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

1604

Vol. 66, No. 6

Tuesday, January 9, 2001

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1721

RIN 0572–AB60

Extensions of Payments of Principal

and Interest

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Rural Utilities Service

(RUS) proposes to add procedures and

conditions under which Borrowers may

request extensions of the payment of

principal and interest. These procedures

and conditions are stated in RUS

Bulletin 20–5:320–2, Extensions of

Payments of Principal and Interest,

dated May 10, 1972, and RUS Bulletin

20–23, Section 12 Extensions for Energy

Resources Conservation Loans, dated

December 8, 1980; however, these

procedures and conditions were not

codified in the Code of Federal

Regulations. This regulation will set

forth procedures and conditions under

which Borrowers may request

extensions of principal and interest.

RUS is proposing to rescind upon the

effective date of this regulation RUS

Bulletin 20–5:320–2, and RUS Bulletin

20–23.

DATES: Written comments must be

received by RUS or carry a postmark or

equivalent no later than March 12, 2001.

ADDRESSES: Written comments should

be addressed to Al Rodgers, Deputy

Assistant Administrator, Electric

Program, U.S. Department of

Agriculture, Rural Utilities Service,

Room 4037 South Building, Stop 1560,

1400 Independence Ave., SW.,

Washington, DC 20250–1560.

Telephone (202) 720–9547. RUS

requires a signed original and three

copies of all comments (7 CFR Part

1700). All comments received will be

made available for inspection in room

4037 South Building during regular

business hours.

FOR FURTHER INFORMATION CONTACT: Gail

P. Salgado, Management Analyst, Rural

Utilities Service, Electric Program,

Room 4024 South Building, Stop 1560,

1400 Independence Ave., SW.,

Washington, DC 20250–1560.

Telephone: (202) 205–3660.

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 a 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 the RUS loans and loan

guarantees were not covered by

Executive Order 12372.

Executive Order 12988

This proposed 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, (1) all

State and local laws and regulations that

are in conflict with this rule will be

preempted, (2) no retroactive effect will

be given to this rule, and, (3) in

accordance with sec. 212(e) of the

Department of Agriculture

Reorganization Act of 1994 (7 U.S.C.

sec. 6912(e)), administrative appeals

procedures, if any are required, must be

exhausted prior to initiating an action

against the Department or its agencies.

Regulatory Flexibility Act Certification

The Administrator of RUS has

determined that this rule relating to the

RUS electric loan program is not a rule

as defined by the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.) and therefore,

the Regulatory Flexibility Act does not

apply to this rule. RUS borrowers, as a

result of obtaining federal financing,

receive economic benefits that exceed

any direct costs associated with

complying with RUS regulations and

requirements.

Information Collection and

Recordkeeping Requirements

In accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C.

chapter 35), RUS invites comments on

this information collection for which

RUS intends to request approval from

the Office of Management and Budget

(OMB).

Comments on this notice must be

received by March 12, 2001.

Comments are invited on (a) whether

the collection of information is

necessary for the proper performance of

the functions of the agency, including

whether the information will have

practical utility; (b) the accuracy of the

agency’s estimate of burden including

the validity of the methodology and

assumption used; (c) ways to enhance

the quality, utility and clarity of the

information to be collected; and (d)

ways to minimize the burden of the

collection of information on those who

are to respond, including through the

use of appropriate automated,

electronic, mechanical, or other

technological collection techniques on

other forms of information technology.

Comments may be sent to F. Lamont

Heppe, Jr., Director, Program

Development and Regulatory Analysis,

Rural Utilities Service, U.S. Department

of Agriculture, 1400 Independence Ave.,

SW., Stop 1522, Room 4034 South

Building, Washington, DC 20250–1522.

Title: Extensions of Payments of

Principal and Interest.

Type of Request: New information

collection.

Abstract: To set forth the procedure

for Borrowers’ requests for extensions of

principal and interest.

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average 4.36 hours per

response.

Respondents: Not-for-profit

institutions, business or other for-profit.

Estimated Number of Respondents:

90.

Estimated Number of Responses per

Respondent: 2.

Estimated Total Annual Burden on

Respondents: 180.

Copies of this information collection

can be obtained from Michele Brooks,

Program Development and Regulatory

Analysis, at (202) 690–1078.

All responses to this information

collection and recordkeeping notice will

be summarized and included in the

Federal Register / Vol. 66, No. 6 / Tuesday, January 9, 2001 / Proposed Rules 1605

request for OMB approval. All

comments will also become a matter of

public record.

