Announcement of Grant Application Deadlines and Funding Levels, 88199-88205 [2016-29336]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Utilities Service

[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)]
[Notices]
[Pages 88199-88205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29336]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Announcement of Grant Application Deadlines and Funding Levels

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of Solicitation of Applications (NOSA), Household Water 
Well System Grant Program.

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SUMMARY: The Rural Utilities Service (RUS) announces its Household 
Water Well System (HWWS) Grant Program application window for fiscal 
year (FY) 2017. RUS will make grants to qualified private non-profit 
organizations to establish lending programs for homeowners to borrow up 
to $11,000 to construct or repair household water wells for an existing 
home. The HWWS Grant Program is authorized under 7 U.S.C. 1926e. 
Regulations may be found at 7 CFR part 1776.
    This year RUS will assign administrative discretion points to 
applications that:
    1. Direct loans to rural areas where according to the American 
Community Survey data by census tracts show that at least 20 percent of 
the population is living in poverty.
    2. Direct loans to areas which lack running water, flush toilets, 
and modern sewage disposal systems, and areas which have open sewers 
and high rates of disease caused by poor sanitation, in particular, 
colonias or Substantially Underserved Trust Areas.
    3. Direct loans to rural areas impacted by severe drought.

DATES: The deadline for completed applications for a HWWS grant is 
February 6, 2017. Applications in either paper or electronic format 
must be postmarked or time-stamped electronically on or before the 
deadline. Late applications will be ineligible for grant consideration.

ADDRESSES: Submit applications to the following addresses:
    1. Electronic applications: https://www.grants.gov/. Submit 
electronic applications through Grants.gov, following the instructions 
on that Web site.
    2. Paper applications: Water Programs Division, Rural Development, 
Rural Utilities Service, STOP: 1570, Room 2234-S, 1400 Independence 
Avenue SW., Washington, DC 20250-1570.
    Obtain application guides and materials for the HWWS Grant Program 
electronically or in paper format from the following addresses:
    1. Electronic copies: https://www.rd.usda.gov/programs-services/household-water-well-system-grants;
    2. Paper copies: Water Programs Division, Rural Utilities Service, 
STOP: 1570, Room 2234-S, 1400 Independence Avenue SW., Washington, DC 
20250-1570 or call (202) 720-9583.

FOR FURTHER INFORMATION CONTACT: Derek Jones, Community Programs 
Specialist, Water and Environmental Programs, Rural Utilities Service, 
Rural Development, U.S. Department of Agriculture, STOP 1570, Room 
2234-S, 1400 Independence Avenue SW., Washington, DC 20250-1570;. 
Telephone: (202) 720-9640, fax: (202) 690-0649, email: 
derek.jones@wdc.usda.gov.

SUPPLEMENTARY INFORMATION: 

Overview

    Federal Agency: Rural Utilities Service, USDA.
    Funding Opportunity Title: HWWS Grant Program.
    Announcement Type: Grant--Solicitation of Applications.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.862.
    Due Date for Applications: February 6, 2017.

Items in Supplementary Information

    I. Funding Opportunity: Description of the HWWS Grant Program.
    II. Award Information: To be determined.
    III. Eligibility Information: Who is eligible, what kinds of 
projects are eligible, what criteria determine basic eligibility.

[[Page 88200]]

    IV. Application and Submission Information: Where to get 
application materials, what constitutes a completed application, how 
and where to submit applications, deadlines, items that are 
eligible.
    V. Application Review Information: Considerations and 
preferences, scoring criteria, review standards, selection 
information.
    VI. Award Administration Information: Award notice information, 
award recipient reporting requirements.
    VII. Agency Contacts: Web site, phone, fax, email, contact name.
    VIII. Non-discrimination Statement: USDA non-discrimination 
statement, how to file a complaint, persons with disabilities.

I. Funding Opportunity

A. Program Description

    The HWWS Grant Program has been established to help individuals 
with low to moderate incomes finance the costs of household water wells 
that they own or will own. The HWWS Grant Program is authorized under 
Section 306E of the Consolidated Farm and Rural Development Act 
(CONACT), 7 U.S.C. 1926e. The CONACT authorizes RUS to make grants to 
qualified private non-profit organizations to establish lending 
programs for household water wells.
    As the grant recipients, private non-profit organizations will 
receive HWWS grants to establish lending programs that will provide 
water well loans to individuals. The individuals, as loan recipients, 
may use the loans to construct, refurbish, and service their household 
well systems. A loan may not exceed $11,000 and will have a term up to 
20 years at a one percent annual interest rate.

