[Code of Federal Regulations]
[Title 7 Volume 11]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1724]
[Page 257-272]
TITLE 7--AGRICULTURE
CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
PART 1724_ELECTRIC ENGINEERING, ARCHITECTURAL SERVICES AND DESIGN POLICIES AND
PROCEDURES--Table of Contents
Subpart A_General
Sec.
1724.1 Introduction.
1724.2 Waivers.
1724.3 Definitions.
1724.4 Qualifications.
1724.5 Submission of documents to RUS.
1724.6 Insurance requirements.
1724.7 Debarment and suspension.
1724.8 Restrictions on lobbying.
1724.9 Environmental compliance.
1724.10 Standard forms of contracts for borrowers.
1724.11-1724.19 [Reserved]
Subpart B_Architectural Services
1724.20 Borrowers' requirements--architectural services.
1724.21 Architectural services contracts.
1724.22-1724.29 [Reserved]
Subpart C_Engineering Services
1724.30 Borrowers' requirements--engineering services.
1724.31 Engineering services contracts.
1724.32 Inspection and certification of work order construction.
1724.33-1724.39 [Reserved]
Subpart D_Electric System Planning
1724.40 General.
1724.41-1724.49 [Reserved]
Subpart E_Electric System Design
1724.50 Compliance with National Electrical Safety Code (NESC).
1724.51 Design requirements.
1724.52 Permitted deviations from RUS construction standards.
1724.53 Preparation of plans and specifications.
1724.54 Requirements for RUS approval of plans and specifications.
1724.55 Dam safety.
1724.56-1724.69 [Reserved]
Appendix A to Subpart E--Hazard Potential Classification for Civil Works
Projects
Subpart F_RUS Contract Forms
1724.70 Standard forms of contracts for borrowers.
1724.71 Borrower contractual obligations.
1724.72 Notice and publication of listed contract forms.
1724.73 Promulgation of new or revised contract forms.
1724.74 List of electric program standard contract forms.
1724.75-1724.99 [Reserved]
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.
Source: 63 FR 35314, June 29, 1998, unless otherwise noted.
[[Page 258]]
Subpart A_General
Sec. 1724.1 Introduction.
(a) The policies, procedures and requirements in this part implement
certain provisions of the standard form of loan documents between the
Rural Utilities Service (RUS) and its electric borrowers.
(b) All borrowers, regardless of the source of financing, shall
comply with RUS' requirements with respect to design, construction
standards, and the use of RUS accepted material on their electric
systems.
(c) Borrowers are required to use RUS contract forms only if the
facilities are financed by RUS.
Sec. 1724.2 Waivers.
The Administrator may waive, for good cause on a case-by-case basis,
requirements and procedures of this part.
Sec. 1724.3 Definitions.
Terms used in this part have the meanings set forth in Sec. 1710.2
of this chapter. References to specific RUS forms and other RUS
documents, and to specific sections or lines of such forms and
documents, shall include the corresponding forms, documents, sections
and lines in any subsequent revisions of these forms and documents. In
addition to the terms defined in Sec. 1710.2 of this chapter, the
following terms have the following meanings for the purposes of this
part:
Architect means a registered or licensed person employed by the
borrower to provide architectural services for a project and duly
authorized assistants and representatives.
Engineer means a registered or licensed person, who may be a staff
employee or an outside consultant, to provide engineering services and
duly authorized assistants and representatives.
Force account construction means construction performed by the
borrower's employees.
GPO means Government Printing Office.
NESC means the National Electrical Safety Code.
RE Act means the Rural Electrification Act of 1936 as amended (7
U.S.C. 901 et seq.).
Repowering means replacement of the steam generator or the prime
mover or both at a generating plant.
RUS means Rural Utilities Service.
RUS approval means written approval by the Administrator or a
representative with delegated authority. RUS approval must be in
writing, except in emergency situations where RUS approval may be given
orally followed by a confirming letter.
RUS financed means financed or funded wholly or in part by a loan
made or guaranteed by RUS, including concurrent supplemental loans
required by Sec. 1710.110 of this chapter, loans to reimburse funds
already expended by the borrower, and loans to replace interim
financing.
[63 FR 35314, June 29, 1998, as amended at 63 FR 58284, Oct. 30, 1998]
Sec. 1724.4 Qualifications.
The borrower shall ensure that:
(a) All selected architects and engineers meet the applicable
registration and licensing requirements of the States in which the
facilities will be located;
(b) All selected architects and engineers are familiar with RUS
standards and requirements; and
(c) All selected architects and engineers have had satisfactory
experience with comparable work.
Sec. 1724.5 Submission of documents to RUS.
(a) Where to send documents. Documents required to be submitted to
RUS under this part are to be sent to the office of the borrower's
respective RUS Regional Director, the Power Supply Division Director, or
such other office of RUS as designated by RUS. (See part 1700 of this
chapter.)
(b) Contracts requiring RUS approval. The borrower shall submit to
RUS three copies of each contract that is subject to RUS approval under
subparts B and C of this part. At least one copy of each contract must
be an original signed in ink (i.e., no facsimile signature). Each
contract submittal must be accompanied by a certified copy of the board
resolution awarding the contract.
(c) Contract amendments requiring RUS approval. The borrower shall
submit to
[[Page 259]]
RUS three copies of each contract amendment (at least one copy of which
must be an original signed in ink) which is subject to RUS approval.
Each contract amendment submittal to RUS must be accompanied by a
certified copy of the board resolution approving the amendment.
Sec. 1724.6 Insurance requirements.
(a) Borrowers shall ensure that all architects and engineers working
under contract with the borrower have insurance coverage as required by
part 1788 of this chapter.
