[Federal Register Volume 66, Number 80 (Wednesday, April 25, 2001)]
[Proposed Rules]
[Pages 20759-20760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10262]
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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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Federal Register / Vol. 66, No. 80 / Wednesday, April 25, 2001 /
Proposed Rules
[[Page 20759]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1710
RIN 0572-AB65
Demand Side Management and Renewable Energy Systems
AGENCY: Rural Utilities Service, USDA.
ACTION: Proposed rule.
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SUMMARY: The Rural Utilities Service (RUS) is proposing to amend its
regulations by removing subpart H of part 1710 in its entirety. The
existing subpart H details separate policies and requirements for loans
for renewable energy systems and demand side management. Many of these
requirements overlap provisions found elsewhere in part 1710. Others do
not seem well suited for the smaller scale projects of this type that
are becoming increasingly common in the industry. RUS believes that it
is more appropriate to consider such small scale projects in this
rapidly developing segment of the energy industry by proceeding on a
case-by-case basis. By contrast, the balance of part 1710 affords a
useful framework for considering utility-scale energy projects without
regard to whether they are for demand side management or renewable
resources.
DATES: Written comments must be received by RUS on or before May 25,
2001.
ADDRESSES: Written comments should be addressed to F. Lamont Heppe,
Jr., Director, Program Development and Regulatory Analysis, U.S.
Department of Agriculture, Rural Utilities Service, Room 4026 South
Building, Stop 1522, 14th & Independence Ave., SW., Washington, DC
20250-1522. RUS requests 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: Georg A. Shultz, Chief, Energy
Forecasting Branch, Electric Staff Division, Rural Utilities Service,
U.S. Department of Agriculture, Stop 1569, 1400 Independence Ave., SW.,
Washington, DC 20250-1569. Telephone: (202) 720-1921. FAX: (202) 720-
7491. E-mail: [email protected].
SUPPLEMENTARY INFORMATION:
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 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 entitled
``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 appeal procedures, if any are required, must be
exhausted before an action against the Department or its agencies.
Regulatory Flexibility Act Certification
In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.), the Administrator of RUS has determined that this rule will not
have significant impact on a substantial number of small entities. The
RUS electric loan program provides loans and loan guarantees to
borrowers at interest rates and terms that are more favorable than
those generally available from the private sector. Small entities are
not subjected to any requirements, which are not applied equally to
large entities. RUS borrowers, as a result of obtaining federal
financing, receive economic benefits that exceed any direct cost
associated with RUS regulations and requirements.
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 rule contains no information collection or recordkeeping
requirements 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) 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.
Background
The Rural Utilities Service (RUS) is proposing to remove from part
1710 of its regulations entitled ``General and Pre-Loan Policies and
Procedures'' subpart H thereof, which separately treats demand side
management and renewable energy systems. Subpart H has seldom been
used. Since it was first promulgated in 1994, RUS has averaged less
than one of these loans a year. More recently, changes in the energy
industry and technological advances have produced increased interest in
utilizing
[[Page 20760]]
these approaches for smaller scaled projects and projects employing
innovative technologies. However, subpart H with its requirements for
such things are integrated resource plans (IRP's) and demand side
management plans present formidable barriers for the development of
smaller projects. Furthermore, the usefulness of such traditional
analytical devices in today's radically changed energy industry has
become questionable. In addition, projects of this sort often possess
unique attributes that make the application of detailed regulations
impractical and sometimes even counterproductive. For example, subpart
H precludes the use of innovative technologies. See 7 CFR 1710.351(a)
and 1710.353. For all of these reasons, RUS believes that subpart H has
become unjustified and unnecessary as a result of changed circumstances
and should be removed or substantially revised.
After considering the low volume of loan requests RUS receives
annually for these loans, the disparate nature of the projects that can
be characterized as demand side management or renewable energy systems,
and the rapidly evolving nature of this industry, RUS has determined
that the removal of subpart H is the better alternative. Accordingly,
RUS is proposing to proceed case-by-case in considering requests for
demand side management and renewable energy system loans.
RUS expects that utility scale projects will continue to confirm to
the remaining provisions of part 1710 establishing its general and pre-
loan policies and procedures. RUS recognizes that the particular
circumstances of an individual project may necessitate adjustments in
the application or interpretation of its general policies and
procedures to specific demand side management or renewable energy
systems loans regardless of scale. The Administrator may, of course,
waive or reduce any requirement imposed by part 1710 by resorting to
the exception authority contained in the rule itself. See 7 CFR 1710.4.
In light of their rarity so far, RUS anticipates that it may be
necessary to interpret the application of part 1710 to utility scale
demand side management and renewable energy system loans on a somewhat
frequent basis at first. RUS will treat small-scale projects as pilot
projects for which the remainder of part 1710 will serve merely as
guidance. As used in this rule, ``small scale project'' refers to
projects requesting loans less than $5 million or generating less than
10 MW (nameplate rating). ``Utility scale project'' refers to
everything else.
As RUS acquires greater experience with loans for demand side
management and renewable energy systems, it may reissue regulations on
this subject in the event that the volume of loans requests or the
number of recurring issues raised warrant it. Accordingly, subpart H is
being reserved.
List of Subjects in 7 CFR Part 1710
Electric power, Electric utilities, Loan programs-energy, Reporting
and recordkeeping requirements, Rural areas.
For the reasons set forth in the preamble, RUS proposes to amend 7
CFR chapter XVII by revising part 1710 to read as follows:
PART 1710--GENERAL AND PRELOAN 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 et seq., 1921 et seq., and 6941 et seq.
Subpart H--Demand Side Management and Renewable Energy Systems
2. Remove and reserve subpart H:
Secs. 1710.350-1710.363 [Removed and Reserved]
Dated: February 13, 2001.
Blaine D. Stockton,
Acting Administrator, Rural Utilities Service.
[FR Doc. 01-10262 Filed 4-24-01; 8:45 am]
BILLING CODE 3410-15-P