B. Background

    RUS supports the sound development of rural communities and the 
growth of our economy without endangering the environment. RUS provides 
financial and technical assistance to help communities bring safe 
drinking water and sanitary, environmentally sound waste disposal 
facilities to Rural Americans in greatest need.
    Central water systems may not be the only or best solution to 
drinking water problems. Distance or physical barriers make public 
central water systems costly to deploy in remote areas. A significant 
number of geographically isolated households without water service 
might require individual wells rather than connections to new or 
existing community systems. The goal of RUS is not only to make funds 
available to those communities most in need of potable water but also 
to ensure that facilities used to deliver drinking water are safe and 
affordable. There is a role for private wells in reaching this goal.

C. Purpose

    The purpose of the HWWS Grant Program is to provide funds to 
private non-profit organizations to assist them in establishing loan 
programs from which individuals may borrow money for HWWS. Faith-based 
organizations are eligible and encouraged to apply for this program. 
Applicants must show that the project will provide technical and 
financial assistance to eligible individuals to remedy household well 
problems.
    Due to the limited amount of funds available typically available 
under the HWWS Grant Program, the RUS anticipates that 10 applications 
may be funded from FY 2017 funds. Applications from existing HWWS grant 
recipients are acceptable and will be evaluated as new applications.

II. Award Information

    Funding Instrument Type: Grant.
    Available Funds: To be announced.
    Anticipated Number of Awards: 10.
    Length of Project Periods: 12-month project.
    Assistance Instrument: Grant Agreement with successful applicants 
before any grant funds are disbursed.

III. Eligibility Information

A. Who is eligible for grants?

    1. An organization is eligible to receive a HWWS grant if it:
    a. Has an active registration with current information in the 
System for Award Management (SAM) and has a Dun and Bradstreet (D&B) 
Data Universal Numbering System (DUNS) number.
    b. Is a private, non-profit organization.
    c. Is legally established and located within one of the following:

(1) A state within the United States
(2) The District of Columbia
(3) The Commonwealth of Puerto Rico
(4) A United States territory.

    d. Has the legal capacity and authority to carry out the grant 
purpose.
    e. Has sufficient expertise and experience in lending activities.
    f. Has sufficient expertise and experience in promoting the safe 
and productive use of individually-owned HWWS and ground water.
    g. Has no delinquent debt to the federal government or no 
outstanding judgments to repay a federal debt.
    h. Demonstrates that it possesses the financial, technical, and 
managerial capability to comply with federal and State laws and 
requirements, and
    i. Is not a corporation that has been convicted of a felony (or had 
an officer or agent acting on behalf of the corporation convicted of a 
felony) within the past 24 months. Any Corporation that has any unpaid 
federal tax liability that has been assessed, for which all judicial 
and administrative remedies have been exhausted or have lapsed, and 
that is not being paid in a timely manner pursuant to an agreement with 
the authority responsible for collecting the tax liability is not 
eligible.
    2. An individual is ineligible to receive a HWWS grant. An 
individual may receive a loan from an organization receiving a grant 
award.

B. What are the basic eligibility requirements for a project?

    1. Project Eligibility. To be eligible for a grant, the project 
must:
    a. Be a revolving loan fund created to provide loans to eligible 
individuals to construct, refurbish, and service individually-owned 
HWWS (see 7 CFR 1776.11 and 1776.12). Loans may not be provided for 
home sewer or septic system projects.
    b. Be established and maintained by a private, non-profit 
organization.
    c. Be located in a rural area. Rural area is defined as locations 
other than cities or towns of more than 50,000 people and the 
contiguous and adjacent urbanized area of such towns and cities.
    2. Required Matching Contributions. Grant applicants must provide 
written evidence of a matching contribution of at least 10 percent from 
sources other than the proceeds of a HWWS grant. In-kind contributions 
will not be considered for the matching requirement. Please see 7 CFR 
1776.9 for the requirement.
    3. Other--Requirements.
    a. DUNS Number. The applicant for a grant must supply a DUNS number 
as part of an application. The Standard Form 424 (SF-424) contains a 
field for the DUNS number. The applicant can obtain the DUNS number 
free of charge by calling Dun and Bradstreet. Please see https://fedgov.dnb.com/webform for more information on how to obtain a DUNS 
number or how to verify your organization's number.
    b. Prior to submitting an application, the applicant must register 
in System for Award Management (SAM).
    (1) Applicants may register for SAM at https://www.sam.gov/portal/public/SAM/.
    (2) The SAM registration must remain active with current 
information at all times while RUS is considering an application or 
while a Federal grant award or loan is active. To maintain the 
registration in the SAM database the applicant must review and update 
the information in the SAM database

