SA 3730. Mr. MENENDEZ submitted an amendment intended to be proposed to amendment SA 3500 proposed by Mr. HARKIN (for himself, Mr. CHAMBLISS, Mr. BAUCUS, and Mr. GRASSLEY) to the bill H.R. 2419, to provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes; which was ordered to lie on the table; as follows:

Beginning on page 775, strike line 22 and all that follows through page 776, line 19 and insert the following:
``(B) WATER AND WASTE DISPOSAL GRANTS AND DIRECT AND GUARANTEED LOANS.--For the purpose of water and waste disposal grants and direct and guaranteed loans provided under paragraphs (1), (2), and (24) of section 306(a), the terms `rural' and `rural area' mean a city, town, or unincorporated area that has a population of no more than 10,000 inhabitants.
``(C) COMMUNITY FACILITY LOANS AND GRANTS.--For the purpose of community facility direct and guaranteed loans and grants under paragraphs (1), (19), (20), (21), and (24) of section 306(a), the terms `rural' and `rural area' mean any area other than--
``(i) an area described in clause (i), (ii), or (iii) of subparagraph (A); and
``(ii) a city, town, or unincorporated area that has a population of greater than 20,000 inhabitants.
``(D) AREAS RURAL IN CHARACTER.--
``(i) IN GENERAL.--Notwithstanding any other provision of this paragraph, the Under Secretary for Rural Development may determine (pursuant to a petition by a local comunity or on the inititative of the Under Secretary) that an area described in clause (ii) or (iii) of subparagraph (A) is a rural area for the purposes of this paragraph, if the Under Secretary finds that the area is rural in character, as determined by the Under Secretary.
``(ii) ADMINISTRATION.--In carrying out clause (i), the Under Secretary for Rural Development--
``(I) shall not delegate the authority described in clause (i); but
``(II) shall consult with the applicable rural development State or regional director of the Department of Agriculture.
``(E) EXCLUSIONS.--Notwithstanding any other provision of this paragraph, in determining which census blocks are not in a rural area (as defined in this paragraph), the Secretary shall exclude any cluster of census blocks that would otherwise be considered not in a rural area only because the cluster is adjacent to not more than 2 census blocks that are otherwise considered not in a rural area under this paragraph.''.
(b) Annual Reports.--Not later than 1 year after the date of enactment of this Act and each year thereafter, the Secretary shall prepare and submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that--
(1) assesses the various definitions of the term ``rural'' and ``rural area''that are used with respect to programs administered by the Secretary;
(2) describes the effects that the variations in those definitions have on those programs;
(3) make recommendations for ways to better target funds provided through rural development programs;
(4) describes the effects the changes to the definitions of the terms ``rural'' and ``rural area'' in the Farm Security and Rural Investment Act of 2002 and this Act had on those programs and eligible areas; and
(5) determines what effects the changes had on the level of rural development funding and participation in those programs in each State.


(As printed in the Congressional Record for the Senate on Nov 15, 2007.)