18, 1994.

ADDRESSES: Submit written comments in duplicate to the Chief, 
Regulations Analysis and Control Branch, Farmers Home Administration, 
U.S. Department of Agriculture, Room 6348, South Agriculture Building, 
14th and Independence, 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:

Classification

    We are issuing this proposed rule in conformance with Executive 
Order 12866, and we have determined that it is a ``significant 
regulatory action.''

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.'' 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, 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 proposed rule does not revise or 
impose any new information collection requirement from those approved 
by OMB.

Background

    A change is proposed 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 proposed 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. The proposed change will 
remove the requirement for additional security.
    This proposed action also incorporates into RDA loan and grant 
regulations the provision contained in the REA Act of 1993 which 
prohibits a recipient of the programs from imposing certain conditions 
on the users of the service provided. For example, a utility, supplier, 
or cooperative that provides electric service cannot obtain RDA 
financing for a water system and require that the water customers 
connect to their electric system as a condition for receiving water. 
The REA Act requires that appropriate measures and sanctions be 
implemented against any person violating or attempting to violate this 
prohibition.

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 
proposed to be 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) and by adding paragraph (j)(12) 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 Government 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 Government during the repayment period of the loan.
* * * * *
    (j) * * *
    (12) Prohibition on electric service. Recipients of assistance 
processed in accordance with this subpart cannot require the users of 
the services provided to accept or receive electric service from any 
particular utility, supplier, or cooperative. If the recipient of 
assistance is a utility, supplier, or cooperative that provides 
electric service, the recipient must agree that users of the facility 
financed will not be required to accept or receive electric service. 
All recipients that also provide electric service must include the 
following in its rules and regulations: ``No existing or future user of 
the facility financed by the Rural Development Administration has been 
or will be required to receive electric service as a condition to 
utilize the services provided by the facility.'' A violation of this 
prohibition will result in the acceleration of all loans received under 
this subpart and debarment from receiving future Federal financial 
assistance. Compliance with this paragraph will be monitored through 
routine servicing procedures.
* * * * *
    Dated: August 9, 1994.
Bob J. Nash,
Under Secretary, Small Community and Rural Development.
[FR Doc. 94-20433 Filed 8-18-94; 8:45 am]
BILLING CODE 3410-07-U