Revision to Electric Program Operating Policies and Procedures
| Published date | 11 March 2024 |
| Record Number | 2024-05076 |
| Citation | 89 FR 17271 |
| Court | Rural Utilities Service |
| Section | Rules and Regulations |
Federal Register, Volume 89 Issue 48 (Monday, March 11, 2024)
[Federal Register Volume 89, Number 48 (Monday, March 11, 2024)]
[Rules and Regulations]
[Pages 17271-17276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05076]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 89, No. 48 / Monday, March 11, 2024 / Rules
and Regulations
[[Page 17271]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Parts 1710, 1717, 1721, 1726, and 1730
[Docket No. RUS-23-ELECTRIC-0024]
RIN 0572-AC64
Revision to Electric Program Operating Policies and Procedures
AGENCY: Rural Utilities Service, U.S. Department of Agriculture (USDA).
ACTION: Final rule; request for comment.
-----------------------------------------------------------------------
SUMMARY: The Rural Utilities Service (RUS), a Rural Development (RD)
agency of the United States Department of Agriculture (USDA), is
issuing a final rule with request for comments. The intent of this
rulemaking is to provide more flexibility for the RUS Electric Program
borrowers to complete emergency repairs while maintaining the ability
to receive RUS financing, to delete unnecessary and outdated
requirements imposed on electric borrowers and applicants and provide
flexibility in selecting construction procurement methods that better
support applicant needs in awarding construction contracts. These
changes will reduce agency travel costs by extending the time between
the required review period for operations and maintenance reviews,
reduce the number of reviews for RUS Electric Program staff, and
increase customer satisfaction and service.
DATES: This final rule is effective June 10, 2024.
Comments must be submitted on or before May 10, 2024.
ADDRESSES: You may submit comments, identified by Docket Number (RUS-
23-ELECTRIC-0024) or the RIN # (0572-AC64).
Federal eRulemaking Portal: Follow instructions for
sending comments. In the ``Search Documents'' box, enter the Docket
Number (RUS-23-ELECTRIC-0024) or the RIN # (0572-AC64) provided in this
rule, and click the ``Search'' button. To submit a comment, choose the
``Comment'' button associated with the rule. Information on using
Regulations.gov, including instructions for accessing documents,
submitting comments, and viewing the docket after the close of the
comment period, is available under the ``FAQ'' link at the bottom of
the home page.
Other Information: Additional information about RD and its programs
is available on the internet at www.rd.usda.gov/programs-services.
Instructions: All submissions received must include the agency name
and docket number or Regulatory Information Number (RIN) for this
rulemaking. All comments received will be posted without change to
www.regulations.gov, including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Mark Bartholomew, Rural Utilities
Service Electric Program, Rural Development, United States Department
of Agriculture, 1400 Independence Avenue SW, STOP 1560, Washington, DC
20250; 704-544-4612 [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
Rural Development (RD) is a mission area within the U.S. Department
of Agriculture (USDA) comprising the Rural Utilities Service (RUS),
Rural Housing Service, and Rural Business-Cooperative Service. RD's
mission is to increase economic opportunity and improve the quality of
life for all rural Americans. RD meets its mission by providing loans,
loan guarantees, grants, and technical assistance through numerous
programs aimed at creating and improving housing, business, and
infrastructure throughout rural America. RUS loan, loan guarantee, and
grant programs act as a catalyst for economic and community
development. By financing improvements to rural electric, water and
waste, and telecommunications and broadband infrastructure, RUS also
plays a significant role in improving other measures of quality of life
in rural America, including public health and safety, environmental
protection, and cultural and historic preservation. The RUS Electric
Program provides funding to maintain, expand, upgrade, and modernize
America's rural electric infrastructure. The loans and loan guarantees
finance the construction or improvement of electric distribution,
transmission, and generation facilities in rural areas.
This rulemaking is part of the RUS Electric Program's continuing
effort to improve customer service for its borrowers and to create a
more efficient work process for its staff. This rulemaking will
continue to streamline RUS Electric Program procedures and revise
regulations, including removing unnecessary and outdated regulation
references, and simplifying policies and procedures to increase
flexibilities for borrowers and applicants.
