Unknown. Direct final rule

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2003-08-05.xml --- 68 150 Tuesday, August 5, 2003 Contents AID Agency for International Development NOTICES Agency information collection activities; proposals, submissions, and approvals, 46161 03-19937 03-19938 Agriculture Agriculture Department See Food and Nutrition Service See Forest Service See Natural Resources Conservation Service See Rural Utilities Service Alcohol Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 46224-46225 03-19852 Army Army Department NOTICES Privacy Act:

Systems of records, 46168-46170 03-19874 Children Children and Families Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 46188-46189 03-19908 03-19909 Grants and cooperative agreements; availability, etc.: Developmental disabilities programs— Help America Vote Training and Technical Assistance Projects, 46189-46197 03-19905 Coast Guard Coast Guard RULES Regattas and marine parades: Race Week Miami Super Boat Race, 46087-46089 03-19901 PROPOSED RULES Drawbridge operations:

Florida, 46139-46141 03-19900 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration Comptroller Comptroller of the Currency PROPOSED RULES Bank activities and operations and real estate lending and appraisals: National banks; State law applicability, 46119-46132 03-19906 NOTICES National banks: Preemption determinations— National City Bank, N.A., et al.; nonapplication of Georgia Fair Lending Act, 46264-46281 03-19907 Customs Customs and Border Protection Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 46211-46212 03-19797 Defense Defense Department See Army Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 46166-46167 03-19871 DOD Dependents Schools; minor dependents in overseas areas; education eligibility requirements; class tuition waivers, 46167 03-19872 Meetings:

Sexual Misconduct Allegations at U.S. Air Force Academy Review Panel, 46167 03-19819 Privacy Act: Systems of records, 46167-46168 03-19873 Drug Drug Enforcement Administration NOTICES *Applications, hearings, determinations, etc.:* Aldrich Chemical Co., Inc., 46225 03-19813 Boehringer Ingelheim Chemicals, Inc., 46225 03-19811 Chattem Chemicals, Inc., 46226 03-19815 Mallinckrodt, Inc., 46226 03-19814 Penick Corp., 46226-46227 03-19809 Rhodes Technologies, 46227 03-19812 Wildlife Laboratories, Inc., 46227 03-19810 Education Education Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 46170-46171 03-19826 Grants and cooperative agreements; availability, etc.:

Special education and rehabilitative services— Alternative Financing Mechanism Program and Access to Telework Fund Program, 46411-46419 03-19844 03-19845 Mentoring for Transition-Age Youth and Young Adults with Disabilities, 46421-46425 03-19875 03-19876 Employment Employment and Training Administration NOTICES Adjustment assistance: Agere Systems, Inc., 03-19856 46231-46232 03-19869 Alaska Commercial Fisheries Entry Commission— Permit No. S1SB578390 (Fairbanks, AK), 46232 03-19860 American Leather, LP, 46232 03-19870 Bardon Rubber Co., Inc., 46232 03-19855 Brandt, a Varco Co., 46232 03-19866 Electroglas, Inc., 46233 03-19854 EXFO Burleigh Products Group, Inc., 46233 03-19863 Gasboy International, LLC, 46233 03-19867 General Electric Co., Industrial Systems, 46233 03-19857 Intermet et al., 46233-46235 03-19850 Phillips Plastics Corp, 46235 03-19862 Rockwell Automation, Inc., 46235 03-19868 Rosewood Manufacturing Co., 46235 03-19859 Stimson Lumber Co., 46235 03-19858 United States Steel, Technical Center, 46235-46236 03-19865 Wellstone Mills, LLC, 46236 03-19864 Adjustment assistance and NAFTA transitional adjustment assistance:

Allsteel, Inc., et al., 46230-46231 03-19861 Agency information collection activities; proposals, submissions, and approvals, 46236 03-19849 Energy Energy Department See Energy Efficiency and Renewable Energy Office See Federal Energy Regulatory Commission Energy Energy Efficiency and Renewable Energy Office NOTICES Grants and cooperative agreements; availability, etc.: Hydrogen production and delivery research, 46171 03-19708 Hydrogen storage; basic and applied research, 46171-46172 03-19710 EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States:

