59770 Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations
§ 1776.18 OMB control number. carry a postmark or equivalent no later ‘‘Intergovernmental Review of Federal
The information collection than November 5, 2004. Comments Programs’’, as implemented under
requirements in this part are approved regarding the information collection USDA’s regulations at 7 CFR Part 3015.
by the Office of Management and requirements under the Paperwork
Executive Order 12988
Budget (OMB) and assigned OMB Reduction Act must be received on or
control number 0572–0139. before December 6, 2004, to be assured This direct final rule has been
of consideration. reviewed under Executive Order 12988,
Dated: September 2, 2004.
ADDRESSES: Submit adverse comments Civil Justice Reform. RUS has
Curtis M. Anderson, determined that this proposed rule
Acting Administrator, Rural Utilities Service. or notice of intent to submit adverse
comments by any of the following meets the applicable standards provided
[FR Doc. 04–22448 Filed 10–5–04; 8:45 am] in section 3 of the Executive Order. In
BILLING CODE 3410–15–P
• Federal eRulemaking Portal: Go to addition all State and local laws and
http://www.regulations.gov. Follow the regulations that are in conflict with this
online instruction for submitting rule will be preempted; no retroactive
DEPARTMENT OF AGRICULTURE effect will be given to the rule; and, in
• Agency Web Site: http://www. accordance with Section 212(e) of the
Rural Utilities Service Department of Agriculture
Follow the instructions for submitting Reorganization Act of 1994 (7 U.S.C.
7 CFR Part 1783 6912(e)) administrative appeal
RIN 0572–AB95 • E-mail: RUSComments@usda.gov. procedures, if any are required, must be
Include in the subject line of the exhausted prior to initiating any action
Grant Program To Establish a Fund for against the Department or its agencies.
message ‘‘7 CFR 1783.’’
Financing Water and Wastewater
• Mail: Addressed to Richard Annan, Regulatory Flexibility Act Certification
Projects (Revolving Fund Program
Acting Director, Program Development
(RFP)) Pursuant to 5 U.S.C. 553(a)(2), this
and Regulatory Analysis, Rural Utilities
proposed rule related to grants is
AGENCY: Rural Utilities Service, USDA. Service, United States Department of
exempt from the rulemaking
ACTION: Direct final rule. Agriculture, 1400 Independence
requirements of the Administrative
Avenue, STOP 1522, Washington, DC
SUMMARY: The Rural Utilities Service
Procedure Act, 5 U.S.C. 551 et seq.,
(RUS or the Agency) is issuing a • Hand Delivery/Courier: Addressed including the requirement to provide
regulation to establish the Grant to Richard Annan, Acting Director, prior notice and an opportunity for
Program to Establish a Fund for Program Development and Regulatory public comment. Because this proposed
Financing Water and Wastewater Analysis, Rural Utilities Service, United rule is not subject to a requirement to
Projects (Revolving Fund Program States Department of Agriculture, 1400 provide prior notice and an opportunity
(RFP)) as authorized by the Independence Avenue, SW., Room for public comment pursuant to 5 U.S.C.
Consolidated Farm and Rural 5168–S, Washington, DC 20250–1522. 553, or any other law, the analytical
Development Act (CONACT), as Instructions: All submissions received requirements of the Regulatory
amended by section 6002 of the Farm must include ‘‘Rural Utilities Service’’ Flexibility Act, 5 U.S.C. 601 et seq. are
Security and Rural Investment Act of and the subject heading ‘‘7 CFR 1783.’’ inapplicable.
2002 (Farm Bill). The Secretary may All comments received must identify Executive Order 13132, Federalism
make grants to qualified, private, non- the name of the individual (and the The policies contained in this rule do
profit entities. Grant Recipients will name of the entity, if applicable) who is not have any substantial direct effect on
make loans to eligible entities to finance submitting the comment. All comments states, on the relationship between the
pre-development costs associated with received will be posted without change national government and the states, or
proposed water and wastewater projects to http://www.usda.gov.rus.index2. on the distribution of power and
or with existing water and wastewater Comments.htm, including any personal responsibilities among the various
systems, and short-term costs incurred information provided. levels of government. Nor does this rule
for replacement equipment, small-scale FOR FURTHER INFORMATION CONTACT: impose substantial direct compliance
extension of services, or other small Stephen Saulnier, Loan Specialist, costs on states and local governments.
