[Federal Register Volume 87, Number 124 (Wednesday, June 29, 2022)]
[Rules and Regulations]
[Pages 38639-38645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13857]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Parts 1710, 1735, 1737, 1738, 1739, 1740, 1774, 1775, 1776, 
1777, 1778, 1780, 1783, 1942, 1980, 3570, 4274, 4279, 4280, 4284, 
4288, 4290, and 5001

[Docket No. RHS-22-Agency-0013]


Rural Development Policy on Exclusion of Populations

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

ACTION: Final rule.

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SUMMARY: The Rural Housing Service, Rural Business-Cooperative Service, 
and Rural Utilities Service, agencies in the United States Department 
of Agriculture (USDA) Rural Development Mission area, are issuing a 
final rule to implement the exclusion of certain populations from the 
definition of ``Rural area.'' The rule updates the definition of 
``Rural area'' for every Rural Development program using the 
Consolidated Farm and Rural Development Act (CONAct) definition to 
conform to the revision to the statutory definition in the 2018 Farm 
Bill.

DATES: This rule is effective June 29, 2022.

FOR FURTHER INFORMATION CONTACT: John Delaney, Senior Advisor, Rural 
Development Innovation Center, USDA, 202-720-9705 or 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The Consolidated Farm and Rural Development Act (CON Act) and the 
Rural Electrification Act (RE Act) authorize USDA assistance programs 
for agriculture and rural development in America's rural areas. Section 
6301 of the Agriculture Improvement Act of 2018 (2018 Farm Bill) allows 
for the exclusion of certain prison and military populations from the 
definition of rural area contained in the CON Act and used in the RE 
Act.
    This rule updates the definition of ``Rural area'' to adopt the 
statutory definition provided in the 2018 Farm Bill for affected 
programs that have not already been updated. Section 6301 of the Farm 
Bill amends the rural definition in Section 343(a)(13) of the Con Act 
and excludes the following from rural area population counts: (1) 
individuals incarcerated on a long-term or regional basis, and (2) the 
first 1,500 individuals who reside in housing located on a military 
base
    Rural Development has updated its eligibility mapping tools to 
include areas that are now eligible under the revised statutory 
definition. Notwithstanding those updates, any community or member of 
the community who believes that their community should be included may 
contact the individual identified in the FOR FUTHER INFORMATION CONTACT 
section of this rule.
    The Administrative Procedures Act exempts from prior notice any 
actions ``relating to agency management or personnel or to public 
property, loans, grants, benefits, or contracts'' (5 U.S.C. 553(b)(A)): 
therefore, Rural Development is issuing this action as a final rule.

Authority

    The authority for this final rule comes from the Agricultural 
Improvement Act of 2018, Public Law 115-334, sec. 6301 (2018) (2018 
Farm Bill) and applies to all programs under the Con Act and RE Act.

Executive Order 12372--Intergovernmental Consultation

    This final rule is not subject to the requirements of Executive 
Order 12372, ``Intergovernmental Review,'' as implemented under USDA's 
regulations at 2 CFR part 415, subpart C, because this final rule 
provides general guidance on population exclusions as a whole. 
Applications for Agency programs will be reviewed individually under 
Executive Order 12372 as required by program procedures.

Executive Order 12866--Classification

    This final rule is not subject to the provisions of Executive Order 
12866 because it adopts statutory language that instructs the agency on 
how to qualify eligible projects, therefore, it has not been reviewed 
by the Office of Management and Budget (OMB) under Executive Order 
12866.

Executive Order 12988--Civil Justice Reform

    This final rule has been reviewed under Executive Order 12988. In 
accordance with this final rule: (1) unless otherwise specifically 
provided, all State and local laws that conflict with this rule will be 
preempted; (2) no retroactive effect will be given to this rule except 
as specifically prescribed in the rule; and (3) administrative 
proceedings of the National Appeals Division of the Department of 
Agriculture (7 CFR part 11) must be exhausted before bringing suit in 
court that challenges action taken under this rule.

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. This final 
rule does not impose substantial direct compliance costs on State and 
local governments; therefore, consultation with States is not required.

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 final 
rule as not a major rule, as defined by 5 U.S.C. 804(2).