North Carolina, 46101-46102 03-19926 Ohio, 46089-46099 03-19925 Pennsylvania, 46099-46101 03-19739 Solid wastes: Project XL (eXcellence and Leadership) program; site-specific projects— Georgia-Pacific Corp. pulp and paper mill, Big Island, VA, 46102-46109 03-19919 PROPOSED RULES Air quality implementation plans; approval and promulgation; various States: Pennsylvania, 46141-46142 03-19740 Solid wastes: Project XL (eXcellence and Leadership) program; site-specific projects— Georgia-Pacific Corp. pulp and paper mill, Big Island, VA, 46142-46143 03-19920 NOTICES Grants and cooperative agreements; availability, etc.:

Investigator-initiated grants program, 46185 03-19918 Executive Executive Office of the President See Presidential Documents FAA Federal Aviation Administration RULES Airworthiness standards: Transport category airplanes— Material strength properties and design values, 46427-46431 03-19748 PROPOSED RULES Miscellaneous amendments, etc.; proposed rules withdrawn Correction, 46283 C3-18592 FBI Federal Bureau of Investigation NOTICES Agency information collection activities; proposals, submissions, and approvals, 46227-46228 03-19851 FCC Federal Communications Commission RULES Radio broadcasting:

Cross and multiple ownership of local radio, televison broadcast stations, and newspapers; definition of radio markets, 46285-46358 03-19106 PROPOSED RULES Radio broadcasting : Definition of radio markets for areas not located in an arbitron survey area, 46358-46362 03-19091 NOTICES Agency information collection activities; proposals, submissions, and approvals, 46185-46186 03-19842 03-19843 Rulemaking proceedings; petitions filed, granted, denied, etc., 46187 03-19804 Federal Energy Federal Energy Regulatory Commission PROPOSED RULES Natural Gas Policy Act:

Blanket sales certificates, 46133 03-19879 NOTICES Agency information collection activities; proposals, submissions, and approvals, 46172-46174 03-19832 03-19833 Electric rate and corporate regulation filings: Entergy Gulf States, Inc., et al., 46176-46178 03-19894 Environmental statements; availability, etc.: Minnesota Power, Inc., 46178 03-19835 Hydroelectric applications, 46179 03-19834 Natural Gas Policy Act, etc.: Natural gas pipeline negotiated rate policies and practices, 46179-46184 03-19882 *Applications, hearings, determinations, etc.:* Ameren Services Co. et al., 46174 03-19880 Gulfstream Natural Gas System, L.L.C., 46174-46175 03-19830 Panther Interstate Pipeline Energy, L.L.C., 46175-46176 03-19831 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies:

Formations, acquisitions, and mergers, 46187 03-19816 Fish Fish and Wildlife Service PROPOSED RULES Endangered and threatened species: Critical habitat designations— Peirson's milk-vetch, 46143-46160 03-19670 Food Food and Drug Administration RULES Food additives: Olestra, 46363-46402 03-19508 Food additivies: Olestra, 46402-46410 03-19509 PROPOSED RULES Human drugs: Laxative products (OTC): tentative final monograph; amendment, 46133-46138 03-19808 NOTICES Debarment orders: Theodore, Thomas Ronald, 46197-46198 03-19806 Food for human consumption:

Identity standards deviation; market testing permits— Kerry, Inc., Eau Galle Cheese Factory, et al.; romano cheese, 46198-46199 03-19805 Meetings: Drug Safety and Risk Management Advisory Committee, 46199 03-19807 Reports and guidance documents; availability, etc.: Analgesic drugs; clinical evaluation; withdrawn, 46199 03-19802 Food Food and Nutrition Service NOTICES Meetings: Maternal, Infant and Fetal Nutrition National Advisory Council, 46161-46162 03-19892 Forest Forest Service NOTICES Environmental statements; notice of intent:

Okanogan and Wenatchee National Forests, WA, 46162 03-19839 Six Rivers National Forest, CA, 46162-46163 03-19838 Geological Geological Survey NOTICES Agency information collection activities; proposals, submissions, and approvals, 46215-46216 03-19897 Patent licenses; non-exclusive, exclusive, or partially exclusive: Besst, Inc., 46216 03-19896 Health Health and Human Services Department See Children and Families Administration See Food and Drug Administration See Health Resources and Services Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 46187-46188 03-19827 Health Health Resources and Services Administration NOTICES Grants and cooperative agreements; availability, etc.:

Health professions and nursing programs; eligible low-income levels, 46199-46200 03-19799 Human immunodeficiency virus (HIV)— Supporting Networks of HIV Care Project, 46200-46202 03-19800 Meetings: Rural Health and Human Services National Advisory Committee, 46202 03-19801 National Vaccine Injury Compensation Program: Petitions received; list, 46202-46211 03-19798 Homeland Homeland Security Department See Coast Guard See Customs and Border Protection Bureau Housing Housing and Urban Development Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 03-19941 46212-46214 03-19942 03-19943 Mortgage and loan insurance programs:

