ects for works for the development, storage, treatment, purification, or distribution of water or the collection, treatment, or disposal of waste in rural areas. The amount of any grant made under the authority of this paragraph shall not exceed 50 per centum of the development cost of the project to serve the area which the association determines can be feasibly served by the facility and to adequately serve the reasonably foreseeable growth needs of the area.

(3) No grant shall be made under paragraph (2) of this subsection in connection with any facility unless the Secretary determines that the project (i) will serve a rural area which is not likely to decline in population below that for which the facility was designed, (ii) is designed and constructed so that adequate capacity will be or can be made available to serve the present population of the area to the extent feasible and to serve the reasonably foreseeable growth needs of the area, or (iii) is necessary for orderly community development consistent with a comprehensive community water or sewer development plant of the rural area and not inconsistent with any planned development under State, county, or municipal plans approved as official plans by competent authority for the area in which the rural community is located and the Secretary shall establish regulations requiring the submission of all applications for financial assistance under this chapter to the county or municipal government in which the proposed project is to be located for review and comment by such agency within a designated period of time. Until October 1, 1971, the Secretary may make grants prior to the completion of the comprehensive plan, if the preparation of such plan has been undertaken for the area.

(4) (A) The term "development cost" means the cost of construction of a facility and the land, easements, and rights-of-way, and water rights necessary to the construction and operation of the facility.

(B) The term "project" shall include facilities providing central service or facilities serving individual properties, or both.

(5) No loan or grant shall be made under this subsection which would cause the unpaid principal indebtedness of any association under this chapter and under the Act of August 28, 1937, as amended, together with the amount of any assistance in the form of a grant to exceed $4,000,000 at any one time.

(6) The Secretary may make grants aggregating not to exceed $15,000,000 in any fiscal year to public bodies or such other agencies as the Secretary may determine having authority to prepare official comprehensive plans for the development of water or sewer systems in rural areas which do not have funds available for immediate undertaking of the preparation of such plan.

(7) Rural areas, for the purposes of water and waste disposal projects shall not include any area in any city or town which has a population in excess of 5,500 inhabitants.

(8) In each instance where the Secretary receives two or more applications for financial assistance for

projects that would serve substantially the same group of residents within a single rural area, and one such application is submitted by a city, town, county or other unit of general local government, he shall, in the absence of substantial reasons to the contrary, provide such assistance to such city, town, county or other unit of general local government.

(9) No Federal funds shall be authorized for use unless it be certified by the appropriate State water pollution control agency that the water supply system authorized will not result in pollution of waters of the State in excess of standards established by that agency.

(10) In the case of sewers and waste disposal system, no Federal funds shall be advanced hereunder unless the appropriate State water pollution control agency shall certify that the effluent therefrom shall conform with appropriate State and Federal water pollution control standards when and where established.

(b) Curtailment or limitation of service prohibited. The service provided or made available through any such association shall not be curtailed or limited by inclusion of the area served by such association within the boundaries of any municipal corporation or other public body, or by the granting of any private franchise for similar service within such area during the term of such loan; nor shall the happening of any such event be the basis of requir ing such association to secure any franchise, license, or permit as a condition to continuing to serve the area served by the association at the time of the occurrence of such event.

(c) Repealed. Pub. L. 91-606, title III, § 302(2), Dec. 31, 1970, 84 Stat. 1759.

(d) Carryover of unused authorizations for appropri ations.

Any amounts appropriated under this section shall remain available until expended, and any amounts authorized for any fiscal year under this section but not appropriated may be appropriated for any succeeding fiscal year. (Pub. L. 87-128, title III, § 306. Aug. 8, 1961, 75 Stat. 308; Pub. L. 87-703, title IV § 401(2), Sept. 27, 1962, 76 Stat, 632; Pub. L. 89-240 § 1, Oct. 7, 1965, 79 Stat. 931; Pub. L. 90-488, §§ 3-5 Aug. 15, 1968, 82 Stat. 770; Pub. L. 91-524, title VIII, § 806 (a), Nov. 30, 1970, 84 Stat. 1383; Pub. L 91-606, title III, § 302(2), Dec. 31, 1970, 84 Stat 1759; Pub. L. 91-617, § 1(a), Dec. 31, 1970, 84 Stat 1855.)

REFERENCES IN TEXT

This chapter, referred to in subsec. (a) of this section was in the original "this Act", meaning the Consolidated Farmers Home Administration Act of 1961. For classif cation of this Act, see Snort Title note set out under section 1921 of this title.