National Environmental Policy Act

    This rule has been reviewed in accordance with 7 CFR part 1970, 
Subpart A, ``Environmental Policies.'' Rural Development 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 of 1969, Public Law 91-190, 
an Environmental Impact Statement is not required.

[[Page 38640]]

Regulatory Flexibility Act

    The final rule has been reviewed with regard to the requirements of 
the Regulatory Flexibility Act (5 U.S.C. 601-612). The undersigned has 
determined and certified by signature on this document that this rule 
will not have a significant economic impact on a substantial number of 
small entities since this rulemaking action does not involve a new or 
expanded program nor does it require any more action on the part of a 
small business than required of a large entity.

Unfunded Mandate Reform Act (UMRA)

    Title II of the UMRA, Public Law 104-4, establishes requirements 
for Federal Agencies to assess the effects of their regulatory actions 
on State, local, and tribal Governments and on the private sector. 
Under section 202 of the UMRA, Federal Agencies generally must prepare 
a written statement, including cost-benefit analysis, for proposed and 
final rules with ``Federal mandates'' that may result in expenditures 
to State, local, or tribal Governments, in the aggregate, or to the 
private sector, of $100 million or more in any one year. When such a 
statement is needed for a rule, section 205 of the UMRA generally 
requires a Federal Agency to identify and consider a reasonable number 
of regulatory alternatives and adopt the least costly, more cost-
effective, or least burdensome alternative that achieves the objectives 
of the rule.
    This final rule contains no Federal mandates (under the regulatory 
provisions of title II of the UMRA) for State, local, and tribal 
Governments or for the private sector. Therefore, this final rule is 
not subject to the requirements of sections 202 and 205 of the UMRA.

Paperwork Reduction Act

    This final rule contains no reporting or recordkeeping provisions 
requiring Office of Management and Budget (OMB) approval under the 
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

E-Government Act Compliance

    Rural Development is committed to complying with the E-Government 
Act by promoting the use of the internet and other Information 
Technologies in order to provide increased opportunities for citizen 
access to Government information, services, and other purposes.

Programs Affected

    The programs affected by this regulation are listed in the 
Assistance Listing Catalog (formerly Catalog of Federal Domestic 
Assistance) under numbers:

10.752--Rural eConnectivity Pilot Program.
10.759--Special Evaluation Assistance for Rural Communities and 
Households (SEARCH).
10.760--Water & Waste Disposal System Systems for Rural Communities.
10.761--Technical Assistance and Training Grants.
10.762--Solid Waste Management Grants.
10.763--Emergency Community Water Assistance Grants.
10.770--Water & Waste Disposal Loan and Grants (Section 306C).
10.771--Rural Cooperative Development Grants.
10.766--Community Facilities Loans and Grants.
10.768--Business and Industry Loans.
10.850--Rural Electrification Loans and Loan Guarantees.
10.851--Rural Telephone Loans and Loan Guarantees.
10.854--Rural Economic Development Loans and Grants.
10.860--Rural Business Investment Program
10.862--Rural Decentralized Water Systems Grant Program.
10.863--Community Connect Grants.
10.864--Grant Program to Establish a Fund for Financing Water and 
Wastewater Projects.
10.865--Biorefinery Assistance Program.
10.867--Bioenergy Program for Advanced Biofuels.
10.868--Rural Energy for America Program.
10.870--Rural Microentrepreneur Assistance Program.
10.886--Rural Broadband Access Loan and Loan Guarantee Program.

Executive Order 13175, Consultation and Coordination With Indian Tribal 
Governments

    Executive Order 13175 imposes requirements on Rural Development in 
the development of regulatory policies that have tribal implications or 
preempt tribal laws. Rural Development has determined that this final 
rule does not have a substantial direct effect on one or more Indian 
tribe(s) or on either the relationship or the distribution of powers 
and responsibilities between the Federal Government and Indian tribes. 
Thus, this final rule is not subject to the requirements of Executive 
Order 13175. If tribal leaders are interested in consulting with Rural 
Development on this final rule, they are encouraged to contact USDA's 
Office of Tribal Relations or Rural Development's Native American 
Coordinator at: [email protected] to request such a consultation.

Civil Rights Impact Analysis

    Rural Development has reviewed this final 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 issuance of this Final Rule will neither adversely nor 
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.

