[Federal Register Volume 89, Number 48 (Monday, March 11, 2024)]
[Rules and Regulations]
[Pages 17271-17276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05076]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
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  Federal Register / Vol. 89, No. 48 / Monday, March 11, 2024 / Rules 
and Regulations  

[[Page 17271]]



DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Parts 1710, 1717, 1721, 1726, and 1730

[Docket No. RUS-23-ELECTRIC-0024]
RIN 0572-AC64


Revision to Electric Program Operating Policies and Procedures

AGENCY: Rural Utilities Service, U.S. Department of Agriculture (USDA).

ACTION: Final rule; request for comment.

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

SUMMARY: The Rural Utilities Service (RUS), a Rural Development (RD) 
agency of the United States Department of Agriculture (USDA), is 
issuing a final rule with request for comments. The intent of this 
rulemaking is to provide more flexibility for the RUS Electric Program 
borrowers to complete emergency repairs while maintaining the ability 
to receive RUS financing, to delete unnecessary and outdated 
requirements imposed on electric borrowers and applicants and provide 
flexibility in selecting construction procurement methods that better 
support applicant needs in awarding construction contracts. These 
changes will reduce agency travel costs by extending the time between 
the required review period for operations and maintenance reviews, 
reduce the number of reviews for RUS Electric Program staff, and 
increase customer satisfaction and service.

DATES:  This final rule is effective June 10, 2024.
    Comments must be submitted on or before May 10, 2024.

ADDRESSES: You may submit comments, identified by Docket Number (RUS-
23-ELECTRIC-0024) or the RIN # (0572-AC64).
     Federal eRulemaking Portal: Follow instructions for 
sending comments. In the ``Search Documents'' box, enter the Docket 
Number (RUS-23-ELECTRIC-0024) or the RIN # (0572-AC64) provided in this 
rule, and click the ``Search'' button. To submit a comment, choose the 
``Comment'' button associated with the rule. Information on using 
Regulations.gov, including instructions for accessing documents, 
submitting comments, and viewing the docket after the close of the 
comment period, is available under the ``FAQ'' link at the bottom of 
the home page.
    Other Information: Additional information about RD and its programs 
is available on the internet at www.rd.usda.gov/programs-services.
    Instructions: All submissions received must include the agency name 
and docket number or Regulatory Information Number (RIN) for this 
rulemaking. All comments received will be posted without change to 
www.regulations.gov, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Mark Bartholomew, Rural Utilities 
Service Electric Program, Rural Development, United States Department 
of Agriculture, 1400 Independence Avenue SW, STOP 1560, Washington, DC 
20250; 704-544-4612 [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Rural Development (RD) is a mission area within the U.S. Department 
of Agriculture (USDA) comprising the Rural Utilities Service (RUS), 
Rural Housing Service, and Rural Business-Cooperative Service. RD's 
mission is to increase economic opportunity and improve the quality of 
life for all rural Americans. RD meets its mission by providing loans, 
loan guarantees, grants, and technical assistance through numerous 
programs aimed at creating and improving housing, business, and 
infrastructure throughout rural America. RUS loan, loan guarantee, and 
grant programs act as a catalyst for economic and community 
development. By financing improvements to rural electric, water and 
waste, and telecommunications and broadband infrastructure, RUS also 
plays a significant role in improving other measures of quality of life 
in rural America, including public health and safety, environmental 
protection, and cultural and historic preservation. The RUS Electric 
Program provides funding to maintain, expand, upgrade, and modernize 
America's rural electric infrastructure. The loans and loan guarantees 
finance the construction or improvement of electric distribution, 
transmission, and generation facilities in rural areas.
    This rulemaking is part of the RUS Electric Program's continuing 
effort to improve customer service for its borrowers and to create a 
more efficient work process for its staff. This rulemaking will 
continue to streamline RUS Electric Program procedures and revise 
regulations, including removing unnecessary and outdated regulation 
references, and simplifying policies and procedures to increase 
flexibilities for borrowers and applicants.
    The goal of these proposed changes is to provide more flexibility 
for RUS Electric Program borrowers in (1) completing emergency repairs 
while maintaining the ability to receive RUS financing, (2) selecting 
construction procurement methods that better support their needs in 
awarding construction contracts, and (3) delete unnecessary and 
outdated requirements imposed on electric borrowers and applicants. RUS 
expects that these actions will enhance RUS and customer efficiency, 
thereby increasing customer satisfaction and service.
    The proposed changes will improve customer experience and customer 
service and allow RUS to better focus on feasibility and security 
issues while lessening the burdens on the RUS Electric Program 
borrowers. In addition, the changes will provide flexibility in making 
business decisions, and reduces the number of reviews for RUS Electric 
Program staff. These actions should not impose additional costs on 
applicants or on electric borrowers as the proposed changes increase 
flexibility for the Borrowers under existing requirements. These 
changes will positively affect the RUS Electric borrower experience and 
enhance RUS customer service by simplifying policies and procedures to 
increase flexibilities for electric borrowers and applicants, 
minimizing the regulatory impact of applying for loans made or 
guaranteed by RUS, and facilitating lending for construction of rural 
electric infrastructure.

