[Federal Register Volume 69, Number 14 (Thursday, January 22, 2004)]
[Proposed Rules]
[Pages 3030-3036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-1274]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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 

  Federal Register / Vol. 69, No. 14 / Thursday, January 22, 2004 / 
Proposed Rules  

[[Page 3030]]



DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1775

RIN 0572-AB75


Technical Assistance Grants

AGENCY: Rural Utilities Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Rural Utilities Service (RUS) proposes to amend the 
regulation utilized to administer the technical assistance grant 
programs. This action is necessary to separate the technical assistance 
and training grant and solid waste management grant programs for 
clarification purposes and to bring the regulation in line with 
revisions to OMB circulars. Additionally, it eliminates the requirement 
that applicants submit a pre-application when applying for grant funds. 
This action also transfers grant processing and servicing from the 
National Office to Rural Development State Offices. The intended effect 
is to separate the technical assistance and solid waste management 
programs and to reduce regulatory burdens on applicants.

DATES: Written comments must be received by RUS or bear a postmark or 
equivalent, no later than March 22, 2004. Comments regarding the 
information and record keeping requirements must be received by March 
22, 2004.

ADDRESSES: Written comments should be sent to Richard Annan, Acting 
Director, Program Development and Regulatory Analysis, Rural Utilities 
Service, U.S. Department of Agriculture, 1400 Independence Ave., SW., 
Room 5168-S, STOP 1522, Washington, DC 20250-1522. RUS requires a 
signed original and three copies of all comments (7 CFR 1700.4). 
Comments will be available for public inspection during regular 
business hours (7 CFR 1.27(b)).

FOR FURTHER INFORMATION CONTACT: Stephen Saulnier, Loan Specialist, 
Water Programs Division, Rural Utilities Service, U.S. Department of 
Agriculture, 1400 Independence Avenue, SW., Room 2235-S, Stop 1570, 
Washington, DC 20250-1570. Telephone (202) 690-2526. E-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed 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 (OMB).

Executive Order 12372

    This rule is excluded from the scope of Executive Order 12372, 
Intergovernmental Consultation, which may require consultation with 
State and local officials. See the final rule related notice titled, 
``Technical Assistance and Training Grants Program; Proposal to Exclude 
Program and Activity From Executive Order 12372,'' (53 FR 44505) which 
determined that the RUS grants were not covered by Executive Order 
12372.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. RUS has determined that this proposed rule meets 
the applicable standards provided in section 3 of the Executive Order. 
In addition all State and local laws and regulations that are in 
conflict with this rule will be preempted; no retroactive effect will 
be given to the rule; and, in accordance with section 212(e) of the 
Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6912(e)) 
administrative appeal procedures, if any are required, must be 
exhausted prior to initiating any action against the Department or its 
agencies.

Regulatory Flexibility Act Certification

    Under section 605(b) of the Regulatory Flexibility Act, 5 U.S.C. 
605(b), RUS certifies that this rule will not have a significant 
economic impact on a substantial number of small entities. The 
amendments reflect only statutory changes that Congress has mandated 
and over which the Agency has no discretion.

Information Collection and Recordkeeping Requirements

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35) RUS is requesting comments on the information collection 
incorporated in this proposed rule.
    Comments on this information collection must be received by March 
22, 2004.
    Comments are invited on: (a) Whether the collection of information 
is necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility; (b) the 
accuracy of the agency's estimate of the burden including the validity 
of the methodology and assumption used; (c) ways to enhance the 
quality, utility and clarity of the information to be collected; and 
(d) ways to minimize the burden of the collection of information on 
those who are to respond, including through the use of automated 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    Title: 7 CFR Part 1775, Technical Assistance Program.
    OMB Control Number: 0572-0112.
    Type of Request: Revision of a currently approved collection.
    Abstract: The information collections contained in this rule are 
requirements prescribed by the Consolidated Farm and Rural Development 
Act (CONACT) (7 U.S.C. 1926(a)), as amended.
    The primary reasons for the promulgation of the proposed revisions 
to this rule were changes in the OMB circulars affecting these programs 
and changes in the way the programs have developed since inception.
    The proposed rule will provide a general section for the 
requirements that are the same for both grant programs and separate 
sections for the requirements unique to each grant program. This will 
clarify both the similarities and the differences in the programs and 
provide a clearer understanding of the requirements of each.
    RUS applicants would submit an application for consideration of 
grant funding, and if selected for funding, submit quarterly reports, 
as prescribed by the rule. The burden will vary depending on the type 
of project proposed for funding under the programs, which would then 
prescribe

[[Page 3031]]

the type of information collection involved. The collection of 
information is only that information which is essential for RUS to 
award and service grants in the best interest of the government.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 3.7 hours per response.
    Respondents: Not-for-profit institutions.
    Estimated Number of Respondents: 95.
    Estimated Number of Responses per Respondents: 16.
    Estimated Total Annual Burden on Respondents: 5,555 hours.
    Copies of this information collection can be obtained from Michele 
Brooks, Program Development and Regulatory Analysis, Rural Utilities 
Service. Telephone: (202) 690-1078.
    Send comments regarding this information collection requirement to 
Richard Annan, Acting Director, Program Development and Regulatory 
Analysis, USDA, Rural Utilities Service, 1400 Independence Ave., SW., 
Room 4034, Stop 1522, Washington, DC 20250-1522.
    Comments are best assured of having full effect if received within 
30 days of publication in the Federal Register. All comments will 
become a matter of public record.

