[Federal Register Volume 60, Number 40 (Wednesday, March 1, 1995)]
[Rules and Regulations]
[Pages 11018-11020]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4954]



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[[Page 11019]]

DEPARTMENT OF AGRICULTURE

Rural Housing and Community Development Service; Rural Business and 
Cooperative Development Service; Rural Utilities Service; Consolidated 
Farm Service Agency

7 CFR Part 1942

RIN 0575-AB82


Community Facility Loans and Grants

AGENCIES: Rural Housing and Community Development Service, Rural 
Business and Cooperative Development Service, Rural Utilities Service, 
Consolidated Farm Service Agency, USDA.

ACTION: Final rule.

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SUMMARY: The regulations utilized to administer Community Facility 
Loans and Grants are being amended. This action changes the security 
requirements for solid waste disposal loans. The change affects the 
security requirements for loans secured primarily by revenue and the 
funds used to construct or improve solid waste facilities in rural 
communities. The effect of changing the security requirements for solid 
waste facilities is to provide better service to communities seeking to 
resolve solid waste disposal problems on a regional level.

EFFECTIVE DATE: March 1, 1995.

FOR FURTHER INFORMATION CONTACT: Jerry W. Cooper, Loan Specialist, 
Water and Waste Disposal Division, Rural Utilities Service, USDA, South 
Agriculture Building, Room 6328, Washington, DC 20250, telephone: (202) 
720-9589.

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.

Intergovernmental Review

    The programs are listed in the Catalog of Federal Domestic 
Assistance under number 10.760, Water and Waste Disposal Systems For 
Rural Communities, and are subject to the provisions of Executive Order 
12372 which requires intergovernmental consultation with State and 
local officials.

Environmental Impact Statement

    This action has been reviewed in accordance with FmHA Instruction 
1940-G, ``Environmental Program.'' It has been determined that this 
action does not constitute a major Federal action significantly 
affecting the quality of the human environment, and, in accordance with 
the National Environmental Policy Act of 1969, Pub. L. 91-190, an 
Environmental Impact Statement is not required.

Compliance with Executive Order 12778

    The regulation has been reviewed in light of Executive Order 12778 
and meets the applicable standards provided in sections 2(a) and 
(2)(b)(2) of that Order. Provisions within this part which are 
inconsistent with State law are controlling. All administrative 
remedies pursuant to 7 CFR part 1900 Subpart B must be exhausted prior 
to filing suit.

Paperwork Reduction Act

    The information collection requirements contained in this 
regulation have been approved by the Office of Management and Budget 
(OMB) under the provisions of 44 U.S.C. Chapter 35 and have been 
assigned OMB control number 0575-0015 in accordance with the Paperwork 
Reduction Act (44 U.S.C. 3507). This final rule does not revise or 
impose any new information collection requirement from those approved 
by OMB.

Background
    A change is needed in the security requirements for loans made for 
construction or improvements to solid waste facilities. The 
requirements of the Environmental Protection Agency Subtitle D 
regulations have increased the capital needs of rural communities for 
disposal of solid waste. The current security requirements for loans on 
solid waste facilities are too stringent, and this final action will 
add flexibility that is needed to improve the program. Currently, 
additional security is required when revenue is the primary security 
for loans involving solid waste facilities. This change will remove the 
requirement for additional security.

Comments on Proposed Rule

    The Farmers Home Administration published a proposed rule in the 
Federal Register on August 19, 1994, (59 FR 42783) and asked for 
written comments on or before October 18, 1994. Ten comments were 
received from the public review process. All ten of the comments 
received were in relation to the proposed change to incorporate into 
Community Programs loan and grant regulations the provision contained 
in Rural Electrification Administration Loan Restructuring Act of 1993, 
(REA Act). No comments were received regarding the proposed change in 
the security requirements for loans made for solid waste disposal 
facilities. Certain provisions of the REA Act prohibits a recipient of 
the programs from imposing certain conditions on the users of the 
service provided. The REA Act requires that appropriate measures and 
sanctions be implemented against any person violating or attempting to 
violate this prohibition. Based on the comments received, the proposed 
change relating to the REA Act will not be included in this final rule. 
Eight of the comments made stated that the proposed rule did not go far 
enough in implementing the provisions of the REA Act. Another rule will 
be issued in the future to comply with provisions of the REA Act 
relating to all the Department's rural development programs.

List of Subjects in 7 CFR Part 1942

    Community development, Community facilities, Loan programs-Housing 
and community development, Loan security, Rural areas, Waste treatment 
and disposal-Domestic, Water supply-Domestic.

    Therefore, Chapter XVIII, title 7, Code of Federal Regulations is 
amended as follows:

PART 1942--ASSOCIATIONS

    1. The authority citation for part 1942 continues to read as 
follows:

    Authority: 7 U.S.C. 1989; 16 U.S.C. 1005; 5 U.S.C. 301; 7 CFR 
2.23; 7 CFR 2.70.

Subpart A--Community Facility Loans

    2. Section 1942.17 is amended by revising paragraphs (g)(2)(ii) and 
(g)(3)(ii) to read as follows:


Sec. 1942.17  Community facilities.

* * * * *
    (g) * * *
    (2) * * *
    (ii) Solid waste systems. The type of security required will be 
based on State law and what is determined adequate to protect the 
interest of the United States during the repayment period of the loan.
* * * * *
    (3) * * *
    (ii) Solid waste systems. The type of security required will be 
based on State law and what is determined adequate to protect the 
interest of the United States during the repayment period of the loan.
* * * * *
    3. Section 1942.50 is revised to read as follows:


Sec. 1942.50  OMB control number.

    The reporting and recordkeeping requirements contained in this 
regulation have been approved by the Office of Management and Budget 
(OMB) and have been assigned OMB [[Page 11020]] control number 0575-
0015. Public reporting burden for this collection of information is 
estimated to vary from five minutes to 15 hours per response, with an 
average of 2.7 hours per response, including time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding this burden estimate 
or any other aspect of this collection of information, including 
suggestions for reducing this burden to the Department of Agriculture, 
Clearance Officer, OIRM, Ag Box 7630, Washington, D.C. 20250; and to 
the Office of Management and Budget, Paperwork Reduction Project (OMB 
#0575-0015), Washington, D.C. 20503.

    Dated: January 26, 1995.
Bob J. Nash,
Under Secretary, Rural Economic and Community Development.
[FR Doc. 95-4954 Filed 2-28-95; 8:45 am]
BILLING CODE 3410-32-U