II. Summary of Changes to Rule

7 CFR 1710.250 General

    The construction work plans and related studies coverages are 
modified

[[Page 17272]]

to include acts of sabotage, willful attacks, accidents, or acts of 
force majeure as additional events that qualify for emergency repairs 
before a construction work plan amendment is prepared by the borrower. 
These modifications will provide borrowers increased flexibility and 
options to proceed with emergency repair work without losing 
eligibility for RUS financing.

7 CFR 1710.500 Initial Contact

    This change is to correct a citation and is being made to ensure 
applicants and borrowers are directed to the correct section in the 
regulation.

7 CFR 1710.501 Loan Application Documents

    This change amends the paragraph by removing paragraphs (a)(9) and 
(13). These deletions will remove certifications that are no longer 
required to be submitted by applicants. The certifications being 
removed are part of the Financial Assistance General Certifications and 
Representations in the System for Award Management that must be 
completed when applying for an award and updated annually. The 
remaining paragraphs in Sec.  1710.501(a) will be redesignated 
accordingly as part of this amendment.

7 CFR 1717.156 Transitional Assistance Affecting Preexisting Loans

    Transitional assistance affecting preexisting loans, is amended to 
replace two incorrect citations in the paragraph. These corrections 
will ensure borrowers know the correct regulation citation to review.

7 CFR 1721.1 Advances

    Paragraphs (b) and (c) are modified to increase the limit for minor 
projects and projects requiring a contract or work order number. This 
change is being made to adjust for inflation over time and will provide 
greater flexibility for borrowers to complete more projects under this 
process which allows the borrowers to complete needed infrastructure 
improvements in a timelier fashion.

7 CFR 1726.14 Definitions

    The definition of ``Minor modification'' is amended to increase the 
project cost and the definition of ``Multiparty unit price quotations'' 
is being deleted. This change will provide borrowers more flexibility 
to utilize purchase orders or other construction contracts for smaller 
projects without having to use RUS' standard contract forms.

7 CFR 1726.51 Procurement Methods To Award Contracts for Distribution 
Line Construction

    Paragraph (b)(1) is modified to increase limits, increase Net 
Utility Plant (NUP) percentages, and delete the ``not to exceed'' 
limitations. These changes are being made to provide Electric Program 
borrowers greater flexibility in determining the procurement method 
that best meets their needs to award construction contracts.

7 CFR 1726.77 Substation and Transmission Line Construction

    Paragraph (b)(1) is modified to increase limits, increase Net 
Utility Plant (NUP) percentages, and delete the ``not to exceed'' 
limitations. Paragraph (c) is changed to increase contract approval 
amounts and delete the ``not to exceed'' limitations. These changes are 
being made to provide Electric Program borrowers greater flexibility in 
determining the procurement method that best meets their needs to award 
construction contracts. It will also reduce the number of construction 
contracts that need to be reviewed and approved by RUS Staff.

