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contains regulatory documents having general

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are keyed to and codified in the Code of

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Rules and Regulations Federal Register

65517

Vol. 69, No. 219

Monday, November 15, 2004

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

Rural Business-Cooperative Service 

Rural Utilities Service 

Farm Service Agency 

7 CFR Parts 1775, 1777, 1778, 1780, 

1942, 3570, and 4274 

RIN 0572–AB96 

Definition Clarification of State 

Nonmetropolitan Median Household 

Income (SNMHI)

AGENCY: Rural Housing Service, Rural 

Business-Cooperative Service, Rural 

Utilities Service, and Farm Service 

Agency, USDA.

ACTION: Final rule.

SUMMARY: The Rural Housing Service 

(RHS), Rural Business-Cooperative 

Service (RBS), and the Rural Utilities 

Service (RUS), agencies delivering the 

United States Department of 

Agriculture’s Rural Development 

housing, business, and utilities 

programs, amend their regulations to 

reflect the clarification of the definition 

of Statewide Nonmetropolitan Median 

Household Income, which shall be 

defined as ‘‘the median household 

income of the state’s nonmetropolitan 

counties and portions of metropolitan 

counties outside of cities, towns or 

places of 50,000 or more population.’’ 

This modification will enable Rural 

Development to more effectively serve 

communities across rural America. The 

loan and grant eligibility or priority 

scoring will be positively impacted for 

Rural Development Housing, Business, 

and Utilities Programs.

DATES: Effective Date:

7 CFR part 1775—November 15, 2004. 

7 CFR part 1777—December 15, 2004. 

7 CFR part 1778—November 15, 2004. 

7 CFR part 1780—November 15, 2004. 

7 CFR part 1942—November 15, 2004. 

7 CFR part 3570—November 15, 2004. 

7 CFR part 4274—November 15, 2004.

FOR FURTHER INFORMATION CONTACT:

Linda Scott, Loan Specialist, Water 

Programs Division, Rural Utilities 

Service, U.S. Department of Agriculture, 

1400 Independence Avenue, SW., Room 

2235–S, Stop 1570, Washington, DC 

20250–1570. Telephone (202) 720–9639. 

E-Mail: Linda.Scott@usda.gov.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

This rule has been determined to be 

not significant for the purposes of 

Executive Order 12866 and, therefore, 

has not been reviewed by the Office of 

Management and Budget (OMB). 

Catalog of Federal Domestic Assistance 

The programs described by this rule 

are listed in the Catalog of Federal 

Domestic Assistance Programs under 

numbers 10.760—Water and Waste 

Disposal Systems for Rural 

Communities; 10.761—Technical 

Assistance and Training Grants; 10.762 

‘‘Solid Waste Management Grants; 

10.763—Emergency Community Water 

Assistance Grants; 10.766—Community 

Facilities Loans and Grants; 10.767—

Intermediary Relending Program; and 

10.770—Water and Waste Disposal 

Loans and Grants (Section 306C). This 

catalog is available on a subscription 

basis from the Superintendent of 

Documents, the United States 

Government Printing Office, 

Washington, DC, 20402–9325, telephone 

number (202) 512–1800. 

Executive Order 12372 

The programs described by this rule 

that are subject to the requirements of 

Executive Order 12372, 

‘‘Intergovernmental Review of Federal 

Programs,’’ as implemented under 

USDA’s regulations at 7 CFR part 3015, 

are 10.760—Water and Waste Disposal 

Systems for Rural Communities; 

10.763—Emergency Community Water 

Assistance Grants; 10.766—Community 

Facilities Loans and Grants; 10.767—

Intermediary Relending Program; and 

10.770—Water and Waste Disposal 

Loans and Grants (Section 306C). 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. RUS has determined that this 

rule meets the applicable standards 

provided in section 3 of the Executive 

Order. In addition all State and local 

laws and regulations that are in conflict 

with this rule will be preempted; no 

retroactive effect will be given to the 

rule; and, in accordance with Section 

212(e) of the Department of Agriculture 

Reorganization Act of 1994 (7 U.S.C. 

