[Federal Register Volume 85, Number 81 (Monday, April 27, 2020)]
[Rules and Regulations]
[Pages 23208-23212]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08034]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Parts 1775, 1776, 1778, and 1784

[Docket No. RUS-20-WATER-0018]
RIN 0572-AC47


Implementation of Water and Environmental Provisions of the 
Agricultural Improvement Act of 2018

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Utilities Service (RUS) is issuing a final rule to 
implement statutory provisions of the Agriculture Improvement Act of 
2018 (2018 Farm Bill). The intent of this rule is to modify existing 
regulations to include the statutory revisions authorized by the 2018 
Farm Bill.

DATES: This final rule is effective April 27, 2020.

FOR FURTHER INFORMATION CONTACT: Jim Wehrer, Rural Development, U.S. 
Department of Agriculture, STOP, 1400 Independence Ave. SW, Washington, 
DC 20250-1550, Telephone number: (605) 660-0981.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866--Classification

    This final rule has been determined to be not significant for the 
purposes of Executive Order 12866, Regulatory Planning and Review, and 
therefore has not been reviewed by the Office of Management and Budget 
(OMB).

Executive Order 12988--Civil Justice Reform

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. The Agency 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 this 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 must be exhausted before an 
action against the Department or its agencies may be initiated.

Catalog of Federal Domestic Assistance and Executive Order 12372--
Intergovernmental Consultation

    The programs affected by this rule are listed in the Catalog of 
Federal Domestic Assistance under numbers 10.761, Technical Assistance 
and Training Grants, 10.763, Emergency Community Water Assistance 
Grants, and 10.862, Household Water Well System Grant Program, and 
10.760, Rural Alaskan Village Grants, and are subject to the provisions 
of Executive Order 12372 which requires intergovernmental consultation 
with State and local officials.
    The Catalog is available on the internet at https://beta.sam.gov. 
The SAM.gov website also contains a PDF file version of the Catalog 
that, when printed, has the same layout as the printed document that 
the Government Printing Office (GPO) provides. GPO prints and sells the 
CFDA to interested buyers. For information about purchasing the Catalog 
of Federal Domestic Assistance from GPO, call the Superintendent of 
Documents at 202-512-1800 or toll free at 866-512-1800, or access GPO's 
online bookstore at http://bookstore.gpo.gov.

Executive Order 13771

    The programs affected by this rulemaking are not subject to 
Executive Order 13771 as they are considered transfer programs and are 
exempt from the Executive Order.

[[Page 23209]]

Regulatory Flexibility Act Certification

    RUS has determined that this final rule will not have a significant 
economic impact on a substantial number of small entities, as defined 
in the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

Environmental Impact Statement

    This final rule has been examined under Agency environmental 
regulations at 7 CFR part 1970. The Administrator has determined that 
this is not a major Federal action significantly affecting the 
environment. Therefore, in accordance with the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.), an Environmental Impact 
Statement is not required.

Unfunded Mandates

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

E-Government Act Compliance

    RUS is committed to the E-Government Act, which requires Government 
agencies in general to provide the public the option of submitting 
information or transacting business electronically to the maximum 
extent possible.

Executive Order 13132, Federalism

    The policies contained in this final 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 
final rule impose substantial direct compliance costs on state and 
local governments. Therefore, consultation with the states is not 
required.

Executive Order 13175, Consultation and Coordination With Indian Tribal 
Governments

    This final rule has been reviewed in accordance with the 
requirements of Executive Order 13175, ``Consultation and Coordination 
with Indian Tribal Governments.'' Executive Order 13175 requires 
Federal agencies to consult and coordinate with tribes on a government-
to-government basis on policies that have tribal implications, 
including regulations, legislative comments or proposed legislation, 
and other policy statements or actions that have substantial direct 
effects on one or more Indian tribes, on the relationship between the 
Federal Government and Indian tribes or on the distribution of power 
and responsibilities between the Federal Government and Indian tribes. 
Rural Development has assessed the impact of this rule on Indian tribes 
and determined that this rule does not, to our knowledge, have tribal 
implications that require tribal consultation under E.O. 13175. If a 
tribe would like to engage in consultation with Rural Development on 
this rule, please contact Rural Development's Native American 
Coordinator at (720) 544-2911 or [email protected].