(b) Borrowers shall also ensure that all architects and engineers
working under contract with the borrower have insurance coverage for
Errors and Omissions (Professional Liability Insurance) in an amount at
least as large as the amount of the architectural or engineering
services contract but not less than $500,000.
Sec. 1724.7 Debarment and suspension.
Borrowers shall comply with the requirements on debarment and
suspension in connection with procurement activities as set forth in
part 3017 of this title, particularly with respect to lower tier
transactions, e.g., procurement contracts for goods or services.
Sec. 1724.8 Restrictions on lobbying.
Borrowers shall comply with the restrictions and requirements in
connection with procurement activities as set forth in part 3018 of this
title.
Sec. 1724.9 Environmental compliance.
Borrowers shall comply with the requirements of part 1794 of this
chapter, Environmental Policies and Procedures for Electric and
Telephone Borrowers.
Sec. 1724.10 Standard forms of contracts for borrowers.
The standard loan agreement between RUS and its borrowers provides
that, in accordance with applicable RUS regulations in this chapter, the
borrower shall use standard forms of contracts promulgated by RUS for
construction, procurement, engineering services, and architectural
services financed by a loan made or guaranteed by RUS. This part
implements these provisions of the RUS loan agreement. Subparts A
through E of this part prescribe when and how borrowers are required to
use RUS standard forms of contracts for engineering and architectural
services. Subpart F of this part prescribes the procedures that RUS
follows in promulgating standard contract forms and identifies those
contract forms that borrowers are required to use for engineering and
architectural services.
[63 FR 58284, Oct. 30, 1998]
Sec. Sec. 1724.11-1724.19 [Reserved]
Subpart B_Architectural Services
Sec. 1724.20 Borrowers' requirements--architectural services.
The provisions of this section apply to all borrower electric system
facilities regardless of the source of financing.
(a) Each borrower shall select a qualified architect to perform the
architectural services required for the design and construction
management of headquarters facilities. The selection of the architect is
not subject to RUS approval unless specifically required by RUS on a
case by case basis. Architect's qualification information need not be
submitted to RUS unless specifically requested by RUS on a case by case
basis.
(b) The architect retained by the borrower shall not be an employee
of the building supplier or contractor, except in cases where the
building is prefabricated and pre-engineered.
(c) The architect's duties are those specified under the
Architectural Services Contract and under subpart E of this part, and,
as applicable, those duties assigned to the ``engineer'' for competitive
procurement procedures in part 1726 of this chapter.
(d) If the facilities are RUS financed, the borrower shall submit or
require the architect to submit one copy of each construction progress
report to RUS upon request.
(e) Additional information concerning RUS requirements for electric
borrowers' headquarters facilities are set forth in subpart E of this
part. See also RUS Bulletin 1724E-400, Guide to Presentation of Building
Plans and Specifications, for additional guidance.
[[Page 260]]
This bulletin is available from Program Development and Regulatory
Analysis, Rural Utilities Service, U.S. Department of Agriculture, Stop
1522, 1400 Independence Ave., SW., Washington, DC 20250-1522.
Sec. 1724.21 Architectural services contracts.
The provisions of this section apply only to RUS financed electric
system facilities.
(a) RUS Form 220, Architectural Services Contract, must be used by
electric borrowers when obtaining architectural services.
(b) The borrower shall ensure that the architect furnishes or
obtains all architectural services related to the design and
construction management of the facilities.
(c) Reasonable modifications or additions to the terms and
conditions in the RUS contract form may be made to define the exact
services needed for a specific undertaking. Such modifications or
additions shall not relieve the architect or the borrower of the basic
responsibilities required by the RUS contract form, and shall not alter
any terms and conditions required by law. All substantive changes must
be approved by RUS prior to execution of the contract.
(d) Architectural services contracts are not subject to RUS approval
and need not be submitted to RUS unless specifically requested by RUS on
a case by case basis.
(e) Closeout. Upon completion of all services and obligations
required under each architectural services contract, including, but not
limited to, submission of final documents, the borrower must closeout
that contract. The borrower shall obtain from the architect a final
statement of cost, which must be supported by detailed information as
appropriate. For example, out-of-pocket expense and per diem types of
compensation should be listed separately with labor, transportation,
etc., itemized for each service involving these types of compensation.
RUS Form 284, Final Statement of Cost for Architectural Service, may be
used. All computations of the compensation must be made in accordance
with the terms of the architectural services contract. Closeout
documents need not be submitted to RUS unless specifically requested by
RUS on a case by case basis.
Sec. Sec. 1724.22-1724.29 [Reserved]
Subpart C_Engineering Services
Sec. 1724.30 Borrowers' requirements--engineering services.
The provisions of this section apply to all borrower electric system
facilities regardless of the source of financing.
(a) Each borrower shall select one or more qualified persons to
perform the engineering services involved in the planning, design, and
construction management of the system.
(b) Each borrower shall retain or employ one or more qualified
engineers to inspect and certify all new construction in accordance with
Sec. 1724.32. The engineer must not be the borrower's manager.
(c) The selection of the engineer is not subject to RUS approval
unless specifically required by RUS on a case by case basis. Engineer's
qualification information need not be submitted to RUS unless
specifically requested by RUS on a case by case basis.
(d) The engineer's duties are specified under the Engineering
Services Contract and under part 1726 of this chapter. The borrower
shall ensure that the engineer executes all certificates and other
instruments pertaining to the engineering details required by RUS.
(e) Additional requirements related to appropriate seismic safety
measures are contained in part 1792, subpart C, of this chapter, Seismic
Safety of Federally Assisted New Building Construction.
(f) If the facilities are RUS financed, the borrower shall submit or
require the engineer to submit one copy of each construction progress
report to RUS upon RUS' request.
