PART 1940 - GENERAL

Subpart J - Intergovernmental Review of Rural Development

Programs and Activities.

## Table of Contents

[Section]{.underline} [Page]{.underline}

§1940.451 Purpose. 1

§1940.452 Policy. 1

§1940.453 Scope. 1

§1940.454 Definitions. 3

§1940.455 Intergovernmental consultation system for

programs a State has elected to review. 3

\(a\) Notification. 3

\(b\) State review and response. 3

\(c\) State comments and recommendations. 3

§1940.456 Submission of State comments and

recommendations by applicant. 5

§§1940.457 - 1940.459 \[Reserved\] 5

§1940.460 Accommodation of State and local concerns. 5

\(a\) Coordination with State governments. 5

\(b\) Review of comments. 5

\(c\) Documentation. 5

§1940.461 Responsibilities. 5

§1940.462 Waivers. 6

§§1940.463 - 1940-500 \[Reserved 6

Exhibit A

(12-23-83) SPECIAL PN

RD Instruction 1940-J

PART 1940 - GENERAL

Subpart J - Intergovernmental Review of Rural Development Programs

and Activities

§ 1940.451 [Purpose]{.underline}.

\(a\) This subpart implements Executive Order 12372 issued July 14,
1982, titled "Intergovernmental Review of Federal Programs" and the
Departmental regulations, 7 CFR part 3015, subpart V (attached as
Exhibit A of this subpart). These regulations also implement applicable
provisions of section 401 of the Intergovernmental Cooperation Act of
1968 and section 204 of the Demonstration Cities and Metropolitan
Development Act of 1966.

\(b\) Executive Order 12372 is intended to foster an intergovernmental
partnership and a strengthened Federalism relying on State and local
processes for State and local government coordination and review of
proposed Federal financial assistance and direct Federal development.

§ 1940.452 [Policy]{.underline}.

The Agency will consider comments submitted by a State single point of
contact when making decisions on loan and grant applications.

§ 1940.453 [Scope]{.underline}.

\(a\) The Agency programs and activities that are subject to the
Executive Order and this subpart and that a State may choose to include
in their review process are as follows: (Revised 10-15-02, SPECIAL PN.)

\(1\) 10.405 - Farm Labor Housing Loans and Grants

\(2\) 10.411 - Rural Housing Site Loans & Self Housing Land Development
Loans

\(3\) 10.415 - Rural Rental Housing Loans

\(4\) 10.420 - Rural Self-Help Housing Technical Assistance Grants

\(5\) 10.427 - Rural Rental Assistance Payments

\(6\) 10.433 - Rural Preservation Grants

\(7\) 10.438 -- Rural Rental Housing Guaranteed Loans

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

DISTRIBUTION: WSDC Loan and Grant Making

General

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RD Instruction 1940-J

§ 1940.453(a) (Con.)

\(8\) 10.441 - Technical and Supervisory Assistance Grants

\(9\) 10.442 - Housing Application Packaging Grants

\(10\) 10.760 - Water and Waste Disposal Systems for Rural Communities

\(11\) 10.761 - Technical Assistance and Training Grants

\(12\) 10.762 - Solid Waste Management Grants

\(13\) 10.763 - Emergency Community Water and Assistance Grants

\(14\) 10.764 - Resource Conservation and Development Loans

\(15\) 10.765 - Watershed Protection and Flood Prevention Loans

\(16\) 10.766 - Community Facilities Loans

\(17\) 10.767 - Intermediary Relending Program

\(18\) 10.768 - Business and Industrial Loans

\(19\) 10.769 - Rural Development Grants (RBEG) (TDG)

\(20\) 10.770 - Water and Waste Disposal Loans and Grants

(Section 306C)

\(21\) 10.771 - Rural Cooperative Development Grants in subpart F of

Part 4284 of this title

\(22\) 10.773 -- Rural Business Opportunity Grants

\(23\) 10.854 - Rural Economic Development Loan and Grants

\(b\) Natural Resource and Conservation Service clearance. The Natural
Resource and Conservation Service (NRCS) is responsible for clearing
Watershed Protection and Flood Prevention and Resource Conservation and
Development plans. This clearance responsibility will apply to
individual projects within the Watershed Work Plans. NRCS may not have
obtained clearance of all projects mentioned in Resource Conservation
and Development Plans. When an application for a Watershed Protection
and Flood Prevention loan or Resource Conservation and Development loan
is received, the Rural Development State Director will determine from
the State Soil Conservationist whether the specific project has been
cleared and, if cleared, obtain a copy of any comments which may have
been made. If a specific project has not been cleared, the State
Director will request the applicant to obtain clearance in accordance
with this subpart.

