SUPPLEMENTARY INFORMATION:

I. Background

The Consolidated Farm and Rural Development Act (CON Act) and the Rural Electrification Act (RE Act) authorize USDA assistance programs for agriculture and rural development in America's rural areas. Section 6301 of the Agriculture Improvement Act of 2018 (2018 Farm Bill) allows for the exclusion of certain prison and military populations from the definition of rural area contained in the CON Act and used in the RE Act.

This rule updates the definition of “Rural area” to adopt the statutory definition provided in the 2018 Farm Bill for affected programs that have not already been updated. Section 6301 of the Farm Bill amends the rural definition in Section 343(a)(13) of the Con Act and excludes the following from rural area population counts: (1) individuals incarcerated on a long-term or regional basis, and (2) the first 1,500 individuals who reside in housing located on a military base

Rural Development has updated its eligibility mapping tools to include areas that are now eligible under the revised statutory definition. Notwithstanding those updates, any community or member of the community who believes that their community should be included may contact the individual identified in the FOR FUTHER INFORMATION CONTACT section of this rule.

The Administrative Procedures Act exempts from prior notice any actions “relating to agency management or personnel or to public property, loans, grants, benefits, or contracts” (5 U.S.C. 553(b)(A)): therefore, Rural Development is issuing this action as a final rule.

Authority

The authority for this final rule comes from the Agricultural Improvement Act of 2018, Public Law 115-334, sec. 6301 (2018) (2018 Farm Bill) and applies to all programs under the Con Act and RE Act.

Executive Order 12372—Intergovernmental Consultation

This final rule is not subject to the requirements of Executive Order 12372, “Intergovernmental Review,” as implemented under USDA's regulations at 2 CFR part 415, subpart C, because this final rule provides general guidance on population exclusions as a whole. Applications for Agency programs will be reviewed individually under Executive Order 12372 as required by program procedures.

Executive Order 12866—Classification

This final rule is not subject to the provisions of Executive Order 12866 because it adopts statutory language that instructs the agency on how to qualify eligible projects, therefore, it has not been reviewed by the Office of Management and Budget (OMB) under Executive Order 12866.

Executive Order 12988—Civil Justice Reform

This final rule has been reviewed under Executive Order 12988. In accordance with this final rule: (1) unless otherwise specifically provided, all State and local laws that conflict with this rule will be preempted; (2) no retroactive effect will be given to this rule except as specifically prescribed in the rule; and (3) administrative proceedings of the National Appeals Division of the Department of Agriculture (7 CFR part 11) must be exhausted before bringing suit in court that challenges action taken under this rule.

Executive Order 13132—Federalism

The policies contained in this final rule do not have any substantial direct effect on States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. This final rule does not impose substantial direct compliance costs on State and local governments; therefore, consultation with States is not required.

Congressional Review Act

Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the Office of Information and Regulatory Affairs designated this final rule as not a major rule, as defined by 5 U.S.C. 804(2).

National Environmental Policy Act

This rule has been reviewed in accordance with 7 CFR part 1970, Subpart A, “Environmental Policies.” Rural Development has determined that this action does not constitute a major Federal action significantly affecting the quality of the environment. In accordance with the National Environmental Policy Act of 1969, Public Law 91-190, an Environmental Impact Statement is not required. ( printed page 38640)

Regulatory Flexibility Act

The final rule has been reviewed with regard to the requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612). The undersigned has determined and certified by signature on this document that this rule will not have a significant economic impact on a substantial number of small entities since this rulemaking action does not involve a new or expanded program nor does it require any more action on the part of a small business than required of a large entity.

Unfunded Mandate Reform Act (UMRA)

Title II of the UMRA, Public Law 104-4, establishes requirements for Federal Agencies to assess the effects of their regulatory actions on State, local, and tribal Governments and on the private sector. Under section 202 of the UMRA, Federal Agencies generally must prepare a written statement, including cost-benefit analysis, for proposed and final rules with “Federal mandates” that may result in expenditures to State, local, or tribal Governments, in the aggregate, or to the private sector, of $100 million or more in any one year. When such a statement is needed for a rule, section 205 of the UMRA generally requires a Federal Agency to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, more cost-effective, or least burdensome alternative that achieves the objectives of the rule.

This final rule contains no Federal mandates (under the regulatory provisions of title II of the UMRA) for State, local, and tribal Governments or for the private sector. Therefore, this final rule is not subject to the requirements of sections 202 and 205 of the UMRA.

