Federal Register / Vol. 69, No. 235 / Wednesday, December 8, 2004 / Rules and Regulations 70877

which ended September 15, 2004. No 

comments were received. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

After consideration of all relevant 

material presented, including the 

Committee’s recommendation, and 

other information, it is found that 

finalizing the interim final rule, without 

change, as published in the Federal 

Register, (69 FR 50275, August 16, 

2004) will tend to effectuate the 

declared policy of the Act.

List of Subjects in 7 CFR Part 905

Grapefruit, Marketing agreements, 

Oranges, Reporting and recordkeeping 

requirements, Tangelos, Tangerines.

PART 905—ORANGES, GRAPEFRUIT, 

TANGERINES, AND TANGELOS 

GROWN IN FLORIDA

■ Accordingly, the interim final rule 

amending 7 CFR part 905 which was 

published at 69 FR 50275 on August 16, 

2004, is adopted as a final rule without 

change.

Dated: December 2, 2004. 

A.J. Yates, 

Administrator, Agricultural Marketing 

Service.

[FR Doc. 04–26861 Filed 12–7–04; 8:45 am] 

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Rural Utilities Service 

7 CFR Part 1775

RIN 0572–AB75

Technical Assistance Grants

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule.

SUMMARY: The Rural Utilities Service 

(RUS), an agency delivering the United 

States Department of Agriculture’s Rural 

Development Utilities Programs, 

amends the regulation utilized to 

administer the technical assistance grant 

programs. This action is necessary to 

separate the technical assistance and 

training grant and solid waste 

management grant programs for 

clarification purposes, and to bring the 

regulation in line with revisions to OMB 

circulars. Additionally, it eliminates the 

requirement that applicants submit a 

pre-application when applying for grant 

funds. This action also transfers grant 

processing and servicing from the 

National Office to Rural Development 

State Offices. The intended effect is to 

separate the technical assistance and 

solid waste management programs and 

to reduce regulatory burdens on 

applicants.

DATES: This rule is effective January 7, 

2005.

FOR FURTHER INFORMATION CONTACT:

Stephen Saulnier, 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) 690–2526. 

E–Mail: ssaulnie@rus.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). 

Executive Order 12372

This rule is excluded from the scope 

of Executive Order 12372, 

Intergovernmental Consultation, which 

may require consultation with State and 

local officials. See the final rule related 

notice titled, ‘‘Technical Assistance and 

Training Grants Program; Proposal to 

Exclude Program and Activity From 

Executive Order 12372,’’ (53 FR 44505) 

which determined that the RUS grants 

were not covered by Executive Order 

12372. 

Executive Order 12988

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. RUS has determined that this 

proposed 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 section 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 

Under section 605(b) of the 

Regulatory Flexibility Act (5 U.S.C. 

605(b)), RUS certifies that this rule will 

not have a significant economic impact 

on a substantial number of small 

entities. The amendments reflect only 

statutory changes that Congress has 

mandated and over which RUS has no 

discretion. 

Information Collection and 

Recordkeeping Requirements 

The information collection and 

recordkeeping requirements contained 

in this rule have been cleared under 

OMB control number 0572–0112 in 

accordance with 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. 

Catalog of Federal Domestic Assistance 

The programs described by this rule 

are listed in the Catalog of Federal 

Domestic Assistance Programs under 

numbers 10.761, Technical Assistance 

and Training Grants and 10.762, Solid 

Waste Management Grants. 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. 

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. 

Background 

On November 2, 1987, the Farmers 

Home Administration (FmHA) 

(predecessor of RUS) published 7 CFR 

part 1942, subpart J, Technical 

Assistance and Training Grants, as a 

final rule in the Federal Register (52 FR 

41950) implementing a new grant 

program. On February 5, 1992, FmHA 

published 7 CFR part 1942, subpart J, 

Technical Assistance and Training 

Grants, as a final rule in the Federal 

Register (57 FR 4357) revising the 

regulation to implement another new 

grant program. In 1994, when RUS 

assumed the functions of the Water and 

Waste Disposal programs from the 

former FmHA and the Rural 

Development Administration (RDA), 

RUS changed the Technical Assistance

70878 Federal Register / Vol. 69, No. 235 / Wednesday, December 8, 2004 / Rules and Regulations 

and Training (TAT) and Solid Waste 

Management (SWM) grants regulations 

from 7 CFR 1942, subpart J, to 7 CFR 

1775. Based on changes in the OMB 

circulars affecting these programs and 

RUS’s experience and review of its 

existing procedures, RUS has 

determined that several changes are 

necessary in order to operate the grant 

programs in a smooth, efficient, and 

effective manner. 

The existing 7 CFR part 1775 was 

designed to provide policy and 

procedures for RUS’s technical 

assistance and training grants and solid 

waste management grants, in addition to 

RUS’s internal administrative actions. 

There has been some confusion as to the 

basic differences in the programs, 

especially pertaining to eligibility. To 

avoid confusion and clarify eligibility 

requirements, objectives, and purposes, 

separate sections have been developed 

for each grant program. 

Unsuccessful applicants have often 

requested the basis upon which funding 

decisions were made. The existing 

regulation contains general statements 

describing the priority criteria used in 

making those decisions. The rule 

provides a more detailed description of 

the project priority criteria used in 

determining if an applicant is selected 

or not selected for funding. 