7 CFR 1726.125 Generating Plant Facilities

    Paragraph (c) is amended to remove an incorrect citation that does 
not exist in the regulation.

7 CFR 1726.150 Headquarters Buildings

    A sentence in paragraph (b) is amended to delete the ``not to 
exceed'' limitation and increase the percent of NUP from three percent 
to four percent. These changes are being made to provide borrowers 
greater flexibility in determining the procurement method that best 
meets their needs to award construction contracts.

7 CFR 1726.176 Communication and Control Facilities

    Paragraph (b) limitations for Load control systems, communications 
systems, and SCADA systems is modified to increase limits, increase NUP 
percentages and delete the ``not to exceed'' limitations. These changes 
are being made to provide Electric Program borrowers greater 
flexibility in determining the procurement method that best meets their 
needs to award construction contracts. It will also reduce the number 
of construction contracts that need to be reviewed and approved by RUS 
Staff.

7 CFR 1726.204 Multiparty Unit Price Quotations

    This section is removed and reserved as a conforming change to a 
prior streamlining effort. Multiparty Unit Price Quotations are no 
longer specifically sited or used in the regulations.

7 CFR 1730.24 RUS Review and Evaluation

    This section is modified to increase the Operations and Maintenance 
review period from normally every three years to normally every four 
years. This change is being made to better match the four-year 
construction work plan (CWP) period. The Agency will also see savings 
from reduced travel time due to increasing the review period.

7 CFR 1730.100 OMB Control Number

    This section is updated to revise the Office of Management and 
Budget (OMB) control number.

III. Executive Orders and Acts

Executive Order 12866--Classification

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

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this 
rulemaking as not a major rule, as defined by 5 U.S.C. 804(2).

Assistance Listing Number (Formally Known as the Catalog of Federal 
Domestic Assistance)

    The Assistance Listing Number assigned to the Rural Electrification 
Loans and Loan Guarantees Program is 10.850. The Assistance Listings 
are available on the internet at https://sam.gov/.

Executive Order 12372, Intergovernmental Review of Federal Programs

    This rulemaking is excluded from the scope of E.O. 12372, 
Intergovernmental Consultation, which may require a consultation with 
State and local officials. See the final rule related notice entitled, 
``Department Programs and Activities Excluded from E.O. 12372'' (50 FR 
47034) advising that RUS loans and loan guarantees were not covered by 
E.O. 12372.

[[Page 17273]]

Paperwork Reduction Act

    This rulemaking contains no new reporting or recordkeeping burdens 
under OMB control number 0572-0032 that would require approval under 
the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

National Environmental Policy Act

    In accordance with the National Environmental Policy Act of 1969, 
Public Law 91-190, this final rule has been reviewed in accordance with 
7 CFR part 1970 (``Environmental Policies and Procedures''). RUS has 
determined that (i) this action meets the criteria established in 7 CFR 
1970.53(f); (ii) no extraordinary circumstances exist; and (iii) the 
action is not ``connected'' to other actions with potentially 
significant impacts, is not considered a ``cumulative action'' and is 
not precluded by 40 CFR 1506.1. Therefore, RUS has determined that the 
action does not have a significant effect on the human environment, and 
therefore neither an Environmental Assessment nor an Environmental 
Impact Statement is required.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally 
requires an agency to prepare a regulatory flexibility analysis of any 
rule subject to notice and comment rulemaking requirements under the 
Administrative Procedure Act (APA) or any other statute. The 
Administrative Procedure Act exempts from notice and comment 
requirements rules ``relating to agency management or personnel or to 
public property, loans, grants, benefits, or contracts'' (5 U.S.C. 
553(a)(2)), so therefore an analysis has not been prepared for this 
rule.

