[Federal Register Volume 69, Number 152 (Monday, August 9, 2004)]
[Proposed Rules]
[Pages 48174-48177]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18087]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Parts 1775, 1777, 1778, and 1780

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service

Farm Service Agency

7 CFR Part 1942

Rural Housing Service

7 CFR Part 3570

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Part 4274

RIN 0572-AB96


Definition Clarification of State Nonmetropolitan Median 
Household Income (SNMHI)

AGENCY: Rural Housing Service, Rural Business-Cooperative Service, 
Rural Utilities Service, and Farm Service Agency, USDA.

ACTION: Proposed rule.

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SUMMARY: The Rural Housing Service (RHS), Rural Business-Cooperative 
Service (RBS), and the Rural Utilities Service (RUS), agencies 
delivering the United States Department of Agriculture's Rural 
Development Housing, Business, and Utilities Programs, are proposing to 
amend their regulations to reflect the clarification of the definition 
of SNMHI. The definition will in essence state ``the median

[[Page 48175]]

household income of the state's non-metropolitan counties and portions 
of metropolitan counties outside of cities, towns or places of 50,000 
or more population.'' This minor modification will enable Rural 
Development to serve more communities across rural America. The loan 
and grant eligibility or priority scoring will be positively impacted 
for Rural Development Housing, Business, and Utilities Programs.

DATES: Comments must be received by RUS or bear a postmark or 
equivalent, no later than September 8, 2004.

ADDRESSES: You may submit comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
     Agency Web site: http://www.usda.gov/rus/index2/Comments.htm. Follow the instructions for submitting comments.
     E-mail: [email protected]. Include in the subject line 
of the message ``Definition Clarification of State Non-metropolitan 
Median Household Income (SNMHI).''
     Mail: Addressed to Richard Annan, Acting Director, Program 
Development and Regulatory Analysis, Rural Utilities Service, United 
States Department of Agriculture, 1400 Independence Avenue, SW., STOP 
1522, Washington, DC 20250-1522.
     Hand Delivery/Courier: Addressed to Richard Annan, Acting 
Director, Program Development and Regulatory Analysis, Rural Utilities 
Service, United States Department of Agriculture, 1400 Independence 
Avenue, SW., Room 5168-S, Washington, DC 20250-1522.
Instructions: All submissions received must include that agency name 
and the subject heading ``Definition Clarification of State Non-
metropolitan Median Household Income (SNMHI).'' All comments received 
must identify the name of the individual (and the name of the entity, 
if applicable) who is submitting the comment. All comments received 
will be posted without change to http://www.usda.gov/rus/index2/Comments.htm, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Linda Scott, 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) 720-9639. E-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    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 (OMB).

Catalog of Federal Domestic Assistance

    The programs described by this rule are listed in the Catalog of 
Federal Domestic Assistance Programs under numbers 10.760--Water and 
Waste Disposal Systems for Rural Communities; 10.761--Technical 
Assistance and Training Grants; 10.762--Solid Waste Management Grants; 
10.763--Emergency Community Water Assistance Grants; 10.766--Community 
Facilities Loans and Grants; 10.767--Intermediary Relending Program; 
and 10.770--Water and Waste Disposal Loans and Grants (Section 306C). 
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.

Executive Order 12372

    The programs described by this rule that are subject to the 
requirements of Executive Order 12372, ``Intergovernmental Review of 
Federal Programs,'' as implemented under USDA's regulations at 7 CFR 
part 3015, are 10.760--Water and Waste Disposal Systems for Rural 
Communities; 10.763--Emergency Community Water Assistance Grants; 
10.766--Community Facilities Loans and Grants; 10.767--Intermediary 
Relending Program; and 10.770--Water and Waste Disposal Loans and 
Grants (Section 306C).

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. RUS has determined that this 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

    This rule has been reviewed with regard to the requirements of the 
Regulatory Flexibility Act (5 U.S.C. 601-612). The undersigned has 
determined and certified by signature of this document that this rule 
will not have a significant economic impact on a substantial number of 
small entities since this rulemaking action does not involve a new or 
expanded program.

Information Collection and Recordkeeping Requirements

    This rule contains no new reporting or recordkeeping burdens under 
OMB control numbers 0572-0109, 0572-0110, 0572-0112, 0572-0121, 0575- 
that would require approval under the Paperwork Reduction Act of 1995 
(44 U.S.C. chapter 35).

National Environmental Policy Act Certification

    The Administrator of RUS has determined that this 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.

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 section 202 and 205 of the 
Unfunded Mandates Reform Act of 1995.

Executive Order 13132, Federalism

    The policies contained in this rule do not have any substantial 
direct effect on states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government. Nor does this 
rule impose substantial direct compliance costs on state and local 
governments. Therefore, consultation with states is not required.