6912(e)) administrative appeal 

procedures, if any are required, must be 

exhausted prior to initiating any action 

against the Department or its agencies. 

Regulatory Flexibility Act Certification 

This 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 of 

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. 

Information Collection and 

Recordkeeping Requirements 

This rule contains no new reporting 

or recordkeeping burdens under OMB 

control numbers 0572–0109, 0572–0110, 

0572–0112, 0572–0121, 0575–0015, 

0575–0173, and 0570–0021 that would 

require approval under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

chapter 35). 

National Environmental Policy Act 

Certification 

The Administrator of RUS has 

determined that this rule will not 

significantly affect the quality of the 

human environment as defined by the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321 et seq.). Therefore, 

this action does not require an 

environmental impact statement or 

assessment. 

Unfunded Mandates 

This rule contains no Federal 

mandates (under the regulatory 

provision 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 section 

202 and 205 of the Unfunded Mandates 

Reform Act of 1995. 

65518 Federal Register / Vol. 69, No. 219 / Monday, November 15, 2004 / Rules and Regulations 

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.

Background 

The purpose of this final rule is to 

create a standard definition of Statewide 

Nonmetropolitan Median Household 

Income (SNMHI) that is more 

representative of the rural areas in a 

State. With respect to Rural Utilities 

Service Water and Environmental 

Programs (WEP), the definition will be 

used in priority scoring for WEP 

Technical Assistance and Training 

Grants (7 CFR part 1775), Section 306C 

Water and Waste Disposal Loans and 

Grants (7 CFR part 1777), and 

Emergency and Imminent Community 

Water Assistance Grants (7 CFR part 

1778), and for loan and grant eligibility 

determinations for Water and Waste 

Loans and Grants (7 CFR part 1780). For 

the Rural Housing Service Community 

Facilities (CF) and Rural BusinessCooperative Service Intermediary 

Relending Programs (IRP), the standard 

definition will be used in priority 

scoring for the Community Facilities 

Loan Program (7 CFR part 1942), 

Community Facilities Grant Program (7 

CFR part 3570) and the Intermediary 

Relending Program (7 CFR part 4274). 

Standardizing the definition of SNMHI 

will allow for more efficient 

administration of these loan and grant 

programs consistent with the purposes 

of the Consolidated Farm and Rural 

Development Act (codified at 7 U.S.C. 

1921 et. seq.). With respect to 7 CFR 

parts 1775, 1778, and 1780, 1942, 3570 

and 4274, the rule will be effective upon 

publication in the Federal Register. For 

7 CFR part 1777, the rule will be 

effective 30 days after such publication. 

Pursuant to 44 U.S.C. 3504(e)(3), 31 

U.S.C. 1104(d) and Executive Order No. 

10253 (June 11, 1951), the Office of 

Management and Budget (OMB) defines 

Metropolitan Statistical Areas (MSA), 

Micropolitan Statistical Areas, 

Combined Statistical Areas, and New 

England City and Town Areas for use in 

Federal statistical activities. Once each 

decade, OMB performs a comprehensive 

review of statistical area standards and 

definitions, and publishes a list which 

includes counties where MSAs are 

located, with periodic updates between 

decennial censuses based on Census 

Bureau data. 

As a consequence of the 2000 census, 

the definitions of metropolitan areas 

were revised, resulting in larger 

geographical areas being considered 

metropolitan. These enlarged 

metropolitan areas include areas which 

are rural areas under the definition of 

‘‘rural areas’’ in section 343 (13) of the 

Consolidated Farm and Rural 

Development Act (7 U.S.C. 1991 et seq). 

The expansion of the generally more 

affluent metropolitan areas and their 

consequent removal from the 

computation of nonmetropolitan income 

in the SNMHI caused the SNMHI to 

increase proportionately less than the 

increase in median household income 

experienced by rural communities in 

the metropolitan areas. While the 

income characteristics of the rural 

communities in the metropolitan areas 

and their need for WEP, CF and IRP 

assistance may not have changed, the 

proportionately lesser increase in 

SNMHI makes it less likely that a rural 

community in a metropolitan area can 

successfully compete for such 

assistance. 