Over the years, the number of 

proposals for projects to be operated 

within a single State, especially in the 

Solid Waste Management Grants 

program, have drastically increased. 

Due to the requirements of the existing 

regulations, these projects are processed 

and serviced from the National Office. 

Experience has shown that these 

projects should be processed and 

serviced from the Rural Development 

State Offices because of their proximity 

to the project and the familiarity of field 

personnel with grantee organizations. 

RUS delegates approval authority to the 

State Directors for projects to be 

operated only within their States. 

Funding for these projects will be 

determined by the National Office on a 

competitive basis.

The rule contains a variety of 

procedural changes from the provisions 

of the current regulation. Some of these 

revisions are minor or are merely 

intended to clarify existing RUS policy 

and procedure. Other revisions reflect 

fundamental changes to RUS’ operation 

of the grant programs and are outlined 

below. 

For clarification purposes, RUS is 

defining the term ‘‘technical assistance’’

as it relates to eligibility of projects 

under both grant programs. 

The current regulation prohibits the 

use of grant funds for expenses incurred 

prior to grant approval. This rule allows 

applicants to incur grant-related 

expenses, however, RUS would not be 

obligated to reimburse these expenses if 

the grant is not approved or is 

insufficient to do so. 

To foster clarity, this rule includes an 

expanded explanation of the items 

needed to complete an application 

package and a more detailed description 

of the information required for priority 

consideration. The rule also expands the 

priority criteria to include the 

population of associations to be served, 

needs assessment, description of how 

the project will be implemented, handson assistance, evaluation methodology, 

and strategy for sustaining the project. 

The existing regulation requires 

fidelity bond coverage. This rule 

removes the requirement because 

coverage is not needed when grant 

funds are reimbursed for actual 

expenses. 

This rule requires grantees to obtain 

written permission from the approval 

official for changes in the project or 

changes of more than 10 percent of the 

total budget. Permission must be 

obtained before changes are put into 

effect or funds spent. 

The rule allows grantees to submit 

financial statements in certain 

instances. The existing regulation does 

not offer any option other than 

submission of an audit. 

Comments 

RUS published a proposed 

rulemaking in the Federal Register on 

January 22, 2004, at 69 FR 3030. RUS 

received no comments from the public, 

nor did RUS receive any comments from 

outside federal agencies. There are three 

minor administrative changes in the 

final regulation. First, in the definition 

of ‘‘State’’ in § 1775.2 the words 

‘‘ * * * the Western Pacific 

Territories, Marshall Islands, Federated 

States of Micronesia, Republic of 

Palau,*** ’’ be replaced with 

‘‘ * * * the Territory of Guam, the 

Commonwealth of the Northern Mariana 

Islands, the Republic of the Marshall 

Islands, the Federated States of 

Micronesia, the Republic of 

Palau,*** ’’. 

The second change pertains to 

§ 1775.12(a)(2), (3), and (4). The 

referenced paragraphs had the State 

Office notifying applicants not selected 

and the National Office notifying 

applicants selected for funding. In the 

final rule these provisions reflect that 

the National Office will inform the State 

Office of both selected and non-selected 

applicants and the State Office would 

then notify all applicants within their 

State of their status. Finally, RUS is 

adding information to § 1775.10 to 

provide guidance to applicants on the 

availability of filing electronic 

applications for this program through 

Grants.gov. The RUS feels that this 

additional information is considered as 

Internal Agency Management and 

pursuant to 5 U.S.C. 553, notice of 

proposed rule making and opportunity 

for comment on this issue are not 

required.

List of Subjects in 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.

■ For reasons set forth in the preamble, 

RUS amends 7 CFR chapter XVII of title 

7 of the Code of Federal Regulations by 

revising part 1775 to read as follows:

PART 1775—TECHNICAL 

ASSISTANCE GRANTS

Subpart A—General Provisions 

Sec. 

1775.1 General. 

1775.2 Definitions. 

1775.3 Availability of forms and 

regulations. 

1775.4 Allocation of funds. 

1775.5 Limitations. 

1775.6 Equal opportunity requirements. 

1775.7 Environmental requirements. 

1775.8 Other Federal Statutes. 

1775.9 OMB control number.

Subpart B—Grant Application Processing 

1775.10 Applications. 

1775.11 Priority. 

1775.12 Grant processing. 

1775.13 Grant agreement. 

1775.14–1775.17 [Reserved] 

1775.18 Fund disbursement. 

1775.19 Grant cancellation or major 

changes. 

1775.20 Reporting. 

1775.21 Audit or financial statements. 

1775.22 [Reserved] 

1775.23 Grant servicing. 

1775.24 Delegation of authority. 

1775.25–1775.30 [Reserved]

Subpart C—Technical Assistance and 

Training Grants 

1775.31 Authorization. 

1775.32 [Reserved] 

1775.33 Objectives. 

1775.34 Source of funds. 

1775.35 Eligibility. 

1775.36 Purpose. 

1775.37 Allocation of funds. 

1775.38–1775.60 [Reserved]

Subpart D—Solid Waste Management 

Grants 

1775.61 Authorization. 

1775.62 [Reserved] 

1775.63 Objectives.

Federal Register / Vol. 69, No. 235 / Wednesday, December 8, 2004 / Rules and Regulations 70879

1775.64 [Reserved] 

1775.65 Eligibility. 

1775.66 Purpose. 

1775.67 Allocation of funds. 

1775.68 Exception authority. 

1775.69–1775.99 [Reserved]

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

U.S.C. 1005.