National Environmental Policy Act Certification

    The Administrator of RUS has determined that this proposed rule 
will not significantly affect the quality of the human environment as 
defined by the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.). Therefore, this action does not require an environmental 
impact statement or assessment.

Catalog of Federal Domestic Assistance

    The programs described by this proposed rule are listed in the 
Catalog of Federal Domestic Assistance Programs under numbers 10.761, 
Technical Assistance and Training Grants and 10.762, Solid Waste 
Management Grants. This catalog is available on a subscription basis 
from the Superintendent of Documents, the United States Government 
Printing Office, Washington, DC 20402-9325, telephone number (202) 512-
1800.

Unfunded Mandates

    This rule contains no Federal mandates (under the regulatory 
provision of Title II of the Unfunded Mandates Reform Act of 1995) for 
State, local, and tribal governments or the private sector. Thus this 
rule is not subject to the requirements of sections 202 and 205 of the 
Unfunded Mandates Reform Act of 1995.

Background

    On November 2, 1987, the Farmers Home Administration (FmHA) 
(predecessor of RUS) published 7 CFR part 1942, subpart J, Technical 
Assistance and Training Grants, as a final rule in the Federal Register 
(52 FR 41950) implementing a new grant program. On February 5, 1992, 
FmHA published 7 CFR part 1942, subpart J, Technical Assistance and 
Training Grants, as a final rule in the Federal Register (57 FR 4357) 
revising the regulation to implement another new grant program. In 1994 
when RUS assumed the functions of the Water and Waste Disposal programs 
from the former FmHA and the Rural Development Administration (RDA), 
RUS changed the Technical Assistance and Training (TAT) and Solid Waste 
Management (SWM) grants regulations from 7 CFR 1942, subpart J, to 7 
CFR 1775. Based on changes in the OMB circulars affecting these 
programs and the agency's experience and review of its existing 
procedures, RUS has determined that several changes are necessary in 
order to operate the grant programs in a smooth, efficient, and 
effective manner.
    The existing 7 CFR part 1775 was designed to provide policy and 
procedures for RUS's technical assistance and training grants and solid 
waste management grants in addition to the agency's internal 
administrative actions. There has been some confusion as to the basic 
differences in the programs, especially pertaining to eligibility. To 
avoid confusion and clarify eligibility requirements, objectives, and 
purposes, separate sections have been developed for each grant program.
    Unsuccessful applicants have often requested the basis upon which 
funding decisions were made. The existing regulation contains general 
statements describing the priority criteria used in making those 
decisions. The proposed rule would provide a more detailed description 
of the project priority criteria used in determining if an applicant is 
selected or not selected for funding.
    Over the years, the number of proposals for projects to be operated 
within a single State, especially in the Solid Waste Management Grants 
program, have drastically increased. Due to the requirements of the 
existing regulations, these projects are processed and serviced from 
the National Office. Experience has shown that these projects should be 
processed and serviced from the Rural Development State Offices because 
of the proximity of the project and the familiarity of field personnel 
with grantee organizations. RUS is proposing to delegate approval 
authority to the State Directors for projects to be operated only 
within their States. Funding for these projects would be determined by 
the National Office on a competitive basis.
    The proposed rule contains a variety of procedural changes from the 
provisions of the current rule. Some of these revisions are minor or 
are merely intended to clarify existing RUS policy and procedure. Other 
revisions reflect fundamental changes to RUS' operation of the grant 
programs and are outlined below.
    For clarification purposes, RUS proposes to define the term 
``technical assistance'' as it relates to eligibility of projects under 
both grant programs.
    The current rule prohibits the use of grant funds for expenses 
incurred prior to grant approval. The proposed rule would allow 
applicants to incur grant-related expenses, however, RUS would not be 
obligated to reimburse these expenses if the grant is not approved or 
is insufficient to do so.
    To foster clarity, this proposed rule includes an expanded 
explanation of the items needed to complete an application package and 
a more detailed description of the information required for priority 
consideration. The proposed rule would also expand the priority 
criteria to include the population of associations to be served, needs 
assessment, description of how the project will be implemented, hands-
on assistance, evaluation methodology, and strategy for sustaining the 
project.
    The existing regulation requires fidelity bond coverage. The 
proposed rule would remove the requirement because coverage is not 
needed when grant funds are reimbursed for actual expenses.
    This proposed rule would require grantees to obtain written 
permission from the approval official for changes in the project or 
changes of more than 10 percent of the total budget. Permission would 
be obtained before changes are put into effect or funds spent.
    The proposed rule would allow grantees to submit financial 
statements in certain instances. The existing regulation does not offer 
any option other than submission of an audit.

