[Federal Register Volume 63, Number 63 (Thursday, April 2, 1998)]
[Rules and Regulations]
[Pages 16085-16088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8588]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 63, No. 63 / Thursday, April 2, 1998 / Rules
and Regulations
[[Page 16085]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1700
General Information, Organization and Functions, and Loan Making
Authority
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Rural Utilities Service (RUS) hereby revises its
description of its functions and responsibilities and delegations of
authority to reflect recent changes in organizational structure, update
RUS addresses and phone numbers, and add information about electronic
availability of information. These revisions are intended to guide and
assist the public.
EFFECTIVE DATE: April 2, 1998.
FOR FURTHER INFORMATION CONTACT: F. Lamont Heppe, Jr., Director,
Program Development and Regulatory Analysis, Rural Utilities Service,
U.S. Department of Agriculture, Room 4034-S, 1400 Independence Avenue,
SW., STOP 1522, Washington, DC 20250-1522. Telephone: 202-720-0736. FAX
202-720-4120. e-mail fheppe@rus.usda.gov.
SUPPLEMENTARY INFORMATION:
Background
The Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
6941 et seq.) required the Secretary of Agriculture to establish and
maintain the Rural Utilities Service (RUS) within the Department. On
October 20, 1994, Secretary's Memorandum 1010-1, abolished the Rural
Electrification Administration (REA) and established RUS as its
successor and as required by the Reorganization Act.
The functions of RUS include administration of the electric and
telecommunications loan programs formerly administered by the Rural
Electrification Administration, and of the water and waste disposal
loan and grant programs formerly administered by the Rural Development
Administration. This rule describes the current organizational
structure of RUS and the methods by which its functions are channeled.
This rule relates to internal agency management. Therefore,
pursuant to 5 U.S.C. 553, notice of proposed rulemaking and opportunity
to comment thereon are not required, this rule may be effective
immediately. Further, since this rule relates to internal agency
management, it is exempt from the provisions of Executive Order 12866
and Executive Order 12988. Finally, this is not a rule as defined by
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (the Act), and
therefore, the Act does not apply.
List of Subjects in 7 CFR Part 1700
Authority delegations (Government agencies), Community development,
Community facilities, Electric power, Freedom of information, Grant
programs--communications, Grant programs--education, Grant programs--
housing and community development, Loan progams--communications, Loan
programs--education, Loan programs--energy, Loan Program--housing and
community development, Organization and functions (Government
agencies), Rural areas, Telecommunications, Telephone, Waste treatment
and disposal, Water supply.
Accordingly, 7 CFR part 1700 is revised to read as follows:
PART 1700--GENERAL INFORMATION
Subpart A--General
Sec.
1700.1 General.
1700.2 Availability of information.
1700.3 Requests under the Freedom of Information Act.
1700.4 Public comments on proposed rules.
1700.5--1700.24 [Reserved]
Subpart B--Agency Organization and Functions
1700.25 Office of the Administrator.
1700.26 Deputy Administrators.
1700.27 Electric Program.
1700.28 Telecommunications Program.
1700.29 Water and Environmental Programs.
1700.30 Distance Learning and Telemedicine Loan and Grant Program.
1700.31 Program Accounting and Regulatory Analysis.
1700.32 Financial Services Staff.
1700.33--1700.49 [Reserved]
Subpart C--Loan and Grant Approval Authorities
1700.50--1700.52 [Reserved]
1700.53 Persons serving as Acting Administrator.
1700.54 Electric Program.
1700.55 Telecommunications Program.
1700.56 Water and Environmental Programs.
1700.57 Distance Learning and Telemedicine Loan and Grant Program.
Authority: 5 U.S.C. 301, 552; 7 U.S.C. 901 et seq., 1921 et
seq., 6941 et seq.; 7 CFR 2.7.
Subpart A--General
Sec. 1700.1 General.
(a) The Rural Electrification Administration (REA) was established
by Executive Order No. 7037 on May 11, 1935. Statutory authority was
provided by the Rural Electrification Act of 1936 (RE Act) (7 U.S.C.
901). The RE Act established REA as a lending agency with
responsibility for developing a program for rural electrification.