Sec. 1724.31 Engineering services contracts.
The provisions of this section apply only to RUS financed electric
system facilities.
(a) RUS contract forms for engineering services shall be used.
Reasonable
[[Page 261]]
modifications or additions to the terms and conditions in the RUS
contract form may be made to define the exact services needed for a
specific undertaking. Any such modifications or additions shall not
relieve the engineer or the borrower of the basic responsibilities
required by the RUS contract form, and shall not alter any terms and
conditions required by law. All substantive changes to the RUS contract
form shall be approved by RUS prior to execution of the contract.
(b) RUS Form 236, Engineering Service Contract--Electric System
Design and Construction, shall be used for all distribution,
transmission, substation, and communications and control facilities.
These contracts are not subject to RUS approval and need not be
submitted to RUS unless specifically requested by RUS on a case by case
basis.
(c) RUS Form 211, Engineering Service Contract for the Design and
Construction of a Generating Plant, shall be used for all new generating
units and repowering of existing units. These contracts require RUS
approval.
(d) Any amendments to RUS approved engineering services contracts
require RUS approval.
(e) Closeout. Upon completion of all services and obligations
required under each engineering services contract, including, but not
limited to, submission of final documents, the borrower must closeout
the contract. The borrower shall obtain from the engineer a completed
final statement of engineering fees, which must be supported by detailed
information as appropriate. RUS Form 234, Final Statement of Engineering
Fee, may be used. All computations of the compensation shall be made in
accordance with the terms of the engineering services contract. Closeout
documents need not be submitted to RUS unless specifically requested by
RUS on a case by case basis.
Sec. 1724.32 Inspection and certification of work order construction.
The provisions of this section apply to all borrower electric system
facilities regardless of the source of financing.
(a) The borrower shall ensure that all field inspection and related
services are performed within 6 months of the completion of
construction, and are performed by a licensed engineer, except that a
subordinate of the licensed engineer may make the inspection, provided
the following conditions are met:
(1) The inspection by the subordinate is satisfactory to the
borrower;
(2) This practice is acceptable under applicable requirements of the
States in which the facilities are located;
(3) The subordinate is experienced in making such inspections;
(4) The name of the person making the inspection is included in the
certification; and
(5) The licensed engineer signs such certification which appears on
the inventory of work orders.
(b) The inspection shall include a representative and sufficient
amount of construction listed on each RUS Form 219, Inventory of Work
Orders (or comparable form), being inspected to assure the engineer that
the construction is acceptable. Each work order that was field inspected
shall be indicated on RUS Form 219 (or comparable form.) The inspection
services shall include, but not be limited to, the following:
(1) Determination that construction conforms to RUS specifications
and standards and to the requirements of the National Electrical Safety
Code (NESC), State codes, and local codes;
(2) Determination that the staking sheets or as-built drawings
represent the construction completed and inspected;
(3) Preparation of a list of construction clean-up notes and staking
sheet discrepancies to be furnished to the owner to permit correction of
construction, staking sheets, other records, and work order inventories;
(4) Reinspection of construction corrected as a result of the
engineer's report;
(5) Noting, initialing, and dating the staking or structure sheets
or as-built drawings and noting the corresponding work order entry for
line construction; and
(6) Noting, initialing, and dating the as-built drawings or sketches
for generating plants, substations, and other major facilities.
[[Page 262]]
(c) Certification. (1) The following certification must appear on
all inventories of work orders:
I hereby certify that sufficient inspection has been made of the
construction reported by this inventory to give me reasonable assurance
that the construction complies with applicable specifications and
standards and meets appropriate code requirements as to strength and
safety. This certification is in accordance with acceptable engineering
practice.
(2) A certification must also include the name of the inspector,
name of the firm, signature of the licensed engineer, the engineer's
State license number, and the date of signature.
Sec. Sec. 1724.33-1724.39 [Reserved]
Subpart D_Electric System Planning
Sec. 1724.40 General.
Borrowers shall have ongoing, integrated planning to determine their
short-term and long-term needs for plant additions, improvements,
replacements, and retirements for their electric systems. The primary
components of the planning system consist of long-range engineering
plans and construction work plans. Long-range engineering plans identify
plant investments required over a long-range period, 10 years or more.
Construction work plans specify and document plant requirements for a
shorter term, 2 to 4 years. Long-range engineering plans and
construction work plans shall be in accordance with part 1710, subpart
F, of this chapter. See also RUS Bulletins 1724D-101A, Electric System
Long-Range Planning Guide, and 1724D-101B, System Planning Guide,
Construction Work Plans, for additional guidance. These bulletins are
available from Program Development and Regulatory Analysis, Rural
Utilities Service, U.S. Department of Agriculture, Stop 1522, 1400
Independence Ave., SW., Washington, DC 20250-1522.
Sec. Sec. 1724.41-1724.49 [Reserved]
Subpart E_Electric System Design
Sec. 1724.50 Compliance with National Electrical Safety Code (NESC).
The provisions of this section apply to all borrower electric system
facilities regardless of the source of financing.
(a) A borrower shall ensure that its electric system, including all
electric distribution, transmission, and generating facilities, is
designed, constructed, operated, and maintained in accordance with all
applicable provisions of the most current and accepted criteria of the
National Electrical Safety Code (NESC) and all applicable and current
electrical and safety requirements of any State or local governmental
entity. Copies of the NESC may be obtained from the Institute of
Electrical and Electronic Engineers, Inc., 445 Hoes Lane, Piscataway, NJ
08855. This requirement applies to the borrower's electric system
regardless of the source of financing.
(b) Any electrical standard requirements established by RUS are in
addition to, and not in substitution for or a modification of, the most
current and accepted criteria of the NESC and any applicable electrical
or safety requirements of any State or local governmental entity.
