[Federal Register Volume 69, Number 219 (Monday, November 15, 2004)]
[Rules and Regulations]
[Pages 65517-65519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-25245]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
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Federal Register / Vol. 69, No. 219 / Monday, November 15, 2004 / 
Rules and Regulations

[[Page 65517]]



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: 
<a href="/cdn-cgi/l/email-protection#bcf0d5d2d8dd92efdfd3c8c8fcc9cfd8dd92dbd3ca"><span class="__cf_email__" data-cfemail="bdf1d4d3d9dc93eeded2c9c9fdc8ced9dc93dad2cb">[email protected]</span></a>.

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.

[[Page 65518]]

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 Business-Cooperative 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

[[Page 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.

0
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

0
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.


0
2. Amend Sec.  1775.4 by adding a definition for ``Statewide 
Nonmetropolitan Median Household Income'' in alphabetical order to read 
as follows:


Sec.  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

0
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.

0
4. Amend Sec.  1777.4 by adding a definition for ``Statewide 
Nonmetropolitan Median Household Income'' in alphabetical order to read 
as follows:


Sec.  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

0
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.

0
6. Amend Sec.  1778.4 by adding a definition for ``Statewide 
Nonmetropolitan Median Household Income'' in alphabetical order to read 
as follows:


Sec.  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

0
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.


0
8. Amend Sec.  1780.3 (a) by revising the definition for ``Statewide 
Nonmetropolitan Median Household Income'' to read as follows:


Sec.  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

0
9. The authority citation for part 1942 continues to read:

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


0
10. Amend subpart A by adding a new Sec.  1942.21 to read as follows:


Sec.  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

0
11. The authority citation for part 3570 continues to read:

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


0
12. Amend Sec.  3570.53 by revising the definition for ``State 
nonmetropolitan median household income'' to read as follows:


Sec.  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)

0
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.


0
14. Amend Sec.  4274.302 (a) by adding a definition for ``Statewide 
Nonmetropolitan Median Household Income'' in alphabetical order to read 
as follows:


Sec.  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]
BILLING CODE 3410-15-P


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