Farm Security and Investment Act of 2002

PUBLIC LAW 107-171-MAY 13, 2002

FARM SECURITY AND RURAL INVESTMENT
ACT OF 2002

116 STAT. 352

PUBLIC LAW 107-171—MAY 13, 2002

TITLE VI—RURAL DEVELOPMENT
Subtitle A—Consolidated Farm and Rural
Development Act
SEC. 6001. ELIGIBILITY OF RURAL EMPOWERMENT ZONES AND RURAL
ENTERPRISE COMMUNITIES FOR DIRECT AND GUARANTEED LOANS FOR ESSENTIAL COMMUNITY FACILITIES.

Section 306(a)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(1)) is amended by inserting after the
first sentence the following: "The Secretary may also make or
insure loans to communities that have been designated as rural
empowerment zones or rural enterprise communities pursuant to
part I of subchapter U of chapter 1 of the Internal Revenue Code
of 1986, or as rural enterprise communities pursuant to section
766 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (Public Law
105-277; 112 Stat. 2681, 2681-37), to provide for the installation
or improvement of essential community facilities including necessary related equipment, and to furnish financial assistance or
other aid in planning projects for such purposes.".
SEC. 6002. WATER OR WASTE DISPOSAL GRANTS.

Section 306(a)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(2)) is amended—
(1) by striking "(2) The" and inserting the following:
"(2) WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY
GRANTS.—
"(A) AUTHORITY.—
"(i) IN GENERAL.—The";
(2) by striking "aggregating not to exceed $590,000,000
in any fiscal year";
(3) by striking "The amount" and inserting the following:
"(ii) AMOUNT.—The amount";
(4) by striking "paragraph" and inserting "subparagraph";
(5) by striking "The Secretary shall" and inserting the
following:
"(iii) GRANT RATE.—The Secretary shall"; and
(6) by adding at the end the following:
"(B) REVOLVING FUNDS FOR FINANCING WATER AND
WASTEWATER PROJECTS.—
"(i) IN GENERAL—The Secretary may make grants
to qualified private, nonprofit entities to capitalize
revolving funds for the purpose of providing financing
to eligible entities for—
"(I) predevelopment costs associated with proposed water and wastewater projects or with
existing water and wastewater systems; and
"(II) short-term costs incurred for replacement
equipment, small-scale extension services, or other
small capital projects that are not part of the
regular operations and maintenance activities of
existing water and wastewater systems.
"(ii) ELIGIBLE ENTITIES.—To be eligible to obtain
financing from a revolving fund under clause (i), an

PUBLIC LAW 107-171—MAY 13, 2002

116 STAT. 353

eligible entity must be eligible to obtain a loan, loan
guarantee, or grant under paragraph (1) or this paragraph.
"(iii) MAXIMUM AMOUNT OF FINANCING.—The
amount of financing made to an eligible entity under
this subparagraph shall not exceed—
"(I) $100,000 for costs described in clause (i)(I);
and
"(II) $100,000 for costs described in clause
(i)(II).
"(iv) TERM.—The term of financing provided to
an eligible entity under this subparagraph shall not
exceed 10 years.
"(v) ADMINISTRATION.—The Secretary shall limit
the amount of grant funds that may be used by a
grant recipient for administrative costs incurred under
this subparagraph.
"(vi) ANNUAL REPORT.—A nonprofit entity receiving
a grant under this subparagraph shall submit to the
Secretary an annual report that describes the number
and size of communities served and the type of
financing provided.
"(vii) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this
subparagraph $30,000,000 for each of fiscal years 2002
through 2007.".
SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.

Section 306(a)(11)(D) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended—
(1) by striking 17,500,000" and inserting 115,000,000";
and
(2) by striking "2002" and inserting "2007".
SEC. 6004. CHILD DAY CARE FACILITIES.

Section 306(a)(19) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(19)) is amended by adding at the end
the following:
"(C) RESERVATION OF FUNDS FOR CHILD DAY CARE
FACILITIES.—
"(i) IN GENERAL.—For each fiscal year, not less
than 10 percent of the funds made available to carry
out this paragraph shall be reserved for grants to
pay the Federal share of the cost of developing and
constructing day care facilities for children in rural
areas.
"(ii) RELEASE.—Funds reserved under clause (i)
for a fiscal year shall be reserved only until April
1 of the fiscal year.".
SEC. 6005. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) is amended by adding at the end
the following:
"(22) RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.—

116 STAT. 354

PUBLIC LAW 107-171—MAY 13, 2002
"(A) IN GENERAL.—The Secretary shall establish a
national rural water and wastewater circuit rider program
that is based on the rural water circuit rider program
of the National Rural Water Association that (as of the
date of enactment of this paragraph) receives funding from
the Secretary, acting through the Rural Utilities Service.
"(B) RELATIONSHIP TO EXISTING PROGRAM.—The program established under subparagraph (A) shall not affect
the authority of the Secretary to carry out the circuit
rider program for which funds are made available under
the heading "RURAL COMMUNITY ADVANCEMENT PROGRAM"
in title III of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations Act, 2002 (115 Stat. 719).
"(C) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this paragraph
$15,000,000 for fiscal year 2003 and each fiscal year thereafter.".

SEC. 6006. MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.

Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) (as amended by section 6005) is
amended by adding at the end the following:
"(23) IVIULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.—
"(A) GRANTS.—The Secretary shall provide grants to
multijurisdictional regional planning and development
organizations to pay the Federal share of the cost of providing assistance to local governments to improve the infrastructure, services, and business development capabilities
of local governments and local economic development
organizations.
"(B) PRIORITY.—In determining which organizations
will receive a grant under this paragraph, the Secretary
shall give priority to an organization that—
"(i) serves a rural area that, during the most recent
5-year period—
"(I) had a net out-migration of inhabitants,
or other population loss, from the rural area that
equals or exceeds 5 percent of the population of
the rural area; or
"(II) had a median household income that is
less than the nonmetropolitan median household
income of the applicable State; and
"(ii) has a history of providing substantive assistance to local governments and economic development
organizations.
"(C) FEDERAL SHARE.—A grant provided under this
paragraph shall be for not more than 75 percent of the
cost of providing assistance described in subparagraph (A).
"(D) MAXIMUM AMOUNT OF GRANTS.—The amount of
a grant provided to an organization under this paragraph
shall not exceed $100,000.
"(E) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this paragraph
$30,000,000 for each of fiscal years 2003 through 2007.".

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116 STAT. 355

SEC. 6007. LOAN GUARANTEES FOR CERTAIN RURAL DEVELOPMENT
LOANS.

