[Federal Register Volume 71, Number 50 (Wednesday, March 15, 2006)]
[Notices]
[Pages 13343-13348]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-3694]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Household Water Well System Grant Program Announcement of 
Application Deadlines and Funding

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funding availability and solicitation of 
applications.

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SUMMARY: USDA Rural Development administers rural utilities programs 
through the Rural Utilities Service. USDA Rural Development announces 
its fiscal year (FY) 2006 funding and application window for the 
Household Water Well System (HWWS) Grant Program. The HWWS Grant 
Program is authorized under Section 6012 of the Farm Security and Rural 
Investment Act of 2002 (The Act), Public Law 107-171. The Act 
authorizes USDA Rural Development to make grants to qualified private 
non-profit organizations to establish lending programs for household 
water wells. For FY 2006, the HWWS grant funding available is $990,000. 
The non-profit organizations will use the grants to make loans to 
individuals to construct or upgrade a household water well system for 
an existing home. The organizations must contribute an amount equal to 
at least 10 percent of the grant request to capitalize the loan fund. 
Applications may be submitted in paper or electronic format. The HWWS 
Grant Program regulations are contained in 7 CFR part 1776.

DATES: The deadline for completed applications for a HWWS grant is May 
31, 2006. Applications in either paper or electronic format must be 
postmarked or time-stamped electronically on or before the deadline. 
Late applications will be ineligible for grant consideration.

ADDRESSES: Submit electronic grant applications through http://www.grants.gov (Grants.gov), following the instructions on that Web 
site. Submit completed paper applications to the U.S. Department of 
Agriculture, USDA Rural Development Utilities Programs, Mail Stop 
1570, Room 2233-S, 1400 Independence Ave., SW., Washington, DC 
20250-1570. Applications should be marked ``Attention: Water and 
Environmental Programs.''
    Application guides and materials for the HWWS Grant Program may be 
obtained electronically through http://www.usda.gov/rus/water/well.htm. 
Call (202) 720-9589 to request paper copies of application guides and 
materials from the Water and Environmental Programs staff.

FOR FURTHER INFORMATION CONTACT: Cheryl Francis, Loan Specialist, U.S. 
Department of Agriculture, Rural Development Programs, Water and 
Environmental Programs, telephone: (202) 720-1937, fax: (202) 690-0649, 
e-mail: [email protected].

SUPPLEMENTARY INFORMATION: 

Overview

    Federal Agency: Rural Utilities Service (RUS).
    Funding Opportunity Title: Household Water Well System Grant 
Program.
    Announcement Type: Grant--Initial.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.862.
    Due Date for Applications: May 31, 2006.

Items in Supplementary Information

I. Funding Opportunity: Description of the Household Water Well 
System Grant Program.
II. Award Information: Available funds.
III. Eligibility Information: Who is eligible, what kinds of 
projects are eligible, what criteria determine basic eligibility.
IV. Application and Submission Information: Where to get application 
materials, what constitutes a completed application, how and where 
to submit applications, deadlines, items that are eligible.
V. Application Review Information: Considerations and preferences, 
scoring criteria, review standards, selection information.
VI. Award Administration Information: Award notice information, 
award recipient reporting requirements.
VII. Agency Contacts: Web, phone, fax, email, contact name.

I. Funding Opportunity

A. Program Description

    The Household Water Well System (HWWS) Grant Program has been 
established to help individuals with low to moderate incomes finance 
the costs of household water wells that they own or will own. The HWWS 
Grant Program is authorized under section 6012 of the Farm Security and 
Rural Investment Act of 2002 (The Act), Public Law 107-171. The Act 
authorizes the USDA Rural Development through the Rural Utilities 
Service to make grants to qualified private non-profit organizations to 
establish lending programs for household water wells.
    As the grant recipients, non-profit organizations will receive HWWS 
grants to establish lending programs that will provide water well loans 
to individuals. The individuals, as loan recipients, may use the loans 
to construct, refurbish, and service their household well systems. A 
loan may not exceed $8,000 and will have a term up to 20 years at a one 
percent annual interest rate.