(c) Overhead distribution circuits shall be constructed with not
less than the Grade C strength requirements as described in Section 26,
Strength Requirements, of the NESC when subjected to the loads specified
in NESC Section 25, Loadings for Grades B and C. Overhead transmission
circuits shall be constructed with not less than the Grade B strength
requirements as described in NESC Section 26.
Sec. 1724.51 Design requirements.
The provisions of this section apply to all borrower electric system
facilities regardless of the source of financing.
(a) Distribution. All distribution facilities must conform to the
applicable RUS construction standards and utilize RUS accepted
materials.
[[Page 263]]
(b) Transmission lines. (1) All transmission line design data must
be approved by RUS.
(2) Design data consists of all significant design features,
including, but not limited to, transmission line design data summary,
general description of terrain, right-of-way calculations, discussion
concerning conductor and structure selection, conductor sag and tension
information, design clearances, span limitations due to clearances,
galloping or conductor separation, design loads, structure strength
limitations, insulator selection and design, guying requirements, and
vibration considerations. For lines composed of steel or concrete poles,
or steel towers, in which load information will be used to purchase the
structures, the design data shall also include loading trees, structure
configuration and selection, and a discussion concerning foundation
selection.
(3) Line design data for uprating transmission lines to higher
voltage levels or capacity must be approved by RUS.
(4) Transmission line design data which has received RUS approval in
connection with a previous transmission line construction project for a
particular borrower is considered approved by RUS for that borrower,
provided that:
(i) The conditions on the project fall within the design data
previously approved; and
(ii) No significant NESC revisions have occurred.
(c) Substations. (1) All substation design data must be approved by
RUS.
(2) Design data consists of all significant design features,
including, but not limited to, a discussion of site considerations, oil
spill prevention measures, design considerations covering voltage,
capacity, shielding, clearances, number of low and high voltage phases,
major equipment, foundation design parameters, design loads for line
support structures and the control house, seismic considerations,
corrosion, grounding, protective relaying, and AC and DC auxiliary
systems. Reference to applicable safety codes and construction standards
are also to be included.
(3) Substation design data which has received RUS approval in
connection with a previous substation construction project for a
particular borrower is considered approved by RUS for that borrower,
provided that:
(i) The conditions on the project fall within the design data
previously approved; and
(ii) No significant NESC revisions have occurred.
(d) Generating facilities. (1) This section covers all portions of a
generating plant including plant buildings, the generator step-up
transformer, and the transmission switchyard at a generating plant.
Warehouses and equipment service buildings not associated with
generation plants are covered under paragraph (e) of this section.
Generation plant buildings must meet the requirements of paragraph
(e)(1) of this section.
(2) For all new generation units and for all repowering projects,
the design outline shall be approved by RUS, unless RUS determines that
a design outline is not needed for a particular project.
(3) The design outline will include all significant design criteria.
During the early stages of the project, RUS will, in consultation with
the borrower and its consulting engineer, identify the specific items
which are to be included in the design outline.
(e) Headquarters--(1) Applicable laws. The design and construction
of headquarters facilities shall comply with all applicable Federal,
State, and local laws and regulations, including, but not limited to:
(i) Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794),
which states that no qualified individual with a handicap shall, solely
by reason of their handicap, be excluded from participation in, be
denied the benefits of, or be subject to discrimination under any
program or activity receiving Federal financial assistance. The Uniform
Federal Accessibility Standards (41 CFR part 101-19, subpart 101-19.6,
appendix A) are the applicable standards for all new or altered borrower
buildings, regardless of the source of financing.
(ii) The Architectural Barriers Act of 1968 (42 U.S.C. 4151), which
requires that buildings financed with Federal funds are designed and
constructed to
[[Page 264]]
be accessible to the physically handicapped.
(iii) The Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7701
et seq.), and Executive Order 12699, Seismic Safety of Federal and
Federally Assisted or Regulated New Building Construction (3 CFR 1990
Comp., p. 269). Appropriate seismic safety provisions are required for
new buildings for which RUS provides financial assistance. (See part
1792, subpart C, of this chapter.)
(2) The borrower shall provide evidence, satisfactory in form and
substance to the Administrator, that each building will be designed and
built in compliance with all Federal, State, and local requirements.
(f) Communications and control. (1) This section covers microwave
and powerline carrier communications systems, load control, and
supervisory control and data acquisition (SCADA) systems.
(2) The performance considerations for a new or replacement master
system must be approved by RUS. A master system includes the main
controller and related equipment at the main control point. Performance
considerations include all major system features and their
justification, including, but not limited to, the objectives of the
system, the types of parameters to be controlled or monitored, the
communication media, alternatives considered, and provisions for future
needs.
Sec. 1724.52 Permitted deviations from RUS construction standards.
The provisions of this section apply to all borrower electric system
facilities regardless of the source of financing.
(a) Structures for raptor protection. (1) RUS standard distribution
line structures may not have the extra measure of protection needed in
areas frequented by eagles and other large raptors to protect such birds
from electric shock due to physical contact with energized wires. Where
raptor protection in the design of overhead line structures is required
by RUS; a Federal, State or local authority with permit or license
authority over the proposed construction; or where the borrower
voluntarily elects to comply with the recommendations of the U.S. Fish
and Wildlife Service or State wildlife agency, borrowers are permitted
to deviate from RUS construction standards, provided:
(i) Structures are designed and constructed in accordance with
``Suggested Practices for Raptor Protection on Powerlines: The State of
the Art in 1996'' (Suggested Practices for Raptor Protection); and,
(ii) Structures are in accordance with the NESC and applicable State
and local regulations.
