[Federal Register Volume 62, Number 73 (Wednesday, April 16, 1997)]
[Proposed Rules]
[Pages 18544-18547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9849]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
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.
========================================================================
Federal Register / Vol. 62, No. 73 / Wednesday, April 16, 1997 /
Proposed Rules
[[Page 18544]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1730
RIN 0572--AA74
Electric System Operations and Maintenance
AGENCY: Rural Utilities Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Rural Utilities Service (RUS), successor to the Rural
Electrification Administration (REA), proposes to amend its regulations
by adding a new part concerning electric system operations and
maintenance. These new regulations would codify and clarify RUS policy
relating to the operations and maintenance of electric systems by RUS
electric borrowers. Also included is RUS policy relating to the review
and evaluation of borrowers' electric systems and facilities operations
and maintenance practices. These policies are presently contained in
RUS/REA Bulletin 161-5, which will be rescinded when the final rule
becomes effective. This proposed action is intended to clarify the
policies, procedures, and requirements, facilitate understanding and
compliance, and improve program effectiveness with respect to electric
system operations and maintenance.
DATES: Written comments must be received by RUS, or bear a postmark or
equivalent, no later than June 16, 1997.
ADDRESSES: Submit written comments to George J. Bagnall, Director,
Electric Staff Division, Rural Utilities Service, U.S. Department of
Agriculture, Stop 1569, 1400 Independence Ave, SW., Washington, DC
20250-1569. RUS requires a signed original and 3 copies of all comments
(Sec. 1700.30(e)). Comments will be made available for public
inspection at room 4034 South Building between 8:30 a.m. and 5 p.m. on
official work days (7 CFR 1.27(b)).
FOR FURTHER INFORMATION CONTACT: Mr. Fred J. Gatchell, Deputy Director,
Electric Staff Division, Rural Utilities Service, U.S. Department of
Agriculture, Stop 1569, 1400 Independence Ave, SW., Washington, DC
20250-1569, telephone (202) 720-1398.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule has been determined to be not significant for
the purposes of Executive Order 12866 and therefore has not been
reviewed by the Office of Management and Budget (OMB).
Regulatory Flexibility Act Certification
The Administrator of RUS has determined that a rule relating to the
RUS electric loan program is not a rule as defined in the Regulatory
Flexibility Act (5 U.S.C. et seq.), and therefore, the Regulatory
Flexibility Act does not apply to this proposed rule.
Information Collection and Recordkeeping Requirements
The recordkeeping and reporting burdens contained in this rule were
approved by OMB pursuant to the Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35, as amended) under control number 0572-0025.
National Environmental Policy Act Certification
The Administrator 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 No. 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, telephone
(202) 512-1800.
Executive Order 12372
This proposed rule is excluded from the scope of Executive Order
12372, Intergovernmental Consultation, which may require consultation
with State and local officials. A Notice of Final Rule entitled
Department Programs and Activities Excluded from Executive Order 12372
(50 FR 47034) exempts RUS loans and loan guarantees from coverage under
this order.
National Performance Review
This regulatory action is being taken as part of the National
Performance Review program to eliminate unnecessary regulations and
improve those that remain in force.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. RUS has determined that this proposed rule meets
the applicable standards in Section 3 of the Executive Order.
Background
RUS has promulgated policies and procedures regarding the review
and evaluation of the operations and maintenance practices of RUS
financed electric systems. These policies and procedures are presently
contained in RUS/REA Bulletin 161-5, Electric System Review and
Evaluation. The mortgage and loan contract between RUS and electric
borrowers set certain standards for the operation and maintenance of
each borrower's electric system. The purpose of this proposed rule is
to implement the operations and maintenance provisions of the mortgage
and loan contract between RUS and electric borrowers and to consolidate
and clarify RUS policies and procedures with respect to electric system
operations and maintenance. Most of the provisions of this proposed
rule represent policies and requirements that have been in effect for
some time, whereas other provisions are an explicit statement of
policies and procedures that formerly were implicit. One new provision
will expand the requirement for electric system review and evaluation
to include power supply borrowers in addition to the distribution
borrowers presently covered by Bulletin 161-5. Proper operation and
maintenance practices are equally significant for power supply
borrowers, so RUS believes that power supply borrowers' operation and
maintenance practices should be covered under the review and evaluation
requirements of this rule. RUS Form 300, Review Rating Summary, has
also been updated and
[[Page 18545]]
revised based on RUS' experience using this form.
