[Federal Register Volume 63, Number 188 (Tuesday, September 29, 1998)]
[Rules and Regulations]
[Pages 51792-51793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26021]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Parts 1710 and 1726


Year 2000 Compliance: Electric Program

AGENCY: Rural Utilities Service, USDA.

ACTION: Interim rule with request for comment.

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SUMMARY: This interim rule amends the regulations of the Rural 
Utilities Service (RUS) to state that RUS will make an electric loan 
only if the borrower's electric system is year 2000 compliant. The 
interim rule will ensure that RUS-financed projects and RUS financed 
electric systems meet the year 2000 date changeover without service or 
revenue disruption.

DATES: This rule is effective September 29, 1998. Comments must be 
received by RUS or carry a postmark or equivalent by November 30, 1998.

ADDRESSES: Written comments should be addressed to Blaine D. Stockton, 
Jr., Assistant Administrator, Electric Program, Rural Utilities 
Service, United States Department of Agriculture, 1400 Independence 
Ave., SW., STOP 1560, Room 4037, South Building, Washington, DC., 
20250-1560. RUS requires a signed original and three copies of all 
comments.

FOR FURTHER INFORMATION CONTACT: Blaine D. Stockton, Jr., Assistant 
Administrator, Electric Program, Rural Utilities Service, United States 
Department of Agriculture, 1400 Independence Ave., SW., STOP 1560, Room 
4037, South Building, Washington, DC., 20250-1560. Telephone: (202) 
720-9545. Facsimile: (202) 690-0717.

SUPPLEMENTARY INFORMATION:

Justification for Interim Rule

    It is the policy of the Department of Agriculture that proposed 
rules relating to public property, loans, grants, benefits, or 
contracts be published for public comment notwithstanding the 
provisions of 5 U.S.C. 553, with respect to such rules. However, 
exemptions are permitted where an agency finds, for good cause, that an 
opportunity for comments would be impracticable, unnecessary, or 
contrary to the public interest.
    RUS finds that good cause exists to implement this rule without 
providing a prior opportunity for public comment. Many computers that 
control electric systems are not programmed to handle the change of 
date from December 31, 1999, to January 1, 2000. These ``non-
compliant'' computers may malfunction on or before January 1, 2000, 
with potentially widespread and catastrophic results. Computer 
controlled electric systems could fail causing electric power delivery 
to consumers and suppliers to be interrupted, and electric system 
safety could be adversely affected. Examples of potentially vulnerable 
areas include power plant control systems, transmission and 
distribution relays, substation metering, load management systems, 
maintenance and administration systems and billing records. Failure of 
electric systems could affect public health and safety.
    RUS, therefore believes it would be contrary to the public interest 
to delay the effectiveness of the rule. Through this interim rule, RUS 
is undertaking to address with its electric borrowers year 2000 
compliance issues that may potentially disrupt electric services that 
are critical to public health and safety. This rule is part of an 
effort by all USDA Rural Development agencies to address year 2000 
readiness and prevent year 2000 problems. For these reasons, RUS 
determines that publication for advance notice and an opportunity for 
prior comment is not in the public interest.

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 related notice entitled 
``Department Programs and Activities Excluded from Executive Order 
12372'' (50 FR 47034), determined RUS loans and loan guarantees are not 
covered by this Executive 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 accordance 
with the Executive Order and the rule: (1) All state and local laws and 
regulations that are in conflict with this rule will be preempted; (2) 
No retroactive effect will be given to this rule; and (3) In accordance 
with Sec. 212(e) of the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 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.

[[Page 51793]]

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

    This interim rule does not impose new information collection 
requirements for the purposes of the Paperwork reduction Act of 1995 
(44 U.S.C. Chapter 35). (OMB control number 0572-0032)

Unfunded Mandates

    This rule contains no Federal mandate (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.

List of Subjects

7 CFR Part 1710

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

7 CFR Part 1726

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

    For the reasons set forth in the preamble, RUS amends Chapter XVII 
of Title 7 of the Code of Federal Regulations as follows:

PART 1710--GENERAL AND PRE-LOAN POLICIES AND PROCEDURES COMMON TO 
INSURED AND GUARANTEED ELECTRIC LOANS

    1. The authority citation for part 1710 continues to read as 
follows:

    Authority: 7 U.S.C. 901-950(b); Public Law 99-591, 100 Stat. 
3341; Public Law 103-354, 108 Stat. 3178 (7 U.S.C. 6941 et seq.).

    2. In Sec. 1710.112, a new paragraph (c) is added to read as 
follows:


Sec. 1710.112  Loan feasibility.

* * * * *
    (c) RUS considers a loan to be feasible only if the borrower's 
electric system is year 2000 compliant, or if the borrower provides RUS 
with evidence, satisfactory to RUS, that it is taking measures 
necessary to ensure that its electric system will be year 2000 
compliant on or before December 31, 1999. Year 2000 compliant means 
that product performance and function are not affected by dates before, 
during, and a reasonable time after the year 2000.

PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES

    3. The authority citation for part 1726 continues to read as 
follows:

    Authority: 7 U.S.C. 901 et seq., 1921 et seq.; Public Law 103-
354, 108 Stat. 3178 (7 U.S.C. 6941 et seq.).

    4. In Sec. 1726.20, a new sentence is added at the end to read as 
follows:


Sec. 1726.20  Standards and specifications.

    * * * The materials and equipment must be year 2000 compliant, as 
defined in 7 CFR 1710.112 (c).

    Dated: September 21, 1998.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 98-26021 Filed 9-28-98; 8:45 am]
BILLING CODE 3410-15-U