Subpart A—General Provisions

§ 1775.1 General. 

This subpart sets forth the general 

policies and procedures for the 

Technical Assistance and Training and 

the Solid Waste Management Grant 

Programs. Any processing or servicing 

activity conducted pursuant to this part 

involving authorized assistance to Rural 

Development employees with Water and 

Environmental Program responsibility, 

members of their families, known close 

relatives, or business or close personal 

associates, is subject to the provisions of 

subpart D of part 1900 of this title. 

Applicants for this assistance are 

required to identify any known 

relationship or association with an RUS 

employee.

§ 1775.2 Definitions. 

The following definitions apply to 

subparts A through D of this part. 

Association. An entity, including a 

small city or town, that is eligible for 

RUS Water and Waste Disposal financial 

assistance in accordance with 7 CFR 

1780.7 (a). 

Approval official. Any individual 

with administrative and legal 

responsibility for Rural Development 

programs. 

DUNS Number. Data Universal 

Numbering System number obtained 

from Dun and Bradstreet and used when 

applying for Federal grants or 

cooperative agreements. A DUNS 

number may be obtained at no cost, by 

calling 1–866–705–5711. 

Grant agreement. RUS Guide 1775–1. 

The agreement outlines the terms and 

conditions of the grant awards and 

establishes the guidelines for 

administering the grant awards. 

Grantee. The entity or organization 

receiving financial assistance directly 

from the RUS to carry out the project or 

program under these programs. 

Low Income. Median household 

income (MHI) below 100 percent of the 

statewide non-metropolitan median 

household income (SNMHI). 

Regional. A multi-State area or any 

multi-jurisdictional area within a State. 

Rural area. Any area not in a city or 

town with a population in excess of 

10,000, according to the latest decennial 

census of the United States. 

RUS. The Rural Utilities Service, an 

Agency of the United States Department 

of Agriculture.

Solid Waste Management. Refers to 

the operations, maintenance and the 

recycling of materials disposed of in 

landfills. 

State. Any of the 50 States, the 

District of Columbia, the 

Commonwealth of Puerto Rico, the 

Territory of Guam, the Commonwealth 

of the Northern Mariana Islands, the 

Republic of the Marshall Islands, the 

Federated States of Micronesia, the 

Republic of Palau, and the U.S. Virgin 

Islands. 

Technical Assistance. Supervision, 

oversight, or training by an organization 

for the practical solution of a problem 

or need of an association as defined in 

this section.

§ 1775.3 Availability of forms and 

regulations. 

Information about the forms, 

instructions, regulations, bulletins, 

OMB Circulars, Treasury Circulars, 

standards, documents and publications 

cited in this part is available from any 

UDSA/Rural Development Office or the 

Rural Utilities Service, United States 

Department of Agriculture, Washington, 

DC 20250–1500.

§ 1775.4 Allocation of funds. 

The National Office of the Rural 

Utilities Service will administer grant 

funds and will allocate them on a 

competitive basis.

§ 1775.5 Limitations. 

Grant funds may not be used to: 

(a) Duplicate current services or 

replace or substitute support normally 

provided by other means, such as those 

performed by an association’s 

consultant in developing a project, 

including feasibility, design, and cost 

estimates. 

(b) Fund political or lobbying 

activities. 

(c) Purchase real estate or vehicles, 

improve or renovate office space, or 

repair and maintain privately owned 

property. 

(d) Pay the costs for construction, 

improvement, rehabilitation, 

modification, or operation and 

maintenance of water, wastewater, and 

solid waste disposal facilities. 

(e) Construct or furnish a building. 

(f) Intervene in the Federal regulatory 

or adjudicatory proceedings. 

(g) Sue the Federal Government or 

any other government entities. 

(h) Pay for any other costs that are not 

allowable under OMB Circular A–87, 

OMB Circular A–110, OMB Circular A–

102 or OMB Circular A–122. 

(i) Make contributions or donations to 

others. 

(j) Fund projects that duplicate 

technical assistance given to implement 

action plans under the National ForestDependent Rural Communities 

Economic Diversification Act of 1990 (7 

U.S.C. 6613). Applicants cannot receive 

both grants made under this part and 

grants that the Forest Service makes to 

implement the action plans for five 

continuous years from the date of grant 

approval by the Forest Service. 

(1) The Forest Service helps rural 

communities that are dependent upon 

national forest resources diversify 

existing industries and economies. It 

establishes rural forestry and economic 

diversification action teams that prepare 

technical assistance plans for these rural 

communities to expand their local 

economies and reduce their dependence 

on national forest resources. The Forest 

Service provides assistance to 

implement the action plans through 

grants, loans, cooperative agreements, or 

contracts.

