[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: 7CFR1780.17]

[Page 1040-1041]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1780--WATER AND WASTE LOANS AND GRANTS--Table of Contents
 
              Subpart A--General Policies and Requirements
 
Sec. 1780.17  Selection priorities and process.

    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. Points 
will be awarded as follows:
    (a) Population priorities. (1) The proposed project will primarily 
serve a rural area having a population not in excess of 1,000--25 
points;
    (2) The proposed project primarily serves a rural area having a 
population between 1,001 and 2,500--15 points;
    (3) The proposed project primarily serves a rural area having a 
population between 2,501 and 5,500--5 points.
    (b) Health priorities. The proposed project is:
    (1) Needed to alleviate an emergency situation, correct 
unanticipated diminution or deterioration of a water supply, or to meet 
Safe Drinking Water Act requirements which pertain to a water system--25 
points;
    (2) Required to correct inadequacies of a wastewater disposal 
system, or to meet health standards which pertain to a wastewater 
disposal system--25 points;
    (3) Required to meet administrative orders issued to correct local, 
State, or Federal solid waste violations--15 points.
    (c) Median household income priorities. The median household income 
of the population to be served by the proposed project is:
    (1) Less than the poverty line if the poverty line is less than 80% 
of the statewide nonmetropolitan median household income--30 points;
    (2) Less than 80 percent of the statewide nonmetropolitan median 
household income--20 points;
    (3) Equal to or more than the poverty line and between 80% and 100%, 
inclusive, of the State's nonmetropolitan median household income--15 
points.
    (d) Other priorities. (1) The proposed project will: merge 
ownership, management, and operation of smaller facilities providing for 
more efficient management and economical service--15 points;
    (2) The proposed project will enlarge, extend, or otherwise modify 
existing facilities to provide service to additional rural areas--10 
points;
    (3) Applicant is a public body or Indian tribe--5 points;
    (4) Amount of other than RUS funds committed to the project is:
    (i) 50% or more--15 points;
    (ii) 20% to 49%--10 points;
    (iii) 5%--19%--5 points;
    (5) Projects that will serve Agency identified target areas--10 
points;
    (6) Projects that primarily recycle solid waste products thereby 
limiting the need for solid waste disposal--5 points;
    (7) The proposed project will serve an area that has an unreliable 
quality or supply of drinking water--10 points.
    (e) In certain cases the State program official may assign up to 15 
points to a project. The points may be awarded to projects in order to 
improve compatibility and coordination between RUS's and other agencies' 
selection systems, to ensure effective RUS fund utilization, and to 
assist those projects that are the most cost effective. A written 
justification must be prepared and placed in the project file each time 
these points are assigned.
    (f) Cost overruns. An application may receive consideration for 
funding before others at the State or National Office level when it is a 
subsequent request for a previously approved project which has 
encountered construction cost overruns. The cost overruns must be due to 
high bids or unexpected construction problems that cannot be reduced by 
negotiations, redesign, use of bid alternatives, rebidding or other 
means. Cost overruns exceeding 20% of the development cost at time of 
loan or grant approval or where the scope of the original purpose has 
changed will not be considered under this paragraph.
    (g) National office priorities. In selecting projects for funding at 
the National Office level State program official points may or may not 
be considered. The Administrator may assign up to 15 additional points 
to account for items such as geographic distribution of funds, the 
highest priority projects within a state, and emergency conditions 
caused by economic problems or natural disasters. The Administrator

[[Page 1041]]

may delegate the authority to assign the 15 points to appropriate 
National Office staff.