[Federal Register Volume 85, Number 184 (Tuesday, September 22, 2020)]
[Rules and Regulations]
[Pages 59388-59395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19825]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Parts 1779 and 1780

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service

Farm Service Agency

7 CFR Chapter XVIII

Rural Housing Service

7 CFR Parts 3570 and 3575

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Parts 4279 and 4280

[Docket No. RBS-20-BUSINESS-31]
RIN 0570-AB04


Strategic Economic and Community Development

AGENCY: Rural Business-Cooperative Service, Rural Housing Service, 
Rural Utilities Service, Farm Service Agency, Department of Agriculture 
(USDA).

ACTION: Final rule.

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SUMMARY: The Rural Business-Cooperative Service, Rural Housing Service, 
and Rural Utilities Service, of the Rural Development (RD) mission area 
within the U.S. Department of Agriculture (USDA), hereinafter 
collectively referred to as the Agency, is issuing this final rule to 
implement statutory provisions found in Section 6401 of the 
Agricultural Improvement Act of 2018 (``2018 Farm Bill'') that amends 
Section 379H of the Consolidated Farm and Rural Development Act. The 
intent of this rule is to amend the existing regulations governing 
Strategic Economic and Community Development (SECD) to implement 
Section 6401 of the 2018 Farm Bill. Additionally, conforming changes 
are being made to other regulations as a result of the aforementioned 
statutory changes. Finally, we are removing Farm Service Agency from a 
chapter in the CFR as they no longer use any of the parts under that 
chapter.

DATES: This final rule is effective September 22, 2020.

FOR FURTHER INFORMATION CONTACT: Greg Batson, Strategic Engagement, 
Rural Development Innovation Center, U.S. Department of Agriculture; 
[email protected]; (573) 239-2945.

SUPPLEMENTARY INFORMATION:

Background and Discussion

    The Agency administers a multitude of Federal programs for the 
benefit of rural America, ranging from housing and community facilities 
to infrastructure and business development. Its mission is to increase 
economic opportunity and improve the quality of life in rural 
communities by providing the leadership, infrastructure, capital, and 
technical support that enables rural communities to prosper. To achieve 
its mission, the Agency provides financial support (including direct 
loans, grants, and loan guarantees) and technical assistance.
    Section 379H Strategic and Economic Community Development of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2008v) supports 
rural communities by promoting regional economic and community 
development. Reservation of targeted funds are available for covered 
Rural Development programs to encourage regional economic and community 
development. Section 6401 of the 2018 Farm Bill amended Section 379H, 
Strategic Economic and Community Development of the

[[Page 59389]]

Consolidated Farm and Rural Development Act to state that projects must 
be part of both a multi-jurisdicational and multi-sectoral Strategic 
Community Invesment Plan in order to receive consideration for the set-
aside. Prior to the adoption of Section 6401 of the 2018 Farm Bill, 
projects only had to be part of a multi-jurisdictional plan in order to 
receive consideration for funding. Section 6401 of the Farm Bill 
provides RD an important mechanism to further our mission by leveraging 
projects that spur regional economic and community development while 
also focusing on multiple sectors. In addition, this will reward 
communities that demonstrate best practices for furthering sustainable 
regional and community prosperity by bringing together key local and 
regional stakeholders and using long-term planning that integrates 
targeted investments across communities and regions.

Discussion of the Rule

    A summary of changes to 7 CFR part 1980, subpart K, which implement 
Section 6401 of the 2018 Farm Bill follows:

Sec.  1980.1001--Purpose

    In accordance with Section 6401 of the 2018 Farm Bill, this section 
has been updated to include that qualified plans must be both multi-
jurisdictional and multi-sectoral, and the name of plans has been 
updated from ``Strategic Economic Development and Community Development 
Plans'' to ``Strategic Community Investment Plans.''

Sec.  1980.1002--Programs

    Previously, SECD was limited to certain Rural Development programs 
by statute. In accordance with Section 6401 of the 2018 Farm Bill, this 
regulation will include expansion of SECD to all programs covered by 
Title XIV of the Consolidated Farm and Rural Development Act (CONACT) 
or programs administered by the Secretary acting through the Rural 
Development mission area. This section is amended to update the list of 
eligible programs covered by Section 6401 of the 2018 Farm Bill and for 
which funds may be set-aside.

