[Federal Register Volume 63, Number 63 (Thursday, April 2, 1998)]
[Rules and Regulations]
[Pages 16085-16088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8588]



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 Rules and Regulations
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  Federal Register / Vol. 63, No. 63 / Thursday, April 2, 1998 / Rules 
and Regulations  

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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1700


General Information, Organization and Functions, and Loan Making 
Authority

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Utilities Service (RUS) hereby revises its 
description of its functions and responsibilities and delegations of 
authority to reflect recent changes in organizational structure, update 
RUS addresses and phone numbers, and add information about electronic 
availability of information. These revisions are intended to guide and 
assist the public.

EFFECTIVE DATE: April 2, 1998.

FOR FURTHER INFORMATION CONTACT: F. Lamont Heppe, Jr., Director, 
Program Development and Regulatory Analysis, Rural Utilities Service, 
U.S. Department of Agriculture, Room 4034-S, 1400 Independence Avenue, 
SW., STOP 1522, Washington, DC 20250-1522. Telephone: 202-720-0736. FAX 
202-720-4120. e-mail [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6941 et seq.) required the Secretary of Agriculture to establish and 
maintain the Rural Utilities Service (RUS) within the Department. On 
October 20, 1994, Secretary's Memorandum 1010-1, abolished the Rural 
Electrification Administration (REA) and established RUS as its 
successor and as required by the Reorganization Act.
    The functions of RUS include administration of the electric and 
telecommunications loan programs formerly administered by the Rural 
Electrification Administration, and of the water and waste disposal 
loan and grant programs formerly administered by the Rural Development 
Administration. This rule describes the current organizational 
structure of RUS and the methods by which its functions are channeled.
    This rule relates to internal agency management. Therefore, 
pursuant to 5 U.S.C. 553, notice of proposed rulemaking and opportunity 
to comment thereon are not required, this rule may be effective 
immediately. Further, since this rule relates to internal agency 
management, it is exempt from the provisions of Executive Order 12866 
and Executive Order 12988. Finally, this is not a rule as defined by 
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (the Act), and 
therefore, the Act does not apply.

List of Subjects in 7 CFR Part 1700

    Authority delegations (Government agencies), Community development, 
Community facilities, Electric power, Freedom of information, Grant 
programs--communications, Grant programs--education, Grant programs--
housing and community development, Loan progams--communications, Loan 
programs--education, Loan programs--energy, Loan Program--housing and 
community development, Organization and functions (Government 
agencies), Rural areas, Telecommunications, Telephone, Waste treatment 
and disposal, Water supply.

    Accordingly, 7 CFR part 1700 is revised to read as follows:

PART 1700--GENERAL INFORMATION

Subpart A--General

Sec.
1700.1  General.
1700.2  Availability of information.
1700.3  Requests under the Freedom of Information Act.
1700.4  Public comments on proposed rules.
1700.5--1700.24  [Reserved]

Subpart B--Agency Organization and Functions

1700.25  Office of the Administrator.
1700.26  Deputy Administrators.
1700.27  Electric Program.
1700.28  Telecommunications Program.
1700.29  Water and Environmental Programs.
1700.30  Distance Learning and Telemedicine Loan and Grant Program.
1700.31  Program Accounting and Regulatory Analysis.
1700.32  Financial Services Staff.
1700.33--1700.49  [Reserved]

Subpart C--Loan and Grant Approval Authorities

1700.50--1700.52  [Reserved]
1700.53  Persons serving as Acting Administrator.
1700.54  Electric Program.
1700.55  Telecommunications Program.
1700.56  Water and Environmental Programs.
1700.57  Distance Learning and Telemedicine Loan and Grant Program.

    Authority: 5 U.S.C. 301, 552; 7 U.S.C. 901 et seq., 1921 et 
seq., 6941 et seq.; 7 CFR 2.7.

Subpart A--General


Sec. 1700.1  General.

