WATER AND WASTE FACILITY LOANS AND GRANTS.

SEC. 741. WATER AND WASTE FACILITY LOANS AND GRANTS. (a) In General.— Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) is amended— 110 STAT. 1123 (1) in the first sentence of paragraph (2), by striking “$500,000,000” and inserting “$590,000,000”; (2) by striking paragraph (7) and inserting the following: “(7) Definition of rural and rural areas.— For the purpose of water and waste disposal grants and direct and guaranteed loans provided under paragraphs (1) and (2), the terms ‘rural’ and ‘rural area’ mean a city, town, or unincorporated area that has a population of no more than 10,000 inhabitants.”; (3) by striking paragraphs (9), (10), and (11) and inserting the following: “(9) Conformity with state drinking water standards.— No Federal funds shall be made available under this section for a water system unless the Secretary determines that the water system will make significant progress toward meeting the standards established under title XIV of the Public Health Service Act (commonly known as the ‘Safe Drinking Water Act’) (42 U.S.C. 300f et seq.). “(10) Conformity with federal and state water pollution control standards.— No Federal funds shall be made available under this section for a water treatment discharge or waste disposal system unless the Secretary determines that the effluent from the system conforms with applicable Federal and State water pollution control standards. “(11) Rural business opportunity grants.— “(A) In general.— The Secretary may make grants, not to exceed $1,500,000 annually, to public bodies, private nonprofit community development corporations or entities, or such other agencies as the Secretary may select to enable the recipients— “(i) to identify and analyze business opportunities, including opportunities in export markets, that will use local rural economic and human resources; “(ii) to identify, train, and provide technical assistance to existing or prospective rural entrepreneurs and managers; “(iii) to establish business support centers and otherwise assist in the creation of new rural businesses, the development of methods of financing local businesses, and the enhancement of the capacity of local individuals and entities to engage in sound economic activities; “(iv) to conduct regional, community, and local economic development planning and coordination, and leadership development; and “(v) to establish centers for training, technology, and trade that will provide training to rural businesses in the utilization of interactive communications technologies to develop international trade opportunities and markets. “(B) Criteria.— In awarding the grants, the Secretary shall consider, among other criteria to be established by the Secretary— “(i) the extent to which the applicant provides development services in the rural service area of the applicant; and 110 STAT. 1124 “(ii) the capability of the applicant to accomplish the activities described in the relevant clauses of subparagraph (A). “(C) Coordination.— The Secretary shall ensure, to the maximum extent practicable, that assistance provided under this paragraph is coordinated with and delivered in cooperation with similar services or assistance provided to rural residents by the Cooperative State Research, Education, and Extension Service or other Federal agencies. “(D) Authorization of appropriations.— There are authorized to be appropriated to carry out this paragraph $7,500,000 for each of fiscal years 1996 through 2002.”; (4) by striking paragraphs (14) and (15); (5) by redesignating paragraphs (16) through (20) as paragraphs ( 14) through (18), respectively; and (6) in paragraph (14) (as so redesignated)— (A) by striking “(14)(A) The” and inserting the following: “(14) Rural water and wastewater technical assistance and training programs.— “(A) In general.— The”; (B) in subparagraph (A)— (i) by striking “(i) identify” and inserting the following: “(i) identify”; (ii) by striking “(ii) prepare” and inserting the following: “(ii) prepare”; and (iii) by striking “(iii) improve” and inserting the following: “(iii) improve”; (C) in subparagraph (B), by striking “(B) In” and inserting the following: “(B) Selection priority.— In”; and (D) in subparagraph (C)— (i) by striking “(C) Not” and inserting the following: “(C) Funding.— Not”; and (ii) by striking “2 per centum of any funds provided in appropriations Acts” and inserting “3 percent of any funds appropriated”. (b) Conforming Amendment.— The second sentence of section 309A(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a(a)) (as amended by section 661(c)(1) is amended by striking “, 306(a)(14),”.