The inclusion of these rural areas 

within the enlarged metropolitan areas, 

and the consequent effect on the 

SNMHI, affects the eligibility of some 

WEP applicants for grant and lower 

interest rate loans. Based upon a review 

of applications on hand, and using the 

2000 census median household income 

data for nonmetropolitan counties, there 

was an approximately 25 percent 

reduction in the number of communities 

eligible for grants, and a 50 percent 

reduction in the number of communities 

eligible for reduced interest rates. 

Additionally, priority scoring for all 

WEP programs is affected by the 

comparison of an area’s income with the 

SNMHI. 

The inclusion of these rural areas 

within the enlarged metropolitan areas 

did not affect the eligibility of these 

rural areas for CF and IRP assistance. 

However, applicants for CF and IRP 

assistance (see 7 CFR 

1942,1(c)(2)(iii)(C)(2) for CF and 7 CFR 

4274.344(c) for IRP) receive priority 

points in application selection criteria 

based on a comparison of the area’s 

income with the SNMHI. The 

assignment of priority points may be 

negatively affected by the comparison of 

these rural areas within the enlarged 

metropolitan areas with the SNMHI. 

The SNMHI calculations resulting 

from this definition modification will 

greatly reduce the negative impacts to 

numerous rural communities, and will 

enable such communities to continue to 

be eligible and receive priority points 

for WEP, CF and IRP loan and grant 

programs. 

A proposed rule was published in the 

Federal Register on Monday, August 9, 

2004, at 69 FR 48174. The comment 

period lasted 30 days and ended on 

September 8, 2004. Five comments were 

received. Each of the five comments 

supported the definition clarification of 

State Nonmetropolitan Median 

Household Income (SNMHI). Four of 

these favorable comments were from 

local towns, and one was from an 

engineering and architectural firm.

List of Subjects 

7 CFR Part 1775 

Business and industry; Community 

development; Community facilities; 

Grant program—housing and 

community development; Reporting and 

recordkeeping requirements; Rural 

areas; Waste treatment and disposal; 

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 1942 

Community development; 

Community facilities; Loan program—

Housing and community development; 

Loan security; Reporting and 

recordkeeping requirements; Rural 

Areas; Waste treatment and disposal—

Domestic; Water supply—Domestic. 

7 CFR Part 3570 

Accounting; Administrative practice 

and procedure; Conflicts of interests; 

Environmental impact statements; 

Foreclosure; Fair Housing; Grant 

programs—Housing and community 

Federal Register / Vol. 69, No. 219 / Monday, November 15, 2004 / Rules and Regulations 65519

development; Loan programs—Housing 

and community development; Rural 

areas; Subsidies. 

7 CFR Part 4274 

Community development; Economic 

development; Loan programs—business; 

Reporting and recordkeeping 

requirements; Rural areas.

■ For reasons set forth in the preamble, 

RUS amends 7 CFR chapters XVII, XVIII, 

and XVIV as set forth below: 

CHAPTER XVII—RURAL UTILITIES 

SERVICE, DEPARTMENT OF 

AGRICULTURE

PART 1775—TECHNICAL 

ASSISTANCE AND TRAINING GRANTS

■ 1. The authority citation for part 1775 

continues to read as follows:

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

U.S.C. 1005.

■ 2. Amend § 1775.4 by adding a 

definition for ‘‘Statewide 

Nonmetropolitan Median Household 

Income’’ in alphabetical order to read as 

follows:

§ 1775.4 Definitions.

* * * * *

Statewide Nonmetropolitan Median 

Household Income (SNMHI). Median 

household income of the State’s 

nonmetropolitan counties and portions 

of metropolitan counties outside of 

cities, towns or places of 50,000 or more 

population.

PART 1777—SECTION 306C WWD 

LOANS AND GRANTS

■ 3. 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.

■ 4. Amend § 1777.4 by adding a 

definition for ‘‘Statewide 

Nonmetropolitan Median Household 

Income’’ in alphabetical order to read as 

follows:

§ 1777.4 Definitions.