    (a) The Rural Electrification Administration (REA) was established 
by Executive Order No. 7037 on May 11, 1935. Statutory authority was 
provided by the Rural Electrification Act of 1936 (RE Act) (7 U.S.C. 
901). The RE Act established REA as a lending agency with 
responsibility for developing a program for rural electrification.
    (b) On October 28, 1949, the RE Act was amended to authorize REA to 
make loans to improve and extend telephone service in rural areas. The 
Rural Telephone Bank (RTB), an agency of the United States, was 
established by amendment to the RE Act, approved May 7, 1971. The 
Administrator of RUS serves as the Bank's chief executive with the 
title of Governor.
    (c) The Secretary of Agriculture (Secretary) established the Rural 
Utilities Service (RUS) on October 20, 1994, pursuant to the Department 
of Agriculture Reorganization Act of 1994, (7 U.S.C. 6941 et seq.). RUS 
was assigned responsibility for administering electric and 
telecommunications loan and loan guarantee programs previously 
administered by REA, including programs of the Rural Telephone Bank 
(RTB), and water and waste loans and grants previously administered by 
the Rural Development Administration, along with other functions as the 
Secretary determined appropriate. The rights, interests, obligations, 
duties, and contracts previously vested in REA were transferred to, and 
vested in RUS.


Sec. 1700.2  Availability of information.

    (a) The offices of RUS are located in the South Building of the 
United States Department of Agriculture at 1400 Independence Avenue, 
SW,

[[Page 16086]]

Washington, DC 20250-1500. Hours of operation are from 8:15 AM to 4:45 
PM, Eastern time on Federal Government business days.
    (b) Information about RUS is available for public inspection and 
copying as required by the Freedom of Information Act, 5 U.S.C. 552 et 
seq. Information about availability and costs of agency publications 
and other agency materials is available from the Director, Program 
Development and Regulatory Analysis, Rural Utilities Service, United 
States Department of Agriculture, Room 4034-S, 1400 Independence 
Avenue, SW, STOP 1522, Washington, DC 20250-1522. Phone 202-720-0736. 
FAX 202-720-4120.
    (c) RUS issues indexes of publications in conformance with the 
Freedom of Information Act and Department of Agriculture regulations at 
7 CFR part 1. Many RUS issuances, including regulations, delegations of 
authority for headquarters and field staff, and other documents, are 
available on the world wide web at http://www.usda.gov/rus. Single hard 
copies of publications, forms, forms of basic loan and security 
instruments, and other materials are available either directly from 
RUS, from the Superintendent of Documents, U.S. Government Printing 
Office, Washington DC 20402, or from another source as identified. 
Costs for these publications are established in conformance with 7 CFR 
part 1.


Sec. 1700.3  Requests under the Freedom of Information Act.

    Department of Agriculture procedures for requests for official 
records under the Freedom of Information Act are found at 7 CFR part 1. 
Requests must be in writing and may be submitted in person or by mail 
to United States Department of Agriculture, Rural Development, Room 
0164-S, 1400 Independence Avenue, SW, STOP 0742, Washington, DC 20250-
0742; or by FAX to 202-720-1915. As set forth in 7 CFR 1.16, fees may 
be charged for processing of requests for records. An appeal of the 
agency determination concerning the request for official records shall 
be made in writing to the Administrator, Rural Utilities Service, 
United States Department of Agriculture, Room 4051-S, 1400 Independence 
Avenue, SW, STOP 1510, Washington, DC 20250-1500.


Sec. 1700.4  Public comments on proposed rules.

    RUS requires that all persons submitting comments to a proposed 
rule or other document published by the agency in the Federal Register 
submit, in hard copy, a signed original and three copies of their 
comments to the address shown in the preamble to the proposed rule. 
Copies of comments submitted are available to the public in conformance 
with 7 CFR part 1.


Secs. 1700.5-1700.24  [Reserved]

Subpart B--Agency Organization and Functions


Sec. 1700.25  Office of the Administrator.

    The Administrator, who also serves as Governor of the RTB, is 
appointed by the President, with the advice and consent of the Senate. 
The Under Secretary, Rural Development delegated to the Administrator, 
in 7 CFR part 2, responsibility for administering the programs and 
activities of RUS and RTB. The Administrator is aided directly by 
Deputy Administrators and by Assistant Administrators for the electric 
program, telecommunications program, the water and environmental 
programs, and program accounting and regulatory analysis, and by other 
staff offices. The work of the agency is carried out as described in 
this part.


Sec. 1700.26  Deputy Administrators.

    Deputy Administrators aid and assist the Administrator. The Deputy 
Administrator, Program Policy and Telecommunications, provides overall 
policy direction to all RUS programs and directs and coordinates the 
telecommunications programs. The Deputy Administrator, Water and 
Environmental Programs, directs and coordinates the agency's water and 
waste disposal programs. The Deputy Administrators review agency 
policies in these areas and, as necessary, implement changes, and 
participate with the Administrator and other officials in planning and 
formulating the programs and activities of the agency, including the 
making and servicing of loans and grants.