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RD Instruction 1940-J

§ 1940.453 (Con.)

\(c\) Applications from Indian tribes. Applications from federally
recognized Indian tribes are not subject to the requirements of this
subpart. However, Indian tribes may voluntarily participate in the

review system explained in this Subpart and are encouraged to do so.
When a federally recognized Tribal Government has established a
mechanism for coordinating the activities of Tribal departments,
divisions, enterprises, or entities, Rural Development will, on request
of such Tribal Government transmitted through OMB, require that
applications for assistance be subject to review by the Tribal
coordinating mechanism as though it were a part of the consultation
process under this Subpart.

\(d\) Exclusion of disposition of property held by the Secretary,
transfers and assumptions. Applications associated with disposition of
property held by the Secretary, transfers and assumptions are excluded
from the provisions of this Subpart.

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(Revision 6)

(12-23-83) SPECIAL PN

§1940.453 (c) (Con.) RD Instruction 1940-J

review system explained in this Subpart and are encouraged to do so.
When a federally recognized Tribal Government has established a
mechanism for coordinating the activities of Tribal departments,
divisions, enterprises, or entities, Rural Development will, on request
of such Tribal Government transmitted through OMB, require that
applications for assistance be subject to review by the Tribal
coordinating mechanism as though it were a part of the consultation
process under this Subpart.

\(d\) Exclusion of disposition of property held by the Secretary,
transfers and assumptions. Applications associated with disposition of
property held by the Secretary, transfers and assumptions are excluded
from the provisions of this Subpart.

§1940.454 [Definitions]{.underline}.

For the purpose of this Subpart, \"State\" means that office or official
designated by any of the 50 States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana
Islands, Guam, American Samoa, the U.S. Virgin Islands, and the Trust
Territory of the Pacific Islands.

§1940.455 [Intergovernmental consultation system for programs a State
has elected to review]{.underline}.

Whenever appropriate, Rural Development personnel will inform any
prospective applicant of whether the State has adopted a process for the
program for a intergovernmental consultation system and the name of the
contact point.

\(a\) [Notification]{.underline}. Any prospective applicant for
financial assistance of a type listed in §1940.453 (a) will comply with
the State adopted consultation process prior to submission to Rural
Development of a preapplication or applications.

\(b\) [State review and response]{.underline}.

\(1\) If the applicant does not receive any comments from a State within
60 days of notifying the State of the proposed project, the application
may be submitted to Rural Development for consideration.

\(2\) Applications for the renewal or continuation of grants or
applications not submitted to, or acted upon, by Rural Development
within 1 year after completion of State review will be subject to
another review upon request of the State.

\(c\) [State comments and recommendations]{.underline}. Comments and
recommendations made through the intergovernmental review process are
for the purpose of assuring consideration of State and local government
views. The State\'s comments and/or recommendations on the following
factors as appropriate, will be of assistance in Rural Development\'s
evaluation of the proposed project:

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RD Instruction 1940-J

§1940.455 (c) (Con.)

\(1\) The extent to which the project is consistent with or contributes
to the fulfillment of goals of planning for the State, area, or
locality.

\(2\) The extent to which the project duplicates, runs counter to, or
needs to be coordinated with other projects or activities being carried
out in or affecting the area, or might be revised to increase its
effectiveness or efficiency in relationship to other State, area, or
local programs and projects.

\(3\) The extent to which the project contributes to the achievement of
State, areawide, and local objectives and priorities relating to natural
and human resources and economic and community development,
specifically:

\(i\) Appropriate land uses for housing, commercial, industrial,
governmental, institutional, and other purposes.

\(ii\) Wise development and conservation of natural resources, such as
land, water, minerals, and wildlife.

\(iii\) Balanced transportation systems, including highway, air, water,
pedestrian, mass transit, or other modes for the movement of people and
goods.

\(iv\) Adequate outdoor recreation and open space.

\(v\) Protection of areas of unique natural beauty, historical, and
scientific interest.