National Environmental Policy Act

Certification

The Administrator of RUS has

determined that this proposed 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

proposed rule is listed in the Catalog of

Federal Domestic Assistance Programs

under number 10.850, Rural

Electrification Loans and Loan

Guarantees. This catalog is available on

a subscription basis from the

Superintendent of Documents, the

United States Government Printing

Office, Washington, DC 20402–9325,

telephone number (202) 512–1800.

Unfunded Mandates

This rule contains no Federal

mandates (under the regulatory

provisions 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 section

202 and 205 of the Unfunded Mandates

Reform Act.

Background

RUS believes it to be a good business

practice to provide a Borrower the

opportunity to request an extension of

time and payment of principal and

interest where such an extension

provides the Borrower the flexibility to

address financial hardship and achieve

specified program objectives to benefit

rural America.

This proposed rule contains the

procedures and conditions under which

Borrowers may request RUS approval

for extensions of principal and interest

under the circumstances specified in the

proposed rule. Eligible purposes include

financial hardship, energy resource

conservation (ERC) loans, renewable

energy projects, and contributions-inaid of construction. The procedures and

conditions for these purposes have not

previously been codified in the Code of

Federal Regulations. In addition,

eligible new purposes (renewable

energy projects and contributions-in-aid

of construction) are included in this

proposed rule and will follow the same

procedures and conditions as the ERC

loans. Samples of board resolutions

mentioned in the proposed rule can be

located on the RUS webpage, http://

www.usda.gov/rus/electric/forms.htm.

Authority for these extensions are

contained in section 12(a) of the Rural

Electrification Act of 1936 (RE Act), as

amended and section 236 of the Disaster

Relief Act of 1970 (Pub. L. 91–606), as

amended by the Department of

Agriculture Reorganization Act of 1994

(Pub. L. 103–354). RUS proposes to add

procedures and conditions under which

Borrowers may request extensions of

principal and interest. Many of these

procedures and conditions are stated in

RUS Bulletin 20–5:320–2, Extensions of

Payments of Principal and Interest,

dated May 10, 1972, and RUS Bulletin

20–23, Section 12 Extensions for Energy

Resources Conservation Loans, dated

December 8, 1980.

RUS is proposing to rescind upon the

effective date of this regulation RUS

Bulletin 20–5:320–2, Extensions of

Payments of Principal and Interest,

dated May 10, 1972, and RUS Bulletin

20–23, section 12 Extensions for Energy

Resources Conservation Loans, dated

December 8, 1980. RUS believes the

information contained in these bulletins

will be obsolete and unnecessary upon

finalization of the proposed rule.

List of Subjects in 7 CFR Part 1721

Electric power, Loan programs ‘‘

energy, Rural areas.

For the reasons set forth in the

preamble, RUS proposes to amend 7

CFR chapter XVII, part 1721 by adding

subpart B to read as follows:

PART 1721—POST LOAN POLICIES

AND PROCEDURES FOR INSURED

ELECTRIC LOANS

1. The authority citation for part 1721

continues to read:

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

seq., and 6941 et seq.).

2. Add subpart B to read as follows:

Subpart B—Extensions of Payments of

Principal and Interest

Sec.

1721.100 Purpose.

1721.101 General.

1721.102 Definitions.

1721.103 Policy.

1721.104 Eligible purposes.

1721.105 Application documents.

1721.106 Repayment of deferred payment.

1721.107 Agreement.

1721.108 Commencement of the deferment.

§ 1721.100 Purpose.

This subpart contains RUS procedures

and conditions under which Borrowers

may request RUS approval for

extensions for the payment of principal

and interest.

§ 1721.101 General.

The procedures in this subpart are

intended to provide Borrowers with the

flexibility to request an extension of

principal and interest as authorized

under section 12(a) of the RE Act and

section 236 of the Disaster Relief Act of

1970 (Public Law 91–606).

§ 1721.102 Definitions.

The definitions contained in 7 CFR

1710.2 are applicable to this subpart

unless otherwise stated.

§ 1721.103 Policy.