B. Background

    The USDA Rural Development supports the sound development of rural 
communities and the growth of our economy without endangering the 
environment. The USDA Rural Development provides financial and 
technical assistance to help communities bring safe drinking water and 
sanitary, environmentally sound waste disposal facilities to rural 
Americans in greatest need.
    A central water system may not be the only or best solution to 
drinking water problems. Distance or physical barriers make public 
central water systems expensive in remote areas. A significant number 
of geographically isolated households without water service might 
require individual wells rather than connections to new or existing 
community systems. The goal of the USDA Rural Development is not only 
to make funds available to those communities most in need of potable 
water but also to ensure that facilities used to deliver drinking water 
are safe and affordable. There is a role for private wells in reaching 
this goal.

C. Purpose

    The purpose of the HWWS Grant Program is to provide funds to non-
profit organizations to assist them in establishing loan programs from 
which individuals may borrow money for household water well systems. 
Applicants must show that the project will provide technical and 
financial assistance to eligible individuals to remedy household well 
problems. Priority will be given to the non-profit organizations that:
    1. Demonstrate experience in promoting safe, productive uses of

[[Page 13344]]

household water wells and ground water.
    2. Demonstrate significant management experience in making and 
servicing loans to individuals.
    3. Contribute more than 50 percent of the grant amount in cash or 
other liquid assets in order to capitalize the revolving loan fund.
    4. Propose to serve rural areas containing the smallest communities 
with a high percentage of low-income individuals eligible for loans.
    5. Target areas which lack running water, flush toilets, and modern 
sewage disposal systems.
    Due to the limited amount of funds available under the HWWS 
Program, one or two applications may be funded from FY 2006 funds. 
Previously funded grant recipients must apply for a different target 
area to be considered for funding under this announcement.

II. Award Information

    Funding Instrument Type: Grant.
    Anticipated Total Priority Area Funding: $990,000.
    Anticipated Number of Awards: 1 or 2.
    Length of Project Periods: 12-month project.
    Assistance Instrument: Grant Agreement with successful applicants 
before any grant funds are disbursed.

III. Eligibility Information

A. Who Is Eligible for Grants?

    1. An organization is eligible to receive a Household Water Well 
grant if it:
    a. Is a private, non-profit organization that has tax-exempt status 
from the United States Internal Revenue Service (IRS). Faith-based 
organizations are eligible and encouraged to apply for this program.
    b. Is legally established and located within one of the following:
    (1) A state within the United States
    (2) The District of Columbia
    (3) The Commonwealth of Puerto Rico
    (4) A United States territory
    c. Has the legal capacity and authority to carry out the grant 
purpose;
    d. Has sufficient expertise and experience in lending activities;
    e. Has sufficient expertise and experience in promoting the safe 
and productive use of individually-owned household water well systems 
and ground water;
    f. Has no delinquent debt to the Federal Government or no 
outstanding judgments to repay a Federal debt;
    g. Demonstrates that it possesses the financial, technical, and 
managerial capability to comply with Federal and State laws and 
requirements.
    2. An individual is ineligible to receive a Household Water Well 
grant. An individual may receive only a loan.

B. What are the basic eligibility requirements for a project?

    1. Project Eligibility. To be eligible for a grant, the project 
must:
    a. Be a revolving loan fund created to provide loans to eligible 
individuals to construct, refurbish, and service individually-owned 
household water well systems (see 7 CFR 1776.11 and 1776.12). Loans may 
not be provided for home sewer or septic system projects.
    b. Be established and maintained by a private, non-profit 
organization.
    c. Be located in a rural area. Rural area is defined as locations 
other than cities or towns of more than 50,000 people and the adjacent 
urbanized area of such towns and cities.
    2. Required Matching Contributions. Grant applicants must provide 
written evidence of a matching contribution of at least 10 percent from 
sources other than the proceeds of a HWWS grant. In-kind contributions 
will not be considered for the matching requirement. Please see 7 CFR 
1776.9 for the requirement.
    3. Other--Requirements.
    a. DUNS Number. An organization must have a Dun and Bradstreet Data 
Universal Numbering System (DUNS) number. A DUNS number will be 
required whether an applicant is submitting a paper application or an 
electronic application through http://www.grants.gov. To verify that 
your organization has a DUNS number or to receive one at no cost, call 
the dedicated toll-free request line at 1-866-705-5711 or request one 
on-line at http://www.dnb.com.
    b. Eligibility for Loans. Individuals are not eligible for grants 
but are eligible for loans. To be eligible for a loan, an individual 
must:
    (1) Be a member of a household of which the combined household 
income of all members does not exceed 100 percent of the median non-
metropolitan household income for the State or territory in which the 
individual resides. Household income is the total income from all 
sources received by each adult household member for the most recent 12-
month period for which the information is available. It does not 
include income earned or received by dependent children under 18 years 
old or other benefits that are excluded by Federal law. The non-
metropolitan household income must be based on the most recent 
decennial census of the United States.
    USDA Rural Development publishes a list of income exclusions in 7 
CFR 3550.54(b). Also, a list of federally Mandated Exclusions from 
Income, published by the Department of Housing and Urban Development 
may be found in the Federal Register, April 20, 2001 at 66 FR 20318.
    (2) Own and occupy the home being improved with the proceeds of the 
Household Water Well loan or be purchasing the home to occupy under a 
legally enforceable land purchase contract which is not in default by 
either the seller or the purchaser.
    (3) Own the home in a rural area.
    (4) Not use the loan for a water well system associated with the 
construction of a new dwelling.
    (5) Not use the loan to substitute a well for water service 
available from collective water systems. (For example, a loan may not 
be used to restore an old well abandoned when a dwelling was connected 
to a water district's water line.)
    (6) Not be suspended or debarred from participation in Federal 
programs.