capital projects that are not part of the Water Programs Division, Rural Utilities Therefore, consultation with states is
regular operations and maintenance Service, U.S. Department of Agriculture, not required.
activities of existing water and 1400 Independence Avenue, SW., Room
wastewater systems. 2235–S, Stop 1570, Washington, DC Information Collection and
DATES: This rule will become effective 20250–1570. Telephone (202) 690–2526. Recordkeeping Requirements
November 22, 2004, unless RUS E-Mail: firstname.lastname@example.org. In accordance with the Paperwork
receives written adverse comments or a SUPPLEMENTARY INFORMATION: Reduction Act of 1995 (44 U.S.C.
written notice of intent to submit chapter 35) RUS is requesting comments
adverse comments on or before Executive Order 12866 on the information collection
November 5, 2004. If RUS receives such This direct final rule has been incorporated in this proposed rule.
comments or notice, the Agency will determined to be not significant for the Comments on this information
publish a timely notice in the Federal purposes of Executive Order 12866 and, collection must be received by
Register withdrawing the rule. therefore, has not been reviewed by the December 6, 2004.
Comments received will be considered Office of Management and Budget Comments are invited on: (a) Whether
under the proposed rule published in (OMB). the collection of information is
this edition of the Federal Register in necessary for the proper performance of
the proposed rule section. A second Executive Order 12372 the functions of the agency, including
public comment period will not be held. This rule is not subject to the whether the information will have
Comments must be received by RUS or requirements of Executive Order 12372, practical utility; (b) the accuracy of the
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Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations 59771
agency’s estimate of the burden not significantly affect the quality of the developing the regulation to implement
including the validity of the human environment as defined by the the grant program.
methodology and assumption used; (c) National Environmental Policy Act of The Administrator of RUS is required
ways to enhance the quality, utility and 1969 (42 U.S.C. 4321 et seq.). Therefore, to prescribe regulations to implement
clarity of the information to be this action does not require an the provisions of the CONACT. Rural
collected; and (d) ways to minimize the environmental impact statement or Utilities Service will be relying heavily
burden of the collection of information assessment. on existing regulations within the Rural
on those who are to respond, including Development Program in order to
Catalog of Federal Domestic Assistance develop regulations for this new
through the use of automated electronic,
mechanical, or other technological The programs described by this program.
collection techniques or other forms of proposed rule are listed in the Catalog A Notice of Inquiry was published in
information technology. of Federal Domestic Assistance the Federal Register, Thursday,
Title: 7 CFR part 1783, Revolving Programs under numbers 10–864, February 12, 2004 at 69 CFR Part 6937,
Fund Program. Revolving Fund Program Grant. This requesting interested parties to review
OMB Control Number: 0582–0138. catalog is available on a subscription the CONACT and comment on six
Type of Request: Approval for basis from the Superintendent of topics. The comment period closed on
collection. Documents, the United States March 15, 2004. RUS received responses
Abstract: The information collections Government Printing Office, from six parties; National Rural Water
contained in this rule are requirements Washington, DC, 20402–9325, telephone Association (NRWA), Association of
prescribed by the Consolidated Farm number (202) 512–1800. State Drinking Water Administrators
and Rural Development Act (CONACT) (ASDWA), Rural Community Assistance
(7 U.S.C. 1926(a)), as amended. Unfunded Mandates Program (RCAP), Midwest Assistance
The primary reason for the This rule contains no Federal Program (MAP), Community Resource
promulgation of the proposed collection mandates (under the regulatory Group (CRG), and South Central Illinois
of information under this rule is to provision of Title II of the Unfunded Regional Planning & Development
implement the Revolving Fund Mandates Reform Act of 1995) for State, Commission (SCIRP&DC). The topics,
Program. local, and tribal governments or the comments, and Agency responses as
RUS applicants would submit an private sector. Thus this rule is not follows:
application for consideration of grant (1) RUS is seeking comments on a
subject to the requirements of section
funding, and if selected for funding, requirement for current lending
202 and 205 of the Unfunded Mandates
submit quarterly reports, as prescribed experience of potential grant applicants.