Sec. 1700.27  Electric Program.

    RUS, through the Electric Program, makes loans and loan guarantees 
for rural electrification and the furnishing of electric service to 
persons in rural areas.
    (a) The Assistant Administrator, Electric Program, directs and 
coordinates the rural electrification programs, participating with the 
Administrator, and others, in planning and formulating the programs and 
activities of the agency, and performs other activities as the 
Administrator may prescribe from time to time.
    (b) Primary point of contact with borrowers. Two regional 
divisions, one for the Northern Region and one for the Southern Region, 
are the primary points of contact between RUS and its electric 
distribution borrowers. Each office administers the rural electric 
program for its assigned geographical area through headquarters staff 
and general field representatives. The Power Supply Division is the 
primary point of contact between RUS and its electric power supply 
borrowers.
    (c) Staff office. The Electric Staff Division is responsible for 
engineering aspects of RUS' standards, specifications and other 
requirements for design, construction, and technical operation and 
maintenance of RUS borrowers' electric systems. The Electric Staff 
Division oversees the activities of Technical Standards Committees 
``A'' and ``B'', Electric, which determine whether engineering 
specifications, drawings, material and equipment are acceptable for use 
in RUS borrowers' electric systems. The Office of the Assistant 
Administrator prepares analyses of loan making activities and the 
business and regulatory environment of RUS borrowers and recommends 
policies and procedures.


Sec. 1700.28  Telecommunications Program.

    RUS and RTB, through the Telecommunications Program, make loans and 
loan guarantees to furnish and improve telecommunications service in 
rural areas.
    (a) The Assistant Administrator, Telecommunications Program, 
directs and coordinates the rural telecommunications programs, 
including the distance learning and telemedicine program, and in 
conjunction with the Administrator and Deputy Administrator, and 
others, the planning and formulating of programs and activities of the 
agency, and performs other activities as the Administrator may 
prescribe from time to time.
    (b) Primary point of contact with borrowers. Three area offices, 
(Eastern, Northwest, and Southwest Areas), are the primary points of 
contact between RUS and all telecommunications program borrowers. Each 
office administers the rural telecommunications program for its 
assigned geographical area with assistance of field representatives 
located in areas assigned to them.
    (c) Staff office. The Telecommunications Staff Division is 
responsible for engineering aspects of design, construction, and 
technical operation and maintenance of rural telecommunications systems 
and facilities, including the activities of Technical Standards 
Committees ``A'' and ``B'', Telecommunications, which determine whether 
engineering

[[Page 16087]]

specifications, drawings, material, and equipment are acceptable for 
use in RUS financed telecommunications systems.


Sec. 1700.29  Water and Environmental Programs.

    RUS, through the Water and Environmental Programs, provides loan 
and grant funds for water and waste disposal projects serving the most 
financially needy rural communities.
    (a) The Assistant Administrator, Water and Environmental Programs, 
develops and institutes plans, procedures, and policies for the 
effective, efficient, and orderly management of Water and Environmental 
Programs responsibilities; provides leadership to ensure execution of 
policies and procedures by the Water and Waste Disposal programs and 
support functions; and performs other activities as the Administrator 
or Deputy Administrator may prescribe from time to time.
    (b) Primary point of contact. The State Rural Development Offices 
are the primary points of contact between RUS and loan and grant 
recipients.
    (c) The Engineering and Environmental Staff is responsible for 
engineering staff activities at all stages of Water and Waste Disposal 
programs implementation, including review of preliminary engineering 
plans and specifications, procurement practices, contract awards, 
construction monitoring, and system operation and maintenance. This 
staff develops agency engineering practices, policies, guidelines, and 
technical data relating to the construction and operation of water and 
waste disposal systems, and for implementing the National Environmental 
Policy Act, and other environmental requirements as they apply to all 
agency programs and activities.


Sec. 1700.30  Distance Learning and Telemedicine Loan and Grant 
Program.

    RUS, through the Telecommunications Program, makes grants and loans 
to furnish and improve telemedicine services and distance learning 
services in rural areas.
    (a) The Assistant Administrator, Telecommunications Program, 
directs and coordinates the distance learning and telemedicine program.
    (b) Primary point of contact with borrowers. The three area 
offices, described in Sec. 1700.28(b) support the distance learning and 
telemedicine program. Each office administers the distance learning and 
telemedicine program for its assigned geographical area with assistance 
of field representatives located in areas assigned to them.


