The Rural Utilities Service (RUS) intends to update 7 CFR 1780, Water and Waste Loans and Grants, as a part of its efforts to improve customer service for its recipients and create more efficient work processes for Agency staff. This regulation provides guidance on application processing, including eligibility, planning, bidding, constructing, closing, and liquidating accounts. While the focus is on the water and waste disposal loans and grants, programs administered through other regulations within WEP’s portfolio follow certain provisions of this regulation.  

RUS intends to publish this rulemaking as a final rule with comment. The updates to 7 CFR part 1780 are expected to: (1) Provide clear and up-to-date policies; (2) provide consistent program delivery; (3) provide greater overall customer service; and (4) bring program delivery more in line with current industry practices and best practices.

Specifically, the regulation updates are expected to: (1) Incorporate new and revised statutory and discretionary language; (2) clarify and consolidate applicant and project eligibility requirements; (3) codify Agency priorities; (4) promote program accessibility; (5)  and reorganize topics to more closely align with the life-cycle of a loan and grant. By correcting existing water and wastewater system situations that could threaten the environment or human health, WEP projects improve the livelihoods of community residents and meet pollution mitigation. In FY2021, approximately 70 percent of the projects funded alleviated a health or sanitary issue. Further, the revisions in this final rule with comment expect to expand eligibility for lead service line replacement and clarify the criteria of a health or sanitary hazard.  Finally, with an emphasis on underserved areas, this 7 CFR 1780 is used to process loans and grants focused on benefiting historically impoverished areas located in designated Persistent Poverty counties and distressed communities.

The Administrative Procedures Act exempts from prior notice rules any action relating to agency management or personnel or to public property, loans, grants, benefits, or contracts” (5 U.S.C. 553(a)(2)).