Emergency and Imminent community Water Assistance Grants

Rural Utilities Service, USDA

§ 1778.1

amended to comply with State law and
recommendations by the Office of General Counsel. It may also be amended
to eliminate references to loans and/or
grants if no loan and/or grant is involved. The State Program Official is
responsible for:
(1) Ensuring that all provisions of the
Agreement are understood.
(2) Determining that the applicant
has the ability to make and service
loans and/or grants in the manner outlined in the Agreement.
(c) Agency funds remaining after providing individual loans and/or grants
will be returned to the Agency. The
funds should be disbursed to individuals within 1 year from the date water
and/or waste disposal service is available to the individuals. The State Program Official can make an exception to
this 1 year requirement if written justification is provided by the applicant.
§ 1777.42 Delegation of authority.
The State Program Official is responsible for the overall implementation of
the authorities contained in this part
and may redelegate any such authority
to appropriate Agency employees.
§ 1777.43 Bulletins.
RUS Bulletin 1780–12 referenced in
part 1780 of this chapter and RUS Bulletin 1777–1, 1777–2 and 1777–3 are for use
in administering loans and/or grants
made under this part. Bulletins, instructions and forms are available from
any USDA/Rural Development office or
the Rural Utilities Service, United
States Department of Agriculture,
Washington, DC 20250–1500.
§§ 1777.44–1777.99

[Reserved]

§ 1777.100 OMB control number.
The reporting and recordkeeping requirements contained in this part have
been approved by the Office of Management and Budget and assigned OMB
control number 0570–0001. Public reporting burden for this collection of information is estimated to vary from 5
to 30 hours per response with an average of 17.5 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed,
and completing and reviewing the col-

lection of information. Send comments
regarding this burden estimate or any
other aspect of this collection of information, including suggestions for reducing this burden, to U.S. Department
of Agriculture, Clearance Officer,
OIRM, Room 404–W, Washington, DC
20250; and to the Office of Information
and Regulatory Affairs, Office of Management and Budget, Washington, DC
20503.

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.
1778.32–1778.33 [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.
SOURCE: 68 FR 46078, Aug. 5, 2003, unless
otherwise noted.

§ 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

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§ 1778.2

7 CFR Ch. XVII (1–1–06 Edition)

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.
Statewide
Nonmetropolitan
Median
Household Income (SNMHI). Median
household income of the State’s nonmetropolitan counties and portions of
metropolitan counties outside of cities,
towns or places of 50,000 or more population.
[68 FR 46078, Aug. 5, 2003, as amended at 69
FR 65519, Nov. 15, 2004]

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Rural Utilities Service, USDA
§ 1778.5

§ 1778.7

[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 avail-

able. 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

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§ 1778.8

7 CFR Ch. XVII (1–1–06 Edition)

(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 meas-

ures, 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

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Rural Utilities Service, USDA

§ 1778.21

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
§ 1778.21

[Reserved]

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

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§ 1778.22

7 CFR Ch. XVII (1–1–06 Edition)

the Agency may be requested by the
applicant in accordance with 7 CFR
part 11.
§ 1778.22 Planning
procurement.

development

and

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.

§ 1778.32–1778.33

§ 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.

(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.

§ 1778.36

§§ 1778.24–1778.30

§§ 1778.38–1778.99

§ 1778.31

[Reserved]

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.

[Reserved]

[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.
[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.

PART 1779—WATER AND WASTE
DISPOSAL PROGRAMS GUARANTEED LOANS
Sec.
1779.1 General.
1779.2 Definitions.
1779.3 Full faith and credit.
1779.4 Conditions of guarantee.
1779.5–1779.7 [Reserved]
1779.8 Access to lender’s records.
1779.9 Environmental requirements.
1779.10–1779.11 [Reserved]
1779.12 Inspections.
1779.13 Appeals.
1779.14–1779.16 [Reserved]
1779.17 Exception authority.
1779.18–1779.19 [Reserved]
1779.20 Eligibility.
1779.21–1779.23 [Reserved]

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