List of Subjects in 7 CFR Part 1775

    Business and industry, Community development, Community facilities, 
Grant programs-housing and community

[[Page 3032]]

development, Reporting and recordkeeping requirements, Rural areas, 
Waste treatment and disposal, Water supply, Watersheds.

    For reasons set forth in the preamble, RUS proposes to amend 7 CFR 
chapter XVII of title 7 of the Code of Federal Regulations by revising 
part 1775 to read as follows:

PART 1775--TECHNICAL ASSISTANCE GRANTS

Subpart A--General Provisions
Sec.
1775.1 General.
1775.2 Definitions.
1775.3 Availability of Forms and Regulations.
1775.4 Allocation of funds.
1775.5 Limitations.
1775.6 Equal opportunity requirements.
1775.7 Environmental requirements.
1775.8 Other Federal Statutes.
1775.9 OMB control number.
Subpart B--Grant Application Processing
1775.10 Applications.
1775.11 Priority.
1775.12 Grant processing.
1775.13 Grant agreement.
1775.14-1775.17 [Reserved]
1775.18 Fund disbursement.
1775.19 Grant cancellation or major changes.
1775.20 Reporting.
1775.21 Audit or financial statements.
1775.22 [Reserved]
1775.23 Grant servicing.
1775.24 Delegation of authority.
1775.25-1775.30 [Reserved]
Subpart C--Technical Assistance and Training Grants
1775.31 Authorization.
1775.32 [Reserved]
1775.33 Objectives.
1775.34 Source of funds.
1775.35 Eligibility.
1775.36 Purpose.
1775.37 Allocation of funds.
1775.38-1775.60 [Reserved]
Subpart D--Solid Waste Management Grants
1775.61 Authorization.
1775.62 [Reserved]
1775.63 Objectives.
1775.64 [Reserved]
1775.65 Eligibility.
1775.66 Purpose.
1775.67 Allocation of funds.
1775.68 Exception authority.
1775.69-1775.99 [Reserved]

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

Subpart A--General Provisions


Sec.  1775.1  General.

    This subpart sets forth the general policies and procedures for the 
Technical Assistance and Training and the Solid Waste Management Grant 
Programs. Any processing or servicing activity conducted pursuant to 
this part involving authorized assistance to Rural Development 
employees with Water and Environmental Program responsibility, members 
of their families, known close relatives, or business or close personal 
associates, is subject to the provisions of subpart D of part 1900 of 
this title. Applicants for this assistance are required to identify any 
known relationship or association with an Agency employee.


Sec.  1775.2  Definitions.

    The following definitions apply to subparts A through D of this 
part.
    Association. An entity, including a small city or town, that is 
eligible for Rural Utilities Service (RUS) Water and Waste Disposal 
(WWD) financial assistance in accordance with 7 CFR 1780.7 (a).
    Approval official. Any individual with administrative and legal 
responsibility for Rural Development programs.
    DUNS Number. Data Universal Numbering System number obtained from 
Dun and Bradstreet and used when applying for Federal grants or 
cooperative agreements. A DUNS number may be obtained at no cost, by 
calling 1-866-705-5711.
    Grant agreement. RUS Guide 1775-1. The agreement outlines the terms 
and conditions of the grant awards and establishes the guidelines for 
administering the grant awards.
    Grantee. The entity or organization receiving financial assistance 
directly from the Agency to carry out the project or program under 
these programs.
    Low Income. Median household income (MHI) below 100 percent of the 
statewide non-metropolitan median household income (SNMHI).
    Regional. A multi-State area or any multi-jurisdictional area 
within a State.
    Rural area. Any area not in a city or town with a population in 
excess of 10,000, according to the latest decennial census of the 
United States.
    RUS. The Rural Utilities Service, an Agency of the United States 
Department of Agriculture.
    State. Any of the 50 States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Western Pacific Territories, Marshall 
Islands, Federated States of Micronesia, Republic of Palau, and the 
U.S. Virgin Islands.
    Technical Assistance. Supervision, oversight, or training by an 
organization for the practical solution of a problem or need of an 
association as defined in this section.
    Solid Waste Management. Refers to the operations, maintenance and 
the recycling of materials disposed of in landfills.


Sec.  1775.3  Availability of forms and regulations.

    Information about the forms, instructions, regulations, bulletins, 
OMB Circulars, Treasury Circulars, standards, documents and 
publications cited in this part is available from any UDSA/Rural 
Development Office or the Rural Utilities Service, United States 
Department of Agriculture, Washington, DC 20250-1500.


