(a) Applicants may submit a preapplication for a planning grant upon designation of the area as an energy impacted area by the Governor. Rural Development will not take final action on the preapplication until the designation has been approved by the Secretary of Energy.

(b) Intergovernmental consultation should be carried out in accordance with 7 CFR part 3015 subpart V, “Intergovernmental Review of Department of Agriculture office.”

(c) Applicants shall file an original and one copy of SF 424.1, “Application for Federal Assistance (For Non-construction),” with the appropriate Rural Development office. A copy should also be filed with the Governor's office of the appropriate State. This form is available in all Rural Development offices. Local governments and councils of local governments shall submit preapplications to the appropriate Rural Development District Office. State governments shall apply to the appropriate Rural Development State Office. The Rural Development District Office will forward the preapplication with written comments within 10 working days to the appropriate State Office.

(d) All preapplications shall be accompanied by:

(1) Evidence of applicant's legal existence;

(2) Evidence of applicant's authority to prepare growth management and/or housing plans;

(3) A statement declaring that the planning neither duplicates nor conflicts with current activities;

(4) An original and one copy of Form RD 400-1, “Equal Opportunity Agreement,” and Form RD 400-4, “Assurance Agreement;” and

(5) A statement regarding other financial resources available to the area for this planning.

(e) District and State Rural Development Offices receiving preapplications will:

(1) Determine if the area to be covered by this project is an “approved designated area” as defined in this subpart;

(2) Comply with the environmental requirements set forth in this subpart; and

(3) Prepare a Historic Preservation Assessment in accordance with part 1901, subpart F, of this chapter.

(f) District Rural Development Offices receiving preapplications will also provide written comments reflecting planning grant selection criteria listed in this subpart.

(g) The Rural Development District Office will forward the original of the preapplication and accompanying documents including those described in paragraphs (e)(1) through (e)(3) and (f) of this section to the appropriate Rural Development State Director within 10 working days of receipt of the preapplication.

(h) Upon receipt of a preapplication, the Rural Development State Office will:

(1) Review and evaluate the preapplication and accompanying documents;

(2) Consult with the Governor of the appropriate State concerning the Governor's priorities and recommended funding level for the project; and

(3) Respond to the applicant within 30 days of the date of receipt of the preapplication using Form AD-622, “Notice of Preapplication Review Action,” indicating the action taken on the preapplication.

(i) Upon notification that the applicant is eligible to compete with other applicants for funding, a SF 424.1 may be submitted to the Rural Development State Office by all applicants.

(j) The Rural Development State Office will send evidence of the applicant's legal existence and authority to the USDA Regional Office of General Counsel (OGC) and request that a legal determination be made of the applicant's legal existence and authority to prepare growth management and/or housing plans in those cases where an application (SF 424.1) is requested.

(k) Upon receipt of an application on SF 424.1 by the Rural Development State Office, a docket will be prepared which will include the following:

(1) Form SF 424.1;

(2) Form AD-622;

(3) Any comments received in accordance with 7 CFR part 3015 subpart V, “Intergovernmental Review of Department of Agriculture Programs and Activities”. See RD Instruction 1970-I, ‘Intergovernmental Review,’ available in any Agency office or on the Agency's Web site.

(4) SF 424.1;

(5) Evidence of the applicant's legal existence and authority to prepare growth management and/or housing plans;

(6) OGC legal determinations;

(7) Grant agreement and scope of work;

(8) Form RD 1940-1, “Request for Obligation of Funds;”

(9) Form RD 400-1;

(10) Form RD 400-4;

(11) Historic Preservation Assessment;

(12) District, where appropriate, and State Rural Development written comments, assessments, and analysis of the proposed projects in accordance with the grant selection criteria; and

(13) All certificates and statements accompanying the pre-application and/or application.

[44 FR 35984, June 19, 1979, as amended at 48 FR 29121, June 24, 1983; 49 FR 3764, Jan. 30, 1984; 55 FR 13503, 13504, Apr. 11, 1990; 76 FR 80731, Dec. 27, 2011]