[Federal Register Volume 63, Number 166 (Thursday, August 27, 1998)]
[Proposed Rules]
[Pages 45767-45772]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22930]


      
 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 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.
 
 ========================================================================
 

  Federal Register / Vol. 63, No. 166 / Thursday, August 27, 1998 / 
Proposed Rules  

[[Page 45767]]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Parts 1724 and 1726

RIN 0572-AB42


Electric Program Standard Contract Forms

AGENCY: Rural Utilities Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Rural Utilities Service (RUS) is proposing to amend its 
regulations to change the manner in which it publishes the standard 
forms of contracts that borrowers are required to use when contracting 
for construction, procurement, engineering services, or architectural 
services financed through loans made or guaranteed by RUS. The required 
contract forms are currently published in text format in the Code of 
Federal Regulations (CFR). This proposed rule would eliminate this 
unnecessary and burdensome publication in the CFR.

DATES: Comments on the proposed rule must be received by: September 28, 
1998.

ADDRESSES: Written comments should be addressed to F. Lamont Heppe, 
Jr., Director, Program Development and Regulatory Analysis, Rural 
Utilities Service, U.S. Department of Agriculture, Stop 1522, 1400 
Independence Avenue, SW., Washington, DC 20250-1522. Telephone: (202) 
720-9550. RUS requires a signed original and three copies of all 
comments (7 CFR 1700.4). Comments will be available for public 
inspection during regular business hours (7 CFR 1.27(b)).

FOR FURTHER INFORMATION CONTACT: F. Lamont Heppe, Jr., Director, 
Program Development and Regulatory Analysis, Rural Utilities Service, 
U.S. Department of Agriculture, Stop 1522, 1400 Independence Avenue, 
SW., Washington, DC 20250-1522. Telephone: (202) 720-9550. FAX: (202) 
720-4120. E-mail: [email protected].

SUPPLEMENTARY INFORMATION:

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. A final rule entitled ``Department Programs 
and Activities Excluded from Executive Order 12372,'' (50 FR 47034) 
exempted RUS loans and loan guarantees from coverage under this order.

Executive Order 12866

    This rule has been determined to be not significant for the 
purposes of Executive Order 12866 and, therefore, has not been reviewed 
by the Office of Management and Budget (OMB).

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 Sec. 212(e) of the department of 
agriculture Reorganization Act of 1994 (7 USC Sec. 6912(e)) 
administrative appeal procedures, if any, must be exhausted before an 
action against the Department or its agencies may be initiated.

Regulatory Flexibility Act Certification

    The Administrator of RUS has determined that a rule relating to the 
RUS electric loan program is not a rule as defined in the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) and, therefore, the Regulatory 
Flexibility Act does not apply to this rule.

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, the United 
States Government Printing Office, Washington, DC 20402-9325, telephone 
number (202) 512-1800.

Information Collection and Recordkeeping Requirements

    The recordkeeping and reporting burdens contained in this rule have 
been submitted to OMB for approval. The paperwork contained in this 
rule will not be effective until approved by OMB.
    Send questions or comments regarding any aspect of this collection 
of information, including suggestions for reducing the burden, to F. 
Lamont Heppe, Jr., Director, Program Development and Regulatory 
Analysis, Rural Utilities Service, U.S. Department of Agriculture, Stop 
1522, 1400 Independence Avenue, SW., Washington, DC 20250-1522.

Unfunded Mandates

    This rule contains no Federal mandate (under the regulatory 
provision of Title II of the Unfunded Mandate 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 Mandate Reform Act of 1995.

Background

    RUS proposes to change the manner in which it publishes the 
standard forms of contracts that borrowers are required to use when 
contracting for construction, procurement, architectural, or 
engineering services financed through loans made or guaranteed by RUS.
    The standard loan agreement between RUS and its borrowers provides 
that, in accordance with applicable RUS regulations, 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. See section 5.16 of appendix A to 
subpart C to part 1718. RUS currently implements these provisions of 
its loan agreement through parts 1724 and 1726 which generally 
prescribes when and how borrowers are required to use RUS standard form 
contracts and identifies the standard contract forms to be used. Title 
7 CFR