[[Page 88201]]

annually from date of initial registration or from the date of the last 
update. The applicant must ensure that the information in the database 
is current, accurate, and complete.
    c. Eligibility to receive a HWWS loan will be based on the 
following criteria:
    (1) An individual must be a member of a household of which the 
combined household income of all members does not exceed 100 percent of 
the median non-metropolitan household income for the State or territory 
in which the individual resides. Household income is the total income 
from all sources received by each adult household member for the most 
recent 12-month period for which the information is available. It does 
not include income earned or received by dependent children under 18 
years old or other benefits that are excluded by federal law. The non-
metropolitan household income must be based on the 5-year income data 
from the American Community Survey (ACS) or, if needed, other data from 
the United States Bureau of the Census.
    RUS publishes a list of income exclusions in 7 CFR 3550.54(b). 
Also, the Department of Housing and Urban Development published a list 
of income exclusions in the Federal Register on May 20, 2014, at 79 FR 
28938 (see ``Federally Mandated Exclusions'').
    (2) The loan recipient must own and occupy the home being improved 
with the proceeds of the Household Water Well loan or be purchasing the 
home to occupy under a legally enforceable land purchase contract which 
is not in default by either the seller or the purchaser.
    (3) The home being improved with the water well system must be 
located in a rural area.
    (4) The loan for a water well system must not be associated with 
the construction of a new dwelling.
    (5) The loan must not be used to substitute a water well system for 
water service available from collective water systems. (For example, a 
loan may not be used to restore an old well abandoned when a dwelling 
was connected to a water district's water line.)
    (6) The loan recipient must not be suspended or debarred from 
participation in Federal programs.

IV. Application and Submission Information

A. Where To Get Application Information

    The HWWS Grant Application Guide (Application Guide), copies of 
necessary forms and samples, and the HWWS Grant Program regulation are 
available from these sources:
    1. Internet for electronic copies: https://www.grants.gov/ or https://www.rd.usda.gov/programs-services/household-water-well-system-grants;
    2. Water and Environmental Programs for paper copies: RUS, Water 
Programs Division, STOP 1570, Room 2233-S, 1400 Independence Avenue 
SW., Washington, DC 20250-1570, Telephone: (202) 720-9589, Fax: (202) 
690-0649.

B. Content and Form of Application Submission

    1. Rules and Guidelines:
    a. Detailed information on each item required can be found in the 
HWWS Grant Program regulation (7 CFR part 1776) and the Application 
Guide. Applicants are strongly encouraged to read and apply both the 
regulation and the Application Guide. This Notice does not change the 
requirements for a completed application for any form of HWWS financial 
assistance specified in the regulation. The regulation and Application 
Guide provide specific guidance on each of the items listed.
    b. Applications should be prepared in conformance with the 
provisions in 7 CFR part 1776, subpart B, and departmental and other 
applicable regulations including 2 CFR parts 180, 182, 200, 400, and 
421, or any successor regulations. Applicants should use the 
Application Guide which contains instructions and other important 
information in preparing their application. Completed applications must 
include the items found in the checklist in the next paragraph.
    2. Checklist of Items in Completed Application Packages:
    a. DUNS Number. The applicant for a grant must supply a Dunn and 
Bradstreet Data Universal Numbering System (DUNS) number as part of an 
application. The Standard Form 424 (SF-424) contains a field for the 
DUNS number. The applicant can obtain the DUNS number free of charge by 
calling Dun and Bradstreet. Please see https://fedgov.dnb.com/webform 
for more information on how to obtain a DUNS number or how to verify 
your organization's number.
    b. Prior to submitting an application, the applicant must register 
in the System for Award Management (SAM).
    (1) Applicants may register for the SAM at: https://www.sam.gov/portal/public/SAM/.
    (2) The SAM registration must remain active with current 
information at all times while RUS is considering an application or 
while a Federal Grant Award or loan is active. To maintain the 
registration in the SAM database the applicant must review and update 
the information in the SAM database annually from date of initial 
registration or from the date of the last update. The applicant must 
ensure that the information in the database is current, accurate, and 
complete.
    (3) Your organization must be listed in the SAM. If you have not 
used Grants.gov before, you will need to register with the SAM and the 
Credential Provider. New registrations can take three to five business 
days to process. Updating or renewing an active registration has a 
shorter turnaround, 24 hours. Registrations in SAM are active for one 
year. The SAM registers your organization, housing your organizational 
information and allowing Grants.gov to use the information to verify 
your identity. The DUNS number, Taxpayer Identification Number (TIN), 
and name and address of the applicant organization must match SAM data 
files.
    c. The electronic and paper application process requires forms with 
the prefixes RD and SF as well as supporting documents and 
certifications.
Application Items
    (1) SF-424, ``Application for Federal Assistance''.
    (2) SF-424A, ``Budget Information--Non-Construction Programs''.
    (3) SF-424B, ``Assurances--Non-Construction Programs''.
    (4) SF-LLL, ``Disclosure of Lobbying Activity''.
    (5) Form RD 400-1, ``Equal Opportunity Agreement''.
    (6) Form RD 400-4, ``Assurance Agreement (Under Title VI, Civil 
Rights Act of 1964).
    (7) Project Proposal, Project Summary, Needs Assessment, Project 
Goals and Objectives, Project Narrative.
    (8) Work Plan.
    (9) Budget and Budget Justification.
    (10) Evidence of Legal Authority and Existence.
    (11) Documentation of private non-profit status and Internal 
Revenue Service (IRS) Tax Exempt Status.
    (12) List of Directors and Officers.
    (13) Financial information and sustainability (narrative).
    (14) Assurances and certifications of compliance with other Federal 
Statutes.
    The forms in items 1 through 6 must be completed and signed where 
appropriate by an official of your organization who has authority to 
obligate the organization legally. RD forms are used by programs under 
the RD mission area. Standard forms (SF) are used government-wide. In 
addition