(a) LOAN GUARANTEES FOR WATER, WASTEWATER, AND ESSENTIAL COMMUNITY FACILITIES LOANS.—Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1925(a)) (as 7 USC 1926.
amended by section 6006) is amended by adding at the end the
following:
"(24) LOAN GUARANTEES FOR WATER, WASTEWATER, AND
ESSENTIAL COMMUNITY FACILITIES LOANS.—
"(A) IN GENERAL.—The Secretary may guarantee a loan
made to finance a community facility or water or waste
facility project in a rural area, including a loan financed
by the net proceeds of a bond described in section 142(a)
of the Internal Revenue Code of 1986.
"(B) REQUIREMENTS.—To be eligible for a loan guarantee under subparagraph (A), an individual or entity
offering to purchase the loan shall demonstrate to the
Secretary that the person has—
"(i) the capabilities and resources necessary to
service the loan in a manner that ensures the continued performance of the loan, as determined by the
Secretary; and
"(ii) the ability to generate capital to provide borrowers of the loan with the additional credit necessary
to properly service the loan.".
(b) LOAN GUARANTEES FOR CERTAIN LOANS.—Section 310B of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1932)
is amended by adding at the end the following:
"(h) LOAN GUARANTEES FOR CERTAIN LOANS.—The Secretary
may guarantee loans made under subsection (a) to finance the
issuance of bonds for the projects described in section 306(a)(24).".
SEC. 6008. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY
FACILITIES.

Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) (as amended by section 6007(a)) is
amended by adding at the end the following:
"(25) TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY FACILITIES.—
"(A) IN GENERAL.—The Secretary may make grants
to tribal colleges and universities (as defined in section
316 of the Higher Education Act of 1965 (20 U.S.C. 1059c))
to provide the Federal share of the cost of developing
specific tribal college or university essential community
facilities in rural areas.
"(B) FEDERAL SHARE.—
"(i.) IN GENERAL.—Except as provided in clauses Regulation.
(ii) and (iii), the Secretary shall, by regulation, establish the maximum percentage of the cost of the facility
that may be covered by a grant under this paragraph.
"(ii) MAXIMUM AMOUNT.—The amount of a grant
provided under this paragraph for a facility shall not
exceed 75 percent of the cost of developing the facility.
"(iii) GRADUATED SCALE.—The Secretary shall provide for a graduated scale of the percentages of the
cost covered by a grant made under this paragraph
that provides higher percentages for facilities in

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PUBLIC LAW 107-171—MAY 13, 2002
communities that have lower community population
and income levels, as determined by the Secretary.
"(C) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this paragraph
$10,000,000 for each of fiscal years 2003 through 2007.".

SEC. 6009. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT PROGRAM.

Section 306A of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926a) is amended—
(1) in the section heading, by inserting "AND IMMINENT"
after "EMERGENCY";
(2) in subsection (a)—
(A) in paragraph (1), by inserting "' or when such
a decline is imminent" before the semicolon at the end;
and
(B) in paragraph (2)—
(i) in subparagraph (A), by striking "acute" and
inserting "acute, or imminent,"; and
(ii) in subparagraph (B), by striking "decline" and
inserting "decline, or imminent decline,".
(3) in subsection (c)(2), by striking "occurred" and inserting
"occurred, or will occur,";
(4) in subsection (d), by striking paragraph (1) and inserting
the following:
"(1) IN GENERAL.—Grants made under this section may
be used—
"(A) for waterline extensions from existing systems,
laying of new waterlines, repairs, significant maintenance,
digging of new wells, equipment replacement, and hook
and tap fees;
"(B) for any other appropriate purpose associated with
developing sources of, treating, storing, or distributing
water;
"(C) to assist communities in complying with the
requirements of the Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.) or the Safe Drinking Water Act
(42 U.S.C. 300f et seq.); and
"(D) to provide potable water to communities through
other means.";
(5) in subsection (f)(2), by striking 175,000" and inserting
1150,000";
(6) in subsection (h)—
(A) in the second sentence of paragraph (1), by striking
"decline" and inserting "decline, or imminent decline,"; and
(B) by striking paragraph (2) and inserting the following:
"(2) TIMING OF REVIEW OF APPLICATIONS.—
"(A) SIMPLIFIED APPLICATION.—The application process
developed by the Secretary under paragraph (1) shall
include a simplified application form that will permit expedited consideration of an application for a grant filed under
this section.
"(B) PRIORITY REVIEW.—In processing applications for
any water or waste grant or loan authorized under this
title, the Secretary shall afford priority processing to an
application for a grant under this section to the extent

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116 STAT. 357

funds will be available for an award on the application
at the conclusion of priority processing.
"(C) TIMING.—The Secretary shall, to the maximum
extent practicable, review and act on an application under
this section within 60 days after the date on which the
application is submitted to the Secretary."; and
(7) by striking subsection (i) and inserting the following:
"(i) FUNDING.—
"(1) RESERVATION.—
"(A) IN GENERAL—For each fiscal year, not less than
3 nor more than 5 percent of the total amount made available to carry out section 306(a)(2) for the fiscal year shall
be reserved for grants under this section.
"(B) RELEASE.—Funds reserved under subparagraph
(A) for a fiscal year shall be reserved only until July 1
of the fiscal year.
"(2) AUTHORIZATION OF APPROPRIATIONS.—In addition to
funds made available under paragraph (1), there is authorized
to be appropriated to carry out this section $35,000,000 for
each of fiscal years 2003 through 2007.".
SEC. 6010. WATER AND WASTE FACILITY GRANTS FOR NATIVE AMERICAN TRIBES.

Section 306C of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926c) is amended by striking subsection (e) and
inserting the following:
"(e) AUTHORIZATION OF APPROPRIATIONS.—
"(1) IN GENERAL—Subject to paragraph (2), there are
authorized to be appropriated—
"(A) for grants under this section, $30,000,000 for each
fiscal year;
"(B) for loans under this section, $30,000,000 for each
fiscal year; and
"(C) in addition to grants provided under subparagraph
(A), for grants under this section to benefit Indian tribes
(as defined in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b)),
$20,000,000 for each fiscal year.
"(2) EXCEPTION.—An entity eligible to receive funding
through a grant made under section 306D shall not be eligible
for a grant from funds made available under paragraph (1)(C).".
SEC. 6011. GRANTS FOR WATER SYSTEMS FOR RURAL AND NATIVE
VILLAGES IN ALASKA.

Section 306D(d)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking
"and 2002" and inserting "through 2007".
SEC. 6012. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE
CONSTRUCTION, REFURBISHING, AND SERVICING OF
INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR
MODERATE INCOMES.

(a) IN GENERAL—The Consolidated Farm and Rural Development Act is amended by inserting after section 306D (7 U.S.C.
1926d) the following:

116 STAT. 358
7 USC 1926e.

7 USC 1926e
note.

PUBLIC LAW 107-171—MAY 13, 2002

"SEC. 306E. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE
CONSTRUCTION, REFURBISHING, AND SERVICING OF
INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR
MODERATE INCOMES.