(2) Any deviation from the RUS construction standards for the
purpose of raptor protection, which is not in accordance with the
Suggested Practices for Raptor Protection, must be approved by RUS prior
to construction. ``Suggested Practices for Raptor Protection on
Powerlines: The State of the Art in 1996,'' published by the Edison
Electric Institute/Raptor Research Foundation, is hereby incorporated by
reference. This incorporation by reference is approved by the Director
of the Office of the Federal Register in accordance with 5 U.S.C. 552(a)
and 1 CFR part 51. Copies of this publication may be obtained from the
Raptor Research Foundation, Inc., c/o Jim Fitzpatrick, Treasurer,
Carpenter Nature Center, 12805 St. Croix Trail South, Hastings,
Minnesota 55033. It is also available for inspection during normal
business hours at RUS, Electric Staff Division, 1400 Independence
Avenue, SW., Washington, DC, Room 1246-S, and at the National Archives
and Records Administration (NARA). For information on the availability
of this material at NARA, call 202-741-6030, or go to: http://
www.archives.gov/federal--register/code--of--federal--regulations/ibr--
locations.html.
(b) Transformer neutral connections. Where it is necessary to
separate the primary and secondary neutrals to provide the required
electric service to a consumer, the RUS standard transformer secondary
neutral connections may be modified in accordance with Rule 97D2 of the
NESC.
(c) Lowering of neutral conductor on overhead distribution lines.
(1) It is permissible to lower the neutral attachment on standard
construction pole-
[[Page 265]]
top assemblies an additional distance not exceeding two feet (0.6 m) for
the purpose of economically meeting the clearance requirements of the
NESC.
(2) It is permissible to lower the transformer and associated
neutral attachment up to two feet (0.6 m) to provide adequate clearance
between the cutouts and single-phase, conventional distribution
transformers.
(3) It is permissible to lower the neutral attachment on standard
construction pole-top assemblies an additional distance of up to six
feet (2 m) for the purpose of performing construction and future line
maintenance on these assemblies from bucket trucks designed for such
work.
[63 FR 35314, June 29, 1998, as amended at 69 FR 18803, Apr. 9, 2004]
Sec. 1724.53 Preparation of plans and specifications.
The provisions of this section apply to all borrower electric system
facilities regardless of the source of financing.
(a) General. (1) The borrower (acting through the engineer, if
applicable) shall prepare plans and specifications that adequately
represent the construction to be performed.
(2) Plans and specifications for distribution, transmission, or
generating facilities must be based on a construction work plan (as
amended, if applicable), engineering study or construction program which
has been approved by RUS if financing for the facilities will at any
time be requested from RUS.
(b) Composition of plans and specifications package. (1) Whether
built by force account or contract, each set of plans and specifications
must include:
(i) Distribution lines. Specifications and drawings, staking sheets,
key map and appropriate detail maps;
(ii) Transmission lines. Specifications and drawings, transmission
line design data manual, vicinity maps of the project, a one-line
diagram, and plan and profile sheets;
(iii) Substations. Specifications and drawings, including a one-line
diagram, plot and foundation plan, grounding plan, and plans and
elevations of structure and equipment, as well as all other necessary
construction drawings, in sufficient detail to show phase spacing and
ground clearances of live parts;
(iv) Headquarters. Specifications and drawings, including:
(A) A plot plan showing the location of the proposed building plus
paving and site development;
(B) A one line drawing (floor plan and elevation view), to scale, of
the proposed building with overall dimensions shown; and
(C) An outline specification including materials to be used (type of
frame, exterior finish, foundation, insulation, etc.); and
(v) Other facilities (e.g., generation and communications and
control facilities). Specifications and drawings, as necessary and in
sufficient detail to accurately define the scope and quality of work
required.
(2) For contract work, the appropriate standard RUS construction
contract form shall be used as required by part 1726 of this chapter.
Sec. 1724.54 Requirements for RUS approval of plans and specifications.
The provisions of this section apply only to RUS financed electric
system facilities.
(a) For any contract subject to RUS approval in accordance with part
1726 of this chapter, the borrower shall obtain RUS approval of the
plans and specifications, as part of the proposed bid package, prior to
requesting bids. RUS may require approval of other plans and
specifications on a case by case basis.
(b) Distribution lines. RUS approval of the plans and specifications
for distribution line construction is not required if standard RUS
drawings, specifications, RUS accepted material, and standard RUS
contract forms (as required by part 1726 of this chapter) are used.
Drawings, plans and specifications for nonstandard distribution
construction must be submitted to RUS and receive approval prior to
requesting bids on contracts or commencement of force account
construction.
(c) Transmission lines. (1) Plans and specifications for
transmission construction projects which are not based on RUS approved
line design data or do not use RUS standard structures must
[[Page 266]]
receive RUS approval prior to requesting bids on contracts or
commencement of force account construction.
(2) Unless RUS approval is required by paragraph (a) of this
section, plans and specifications for transmission construction which
use previously approved design data and standard structures do not
require RUS approval. Plans and specifications for related work, such as
right-of-way clearing, equipment, and materials, do not require RUS
approval unless required by paragraph (a) of this section.
(d) Substations. (1)(i) Plans and specifications for all new
substations must receive RUS approval prior to requesting bids on
contracts or commencement of force account construction, unless:
(A) The substation design has been previously approved by RUS; and
(B) No significant NESC revisions have occurred.
(ii) The borrower shall notify RUS in writing that a previously
approved design will be used, including identification of the previously
approved design.
(2) Unless RUS approval is required by paragraph (a) of this
section, plans and specifications for substation modifications and for
substations using previously approved designs do not require RUS
approval.