Sec.  1980.1004--Funding

    Section 6401 of the 2018 Farm Bill increased the reservation amount 
for funding from up to 10 percent to up to 15 percent. This section has 
been revised to reflect the increase in the reservation amount and to 
clarify the amendments. This section has also been updated to revise 
the date by which unused set-aside funds will be returned to the 
regular program account for use by other projects.
    In accordance with Section 379H of the CONACT (7 U.S.C. 2008v), all 
SECD reserved funds shall be reserved for the 1-year period beginning 
on the date on which funds were first made available, as determined by 
the Secretary. The Agency has determined that for non-annual and 
annually appropriated programs, SECD reserved funding will be available 
for obligation until deadlines established by covered programs. Covered 
programs' deadlines will be outlined in a SECD annual Federal Register 
publication. Reserved funds not obligated by September 30 will be 
reconciled according to applicable law. The Agency has settled on this 
process because program and procedural differences can present a 
hardship when one SECD obligation deadline is established. Covered 
programs have varying deadline and pooling dates. Further, covered 
programs have differing engineering and environmental review processes. 
Allowing programs to use their deadlines and/or pooling dates as the 
SECD funds obligation deadline offers flexibility in project review and 
award and provides adequate time for SECD reserved funds to be 
allocated to appropriate covered program accounts. In addition, 
programs are not mandated to hold SECD reserved funds until September 
30, but can convert SECD reserved funds to regular program for funding 
non-SECD projects.

Sec.  1980.1005--Definitions

    The definitions section has been revised to include additional 
definitions and revise others to conform to the statutory provisions of 
the Section 6401 of the 2018 Farm Bill, as follows:
    The term Adopted was revised to clarify the appropriate entities 
that may approve a Strategic Community Investment Plans in accordance 
with Section 6401 of the 2018 Farm Bill.
    The term Carried Out in a Rural Area was updated to remove the term 
``solely'' from the title of the definition and to clarify the meaning 
of the definition in accordance with Section 6401 of the 2018 Farm 
Bill.
    The terms Jurisdiction, Multi-Jurisdictional, Philanthropic, and 
Project were revised to provide clarity in accordance with Section 6401 
of the 2018 Farm Bill.
    The term Plan is revised to update the name to a Strategic 
Community Investment Plan and to clarify the requirements that must be 
addressed in a plan as per language in Section 6401 of the 2018 Farm 
Bill.
    New definitions for Multi-sectoral, Sector, and Strategic partners 
were added to implement changes from Section 6401 of the 2018 Farm 
Bill.

7 CFR 1980.1010--Project Eligibility

    Section 1980.1010 is amended to include terminology from Section 
6401 of the 2018 Farm Bill.

7 CFR 1980.1015--Applications

    The Agency has revised requirements of the application process to 
conform to statutory changes outlined in Section 6401 of the 2018 Farm 
Bill and to clarify application and plan requirements. Data collected 
on the application form has been removed from the list of information 
to be provided, and a reference to the required application form has 
been included. A plan should address multiple jurisdictions, and the 
plan should document that there is participation by multiple 
stakeholders. A plan should demonstrate leveraging of the applicable 
region's assets and should document monetary and non-monetary 
contributions from strategic partners.

7 CFR 1980.1020--Scoring

    The scoring section has been revised to align to Section 6401 of 
the 2018 Farm Bill.

7 CFR 1980.1025--Award Process

    The award process section has been revised to align to the 
requirements of Section 6401 of the 2018 Farm Bill.

7 CFR 1980.1026--Evaluation of Project Information

    7 CFR 1980.1026 is removed and reserved. Projects will be evaluated 
through the criteria established in the individual covered program's 
notice for which the award was received, and additional reporting 
specific to the objectives in each plan is not required.
    Additionally, conforming changes are made to 7 CFR parts 1779, 
1780, 1942, 3570, 3575, 4279, and 4280 have been included to address 
the change in terms of ``multi-sectoral'' and ``Strategic Community 
Investment Plans.''
    Finally, the Farm Service Agency is being removed from title 7, 
chapter XVIII of the CFR as they no longer use any of the parts under 
this chapter. At one time, chapter XVIII was used by Rural Business-
Cooperative Service, Rural Utilities Services, Rural Housing Service, 
and Farm Service Agency to codify policies and procedures. Due to 
reorganization within the Department of Agriculture, Farm Service 
Agency now codifies its policies and procedures in chapter VI of title 
7 of the CFR. Chapter XVIII will now only be used to codify

[[Page 59390]]

policies and procedures of the three agencies of the Rural Development 
Mission Area, Rural Business-Cooperative Service, Rural Utilities 
Services, and Rural Housing Service.

Catalog of Federal Domestic Assistance

    RD programs affected by this rulemaking are shown in the Catalog of 
Federal Domestic Assistance (CFDA) with numbers as indicated:

10.760--Water and Waste Disposal Systems for Rural Communities
10.766--Community Facilities Loans and Grants
10.768--Business and Industry Guaranteed Loan Program
10.351--Rural Business Development Grants
10.863--Community Connect Grant Program
10.855--Distance Learning and Telemedicine Loans and Grants
10.868--Rural Energy for America Program
10.446--Rural Community Development Initiative Grant
10.222--Tribal College Initiative Grants
10.854--Rural Economic Development Loans and Grants
10.767--Intermediary Relending Program
10.420--Mutual Self-Help Housing Technical Assistance Grants
10.411--Rural Housing Site Loans
10.433--Housing Preservation Grants
10.405--Farm Labor Housing Direct Loans and Grants
10.438--Multi-Family Housing Loan Guarantees
10.751--Rural Energy Savings Program (RESP)
10.352--Value-Added Producer Grants
10.862--Household Water Well System Grant Program
10.762--Solid Waste Management Grant

    All active CFDA programs can be found at https://beta.sam.gov/, 
which officially replaced CFDA.gov.