"(a) DEFINITION OF ELIGIBLE INDIVIDUAL—In this section, the
term 'eligible individual' means an individual who is a member
of a household the members of which have a combined income
(for the most recent 12-month period for which the information
is available) that is not more than 100 percent of the median
nonmetropolitan household income for the State or territory in
which the individual resides, according to the most recent decennial
census of the United States.
"(b) GRANTS.—
"(1) IN GENERAL—The Secretary may make grants to private nonprofit organizations for the purpose of providing loans
to eligible individuals for the construction, refurbishing, and
servicing of individual household water well systems in rural
areas that are or will be owned by the eligible individuals.
"(2) TERMS OF LOANS.—A loan made with grant funds under
this section—
"(A) shall have an interest rate of 1 percent;
"(B) shall have a term not to exceed 20 years; and
"(C) shall not exceed $8,000 for each water well system
described in paragraph (1).
"(3) ADMINISTRATIVE EXPENSES.—A recipient of a grant
made under this section may use grant funds to pay administrative expenses associated with providing the assistance described
in paragraph (1), as determined by the Secretary.
"(c) PRIORITY IN AWARDING GRANTS.—In awarding grants under
this section, the Secretary shall give priority to an applicant that
has substantial expertise and experience in promoting the safe
and productive use of individually-owned household water well systems and ground water.
"(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $10,000,000 for each
of fiscal years 2003 through 2007.".
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
takes effect on October 1, 2002.
SEC. 6013. LOANS AND LOAN GUARANTEES FOR RENEWABLE ENERGY
SYSTEMS.

Section 310B(a)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a)(3)) is amended by inserting "and other
renewable energy systems (including wind energy systems and
anaerobic digestors for the purpose of energy generation)" after
"solar energy systems".
SEC. 6014. RURAL BUSINESS ENTERPRISE GRANTS.

Section 310B(c)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(c)(1)) is amended—
(1) by striking "(1) IN GENERAL—The Secretary" and
inserting the following:
"(1) GRANTS.—
"(A) IN GENERAL—The Secretary"; and
(2) by adding at the end the following:

PUBLIC LAW 107-171—MAY 13, 2002

116 STAT. 359

"(B) SMALL AND EMERGING PRIVATE BUSINESS ENTERPRISES.—
"(i) IN GENERAL.—For the purpose of subparagraph
(A), a small and emerging private business enterprise
shall include (regardless of the number of employees
or operating capital of the enterprise) an eligible nonprofit entity, or other tax-exempt organization, with
a principal office in an area that is located—
"(I) on land of an existing or former Native
American reservation; and
"(II) in a city, town, or unincorporated area
that has a population of not more than 5,000
inhabitants
"(ii) USE OF GRANT.—An eligible nonprofit entity,
or other tax exempt organization, described in clause
(i) may use assistance provided under this paragraph
to create, expand, or operate value-added processing
in an area described in clause (i) in connection with
production agriculture.
PRIORITY.—In making grants under this paragraph, the Secretary shall give priority to grants that
will be used to provide assistance to eligible nonprofit
entities and other tax exempt organizations described
in clause (i).".
SEC. 6015. RURAL COOPERATIVE DEVELOPMENT GRANTS.

Section 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is amended—
(1) in paragraph (5)(F), before the period at the end the
following: , except that the Secretary shall not require nonFederal financial support in an amount that is greater than
5 percent in the case of a 1994 institution (as defined in
section 532 of the Equity in Educational Land-Grant Status
Act of 1994 (7 U.S.C. 301 note; Public Law 103-382))"; and
(2) in paragraph (9), by striking "2002" and inserting
"2007".
SEC. 6016. GRANTS TO BROADCASTING SYSTEMS.

Section 310B(f) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(f)) is amended by adding at the end
the following:
"(3) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $5,000,000
for each of fiscal years 2002 through 2007.".
SEC. 6017. BUSINESS AND INDUSTRY LOAN MODIFICATIONS.

Section 310B of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932) is amended by striking subsection (g) and
inserting the following:
"(g) BUSINESS AND INDUSTRY DIRECT AND GUARANTEED
LOANS.—
"(1) DEFINITION OF BUSINESS AND INDUSTRY LOAN.—In this
subsection, the term 'business and industry loan' means a business and industry direct or guaranteed loan that is made or
guaranteed by the Secretary under subsection (a)(1).
"(2) LOAN GUARANTEES FOR THE PURCHASE OF COOPERATIVE
STOCK.—

116 STAT. 360

PUBLIC LAW 107-171—MAY 13, 2002
"(A) IN GENERAL.—The Secretary may guarantee a
business and industry loan to individual farmers or
ranchers for the purpose of purchasing capital stock of
a farmer or rancher cooperative established for the purpose
of processing an agricultural commodity.
"(B) PROCESSING CONTRACTS DURING INITIAL PERIOD.—
A cooperative described in subparagraph (A) for which
a farmer or rancher receives a guarantee to purchase stock
under subparagraph (A) may contract for services to process
agricultural commodities, or otherwise process value-added
agricultural products, during the 5-year period beginning
on the date of the startup of the cooperative in order
to provide adequate time for the planning and construction
of the processing facility of the cooperative.
"(C) FINANCIAL INFORMATION.—Financial information
required by the Secretary from a farmer or rancher as
a condition of making a business and industry loan guarantee under this paragraph shall be provided in the manner
generally required by commercial agricultural lenders in
the area.
"(3) LOANS TO COOPERATIVES.—
"(A) IN GENERAL.—The Secretary may make or guarantee a business and industry loan to a cooperative
organization that is headquartered in a metropolitan area
if the loan is used for a project or venture described in
subsection (a) that is located in a rural area or a loan
guarantee that meets the requirements of paragraph (6).
"(B) REFINANCING.—A cooperative organization that is
eligible for a business and industry loan shall be eligible
to refinance an existing business and industry loan with
a lender if—
"(1) the cooperative organization—
"(I) is current and performing with respect
to the existing loan; and
"(II) is not, and has not been, in payment
default, or the collateral of which has not been
converted, with respect to the existing loan; and
"(ii) there is adequate security or full collateral
for the refinanced loan.
"(4) LOAN APPRAISALS.—The Secretary may require that
any appraisal made in connection with a business and industry
loan be conducted by a specialized appraiser that uses standards that are similar to standards used for similar purposes
in the private sector, as determined by the Secretary.
"(5) FEES.—The Secretary may assess a 1-time fee for any
guaranteed business and industry loan in an amount that does
not exceed 2 percent of the guaranteed principal portion of
the loan.
"(6) LOAN GUARANTEES IN NONRURAL AREAS.—
"(A) IN GENERAL.—The Secretary may guarantee a
business and industry loan to a cooperative organization
for a facility that is not located in a rural area if—
"(i) the primary purpose of the loan guarantee
is for a facility to provide value-added processing for
agricultural producers that are located within 80 miles
of the facility;