Executive Order 12988--Civil Justice Reform

    This rule has been reviewed under E.O. 12988, Civil Justice Reform. 
In accordance with this rule: (1) unless otherwise specifically 
provided, all State and local laws that conflict with this rule will be 
preempted; (2) no retroactive effect will be given to this rule except 
as specifically prescribed in the rule; and (3) administrative 
proceedings of the National Appeals Division of the Department of 
Agriculture (7 CFR part 11) must be exhausted before bringing suit in 
court that challenges action taken under this rule.

Unfunded Mandates Reform Act (UMRA)

    Title II of the UMRA, Public Law 104-4, establishes requirements 
for Federal Agencies to assess the effects of their regulatory actions 
on State, local, and Tribal governments and on the private sector. 
Under section 202 of the UMRA, Federal agencies generally must prepare 
a written statement, including cost-benefit analysis, for proposed and 
Final Rules with ``Federal mandates'' that may result in expenditures 
to State, local, or Tribal governments, in the aggregate, or to the 
private sector, of $100 million or more in any one year. When such a 
statement is needed for a rule, section 205 of the UMRA generally 
requires a Federal agency to identify and consider a reasonable number 
of regulatory alternatives and adopt the least costly, most cost-
effective, or least burdensome alternative that achieves the objectives 
of the rule.
    This rulemaking contains no Federal mandates (under the regulatory 
provisions of title II of the UMRA) for State, local, and Tribal 
governments or for the private sector. Therefore, this rule is not 
subject to the requirements of sections 202 and 205 of the UMRA.

Executive Order 13132--Federalism

    It has been determined, under E.O. 13132, Federalism, that the 
policies contained in this rule do not have any substantial direct 
effect on States, on the relationship between the National Government 
and the States, or on the distribution of power and responsibilities 
among the various levels of government. Nor does this rule impose 
substantial direct compliance costs on State and local governments. 
Therefore, consultation with the States is not required.

Executive Order 13175--Consultation and Coordination With Indian Tribal 
Governments

    This executive order imposes requirements on RUS in the development 
of regulatory policies that have Tribal implications or preempt Tribal 
laws. RUS has determined that the rule does not have a substantial 
direct effect on one or more Indian Tribe(s) or on either the 
relationship or the distribution of powers and responsibilities between 
the Federal Government and Indian Tribes. Thus, this rule is not 
subject to the requirements of Executive Order 13175. If Tribal leaders 
are interested in consulting with RUS on this rule, they are encouraged 
to contact USDA's Office of Tribal Relations or RD's Tribal Relations 
Team at: [email protected] to request such a consultation.

E-Government Act Compliance

    RD is committed to the E-Government Act of 2002, Public Law 107-
347, which requires Government agencies in general to provide the 
public the option of submitting information or transacting business 
electronically to the maximum extent possible and to promote the use of 
the internet and other information technologies to provide increased 
opportunities for citizen access to government information and 
services, and for other purposes.

Civil Rights Impact Analysis

    RD has reviewed this rule in accordance with USDA Regulation 4300-
004, ``Civil Rights Impact Analysis,'' to identify any major civil 
rights impacts the rule might have on program participants on the basis 
of age, race, color, national origin, sex, disability, marital or 
familial status. Based on the review and analysis of the rule and all 
available data, issuance of this Final Rule is not likely to negatively 
impact low and moderate-income populations, minority populations, 
women, Indian Tribes, or persons with disability, by virtue of their 
age, race, color, national origin, sex, disability, or marital or 
familial status.

USDA Non-Discrimination Statement

    In accordance with Federal civil rights laws and USDA civil rights 
regulations and policies, the USDA, its Mission Areas, agencies, staff 
offices, employees, and institutions participating in or administering 
USDA programs are prohibited from discriminating based on race, color, 
national origin, religion, sex, gender identity (including gender 
expression), sexual orientation, disability, age, marital status, 
family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; or the 711 Relay 
Service.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf, from any USDA office, by calling (866) 
632-9992, or by writing a letter addressed to

[[Page 17274]]

USDA. The letter must contain the complainant's name, address, 
telephone number, and a written description of the alleged 
discriminatory action in sufficient detail to inform the Assistant 
Secretary for Civil Rights (ASCR) about the nature and date of an 
alleged civil rights violation. The completed AD-3027 form or letter 
must be submitted to USDA by:
    a. Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    b. Fax: (833) 256-1665 or (202) 690-7442; or
    c. Email: [email protected].