Executive Order 12866, Classification

    This rule has been determined to be non-significant and therefore 
was not reviewed by the Office of Management and Budget (OMB) under 
Executive Order 12866.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).

Executive Order 12372, Intergovernmental Review of Federal Programs

    The Programs listed in the Catalog of Federal Domestic Assistance 
under the following numbers are subject to the provisions of Executive 
Order 12372 which requires Intergovernmental Consultation with state 
and local officials:

10.760--Water and Waste Disposal Systems for Rural Communities
10.766--Community Facilities Loans and Grants
10.768--Business and Industry Guaranteed Loan Program
10.351--Rural Business Development Grants
10.411--Rural Housing Site Loans
10.433--Housing Preservation Grants
10.438--Multi-Family Housing Loan Guarantees

Executive Order 12988, Civil Justice Reform

    This rule has been reviewed under Executive Order 12988. 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 effort will be given to this rule.

National Environmental Policy Act

    This document has been reviewed in accordance with 7 CFR part 1970, 
subpart A, ``Environmental Policies.'' RD has determined that this 
action does not constitute a major Federal action significantly 
affecting the quality of the environment. In accordance with the 
National Environmental Policy Act (NEPA) of 1969, 42 U.S.C. 4321, et 
seq., an Environmental Impact Statement is not required.

Unfunded Mandates Reform Act

    This 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. Thus, this 
rule is not subject to the requirements of sections 202 and 205 of the 
Unfunded Mandates Reform Act of 1995.

Regulatory Flexibility Act

    Under section 605(b) of the Regulatory Flexibility Act, 5 U.S.C. 
605(b), RD certifies that this rule will not have a significant 
economic impact on a substantial number of small entities. The rule 
affects applicants across covered RD programs. Many program applicants 
are small businesses. While this rule will affect small entities, RD 
has determined that the economic impact of the rule on these small 
entities will not be significant.
    The rule does not make any changes to the programs from which funds 
will be reserved. The rule will require applicants to submit an 
additional form if seeking funding that is reserved for projects that 
support Strategic Community Investment Plans. Based on the data in the 
Paperwork Reduction Act (PRA) burden package, RD estimates that the 
cost to complete this form will, on average, be no more than $300. 
Therefore, this rule will not have a significant impact on small 
entities.

Executive Order 13132, Federalism

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

Executive Order 13175, Consultation and Coordination With Indian Tribal 
Governments

    This 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 the rule does not, to our knowledge, have 
tribal implications that require tribal consultation under E.O. 13175.
    Rural Development plans to use an inclusive definition of ``plans'' 
so that a wide range of plans that Indian Tribes currently have adopted 
and implemented may be used, as long as certain minimum standards are 
met. For instance, the plan must be multi-jurisdictional, multi-
sectoral and include:
     A variety of activities designed to facilitate the vision 
of a rural community for the future, including considerations for 
improving and expanding broadband services as needed;

[[Page 59391]]

     Participation by multiple stakeholders, including local 
and regional partners;
     Leverage of applicable regional resources;
     Investment from strategic partners, such as private 
organizations, cooperatives, other government entities, Indian Tribes 
and philanthropic organizations;
     Clear objectives with the ability to establish measurable 
performance metrics;
     Action steps for implementation; and
     Any other elements necessary to ensure that the plan 
results in a comprehensive and strategic approach to rural economic 
development, as determined by the Secretary.
    These minimum criteria do not pose any unique or additional 
implications or challenges for Tribes. The rule incentivizes additional 
planning, partnering and strategies between Tribes and other units of 
government/jurisdictions, such as other Indian Tribes, states, 
counties, cities, townships, towns, boroughs, etc. If a Tribe requests 
additional consultation, Rural Development will work with the Office of 
Tribal Relations to ensure meaningful consultation is provided where 
changes, additions and modifications identified herein are not 
expressly mandated by Congress.

Paperwork Reduction Act

    The information collection requirements contained in this 
regulation have been approved by OMB and have been assigned OMB control 
number: 0570-0068. This final rule contains no new reporting and 
recordkeeping requirements that would require approval under the 
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

E-Government Act Compliance

    RD is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies, to provide 
increased opportunities for citizens to access Government information 
and services electronically.