Civil Rights Impact Analysis

    Rural Development has reviewed this rule in accordance with USDA 
Regulation 4300-4, Civil Rights Impact Analysis,'' to identify any 
major civil rights impacts the rule might have on program participants 
on the basis of age, race, color, national origin, sex or disability. 
After review and analysis of the rule and available data, it has been 
determined that implementation of the rule is not likely to adversely 
or disproportionately impact very low, low and moderate income 
populations, minority populations, women, Indian tribes or persons with 
disability by virtue of their race, color, national origin, sex, age, 
disability, or marital or familial status. No major civil rights impact 
is likely to result from this rule.

Information Collection and Recordkeeping Requirements

    This final rule contains no new reporting or recordkeeping burdens 
under OMB control numbers 0572-0110, 0572-0112, 0572-0139, and 0572-
0150 that would require approval under the Paperwork Reduction Act of 
1995 (44 U.S.C. Chapter 35).

Non-Discrimination Statement

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, familial/parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior civil rights activity, in any program or activity conducted or 
funded by USDA (not all bases apply to all programs). Remedies and 
complaint filing deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the responsible 
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or 
contact USDA through the Federal Relay Service at (800) 877-8339. 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or 
write a letter addressed to USDA and provide in the letter all of the 
information requested in the form. To request a copy of the complaint 
form, call (866) 632-9992, submit your completed form or letter to USDA 
by:
    (1) Mail: U.S. Department of Agriculture Director, Office of 
Adjudication, 1400 Independence Avenue SW, Washington, DC 20250-9410;
    (2) Fax: (202) 690-7442; or
    (3) E-Mail: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Background

    Rural Development is a mission area within the USDA comprising the 
Rural Utilities Service, Rural Housing Service, and Rural Business/
Cooperative Service. Rural Development's mission is to increase 
economic opportunity and improve the quality of life for all rural 
Americans. Rural Development meets its mission by providing loans, loan 
guarantees, grants, and technical assistance through more than 40 
programs aimed at creating and improving housing, businesses, and 
infrastructure throughout rural America.
    The Agriculture Improvement Act of 2018 (2018 Farm Bill) made 
mandatory changes to several programs administered by the Water and 
Environmental Programs of the Rural Utilities Service, including: The 
Technical Assistance and Training (TAT) Grant Program; the Emergency 
and Imminent Community Water Assistance Grant (ECWAG) Program; the 
Household Water Well Systems (HWWS) Grant Program; and the Rural 
Alaskan Village Grant (RAVG) Program.
    The modifications to these regulations will allow RUS to fully 
implement changes to the programs required by the 2018 Farm Bill. These 
changes will also allow for expanded assistance to rural

[[Page 23210]]

communities to improve safe, reliable drinking water, and sanitary 
sewage treatment for households in rural areas.
    The Technical Assistance and Training (TAT) Grant Program (7 CFR 
part 1775) provides grants to enable qualified, private nonprofits to 
provide technical assistance and training to identify and evaluate 
solutions to water and waste problems; prepare applications for water 
and waste disposal loans and grants; and improve the operation and 
maintenance of existing water and waste facilities in eligible rural 
areas. The modifications include adding two additional program purposes 
focused on enhancing the long[hyphen]term sustainability of rural water 
and waste systems; addressing the contamination of drinking water and 
surface water supplies by emerging contaminants; and revising the 
priority factors to include providing technical assistance and training 
to address water supply systems or waste facilities that are 
unhealthful.
    The Emergency and Imminent Community Water Assistance Grants 
(ECWAG) Program (7 CFR part 1778) assists the residents of rural areas 
and small communities that have experienced a significant decline in 
quantity or quality of water, or in which such a decline is considered 
imminent, to obtain or maintain adequate quantities of water that meets 
the standards set by the Safe Drinking Water Act (42 U.S.C. 300f et 
seq.). The modifications include: Revising the project priority factors 
to include contamination of water supplies; extending the use of grant 
funds to include inadequate water supplies due to an event, including 
drought, severe weather, or contamination; and increasing the maximum 
grant amount to $1,000,000.
    The Household Water Well System (HWWS) Grant Program (7 CFR part 
1776) assists qualified nonprofits and tribes to create a revolving 
loan fund to increase access to clean, reliable water for households in 
eligible rural areas. Grant funds may be used to help a nonprofit 
create a revolving loan fund for eligible individuals who own and 
occupy a home in an eligible rural area, to construct, refurbish, or 
service individually-owned household water well systems. The 
modifications include: Changing the program name from Household Water 
Well Systems to Rural Decentralized Water Systems; adding a definition 
for Decentralized Water System; revising the income eligibility 
language in the definition of Eligible individual from 100 percent of 
the median nonmetropolitan household income for the State to 60% of the 
median nonmetropolitan household income for the State; modifying the 
loan amount terms for recipients; and including new eligibility 
requirements for receipt of a Decentralized Water System subgrant.
    The Rural Alaska Village Grant (RAVG) Program (7 CFR part 1784) 
provides assistance to rural or native Alaskan villages to provide for 
the development and construction of water and wastewater systems to 
improve the health and sanitation conditions in these villages through 
removal of dire sanitation conditions. A modification to the definition 
of ``Rural or Native Villages in Alaska'' will be made to bring it in 
line with section 306D of the CONACT.