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116 STAT. 361

"(ii) the applicant demonstrates to the Secretary
that the primary benefit of the loan guarantee will
be to provide employment for residents of a rural area;
and
"(iii) the total amount of business and industry
loans guaranteed for a fiscal year under this paragraph
does not exceed 10 percent of the business and industry
loans guaranteed for the fiscal year under subsection
(a)(1).
"(B) PRINCIPAL AMOUNTS.—The principal amount of a
business and industry loan guaranteed under this paragraph may not exceed $25,000,000.
"(7) INTANGIBLE ASSETS.—In determining whether a
cooperative organization is eligible for a guaranteed business
and industry loan, the Secretary may consider the market
value of a properly appraised brand name, patent, or trademark
of the cooperative.
"(8) LIMITATIONS ON LOAN GUARANTEES FOR COOPERATIVE
ORGANIZATIONS.—
"(A) PRINCIPAL AMOUNT.—
"(i.) IN GENERAL.—Subject to clause (ii), the prin-

cipal amount of a business and industry loan made
to a cooperative organization and guaranteed under
this subsection shall not exceed $40,000,000.
"(ii) USE.—To be eligible for a guarantee under
this subsection for a business and industry loan made
to a cooperative organization, the principal amount
of the any such loan in excess of $25,000,000 shall
be used to carry out a project—
"(I) in a rural area; and
"(II) that provides for the value-added processing of agricultural commodities.
"(B) APPLICATIONS.—If a cooperative organization submits an application for a guarantee under this subsection
of a business and industry loan with a principal amount
that is in excess of $25,000,000, the Secretary—
"(i) shall review and, if appropriate, approve the
application; and
"(ii) may not delegate the approval authority.
"(C) MAXIMUM AMOUNT.—The total amount of business
and industry loans made to cooperative organizations and
guaranteed for a fiscal year under this subsection with
principal amounts that are in excess of $25,000,000 may
not exceed 10 percent of the business and industry loans
guaranteed for the fiscal year under subsection (a)(1).".
SEC. 6018. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR
OTHER PURPOSES.

Subtitle A of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1921 et seq.) (as amended by section 5006) is amended
by adding at the end the following:
"SEC. 310G. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR
OTHER PURPOSES.

"If, after making a loan or a grant described in section 381E(d),
the Secretary determines that the circumstances under which the
loan or grant was made have sufficiently changed to make the
project or activity for which the loan or grant was made available

7 USC 1936a.

116 STAT. 362

PUBLIC LAW 107-171—MAY 13, 2002

no longer appropriate, the Secretary may allow the loan borrower
or grant recipient to use property (real and personal) purchased
or improved with the loan or grant funds, or proceeds from the
sale of property (real and personal) purchased with such finds,
for another project or activity that (as determined by the Secretary)—
"(1) will be carried out in the same area as the original
project or activity;
"(2) meets the criteria for a loan or a grant described
in section 381E(d); and
"(3) satisfies such additional requirements as are established by the Secretary.".
SEC. 6019. SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES.

Section 333A of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1983a) (as amended by section 5307) is amended
by striking subsection (g) and inserting the following:
"(g) SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES.—
"(1) IN GENERAL—The Secretary shall provide to lenders
a short, simplified application form for guarantees under this
title of—
"(A) farmer program loans the principal amount of
which is $125,000 or less; and
"(B) business and industry guaranteed loans under
section 310B(a)(1) the principal amount of which is—
"(i) in the case of a loan guarantee made during
fiscal year 2002 or 2003, $400,000 or less; and
"(ii) in the case of a loan guarantee made during
any subsequent fiscal year—
"(I) $400,000 or less; or
"(II) if the Secretary determines that there
is not a significant increased risk of a default
on the loan, $600,000 or less.
"(2) WATER AND WASTE DISPOSAL GRANTS AND LOANS.—
The Secretary shall develop an application process that accelerates, to the maximum extent practicable, the processing of
applications for water and waste disposal grants or direct or
guaranteed loans under paragraph (1) or (2) of section 306(a)
the grant award amount or principal loan amount, respectively,
of which is $300,000 or less.
"(3) ADMINISTRATION.—In developing an application under
this subsection, the Secretary shall—
"(A) consult with commercial and cooperative lenders;
and
"(B) ensure that—
"(i) the form can be completed manually or electronically, at the option of the lender;
"(ii) the form minimizes the documentation
required to accompany the form;
"(iii) the cost of completing and processing the
form is minimal; and
"(iv) the form can be completed and processed in
an expeditious manner.".
SEC. 6020. DEFINITION OF RURAL AND RURAL AREA.

(a) IN GENERAL.—Section 343(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)) is amended by adding
at the end the following:

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116 STAT. 363

"(13) RURAL AND RURAL AREA.—
"(A) IN GENERAL—Except as otherwise provided in
this paragraph, the terms 'rural' and 'rural area' mean
any area other than—
a city or town that has a population of greater
than 50,000 inhabitants; and
"(ii) the urbanized area contiguous and adjacent
to such a city or town.
"(B) WATER AND WASTE DISPOSAL GRANTS AND DIRECT
AND GUARANTEED LOANS.—For the purpose of water and
waste disposal grants and direct and guaranteed loans
provided under paragraphs (1), (2), and (24) of section
306(a), the terms 'rural' and 'rural area' mean a city, town,
or unincorporated area that has a population of no more
than 10,000 inhabitants.
"(C) COMMUNITY FACILITY LOANS AND GRANTS.—For the
purpose of community facility direct and guaranteed loans
and grants under paragraphs (1), (19), (20), (21), and (24)
of section 306(a), the terms 'rural' and 'rural area' mean
a city, town, or unincorporated area that has a population
of not more than 20,000 inhabitants.
"(D) MULTIJURISDICTIONAL REGIONAL PLANNING
ORGANIZATIONS; NATIONAL RURAL DEVELOPMENT PARTNERSHIP.—In sections 306(a)(23) and 378, the term 'rural area'
means—
"(i) all the territory of a State that is not within
the boundary of any standard metropolitan statistical
area; and
"(ii) all territory within any standard metropolitan
statistical area within a census tract having a population density of less than 20 persons per square mile,
as determined by the Secretary according to the most
recent census of the United States as of any date.
"(E) RURAL BUSINESS INVESTMENT PROGRAM.—In subtitle H, the term 'rural area' means an area that is
located—
"(i) outside a standard metropolitan statistical
area; or
"(ii) within a community that has a population
of 50,000 inhabitants or less.".
(b) CONFORMING AMENDMENTS.—
(1) Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) is amended by striking
paragraph (7).
(2) Section 381A of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009) is amended—
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively.
(3) Section 735 of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appro7 USC 2009 note.
priations Act, 1999 (112 Stat. 2681-29) is repealed.
SEC. 6021. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) (as amended by section 5321) is amended
by adding at the end the following:

116 STAT. 364
7 USC 2008m.

Establishment.