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 based 
on 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 will not adversely or 
disproportionately impact very low, low-, and moderate-income 
populations, minority populations, women or Indian Tribes 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.

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, and 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, family/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 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, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410;
    (2) Fax: (202) 690-7442; or
    (3) Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

List of Subjects

7 CFR Part 1779

    Loan programs, Waste treatment and disposal, Water supply.

7 CFR Part 1780

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

7 CFR Part 1806

    Agriculture, Flood insurance, Insurance, Loan programs--
agriculture, Loan programs--housing and community development, Low and 
moderate income housing, Rural areas.

7 CFR Part 1810

    Agriculture, Loan programs--agriculture, Loan programs--housing and 
community development, Low and moderate income housing, Rural areas.

7 CFR Part 1822

    Loan programs--housing and community development, Low and moderate 
income housing, Nonprofit organizations, Rural areas.

7 CFR Part 1900

    Administrative practice and procedure, Authority delegations 
(Government agencies), Conflict of interests, Government employees, 
Grant programs--agriculture, Grant programs--housing and community 
development, Loan programs--agriculture, Loan programs--housing and 
community development, Reporting and recordkeeping requirements, Rural 
areas.

7 CFR Part 1901

    Agriculture, Civil rights, Fair housing, Grant programs--
agriculture, Grant programs--housing and community development, Grant 
programs--Indians, Historic preservation, Indians, Intergovernmental 
relations, Loan programs--agriculture, Loan programs--housing and 
community development, Loan programs--Indians, Low and moderate income 
housing, Marital status discrimination, Minimum wages, Religious 
discrimination, Reporting and recordkeeping requirements, Rural areas, 
Sex discrimination.

7 CFR Part 1902

    Accounting, Banks, banking, Grant programs--agriculture, Grant 
programs--housing and community development, Loan programs--
agriculture, Loan programs--housing and community development, 
Reporting and recordkeeping requirements, Rural areas.

[[Page 59392]]

7 CFR Part 1910

    Agriculture, Credit, Grant programs--agriculture, Grant programs--
housing and community development, Loan programs--agriculture, Loan 
programs--housing and community development, Low and moderate income 
housing, Reporting and recordkeeping requirements, Rural areas.

7 CFR Part 1924

    Administrative practice and procedure, Agriculture, Claims, Credit, 
Grant programs--agriculture, Grant programs--housing and community 
development, Housing standards, Loan programs--agriculture, Loan 
programs--housing and community development, Low and moderate income 
housing, Manufactured homes, Reporting and recordkeeping requirements, 
Rural areas.

7 CFR Part 1925

    Agriculture, Loan programs--agriculture, Loan programs--housing and 
community development, Low and moderate income housing, Rural areas, 
Taxes.

7 CFR Part 1927

    Agriculture, Loan programs--agriculture, Loan programs--housing and 
community development, Low and moderate income housing, Rural areas.

7 CFR Part 1930

    Fair housing, Grant programs--housing and community development, 
Loan programs--housing and community development, Low and moderate 
income housing, Reporting and recordkeeping requirements, Rural areas.

7 CFR Part 1940

    Agriculture, Environmental protection, Flood plains, Grant 
programs--agriculture, Grant programs--housing and community 
development, Loan programs--agriculture, Loan programs--housing and 
community development, Low and moderate income housing, Reporting and 
recordkeeping requirements, Rural areas, Truth in lending.

7 CFR Part 1942

    Business and industry, Community facilities, Fire prevention, Grant 
programs--business, Grant programs--housing and community development, 
Grant programs--Indians, Indians, Loan programs--agriculture, Loan 
programs--housing and community development, Loan programs--Indians, 
Loan programs--natural resources, Reporting and recordkeeping 
requirements, Rural areas, Soil conservation, Waste treatment and 
disposal, Water supply, Watersheds.

7 CFR Part 1944

    Administrative practice and procedure, Aged, Cooperatives, Fair 
housing, Grant programs--housing and community development, Home 
improvement, Individuals with disabilities, Loan programs--housing and 
community development, Low and moderate income housing, Manufactured 
homes, Migrant labor, Rent subsidies, Reporting and recordkeeping 
requirements, Rural areas.

7 CFR Part 1948

    Coal, Community facilities, Grant programs--housing and community 
development, Radioactive materials, Reporting and recordkeeping 
requirements, Rural areas.

7 CFR Part 1950

    Accounting, Loan programs--agriculture, Loan programs--housing and 
community development, Military personnel, Rural areas.

7 CFR Part 1951

    Accounting, Agriculture, Claims, Community facilities, Credit, 
Disaster ssistance, Government employees, Grant programs--housing and 
community development, Housing, Income taxes, Loan programs--
agriculture, Loan programs--housing and community development, Low and 
moderate income housing, Reporting and recordkeeping requirements, 
Rural areas, Wages.