List of Subjects

7 CFR Part 1775

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

7 CFR Part 1776

    Agriculture, Community development, Community facilities, Credit, 
Grant programs-housing and community development, Nonprofit 
organizations, Reporting and recordkeeping requirements, Rural areas, 
Waste treatment and disposal, Water pollution control, Water resources, 
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, and 
Watersheds.

7 CFR Part 1784

    Agriculture, Community development, Community facilities, Grant 
programs--housing and community development, Reporting and 
recordkeeping requirements, Rural areas, Sewage disposal, Waste 
treatment and disposal, Water pollution control, Water supply, 
Watersheds.

    Accordingly, for reasons set forth in the preamble, 7 CFR parts 
1775, 1776, 1778, and 1784 are amended as follows:

PART 1775--TECHNICAL ASSISTANCE GRANTS

0
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.

Subpart B--Grant Application Processing

0
2. Amend Sec.  1775.11 by revising paragraph (i) to read as follows:


Sec.  1775.11  Priority.

* * * * *
    (i) Projects primarily providing ``hands on'' technical assistance 
and training, i.e., on-site assistance as opposed to preparation and 
distribution of printed material, to communities with existing water 
and waste systems which are experiencing operation and maintenance or 
management problems; and/or provide technical assistance and training 
to water supply systems or waste facilities that are unhealthful (i.e., 
emerging contaminants detected in drinking water and surface water 
supplies.)
* * * * *

Subpart C--Technical Assistance and Training Grants

0
3. Amend Sec.  1775.36 by revising paragraph (e) and adding paragraphs 
(f) and (g) to read as follows:


Sec.  1775.36  Purpose.

* * * * *
    (e) Identify options to enhance the long-term sustainability of 
rural water and waste systems, including operational practices, revenue 
enhancements, partnerships, consolidation, regionalization, or contract 
services.
    (f) Address the contamination of drinking water and surface water 
supplies by emerging contaminants, including per- and polyfluoroalkyl 
substances.
    (g) Pay the expenses associated with providing the technical 
assistance and/or training authorized in paragraphs (a) through (f) of 
this section.

PART 1776--RURAL DECENTRALIZED WATER SYSTEMS

0
4. The authority citation for part 1776 continues to read as follows:

    Authority:  7 U.S.C. 1926e.


0
5. Revise the heading to part 1776 to read as set forth above:

PART 1776--RURAL DECENTRALIZED WATER SYSTEMS

* * * * *

PART 1776--[AMENDED]

0
6. In part 1776, revise all references to ``Household Water Well 
System'' to read

[[Page 23211]]

``Decentralized Water System'' and the acronym ``HWWS'' to read 
``DWS''.

Subpart A--General

0
7. Revise Sec.  1776.1 to read as follows:


Sec.  1776.1  Purpose.

    This part sets forth the policies and procedures for Rural 
Utilities Service making grants to private nonprofit organizations for 
the purpose of providing loans and subgrants to eligible individuals 
for the construction, refurbishing, and servicing of individually owned 
household water well systems and individually owned decentralized 
wastewater systems in rural areas that are or will be owned by the 
eligible individuals.