IV. Application and Submission Information

A. Where To Get Application Information

    The application guide, copies of necessary forms and samples, and 
the HWWS Grant regulation are available from these sources:
    1. On-line for electronic copies: http://www.grants.gov or http://www.usda.gov/rus/water/well.htm, and
    2. USDA Rural Development for paper copies. USDA Rural Development 
Utilities Programs, Water Programs Division, Room 2234 South, Stop 
1570, 1400 Independence Avenue, SW., Washington, DC 20250-1570. 
Telephone: (202) 720-9589; Fax (202) 690-0649.

B. Content and Form of Application Submission

1. Rules and Guidelines
    a. Detailed information on each item required can be found in the 
Household Water Well System Grant Program regulation and the Household 
Water Well System Grant Application Guide. Applicants are strongly 
encouraged to read and apply both the regulation and the application 
guide. This Notice does not change the requirements for a completed 
application for any form of HWWS financial assistance specified in the 
regulation. The regulation and application guide provide specific 
guidance on each of the items listed.
    b. Applications should be prepared in conformance with the 
provisions in 7 CFR part 1776, subpart B, and applicable USDA 
regulations including

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7 CFR parts 3015 and 3019. Applicants should use the Household Water 
Well System Grant Application Guide which contains instructions and 
other important information in preparing their application. Completed 
applications must include the items found in the checklist in the next 
paragraph.
 2. Checklist of Items in Completed Application Packages
    The forms in items 1 through 6 must be completed and signed where 
appropriate by an official of your organization who has authority to 
obligate the organization legally. The forms may be found on-line at 
the USDA Rural Development Web site: http://www.usda.gov/rus/water/wwforms.htm. See section V, ``Application Review Information,'' for 
instructions and guidelines on preparing Items 7 through 13.

Application Items

1. SF-424, ``Application for Federal Assistance''
2. SF-424A, ``Budget Information--Non-Construction Programs''
3. SF-424B, ``Assurances--Non-Construction Programs''
4. SF-LLL, ``Disclosure of Lobbying Activity''
5. Form RD 400-1, ``Equal Opportunity Agreement''
6. Form RD 400-4, ``Assurance Agreement (Under Title VI, Civil Rights 
Act of 1964)
7. Project Proposal
Project Summary
Needs Assessment
Project Goals and Objectives
Project Narrative
8. Work Plan
9. Budget and Budget Justification
10. Evidence of Legal Authority and Existence
11. Documentation of non-profit status and IRS Tax Exempt Status
12. List of Directors and Officers
13. Financial information and sustainability (narrative)
14. Assurances and Certifications of Compliance with Other Federal 
Statutes
3. Compliance With Other Federal Statutes
    The applicant must provide evidence of compliance with other 
Federal statutes and regulations, including, but not limited to the 
following:
    a. 7 CFR part 15, subpart A--Nondiscrimination in Federally 
Assisted Programs of the Department of Agriculture--Effectuation of 
Title VI of the Civil Rights Act of 1964.
    b. 7 CFR part 3015--Uniform Federal Assistance Regulations.
    c. 7 CFR part 3017--Government wide Debarment and Suspension (Non-
procurement).
    d. 7 CFR part 3018--New Restrictions on Lobbying.
    e. 7 CFR part 3021--Government wide Requirements for Drug-Free 
Workplace (Financial Assistance).
    f. Executive Order 13166, ``Improving Access to Services for 
Persons with Limited English Proficiency.'' For information on limited 
English proficiency and agency-specific guidance, go to http://www.LEP.gov.
    g. Federal Obligation Certification on Delinquent Debt.