List of Subjects in 7 CFR Part 1730
Electric power, Loan programs--energy, Reporting and recordkeeping
requirements, Rural areas.
In view of the above, RUS proposes to amend 7 CFR chapter XVII by
adding part 1730 to read as follows:
PART 1730--ELECTRIC SYSTEM OPERATIONS AND MAINTENANCE
Subpart A--General
Sec.
1730.1 Introduction.
1730.2 RUS policy.
1730.3 RUS addresses.
1730.4 Definitions
1730.5-1730.19 [Reserved]
Subpart B--Operations and Maintenance Requirements
1730.20 General.
1730.21 Inspections and tests.
1730.22 Borrower analysis.
1730.23 Review rating summary, RUS Form 300.
1730.24 RUS review and evaluation.
1730.25 Corrective action.
1730.26 Engineer's certification.
1730.27-1730.99 [Reserved]
Appendix A to Subpart B of Part 1730--Review Rating Summary, RUS Form
300
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.
Subpart A--General
Sec. 1730.1 Introduction.
(a) This part contains the policies and procedures of the Rural
Utilities Service (RUS) related to electric borrowers' operation and
maintenance practices and RUS' review and evaluation thereof.
(b) The policies and procedures included in this part apply to all
electric borrowers (both distribution borrowers and power supply
borrowers) and are intended to clarify and implement certain provisions
of the mortgage and loan contract between RUS and electric borrowers
regarding operations and maintenance. This part is not intended to
waive or supersede any provisions of the mortgage and loan contract
between RUS and electric borrowers.
(c) The Administrator may waive, for good cause on a case by case
basis, certain requirements and procedures of this part.
Sec. 1730.2 RUS policy.
It is RUS policy to require that all borrower property be operated
and maintained properly in accordance with the requirements of the loan
documents. It is also RUS policy to provide financial assistance only
to borrowers whose operations and maintenance practices and records are
satisfactory or to those who are taking corrective actions expected to
make their operations and maintenance practices and records
satisfactory to RUS.
Sec. 1730.3 RUS addresses.
(a) Persons wishing to obtain forms referred to in this part should
contact: Rural Utilities Service, U.S. Department of Agriculture, Stop
1522, 1400 Independence Ave, SW, Washington, DC 20250-1533, telephone
(202) 720-8674. Borrowers or others may reproduce any of these forms in
any number required.
(b) Documents required to be submitted to RUS under this part are
to be sent to the office of the borrower's assigned RUS General Field
Representative (GFR) or such other office as designated by RUS.
Sec. 1730.4 Definitions.
Terms used in this part have the meanings set forth in 7 CFR part
1710.2. 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 7 CFR part 1710.2, the term Prudent Utility Practice
has the meaning set forth in Article 1, Section 1.01 of appendix A to
subpart B of 7 CFR part 1718--Model Form of Mortgage for Electric
Distribution Borrowers, for the purposes of this part.
Secs. 1730.5-1730.19 [Reserved]
Subpart B--Operations and Maintenance Requirements
Sec. 1730.20 General.
Each distribution borrower and power supply borrower must operate
and maintain its system in compliance with Prudent Utility Practice, in
compliance with its loan documents, and in compliance with all
applicable laws, regulations and orders, must maintain its systems in
good repair, working order and condition, and must make all needed
repairs, renewals, replacements, alterations, additions, betterments
and improvements, in accordance with applicable provisions of the
borrower's mortgage. Each borrower is responsible for on-going
operations and maintenance programs, for maintaining records of the
physical and electrical condition of its electric system and for the
quality of services provided to its customers. The borrower is also
responsible for all necessary inspections and tests of the component
parts of its system, and for maintaining records of such inspections
and tests. Each borrower must budget sufficient resources to operate
and maintain its system in accordance with the requirements of this
part.
Sec. 1730.21 Inspections and tests.
(a) Each borrower shall conduct all necessary inspections and tests
of the component parts of its electric system, and maintain adequate
records of such inspections and tests.
(b) The frequency of inspection and testing will be determined by
the borrower in conformance with applicable laws, regulations, national
standards, manufacturer's recommendations, and Prudent Utility
Practice. The frequency of inspection and testing will be determined
giving due consideration to the type of facilities or equipment, age,
operating environment and hazards to which the facilities are exposed,
consequences of failure, and results of previous inspections and tests.