[[Page 45768]]

part 1724 covers engineering and architectural services contract forms, 
and 7 CFR part 1726 covers construction and procurement contract forms.
    The required standard contract forms currently are published in 
full text format in title 7 of the CFR (see, e.g., Secs. 1724.74-
1724.76 and Sec. 1726.312-1726.352.) RUS also publishes forms of 
contracts which serve as guidance to borrowers and which borrowers may 
use at their discretion. All of these forms are available, in a format 
suitable for use as a contract, from RUS or the Government Printing 
Office (GPO), as provided in Sec. 1724.70 and Sec. 1726.300. If an RUS 
borrower is required by part 1724 or 1726 to use a form of contract, 
the borrower must use the contract form in that format available from 
RUS or GPO. RUS believes that the current system of publishing the 
complete text of the contract forms in the CFR is unnecessary and that, 
consistent with the agency's objective to streamline regulatory text 
and to provide borrowers' with a user friendly regulatory system, the 
complete text of the required contract forms should no longer be 
published in the CFR.
    Rather than publish the complete text of the standard contract 
forms in the CFR, RUS proposes to identify in Sec. 1724.74 and 
Sec. 1726.304 all required contract forms by number, issue date, name, 
purpose, and source. To the extent that RUS may be required to publish 
its forms of contract pursuant to section 552(a) of the Administrative 
Procedure Act (APA) (5 U.S.C. 552(a)) or otherwise, such requirement is 
met by the identification of the standard contract forms in parts 1724 
and 1726. Moreover, RUS provides all borrowers with actual notice of 
the forms of contract they are required to use in contracting. As the 
proposed rule states in Sec. 1724.73 and Sec. 1726.303, upon initially 
entering into a loan agreement with RUS, borrowers are provided with 
copies of contract forms. Thereafter, should RUS promulgate new or 
revised standard contract form(s), following the procedures discussed 
below, RUS will revise the list of standard forms as set forth in 
Sec. 1724.74 or Sec. 1726.304 or both and send the new or revised 
standard forms to all affected borrowers by regular or electronic mail. 
Borrowers, as well as the public, can obtain copies of all standard 
contract forms from RUS or GPO.
    In addition to identifying standard forms and eliminating full 
publication of the text of each standard contract form in the CFR, RUS 
proposes to clarify the procedures that will be followed when RUS 
promulgates a new or revised standard contract form. To the extent that 
RUS is required by section 553 of the APA (5 U.S.C. 553) or otherwise 
to provide notice in the FR and an opportunity for public comment in 
promulgating standard contract forms, RUS will publish a FR notice of 
rulemaking announcing, as appropriate, a revision in, or a proposal to 
revise the list of standard contract forms set forth in sections 
1724.74 or 1726.304 or both. The revision may change the existing list 
by, for example, identifying a new required contract form or changing 
the issuance date of a listed form. The supplementary information 
section of the FR notice will describe the substantive change in the 
identified standard contract form and may append the standard contract 
form or relevant portions thereof. As appropriate, the notice will 
provide an opportunity for interested persons to provide comments. A 
copy of each such Federal Register notice will be sent by regular or 
electronic mail to all borrowers.
    Finally, the proposed rule clarifies certain aspects of the 
requirement that borrowers use RUS standard forms of contract. Absent a 
waiver by RUS, borrowers are required to use those standard forms in 
effect as of the date the borrower issues bid package to bidders. 
Borrowers can determine the appropriate standard form based on the 
issuance date of the form as identified by the most recently published 
list set forth in Sec. 1724.74 and Sec. 1726.304. RUS may waive for 
good cause, on a case by case basis, the requirement to use RUS 
standard forms of contracts pursuant to procedures set forth in the 
regulation. A failure on the part of the borrower to use standard forms 
of contracts as prescribed in parts 1724 or 1726 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. 
Consistent with the changes discussed above, RUS proposes to amend 
those sections of existing regulations that currently set forth the 
full text of contracts for the purpose of deleting such text. Deletion 
of the full text from the CFR will not affect the requirement that 
borrowers use the prescribed forms of contracts. The proposed rule also 
relocates and makes minor revisions to information regarding 
contractors bonds and interest on overdue accounts.

List of Subjects

7 CFR Part 1724

    Electric power, Loan programs--energy, Reporting and recordkeeping 
requirements, Rural areas.

7 CFR Part 1726

    Electric power, Loan programs-energy, Rural areas, Reporting and 
recordkeeping requirements.