C. How Many Copies of an Application Are Required?

    1. Applications Submitted on Paper. Submit one signed original and 
two additional copies. The original and each of the two copies must 
include all required forms, certifications, assurances, and appendices, 
be signed by an authorized representative, and have original 
signatures. Do not include organizational brochures or promotional 
materials.
    2. Applications Submitted Electronically. The additional paper 
copies are unnecessary if the application is submitted electronically 
through http://www.grants.gov.

D. How and Where To Submit an Application

 1. Submitting Paper Applications
    a. For paper applications mail or ensure delivery of an original 
paper application (no stamped, photocopied, or initialed signatures) 
and two copies by the deadline date to:
    USDA Rural Development Utilities Programs, Water Programs Division, 
Room 2234 South, Stop 1570, 1400 Independence Avenue, SW., Washington, 
DC 20250-1570.
    b. Applications must show proof of mailing or shipping by one of 
the following:
    (1) A legibly dated U.S. Postal Service (USPS) postmark;
    (2) A legible mail receipt with the date of mailing stamped by the 
USPS; or
    (3) A dated shipping label, invoice, or receipt from a commercial 
carrier.
    c. If a deadline date falls on a weekend, it will be extended to 
the following Monday. If the date falls on a Federal holiday, it will 
be extended to the next business day.
    d. Due to screening procedures at the Department of Agriculture, 
packages arriving via the USPS are irradiated, which can damage the 
contents. USDA Rural Development encourages applicants to consider the 
impact of this procedure in selecting an application delivery method.
 2. Submitting Electronic Applications
    a. Applications will not be accepted via facsimile machine 
transmission or electronic mail.
    b. Electronic applications for grants will be accepted if submitted 
through Grants.gov at http://www.grants.gov.
    c. Applicants who apply through Grants.gov should submit their 
applications before the deadline.
    d. Grants.gov contains full instructions on all required passwords, 
credentialing, and software. Follow the instructions at Grants.gov for 
registering and submitting an electronic application. RUS may request 
original signatures on electronically submitted documents later.
    e. To use Grants.gov:
    (1) Follow the instructions on the Web site to find grant 
information.
    (2) Download a copy of an application package.
    (3) Complete the package off-line.
    (4) Upload and submit the application via the Grants.gov Web site.
    f. You must be registered with Grants.gov before you can submit a 
grant application.
    (1)You will need a DUNS number to access or register at any of the 
services. In addition to the DUNS number required of all grant 
applicants, your organization must be listed in the Central Contractor 
Registry (CCR). If you have not used Grants.gov before, you will need 
to register with the CCR and the Credential Provider. Setting up a CCR 
listing (a one-time procedure with annual updates) takes up to five 
business days. USDA Rural Development recommends that you obtain your 
organization's DUNS number and CCR listing well in advance of the 
deadline specified in this notice.
    (2) The CCR registers your organization, housing your 
organizational information and allowing Grants.gov to use it to verify 
your identity. You may register for the CCR by calling the CCR 
Assistance Center at 1-888-227-2423 or you may register online at 
http://www.ccr.gov.
    (3) The Credential Provider gives you or your representative a 
username and password, as part of the Federal Government's e-
Authentication to ensure a secure transaction. You will need the 
username and password when you register with Grants.gov or use 
Grants.gov to submit your application. You must register with the 
Central Provider through Grants.gov at https://apply.grants.gov/OrcRegister.
    (4) If a system problem or technical difficulty occurs with an 
electronic

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application, please use the customer support resources available at the 
Grants.gov website.