Debenture interest rates, 46214-46215 03-19939 Interior Interior Department See Fish and Wildlife Service See Geological Survey See Minerals Management Service See Reclamation Bureau IRS Internal Revenue Service RULES Income taxes: Taxpayer identifying numbers; requirement on submissions, 46081-46087 03-19273 NOTICES Meetings: Taxpayer Advocacy Panels, 03-19929 46281-46282 03-19931 International International Trade Administration NOTICES Antidumping: Heavy forged hand tools, finished or unfinished, with or without handles, from— China, 46164 03-19911 Stainless steel wire rod from— India, 46164-46165 03-19912 Meetings:

Environmental Technologies Trade Advisory Committee, 46165 03-19910 North American Free Trade Agreement (NAFTA); binational panel reviews: Softwood lumber products from— Canada, 46165-46166 03-19820 International International Trade Commission NOTICES Import investigations: Remediation and nature and landscape protection services; U.S. and foreign markets overview, 46222-46223 03-19818 Solid and hazardous waste services; U.S. and foreign markets overview, 46223-46224 03-19817 Justice Justice Department See Alcohol, Tobacco, Firearms, and Explosives Bureau See Drug Enforcement Administration See Federal Bureau of Investigation See Prisons Bureau Labor Labor Department See Employment and Training Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 03-19846 46228-46230 03-19847 03-19848 Minerals Minerals Management Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 46216-46218 03-19914 National Highway National Highway Traffic Safety Administration NOTICES Meetings:

Early warning reporting rule; electronic reporting procedures, 46261-46262 03-19902 Reports and guidance documents; availability, etc.: Safety belt use; Integrated Project Team Plan, 46262-46263 03-19878 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management: Alaska; fisheries of Exclusive Economic Zone— Bering Sea and Aleutian Islands crab species licenses, 46117-46118 03-19933 Greenland turbot, 46117 03-19928 Pelagic shelf rockfish, 46116-46117 03-19927 West Coast States and Western Pacific fisheries— Crustacean, bottomfish and seamount groundfish, and precious corals, 46112-46116 03-19932 NOTICES Permits:

Endangered and threatened species, 46166 03-19934 National Science National Science Foundation NOTICES Meetings; Sunshine Act, 46236 03-19803 NRCS Natural Resources Conservation Service NOTICES Environmental statements; availability, etc.: Martinez Creek Watershed, TX, 46163-46164 03-19825 Nuclear Nuclear Regulatory Commission NOTICES Meetings; Sunshine Act, 46239 03-19985 Operating licenses, amendments; no significant hazards considerations; biweekly notices, 46239-46251 03-19487 *Applications, hearings, determinations, etc.:* Omaha Public Power District, 46236-46237 03-19887 Tennessee Valley Authority, 46238-46239 03-19886 Presidential Presidential Documents EXECUTIVE ORDERS Government agencies and employees:

Congressional reporting functions, delegation (EO 13313), 46073-46076 03-20013 Prisons Prisons Bureau PROPOSED RULES Inmate control, custody, care, etc.: D.C. Code; civil contempt of court commitments, 46138-46139 03-19853 Reclamation Reclamation Bureau NOTICES Closure orders: Klamath Project, OR, 46218 03-19837 Environmental statements; notice of intent: Sacramento Valley Water Management Program, CA, 46218-46222 03-19841 Research Research and Special Programs Administration RULES Pipeline safety:

Producer-operated Outer Continental Shelf natural gas and hazardous liquid pipelines crossing directly into State waters, 46109-46112 03-19752 RUS Rural Utilities Service RULES Grants: Emergency and imminent community water assistance, 46077-46081 03-19696 PROPOSED RULES Grants: Emergency and imminent community water assistance, 46119 03-19697 SEC Securities and Exchange Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 46251-46252 03-19891 Self-regulatory organizations; proposed rule changes:

American Stock Exchange LLC, 46254-46255 03-19823 National Association of Securities Dealers, Inc., 46255-46259 03-19824 *Applications, hearings, determinations, etc.:* Public utility holding company filings, 46252-46254 03-19889 SBA Small Business Administration NOTICES Disaster loan areas: Ohio, 46259-46260 03-19885 Tennessee, 46260 03-19883 Texas, 46260 03-19884 State State Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 46260-46261 03-19903 03-19904 Surface Surface Transportation Board NOTICES Railroad services abandonment:

Central Michigan Railway Co., 46263 03-19333 Union Pacific Railroad Co., 46264 03-19779 Transportation Transportation Department See Federal Aviation Administration See National Highway Traffic Safety Administration See Research and Special Programs Administration See Surface Transportation Board NOTICES Aviation proceedings: Hearings, etc.— Reliant Airlines, Inc., et al., 46261 03-19899 Treasury Treasury Department See Comptroller of the Currency See Internal Revenue Service Separate Parts In This Issue Part II Federal Communications Commission, 46285-46362 03-19091 03-19106 Part III Health and Human Services Department, Food and Drug Administration, 46363-46410 03-19508 03-19509 Part IV Education Department, 46411-46419 03-19844 03-19845 Part V Education Department, 46421-46425 03-19875 03-19876 Part VI Transportation Department, Federal Aviation Administration, 46427-46431 03-19748 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 68 150 Tuesday, August 5, 2003 Rules and Regulations DEPARTMENT OF AGRICULTURE Rural Utilities Service 7 CFR Part 1778 [0572-AB90] Emergency and Imminent Community Water Assistance Grants AGENCY: Rural Utilities Service, USDA.

ACTION: Direct final rule. SUMMARY: The Rural Utilities Service

(RUS)is amending its regulation governing Emergency Community Water Assistance Grants (ECWAG). This action is needed to comply with requirements set forth in the 2002 Farm Bill. The intended effect is to amend the regulation so that it allows eligibility for the program to be extended to situations where an emergency is considered imminent. DATES: This rule will become effective September 19, 2003, unless we receive written adverse comments or written notice of intent to submit adverse comments on or before September 4, 2003. If we receive such comments or notice, we will publish a timely document in the **Federal Register** withdrawing the rule. A second public comment period will not be held. Parties interested in commenting on this action should do so at this time. ADDRESSES: Submit adverse written comments or notice of intent to submit adverse comments to F. Lamont Heppe, Jr., Program Development and Regulatory Analysis, Rural Utilities Service, U.S. Department of Agriculture, 1400 Independence Ave., SW., STOP 1522, Room 5168, South Building, Washington, DC 20250, telephone number

(202)720-9550 or via facsimile transmission to

(202)720-4120. RUS requires a signed original and three copies of all comments (7 CFR Part 1700). All comments received will be made available for inspection in room 4034, South Building, Washington, DC, between 8 a.m. and 4 p.m. (7 CFR part 1.27(b)). Comments regarding the information and recordkeeping requirement must be received by October 6, 2003. FOR FURTHER INFORMATION CONTACT: Robin Pulkkinen, Loan Specialist, Water and Environmental Programs, Rural Utilities Service, Room 2229 South Building, Stop 1570, 1400 Independence Ave. SW., Washington, DC 20250-1570. Telephone:

(202)720-9636, FAX:

(202)690-0649, E-mail: *rpulkkin@rus.usda.gov.* SUPPLEMENTARY INFORMATION: Executive Order 12866 This proposed rule has been determined to be not significant for purposes of Executive Order 12866 and, therefore, has not been reviewed by the Office of Management and Budget (OMB). Executive Order 12988 This proposed rule has been reviewed in accordance with 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 pre-empted; 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. sec. 6912(e)), appeal procedures must be exhausted before an action against the Department or its agencies may be initiated. Regulatory Flexibility Act Certification RUS has determined 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 amendments reflect changes needed to comply with requirements set forth in the Farm Security and Rural Investment Act of 2002. Information Collection and Record Keeping Requirements In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), RUS invites comments on this information collection for which RUS intends to request approval from the Office of Management and Budget (OMB). These requirements have been approved by emergency clearance under OMB Control Number 0572-0110. Comments on this notice must be received by October 6, 2003. Comments are invited on

(a)whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;

(b)the accuracy of the agency's estimate of burden including the validity of the methodology and assumption used;

(c)ways to enhance the quality, utility and clarity of the information to be collected; and

(d)ways to minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology. Comments may be sent to F. Lamont Heppe, Jr., Director, Program Development and Regulatory Analysis, Rural Utilities Service, U.S. Department of Agriculture, 1400 Independence Ave., SW., Stop 1522, Room 4034 South Building, Washington, DC 20250-1522. *Title:* Emergency and Imminent Community Water Assistance Grants. *Type of Request:* Reinstatement, with change, of a previously approved collection for which approval has expired. *Estimate of Burden:* Public reporting burden for this collection of information is estimated to average 1.6 hours per response. *Respondents:* Not-for-profit institutions; State, Local or Tribal Government. *Estimated Number of Respondents:* 100. *Estimated Number of Responses per Respondent:* 2.5. *Estimated Total Annual Burden on Respondents:* 400 hours. Copies of this information collection can be obtained from Michele Brooks, Program Development and Regulatory Analysis, at