[[Page 88202]]

to the sources listed in section A, the forms may be accessed 
electronically through the RD Web site at https://www.rd.usda.gov/publications.
    See section V, ``Application Review Information,'' for instructions 
and guidelines on preparing Items 7 through 13.
    3. Compliance with Other Federal Statutes. The applicant must 
provide evidence of compliance with other Federal statutes and 
regulations, including, but not limited to the following:
    a. 7 CFR part 15, subpart A--Nondiscrimination in Federally 
Assisted Programs of the Department of Agriculture--Effectuation of 
Title VI of the Civil Rights Act of 1964.
    b. 2 CFR part 417--Governmentwide Debarment and Suspension 
(Nonprocurement), or any successor regulations.
    c. 7 CFR part 3052--Audits of States, Local Governments, and Non-
profit Organizations, or any successor regulations.
    d. Subpart B of 2 CFR part 421, which adopts the Governmentwide 
implementation (2 CFR part 182) of the Drug-Free Workplace Act.
    e. Executive Order 13166, ``Improving Access to Services for 
Persons with Limited English Proficiency.'' For information on limited 
English proficiency and agency-specific guidance go to https://www.lep.gov/.
    f. Federal Obligation Certification on Delinquent Debt.

C. How many copies of an application are required?

    1. Applications Submitted on Paper. Submit one signed original and 
two additional copies. The original and each of the two copies must 
include all required forms, certifications, assurances, and appendices, 
be signed by an authorized representative, and have original 
signatures. Do not include organizational brochures or promotional 
materials.
    2. Applications Submitted Electronically. Additional paper copies 
are unnecessary if the application is submitted electronically through 
https://www.grants.gov/.