7 CFR Part 1955

    Agriculture, Drug traffic control, Government property, Loan 
programs--agriculture, Loan programs--housing and community 
development, Low and moderate income housing, Rural areas.

7 CFR Part 1956

    Accounting, Business and industry, Claims, Loan programs--
agriculture, Loan programs--business, Loan programs--housing and 
community development, Reporting and recordkeeping requirements, Rural 
areas.

7 CFR Part 1957

    Loan programs--housing and community development, Low and moderate 
income housing, Rural areas.

7 CFR Part 1962

    Agriculture, Bankruptcy, Drug traffic control, Government property, 
Loan programs--agriculture, Loan programs--housing and community 
development, Rural areas.

7 CFR Part 1965

    Accounting, Drug traffic control, Grant programs--housing and 
community development, Loan programs--agriculture, Loan programs--
housing and community development, Low and moderate income housing, 
Reporting and recordkeeping requirements, Rural areas.

7 CFR Part 1970

    Administrative practice and procedure, Buildings and facilities, 
Environmental impact statements, Environmental protection, Grant 
programs, Housing, Loan programs, Natural resources, Utilities.

7 CFR Part 1980

    Agriculture, Business and industry, Community facilities, Credit, 
Disaster assistance, Livestock, Loan programs--agriculture, Loan 
programs--business, Loan programs--housing and community development, 
Low- and moderate-income housing, Reporting and recordkeeping 
requirements, Rural areas.

7 CFR Part 2003

    Freedom of information, Organization and functions (Government 
agencies), Rural areas, Volunteers.

7 CFR Part 2018

    Administrative practice and procedure, Freedom of information.

7 CFR Part 2045

    Government employees, Volunteers.

7 CFR Part 3570

    Administrative practice and procedure, Fair housing, Grant 
programs--housing and community development, Housing, Low- and 
moderate-income housing, Reporting and recordkeeping requirements, 
Rural areas.

7 CFR Part 3575

    Loan programs--agriculture.

7 CFR Part 4279

    Loan programs--business, Reporting and recordkeeping requirements, 
Rural areas.

7 CFR Part 4280

    Business and industry, Energy, Grant programs--business, Loan 
programs--business, Rural areas.

    For the reasons set forth in the preamble, chapters XVII, XVIII, 
XXXV, and XLII of title 7 Code of Federal Regulations are amended as 
follows:

[[Page 59393]]

PART 1779--WATER AND WASTE DISPOSAL PROGRAMS GUARANTEED LOANS

0
1. The authority citation for part 1779 continues to read as follows:

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


0
2. Section 1779.51 is revised to read as follows:


Sec.  1779.51  Strategic economic and community development.

    Applicants with projects that support the implementation of 
Strategic Community Investment Plans are encouraged to review and 
consider 7 CFR part 1980, subpart K, which contains provisions for 
providing priority to projects that support the implementation of 
Strategic Community Investments Plans on a multi-jurisdictional and 
multi-sectoral basis.

PART 1780--WATER AND WASTE LOANS AND GRANTS

0
3. The authority citation for part 1780 continues to read as follows:

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

Subpart B--Loan and Grant Application Processing

0
4. Section 1780.34 is revised to read as follows:


Sec.  1780.34  Strategic economic and community development.

    Applicants with projects that support the implementation of 
Strategic Community Investment Plans are encouraged to review and 
consider 7 CFR part 1980, subpart K, which contains provisions for 
providing priority to projects that support the implementation of 
Strategic Community Investment Plans on a multi-jurisdictional and 
multi-sectoral basis.

0
5. Under the authority of 5 U.S.C 301, 7 U.S.C. 1926(a), 7 U.S.C. 
1932(a), 7 U.S.C. 1989, and 7 U.S.C. 8107, the heading of chapter XVIII 
is revised to read as follows:

CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE 
SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE

PART 1942--ASSOCIATIONS

0
6. The authority citation for part 1942 continues to read as follows:

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

Subpart A--Community Facility Loans

0
7. Section 1942.10 revised to read as follows:


Sec.  1942.10  Strategic economic and community development.

    Applicants with projects that support the implementation of 
Strategic Community Investment Plans are encouraged to review and 
consider 7 CFR part 1980, subpart K, which contains provisions for 
providing priority to projects that support the implementation of 
Strategic Community Investment Plans on a multi-jurisdictional and 
multi-sectoral basis.

Subpart C--Fire and Rescue and Other Small Community Facilities 
Projects

0
8. Section 1942.110 revised to read as follows:


Sec.  1942.110  Strategic economic and community development.

    Applicants with projects that support the implementation of 
Strategic Community Investment Plans are encouraged to review and 
consider 7 CFR part 1980, subpart K, which contains provisions for 
providing priority to projects that support the implementation of 
Strategic Community Investment Plans on a multi-jurisdictional and 
multi-sectoral basis.

