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.

Proposed Rules Federal Register

64689

Vol. 69, No. 215

Monday, November 8, 2004

DEPARTMENT OF AGRICULTURE 

Rural Utilities Service 

7 CFR Part 1717

RIN 0572–AB97

Elimination of Operational Controls

AGENCY: Rural Utilities Service, USDA.

ACTION: Proposed rule.

SUMMARY: Rural Utilities Service (RUS), 

an agency delivering the United States 

Department of Agriculture’s Rural 

Development utilities programs, 

proposes to amend 7 CFR Part 1717, 

Subpart M, Operational Controls 

(Subpart M), by eliminating the 

provisions thereof. 

Subpart M was promulgated as a 

compliment to the ‘‘new’’ distribution 

borrower loan documents established in 

1995, and was intended to cut back the 

broad reach of certain of the operational 

controls contained in the loan 

documents executed prior to 1995. 

Since 1995, approximately 88 percent of 

distribution borrowers have transitioned 

to the new forms of mortgage and loan 

contract, either by receiving new loans 

from RUS or by executing new 

documents for existing loans. 

Operational controls for these borrowers 

are contained in the new forms of loan 

contract and mortgage, and in other RUS 

regulations. Operational controls for the 

remaining distribution borrowers are 

contained in the pre-1995 loan 

documents, Subpart M, and other RUS 

regulations. 

This amendment will eliminate the 

provisions of Subpart M, thereby 

removing a confusing and cumbersome 

dual system of operational controls. 

Distribution borrowers subject to the 

pre-1995 documents may transition to 

the new loan documents. For those 

borrowers that do not transition, 

operational control decision making 

will be made on a case-by-case basis, 

using, to the extent possible, the level of 

control contained in the new loan 

contract and mortgage.

DATES: Written comments must be 

received by RUS or carry a postmark or 

equivalent no later than January 7, 2005.

ADDRESSES: Submit comments by any of 

the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

online instruction for submitting 

comments. 

• Agency Web site: http://

www.usda.gov/rus/

index2.Comments.htm. Follow the 

instructions for submitting comments. 

• E-mail: RUSComments@usda.gov.

Include in the subject line of the 

message ‘‘7 CFR 1717.’’

• Mail: Addressed to Richard Annan, 

Acting Director, Program Development 

and Regulatory Analysis, Rural Utilities 

Service, United States Department of 

Agriculture, 1400 Independence 

Avenue, STOP 1522, Washington, DC 

20250–1522. RUS requests a signed 

original and three copies of all 

comments (7 CFR 1700.4). 

• Hand Delivery/Courier: Addressed 

to Richard Annan, Acting Director, 

Program Development and Regulatory 

Analysis, Rural Utilities Service, United 

States Department of Agriculture, 1400 

Independence Avenue, SW., Room 

5168–S, Washington, DC 20250–1522. 

• All comments received will be 

made available for public inspection at 

room 5168, South Building, 

Washington, DC, between the 8 a.m. and 

4 p.m. (7 CFR part 1.27(b)).

FOR FURTHER INFORMATION CONTACT:

Doris A. Nolte, Chief, Policy Analysis 

and Loan Management Staff, Rural 

Utilities Service, Electric Program, 

Room 5155 South Building, Stop 1560, 

1400 Independence Ave., SW., 

Washington, DC 20250–1560, 

Telephone: 202–720–0424, FAX: 202–

690–0717, E-mail: doris.nolte@usda.gov.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

This rule has been determined to be 

not significant for 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 titled ‘‘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 appeals 

procedures, if any are required, must be 

exhausted before an action against the 

Department or its agencies may be 

initiated. 

Regulatory Flexibility Act Certification 

Pursuant to 5 U.S.C. 553(a)(2), this 

proposed rule related to loans is exempt 

from the rulemaking requirements of the 

Administrative Procedure Act, 5 U.S.C. 

551 et seq., including the requirement to 

provide prior notice and an opportunity 

for public comment. Because this 

proposed rule is not subject to a 

requirement to provide prior notice and 

an opportunity for public comment 

pursuant to 5 U.S.C. 553, or any other 

law, the analytical requirements of the 

Regulatory Flexibility Act, 5 U.S.C. 601 

et seq. are inapplicable. 

Information Collection and 

Recordkeeping Requirements 

This rule contains no additional 

information collection or recordkeeping 

requirements that require approval 

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 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. 

64690 Federal Register / Vol. 69, No. 215 / Monday, November 8, 2004 / Proposed Rules 

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, U.S. 

Government Printing Office, 

Washington, DC 20402–9325, telephone 

number (202) 512–1800. 

Executive Order 13132, Federalism 

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 states is 

not required. 

Background: On July 18, 1995, RUS 

published a final rule (60 FR 36882) 

establishing new RUS policies and 

requirements for mortgages used to 

secure direct and guaranteed loans 

made to electric distribution borrowers. 

The final rule became effective on 

August 17, 1995. On December 29, 1995, 

RUS published a final rule (60 FR 

67396) to establish new RUS policies 

and requirements for loan contracts 

ordinarily required for loans made to 

electric distribution borrowers; this rule 

became effective on January 29, 1995. 

