[Federal Register: November 21, 2002 (Volume 67, Number 225)]
[Rules and Regulations]
[Page 70151-70153]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21no02-8]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Parts 1710 and 1717
RIN 0572-AB68
Exceptions of RUS Operational Controls Under Section 306E of the
RE Act
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule.
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[[Page 70152]]
SUMMARY: In an effort to streamline requirements of borrowers and make
regulations simple and direct, the Rural Utilities Service (RUS) will
eliminate regulations on Exceptions of RUS Operational Controls under
Section 306E of the RE Act in its entirety. Because borrowers are now
afforded the same exemptions of RUS operational controls by way of
other provisions, RUS has determined that the regulation can now be
removed from its regulations.
DATES: This rule will become effective on December 23, 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 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 and action against the Department or its agencies.
Regulatory Flexibility Act Certification
It has been determined that the Regulatory Flexibility Act is not
applicable to this rule since the Rural Utilities Service is not
required by 5 U.S.C. 551 et seq. or any other provision of law to
publish a notice of proposed rulemaking with respect to the subject
matter of this rule.
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
On May 24, 2002, at 67 FR 101, RUS published a proposed rule, 7 CFR
Part 1710 and 1717, Exceptions of RUS Operational Controls Under
Section 306E of the RE Act, which proposed the elimination of 7 CFR
1710.7. RUS currently treats the general subject of operational
controls for recipients of electric loans and guarantees in three
separate places, namely in RUS loan documents, in 7 CFR part 1717,
subpart M, and in 7 CFR 1710.7. In the interest of eliminating
confusion and to continue in its ongoing program to streamline RUS
regulations, RUS will eliminate 7 CFR 1710.7.
Written comments were received June 24, 2002, from Tex-LA Electric
Cooperative of Texas, Inc., Northeast Texas Electric Cooperative, Inc,
and Sam Rayburn G&T Electric Cooperative, Inc., on behalf of themselves
and their respective member distribution cooperatives. The three
cooperatives support the removal of 7 CFR 1710.7 and provided
additional comments on regulations not covered in this rulemaking.
Specifically the cooperatives ask that more precise reference be made
throughout the regulations when the phrase ``other RUS regulations'' is
used as reference. The three cooperatives also ask that RUS take the
opportunity to correct a typographical error found in 7 CFR 1717.615
(f)(2). RUS agrees with the comments made by the three cooperatives
that whenever possible, precise reference to other sections of the
regulations should be made instead of a more general statement and will
continue to make rules with clear reference to other sections of its
regulations as appropriate. RUS will also take this opportunity to
correct the typographical error that was identified.
In this rulemaking, as presented in the proposed rule, it appears
that 7 CFR 1710.7 has become an anachronism because the subsequent
promulgation of new loan documents and subpart M effectively conferred
the benefits of 7 CFR 1710.7 to all borrowers. Borrowers who are
relying on subpart M are encouraged to switch to the new forms of loan
documents so that subpart M itself can eventually be removed at a later
date once the universe of legacy borrowers has sufficiently contracted
to the point that any remaining legacy borrowers could be dealt with
either informally or on a case-by-case basis. RUS does not believe this
action will diminish or abrogate any rights or privileges conferred
upon 110 percent borrowers by section 306e of the RE Act, and no such
consequences are intended.
List of Subjects
7 CFR Part 1710
Electric power, Electric utilities, 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.
[[Page 70153]]
For the reasons set forth in the preamble, chapter X of title 7 of
the Code of Federal Regulations, RUS amends 7 CFR parts 1710 and 1717
as follows:
PART 1710--GENERAL AND PRE-LOAN POLICIES AND PROCEDURES COMMON TO
INSURED AND GUARANTEED ELECTRIC LOANS
1. The authority citation for part 1710 continues to read as
follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.
Subpart A--General
Sec. 1710.7 [Removed and Reserved]
2. Section 1710.7 is removed and reserved.
PART 1717--POST-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND
GUARANTEED ELECTRIC LOANS
3. 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 S--Lien Accommodations for Supplemental Financing Required
by 7 CFR 1710.110
4. Section 1717.615(f)(2) is revised to read as follows:
Sec. 1717.615 Consolidations and Mergers.
* * * * *
(f) * * *
(2) A pro forma TIER of not less than 1.25 and a pro forma DSC of
not less than 1.25 for each of the two preceding calendar years;
Sec. 1717.904 [Amended]
5. Section 1717.904 is amended by removing paragraphs (c) and (d)
and redesignating paragraph (e) as paragraph (c).
Dated: November 13, 2002.
Hilda Gay Legg,
Administrator, Rural Utilities Service.
[FR Doc. 02-29597 Filed 11-20-02; 8:45 am]
BILLING CODE 3410-15-P