[Federal Register Volume 79, Number 58 (Wednesday, March 26, 2014)]
[Notices]
[Pages 16757-16763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-06621]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Household Water Well System Grant Program Announcement of 
Application Deadlines

AGENCY: Rural Utilities Service.

ACTION: Notice of Funding Availability and Solicitation of 
Applications.

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SUMMARY: The Rural Utilities Service (RUS) announces its Household 
Water Well System Grant Program (HWWS) funding availability and 
application window for Fiscal Year (FY) 2014. RUS will make grants to 
qualified private non-profit organizations to establish lending 
programs for homeowners to borrow up to $11,000 to construct or repair 
household water wells for an existing home. The HWWS Grant Program is 
authorized under 7 U.S.C. 1926e. Regulations may be found at 7 CFR 
1776. Of particular note this year, the RUS will assign administrative 
discretion points to applications that:
    1. Direct loans to rural areas where according to the American 
Community Survey data by census tracts show that at least 20 percent of 
the population is living in poverty. This emphasis will support Rural 
Development's (RD) goal of providing 20 percent of its funding by 2016 
to these areas of need.
    2. Direct loans to areas which lack running water, flush toilets, 
and modern sewage disposal systems, and areas which have open sewers 
and high rates of disease caused by poor sanitation, in particular, 
colonias or Substantially Underserved Trust Areas.

DATES: The deadline for completed applications for a HWWS grant is May 
27, 2014. 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 applications to the following addresses:
    1. Electronic applications: http://www.grants.gov (Grants.gov). 
Submit electronic applications through Grants.gov, following the 
instructions on that Web site.
    2. Paper applications: Water Programs Division, Rural Utilities 
Service, STOP: 1570, Room 2233-S, 1400 Independence Ave. SW., 
Washington, DC 20250-1570.
    Obtain application guides and materials for the HWWS Grant Program 
electronically or in paper format from the following addresses:
    1. Electronic copies: http://www.rurdev.usda.gov/UWP-individualwellsystems.htm.
    2. Paper copies: Write Water Programs Division, Rural Utilities 
Service, STOP: 1570, Room 2233-S, 1400 Independence Ave. SW., 
Washington, DC 20250-1570 or call (202) 720-9589.

FOR FURTHER INFORMATION CONTACT: Joyce M. Taylor, Community Programs 
Specialist, Water Programs Division, Water and Environmental Programs. 
Telephone: (202) 720-9589, fax: (202) 690-0649, email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency: Rural Utilities Service.
    Funding Opportunity Title: HWWS Grant Program.
    Announcement Type: Solicitations of Applications.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.862.
    Due Date for Applications: May 27, 2014.

Items in Supplementary Information

I. Funding Opportunity: Description of the HWWS Grant Program.
II. Award Information: Available funds, maximum amounts $1,019,000 
available for grants from FY 2014 and prior year appropriations.
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 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 306E of the Consolidated Farm and Rural Development Act 
(CONACT), 7 U.S.C. 1926e. The CONACT authorizes the RUS to make grants 
to qualified private non-profit organizations to establish lending 
programs for household water wells.
    As the grant recipients, private 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 $11,000 and will have a term up to 
20 years at a one percent annual interest rate.

B. Background

    The RUS supports the sound development of rural communities and the 
growth of our economy without endangering the environment. The RUS 
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.
    Central water systems may not be the only or best solution to 
drinking water problems. Distance or physical barriers make public 
central water systems costly to deploy 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 RUS 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 
private non-profit organizations to assist them in establishing loan 
programs from which individuals may borrow money for HWWS. Faith-based 
organizations are eligible and encouraged to apply for this program. 
Applicants must show that the project will provide technical and 
financial assistance to eligible individuals to remedy household well 
problems.
    Due to the limited amount of funds available under the HWWS Grant 
Program, 10 applications may be funded from FY 2014 funds and prior 
year appropriations. Applications from existing HWWS grant recipients 
are acceptable and will be evaluated as new applications.

II. Award Information

    Funding Instrument Type: Grant.