Sec.  1775.4  Allocation of funds.

    The National Office of the Rural Utilities Service will administer 
grant funds and will allocate them on a competitive basis.


Sec.  1775.5  Limitations.

    Grant funds may not be used to:
    (a) Duplicate current services, replace or substitute support 
normally provided by other means, such as those performed by an 
association's consultant in developing a project, including 
feasibility, design, and cost estimates.
    (b) Fund political or lobbying activities.
    (c) Purchase real estate or vehicles, improve or renovate office 
space, or repair and maintain privately owned property.
    (d) Pay the costs for construction, improvement, rehabilitation, 
modification, or operation and maintenance of water, wastewater, and 
solid waste disposal facilities.
    (e) Construct or furnish a building.
    (f) Intervene in the Federal regulatory or adjudicatory 
proceedings.
    (g) Sue the Federal Government or any other government entities.
    (h) Pay for any other costs that are not allowable under OMB 
Circular A-87, OMB Circular 110, OMB Circular 102 or OMB Circular A-
122.
    (i) Make contributions or donations to others.
    (j) Fund projects that duplicate technical assistance given to 
implement action plans under the National Forest-Dependent Rural 
Communities Economic Diversification Act of 1990 (7 U.S.C. 6613). 
Applicants cannot receive both grants made under this part and grants 
that the Forest Service makes to implement the action plans for five 
continuous years from the date of grant approval by the Forest Service.
    (1) The Forest Service helps rural communities that are dependent 
upon national forest resources diversify existing industries and 
economies. It establishes rural forestry and economic diversification 
action teams that prepare

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technical assistance plans for these rural communities to expand their 
local economies and reduce their dependence on national forest 
resources. The Forest Service provides assistance to implement the 
action plans through grants, loans, cooperative agreements, or 
contracts.
    (2) To avoid duplicate assistance, applicants must contact the 
Forest Service to find out if any geographical areas or local areas in 
a State have received grants for technical assistance to an 
economically disadvantaged community. These areas are defined as 
national forest-dependent communities under 7 U.S.C. 6612. Applicants 
will provide documentation to the Forest Service and Rural Utilities 
Service that they have contacted each agency.
    (k) To pay, an outstanding judgment obtained by the United States 
in a Federal Court (other than in the United States Tax Court), which 
has been recorded. An applicant will be ineligible to receive a loan or 
grant until the judgment is paid in full or otherwise satisfied.
    (l) Recruit applications for the Agency's water and waste loan and/
or any loan and/or grant program. Grant funds cannot be used to create 
new business; however, they can be used to assist with application 
preparation.


Sec.  1775.6  Equal opportunity requirements.

    The policies and regulations contained in subpart E of part 1901 of 
this title apply to grants made under this part.


Sec.  1775.7  Environmental requirements.

    The policies and regulations contained in part 1794 of this title 
apply to grants made for the purposes in Sec. Sec.  1775.36 and 1775.66 
of this part.


Sec.  1775.8  Other Federal Statues.

    Other Federal statues and regulations are applicable to grants 
awarded under this part. These include but are not limited to:
    (a) 7 CFR Part 1, Subpart A--USDA implementation of Freedom of 
Information Act.
    (b) 7 CFR Part 3--USDA implementation of OMB Circular No. A-129 
regarding debt collection.
    (c) 7 CFR Part 15, Subpart A--USDA implementation of Title VI of 
the Civil Rights Act of 1964, as amended.
    (d) 7 CFR Part 1794, RUS Implementation of the National 
Environmental Policy Act.
    (e) 7 CFR Part 1901, Subpart E--Civil Rights Compliance 
Requirements.
    (f) 7 CFR Part 3016--USDA Implementation of OMB Circular Nos. A-102 
and A-97, Uniform Administrative Requirements for Grants and 
Cooperative Agreements to State and Local Governments.
    (g) 7 CFR Part 3017, as amended--Government-wide Debarment and 
Suspension (Non-procurement); Government-wide Requirements for Drug-Fee 
Workplace (Grants), implementing Executive Order 12549 on debarment and 
suspension and the Drug-Free Workplace Act of 1988 (41 U.S.C. 701).
    (h) 7 CFR Part 3018--Restrictions on Lobbying, prohibiting the use 
of appropriated funds to influence Congress or a Federal agency in 
connection with the making of any Federal grant and other Federal 
contracting and financial transactions.
    (i) 7 CFR Part 3019--USDA implementation of OMB Circular A-110, 
Uniform Administrative Requirements for Grants and Agreements With 
Institutions of Higher Education, Hospitals, and Other Nonprofit 
Organizations.
    (j) 7 CFR Part 3051--USDA implementation of OMB Circular No. A-133 
regarding audits of institutions of higher education and other 
nonprofit institutions.
    (k) 29 U.S.C. 794, section 504--Rehabilitation Act of 1973, and 7 
CFR part 15B (USDA implementation of statute), prohibiting 
discrimination based upon physical or mental handicap in Federally 
assisted programs.