(202)690-1078. All responses to this information collection and recordkeeping notice will be summarized and included in the request for OMB approval. All comments will also become a matter of public record. National Environmental Policy Act Certification The Administrator of RUS has determined that this proposed 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 program described by this proposed rule is listed in the Catalog of Federal Domestic Assistance Programs under number 10.763—Emergency Community Water Assistance 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. This program is subject to the provisions of Executive Order 12372 which requires intergovernmental consultation with State and local officials. 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. Therefore, this rule is not subject to the requirements of section 202 and 205 of the Unfunded Mandates Reform Act. Background This action amends the existing regulation for the Emergency Community Water Assistance Grant Program to allow grants to be made before an emergency has actually occurred. The ECWAG program was authorized by the Rural Development Act of 1972. The grants are made to public bodies, nonprofit corporations, and Indian tribes for the purpose of improving rural living standards and for other purposes that create safe and affordable drinking water in rural areas or towns with a population not exceeding 10,000 inhabitants. These grants can be made to construct or improve drinking water facilities serving the most financially needy communities. This revision is undertaken specifically to respond to requirements of Section 6009 of the Farm Security and Rural Investment Act of 2002 (Pub. L. 107-171). (2002 Farm Bill) Under the revised regulation, grants may be made for situations where an emergency is imminent, but has not yet occurred. Applicants will be expected to furnish evidence that an emergency is expected to occur. The 2002 Farm Bill also increased the limit for the category of projects covering repairs and significant maintenance to $150,000. List of Subjects in 7 CFR Part 1778 Community development, Community facilities, Grant programs—housing and community development, Loan program—housing and community development, Reporting and recordkeeping requirements, Rural areas, Waste treatment and disposal, Water supply, Watersheds. Therefore, the Rural Utilities Service revises 7 CFR part 1778 to read as follows: PART 1778—EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANTS Sec. 1778.1 General. 1778.2 [Reserved] 1778.3 Objective. 1778.4 Definitions. 1778.5 [Reserved] 1778.6 Eligibility. 1778.7 Project priority. 1778.8 [Reserved] 1778.9 Uses. 1778.10 Restrictions. 1778.11 Maximum grants. 1778.12 [Reserved] 1778.13 Set-aside. 1778.14 Other considerations. 1778.15-1778.20 [Reserved] 1778.21 Application processing. 1778.22 Planning development and procurement. 1778.23 Grant closing and disbursement of funds. 1778.24-1778.30 [Reserved] 1778.31 Performing development. 1778.32 [Reserved] 1778.33 [Reserved] 1778.34 Grant servicing. 1778.35 Subsequent grants. 1778.36 [Reserved] 1778.37 Forms, Instructions and Bulletins. 1778.38—1778.99 [Reserved] 1778.100 OMB control number. Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 U.S.C. 1005. § 1778.1 General.

(a)This part outlines policies and procedures for making Emergency Community Water Assistance Grants (ECWAG) authorized under Section 306A of the Consolidated Farm and Rural Development Act, (7 U.S.C. 1926(a)), as amended. Any processing or servicing activity conducted pursuant to this part involving authorized assistance to Agency employees, 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 Agency employee.

(b)Agency officials will maintain liaison with officials of other Federal, State, regional and local development agencies to coordinate related programs to achieve rural development objectives.

(c)Agency officials shall cooperate with appropriate State agencies in making grants that support State strategies for rural area development.

(d)Funds allocated for use in accordance with this part are also to be considered for use by Indian tribes within the State regardless of whether State development strategies include Indian reservations within the State's boundaries. Indians residing on such reservations must have an equal opportunity along with other rural residents to participate in the benefits of this program. This includes equal application of outreach activities of Field Offices.

