236

Pt. 1724 7 CFR Ch. XVII (1–1–00 Edition)

PART 1724—ELECTRIC ENGINEERING, ARCHITECTURAL SERVICES

AND DESIGN POLICIES AND

PROCEDURES

Subpart A—General

Sec.

1724.1 Introduction.

1724.2 Waivers.

1724.3 Definitions.

1724.4 Qualifications.

1724.5 Submission of documents to RUS.

1724.6 Insurance requirements.

1724.7 Debarment and suspension.

1724.8 Restrictions on lobbying.

1724.9 Environmental compliance.

1724.10 Standard forms of contracts for borrowers.

1724.11–1724.19 [Reserved]

Subpart B—Architectural Services

1724.20 Borrowers’ requirements—architectural services.

1724.21 Architectural services contracts.

1724.22–1724.29 [Reserved]

Subpart C—Engineering Services

1724.30 Borrowers’ requirements—engineering services.

1724.31 Engineering services contracts.

1724.32 Inspection and certification of work

order construction.

1724.33–1724.39 [Reserved]

Subpart D—Electric System Planning

1724.40 General.

1724.41–1724.49 [Reserved]

Subpart E—Electric System Design

1724.50 Compliance with National Electrical

Safety Code (NESC).

1724.51 Design requirements.

1724.52 Permitted deviations from RUS construction standards.

1724.53 Preparation of plans and specifications.

1724.54 Requirements for RUS approval of

plans and specifications.

1724.55 Dam safety.

1724.56–1724.69 [Reserved]

APPENDIX A TO SUBPART E TO PART 1724—

HAZARD POTENTIAL CLASSIFICATION FOR

CIVIL WORKS PROJECTS

Subpart F—RUS Contract Forms

1724.70 Standard forms of contracts for borrowers.

1724.71 Borrower contractual obligations.

1724.72 Notice and publication of listed contract forms.

1724.73 Promulgation of new or revised contract forms.

1724.74 List of electric program standard

contract forms.

1724.75–1724.99 [Reserved]

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

6941 et seq.

SOURCE: 63 FR 35314, June 29, 1998, unless

otherwise noted.

Subpart A—General

§ 1724.1 Introduction.

(a) The policies, procedures and requirements in this part implement certain provisions of the standard form of

loan documents between the Rural

Utilities Service (RUS) and its electric

borrowers.

(b) All borrowers, regardless of the

source of financing, shall comply with

RUS’ requirements with respect to design, construction standards, and the

use of RUS accepted material on their

electric systems.

(c) Borrowers are required to use

RUS contract forms only if the facilities are financed by RUS.

§ 1724.2 Waivers.

The Administrator may waive, for

good cause on a case-by-case basis, requirements and procedures of this part.

§ 1724.3 Definitions.

Terms used in this part have the

meanings set forth in §1710.2 of this

chapter. References to specific RUS

forms and other RUS documents, and

to specific sections or lines of such

forms and documents, shall include the

corresponding forms, documents, sections and lines in any subsequent revisions of these forms and documents. In

addition to the terms defined in §1710.2

of this chapter, the following terms

have the following meanings for the

purposes of this part:

Architect means a registered or licensed person employed by the borrower to provide architectural services

for a project and duly authorized assistants and representatives.

Engineer means a registered or licensed person, who may be a staff employee or an outside consultant, to provide engineering services and duly authorized assistants and representatives.

237

Rural Utilities Service, USDA § 1724.9

Force account construction means construction performed by the borrower’s

employees.

GPO means Government Printing Office.

NESC means the National Electrical

Safety Code.

RE Act means the Rural Electrification Act of 1936 as amended (7 U.S.C.

901 et seq.).

Repowering means replacement of the

steam generator or the prime mover or

both at a generating plant.

RUS means Rural Utilities Service.

RUS approval means written approval

by the Administrator or a representative with delegated authority. RUS approval must be in writing, except in

emergency situations where RUS approval may be given orally followed by

a confirming letter.

RUS financed means financed or funded wholly or in part by a loan made or

guaranteed by RUS, including concurrent supplemental loans required by

§1710.110 of this chapter, loans to reimburse funds already expended by the

borrower, and loans to replace interim

financing.

[63 FR 35314, June 29, 1998, as amended at 63

FR 58284, Oct. 30, 1998]

§ 1724.4 Qualifications.

The borrower shall ensure that:

(a) All selected architects and engineers meet the applicable registration

and licensing requirements of the

States in which the facilities will be located;

(b) All selected architects and engineers are familiar with RUS standards

and requirements; and

(c) All selected architects and engineers have had satisfactory experience

with comparable work.

§ 1724.5 Submission of documents to

RUS.

(a) Where to send documents. Documents required to be submitted to RUS

under this part are to be sent to the office of the borrower’s respective RUS

Regional Director, the Power Supply

Division Director, or such other office

of RUS as designated by RUS. (See part

1700 of this chapter.)

(b) Contracts requiring RUS approval.

The borrower shall submit to RUS

three copies of each contract that is

subject to RUS approval under subparts B and C of this part. At least one

copy of each contract must be an original signed in ink (i.e., no facsimile signature). Each contract submittal must

be accompanied by a certified copy of

the board resolution awarding the contract.

(c) Contract amendments requiring RUS

approval. The borrower shall submit to

RUS three copies of each contract

amendment (at least one copy of which

must be an original signed in ink)

which is subject to RUS approval. Each

contract amendment submittal to RUS

must be accompanied by a certified

copy of the board resolution approving

the amendment.

§ 1724.6 Insurance requirements.

(a) Borrowers shall ensure that all

architects and engineers working under

contract with the borrower have insurance coverage as required by part 1788

of this chapter.

(b) Borrowers shall also ensure that

all architects and engineers working

under contract with the borrower have

insurance coverage for Errors and

Omissions (Professional Liability Insurance) in an amount at least as large

as the amount of the architectural or

engineering services contract but not

less than $500,000.

§ 1724.7 Debarment and suspension.

