[Federal Register: November 15, 2004 (Volume 69, Number 219)]
[Rules and Regulations]
[Page 65517-65519]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15no04-1]
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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.
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[[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.
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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.
[[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]
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