Sec. 1700.31  Program Accounting and Regulatory Analysis.

    RUS, through Program Accounting and Regulatory Analysis, monitors 
and administers applicable regulations, RUS policy, and accounting 
requirements. The staffs assist the Assistant Administrator with 
respect to management, information systems, budgets, and other such 
matters.
    (a) The Assistant Administrator, Program Accounting and Regulatory 
Analysis, directs and coordinates program accounting and financial 
services with respect to electric and telecommunications borrowers and 
directs and coordinates the regulatory actions of the agency.
    (b) This division monitors borrowers' accounting operations in 
order to ensure compliance with applicable statutory and regulatory 
requirements and with the requirements of the Office of Management and 
Budget.
    (c) The two regional branches (the Northern Region and the Southern 
Region) work directly with borrowers. Each regional office has a staff 
of headquarters and field accountants. The Technical Accounting and 
Auditing Staff monitors industry developments, including the standards 
of the Financial Accounting Standards Board, and recommends Agency 
policies and procedures.
    (d) Program Development and Regulatory Analysis directs and 
administers the preparation, clearance, processing, and distribution of 
RUS submissions to the Office of the Federal Register in the form of 
proposed and final rules and notices and RUS bulletins and staff 
instructions.


Sec. 1700.32  Financial Services Staff.

    The Financial Services Staff evaluates the financial condition of 
financially troubled borrowers in order to protect the Government's 
interests.


Secs. 1700.33--1700.49  [Reserved]

Subpart C--Loan and Grant Approval Authorities


Secs. 1700.50--1700.52  [Reserved]


Sec. 1700.53  Persons serving as Acting Administrator.

    The following persons are authorized, in descending order, to act 
for the Administrator when he or she is not on official duty in the 
Washington, DC, Metropolitan Area, is sick, has resigned, or is 
deceased. That is, if the first person on the list is also not on 
official duty in the Washington, DC, Metropolitan Area, is sick, has 
resigned, or is deceased, the second person on the list is authorized 
to act for the Administrator and so on down the list. Persons on this 
list may not redelegate the authority to act as the Administrator. The 
Administrator may in his or her discretion in writing, on a case-by-
case basis, delegate authority to act as Administrator in his or her 
absence outside of this specified order.
    (1) Deputy Administrator, Program Policy and Telecommunications.
    (2) Deputy Administrator, Water and Environmental Programs.
    (3) Assistant Administrator, Electric Program.
    (4) Assistant Administrator, Telecommunications Program.
    (5) Assistant Administrator, Water and Environmental Programs.
    (6) Assistant Administrator, Program Accounting and Regulatory 
Analysis.


Sec. 1700.54  Electric Program.

    (a) Administrator: The authority to approve the following loans, 
loan guarantees, and lien accommodations and subordinations of liens is 
reserved to the Administrator:
    (1) All discretionary hardship loans.
    (2) All loans, loan guarantees, and lien accommodations and 
subordinations of liens to finance operating costs.
    (3) All loans, loan guarantees, and lien accommodations and 
subordinations of liens of more than $20,000,000 for distribution 
borrowers or more than $50,000,000 for power supply borrowers.
    (4) All loans, loan guarantees, and lien accommodations and 
subordinations of liens for distribution borrowers that are members of 
a power supply borrower that is in default of its obligations to the 
Government or that is currently assigned to the Financial Services 
Staff, unless otherwise determined by the Administrator.
    (5) All loans, loan guarantees, and lien accommodations and 
subordinations of liens that require an Environmental Impact Statement.
    (6) Certifications and findings required by the RE Act or other 
applicable laws and regulations, the placing and releasing of 
conditions precedent to the advance of funds, and all security 
instruments, loan contracts, and all other necessary documents relating 
to the authorities reserved in this section.
    (7) Execution of all loan contracts, security instruments, and all 
other documents in connection with loans, loan guarantees, and lien 
accommodations approved by the Administrator.
    (b) The Assistant Administrator, Electric Program, has the 
authority to