PART 1980--GENERAL

0
9. The general authority citation for part 1980 continues to read as 
follows:

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

Subpart K--Strategic Economic and Community Development

0
10. Section 1980.1001 is revised to read as follows:


Sec.  1980.1001  Purpose.

    Projects that support the implementation of Strategic Community 
Investment Plans may receive priority funding from authorized programs 
found in Sec.  1980.1002. The purpose of this subpart is to describe 
the process by which applications will be reviewed and selected to 
receive priority funding.

0
11. Section 1980.1002 is revised to read as follows:


Sec.  1980.1002  Programs.

    The Agency may elect to reserve funds from one or more programs for 
projects that support Strategic Community Investment Plans. The 
programs chosen for a given fiscal year will be announced annually in a 
notice published in the Federal Register. The authorized programs are:
    (a) Community Facility Loans (7 CFR part 1942, subpart A).
    (b) Community Facilities Grant Program (7 CFR part 3570, subpart 
B).
    (c) Community Programs Guaranteed Loans (7 CFR part 3575, subpart 
A).
    (d) Water and Waste Disposal Programs Guaranteed Loans (7 CFR part 
1779).
    (e) Water and Waste Loans and Grants (7 CFR part 1780, subparts A, 
B, C, and D).
    (f) Business and Industry Guaranteed Loans (7 CFR part 4279, 
subparts A and B; 7 CFR part 4287, subpart B).
    (g) Rural Business Development Grants (7 CFR part 4280, subpart E).
    (h) Community Connect Grant (7 CFR part 1739).
    (i) Rural Community Development Initiative Grant (2 CFR part 200).
    (j) Tribal College Initiative Grants (7 CFR part 3570, subpart B).
    (k) Intermediary Relending Program (7 CFR part 4274).
    (l) Mutual Self-Help Housing Technical Assistance Grants (7 CFR 
part 1944, subpart I).
    (m) Rural Housing Site Loans (7 CFR part 1822, subpart G).
    (n) Housing Preservation Grants (7 CFR part 1994, subpart N; 7 CFR 
part 1970, subparts A and O).
    (o) Farm Labor Housing Direct Loans and Grants (7 CFR part 3560, 
subparts L and M).
    (p) Multi-Family Housing Loan Guarantees (7 CFR part 3565).
    (q) Distance Learning and Telemedicine Loans and Grants (7 CFR part 
1734).
    (r) Rural Energy for America Program (7 CFR part 4280, subpart B).
    (s) Rural Economic Development Loans and Grants (7 CFR part 4280).
    (t) Rural Energy Savings Program (7 U.S.C. 8107a).
    (u) Value-Added Producer Grants (7 U.S.C. 1632a).
    (v) Household Water Well System Grant Program (7 CFR part 1776).
    (w) Solid Waste Management Grant (7 CFR part 1775, subpart D).
0
12. Amend Sec.  1980.1004 by revising paragraphs (b) and (c) to read as 
follows:


Sec.  1980.1004  Funding.

* * * * *
    (b) Percentage of funds. The Agency will reserve up to 15 percent 
of the funds made available in a fiscal year to each program identified 
in Sec.  1980.1002. The percentage of funds to be set aside will be 
published in a notice in the Federal Register on an annual basis. The 
Agency may reserve the same or different percentages for each program 
in a single fiscal year.
    (c) Unobligated funds. In accordance with 7 U.S.C. 2008v, all 
Strategic

[[Page 59394]]

Economic and Community Development (SECD) reserved funds will be 
reserved for the 1-year period beginning on the date on which the funds 
were first made available. The Agency has determined that for both non-
annual and annually appropriated programs, SECD reserved funding will 
be available for obligation until dates established by covered programs 
as specified in a SECD annual Federal Register publication. Reserved 
funds in annual programs not obligated by September 30 will be 
reconciled according to applicable law.

0
13. In Sec.  1980.1005:
0
a. Revise the definition of ``Adopted;''
0
b. Remove the definition of ``Carried Out Solely in a rural area;''
0
c. Add the definition of ``Carried out in a rural area'' in 
alphabetical order;
0
d. Revise the definition of ``Jurisdiction'';
0
e. Remove the definition for ``Multi-Jurisdictional'' and add the 
definition for ``Multi-jurisdictional'' in its place;
0
f. Add the definition of ``Multi-sectoral'' in alphabetical order;
0
g. Revise the definitions of ``Philanthropic organization,'' ``Plan,'' 
and ``Project;'' and
0
h. Add the definitions of ``Sector,'' ``Stakeholder,'' and ``Strategic 
partners'' in alphabetical order.
    The revisions and additions read as follows:


Sec.  1980.1005  Definitions.