E. Deadlines

    The deadline for paper and electronic submissions is May 31, 2006. 
Paper applications must be postmarked and mailed, shipped, or sent 
overnight no later than the closing date to be considered for FY 2006 
grant funding. Electronic applications must have an electronic date and 
time stamp by midnight of May 31, 2006, to be considered on time. USDA 
Rural Development will not accept applications by fax or e-mail. 
Applications that do not meet the criteria above are considered late 
applications and will not be considered. USDA Rural Development will 
notify each late applicant that its application will not be considered.

F. Funding Restrictions

1. Eligible Grant Purposes
    a. Grant funds must be used to establish and maintain a revolving 
loan fund to provide loans to eligible individuals for household water 
well systems.
    b. Individuals may use the loans to construct, refurbish, 
rehabilitate, or replace household water well systems up to the point 
of entry of a home. Point of entry for the well system is the junction 
where water enters into a home water delivery system after being pumped 
from a well.
    c. Grant funds may be used to pay administrative expenses 
associated with providing Household Water Well loans.
2. Ineligible Grant Purposes
    a. Administrative expenses incurred in any calendar year that 
exceed 10 percent of the HWWS loans made during the same period do not 
qualify for reimbursement.
    b. Administrative expenses incurred before USDA Rural Development 
executes a grant agreement with the recipient do not qualify for 
reimbursement.
    c. Delinquent debt owed to the Federal Government.
    d. Grant funds may not be used to provide loans for household sewer 
or septic systems.
    e. Household Water Well loans may not be used to pay the costs of 
water well systems for the construction of a new house.
    f. Household Water Well loans may not be used to pay the costs of a 
home plumbing system.

V. Application Review Information

A. Criteria

    This section contains instructions and guidelines on preparing the 
project proposal, work plan, and budget sections of the application. 
Also, guidelines are provided on the additional information required 
for USDA Rural Development to determine eligibility and financial 
feasibility.
    1. Project Proposal. The project proposal should outline the 
project in sufficient detail to provide a reader with a complete 
understanding of the loan program. Explain what will be accomplished by 
lending funds to individual well owners. Demonstrate the feasibility of 
the proposed loan program in meeting the objectives of this grant 
program. The proposal should include the following elements:
    a. Project Summary. Present a brief project overview. Explain the 
purpose of the project, how it relates to USDA Rural Development's 
purposes, how the project will be executed, what the project will 
produce, and who will direct it.
    b. Needs Assessment. To show why the project is necessary, clearly 
identify the economic, social, financial, or other problems that 
require solutions. Demonstrate the well owners' need for financial and 
technical assistance. Quantify the number of prospective borrowers or 
provide statistical or narrative evidence that a sufficient number of 
borrowers will exist to justify the grant award. Describe the service 
area. Provide information on the household income of the area and other 
demographical information. Address community needs.
    c. Project Goals and Objectives. Clearly state the project goals. 
The objectives should clearly describe the goals and be concrete and 
specific enough to be quantitative or observable. They should also be 
feasible and relate to the purpose of the grant and loan program.
    d. Project Narrative. The narrative should cover in more detail the 
items briefly described in the Project Summary. Demonstrate the grant 
applicant's experience and expertise in promoting the safe and 
productive use of individually-owned household water well systems. The 
narrative should address the following points:
    (1) Document the grant applicant's ability to manage and service a 
revolving fund. The narrative may describe the systems that are in 
place for the full life cycle of a loan from loan origination through 
servicing. If a servicing contractor will service the loan portfolio, 
the arrangement and services provided must be discussed.
    (2) Show evidence that the organization can commit financial 
resources the organization controls. This documentation should describe 
the sources of funds other than the HWWS grant that will be used to pay 
your operational costs and provide financial assistance for projects.
    (3) Demonstrate that the organization has secured commitments of 
significant financial support from other funding sources, if 
appropriate.
    (4) List the fees and charges that borrowers will be assessed.
    2. Work Plan. The work plan or scope of work must describe the 
tasks and activities that will be accomplished with available resources 
during the grant period. It must include who will carry out the 
activities and services to be performed and specific timeframes for 
completion. Describe any unusual or unique features of the project such 
as innovations, reductions in cost or time, or extraordinary community 
involvement.
    3. Budget and Budget Justification. Both Federal and non-Federal 
resources shall be detailed and justified in the budget and narrative 
justification. ``Federal resources'' refers only to the HWWS grant for 
which you are applying. ``Non Federal resources'' are all other Federal 
and non-Federal resources.
    a. Provide a budget with line item detail and detailed calculations 
for each budget object class identified in section B of the Budget 
Information form (SF-424A). Detailed calculations must include 
estimation methods, quantities, unit costs, and other similar 
quantitative detail sufficient for the calculation to be duplicated. 
Also include a breakout by the funding sources identified in Block 15 
of the SF-424.
    b. Provide a narrative budget justification that describes how the 
categorical costs are derived for all capital and administrative 
expenditures, the matching contribution, and other sources of funds 
necessary to complete the project. Discuss the necessity, 
reasonableness, and allocability of the proposed costs. Consult OMB 
Circular A-122: ``Cost Principles for Non-Profit Organizations'' for 
information about appropriate costs for each budget category.
    c. If the grant applicant will use a servicing contractor, the fees 
may be reimbursed as an administrative expense as provided in 7 CFR 
1776.13. These fees must be discussed in the budget narrative. If the 
grant applicant will hire a servicing contractor, it must demonstrate 
that all procurement