The records of such inspections and tests will be retained in
accordance with applicable legal requirements and Prudent Utility
Practice. The retention period will be sufficient to identify long-term
trends. Records must be retained at least until the applicable
inspections or tests are repeated.
(c) Inspections of facilities must include a determination of the
facility's compliance with the National Electrical Safety Code,
National Electrical Code, and applicable local regulations. Any serious
or life-threatening deficiencies must be promptly repaired,
disconnected, or isolated in accordance with applicable codes or
regulations. Any other deficiencies found as a result of such
inspections and tests are to be recorded and those records are to be
maintained until such deficiencies are corrected or for the retention
period required by paragraph (b) of this section, whichever is longer.
Sec. 1730.22 Borrower analysis.
(a) Each borrower must periodically analyze its operations and
maintenance policies, practices, and procedures to determine if they
are appropriate and if they are being followed. The records of
inspections and tests are also to be analyzed to identify any trends
which could indicate deterioration in the physical condition or the
operational effectiveness of the system or suggest a need for changes
in operations or maintenance practices.
(b) When a borrower's operations and maintenance policies,
practices, and procedures are to be reviewed and evaluated by RUS, the
borrower shall:
[[Page 18546]]
(1) Conduct the analysis required by paragraph (a) of this section
not more than 90 days prior to the scheduled RUS review;
(2) Complete RUS Form 300, Review Rating Summary, and other related
forms, prior to RUS' review and evaluation; and
(3) Make available to RUS the borrower's completed RUS Form 300
(including a written explanation of the basis for each rating) and
records related to the operations and maintenance of the borrower's
system.
(c) For those facilities not included on the RUS Form 300 (e.g.,
generating plants), the borrower shall prepare and complete an
appropriate supplemental form for such facilities.
Sec. 1730.23 Review rating summary, RUS Form 300.
RUS Form 300 in appendix A shall be used when required by this
part.
Sec. 1730.24 RUS review and evaluation.
RUS will initiate and conduct a periodic review and evaluation of
the operations and maintenance practices of each borrower for the
purpose of assessing loan security and determining borrower compliance
with RUS policy as outlined in this part. This review will normally be
done at least once every three years. The borrower will make available
to RUS the borrower's policies, procedures, and records related to the
operations and maintenance of its system. RUS may inspect facilities as
well as records, and may also observe construction and maintenance work
in the field. Key borrower personnel responsible for the facilities
being inspected are to accompany RUS during such inspections, unless
otherwise determined by RUS. RUS personnel may prepare an independent
summary of the operations and maintenance practices of the borrower.
Sec. 1730.25 Corrective action.
(a) For any items on the RUS Form 300 rated unsatisfactory (i.e., 0
or 1) by the borrower or by RUS, the borrower must prepare a corrective
action plan (CAP) outlining the steps (both short term and long term)
the borrower will take to improve existing conditions and to maintain
an acceptable rating. The CAP must include a time schedule and cost
estimate for corrective actions, and must be approved by the borrower's
Board of Directors. The CAP must be submitted to RUS for approval
within 90 days after the completion of RUS' evaluation noted in
Sec. 1730.24.
(b) The borrower must periodically report to RUS progress under the
CAP. This report must be submitted to RUS every six months until all
unsatisfactory items are corrected unless RUS prescribes a different
reporting schedule.
Sec. 1730.26 Engineer's certification.
Where provided for in the borrower's loan documents, RUS may
require the borrower to provide an ``Engineer's Certification'' as to
the condition of the borrower's system (including, but not limited to,
all mortgaged property.) Such certification shall be in form and
substance satisfactory to RUS and shall be prepared by a professional
engineer satisfactory to RUS. If RUS determines that the Engineer's
Certification discloses a need for improvements to the condition of its
system or any other operations of the borrower, the borrower shall,
upon notification by RUS, promptly undertake to accomplish such
improvements.
Secs. 1730.27--1730.99 [Reserved].