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 
Mission Areas, agencies, staff 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.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; the USDA TARGET 
Center at (202) 720-2600 (voice and TTY); or the Federal Relay Service 
at (800) 877-8339.
    (1) To file a program discrimination complaint, a complainant 
should complete Form AD-3027, USDA Program Discrimination Complaint 
Form, which can be obtained online at https://www.ocio.usda.gov/document/ad-3027, from any USDA office, by calling (866) 632-9992, or 
by writing a letter addressed to USDA. The letter must contain the 
complainant's name, address, telephone number, and a written 
description of the alleged

[[Page 38641]]

discriminatory action in sufficient detail to inform the Assistant 
Secretary for Civil Rights (ASCR) about the nature and date of an 
alleged civil rights violation. The completed AD-3027 form or letter 
must be submitted to USDA by: 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) EMail: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

List of Subjects

7 CFR Part 1710

    Electric power, Grant programs--energy, Loan programs--energy, 
Reporting and recordkeeping requirements, Rural areas.

7 CFR Part 1735

    Loan programs--communications, Reporting and recordkeeping 
requirements, Rural areas, Telephone.

7 CFR Part 1737

    Loan programs--communications, Reporting and recordkeeping 
requirements, Rural areas, Telephone.

7 CFR Part 1738

    Fees, Loan programs--communications, Rural areas, 
Telecommunications, Telephone.

7 CFR Part 1739

    Grant programs--communications, Rural areas, Telecommunications, 
Telephone.

7 CFR Part 1740

    Broadband, Community development, Grant programs--communications, 
Loan programs--communications, Rural areas, Telecommunications.

7 CFR Part 1774

    Community development, Grant programs, Reporting and recordkeeping 
requirements, Rural areas, Waste treatment and disposal, Water supply.

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, 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 1777

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

7 CFR Part 1778

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

7 CFR Part 1780

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

7 CFR Part 1783

    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, Watersheds

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 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 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 4274

    Community development, Loan programs-business, Reporting and 
recordkeeping requirements, Rural areas

7 CFR Part 4279

    Community Development, Energy, Energy conservation, Fees, Grant 
programs, Loan programs-business, Loan programs-housing and community 
development, Renewable energy, Reporting and recordkeeping 
requirements, Rural areas

7 CFR Part 4280

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

7 CFR Part 4284

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

7 CFR Part 4288

    Administrative practice and procedure, Biobased products, Energy, 
Reporting and recordkeeping requirements

7 CFR Part 4290

    Community development, Government securities, Grant programs-
business, Reporting and recordkeeping requirements, Rural areas, 
Securities, Small businesses

7 CFR Part 5001

    Business and industry, Community facility, Energy efficiency 
improvement, Loan programs, Renewable energy, Rural areas, Rural 
development, Water and waste disposal.
    For the reasons set forth in the preamble, the Agency amends 7 CFR 
chapters XVII, XVIII, and XLII as follows:

PART 1710--GENERAL AND PRE-LOAN POLICIES AND PROCEDURES COMMON TO 
ELECTRIC LOANS AND GUARANTEES

0
1. The authority citation for part 1710 is revised to read as follows:


[[Page 38642]]


    Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.

Subpart A--General

0
2. Amend Sec.  1710.2 in paragraph (a) by revising the definition of 
Rural area to read as follows:


Sec.  1710.2  Definitions and rules of construction.

    (a) * * *
    Rural area means--
    (i) Any area of the United States, its territories and insular 
possessions (including any area within the Federated States of 
Micronesia, the Marshall Islands, and the Republic of Palau) other than 
a city, town, or unincorporated area that has a population of greater 
than 20,000 inhabitants;
    (ii) Any area within a service area of a borrower for which a 
borrower has an outstanding loan as of June 18, 2008, made under titles 
I through V of the Rural Electrification Act of 1936 (7 U.S.C. 901-
950bb). For initial loans to a borrower made after June 18, 2008, the 
``rural'' character of an area is determined at the time of the initial 
loan to furnish or improve service in the area; and
    (iii) Which excludes certain populations pursuant to 7 U.S.C. 
1991(a)(13)(H) and (I).
* * * * *

PART 1735--GENERAL POLICIES, TYPES OF LOANS, LOAN REQUIREMENTS--
TELECOMMUNICATIONS PROGRAM

0
3. The authority citation for part 1735 is revised to read as follows:

    Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.