PUBLIC LAW 107-171—MAY 13, 2002

"SEC. 378. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

"(a) DEFINITIONS.—In this section:
"(1) AGENCY WITH RURAL RESPONSIBILITIES.—The term
'agency with rural responsibilities' means any executive agency
(as defined in section 105 of title 5, United States Code) that
implements a Federal law, or administers a program, targeted
at or having a significant impact on rural areas.
"(2) COORDINATING COMMITTEE.—The term 'Coordinating
Committee' means the National Rural Development Coordinating Committee established by subsection (c).
"(3) PARTNERSHIP.—The term 'Partnership' means the
National Rural Development Partnership continued by subsection (b).
"(4) STATE RURAL DEVELOPMENT COUNCIL.—The term 'State
rural development council' means a State rural development
council that meets the requirements of subsection (d).
"(b) PARTNERSHIP.—
"( 1) IN GENERAL.—The Secretarir shall continue the
National Rural Development Partnership composed of—
"(A) the Coordinating Committee; and
"(B) State rural development councils.
"(2) PURPOSES.—The purposes of the Partnership are to
empower and build the capacity of States and rural communities to design flexible and innovative responses to their own
special rural development needs, with local determinations of
progress and selection of projects and activities.
"(3) GOVERNING PANEL.—
"(A) IN GENERAL.—A panel consisting of representatives of the Coordinating Committee and State rural
development councils shall be established to lead and
coordinate the strategic operation, policies, and practices
of the Partnership
"(B) ANNUAL REPORTS.—In conjunction with the Coordinating Committee and State rural development councils,
the panel shall prepare and submit to Congress an annual
report on the activities of the Partnership.
"(4) ROLE OF FEDERAL GOVERNMENT.—The role of the Federal Government in the Partnership may be that of a partner
and facilitator, with Federal agencies authorized—
"(A) to cooperate with States to implement the Partnership;
"(B) to provide States with the technical and administrative support necessary to plan and implement tailored
rural development strategies to meet local needs;
"(C) to ensure that the head of each agency with rural
responsibilities designates a senior-level agency official to
represent the agency on the Coordinating Committee and
directs appropriate field staff to participate fully with the
State rural development council within the jurisdiction of
the field staff; and
"(D) to enter into cooperative agreements with, and
to provide grants and other assistance to, the Coordinating
Committee and State rural development councils.
"(c) NATIONAL RURAL DEVELOPMENT COORDINATING COMMITTEE.—

PUBLIC LAW 107-171—MAY 13, 2002

116 STAT. 365

"(1) ESTABLISHMENT.—The Secretary shall establish a
National Rural Development Coordinating Committee within
the Department of Agriculture.
"(2) COMPOSITION.—The Coordinating Committee shall be
composed of—
"(A) 1 representative of each agency with rural responsibilities; and
"(B) representatives, approved by the Secretary, of—
"(i) national associations of State, regional, local,
and tribal governments and intergovernmental and
multijurisdictional agencies and organizations;
"(ii) national public interest groups;
"(iii) other national nonprofit organizations that
elect to participate in the activities of the Coordinating
COmmittee; and
"(iv) the private sector.
"(3) DUTIES.—The Coordinating Committee shall—
"(A) support the work of the State rural development
councils;
"(B) facilitate coordination of rural development policies, programs, and activities among Federal agencies and
with those of State, local, and tribal governments, the
private sector, and nonprofit organizations;
"(C) review and comment on policies, regulations, and
proposed legislation that affect or would affect rural areas
and gather and provide related information;
"(D) develop and facilitate strategies to reduce or eliminate administrative and regulatory impediments; and
"(E) require each State rural development council
receiving funds under this section to submit an annual
report on the use of the funds, including a description
of strategic plans, goals, performance measures, and outcomes for the State rural development council of the State.
"(4) FEDERAL PARTICIPATION IN COORDINATING COMMITTEE.—
"(A) IN GENERAL—A Federal employee shall fully
participate in the governance and operations of the Coordinating Committee, including activities related to grants,
contracts, and other agreements, in accordance with this
section.
"(B) CONFLICTS.—Participation by a Federal employee
in the Coordinating Committee in accordance with this
paragraph shall not constitute a violation of section 205
or 208 of title 18, United States Code.
"(5) ADMINISTRATIVE SUPPORT.—The Secretary may provide
such administrative support for the Coordinating Committee
as the Secretary determines is necessary to carry out the duties
of the Coordinating Committee.
"(6) PROCEDURES.—The Secretary may prescribe such regulations, bylaws, or other procedures as are necessary for the
operation of the Coordinating Committee.
"(d) STATE RURAL DEVELOPMENT COUNCILS.—
"(1) ESTABLISHMENT —Notwithstanding chapter 63 of title
31, United States Code, each State may elect to participate
in the Partnership by entering into an agreement with the
Secretary to recognize a State rural development council.

116 STAT. 366

PUBLIC LAW 107-171—MAY 13, 2002
"(2) COMPOSITION.—A State rural development council
shall—
"(A) be composed of representatives of Federal, State,
local, and tribal governments, nonprofit organizations,
regional organizations, the private sector, and other entities
committed to rural advancement; and
"(B) have a nonpartisan and nondiscriminatory membership that—
"(i) is broad and representative of the economic,
social, and political diversity of the State; and
"(ii) shall be responsible for the governance and
operations of the State rural development council.
"(3) DUTIES.—A State rural development council shall—
"(A) facilitate collaboration among Federal, State, local,
and tribal governments and the private and nonprofit sectors in the planning and implementation of programs and
policies that have an impact on rural areas of the State;
"(B) monitor, report, and comment on policies and programs that address, or fail to address, the needs of the
rural areas of the State;
"(C) as part of the Partnership, in conjunction with
the Coordinating Committee, facilitate the development of
strategies to reduce or eliminate conflicting or duplicative
administrative or regulatory requirements of Federal,
State, local, and tribal governments; and
"(D)(i) provide to the Coordinating Committee an
annual plan with goals and performance measures; and
"(ii) submit to the Coordinating Committee an annual
report on the progress of the State rural development
council in meeting the goals and measures.
"(4) FEDERAL PARTICIPATION IN STATE RURAL DEVELOPMENT
COUNCILS.—
"(A) IN GENERAL.—A State Director for Rural Development of the Department of Agriculture, other employees
of the Department, and employees of other Federal agencies
with rural responsibilities shall fully participate as voting
members in the governance and operations of State rural
development councils (including activities related to grants,
contracts, and other agreements in accordance with this
section) on an equal basis with other members of the State
rural development councils.
"(B) CONFLICTS.—Participation by a Federal employee
in a State rural development council in accordance with
this paragraph shall not constitute a violation of section
205 or 208 of title 18, United States Code.
"(e) ADMINISTRATIVE SUPPORT OF THE PARTNERSHIP.—
"(1) DETAIL OF EMPLOYEES.—
"(A) IN GENERAL.—In order to provide experience in
intergovernmental collaboration, the head of an agency
with rural responsibilities that elects to participate in the
Partnership may, and is encouraged to, detail to the Secretary for the support of the Partnership 1 or more
employees of the agency with rural responsibilities without
reimbursement for a period of up to 1 year.
"(B) CrviL SERVICE STATUS.—The detail shall be without interruption or loss of civil service status or privilege.

