PART 1940 - GENERAL

     Subpart J - Intergovernmental Review of Rural Development
                 Programs and Activities.


Table of Contents

Section		Page

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.

(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.

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

 1940.453  Scope.

(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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(Revision 11)
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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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(Revision 11)

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.
































2A
(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.

	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.

     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.  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.

(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.  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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(12-23-83)  SPECIAL PN

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.

     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.

(a)  Coordination with State governments.  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.  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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(12-23-83) SPECIAL PN

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.  Any pertinent information appropriate to this Subpart 
will be documented in the case file.

1940.461  Responsibilities.

     Rural Development will:

(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.

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

1940.463 - 1940.500  [Reserved]

Attachment:  Exhibit A


6

oOo

Exhibit A in PDF ONLY.