The goal of these proposed changes is to provide more flexibility
for RUS Electric Program borrowers in (1) completing emergency repairs
while maintaining the ability to receive RUS financing, (2) selecting
construction procurement methods that better support their needs in
awarding construction contracts, and (3) delete unnecessary and
outdated requirements imposed on electric borrowers and applicants. RUS
expects that these actions will enhance RUS and customer efficiency,
thereby increasing customer satisfaction and service.
The proposed changes will improve customer experience and customer
service and allow RUS to better focus on feasibility and security
issues while lessening the burdens on the RUS Electric Program
borrowers. In addition, the changes will provide flexibility in making
business decisions, and reduces the number of reviews for RUS Electric
Program staff. These actions should not impose additional costs on
applicants or on electric borrowers as the proposed changes increase
flexibility for the Borrowers under existing requirements. These
changes will positively affect the RUS Electric borrower experience and
enhance RUS customer service by simplifying policies and procedures to
increase flexibilities for electric borrowers and applicants,
minimizing the regulatory impact of applying for loans made or
guaranteed by RUS, and facilitating lending for construction of rural
electric infrastructure.
II. Summary of Changes to Rule
7 CFR 1710.250 General
The construction work plans and related studies coverages are
modified
[[Page 17272]]
to include acts of sabotage, willful attacks, accidents, or acts of
force majeure as additional events that qualify for emergency repairs
before a construction work plan amendment is prepared by the borrower.
These modifications will provide borrowers increased flexibility and
options to proceed with emergency repair work without losing
eligibility for RUS financing.
7 CFR 1710.500 Initial Contact
This change is to correct a citation and is being made to ensure
applicants and borrowers are directed to the correct section in the
regulation.
7 CFR 1710.501 Loan Application Documents
This change amends the paragraph by removing paragraphs (a)(9) and
(13). These deletions will remove certifications that are no longer
required to be submitted by applicants. The certifications being
removed are part of the Financial Assistance General Certifications and
Representations in the System for Award Management that must be
completed when applying for an award and updated annually. The
remaining paragraphs in Sec. 1710.501(a) will be redesignated
accordingly as part of this amendment.
7 CFR 1717.156 Transitional Assistance Affecting Preexisting Loans
Transitional assistance affecting preexisting loans, is amended to
replace two incorrect citations in the paragraph. These corrections
will ensure borrowers know the correct regulation citation to review.
7 CFR 1721.1 Advances
Paragraphs (b) and (c) are modified to increase the limit for minor
projects and projects requiring a contract or work order number. This
change is being made to adjust for inflation over time and will provide
greater flexibility for borrowers to complete more projects under this
process which allows the borrowers to complete needed infrastructure
improvements in a timelier fashion.
7 CFR 1726.14 Definitions
The definition of ``Minor modification'' is amended to increase the
project cost and the definition of ``Multiparty unit price quotations''
is being deleted. This change will provide borrowers more flexibility
to utilize purchase orders or other construction contracts for smaller
projects without having to use RUS' standard contract forms.
7 CFR 1726.51 Procurement Methods To Award Contracts for Distribution
Line Construction
Paragraph (b)(1) is modified to increase limits, increase Net
Utility Plant (NUP) percentages, and delete the ``not to exceed''
limitations. These changes are being made to provide Electric Program
borrowers greater flexibility in determining the procurement method
that best meets their needs to award construction contracts.
7 CFR 1726.77 Substation and Transmission Line Construction
Paragraph (b)(1) is modified to increase limits, increase Net
Utility Plant (NUP) percentages, and delete the ``not to exceed''
limitations. Paragraph (c) is changed to increase contract approval
amounts and delete the ``not to exceed'' limitations. These changes are
being made to provide Electric Program borrowers greater flexibility in
determining the procurement method that best meets their needs to award
construction contracts. It will also reduce the number of construction
contracts that need to be reviewed and approved by RUS Staff.