PUBLIC LAW 107-171—MAY 13, 2002

116 STAT. 367

"(2) ADDITIONAL SUPPORT.—The Secretary may provide for
any additional support staff to the Partnership as the Secretary
determines to be necessary to carry out the duties of the Partnership.
"(3) INTERMEDIARIES.—The Secretary may enter into a contract with a qualified intermediary under which the intermediary shall be responsible for providing administrative and
technical assistance to a State rural development council,
including administering the financial assistance available to
the State rural development council.
"(f) MATCHING REQUIREMENTS FOR STATE RURAL DEVELOPMENT
COUNCILS.—
"(1) IN GENERAL.—Except as provided in paragraph (2),
a State rural development council shall provide matching funds,
or in-kind goods or services, to support the activities of the
State rural development council in an amount that is not less
than 33 percent of the amount of Federal funds received from
a Federal agency under subsection (g)(2).
"(2) EXCEPTIONS TO MATCHING REQUIREMENT FOR CERTAIN
FEDERAL FUNDS.—Paragraph (1) shall not apply to funds,
grants, funds provided under contracts or cooperative agreements, gifts, contributions, or technical assistance received by
a State rural development council from a Federal agency that
are used—
"(A) to support 1 or more specific program or project
activities; or
"(B) to reimburse the State rural development council
for services provided to the Federal agency providing the
finds, grants, funds provided under contracts or cooperative agreements, gifts, contributions, or technical assistance.
"(3) DEPARTMENT'S SHARE.—The Secretary shall develop
a plan to decrease, over time, the share of the Department
of Agriculture of the cost of the core operations of State rural
development councils.
"(g) FUNDING.—
"(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $10,000,000
for each of fiscal years 2003 through 2007.
"(2) FEDERAL AGENCIES.—
"(A) IN GENERAL.—Notwithstanding any other provision of law limiting the ability of an agency, along with
other agencies, to provide funds to the Coordinating Committee or a State rural development council in order to
carry out the purposes of this section, a Federal agency
may make grants, gifts, or contributions to, provide technical assistance to, or enter into contracts or cooperative
agreements with, the Coordinating Committee or a State
rural development council.
"(B) ASSISTANCE.—Federal agencies are encouraged to
use funds made available for programs that have an impact
on rural areas to provide assistance to, and enter into
contracts with, the Coordinating Committee or a State
rural development council, as described in subparagraph
(A).

116 STAT. 368

PUBLIC LAW 107-171—MAY 13, 2002

"(3) CONTRIBUTIONS.—The Coordinating Committee and a
State rural development council may accept private contributions.
"(h) TERMINATION.—The authority provided under this section
shall terminate on the date that is 5 years after the date of enactment of this section.".
SEC. 6022. RURAL TELE WORK.

Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) (as amended by section 6021) is amended
by adding at the end the following:
7 USC 2008n.

Grants.

"SEC. 379. RURAL TELE WORK.

"(a) DEFINITIONS.—In this section:
"(1) ELIGIBLE ORGANIZATION.—The term 'eligible organization' means a nonprofit entity, an educational institution, an
Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)), or
any other organization, in a rural area (except for the institute),
that meets the requirements of this section and such other
requirements as are established by the Secretary.
"(2) INSTITUTE.—The term 'institute' means a rural
telework institute established using a grant under subsection
(b).
"(3) TELEWORK.—The term telework' means the use of
telecommunications to perform work functions at a rural work
center located outside the place of business of an employer.
"(b) RURAL TELEWORK INSTITUTE.—
"(1) IN GENERAL.—The Secretary shall make 1 or more
grants to an eligible organization to pay the Federal share
of the cost of establishing and operating a national rural
telework institute to carry out projects described in paragraph
(2).
"(2) PROJECTS.—The institute shall use grant funds
received under this subsection to carry out a 5-year project—
"(A) to serve as a clearinghouse for telework research
and development;
"(B) to conduct outreach to rural communities and
rural workers;
"(C) to develop and share best practices in rural
telework throughout the United States;
"(D) to develop innovative, market-driven telework
projects and joint ventures with the private sector that
employ workers in rural areas in jobs that promote economic self-sufficiency;
"(E) to share information about the design and
implementation of telework arrangements;
"(F) to support private sector businesses that are
transitioning to telework;
"(G) to support and assist telework projects and
individuals at the State and local level; and
"(H) to perform such other functions as the Secretary
considers appropriate.
"(3) NON-FEDERAL SHARE.—
"(A) IN GENERAL.—As a condition of receiving a grant
under this subsection, an eligible organization shall agree
to obtain, after the application of the eligible organization