    Accordingly, 7 CFR Chapter XVII is proposed to be amended as 
follows:

PART 1724--ELECTRIC ENGINEERING, ARCHITECTURAL SERVICES AND DESIGN 
POLICIES AND PROCEDURES

    1. The authority citation for 7 CFR part 1724 continues to read as 
follows:

    Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.
    2. Section 1724.3 is amended by adding the following definitions in 
alphabetical order:


Sec. 1724.3  Definitions.

* * * * *
    GPO means Government Printing Office.
* * * * *
    RE Act means the Rural Electrification Act of 1936 as amended.
    RUS means Rural Utilities Service.
* * * * *
    3. Section 1724.10 is added to read as follows:


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, 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.
    4. Section 1724.70 is revised to read as follows:


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, 
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

[[Page 45769]]

by RUS. (See section 5.16 of appendix A to subpart C to part 1718.) 
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.
    5. Section 1724.71 is revised to read as follows:


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) of this part.
    (b) Compliance. If a borrower is required by this part to use a 
listed contract form, the borrower shall use the listed contract form 
in the format available from RUS. The forms shall not be retyped, 
changed, modified, or altered in any manner not specifically authorized 
in this part or approved by RUS in writing. Any modifications approved 
by RUS must be clearly shown so as to indicate the difference from the 
listed contract form. Electronic reproduction is not acceptable.
    (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.
    6. Section 1724.72 is added to read as follows:


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, 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).
    7. Section 1724.73 is added to read as follows:


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.
    8. Section 1724.74 is revised to read as follows:


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, Sec. 1724.74(c), as most recently published as of the 
date the borrower executes the contract.
    (c) List of required contract forms. (1) RUS Form 211, Rev. 6-98, 
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.

[[Page 45770]]

    (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. 2-84, Final Statement of Cost for 
Architectural Service. This form is used for the closeout of 
architectural services contracts.
    (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.
    9. Sections 1724.75 and 1724.76 are removed and reserved.

PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES

    10. The authority citation for 7 CFR part 1726 is amended to read 
as follows.

    Authority: 7 U.S.C. 901 et seq., 1921 et seq.; 7 U.S.C. 6941 et 
seq.

    11. Section 1726.24 is amended by revising the section heading and 
paragraph (a) to read as follows:


Sec. 1726.24  Standard forms of contracts for borrowers.

    (a) General. The standard loan agreement between RUS and the 
borrowers provides that, in accordance with applicable RUS regulations, 
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 H and J of this part prescribe when and how borrowers are 
required to use RUS standard forms of contracts in procurement and 
construction. Subpart I 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 procurement and 
construction.
* * * * *
    12. Section 1726.26 is added to read as follows:


Sec. 1726.26  Interest on overdue accounts.

    Certain RUS contract forms contain a provision concerning payment 
of interest on overdue accounts. Prior to issuing the invitation to 
bidders, the borrower must insert an interest rate equal to the lowest 
``Prime Rate'' listed in the ``Money Rates'' section of the Wall Street 
Journal on the date such invitation to bid is issued. If no prime rate 
is published on that date, the last such rate published prior to that 
date must be used. The rate must not, however, exceed the maximum rate 
allowed by any applicable state law.
    13. Section 1726.27 is added to read as follows:


Sec. 1726.27  Contractor's bonds.

    (a) RUS Form 168b, Contractor's Bond, shall be used when a 
contractor's bond is required by RUS Forms 200, 201, 203, 257, 764, 
786, 790, 792, 830, or 831 unless the contractor's surety has accepted 
a Small Business Administration guarantee and the contract is for $1 
million or less.
    (b) RUS Form 168c, Contractor's Bond, shall be used when a 
contractor's bond is required by RUS Form 200, 201, 203, 257, 764, 786, 
790, 792, 830, or 831 and the contractor's surety has accepted a Small 
Business Administration guarantee and the contract is for $1 million or 
less.
    (c) Surety companies providing contractor's bonds shall be listed 
as acceptable sureties in the U.S. Department of the Treasury Circular 
No. 570, Companies Holding Certificates of Authority as Acceptable 
Sureties on Federal Bonds and as Acceptable Reinsuring Companies. 
Copies of the circular and interim changes may be obtained directly 
from the Government Printing Office (202) 512-1800. Interim changes are 
published in the Federal Register as they occur. The list is also 
available through the Internet at http://www.fms.treas.gov/c570/
index.html and on the Department of the Treasury's computerized public 
bulletin board at (202) 874-6887.
    14. Section 1726.300 is revised to read as follows:


Sec. 1726.300  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, 
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 to part 1718.) This subpart prescribes 
RUS procedures in promulgating 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. 1726.304(c), 
that borrowers are required to use in accordance with the provisions of 
this part. In addition, RUS promulgates standard contract forms 
contained in Sec. 1726.304(d) that the borrowers may but are not 
required to use in the construction of their electric systems. 
Borrowers are not required to use these guidance contract forms in the 
absence of an agreement to do so.
    15. Section 1726.301 is revised to read as follows:


Sec. 1726.301  Borrower contractual obligations.