Reform Act of 1995. ASDWA did not feel they were able
by the rule. The collection of
information is only that information Background to comment on this topic. SCIRP&DC
which is essential for RUS to award and was in favor of requiring current lending
On May 13, 2002, the Farm Security experience of potential grant applicants.
service grants in the best interest of the and Rural Investment Act of 2002 (Farm
Government. CRG, MAP, and RCAP believe that the
Bill) was signed into law as Public Law applicant should have the demonstrated
Estimate of Burden: Public reporting 107–171. Section 6002 of the Farm Bill
burden for this collection of information capacity and financial ability to provide
amended the Consolidated Farm and on-site technical assistance to the
is estimated to average 8.2 hours per Rural Development Act (CONACT), by
response. borrowers, both before and after a loan
adding a grant program to establish a is made. RCAP further recommends that
Respondents: Not-for-profit revolving loan fund. The Secretary may
institutions. RUS base its criteria for determining
make grants to qualified, private, non- applicants’ qualifications on the criteria
Estimated Number of Respondents: 5. profit entities. The grant recipients will
Estimated Number of Responses per outlined in regulations for USDA’s
use the grant funds to establish a Intermediary Relending Program (7 CFR
revolving loan fund. The loans will be Part 4274). RCAP believes this would
Estimated Total Annual Burden on
made to eligible entities to finance allow the Agency flexibility to award a
Respondents: 313 hours.
Copies of this information collection predevelopment costs of water or grant to a non-profit that may not have
can be obtained from MaryPat Daskal, wastewater projects, or short-term small significant loan making experience.
Program Development and Regulatory capital projects not part of the regular The Agency’s position is that in order
Analysis, Rural Utilities Service. operation and maintenance of current to fulfill its fiduciary and oversight
Telephone: (202) 720–7853. water and wastewater systems. responsibilities, the primary experience
Send comments regarding this Eligible entities for the revolving loan for an applicant is a successful record of
information collection requirement to fund will be the same entities eligible to making and servicing loans.
Richard Annan, Acting Director, obtain a loan, loan guarantee, or grant (2) RUS is also interested in
Program Development and Regulatory from the Rural Utilities Service Water comments regarding a proposed
Analysis, USDA, Rural Utilities Service, and Waste Disposal and Wastewater minimum 20 percent matching funds
1400 Independence Ave., SW., Room loan and grant programs. The amount of contribution by the grant recipient.
5168, Stop 1522, Washington, DC financing to an eligible entity shall not Should in-kind contributions be
20250–1522. exceed $100,000.00 and shall be repaid accepted as part of the 20 percent
Comments must be received on or in a term not to exceed 10 years. The minimum?
before 30 days of publication in the rate shall be determined in the approved All respondents except NRWA agree
Federal Register. All comments will grant work plan. with a minimum 20 percent match.
become a matter of public record. No funds were appropriated for the NRWA did not comment on this topic.
grant program for fiscal years (FY) 2002 CRG believes that above a 20 percent
National Environmental Policy Act and FY 2003. However, the match should not favor one area of the
Certification Consolidated Appropriations Act, 2004 country above another and the cash
The Administrator of RUS has (Pub. L. 108–199) included $500,000.00 match should be proportionate to every
determined that this proposed rule will for the grant program. Therefore, we are loan. All loan losses should come out of
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59772 Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations
the matching funds. MAP recommends and RCAP believe that the 75 percent The Agency is required to follow the
that more points should be given for a maximum may restrict or deter definition of eligible as set forth in the
greater than 20 percent match only borrowers from seeking financing authorizing legislation of the CONACT.
when two or more applications are from through this program. MAP further The Agency will, to the extent possible
the same region of the country. RCAP believes that this requirement will within the parameters of the authorizing
recommends that priority points be create a financial burden to low-income legislation, be flexible in determining
awarded for a match above 20 percent. communities. the specific projects that qualify as
The Agency’s position is to require a The Agency’s response is to establish eligible.
minimum 20 percent matching funds a maximum loan amount of the lesser of
contribution by the grant recipient. General Comments
$100,000 or 75 percent of the total costs
Contributions by the grant recipient of the project in order to focus program (1) ASDWA believes that, historically,
signal a serious intent to invest in the funding of small capital projects. The the primary vehicle to provide low-
project as well as increasing the overall authorizing legislation sets a maximum interest loans water and wastewater
size of the loan fund from which loans loan amount of $100,000. The Agency systems is through the Drinking Water
shall be made, thereby increasing the believes that the lesser of $100,000 or 75 State Revolving Funds and the Clean
number of potential loan recipients. The percent of the cost of the project will Water State Revolving Funds and that
Agency agrees with RCAP’s allow for a greater number of loans to Federal funds should be channeled
recommendation and will award be made and also comply with the through these mechanisms. ASDWA
priority points for greater than 20 authorizing legislation. believes all water projects should be
percent match. (5) RUS is interested in comments aligned with state drinking water
(3) RUS is interested in comments regarding the use of the Central priorities.