* * * * *

Statewide Nonmetropolitan Median 

Household Income (SNMHI). Median 

household income of the State’s 

nonmetropolitan counties and portions 

of metropolitan counties outside of 

cities, towns or places of 50,000 or more 

population.

PART 1778—EMERGENCY AND 

IMMINENT COMMUNITY WATER 

ASSISTANCE GRANTS

■ 5. 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.

■ 6. Amend § 1778.4 by adding a 

definition for ‘‘Statewide 

Nonmetropolitan Median Household 

Income’’ in alphabetical order to read as 

follows:

§ 1778.4 Definitions.

* * * * *

Statewide Nonmetropolitan Median 

Household Income (SNMHI). Median 

household income of the State’s 

nonmetropolitan counties and portions 

of metropolitan counties outside of 

cities, towns or places of 50,000 or more 

population.

PART 1780—WATER AND WASTE 

LOANS AND GRANTS

Subpart A—General Policies and 

Requirements

■ 7. 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.

■ 8. Amend § 1780.3 (a) by revising the 

definition for ‘‘Statewide 

Nonmetropolitan Median Household 

Income’’ to read as follows:

§ 1780.3 Definitions and grammatical rules 

of construction. 

(a) * * * 

Statewide nonmetropolitan median 

household income means the median 

household income of the State’s 

nonmetropolitan counties and portions 

of metropolitan counties outside of 

cities, towns or places of 50,000 or more 

population.

* * * * *

CHAPTER XVIII—RURAL HOUSING 

SERVICE, RURAL BUSINESS—

COOPERATIVE SERVICE, RURAL 

UTILITIES SERVICE, AND FARM 

SERVICE AGENCY, DEPARTMENT OF 

AGRICULTURE

PART 1942—ASSOCIATIONS

Subpart A—Community Facility Loans

■ 9. The authority citation for part 1942 

continues to read:

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

■ 10. Amend subpart A by adding a new 

§ 1942.21 to read as follows:

§ 1942.21 Statewide Nonmetropolitan 

Median Household Income. 

Statewide Nonmetropolitan Median 

Household Income means the median 

household income of the State’s 

nonmetropolitan counties and portions 

of metropolitan counties outside of 

cities, towns or places, of 50,000 or 

more population.

CHAPTER XXXV—RURAL HOUSING 

SERVICE, DEPARTMENT OF 

AGRICULTURE

PART 3570—COMMUNITY PROGRAMS

Subpart B—Community Facilities 

Grant Program

■ 11. The authority citation for part 3570 

continues to read:

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

■ 12. Amend § 3570.53 by revising the 

definition for ‘‘State nonmetropolitan 

median household income’’ to read as 

follows:

§ 3570.53 Definitions.

* * * * *

State nonmetropolitan median 

household income. The median 

household income of the State’s 

nonmetropolitan counties and portions 

of metropolitan counties outside of 

cities, towns or places of 50,000 or more 

population.

* * * * *

CHAPTER XLII—RURAL BUSINESS—

COOPERATIVE SERVICE AND RURAL 

UTILITIES SERVICE, DEPARTMENT 

OF AGRICULTURE

PART 4274—DIRECT AND INSURED 

LOANMAKING

Subpart D—Intermediary Relending 

Program (IRP)

■ 13. The authority citation for part 4274 

continues to read:

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

note; 7 U.S.C. 1989.

■ 14. Amend § 4274.302 (a) by adding a 

definition for ‘‘Statewide 

Nonmetropolitan Median Household 

Income’’ in alphabetical order to read as 

follows:

§ 4274.302 Definitions and abbreviations. 

(a) * * *. 

Statewide Nonmetropolitan Median 

Household Income (SNMHI). Median 

household income of the State’s 

nonmetropolitan counties and portions 

of metropolitan counties outside of 

cities, towns or places of 50,000 or more 

population.

* * * * *

Dated: November 5, 2004. 

Gilbert G. Gonzalez, 

Under Secretary, Rural Development.

[FR Doc. 04–25245 Filed 11–12–04; 8:45 am] 

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