(a) In reviewing requests for extension

of payment of principal and interest,

consideration shall be given to the effect

of such extensions on the security of the

Government’s loans, and on the ability

of the Borrower to achieve program

objectives. It is the policy of RUS to

extend the time for payment of principal

and interest on the basis of findings that

such extension does not impair the

security and feasibility of the

Government’s loans and:

(1) Is essential to the effectiveness of

the Borrower’s operations in achieving

specified program objectives; or

(2) Is necessary to help a Borrower

place its operations on a more stable

financial basis and thereby provide

assurance of repayment of loans within

the time when payments of such loans

are due under the terms of the note or

notes as extended; or

(3) Is otherwise in the best interest of

the Government.

(b) Extensions will be given in the

minimum amount to achieve the

purpose of the extension.

(c) The total amount of interest that

has been deferred will be added to the

principal balance and the total amount

of principal and interest that has been

deferred will be reamortized over the

life of the applicable note beginning in

year six (6).

(d) Payment of principal and interest

will not be extended more than 5 years

after such payment shall have become

due. However, in cases where the

extension is being granted because, at

the sole discretion of the Administrator,

a severe hardship has been experienced,

the Administrator may grant a longer

extension provided that the maturity

date of any such loan does not extended

to a date beyond forty (40) years from

the date of the loan.

§ 1721.104 Eligible purposes.

(a) Deferments for financial hardship.

(1) A Borrower may defer principal or

interest or both in cases of severe

financial hardship. The deferral would

be considered so as to help a Borrower

place its operations on a more stable

1606 Federal Register / Vol. 66, No. 6 / Tuesday, January 9, 2001 / Proposed Rules

financial basis and thereby provide

assurance of repayment of loans within

the time when payment of such loans

are due under the terms of the note or

notes as extended.

(2) The determination as to whether a

Borrower qualifies for the deferment

will be made by RUS on a case-by-case

basis, considering such factors as:

(i) Substantial unreimbursed expenses

relating to storm damage;

(ii) Loss of large power load;

(iii) Substantial loss of consumers or

load due to hostile annexations and

condemnations; or

(iv) Need to substantially upgrade a

borrower’s system to bring it into

compliance with the National Electric

Safety Code (NESC).

(b) Deferments for energy resource

conservation (ERC) loans. (1) A

Borrower may defer principal payments

to make funds available to their

consumers to conserve energy. Amounts

deferred under this program can be used

to cover the cost of labor and materials

for the following energy conservation

measures:

(i) Caulking;

(ii) Weather-stripping;

(iii) Heat pump systems (including

water source heat pumps);

(iv) Heat pumps, water heaters, and

central heating or central air

conditioning system replacements or

modifications, which reduce energy

consumption;

(v) Ceiling insulation;

(vi) Wall insulation;

(vii) Floor insulation;

(viii) Duct insulation;

(ix) Pipe insulation;

(x) Water heater insulation;

(xi) Storm windows;

(xii) Thermal windows;

(xiii) Storm or thermal doors;

(xiv) Electric system coordinated

customer-owned devices that reduce the

maximum kilowatt demand on the

electric system;

(xv) Clock thermostats; or

(xvi) Attic ventilation fans.

(2) ERC loans will be amortized over

not more than 84 months, without

penalty for prepayment of principal.

(c) Deferments for renewable energy

projects. (1) A Borrower may defer

principal payments to finance

renewable energy projects. Amounts

deferred under this program can be used

to cover any and all costs to install all

or part of a renewable energy system

including, without limitation:

(i) Energy conversion technology;

(ii) Electric system interface;

(iii) Delivery equipment;

(iv) Control equipment; and

(v) Certain energy consuming devices.

(2) A Borrower may defer principal

payments for the purpose of providing

its consumers with loans to install all or

part of customer-owned renewable

energy systems up to 5kW.

(3) For the purpose of this subpart, a

renewable energy system is one that can

directly collect and convert solar, wind,

or biomass energy into a usable form of

energy such as electricity or heat.

(4) For the purpose of this subpart, a

renewable energy project consists of one

or more renewable energy systems.

(d) Deferments for contributions-inaid of construction. (1) A Borrower may

defer principal payments to make funds

available to new full time residential

consumers to assist them in paying their

share of the construction costs

(contribution-in-aid of construction)

needed to connect them to the

Borrower’s system.

(2) Amounts available for this purpose

will be limited to the amount of the

construction costs that are in excess of

the average cost per residential

consumer incurred by the Borrower to

connect new permanent residential

consumers during the last calendar year

for which data is available.

§ 17121.105 Application documents.

(a) Deferments for financial hardship.

