[Federal Register Volume 89, Number 198 (Friday, October 11, 2024)]
[Rules and Regulations]
[Pages 82482-82484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23512]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Parts 1775

[Docket Number: RUS-24-WATER-0031]


Technical Assistance Grants

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Utilities Services (RUS or Agency), an agency in the 
United States Department of Agriculture (USDA) Rural Development (RD) 
Mission area, is issuing a final rule to update the Water and 
Environmental Programs' (WEP) Technical Assistance Grants regulation by 
updating the audit and financial statement language to align with the 
Office of Management and Budgets (OMB) 2024 revisions.

DATES: Effective date: October 11, 2024.

FOR FURTHER INFORMATION CONTACT: Michele Brooks, Assistant 
Administrator, Water and Environmental Programs, United States 
Department of Agriculture, 1400 Independence Avenue SW, Stop 1548, Room 
4121-South Building, Washington, DC 20250-1548. Telephone: (202) 692-
0308. Email: <a href="/cdn-cgi/l/email-protection#2b464248434e474e054959444440586b5e584f4a054c445d"><span class="__cf_email__" data-cfemail="a1ccc8c2c9c4cdc48fc3d3cececad2e1d4d2c5c08fc6ced7">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Background

    RD is a mission area within USDA comprised of the RUS, the Rural 
Business-Cooperative Service and Rural Housing Service that strives to 
increase economic opportunity and improve the quality of life for all 
rural Americans. RD invests in rural America with loan, grant, and loan 
guarantee programs to help drive economic security and prosperity.
    Rural communities obtain the technical assistance and financing 
necessary to develop drinking water and waste disposal systems through 
RUS WEP. Safe drinking water and sanitary waste disposal systems are 
vital not only to public health, but also to the economic vitality of 
rural America. RD is a leader in helping rural America improve the 
quality of life and increase the economic opportunities for rural 
people.
    OMB revised several parts of OMB Guidance for Grants and Agreements 
which is now called OMB Guidance for Federal Financial Assistance and 
is located in title 2 of the Code of Federal Regulations. The revisions 
were published in the Federal Register on April 22, 2024, at 89 FR 
30046. The revisions must be implemented by October 1, 2024, but can be 
implemented any time after June 21, 2024. This final rule is being 
published as a technical/administrative correction to ensure the 
Agency's audit and financial statement requirements align with the OMB 
revisions made to 2 CFR part 200.

II. Summary of Changes

    Section 1775.21(a) and (b) were updated to remove the $750,000 
monetary amount in order to reference the current Single Audit 
threshold and to amend the audit submission deadline. The audit 
submission requirement was updated to be thirty (30) calendar days 
after the auditee receives the auditor's report or nine (9) months 
after the end of the grantee's fiscal year, whichever is earlier. These 
changes were made to align with the updates to 2 CFR part 200.

III. Executive Orders

Executive Order 12866--Classification

    This final rule is exempt from OMB review for purposes of Executive 
Order 12866 and, therefore, has not been reviewed by OMB.

Congressional Review Act

    This rule is not subject to the Congressional Review Act (``CRA'') 
(5 U.S.C. 801 et seq.), as the CRA provides an exemption for any rule 
relating to agency management or personnel and for rules relating to 
agency organization, procedure, or practice that does not substantially 
affect the rights or obligations of non-agency parties.

Assistance Listing Number (Formally Known as the Catalog of Federal 
Domestic Assistance)

    The Assistance Listing Numbers assigned to the programs affected by 
this final rule are 10.761--Technical Assistance and Training Grants 
and 10.762--Solid Waste Management Systems Grants. The Assistance 
Listings are available at SAM.gov.

Executive Order 12372--Intergovernmental Consultation

    The Assistance Listing Numbers are 10.761 and 10.762 for these 
programs and are subject to the provisions of Executive Order 12372 
which requires

[[Page 82483]]

intergovernmental consultation with State and local officials

Paperwork Reduction Act

    This final rule contains no reporting or recordkeeping provisions 
under OMB Control Number 0572-0112 requiring OMB approval under the 
Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35).

National Environmental Policy Act

    In accordance with the National Environmental Policy Act of 1969, 
Public Law 91-190, this final rule has been reviewed in accordance with 
7 CFR part 1970 (``Environmental Policies and Procedures''). The Agency 
has determined that: (i) This action meets the criteria established in 
7 CFR 1970.53(f); (ii) No extraordinary circumstances exist; and (iii) 
The action is not ``connected'' to other actions with potentially 
significant impacts, is not considered a ``cumulative action'' and is 
not precluded by 40 CFR 1506.1. Therefore, the Agency has determined 
that the action does not have a significant effect on the human 
environment, and therefore neither an Environmental Assessment nor an 
Environmental Impact Statement is required.

Regulatory Flexibility Act Certification

    RUS certifies that this rule will not have a significant economic 
impact on a substantial number of small entities, as defined in the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The RUS Water and 
Waste loan and grant programs provide loans to borrowers at interest 
rates and terms that are more favorable than those generally available 
from the private sector. RUS borrowers, as a result of obtaining 
Federal financing, receive economic benefits that exceed any direct 
economic costs associated with complying with RUS regulations and 
requirements.