(2) To avoid duplicate assistance, 

applicants must contact the Forest 

Service to find out if any geographical 

areas or local areas in a State have 

received grants for technical assistance 

to an economically disadvantaged 

community. These areas are defined as 

national forest-dependent communities 

under 7 U.S.C. 6612. Applicants will 

provide documentation to the Forest 

Service and Rural Utilities Service that 

they have contacted each agency. 

(k) To pay an outstanding judgment 

obtained by the United States in a 

Federal Court (other than in the United 

States Tax Court), which has been 

recorded. An applicant will be ineligible 

to receive a loan or grant until the 

judgment is paid in full or otherwise 

satisfied. 

(l) Recruit applications for the RUS’s 

water and waste loan or any other loan 

or grant program. Grant funds cannot be 

used to create new business; however, 

they can be used to assist with 

application preparation.

§ 1775.6 Equal opportunity requirements. 

The policies and regulations 

contained in subpart E of part 1901 of 

this title apply to grants made under 

this part.

§ 1775.7 Environmental requirements. 

The policies and regulations 

contained in part 1794 of this title apply 

to grants made for the purposes in 

§§ 1775.36 and 1775.66.

§ 1775.8 Other Federal statutes. 

Other Federal statutes and regulations 

are applicable to grants awarded under 

70880 Federal Register / Vol. 69, No. 235 / Wednesday, December 8, 2004 / Rules and Regulations 

this part. These include but are not 

limited to: 

(a) 7 CFR part 1, subpart A—USDA 

implementation of Freedom of 

Information Act. 

(b) 7 CFR part 3—USDA 

implementation of OMB Circular No. A–

129 regarding debt collection. 

(c) 7 CFR part 15, subpart A—USDA 

implementation of Title VI of the Civil 

Rights Act of 1964, as amended. 

(d) 7 CFR part 1794, RUS 

Implementation of the National 

Environmental Policy Act. 

(e) 7 CFR part 1901, subpart E—Civil 

Rights Compliance Requirements. 

(f) 7 CFR part 3015—Uniform Federal 

Assistance Regulations. 

(g) 7 CFR part 3016—USDA 

Implementation of OMB Circular Nos. 

A–102 and A–97, Uniform 

Administrative Requirements for Grants 

and Cooperative Agreements to State 

and Local Governments. 

(h) 7 CFR part 3017, as amended—

Government-wide Debarment and 

Suspension (Non-procurement); 

Government-wide Requirements for 

Drug-Free Workplace (Grants), 

implementing Executive Order 12549 on 

debarment and suspension and the 

Drug-Free Workplace Act of 1988 (41 

U.S.C. 701). 

(i) 7 CFR part 3018— Restrictions on 

Lobbying, prohibiting the use of 

appropriated funds to influence 

Congress or a Federal agency in 

connection with the making of any 

Federal grant and other Federal 

contracting and financial transactions. 

(j) 7 CFR part 3019—USDA 

implementation of OMB Circular A–

110, Uniform Administrative 

Requirements for Grants and 

Agreements With Institutions of Higher 

Education, Hospitals, and Other 

Nonprofit Organizations. 

(k) 7 CFR part 3052—USDA 

implementation of OMB Circular No. A–

133 regarding audits of institutions of 

higher education and other nonprofit 

institutions.

(l) 29 U.S.C. 794, section 504—

Rehabilitation Act of 1973, and 7 CFR 

part 15B (USDA implementation of 

statute), prohibiting discrimination 

based upon physical or mental handicap 

in Federally assisted programs.

§ 1775.9 OMB control number. 

The information collection 

requirements contained in this part have 

been approved by the Office of 

Management and Budget and have been 

assigned OMB control number 0572–

0112.

Subpart B—Grant Application 

Processing

§ 1775.10 Applications. 

(a) Filing period. Applications may be 

filed on or after October 1 and must be 

received by close of business or 

postmarked by midnight December 31. 

If an application is received either 

before October 1 or after December 31, 

the receiving office will return it to the 

applicant. 

(b) Where to file. (1) An applicant will 

apply to the appropriate State Office of 

Rural Development if the project will 

serve a single state. 

(2) An applicant will apply to the 

National Office if the project will serve 

multiple states. The application must be 

submitted to the following address: 

Assistant Administrator, Water and 

Environmental Programs, Rural Utilities 

Service, Washington, DC 20250–1570. 

(3) Electronic applications will be 

accepted prior to the filing deadline 

through the Federal Government’s 

eGrants Web site (Grants.gov) at http://

www.grants.gov. Applicants should refer 

to instructions found on the Grants.gov 

Web site to submit an electronic 

application. A DUNS number and a 

Central Contractor Registry (CCR) 

registration is required prior to 

electronic submission. The sign-up 

procedures, required by Grants.gov, may 

take several business days to complete. 

(c) Application requirements. To file 

an application, an organization must 

provide their DUNS number. An 

organization may obtain a DUNS 

number from Dun and Bradstreet by 

calling (1–866–705–5711). To file a 

complete application, the following 

information should be submitted: 

(1) Standard Form 424, ‘‘Application 

for Federal Assistance (For NonConstruction).’’

(2) Standard Form 424A & B, ‘‘Budget 

Information—Non-Construction 

Programs.’’