(e) Generation facilities. (1) This paragraph (e) covers all
portions of a generating plant including plant buildings, the generator
step-up transformer, and the transmission switchyard at a generating
plant. Warehouses and equipment service buildings not associated with
generation plants are covered under paragraph (f) of this section.
(2) The borrower shall obtain RUS approval, prior to issuing
invitations to bid, of the terms and conditions for all generating plant
equipment or construction contracts which will cost $1,500,000 or more.
Unless RUS approval is required by paragraph (a) of this section, plans
and specifications for generating plant equipment and construction do
not require RUS approval.
(f) Headquarters buildings. (1) This paragraph (f) covers office
buildings, warehouses, and equipment service buildings. Generating plant
buildings are covered under paragraph (e) of this section.
(2) Unless RUS approval is required by paragraph (a) of this
section, plans and specifications for headquarters buildings do not
require RUS approval. The borrower shall submit two copies of RUS Form
740g, Application for Headquarters Facilities. This form is available
from Program Development and Regulatory Analysis, Rural Utilities
Service, United States Department of Agriculture, Stop 1522, 1400
Independence Ave., SW., Washington, DC 20250-1522. The application must
show floor area and estimated cost breakdown between office building
space and space for equipment warehousing and service facilities, and
include a one line drawing (floor plan and elevation view), to scale, of
the proposed building with overall dimensions shown. The information
concerning the planned building may be included in the borrower's
construction work plan in lieu of submitting it with the application.
(See 7 CFR part 1710, subpart F.) Prior to issuing the plans and
specifications for bid, the borrower shall also submit to RUS a
statement, signed by the architect or engineer, that the building design
meets the Uniform Federal Accessibility Standards (See Sec.
1724.51(e)(1)(i)).
(g) Communications and control facilities. (1) This paragraph (g)
covers microwave and powerline carrier communications systems, load
control, and supervisory control and data acquisition (SCADA) systems.
(2) The borrower shall obtain RUS approval, prior to issuing
invitations to bid, of the terms and conditions for communications and
control facilities contracts which will cost $500,000 or more. Unless
RUS approval is required by paragraph (a) of this section, plans and
specifications for communications and control facilities do not require
RUS approval.
(h) Terms and conditions include the RUS standard form of contract,
general and special conditions, and any other non-technical provisions
of the contract. Terms and conditions which have received RUS approval
in connection with a previous contract for a particular borrower are
considered approved by RUS for that borrower.
[63 FR 35314, June 29, 1998, as amended at 65 FR 63196, Oct. 23, 2000]
[[Page 267]]
Sec. 1724.55 Dam safety.
(a) The provisions of this section apply only to RUS financed
electric system facilities.
(1)(i) Any borrower that owns or operates a RUS financed dam must
utilize the``Federal Guidelines for Dam Safety,''(Guidelines), as
applicable. A dam, as more fully defined in the Guidelines, is generally
any artificial barrier which either:
(A) Is 25 feet (8 m) or more in height; or
(B) Has an impounding capacity at maximum water storage elevation of
55 acre-feet (68,000 m\3\) or more.
(ii) The``Federal Guidelines for Dam Safety,''FEMA 93, June, 1979,
published by the Federal Emergency Management Agency (FEMA), is hereby
incorporated by reference. This incorporation by reference is approved
by the Director of the Office of the Federal Register in accordance with
5 U.S.C. 552(a) and 1 CFR part 51. Copies of the``Federal Guidelines for
Dam Safety''may be obtained from the Federal Emergency Management
Agency, Mitigation Directorate, PO Box 2012, Jessup, MD 20794. It is
also available for inspection during normal business hours at RUS,
Electric Staff Division, 1400 Independence Avenue, SW., Washington, DC,
Room 1246-S, and at the National Archives and Records Administration
(NARA). For information on the availability of this material at NARA,
call 202-741-6030, or go to: http://www.archives.gov/federal--register/
code--of--federal--regulations/ibr--locations.html.
(2) The borrower shall evaluate the hazard potential of its dams in
accordance with Appendix E of the U.S. Army Corps of Engineers
Engineering and Design Dam Safety Assurance Program, ER 1110-2-1155,
July 31, 1995. A summary of the hazard potential criteria is included
for information as Appendix A to this subpart. The U.S. Army Corps of
Engineers Engineering and Design Dam Safety Assurance Program, ER 1110-
2-1155, July 31, 1995, published by the United States Army Corps of
Engineers, is hereby incorporated by reference. This incorporation by
reference is approved by the Director of the Office of the Federal
Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies of
the U. S. Army Corps of Engineers Engineering and Design Dam Safety
Assurance Program may be obtained from the U. S. Army Corps of
Engineers, Publications Depot, 2803 52nd Ave., Hyattsville, MD 20781. It
is also available for inspection during normal business hours at RUS,
Electric Staff Division, 1400 Independence Avenue, SW., Washington, DC,
Room 1246-S, and at the National Archives and Records Administration
(NARA). For information on the availability of this material at NARA,
call 202-741-6030, or go to: http://www.archives.gov/federal--register/
code--of--federal--regulations/ibr--locations.html.
(3) For high hazard potential dams, the borrower must obtain an
independent review of the design and critical features of construction.
The reviewer must have demonstrated experience in the design and
construction of dams of a similar size and nature. The reviewer must be
a qualified engineer not involved in the original design of the dam or a
Federal or State agency responsible for dam safety. The reviewer must be
approved by RUS.
(4) The independent review of design must include, but not
necessarily be limited to, plans, specifications, design calculations,
subsurface investigation reports, hydrology reports, and redesigns which
result from encountering unanticipated or unusual conditions during
construction.