[[Page 16088]]

approve the following loans, loan guarantees, and lien accommodations 
and subordinations of liens, except for those approvals reserved to the 
Administrator:
    (1) Loans, loan guarantees, and lien accommodations and 
subordinations of liens for distribution borrowers in amounts not 
exceeding $20,000,000.
    (2) Loans, loan guarantees, and lien accommodations and 
subordinations of liens for power supply borrowers in amounts not 
exceeding $50,000,000.
    (3) Execution of all loan contracts, security instruments, and all 
other documents in connection with loans, loan guarantees, and lien 
accommodations approved by the Assistant Administrator, Electric 
Program.
    (c) Directors, Regional Divisions, have the authority to approve, 
for distribution borrowers:
    (1) Loans, loan guarantees, and lien accommodations and 
subordinations of liens in amounts not exceeding $15,000,000 except for 
those approvals reserved to the Administrator.
    (2) All certifications and findings required by the RE Act or other 
applicable laws and regulations, the imposing and releasing of 
conditions precedent to the advance of loan funds, and all security 
instruments, loan contracts, and all other documents relating to the 
delegations set forth in paragraph (c)(1) of this section.
    (d) Director, Power Supply Division, has the authority to approve 
for power supply borrowers:
    (1) Loans, loan guarantees, and lien accommodations and 
subordinations of liens in amounts not exceeding $30,000,000, except 
for those approvals reserved to the Administrator.
    (2) All certifications and findings required by the RE Act or other 
applicable laws and regulations, the placing and releasing of 
conditions precedent to the advance of funds, and all security 
instruments, loan contracts or all other documents relating to the 
delegations set forth in paragraph (d)(1) of this section.


Sec. 1700.55  Telecommunications Program.

    (a) Administrator: The authority to approve the following loans, 
loan guarantees, and lien accommodations is reserved to the 
Administrator:
    (1) All loans, loan guarantees, and lien accommodations and 
subordinations of liens to finance operating costs.
    (2) All loans, loan guarantees, or lien accommodations and 
subordinations of liens of $25,000,000 or more.
    (3) Loans and loan guarantees with acquisition costs of $5,000,000 
or more.
    (4) Loans and loan guarantees containing funds to refinance 
outstanding debt of more than $5,000,000.
    (5) All loan contracts, security instruments, and all other 
documents to be executed in connection with loans and loan guarantees 
approved by the Administrator.
    (b) Assistant Administrator, Telecommunications Program, has the 
authority to approve the following loans, loan guarantees, and lien 
accommodations, except for those approvals reserved to the 
Administrator:
    (1) Loans, loan guarantees, and lien accommodations and 
subordinations of liens not to exceed $25,000,000 except for those 
reserved to the Administrator.
    (2) Loans and loan guarantees with acquisition costs where the 
acquisition portion of the loan is less than $5,000,000.
    (3) Loans and loan guarantees including refinancing amounts that do 
not exceed $5,000,000.
    (4) Distance learning and telemedicine loans and loan guarantees 
that do not exceed $5,000,000.
    (5) Loan contracts, security instruments, and other documents to be 
executed in connection with loans and loan guarantees approved by the 
Assistant Administrator, Telecommunications Program.
    (c) Area Directors have the authority to approve the following 
loans, loan guarantees, and lien accommodations, except for those 
approvals reserved to the Administrator:
    (1) Loans, loan guarantees, and lien accommodations and 
subordinations of liens of less than $10,000,000.
    (2) Loans and loan guarantees with acquisition costs of less than 
$2,000,000.
    (3) Loans and loan guarantees including refinancing amounts of less 
than $2,000,000.
    (4) Any modifications in the method of carrying out loan purposes.


Sec. 1700.56  Water and Environmental Programs.

    The State Rural Development Offices have the responsibility for 
making and servicing water and waste loans and grants.


Sec. 1700.57  Distance Learning and Telemedicine Loan and Grant 
Program.

    (a) Administrator: The authority to approve the following loans and 
lien accommodations is reserved to the Administrator:
    (1) Grants or loan and grant combinations.
    (2) The number selected from each state for financial assistance 
for grant approval and loans or grants approved.
    (3) Extension of principal and interest repayments for rural 
development purposes.
    (4) Loan contracts, security instruments, and all other documents 
to be executed in connection with loans and loan guarantees approved by 
the Administrator.
    (b) Assistant Administrator, Telecommunications Program, has the 
authority to approve the following loans and lien accommodations and 
subordinations of liens:
    (1) Loans, that do not also include requests for grant funds, 
except for those reserved to the Administrator.
    (2) Loan contracts, security instruments, and all other documents 
to be executed in connection with loans and loan guarantees approved by 
the Assistant Administrator, Telecommunications Program.

    Dated: March 24, 1998.
Jill Long Thompson,
Under Secretary for Rural Development.
[FR Doc. 98-8588 Filed 4-1-98; 8:45 am]
BILLING CODE 3410-15-P