Subpart A--General

0
4. Amend Sec.  1735.2 by revising the first sentence in the definition 
of Rural area to read as follows:


Sec.  1735.2  Definitions.

* * * * *
    Rural area means any area of the United States, its territories and 
insular possessions (including any area within the Federated States of 
Micronesia, the Republic of the Marshall Islands, and the Republic of 
Palau) not included within the boundaries of any incorporated or 
unincorporated city, village or borough having a population exceeding 
5,000 inhabitants, and which excludes certain populations pursuant to 7 
U.S.C. 1991(a)(13)(H) and (I). * * *
* * * * *

PART 1737--PRE-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND 
GUARANTEED TELECOMMUNICATIONS LOANS

0
5. The authority citation for part 1737 is revised to read as follows:

    Authority:  7 U.S.C. 901 et seq., 1921 et seq,. and 6941 et. 
seq.

Subpart A--General

0
6. Amend Sec.  1737.2 by revising the first sentence in the definition 
of Rural area to read as follows:


Sec.  1737.2  Definitions

* * * * *
    Rural area means any area of the United States, its territories and 
possessions (including any area within the Federated States of 
Micronesia, the Republic of the Marshall Islands, and the Republic of 
Palau) not included within the boundaries of any incorporated or 
unincorporated city, village or borough having a population exceeding 
5,000 inhabitants, and which excludes certain populations pursuant to 7 
U.S.C. 1991(a)(13)(H) and (I). * * *
* * * * *

PART 1738--RURAL BROADBAND LOANS/GRANT COMBINATIONS, AND LOAN 
GUARANTEES

0
7. The authority citation for part 1738 continues to read as follows:

    Authority: 7 U.S.C. 901 et seq.

Subpart A--General

0
8. Amend Sec.  1738.2 in paragraph (a) by revising paragraph (iii) of 
the definition for Rural area(s) to read as follows:


Sec.  1738.2   Definitions.

* * * * *
    Rural area(s) * * *
    (iii) Which excludes certain populations pursuant to 7 U.S.C. 
1991(a)(13)(H) and (I).
* * * * *

PART 1739--BROADBAND GRANT PROGRAM

0
9. The authority citation for part 1739 is revised to read as follows:

    Authority: 7 U.S.C. 901 et seq.

Subpart A--Community Connect Grant Program

0
10. Amend Sec.  1739.3 by revising the first sentence in paragraph (2) 
of the definition of Rural area to read as follows:


Sec.  1739.3  Definitions.

* * * * *
    Rural area * * *
    (2) An urbanized area contiguous and adjacent to a city or town 
that has a population of greater than 50,000 inhabitants, and which 
excludes certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) and 
(I). * * *
* * * * *

PART 1740--RURAL ECONNECTIVITY PROGRAM

0
11. The authority citation for part 1740 continues to read as follows:

    Authority: 7 U.S.C. 1981(b)(4), 7 U.S.C. 901 et seq., 7 U.S.C. 
950aaa et seq., and 7 U.S.C. 950cc.

Subpart A--General

0
12. Amend Sec.  1740.2 in paragraph (a) by revising the definition of 
Rural area to read as follows:


Sec.  1740.2  Definitions.

* * * * *
    Rural area means any area that is not located within:
    (i)(A) A city, town, or incorporated area that has a population of 
greater than 20,000 inhabitants; or
    (B) An urbanized area contiguous and adjacent to a city or town 
that has a population of greater than 50,000 inhabitants as defined in 
the Agency mapping tool.
    (ii) In determining a rural area, all areas shall exclude certain 
populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I).
* * * * *

PART 1774--SPECIAL EVALUATION ASSISTANCE FOR RURAL COMMUNITIES AND 
HOUSEHOLDS PROGRAM (SEARCH)

0
13. The authority citation for part 1774 continues to read as follows:

    Authority: 7 U.S.C. 1926(a)(2)(C).

Subpart A--General Provisions

0
14. Amend Sec.  1774.2 by revising the definition of Rural area to read 
as follows:


Sec.  1774.2  Definitions.

