[Federal Register Volume 69, Number 29 (Thursday, February 12, 2004)]
[Notices]
[Pages 6937-6938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3113]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Grant Program To Establish a Revolving Fund for Financing Water 
and Wastewater Projects

AGENCY: Rural Utilities Service (RUS), USDA.

ACTION: Notice of inquiry.

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SUMMARY: The Rural Utilities Service is seeking comments from the 
public in its efforts to implement a new program, ``Revolving Funds for 
Financing Water and Wastewater Projects'' as authorized by the 2002 
Farm Bill. The purpose of the program is to provide grants to qualified 
private, non-profit entities to capitalize revolving funds for the 
purpose of providing loans to eligible entities for pre-development 
costs or small capital improvement costs. RUS is issuing this notice of 
inquiry to assess the current interest of eligible entities in pursuing 
applications for grant funds with the purpose of establishing a 
revolving loan fund taking into consideration the following:
    (1) The ability to accomplish the provisions of the 2002 Farm Bill 
section utilizing current appropriations;
    (2) The level of interest of ultimate recipient for the loan funds.

DATES: Interested parties must submit written comments on or before 
March 15, 2004.

ADDRESSES: Submit written comments to Richard C. Annan, Acting 
Director, Program Development and Regulatory Analysis, Rural Utilities 
Service, United States Department of Agriculture, 1400 Independence 
Avenue, SW., stop 1522, Washington, DC 20250-1570. RUS requires, in 
hard copy, a signed original and 3 copies of all comments (7 CFR 
1700.4). Comments will be available for public inspection during normal 
business hours (7 CFR part 1).

FOR FURTHER INFORMATION CONTACT: Susan Loney, Loan Specialist, Water 
and Environmental Programs, Rural Utilities Service, United States 
Department of Agriculture, 1400 Independence Avenue, SW., stop 1570, 
Washington, DC 20250-1570. Phone: 202-720-9633. Fax: 202-720-0718. E-
mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    On May 13, 2002, the Farm Security and Rural Investment Act of 2002 
(Farm Bill) was signed into law as Pub. L. 107-171. The Consolidated 
Farm and Rural Development Act was amended by section 6002 of the Farm 
Bill, by adding a grant program to establish a revolving loan fund. The 
Secretary may make grants to qualified, private, non-profit entities. 
The grant recipients will use the grant funds to establish a revolving 
loan fund. The loans will be made to eligible entities to finance 
predevelopment costs of water or wastewater projects, or short-term 
small capital projects not part of the regular operation and 
maintenance of current water and wastewater systems.
    Eligible entities for the revolving loan fund will be the same 
entities eligible to obtain loans, loan guarantees, or grants from the 
Rural Utilities Service program. The amount of financing to an eligible 
entity shall not exceed $100,000 and shall be repaid in a term not to 
exceed 10 years. The rate shall be determined in the approved grant 
workplan.
    The Act stipulates that, among other provisions, the Administrator 
of RUS shall prescribe regulations to implement the Act and shall issue 
and otherwise administer the grant program. No funds were appropriated 
for the Act for fiscal year (FY) 2002. The appropriations bill for FY 
2004 includes $500,000 for the grant program; therefore we are 
proceeding with the development of a regulation in order to implement 
the program.
    The section also requires the Administrator of RUS to prescribe 
regulations to implement the provisions. We will be relying heavily on 
existing regulations within the Rural Development Program in order to 
develop regulations for this new program. The main referenced 
regulations will be the following:
    (1) Rural Economic Development Loan & Grant Program (REDLG), 7 CFR 
1703 Subpart B; http://www.gpoaccess.gov/cfr/retrieve.html
    (2) Intermediary Lending Program (IRP), RD Instruction 4274-D 
http://rdinit.usda.gov/regs/regs_toc.html and
    (3) Rural Housing regulation for the Housing Preservation Grant 
Program (HPG), RD Instruction 1944, Subpart N. http://rdinit.usda.gov/regs/regs_toc.html
    RUS encourages interested parties to review the Act in its entirety 
on the USDA Web site at http://www.usda.gov/farmbill/.

Request for Comment

    RUS is requesting comment and discussion on the following topics:
    (1) RUS is seeking comments on the current lending experience of 
potential grant applicants;
    (2) RUS is also interested in comments regarding a proposed minimum 
20 percent matching funds contribution by the grant recipient; in-kind 
contributions will not be accepted as part of the 20 percent minimum;
    (3) RUS is interested in comments regarding the percentage of the 
grant funds that may be used for administrative or servicing fees;
    (4) RUS is seeking comments on the issue of a maximum of 75 percent 
of the project costs the revolving loan should pay, with the other 25 
percent of project costs paid for from non-Federal sources;
    (5) RUS is interested in comments regarding the use of the Central 
Servicing Center for the revolving loans, including processing loan 
payments, reviewing financial statements, and other responsibilities 
involved in loan servicing, and
    (6) RUS is also seeking comments on the definition of eligible and 
ineligible projects for the revolving loan funds.
    RUS invites interested parties including, but not limited to, 
financial and lending institutions, non-profit organizations, consumer 
groups, community organizations, and individuals to comment. Written 
comments should provide RUS any information or analysis believed to be 
relevant to the issues discussed in this Notice and to the 
implementation of the revolving loan program.


[[Page 6938]]


    Dated: January 8, 2004.
Hilda Gay Legg,
Administrator, Rural Utilities Service.
[FR Doc. 04-3113 Filed 2-11-04; 8:45 am]
BILLING CODE 3410-15-P