D. How and Where To Submit an Application

    1. Submitting Paper Applications:
    a. For paper applications, mail or ensure delivery of an original 
paper application (no stamped, photocopied, or initialed signatures) 
and two copies by the deadline date to:
    Rural Development, Rural Utility Service, Water Programs Division, 
STOP 1570, Room 2234-S, 1400 Independence Avenue SW., Washington, DC 
20250-1570, Telephone: (202) 720-9583.
    Submit paper applications marked ``Attention: Water and 
Environmental Programs.''
    b. Applications must show proof of mailing or shipping by one of 
the following:
    (1) A legibly dated U.S. Postal Service (USPS) postmark;
    (2) A legible mail receipt with the date of mailing stamped by the 
USPS; or,
    (3) A dated shipping label, invoice, or receipt from a commercial 
carrier.
    c. If a deadline date falls on a weekend, it will be extended to 
the following Monday. If the date falls on a federal holiday, it will 
be extended to the next business day.
    d. Due to screening procedures at the Department of Agriculture, 
packages arriving via the USPS are irradiated, which can damage the 
contents and delay delivery. RUS encourages applicants to consider the 
impact of this procedure in selecting an application delivery method.
    2. Submitting Electronic Applications:
    a. Applications will not be accepted by fax or electronic mail.
    b. Electronic applications for grants will be accepted if submitted 
through Grants.gov at https://www.grants.gov/.
    c. Applicants must preregister successfully with Grants.gov to use 
the electronic applications option. Application information may be 
downloaded from Grants.gov without preregistration.
    d. Applicants who apply through Grants.gov should submit their 
electronic applications before the deadline.
    e. Grants.gov contains full instructions on all required passwords, 
credentialing, and software. Follow the instructions at Grants.gov for 
registering and submitting an electronic application.
    f. Grants.gov has two preregistration requirements: A DUNS number 
and an active registration in SAM. See the ``Checklist of Items in 
Completed Application Packages'' for instructions on obtaining a DUNS 
number and registering in the SAM.
    g. You must be registered with Grants.gov before you can submit an 
electronic grant application.
    (1) You must register at Grants.gov: https://www.grants.gov/applicants/get_registered.jsp.
    (2) Organization registration user guides and checklists are also 
available at Grants.gov.
    (3) Grants.gov requires some credentialing and online 
authentication procedures. When an applicant organization is registered 
with SAM, the organization designates a point of contact who receives a 
password authorizing the person to designate staff members who are 
allowed to submit applications electronically through Grants.gov. These 
authorized organization representatives must be registered with 
Grants.gov to receive a username and password to submit applications. 
These procedures may take several business days to complete.
    (4) Some or all of the SAM and Grants.gov registration, 
credentialing and authorizations require updates. If you have 
previously registered at Grants.gov to submit applications 
electronically, please ensure that your registration, credentialing and 
authorizations are up to date well in advance of the grant application 
deadline.
    h. To use Grants.gov:
    (1) Follow the instructions on the Web site to find grant 
information.
    (2) Download a copy of an application package.
    (3) Complete the package off-line.
    (4) Upload and submit the application via the Grants.gov Web site.
    (5) If a system problem or technical difficulty occurs with an 
electronic application, please use the customer support resources 
available at the Grants.gov Web site.
    (6) Again, RUS encourages applicants to take early action to 
complete the sign-up, credentialing and authorization procedures at 
Grants.gov before submitting an application at the Web site.

E. Deadlines

    The deadline for paper and electronic submissions is February 6, 
2017. Paper applications must be postmarked and mailed, shipped, or 
sent overnight no later than the closing date to be considered for FY 
2017 grant funding. Electronic applications must have an electronic 
date and time stamp by midnight of February 6, 2017 to be considered on 
time. RUS will not accept applications by fax or email. Applications 
that do not meet the criteria above are considered late applications 
and will not be considered. RUS will notify each late applicant that 
its application will not be considered.

F. Funding Restrictions

    1. Eligible Grant Purposes:
    a. Grant funds must be used to establish and maintain a revolving 
loan fund to provide loans to eligible individuals for household water 
well systems.
    b. Individuals may use the loans to construct, refurbish, 
rehabilitate, or

[[Page 88203]]

replace household water well systems up to the point of entry of a 
home. Point of entry for the well system is the junction where water 
enters into a home water delivery system after being pumped from a 
well.
    c. Grant funds may be used to pay administrative expenses 
associated with providing HWWS loans.
    2. Ineligible Grant Purposes:
    a. Administrative expenses incurred in any calendar year that 
exceed 10 percent of the household water well loans made during the 
same period do not qualify for reimbursement.
    b. Administrative expenses incurred before RUS executes a grant 
agreement with the recipient do not qualify for reimbursement.
    c. Delinquent debt owed to the Federal Government does not qualify 
for reimbursement.
    d. Grant funds may not be used to provide loans for household sewer 
or septic systems.
    e. Household Water Well loans may not be used to pay the costs of 
water well systems for the construction of a new house.
    f. Household Water Well loans may not be used to pay the costs of a 
home plumbing system.