regarding the percentage of the grant Servicing Center (http://
funds that may be used for The Agency’s response is that it is not
www.rurdev.usda.gov/rhs/sfh/ authorize to roll funds for the Revolving
administrative or servicing fees. bor_sfh.htm) for servicing loans made
ASDWA believes that 6 percent Fund Program into the existing USDA
from the revolving loan fund, to include loan and grant program or through the
would be reasonable although the processing loan payments, reviewing
current allowable percentage for the Drinking Water State Revolving Funds
financial statements, and other and the Clean Water State Revolving
Drinking Water State Revolving Fund is responsibilities involved in loan
4 percent. SCIRP&DC recommends a Funds.
servicing. (2) SCIRP&DC suggest that revolving
rate of 2 to 3 percent is adequate.
SCIRP&DC further recommends 0.5 ASDWA had no comment. SCIRP&DC fund grants be made to regional
percent be incorporated into the loan wants to service the loans in house and planning commissions that are familiar
rate for debt servicing. CRG believes that has a proven track record. MAP with state and local funding options.
no Federal or match funds should be recommends not utilizing the Central NRWA believes funds for the Revolving
used for administrative fees. Interest Servicing Center. Both CRG and RCAP Fund Program would be more
and fees earned from loans should be believe maintaining servicing in house effectively used within the existing
used to fund loan loss reserves. MAP allows the lender to stay close to USDA loan and grant program. Cost of
believes that allowable eligible costs as borrowers and alerts the lender to any administering such a small program will
described in the authorizing Farm Bill potential problems. Also, using a third significantly outweigh any potential
language are adequate. RCAP party for servicing would raise costs. benefits.
recommends that Federal funds not be The Agency agrees with SCIRP&DC, The Agency’s response is that the
used for administrative costs. MAP, CRG, and RCAP that the grant CONACT, as amended by the Farm Bill,
Administrative costs should come from recipient should service loans made added a grant program to establish a
matching funds. NRWA believes that from the Revolving Fund Program. The revolving loan fund. The Secretary may
administrative costs and overhead direct final rule, 7 CFR Part 1783, does make grants to qualified, private, non-
should be minimal. not require loans made from the profit entities, not state agencies. As
The Agency’s position is to maximize Revolving Fund Program to be serviced with current RUS water and waste
the use of limited grants dollars in order by the Central Servicing Center. disposal projects, loans made under this
to fund the greatest number of projects (6) RUS is also seeking comments on program will be coordinated with state
possible, therefore, grant funds may not the definition of eligible and ineligible agencies.
be used for payment of the projects for the loans made from the
All comments received were taken
intermediary’s administrative cost or revolving loan fund.
into consideration in developing the
expenses. Interest collected from loans ASDWA wants the lender to consult
made by the intermediary may be used with state agencies in defining eligible
to cover reasonable administrative costs. projects. SCIRP&DC believes that List of Subjects in 7 CFR Part 1783
(4) RUS is seeking comments on the reasonable administrative fees for
issue of the revolving fund paying up to providing guidance/technical assistance Business and industry, Community
a maximum of 75 percent of the project should be an eligible project. CRG development, Community facilities,
costs, with the other 25 percent of recommends that pre-development, Grant programs-housing and community
project costs paid from non-Federal upgrades, or extending service should development, Reporting and
sources. have the same eligibility requirements recordkeeping requirements, Rural
ASDWA had no objection. SCIRP&DC as the regular RUS Water and Waste areas, Waste treatment and disposal,
has some confusion between the Disposal Loan Program. RCAP believes Water supply, Watersheds.
organization’s match funding a that projects financed under this For reasons set forth in the preamble,
maximum of 75 percent of project costs. program should be coordinated with the RUS amends chapter XVII of Title 7 of
CRG believes limiting Federal State Rural Development Office. RCAP the Code of Federal Regulations by
participation to no more than 75 percent also presents a long list of eligible adding a new Part 1783 to read as
of project costs is reasonable. Both MAP projects they feel should be included. follows:
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Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations 59773
PART 1783—REVOLVING FUNDS FOR (b) This program is subject to the § 1783.4 [Reserved]
FINANCING WATER AND uniform administrative requirements
WASTEWATER PROJECTS that apply to all grants made by USDA Subpart B—Revolving Loan Program
(REVOLVING FUND PROGRAM) to non-profit organizations and that are Grants
set forth in 7 CFR Part 3019—Uniform 1783.5 What are the eligibility criteria for
Subpart A—General Administrative Requirements for Grants grant recipients?