(b) On October 28, 1949, the RE Act was amended to authorize REA to
make loans to improve and extend telephone service in rural areas. The
Rural Telephone Bank (RTB), an agency of the United States, was
established by amendment to the RE Act, approved May 7, 1971. The
Administrator of RUS serves as the Bank's chief executive with the
title of Governor.
(c) The Secretary of Agriculture (Secretary) established the Rural
Utilities Service (RUS) on October 20, 1994, pursuant to the Department
of Agriculture Reorganization Act of 1994, (7 U.S.C. 6941 et seq.). RUS
was assigned responsibility for administering electric and
telecommunications loan and loan guarantee programs previously
administered by REA, including programs of the Rural Telephone Bank
(RTB), and water and waste loans and grants previously administered by
the Rural Development Administration, along with other functions as the
Secretary determined appropriate. The rights, interests, obligations,
duties, and contracts previously vested in REA were transferred to, and
vested in RUS.
Sec. 1700.2 Availability of information.
(a) The offices of RUS are located in the South Building of the
United States Department of Agriculture at 1400 Independence Avenue,
SW,
[[Page 16086]]
Washington, DC 20250-1500. Hours of operation are from 8:15 AM to 4:45
PM, Eastern time on Federal Government business days.
(b) Information about RUS is available for public inspection and
copying as required by the Freedom of Information Act, 5 U.S.C. 552 et
seq. Information about availability and costs of agency publications
and other agency materials is available from the Director, Program
Development and Regulatory Analysis, Rural Utilities Service, United
States Department of Agriculture, Room 4034-S, 1400 Independence
Avenue, SW, STOP 1522, Washington, DC 20250-1522. Phone 202-720-0736.
FAX 202-720-4120.
(c) RUS issues indexes of publications in conformance with the
Freedom of Information Act and Department of Agriculture regulations at
7 CFR part 1. Many RUS issuances, including regulations, delegations of
authority for headquarters and field staff, and other documents, are
available on the world wide web at http://www.usda.gov/rus. Single hard
copies of publications, forms, forms of basic loan and security
instruments, and other materials are available either directly from
RUS, from the Superintendent of Documents, U.S. Government Printing
Office, Washington DC 20402, or from another source as identified.
Costs for these publications are established in conformance with 7 CFR
part 1.
Sec. 1700.3 Requests under the Freedom of Information Act.
Department of Agriculture procedures for requests for official
records under the Freedom of Information Act are found at 7 CFR part 1.
Requests must be in writing and may be submitted in person or by mail
to United States Department of Agriculture, Rural Development, Room
0164-S, 1400 Independence Avenue, SW, STOP 0742, Washington, DC 20250-
0742; or by FAX to 202-720-1915. As set forth in 7 CFR 1.16, fees may
be charged for processing of requests for records. An appeal of the
agency determination concerning the request for official records shall
be made in writing to the Administrator, Rural Utilities Service,
United States Department of Agriculture, Room 4051-S, 1400 Independence
Avenue, SW, STOP 1510, Washington, DC 20250-1500.
Sec. 1700.4 Public comments on proposed rules.
RUS requires that all persons submitting comments to a proposed
rule or other document published by the agency in the Federal Register
submit, in hard copy, a signed original and three copies of their
comments to the address shown in the preamble to the proposed rule.
Copies of comments submitted are available to the public in conformance
with 7 CFR part 1.
Secs. 1700.5-1700.24 [Reserved]
Subpart B--Agency Organization and Functions
Sec. 1700.25 Office of the Administrator.
The Administrator, who also serves as Governor of the RTB, is
appointed by the President, with the advice and consent of the Senate.
The Under Secretary, Rural Development delegated to the Administrator,
in 7 CFR part 2, responsibility for administering the programs and
activities of RUS and RTB. The Administrator is aided directly by
Deputy Administrators and by Assistant Administrators for the electric
program, telecommunications program, the water and environmental
programs, and program accounting and regulatory analysis, and by other
staff offices. The work of the agency is carried out as described in
this part.
Sec. 1700.26 Deputy Administrators.
Deputy Administrators aid and assist the Administrator. The Deputy
Administrator, Program Policy and Telecommunications, provides overall
policy direction to all RUS programs and directs and coordinates the
telecommunications programs. The Deputy Administrator, Water and
Environmental Programs, directs and coordinates the agency's water and
waste disposal programs. The Deputy Administrators review agency
policies in these areas and, as necessary, implement changes, and
participate with the Administrator and other officials in planning and
formulating the programs and activities of the agency, including the
making and servicing of loans and grants.