7 CFR 1726.125 Generating Plant Facilities
Paragraph (c) is amended to remove an incorrect citation that does
not exist in the regulation.
7 CFR 1726.150 Headquarters Buildings
A sentence in paragraph (b) is amended to delete the ``not to
exceed'' limitation and increase the percent of NUP from three percent
to four percent. These changes are being made to provide borrowers
greater flexibility in determining the procurement method that best
meets their needs to award construction contracts.
7 CFR 1726.176 Communication and Control Facilities
Paragraph (b) limitations for Load control systems, communications
systems, and SCADA systems is modified to increase limits, increase NUP
percentages and delete the ``not to exceed'' limitations. These changes
are being made to provide Electric Program borrowers greater
flexibility in determining the procurement method that best meets their
needs to award construction contracts. It will also reduce the number
of construction contracts that need to be reviewed and approved by RUS
Staff.
7 CFR 1726.204 Multiparty Unit Price Quotations
This section is removed and reserved as a conforming change to a
prior streamlining effort. Multiparty Unit Price Quotations are no
longer specifically sited or used in the regulations.
7 CFR 1730.24 RUS Review and Evaluation
This section is modified to increase the Operations and Maintenance
review period from normally every three years to normally every four
years. This change is being made to better match the four-year
construction work plan (CWP) period. The Agency will also see savings
from reduced travel time due to increasing the review period.
7 CFR 1730.100 OMB Control Number
This section is updated to revise the Office of Management and
Budget (OMB) control number.
III. Executive Orders and Acts
Executive Order 12866--Classification
This rulemaking has been determined to be non-significant for
purposes of Executive Order (E.O.) 12866 and, therefore, has not been
reviewed by the Office of Management and Budget (OMB).
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this
rulemaking as not a major rule, as defined by 5 U.S.C. 804(2).
Assistance Listing Number (Formally Known as the Catalog of Federal
Domestic Assistance)
The Assistance Listing Number assigned to the Rural Electrification
Loans and Loan Guarantees Program is 10.850. The Assistance Listings
are available on the internet at https://sam.gov/.
Executive Order 12372, Intergovernmental Review of Federal Programs
This rulemaking is excluded from the scope of E.O. 12372,
Intergovernmental Consultation, which may require a consultation with
State and local officials. See the final rule related notice entitled,
``Department Programs and Activities Excluded from E.O. 12372'' (50 FR
47034) advising that RUS loans and loan guarantees were not covered by
E.O. 12372.
[[Page 17273]]
Paperwork Reduction Act
This rulemaking contains no new reporting or recordkeeping burdens
under OMB control number 0572-0032 that would require approval under
the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).
National Environmental Policy Act
In accordance with the National Environmental Policy Act of 1969,
Public Law 91-190, this final rule has been reviewed in accordance with
7 CFR part 1970 (``Environmental Policies and Procedures''). RUS has
determined that (i) this action meets the criteria established in 7 CFR
1970.53(f); (ii) no extraordinary circumstances exist; and (iii) the
action is not ``connected'' to other actions with potentially
significant impacts, is not considered a ``cumulative action'' and is
not precluded by 40 CFR 1506.1. Therefore, RUS has determined that the
action does not have a significant effect on the human environment, and
therefore neither an Environmental Assessment nor an Environmental
Impact Statement is required.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally
requires an agency to prepare a regulatory flexibility analysis of any
rule subject to notice and comment rulemaking requirements under the
Administrative Procedure Act (APA) or any other statute. The
Administrative Procedure Act exempts from notice and comment
requirements rules ``relating to agency management or personnel or to
public property, loans, grants, benefits, or contracts'' (5 U.S.C.
553(a)(2)), so therefore an analysis has not been prepared for this
rule.
Executive Order 12988--Civil Justice Reform
This rule has been reviewed under E.O. 12988, Civil Justice Reform.