Borrowers shall comply with the requirements on debarment and suspension in connection with procurement

activities as set forth in part 3017 of

this title, particularly with respect to

lower tier transactions, e.g., procurement contracts for goods or services.

§ 1724.8 Restrictions on lobbying.

Borrowers shall comply with the restrictions and requirements in connection with procurement activities as set

forth in part 3018 of this title.

§ 1724.9 Environmental compliance.

Borrowers shall comply with the requirements of part 1794 of this chapter,

Environmental Policies and Procedures

for Electric and Telephone Borrowers.

238

§ 1724.10 7 CFR Ch. XVII (1–1–00 Edition)

§ 1724.10 Standard forms of contracts

for borrowers.

The standard loan agreement between RUS and its borrowers provides

that, in accordance with applicable

RUS regulations in this chapter, the

borrower shall use standard forms of

contracts promulgated by RUS for construction, procurement, engineering

services, and architectural services financed by a loan made or guaranteed

by RUS. This part implements these

provisions of the RUS loan agreement.

Subparts A through E of this part prescribe when and how borrowers are required to use RUS standard forms of

contracts for engineering and architectural services. Subpart F of this part

prescribes the procedures that RUS follows in promulgating standard contract forms and identifies those contract forms that borrowers are required

to use for engineering and architectural services.

[63 FR 58284, Oct. 30, 1998]

§§ 1724.11–1724.19 [Reserved]

Subpart B—Architectural Services

§ 1724.20 Borrowers’ requirements—architectural services.

The provisions of this section apply

to all borrower electric system facilities regardless of the source of financing.

(a) Each borrower shall select a

qualified architect to perform the architectural services required for the

design and construction management

of headquarters facilities. The selection of the architect is not subject to

RUS approval unless specifically required by RUS on a case by case basis.

Architect’s qualification information

need not be submitted to RUS unless

specifically requested by RUS on a case

by case basis.

(b) The architect retained by the borrower shall not be an employee of the

building supplier or contractor, except

in cases where the building is prefabricated and pre-engineered.

(c) The architect’s duties are those

specified under the Architectural Services Contract and under subpart E of

this part, and, as applicable, those duties assigned to the ‘‘engineer’’ for

competitive procurement procedures in

part 1726 of this chapter.

(d) If the facilities are RUS financed,

the borrower shall submit or require

the architect to submit one copy of

each construction progress report to

RUS upon request.

(e) Additional information concerning RUS requirements for electric

borrowers’ headquarters facilities are

set forth in subpart E of this part. See

also RUS Bulletin 1724E–400, Guide to

Presentation of Building Plans and

Specifications, for additional guidance.

This bulletin is available from Program Development and Regulatory

Analysis, Rural Utilities Service, U.S.

Department of Agriculture, Stop 1522,

1400 Independence Ave., SW., Washington, DC 20250–1522.

§ 1724.21 Architectural services contracts.

The provisions of this section apply

only to RUS financed electric system

facilities.

(a) RUS Form 220, Architectural

Services Contract, must be used by

electric borrowers when obtaining architectural services.

(b) The borrower shall ensure that

the architect furnishes or obtains all

architectural services related to the

design and construction management

of the facilities.

(c) Reasonable modifications or additions to the terms and conditions in

the RUS contract form may be made to

define the exact services needed for a

specific undertaking. Such modifications or additions shall not relieve the

architect or the borrower of the basic

responsibilities required by the RUS

contract form, and shall not alter any

terms and conditions required by law.

All substantive changes must be approved by RUS prior to execution of

the contract.

(d) Architectural services contracts

are not subject to RUS approval and

need not be submitted to RUS unless

specifically requested by RUS on a case

by case basis.

(e) Closeout. Upon completion of all

services and obligations required under

each architectural services contract,

including, but not limited to, submission of final documents, the borrower

239

Rural Utilities Service, USDA § 1724.31

must closeout that contract. The borrower shall obtain from the architect a

final statement of cost, which must be

supported by detailed information as

appropriate. For example, out-of-pocket expense and per diem types of compensation should be listed separately

with labor, transportation, etc.,

itemized for each service involving

these types of compensation. RUS

Form 284, Final Statement of Cost for

Architectural Service, may be used. All

computations of the compensation

must be made in accordance with the

terms of the architectural services contract. Closeout documents need not be

submitted to RUS unless specifically

requested by RUS on a case by case

basis.

§§ 1724.22–1724.29 [Reserved]

Subpart C—Engineering Services

§ 1724.30 Borrowers’ requirements—

engineering services.

The provisions of this section apply

to all borrower electric system facilities regardless of the source of financing.

(a) Each borrower shall select one or

more qualified persons to perform the

engineering services involved in the

planning, design, and construction

management of the system.

(b) Each borrower shall retain or employ one or more qualified engineers to

inspect and certify all new construction in accordance with §1724.32. The

engineer must not be the borrower’s

manager.

(c) The selection of the engineer is

not subject to RUS approval unless

specifically required by RUS on a case

by case basis. Engineer’s qualification

information need not be submitted to

RUS unless specifically requested by

RUS on a case by case basis.

(d) The engineer’s duties are specified

under the Engineering Services Contract and under part 1726 of this chapter. The borrower shall ensure that the

engineer executes all certificates and

other instruments pertaining to the engineering details required by RUS.

(e) Additional requirements related

to appropriate seismic safety measures

are contained in part 1792, subpart C, of

this chapter, Seismic Safety of Federally Assisted New Building Construction.

(f) If the facilities are RUS financed,

the borrower shall submit or require

the engineer to submit one copy of

each construction progress report to

RUS upon RUS’ request.

§ 1724.31 Engineering services contracts.

The provisions of this section apply

only to RUS financed electric system

facilities.

(a) RUS contract forms for engineering services shall be used. Reasonable

modifications or additions to the terms

and conditions in the RUS contract

form may be made to define the exact

services needed for a specific undertaking. Any such modifications or additions shall not relieve the engineer or

the borrower of the basic responsibilities required by the RUS contract

form, and shall not alter any terms and

conditions required by law. All substantive changes to the RUS contract

form shall be approved by RUS prior to

execution of the contract.

