[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1777.13]

[Page 1000-1001]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1777--SECTION 306C WWD LOANS AND GRANTS--Table of Contents
 
Sec. 1777.13  Project priority.

    Paragraphs (a) through (d) of this section indicate items and 
conditions which must be considered in selecting preapplications for 
further development. When ranking eligible preapplications for 
consideration for limited funds, Agency officials must consider the 
priority items met by each preapplication and the degree to which those 
priorities are met.
    (a) Preapplications. The preapplication and supporting information 
submitted with it will be used to determine applicant eligibility and 
the proposed project's priority for available funds. Applicants 
determined ineligible will be advised of their appeal rights in 
accordance with 7 CFR part 11.
    (b) State Office review. All preapplications will be reviewed and 
scored for funding priority at each State Office using RUS Bulletin 
1777-2. Funds will be requested from the National Office, Attention: 
Water and Waste Processing, using RUS Bulletin 1777-3. Eligible 
applicants that cannot be funded should be advised that funds are not 
available and advised of their appeal rights as set forth in 7 CFR part 
11.
    (c) National Office. The National Office will allocate funds on a 
project-by-project basis as requests are received. If the amount of 
funds requested exceeds the amount of funds available, the total project 
score will be used to select projects for funding. The RUS Administrator 
may assign up to 35 additional points that will be considered in the 
total points for items such as geographic distribution of funds, 
severity of health risks, etc.
    (d) Selection priorities. The priorities described below will be 
used to rate preapplications and in selecting projects for funding. 
Points will be distributed as indicated in paragraphs (d)(1) through 
(d)(5) of this section and will be used in selecting projects for 
funding. A copy of RUS Bulletin 1777-2, used to rate applications, 
should be placed in the case file for future reference.
    (1) Population. The proposed project will serve an area with a rural 
population:
    (i) Not in excess of 1,500--30 points.
    (ii) More than 1,500 and not in excess of 3,000--20 points.
    (iii) More than 3,000 and not in excess of 5,500--10 points.
    (2) Income. The median household income of population to be served 
by the proposed project is:
    (i) Not in excess of 50 percent of the statewide nonmetropolitan 
median household income--40 points.
    (ii) More than 50 percent and not in excess of 60 percent of the 
statewide nonmetropolitan median household income--20 points.
    (iii) More than 60 percent and not in excess of 70 percent of the 
statewide nonmetropolitan median household income--10 points.
    (3) Joint financing. The amount of joint financing committed to the 
proposed project is:
    (i) Twenty percent or more private, local, or State funds except 
Federal funds channeled through a State agency--10 points.
    (ii) Five to 19 percent private, local, or State funds except 
Federal funds channeled through a State agency--5 points.
    (4) Colonia. (See definition in Sec. 1777.4). The proposed project 
will provide water and/or waste disposal services to the residents of a 
colonia--50 points.
    (5) Discretionary. In certain cases, the State Program Official may 
assign up to 15 points for items such as natural disaster, to improve 
compatibility/coordination between the Agency's and other agencies' 
selection systems, to

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assist those projects that are the most cost effective, high 
unemployment rate, severity of health risks, etc. A written 
justification must be prepared and attached to RUS Bulletin 1777-2 each 
time these points are assigned.