(e)Federal statutes provide for extending the Agency financial programs without regard to race, color, religion, sex, national origin, marital status, age, or physical/mental handicap (provided the participant possesses the capacity to enter into legal contracts). § 1778.2 [Reserved] § 1778.3 Objective. The objective of the ECWAG Program is to assist the residents of rural areas that have experienced a significant decline in quantity or quality of water, or in which such a decline is considered imminent, to obtain or maintain adequate quantities of water that meets the standards set by the Safe Drinking Water Act (42 U.S.C. 300f *et seq.* ) (SDWA). § 1778.4 Definitions. *Acute shortage.* An acute shortage is a situation in which the system either cannot deliver water at all through its distribution system or can only deliver water on a sporadic basis. *Emergency.* Occurrence of an incident such as, but not limited to, a drought; earthquake; flood; tornado; hurricane; disease outbreak; or chemical spill, leakage, or seepage. *Rural areas.* Includes any area not in a city or town with a population in excess of 10,000 inhabitants, according to the latest decennial census of the United States. located in any of the fifty States, the Commonwealth of Puerto Rico, the Western Pacific Territories, Marshall Islands, Federated States of Micronesia, Republic of Palau, and the U.S. Virgin Islands. *Significant decline in quality.* A significant decline in quality of potable water occurs when the present community source or delivery system does not meet, as a result of an emergency, the current SDWA requirements. For a private source or delivery system a significant decline in quality occurs when the water is no longer potable as a result of an emergency. As used in this Subpart, the term significant decline in quality may also include a situation where a significant decline is likely to occur within one year from the date of the filing of an application. *Significant decline in quantity.* A significant decline in the quantity is caused by a disruption of the potable water supply by an emergency. The disruption in quantity of water prevents the present source or delivery system from supplying potable water needs to rural residents. This would not include a decline in excess water capacity. As used in this Subpart, the term significant decline in quantity may also include a situation where a significant decline is likely to occur within one year from the date of the filing of an application. § 1778.5 [Reserved] § 1778.6 Eligibility.

(a)Grants may be made to public bodies and private nonprofit corporations serving rural areas. Public bodies include counties, cities, townships, incorporated towns and villages, boroughs, authorities, districts, and other political subdivisions of a State. Public bodies also include Indian tribes on Federal and State reservations and other Federally recognized Indian Tribal groups in rural areas.

(b)In the case of grants made to alleviate a significant decline in quantity or quality of water available from the water supplies of rural residents, the applicant must demonstrate that the decline occurred within two years of the date the application was filed with the Agency. This would not apply to grants made for repairs, partial replacement, or significant maintenance on an established water system. In situations involving imminent decline, evidence must be presented to demonstrate that the decline is likely to occur within one year of the date the application is filed with the Agency. § 1778.7 Project priority. Paragraph

(d)of this section indicates items and conditions which must be considered in selecting applications for further development. When ranking eligible applications for consideration for limited funds, Agency officials must consider the priority items met by each application and the degree to which those priorities are met.

(a)*Applications.* The application and supporting information submitted with it will be used to determine the proposed project's priority for available funds.

(b)*State Office review.* All applications will be reviewed and scored for funding priority using RUS Bulletin 1778-1. Eligible applicants that cannot be funded should be advised that funds are not available.

(c)*National Office review.* Each year all funding requests will be reviewed by the National Office beginning 30 days after funds from the annual appropriation are made available to the Agency. Reviews will continue throughout the fiscal year as long as funds are available. Projects selected for funding will be considered based on the priority criteria and available funds. Projects must compete on a national basis for available funds, and the National Office will allocate funds to State offices on a project by project basis.

(d)*Selection priorities.* The priorities described below will be used by the State Program Official to rate applications and by the Assistant Administrator of Water and Environmental Programs to select projects for funding. Points will be distributed as indicated in paragraphs (d)(1) through (d)(5) of this section and will be considered in selecting projects for funding. A copy of RUS Bulletins 1778-1 and 1778-2 used to rate applications, should be placed in the case file for future reference.

(1)*Population.* The proposed project will serve an area with a rural population:

(i)Not in excess of 1,500—30 points.

(ii)More than 1,500 and not in excess of 3,000—20 points.

(iii)More than 3,000 and not in excess of 5,000—15 points.

(iv)Over 5,000—0 points.

(2)*Income.* The median household income of population to be served by the proposed project is:

(i)Not in excess of 70% of the statewide nonmetropolitan median household income—30 points.

(ii)More than 70% and not in excess of 80% of the statewide nonmetropolitan median household income—20 points.

(iii)More than 80% and not in excess of 90% of the statewide nonmetropolitan median household income—10 points.

(iv)Over 90% of the statewide nonmetropolitan median household income—0 points.