In accordance with this rule: (1) unless otherwise specifically
provided, all State and local laws that conflict with this rule will be
preempted; (2) no retroactive effect will be given to this rule except
as specifically prescribed in the rule; and (3) administrative
proceedings of the National Appeals Division of the Department of
Agriculture (7 CFR part 11) must be exhausted before bringing suit in
court that challenges action taken under this rule.
Unfunded Mandates Reform Act (UMRA)
Title II of the UMRA, Public Law 104-4, establishes requirements
for Federal Agencies to assess the effects of their regulatory actions
on State, local, and Tribal governments and on the private sector.
Under section 202 of the UMRA, Federal agencies generally must prepare
a written statement, including cost-benefit analysis, for proposed and
Final Rules with ``Federal mandates'' that may result in expenditures
to State, local, or Tribal governments, in the aggregate, or to the
private sector, of $100 million or more in any one year. When such a
statement is needed for a rule, section 205 of the UMRA generally
requires a Federal agency to identify and consider a reasonable number
of regulatory alternatives and adopt the least costly, most cost-
effective, or least burdensome alternative that achieves the objectives
of the rule.
This rulemaking contains no Federal mandates (under the regulatory
provisions of title II of the UMRA) for State, local, and Tribal
governments or for the private sector. Therefore, this rule is not
subject to the requirements of sections 202 and 205 of the UMRA.
Executive Order 13132--Federalism
It has been determined, under E.O. 13132, Federalism, that the
policies contained in this rule do not have any substantial direct
effect on States, on the relationship between the National Government
and the States, or on the distribution of power and responsibilities
among the various levels of government. Nor does this rule impose
substantial direct compliance costs on State and local governments.
Therefore, consultation with the States is not required.
Executive Order 13175--Consultation and Coordination With Indian Tribal
Governments
This executive order imposes requirements on RUS in the development
of regulatory policies that have Tribal implications or preempt Tribal
laws. RUS has determined that the rule does not have a substantial
direct effect on one or more Indian Tribe(s) or on either the
relationship or the distribution of powers and responsibilities between
the Federal Government and Indian Tribes. Thus, this rule is not
subject to the requirements of Executive Order 13175. If Tribal leaders
are interested in consulting with RUS on this rule, they are encouraged
to contact USDA's Office of Tribal Relations or RD's Tribal Relations
Team at: [email protected] to request such a consultation.
E-Government Act Compliance
RD is committed to the E-Government Act of 2002, Public Law 107-
347, which requires Government agencies in general to provide the
public the option of submitting information or transacting business
electronically to the maximum extent possible and to promote the use of
the internet and other information technologies to provide increased
opportunities for citizen access to government information and
services, and for other purposes.
Civil Rights Impact Analysis
RD has reviewed this rule in accordance with USDA Regulation 4300-
004, ``Civil Rights Impact Analysis,'' to identify any major civil
rights impacts the rule might have on program participants on the basis
of age, race, color, national origin, sex, disability, marital or
familial status. Based on the review and analysis of the rule and all
available data, issuance of this Final Rule is not likely to negatively
impact low and moderate-income populations, minority populations,
women, Indian Tribes, or persons with disability, by virtue of their
age, race, color, national origin, sex, disability, or marital or
familial status.
USDA Non-Discrimination Statement
In accordance with Federal civil rights laws and USDA civil rights
regulations and policies, the USDA, its Mission Areas, agencies, staff
offices, employees, and institutions participating in or administering
USDA programs are prohibited from discriminating based on race, color,
national origin, religion, sex, gender identity (including gender
expression), sexual orientation, disability, age, marital status,
family/parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs). Remedies and complaint filing
deadlines vary by program or incident.
Program information may be made available in languages other than
English. Persons with disabilities who require alternative means of
communication to obtain program information (e.g., Braille, large
print, audiotape, American Sign Language) should contact the
responsible Mission Area, agency, or staff office; or the 711 Relay
Service.
