Unknown. Final rule

4,970 words·~23 min read·/register/2012/07/24/2012-18017

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-2012-07-24.xml --- 77 142 Tuesday, July 24, 2012 Contents Advisory Council on Historic Preservation See Historic Preservation, Advisory Council Agriculture Agriculture Department See Food and Nutrition Service See Food Safety and Inspection Service See Forest Service See Rural Utilities Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Development of Nutrition Education Messages and Products for General Public, 43228-43229 2012-18069 Alcohol Tobacco Firearms Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Voluntary Magazine Questionnaire for Agencies/Entities Who Store Explosives, 43366-43367 2012-17910 Centers Disease Centers for Disease Control and Prevention NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43285-43288 2012-17961 2012-17982 2012-17984 Centers Medicare Centers for Medicare & Medicaid Services NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43288-43290 2012-17924 2012-17926 Children's Health Insurance Program:

Final Allotments to States, District of Columbia, and U.S. Territories and Commonwealths for Fiscal Year 2012, 43290-43301 2012-17953 Medicaid Program: Disproportionate Share Hospital Allotments and Institutions for Mental Diseases Disproportionate Share Hospital Limits for FYs 2010, 2011, etc., 43301-43329 2012-17954 State Allotments for Payment of Medicare Part B Premiums for Qualifying Individuals for FY 2012, 43329-43334 2012-17952 Coast Guard Coast Guard RULES Drawbridge Operations:

Lafourche Bayou, LA, 43165-43167 2012-17949 Willamette River, Portland, OR, 43164-43165 2012-17945 Safety Zones: Electric Zoo Fireworks, East River, Randall's Island, NY, 43167-43170 2012-17947 Special Local Regulations: Battle on the Bay Powerboat Race Atlantic Ocean, Fire Island, NY, 43158-43161 2012-17606 San Francisco Bay Navy Fleetweek Parade of Ships and Blue Angels Demonstration, 43161-43164 2012-17946 Commerce Commerce Department See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 43236 2012-17943 Commodity Futures Commodity Futures Trading Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Exemptive Order Regarding Compliance with Certain Swap Regulations, 43271-43274 2012-17919 Meetings; Sunshine Act, 43274-43275 2012-18044 2012-18045 2012-18046 2012-18047 2012-18048 Community Development Community Development Financial Institutions Fund NOTICES Funding Availabilities:

Applications for CY 2012 Allocation Round of New Markets Tax Credit Program, 43418-43428 2012-17602 Community Living Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Financial Status Reporting Form for State Councils on Developmental Disabilities, 43335 2012-18019 Defense Acquisition Defense Acquisition Regulations System RULES Defense Federal Acquisition Regulation Supplement: Contracting with the Canadian Commercial Corporation, 43470-43473 2012-17588 Technical Amendments, 43470 2012-17586 PROPOSED RULES Defense Federal Acquisition Regulation Supplement:

Ownership of Offeror, 43477-43479 2012-17593 Specialty Metals—Definition of Produce, 43474-43477 2012-17590 Defense Department Defense Department See Defense Acquisition Regulations System See Navy Department Education Department Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Federal Student Aid; William D. Ford Federal Direct Loan Program General Forbearance Request, 43276-43277 2012-18023 Needs Assessment, Workplan, and Evaluation Guide for the Technical Assistance and Continuing Education Program, 43276 2012-18020 Applications for New Awards:

Innovative Approaches to Literacy Program; Correction, 43277 2012-18089 Employment and Training Employment and Training Administration NOTICES Amended Certifications Regarding Eligibility to Apply for Worker Adjustment Assistance: AISS/Sterling Infosystems, Independence and Fairlawn, OH, 43367-43368 2012-17996 Alumax Mill Products, Inc. D/B/A Alcoa Mill Products Texarkana, Nash, TX, 43369 2012-18000 Joerns Healthcare, LLC, Stevens Point, WI, 43368 2012-17997 LexisNexis, et al., Miamisburg, OH and Albany, NY, 43369 2012-17998 Navistar Truck Development and Technology Center, et al., Fort Wayne, IN, 43368-43369 2012-17999 Energy Department Energy Department See Federal Energy Regulatory Commission Environmental Protection Environmental Protection Agency PROPOSED RULES Approvals and Promulgations of Implementation Plans:

North Carolina; 110(a)(1) and

(2)Infrastructure Requirements for 1997 Annual and 2006 Fine Particulate Matter National Ambient Air Quality Standards, 43196-43205 2012-18051 Approvals, Disapprovals and Promulgations of Implementation Plans: Wyoming; Regional Haze State Implementation Plan; Federal Implementation Plan for Regional Haze, 43205-43206 2012-18075 Limited Approvals and Disapprovals of Air Quality Implementation Plans: Nevada; Clark County; Stationary Source Permits, 43206-43216 2012-18077 NOTICES Issuance of Final Air Permits: BHP Billiton Petroleum, Inc., Murphy Exploration and Production Co., and Eni US Operating Co., Inc., 43281-43282 2012-18021 Executive Office of the President See Presidential Documents See Trade Representative, Office of United States Export Import Export-Import Bank NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43282-43283 2012-18005 2012-18006 Federal Aviation Federal Aviation Administration PROPOSED RULES Airworthiness Directives: Bombardier, Inc. Airplanes, 43176-43178 2012-17967 The Boeing Company Airplanes, 43178-43181 2012-17968 Establishment of Class E Airspace: Coaldale, NV, 43181-43182 2012-18072 Modification of Class E Airspace: Wolf Point, MT, 43183-43184 2012-18074 Federal Communications Federal Communications Commission PROPOSED RULES Radio Broadcasting Services: Randsburg, CA, 43216 2012-17789 Federal Deposit Federal Deposit Insurance Corporation RULES Corporate Debt Securities: Permissible Investments for Federal and State Savings Associations, 43151-43155 2012-17860 Final Guidance; Availability, etc.: Due Diligence Requirements for Savings Associations in Determining Whether a Corporate Debt Security is Eligible for Investment, 43155-43157 2012-17854 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43283-43284 2012-17937 2012-17986 Federal Energy Federal Energy Regulatory Commission PROPOSED RULES Allocation of Capacity on New Merchant Transmission Projects and New Cost-Based, Participant-Funded Transmission Projects: Priority Rights to New Participant-Funded Transmission; Policy Statement, 43184-43189 2012-18012 Regional Reliability Standard PRC-006-SERC-01 - Automatic Underfrequency Load Shedding Requirements, 43190-43196 2012-18009 NOTICES Applications: Tennessee Gas Pipeline Company, LLC, 43277-43278 2012-17922 Combined Filings, 43278-43280 2012-18010 2012-18011 2012-18013 Meetings: Eagle Crest Energy Eagle Mountain Pumped Storage Hydroelectric Project, 43280 2012-17920 Technical Conferences: Coordination Between Natural Gas and Electricity Markets, 43280-43281 2012-17921 Federal Motor Federal Motor Carrier Safety Administration NOTICES Qualifications of Drivers; Exemption Applications; Diabetes Mellitus, 43417-43418 2012-17976 Federal Reserve Federal Reserve System NOTICES Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 43284-43285 2012-18033 Proposals to Engage in or to Acquire Companies Engaged in Permissible Nonbanking Activities, 43285 2012-18032 Fiscal Fiscal Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Minority Bank Deposit Program Certification Form for Admission, 43428-43429 2012-17940 Fish Fish and Wildlife Service RULES Endangered and Threatened Wildlife and Plants: Captive-Bred Wildlife Registration Applications, 43170-43175 2012-17944 Listing Foreign Bird Species in Peru and Bolivia as Endangered Throughout Their Range, 43434-43467 2012-17402 PROPOSED RULES Endangered and Threatened Wildlife and Plants: 90-Day Finding on Petition to List Sonoran talussnail as Endangered or Threatened, 43218-43222 2012-17938 Designation of Critical Habitat for Tidewater Goby, 43222-43227 2012-17939 NOTICES Endangered and Threatened Wildlife and Plants: Incidental Take Permit; Proposed Low-Effect Habitat Conservation Plan; Marion County Utilities, Marion County, FL, 43349-43350 2012-17988 Environmental Assessments; Availability, etc.: San Diego Unified School District Jonas Salk Elementary School Project in San Diego, CA, 43350-43352 2012-17962 Food and Drug Food and Drug Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Labeling of Certain Beers Subject to the Labeling Jurisdiction of the Food and Drug Administration, 43335-43337 2012-18028 Drugs for Human Use; Drug Efficacy Study Implementation: Certain Prescription Drugs Offered for Various Indications; Opportunity to Affirm Outstanding Hearing Request, 43337-43342 2012-18015 Food and Nutrition Food and Nutrition Service NOTICES Child and Adult Care