§2008. System for delivery of certain rural development programs

(a) In general

(1) Assistance in eligible States

Assistance under each designated rural development program shall be provided in eligible States to qualified projects in accordance with this section.

(2) No assistance in other States

The Secretary shall not provide assistance under any designated rural development program in any State that is not an eligible State.

(b) Definitions

As used in this section and section 2008a of this title:

(1) Area plan

The term "area plan" means, with respect to a local or regional area in a State, the long-range rural development plan developed for the area. Each area plan shall identify the geographical boundaries of the area and include-

(A) an overall development plan for the area with goals, including business development and infrastructure development goals, and time lines based on a realistic assessment of the area, including, but not limited to-

(i) the number and types of businesses in the area that are growing or declining, and a list of the types of businesses that the area could potentially support;

(ii) the outstanding need for water and waste and other public services or facilities in the area;

(iii) the realistic possibilities for industrial recruitment in the area;

(iv) the potential for the development of tourism in the area;

(v) the potential for the generation of employment in the area through the creation of small businesses and the expansion of existing businesses; and

(vi) the potential for the production of value-added agricultural products in the area;

(B) an inventory and assessment of the human resources of the area, including, but not limited to-

(i) a current list of organizations in the area and their special interests;

(ii) the current level of participation of area residents in rural development activities and the level of participation required for successful implementation of the plan;

(iii) the availability of general and specialized job training in the area and the extent to which the needs of the area for such training are not being met;

(iv) a list of area residents with special skills which could be useful in developing and implementing the plan; and

(v) an analysis of the human needs of the area, the resources in the area available to meet those needs, and the manner in which the plan, if implemented, would increase the resources available to meet those needs;

(C) the current degree of intergovernmental cooperation in the area and the degree of such cooperation needed for the successful implementation of the plan;

(D) the ability and willingness of governments and citizens in the area to become involved in developing and implementing the plan;

(E) a description of how the governments in the area will apply budget and fiscal control processes to the plan; and

(F) the extent to which public services and facilities need to be improved to achieve the economic development and quality of life goals of the plan, taking into consideration, at a minimum-

(i) law enforcement;

(ii) fire protection;

(iii) water and solid waste management;

(iv) education;

(v) health care;

(vi) transportation;

(vii) housing;

(viii) communications; and

(ix) the availability of, and capability to generate, electric power.

(2) Designated rural development program

The term "designated rural development program" means a program carried out under section 1924(b), 1926(a), or subsections (a) through (f) and (h) of section 1932 of this title, or under section 1323 of the Food Security Act of 1985, for which funds are available at any time during the fiscal year under such section.

(3) Eligible State

(A) Requirements

The term "eligible State" means, with respect to a fiscal year, a State to which this section is made applicable under section 2007(b)(2) of this title, and with respect to which all of the following apply not later than the first day of the fiscal year:

(i) Established rural economic development review panel

The State has established an advisory rural economic development review panel that meets the requirements of section 2008a of this title.

(ii) Appointed State coordinator

The Governor of the State has appointed an officer or employee of the State government to-

(I) manage, operate, and carry out the instructions of, the panel described in clause (i);

(II) serve as a liaison between the panel and the Federal and State agencies involved in rural development, including transmitting to the Secretary any list transmitted to the State coordinator pursuant to section 2008a(b)(6) of this title;

(III) ensure that all rural residents in the State are informed about the manner in which assistance under designated rural development programs is to be provided to the State pursuant to this section and section 2008a of this title;

(IV) provide information to State residents, on request, about the manner in which assistance under designated rural development programs is to be provided to the State pursuant to this section and section 2008a of this title; and

(V) coordinate the efforts of interested rural residents with the State rural economic development review panel.

(iii) Designated agency to provide administrative support to panel

The State has designated an agency to provide the panel and the State coordinator with support for the daily operation of the panel described in clause (i).

(B) Good faith exception

Notwithstanding the requirements of subparagraph (A), the Secretary of Agriculture may determine, no later than the first day of the fiscal year, a State to be an eligible State under this paragraph for the fiscal year if the Secretary determines that the State has made a good faith effort to meet, and has substantially met, such requirements.

(4) Qualified project

The term "qualified project" means any project-

(A) for which the agency described in paragraph (3)(A)(iii) of the State has identified-

(i) the alternative Federal, State, local, or private sources of assistance; and

(ii) the related activities in the State; and

(B) to which the Secretary is required by subsection (c)(4) of this section to provide assistance.

(5) State coordinator

The term "State coordinator" means the individual appointed by the Governor of the State to carry out the activities described in paragraph (3)(A)(ii).

(6) State rural economic development review panel

The term "State rural economic development review panel" or "panel" means an advisory panel that meets the requirements of section 2008a of this title.