The Act of August 28, 1937, as amended, referred to subsec. (a) (5), refers to act Aug. 28, 1937, ch. 870, 50 St 869, as amended, which was formerly classified to sections 590r to 590x-4 of Title 16. Conservation, was repealed t section 341(a) of Pub. L. 87-128, and is now covered this chapter.

AMENDMENTS

1970-Subsec. (a) (1). Pub. L. 91–617 required inclus in gross income of the interest or other income pad an insured holder when any loan made for a purpose specified in subsec. (a) (1) is sold out of the Agricult Credit Insurance Fund as an insured loan.

Subsec. (c). Pub. L. 91-606 repealed subsec. (c), added by Pub. L. 89-769, § 6(b), Nov. 6, 1966, 80 Stat. 1318, which related to loans to associations in areas suffering major disasters. See section 4401 et seq. of Title 42, The Public Health and Welfare.

Subsec, (d). Pub. L. 91-524 added subsec. (d).

1968 Subsec. (a). Pub. L. 90-488 substituted "$100,000,000" for "$50,000,000" in par. (2), "October 1, 1971" for "October 1, 1968" in par. (3), and "$15,000,000" for "$5,000,000" in par. (6), respectively.

1966 Subsec. (c). Pub. L. 89-769 added subsec. (c). 1965 Subsec. (a). Pub. L. 89-246 designated existing provisions as par. (1), struck out "including the development of recreational facilities" following "shifts in land use", substituted "drainage or waste disposal facilities" for "drainage facilities", inserted "and recreational developments", deleted provisions which prohibited loans which would cause an association's unpaid principal indebtedness to exceed $500,000, in the case of direct loans and $1,000,000 in the case of insured loans at any one time, and added pars. (2)-(10).

1962-Subsec. (a). Pub. L. 87-703 authorized loans to be made or insured to provide for the application or establishment of shifts in land use including the development of recreational facilities.

EFFECTIVE DATE OF 1970 AMENDMENT

Section 1(b) of Pub. L. 91-617 provided that: "The amendment made by subsection (a) [to subsec. (a) (1) of this section] shall apply to the insured loans sold out of the Agricultural Credit Insurance Fund after the date of the enactment of this Act [Dec. 31, 1970]."

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-769 applicable with respect to any major disaster occurring after Oct. 3, 1964, see section 14 of Pub. L. 89-769, set out as a note under section 1855aa of Title 42, The Public Health and Welfare.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1927, 1983 of this title and in title 42 sections 1855dd, 3914.

(g) Allotment histories.

(h) Utilization of local, county, and State committees.

(1) Transfer of funds. (1) Conservation of open spaces, natural beauty, and recreational resources, and prevention of pollution.

(k) Limitation on payments during any calendar year.

(1) Use of facilities of Commodity Credit Corporation.

(m) Payment to successor upon death, incompetence, or disappearance of producer entitled to payment. (n) Sharing of compensation or payments with tenants and sharecroppers.

(0) Effect of diversion on commodity programs.

(p) Advisory Board on Wildlife; membership.

(q) Rules and regulations.

§ 1838. Conversion of cropland into vegetative cover, water storage, wildlife and conservation uses; contracts with farmers.

(a) Authority for calendar years 1965 through 1970; term of agreements.

Notwithstanding any other provision of law, for the purpose of reducing the costs of farm programs, assisting farmers in turning their land to nonagricultural uses, promoting the development and conservation of the Nation's soil, water, forest, wildlife, and recreational resources, establishing, protecting, and conserving open spaces and natural beauty, the Secretary of Agriculture is authorized to formulate and carry out a program during the calendar years

1965 through 1970 under which agreements would be entered into with producers as hereinafter provided for periods of not less than five nor more than ten years. No agreement shall be entered into under this section concerning land with respect to which the ownership has changed in the three-year period preceding the first year of the agreement period unless the new ownership was acquired by will or succession as a result of the death of the previous owner, or unless the new ownership was acquired prior to January 1, 1965, under other circumstances which the Secretary determines, and specifies by regulation, will give adequate assurance that such land was not acquired for the purpose of placing it in the program: Provided, That this provision shall not be construed to prohibit the continuation of an agreement by a new owner after an agreement has once been entered into under this section: Provided further, That the Secretary shall not require a person who has operated the land to be covered by an agreement under this section for as long as three years preceding the date of the agreement and who controls the land for the agreement period to own the land as a condition of eligibility for entering into the agreement. The foregoing provision shall not prevent a producer from placing a farm in the program if the farm was acquired by the producer to replace an eligible farm from which he was displaced because of its acquisition by any Federal, State, or other agency having the right of eminent domain.