(5) The independent review of construction shall include:
(i) Foundation preparation and treatment. When the foundation has
been excavated and exposed, and before critical structures such as earth
embankments or concrete structures are placed thereon, the borrower
shall require the reviewer to conduct an independent examination of the
foundation to ensure that suitable foundation material has been reached
and that the measures proposed for treatment of the foundation are
adequate. This examination must extend to the preparation and treatment
of the foundation for the abutments.
(ii) Fill placement. During initial placement of compacted fill
materials, the borrower shall require the reviewer to conduct an
independent examination
[[Page 268]]
to ensure that the materials being used in the various zones are
suitable and that the placement and compaction procedures being used by
the contractor will result in a properly constructed embankment.
(6) If the reviewer disagrees with any aspect of the design or
construction which could affect the safety of the dam, then the borrower
must meet with the design engineer and the reviewer to resolve the
disagreements.
(7) Emergency action plan. For high hazard potential dams, the
borrower must develop an emergency action plan incorporating preplanned
emergency measures to be taken prior to and following a potential dam
failure. The plan should be coordinated with local government and other
authorities involved with the public safety and be approved by the
borrower's board of directors.
(b)(1) For more information and guidance, the following publications
regarding dam safety are available from FEMA:
(i)``Emergency Action Planning Guidelines for Dams,''FEMA 64.
(ii)``Federal Guidelines for Earthquake Analysis and Design of
Dams,''FEMA 65.
(iii)``Federal Guidelines for Selecting and Accommodating Inflow
Design Floods for Dams,''FEMA 94.
(iv)``Dam Safety: An Owner's Guidance Manual,''FEMA 145, August,
1987.
(2) These publications may be obtained from the Federal Emergency
Management Agency, Mitigation Directorate, PO Box 2012, Jessup, MD
20794.
[63 FR 35314, June 29, 1998, as amended at 69 FR 18803, Apr. 9, 2004]
Sec. Sec. 1724.56-1724.69 [Reserved]
Appendix A to Subpart E of Part 1724--Hazard Potential Classification
for Civil Works Projects
The source for this appendix is U.S. Army Corps of Engineers
Engineering and Design Dam Safety Assurance Program, ER 1110-2-1155,
Appendix E. Appendix E is available from the address listed in Sec.
1724.55(a)(2).
[[Page 269]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Category \1\ Low Significant High
--------------------------------------------------------------------------------------------------------------------------------------------------------
Direct Loss of Life \2\..................... None expected (due to rural Uncertain (rural location with few Certain (one or more extensive
location with no permanent residences and only transient or residential, commercial or
structures for human habitation) industrial development) industrial development).
Lifeline Losses \3\......................... No disruption of services--repairs Disruption of essential facilities Disruption of critical facilities
are cosmetic or rapidly repairable and access and access.
damage
Property Losses \4\......................... Private agricultural lands, Major public and private Extensive public and private
equipment and isolated buildings facilities facilities.
Environmental Losses \5\.................... Minimal incremental damage Major mitigation required Extensive mitigation cost or
impossible to mitigate.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\1\ Categories are based upon project performance and do not apply to individual structures within a project.
\2\ Loss of life potential based upon inundation mapping of area downstream of the project. Analysis of loss of life potential should take into account
the extent of development and associated population at risk, time of flood wave travel and warning time.
\3\ Indirect threats to life caused by the interruption of lifeline services due to project failure, or operation, i.e., direct loss of (or access to)
critical medical facilities or loss of water or power supply, communications, power supply, etc.
\4\ Direct economic impact of value of property damages to project facilities and down stream property and indirect economic impact due to loss of
project services, i.e., impact on navigation industry of the loss of a dam and navigation pool, or impact upon a community of the loss of water or
power supply.
\5\ Environmental impact downstream caused by the incremental flood wave produced by the project failure, beyond which would normally be expected for
the magnitude flood event under a without project conditions.
[[Page 270]]
Subpart F_RUS Contract Forms
Sec. 1724.70 Standard forms of contracts for borrowers.
(a) General. The standard loan agreement between RUS and its
borrowers provides that, in accordance with applicable RUS regulations
in this chapter, the borrower shall use standard forms of contract
promulgated by RUS for construction, procurement, engineering services,
and architectural services financed by a loan made or guaranteed by RUS.
(See section 5.16 of appendix A to subpart C of part 1718 of this
chapter.) This subpart prescribes RUS procedures in promulgating
electric program standard contract forms and identifies those forms that
borrowers are required to use.
(b) Contract forms. RUS promulgates standard contract forms,
identified in the List of Required Contract Forms, Sec. 1724.74(c),
that borrowers are required to use in accordance with the provisions of
this part. In addition, RUS promulgates standard contract forms
identified in the List of Guidance Contract Forms contained in Sec.
1724.74(c) that the borrowers may but are not required to use in the
planning, design, and construction of their electric systems. Borrowers
are not required to use these guidance contract forms in the absence of
an agreement to do so.
[63 FR 58284, Oct. 30, 1998]
Sec. 1724.71 Borrower contractual obligations.
(a) Loan agreement. As a condition of a loan or loan guarantee under
the RE Act, borrowers are normally required to enter into RUS loan
agreements pursuant to which the borrower agrees to use RUS standard
forms of contracts for construction, procurement, engineering services
and architectural services financed in whole or in part by the RUS loan.
Normally, this obligation is contained in section 5.16 of the loan
contract. To comply with the provisions of the loan agreements as
implemented by this part, borrowers must use those forms of contract
(hereinafter sometimes called``listed contract forms'') identified in
the List of Required Standard Contract Forms contained in Sec.
1724.74(c).