Sec.  1775.9  OMB control number.

    The information collection requirements contained in this part have 
been approved by the Office of Management and Budget and have been 
assigned OMB control number 0572-0112.

Subpart B--Grant Application Processing


Sec.  1775.10  Applications.

    (a) Filing period. Applications may be filed on or after October 1 
and must be received by close of business or postmarked by midnight 
December 31. If an application is received either before October 1 or 
after December 31, the receiving office will return it to the 
applicant.
    (b) Where to file.
    (1) An applicant will apply to the appropriate State Office of 
Rural Development if the project will serve a single State.
    (2) An applicant will apply to the National Office if the project 
will serve multiple States. The application must be submitted to the 
following address: Assistant Administrator, Water and Environmental 
Programs, Rural Utilities Service, Washington, DC 20250-1570.
    (c) Application requirements. To file an application, an 
organization must provide their DUNS number. An organization may obtain 
a DUNS number from Dun and Bradstreet by calling (1-866-705-5711). To 
file a complete application, the following information should be 
submitted:
    (1) Standard Form 424, ``Application for Federal Assistance (For 
Non-Construction).''
    (2) Standard Form 424A & B, ``Budget Information-Non-Construction 
Programs.''
    (3) Form AD-1047, ``Certification Regarding Debarment, Suspension, 
and Other Responsibility Matters--Primary Covered Transaction.''
    (4) Form AD 1049, ``Certification Regarding Drug-Free Workplace 
Requirements (Grants) Alternative I--For Grantees Other Than 
Individuals.''
    (5) Form AD 1048, ``Certification Regarding Debarment.''
    (6) Attachment regarding assistance provided to Rural Development 
Employees as required by RD Instruction 1900-D.
    (7) Form RD 400-4, ``Assurance Agreement.''
    (8) Form RD 400-1, ``Equal Opportunity Agreement.''
    (9) Indirect Cost Rate Agreement (if applicable, applicant must 
include approved cost agreement rate schedule).
    (10) Statement of Compliance for Title VI of the Civil Rights Act 
of 1964.
    (11) SF LLL, ``Disclosure of Lobbying Activities'' (include only if 
grant is over $100,000).
    (12) Certification regarding Forest Service grant.
    (d) Supporting information. All applications shall be accompanied 
by:
    (1) Evidence of applicant's legal existence and authority in the 
form of:
    (i) Certified copies of current authorizing and organizational 
documents for new applicants or former grantees where changes were made 
since the last legal opinion was obtained in conjunction with receipt 
of an RUS grant, or, certification that no changes have been made in 
authorizing or organizing documents since receipt of last RUS grant by 
applicant.
    (ii) Current annual corporation report, Certificate of Good 
Standing, or statement they are not required.
    (iii) For public nonprofits, Certificate of Continued Status from 
local attorney (if applicable).
    (iv) Certified list of directors/officers with their respective 
terms.
    (2) Evidence of tax exempt status from the Internal Revenue Service 
(IRS), if applicable.
    (3) Narrative of applicant's experience in providing services 
similar to those

[[Page 3034]]

proposed. Provide brief description of successfully completed projects 
including the need that was identified and objectives accomplished.
    (4) Latest financial information to show the applicant's financial 
capacity to carry out the proposed work. A current audit report is 
preferred, however applicants can submit a balance sheet and an income 
statement in lieu of an audit report.
    (5) List of proposed services to be provided.
    (6) Estimated breakdown of costs (direct and indirect) including 
those to be funded by grantee as well as other sources. Sufficient 
detail should be provided to permit the approval official to determine 
reasonableness, applicability, and allowability.
    (7) Evidence that a Financial Management System is in place or 
proposed.
    (8) Documentation on each of the priority ranking criteria listed 
in Sec.  1775.11 of this part as follows:
    (i) List of the associations to be served and the State or States 
where assistance will be provided. Identify associations by name, or 
other characteristics such as size, income, location, and provide MHI 
and population.
    (ii) Description of the type of technical assistance and/or 
training to be provided and the tasks to be contracted.
    (iii) Description of how the project will be evaluated and provide 
clearly stated goals and the method proposed to measure the results 
that will be obtained.
    (iv) Documentation of need for proposed service. Provide detailed 
explanation of how the proposed services differ from other similar 
services being provided in the same area.
    (v) Personnel on staff or to be contracted to provide the service 
and their experience with similar projects.
    (vi) Statement indicating the number of months it takes to complete 
the project or service.
    (vii) Documentation on cost effectiveness of project. Provide the 
cost per association to be served or proposed cost of personnel to 
provide assistance.
    (viii) Other factors for consideration, such as emergency 
situation, training need identified, health or safety problems, 
geographic distribution, Rural Development Office recommendations, etc.


Sec.  1775.11  Priority.