Appendix A to Subpart B of Part 1730--Review Rating Summary, RUS Form
300
Borrower Designation ____
Date Prepared ____
Ratings on form are:
0: Unsatisfactory--no records
1: Unsatisfactory--corrective action needed
2: Acceptable, but should be improved--see attached recommendations
3: Satisfactory--no additional action required at this time
N/A: Not applicable
Part I--Transmission and Distribution Facilities
1. Substations (Transmission and Distribution)
a. Safety, Clearance, Code Compliance Rating: ____
b. Physical Condition: Structure, Major Equipment, Appearance
Rating: ____
c. Inspection Records Each Substation Rating: ____
d. Oil Spill Prevention Rating: ____
2. Transmission Lines
a. Right-of-Way: Clearing, Erosion, Appearance, Intrusions Rating:
____
b. Physical Condition: Structure, Conductor, Guying Rating: ____
c. Inspection Program and Records Rating: ____
3. Distribution Lines--Overhead
a. Inspection Program and Records Rating: ____
b. Compliance with Safety Codes: Clearances Rating: ____
Compliance with Safety Codes: Foreign Structures Rating: ____
Compliance with Safety Codes: Attachments Rating: ____
c. Observed Physical Condition from Field Checking: Right-of-Way
Rating: ____
Observed Physical Condition from Field Checking: Other Rating:
____
4. Distribution--Underground Cable
a. Grounding and Corrosion Control Rating: ____
b. Surface Grading, Appearance Rating: ____
c. Riser Poles: Hazards, Guying, Condition Rating: ____
5. Distribution Line Equipment: Conditions and Records
a. Voltage Regulators Rating: ____
b. Sectionalizing Equipment Rating: ____
c. Distribution Transformers Rating:____
d. Pad Mounted Equipment--Safety: Locking, Dead Front, Barriers
Rating:____
Pad Mounted Equipment--Appearance: Settlement, Condition
Rating:____
e. Kilowatt-hour and Demand Meter Reading and Testing Rating:____
Part II--Operation and Maintenance
6. Line Maintenance and Work Order Procedures
a. Work Planning and Scheduling Rating:____
b. Work Backlogs: Right-of-Way Maintenance Rating:____
Work Backlogs: Poles Rating:____
Work Backlogs: Retirement of Idle Services Rating:____
Work Backlogs: Other Rating:____
7. Service Interruptions
a. Average Annual Hours/Consumer by Cause (Complete for each of the
previous 5 years)
1. Power Supplier ____
2. Major Storm ____
3. Scheduled ____
4. All Other ____
5. Total ____
Rating:____
b. Emergency Restoration Plan Rating:____
8. Power Quality
General Freedom from Complaints Rating:____
9. Loading and Load Balance
a. Distribution Transformer Loading Rating:____
b. Load Control Apparatus Rating:____
c. Substation and Feeder Loading Rating:____
10. Maps and Plant Records
a. Operating Maps: Accurate and Up-to-Date Rating:____
b. Circuit Diagrams Rating:____
c. Staking Sheets Rating:____
Part III--Engineering
11. System Load Conditions and Losses
a. Annual System Loses, ____ % Rating:____
b. Annual Load Factor, ____ % Rating:____
c. Power Factor at Monthly Peak, ____ % Rating: ____
d. Ratio of Individual Substation Peak kW to kVA, ____ Rating:____
12. Voltage Conditions
a. Voltage Surveys Rating:____
b. Substation Transformer Output Voltage Spread Rating:____
13. Load Studies and Planning
a. Long Range Engineering Plan Rating:____
b. Construction Work Plan Rating:____
c. Sectionalizing Study Rating:____
[[Page 18547]]
d. Load Data for Engineering Studies Rating:____
e. Power Requirements Data Rating:____
Part IV--Operation and Maintenance Budgets
For Previous 2 Years:
Normal Operation--Actual $____
Normal Maintenance--Actual $____
Total--Actual $____
For Present Year:
Normal Operation
Budget $____
Staff Hours ____
Normal Maintenance
Budget $____
Staff Hours ____
Total
Budget $____
Staff Hours ____
For Future 3 Years:
Normal Operation
Budget $____
Staff Hours ____
Normal Maintenance
Budget $____
Staff Hours ____
Additional (Deferred) Maintenance
Budget $____
Staff Hours ____
Total
Budget $____
Staff Hours ____
14. Budgeting
Adequacy of Budgets For Needed Work Rating:____
15. Date Discussed with Board of Directors ____
Remarks: ____
Explanatory Notes
Item No. ____
Comments ____
Rated by ____
Title ____
Date ____
Reviewed by ____
Manager ____
Date ____
Reviewed by ____
RUS GFR ____
Date ____
Dated: April 10, 1997.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 97-9849 Filed 4-15-97; 8:45 am]
BILLING CODE 3410-15-P