[[Page 16758]]

    Available funds: For competitive grants in FY 2014, RUS is making 
available $1,019,000 from FY 2014 and prior year appropriations.
    Anticipated Number of Awards: 10.
    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 HWWS grant if it:
    a. Has an active registration with current information in the 
System for Award Management (SAM) (formerly Central Contractor 
Registry, (CCR)) and has a Dun and Bradstreet (D&B) Data Universal 
Numbering System (DUNS) number.
    b. Is a private, non-profit organization.
    c. 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

    d. Has the legal capacity and authority to carry out the grant 
purpose.
    e. Has sufficient expertise and experience in lending activities.
    f. Has sufficient expertise and experience in promoting the safe 
and productive use of individually-owned HWWS and ground water.
    g. Has no delinquent debt to the Federal Government or no 
outstanding judgments to repay a Federal debt.
    h. Demonstrates that it possesses the financial, technical, and 
managerial capability to comply with Federal and State laws and 
requirements.
    i. Corporations that have been convicted of a felony (or had an 
officer or agency acting on behalf of the corporation convicted of a 
felony) within the past 24 months are not eligible. Any Corporation 
that has any unpaid federal tax liability that has been assessed, for 
which all judicial and administrative remedies have been exhausted or 
have lapsed, and that is not being paid in a timely manner pursuant to 
an agreement with the authority responsible for collecting the tax 
liability is not eligible.
    2. An individual is ineligible to receive a Household Water Well 
grant. An individual may receive a loan from an organization receiving 
a grant award.

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 
HWWS (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 
contiguous and 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. The applicant for a grant must supply a Dun and 
Bradstreet Data Universal Numbering System (DUNS) number as part of an 
application. The Standard Form 424 (SF-424) contains a field for the 
DUNS number. The applicant can obtain the DUNS number free of charge by 
calling Dun and Bradstreet. Please see http://fedgov.dnb.com/webform 
for more information on how to obtain a DUNS number or how to verify 
your organization's number.
    b. Prior to submitting an application, the applicant must register 
in the System for Award Management (SAM) (formerly Central Contractor 
Registry, (CCR)).
    (1) Applicants may register for the SAM at https://www.sam.gov/portal/public/SAM/.
    (2) The SAM registration must remain active with current 
information at all times while RUS is considering an application or 
while a Federal Grant Award or loan is active. To maintain the 
registration in the SAM database the applicant must review and update 
the information in the SAM database annually from date of initial 
registration or from the date of the last update. The applicant must 
ensure that the information in the database is current, accurate, and 
complete.
    c. Eligibility to receive a HWWS loan will be based on the 
following criteria:
    (1) An individual must 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. A list of income exclusions is 
available at 7 CFR 3550.54(b). Also, the Department of Housing and 
Urban Development published a list of income exclusions in the Federal 
Register on April 20, 2001, at 66 FR 20318 (See ``Federally Mandated 
Exclusions'').
    (2) The loan recipient must 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) The home being improved with the water well system must be 
located in a rural area.
    (4) The loan for a water well system must not be associated with 
the construction of a new dwelling.
    (5) The loan must not be used to substitute a water well system 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) The loan recipient must not be suspended or debarred from 
participation in Federal programs.

IV. Application and Submission Information

A. Where to Get Application Information

    The Household Water Well System Grant Application Guide 
(Application Guide), copies of necessary forms and samples, and the 
HWWS Grant Program regulations are available from these sources:
    1. Internet for electronic copies: http://www.grants.gov or http://www.rurdev.usda.gov/UWP-individualwellsystems.htm;
    2. Water and Environmental Programs for paper copies: RUS, Water 
Programs Division, STOP 1570, Room 2233-S, 1400 Independence Ave. 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 
HWWS Grant Program regulation (7 CFR part

[[Page 16759]]

1776) and the 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 regulations 
including 7 CFR parts 3015 and 3019. Applicants should use the 
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
    a. DUNS Number. The applicant for a grant must supply a Dun and 
Bradstreet Data Universal Numbering System (DUNS) number as part of an 
application. The Standard Form 424 (SF-424) contains a field for the 
DUNS number. The applicant can obtain the DUNS number free of charge by 
calling Dun and Bradstreet. Please see http://fedgov.dnb.com/webform 
for more information on how to obtain a DUNS number or how to verify 
your organization's number.
    b. Prior to submitting an application, the applicant must register 
in the System for Award Management (SAM) (formerly Central Contractor 
Registry (CCR)).
    (1) Applicants may register for the SAM at: https://www.sam.gov/portal/public/SAM/.
    (2) The SAM registration must remain active with current 
information at all times while RUS is considering an application or 
while a Federal Grant Award or loan is active. To maintain the 
registration in the SAM database the applicant must review and update 
the information in the SAM database annually from date of initial 
registration or from the date of the last update. The applicant must 
ensure that the information in the database is current, accurate, and 
complete.
    (3) Your organization must be listed in the SAM. If you have not 
used Grants.gov before, you will need to register with the SAM and the 
Credential Provider. New registrations can take 3-5 business days to 
process. Updating or renewing an active registration has a shorter 
turnaround, 24 hours. Registrations in SAM are active for one year. The 
SAM registers your organization, housing your organizational 
information and allowing Grants.gov to use the information to verify 
your identity. The DUNS number, Taxpayer Identification Number (TIN), 
and name and address of the applicant organization must match SAM data 
files.
    c. The electronic and paper application process requires forms with 
the prefixes RD and SF as well as supporting documents and 
certifications.
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 private non-profit status and Internal Revenue 
Service (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.
    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. RD forms are used by programs under 
the Rural Development mission area. Standard forms (SF) are used 
Government-wide. In addition to the sources listed in section A, the 
forms may be accessed electronically through the Rural Development Web 
site at http://www.rurdev.usda.gov/FormsAndPublications.html.
    See section V, ``Application Review Information,'' for instructions 
and guidelines on preparing Items 7 through 13.
    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. 2 CFR part 417--Governmentwide Debarment and Suspension (Non-
procurement).
    d. 7 CFR part 3018--New Restrictions on Lobbying.
    e. 7 CFR part 3019--Uniform Administrative Requirements for Grants 
and Other Agreements with Institutions of Higher Education, Hospitals, 
and Non-profit Organizations.
    f. 2 CFR part 421--Governmentwide Requirements for Drug-Free 
Workplace (Financial Assistance).
    g. 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.
    h. 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. 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: RUS, Water Programs Division, 
STOP 1570, Room 2233-S, 1400 Independence Ave. SW., Washington, DC 
20250-1570, Telephone: (202) 720-9589.
    Submit paper applications marked ``Attention: Water and 
Environmental Programs.''
    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,