List of Subjects

7 CFR Part 1710

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

7 CFR Part 1717

    Administrative practice and procedure, Electric power, Electric 
power rates, Electric utilities, Intergovernmental relations, 
Investments, Loan programs--energy, Reporting and recordkeeping 
requirements, Rural areas.

7 CFR Part 1721

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

7 CFR Part 1726 and 1730

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

    For the reasons set forth in the preamble, RUS amends 7 CFR parts 
1710, 1717, 1721, 1726, and 1730 as follows:

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

0
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 F--Construction Work Plans and Related Studies

0
2. Amend Sec.  1710.250 by revising paragraph (f) to read as follows:


Sec.  1710.250  General.

* * * * *
    (f) In the case of damage caused by storms, natural catastrophes, 
sabotage, willful attacks, accidents, or acts of force majeure, a 
borrower may proceed with emergency repair work before a CWP or CWP 
amendment is prepared by the borrower and approved by RUS, without 
losing eligibility for RUS financing of the repairs. The borrower must 
notify RUS in writing after the incident, of its preliminary estimates 
of damages and repair costs. Not later than 120 days after the 
incident, the borrower must submit to RUS for approval, a CWP or CWP 
amendment detailing the repairs.
* * * * *

Subpart I--Application Requirements and Procedures for Loans

0
3. Amend Sec.  1710.500 by revising paragraph (b) to read as follows:


Sec.  1710.500  Initial contact.

* * * * *
    (b) Before submitting an application for an insured loan the 
borrower shall ascertain from RUS the amount of supplemental financing 
required, as set forth in Sec.  1710.110. If the borrower is applying 
for either a municipal rate loan subject to the interest rate cap or a 
hardship rate loan, the application must provide a preliminary 
breakdown of residential consumers either by county, Tribal land or by 
census tract. Final data must be included with the application. See 
Sec.  1710.501(a)(7).


Sec.  1710.501  [Amended]

0
4. Amend Sec.  1710.501 by removing paragraphs (a)(9) and (13) and 
redesignating paragraphs (a)(10), (11), (12), and (14) through (16) as 
paragraphs (a)(9) through (14).

PART 1717--POST-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND 
GUARANTEED ELECTRIC LOANS

0
5. The authority citation for part 1717 continues to read as follows:

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

Subpart D--Mergers and Consolidations of Electric Borrowers

0
6. Revise Sec.  1717.156 to read as follows:


Sec.  1717.156  Transitional assistance affecting preexisting loans.

    The fund advance period for an insured loan, which is the period 
during which RUS may advance loan funds to a borrower, terminates 
automatically after a specific period of time. See 7 CFR 1710.602. If, 
on the effective date the original fund advance period or the fund 
advance period as extended pursuant to 7 CFR 1710.602(b), on any 
preexisting RUS loan to any of the active borrowers involved in a 
merger has not terminated, such fund advance period shall be 
automatically lengthened by 2 years. However, under no circumstances 
shall RUS ever make or approve an advance, regardless of the last day 
for an advance on the loan note or any extension by the Administrator, 
later than September 30 of the fifth year after the fiscal year of 
obligation if such date would result in the RUS obligating or 
permitting advance of funds contrary to the Anti-Deficiency Act. On the 
borrower's request RUS will prepare documents necessary for the advance 
of loan funds. RUS will prepare documents for the borrower's execution 
that will reflect this extension and will provide the legal authority 
for RUS to advance funds to the successor.