    The application and supporting information will be used to 
determine the applicant's priority for available funds. All 
applications will be reviewed and scored for funding priority in 
accordance with RUS Guide 1775-2. Points will be given only for factors 
that are well documented in the application package and, in the opinion 
of the Agency, meet the objective outlined under each factor. The 
following is a listing of the criteria that will be used to select the 
applications that meet the objectives of the technical assistance 
program.
    (a) Projects proposing to give priority for available services to 
rural communities having a population less than 5,500 and/or below 
2,500.
    (b) Projects proposing to give priority for available services to 
communities that are 80 percent of or below the SNMHI.
    (c) Projects that will provide assistance in a multi-State area.
    (d) Points will be awarded for work plans that clearly describe the 
goals and objectives of the project, how they will be accomplished in 
targeted communities, and what measurement of accomplishment will be 
used.
    (e) Projects containing needs assessment (i.e. actual issue or 
problem being addressed) clearly defined and supported by data.
    (f ) Projects containing evaluation methods that are specific to 
the activity, clearly defined, measurable, and with projected outcomes.
    (g) Applicants proposing to use at least 75 percent of the total 
grant amount for their own staff, or the staff of an affiliated 
organization to provide services for a project instead of contracting 
with an outside organization for the services.
    (h) Projects providing technical assistance/training that 
accomplish the objective within a 12-month or less timeframe.
    (i) Projects primarily providing ``hands on'' technical assistance 
and training, i.e., on-site assistance as opposed to preparation and 
distribution of printed material, to communities with existing water 
and waste systems which are experiencing operation and maintenance or 
management problems.
    (j) Cash or in kind support of project from non-federal sources.
    (k) Ability to demonstrate sustainability of project without 
Federal financial support.


Sec.  1775.12  Grant processing.

    (a) Single State applications.
    (1) Grant applications submitted at the State level will receive a 
letter acknowledging receipt and confirmation that all information 
required for a full application was included in the packet. The State 
will notify the applicant of missing information. The applicant will 
have 14 business days to respond.
    (2) The State Office will review applications for eligibility. 
Those applicants that are deemed ineligible will be notified. 
Applicants deemed eligible will be forwarded to the National Office for 
funding consideration.
    (3) The National Office will review all applications received from 
State Offices. Applications will compete on a priority basis and will 
be scored and ranked. The applications receiving the highest scores and 
subject to the availability of funds will be notified by the National 
Office that they have been selected for funding. The National Office 
will send applications to the State Office for final processing.
    (4) Applicants not selected for funding due to low priority rating 
shall be notified by the State Office.
    (b) National and multi-State applications.
    (1) National and multi-State applications submitted to the National 
Office will receive a letter acknowledging receipt and confirmation 
that all information required for a full application was included in 
the packet. The National Office shall notify the applicant of missing 
information. The applicant will have 14 business days to respond.
    (2) The National Office will review applications for eligibility. 
Those applications that are deemed ineligible will be notified. 
Applications deemed eligible will be reviewed and given a rating score. 
Applications receiving the highest scores will be grouped with those 
received from State Offices for funding consideration.
    (3) The National Office will review all applications received. 
Applications will compete on a priority basis and will be scored and 
ranked. The applications receiving the highest scores and subject to 
the availability of funds will be notified by the National Office that 
they have been selected for funding. The National Office shall conduct 
final processing of multi-State and national applications.
    (4) Multi-State and National applicants not selected for funding 
due to low priority rating will be notified by the National Office.
    (c) Low priority applications. Applications that cannot be funded 
in the fiscal year received will not be retained for consideration in 
the following fiscal year and will be handled as outlined in paragraph 
(a)(4) or (b)(4) of this section.


Sec.  1775.13  Grant agreement.

    Applicants selected for funding will complete a grant agreement, 
RUS Guide

[[Page 3035]]

1775-1, which outlines the terms and conditions of the grant award.


Sec. Sec.  1775.14--1775.17  [Reserved]


Sec.  1775.18  Fund disbursement.

    Grantees will be reimbursed as follows:
    (a) SF-270, ``Request for Advance or Reimbursement,'' will be 
completed by the grantee and submitted to either the State or National 
Office not more frequently than monthly.
    (b) Upon receipt of a properly completed SF-270, the funds will be 
requested through the field office terminal system. Ordinarily, payment 
will be made within 30 days after receipt of a proper request for 
reimbursement.
    (c) Grantees are encouraged to use women- and minority-owned banks 
(a bank which is owned at least 50 percent by women or minority group 
members) for the deposit and disbursement of funds.


Sec.  1775.19  Grant cancellation or major changes.

    Any change in the scope of the project, budget adjustments of more 
than 10 percent of the total budget, or any other significant change in 
the project must be reported to and approved by the approval official 
by written amendment to RUS Guide 1775-1. Any change not approved may 
be cause for termination of the grant.


Sec.  1775.20  Reporting.