(b) RUS Form 236, Engineering Service Contract—Electric System Design

and Construction, shall be used for all

distribution, transmission, substation,

and communications and control facilities. These contracts are not subject to

RUS approval and need not be submitted to RUS unless specifically requested by RUS on a case by case basis.

(c) RUS Form 211, Engineering Service Contract for the Design and Construction of a Generating Plant, shall

be used for all new generating units

and repowering of existing units. These

contracts require RUS approval.

(d) Any amendments to RUS approved engineering services contracts

require RUS approval.

(e) Closeout. Upon completion of all

services and obligations required under

each engineering services contract, including, but not limited to, submission

of final documents, the borrower must

closeout the contract. The borrower

shall obtain from the engineer a completed final statement of engineering

fees, which must be supported by detailed information as appropriate. RUS

Form 234, Final Statement of Engineering Fee, may be used. All computations of the compensation shall be

240

§ 1724.32 7 CFR Ch. XVII (1–1–00 Edition)

made in accordance with the terms of

the engineering services contract.

Closeout documents need not be submitted to RUS unless specifically requested by RUS on a case by case basis.

§ 1724.32 Inspection and certification

of work order construction.

The provisions of this section apply

to all borrower electric system facilities regardless of the source of financing.

(a) The borrower shall ensure that all

field inspection and related services

are performed within 6 months of the

completion of construction, and are

performed by a licensed engineer, except that a subordinate of the licensed

engineer may make the inspection,

provided the following conditions are

met:

(1) The inspection by the subordinate

is satisfactory to the borrower;

(2) This practice is acceptable under

applicable requirements of the States

in which the facilities are located;

(3) The subordinate is experienced in

making such inspections;

(4) The name of the person making

the inspection is included in the certification; and

(5) The licensed engineer signs such

certification which appears on the inventory of work orders.

(b) The inspection shall include a

representative and sufficient amount of

construction listed on each RUS Form

219, Inventory of Work Orders (or comparable form), being inspected to assure the engineer that the construction

is acceptable. Each work order that

was field inspected shall be indicated

on RUS Form 219 (or comparable form.)

The inspection services shall include,

but not be limited to, the following:

(1) Determination that construction

conforms to RUS specifications and

standards and to the requirements of

the National Electrical Safety Code

(NESC), State codes, and local codes;

(2) Determination that the staking

sheets or as-built drawings represent

the construction completed and inspected;

(3) Preparation of a list of construction clean-up notes and staking sheet

discrepancies to be furnished to the

owner to permit correction of construction, staking sheets, other records, and

work order inventories;

(4) Reinspection of construction corrected as a result of the engineer’s report;

(5) Noting, initialing, and dating the

staking or structure sheets or as-built

drawings and noting the corresponding

work order entry for line construction;

and

(6) Noting, initialing, and dating the

as-built drawings or sketches for generating plants, substations, and other

major facilities.

(c) Certification. (1) The following certification must appear on all inventories of work orders:

I hereby certify that sufficient inspection

has been made of the construction reported

by this inventory to give me reasonable assurance that the construction complies with

applicable specifications and standards and

meets appropriate code requirements as to

strength and safety. This certification is in

accordance with acceptable engineering

practice.

(2) A certification must also include

the name of the inspector, name of the

firm, signature of the licensed engineer, the engineer’s State license number, and the date of signature.

§§ 1724.33–1724.39 [Reserved]

Subpart D—Electric System

Planning

§ 1724.40 General.

Borrowers shall have ongoing, integrated planning to determine their

short-term and long-term needs for

plant additions, improvements, replacements, and retirements for their

electric systems. The primary components of the planning system consist of

long-range engineering plans and construction work plans. Long-range engineering plans identify plant investments required over a long-range period, 10 years or more. Construction

work plans specify and document plant

requirements for a shorter term, 2 to 4

years. Long-range engineering plans

and construction work plans shall be in

accordance with part 1710, subpart F, of

this chapter. See also RUS Bulletins

1724D–101A, Electric System LongRange Planning Guide, and 1724D–101B,

System Planning Guide, Construction

241

Rural Utilities Service, USDA § 1724.51

Work Plans, for additional guidance.

These bulletins are available from Program Development and Regulatory

Analysis, Rural Utilities Service, U.S.

Department of Agriculture, Stop 1522,

1400 Independence Ave., SW., Washington, DC 20250–1522.

§§ 1724.41–1724.49 [Reserved]

Subpart E—Electric System Design

§ 1724.50 Compliance with National

Electrical Safety Code (NESC).

The provisions of this section apply

to all borrower electric system facilities regardless of the source of financing.

(a) A borrower shall ensure that its

electric system, including all electric

distribution, transmission, and generating facilities, is designed, constructed, operated, and maintained in

accordance with all applicable provisions of the most current and accepted

criteria of the National Electrical

Safety Code (NESC) and all applicable

and current electrical and safety requirements of any State or local governmental entity. Copies of the NESC

may be obtained from the Institute of

Electrical and Electronic Engineers,

Inc., 445 Hoes Lane, Piscataway, NJ

08855. This requirement applies to the

borrower’s electric system regardless

of the source of financing.

(b) Any electrical standard requirements established by RUS are in addition to, and not in substitution for or a

modification of, the most current and

accepted criteria of the NESC and any

applicable electrical or safety requirements of any State or local governmental entity.

(c) Overhead distribution circuits

shall be constructed with not less than

the Grade C strength requirements as

described in Section 26, Strength Requirements, of the NESC when subjected to the loads specified in NESC

Section 25, Loadings for Grades B and

C. Overhead transmission circuits shall

be constructed with not less than the

Grade B strength requirements as described in NESC Section 26.

§ 1724.51 Design requirements.

The provisions of this section apply

to all borrower electric system facilities regardless of the source of financing.

(a) Distribution. All distribution facilities must conform to the applicable

RUS construction standards and utilize

RUS accepted materials.

(b) Transmission lines. (1) All transmission line design data must be approved by RUS.

