Prohibition on use of loan or grant for certain purposes

Section 363 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006e) is amended to read as follows: 363. Prohibition on use of loan or grant for certain purposes (a) In general The Secretary shall not approve any loan or grant under this title to drain, dredge, fill, or level, or otherwise manipulate a wetland (as defined in section 1201(a)(16) of the Food Security Act of 1985 (16 U.S.C. 3801(a)(16))), or to engage in any activity that results in impairing or reducing the flow, circulation, or reach of water, except in the case of activity related to the maintenance of previously converted wetlands, or in the case of such activity that commenced before November 29, 1990. (b) Exclusions (1) Utilities lines This section shall not apply to a loan made or guaranteed under this title for a utility line. (2) Permitted activities and projects This section shall not apply to a rural development loan made or guaranteed under section 306 or 306C of this Act for an activity or project for which the applicant or borrower has obtained or is required to obtain a permit from the Secretary of the Army, acting through the Chief of Engineers, under section 10 of the Act of March 3, 1899 (33 U.S.C. 403; 30 Stat. 1151, chapter 425), or section 404 of the Federal Water Pollution Control Act (33 U.S.C. 1344)..