Rural Community Environmental Assistance Act of 1992

Rural Community Environmental Assistance Act of 1992 - Amends the Federal Water Pollution Control Act to extend the authorization of appropriations for State water pollution control revolving funds through FY 2000.

Requires each State to establish a rural community environmental assistance account in such fund and to deposit at least 25 percent of the amount of the grant received for the establishment of the fund into such account.

Permits monies in such accounts to be used only for the construction of wastewater treatment works and public water systems in economically distressed rural communities, subject to certain loan and grant conditions. Requires States to determine the amount of interest to be charged on loans and to establish grant eligibility criteria.

Permits assistance to be provided only if: (1) the wastewater treatment works is consistent with planning requirements under the Federal Water Pollution Control Act; and (2) the public water system is approved by the State agency with primary enforcement authority under the Safe Drinking Water Act.

Requires States, in providing such assistance, to give priority to an economically distressed rural community in which: (1) there is a need for collector sewers and interceptors to improve access to wastewater treatment facilities; (2) residents rely on inadequate wastewater treatment facilities or drinking water systems that are determined by public health officials to be a hazard; or (3) residents rely on public water systems which do not meet requirements of the Safe Drinking Water Act.

Authorizes States to provide such assistance for eligible innovative projects only after conducting a cost-benefit analysis.

Requires States to submit plans for the intended uses of amounts in rural community environmental assistance accounts to the Administrator of the Environmental Protection Agency. Requires the Administrator to approve or disapprove such plans. Reserves one percent of funds in such accounts per fiscal year for planning activities. Permits the submission of a plan only if it has been approved by a State Rural Environmental Infrastructure Advisory Panel. Requires such panels to assist in plan preparation, review, and approval.

Sets forth accounting and auditing requirements. Withholds payments from States that fail to comply with requirements for rural community environmental assistance accounts.

Directs the Administrator to: (1) make grants to regional, State, and local agencies and not-for-profit organizations to assist economically distressed rural communities by providing technical assistance for the financing, operation, and maintenance of wastewater treatment works and public water systems; and (2) set aside a specified percentage of appropriations for such grants.