Food Program: National Average Payment Rates, Day Care Home Food Service Payment Rates, etc., 43229-43231 2012-18038 Food Distribution Program: Value of Donated Foods from July 1, 2012 through June 30, 2013, 43231-43232 2012-18035 National School Lunch, Special Milk, and School Breakfast Programs: National Average Payments/Maximum Reimbursement Rates, 43232-43234 2012-18039 Food Safety Food Safety and Inspection Service NOTICES Meetings: Codex Alimentarius Commission Committee on Fresh Fruits and Vegetables, 43234-43236 2012-17958 Foreign Assets Foreign Assets Control Office NOTICES Unblocking of Designated Individuals and Entities, 43429 2012-18030 Forest Forest Service NOTICES Meetings: North Central Idaho Resource Advisory Committee, 43236 2012-17981 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Community Living Administration See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration Health Resources Health Resources and Services Administration NOTICES Public Health Service Act Section 340B Registration Period, 43342-43343 2012-17969 Historic Historic Preservation, Advisory Council NOTICES Meetings, 43344-43345 2012-17941 Homeland Homeland Security Department See Coast Guard See U.S. Citizenship and Immigration Services Housing Housing and Urban Development Department NOTICES Federally Mandated Exclusions from Income, 43347-43349 2012-18056 Indian Affairs Indian Affairs Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Tribal Self-Governance Program, 43353 2012-17951 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Land Management Bureau See National Indian Gaming Commission See National Park Service See Ocean Energy Management Bureau See Office of Natural Resources Revenue Internal Revenue Internal Revenue Service RULES Disregarded Entities and Indoor Tanning Services Excise Tax: Correction, 43157-43158 2012-17959 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43429-43430 2012-17963 Justice Department Justice Department See Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: School Crime Supplement to National Crime Victimization Survey, 43365-43366 2012-18008 Labor Department Labor Department See Employment and Training Administration See Occupational Safety and Health Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Youthbuild Site Visit Protocols, 43367 2012-18001 Land Land Management Bureau NOTICES Meetings: Twin Falls District Resource Advisory Council, ID, 43353-43354 2012-17992 Legal Legal Services Corporation NOTICES Meetings; Sunshine Act, 43371-43373 2012-18175 National Highway National Highway Traffic Safety Administration PROPOSED RULES Denial of Motor Vehicle Defect Petition and Petition for Hearing, 43216-43218 2012-18060 National Indian National Indian Gaming Commission PROPOSED RULES Minimum Internal Control Standards and Technical Standards, 43196 2012-17649 National Institute National Institute of Standards and Technology NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Summer Undergraduate Research Fellowship Program Student Applicant Information, 43236-43237 2012-17942 Meetings: Malcolm Baldrige National Quality Award Panel of Judges, 43237 2012-18068 Public Workshops: Genome in a Bottle Consortium; Work Plan Review, 43237-43238 2012-18064 National Institute National Institutes of Health NOTICES Meetings: Eunice Kennedy Shriver National Institute of Child Health and Human Development, 43344 2012-18057 National Heart, Lung, and Blood Institute, 43343 2012-18071 National Institute of Diabetes and Digestive and Kidney Diseases, 43344 2012-18067 National Institute of Neurological Disorders and Stroke, 43343 2012-18070 National Oceanic National Oceanic and Atmospheric Administration NOTICES Takes of Marine Mammals Incidental to Specified Activities: Navy Training Conducted at the Silver Strand Training Complex, San Diego Bay, 43238-43259 2012-17972 Pile Driving for Honolulu Seawater Air Conditioning Project, 43259-43270 2012-18087 Taking and Importing Marine Mammals: Coastal Commercial Fireworks Displays at Monterey Bay National Marine Sanctuary, CA, 43270-43271 2012-17970 National Park National Park Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Submission of Offers in Response to Concession Opportunities, 43354 2012-17977 National Register of Historic Places: Pending Nominations and Related Actions, 43354-43355 2012-17971 National Science National Science Foundation NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43373-43374 