These new policies and requirements 

reduced RUS oversight of borrowers’

operational decisions, allowing RUS to 

tailor its operational control to a 

borrower’s individual lending 

circumstances and credit risks. 

The ‘‘new’’ forms of mortgages and 

loan contracts (Current Documents) 

used by RUS for distribution loans and 

loan guarantees made after January 29, 

1996 reflect these policies and 

requirements. Distribution borrowers 

(Legacy Borrowers) with loans and loan 

guarantees made prior to January 29, 

1996 under the ‘‘old’’ forms of 

mortgages and loan contracts (Legacy 

Documents) have been encouraged to 

execute the Current Documents, and to 

date approximately 88% of Legacy 

Borrowers have replaced their Legacy 

Documents with Current Documents, 

either by obtaining a new loan or loan 

guarantee from RUS or by substituting 

New Documents for Legacy Documents. 

The December 29, 1995 rulemaking 

also established Subpart M. The 

purpose of Subpart M was to cut back 

the broad reach of certain operational 

controls contained in the Legacy 

Documents through waivers and 

exemptions, thereby bringing the 

operational controls applicable to 

Legacy Borrowers more in line with 

those applicable to distribution 

borrowers under the Current 

Documents. 

RUS believes that maintaining two 

sources of operational controls (i.e. the 

Current Documents, and the Legacy 

Documents supplemented by Subpart 

M) creates a confusing dual system that 

is no longer necessary to provide RUS 

with an appropriate level of operational 

control over its distribution loans and 

loan guarantees. As stated above, the 

vast majority of RUS electric borrowers 

have transitioned to the Current 

Documents, and all future loans and 

loan guarantees to Legacy Borrowers 

will be made using the Current 

Documents. Legacy Borrowers who do 

not anticipate new RUS loans may, by 

request, execute the Current Documents 

for their existing loans, and are 

encouraged to do so. For those Legacy 

Borrowers who chose to retain the 

Legacy Documents, RUS will conduct 

operational control decision making on 

a case-by-case basis, taking into 

consideration the unique characteristics 

of each Legacy Borrower and, in most 

cases, applying that level of operational 

controls contemplated in the Current 

Documents. For these reasons, RUS 

proposes to eliminate the provisions of, 

and reserve, Subpart M.

List of Subjects in 7 CFR Part 1717

Administrative practice and 

procedure, Electric power, Electric 

power rates, Intergovernmental 

relations, Investments, Loan programsenergy, Reporting and recordkeeping 

requirements, Rural areas.

For the reasons set forth in the 

preamble, chapter XVII of title 7 of the 

Code of Federal Regulations, is 

proposed to be amended as follows:

PART 1717—POST-LOAN POLICIES 

AND PROCEDURES COMMON TO 

INSURED AND GUARANTEED 

ELECTRIC LOANS 

1. The authority citation for part 1717 

continues to read as follows:

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

seq., 6941 et seq.

Subpart M—Operational Controls 

2. Subpart M is removed and 

reserved.

Dated: October 29, 2004. 

Curtis M. Anderson, 

Acting Administrator, Rural Utilities Service.

[FR Doc. 04–24789 Filed 11–5–04; 8:45 am] 

BILLING CODE 3410–15–P

NUCLEAR REGULATORY 

COMMISSION 

10 CFR Part 73

[Docket No. PRM–73–12] 

Committee To Bridge the Gap, Receipt 

of Petition for Rulemaking

AGENCY: Nuclear Regulatory 

Commission.

ACTION: Petition for rulemaking; notice 

of receipt. 

SUMMARY: The Nuclear Regulatory 

Commission (NRC) is publishing for 

public comment a notice of receipt of a 

petition for rulemaking, dated July 23, 

2004, which was filed with the 

Commission by Daniel Hirsch, 

President, Committee to Bridge the Gap 

(CBG). The petition was docketed by the 

NRC on September 29, 2004, and has 

been assigned Docket No. PRM–73–12. 

The petitioner requests that the NRC 

amend its regulations to upgrade the 

‘‘design basis threat’’ regulations ((DBT), 

or the magnitude of threat that the 

facility’s security systems must be 

capable of defeating) and associated 

requirements for protection of domestic 

reactors from nuclear terrorism to a 

level that encompasses, with a sufficient 

margin of safety, the terrorist 

capabilities evidenced by the attacks of 

September 11, 2001.

DATES: Submit comments by January 24, 

2005. Comments received after this date 

will be considered if it is practical to do 

so, but the Commission is able to assure 

consideration only for comments 

received on or before this date.

ADDRESSES: You may submit comments 

by any one of the following methods. 

Please include the following number 

PRM–73–12 in the subject line of your 

comments. Comments on petitions 

submitted in writing or in electronic 

form will be made available for public 

inspection. Because your comments will 

not be edited to remove any identifying 

or contact information, the NRC 

cautions you against including any 

information in your submission that you 

do not want to be publicly disclosed.