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transactions will be conducted in a manner to provide, to the maximum 
extent practical, open and free competition. Recipients must justify 
any anticipated procurement action that is expected to be awarded 
without competition and exceed the simplified acquisition threshold 
fixed at 41 U.S.C. 403(11) (currently set at $100,000).
    d. The indirect cost category should be used only when the grant 
applicant currently has an indirect cost rate approved by the 
Department of Agriculture or another cognizant Federal agency. A grant 
applicant that will charge indirect costs to the grant must enclose a 
copy of the current rate agreement. If the grant applicant is in the 
process of initially developing or renegotiating a rate, the grant 
applicant shall submit its indirect cost proposal to the cognizant 
agency immediately after the applicant is advised that an award will be 
made. In no event, shall the indirect cost proposal be submitted later 
than three months after the effective date of the award. Consult OMB 
Circular A-122 for information about indirect costs.
    4. Evidence of Legal Authority and Existence. The applicant must 
provide satisfactory documentation that it is legally recognized under 
state and Federal law as a non-profit organization. The documentation 
also must show that it has the authority to enter into a grant 
agreement with the Rural Utilities Service and to perform the 
activities proposed under the grant application. Satisfactory 
documentation includes, but is not limited to, certificates from the 
Secretary of State, or copies of state statutes or laws establishing 
your organization. Letters from the IRS awarding tax-exempt status are 
not considered adequate evidence.
    5. List of Directors and Officers. The applicant must submit a 
certified list of directors and officers with their respective terms.
    6. IRS Tax Exempt Status. The applicant must submit evidence of tax 
exempt status from the Internal Revenue Service.
    7. Financial Information and Sustainability. The applicant must 
submit pro forma balance sheets, income statements, and cash flow 
statements for the last three years and projections for three years. 
Additionally, the most recent audit of the applicant's organization 
must be submitted.

B. Evaluation Criteria

    Grant applications that are complete and eligible will be scored 
competitively based on the following scoring criteria:

------------------------------------------------------------------------
               Scoring criteria                          Points
------------------------------------------------------------------------
Degree of expertise and experience in          Up to 30 points.
 promoting the safe and productive use of
 individually-owned household water well
 systems and ground water.
Degree of expertise and successful experience  Up to 20 points.
 in making and servicing loans to individuals.
Percentage of applicant contributions. Points
 allowed under this paragraph will be based
 on written evidence of the availability of
 funds from sources other than the proceeds
 of a HWWS grant to pay part of the cost of a
 loan recipient's project. In-kind
 contributions will not be considered. Funds
 from other sources as a percentage of the
 HWWS grant and points corresponding to such
 percentages are as follows:
    0 to 9 percent...........................  ineligible.
    10 to 25 percent.........................  5 points
    26 to 30 percent.........................  10 points
    31 to 50 percent.........................  15 points
    51 percent or more.......................  20 points
Extent to which the work plan demonstrates a   Up to 20 points.
 well thought out, comprehensive approach to
 accomplishing the objectives of this part,
 clearly defines who will be served by the
 project, and appears likely to be
 sustainable.
Lowest ratio of projected administrative       Up to 10 points.
 expenses to loans advanced.
Administrator's discretion, taking into        Up to 10 points.
 consideration such factors as:.
Creative outreach ideas for marketing HWWS
 loans to rural residents;.
Amount of funds requested in relation to the
 amount of needs demonstrated in the
 proposal;.
Excellent utilization of a previous revolving
 loan fund; and Optimizing the use of agency
 resources.
Description of the service area, particularly
 the range of the area:
    State....................................  10 points.
    Regional.................................  15 points.
    National.................................  20 points.
Extent to which the problem or issue being     Up to 15 points.
 addressed in the Needs Assessment is defined
 clearly and supported by data.
Extent to which the goals and objectives are   Up to 15 points.
 clearly defined, tied to the need as defined
 in the Needs Assessment, and are measurable.
Extent to which the evaluation methods are     Up to 20 points.
 specific to the program, clearly defined,
 measurable, with expected program outcomes.
------------------------------------------------------------------------