2012-17989 Navy Navy Department NOTICES Environmental Impact Statements; Availability, etc.: Naval Air Station Key West Airfield Operations, FL, 43275-43276 2012-17983 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Biweekly Notice; Facility Operating Licenses and Combined Licenses: Applications and Amendments Involving No Significant Hazards Considerations, 43374-43382 2012-17869 Exemptions: Millstone Power Station Unit 2, 43382-43405 2012-17735 Final Standard Review Plans: Guidance for Evaluation of Diversity and Defense-in-Depth in Digital Computer-Based Instrumentation and Control Systems, 43405-43406 2012-18018 Meetings; Sunshine Act, 43406 2012-18129 Occupational Safety Health Adm Occupational Safety and Health Administration NOTICES Applications for Expansion of Recognition: TUV Rheinland of North America, Inc., 43370-43371 2012-17995 Ocean Energy Management Ocean Energy Management Bureau NOTICES Proposed Sales of Outer Continental Shelf Oil and Gas: Lease Sale 229 in Western Planning Area in Gulf of Mexico, 43355 2012-17965 Natural Resources Office of Natural Resources Revenue NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43355-43365 2012-18079 Office of United States Trade Representative See Trade Representative, Office of United States Presidential Documents Presidential Documents EXECUTIVE ORDERS Somalia; National Emergency, Additional Steps to Address (EO 13620), 43481-43485 2012-18237 Public Debt Public Debt Bureau See Fiscal Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 2012-18036 43430-43431 2012-18037 Rural Utilities Rural Utilities Service RULES Water and Waste Disposal Loans and Grants, 43149-43151 2012-18017 Securities Securities and Exchange Commission NOTICES Meetings; Sunshine Act, 43406-43407 2012-18076 Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc., 43408-43410 2012-17979 Options Clearing Corp., 43407-43408 2012-17978 Small Business Small Business Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: 8(a) Business Development Program, 43410-43411 2012-18080 Disaster Declarations: Georgia, 43411-43412 2012-17993 Major Disaster Declarations: Florida; Amendment 2, 43412 2012-18004 Florida; Amendment 4, 43412 2012-18002 State Department State Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Iraqi Citizens and Nationals Employed by Federal Contractors and Grantees, 43412-43413 2012-18040 Imposition of Nonproliferation Measures on Five Syrian Entities, 43413-43414 2012-18041 Statutory Debarments under Arms Export Control Act and International Traffic in Arms Regulations, 43414-43416 2012-18043 Substance Substance Abuse and Mental Health Services Administration NOTICES Meetings: Center for Substance Abuse Prevention, 43344 2012-18014 Trade Representative Trade Representative, Office of United States NOTICES Meetings: Industry Trade Advisory Committee on Small and Minority Business, 43416 2012-18016 Transportation Department Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration See National Highway Traffic Safety Administration NOTICES Applications for Commuter Authority: Star Marianas Air, Inc., 43416 2012-18042 Meetings: ITS Industry Forum on Connected Vehicles; Moving from Research Towards Implementation, 43416-43417 2012-17974 Treasury Treasury Department See Community Development Financial Institutions Fund See Fiscal Service See Foreign Assets Control Office See Internal Revenue Service See Public Debt Bureau U.S. Citizenship U.S. Citizenship and Immigration Services NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Permission to Reapply for Admission into United States after Deportation or Removal, 43346-43347 2012-17836 Application for Posthumous Citizenship, 43346 2012-17835 Sponsor's Notice of Change of Address, 43345-43346 2012-17317 Separate Parts In This Issue Part II Interior Department, Fish and Wildlife Service, 43434-43467 2012-17402 Part III Defense Department, Defense Acquisition Regulations System, 43470-43479 2012-17588 2012-17586 2012-17593 2012-17590 Part IV Presidential Documents, 43481-43485 2012-18237 Reader Aids Consult the Reader Aids section at the end of this page 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. 77 142 Tuesday, July 24, 2012 Rules and Regulations DEPARTMENT OF AGRICULTURE Rural Utilities Service 7 CFR Part 1777 RIN 0572-AC26 Water and Waste Disposal Loans and Grants AGENCY: Rural Utilities Service, USDA. ACTION: Final rule. SUMMARY: The Rural Utilities Service