(b) Compliance. If a borrower is required by this part or by its
loan agreement with RUS to use a listed standard form of contract, the
borrower shall use the listed contract form in the format available from
RUS, either paper or electronic format. Exact electronic reproduction is
acceptable. The approved RUS standard forms of contract shall not be
retyped, changed, modified, or altered in any manner not specifically
authorized in this part or approved by RUS in writing on a case-by-case
basis. Any modifications approved by RUS on a case-by-case basis must be
clearly shown so as to indicate the modification difference from the
standard form of contract.
(c) Amendment. Where a borrower has entered into a contract in the
form required by this part, no change may be made in the terms of the
contract, by amendment, waiver or otherwise, without the prior written
approval of RUS.
(d) Waiver. RUS may waive for good cause, on a case by case basis,
the requirements imposed on a borrower pursuant to this part. Borrowers
seeking a waiver by RUS must provide RUS with a written request
explaining the need for the waiver.
(e) Violations. A failure on the part of the borrower to use listed
contracts as prescribed in this part is a violation of the terms of its
loan agreement with RUS and RUS may exercise any and all remedies
available under the terms of the agreement or otherwise.
[63 FR 58285, Oct. 30, 1998, as amended at 69 FR 7108, Feb. 13, 2004]
Sec. 1724.72 Notice and publication of listed contract forms.
(a) Notice. Upon initially entering into a loan agreement with RUS,
borrowers will be provided with all listed contract forms. Thereafter,
new or revised listed contract forms promulgated by RUS, including RUS
approved exceptions and alternatives, will be sent by regular or
electronic mail to the address of the borrower as identified in its loan
agreement with RUS.
(b) Availability. Listed contract forms are published by RUS.
Interested parties may obtain the forms from: Rural Utilities Service,
Program Development and Regulatory Analysis, U.S. Department of
Agriculture, Stop 1522,
[[Page 271]]
1400 Independence Avenue, SW., Stop 1522, Washington, DC 20250-1522,
telephone number (202) 720-8674. The list of contract forms can be found
in Sec. 1724.74(c), List of Required Contract Forms.
[63 FR 58285, Oct. 30, 1998]
Sec. 1724.73 Promulgation of new or revised contract forms.
RUS may, from time to time, undertake to promulgate new contract
forms or revise or eliminate existing contract forms. In so doing, RUS
shall publish notice of rulemaking in the Federal Register announcing,
as appropriate, a revision in, or a proposal to amend Sec. 1724.74,
List of Electric Program Standard Contract Forms. The amendment may
change the existing identification of a listed contract form; for
example, changing the issuance date of a listed contract form or by
identifying a new required contract form. The notice of rulemaking will
describe the new standard contract form or the substantive change in the
listed contract form, as the case may be, and the issues involved. The
standard contract form or relevant portions thereof may be appended to
the supplementary information section of the notice of rulemaking. As
appropriate, the notice of rulemaking shall provide an opportunity for
interested persons to provide comments. A copy of each such Federal
Register document shall be sent by regular or electronic mail to all
borrowers.
[63 FR 58285, Oct. 30, 1998]
Sec. 1724.74 List of electric program standard contract forms.
(a) General. The following is a list of RUS electric program
standard contract forms for architectural and engineering services.
Paragraph (c) of this section contains the list of required contract
forms, i.e., those forms of contracts that borrowers are required to use
by the terms of their RUS loan agreements as implemented by the
provisions of this part. Paragraph (d) of this section contains the list
of guidance contract forms, i.e., those forms of contracts provided as
guidance to borrowers in the planning, design, and construction of their
systems. All of these forms are available from RUS. See Sec. 1724.72(b)
for availability of these forms.
(b) Issuance date. Where required by this part to use a standard
form of contract in connection with RUS financing, the borrower shall
use that form identified by issuance date in the List of Required
Contract Forms in paragraph (c) of this section, as most recently
published as of the date the borrower executes the contract.
(c) List of required contract forms. (1) RUS Form 211, Rev. 4-04,
Engineering Service Contract for the Design and Construction of a
Generating Plant. This form is used for engineering services for
generating plant construction.
(2) RUS Form 220, Rev. 6-98, Architectural Services Contract. This
form is used for architectural services for building construction.
(3) RUS Form 236, Rev. 6-98, Engineering Service Contract--Electric
System Design and Construction. This form is used for engineering
services for distribution, transmission, substation, and communications
and control facilities.
(d) List of guidance contract forms. (1) RUS Form 179, Rev. 9-66,
Architects and Engineers Qualifications. This form is used to document
architects and engineers qualifications.
(2) RUS Form 215, Rev. 5-67, Engineering Service Contract--System
Planning. This form is used for engineering services for system
planning.
(3) RUS Form 234, Rev. 3-57, Final Statement of Engineering Fee.
This form is used for the closeout of engineering services contracts.
(4) RUS Form 241, Rev. 3-56, Amendment of Engineering Service
Contract. This form is used for amending engineering service contracts.
(5) RUS Form 244, Rev. 12-55, Engineering Service Contract--Special
Services. This form is used for miscellaneous engineering services.
(6) RUS Form 258, Rev. 4-58, Amendment of Engineering Service
Contract--Additional Project. This form is used for amending engineering
service contracts to add an additional project.
(7) RUS Form 284, Rev. 4-72, Final Statement of Cost for
Architectural Service. This form is used for the closeout of
architectural services contracts.
[[Page 272]]
(8) RUS Form 297, Rev. 12-55, Engineering Service Contract--Retainer
for Consultation Service. This form is used for engineering services for
consultation service on a retainer basis.
(9) RUS Form 459, Rev. 9-58, Engineering Service Contract--Power
Study. This form is used for engineering services for power studies.
[63 FR 58285, Oct. 30, 1998, as amended at 65 FR 63196, Oct. 23, 2000;
69 FR 52595, Aug. 27, 2004]
Sec. Sec. 1724.75-1724.99 [Reserved]