Background

    Pursuant to 44 U.S.C. 3504(e)(3) and 31 U.S.C. 1104(d) and 
Executive Order No. 10253 (June 11, 1951), the Office of Management and 
Budget (OMB) defines Metropolitan Statistical Areas, Micropolitan 
Statistical Areas, Combined Statistical Areas, and New England City and 
Town Areas for use in Federal statistical activities. Once-a-decade OMB 
performs a comprehensive review of statistical area standards and 
definitions and publishes a list which includes counties where 
Metropolitan Statistical Areas are located. The entire county in which 
a metropolitan statistical area is located is determined

[[Page 48176]]

by OMB to be a metropolitan area, and, therefore, is not eligible for 
Rural Development assistance. (OMB issues periodic updates of the areas 
between decennial censuses based on Census Bureau data.) Because 
pockets of rural areas in need of Rural Development's financial 
assistance are located within these counties, Rural Development is 
proposing to define State Nonmetropolitan Median Household Income to 
include the portions of such metropolitan counties outside of cities, 
towns or places of 50,000 or more population.
    The purpose of the proposed rule, with respect to the Water and 
Environmental Programs (WEP), is to create a standard definition of 
SNMHI to be used in priority scoring for WEP Technical Assistance and 
Training Grants, Section 306 Water and Waste Disposal Loans and Grants, 
and Emergency and Imminent Community Water Assistance Grants, and for 
loan and grant eligibility determinations for Water and Waste Loans and 
Grants. Standardizing the definition of SNMHI will allow for more 
efficient administration of these WEP loan and grant programs 
consistent with the purposes of the Consolidated Farm and Rural 
Development Act (codified at 7 U.S.C. 1921 et seq.).
    The proposed rule also amends the Intermediary Relending Program 
(IRP) and Community Facilities (CF) loan and grant regulations by 
adding a definition of SNMHI. The term is actually used to help 
determine loan funding priority for the IRP and CF programs. The 
proposed change, for the IRP and CF programs, merely recognizes a test 
which is already being used and whose parameters have not been changed 
by inclusion of the definition.
    The 30-day comment period for this proposed regulation is needed to 
make an equitable adjustment in eligibility and priority criteria to 
coincide with the beginning of Fiscal Year (FY) 2005. When the Census 
Bureau released the new median household income data based on the 2000 
census, a number of rural communities across the country became 
ineligible for grants and low interest loans. These communities' median 
household income increased at a much faster rate than the indicator 
rate used by the agency, giving the appearance that the communities 
were relatively wealthier when compared to the state's median household 
income. However, the agency's median household income indicator was 
faulty since it did not account for a change in the definition of 
metropolitan counties from the 1990 census to the 2000 census. Based 
upon a review of applications on hand and using the 2000 census median 
household income data for non-metropolitan counties, there was 
approximately a 25 percent reduction in the number of communities 
eligible for a grant and a 50 percent reduction in the number of 
communities eligible for a reduced interest rate. An Administrative 
Notice is in effect until September 30, 2004, enabling Rural 
Development program areas to continue using the 1990 census data for 
eligibility and scoring purposes for these communities with 
applications on hand as of October 1, 2003, provided that the loan and/
or grant are funded before the end of FY 2004. After that date, all 
applications must be processed using the 2000 census data. By having 
this definition modification in effect as of October 1, 2004, the 
negative impact to numerous rural communities will be greatly reduced, 
and they will continue to be eligible for Rural Development financial 
assistance.

List of Subjects

7 CFR Part 1775

    Business and industry; Community development; Community facilities; 
Grant program--housing and community development; Reporting and 
recordkeeping requirements; Rural areas; Waste treatment and disposal; 
Water supply; Watersheds.

7 CFR Part 1777

    Community development; Community facilities; Grant programs--
housing and community development; Loan programs--housing and community 
development; Reporting and recordkeeping requirements; Rural areas; 
Waste treatment and disposal; Water supply; Watersheds.

7 CFR Part 1778

    Community development; Community facilities; Grant programs--
housing and community development; Reporting and recordkeeping 
requirements; Rural areas; Waste treatment and disposal; Water supply; 
Watersheds.

7 CFR Part 1780

    Community development; Community facilities; Grant programs--
housing and community development; Loan programs--housing and community 
development; Reporting and recordkeeping requirements; Rural areas; 
Waste treatment and disposal; Water supply; Watersheds.

7 CFR Part 1942

    Community development; Community facilities; Loan program--Housing 
and community development; Loan security; Reporting and recordkeeping 
requirements; Rural Areas; Waste treatment and disposal--Domestic; 
Water supply--Domestic.

7 CFR Part 3570

    Accounting; Administrative practice and procedure; Conflicts of 
interests; Environmental impact statements; Foreclosure; Fair Housing; 
Grant programs--Housing and community development; Loan programs--
Housing and community development; Rural areas; Subsidies.