(b) Terms of agreement; specifically designated acreage; land use.

The producer shall agree (1) to carry out on a specifically designated acreage of land on the farm regularly used in the production of crops (including crops, such as tame hay, alfalfa, and clovers, which do not require annual tillage and which have been planted within five years preceding the date of the agreement), hereinafter called "designated acreage", and maintain for the agreement period practices or uses which will conserve soil, water, or forest resources, or establish or protect or con

serve open spaces, natural beauty, wildlife or recreational resources, or prevent air or water pollution, in such manner as the Secretary may prescribe (priority being given to the extent practicable to practices or uses which are most likely to result in permanent retirement to noncrop uses); (2) to maintain in conserving crops or uses or allow to remain idle throughout the agreement period the acreage normally devoted to such crops or uses; (3) not to harvest any crop from or graze the designated acreage during the agreement period, unless the Secretary, after certification by the Governor of the State in which such acreage is situated of the need for grazing or harvesting of such acreage, determines that it is necessary to permit grazing or harvesting in order to alleviate damage, hardship, or suffering caused by severe drought, flood, or other natural disaster, and consents to such grazing or harvesting subject to an appropriate reduction in the rate of payment; and (4) to such additional terms and conditions as the Secretary determines are desirable to effectuate the purposes of the program, including such measures as the Secretary may deem appropriate to keep the designated acreage free from erosion, insects, weeds, and rodents. Agreements entered into under which 1966 is the first year of the agreement period (A) shall require the producer to divert from production all of one or more crops designated by the Secretary; and (B) shall not provide for diversion from the production of upland cotton in any county in which the county committee by resolution determines, and requests of the Secretary, that there should not be such diversion in 1966.

(c) Federal costs; annual adjustment payment.

Under such agreements the Secretary shall (1) bear such part of the average cost (including labor) for the county or area in which the farm is situated of establishing and maintaining authorized practices or uses on the designated acreage as the Secretary determines to be necessary to effectuate the purposes of the program, but not to exceed the average rate for comparable practices or uses under the agricultural conservation program, and (2) make an annual adjustment payment to the producer for the period of the agreement at such rate or rates as the Secretary determines to be fair and reasonable in consideration of the obligations undertaken by the producers. The rate or rates of annual adjustment payments as determined hereunder may be increased by an amount determined by the Secretary to be appropriate in relation to the benefit to the general public of the use of the designated acreage if the producer further agrees to permit, without other compensation, access to such acreage by the general public, during the agreement period, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations. The Secretary and the producer may agree that the annual adjustment payments for all years of the agreement period shall be made either upon approval of the agreement or in such installments as they may agree to be desirable: Provided, That for each year any annual adjustment payment is made in advance of performance, the annual adjustment payment shall be

reduced by 5 per centum. The Secretary may provide for adjusting any payment on account of failure to comply with the terms and conditions of the program.

(d) Advertising and bid procedures.

The Secretary shall, unless he determines that such action will be inconsistent with the effective administration of the program, use an advertising and bid procedure in determining the lands in any area to be covered by agreements. The total acreage placed under contract in any county or local community shall be limited to a percentage of the total eligible acreage in such county or local community which the Secretary determines would not adversely affect the economy of the county or local community. In determining such percentage the Secretary shall give appropriate consideration to the productivity of the acreage being retired as compared to the average productivity of eligible acreage in the county or local community.

(e) Annual adjustment payment; limitation.

The annual adjustment payment shall not exceed 40 per centum of the estimated value, as determined by the Secretary, on the basis of prices in effect at the time the agreement is entered into, of the crops or types of crops which might otherwise be grown The estimated value may be established by the Secretary on a county, area, or individual farm basis as he deems appropriate.

(f) Termination or modification of agreements.

The Secretary may terminate any agreement with a producer by mutual agreement with the producer if the Secretary determines that such termination would be in the public interest, and may agree to such modification of agreements as he may determine to be desirable to carry out the purposes of the program or facilitate its administration. (g) Allotment histories.

Notwithstanding any other provision of law, the Secretary of Agriculture may, to the extent he deems it desirable, provide by appropriate regulations for preservation of cropland, crop acreage, and allotment history applicable to acreage diverted from the production of crops in order to establish or maintain vegetative cover or other approved practices for the purpose of any Federal program under which such history is used as a basis for an allotment or other limitation or for participation in such program.

(h) Utilization of local, county, and State committees.