To file a program discrimination complaint, a complainant should
complete a Form AD-3027, USDA Program Discrimination Complaint Form,
which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf, from any USDA office, by calling (866)
632-9992, or by writing a letter addressed to
[[Page 17274]]
USDA. The letter must contain the complainant's name, address,
telephone number, and a written description of the alleged
discriminatory action in sufficient detail to inform the Assistant
Secretary for Civil Rights (ASCR) about the nature and date of an
alleged civil rights violation. The completed AD-3027 form or letter
must be submitted to USDA by:
a. Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410; or
b. Fax: (833) 256-1665 or (202) 690-7442; or
c. Email: [email protected].
List of Subjects
7 CFR Part 1710
Electric power, Grant programs--energy, Loan programs--energy,
Reporting and recordkeeping requirements, Rural areas.
7 CFR Part 1717
Administrative practice and procedure, Electric power, Electric
power rates, Electric utilities, Intergovernmental relations,
Investments, Loan programs--energy, Reporting and recordkeeping
requirements, Rural areas.
7 CFR Part 1721
Electric power, Grant programs--energy, Loan programs--energy,
Reporting and recordkeeping requirements, Rural areas.
7 CFR Part 1726 and 1730
Electric power, Loan programs--energy, Reporting and recordkeeping
requirements, Rural areas.
For the reasons set forth in the preamble, RUS amends 7 CFR parts
1710, 1717, 1721, 1726, and 1730 as follows:
PART 1710--GENERAL AND PRE-LOAN POLICIES AND PROCEDURES COMMON TO
ELECTRIC LOANS AND GUARANTEES
0
1. The authority citation for part 1710 continues to read as follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.
Subpart F--Construction Work Plans and Related Studies
0
2. Amend Sec. 1710.250 by revising paragraph (f) to read as follows:
Sec. 1710.250 General.
* * * * *
(f) In the case of damage caused by storms, natural catastrophes,
sabotage, willful attacks, accidents, or acts of force majeure, a
borrower may proceed with emergency repair work before a CWP or CWP
amendment is prepared by the borrower and approved by RUS, without
losing eligibility for RUS financing of the repairs. The borrower must
notify RUS in writing after the incident, of its preliminary estimates
of damages and repair costs. Not later than 120 days after the
incident, the borrower must submit to RUS for approval, a CWP or CWP
amendment detailing the repairs.
* * * * *
Subpart I--Application Requirements and Procedures for Loans
0
3. Amend Sec. 1710.500 by revising paragraph (b) to read as follows:
Sec. 1710.500 Initial contact.
* * * * *
(b) Before submitting an application for an insured loan the
borrower shall ascertain from RUS the amount of supplemental financing
required, as set forth in Sec. 1710.110. If the borrower is applying
for either a municipal rate loan subject to the interest rate cap or a
hardship rate loan, the application must provide a preliminary
breakdown of residential consumers either by county, Tribal land or by
census tract. Final data must be included with the application. See
Sec. 1710.501(a)(7).
Sec. 1710.501 [Amended]
0
4. Amend Sec. 1710.501 by removing paragraphs (a)(9) and (13) and
redesignating paragraphs (a)(10), (11), (12), and (14) through (16) as
paragraphs (a)(9) through (14).
PART 1717--POST-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND
GUARANTEED ELECTRIC LOANS
0
5. The authority citation for part 1717 continues to read as follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.
Subpart D--Mergers and Consolidations of Electric Borrowers
0
6. Revise Sec. 1717.156 to read as follows:
Sec. 1717.156 Transitional assistance affecting preexisting loans.
The fund advance period for an insured loan, which is the period
during which RUS may advance loan funds to a borrower, terminates
automatically after a specific period of time. See 7 CFR 1710.602. If,
on the effective date the original fund advance period or the fund
advance period as extended pursuant to 7 CFR 1710.602(b), on any
preexisting RUS loan to any of the active borrowers involved in a
merger has not terminated, such fund advance period shall be
automatically lengthened by 2 years. However, under no circumstances
shall RUS ever make or approve an advance, regardless of the last day
for an advance on the loan note or any extension by the Administrator,
later than September 30 of the fifth year after the fiscal year of
obligation if such date would result in the RUS obligating or
permitting advance of funds contrary to the Anti-Deficiency Act. On the
borrower's request RUS will prepare documents necessary for the advance
of loan funds. RUS will prepare documents for the borrower's execution
that will reflect this extension and will provide the legal authority
for RUS to advance funds to the successor.