V. Application Review Information

A. Criteria

    This section contains instructions and guidelines on preparing the 
project proposal, work plan, and budget sections of the application. 
Also, guidelines are provided on the additional information required 
for RUS to determine eligibility and financial feasibility.
    1. Project Proposal. The project proposal should outline the 
project in sufficient detail to provide a reader with a complete 
understanding of the loan program. Explain what will be accomplished by 
lending funds to individual well owners. Demonstrate the feasibility of 
the proposed loan program in meeting the objectives of this grant 
program. The proposal should include the following elements:
    a. Project Summary. Present a brief project overview. Explain the 
purpose of the project, how it relates to RUS' purposes, how the 
project will be executed, what the project will produce, and who will 
direct it.
    b. Needs Assessment. To show why the project is necessary, clearly 
identify the economic, social, financial, or other problems that 
require solutions. Demonstrate the well owners' need for financial and 
technical assistance. Quantify the number of prospective borrowers or 
provide statistical or narrative evidence that a sufficient number of 
borrowers will exist to justify the grant award. Describe the service 
area. Provide information on the household income of the area and other 
demographical information. Address community needs.
    c. Project Goals and Objectives. Clearly state the project goals. 
The objectives should clearly describe the goals and be concrete and 
specific enough to be quantitative or observable. They should also be 
feasible and relate to the purpose of the grant and loan program.
    d. Project Narrative. The narrative should cover in more detail the 
items briefly described in the Project Summary. Demonstrate the grant 
applicant's experience and expertise in promoting the safe and 
productive use of individually-owned household water well systems. The 
narrative should address the following points:
    (1) Document the grant applicant's ability to manage and service a 
revolving fund. The narrative may describe the systems that are in 
place for the full life cycle of a loan from loan origination through 
servicing. If a servicing contractor will service the loan portfolio, 
the arrangement and services provided must be discussed.
    (2) Show evidence of the availability of funds from sources other 
than the HWWS grant. Describe the contributions the project will 
receive from your organization, state agencies, local government, other 
federal agencies, non-government organizations, private industry, and 
individuals. The documentation should describe how the contributions 
will be used to pay your operational costs and provide financial 
assistance for projects.
    (3) Demonstrate that the organization has secured commitments of 
significant financial support from other funding sources.
    (4) List the fees and charges that borrowers will be assessed.
    2. Work Plan. The work plan or scope of work must describe the 
tasks and activities that will be accomplished with available resources 
during the grant period. It must include who will carry out the 
activities and services to be performed and specific timeframes for 
completion. Describe any unusual or unique features of the project such 
as innovations, reductions in cost or time, or extraordinary community 
involvement.
    3. Budget and Budget Justification. Use the Form SF-424A, Budget 
Information--Non-Construction Programs, to show your budget cost 
elements. The form summarizes resources as Federal and Non-Federal 
funds and costs. ``Federal'' refers only to the HWWS Grant Program for 
which you are applying. ``Non-Federal'' refers to resources from your 
organization, state agencies, local government, other federal agencies, 
non-government organizations, private industry, and individuals. Both 
Federal and Non-Federal resources shall be detailed and justified in 
the budget and narrative justification.
    a. Provide a budget with line item detail and detailed calculations 
for each budget object class identified in section B of the Budget 
Information form (SF-424A). Detailed calculations must include 
estimation methods, quantities, unit costs, and other similar 
quantitative detail sufficient for the calculation to be duplicated. 
Also include a breakout by the funding sources identified in Block 15 
of the SF-424.
    b. Provide a narrative budget justification that describes how the 
categorical costs are derived for all capital and administrative 
expenditures, the matching contribution, and other sources of funds 
necessary to complete the project. Discuss the necessity, 
reasonableness, and allocability of the proposed costs.
    c. If the grant applicant will use a servicing contractor, the fees 
may be reimbursed as an administrative expense as provided in 7 CFR 
1776.13. These fees must be discussed in the budget narrative. If the 
grant applicant will hire a servicing contractor, it must demonstrate 
that all procurement transactions will be conducted in a manner to 
provide, to the maximum extent practical, open and free competition. 
Recipients must justify any anticipated procurement action that is 
expected to be awarded without competition and exceed the simplified 
acquisition threshold fixed at 41 U.S.C. 134 (currently set at 
$100,000).
    d. The indirect cost category should be used only when the grant 
applicant currently has an indirect cost rate approved by the 
Department of Agriculture or another cognizant Federal agency. A grant 
applicant that will charge indirect costs to the grant must enclose a 
copy of the current rate agreement. If the grant applicant is in the 
process of initially developing or renegotiating a rate, the grant 
applicant shall submit its indirect cost proposal to the cognizant 
agency immediately after the applicant is advised that an award will be 
made. In no event, shall the indirect cost proposal be submitted later 
than three months after the effective date of the award.
    4. Evidence of Legal Authority and Existence. The applicant must 
provide satisfactory documentation that it is