(2) Design data consists of all significant design features, including, but not

limited to, transmission line design

data summary, general description of

terrain, right-of-way calculations, discussion concerning conductor and

structure selection, conductor sag and

tension information, design clearances,

span limitations due to clearances, galloping or conductor separation, design

loads, structure strength limitations,

insulator selection and design, guying

requirements, and vibration considerations. For lines composed of steel or

concrete poles, or steel towers, in

which load information will be used to

purchase the structures, the design

data shall also include loading trees,

structure configuration and selection,

and a discussion concerning foundation

selection.

(3) Line design data for uprating

transmission lines to higher voltage

levels or capacity must be approved by

RUS.

(4) Transmission line design data

which has received RUS approval in

connection with a previous transmission line construction project for a

particular borrower is considered approved by RUS for that borrower, provided that:

(i) The conditions on the project fall

within the design data previously approved; and

(ii) No significant NESC revisions

have occurred.

(c) Substations. (1) All substation design data must be approved by RUS.

(2) Design data consists of all significant design features, including, but not

limited to, a discussion of site considerations, oil spill prevention measures,

design considerations covering voltage,

capacity, shielding, clearances, number

of low and high voltage phases, major

equipment, foundation design parameters, design loads for line support

242

§ 1724.52 7 CFR Ch. XVII (1–1–00 Edition)

structures and the control house, seismic considerations, corrosion, grounding, protective relaying, and AC and

DC auxiliary systems. Reference to applicable safety codes and construction

standards are also to be included.

(3) Substation design data which has

received RUS approval in connection

with a previous substation construction project for a particular borrower

is considered approved by RUS for that

borrower, provided that:

(i) The conditions on the project fall

within the design data previously approved; and

(ii) No significant NESC revisions

have occurred.

(d) Generating facilities. (1) This section covers all portions of a generating

plant including plant buildings, the

generator step-up transformer, and the

transmission switchyard at a generating plant. Warehouses and equipment

service buildings not associated with

generation plants are covered under

paragraph (e) of this section. Generation plant buildings must meet the requirements of paragraph (e)(1) of this

section.

(2) For all new generation units and

for all repowering projects, the design

outline shall be approved by RUS, unless RUS determines that a design outline is not needed for a particular

project.

(3) The design outline will include all

significant design criteria. During the

early stages of the project, RUS will, in

consultation with the borrower and its

consulting engineer, identify the specific items which are to be included in

the design outline.

(e) Headquarters—(1) Applicable laws.

The design and construction of headquarters facilities shall comply with

all applicable Federal, State, and local

laws and regulations, including, but

not limited to:

(i) Section 504 of the Rehabilitation

Act of 1973, (29 U.S.C. 794), which states

that no qualified individual with a

handicap shall, solely by reason of

their handicap, be excluded from participation in, be denied the benefits of,

or be subject to discrimination under

any program or activity receiving Federal financial assistance. The Uniform

Federal Accessibility Standards (41

CFR part 101–19, subpart 101–19.6, appendix A) are the applicable standards

for all new or altered borrower buildings, regardless of the source of financing.

(ii) The Architectural Barriers Act of

1968 (42 U.S.C. 4151), which requires

that buildings financed with Federal

funds are designed and constructed to

be accessible to the physically handicapped.

(iii) The Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7701 et seq.),

and Executive Order 12699, Seismic

Safety of Federal and Federally Assisted or Regulated New Building Construction (3 CFR 1990 Comp., p. 269).

Appropriate seismic safety provisions

are required for new buildings for

which RUS provides financial assistance. (See part 1792, subpart C, of this

chapter.)

(2) The borrower shall provide evidence, satisfactory in form and substance to the Administrator, that each

building will be designed and built in

compliance with all Federal, State, and

local requirements.

(f) Communications and control. (1)

This section covers microwave and

powerline carrier communications systems, load control, and supervisory

control and data acquisition (SCADA)

systems.

(2) The performance considerations

for a new or replacement master system must be approved by RUS. A master system includes the main controller and related equipment at the

main control point. Performance considerations include all major system

features and their justification, including, but not limited to, the objectives

of the system, the types of parameters

to be controlled or monitored, the communication media, alternatives considered, and provisions for future needs.

§ 1724.52 Permitted deviations from

RUS construction standards.

The provisions of this section apply

to all borrower electric system facilities regardless of the source of financing.

(a) Structures for raptor protection. (1)

RUS standard distribution line structures may not have the extra measure

of protection needed in areas frequented by eagles and other large

243

Rural Utilities Service, USDA § 1724.53

raptors to protect such birds from electric shock due to physical contact with

energized wires. Where raptor protection in the design of overhead line

structures is required by RUS; a Federal, State or local authority with permit or license authority over the proposed construction; or where the borrower voluntarily elects to comply

with the recommendations of the U.S.

Fish and Wildlife Service or State wildlife agency, borrowers are permitted to

deviate from RUS construction standards, provided:

(i) Structures are designed and constructed in accordance with ‘‘Suggested Practices for Raptor Protection

on Powerlines: The State of the Art in

1996’’ (Suggested Practices for Raptor

Protection); and,

(ii) Structures are in accordance with

the NESC and applicable State and

local regulations.

(2) Any deviation from the RUS construction standards for the purpose of

raptor protection, which is not in accordance with the Suggested Practices

for Raptor Protection, must be approved by RUS prior to construction.

‘‘Suggested Practices for Raptor Protection on Powerlines: The State of the

Art in 1996,’’ published by the Edison

Electric Institute/Raptor Research

Foundation, is hereby incorporated by

reference. This incorporation by reference is approved by the Director of

the Office of the Federal Register in

accordance with 5 U.S.C. 552(a) and 1

CFR part 51. Copies of this publication

may be obtained from the Raptor Research Foundation, Inc., c/o Jim

Fitzpatrick, Treasurer, Carpenter Nature Center, 12805 St. Croix Trail

South, Hastings, Minnesota 55033. It is

also available for inspection during

normal business hours at RUS, Electric

Staff Division, 1400 Independence Avenue, SW., Washington, DC, Room 1246–

S, and at the Office of the Federal Register, 800 North Capitol Street, NW.,

Suite 700, Washington, DC.

