RUS intends to update 7 CFR 1782 by publishing a final rule with comment as a part of its continuing effort to improve customer service for its recipients and create more efficient work processes for Agency staff. Specifically, the intent of the updates is to provide: (1) Clearer policies; (2) consistent program delivery; (3) greater overall customer service.  Additionally, the final rule intends to reorganize the regulation to more closely align with the life-cycle of a loan and grant. The proposed changes are expected to ensure that both internal and external stakeholders have clear guidance on both routine and non-routine servicing actions.

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)). To implement these changes, RUS will publish this action as a final rule with comment.

7 CFR 1782, Servicing of Water and Waste Programs provides recipients and staff guidance on the servicing of water and waste disposal direct loans and grants administered by the USDA, Rural Utilities Service (RUS), Water and Environmental Programs (WEP). This regulation was last updated on September 28, 2007, at 72 CFR 55011. The previous regulation update combined several loan and grant servicing regulations into a single, unified servicing regulation. The regulation provides guidance on routine servicing activities as well as non-routine servicing activities for recipients needing assistance in resolving problem loan or delinquency issues. Servicing activities, especially non-routine, have become more complex and the regulation has proved inadequate. Many of the servicing activities occurring today were not as common in the water and waste disposal industry at the time the regulation was last modified. The updates in this final rule with comments are expected to remedy these issues.