(3) Form AD–1047, ‘‘Certification 

Regarding Debarment, Suspension, and 

Other Responsibility Matters—Primary 

Covered Transaction.’’

(4) Form AD 1049, ‘‘Certification 

Regarding Drug-Free Workplace 

Requirements (Grants) Alternative I—

For Grantees Other Than Individuals.’’

(5) Form AD 1048, ‘‘Certification 

Regarding Debarment.’’

(6) Attachment regarding assistance 

provided to Rural Development 

Employees as required by RD 

Instruction 1900–D. 

(7) Form RD 400–4, ‘‘Assurance 

Agreement.’’

(8) Form RD 400–1, ‘‘Equal 

Opportunity Agreement.’’

(9) Indirect Cost Rate Agreement (if 

applicable, applicant must include 

approved cost agreement rate schedule). 

(10) Statement of Compliance for Title 

VI of the Civil Rights Act of 1964. 

(11) SF LLL, ‘‘Disclosure of Lobbying 

Activities’’ (include only if grant is over 

$100,000).

(12) Certification regarding Forest 

Service grant. 

(d) Supporting information. All 

applications shall be accompanied by: 

(1) Evidence of applicant’s legal 

existence and authority in the form of: 

(i) Certified copies of current 

authorizing and organizational 

documents for new applicants or former 

grantees where changes were made 

since the last legal opinion was obtained 

in conjunction with receipt of an RUS 

grant, or, certification that no changes 

have been made in authorizing or 

organizing documents since receipt of 

last RUS grant by applicant. 

(ii) Current annual corporation report, 

Certificate of Good Standing, or 

statement they are not required. 

(iii) For public nonprofits, Certificate 

of Continued Status from local attorney 

(if applicable). 

(iv) Certified list of directors/officers 

with their respective terms. 

(2) Evidence of tax exempt status from 

the Internal Revenue Service (IRS), if 

applicable. 

(3) Narrative of applicant’s experience 

in providing services similar to those 

proposed. Provide brief description of 

successfully completed projects 

including the need that was identified 

and objectives accomplished. 

(4) Latest financial information to 

show the applicant’s financial capacity 

to carry out the proposed work. A 

current audit report is preferred, 

however applicants can submit a 

balance sheet and an income statement 

in lieu of an audit report. 

(5) List of proposed services to be 

provided. 

(6) Estimated breakdown of costs 

(direct and indirect) including those to 

be funded by grantee as well as other 

sources. Sufficient detail should be 

provided to permit the approval official 

to determine reasonableness, 

applicability, and allowability. 

(7) Evidence that a Financial 

Management System is in place or 

proposed. 

(8) Documentation on each of the 

priority ranking criteria listed in 

§ 1775.11 as follows: 

(i) List of the associations to be served 

and the State or States where assistance 

will be provided. Identify associations 

by name, or other characteristics such as 

size, income, location, and provide MHI 

and population. 

Federal Register / Vol. 69, No. 235 / Wednesday, December 8, 2004 / Rules and Regulations 70881

(ii) Description of the type of 

technical assistance and/or training to 

be provided and the tasks to be 

contracted. 

(iii) Description of how the project 

will be evaluated and provide clearly 

stated goals and the method proposed to 

measure the results that will be 

obtained. 

(iv) Documentation of need for 

proposed service. Provide detailed 

explanation of how the proposed 

services differ from other similar 

services being provided in the same 

area. 

(v) Personnel on staff or to be 

contracted to provide the service and 

their experience with similar projects. 

(vi) Statement indicating the number 

of months it takes to complete the 

project or service. 

(vii) Documentation on cost 

effectiveness of project. Provide the cost 

per association to be served or proposed 

cost of personnel to provide assistance.

(viii) Other factors for consideration, 

such as emergency situation, training 

need identified, health or safety 

problems, geographic distribution, Rural 

Development Office recommendations, 

etc.

§ 1775.11 Priority. 

The application and supporting 

information will be used to determine 

the applicant’s priority for available 

funds. All applications will be reviewed 

and scored for funding priority in 

accordance with RUS Guide 1775–2. 

Points will be given only for factors that 

are well documented in the application 

package and, in the opinion of the RUS, 

meet the objective outlined under each 

factor. The following is a listing of the 

criteria that will be used to select the 

applications that meet the objectives of 

the technical assistance program. 

(a) Projects proposing to give priority 

for available services to rural 

communities having a population less 

than 5,500 and/or below 2,500. 

(b) Projects proposing to give priority 

for available services to low income 

communities. 

(c) Projects that will provide 

assistance in a multi-State area. 

(d) Points will be awarded for work 

plans that clearly describe the goals and 

objectives of the project, how they will 

be accomplished in targeted 

communities, and what measurement of 

accomplishment will be used. 

(e) Projects containing needs 

assessment (i.e. actual issue or problem 

being addressed) clearly defined and 

supported by data. 

(f) Projects containing evaluation 

methods that are specific to the activity, 

clearly defined, measurable, and with 

projected outcomes. 

(g) Applicants proposing to use at 

least 75 percent of the total grant 

amount for their own staff, or the staff 

of an affiliated organization to provide 

services for a project instead of 

contracting with an outside organization 

for the services. 

(h) Projects providing technical 

assistance/training that accomplish the 

objective within a 12-month or less 

timeframe. 