(b) Transformer neutral connections.

Where it is necessary to separate the

primary and secondary neutrals to provide the required electric service to a

consumer, the RUS standard transformer secondary neutral connections

may be modified in accordance with

Rule 97D2 of the NESC.

(c) Lowering of neutral conductor on

overhead distribution lines. (1) It is permissible to lower the neutral attachment on standard construction poletop assemblies an additional distance

not exceeding two feet (0.6 m) for the

purpose of economically meeting the

clearance requirements of the NESC.

(2) It is permissible to lower the

transformer and associated neutral attachment up to two feet (0.6 m) to provide adequate clearance between the

cutouts and single-phase, conventional

distribution transformers.

(3) It is permissible to lower the neutral attachment on standard construction pole-top assemblies an additional

distance of up to six feet (2 m) for the

purpose of performing construction and

future line maintenance on these assemblies from bucket trucks designed

for such work.

§ 1724.53 Preparation of plans and

specifications.

The provisions of this section apply

to all borrower electric system facilities regardless of the source of financing.

(a) General. (1) The borrower (acting

through the engineer, if applicable)

shall prepare plans and specifications

that adequately represent the construction to be performed.

(2) Plans and specifications for distribution, transmission, or generating

facilities must be based on a construction work plan (as amended, if applicable), engineering study or construction

program which has been approved by

RUS if financing for the facilities will

at any time be requested from RUS.

(b) Composition of plans and specifications package. (1) Whether built by force

account or contract, each set of plans

and specifications must include:

(i) Distribution lines. Specifications

and drawings, staking sheets, key map

and appropriate detail maps;

(ii) Transmission lines. Specifications

and drawings, transmission line design

data manual, vicinity maps of the

project, a one-line diagram, and plan

and profile sheets;

(iii) Substations. Specifications and

drawings, including a one-line diagram,

plot and foundation plan, grounding

plan, and plans and elevations of structure and equipment, as well as all

244

§ 1724.54 7 CFR Ch. XVII (1–1–00 Edition)

other necessary construction drawings,

in sufficient detail to show phase spacing and ground clearances of live parts;

(iv) Headquarters. Specifications and

drawings, including:

(A) A plot plan showing the location

of the proposed building plus paving

and site development;

(B) A one line drawing (floor plan and

elevation view), to scale, of the proposed building with overall dimensions

shown; and

(C) An outline specification including

materials to be used (type of frame, exterior finish, foundation, insulation,

etc.); and

(v) Other facilities (e.g., generation and

communications and control facilities).

Specifications and drawings, as necessary and in sufficient detail to accurately define the scope and quality of

work required.

(2) For contract work, the appropriate standard RUS construction contract form shall be used as required by

part 1726 of this chapter.

§ 1724.54 Requirements for RUS approval of plans and specifications.

The provisions of this section apply

only to RUS financed electric system

facilities.

(a) For any contract subject to RUS

approval in accordance with part 1726

of this chapter, the borrower shall obtain RUS approval of the plans and

specifications, as part of the proposed

bid package, prior to requesting bids.

RUS may require approval of other

plans and specifications on a case by

case basis.

(b) Distribution lines. RUS approval of

the plans and specifications for distribution line construction is not required if standard RUS drawings, specifications, RUS accepted material, and

standard RUS contract forms (as required by part 1726 of this chapter) are

used. Drawings, plans and specifications for nonstandard distribution construction must be submitted to RUS

and receive approval prior to requesting bids on contracts or commencement of force account construction.

(c) Transmission lines. (1) Plans and

specifications for transmission construction projects which are not based

on RUS approved line design data or do

not use RUS standard structures must

receive RUS approval prior to requesting bids on contracts or commencement of force account construction.

(2) Unless RUS approval is required

by paragraph (a) of this section, plans

and specifications for transmission

construction which use previously approved design data and standard structures do not require RUS approval.

Plans and specifications for related

work, such as right-of-way clearing,

equipment, and materials, do not require RUS approval unless required by

paragraph (a) of this section.

(d) Substations. (1)(i) Plans and specifications for all new substations must

receive RUS approval prior to requesting bids on contracts or commencement of force account construction,

unless:

(A) The substation design has been

previously approved by RUS; and

(B) No significant NESC revisions

have occurred.

(ii) The borrower shall notify RUS in

writing that a previously approved design will be used, including identification of the previously approved design.

(2) Unless RUS approval is required

by paragraph (a) of this section, plans

and specifications for substation modifications and for substations using previously approved designs do not require

RUS approval.

(e) Generation facilities. (1) This paragraph (e) covers all portions of a generating plant including plant buildings,

the generator step-up transformer, and

the transmission switchyard at a generating plant. Warehouses and equipment service buildings not associated

with generation plants are covered

under paragraph (f) of this section.

(2) The borrower shall obtain RUS

approval, prior to issuing invitations

to bid, of the terms and conditions for

all generating plant equipment or construction contracts which will cost

$1,500,000 or more. Unless RUS approval

is required by paragraph (a) of this section, plans and specifications for generating plant equipment and construction do not require RUS approval.

(f) Headquarters buildings. (1) This

paragraph (f) covers office buildings,

warehouses, and equipment service

buildings. Generating plant buildings

are covered under paragraph (e) of this

section.

245

Rural Utilities Service, USDA § 1724.55

(2) The borrower shall obtain RUS

approval of the plans and specifications

for all headquarters buildings prior to

issuing invitations to bid. The borrower shall also submit two copies of

RUS Form 740g, Application for Headquarters Facilities. The application

must show surface area and estimated

cost breakdown between office building

space and space for equipment

warehousing and service facilities. This

form is available from Program Development and Regulatory Analysis,

Rural Utilities Service, U.S. Department of Agriculture, Stop 1522, 1400

Independence Ave., SW., Washington,

DC 20250–1522.

(g) Communications and control facilities. (1) This paragraph (g) covers

microwave and powerline carrier communications systems, load control, and

supervisory control and data acquisition (SCADA) systems.