Sec. And Agreements with Institutions of (a) The applicant must be a private
1783.1 What is the purpose of the Higher Education, Hospitals, and Other entity.
Revolving Fund Program? Non-Profit Organizations.
1783.2 What Uniform Federal Assistance
(b) The applicant must be organized
(c) This program is subject to OMB as a non-profit entity.
Provisions apply to the Revolving Fund
Program? Circular No. A–122 (Revised): Cost (c) The applicant must have the legal
1783.3 What definitions are used in this Principles for Non-Profit Organizations. capacity and lawful authority to perform
regulation? the obligations of a grantee under this
§ 1783.3 What definitions are used in this
1783.4 [Reserved] part.
Subpart B—Revolving Loan Program Example 1 to paragraph (c): If the
Administrative expenses means organization is incorporated as a non-profit
Grants expenses incurred by a grant recipient corporation, it must have corporate authority
1783.5 What are the eligibility criteria for that are of the type more particularly under state law and its corporate charter to
grant recipients? described in § 1783.12. engage in the practice of making loans to
1783.6 When will applications for grants be legal entities.
Applicant means a private, non-profit
accepted? Example 2 to paragraph (c): If the
1783.7 What is the grant application organization that applies for an RFP
grant under this part. organization is an unincorporated
process? association, state law may prevent the
1783.8 What are the acceptable methods for CONACT means the Consolidated organization from entering into binding
submitting applications? Farm and Rural Development Act. contracts, such as a grant agreement.
1783.9 What are the criteria for scoring Eligible entity means an entity eligible
applications? to obtain a loan, loan guarantee or grant (d) The applicant must have sufficient
1783.10 What is the grant agreement? under paragraph 1 or paragraph 2 of expertise and experience in making and
1983.11 What is the revolving loan fund? section 306(a) the CONACT (codified at servicing loans to assure the likelihood
1783.12 What are eligible uses of grant
7 U.S.C. 1926(a)(1) and (2)). that the objectives of this part can be
1783.13 What administrative expenses may Grant agreement means the contract
be funded with grant proceeds? between RUS and the grant recipient § 1783.6 When will applications for grants
which sets forth the terms and be accepted?
Subpart C—Revolving Loan Program Loans conditions governing a particular grant In Fiscal Year 2004, applications will
1783.14 What are the eligibility criteria for awarded under this part. be accepted for this RFP grant program
RFP loan recipients? Grant recipient means a private, non- from October 6, 2004, until December 6,
1783.15 What are the terms of RFP loans?
profit entity that has been awarded a 2004, at which time the initial
1783.16 How will loans from the revolving
fund be serviced? grant under this part. application period shall close. An
Loan recipient means an eligible applicant may withdraw, substitute,
Authority: 7 U.S.C. 1926 (a)(2)(B). entity that has received an RFP loan. amend or supplement its application at
Revolved funds means the cash any time prior to the closing of the
portion of the revolving loan fund that initial application period. Once the
§ 1783.1 What is the purpose of the is not composed of RFP grant funds, initial application period has closed, all
Revolving Fund Program? including cash comprising repayments applications shall be considered final.
This part sets forth the policies and of RFP loans, fees relating to RFP loans For subsequent fiscal years, if any funds
procedures for making grants to and interest collected on RFP loans. for this program are available, the
qualified private, non-profit entities to Revolving loan fund means the loan Secretary will publish a notice to that
capitalize revolving funds for the fund established by the grant recipient effect. The notice will establish the
purpose of providing financing to to carry out the purposes of this part, period during which applications for
eligible entities for pre-development such fund comprising the proceeds of such funds may be submitted for
costs associated with proposed water an RFP grant and other related assets. consideration.
and wastewater projects or with existing RFP means Revolving Fund Program.