(i) Projects primarily providing 

‘‘hands on’’ technical assistance and 

training, i.e., on-site assistance as 

opposed to preparation and distribution 

of printed material, to communities 

with existing water and waste systems 

which are experiencing operation and 

maintenance or management problems. 

(j) Cash or in kind support of project 

from non-federal sources. 

(k) Ability to demonstrate 

sustainability of project without Federal 

financial support.

§ 1775.12 Grant processing. 

(a) Single State applications. (1) Grant 

applications submitted at the State level 

will receive a letter acknowledging 

receipt and confirmation that all 

information required for a full 

application was included in the packet. 

The State will notify the applicant of 

missing information. The applicant will 

have 14 business days to respond. 

(2) The State Office will review 

applications for eligibility. Those 

applicants that are deemed ineligible 

will be notified. Applicants deemed 

eligible will be forwarded to the 

National Office for funding 

consideration. 

(3) The National Office will review all 

applications received from State Offices. 

Applications will compete on a priority 

basis and will be scored and ranked. 

The applications receiving the highest 

scores and subject to the availability of 

funds will be selected for final 

processing. The National Office will 

send these applications back to the State 

Office for processing. The State Office 

will notify the applicant(s) that they 

have been selected for funding. 

(4) Applicants not selected for 

funding due to low priority rating shall 

be notified by the State Office. 

(b) National and multi-State 

applications. (1) National and multiState applications submitted to the 

National Office will receive a letter 

acknowledging receipt and confirmation 

that all information required for a full 

application was included in the packet. 

The National Office shall notify the 

applicant of missing information. The 

applicant will have 14 business days to 

respond. 

(2) The National Office will review 

applications for eligibility. Those 

applications that are deemed ineligible 

will be notified. Applications deemed 

eligible will be reviewed and given a 

rating score. Applications receiving the 

highest scores will be grouped with 

those received from State Offices for 

funding consideration. 

(3) The National Office will review all 

applications received. Applications will 

compete on a priority basis and will be 

scored and ranked. The applications 

receiving the highest scores and subject 

to the availability of funds will be 

notified by the National Office that they 

have been selected for funding. The 

National Office shall conduct final 

processing of multi-State and national 

applications. 

(4) Multi-State and National 

applicants not selected for funding due 

to low priority rating will be notified by 

the National Office.

(c) Low priority applications.

Applications that cannot be funded in 

the fiscal year received will not be 

retained for consideration in the 

following fiscal year and will be 

handled as outlined in paragraph (a)(4) 

or (b)(4) of this section.

§ 1775.13 Grant agreement. 

Applicants selected for funding will 

complete a grant agreement, RUS Guide 

1775–1, which outlines the terms and 

conditions of the grant award.

§§ 1775.14–1775.17 [Reserved]

§ 1775.18 Fund disbursement. 

Grantees will be reimbursed as 

follows: 

(a) SF–270, ‘‘Request for Advance or 

Reimbursement,’’ will be completed by 

the grantee and submitted to either the 

State or National Office not more 

frequently than monthly. 

(b) Upon receipt of a properly 

completed SF–270, the funds will be 

requested through the field office 

terminal system. Ordinarily, payment 

will be made within 30 days after 

receipt of a proper request for 

reimbursement. 

(c) Grantees are encouraged to use 

women- and minority-owned banks (a 

bank which is owned at least 50 percent 

by women or minority group members) 

for the deposit and disbursement of 

funds.

§ 1775.19 Grant cancellation or major 

changes. 

Any change in the scope of the 

project, budget adjustments of more 

than 10 percent of the total budget, or 

any other significant change in the 

project must be reported to and 

approved by the approval official by 

70882 Federal Register / Vol. 69, No. 235 / Wednesday, December 8, 2004 / Rules and Regulations 

written amendment to RUS Guide 1775–

1. Any change not approved may be 

cause for termination of the grant.

§ 1775.20 Reporting. 

(a) Grantees shall constantly monitor 

performance to ensure that time 

schedules are being met, projected work 

by time periods is being accomplished, 

and other performance objectives are 

being achieved. 

(b) SF–269, ‘‘Financial Status Report 

(short form),’’ and a project performance 

activity report will be required of all 

grantees on a quarterly basis, due 30 

days after the end of each calendar 

quarter. 

(c) A final project performance report 

will be required with the last SF–269 

due 90 days after the end of the last 

quarter in which the project is 

completed. The final report may serve 

as the last quarterly report. 

(d) All multi-State grantees are to 

submit an original of each report to the 

National Office. Grantees serving only 

one State are to submit an original of 

each report to the State Office. The 

project performance reports should 

detail, preferably in a narrative format, 

activities that have transpired for the 

specific time period and shall include, 

but not be limited to, the following: 

(1) A comparison of actual 

accomplishments to the objectives 

established for that period (i.e. number 

of meetings held, number of people 

contacted, results of activity); 

(2) Analysis of challenges or setbacks 

that occurred during the grant period; 

(3) Copies of fliers, news releases, 

news articles, announcements and other 

information used to promote services or 

projects; 

(4) Problems, delays, or adverse 

conditions which will affect attainment 

of overall project objectives, prevent 

meeting time schedules or objectives, or 

preclude the attainment of particular 

project work elements during 

established time periods. This 

disclosure shall be accompanied by a 

statement of the action taken or planned 

to resolve the situation; and 

(5) Activities planned for the next 

reporting period.

