[Federal Register: September 16, 2002 (Volume 67, Number 179)]
[Rules and Regulations]
[Page 58323-58324]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16se02-4]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1717
RIN 0572-AB63
Mergers and Consolidations of Electric Borrowers
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Utilities Service (RUS) is amending its' regulations
to provide the Administrator with loan processing prioritization
authority for recently merged companies. This change will allow the
Administrator to grant or decline priority or grant priority for a
limited amount of a loan application. This action will allow for
lending priority to newly merged companies and provide greater
opportunity to provide loans to as many borrowers as possible.
EFFECTIVE DATE: September 16, 2002.
FOR FURTHER INFORMATION CONTACT: Patrick R. Sarver, Management Analyst,
Rural Utilities Service, Electric Program, Room 4024 South Building,
Stop 1560, 1400 Independence Ave., SW., Washington, DC 20250-1560,
Telephone: 202-690-2992, FAX: 202-690-0717, e-mail:
psarver@rus.usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be not significant for purposes of
Executive Order 12866 and, therefore, has not been reviewed by the
Office of Management and Budget (OMB).
Executive Order 12372
This rule is excluded from the scope of Executive Order 12372,
Intergovernmental Consultation, which may require consultation with
State and local officials. See the final rule related notice titled
``Department Programs and Activities Excluded from Executive Order
12372'' (50 FR 47034) advising that RUS loans and loan guarantees from
coverage were not covered by Executive Order 12372.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. RUS has determined that this proposed rule meets the
applicable standards provided in section 3 of the Executive Order. In
addition, all state and local laws and regulations that are in conflict
with this rule will be preempted; no retroactive effect will be given
to this rule, and, in accordance with section 212(e) of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 6912(e)),
administrative appeals procedures, if any are required, must be
exhausted before an action against the Department or its agencies.
Regulatory Flexibility Act Certification
In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.), the Administrator of RUS has determined that this rule will not
have significant impact on a substantial number of small entities. The
RUS electric loan program provides loans and loan guarantees to
borrowers at interest rates and terms that are more favorable than
those generally available from the private sector. Small entities are
not subjected to any requirements, which are not applied equally to
large entities. RUS borrowers, as a result of obtaining federal
financing, receive economic benefits that exceed any direct cost
associated with RUS regulations and requirements.
Information Collection and Recordkeeping Requirements
This rule contains no additional information collection or
recordkeeping requirements under OMB control number 0572-0032 that
would require approval under the Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35).
Unfunded Mandates
This rule contains no Federal mandates (under the regulatory
provision of title II of the Unfunded Mandates Reform Act) for State,
local, and tribal governments or the private sector. Thus, this rule is
not subject to the requirements of sections 202 and 205 of the Unfunded
Mandates Reform Act.
National Environmental Policy Act Certification
The Administrator of RUS has determined that this rule will not
significantly affect the quality of human environment as defined by the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
Therefore, this action does not require an environmental impact
statement or assessment.
Catalog of Federal Domestic Assistance
The program described by this rule is listed in the Catalog of
Federal Domestic Assistance Programs under No. 10.850, Rural
Electrification Loans and Loan Guarantees. This catalog is available on
a subscription basis from the Superintendent of Documents, U.S.
Government Printing Office, Washington, DC 20402-9325, telephone number
(202) 512-1800.
Background
For reasons set for in the proposed rule dated November 1, 2001, 66
FR 55130, and to provide a greater opportunity to provide loans to as
many borrowers as possible, the Rural Utilities Service (RUS) is
amending 7 CFR part 1717, subpart D, to provide the Administrator the
flexibility to limit the amount of a loan to a successor (surviving
business entity) following a merger.
No comments were received by RUS as the result of the proposed
rule.
List of Subjects in 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.
For the reasons set forth in the preamble, chapter XVII of title 7
of the Code of Federal Regulations, is amended as follows:
PART 1717--POST-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND
GUARANTEED ELECTRIC LOANS
1. The authority citation for part 1717 continues to read as
follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.
Subpart D--Mergers and Consolidations of Electric Borrowers
2. Section 1717.154 is amended by:
A. Revising paragraph (a)(1);
B. Redesignating paragraph (a)(2) to (a)(3), and
[[Page 58324]]
C. Adding a new paragraph (a)(2).
This revision and addition are to read as follows:
Sec. 1717.154 Transitional assistance in connection with new loans.
* * * * *
(a) Loan processing priority. (1) RUS loans are generally processed
in chronological order based on the date the complete application is
received in the regional or division office. At the borrower's request,
RUS may offer loan processing priority for the first loan to a
successor, provided that the loan is approved by RUS not later than 5
years after the effective date of the merger. In considering the
request, the Administrator will take into account, among other factors,
the amount of the loan application, whether there is a significant
backlog in pending loan applications, the impact that loan priority
would have on the backlog, the savings and efficiencies to be realized
from the merger and the relative importance of loan priority to
facilitating the merger. The Administrator may, in his or her sole
discretion, grant or decline to grant priority, or grant priority for a
limited amount of the loan application while deferring for later
consideration the remainder of the application.
(2) For any subsequent loans approved during those 5 years, RUS may
offer loan processing priority. In reviewing requests for loan
processing priority on subsequent loans, RUS will consider the loan
authority for the fiscal year, the borrower's projected cash flows, its
electric rates and rate disparity, and the likely mitigation effects of
priority loan processing. See 7 CFR 1710.108 and 1710.119.
* * * * *
Dated: September 5, 2002.
Curtis M. Anderson,
Deputy Administrator, as Acting Administrator, Rural Utilities Service.
[FR Doc. 02-23492 Filed 9-13-02; 8:45 am]
BILLING CODE 3410-15-P