A Borrower requesting a section 12

deferment because of financial hardship

should submit the following:

(1) A summary of the financial

position of the Borrower, based on the

latest information available (usually less

than 60 days old).

(2) A copy of the board resolution

requesting an extension due to financial

hardship.

(3) A 10-year financial forecast of

revenues and expenses on a cash basis,

by year, for the period of the extension

and 5 years beyond to establish that the

remaining payments can be made as

rescheduled.

(4) A listing of notes or portions of

notes to be extended, the effective date

for the beginning of the extension, and

the length of the extension.

(5) A narrative description of the

nature and cause of the hardship and

the strategy that will be instituted to

mitigate or eliminate the effects of the

hardship.

(b) Deferments for energy resource

conservation loans. A Borrower

requesting principal deferments for an

ERC loan program should submit the

following information:

(1) A letter from the Borrower’s

General Manager requesting an

extension of principal payments for the

purpose of offering an ERC loan

program to its members.

(2) A copy of the board resolution

establishing the ERC loan program and

outlining the details of the program.

(c) Deferments for renewable energy

projects. A Borrower requesting

principal deferments for its renewable

energy project should submit the

following information:

(1) A letter from the Borrower’s

General Manager requesting an

extension of principal payments for the

purpose of offering a renewable energy

project program to its members and

outlining the details of the program.

(2) A copy of the board resolution

establishing the renewable energy

project.

(d) Deferments for contribution-in-aid

of construction. A Borrower requesting

principal deferments for contributionin-aid of construction should submit the

following information:

(1) A letter from the Borrower’s

General Manager requesting an

extension of principal payments for the

purpose of offering a contribution-in-aid

of construction program and outlining

the details of the program.

(2) A copy of the board resolution

establishing the contribution-in-aid of

construction program.

(3) A summary of the calculations

used to determine the average cost per

residential consumer. (See § 1721.104

(d)(2)).

§ 1721.106 Repayment of deferred

payment.

(a) Deferments relating to financial

hardship. The total amount of interest

that has been deferred will be added to

the principal balance and the total

amount of principal and interest that

has been deferred will be reamortized

over the life of the applicable note

beginning in year six (6). For example:

the amount of interest deferred in years

2001, 2002, 2003, 2004, and 2005, will

be added to the principal balance and

reamortized over the life of the

applicable note in year 2006.

(b) Deferments relating to the ERC

loan program, renewable energy project,

and the contribution-in-aid of

construction. An extension agreement is

for a term of two (2) years. The

installment will be recalculated each

time the Borrower defers the payment of

principal and recognition of the

deferred amount will begin with the

next payment. For example: the amount

deferred in the October payment will be

reamortized over a 84 month period

starting with the next payment

(November if paying on a monthly

basis). When a Borrower defers

principal under any of these programs

the scheduled payment on the account

will increase by an amount sufficient to

pay off the deferred amount by the date

specified in the agreement (usually 84

months (28 quarters)).

Federal Register / Vol. 66, No. 6 / Tuesday, January 9, 2001 / Proposed Rules 1607

§ 1721.107 Agreement.

After approval of the Borrower’s

request for a deferment of principal and

interest, an extension agreement,

containing the terms of the extension,

together with associated materials, will

be prepared and forwarded to the

Borrower by RUS.

§ 1721.108 Commencement of the

deferment.

The deferment of principal and

interest will not begin until the

extension agreement and any other

supporting materials requested by RUS

have been executed and returned by the

Borrower to RUS in form and substance

satisfactory to RUS.

Dated: December 19, 2000.

Jill Long Thompson,

Under Secretary, Rural Development.

[FR Doc. 01–557 Filed 1–8–01; 8:45 am]

BILLING CODE 3410–15–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 99–CE–67–AD]

RIN 2120–AA64

Airworthiness Directives; DG

Flugzeugbau GmbH Model DG-800B

Sailplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes to

adopt a new airworthiness directive

(AD) that would apply to certain DG

Flugzeugbau GmbH (DG Flugzeugbau)

Model DG–800B Sailplanes. The

proposed AD would require you to

install an additional filter for the primer

valve; inspect and align the exhaust

system; modify the placement of the

fuel lines if the fuel filter is installed at

the front mounting point of the spindle

drive; and secure the gas strut piston

rod end using Loctite if the piston rod

does rotate. The proposed AD is the

result of mandatory continuing

airworthiness information (MCAI)

issued by the airworthiness authority for

Germany. The actions specified by the

proposed AD are intended to prevent

failure of the fuel line, exhaust system,

and piston rod of the gas strut, which

could result in failure of the engine.