Paperwork Reduction Act

This final rule contains no reporting or recordkeeping provisions requiring Office of Management and Budget (OMB) approval under the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

E-Government Act Compliance

Rural Development is committed to complying with the E-Government Act by promoting the use of the internet and other Information Technologies in order to provide increased opportunities for citizen access to Government information, services, and other purposes.

Programs Affected

The programs affected by this regulation are listed in the Assistance Listing Catalog (formerly Catalog of Federal Domestic Assistance) under numbers:

10.752—Rural eConnectivity Pilot Program.

10.759—Special Evaluation Assistance for Rural Communities and Households (SEARCH).

10.760—Water & Waste Disposal System Systems for Rural Communities.

10.761—Technical Assistance and Training Grants.

10.762—Solid Waste Management Grants.

10.763—Emergency Community Water Assistance Grants.

10.770—Water & Waste Disposal Loan and Grants (Section 306C).

10.771—Rural Cooperative Development Grants.

10.766—Community Facilities Loans and Grants.

10.768—Business and Industry Loans.

10.850—Rural Electrification Loans and Loan Guarantees.

10.851—Rural Telephone Loans and Loan Guarantees.

10.854—Rural Economic Development Loans and Grants.

10.860—Rural Business Investment Program

10.862—Rural Decentralized Water Systems Grant Program.

10.863—Community Connect Grants.

10.864—Grant Program to Establish a Fund for Financing Water and Wastewater Projects.

10.865—Biorefinery Assistance Program.

10.867—Bioenergy Program for Advanced Biofuels.

10.868—Rural Energy for America Program.

10.870—Rural Microentrepreneur Assistance Program.

10.886—Rural Broadband Access Loan and Loan Guarantee Program.

Executive Order 13175, Consultation and Coordination With Indian Tribal Governments

Executive Order 13175 imposes requirements on Rural Development in the development of regulatory policies that have tribal implications or preempt tribal laws. Rural Development has determined that this final rule does not have a substantial direct effect on one or more Indian tribe(s) or on either the relationship or the distribution of powers and responsibilities between the Federal Government and Indian tribes. Thus, this final rule is not subject to the requirements of Executive Order 13175. If tribal leaders are interested in consulting with Rural Development on this final rule, they are encouraged to contact USDA's Office of Tribal Relations or Rural Development's Native American Coordinator at: AIAN@usda.gov to request such a consultation.

Civil Rights Impact Analysis

Rural Development has reviewed this final rule in accordance with USDA Regulation 4300-4, Civil Rights Impact Analysis,” to identify any major civil rights impacts the rule might have on program participants on the basis of age, race, color, national origin, sex, or disability. After review and analysis of the rule and available data, it has been determined that issuance of this Final Rule will neither adversely nor disproportionately impact very low, low and moderate-income populations, minority populations, women, Indian tribes or persons with disability, by virtue of their race, color, national origin, sex, age, disability, or marital or familial status.

Non-Discrimination Statement

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Mission Areas, agencies, staff offices, employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, familial/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.

Program information may be made available in languages other than English. Persons with disabilities who require alternative means of communication to obtain program information ( e.g., Braille, large print, audiotape, American Sign Language) should contact the responsible Mission Area, agency, or staff office; the USDA TARGET Center at (202) 720-2600 (voice and TTY); or the Federal Relay Service at (800) 877-8339.

(1) To file a program discrimination complaint, a complainant should complete Form AD-3027, USDA Program Discrimination Complaint Form, which can be obtained online at https://www.ocio.usda.gov/​document/​ad-3027, from any USDA office, by calling (866) 632-9992, or by writing a letter addressed to USDA. The letter must contain the complainant's name, address, telephone number, and a written description of the alleged ( printed page 38641) discriminatory action in sufficient detail to inform the Assistant Secretary for Civil Rights (ASCR) about the nature and date of an alleged civil rights violation. The completed AD-3027 form or letter must be submitted to USDA by: Mail: U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue SW, Washington, DC 20250-9410;

(2) Fax: (202) 690-7442; or

(3) EMail: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.

For the reasons set forth in the preamble, the Agency amends 7 CFR chapters XVII, XVIII, and XLII as follows:

1. The authority citation for part 1710 is revised to read as follows:

( printed page 38642) Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.

2. Amend § 1710.2 in paragraph (a) by revising the definition of Rural area to read as follows:

3. The authority citation for part 1735 is revised to read as follows:

Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.