(RUS)is amending its regulations related to the Section 306C Water and Waste Disposal

(WWD)Loans and Grants Program, which provides water and waste disposal facilities and services to low-income rural communities whose residents face significant health risks. Specifically, RUS is modifying the priority points system in order to give additional priority points to the colonias that lack access to water or waste disposal systems and face significant health problems. The intent is to ensure that the neediest areas receive funding. DATES: This rule is effective August 23, 2012. FOR FURTHER INFORMATION CONTACT: Jacqueline M. Ponti-Lazaruk, Assistant Administrator, Water and Environmental Programs, Rural Utilities Service, Rural Development, U.S. Department of Agriculture, 1400 Independence Avenue SW., STOP 1548, Room 5147 S, Washington, DC 20250-1590. Telephone number:

(202)720-2670, Facsimile:

(202)720-0718. SUPPLEMENTARY INFORMATION: Executive Order 12866 This 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. Executive Order 12988 This rule has been reviewed under Executive Order 12988, Civil Justice Reform. The Agency has determined that this rule meets the applicable standards provided in section 3 of that 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 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.* ). RUS provides loans to borrowers at interest rates and on 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. Information Collection and Recordkeeping Requirements This rule contains no new reporting or recordkeeping burdens under OMB control number 0572-0109 that would require approval under the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35). E-Government Act Compliance The Agency 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. Catalog of Federal Domestic Assistance The programs described by this rule are listed in the Catalog of Federal Domestic Assistance Programs under number 10.770 Water and Waste Disposal Loans and Grants (Section 306C). The Catalog is available on the Internet at *http://www.cfda.gov* . Executive Order 12372 This program is subject to the provisions of Executive Order 12372, Intergovernmental Consultation, 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 Mandate Reform Act of 1995) for State, local, and tribal governments or the private sector. Thus, this rule is not subject to the requirements of sections 202 and 205 of the Unfunded Mandate Reform Act of 1995. National Environmental Policy Act Certification The Agency 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. 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 Executive Order 13175 imposes requirements on Rural Development in the development of regulatory policies that have tribal implications or preempt tribal laws. Rural Development has determined that this 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. Additionally, during the Proposed Rule comment period no comments were filed by elected leaders or staff of Federally Recognized Indian Tribes. Thus, this final rule is not subject to the requirements of Executive Order 13175. If a tribe determines that this rule has implications of which Rural Development is not aware and would like to engage in consultation with Rural Development on this rule, please contact Rural Development's Native American Coordinator at

