[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: 7CFR1778.7]

[Page 1003-1004]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1778--EMERGENCY COMMUNITY WATER ASSISTANCE GRANTS--Table of Contents
 
Sec. 1778.7  Project priority.

    Paragraphs (a) through (d) of this section indicate items and 
conditions which must be considered in selecting applications for 
further development. When ranking eligible applications for 
consideration for limited funds, Agency officials must consider the 
priority items met by each application and the degree to which those 
priorities are met.
    (a) Applications.The application and supporting information 
submitted with it will be used to determine the proposed project's 
priority for available funds.
    (b) State Office review.All applications will be reviewed and scored 
for funding priority using RUS Bulletin 1778-1. The State Program 
Official will request funds from the National Office, Attention: 
Assistant Administrator, Water and Waste, using RUS Bulletins 1778-1 and 
1778-2. If an application cannot be funded, the State Program Official 
will be notified. Eligible applicants that

[[Page 1004]]

cannot be funded should be advised that funds are not available.
    (c) National Office review.Each year all funding requests will be 
reviewed by the National Office starting November 1 and will continue as 
long as funds are available except for the first year in which funds are 
made available for this grant program. A review of funding requests the 
first year will start 30 days after funds are made available. Projects 
selected for funding will be considered based on the priority criteria 
and available funds. Projects must compete on a national basis for 
available funds, and the National Office will allocate funds to State 
offices on a project by project basis.
    (d) Selection priorities.The priorities described below will be used 
by the State Program Official to rate applications and by the Assistant 
Administrator of Water and Waste to select projects for funding. Points 
will be distributed as indicated in paragraphs (d)(1) through (d)(5) of 
this section and will be considered in selecting projects for funding. A 
copy of RUS Bulletins 1778-1 and 1778-2 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 5,000--15 points.
    (2) Income.The median household income of population to be served by 
the proposed project is:
    (i) Not in excess of 70% of the statewide nonmetropolitan median 
household income--30 points.
    (ii) More than 70% and not in excess of 80% of the statewide 
nonmetropolitan median household income--20 points.
    (iii) More than 80% and not in excess of 90% of the statewide 
nonmetropolitan median household income--10 points.
    (iv) Over 90% of the statewide nonmetropolitan median household 
income--0 points.
    (3) Significant decline.Points will only be assigned for one of the 
following paragraphs when the primary purpose of the proposed project is 
to correct a significant decline in the:
    (i) Quantity of water available from private individually owned 
wells or other individual sources of water--30 points; or
    (ii) Quantity of water available from an established system's source 
of water--20 points; or
    (iii) Quality of water available from private individually owned 
wells or other individual sources of water--30 points; or
    (iv) Quality of water available from an established system's source 
of water--20 points.
    (4) Acute shortage.Grants made in accordance with Sec. 1778.11(b) to 
assist an established water system remedy an acute shortage of quality 
water or correct a significant decline in the quantity or quality of 
water that is available--10 points.
    (5) Discretionary.In certain cases the Administrator may assign up 
to 30 points for items such as geographic distribution of funds, rural 
residents hauling water, severe contamination levels, etc.