(3)*Significant decline.* Points will be assigned for only one of the following paragraphs when the primary purpose of the proposed project is to correct a significant decline that has occurred in the:

(i)Quantity of water available from private individually owned wells or other individual sources of water—30 points; or

(ii)Quantity of water available from an established system's source of water—20 points; or

(iii)Quality of water available from private individually owned wells or other individual sources of water—30 points; or

(iv)Quality of water available from an established system's source of water—20 points.

(4)*Imminent decline.* The proposed project will attempt to avert an imminent decline expected to occur during the one-year period following the filing of an application—10 points. ( **Note:** If points were assigned above for a significant decline, no points will be awarded for imminent decline.)

(5)*Acute shortage.* Grants made in accordance with § 1778.11(b) of this part to assist an established water system remedy an acute shortage of quality water or correct a significant decline in the quantity or quality of water that is available—10 points.

(6)*Discretionary.* In certain cases the Administrator may assign up to 30 points for items such as geographic distribution of funds, rural residents hauling water, severe contamination levels, *etc.* § 1778.8 [Reserved] § 1778.9 Uses. Grant funds may be used for the following purposes:

(a)Waterline extensions from existing systems.

(b)Construction of new waterlines.

(c)Repairs to an existing system.

(d)Significant maintenance to an existing system.

(e)Construction of new wells, reservoirs, transmission lines, treatment plants, and other sources of water.

(f)Equipment replacement.

(g)Connection and/or tap fees.

(h)Pay costs that were incurred within six months of the date an application was filed with the Agency to correct an emergency situation that would have been eligible for funding under this part.

(i)Any other appropriate purpose such as legal fees, engineering fees, recording costs, environmental impact analyses, archaeological surveys, possible salvage or other mitigation measures, planning, establishing or acquiring rights associated with developing sources of, treating, storing, or distributing water.

(j)Assist rural water systems to comply with the requirements of the Federal Water Pollution Control Act (33 U.S.C. 1251 *et seq.* ) (FWPCA) or the SDWA when such failure to comply is directly related to a recent decline in quality of potable water. This would not apply to changes in the requirements of FWPCA or SDWA.

(k)Provide potable water to communities through means other than those covered above for not to exceed 120 days when a more permanent solution is not feasible in a shorter time frame. § 1778.10 Restrictions.

(a)Grant funds may not be used to:

(1)Assist any city or town with a population in excess of 10,000 inhabitants according to the most recent decennial census of the United States. Facilities financed by RUS may be located in non-rural areas. However, loan and grant funds may be used to finance only that portion of the facility serving rural areas, regardless of facility location.

(2)Assist a rural area that has a median household income in excess of the statewide nonmetropolitan median household income according to the most recent decennial census of the United States.

(3)Finance facilities which are not modest in size, design, cost, and are not directly related to correcting the potable water quantity or quality problem.

(4)Pay loan or grant finder's fees.

(5)Pay any annual recurring costs that are considered to be operational expenses.

(6)Pay rental for the use of equipment or machinery owned by the rural community.

(7)Purchase existing systems.

(8)Refinance existing indebtedness, except for short-term debt incurred in accordance with § 1778.9(h).

(9)Make reimbursement for projects developed with other grant funds.

(10)Finance facilities that are not for public use.

(b)Nothing in paragraph (a)(1) of this section shall preclude rural areas from submitting joint proposals for assistance under this part. Each entity applying for financial assistance under this part to fund their share of a joint project will be considered individually. § 1778.11 Maximum grants.

(a)Grants not to exceed $500,000 may be made to alleviate a significant decline in quantity or quality of water available to a rural area that occurred within two years of filing an application with the Agency, or to attempt to avoid a significant decline that is expected to occur during the twelve month period following the filing of an application.

(b)Grants made for repairs, partial replacement, or significant maintenance on an established system to remedy an acute shortage or significant decline in the quality or quantity of potable water, or an anticipated acute shortage or significant decline, cannot exceed $150,000.

(c)Grants under this part, subject to paragraphs

(a)and

(b)of this section, shall be made for 100 percent of eligible project costs. § 1778.12 [Reserved] § 1778.13 Set-aside.

(a)At least 70 percent of all grants made under this grant program shall be for projects funded in accordance with § 1778.11(a).

(b)At least 50 percent of the funds appropriated for this grant program shall be allocated to rural areas with populations not in excess of 3,000 inhabitants according to the most recent decennial census of the United States. § 1778.14 Other considerations.

(a)*Civil rights compliance requirements.* All grants made under this part are subject to Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d *et seq.* ) as outlined in subpart E of part 1901 of this title.