(2) The borrower shall obtain RUS

approval, prior to issuing invitations

to bid, of the terms and conditions for

communications and control facilities

contracts which will cost $500,000 or

more. Unless RUS approval is required

by paragraph (a) of this section, plans

and specifications for communications

and control facilities do not require

RUS approval.

(h) Terms and conditions include the

RUS standard form of contract, general

and special conditions, and any other

non-technical provisions of the contract. Terms and conditions which

have received RUS approval in connection with a previous contract for a particular borrower are considered approved by RUS for that borrower.

§ 1724.55 Dam safety.

(a) The provisions of this section

apply only to RUS financed electric

system facilities.

(1)(i) Any borrower that owns or operates a RUS financed dam must utilize the‘‘Federal Guidelines for Dam

Safety,’’(Guidelines), as applicable. A

dam, as more fully defined in the

Guidelines, is generally any artificial

barrier which either:

(A) Is 25 feet (8 m) or more in height;

or

(B) Has an impounding capacity at

maximum water storage elevation of 55

acre-feet (68,000 m3) or more.

(ii) The‘‘Federal Guidelines for Dam

Safety,’’FEMA 93, June, 1979, published

by the Federal Emergency Management Agency (FEMA), is hereby incorporated by reference. This incorporation by reference is approved by the Director of the Office of the Federal Register in accordance with 5 U.S.C. 552(a)

and 1 CFR part 51. Copies of

the‘‘Federal Guidelines for Dam Safety’’may be obtained from the Federal

Emergency Management Agency, Mitigation Directorate, PO Box 2012,

Jessup, MD 20794. It is also available

for inspection during normal business

hours at RUS, Electric Staff Division,

1400 Independence Avenue, SW., Washington, DC, Room 1246–S, and at the Office of the Federal Register, 800 North

Capitol Street, NW., Suite 700, Washington, DC.

(2) The borrower shall evaluate the

hazard potential of its dams in accordance with Appendix E of the U.S. Army

Corps of Engineers Engineering and Design Dam Safety Assurance Program,

ER 1110–2–1155, July 31, 1995. A summary of the hazard potential criteria is

included for information as Appendix A

to this subpart. The U.S. Army Corps

of Engineers Engineering and Design

Dam Safety Assurance Program, ER

1110–2–1155, July 31, 1995, published by

the United States Army Corps of Engineers, is hereby incorporated by reference. This incorporation by reference

is approved by the Director of the Office of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR

part 51. Copies of the U. S. Army Corps

of Engineers Engineering and Design

Dam Safety Assurance Program may

be obtained from the U. S. Army Corps

of Engineers, Publications Depot, 2803

52nd Ave., Hyattsville, MD 20781. It is

also available for inspection during

normal business hours at RUS, Electric

Staff Division, 1400 Independence Avenue, SW., Washington, DC, Room 1246–

S, and at the Office of the Federal Register, 800 North Capitol Street, NW.,

Suite 700, Washington, DC.

(3) For high hazard potential dams,

the borrower must obtain an independent review of the design and critical features of construction. The reviewer must have demonstrated experience in the design and construction of

dams of a similar size and nature. The

246

§§ 1724.56—1724.69 7 CFR Ch. XVII (1–1–00 Edition)

reviewer must be a qualified engineer

not involved in the original design of

the dam or a Federal or State agency

responsible for dam safety. The reviewer must be approved by RUS.

(4) The independent review of design

must include, but not necessarily be

limited to, plans, specifications, design

calculations, subsurface investigation

reports, hydrology reports, and redesigns which result from encountering

unanticipated or unusual conditions

during construction.

(5) The independent review of construction shall include:

(i) Foundation preparation and treatment. When the foundation has been excavated and exposed, and before critical structures such as earth embankments or concrete structures are

placed thereon, the borrower shall require the reviewer to conduct an independent examination of the foundation

to ensure that suitable foundation material has been reached and that the

measures proposed for treatment of the

foundation are adequate. This examination must extend to the preparation

and treatment of the foundation for

the abutments.

(ii) Fill placement. During initial

placement of compacted fill materials,

the borrower shall require the reviewer

to conduct an independent examination

to ensure that the materials being used

in the various zones are suitable and

that the placement and compaction

procedures being used by the contractor will result in a properly constructed embankment.

(6) If the reviewer disagrees with any

aspect of the design or construction

which could affect the safety of the

dam, then the borrower must meet

with the design engineer and the reviewer to resolve the disagreements.

(7) Emergency action plan. For high

hazard potential dams, the borrower

must develop an emergency action plan

incorporating preplanned emergency

measures to be taken prior to and following a potential dam failure. The

plan should be coordinated with local

government and other authorities involved with the public safety and be

approved by the borrower’s board of directors.

(b)(1) For more information and guidance, the following publications regarding dam safety are available from

FEMA:

(i)‘‘Emergency Action Planning

Guidelines for Dams,’’FEMA 64.

(ii)‘‘Federal Guidelines for Earthquake Analysis and Design of

Dams,’’FEMA 65.

(iii)‘‘Federal Guidelines for Selecting

and Accommodating Inflow Design

Floods for Dams,’’FEMA 94.

(iv)‘‘Dam Safety: An Owner’s Guidance Manual,’’FEMA 145, August, 1987.

(2) These publications may be obtained from the Federal Emergency

Management Agency, Mitigation Directorate, PO Box 2012, Jessup, MD

20794.

§§ 1724.56—1724.69 [Reserved]

APPENDIX A TO SUBPART E TO PART

1724—HAZARD POTENTIAL CLASSIFICATION FOR CIVIL WORKS

PROJECTS

The source for this appendix is U.S. Army

Corps of Engineers Engineering and Design

Dam Safety Assurance Program, ER 1110–2–

1155, Appendix E. Appendix E is available

from the address listed in §1724.55(a)(2).