0
8. In Sec.  1776.3:
0
a. Amend the definition of Eligible individual by removing the term 
``100 percent'' in the first sentence and adding in its place ``60 
percent'';
0
b. Add the definitions of ``Contamination'', ``Decentralized Water 
System'', ``Septic System'', and ``Subgrants''; and
0
c. Remove the definitions of ``HWWS'', ``HWWS grant'', and ``HWWS 
loan.''
    The additions read as follows:


Sec.  1776.3  Definitions

* * * * *
    Contamination means any physical, chemical, biological, or 
radiological substance of matter in water, either exceeding or having 
potential to exceed State or Federal standards.
* * * * *
    Decentralized Water System (DWS) means either a household water 
well or a septic system. This definition also includes decentralized 
wastewater systems which are onsite or clustered systems used to 
collect, treat, and disperse or reclaim wastewater from a small 
community or service area.
* * * * *
    Septic System means systems designed to treat wastewater from 
household plumbing fixtures through both natural and technological 
processes.
* * * * *
    Subgrants means a grant awarded to a decentralized water system 
owner in order to refurbish or replace a well or septic system.
* * * * *

Subpart B--DWS Grants

0
9. Amend Sec.  1776.10 by revising paragraph (b) to read as follows:


Sec.  1776.10  Grant agreement.

* * * * *
    (b) The grantee or RUS may initiate an amendment or modification to 
the grant agreement to provide for a loan limit up to $15,000. No 
change in the grant agreement requested by the grant recipient will be 
effective unless approved in writing by RUS.

0
10. Amend Sec.  1776.12 by revising the section heading and paragraph 
(a) and adding paragraphs (d) and (e) to read as follows:


Sec.  1776.12  Use of DWS Grant proceeds.

    (a) Except as otherwise provided in the next paragraph. The DWS 
grant process shall be used solely for the purpose of providing loans 
to eligible individuals for the construction, refurbishing, and 
servicing of individual decentralized water systems in rural areas that 
are or will be owned by the eligible individuals.
* * * * *
    (d) In the event of ground well water contamination, the Secretary 
shall allow a loan or subgrant to be made with grant funds under this 
section for the installation of water treatment where needed beyond the 
point of entry, with or without the installation of a new water well 
system.
    (e) Any entities responsible for fouling a drinking water supply 
are not eligible to be the recipients of an award for this program.

Subpart C--DWS Loans

0
11. Amend Sec.  1776.15 by revising paragraph (a)(3) and by adding 
paragraphs (d) and (e) to read as follows:


Sec.  1776.15  Terms of loans.

* * * * *
    (a) * * *
    (3) Shall not exceed $15,000 for each water well system or 
decentralized wastewater system described in Sec.  1776.1.
* * * * *
    (d) The Agency will determine the maximum subgrant limit for each 
DWS applicant.
    (e) The applicant will determine subgrant funding levels to 
individual subgrantees based on established criteria described in the 
workplan.

PART 1778--EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANTS

0
12. 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.


0
13. Amend Sec.  1778.3, by revising the section heading to read as 
follows:


Sec.  1778.3  Purpose.

* * * * *

0
14. Amend Sec.  1778.4 by adding a definition of Contamination to read 
as follows:


Sec.  1778.4  Definitions.

* * * * *
    Contamination, Any physical, chemical, biological, or radiological 
substance of matter in water, either exceeding or having potential to 
exceed State or Federal standards.
* * * * *

0
15. Amend Sec.  1778.6 by redesignating paragraph (b) as paragraph (c) 
and adding a new paragraph (b) to read as follows:


Sec.  1778.6  Eligibility.

* * * * *
    (b) Any entities responsible for willfully or purposely fouling a 
drinking water supply are not eligible to be the recipients of an award 
under this program.
* * * * *

0
16. Amend Sec.  1778.7 by redesignating paragraph (d)(6) as paragraph 
(d)(7) and adding a new paragraph (d)(6) to read as follows:


Sec.  1778.7  Project priority.

* * * * *
    (d) * * *
    (6) Contamination. The project will address the contamination that 
poses a threat to human health or the environment and was caused by 
circumstances beyond the control of the applicant--10 points.
* * * * *

0
17. Amend Sec.  1778.9 by revising paragraph (k) to read as follows:


Sec.  1778.9  Uses.

* * * * *
    (k) Provide potable water to communities through means other than 
those covered above for no more than 120 days when a more permanent 
solution is not feasible in a shorter time frame. Where drinking water 
supplies are inadequate due to an event, including drought, severe 
weather, or contamination, potable water may be provided for a period 
of time, not to exceed an additional 120 days to protect public health.

0
18. Amend Sec.  1778.10 by revising the section heading to read as 
follows:


Sec.  1778.10  Restrictions on use of grant funds.

* * * * *
0
19. Amend Sec.  1778.11 by revising paragraph (a) to read as follows:

[[Page 23212]]

Sec.  1778.11  Maximum grants.