4. Amend § 1735.2 by revising the first sentence in the definition of Rural area to read as follows:

5. The authority citation for part 1737 is revised to read as follows:

Authority: 7 U.S.C. 901 et seq., 1921 et seq,. and 6941 et. seq.

6. Amend § 1737.2 by revising the first sentence in the definition of Rural area to read as follows:

7. The authority citation for part 1738 continues to read as follows:

Authority: 7 U.S.C. 901 et seq.

8. Amend § 1738.2 in paragraph (a) by revising paragraph (iii) of the definition for Rural area(s) to read as follows:

9. The authority citation for part 1739 is revised to read as follows:

Authority: 7 U.S.C. 901 et seq.

10. Amend § 1739.3 by revising the first sentence in paragraph (2) of the definition of Rural area to read as follows:

11. The authority citation for part 1740 continues to read as follows:

Authority: 7 U.S.C. 1981(b)(4), 7 U.S.C. 901 et seq.,7 U.S.C. 950aaa et seq., and 7 U.S.C. 950cc.

12. Amend § 1740.2 in paragraph (a) by revising the definition of Rural area to read as follows:

13. The authority citation for part 1774 continues to read as follows:

Authority: 7 U.S.C. 1926(a)(2)(C).

14. Amend § 1774.2 by revising the definition of Rural area to read as follows:

15. The authority citation for part 1775 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 U.S.C. 1005.

16. Amend § 1775.2 by revising the first sentence in the definition of Rural area to read as follows:

17. The authority citation for part 1776 continues to read as follows:

Authority: 7 U.S.C. 1926e.

18. Amend § 1776.3 by revising the definition of Rural area to read as follows:

19. The authority citation for part 1777 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 U.S.C. 1005.

20. Amend § 1777.4 by revising the first sentence in the definition of Rural areas to read as follows:

21. The authority citation for part 1778 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 U.S.C. 1005.

22. Amend § 1778.4 by revising the first sentence in the definition of Rural areas to read as follows:

23. The authority citation for part 1780 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 U.S.C. 1005.

24. Amend § 1780.3 in paragraph (a) by revising the first sentence in the definition of Rural and rural area to read as follows:

25. The authority citation for part 1783 continues to read as follows:

Authority: 7 U.S.C. 1926(a)(2)(B).

26. Amend § 1783.3 by revising the definition of Rural and rural area to read as follows:

27. The authority citation for part 1942 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989.

28. Amend § 1942.17 by removing paragraph (b)(2)(iii) and redesignating paragraph (b)(2)(iv) as (b)(2)(iii) and revising it to read as follows:

29. The authority citation for part 1980 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989. Subpart E also issued under 7 U.S.C. 1932(a).

30. Amend § 1980.405 by revising the introductory text to read as follows:

31. The authority citation for part 3570 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989.

32. Amend § 3570.53 by revising the definition of Rural and rural area to read as follows:

33. The authority citation for part 4274 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1932 note; 7 U.S.C. 1989.

34. Amend § 4274.302 by revising the first sentence in the introductory text of the definition of Rural or rural area to read as follows:

35. The authority citation for part 4279 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 7 U.S.C. 310B(a)(2); 7 U.S.C 8103.

36. Amend § 4279.108 by revising paragraph (c)(1) to read as follows:

37. Amend § 4279.202 by revising the definition of Rural or rural area to read as follows:

38. The authority citation for part 4280 continues to read as follows:

Authority: 7 U.S.C. 1989(a); 7 U.S.C. 2008s.

39. Amend § 4280.3 by revising the definition of Rural area to read as follows:

40. Amend § 4280.103 by revising the first sentence of the introductory text in the definition of Rural or rural area to read as follows:

41. Amend § 4280.302 in paragraph (a) by revising the first sentence of the introductory text in the definition of Rural or rural area to read as follows:

42. The authority citation for part 4284 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C.1989.

43. Amend § 4284.3 by revising the definition for Rural and rural area to read as follows:

44. The authority citation for part 4288 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C.1989.

45. Amend § 4288.2 by revising the introductory text of the definition of Rural or rural area to read as follows:

46. The authority citation for part 4290 continues to read as follows:

Authority: 7 U.S.C.1989 and 2009cc et seq.

47. Amend § 4290.50 by revising the introductory text of the definition of Rural area to read as follows:

48. The authority citation for part 5001 continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1926(a); 7 U.S.C. 1932(a); and 7 U.S.C. 8107.

49. Amend § 5001.3 by revising the first sentence in the introductory text of the definition for Rural and rural area to read as follows:

87 FR 38639