* * * * *
    Rural area. For the purposes of this SEARCH program, any 
communities in a city, town, or unincorporated area with populations of 
2,500 or fewer inhabitants, according to the most recent decennial 
Census of the United States (decennial Census), and which excludes 
certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I).
* * * * *

[[Page 38643]]

PART 1775--TECHNICAL ASSISTANCE GRANTS

0
15. 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 A--General Provisions

0
16. Amend Sec.  1775.2 by revising the first sentence in the definition 
of Rural area to read as follows:


Sec.  1775.2  Definitions.

* * * * *
    Rural area. Any area not in a city or town with a population in 
excess of 10,000, according to the most recent decennial Census of the 
United States, and which excludes certain populations pursuant to 7 
U.S.C. 1991(a)(13)(H) and (I). * * *
* * * * *

PART 1776--RURAL DECENTRALIZED WATER SYSTEMS

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

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

Subpart A--General

0
18. Amend Sec.  1776.3 by revising the definition of Rural area to read 
as follows:


Sec.  1776.3  Definitions.

* * * * *
    Rural area means any area other than a city or town that has a 
population of greater than 50,000 inhabitants, the urbanized area 
contiguous and adjacent to such city or town, and which excludes 
certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I).
* * * * *

PART 1777--SECTION 306C WWD LOANS AND GRANTS

0
19. The authority citation for part 1777 continues to read as follows:

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

0
20. Amend Sec.  1777.4 by revising the first sentence in the definition 
of Rural areas to read as follows:


Sec.  1777.4  Definitions.

* * * * *
    Rural areas. Includes unincorporated areas and any city or town 
with a population not in excess of 10,000 inhabitants located in any of 
the 50 States, the Commonwealth of Puerto Rico, the Western Pacific 
Territories, Marshall Islands, Federated States of Micronesia, Republic 
of Palau, and the U.S. Virgin Islands, and which excludes certain 
populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I). * * *
* * * * *

PART 1778--EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANTS

0
21. 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
22. Amend Sec.  1778.4 by revising the first sentence in the definition 
of Rural areas to read as follows:


Sec.  1778.4   Definitions.

* * * * *
    Rural areas. Includes any area not in a city or town with a 
population in excess of 10,000 inhabitants located in any of the fifty 
States, the Commonwealth of Puerto Rico, the Western Pacific 
Territories, Marshall Islands, Federated States of Micronesia, Republic 
of Palau, and the U.S. Virgin Islands, and which excludes certain 
populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I). * * *
* * * * *

PART 1780--WATER AND WASTE LOANS AND GRANTS

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

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

Subpart A--General Policies and Requirements

0
24. Amend Sec.  1780.3 in paragraph (a) by revising the first sentence 
in the definition of Rural and rural area to read as follows:


Sec.  1780.3  Definitions and grammatical rules of construction.

    (a) * * *
    Rural and rural areas mean any area not in a city or town with a 
population in excess of 10,000 inhabitants, and which excludes certain 
populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I). * * *
* * * * *

PART 1783--REVOLVING FUNDS FOR FINANCING WATER AND WASTEWATER 
PROJECTS (REVOLVING FUND PROGRAM)

0
25. The authority citation for part 1783 continues to read as follows:

    Authority: 7 U.S.C. 1926(a)(2)(B).

Subpart A--General

0
26. Amend Sec.  1783.3 by revising the definition of Rural and rural 
area to read as follows:


Sec.  1783.3   What definitions are used in this regulation?

* * * * *
    Rural and rural area means a city, town or unincorporated area that 
has a population of no more than 10,000 inhabitants, and which excludes 
certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I). The 
population figure is obtained from the most recent decennial Census of 
the United States (decennial Census).
* * * * *

PART 1942--ASSOCIATIONS

0
27. 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
28. Amend Sec.  1942.17 by removing paragraph (b)(2)(iii) and 
redesignating paragraph (b)(2)(iv) as (b)(2)(iii) and revising it to 
read as follows:


Sec.  1942.17   Community facilities.

* * * * *
    (b) * * *
    (2) * * *
    (iii) For essential community facilities, the terms rural and rural 
area will not include any area in any city or town with a population in 
excess of 20,000 inhabitants, but excludes certain populations pursuant 
to 7 U.S.C. 1991(a)(13)(H) and (I). The population figure is obtained 
from the most recent decennial Census. If the applicable population 
figure cannot be obtained from the most recent decennial Census, RD 
will determine the applicable population figure based on available 
population data.
* * * * *

PART 1980--GENERAL

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

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989. Subpart E also issued 
under 7 U.S.C. 1932(a).