    (a) Loan agreement. As a condition of a loan or loan guarantee 
under the Rural Electrification 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 Contract Forms, Sec. 1724.304(c).
    (b) Compliance. If a borrower is required by this part or by the 
loan agreement to use a listed contract form, the borrower shall use 
the listed contracts in the format available from RUS or GPO. The forms 
shall not be retyped, changed, modified, or altered in any manner not 
specifically authorized in this part or approved by RUS in writing. Any 
modifications approved by RUS must be clearly shown so as to indicate 
the difference from the listed contract form. Electronic reproduction 
is not acceptable except where indicated in Sec. 1726.304(c).
    (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

[[Page 45771]]

need for the waiver. Waiver requests should be made prior to issuing 
the bid package to bidders.
    (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.
    16. Section 1726.302 is revised to read as follows:


Sec. 1726.302  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 available from either 
RUS or the Government Printing Office (GPO), as indicated in 
Sec. 1726.304. Interested parties may obtain the forms from: Rural 
Utilities Service, Program Development and Regulatory Analysis, U.S. 
Department of Agriculture, Stop 1522, 1400 Independence Avenue, SW, 
Washington, DC 20250-1522, telephone number (202) 720-8674, or the 
Superintendent of Documents, P.O. Box 371954, Pittsburgh, Pennsylvania 
15250-7954, telephone number (202) 512-1800. The listed contract forms 
can be found in Sec. 1726.304(c).
    17. Section 1726.303 is revised to read as follows:


Sec. 1726.303  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. 1726.304, 
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 supplementry information section of the notice of rulemaking. As 
appropriate, the document shall provide an opportunity for interested 
persons to provide comments. A copy of each such Federal Register 
document will be sent by regular or electronic mail to all borrowers.
    18. Section 1726.304 is added to read as follows:


Sec. 1726.304  List of electric program standard contract forms.

    (a) General. This section contains a list of RUS electric program 
standard contract forms. 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 sets forth the list of guidance contract forms, i.e., those 
forms of contracts provided as guidance to borrowers in the 
construction of their systems. See Sec. 1726.302(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, Sec. 1726.304(c), as most recently published as of the 
date the borrower issues the bid package to bidders.
    (c) List of required contract forms. (1) RUS Form 168b, Rev. 2-95, 
Contractor's Bond. This form is used to obtain a surety bond and is 
included in RUS Forms 200, 201, 203, 257, 764, 786, 790, 792, 830, and 
831.
    (2) RUS Form 168c, Rev. 2-95, Contractor's Bond (less than $1 
million). This form is used in lieu of RUS Form 168b to obtain a surety 
bond when contractor's surety has accepted a Small Business 
Administration guarantee. This form is available from RUS.
    (3) RUS Form 180, Rev. 2-95, Construction Contract Amendment. This 
form is used to amend distribution line construction contracts. This 
form is available from RUS.
    (4) RUS Form 181, Rev. 2-95, Certificate of Completion, Contract 
Construction for Buildings. This form is used for the closeout of RUS 
Form 257. This form is available from RUS.
    (5) RUS Form 187, Rev. 2-95, Certificate of Completion, Contract 
Construction. This form is used for the closeout of and is included in 
RUS Forms 200, 203, 764, 786, 830, and 831.
    (6) RUS Form 198, Rev. 2-95, Equipment Contract. This form is used 
for equipment purchases. This form is available from RUS.
    (7) RUS Form 200, Rev. 2-95, Construction Contract--Generating. 
This form is used for generating plant construction or for the 
furnishing and installation of major items of equipment. This form is 
available from RUS.
    (8) RUS Form 201, Rev. 2-95, Right-of-Way Clearing Contract. This 
form is used for distribution line right-of-way clearing work which is 
to be performed separate from line construction. This form is available 
from RUS.
    (9) RUS Form 203, Rev. 2-95, Transmission System Right-of-Way 
Clearing Contract. This form is used for transmission right-of-way 
clearing work which is to be performed separate from line construction. 
This form is available from RUS.
    (10) RUS Form 213, Rev. 2-95, Certificate (``Buy American''). This 
form is used to document compliance with the ``Buy American'' 
requirement. This form is available from RUS.
    (11) RUS Form 224, Rev. 2-95, Waiver and Release of Lien. This form 
is used for the closeout of and is included in RUS Forms 200, 203, 764, 
786, 830, and 831.
    (12) RUS Form 231, Rev. 2-95, Certificate of Contractor. This form 
is used for the closeout of and is included in RUS Forms 200, 203, 764, 
786, 830, and 831.
    (13) RUS Form 238, Rev. 2-95, Construction or Equipment Contract 
Amendment. This form is used to amend contracts except distribution 
line construction contracts. This form is available from RUS.
    (14) RUS Form 251, Rev. 2-95, Material Receipt. This form is used 
to document receipt of owner furnished materials and is included in RUS 
Forms 764, 830, and 831. Electronic reproduction is acceptable for RUS 
Form 251.
    (15) RUS Form 254, Rev. 2-95, Construction Inventory. This form is 
used for the closeout of RUS Forms 203, 764, 830, and 831. This form is 
available from RUS. Electronic reproduction is acceptable for RUS Form 
254.
    (16) RUS Form 257, Rev. 2-95, Contract to Construct Buildings. This 
form is used to construct headquarters buildings and other structure 
construction. This form is available from GPO.
    (17) RUS Form 307, Rev. 2-95, Bid Bond. This form is used to obtain 
a bid bond and is included in RUS Forms 200, 203, 257, 764, 830, and 
831.
    (18) RUS Form 764, Rev. 2-95, Substation and Switching Station 
Erection Contract. This form is used to construct substations and 
switching stations. This form is available from RUS.