    (a) Grants up to $1,000,000 may be made to alleviate a significant 
decline in quantity or quality of water available to a rural area that 
occurred within two years of filing an application with the Agency, or 
to attempt to avoid a significant decline that is expected to occur 
during the twelve month period following the filing of an application.
* * * * *

PART 1784--RURAL ALASKAN VILLAGE GRANTS

0
20. The authority citation for part 1784 continues to read as follows:

    Authority:  7 U.S.C. 1926d.

Subpart A--General Provisions.

0
21. Revise Sec.  1784.1 to read as follows:


Sec.  1784.1  Purpose.

    This part sets forth the policies and procedures that will apply 
when the Rural Utilities Service (RUS) makes grants under the Rural 
Alaska Village Grant (RAVG) program (7 U.S.C. 1926d) to native villages 
in Alaska. The grants will be provided directly to a native village or 
jointly with either The State of Alaska, Department of Environmental 
Conservation (DEC) or The Alaska Native Tribal Health Consortium 
(ANTHC) for the benefit of native villages in Alaska.

0
22. Amend Sec.  1784.2 by removing the definition of ``Rural or Native 
Villages in Alaska'' and adding, in alphabetical order, the definition 
of ``Native Villages in Alaska'' to read as follows:


Sec.  1784.2  Definitions.

* * * * *
    Native Villages in Alaska means a Native village in Alaska which 
meets the definition of a village as defined in section 3 of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602).
* * * * *

Subpart B--Grant Requirements

0
23. Amend Sec.  1784.8 by revising paragraphs (a)(1) through (3), (b), 
and (d) to read as follows:


Sec.  1784.8  Eligibility.

    (a) * * *
    (1) Native village in Alaska; or
    (2) DEC on behalf of one or more recipient communities in Alaska; 
or
    (3) ANTHC on behalf of one or more recipient communities in Alaska.
    (b) Grants made to DEC or ANTHC may be obligated through a master 
letter of conditions for more than one recipient community; however, 
DEC or ANTHC together with each individual recipient community 
beneficiary shall execute a grant agreement on a project by project 
basis. Expenditures for projects will be based on specific scope and be 
requested on a project by project basis.
* * * * *
    (d) The median household income of the recipient community cannot 
exceed 110 percent of the statewide nonmetropolitan household income 
(SNMHI), according to US Census American Community Survey. Alaska 
census communities considered to be high cost isolated areas or ``off 
the road systems'' (i.e., communities that cannot be accessed by roads) 
may utilize up to 150 percent of SNMHI.

0
24. Amend Sec.  1784.10 by revising paragraph (a) introductory text to 
read as follows:


Sec.  1784.10  Eligible grant purposes.

* * * * *
    (a) To pay reasonable costs associated with providing potable water 
or waste disposal services to residents of recipient communities. 
Reasonable costs include construction, planning, pre-development costs 
(including engineering, design, and rights-of-way establishment), and 
technical assistance as further defined in paragraphs (a)(1) through 
(3) of this section:
* * * * *

Subpart C--Application Processing

0
25. Amend Sec.  1784.16 by revising paragraph (a) to read as follows:


Sec.  1784.16  General.

    (a) DEC and ANTHC utilize the National Indian Health Service, 
Sanitation Deficiency System (SDS) database as a comprehensive source 
of rural sanitation needs in Alaska. The database provides an inventory 
of the sanitation deficiencies including water, sewer, and solid waste 
facilities for existing homes. The sanitation deficiencies data are 
updated annually by DEC and ANTHC in consultation with the respective 
recipient communities. The SDS system is utilized in the RAVG program 
to help prioritize applications under the Village Safe Water Program.
* * * * *

0
26. Amend Sec.  1784.17 by revising paragraph (a) to read as follows:


Sec.  1784.17  Application for Planning grants.

    (a) Entities identified in Sec.  1784.8 may submit a completed 
Standard Form 424 to apply for funding to establish a Planning report 
for a recipient community.
* * * * *

0
27. Amend Sec.  1784.20 by revising paragraph (a) to read as follows:


Sec.  1784.20  Applications Accepted from DEC or ANTHC.

    (a) In cases where applications are accepted from DEC or ANTHC, one 
master application may be submitted covering recipient communities to 
be funded, however, each individual project will be broken out and (for 
construction grants) each will require its own PER, or PER-like 
document and Environmental Report.
* * * * *

Chad Rupe,
Administrator, Rural Utilities Service.
[FR Doc. 2020-08034 Filed 4-24-20; 8:45 am]
BILLING CODE 3410-15-P