§ 1775.21 Audit or financial statements. 

The grantee will provide an audit 

report or financial statements as follows: 

(a) Grantees expending $500,000 or 

more Federal funds per fiscal year will 

submit an audit conducted in 

accordance with OMB Circular A–133. 

The audit will be submitted within 9 

months after the grantee’s fiscal year. 

Additional audits may be required if the 

project period covers more than one 

fiscal year. 

(b) Grantees expending less than 

$500,000 will provide annual financial 

statements covering the grant period, 

consisting of the organization’s 

statement of income and expense and 

balance sheet signed by an appropriate 

official of the organization. Financial 

statements will be submitted within 90 

days after the grantee’s fiscal year.

§ 1775.22 [Reserved]

§ 1775.23 Grant servicing. 

Grants will be serviced in accordance 

with RUS Guide 1775–1 and subpart E 

of part 1951 of this title. When grants 

are terminated for cause, 7 CFR part 11 

will be followed.

§ 1775.24 Delegation of authority. 

The authority under this part is redelegated to the Assistant 

Administrator, Water and 

Environmental Programs, except for the 

discretionary authority contained in 

§ 1775.34 and § 1775.68. The Assistant 

Administrator, Water and 

Environmental Programs may redelegate the authority in this part.

§§ 1775.25—1775.30 [Reserved]

Subpart C—Technical Assistance and 

Training Grants

§ 1775.31 Authorization. 

This subpart sets forth additional 

policies and procedures for making 

Technical Assistance and Training 

(TAT) grants authorized under Section 

306(a)(14)(A) of the Consolidated Farm 

and Rural Development Act (CONACT) 

(7 U.S.C. 1921 et seq., as amended.

§ 1775.32 [Reserved]

§ 1775.33 Objectives. 

The objectives of the program are to: 

(a) Identify and evaluate solutions to 

water and waste problems in rural areas. 

(b) Assist applicants in preparing 

applications for water and waste 

disposal loans/grants. 

(c) Assist associations in improving 

operation and maintenance of existing 

water and waste facilities in rural areas.

§ 1775.34 Source of funds. 

Grants will be made from not less 

than 1 percent or not more than 3 

percent of any appropriations for grants 

under Section 306(a)(2) of the CONACT. 

Funds not obligated by September 1 of 

each fiscal year will be used for water 

and waste disposal grants made in 

accordance with part 1780 of this 

chapter.

§ 1775.35 Eligibility. 

(a) Entities eligible for grants must be 

private nonprofit organizations with tax 

exempt status, designated by the 

Internal Revenue Service. A nonprofit 

organization is defined as any 

corporation, trust, association, 

cooperative, or other organization that: 

(1) Is operated primarily for scientific, 

education, service, charitable, or similar 

purposes in the public interest. 

(2) Is not organized primarily for 

profit. 

(3) Uses its net proceeds to maintain, 

improve, and/or expand its operations. 

(b) Entities must be legally established 

and located within a state as defined in 

§ 1775.2. 

(c) Organizations must be 

incorporated by December 31 of the year 

the application period occurs to be 

eligible for funds. 

(d) Private businesses, Federal 

agencies, public bodies, and individuals 

are ineligible for these grants. 

(e) Applicants must also have the 

proven ability, background, experience 

(as evidenced by the organization’s 

satisfactory completion of project(s) 

similar to those proposed), legal 

authority, and actual capacity to provide 

technical assistance and/or training on a 

regional basis to associations as 

provided in § 1775.33. To meet the 

requirement of actual capacity, an 

applicant must either: 

(1) Have the necessary resources to 

provide technical assistance and/or 

training to associations in rural areas 

through its staff, or 

(2) Be assisted by an affiliate or 

member organization which has such 

background and experience and which 

agrees, in writing, that it will provide 

the assistance, or

(3) Contract with a nonaffiliated 

organization for not more than 49 

percent of the grant to provide the 

proposed assistance.

§ 1775.36 Purpose. 

Grants may be made to organizations 

as defined in § 1775.35 to enable such 

organizations to assist associations to: 

(a) Identify and evaluate solutions to 

water problems of associations in rural 

areas relating to source, storage, 

treatment, and/or distribution. 

(b) Identify and evaluate solutions to 

waste problems of associations in rural 

areas relating to collection, treatment, 

and/or disposal. 

(c) Prepare water and/or waste 

disposal loan/grant applications. 

(d) Provide technical assistance/

training to association personnel that 

will improve the management, 

operation, and maintenance of water 

and waste facilities. 

(e) Pay the expenses associated with 

providing the technical assistance and/

or training authorized in paragraphs (a) 

through (d) of this section.

Federal Register / Vol. 69, No. 235 / Wednesday, December 8, 2004 / Rules and Regulations 70883

§ 1775.37 Allocation of funds. 

At least 10 percent of available funds 

will be used for funding single State 

projects based on the priority criteria.

§§ 1775.38–1775.60 [Reserved]

Subpart D—Solid Waste Management 

Grants

§ 1775.61 Authorization. 

