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Federal Register / Vol. 86, No. 242 / Tuesday, December 21, 2021 / Rules and Regulations contiguous area of urbanized census blocks that is not more than two census blocks wide. Applicants from such an area should work with their Rural Development State Office to request a determination of whether their project is located in a rural area under this provision.
3 For the Commonwealth of Puerto Rico, the island is considered rural and eligible except for the San Juan Census Designated Place CDP and any other CDP with greater than 50,000
inhabitants. Areas within CDPs with greater than 50,000 inhabitants, other than the San Juan CDP, may be determined to be Rural if they are not urban in character.
4 For the State of Hawaii, all areas within the State are considered rural and eligible except for the Honolulu CDP within the County of Honolulu and any other CDP with greater than 50,000
inhabitants. Areas within CDPs with greater than 50,000 inhabitants, other than the Honolulu CDP, may be determined to be Rural if they are not urban in character.
5 For the purpose of defining a rural area in the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands, the Agency shall determine what constitutes rural and rural area based on available population data.
State. Any of the 50 States of the United States, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands.
Technical assistance. A function performed for the benefit of an ultimate recipient, or proposed ultimate recipient, that is a problem-solving activity that assists the ultimate recipient in selecting, initiating, or completing a project. The Agency will determine whether a specific activity qualifies as technical assistance.
Ultimate recipient. An entity or individual that receives a loan from an intermediarys IRP revolving loan fund.
Underrepresented group. U.S. citizens with identifiable common characteristics, including, but not limited to, racial and ethnic minorities, disabled and/or gender that have not received IRP assistance or have received a lower percentage of total IRP dollars than the percentage they represent of the general population.
Value-added agricultural product.
Any agricultural commodity that meets the requirements specified here. The agricultural commodity must meet one
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of the following value-added methodologies:
1 Has undergone a change in physical state;
2 Is a source of farm or ranch-based renewable energy; or 3 Is aggregated and marketed as a locally produced agricultural food product.
Work plan. A narrative provided by the intermediary that demonstrates the feasibility of the intermediary and its lending program to meet the objectives of the IRP program, including a set of goals, strategies, anticipated outcomes, and well-developed targeting criteria for assisting eligible ultimate recipients.
4274.303

Review or appeal rights.

An intermediary may have appeal or review rights for adverse Agency decisions made under this part. Agency decisions that are adverse to the individual participant are appealable, while matters of general applicability are not subject to appeal; however, such decisions are reviewable for appealability by the National Appeals Division NAD. All appeals will be conducted by NAD and will be handled in accordance with 7 CFR part 11.
4274.304

Exception authority.

The Administrator may, on a case-bycase basis, grant an exception to any requirement or provision of this subpart provided that such an exception is in the best financial interests of the Federal government. Exercise of this authority cannot be in conflict with applicable law.
4274.305

Other regulatory requirements.

a Intergovernmental consultation.
The approval of an Agency IRP loan to an intermediary is subject to intergovernmental consultation in accordance with Executive Order 12372.
For ultimate recipients located in States where the State has elected to review the program under the intergovernmental review process, in accordance with Executive Order 12372, the intermediary and ultimate recipient must submit a notification in the form of a project description to the State single point of contact. The intermediary must include any comments from the State with the intermediarys request to use the Agency IRP loan funds for the ultimate recipient. Prior to the Agencys decision on the request, the ultimate recipient must demonstrate compliance with the requirements of intergovernmental consultation. These requirements are set forth in 2 CFR part 415, subpart C, General Program Administrative Regulations.

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b Environmental requirements. The requirements of 7 CFR part 1970 apply to this subpart. Intermediaries and ultimate recipients must consider the potential environmental impacts of their projects at the earliest planning stages and develop plans in order to minimize the potential to adversely impact the environment. Both the intermediaries and the ultimate recipients must cooperate and furnish such information and assistance as the Agency needs to make any of its environmental determinations.
1 All IRP loans between the Agency and the intermediary are considered categorical exclusions absent the existence of extraordinary circumstances in accordance with 7 CFR
part 1970. All intermediaries must execute an Exhibit H, Multi-tier Action Environmental Compliance Agreement, to RD Instruction 1970A
as part of their IRP application submitted to the Agency. The intermediary must sign a certification that they have National Environmental Policy Act NEPA staff capable of undertaking an environmental review that meets Agency standards. For intermediaries that dont have capable staff, the Agency will deliver sufficient training to intermediaries on the environmental process and how to determine whether an ultimate recipient project is a categorical exclusion or requires an environmental assessment and review.
2 For each proposed loan from an intermediary to an ultimate recipient using Agency IRP loan funds, an environmental review will be completed in accordance with 7 CFR 1970.55. For projects that do not qualify for a categorical exclusion, or which may be subject to an extraordinary circumstance under 7 CFR 1970.52, the intermediary will refer the project to the Agency for review under 7 CFR part 1970, subpart C. The intermediary retains responsibility for providing sufficient information for the Agency to make an environmental determination, though Agency staff may also opt to complete the environmental review with information provided by either the intermediary or ultimate recipient.
3 The Agency will prepare an environmental impact statement for any application for a loan from Agency IRP
loan funds determined to have a significant adverse effect on the quality of the human environment.
c Equal opportunity and nondiscrimination requirements. In accordance with Title V of Public Law 93495, the Equal Credit Opportunity Act, and section 504 of the Rehabilitation Act for Federally
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