,,ii  #aaeth ,,congress  #b;d ,session  
,s4 #bifi  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #bd1 #bjah
 ,ms4 ,baldwin introduced the following 
bill2 which was read twice and referred 
to the ,committee on ,agriculture1      
,nutrition1 and ,forestry  ,a ,,bill    
,to amend the ,consolidated ,farm and   
,rural ,development ,act to improve     
water or waste disposal grants or direct
 or guaranteed loans1 and for other     
purposes4  #a4 ,short title  ,this ,act 
may be cited as the ,rural ,water       
,infrastructure ,improvement ,act of    
#bjah4  #b4 ,water or waste disposal    
grants or direct or guaranteed loans    
7a7 ,grants ,section #cjf7;a77#b77;,b7  
of the ,consolidated ,farm and ,rural   
,development ,act 7#g ,u4,s4,c4         
#aibf7;a77#b77;,b77 is amended--  7#a7  
in clause 7iii71 by striking #ajj1jjj   
each place it appears and inserting     
#bjj1jjj2 and  7#b7 in clause 7vii71 by 
striking #bjah and inserting #bjbc4  7b7
 ,assistance for unserved and           

underserved rural communities ,section  
#cjf7;a7 of the ,consolidated ,farm and 
,rural ,development ,act 7#g ,u4,s4,c4  
#aibf7;a77 is amended by adding at the  
end the following3  7#bg7 ,assistance   
for unserved and underserved rural      
communities  7,a7 ,definition of        
unserved or underserved rural community 
,in this paragraph1 the term unserved or
 underserved rural community means a    
rural area that1 as determined by the   
,secretary1 lacks the technical1        
financial1 organizational1 and          
managerial capacity to adequately       
operate1 maintain1 and effectively serve
 the population of the rural area4  7,b7
 ,water and waste disposal direct loans 
,the ,secretary may make water and waste
 disposal direct loans under paragraph  
7#a7 to eligible entities described in  
subparagraph 7,c7 at the interest rate  
applicable to areas where the median    
family income is below the poverty line1
 as determined under section            
#cjg7;a77#c77;,a71 for projects for     

unserved or underserved rural           
communities4  7,c7 ,eligible entities   
,to be eligible to receive a direct loan
 under subparagraph 7,b71 an applicant  
shall be a contiguous or local utility  
outside of the unserved or underserved  
rural community to be served by the     
project funded by the direct loan that1 
as determined by the ,secretary--  7i7  
has a demonstrated experience and       
capacity in delivering water programs or
 wastewater programs under this ,act2   
7ii7 demonstrates the capacity to       
provide service to the applicable       
unserved or underserved rural community2
  7iii7 demonstrates that-- 7,i7 the    
project funded by the direct loan is    
solely for the purpose of serving the   
applicable unserved or underserved rural
 community2 and  7,,ii7 the maximum     
financial benefit of the assistance     
under this paragraph will be conferred  
to that unserved or underserved rural   
community2 and  7iv7 demonstrates that  
the applicable unserved or underserved  

rural community-- 7,i7 has willingly    
entered into a formal agreement with the
 applicant for service by the applicant2
 and  7,,ii7 entered into the agreement 
described in subclause 7,i7 with the    
understanding that the unserved or      
underserved rural community is eligible 
for water and waste disposal direct     
loans under paragraph 7#a7 independently
 of any direct loan under this          
paragraph4  4  7c7 ,direct and          
guaranteed loans ,section               
#cdc7;a77#ac77;,b7 of the ,consolidated 
,farm and ,rural ,development ,act 7#g  
,u4,s4,c4 #aiia7;a77#ac77;,b77 is       
amended--  7#a7 by striking ,for the    
purpose and inserting the following3    
7i7 ,grants and direct loans ,for the   
purpose  2  7#b7 in clause 7i7 7as so   
designated7-- 7,a7 by striking and      
guaranteed2 and  7,b7 by striking 7#bd7 
and inserting 7#bg72 and  7#c7 by adding
 at the end the following3  7ii7        
,guaranteed loans ,for the purpose of   
water and waste disposal guaranteed     

loans provided under paragraphs 7#a7 and
 7#bd7 of section #cjf7;a71 the terms   
rural and rural area mean a city1 town1 
or unincorporated area that has a       
population of not more than #ej1jjj     
inhabitants4  4  #c4 ,funding of pending
 rural development loan and grant       
applications  7a7 ,in general ,the      
,secretary shall use funds made         
available under subsection 7b7 to       
provide funds for applications that are 
pending on the date of enactment of this
 ,act in accordance with the terms and  
conditions of section #fjbi of the      
,food1 ,conservation1 and ,energy ,act  
of #bjjh 7,public ,law #aaj-bdf2 #abb   
,stat4 #aiee74  7b7 ,funding            
,notwithstanding any other provision of 
law1 beginning in fiscal year #bjai1 of 
the funds of the ,commodity ,credit     
,corporation1 the ,secretary shall use  
to carry out this section #aej1jjj1jjj1 
to remain available until expended4