Such failure could lead to loss of power

during critical stages of flight.

DATES: The Federal Aviation

Administration (FAA) must receive any

comments on this proposed rule by

February 20, 2001.

ADDRESSES: Send three copies of your

comments to FAA, Central Region,

Office of the Regional Counsel,

Attention: Rules Docket No. 99–CE–67–

AD, 901 Locust, Room 506, Kansas City,

Missouri 64106. You may read

comments at this location between 8

a.m. and 4 p.m., Monday through

Friday, except holidays.

You may get service information that

applies to the proposed AD from DG

Flugzeugbau, Postbox 41 20, D–76646

Bruchsal, Federal Republic of Germany;

telephone: +49 7257–890; facsimile: +49

7257–8922. You may read this

information at the Rules Docket at the

address above.

FOR FURTHER INFORMATION CONTACT:

Mike Kiesov, Aerospace Engineer, FAA,

Small Airplane Directorate, 901 Locust,

Room 301, Kansas City, Missouri 64106;

telephone: (816) 329–4144; facsimile:

(816) 329–4090.

SUPPLEMENTARY INFORMATION:

Comments Invited

How do I comment on the proposed

AD? We invite your comments on the

proposed rule. You may send whatever

written data, views, or arguments you

choose. You need to include the rule’s

docket number and send your

comments in triplicate to the address

specified under the caption ADDRESSES.

We will consider all comments received

by the closing date specified above,

before acting on the proposed rule. We

may change the proposals contained in

this notice in light of the comments

received.

Are there any specific portions of the

proposed AD I should pay attention to?

The FAA specifically invites comments

on the overall regulatory, economic,

environmental, and energy aspects of

the proposed rule that might require a

change to the proposed rule. You may

look at all comments we receive. We

will file a report in the Rules Docket

that summarizes each FAA contact with

the public that concerns the substantive

parts of this proposal.

We are re-examining the writing style

we currently use in regulatory

documents, in response to the

Presidential memorandum of June 1,

1998. That memorandum requires

federal agencies to communicate more

clearly with the public. We are

interested in your comments on the ease

of understanding this document, and

any other suggestions you might have to

improve the clarity of FAA

communications that affect you. You

can get more information about the

Presidential memorandum and the plain

language initiative at http://

www.faa.gov/language/.

How can I be sure FAA receives my

comment? If you want us to

acknowledge the receipt of your

comments, you must include a selfaddressed, stamped postcard. On the

postcard, write ‘‘Comments to Docket

No. 99-CE–67-AD.’’ We will date stamp

and mail the postcard back to you.

Discussion

What events have caused this

proposed AD? The Luftfahrt-Bundesamt

(LBA), which is the airworthiness

authority for the Federal Republic of

Germany, recently notified FAA that an

unsafe condition may exist on all Model

DG-800B sailplanes equipped with a

SOLO engine. The LBA reports that an

extensive review of the service history

revealed failures of the primer valve,

exhaust system, fuel line, exhaust and

piston rod of the gas strut for the engine.

What are the consequences if the

condition is not corrected? The actions

specified by the proposed AD are

intended to prevent failure of the fuel

line, exhaust system, and piston rod of

the gas strut, which could result in

failure of the engine. Such failure could

lead to loss of power during critical

stages of flight.

Is there service information that

applies to this subject? DG Flugzeugbau

has issued these technical notes (TN):

—TN No. 873/12, dated March 9, 1999;

and

—TN No. 873/13, dated June 30, 1999.

What are the provisions of these

service bulletins? These service

bulletins includes procedures for:

—Installing an additional filter for the

primer valve;

—Inspecting and aligning the exhaust

system;

—Modifying the placement of the fuel

lines if the fuel filter is installed at the

front mounting point of the spindle

drive; and

—Securing the gas strut piston rod end

using Loctite, if the piston rod does

rotate.

What action did the LBA take? The

LBA classified this service information

as mandatory and issued German AD

Number 1999–167, dated May 20, 1999,

and German AD Number 1999–269,

dated July 22, 1999, in order to assure

the continued airworthiness of these

sailplanes in the Germany.

Was this in accordance with the

bilateral airworthiness agreement?

These sailplane models are

manufactured in Germany and are type

certificated for operation in the United

States under the provisions of section

21.29 of the Federal Aviation