PART 1721--POST-LOAN POLICIES AND PROCEDURES FOR INSURED ELECTRIC
LOANS
0
7. The authority citation for part 1721 continues to read as follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.
Subpart A--Advances
0
8. Amend Sec. 1721.1 by revising paragraph (b) and paragraph (c)
introductory text to read as follows:
Sec. 1721.1 Advances.
* * * * *
(b) Minor project. Minor project means a project costing $250,000
or less. Such a project qualifies for advance of loan funds even though
it may not have been included in an RUS-approved borrower's CWP,
amendment to such CWP, or approved loan. Total advances requested shall
not exceed the total loan amount. All projects for which loan fund
advances are requested must be constructed to achieve purposes
permitted by terms of the loan contract between the borrower and RUS.
(c) Certification. Pursuant to the applicable provisions of the RUS
loan contract, borrowers must certify with each request for funds to be
approved for advance that such funds are for projects in compliance
with this section and shall also provide for those that cost in excess
of $250,000 a contract or work order number as applicable and a CWP
cross-reference project coded identification number. For a minor
project not included in a RUS approved borrower's CWP or CWP amendment,
the Borrower shall describe the project and do one of the following to
satisfy
[[Page 17275]]
RUS' environmental review requirements in accordance with 7 CFR part
1970:
* * * * *
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES
0
9. The authority citation for part 1726 continues to read as follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.
Subpart A--General
0
10. Amend Sec. 1726.14 by revising the definition of ``Minor
modification or improvement'' and removing the definition of
``Multiparty unit price quotations''.
The revision reads as follows:
Sec. 1726.14 Definitions.
* * * * *
Minor modification or improvement means a project the cost of which
is $250,000 or less, exclusive of the cost of owner furnished
materials.
* * * * *
Subpart B--Distribution Facilities
0
11. Amend Sec. 1726.51 by revising paragraph (b)(1) to read as
follows:
Sec. 1726.51 Distribution line construction.
* * * * *
(b) * * *
(1) It is the responsibility of each borrower to determine the
procurement method that best meets its needs to award contracts in
amounts of up to a cumulative total of $1,000,000 or four percent of
NUP, whichever is greater, per calendar year of distribution line
construction (including minor modifications or improvements), exclusive
of the cost of owner furnished materials and equipment. Borrowers may
award Cost-Plus/Hourly contracts as part of these borrower
responsibility limits up to a cumulative total of $500,000 or two
percent of NUP, whichever is greater, per calendar year of distribution
line construction (including minor modifications or improvements),
exclusive of the cost of owner furnished materials and equipment.
* * * * *
Subpart C--Substation and Transmission Facilities
0
12. Amend Sec. 1726.77 by revising paragraphs (b)(1) and (c) to read
as follows:
Sec. 1726.77 Substation and transmission line construction.
* * * * *
(b) * * *
(1) It is the responsibility of each borrower to determine the
procurement method that best meets its needs to award contracts in
amounts of up to a cumulative total of $1,000,000 or four percent of
NUP, whichever is greater, per calendar year of substation and
transmission line construction (including minor modifications or
improvements), exclusive of the cost of owner furnished materials and
equipment. Borrowers may award Cost-Plus/Hourly contracts as part of
these borrower responsibility limits up to a cumulative total of
$500,000 or two percent of NUP, whichever is greater, per calendar year
of substation and transmission line construction (including minor
modifications or improvements), exclusive of the cost of owner
furnished materials and equipment.
* * * * *
(c) Contract approval. Individual contracts in the amount of
$1,000,000 or more or four percent of NUP, whichever is greater,
exclusive of the cost of owner furnished materials and equipment, are
subject to RUS approval.
