[Federal Register Volume 59, Number 4 (Thursday, January 6, 1994)]
[Notices]
[Pages 730-731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-233]


[[Page Unknown]]

[Federal Register: January 6, 1994]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE
Rural Electrification Administration
Rural Telephone Bank

 

Amendment to the Rural Electrification Act's ``Buy American'' 
Provision

AGENCY: Rural Electrification Administration and Rural Telephone Bank, 
USDA.

ACTION: Notice of Amendment to the Rural Electrification Act's ``Buy 
American'' Provision.

-----------------------------------------------------------------------

SUMMARY: The recently passed North America Free Trade Agreement 
Implementation Act has amended the Rural Electrification Act's ``Buy 
American'' provision. Previously, the provision required borrowers, 
when using loan funds, to purchase only equipment that was manufactured 
in the United States and that was made mostly from materials and 
supplies originating in the United States. The amended provision 
permits borrowers to also purchase equipment, under similar conditions, 
from Canadian or Mexican manufacturers.

FOR FURTHER INFORMATION CONTACT: For telephone program matters: George 
Bagnall, Chief, Engineering Standards Branch, Telecommunications 
Standards Division, Rural Electrification Administration, Room 2846, 
South Building, U.S. Department of Agriculture, Washington DC 20250-
1500, telephone number (202) 720-0698.
    For electric program matters: Harvey L. Bowles, Chairman, Technical 
Standards Committee ``A'' (Electric), Electric Staff Division, Rural 
Electrification Administration, Room 1246, South Building, U.S. 
Department of Agriculture, Washington, DC 20250-1500, telephone number 
(202) 720-0980.

SUPPLEMENTARY INFORMATION: The North American Free Trade Agreement 
Implementation Act, Public Law 103-182, (NAFTA Implementation Act) was 
signed into law on December 8, 1993. Section 381 (d) of Subtitle G of 
Title III of the NAFTA Implementation Act amends the REA ``Buy 
American'' provision established by Section 401 of the Rural 
Electrification Act of 1938, 52 Stat. 313, 318, 7 U.S.C. 901 et. seq., 
(1938 RE Act). The REA ``Buy American'' provision was revised by adding 
``, Mexico, or Canada'' after every reference therein to the ``United 
States.''
    Prior to its amendment by the NAFTA Implementation Act, the 1938 RE 
Act generally required borrowers, when using loan funds, to purchase 
equipment that was manufactured in the United States that was made 
mostly from materials and supplies originating in the United States. 
The NAFTA Implementation Act amendment of the 1938 RE Act takes effect 
on January 1, 1994. Generally speaking, after December 31, 1993, 
borrowers using funds from loans which have been made or guaranteed by 
REA or the Rural Telephone Bank will be able to satisfy REA's ``Buy 
American'' provision by purchasing equipment that has been manufactured 
in North America and made mostly of materials and supplies originating 
in North America, i.e., in the United States, Mexico, or Canada.
    The REA ``Buy American'' provision as revised by the NAFTA 
Implementation Act reads as follows:

    In making loans pursuant to this title and pursuant to the Rural 
Electrification Act of 1936, the Administrator of Rural 
Electrification Administration shall require that, to the extent 
practicable and the cost of which is not unreasonable, the borrower 
agree to use in connection with the expenditure of such funds only 
such unmanufactured articles, materials, and supplies, as have been 
mined or produced in the United States, Mexico, or Canada, and only 
such manufactured articles, materials, and supplies as have been 
manufactured in the United States, Mexico, or Canada substantially 
all from articles, materials or supplies, mined, produced, or 
manufactured, as the case may be, in the United States, Mexico, or 
Canada.

    The amended provision applies to all procurements within REA's 
jurisdiction that commence after December 31, 1993, which involve any 
REA, Rural Telephone Bank or guaranteed loan funds. REA is notifying 
borrowers, as well as Canadian and Mexican manufacturers with current 
REA technically-accepted products, of this change in the REA ``Buy 
American'' provision.
    REA is also making technical revisions to its existing forms of 
loan contracts and loan contract amendments to conform them to the 1938 
RE Act as amended by NAFTA. REA will begin using these revised forms 
for all transactions entered into after December 31, 1993. In addition, 
REA is making similar technical revisions to its recommended forms of 
contracts providing for the purchase of materials and supplies. These 
changes will have no effect on any contract which is fully in effect 
prior to January 1, 1994.

Michael V. Dunn,
Acting Under Secretary, Small Community and Rural Development.
[FR Doc 94-233 Filed 1-5-94; 8:45 am]
BILLING CODE 3410-15-F