\[Federal Register: April 2, 1998 (Volume 63, Number 63)\]

\[Rules and Regulations\]

\[Page 16085-16088\]

From the Federal Register Online via GPO Access \[wais.access.gpo.gov\]

\[DOCID:fr02ap98-1\]

========================================================================

Rules and Regulations

Federal Register

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of
Documents.

Prices of new books are listed in the first FEDERAL REGISTER issue of
each

week.

========================================================================

\[\[Page 16085\]\]

=======================================================================

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

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.

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

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 fheppe@rus.usda.gov.

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