[[Page 88204]]

legally recognized under state or Tribal and Federal law as a private 
non-profit organization. The documentation also must show that it has 
the authority to enter into a grant agreement with RUS and to perform 
the activities proposed under the grant application. Satisfactory 
documentation includes, but is not limited to, certificates from the 
Secretary of State, copies of state/Tribal statutes or laws 
establishing your organization, and copies of your organization's 
articles of incorporation and bylaws. Letters from IRS awarding tax-
exempt status are not considered adequate evidence.
    5. List of Directors and Officers. The applicant must submit a 
certified list of directors and officers with their respective terms.
    6. IRS Tax Exempt Status. The applicant must submit evidence of tax 
exempt status from the Internal Revenue Service.
    7. Financial Information and Sustainability. The applicant must 
submit pro forma balance sheets, income statements, and cash flow 
statements for the last three years and projections for three years. 
Additionally, the most recent audit of the applicant's organization 
must be submitted.

B. Evaluation Criteria

    Grant applications that are complete and eligible will be scored 
competitively based on the following scoring criteria:

------------------------------------------------------------------------
              Scoring criteria                          Points
------------------------------------------------------------------------
Degree of expertise and experience in        Up to 30 points.
 promoting the safe and productive use of
 individually-owned household water well
 systems and ground water.
Degree of expertise and successful           Up to 20 points.
 experience in making and servicing loans
 to individuals.
Percentage of applicant contributions.
 Points allowed under this paragraph will
 be based on written evidence of the
 availability of funds from sources other
 than the proceeds of a HWWS grant to pay
 part of the cost of a loan recipient's
 project. In-kind contributions will not be
 considered. Funds from other sources as a
 percentage of the HWWS grant and points
 corresponding to such percentages are as
 follows:
    0 to 9 percent.........................  Ineligible.
    10 to 25 percent.......................  5 points.
    26 to 30 percent.......................  10 points.
    31 to 50 percent.......................  15 points.
    51 percent or more.....................  20 points.
Extent to which the work plan demonstrates   Up to 20 points.
 a well thought out, comprehensive approach
 to accomplishing the objectives of this
 part, clearly defines who will be served
 by the project, and appears likely to be
 sustainable.
Extent to which the goals and objectives     Up to 10 points.
 are clearly defined, tied to the work
 plan, and measurable.
Lowest ratio of projected administrative     Up to 10 points.
 expenses to loans advanced.
Administrator's discretion, considering
 such factors as:
    Creative outreach ideas for marketing    Up to 10 points.
     HWWS loans to rural residents; factors
     include:
        1. Directs loans to rural areas
         where according to the American
         Community Survey data by census
         tracts show that at least 20
         percent of the population is
         living in poverty. Directs loans
         to areas which lack running water,
         flush toilets, and modern sewage
         disposal systems, and areas which
         have open sewers and high rates of
         disease caused by poor sanitation,
         in particular, colonias or
         Substantially Underserved Trust
         Areas.
        2. Areas impacted by severe drought
------------------------------------------------------------------------

C. Review Standards

    1. Incomplete applications as of the deadline for submission will 
not be considered. If an application is determined to be incomplete, 
the applicant will be notified in writing and the application will be 
returned with no further action.
    2. Ineligible applications will be returned to the applicant with 
an explanation.
    3. Complete, eligible applications will be evaluated competitively 
by a review team, composed of at least two RUS employees selected from 
the Water Programs Division. They will make overall recommendations 
based on the program elements found in 7 CFR part 1776 and the review 
criteria presented in this notice. They will award points as described 
in the scoring criteria in 7 CFR 1776.9 and this notice. Each 
application will receive a score based on the averages of the 
reviewers' scores and discretionary points awarded by the RUS 
Administrator.
    4. Applications will be ranked and grants awarded in rank order 
until all grant funds are expended.
    5. Regardless of the score an application receives, if RUS 
determines that the project is technically infeasible, RUS will notify 
the applicant, in writing, and the application will be returned with no 
further action.

VI. Award Administration Information

A. Award Notices

    RUS will notify a successful applicant by an award letter 
accompanied by a grant agreement. The grant agreement will contain the 
terms and conditions for the grant. The applicant must execute and 
return the grant agreement, accompanied by any additional items 
required by the award letter or grant agreement.