\(vi\) Properly planned community facilities, such as utilities
supplying power, water, and communications and providing for the safe
disposal of wastes.

\(vii\) Concern for high standards of design.

\(4\) The extent to which the project significantly affects the
environment, as provided under section 102 (2) (C) of the National
Environmental Policy Act of 1969. Specifically:

\(i\) The environmental impact of the project.

\(ii\) Any adverse environmental effects that cannot be avoided.

\(iii\) Alternatives to the project.

\(iv\) The relationship between local short-term uses bf the environment
and the maintenance and enhancement of long-term uses.

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§1940.455 (c) (4) (Con.) RD Instruction 1940-J

\(v\) Any irreversible and irretrievable commitments of resources that
would be involved in the project or action should it be implemented.

\(5\) The extent to which the project contributes to more balanced
patterns of settlement and delivery of services to all sectors of the
area population, including minority groups.

\(6\) Effects on energy resource supply and demand.

\(7\) The extent to which people or businesses will be displaced and the
availability of relocation resources.

\(8\) As provided under section 307(d) of the Coastal Zone Management
Act of 1972, in the case of a project located in the coastal zone, the
relationship of the project to the approved State program for the
management of the coastal zone and its consistency therewith.

§1940.456. [Submission of State comments and
recommendations]{.underline}.

The State single point of contact is required by Department Regulations
to submit any comments and recommendations to the Office of Finance and
Management (OPM), Room 143-W, Administration Building, Washington, D.C.
20250, Attention: E.O. 12372. The comments and recommendations will, in
turn, be forwarded by OFM to the appropriate Rural Development State
Office. State Directors are encouraged, therefore, to work closely with
the State single point of contact to obtain concurrently the comments
and recommendations sent to OFM.

§§1940.457 - 1940.459 \[Reserved\]

§1940.460 [Accommodation of State and local concerns]{.underline}.

\(a\) [Coordination with State governments]{.underline}. The State
Director will work closely with the State(s) in implementing the
provisions of E.O. 12372. State Directors will advise County Supervisors
and District Directors of the address of the State office or official
that has been designated as the single point of contact.

\(b\) [Review of comments]{.underline}. When the State comments on an
application, Rural Development will:

\(1\) Consider such comments during the agency\'s review of the
application, and

\(2\) In those situations where a State\'s comments cannot be
accommodated, Rural Development will provide the State with a timely
explanation of the basis for its decision. Rural Development will not
implement its decision for 15 days after the State receives the
explanation, unless unusual circumstances make the 15 day waiting period
not feasible. The

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RD Instruction 1940-J

§1940.460 (b) (Con.)

explanation will take the form of a written explanation and may be
supplemented by telephone, meeting or other telecommunication.

\(c\) [Documentation]{.underline}. Any pertinent information appropriate
to this Subpart will be documented in the case file.

§1940.461 [Responsibilities]{.underline}.

[Rural Development will]{.underline}:

\(a\) Receive Executive Order 12372 correspondence forwarded by OFM;

\(b\) Accept the State process recommendation or reach a mutually
agreeable solution with the parties preparing the recommendation
(accommodation), or provide the single point of contact with an
explanation for not accepting the recommendation of reaching a mutually
agreeable solution (nonaccommodation) when such recommendations are
transmitted under the State process through the single point of contact,

\(c\) Respond in writing to nonaccommodations under the Executive Order
and provide a courtesy copy of such responses to OFM;

\(d\) Delay implementation of a decision to nonaccommodate a State
process recommendation for at least 15 days after sending the
explanation to the single point of contact;

\(e\) Consider comments which do not constitute a State process
recommendation, in accordance with existing consultation requirements
such as those of the Intergovernmental Cooperation Act of 1968 and the
Demonstration Cities and Metropolitan Development Act of 1966;

\(f\) Review applicable State plans which have been simplified,
consolidated or substituted and accept such plans only if their contents
meet Federal requirements; and

\(g\) Keep records of all situations in which emergency waivers were
used and notify OFM of all instances of such waivers.

§1940.462 [Waivers]{.underline}.

In an emergency, the Secretary may make an exception to any provisions
within this subpart.

§§1940.463 - 1940.500 \[Reserved\]

Attachment: Exhibit A

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## oOo 

Exhibit A in PDF ONLY.