    (a) Grantees shall constantly monitor performance to ensure that 
time schedules are being met, projected work by time periods is being 
accomplished, and other performance objectives are being achieved.
    (b) SF-269, ``Financial Status Report (short form),'' and a project 
performance activity report will be required of all grantees on a 
quarterly basis, due 30 days after the end of each quarter.
    (c) A final project performance report will be required with the 
last SF-269 due 90 days after the end of the last quarter in which the 
project is completed. The final report may serve as the last quarterly 
report.
    (d) All multi-State grantees are to submit an original of each 
report to the National Office. Grantees serving only one State are to 
submit an original of each report to the State Office. The project 
performance reports should detail, preferably in a narrative format, 
activities that have transpired for the specific time period and shall 
include, but not be limited to, the following:
    (1) A comparison of actual accomplishments to the objectives 
established for that period (i.e. number of meetings held, number of 
people contacted, results of activity);
    (2) Analysis of challenges or setbacks that occurred during the 
grant period;
    (3) Copies of fliers, news releases, news articles, announcements 
and other information used to promote services or projects;
    (4) Problems, delays, or adverse conditions which will affect 
attainment of overall project objectives, prevent meeting time 
schedules or objectives, or preclude the attainment of particular 
project work elements during established time periods. This disclosure 
shall be accompanied by a statement of the action taken or planned to 
resolve the situation; and
    (5) Activities planned for the next reporting period.


Sec.  1775.21  Audit or financial statements.

    The grantee will provide an audit report or financial statements as 
follows:
    (a) Grantees expending $500,000 or more Federal funds per fiscal 
year will submit an audit conducted in accordance with OMB Circular A-
133. The audit will be submitted within 9 months after the grantee's 
fiscal year. Additional audits may be required if the project period 
covers more than one fiscal year.
    (b) Grantees expending less than $500,000 will provide annual 
financial statements covering the grant period, consisting of the 
organization's statement of income and expense and balance sheet signed 
by an appropriate official of the organization. Financial statements 
will be submitted within 90 days after the grantee's fiscal year.


Sec.  1775.22  [Reserved]


Sec.  1775.23  Grant servicing.

    Grants will be serviced in accordance with RUS Guide 1775-1 and 
subpart E of part 1951 of this title. When grants are terminated for 
cause, 7 CFR Part 11 will be followed.


Sec.  1775.24  Delegation of authority.

    The authority under this part is re-delegated to the Assistant 
Administrator, Water and Environmental Programs, except for the 
discretionary authority contained in Sec.  1775.34 of this part. The 
Assistant Administrator, Water and Environmental Programs may re-
delegate the authority in this part.


Sec. Sec.  1775.25-1775.30  [Reserved]

Subpart C--Technical Assistance and Training Grants


Sec.  1775.31  Authorization.

    This subpart sets forth additional policies and procedures for 
making Technical Assistance and Training (TAT) grants authorized under 
Section 306(a)(14)(A) of the Consolidated Farm and Rural Development 
Act (CONACT) (7 U.S.C. 1926(a)), as amended.


Sec.  1775.32  [Reserved]


Sec.  1775.33  Objectives.

    The objectives of the program are to:
    (a) Identify and evaluate solutions to water and waste problems in 
rural areas.
    (b) Assist applicants in preparing applications for water and waste 
disposal loans/grants.
    (c) Assist associations in improving operation and maintenance of 
existing water and waste facilities in rural areas.


Sec.  1775.34  Source of funds.

    Grants will be made from not less than 1 percent or, at the 
discretion of the Agency Administrator, not more than 3 percent of any 
appropriations for grants under Section 306(a)(2) of the CONACT (7 
U.S.C. 1926(a)). Funds not obligated by September 1 of each fiscal year 
will be used for water and waste disposal grants made in accordance 
with part 1780 of this chapter.


Sec.  1775.35  Eligibility.

    (a) Entities eligible for grants must be private nonprofit 
organizations with tax exempt status, designated by the Internal 
Revenue Service. A nonprofit organization is defined as any 
corporation, trust, association, cooperative, or other organization 
that:
    (1) Is operated primarily for scientific, education, service, 
charitable, or similar purposes in the public interest.
    (2) Is not organized primarily for profit.
    (3) Uses its net proceeds to maintain, improve, and/or expand its 
operations.
    (b) Entities must be legally established and located within a state 
as defined in Sec.  1775.2.
    (c) Organizations must be incorporated by December 31 of the year 
the application period occurs to be eligible for funds.
    (d) Private businesses, Federal agencies, public bodies, and 
individuals are ineligible for these grants.
    (e) Applicants must also have the proven ability, background, 
experience, (as evidenced by the organization's satisfactory completion 
of project(s) similar to those proposed;) legal authority, and actual 
capacity to provide technical assistance and/or training on a regional 
basis to associations as provided in Sec.  1775.33 of this subpart. To 
meet the requirement of actual capacity, an applicant must either:
    (1) Have the necessary resources to provide technical assistance 
and/or

[[Page 3036]]

training to associations in rural areas through its staff, or
    (2) Be assisted by an affiliate or member organization which has 
such background and experience and which agrees, in writing, that it 
will provide the assistance, or
    (3) Contract with a nonaffiliated organization for not more than 49 
percent of the grant to provide the proposed assistance.