Subpart E--Business and Industrial Loan Program

0
30. Amend Sec.  1980.405 by revising the introductory text to read as 
follows:


Sec.  1980.405  Rural areas.

    The business financed with a B&I loan must be located in a rural 
area. Loans to borrowers with facilities located in both

[[Page 38644]]

rural and non-rural areas will be limited to the amount necessary to 
finance the facility located in the eligible rural area. Cooperatives 
that are headquartered in a non-rural area may be eligible for a B&I 
loan if the loan is used for a project or venture that is located in a 
rural area. Rural areas are any areas other than a city or town that 
has a population of greater than 50,000 inhabitants, the urbanized area 
contiguous and adjacent to such a city or town, as defined by the U.S. 
Bureau of the Census, and which exclude certain populations pursuant to 
7 U.S.C. 1991(a)(13)(H) and (I). For the purpose of this section:
* * * * *

PART 3570--COMMUNITY PROGRAMS

0
31. 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
32. Amend Sec.  3570.53 by revising the definition of Rural and rural 
area to read as follows:


Sec.  3570.53  Definitions.

* * * * *
    Rural and rural area. The terms ``rural'' and ``rural area'' mean a 
city, town, or unincorporated area that has a population of 20,000 
inhabitants or less and which excludes certain populations pursuant to 
7 U.S.C. 1991(a)(13)(H) and (I). The population figures are obtained 
from the most recent decennial Census of the United States (decennial 
Census).
* * * * *

PART 4274--DIRECT AND INSURED LOANS

0
33. The authority citation for part 4274 continues to read as follows:

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

Subpart D--Intermediary Relending Program (IRP)

0
34. Amend Sec.  4274.302 by revising the first sentence in the 
introductory text of the definition of Rural or rural area to read as 
follows:


Sec.  4274.302  Definitions.

* * * * *
    Rural or rural area. Any area of a State not in a city or town that 
has a population of more than 50,000 inhabitants, and which excludes 
certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I), 
according to the latest decennial census of the United States and not 
in the urbanized area contiguous and adjacent to a city or town that 
has a population of more than 50,000 inhabitants. * * *
* * * * *

PART 4279--GUARANTEED LOANMAKING

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

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 7 U.S.C. 310B(a)(2); 7 
U.S.C 8103.

Subpart B--Business and Industry Loans

0
36. Amend Sec.  4279.108 by revising paragraph (c)(1) to read as 
follows:


Sec.  4279.108  Eligible borrowers.

* * * * *
    (c) * * *
    (1) Rural areas are any area of a State other than a city or town 
that has a population of greater than 50,000 inhabitants and any 
urbanized area contiguous and adjacent to such a city or town, and 
which excludes certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) 
and (I). In making this determination, the Agency will use the latest 
decennial census of the United States.
* * * * *

Subpart C--Biorefinery, Renewable Chemical, and Biobased Product 
Manufacturing Assistance Loans

0
37. Amend Sec.  4279.202 by revising the definition of Rural or rural 
area to read as follows:


Sec.  4279.202  Definitions and abbreviations.

* * * * *
    Rural or rural area. As described in 7 U.S.C. 1991(a)(13)(A), (D), 
(H) and (I).
* * * * *

PART 4280--LOANS AND GRANTS

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

    Authority:  7 U.S.C. 1989(a); 7 U.S.C. 2008s.

Subpart A--Rural Economic Development Loan and Grant Programs

0
39. Amend Sec.  4280.3 by revising the definition of Rural area to read 
as follows:


Sec.  4280.3  Definitions.

* * * * *
    Rural area. This information will be taken from the most recent 
census data. Any area other than:
    (1) A city or town that has a population of greater than 50,000 
inhabitants;
    (2) The urbanized area contiguous and adjacent to such a city or 
town; and
    (3) Which excludes certain populations pursuant to 7 U.S.C. 
1991(a)(13)(H) and (I).
* * * * *

Subpart B--Rural Energy for America Program

0
40. Amend Sec.  4280.103 by revising the first sentence of the 
introductory text in the definition of Rural or rural area to read as 
follows:


Sec.  4280.103   Definitions.