* * * * *
    Adopted means appropriate entity has, or entities have, officially 
approved the plan for implementation. The appropriate entity or 
entities will vary among plans and may be, for example, a governing 
body or planning board.
* * * * *
    Carried out in a rural area means either:
    (1) The entire project is physically located in a rural area; or
    (2) The beneficiaries of the service(s) provided through the 
project must either reside in a rural area (in the case of individuals) 
or be located in a rural area (in the case of entities).
* * * * *
    Jurisdiction means a unit of government or other entity with 
similar powers, such as a city, county, district, special purpose 
district, township, town, borough, parish, village, state, Indian 
tribe, etc.
    Multi-jurisdictional means more than one jurisdiction.
    Multi-sectoral means intentional collaboration between two or more 
sectors (i.e., utility, health, housing, community services, etc.) to 
accomplish goals and achieve outcomes in communities and regions.
    Philanthropic organization means an entity whose mission is to 
provide monetary, technical assistance, or other items of value for 
religious, charitable, community development, scientific, literary, or 
educational purposes.
    Plan means a Strategic Community Investment Plan illustrating:
    (1) A variety of activities designed to facilitate the vision of a 
rural community for the future including considerations for improving 
and expanding broadband services as needed;
    (2) Participation by multiple stakeholders, including local and 
regional partners;
    (3) Leverage of applicable regional resources;
    (4) Investment from strategic partners, such as private 
organizations, cooperatives, other government entities, Indian tribes, 
and philanthropic organizations;
    (5) Clear objectives with the ability to establish measurable 
performance metrics;
    (6) Action steps for implementation; and
    (7) Any other elements necessary to ensure that the plan results in 
a comprehensive and strategic approach to rural economic development, 
as determined by the Secretary.
    Project means the eligible proposed use(s) for which funds are 
requested as described in the application material submitted to the 
Agency for funding under the programs listed in Sec.  1980.1002.
    Sector means stakeholders from areas such as business, health, 
education, and/or workforce; or from organization types such as public, 
private, non-profit, and/or philanthropy.
    Stakeholder means an individual, group or organization with an 
interest in, or affected by, the plan.
    Strategic partner means entities such as private organizations, 
cooperatives, other government entities, Indian Tribes, and 
philanthropic organizations.

0
15. Amend Sec.  1980.1010 by revising paragraphs (b) and (c) to read as 
follows:


Sec.  1980.1010  Project eligibility.

* * * * *
    (b) The Project must be carried out in a rural area; and
    (c) The Project must support the implementation of a Strategic 
Community Investment Plans on a multi-jurisdictional and multi-sectoral 
basis.

0
16. Section 1980.1015 is revised to read as follows:


Sec.  1980.1015  Applications.

    In addition to the application material specific to the applicable 
program identified in Sec.  1980.1002, each applicant seeking funding 
under this subpart must provide the information specified in paragraphs 
(a) through (f) of this section.
    (a) A Strategic Economic and Community Development application form 
(Form RD 1980-88);
    (b) A description of the jurisdiction or jurisdictions in which the 
Plan is to be implemented;
    (c) Documentation that the Plan was developed through the 
collaboration of multiple stakeholders in the jurisdiction of the Plan, 
including the participation of combinations of stakeholders;
    (d) Documentation that the Plan demonstrates leveraging of the 
applicable region's assets to support the Plan;
    (e) Documentation indicating whether or not the Plan includes 
monetary or non-monetary contributions from strategic partners; and
    (f) Documentation that the Plan contains:
    (1) Clear, measurable performance objectives with action steps for 
implementation; and
    (2) The ability to track progress toward meeting the Plan's 
objectives.

0
17. Amend Sec.  1980.1020 by revising paragraphs (a) and (b) to read as 
follows:


Sec.  1980.1020  Scoring.

* * * * *
    (a) Program scoring. The Agency will score each application using 
the criteria for the applicable covered program, identified in Sec.  
1980.1002. The maximum number of points an application can receive 
under this paragraph (a) is based on the scoring criteria for the 
applicable program identified in Sec.  1980.1002, including any 
discretionary points that may be awarded.
    (b) SECD scoring. The Agency will score each application using the 
criteria identified in paragraphs (b)(1) and (2) of this section. The 
maximum number of points an application can receive under this 
paragraph (b) is 20 points.
    (1) Objectives of the plan. The Agency will score how the project 
supports achieving the objectives of a plan which are identified in 
paragraphs (b)(1)(i) through (iii). Applicants must supply sufficient 
documentation that demonstrates to the Agency the criteria identified 
in paragraphs (b)(1)(i) through (iii) of this section are met. The 
maximum score under this paragraph (b)(1) is 10 points.
    (i) If the project directly supports implementation of three or 
more of the plan's objectives, the application will receive 10 points.