247

Rural Utilities Service, USDA Pt. 1724, Subpt. E, App. A Category 1 Low Significant High Direct Loss of Life 2 ................................................................................ None expected (due to rural location with no permanent structures for human habitation) Uncertain (rural location with few residences and only transient or industrial development) Certain (one or more extensive residential, commercial or industrial development). Lifeline Losses 3 ...................................................................................... No disruption of services—repairs are cosmetic or rapidly repairable damage Disruption of essential facilities and access Disruption of critical facilities and access. Property Losses 4 ................................................................................... Private agricultural lands, equipment and isolated buildings Major public and private facilities Extensive public and private facilities. Environmental Losses 5 .......................................................................... Minimal incremental damage Major mitigation required Extensive mitigation cost or impossible to mitigate. Notes:

1 Categories are based upon project performance and do not apply to individual structures within a project.2 Loss of life potential based upon inundation mapping of area downstream of the project. Analysis of loss of life potential should take into account the extent of development and associated population at risk, time of flood wave travel and warning time.3 Indirect threats to life caused by the interruption of lifeline services due to project failure, or operation, i.e., direct loss of (or access to) critical medical facilities or loss of water or power

supply, communications, power supply, etc.

4 Direct economic impact of value of property damages to project facilities and down stream property and indirect economic impact due to loss of project services, i.e., impact on navigation industry of the loss of a dam and navigation pool, or impact upon a community of the loss of water or power supply.5Environmental impact downstream caused by the incremental flood wave produced by the project failure, beyond which would normally be expected for the magnitude flood event under

a without project conditions.

248

§ 1724.70 7 CFR Ch. XVII (1–1–00 Edition)

Subpart F—RUS Contract Forms

§ 1724.70 Standard forms of contracts

for borrowers.

(a) General. The standard loan agreement between RUS and its borrowers

provides that, in accordance with applicable RUS regulations in this chapter, the borrower shall use standard

forms of contract promulgated by RUS

for construction, procurement, engineering services, and architectural

services financed by a loan made or

guaranteed by RUS. (See section 5.16 of

appendix A to subpart C of part 1718 of

this chapter.) This subpart prescribes

RUS procedures in promulgating electric program standard contract forms

and identifies those forms that borrowers are required to use.

(b) Contract forms. RUS promulgates

standard contract forms, identified in

the List of Required Contract Forms,

§1724.74(c), that borrowers are required

to use in accordance with the provisions of this part. In addition, RUS

promulgates standard contract forms

identified in the List of Guidance Contract Forms contained in §1724.74(c)

that the borrowers may but are not required to use in the planning, design,

and construction of their electric systems. Borrowers are not required to

use these guidance contract forms in

the absence of an agreement to do so.

[63 FR 58284, Oct. 30, 1998]

§ 1724.71 Borrower contractual obligations.

(a) Loan agreement. As a condition of

a loan or loan guarantee under the RE

Act, borrowers are normally required

to enter into RUS loan agreements

pursuant to which the borrower agrees

to use RUS standard forms of contracts

for construction, procurement, engineering services and architectural

services financed in whole or in part by

the RUS loan. Normally, this obligation is contained in section 5.16 of the

loan contract. To comply with the provisions of the loan agreements as implemented by this part, borrowers must

use those forms of contract (hereinafter sometimes called‘‘listed contract

forms’’) identified in the List of Required Standard Contract Forms contained in §1724.74(c).

(b) Compliance. If a borrower is required by this part to use a listed contract form, the borrower shall use the

listed contract form in the format

available from RUS. The forms shall

not be retyped, changed, modified, or

altered in any manner not specifically

authorized in this part or approved by

RUS in writing. Any modifications approved by RUS must be clearly shown

so as to indicate the difference from

the listed contract form. Electronic reproduction is not acceptable.

(c) Amendment. Where a borrower has

entered into a contract in the form required by this part, no change may be

made in the terms of the contract, by

amendment, waiver or otherwise, without the prior written approval of RUS.

(d) Waiver. RUS may waive for good

cause, on a case by case basis, the requirements imposed on a borrower pursuant to this part. Borrowers seeking a

waiver by RUS must provide RUS with

a written request explaining the need

for the waiver.

(e) Violations. A failure on the part of

the borrower to use listed contracts as

prescribed in this part is a violation of

the terms of its loan agreement with

RUS and RUS may exercise any and all

remedies available under the terms of

the agreement or otherwise.

[63 FR 58285, Oct. 30, 1998]

§ 1724.72 Notice and publication of

listed contract forms.

(a) Notice. Upon initially entering

into a loan agreement with RUS, borrowers will be provided with all listed

contract forms. Thereafter, new or revised listed contract forms promulgated by RUS, including RUS approved

exceptions and alternatives, will be

sent by regular or electronic mail to

the address of the borrower as identified in its loan agreement with RUS.

(b) Availability. Listed contract forms

are published by RUS. Interested parties may obtain the forms from: Rural

Utilities Service, Program Development and Regulatory Analysis, U.S.

Department of Agriculture, Stop 1522,

1400 Independence Avenue, SW., Stop

1522, Washington, DC 20250–1522, telephone number (202) 720–8674. The list of

contract forms can be found in

249

Rural Utilities Service, USDA § 1724.74

§1724.74(c), List of Required Contract

Forms.

[63 FR 58285, Oct. 30, 1998]

§ 1724.73 Promulgation of new or revised contract forms.

RUS may, from time to time, undertake to promulgate new contract forms

or revise or eliminate existing contract

forms. In so doing, RUS shall publish

notice of rulemaking in the FEDERAL

REGISTER announcing, as appropriate, a

revision in, or a proposal to amend

§1724.74, List of Electric Program

Standard Contract Forms. The amendment may change the existing identification of a listed contract form; for

example, changing the issuance date of

a listed contract form or by identifying

a new required contract form. The notice of rulemaking will describe the

new standard contract form or the substantive change in the listed contract

form, as the case may be, and the

issues involved. The standard contract

form or relevant portions thereof may

be appended to the supplementary information section of the notice of rulemaking. As appropriate, the notice of

rulemaking shall provide an opportunity for interested persons to provide

comments. A copy of each such FEDERAL REGISTER document shall be sent

by regular or electronic mail to all borrowers.