* * * * *
    Rural or rural area. Any area of a State not in a city or town that 
has a population of more than 50,000 inhabitants, not in the urbanized 
area contiguous and adjacent to a city or town that has a population of 
more than 50,000 inhabitants, and excluding certain populations 
pursuant to 7 U.S.C. 1991(a)(13)(H) and (I). * * *
* * * * *

Subpart D--Rural Microentrepreneur Assistance Program

0
41. Amend Sec.  4280.302 in paragraph (a) by revising the first 
sentence of the introductory text in the definition of Rural or rural 
area to read as follows:


Sec.  4280.302  Definitions and abbreviations.

    (a) * * *
    Rural or rural area. Any area of a State not in a city or town that 
has a population of more than 50,000 inhabitants, not in the urbanized 
area contiguous and adjacent to a city or town that has a population of 
more than 50,000 inhabitants, and excluding certain populations 
pursuant to 7 U.S.C. 1991(a)(13)(H) and (I). * * *
* * * * *

PART 4284--GRANTS

0
42. The authority citation for part 4284 continues to read as follows:

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

Subpart A--General Requirements for Cooperative Services Grant 
Programs

0
43. Amend Sec.  4284.3 by revising the definition for Rural and rural 
area to read as follows:


Sec.  4284.3  Definitions.

* * * * *
    Rural and rural area--includes all the territory of a state that is 
not within the outer boundary of any city or town

[[Page 38645]]

having a population of 50,000 or more and the urbanized area contiguous 
and adjacent to such city or town, as defined by the U.S. Bureau of the 
Census using the most recent decennial Census of the United States, and 
which excludes certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) 
and (I).
* * * * *

PART 4288--PAYMENT PROGRAM

0
44. The authority citation for part 4288 continues to read as follows:

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

Subpart A--Repowering Assistance Payments to Eligible Biorefineries

0
45. Amend Sec.  4288.2 by revising the introductory text of the 
definition of Rural or rural area to read as follows:


Sec.  4288.2  Definitions.

* * * * *
    Rural or rural area. Any area of a State not in a city or town that 
has a population of more than 50,000 inhabitants according to the most 
recent decennial Census of the United States, not in the urbanized area 
contiguous and adjacent to a city or town that has a population of more 
than 50,000 inhabitants, and which excludes certain populations 
pursuant to 7 U.S.C. 1991(a)(13)(H) and (I), as well as any area that 
has been determined to be ``rural in character'' by the Under Secretary 
for Rural Development, or as otherwise identified in this definition.
* * * * *

PART 4290--RURAL BUSINESS INVESTMENT COMPANY (RBIC) PROGRAM

0
46. The authority citation for part 4290 continues to read as follows:

    Authority: 7 U.S.C.1989 and 2009cc et seq.

Subpart B--Definition of Terms Used in Part 4290

0
47. Amend Sec.  4290.50 by revising the introductory text of the 
definition of Rural area to read as follows:


Sec.  4290.50  Definition of terms.

* * * * *
    Rural area means any area of a State not in a city or town that has 
a population of more than 50,000 inhabitants according to the most 
recent decennial Census of the United States (decennial Census), not in 
the urbanized area contiguous and adjacent to a city or town that has a 
population of more than 50,000 inhabitants, and which excludes certain 
populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I), as well as any 
area that has been determined to be ``rural in character'' by the Under 
Secretary for Rural Development, or as otherwise identified in this 
definition.
* * * * *

PART 5001--GUARANTEED LOANS

0
48. The authority citation for part 5001 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1926(a); 7 U.S.C. 1932(a); and 
7 U.S.C. 8107.

Subpart A--General Provisions

0
49. Amend Sec.  5001.3 by revising the first sentence in the 
introductory text of the definition for Rural and rural area to read as 
follows:


Sec.  5001.3  Definitions.

* * * * *
    Rural and rural area means any area of a State not in a city or 
town that has a population of more than 50,000 inhabitants, not in the 
urbanized area contiguous and adjacent to a city or town that has a 
population of more than 50,000 inhabitants, and which excludes certain 
populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I). * * *
* * * * *

Justin Maxson,
Deputy Under Secretary, Rural Development.
[FR Doc. 2022-13857 Filed 6-28-22; 8:45 am]
BILLING CODE 3410-XV-P