This subpart sets forth the policies 

and procedures for making Solid Waste 

Management (SWM) grants authorized 

under section 310B of the CONACT.

§ 1775.62 [Reserved]

§ 1775.63 Objectives. 

The objectives of the program are to: 

(a) Reduce or eliminate pollution of 

water resources, and 

(b) Improve planning and 

management of solid waste sites.

§ 1775.64 [Reserved]

§ 1775.65 Eligibility. 

(a) Entities eligible for grants must be 

either: 

(1) Private nonprofit organizations 

with tax exempt status designated by 

the Internal Revenue Service. A 

nonprofit organization is defined as any 

corporation, trust, association, 

cooperative, or other organization that: 

(i) Is operated primarily for scientific, 

education, service, charitable, or similar 

purposes in the public interest. 

(ii) Is not organized primarily for 

profit. 

(iii) Uses its net proceeds to maintain, 

improve, and/or expand its operations. 

(2) Public bodies. 

(3) Federally acknowledged or Staterecognized Native American tribe or 

group. 

(4) Academic institutions. 

(b) Entities must be legally established 

and located within a state as defined in 

§ 1775.2.

(c) Organizations must be 

incorporated by December 31 of the year 

the application period occurs to be 

eligible for funds. 

(d) Private businesses, Federal 

agencies, and individuals are ineligible 

for these grants. 

(e) Applicants must also have the 

proven ability; background; experience, 

as evidenced by the organization’s 

satisfactory completion of project(s) 

similar to those proposed; legal 

authority; and actual capacity to provide 

technical assistance and/or training on a 

regional basis to associations as 

provided in § 1775.63. To meet the 

requirement of actual capacity, an 

applicant must either: 

(1) Have the necessary resources to 

provide technical assistance and/or 

training to associations in rural areas 

through its staff, or 

(2) Be assisted by an affiliate or 

member organization which has such 

background and experience and which 

agrees, in writing, that it will provide 

the assistance, or 

(3) Contract with a nonaffiliated 

organization for not more than 49 

percent of the grant to provide the 

proposed assistance.

§ 1775.66 Purpose. 

Grants may be made to organizations 

as defined in § 1775.65 to enable such 

organizations to assist associations to: 

(a) Provide technical assistance and/

or training to reduce the solid waste 

stream through reduction, recycling, 

and reuse. 

(b) Provide training to enhance 

operator skills in maintaining and 

operating active landfills. 

(c) Provide technical assistance and/

or training for operators of landfills 

which are closed or will be closed in the 

near future with the development/

implementation of closure plans, future 

land use plans, safety and maintenance 

planning, and closure scheduling within 

permit requirements. 

(d) Evaluate current landfill 

conditions to determine the threats to 

water resources. 

(e) Pay the expenses associated with 

providing the technical assistance and/

or training authorized in paragraphs (a) 

through (d) of this section.

§ 1775.67 Allocation of funds. 

The maximum amount for a single 

applicant for a Solid Waste Management 

project will be 25 percent of available 

grant funds.

§ 1775.68 Exception authority. 

The Administrator may, in individual 

cases, make an exception to any 

requirement or provision of this part 

which is not inconsistent with the 

authorizing statute or other applicable 

law and is determined to be in the 

Government’s interest.

§§ 1775.69–1775.99 [Reserved]

Dated: November 24, 2004. 

Hilda Gay Legg, 

Administrator, Rural Utilities Service.

[FR Doc. 04–26948 Filed 12–7–04; 8:45 am] 

BILLING CODE 3410–15–P

DEPARTMENT OF AGRICULTURE

Rural Housing Service 

Rural Business—Cooperative Service 

Rural Utilities Service 

Farm Service Agency 

7 CFR Part 1951

RIN 0575–AC57

Servicing of Delinquent Community 

and Business Programs Loans—

Workout Agreements

AGENCY: Rural Housing Service, USDA.

ACTION: Final rule.

SUMMARY: The Rural Housing Service 

(RHS) hereby amends the regulation 

utilized to service the Community 

Facilities and Business Programs loan 

program by adding requirements for 

servicing delinquent Community 

Facilities in conformance with the Debt 

Collection Improvement Act of 1996. 

The intended effect of this action is to 

establish a workout agreement with 

delinquent borrowers to collect 

delinquent loans prior to referral for 

treasury offset.

DATES: This rule is effective January 7, 

2005.

FOR FURTHER INFORMATION CONTACT: Dan 

Spieldenner, Community Programs 

Senior Loan Specialist, Rural Housing 

Service, U.S. Department of Agriculture, 

STOP 0787, 1400 Independence Ave. 

SW., Washington, DC 20250–0787, 

telephone: (202) 720–9700.

SUPPLEMENTARY INFORMATION: 

Classification 

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). 

Programs Affected 

The Catalog of Federal Domestic 

Assistance Program impacted by this 

action is 10.766, Community Facilities 

Loans and Grants. 

Intergovernmental Review 

This program is subject to the 

provisions of Executive Order 12372, 

which requires intergovernmental 

consultation with State and local 

officials. RHS conducts 

intergovernmental consultations for 

each loan in the manner delineated in 

7 CFR part 3015, subpart V.