[63 FR 58285, Oct. 30, 1998]

§ 1724.74 List of electric program

standard contract forms.

(a) General. The following is a list of

RUS electric program standard contract forms for architectural and engineering services. Paragraph (c) of this

section contains the list of required

contract forms, i.e., those forms of contracts that borrowers are required to

use by the terms of their RUS loan

agreements as implemented by the provisions of this part. Paragraph (d) of

this section contains the list of guidance contract forms, i.e., those forms of

contracts provided as guidance to borrowers in the planning, design, and

construction of their systems. All of

these forms are available from RUS.

See §1724.72(b) for availability of these

forms.

(b) Issuance date. Where required by

this part to use a standard form of contract in connection with RUS financing, the borrower shall use that form

identified by issuance date in the List

of Required Contract Forms in paragraph (c) of this section, as most recently published as of the date the borrower executes the contract.

(c) List of required contract forms. (1)

RUS Form 211, Rev. 6–98, Engineering

Service Contract for the Design and

Construction of a Generating Plant.

This form is used for engineering services for generating plant construction.

(2) RUS Form 220, Rev. 6–98, Architectural Services Contract. This form

is used for architectural services for

building construction.

(3) RUS Form 236, Rev. 6–98, Engineering Service Contract—Electric

System Design and Construction. This

form is used for engineering services

for distribution, transmission, substation, and communications and control facilities.

(d) List of guidance contract forms. (1)

RUS Form 179, Rev. 9–66, Architects

and Engineers Qualifications. This

form is used to document architects

and engineers qualifications.

(2) RUS Form 215, Rev. 5–67, Engineering Service Contract—System

Planning. This form is used for engineering services for system planning.

(3) RUS Form 234, Rev. 3–57, Final

Statement of Engineering Fee. This

form is used for the closeout of engineering services contracts.

(4) RUS Form 241, Rev. 3–56, Amendment of Engineering Service Contract.

This form is used for amending engineering service contracts.

(5) RUS Form 244, Rev. 12–55, Engineering Service Contract—Special

Services. This form is used for miscellaneous engineering services.

(6) RUS Form 258, Rev. 4–58, Amendment of Engineering Service Contract—Additional Project. This form is

used for amending engineering service

contracts to add an additional project.

(7) RUS Form 284, Rev. 2–84, Final

Statement of Cost for Architectural

Service. This form is used for the closeout of architectural services contracts.

(8) RUS Form 297, Rev. 12–55, Engineering Service Contract—Retainer for

Consultation Service. This form is used

250

§§ 1724.75–1724.99 7 CFR Ch. XVII (1–1–00 Edition)

for engineering services for consultation service on a retainer basis.

(9) RUS Form 459, Rev. 9–58, Engineering Service Contract—Power

Study. This form is used for engineering services for power studies.

[63 FR 58285, Oct. 30, 1998]

§§ 1724.75–1724.99 [Reserved]

PART 1726—ELECTRIC SYSTEM

CONSTRUCTION POLICIES AND

PROCEDURES

Subpart A—General

Sec.

1726.1—1726.9 [Reserved]

1726.10 Introduction.

1726.11 Purpose.

1726.12 Applicability.

1726.13 Waivers.

1726.14 Definitions.

1726.15 ‘‘Buy American’’.

1726.16 Debarment and suspension.

1726.17 Restrictions on lobbying.

1726.18 Preloan contracting.

1726.19 Use of competitive procurement.

1726.20 Standards and specifications.

1726.21 New materials.

1726.22 Methods of construction.

1726.23 Qualification of bidders.

1726.24 Standard forms of contracts for borrowers.

1726.25 Subcontracts.

1726.26 Interest on overdue accounts.

1726.27 Contractor’s bonds.

1726.28—1726.34 [Reserved]

1726.35 Submission of documents to RUS.

1726.36 Documents subject to RUS approval.

1726.37 OMB control number.

1726.38—1726.49 [Reserved]

Subpart B—Distribution Facilities

1726.50 Distribution line materials and

equipment.

1726.51 Distribution line construction.

1726.52—1726.74 [Reserved]

Subpart C—Substation and Transmission

Facilities

1726.75 General.

1726.76 Substation and transmission line

materials and equipment.

1726.77 Substation and transmission line

construction.

1726.78—1726.124 [Reserved]

Subpart D—Generation Facilities

1726.125 Generating plant facilities.

1726.126—1726.149 [Reserved]

Subpart E—Buildings

1726.150 Headquarters buildings.

1726.151—1726.174 [Reserved]

Subpart F—General Plant

1726.175 General plant materials.

1726.176 Communications and control facilities.

1726.177—1726.199 [Reserved]

Subpart G—Procurement Procedures

1726.200 General requirements.

1726.201 Formal competitive bidding.

1726.202 Informal competitive bidding.

1726.203 Multiparty negotiation.

1726.204 Multiparty unit price quotations.

1726.205 Multiparty lump sum quotations.

1726.206—1726.249 [Reserved]

Subpart H—Modifications to RUS Standard

Contract Forms

1726.250 General.

1726.251 Prior approved contract modification related to price escalation on transmission equipment, generation equipment, and generation construction contracts.

1726.252 Prior approved contract modification related to liability for special and

consequential damages.

1726.253 Prior approved contract modification related to alternative bid provision

for payment to contractor for bulk purchase of materials.

1726.254 Prior approved contract modifications related to RUS approval of contracts and amendments and modified bidding requirements.

1726.255 Prior approved contract modifications related to indemnification.

1726.256—1726.299 [Reserved]

Subpart I—RUS Standard Forms

1726.300 Standard forms of contracts for

borrowers.

1726.301 Borrower contractual obligations.

1726.302 Notice and publication of listed

contract forms.

1726.303 Promulgation of new or revised

contract forms.

1726.304 List of electric program standard

contract forms.

1726.305—1726.399 [Reserved]

Subpart J—Contract Closeout

1726.400 Final contract amendment.

1726.401 Material contract closeout.

1726.402 Equipment contract closeout.

1726.403 Project construction contract

closeout.

1726.404 Non-site specific construction contract closeout.