PUBLIC LAW 107-171—MAY 13, 2002

116 STAT. 369

has been approved and notice of award has been issued,
contributions from non-Federal sources that are equal to—
"(i) during each of the first, second, and third
years of a project, 30 percent of the amount of the
grant; and
"(ii) during each of the fourth and fifth years of
the project, 50 percent of the amount of the grant.
"(B) INDIAN TRIBES.—Notwithstanding subparagraph
(A), an Indian tribe may use any Federal funds made
available to the Indian tribe for self-governance to pay
the non-Federal contributions required under subparagraph
(A).
"(C) FORM.—The non-Federal contributions required
under subparagraph (A) may be in the form of in-kind
contributions, including office equipment, office space, computer software, consultant services, computer networking
equipment, and related services.
"(C) TELEWORK GRANTS.—
"(1) IN GENERAL.—Subject to paragraphs (2) through (5),
the Secretary shall make grants to eligible organizations to
pay the Federal share of the cost of—
"(A) obtaining equipment and facilities to establish
or expand telework locations in rural areas; and
"(B) operating telework locations in rural areas.
"(2) APPLICATIONS.—To be eligible to receive a grant under
this subsection, an eligible organization shall submit to the
Secretary, and receive the approval of the Secretary of, an
application for the grant that demonstrates that the eligible
organization has adequate resources and capabilities to establish or expand a telework location in a rural area.
"(3) NON-FEDERAL SHARE.—
"(A) IN GENERAL.—As a condition of receiving a grant
under this subsection, an eligible organization shall agree
to obtain, after the application of the eligible organization
has been approved and notice of award has been issued,
contributions from non-Federal sources that are equal to
50 percent of the amount of the grant.
"(B) INDIAN TRIBES.—Notwithstanding subparagraph
(A), an Indian tribe may use Federal funds made available
to the tribe for self-governance to pay the non-Federal
contributions required under subparagraph (A).
"(C) SOURCES.—The non-Federal contributions required
under subparagraph (A)—
"(i) may be in the form of in-kind contributions,
including office equipment, office space, computer software, consultant services, computer networking equipment, and related services; and
"(ii) may not be made from funds made available
for community development block grants under title
I of the Housing and Community Development Act
of 1974 (42 U.S.C. 5301 et seq.).
"(4) DURATION.—The Secretary may not provide a grant
under this subsection to expand or operate a telework location
in a rural area after the date that is 3 years after the establishment of the telework location.

116 STAT. 370

Deadline.

PUBLIC LAW 107-171—MAY 13, 2002

"(5) AMOUNT.—The amount of a grant provided to an
eligible organization under this subsection shall be not less
than $1,000,000 and not more than $2,000,000.
"(d) APPLICABILITY OF CERTAIN FEDERAL LAW.—An eligible
organization that receives funds under this section shall be subject
to the provisions of Federal law (including regulations) administered
by the Secretary of Labor or the Equal Employment Opportunity
Commission that govern the responsibilities of employers to
employees.
"(e) REGULATIONS.—Not later than 180 days after the date
of enactment of this section, the Secretary shall promulgate regulations to carry out this section.
"(f) AUTHORIZATION OF APPROPRIATION.—There is authorized
to be appropriated to carry out this section $30,000,000 for each
of fiscal years 2002 through 2007, of which $5,000,000 shall be
provided to establish and support an institute under subsection
(b).".
SEC. 6023. HISTORIC BARN PRESERVATION.

Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) (as amended by section 6022) is amended
by adding at the end the following:
7 USC 20080.

"SEC. 379A. HISTORIC BARN PRESERVATION.

"(a) DEFINITIONS.—In this section:
"(1) BARN.—The term 'barn' means a building (other than
a dwelling) on a farm, ranch, or other agricultural operation
for—
"(A) housing animals;
"(B) storing or processing crops;
"(C) storing and maintaining agricultural equipment;
Or

"(D) serving an essential or useful purpose related
to agricultural activities conducted on the adjacent land.
"(2) ELIGIBLE APPLICANT.—The term 'eligible applicant'
means—
"(A) a State department of agriculture (or a designee);
"(B) a national or State nonprofit organization that—
"(i) is described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from taxation under
section 501(a) of such Code; and
"(ii) has experience or expertise, as determined
by the Secretary, in the identification, evaluation,
rehabilitation, preservation, or protection of historic
barns; and
"(C) a State historic preservation office.
"(3) HISTORIC BARN.—The term 'historic barn' means a
barn that—
"(A) is at least 50 years old;
"(B) retains sufficient integrity of design, materials,
and construction to clearly identify the barn as an agricultural building; and
"(C) meets the criteria for listing on National, State,
or local registers or inventories of historic structures.
"(4) SECRETARY.—The term 'Secretary' means the Secretary, acting through the Under Secretary of Rural Development.

PUBLIC LAW 107-171—MAY 13, 2002

116 STAT. 371

"(b) PROGRAM.—The Secretary shall establish a historic barn
preservation program—
"(1) to assist States in developing a list of historic barns;
"(2) to collect and disseminate information on historic
barns;
"(3) to foster educational programs relating to the history,
construction techniques, rehabilitation, and contribution to
society of historic barns; and
"(4) to sponsor and conduct research on—
"(A) the history of barns; and
"(B) best practices to protect and rehabilitate historic
barns from the effects of decay, fire, arson, and natural
disasters.
"(c) GRANTS.—
"(1) IN GENERAL.—The Secretary may make grants to, or
enter into contracts or cooperative agreements with, eligible
applicants to carry out an eligible project under paragraph
(2).
"(2) ELIGIBLE PROJECTS.—A grant under this subsection
may be made to an eligible applicant for a project—
"(A) to rehabilitate or repair a historic barn;
"(B) to preserve a historic barn through—
"(i) the installation of a fire protection system,
including fireproofing or fire detection system and
sprinklers; and
"(ii) the installation of a system to prevent vandalism; and
"(C) to identify, document, and conduct research on
a historic barn to develop and evaluate appropriate techniques or best practices for protecting historic barns.
"(3) REQUIREMENTS.—An eligible applicant that receives
a grant for a project under this subsection shall comply with
any standards established by the Secretary of the Interior
for historic preservation projects.
"(4) AUTHORIZATION OF APPROPRIATIONS .—There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2002 through
2007.".
SEC. 6024. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) (as amended by section 6023)) is amended
by adding at the end the following:
"SEC. 379B. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

"(a) IN GENERAL.—The Secretary, acting through the Adminis-

trator of the Rural Utilities Service, may make grants to public
and nonprofit entities, and borrowers of loans made by the Rural
Utilities Service, for the Federal share of the cost of acquiring
radio transmitters to increase coverage of rural areas by the all
hazards weather radio broadcast system of the National Oceanic
and Atmospheric Administration.
"(b) ELIGIBILITY.—To be eligible for a grant under this section,
an applicant shall provide to the Secretary—
"(1) a binding commitment from a tower owner to place
the transmitter on a tower; and
"(2) a description of how the tower placement will increase
coverage of a rural area by the all hazards weather radio

7 USC 2008p.

116 STAT. 372

PUBLIC LAW 107-171—MAY 13, 2002

broadcast system of the National Oceanic and Atmospheric
Administration.
"(C) FEDERAL SHARE.—A grant provided under this section shall
be not more than 75 percent of the total cost of acquiring a radio
transmitter, as described in subsection (a).
"(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2002 through 2007.".
SEC. 6025. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES
AND TO TRAIN FARM WORKERS IN SPECIALIZED SKILLS
NECESSARY FOR HIGHER VALUE CROPS.
Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) (as amended by section 6024) is amended
by adding at the end the following:
7 USC 2008q.