7 CFR Part 4274

    Community development; Economic development; Loan programs--
business; Reporting and recordkeeping requirements; Rural areas.
    For reasons set forth in the preamble, RUS proposes to amend 7 CFR 
chapters XVII, XVIII, and XVIV as set forth below:

CHAPTER XVII--Rural Utilities Service, Department of Agriculture

PART 1775--TECHNICAL ASSISTANCE AND TRAINING GRANTS

    1. The authority citation for part 1775 continues to read as 
follows:

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

    2. Amend Sec.  1775.4 by adding a definition for ``Statewide 
Nonmetropolitan Median Household Income'' in alphabetical order to read 
as follows:


Sec.  1775.4  Definitions.

* * * * *
    Statewide Nonmetropolitan Median Household Income (SNMHI). Median 
household income of the State's nonmetropolitan counties and portions 
of metropolitan counties outside of cities, towns or places of 50,000 
or more population.

PART 1777--SECTION 306C WWD LOANS AND GRANTS

    3. The authority citation for part 1777 continues to read as 
follows:

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

    4. Amend Sec.  1777.4 by adding a definition for ``Statewide 
Nonmetropolitan Median Household Income'' in alphabetical order to read 
as follows:


Sec.  1777.4  Definitions.

* * * * *
    Statewide Nonmetropolitan Median Household Income (SNMHI). Median 
household income of the State's nonmetropolitan counties and portions

[[Page 48177]]

of metropolitan counties outside of cities, towns or places of 50,000 
or more population.

PART 1778--EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANTS

    5. The authority citation for part 1778 continues to read as 
follows:

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

    6. Amend Sec.  1778.4 by adding a definition for ``Statewide 
Nonmetropolitan Median Household Income'' in alphabetical order to read 
as follows:


Sec.  1778.4  Definitions.

* * * * *
    Statewide Nonmetropolitan Median Household Income (SNMHI). Median 
household income of the State's nonmetropolitan counties and portions 
of metropolitan counties outside of cities, towns or places of 50,000 
or more population.

PART 1780--WATER AND WASTE LOANS AND GRANTS

    7. The authority citation for part 1780 continues to read as 
follows:

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

Subpart A--General Policies and Requirements

    8. Amend Sec.  1780.3(a) by revising the definition for ``Statewide 
Nonmetropolitan Median Household Income'' to read as follows:


Sec.  1780.3  Definitions and grammatical rules of construction.

    (a) * * *
    Statewide nonmetropolitan median household income means the median 
household income of the State's nonmetropolitan counties and portions 
of metropolitan counties outside of cities, towns or places of 50,000 
or more population.
* * * * *

CHAPTER XVIII--Rural Housing Service, Rural Business--Cooperative 
Service, and Farm Service Agency, Department of Agriculture

PART 1942--ASSOCIATIONS

    9. The authority citation for part 1942 continues to read:

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

Subpart A--Community Facility Loans

    10. Amend subpart A by adding a new Sec.  1942.21 to read as 
follows:


Sec.  1942.21  Statewide Nonmetropolitan Median Household Income.

    Statewide Nonmetropolitan Median Household Income includes counties 
and portions of metropolitan counties outside of cities, towns or 
places of 50,000 or more population.

CHAPTER XXXV--Rural Housing Service, Department of Agriculture

PART 3570--COMMUNITY PROGRAMS

    11. The authority citation for part 3570 continues to read:

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

Subpart B--Community Facilities Grant Program

    12. Amend Sec.  3570.53 by revising the definition for ``State 
nonmetropolitan median household income'' to read as follows:


Sec.  3570.53  Definitions.

* * * * *
    State nonmetropolitan median household income. The median household 
income of the State's nonmetropolitan counties and portions of 
metropolitan counties outside of cities, towns or places of 50,000 or 
more population.
* * * * *

CHAPTER XLII--Rural Business--Cooperative Service, Rural Utilities 
Service, Department of Agriculture

PART 4274--DIRECT AND INSURED LOANMAKING

    13. The authority citation for part 4274 continues to read:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1932 note; 7 U.S.C. 1989.

Subpart D--Intermediary Relending Program (IRP)

    14. Amend Sec.  4274.302 (a) by adding a definition for ``Statewide 
Nonmetropolitan Median Household Income'' in alphabetical order to read 
as follows:


Sec.  4274.302  Definitions and abbreviations.

    (a) * * *
    Statewide Nonmetropolitan Median Household Income (SNMHI). Median 
household income of the State's nonmetropolitan counties and portions 
of metropolitan counties outside of cities, towns or places of 50,000 
or more population.
* * * * *

    Dated: July 16, 2004.
Gilbert G. Gonzalez,
Under Secretary, Rural Development.
[FR Doc. 04-18087 Filed 8-6-04; 8:45 am]
BILLING CODE 3410-15-P