§ 1783.7 What is the grant application
water and wastewater systems, and RFP grant means a grant from RUS to process?
short-term costs incurred for a grant recipient under this part. (a) The applicant must complete and
replacement equipment, small-scale RFP loan means a loan from a grant submit the following items to RUS to
extension of services, or other small recipient using the direct or indirect apply for a grant under this part:
capital projects that are not part of the proceeds of an RFP grant awarded under (1) Application for Federal
regular operations and maintenance this part. Assistance: Standard Form 424;
activities of existing water and Rural and rural area means a city, (2) Budget Information—Non-
wastewater systems. town or unincorporated area that has a Construction Programs: Standard Form
population of no more than 10,000 424A;
§ 1783.2 What Uniform Federal Assistance inhabitants, according to the latest (3) Assurances—Non-Construction
Provisions apply to the Revolving Fund decennial census of the United States. Programs: Standard Form 424B;
RUS means the Rural Utilities (4) Evidence of applicant’s legal
(a) This program is subject to the Service, a Federal agency delivering the existence and authority in the form of
general provisions that apply to all USDA’s Rural Development Utilities certified copies of organizational
grants made by USDA and that are set Program. documents and a certified list of
forth in 7 CFR Part 3015—Uniform USDA means the United States directors and officers with their
Federal Assistance Regulations. Department of Agriculture. respective terms;
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59774 Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations
(5) Evidence of tax exempt status, and § 1783.9 What are the criteria for scoring previous experiences demonstrating
(6) Most recent annual audit applications? excellent utilization of a revolving loan
conducted by an independent auditor. (a) Applications that are incomplete fund grant; and optimizing the use of
(b) The applicant must submit a or ineligible will be returned to the agency resources. Up to 10 points.
written work plan that demonstrates the applicant, accompanied by a statement (c) All qualifying applications under
ability of the applicant to make and explaining why the application is being this part will be scored based on the
service loans to eligible entities under returned. criteria contained in this section.
this program and the feasibility of the (b) Promptly after an application Awards will be made based on the
applicant’s lending program to meet the period closes, all applications that are highest ranking applications and the
objectives of this part. complete and eligible will be ranked amount of financial assistance available
(c) The applicant should submit a competitively based on the following for RFP grants. All applicants will be
narrative establishing the basis for any scoring criteria: notified of the results in writing on form
claims that it has substantial expertise (1) Degree of expertise and successful AD–622.
in making and servicing loans. The experience in making and servicing
§ 1783.10 What is the grant agreement?
Secretary will give priority to an commercial loans, with a successful
record, for the following number of full RUS and the grant recipient will enter
applicant that demonstrates it has into a contract setting forth the terms
substantial experience of this type. years:
(i) At least 1 but less than 3 years— and conditions governing a particular
(d) The applicant may submit such RFP grant award. RUS will furnish the
additional information as it elects to form of grant agreement. No funds
(ii) At least 3 but less than 5 years—
support and describe its plan for awarded under this part shall be
achieving the objectives of the part. (iii) At least 5 but less than 10 years— disbursed to the grant recipient before
§ 1783.8 What are the acceptable methods 20 points the grant agreement is binding and RUS
for submitting applications? (iv) 10 or more years—30 points has received a fully executed
(2) Extent to which the work plan counterpart of the grant agreement.
(a) Applications for RFP grants may
demonstrates a well thought out,
be submitted by U.S. Mail. Applications § 1783.11 What is the revolving loan fund?
comprehensive approach to
submitted by mail must be addressed as The grant recipient shall establish and
accomplishing the objectives of this
follows: Rural Utilities Service, U.S. maintain a revolving loan fund for the
part, clearly defines who will be served
Department of Agriculture, 1400 purposes set forth in § 1783.12. The
by the project, clearly articulates the
Independence Avenue, SW., STOP revolving loan fund shall be comprised
problem/issues to be addressed,
1548, Washington, DC 20250–1548. The of revolving loan fund grant funds and
identifies the service area to be covered
outside of the application should be the grant recipient’s contributed funds.
by the RFP loans, and appears likely to
marked: ‘‘Attention: Assistant All revolving loan fund loans made to
be sustainable. Up to 40 points.