(c) Duties of Secretary

The Secretary shall, with respect to each eligible State-

(1) review the list, if any, transmitted pursuant to subsection 2008a(b)(6) of this title by any State coordinator;

(2) determine whether each project described in an application in the list meets the requirements of the rural development program under which the application seeks assistance;

(3) remove from the list any application for a project that does not meet the requirements;

(4) provide assistance, subject to available funds, to the projects in the applications remaining in the list after the list has (if necessary) been modified pursuant to paragraph (3), giving consideration to the order in which the applications for such projects are ranked by the respective State panel, and, if assistance is provided to any project without providing assistance to all projects ranked higher in priority by the panel than such project, report to the panel, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate within ten days of determining to fund such lower ranked project on the reasons for that determination;

(5) within thirty days after the date of the enactment of any Act providing appropriations for any designated rural development program for any fiscal year, notify each State of the amounts to be made available to such State under such program for such fiscal year, and the aggregate for such fiscal year of such amounts under all the designated rural development programs;

(6) pay per diem or otherwise reimburse each full-time officer or employee of the United States who is a member of a State rural economic development review panel for expenses incurred each day (including travel time) during which the officer or employee is engaged in the actual performance of a duty of the panel;

(7) from amounts appropriated for grants under any provision of section 1926(a) of this title, make grants not to exceed $100,000 annually to each eligible State for the administrative costs associated with the State rural economic development review panel meeting the requirements of section 2008a of this title; and

(8) appoint a member to the State rural economic development review panel as provided under section 2008a(c)(1)(P) of this title.

(d) Official information

The Secretary may appoint as nonvoting members, temporarily and for specific purposes, personnel from any department or agency of the United States, with the consent of the head of such department or agency, with expertise not available among the members of any State rural economic development review panel as may be necessary to enable the panel to perform a duty described in section 2008a(b) of this title.

(e) Allocation of appropriated funds

(1) Initial allocation

The Secretary shall allocate the sums appropriated for direct loans, loan guarantees, or grants for any designated rural development program made available to any eligible State under such program for any fiscal year to the projects specified in subsection (c)(4) of this section giving great weight to the order in which the applications for such projects are ranked on the list specified in subsection (c)(1) of this section.

(2) Equitable reallocation of unobligated funds

Notwithstanding paragraph (1), the Secretary shall, on July 15 of each year, and from time to time thereafter during the fiscal year as the Secretary determines appropriate, pool from among the eligible States any unobligated funds appropriated for direct loans, loan guarantees, or grants for each designated rural development program and reallocate such funds among the eligible States according to need, as determined by the Secretary.

(f) Inapplicability of Federal Advisory Committee Act

The Federal Advisory Committee Act shall not apply to any State rural economic development review panel.

(g) No liability of members of State rural economic development review panels

The members of a State rural economic development review panel shall not be liable to any person with respect to any determination made by the panel.

(h) Eligibility for water and waste facility loans

(1) Rural electrification program borrowers

Notwithstanding any other provision of law, a borrower under title III of the Rural Electrification Act of 1936 [7 U.S.C. 930 et seq.] shall be eligible to receive loans and grants under section 1926 of this title on an equal basis with any other applicant for such assistance, and the terms and conditions, rules, criteria and other provisions of section 1926 of this title shall apply to such a borrower. In the case of applications from such a borrower, the Administrator of the Rural Electrification Administration shall provide technical assistance with respect to water and waste facilities and loans and grants for such facilities.

(2) Prohibition on restricting water and waste facility services to electric customers

The Secretary shall establish rules and procedures that prohibit borrowers under title III of the Rural Electrification Act of 1936 [7 U.S.C. 930 et seq.] from conditioning or limiting access to, or the use of, water and waste facility services financed under this chapter if such conditioning or limiting is based on whether individuals or entities in the area served or proposed to be served by such facility receive, or will accept, electric service from such borrower.

(Pub. L. 87 128, title III, §365, as added Pub. L. 101 624, title XXIII, §2316(a), Nov. 28, 1990, 104 Stat. 4000; amended Pub. L. 102 237, title VII, §701(e), Dec. 13, 1991, 105 Stat. 1879.)

References in Text

Section 1323 of the Food Security Act of 1985 [Pub. L. 99 198], referred to in subsec. (b)(2), is set out as a note under section 1932 of this title.

The Federal Advisory Committee Act, referred to in subsec. (f), is Pub. L. 92 463, Oct. 6, 1972, 86 Stat. 770, as amended, which is set out in the Appendix to Title 5, Government Organization and Employees.

The Rural Electrification Act of 1936, referred to in subsec. (h), is act May 20, 1936, ch. 432, 49 Stat. 1363 , as amended. Title III of the Act is classified generally to subchapter III (§930 et seq.) of chapter 31 of this title. For complete classification of this Act to the Code, see section 901 of this title and Tables.

This chapter, referred to in subsec. (h)(2), was in the original "the Consolidated Farm and Rural Development Act", which is title III of Pub. L. 87 128, as amended. For complete classification of this Act to the Code, see Short Title note set out under section 1921 of this title and Tables.

Amendments

1991-Subsec. (b)(4)(A), (5). Pub. L. 102 237 substituted "(3)(A)(iii)" for "(3)(C)" in par. (4)(A) and "(3)(A)(ii)" for "(3)(B)" in par. (5).

Effective Date of 1991 Amendment

Amendment by Pub. L. 102 237 effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, Pub. L. 101 624, to which the amendment relates, see section 1101(b)(6) of Pub. L. 102 237, set out as a note under section 1421 of this title.

Effective Date

Section effective Oct. 1, 1991, see section 2007(d) of this title.

Section Referred to in Other Sections

This section is referred to in sections 1932, 2007, 2008a, 2008b, 2008c, 6613, 6943 of this title.