[[Page 45772]]

    (19) RUS Form 786, Rev. 2-95, Electric System Communications and 
Control Equipment Contract. This form is used for delivery and 
installation of equipment for system communications. This form is 
available from RUS.
    (20) RUS Form 790, Rev. 2-95, Distribution Line Extension 
Construction Contract (Labor and Materials). This form is used for 
limited distribution construction accounted for under work order 
procedure. This form is available from GPO.
    (21) RUS Form 792, Rev. 2-95, Distribution Line Extension 
Construction Contract (Labor Only). This form is used for limited 
distribution construction accounted for under work order procedure. 
This form is available from GPO.
    (22) RUS Form 792b, Rev. 2-95, Certificate of Construction and 
Indemnity Agreement. This form is used for the closeout of and is 
included in RUS Forms 201, 790, 792.
    (23) RUS Form 792c, Rev. 2-95, Supplemental Contract for Additional 
Project. This form is used to amend other contracts and is included in 
RUS Forms 201, 790, 792.
    (24) RUS Form 830, Rev. 2-95, Electric System Construction Contract 
(Labor and Materials). This form is used for distribution and 
transmission line project construction. This form is available from 
GPO.
    (25) RUS Form 831, Rev. 2-95, Electric Transmission Construction 
Contract (Labor and Materials). This form is used for transmission line 
project construction. This form is available from GPO.
    (d) List of guidance contract forms. (1) RUS Form 172, Rev. 9-58, 
Certificate of Inspection, Contract Construction. This form is used to 
notify RUS that construction is ready for inspection. This form is 
available from RUS.
    (2) RUS Form 173, Rev. 3-55, Materials Contract. This form is used 
for distribution, transmission, and general plant material purchases. 
This form is available from RUS.
    (3) RUS Form 274, Rev. 6-81, Bidder's Qualifications. This form is 
used to document bidder's qualifications. This form is available from 
RUS.
    (4) RUS Form 282, Rev. 11-53, Subcontract. This form is used for 
subcontracting. This form is available from RUS.
    (5) RUS Form 458, Rev. 3-55, Materials Contract. This form is used 
to obtain generation plant material and equipment purchases not 
requiring acceptance tests at the project site. This form is available 
from RUS.


Secs. 1726.310 through 1726.352  [Removed and Reserved]

    18. Sections 1726.310 through 1726.352 are removed and reserved.

    Dated: August 12, 1998.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 98-22930 Filed 8-26-98; 8:45 am]
BILLING CODE 3410-15-P