Sec. 1700.27 Electric Program.
RUS, through the Electric Program, makes loans and loan guarantees
for rural electrification and the furnishing of electric service to
persons in rural areas.
(a) The Assistant Administrator, Electric Program, directs and
coordinates the rural electrification programs, participating with the
Administrator, and others, in planning and formulating the programs and
activities of the agency, and performs other activities as the
Administrator may prescribe from time to time.
(b) Primary point of contact with borrowers. Two regional
divisions, one for the Northern Region and one for the Southern Region,
are the primary points of contact between RUS and its electric
distribution borrowers. Each office administers the rural electric
program for its assigned geographical area through headquarters staff
and general field representatives. The Power Supply Division is the
primary point of contact between RUS and its electric power supply
borrowers.
(c) Staff office. The Electric Staff Division is responsible for
engineering aspects of RUS' standards, specifications and other
requirements for design, construction, and technical operation and
maintenance of RUS borrowers' electric systems. The Electric Staff
Division oversees the activities of Technical Standards Committees
``A'' and ``B'', Electric, which determine whether engineering
specifications, drawings, material and equipment are acceptable for use
in RUS borrowers' electric systems. The Office of the Assistant
Administrator prepares analyses of loan making activities and the
business and regulatory environment of RUS borrowers and recommends
policies and procedures.
Sec. 1700.28 Telecommunications Program.
RUS and RTB, through the Telecommunications Program, make loans and
loan guarantees to furnish and improve telecommunications service in
rural areas.
(a) The Assistant Administrator, Telecommunications Program,
directs and coordinates the rural telecommunications programs,
including the distance learning and telemedicine program, and in
conjunction with the Administrator and Deputy Administrator, and
others, the planning and formulating of programs and activities of the
agency, and performs other activities as the Administrator may
prescribe from time to time.
(b) Primary point of contact with borrowers. Three area offices,
(Eastern, Northwest, and Southwest Areas), are the primary points of
contact between RUS and all telecommunications program borrowers. Each
office administers the rural telecommunications program for its
assigned geographical area with assistance of field representatives
located in areas assigned to them.
(c) Staff office. The Telecommunications Staff Division is
responsible for engineering aspects of design, construction, and
technical operation and maintenance of rural telecommunications systems
and facilities, including the activities of Technical Standards
Committees ``A'' and ``B'', Telecommunications, which determine whether
engineering
[[Page 16087]]
specifications, drawings, material, and equipment are acceptable for
use in RUS financed telecommunications systems.
Sec. 1700.29 Water and Environmental Programs.
RUS, through the Water and Environmental Programs, provides loan
and grant funds for water and waste disposal projects serving the most
financially needy rural communities.
(a) The Assistant Administrator, Water and Environmental Programs,
develops and institutes plans, procedures, and policies for the
effective, efficient, and orderly management of Water and Environmental
Programs responsibilities; provides leadership to ensure execution of
policies and procedures by the Water and Waste Disposal programs and
support functions; and performs other activities as the Administrator
or Deputy Administrator may prescribe from time to time.
(b) Primary point of contact. The State Rural Development Offices
are the primary points of contact between RUS and loan and grant
recipients.
(c) The Engineering and Environmental Staff is responsible for
engineering staff activities at all stages of Water and Waste Disposal
programs implementation, including review of preliminary engineering
plans and specifications, procurement practices, contract awards,
construction monitoring, and system operation and maintenance. This
staff develops agency engineering practices, policies, guidelines, and
technical data relating to the construction and operation of water and
waste disposal systems, and for implementing the National Environmental
Policy Act, and other environmental requirements as they apply to all
agency programs and activities.
Sec. 1700.30 Distance Learning and Telemedicine Loan and Grant
Program.
RUS, through the Telecommunications Program, makes grants and loans
to furnish and improve telemedicine services and distance learning
services in rural areas.
(a) The Assistant Administrator, Telecommunications Program,
directs and coordinates the distance learning and telemedicine program.
(b) Primary point of contact with borrowers. The three area
offices, described in Sec. 1700.28(b) support the distance learning and
telemedicine program. Each office administers the distance learning and
telemedicine program for its assigned geographical area with assistance
of field representatives located in areas assigned to them.