Sec.  1775.36  Purpose.

    Grants may be made to organizations as defined in Sec.  1775.35 of 
this subpart to enable them to assist associations to:
    (a) Identify and evaluate solutions to water problems of 
associations in rural areas relating to source, storage, treatment, 
and/or distribution.
    (b) Identify and evaluate solutions to waste problems of 
associations in rural areas relating to collection, treatment, and/or 
disposal.
    (c) Prepare water and/or waste disposal loan/grant applications.
    (d) Provide technical assistance/training to association personnel 
that will improve the management, operation, and maintenance of water 
and waste facilities.
    (e) Pay the expenses associated with providing the technical 
assistance and/or training authorized in paragraphs (a) through (d) of 
this section.


Sec.  1775.37  Allocation of funds.

    At least 10 percent of available funds will be used for funding 
single State projects based on the priority criteria.


Sec. Sec.  1775.38-1775.60  [Reserved]

Subpart D--Solid Waste Management Grants


Sec.  1775.61  Authorization.

    This subpart sets forth the policies and procedures for making 
Solid Waste Management (SWM) grants authorized under Section 310B of 
the Consolidated Farm and Rural Development Act (CONACT) (7 U.S.C. 
1926(a)), as amended.


Sec.  1775.62  [Reserved]


Sec.  1775.63  Objectives.

    The objectives of the program are to:
    (a) Reduce or eliminate pollution of water resources, and
    (b) Improve planning and management of solid waste sites.


Sec.  1775.64  [Reserved]


Sec.  1775.65  Eligibility.

    (a) Entities eligible for grants must be either:
    (1) Private nonprofit organizations with tax exempt status 
designated by the Internal Revenue Service. A nonprofit organization is 
defined as any corporation, trust, association, cooperative, or other 
organization that:
    (i) Is operated primarily for scientific, education, service, 
charitable, or similar purposes in the public interest.
    (ii) Is not organized primarily for profit.
    (iii) Uses its net proceeds to maintain, improve, and/or expand its 
operations.
    (2) Public bodies.
    (3) Federally acknowledged or State-recognized Native American 
tribe or group.
    (4) Academic institutions.
    (b) Entities must be legally established and located within a state 
as defined in Sec.  1775.2.
    (c) Organizations must be incorporated by December 31 of the year 
the application period occurs to be eligible for funds.
    (d) Private businesses, Federal agencies, and individuals are 
ineligible for these grants.
    (e) Applicants must also have the proven ability; background; 
experience, as evidenced by the organization's satisfactory completion 
of project(s) similar to those proposed; legal authority; and actual 
capacity to provide technical assistance and/or training on a regional 
basis to associations as provided in Sec.  1775.63 of this subpart. To 
meet the requirement of actual capacity, an applicant must either:
    (1) Have the necessary resources to provide technical assistance 
and/or training to associations in rural areas through its staff, or
    (2) Be assisted by an affiliate or member organization which has 
such background and experience and which agrees, in writing, that it 
will provide the assistance, or
    (3) Contract with a nonaffiliated organization for not more than 49 
percent of the grant to provide the proposed assistance.


Sec.  1775.66  Purpose.

    Grants may be made to organizations as defined in Sec.  1775.65 to 
enable them to assist associations to:
    (a) Provide technical assistance and/or training to reduce the 
solid waste stream through reduction, recycling, and reuse.
    (b) Provide training to enhance operator skills in maintaining and 
operating active landfills.
    (c) Provide technical assistance and/or training for operators of 
landfills which are closed or will be closed in the near future with 
the development/implementation of closure plans, future land use plans, 
safety and maintenance planning, and closure scheduling within permit 
requirements.
    (d) Evaluate current landfill conditions to determine the threats 
to water resources.
    (e) Pay the expenses associated with providing the technical 
assistance and/or training authorized in paragraphs (a) through (d) of 
this section.


Sec.  1775.67  Allocation of funds.

    The maximum amount for a single applicant for a Solid Waste 
Management project will be 25 percent of available grant funds.


Sec.  1775.68  Exception authority

    The Administrator may, in individual cases, make an exception to 
any requirement or provision of this part which is not inconsistent 
with the authorizing statue or other applicable law and is determined 
to be in the Government's interest.


Sec. Sec.  1775.69-1775.99  [Reserved]

    Dated: December 29, 2003.
Hilda Gay Legg,
Administrator, Rural Utilities Service.
[FR Doc. 04-1274 Filed 1-21-04; 8:45 am]
BILLING CODE 3410-15-P