In carrying out the program, the Secretary shall utilize the services of local, county, and State committees established under section 590h of Title 16 (i) Transfer of funds.

For the purpose of obtaining an increase in the permanent retirement of cropland to noncrop uses the Secretary may, notwithstanding any other provision of law, transfer funds available for carrying out the program to any other Federal agency or to States or local government agencies for use in scquiring cropland for the preservation of open spaces natural beauty, the development of wildlife or rec

reational facilities, or the prevention of air or water pollution under terms and conditions consistent with and at costs not greater than those under agreements entered into with producers, provided the Secretary determines that the purposes of the program will be accomplished by such action.

(j) Conservation of open spaces, natural beauty, and recreational resources, and prevention of pollution.

The Secretary also is authorized to share the cost with State and local governmental agencies in the establishment of practices or uses which will establish, protect, and conserve open spaces, natural beauty, wildlife or recreational resources, or prevent air or water pollution under terms and conditions and at costs consistent with those under agreements entered into with producers, provided the Secretary determines that the purposes of the program will be accomplished by such action.

(k) Limitation on payments during any calendar year. In carrying out the program, the Secretary shall not during any of the fiscal years ending June 30. 1966 through June 30, 1969 or during the period June 30, 1969 through December 31, 1970, enter into agreements with producers which would require payments to producers in any calendar year under such agreements in excess of $225,000,000 plus any amount by which agreements entered into in prior fiscal years require payments in amounts less than authorized for such prior fiscal years. For purposes of applying this limitation, the annual adjustment payment shall be chargeable to the year in which performance is rendered regardless of the year in which it is made.

(1) Use of facilities of Commodity Credit Corporation. The Secretary is authorized to utilize the facilities, services, authorities, and funds of the Commodity Credit Corporation in discharging his functions and responsibilities under this program, including payment of costs of administration: Provided, That after December 31, 1966, the Commodity Credit Corporation shall not make any expenditures for carrying out the purposes of this subchapter unless the Corporation has received funds to cover such expenditures from appropriations made to carry out the purposes of this subchapter. There are hereby authorized to be appropriated such sums as may be necessary to carry out the program, including such amounts as may be required to make payments to the Corporation for its actual costs incurred or to be incurred under this program.

(m) Payment to successor upon death, incompetence,

or disappearance of producer entitled to payment. In case any producer who is entitled to any payment or compensation dies, becomes incompetent, or disappears before receiving such payment or compensation, or is succeeded by another who renders

or completes the required performance, the payment or compensation shall, without regard to any other provisions of law, be made as the Secretary may determine to be fair and reasonable in all the circumstances and so provide by regulations.

(n) Sharing of compensation or payments with tenants and sharecroppers.

The Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers, including provision for sharing, on a fair and equitable basis, in payments or compensation under this program.

(0) Effect of diversion on commodity programs.

The acreage on any farm which is diverted from the production of any commodity pursuant to an agreement hereafter entered into under this subchapter shall be deemed to be acreage diverted from that commodity for the purposes of any commodity program under which diversion is required as a con. dition of eligibility for price support.

(p) Advisory Board on Wildlife; membership.

The Secretary may, without regard to the civil service laws, appoint an Advisory Board on Wildlife to advise and consult on matters relating to his functions under this subchapter as he deems appropriate. The Board shall consist of twelve persons chosen from members of wildlife organizations, farm organizations, State game and fish agencies, and representatives of the general public. Members of such Advisory Board who are not regular full-time employees of the United States shall not be entitled to any compensation or expenses.

(q) Rules and regulations.

The Secretary shall prescribe such regulations as he determines necessary to carry out the provisions of this subchapter. (Pub. L. 89-321, title VI, § 602, Nov. 3, 1965, 79 Stat. 1206; Pub. L. 90-210, Dec. 18, 1967, 81 Stat. 657; Pub. L. 90–559, § 1(1), (7), Oct. 11, 1968, 82 Stat. 996.)

REFERENCES IN TEXT

The civil service laws, referred to in subsec. (p), are classified generally to Title 5, Government Organization and Employees.

CODIFICATION

The last sentence of section 602 (g) of Pub. L. 89-321 repealed section 590p (b) (3), (4), and (e) (6) of Title 16, Conservation, and was omitted from subsec. (g) of this section.

AMENDMENTS

1968 Subsec. (a). Pub. L. 90-559, § 1(1), provided for a one year extension through 1970.

Subsec. (k). Pub. L. 90-559, § 1(7), substituted "June 30, 1969" for "June 30, 1968" in two instances and "December 31, 1970" for "December 31, 1969".