Sec. 1700.31 Program Accounting and Regulatory Analysis.
RUS, through Program Accounting and Regulatory Analysis, monitors
and administers applicable regulations, RUS policy, and accounting
requirements. The staffs assist the Assistant Administrator with
respect to management, information systems, budgets, and other such
matters.
(a) The Assistant Administrator, Program Accounting and Regulatory
Analysis, directs and coordinates program accounting and financial
services with respect to electric and telecommunications borrowers and
directs and coordinates the regulatory actions of the agency.
(b) This division monitors borrowers' accounting operations in
order to ensure compliance with applicable statutory and regulatory
requirements and with the requirements of the Office of Management and
Budget.
(c) The two regional branches (the Northern Region and the Southern
Region) work directly with borrowers. Each regional office has a staff
of headquarters and field accountants. The Technical Accounting and
Auditing Staff monitors industry developments, including the standards
of the Financial Accounting Standards Board, and recommends Agency
policies and procedures.
(d) Program Development and Regulatory Analysis directs and
administers the preparation, clearance, processing, and distribution of
RUS submissions to the Office of the Federal Register in the form of
proposed and final rules and notices and RUS bulletins and staff
instructions.
Sec. 1700.32 Financial Services Staff.
The Financial Services Staff evaluates the financial condition of
financially troubled borrowers in order to protect the Government's
interests.
Secs. 1700.33--1700.49 [Reserved]
Subpart C--Loan and Grant Approval Authorities
Secs. 1700.50--1700.52 [Reserved]
Sec. 1700.53 Persons serving as Acting Administrator.
The following persons are authorized, in descending order, to act
for the Administrator when he or she is not on official duty in the
Washington, DC, Metropolitan Area, is sick, has resigned, or is
deceased. That is, if the first person on the list is also not on
official duty in the Washington, DC, Metropolitan Area, is sick, has
resigned, or is deceased, the second person on the list is authorized
to act for the Administrator and so on down the list. Persons on this
list may not redelegate the authority to act as the Administrator. The
Administrator may in his or her discretion in writing, on a case-by-
case basis, delegate authority to act as Administrator in his or her
absence outside of this specified order.
(1) Deputy Administrator, Program Policy and Telecommunications.
(2) Deputy Administrator, Water and Environmental Programs.
(3) Assistant Administrator, Electric Program.
(4) Assistant Administrator, Telecommunications Program.
(5) Assistant Administrator, Water and Environmental Programs.
(6) Assistant Administrator, Program Accounting and Regulatory
Analysis.
Sec. 1700.54 Electric Program.
(a) Administrator: The authority to approve the following loans,
loan guarantees, and lien accommodations and subordinations of liens is
reserved to the Administrator:
(1) All discretionary hardship loans.
(2) All loans, loan guarantees, and lien accommodations and
subordinations of liens to finance operating costs.
(3) All loans, loan guarantees, and lien accommodations and
subordinations of liens of more than $20,000,000 for distribution
borrowers or more than $50,000,000 for power supply borrowers.
(4) All loans, loan guarantees, and lien accommodations and
subordinations of liens for distribution borrowers that are members of
a power supply borrower that is in default of its obligations to the
Government or that is currently assigned to the Financial Services
Staff, unless otherwise determined by the Administrator.
(5) All loans, loan guarantees, and lien accommodations and
subordinations of liens that require an Environmental Impact Statement.
(6) Certifications and findings required by the RE Act or other
applicable laws and regulations, the placing and releasing of
conditions precedent to the advance of funds, and all security
instruments, loan contracts, and all other necessary documents relating
to the authorities reserved in this section.
(7) Execution of all loan contracts, security instruments, and all
other documents in connection with loans, loan guarantees, and lien
accommodations approved by the Administrator.
(b) The Assistant Administrator, Electric Program, has the
authority to
[[Page 16088]]
approve the following loans, loan guarantees, and lien accommodations
and subordinations of liens, except for those approvals reserved to the
Administrator:
(1) Loans, loan guarantees, and lien accommodations and
subordinations of liens for distribution borrowers in amounts not
exceeding $20,000,000.
(2) Loans, loan guarantees, and lien accommodations and
subordinations of liens for power supply borrowers in amounts not
exceeding $50,000,000.