[[Page 59395]]

    (ii) If the project directly supports implementation of two of the 
plan's objectives, the application will receive 5 points.
    (iii) If the project directly supports implementation of less than 
two of the plan's objectives, the application will receive no points.
    (2) Characteristics of a plan. The Agency will score the plan 
associated with a Project based upon the characteristics of the plan, 
which are identified in paragraphs (b)(2)(i) through (v) of this 
section. Applicants must supply sufficient documentation that 
demonstrates to the Agency the criteria identified in paragraphs 
(b)(2)(i) through (v) of this section are met. The maximum score under 
this paragraph (b)(2) is 10 points.
    (i) Variety of activities. If the plan contains a variety of 
activities which clearly show facilitation toward achieving the vision 
for the rural communities and/or region as expressed in the plan, two 
points will be awarded.
    (ii) Regional resources leverage. If the plan demonstrates an 
understanding of the applicable regional asset resources and indicates 
leveraging of those resources to support the plan, including cultural 
resources, natural resources, human resources, infrastructure, and 
financial resources, two points will be awarded.
    (iii) Strategic partner investments. If the Plan includes 
investments from strategic partners other than the U.S. Department of 
Agriculture, two points will be awarded.
    (iv) Participation by multiple stakeholders. If the plan provides 
evidence of the involvement of multiple stakeholders from multiple 
jurisdictions and representing multiple sectors in the preparation, 
implementation, monitoring and/or evaluation of the plan, Rural 
Development (RD) will award two points.
    (v) Objectives, performance measures, and action steps. If the plan 
contains clear, measurable objectives, the ability to track progress 
toward meeting the objectives and identifiable action steps for 
implementation, two points will be awarded.
* * * * *

0
18. Section 1980.1025 is revised to read as follows:


Sec.  1980.1025  Award process.

    (a) Unless RD indicates otherwise in a notice, the award process 
for the applicable program identified in Sec.  1980.1002 will be used 
to determine which Projects receive funding under this subpart.
    (b) Projects not receiving funding under this subpart are eligible 
to compete for funding under the applicable program identified in Sec.  
1980.1002. The scores for such Projects when competing for program 
funding will not include the score assigned to the application under 
Sec.  1980.1020(b).


Sec.  1980.1026  [Removed and Reserved]

0
19. Remove and reserve Sec.  1980.1026.

PART 3570--COMMUNITY PROGRAMS

0
20. The authority citation for part 3570 continues to read as follows:

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

Subpart B--Community Facilities Grant Program

0
21. Section 3570.71 revised to read as follows:


Sec.  3570.71  Strategic economic and community development.

    Applicants with projects that support the implementation of 
Strategic Community Investment Plans are encouraged to review and 
consider 7 CFR part 1980, subpart K, which contains provisions for 
providing priority to projects that support the implementation of 
Strategic Community Investment Plans on a multi-jurisdictional and 
multi-sectoral basis.

PART 3575--GENERAL

0
22. The authority citation for part 3575 continues to read as follows:

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

Subpart A--Community Program Guaranteed Loans

0
23. Section 3575.51 revised to read as follows:


Sec.  3575.51  Strategic economic and community development.

    Applicants with projects that support the implementation of 
Strategic Community Investment Plans are encouraged to review and 
consider 7 CFR part 1980, subpart K, which contains provisions for 
providing priority to projects that support the implementation of 
strategic community investment plans on a multi-jurisdictional and 
multi-sectoral basis.

PART 4279--GUARANTEED LOANMAKING

0
24. The authority citation for part 4279 continues to read as follows:

    Authority:  5 U.S.C. 301; and 7 U.S.C. 1989: and Public Law 116-
136, Division B, Title I.

Subpart B--Business and Industry Loans

0
25. Section 4279.162 revised to read as follows:


Sec.  4279.162  Strategic economic and community development.

    Applicants with projects that support the implementation of 
Strategic Community Investment Plans are encouraged to review and 
consider 7 CFR part 1980, subpart K, which contains provisions for 
providing priority to projects that support the implementation of 
Strategic Community Investment Plans on a multi-jurisdictional and 
multi-sectoral basis.

PART 4280--LOANS AND GRANTS

0
26. The authority citation for part 4280 continues to read as follows:

    Authority: 5 U.S.C. 301: 7 U.S.C. 940c and 7 U.S.C. 1932(c).

Subpart E--Rural Business Development Grants

0
27. Section 4280.428 revised to read as follows:


Sec.  4280.428  Strategic economic and community development.

    Applicants with projects that support the implementation of 
Strategic Community Investment Plans are encouraged to review and 
consider 7 CFR part 1980, subpart K, which contains provisions for 
providing priority to projects that support the implementation of 
Strategic Community Investment Plans on a multi-jurisdictional and 
multi-sectoral basis.

Bette B. Brand,
Deputy Undersecretary, Rural Development.

Richard Fordyce,
Administrator, Farm Service Agency.
[FR Doc. 2020-19825 Filed 9-21-20; 8:45 am]
BILLING CODE 3410-XV-P