[Federal Register: November 8, 2004 (Volume 69, Number 215)]
[Proposed Rules]
[Page 64689-64690]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08no04-16]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 64689]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1717
RIN 0572-AB97
Elimination of Operational Controls
AGENCY: Rural Utilities Service, USDA.
ACTION: Proposed rule.
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SUMMARY: Rural Utilities Service (RUS), an agency delivering the United
States Department of Agriculture's Rural Development utilities
programs, proposes to amend 7 CFR Part 1717, Subpart M, Operational
Controls (Subpart M), by eliminating the provisions thereof.
Subpart M was promulgated as a compliment to the ``new''
distribution borrower loan documents established in 1995, and was
intended to cut back the broad reach of certain of the operational
controls contained in the loan documents executed prior to 1995. Since
1995, approximately 88 percent of distribution borrowers have
transitioned to the new forms of mortgage and loan contract, either by
receiving new loans from RUS or by executing new documents for existing
loans. Operational controls for these borrowers are contained in the
new forms of loan contract and mortgage, and in other RUS regulations.
Operational controls for the remaining distribution borrowers are
contained in the pre-1995 loan documents, Subpart M, and other RUS
regulations.
This amendment will eliminate the provisions of Subpart M, thereby
removing a confusing and cumbersome dual system of operational
controls. Distribution borrowers subject to the pre-1995 documents may
transition to the new loan documents. For those borrowers that do not
transition, operational control decision making will be made on a case-
by-case basis, using, to the extent possible, the level of control
contained in the new loan contract and mortgage.
DATES: Written comments must be received by RUS or carry a postmark or
equivalent no later than January 7, 2005.
ADDRESSES: Submit comments by any of the following methods:
Federal eRulemaking Portal: Go to http://www.regulations.gov.
Follow the online instruction for submitting
comments.
Agency Web site: http://www.usda.gov/rus/index2.Comments.htm.
Follow the instructions for submitting comments. E-mail: RUSComments@usda.gov. Include in the subject line
of the message ``7 CFR 1717.''
Mail: Addressed to Richard Annan, Acting Director, Program
Development and Regulatory Analysis, Rural Utilities Service, United
States Department of Agriculture, 1400 Independence Avenue, STOP 1522,
Washington, DC 20250-1522. RUS requests a signed original and three
copies of all comments (7 CFR 1700.4).
Hand Delivery/Courier: Addressed to Richard Annan, Acting
Director, Program Development and Regulatory Analysis, Rural Utilities
Service, United States Department of Agriculture, 1400 Independence
Avenue, SW., Room 5168-S, Washington, DC 20250-1522.
All comments received will be made available for public
inspection at room 5168, South Building, Washington, DC, between the 8
a.m. and 4 p.m. (7 CFR part 1.27(b)).
FOR FURTHER INFORMATION CONTACT: Doris A. Nolte, Chief, Policy Analysis
and Loan Management Staff, Rural Utilities Service, Electric Program,
Room 5155 South Building, Stop 1560, 1400 Independence Ave., SW.,
Washington, DC 20250-1560, Telephone: 202-720-0424, FAX: 202-690-0717,
E-mail: doris.nolte@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 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 an action against the Department or its agencies may
be initiated.
Regulatory Flexibility Act Certification
Pursuant to 5 U.S.C. 553(a)(2), this proposed rule related to loans
is exempt from the rulemaking requirements of the Administrative
Procedure Act, 5 U.S.C. 551 et seq., including the requirement to
provide prior notice and an opportunity for public comment. Because
this proposed rule is not subject to a requirement to provide prior
notice and an opportunity for public comment pursuant to 5 U.S.C. 553,
or any other law, the analytical requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq. are inapplicable.
Information Collection and Recordkeeping Requirements
This rule contains no additional information collection or
recordkeeping requirements that 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 of 1995) 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.
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National Environmental Policy Act Certification
The Administrator of RUS has determined that this rule will not
significantly affect the quality of the 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.
Executive Order 13132, Federalism
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 states is not required.
Background: On July 18, 1995, RUS published a final rule (60 FR
36882) establishing new RUS policies and requirements for mortgages
used to secure direct and guaranteed loans made to electric
distribution borrowers. The final rule became effective on August 17,
1995. On December 29, 1995, RUS published a final rule (60 FR 67396) to
establish new RUS policies and requirements for loan contracts
ordinarily required for loans made to electric distribution borrowers;
this rule became effective on January 29, 1995. These new policies and
requirements reduced RUS oversight of borrowers' operational decisions,
allowing RUS to tailor its operational control to a borrower's
individual lending circumstances and credit risks.
The ``new'' forms of mortgages and loan contracts (Current
Documents) used by RUS for distribution loans and loan guarantees made
after January 29, 1996 reflect these policies and requirements.
Distribution borrowers (Legacy Borrowers) with loans and loan
guarantees made prior to January 29, 1996 under the ``old'' forms of
mortgages and loan contracts (Legacy Documents) have been encouraged to
execute the Current Documents, and to date approximately 88% of Legacy
Borrowers have replaced their Legacy Documents with Current Documents,
either by obtaining a new loan or loan guarantee from RUS or by
substituting New Documents for Legacy Documents.
The December 29, 1995 rulemaking also established Subpart M. The
purpose of Subpart M was to cut back the broad reach of certain
operational controls contained in the Legacy Documents through waivers
and exemptions, thereby bringing the operational controls applicable to
Legacy Borrowers more in line with those applicable to distribution
borrowers under the Current Documents.
RUS believes that maintaining two sources of operational controls
(i.e. the Current Documents, and the Legacy Documents supplemented by
Subpart M) creates a confusing dual system that is no longer necessary
to provide RUS with an appropriate level of operational control over
its distribution loans and loan guarantees. As stated above, the vast
majority of RUS electric borrowers have transitioned to the Current
Documents, and all future loans and loan guarantees to Legacy Borrowers
will be made using the Current Documents. Legacy Borrowers who do not
anticipate new RUS loans may, by request, execute the Current Documents
for their existing loans, and are encouraged to do so. For those Legacy
Borrowers who chose to retain the Legacy Documents, RUS will conduct
operational control decision making on a case-by-case basis, taking
into consideration the unique characteristics of each Legacy Borrower
and, in most cases, applying that level of operational controls
contemplated in the Current Documents. For these reasons, RUS proposes
to eliminate the provisions of, and reserve, Subpart M.
List of Subjects in 7 CFR Part 1717
Administrative practice and procedure, Electric power, Electric
power rates, 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 proposed to be 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 M--Operational Controls
2. Subpart M is removed and reserved.
Dated: October 29, 2004.
Curtis M. Anderson,
Acting Administrator, Rural Utilities Service.
[FR Doc. 04-24789 Filed 11-5-04; 8:45 am]
BILLING CODE 3410-15-P