1967-Subsec. (a). Pub. L. 90-210 permitted a farm to be placed in the cropland adjustment program without regard to the length of past ownership if that farm was acquired in replacement of an eligible farm which was taken by any Federal, State, or other agency by means of eminent domain proceedings.

Sec.

3101.

3102.

Congressional declaration of purpose.
Grants for basic water and sewer facilities.

(a) Authority to make grants for specific
projects.

(b) Maximum amount of grants.

(c) Project requirements; need for facilities; growth needs of area; coordination of area-wide development.

(d) Job opportunities for unemployed or underemployed persons.

3103. Grants for neighborhood facilities.

(a) Authority to make grants for specific projects; qualifications of approved nonprofit

organizations.

(b) Maximum amount of grants.

(c) Project requirements; need for facilities; comprehensive planning; accessibility to low- or moderate-income residents.

(d) Conversion of facility to other uses. (e) Priority of projects designed primarily to benefit low-income families or further objectives of community action programs. 3104. Advance acquisition of land for public purposes. (a) Authority to make grants.

(b) Maximum amount of grants.

(c) Utilization of land for public purpose within
reasonable period of time.

(d) Diversion of land; repayment; interim use.
(e) Eligibility for other Federal loans or grant
programs.

Powers and duties of Secretary.

3105.

§ 3101. Congressional declaration of purpose.

The purpose of this chapter is to assist and encourage the communities of the Nation fully to meet the needs of their citizens by making it possible, with Federal grant assistance, for their governmental bodies (1) to construct adequate basic water and sewer facilities needed to promote the efficient and orderly growth and development of our communities, (2) to construct neighborhood facilities needed to enable them to carry on programs of necessary social services, and (3) to acquire, in a planned and orderly fashion, land to be utilized in the future for public purposes. (Pub. L. 89-117, title VII, § 701, Aug. 10, 1965, 79 Stat. 489; Pub. L. 90-448, title VI, § 603 (a), Aug. 1, 1968, 82 Stat. 533.)

AMENDMENTS

1968-Pub. L. 90-448, substituted "in the future for public purposes" for "in connection with the future construction of public works and facilities in cl. (3). § 3102. Grants for basic water and sewer facilities. (a) Authority to make grants for specific projects.

The Secretary of Housing and Urban Development (hereinafter in this chapter referred to as the "Secretary") is authorized to make grants to local public bodies and agencies to finance specific projects for basic public water facilities (including works for the storage, treatment, purification, and distribution of water), and for basic public sewer facilities (other than "treatment works" as defined in the Federal Water Pollution Control Act): Provided, That no grant shall be made under this

section for any sewer facilities unless the Administrator of the Environmental Protection Agency certifies to the Secretary that any waste material carried by such facilities will be adequately treated before it is discharged into any public waterway so as to meet applicable Federal, State, interstate, or local water quality standards.

(b) Maximum amount of grants.

The amount of any grant made under the authority of this section shall not exceed 50 per centum of the development cost of the project: Provided, That in the case of a community having a population of less than ten thousand, according to the most recent decennial census, which is situated within a metropolitan area, the Secretary may increase the amount of a grant for a basic public water or sewer facility assisted under this section to not more than 90 per centum of the development cost of such facility, if the community is unable to finance the construction of such facility without the increased grant authorized under this subsection, and if in such community (1) there does not exist a public or other adequate water or sewer facility which serves a substantial portion of the inhabitants of the community, and (2) the rate of unemployment is, and has been continuously for the preceding calendar year, 100 per centum above the national average: And provided further, That the limitations and restrictions contained in subsection (c) of this section shall not be applicable to any community applying for an increased grant under this subsection. (c) Project requirements; need for facilities; growth needs of area; coordination of areawide development.

No grant shall be made under this section in connection with any project unless the Secretary determines that the project is necessary to provide adequate water or sewer facilities for, and will contribute to the improvement of the health or living standards of, the people in the community to be served, and that the project is (1) designed so that an adequate capacity will be available to serve the reasonably foreseeable growth needs of the ares. (2) consistent with a program meeting criteria established by the Secretary, for a unified or officially coordinated area wide water or sewer facilities system as part of the comprehensively planned development of the area, except that prior to October 1, 1971, grants may, in the discretion of the Secretary, be made under this section wher such a program for an area wide water and sewer facilities system is under active preparation, although not yet completed, if the facility or facilities for which assistance is sought can reasonably be expected to be required as a part of such program. and there is urgent need for the facility or facilities. and (3) necessary to orderly community development.