PART 1721--POST-LOAN POLICIES AND PROCEDURES FOR INSURED ELECTRIC 
LOANS

0
7. The authority citation for part 1721 continues to read as follows:

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

Subpart A--Advances

0
8. Amend Sec.  1721.1 by revising paragraph (b) and paragraph (c) 
introductory text to read as follows:


Sec.  1721.1  Advances.

* * * * *
    (b) Minor project. Minor project means a project costing $250,000 
or less. Such a project qualifies for advance of loan funds even though 
it may not have been included in an RUS-approved borrower's CWP, 
amendment to such CWP, or approved loan. Total advances requested shall 
not exceed the total loan amount. All projects for which loan fund 
advances are requested must be constructed to achieve purposes 
permitted by terms of the loan contract between the borrower and RUS.
    (c) Certification. Pursuant to the applicable provisions of the RUS 
loan contract, borrowers must certify with each request for funds to be 
approved for advance that such funds are for projects in compliance 
with this section and shall also provide for those that cost in excess 
of $250,000 a contract or work order number as applicable and a CWP 
cross-reference project coded identification number. For a minor 
project not included in a RUS approved borrower's CWP or CWP amendment, 
the Borrower shall describe the project and do one of the following to 
satisfy

[[Page 17275]]

RUS' environmental review requirements in accordance with 7 CFR part 
1970:
* * * * *

PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES

0
9. The authority citation for part 1726 continues to read as follows:

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

Subpart A--General

0
10. Amend Sec.  1726.14 by revising the definition of ``Minor 
modification or improvement'' and removing the definition of 
``Multiparty unit price quotations''.
    The revision reads as follows:


Sec.  1726.14  Definitions.

* * * * *
    Minor modification or improvement means a project the cost of which 
is $250,000 or less, exclusive of the cost of owner furnished 
materials.
* * * * *

Subpart B--Distribution Facilities

0
11. Amend Sec.  1726.51 by revising paragraph (b)(1) to read as 
follows:


Sec.  1726.51  Distribution line construction.

* * * * *
    (b) * * *
    (1) It is the responsibility of each borrower to determine the 
procurement method that best meets its needs to award contracts in 
amounts of up to a cumulative total of $1,000,000 or four percent of 
NUP, whichever is greater, per calendar year of distribution line 
construction (including minor modifications or improvements), exclusive 
of the cost of owner furnished materials and equipment. Borrowers may 
award Cost-Plus/Hourly contracts as part of these borrower 
responsibility limits up to a cumulative total of $500,000 or two 
percent of NUP, whichever is greater, per calendar year of distribution 
line construction (including minor modifications or improvements), 
exclusive of the cost of owner furnished materials and equipment.
* * * * *

Subpart C--Substation and Transmission Facilities

0
12. Amend Sec.  1726.77 by revising paragraphs (b)(1) and (c) to read 
as follows:


Sec.  1726.77  Substation and transmission line construction.

* * * * *
    (b) * * *
    (1) It is the responsibility of each borrower to determine the 
procurement method that best meets its needs to award contracts in 
amounts of up to a cumulative total of $1,000,000 or four percent of 
NUP, whichever is greater, per calendar year of substation and 
transmission line construction (including minor modifications or 
improvements), exclusive of the cost of owner furnished materials and 
equipment. Borrowers may award Cost-Plus/Hourly contracts as part of 
these borrower responsibility limits up to a cumulative total of 
$500,000 or two percent of NUP, whichever is greater, per calendar year 
of substation and transmission line construction (including minor 
modifications or improvements), exclusive of the cost of owner 
furnished materials and equipment.
* * * * *
    (c) Contract approval. Individual contracts in the amount of 
$1,000,000 or more or four percent of NUP, whichever is greater, 
exclusive of the cost of owner furnished materials and equipment, are 
subject to RUS approval.

Subpart D--Generation Facilities

0
13. Amend Sec.  1726.125 by revising paragraph (c) introductory text to 
read as follows:


Sec.  1726.125  Generating plant facilities.