Administrator, Water and loan recipients shall be drawn from the
(3) Percentage of applicant
Environmental Programs.’’ Applications revolving loan fund. All revolving loan
contributions. Points allowed under this
submitted by mail must be postmarked fund loans shall be serviced and the
paragraph will be based on written
not later than the filing deadline to be revolving loan fund maintained, in
evidence of the availability of funds
considered during the period for which accordance with this part and
from sources other than the proceeds of
the application was submitted. applicable law.
an RFP grant to pay part of the cost of
(b) In lieu of submitting an a loan recipient’s project. In-kind
application by U.S. Mail, an applicant § 1783.12 What are eligible uses of grant
contributions will not be considered. proceeds?
may file its application electronically by Funds from other sources as a
using the Federal Government’s eGrants percentage of the RFP grant and points (a) Grant proceeds shall be used solely
Web site (Grants.gov) at http:// for the purpose of establishing the
corresponding to such percentages are revolving loan fund to provide loans to
www.grants.gov. Applicants should refer as follows:
to instructions found on the Grants.gov eligible entities for:
(i) Less than 20%—ineligible (1) Pre-development costs associated
Web site for procedures for registering (ii) At least 20% but less than 50%—
and using this facility. Applicants who with proposed water and wastewater
10 points projects or with existing water and
have not previously registered on (iii) 50% or more—20 points
Grants.gov should allow a sufficient wastewater systems, and
(4) Extent to which the goals and (2) Short-term costs incurred for
number of business days to complete objectives are clearly defined, tied to the
the process necessary to be qualified to replacement equipment, small-scale
work plan, and are measurable. Up to 15 extension of services, or other small
apply for Federal Government grants points.
using electronic submissions. Electronic capital projects that are not part of the
(5) Lowest ratio of projected regular operations and maintenance
submissions must be filed not later than administrative expenses to loans
the filing deadline to be considered activities of existing water and
advanced. Up to 10 points. wastewater systems.
during the period for which the (6) The evaluation methods for (b) A grant recipient may not use
application was submitted. considering loan applications and grant funds in any manner inconsistent
(c) The methods of submitting making RFP loans are specific to the with the terms of the grant agreement.
applications may be changed from time program, clearly defined, measurable,
to time to reflect changes in addresses and are consistent with program § 1783.13 What administrative expenses
and electronic submission procedures. outcomes. Up to 20 points. may be funded with grant proceeds?
Applicants should refer to the most (7) Administrator’s discretion, RFP grant funds may not be used for
recent notice of funding availability for considering such factors as creative any purposes not described in
notice of any such changes. In the event outreach ideas for marketing RFP loans § 1783.12, including, without limitation,
of any discrepancy, the information to rural residents; the amount of funds payment or reimbursement of any of the
contained in the notice must be requested in relation to the amount of grant recipient’s administrative costs or
followed. needs demonstrated in the work plan; expenses. Administrative expenses may,
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Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations 59775
however, be paid or reimbursed from Dated: September 2, 2004. ceremonies, the parade, galas, and balls.
revolving loan fund assets that are not Curtis M. Anderson, The inaugural committee also receives
RFP grant funds, including revolved Acting Administrator, Rural Utilities Service. special privileges in the District of
funds and cash originally contributed by [FR Doc. 04–22446 Filed 10–5–04; 8:45 am] Columbia beginning five days before
the grant recipient. BILLING CODE 3410–15–P and ending four days after the inaugural
ceremony. Chapter 5 of title 36 of the
Subpart C—Revolving Fund Program United States Code authorizes Congress
Loans FEDERAL ELECTION COMMISSION to make appropriations for the
§ 1783.14 What are the eligibility criteria inauguration, however, the
for RFP loan recipients? 11 CFR Parts 104 and 110 appropriations are limited to funding for
[Notice 2004–13] the District of Columbia to pay for the
(a) A loan recipient must be an
eligible entity as defined in § 1783.3. costs of municipal services associated
Presidential Inaugural Committee
(b) The loan recipient must be unable with the inaugural events. Accordingly,
Reporting and Prohibition on
to finance the proposed project from the inaugural committee accepts
Accepting Donations From Foreign
their own resources or through Nationals donations to cover the costs associated
commercial credit at reasonable rates with all other inaugural events.
AGENCY: Federal Election Commission.
and terms. BCRA section 308 amended 36 U.S.C.