[[Page 16760]]

    (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 and delay delivery. RUS 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 by fax or electronic mail.
    b. Electronic applications for grants will be accepted if submitted 
through Grants.gov at http://www.grants.gov.
    c. Applicants must preregister successfully with Grants.gov to use 
the electronic applications option. Application information may be 
downloaded from Grants.gov without preregistration.
    d. Applicants who apply through Grants.gov should submit their 
electronic applications before the deadline.
    e. 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.
    f. Grants.gov has two preregistration requirements: a DUNS number 
and an active registration in SAM. See the ``Checklist of Items in 
Completed Application Packages'' for instructions on obtaining a DUNS 
number and registering in the SAM.
    g. You must be registered with Grants.gov before you can submit an 
electronic grant application.
    (1) You must register at http://www.grants.gov/applicants/get_registered.jsp.
    (2) Organization registration user guides and checklists are 
available at http://www.grants.gov/applicants/get_registered.jsp.
    (3) Grants.gov requires some credentialing and online 
authentication procedures. When an applicant organization is registered 
with SAM, the organization designates a point of contract who receives 
a password authorizing the person to designate staff members who are 
allowed to submit applications electronically through Grants.gov. These 
authorized organization representatives must be registered with 
Grants.gov to receive a username and password to submit applications. 
These procedures may take several business days to complete.
    (4) Some or all of the SAM and Grants.gov registration, 
credentialing and authorizations require updates. If you have 
previously registered at Grants.gov to submit applications 
electronically, please ensure that your registration, credentialing and 
authorizations are up to date well in advance of the grant application 
deadline.
    h. 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.
    (5) If a system problem or technical difficulty occurs with an 
electronic application, please use the customer support resources 
available at the Grants.gov Web site.
    (6) Again, RUS encourages applicants to take early action to 
complete the sign-up, credentialing and authorization procedures at 
http://www.grants.gov before submitting an application at the Web site.

E. Deadlines

    The deadline for paper and electronic submissions is May 27, 2014. 
Paper applications must be postmarked and mailed, shipped, or sent 
overnight no later than the closing date to be considered for FY 2014 
grant funding. Electronic applications must have an electronic date and 
time stamp by midnight of May 27, 2014 to be considered on time. RUS 
will not accept applications by fax or email. Applications that do not 
meet the criteria above are considered late applications and will not 
be considered. RUS 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 household water well loans made during the 
same period do not qualify for reimbursement.
    b. Administrative expenses incurred before RUS executes a grant 
agreement with the recipient do not qualify for reimbursement.
    c. Delinquent debt owed to the Federal Government does not qualify 
for reimbursement.
    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 RUS 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 RUS' 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

[[Page 16761]]

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 of the availability of funds from sources other 
than the HWWS grant. Describe the contributions the project will 
receive from your organization, state agencies, local government, other 
federal agencies, non-government organizations, private industry, and 
individuals. The documentation should describe how the contributions 
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.
    (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. Use the Form SF-424A, Budget 
Information--Non-Construction Programs, to show your budget cost 
elements. The form summarizes resources as Federal and non-Federal 
funds and costs. ``Federal'' refers only to the HWWS Grant Program for 
which you are applying. ``Non-Federal'' refers to resources from your 
organization, state agencies, local government, other Federal agencies, 
non-government organizations, private industry, and individuals. Both 
Federal and non-Federal resources shall be detailed and justified in 
the budget and narrative justification.
    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 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. 134 (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 or successor guidance 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 or Tribal and Federal law as a private non-profit organization. 
The documentation also must show that it has the authority to enter 
into a grant agreement with the RUS and to perform the activities 
proposed under the grant application. Satisfactory documentation 
includes, but is not limited to, certificates from the Secretary of 
State, copies of state/Tribal statutes or laws establishing your 
organization, and copies of your organization's articles of 
incorporation and bylaws. Letters from 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            Up to 20 points.
 experience 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.