Subpart D--Generation Facilities
0
13. Amend Sec. 1726.125 by revising paragraph (c) introductory text to
read as follows:
Sec. 1726.125 Generating plant facilities.
* * * * *
(c) Contract approval. During the early stages of generating plant
design or project design, RUS will, in consultation with the borrower
and its consulting engineer, identify the specific contracts which
require RUS approval based on information supplied in the plant design
manual. The following are typical contracts for each type of generating
project which will require RUS approval. Although engineering services
are not covered by this part, they are listed in this paragraph to
emphasize that RUS approval is required for all major generating
station engineering service contracts in accordance with applicable RUS
rules. For types of projects not shown, such as nuclear and alternate
energy projects, RUS will identify the specific contracts which will
require RUS approval on a case-by-case basis.
* * * * *
Subpart E--Buildings
0
14. Amend Sec. 1726.150 by revising paragraph (b) to read as follows:
Sec. 1726.150 Headquarters buildings.
* * * * *
(b) Procurement procedures. A borrower may use Multiparty Lump Sum
Quotations to award contracts in amounts of up to a cumulative total of
$1,500,000 or four percent of NUP, whichever is greater, per calendar
year of headquarters construction (including minor modifications or
improvements). The borrower shall use formal competitive bidding for
all other headquarters contract construction unless RUS specifically
approves an alternative method.
* * * * *
Subpart F--General Plant
0
15. Amend Sec. 1726.176 by revising paragraphs (b)(2)(i) and (b)(3) to
read as follows:
Sec. 1726.176 Communication and control facilities.
* * * * *
(b) * * *
(2) * * *
(i) It is the responsibility of each borrower to determine the
procurement method that best meets its needs to award contracts not
requiring RUS approval in amounts of up to a cumulative total of
$1,000,000 or four percent of NUP, whichever is greater, per calendar
year of communications and control facilities construction (including
minor modifications or improvements), exclusive of the cost of owner
furnished materials and equipment.
* * * * *
(3) Contract approval. Individual contracts in amounts of
$1,000,000 or more or four percent of NUP, whichever is greater,
exclusive of the cost of owner furnished materials and equipment, are
subject to RUS approval.
Subpart G--Procurement Procedures
Sec. 1726.204 [Removed and Reserved].
0
16. Remove and reserve Sec. 1726.204.
PART 1730--ELECTRIC SYSTEMS OPERATIONS AND MAINTENANCE
0
17. The authority citation for part 1730 continues to read as follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.
[[Page 17276]]
Subpart B--Operations and Maintenance Requirements
0
18. Revise Sec. 1730.24 to read as follows:
Sec. 1730.24 RUS review and evaluation.
RUS will initiate and conduct a periodic review and evaluation of
the operations and maintenance practices of each borrower for the
purpose of assessing loan security and determining borrower compliance
with RUS policy as outlined in this part. This review will normally be
done at least once every four years for all Borrowers. The borrower
will make available to RUS the borrower's policies, procedures, and
records related to the operations and maintenance of its complete
system. Reports made by other inspectors (e.g., other Federal agencies,
State inspectors, etc.) will also be made available, as applicable. RUS
will not duplicate these other reviews but will use their reports to
supplement its own review. RUS may inspect facilities, as well as
records, and may also observe construction and maintenance work in the
field. Key borrower personnel responsible for the facilities being
inspected are to accompany RUS during such inspections, unless
otherwise determined by RUS. RUS personnel may prepare an independent
summary of the operations and maintenance practices of the borrower.
The borrower's management will discuss this review and evaluation with
its Board of Directors.
Subpart C--Interconnection of Distributed Resources
0
19. Revise Sec. 1730.100 to read as follows:
Sec. 1730.100 OMB control number.
The information collection requirements in this part are approved
by the Office of Management and Budget and assigned OMB control number
0572-0025.
Andrew Berke,
Administrator, Rural Utilities Service.
[FR Doc. 2024-05076 Filed 3-8-24; 8:45 am]
BILLING CODE 3410-15-P