(b)*Environmental requirements.* All projects must have appropriate environmental reviews in accordance with RUS requirements.

(c)*Uniform Relocation and Real Property Acquisition Policies Act (42 U.S.C. 4601 et seq.).* All projects must comply with the requirements set forth in 7 CFR Part 21.

(d)*Flood and mudslide hazard area precautions.* If the project is located in a flood or mudslide area, then flood or mudslide insurance must be provided as required in subpart A of part 1806 of this title (RD Instruction 426.2).

(e)*Governmentwide debarment and suspension* (nonprocurement) and requirements for drug-free work place. All projects must comply with the requirements set forth in the U.S. Department of Agriculture regulations 7 CFR part 3017 and RD Instruction 1940-M.

(f)*Intergovernmental review.* All projects funded under this part are subject to Executive Order 12372 (3 CFR, 1983 Comp., p. 197), which requires intergovernmental consultation with State and local officials. These requirements are set forth in U.S. Department of Agriculture regulations 7 CFR part 3015, Subpart V, and RD Instruction 1940-J. §§ 1778.15—1778.20 [Reserved] § 1778.21 Application processing.

(a)The material submitted with the application should include the Preliminary Engineering Report, population and median household income of the area to be served, description of project, and nature of emergency that caused the problem(s) being addressed by the project. The documentation must clearly show that the applicant has had a significant decline in the quantity or quality of potable water or an acute shortage of potable water, or that such a decline or shortage is imminent, and that the proposed project will eliminate or alleviate the problem. For projects to be funded in accordance with § 1778.11 (a), evidence must be furnished that a significant decline in quantity or quality occurred within two years before filing the application with the Agency, or is expected to occur within one year after filing the application.

(b)When favorable action will not be taken on an application, the applicant will be notified in writing by the State Program Official of the reasons why the request was not favorably considered. Notification to the applicant will state that a review of this decision by the Agency may be requested by the applicant in accordance with 7 CFR part 11. § 1778.22 Planning development and procurement. Planning development and procurement for grants made under this part will be in accordance with subpart C of Part 1780 of this chapter. A certification should be obtained from the State agency or the Environmental Protection Agency if the State does not have primacy, stating that the proposed improvements will be in compliance with requirements of the SDWA. § 1778.23 Grant closing and disbursement of funds.

(a)Grants will be closed in accordance with § 1780.45 of part 1780 of this chapter.

(b)RUS Bulletin 1780-12, “Water or Waste Grant Agreement,” will be executed by all applicants.

(c)The Agency's policy is not to disburse grant funds from the Treasury until they are actually needed by the applicant. Grant funds will be disbursed by using multiple advances. §§ 1778.24-1778.30 [Reserved] § 1778.31 Performing development.

(a)Applicable provisions of subpart C of part 1780 of this chapter will be followed in performing development for grants made under this part.

(b)After filing an application in accordance with § 1778.21 and when immediate action is necessary, the State Program Official may concur in an applicant's request to proceed with construction before funds are obligated provided the RUS environmental requirements are complied with. The applicant must be advised in writing that:

(1)Any authorization to proceed or any concurrence in bid awards, contract concurrence, or other project development activity, is not a commitment by the Agency to provide grant funds under this part.

(2)The Agency is not liable for any debt incurred by the applicant in the event that funds are not provided under this part. § 1778.32-33 [Reserved] § 1778.34 Grant servicing.

(a)Grants will be serviced in accordance with § 1951.215 of subpart E of part 1951 of this title and subpart O of part 1951 of this title.

(b)The grantee will provide an audit report in accordance with § 1780.47 of part 1780 of this chapter. § 1778.35 Subsequent grants. Subsequent grants will be processed in accordance with the requirements set forth in this part. The initial and subsequent grants made to complete a previously approved project must comply with the maximum grant requirements set forth in § 1778.11. § 1778.36 [Reserved] § 1778.37 Forms, Instructions and Bulletins. Bulletins, instructions and forms referenced are for use in administering grants made under this part and are available from any USDA/Rural Development office or the Rural Utilities Service, United States Department of Agriculture, Washington, DC 20250-1500. §§ 1778.38-1778.99 [Reserved] § 1778.100 OMB control number. The information collection requirements contained in this part have been approved by the Office of Management and Budget and assigned OMB control number 0572-0110. Dated: July 3, 2003. Hilda Gay Legg, Administrator, Rural Utilities Service. [FR Doc. 03-19696 Filed 8-4-03; 8:45 am]

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