(720)544-2911 or *AIAN@wdc.usda.gov* . Background USDA Rural Development

(RD)is a mission area within the U.S. Department of Agriculture comprised of the Rural Housing Service, Rural Business/Cooperative Service and Rural Utilities Service. Rural Development's mission is to increase economic opportunity and improve the quality of life for all rural Americans. Rural Development meets its mission by providing loans, loan guarantees, grants and technical assistance through more than forty programs aimed at creating and improving housing, businesses and infrastructure throughout rural America. The RUS loan, loan guarantee and grant programs act as a catalyst for economic and community development. By financing improvements to rural electric, water and waste, and telecom and broadband infrastructure, RUS also plays a significant role in improving other measures of quality of life in rural America, including public health and safety, environmental protection, conservation, and cultural and historic preservation. The Consolidated Farm and Rural Development Act (CONACT) authorizes USDA to provide loans and grants for the development, storage, treatment, purification, or distribution of water; and for the collection, treatment, or disposal of waste in rural areas. Section 306C of the CONACT directs USDA to provide loans and grants to Indian Tribes and other targeted areas, such as colonias, for the construction of new water and waste systems, or for the extension or improvement of such systems, in rural areas. It should be noted that the changes to 7 CFR 1777 are meant to only affect those projects in colonias and do not change the agency's rules for administering assistance that is legislatively mandated to benefit Federally Recognized Indian Tribes. The loans and grants are to be available to provide these facilities only to communities whose residents face significant health risks, as determined by the Secretary, due to the fact that a significant proportion of the community's residents do not have access to, or are not served by, adequate affordable water supply systems or waste disposal facilities. The Agency provides such loans and grants through its regulation, 7 CFR 1777, providing assistance to colonias along the U.S. Mexican border. This rule will change the Rural Utilities Service's current prioritization of potential projects pursuant to 7 CFR part 1777, which is based upon a point system, wherein the greatest possible number of points

(50)is given to proposed projects that seek to provide water and/or waste disposal services to a colonia. Colonias are communities along the U.S.-Mexico border that are defined in 7 CFR 1777.4 as “Any identifiable community designated in writing by the State or county in which it is located; determined to be a colonia on the basis of objective criteria including lack of potable water supply, lack of adequate sewage systems, and lack of decent, safe and sanitary housing, inadequate roads and drainage; and existed and was generally recognized as a colonia before October 1, 1989.” RUS remains committed to improving the quality of, and access to, water and waste services in colonias areas, and often collaborates and coordinates with other federal and state funders to do so. Since 1993, RUS has provided $425.5 million in grants for 519 projects serving colonias areas. RUS has also provided funding to Rural Development's Rural Housing Service customers, resulting in $22,137,827 worth of assistance to 6,693 colonia households, which provided access to community water and waste systems. In addition, USDA continues to work with state and local partners to seek new ways to improve program delivery in these areas. In December 2009, the Government Accountability Office

(GAO)released a report describing a number of perceived inadequacies in Federal Government programs across various agencies focused on assisting colonias areas. In the report, GAO recommended that the Secretary of Agriculture direct Rural Development to revise its process to ensure that the agency only provide Section 306C colonia funds to projects that benefit colonias, as defined by Federal statute. While USDA disagrees with GAO's assertion that 306C funds are currently allocated contrary to statutory intent, the Agency understands that more should be done to ensure that colonias areas most in need, especially those that remain unserved, are better targeted for funding. In an effort to better serve colonias areas, and to address concerns raised by GAO, RUS amends 7 CFR 1777 as it pertains to projects serving colonias. Purpose of This Final Rule This final rule clarifies 7 CFR 1777.12 by including specific information on documentation to support a determination of a significant health risk. The rule also revises 7 CFR 1777.13 to specifically focus on the priority point system used in selecting projects for 306C funding. This will ensure that the colonias that lack access to water or waste disposal systems, and face significant health problems, are given priority consideration for 306C funding. Comments RUS published a proposed rulemaking in the **Federal Register** on March 9, 2012 at 77 FR 14307 and invited interested parties to comment. One public submission was received with regard to the need for funding and education in colonias area. No other comments were received from any other source. A summary of the submission and the Agency's response is summarized as follows: *Issue 1:* Commenter agreed that the efforts of the Department of Agriculture to provide further funding in the form of grants for potable water and proper waste management is a good course of action. *Response:* Agency concurs. *Issue 2:* Commenter suggested that education and training must be a key component in granting aid. *Response:* Agency concurs. RUS has technical assistance providers that work with colonias areas in terms of education and training. *Issue 3:* Commenter would like USDA RD to focus on employment projects, as this will begin to lessen dependency on federal aid. *Response:* Agency concurs. RUS believes that modern, reliable water and waste infrastructure can provide the foundation for economic growth and future employment opportunities in colonias areas. List of Subjects in 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. For the reasons discussed in the preamble, the Agency amends 7 CFR part 1777 as follows: PART 1777—SECTION 306C WWD LOANS AND GRANTS 1. The authority citation continues to read as follows: Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 U.S.C. 1005. 2. Amend § 1777.12 add a sentence to the end of paragraph