ACTION: Final rules and transmittal of
(c) The loan recipient must have or 510 to require the inaugural committee
regulations to Congress.
will obtain the legal authority necessary to disclose, in a report filed with the
for owning, constructing, operating and SUMMARY: The Federal Election Commission within 90 days after the
maintaining the proposed service or Commission is promulgating new rules inaugural ceremony, certain donations
facility, and for obtaining, giving regarding disclosure requirements for made to the inaugural committee, and to
security for, and repaying the proposed Presidential inaugural committees. The ban the inaugural committee from
loan. new rules also ban inaugural accepting donations from foreign
(d) The project funded by the committees from accepting donations nationals. Accordingly, the Commission
proceeds of an RFP loan must be located from foreign nationals. These is adding new 11 CFR 104.21 to its
in, or the services provided as the result regulations implement requirements of reporting rules, in 11 CFR part 104, to
of such project must benefit, rural areas. the Bipartisan Campaign Reform Act of set forth inaugural committee reporting
2002. Further information is provided in requirements. The Commission is also
§ 1783.15 What are the terms of RFP the Supplementary Information that
loans? adding to the rules regarding foreign
follows. nationals at 11 CFR 110.20 a new
(a) RFP loans under this part— EFFECTIVE DATE: November 5, 2004. paragraph banning both the acceptance
(1) Shall have an interest rate that is FOR FURTHER INFORMATION CONTACT: Mr. by inaugural committees of donations
determined by the grant recipient and Brad C. Deutsch, Assistant General from foreign nationals, as well as the
approved by RUS; Counsel, or Ms. Esa L. Sferra, Attorney, making of such donations.
(2) Shall have a terms not to exceed 999 E Street, NW., Washington, DC
Under the Administrative Procedures
10 years; and 20463, (202) 694–1650 or (800) 424–
9530. Act, 5 U.S.C. 553(d), and the
(3) Shall not exceed the lesser of Congressional Review of Agency
$100,000 or 75 percent of the total cost SUPPLEMENTARY INFORMATION: Section Rulemaking Act, 5 U.S.C. 801(a)(1),
of a project. The total outstanding 308 of the Bipartisan Campaign Reform agencies must submit final rules to the
balance for all loans under this program Act of 2002 (‘‘BCRA’’), Public Law 107– Speaker of the House of Representatives
to any one entity shall not exceed 1555, 116 Stat. 81 (March 27, 2002),
and the President of the Senate and
$100,000. amended 36 U.S.C. 510 by establishing
publish them in the Federal Register at
(b) The grant recipient must set forth new requirements for Presidential
least 30 calendar days before they take
the RFP loan terms in written inaugural committees regarding
reporting and acceptance of certain effect. The final rules on inaugural
documentation signed by the loan committees were transmitted to
recipient. donations. The Commission is issuing
these final rules to implement these new Congress on September 30, 2004.
(c) Grant recipients must develop and
requirements for inaugural committees. Explanation and Justification
use RFP loan documentation that The Presidential inaugural committee
conforms to the terms of this part, the is appointed by the President-elect to be On April 7, 2004, the Commission
grant agreement, and the laws of the in charge of the Presidential inaugural published a Notice of Proposed
state or states having jurisdiction. ceremony and the functions and Rulemaking (‘‘NPRM’’) in the Federal
§ 1783.16 How will the loans given from activities connected with the ceremony. Register containing proposed rules to
the revolving fund be serviced? 36 U.S.C. 501(1). The inaugural implement BCRA’s amendment to 36
committee plans and finances all U.S.C. 510 that requires disclosure of
The grant recipient shall be
inaugural events, other than the certain donations to Presidential
responsible for servicing all loans, to
swearing-in ceremony at the Capitol and inaugural committees and bans the
include preparing loan agreements,
the luncheon honoring the President acceptance of donations from foreign
processing loan payments, reviewing
and Vice-President,1 including opening nationals by Presidential inaugural
financial statements and debt reserves
balances, and other responsibilities such committees. 69 FR 18301 (April 7,
1 The Joint Congressional Committee on Inaugural
as enforcement of loan terms. Loan Ceremonies, which is formed by a Congressional
2004). The Commission sought
servicing will be in accordance with the resolution every four years, several months in comments on several issues raised in
work plan approved by the Agency advance of the Presidential election, plans and the NPRM and on the proposed rules in
finances the Presidential inaugural events held at general. The comment period ended
when the grant is awarded for as long the Capitol, including the swearing-in ceremony
as any loan made in whole or in part and the Congressional luncheon to honor the May 7, 2004. The Commission received
with Agency grant funds is outstanding. President and Vice-President. three comments, two from individuals
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