B. Administrative and National Policy Requirements

    1. This notice, the 7 CFR part 1776, and the application guide 
implement the appropriate administrative and national policy 
requirements. Grant recipients are subject to the requirements in 7 CFR 
part 1776.
    2. Direct federal grants, sub-award funds, or contracts under the 
HWWS Grant Program shall not be used to fund inherently religious 
activities, such as worship, religious instruction, or proselytization. 
Therefore, organizations that receive direct assistance should take 
steps to separate, in time or location, their inherently religious 
activities from the services funded under the HWWS Grant Program. 
Regulations for the Equal Treatment for Faith-based Organizations are 
contained in 7 CFR part 16, which includes the prohibition against 
federal funding of inherently religious activities.

C. Reporting

    1. Performance Reporting. All recipients of HWWS Grant Program 
financial assistance must provide quarterly performance activity 
reports to RUS until the project is complete and the funds are 
expended. A final

[[Page 88205]]

performance report is also required. The final report may serve as the 
last annual report. The final report must include an evaluation of the 
success of the project.
    2. Financial Reporting. All recipients of HWWS Grant Program 
financial assistance must provide an annual audit, beginning with the 
first year a portion of the financial assistance is expended. The Non-
Federal Entity (formerly called Grantee) will provide an audit report 
or financial statements as follows:
    a. Non-Federal Entities expending $500,000 or more Federal funds 
per fiscal year will submit an audit conducted in accordance with 2 CFR 
part 200 or successor guidance. The audit will be submitted within nine 
months after the Non-Federal Entity's fiscal year. Additional audits 
may be required if the project period covers more than one fiscal year.
    b. Non-Federal Entities expending less than $500,000 will provide 
annual financial statements covering the grant period, consisting of 
the organization's statement of income and expense and balance sheet 
signed by an appropriate official of the organization. Financial 
statements will be submitted within 90 days after the Non-Federal 
Entity's fiscal year.
    3. Recipient and Subrecipient Reporting. The applicant must have 
the necessary processes and systems in place to comply with the 
reporting requirements for first-tier sub-awards and executive 
compensation under the Federal Funding Accountability and Transparency 
Act of 2006 in the event the applicant receives funding unless such 
applicant is exempt from such reporting requirements pursuant to 2 CFR 
170.110(b). The reporting requirements under the Transparency Act 
pursuant to 2 CFR part 170 are as follows:
    a. First Tier Sub-Awards of $25,000 or more in non-Recovery Act 
funds (unless they are exempt under 2 CFR part 170) must be reported by 
the Recipient to https://www.fsrs.gov/ no later than the end of the 
month following the month the obligation was made.
    b. The Total Compensation of the Recipient's Executives (five most 
highly compensated executives) must be reported by the Recipient (if 
the Recipient meets the criteria under 2 CFR part 170) to https://www.sam.gov/portal/public/SAM/ by the end of the month following the 
month in which the award was made.
    c. The Total Compensation of the Subrecipient's Executives (5 most 
highly compensated executives) must be reported by the Subrecipient (if 
the Subrecipient meets the criteria under 2 CFR part 170) to the 
Recipient by the end of the month following the month in which the 
subaward was made.

VII. Agency Contacts

    A. Web site: https://www.rd.usda.gov/programs-services/household-water-well-system-grants
    B. Phone: 202-720-9640.
    C. Fax: 202-690-0649.
    D. Email: derek.jones@wdc.usda.gov.
    E. Main point of contact: Derek Jones, Community Programs 
Specialist, Water Programs Division, Water and Environmental Programs, 
RUS, Rural Development, U.S. Department of Agriculture.

VIII. USDA Non-Discrimination Statement

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the responsible 
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or 
contact USDA through the Federal Relay Service at (800) 877-8339. 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or 
write a letter addressed to USDA and provide in the letter all of the 
information requested in the form. To request a copy of the complaint 
form, call (866) 632-9992. Submit your completed form or letter to USDA 
by:
    (1) By mail: U.S. Department of Agriculture, Office of the 
Assistant Secretary for Civil Rights, 1400 Independence Avenue SW., 
Washington, DC 20250-9410;
    (2) Fax: (202) 690-7442; or
    (3) Email: program.intake@usda.gov.
    USDA is an equal opportunity provider, employer, and lender.

    Dated: November 7, 2016.
Brandon McBride,
Administrator, Rural Utilities Service.
[FR Doc. 2016-29336 Filed 12-6-16; 8:45 am]
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