(b)introductory text and add paragraphs (b)(1) through

(4)to read as follows: § 1777.12 Eligibility.

(b)* * * The following requirements regarding the documentation must be followed:

(1)The originating documentation must come from an independent third party source that has the experience in specifying the health or sanitary problem that currently exists.

(2)The documentation must state specifically the health or sanitary problems that exist. General statements of problems or support for the project are not acceptable.

(3)Current users of the facility must be experiencing the current health or sanitary problem and not future or possible users.

(4)If no facility exists, documentation must include specific health and sanitary problems associated with individual facilities that currently exist to warrant the health and sanitary determination. 3. Revise § 1777.13 to read as follows: § 1777.13 Project priority. Paragraphs

(a)through

(d)of this section indicate 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 applicant eligibility and the proposed project's priority for available funds. Applicants determined ineligible will be advised of their appeal rights in accordance with 7 CFR part 11.

(b)*State Office review.* All applications will be processed and scored in the area office and then reviewed for funding priority at the State Office using RUS Bulletin 1777-2. Eligible applicants that cannot be funded will be advised that funds are not available and advised of their appeal rights as set forth in 7 CFR part 11.

(c)*National Office.* The National Office will allocate funds on a project-by-project basis as requests are received from the State Office. If the amount of funds requested exceeds the amount of funds available, the total project score will be used to select projects for funding. The RUS Administrator may assign up to 35 additional points which will be considered in the total points for items such as geographic distribution of funds, severity of health risks, etc. Unobligated funds will be pooled by mid-August of each year and made available to all States with eligible colonias applicants on a case-by-case basis.

(d)*Selection priorities.* The priorities described below will be used to rate applications and in selecting projects for funding. Points will be distributed as indicated in paragraphs (d)(1) through (d)(6) of this section and will be used in selecting projects for funding.

(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 5,500—10 points.

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

(i)Not in excess of 50 percent of the statewide nonmetropolitan median household income—40 points.

(ii)More than 50 percent and not in excess of 60 percent of the statewide nonmetropolitan median household income—20 points.

(iii)More than 60 percent and not in excess of 70 percent of the statewide nonmetropolitan median household income—10 points.

(3)*Joint financing.* The amount of joint financing committed to the proposed project is:

(i)Twenty percent or more private, local, or State funds except Federal funds channeled through a State agency—10 points.

(ii)Five to 19 percent private, local, or State funds except Federal funds channeled through a State agency—5 points.

(4)*Colonia.* (See definition in § 1777.4). The proposed project will provide water and/or waste disposal services to the residents of a colonia:—50 points. Additional points will be assigned as follows:

(5)*Access and health risks for colonias.*

(i)A colonia that lacks access to both water and waste disposal facilities, resulting in a significant health risk—50 points.

(ii)A colonia that lacks access to either water or waste disposal facilities, resulting in a significant health risk—40 points.

(iii)A colonia that has access to water and waste disposal facilities, but is facing a significant health risk—15 points.

(6)*Discretionary.* In certain cases, and when a written justification is prepared, the State Program Official with loan/grant approval authority may assign up to 15 points for items such as natural disaster, to improve compatibility/coordination between RUS' and other agencies' selection systems, to assist those projects that are the most cost effective, high unemployment rate, severity of health risks, etc. Dated: July 18, 2012. Jonathan Adelstein, Administrator, Rural Utilities Service. [FR Doc. 2012-18017 Filed 7-23-12; 8:45 am]

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