[[Page 16762]]

 
    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.
Extent to which the goals and objectives are  Up to 10 points.
 clearly defined, tied to the work plan, and
 measurable.
Lowest ratio of projected administrative      Up to 10 points.
 expenses to loans advanced.
Administrator's discretion, considering such
 factors as:
    Creative outreach ideas for marketing     Up to 10 points.
     HWWS loans to rural residents; factors
     include:
        1. Directs loans to rural areas       ..........................
         where according to the American
         Community Survey data by census
         tracts show that at least 20% of
         the population is living in
         poverty. This emphasis will support
         Rural Development's goal of
         providing 20% of its funding by
         2016 to these areas of need;
        2. Directs loans to areas which lack  ..........................
         running water, flush toilets, and
         modern sewage disposal systems, and
         areas which have open sewers and
         high rates of disease caused by
         poor sanitation, in particular,
         colonias or Substantially
         Underserved Trust Areas.
------------------------------------------------------------------------

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 RUS employees selected from 
the Water Programs Division. They will make overall recommendations 
based on the program elements found in 7 CFR 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 RUS 
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 RUS 
determines that the project is technically infeasible, RUS will notify 
the applicant, in writing, and the application will be returned with no 
further action.

VI. Award Administration Information

A. Award Notices

    RUS 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, 7 CFR 1776, and the application guide implement the 
appropriate administrative and national policy requirements. Grant 
recipients are subject to the requirements in 7 CFR 1776.
    2. Direct Federal grants, sub-award funds, or contracts under the 
HWWS Grant Program shall not be used to fund inherently religious 
activities, such as worship, religious instruction, or proselytization. 
Therefore, organizations that receive direct assistance should take 
steps to separate, in time or location, their inherently religious 
activities from the services funded under the HWWS Grant Program. 
Regulations for the Equal Treatment for Faith-based Organizations are 
contained in 7 CFR 16, which includes the prohibition against Federal 
funding of inherently religious activities.

C. Reporting

    1. Performance Reporting. All recipients of HWWS Grant Program 
financial assistance must provide quarterly performance activity 
reports to RUS 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 HWWS 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.
    3. Recipient and Subrecipient Reporting. The applicant must have 
the necessary processes and systems in place to comply with the 
reporting requirements for first-tier sub-awards and executive 
compensation under the Federal Funding Accountability and Transparency 
Act of 2006 in the event the applicant receives funding unless such 
applicant is exempt from such reporting requirements pursuant to 2 CFR 
part 170 Section 170.110(b). The reporting requirements under the 
Transparency Act pursuant to 2 CFR part 170 are as follows:
    a. First Tier Sub-Awards of $25,000 or more in non-Recovery Act 
funds (unless they are exempt under 2 CFR part 170) must be reported by 
the Recipient to http://www.fsrs.gov no later than the end of the month 
following the month the obligation was made.
    b. The Total Compensation of the Recipient's Executives (5 most 
highly compensated executives) must be reported by the Recipient (if 
the Recipient meets the criteria under 2 CFR part 170) to https://www.sam.gov/portal/public/SAM/ by the end of the month following the 
month in which the award was made.
    c. The Total Compensation of the Subrecipient's Executives (5 most 
highly compensated executives) must be reported by the Subrecipient (if 
the Subrecipient meets the criteria under 2 CFR part 170) to the 
Recipient by the

[[Page 16763]]

end of the month following the month in which the subaward was made.

VII. Agency Contacts

    A. Web site: http://www.rurdev.usda.gov/UWP-individualwellsystems.htm.
    B. Phone: 202-720-0499.
    C. Fax: 202-690-0649.
    D. Email: [email protected].
    E. Main point of contact: Joyce M. Taylor, Community Programs 
Specialist, Water Programs Division, Water and Environmental Programs, 
RUS, U.S. Department of Agriculture.

    Dated: February 28, 2014.
John Charles Padalino,
Administrator, Rural Utilities Service.
[FR Doc. 2014-06621 Filed 3-25-14; 8:45 am]
BILLING CODE P