* * * * *
    (c) Contract approval. During the early stages of generating plant 
design or project design, RUS will, in consultation with the borrower 
and its consulting engineer, identify the specific contracts which 
require RUS approval based on information supplied in the plant design 
manual. The following are typical contracts for each type of generating 
project which will require RUS approval. Although engineering services 
are not covered by this part, they are listed in this paragraph to 
emphasize that RUS approval is required for all major generating 
station engineering service contracts in accordance with applicable RUS 
rules. For types of projects not shown, such as nuclear and alternate 
energy projects, RUS will identify the specific contracts which will 
require RUS approval on a case-by-case basis.
* * * * *

Subpart E--Buildings

0
14. Amend Sec.  1726.150 by revising paragraph (b) to read as follows:


Sec.  1726.150  Headquarters buildings.

* * * * *
    (b) Procurement procedures. A borrower may use Multiparty Lump Sum 
Quotations to award contracts in amounts of up to a cumulative total of 
$1,500,000 or four percent of NUP, whichever is greater, per calendar 
year of headquarters construction (including minor modifications or 
improvements). The borrower shall use formal competitive bidding for 
all other headquarters contract construction unless RUS specifically 
approves an alternative method.
* * * * *

Subpart F--General Plant

0
15. Amend Sec.  1726.176 by revising paragraphs (b)(2)(i) and (b)(3) to 
read as follows:


Sec.  1726.176  Communication and control facilities.

* * * * *
    (b) * * *
    (2) * * *
    (i) It is the responsibility of each borrower to determine the 
procurement method that best meets its needs to award contracts not 
requiring RUS approval in amounts of up to a cumulative total of 
$1,000,000 or four percent of NUP, whichever is greater, per calendar 
year of communications and control facilities construction (including 
minor modifications or improvements), exclusive of the cost of owner 
furnished materials and equipment.
* * * * *
    (3) Contract approval. Individual contracts in amounts of 
$1,000,000 or more or four percent of NUP, whichever is greater, 
exclusive of the cost of owner furnished materials and equipment, are 
subject to RUS approval.

Subpart G--Procurement Procedures


Sec.  1726.204  [Removed and Reserved].

0
16. Remove and reserve Sec.  1726.204.

PART 1730--ELECTRIC SYSTEMS OPERATIONS AND MAINTENANCE

0
17. The authority citation for part 1730 continues to read as follows:

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

[[Page 17276]]

Subpart B--Operations and Maintenance Requirements

0
18. Revise Sec.  1730.24 to read as follows:


Sec.  1730.24  RUS review and evaluation.

    RUS will initiate and conduct a periodic review and evaluation of 
the operations and maintenance practices of each borrower for the 
purpose of assessing loan security and determining borrower compliance 
with RUS policy as outlined in this part. This review will normally be 
done at least once every four years for all Borrowers. The borrower 
will make available to RUS the borrower's policies, procedures, and 
records related to the operations and maintenance of its complete 
system. Reports made by other inspectors (e.g., other Federal agencies, 
State inspectors, etc.) will also be made available, as applicable. RUS 
will not duplicate these other reviews but will use their reports to 
supplement its own review. RUS may inspect facilities, as well as 
records, and may also observe construction and maintenance work in the 
field. Key borrower personnel responsible for the facilities being 
inspected are to accompany RUS during such inspections, unless 
otherwise determined by RUS. RUS personnel may prepare an independent 
summary of the operations and maintenance practices of the borrower. 
The borrower's management will discuss this review and evaluation with 
its Board of Directors.

Subpart C--Interconnection of Distributed Resources

0
19. Revise Sec.  1730.100 to read as follows:


Sec.  1730.100  OMB control number.

    The information collection requirements in this part are approved 
by the Office of Management and Budget and assigned OMB control number 
0572-0025.

Andrew Berke,
Administrator, Rural Utilities Service.
[FR Doc. 2024-05076 Filed 3-8-24; 8:45 am]
BILLING CODE 3410-15-P