[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: 7CFR1781.11]

[Page 1079-1081]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1781--RESOURCE CONSERVATION AND DEVELOPMENT (RCD) LOANS AND WATERSHED (WS) LOANS AND ADVANCES--Table of Contents
 
Sec. 1781.11  Other considerations.

    (a) Technical assistance. When pipelines from reservoirs to 
treatment plants are included in watershed work

[[Page 1080]]

plans, NRCS will not furnish engineering services for their design or 
installation. When such pipelines are to be financed by WS or RCD loans, 
RUS will supervise the activities of the private engineers retained for 
the purpose. Such RUS supervision will include, among other things, 
approval of private engineer's contracts, approval of plans and 
specifications, authorization of contract awards, spot checks of 
engineering inspection, and final inspection and acceptance.
    (b) Professional services. Applicants will be responsible for 
providing the services necessary to plan projects including design of 
facilities, preparation of cost and income estimates, development of 
proposals for organization and financing, and overall operation and 
maintenance of the facility. Necessary professional services may include 
such as that of an engineer, architect, attorney, bond counsel, 
accountant, auditor, and financial advisor or fiscal agent. Form RD 442-
19, ``Agreement for Engineering Services,'' may be used when 
appropriate. RUS Bulletin 1780-7, ``Legal Service Agreement'' may be 
used to prepare the agreement for legal services.
    (c) Other services. Contracts for other services such as management, 
operation, and maintenance will be developed by the applicant and 
presented to the RUS official developing the docket for review and 
approval.
    (d) Fees for services. Fees provided for in contracts, agreements or 
services will not be more than those ordinarily charged by the 
profession for similar work when RUS financing is not involved.
    (e) State pollution control or Environmental Protection Agency 
standards. Facilities will be designed, installed and operated to 
prevent pollution of water in excess of established standards. Effluent 
disposal will conform with appropriate State and Federal Water Pollution 
Control Standards.
    (f) Water pollution. When repayment of a WS loan, WS advance, or RCD 
loan will be dependent upon income from the use or sale of water, RUS 
approval will be contingent upon a determination that the proposed use 
of stored water for recreation or municipal supply might not be 
permitted by a State health department because the water is being 
polluted from an upstream or other source.
    (g) Environmental requirements. Actions will be taken to comply with 
the National Environmental Policy Act (42 U.S.C. 4321 et seq.) in 
accordance with subpart G of part 1940 of this title. When environmental 
assessments and environmental impact statements have been prepared on WS 
plans or RCD area plans by NRCS, a separate environmental impact 
statement or assessment on WS works of improvement or RCD measures for 
which a WS loan, WS advance, or RCD loan is requested will not be 
necessary unless the NRCS environmental review fails to meet the 
requirements of subpart G of part 1940 of this title. The Rural 
Development State Director should document the action taken by NRCS in 
compliance with the requirements of the National Environmental Policy 
Act and formally adopt the impact statement or assessment if 
satisfactory. If a determination is made that a further analysis of the 
environmental impact is needed, the Rural Development State Director 
will make necessary arrangements with the State NRCS conservationist for 
such action to be taken before a loan is made.
    (h) National Historic Preservation Act. All projects will comply 
with the provisions of the National Historic Preservation Act of 1966 
(16 U.S.C. 470 et seq.) in accordance with RD Instruction 1901-F.
    (i) Civil Rights Act of 1964. Recipients of WS loans, WS advances, 
or RCD loans are subject to Title VI of the Civil Rights Act of 1964 (42 
U.S.C. 2000d et seq.), which prohibits discrimination because of race, 
color, or national origin. Borrowers must agree not to discriminate in 
their operations by signing Form RD 400-4, ``Nondiscrimination 
Agreement,'' before loan closing. This requirement should be discussed 
with the applicant as early in the negotiations as possible. Necessary 
actions will be taken in accordance with RD Instruction 1901-E.
    (j) Appraisals. When required by the Rural Development State 
Director, appraisals will be made by an Rural Development official 
designated or an independent appraiser. Form RD 442-10,

[[Page 1081]]

``Appraisal Report--Water and Waste Disposal Systems,'' with appropriate 
supplements, may be modified as needed for use with the type of 
facilities being appraised.
    (k) Architectural Barriers Act of 1968. All facilities financed with 
RUS loans and grants which are accessible to the public or in which 
physically handicapped persons may be employed or reside must be 
developed in compliance with this act (42 U.S.C. 4151 et seq.).