(3) Execution of all loan contracts, security instruments, and all
other documents in connection with loans, loan guarantees, and lien
accommodations approved by the Assistant Administrator, Electric
Program.
(c) Directors, Regional Divisions, have the authority to approve,
for distribution borrowers:
(1) Loans, loan guarantees, and lien accommodations and
subordinations of liens in amounts not exceeding $15,000,000 except for
those approvals reserved to the Administrator.
(2) All certifications and findings required by the RE Act or other
applicable laws and regulations, the imposing and releasing of
conditions precedent to the advance of loan funds, and all security
instruments, loan contracts, and all other documents relating to the
delegations set forth in paragraph (c)(1) of this section.
(d) Director, Power Supply Division, has the authority to approve
for power supply borrowers:
(1) Loans, loan guarantees, and lien accommodations and
subordinations of liens in amounts not exceeding $30,000,000, except
for those approvals reserved to the Administrator.
(2) All certifications and findings required by the RE Act or other
applicable laws and regulations, the placing and releasing of
conditions precedent to the advance of funds, and all security
instruments, loan contracts or all other documents relating to the
delegations set forth in paragraph (d)(1) of this section.
Sec. 1700.55 Telecommunications Program.
(a) Administrator: The authority to approve the following loans,
loan guarantees, and lien accommodations is reserved to the
Administrator:
(1) All loans, loan guarantees, and lien accommodations and
subordinations of liens to finance operating costs.
(2) All loans, loan guarantees, or lien accommodations and
subordinations of liens of $25,000,000 or more.
(3) Loans and loan guarantees with acquisition costs of $5,000,000
or more.
(4) Loans and loan guarantees containing funds to refinance
outstanding debt of more than $5,000,000.
(5) All loan contracts, security instruments, and all other
documents to be executed in connection with loans and loan guarantees
approved by the Administrator.
(b) Assistant Administrator, Telecommunications Program, has the
authority to approve the following loans, loan guarantees, and lien
accommodations, except for those approvals reserved to the
Administrator:
(1) Loans, loan guarantees, and lien accommodations and
subordinations of liens not to exceed $25,000,000 except for those
reserved to the Administrator.
(2) Loans and loan guarantees with acquisition costs where the
acquisition portion of the loan is less than $5,000,000.
(3) Loans and loan guarantees including refinancing amounts that do
not exceed $5,000,000.
(4) Distance learning and telemedicine loans and loan guarantees
that do not exceed $5,000,000.
(5) Loan contracts, security instruments, and other documents to be
executed in connection with loans and loan guarantees approved by the
Assistant Administrator, Telecommunications Program.
(c) Area Directors have the authority to approve the following
loans, loan guarantees, and lien accommodations, except for those
approvals reserved to the Administrator:
(1) Loans, loan guarantees, and lien accommodations and
subordinations of liens of less than $10,000,000.
(2) Loans and loan guarantees with acquisition costs of less than
$2,000,000.
(3) Loans and loan guarantees including refinancing amounts of less
than $2,000,000.
(4) Any modifications in the method of carrying out loan purposes.
Sec. 1700.56 Water and Environmental Programs.
The State Rural Development Offices have the responsibility for
making and servicing water and waste loans and grants.
Sec. 1700.57 Distance Learning and Telemedicine Loan and Grant
Program.
(a) Administrator: The authority to approve the following loans and
lien accommodations is reserved to the Administrator:
(1) Grants or loan and grant combinations.
(2) The number selected from each state for financial assistance
for grant approval and loans or grants approved.
(3) Extension of principal and interest repayments for rural
development purposes.
(4) Loan contracts, security instruments, and all other documents
to be executed in connection with loans and loan guarantees approved by
the Administrator.
(b) Assistant Administrator, Telecommunications Program, has the
authority to approve the following loans and lien accommodations and
subordinations of liens:
(1) Loans, that do not also include requests for grant funds,
except for those reserved to the Administrator.
(2) Loan contracts, security instruments, and all other documents
to be executed in connection with loans and loan guarantees approved by
the Assistant Administrator, Telecommunications Program.
Dated: March 24, 1998.
Jill Long Thompson,
Under Secretary for Rural Development.
[FR Doc. 98-8588 Filed 4-1-98; 8:45 am]
BILLING CODE 3410-15-P