Administrative Pay-As-You-Go-Act of 2023

    Section 270 of the Administrative Pay-As-You-Go-Act of 2023 (Pub. 
L. 118-5, div. B, title III, 137 Stat 31) amended 5 U.S.C. 801(a)(2)(A) 
to require U.S. Government Accountability Office (GAO) to assess agency 
compliance with the Act, which establishes requirements for 
administrative actions that affect direct spending, in GAO's major rule 
reports. The Act does not apply to this rule because it does not 
increase direct spending.

Executive Order 12988--Civil Justice Reform

    This rule has been reviewed under Executive Order 12988. In 
accordance with this rule: (1) unless otherwise specifically provided, 
all State and local laws that conflict with this rule will be 
preempted; (2) no retroactive effect will be given to this rule except 
as specifically prescribed in the rule; and (3) administrative 
proceedings of the National Appeals Division of the Department of 
Agriculture (7 CFR part 11) must be exhausted before bringing suit in 
court that challenges action taken under this rule.

Unfunded Mandates Reform Act

    This final rule contains no Federal Mandates (under the regulatory 
provision of title II of the Unfunded Mandates Reform Act of 1995 (2 
U.S.C. chapter 25) for State, local, and Tribal governments, or the 
private sector. Thus, this final rule is not subject to the 
requirements of sections 202 and 205 of the Unfunded Mandates Reform 
Act of 1995.

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 the States is not required.

Executive Order 13175--Consultation and Coordination With Indian Tribal 
Governments

    This Executive order imposes requirements on RUS in the development 
of regulatory policies that have Tribal implications or preempt Tribal 
laws. The Agency has determined that the final rule does not have a 
substantial direct effect on one or more Indian tribe(s) or on either 
the relationship or the distribution of powers and responsibilities 
between the Federal Government and Indian tribes. Thus, this final rule 
is not subject to the requirements of Executive Order 13175. If Tribal 
leaders are interested in consulting with the Agencies on this final 
rule, they are encouraged to contact USDA's Office of Tribal Relations 
or RD's Native American Coordinator at: <a href="/cdn-cgi/l/email-protection#0c4d454d424c797f686d226b637a"><span class="__cf_email__" data-cfemail="acede5ede2ecd9dfc8cd82cbc3da">[email protected]</span></a> to request such a 
consultation.

E-Government Act Compliance

    RD is committed to the E-Government Act, which requires Government 
agencies in general to provide the public the option of submitting 
information or transacting business electronically to the maximum 
extent possible and to promote the use of the internet and other 
information technologies to provide increased opportunities for citizen 
access to Government information and services, and for other purposes.

Civil Rights Impact Analysis

    RD has reviewed this final rule in accordance with USDA Regulation 
4300-4, Civil Rights Impact Analysis, to identify any major civil 
rights impacts the rule might have on program participants on the basis 
of age, race, color, national origin, sex, disability, marital or 
familial status. Based on the review and analysis of the rule and all 
available data, issuance of this final rule is not likely to negatively 
impact low and moderate-income populations, minority populations, 
women, Indian tribes or persons with disability, by virtue of their 
age, race, color, national origin, sex, disability, or marital or 
familial status. No major civil rights impact is likely to result from 
this final rule.

USDA Non-Discrimination Statement

    In accordance with Federal civil rights laws and USDA civil rights 
regulations and policies, the USDA, its Mission Areas, agencies, staff 
offices, employees, and institutions participating in or administering 
USDA programs are prohibited from discriminating based on race, color, 
national origin, religion, sex, gender identity (including gender 
expression), sexual orientation, disability, age, marital status, 
family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; or the 711 Relay 
Service.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at www.usda.gov/sites/default/files/

[[Page 82484]]

documents/ad-3027.pdf, from any USDA office, by calling (866) 632-9992, 
or by writing a letter addressed to USDA. The letter must contain the 
complainant's name, address, telephone number, and a written 
description of the alleged discriminatory action in sufficient detail 
to inform the Assistant Secretary for Civil Rights (ASCR) about the 
nature and date of an alleged civil rights violation. The completed AD-
3027 form or letter must be submitted to USDA by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    (2) Fax: (833) 256-1665 or (202) 690-7442; or
    (3) Email: <a href="/cdn-cgi/l/email-protection#6434160b031605094a2d0a10050f0124111700054a030b12"><span class="__cf_email__" data-cfemail="6434160b031605094a2d0a10050f0124111700054a030b12">[email protected]</span></a>.

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.

    Accordingly, for the reasons set forth in the preamble, the Agency 
amends 7 CFR part 1775 as follows:

PART 1775--TECHNICAL ASSISTANCE 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.

Subpart B--Grant Application Processing

0
2. Amend Sec.  1775.21 by revising paragraphs (a) and (b) to read as 
follows:


Sec.  1775.21  Audit or financial statements.

* * * * *
    (a) In accordance with subpart F of 2 CFR part 200, as adopted by 
USDA through 2 CFR part 400, grantees expending Federal funds each 
fiscal year equal to or greater than the current Single Audit threshold 
will submit an audit. The audit will be submitted within 30 calendar 
days after the auditee receives the auditor's report or 9 months after 
the end of the grantee's fiscal year, whichever is earlier.
    (b) Grantees expending less than the current Single Audit dollar 
threshold 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 authorized official of the 
organization. Financial statements will be submitted within 90 days 
after the grantee's fiscal year end.

Andrew Berke,
Administrator, Rural Utilities Service, Rural Development.
[FR Doc. 2024-23512 Filed 10-10-24; 8:45 am]
BILLING CODE 3410-15-P


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