C. Review Standards

    1. Incomplete applications as of the deadline for submission will 
not be considered. If an application is determined to be incomplete, 
the applicant will be notified in writing and the application will be 
returned with no further action.
    2. Ineligible applications will be returned to the applicant with 
an explanation.
    3. Complete, eligible applications will be evaluated competitively 
by a review team, composed of at least two USDA Rural Development 
employees selected from the Water Programs Division. They will make 
overall recommendations based on the program elements found in 7 CFR 
part 1776 and the review criteria presented in this notice. They will 
award points as described in the scoring criteria in 7 CFR 1776.9 and 
this notice. Each application will receive a score based on the 
averages of the reviewers' scores and discretionary points awarded by 
the Rural Utilities Service Administrator.
    4. Applications will be ranked and grants awarded in rank order 
until all grant funds are expended.
    5. Regardless of the score an application receives, if USDA Rural 
Development determines that the

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project is technically infeasible, USDA Rural Development will notify 
the applicant, in writing, and the application will be returned with no 
further action.

VI. Award Administration Information

A. Award Notices

    USDA Rural Development will notify a successful applicant by an 
award letter accompanied by a grant agreement. The grant agreement will 
contain the terms and conditions for the grant. The applicant must 
execute and return the grant agreement, accompanied by any additional 
items required by the award letter or grant agreement.

B. Administrative and National Policy Requirements

    1. This notice, the 7 CFR 1776, and Household Water Well System 
Grant Program Application Guide implement the appropriate 
administrative and national policy requirements. Grant recipients are 
subject to the requirements in 7 CFR part 1776.
    2. Direct Federal grants, sub-award funds, or contracts under the 
HWWS Program shall not be used to fund inherently religious activities, 
such as worship, religious instruction, or proselytization. Therefore, 
organizations that receive direct USDA assistance should take steps to 
separate, in time or location, their inherently religious activities 
from the services funded under the HWWS Program. USDA regulations 
pertaining to the Equal Treatment for Faith-based Organizations, which 
includes the prohibition against Federal funding of inherently 
religious activities, can be found either at the USDA Web site at 
http://www.usda.gov/fbci/finalrule.pdf or 7 CFR part 16.

C. Reporting

    1. Performance Reporting. All recipients of HWWS Grant Program 
financial assistance must provide quarterly performance activity 
reports to USDA Rural Development until the project is complete and the 
funds are expended. A final performance report is also required. The 
final report may serve as the last annual report. The final report must 
include an evaluation of the success of the project.
    2. Financial Reporting. All recipients of Household Water Well 
System Grant Program financial assistance must provide an annual audit, 
beginning with the first year a portion of the financial assistance is 
expended. 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.

VII. Agency Contacts

    A. Web site: http://www.usda.gov/rus/water. The USDA Rural 
Development's Web site maintains up-to-date resources and contact 
information for the Household Water Well program.
    B. Phone: 202-720-9589.
    C. Fax: 202-690-0649.
    D. E-mail: [email protected].
    E. Main point of contact: Cheryl Francis, Loan Specialist, Water 
and Environmental Programs, Water Programs Division, USDA Rural 
Development Utilities Programs, U.S. Department of Agriculture.

    Dated: March 6, 2006.
James M. Andrew,
Administrator, Rural Utilities Service.
[FR Doc. E6-3694 Filed 3-14-06; 8:45 am]
BILLING CODE 3410-15-P