"SEC. 379C. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO TRAIN FARM WORKERS IN SPECIALIZED SKILLS NECESSARY FOR HIGHER VALUE CROPS.
"(a) IN GENERAL.—The Secretary shall make grants to nonprofit
organizations, or to a consortium of nonprofit organizations, agribusinesses, State and local governments, agricultural labor
organizations, farmer or rancher cooperatives, and communitybased organizations with the capacity to train farm workers.
"(b) USE OF FUNDS.—An entity to which a grant is made under
this section shall use the grant to train farm workers to use new
technologies and develop specialized skills for agricultural development.
"(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $10,000,000 for each
of fiscal years 2002 through 2007.".
SEC. 6026. RURAL COMMUNITY ADVANCEMENT PROGRAM.
(a) NATIONAL RESERVE PROGRAM.—Section 381E of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009d) is
amended—
(1) in subsection (b)—
(A) by striking paragraph (4); and
(B) by redesignating paragraph (5) as paragraph (4);
(2) by striking subsection (e);
(3) by redesignating subsections (f) through (h) as subsections (e) through (g), respectively; and
(4) in subsection (g) (as so redesignated), by striking "subsection (g) of this section" and inserting "subsection (fr.
(b) RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.—Section 3810 of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2009n) is repealed.
(C) CONFORMING AMENDMENTS.—Section 381G of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009f(a)) is
amended—
(1) in subsection (a), by striking "section 381E(g)" each
place it appears and inserting "section 381E(f)"; and
(2) in subsection (b)(1), by striking "section 381E(h)" and
inserting "section 381E(g)".

PUBLIC LAW 107-171—MAY 13, 2002

116 STAT. 373

SEC. 6027. DELTA REGIONAL AUTHORITY.

(a) VOTING.—Section 382B(c) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009aa-1(c)) is amended by
striking paragraph (1) and inserting the following:
"(1) IN GENERAL.—
"(A) TEMPORARY METHOD.—During the period begin- Effective date.
ning on the date of enactment of this subparagraph and Termination
ending on December 31, 2004, a decision by the Authority date.
shall require the affirmative vote of the Federal cochairperson and a majority of the State members (not including
any member representing a State that is delinquent under
subsection (g)(2)(C)) to be effective.
"(B) PERMANENT METHOD.—Effective beginning on Effective date.
January 1, 2005, a decision by the Authority shall require
a majority vote of the Authority (not including any member
representing a State that is delinquent under subsection
(g)(2)(C)) to be effective.".
(b) AUTHORITY TO ISSUE REGULATIONS.—Section 382B(e)(4) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2009aa-1(e)(4)) is amended by striking "and rules" and inserting
", rules, and regulations".
(C) ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.—Section
382C(b) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2009aa-2(b)) is amended by striking paragraph (3).
(d) SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.—Section 382D
of the Consolidated Farm and Rural Development Act (7 U.S.C.
2009aa-3) is amended to read as follows:
"SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

"(a) FINDING.—Congress finds that certain States and local
communities of the region, including local development districts,
may be unable to take maximum advantage of Federal grant programs for which the States and communities are eligible because—
"(1) the States or communities lack the economic resources
to provide the required matching share; or
"(2) there are insufficient funds available under the
applicable Federal law authorizing the Federal grant program
to meet pressing needs of the region.
"(b) FEDERAL GRANT PROGRAM FUNDING.—Notwithstanding any
provision of law limiting the Federal share, the areas eligible for
assistance, or the authorizations of appropriations of any Federal
grant program, and in accordance with subsection (c), the Authority,
with the approval of the Federal cochairperson and with respect
to a project to be carried out in the region—
"(1) may increase the Federal share of the costs of a project
under the Federal grant program to not more than 90 percent
(except as provided in section 382F(b)); and
"(2) shall use amounts made available to carry out this
subtitle to pay the increased Federal share.
"(C) CERTIFICATIONS.—
"(1) IN GENERAL.—In the case of any project for which
all or any portion of the basic Federal share of the costs
of the project is proposed to be paid under this section, no
Federal contribution shall be made until the Federal official
administering the Federal law that authorizes the Federal
grant program certifies that the project—

116 STAT. 374

PUBLIC LAW 107-171—MAY 13, 2002

"(A) meets (except as provided in subsection (b)) the
applicable requirements of the applicable Federal grant
program; and
"(B) could be approved for Federal contribution under
the Federal grant program if funds were available under
the law for the project.
"(2) CERTIFICATION BY AUTHORITY.—
"(A) IN GENERAL.—The certifications and determinations required to be made by the Authority for approval
of projects under this Act in accordance with section 3821—
"(i) shall be controlling; and
"(ii) shall be accepted by the Federal agencies.
"(B) ACCEPTANCE BY FEDERAL COCHAIRPERSON.—In the
case of any project described in paragraph (1), any finding,
report, certification, or documentation required to be submitted with respect to the project to the head of the department, agency, or instrumentality of the Federal Government responsible for the administration of the Federal
grant program under which the project is carried out shall
be accepted by the Federal cochairperson.".
(e) GRANTS TO LOCAL DEVELOPMENT AGENCIES.—Section
382E(b)(1) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2009aa-4(b)(1)) is amended by striking "may" and
inserting "shall".
U) APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.—Section
3821 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2009aa-8) is amended—
(1) in subsection (a), by inserting "and approved" after
"reviewed"; and
(2) in subsection (d), by striking "VOTES FOR DECISIONS.—
" and inserting "APPROVAL OF GRANT APPLICATIONS.—".
(g) AUTHORIZATION OF APPROPRIATIONS.—Section 382M(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2009aa-12(a)) is amended by striking "2002" and inserting "2007".
(h) TERMINATION OF AUTHORITY.—Section 382N of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-13) is
amended by striking "2002" and inserting "2007".
(i) DELTA REGION AGRICULTURAL ECONOMIC DEVELOPMENT.—
Subtitle D of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1981 et seq.) (as amended by section 6025) is amended
by adding at the end the following:
7 USC 2008r.

"SEC. 379D. DELTA REGION AGRICULTURAL ECONOMIC DEVELOPMENT.

"(a) IN GENERAL.—The Secretary may make grants to assist
in the development of state-of-the-art technology in animal nutrition
(including research and development of the technology) and valueadded manufacturing to promote an economic platform for the Delta
region (as defined in section 382A) to relieve severe economic conditions.
"(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section $7,000,000 for each
of fiscal years 2002 through 2007.".
(j) DEFINITION OF LOWER MISSISSIPPL—Section 4(2)(I) of the
Delta Development Act (42 U.S.C. 3121 note; Public Law 100460) is amended by inserting "Butler, Conecuh, Escambia, Monroe,"
after "Russell,".