[Federal Register Volume 63, Number 188 (Tuesday, September 29, 1998)]
[Rules and Regulations]
[Pages 51792-51793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26021]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Parts 1710 and 1726
Year 2000 Compliance: Electric Program
AGENCY: Rural Utilities Service, USDA.
ACTION: Interim rule with request for comment.
-----------------------------------------------------------------------
SUMMARY: This interim rule amends the regulations of the Rural
Utilities Service (RUS) to state that RUS will make an electric loan
only if the borrower's electric system is year 2000 compliant. The
interim rule will ensure that RUS-financed projects and RUS financed
electric systems meet the year 2000 date changeover without service or
revenue disruption.
DATES: This rule is effective September 29, 1998. Comments must be
received by RUS or carry a postmark or equivalent by November 30, 1998.
ADDRESSES: Written comments should be addressed to Blaine D. Stockton,
Jr., Assistant Administrator, Electric Program, Rural Utilities
Service, United States Department of Agriculture, 1400 Independence
Ave., SW., STOP 1560, Room 4037, South Building, Washington, DC.,
20250-1560. RUS requires a signed original and three copies of all
comments.
FOR FURTHER INFORMATION CONTACT: Blaine D. Stockton, Jr., Assistant
Administrator, Electric Program, Rural Utilities Service, United States
Department of Agriculture, 1400 Independence Ave., SW., STOP 1560, Room
4037, South Building, Washington, DC., 20250-1560. Telephone: (202)
720-9545. Facsimile: (202) 690-0717.
SUPPLEMENTARY INFORMATION:
Justification for Interim Rule
It is the policy of the Department of Agriculture that proposed
rules relating to public property, loans, grants, benefits, or
contracts be published for public comment notwithstanding the
provisions of 5 U.S.C. 553, with respect to such rules. However,
exemptions are permitted where an agency finds, for good cause, that an
opportunity for comments would be impracticable, unnecessary, or
contrary to the public interest.
RUS finds that good cause exists to implement this rule without
providing a prior opportunity for public comment. Many computers that
control electric systems are not programmed to handle the change of
date from December 31, 1999, to January 1, 2000. These ``non-
compliant'' computers may malfunction on or before January 1, 2000,
with potentially widespread and catastrophic results. Computer
controlled electric systems could fail causing electric power delivery
to consumers and suppliers to be interrupted, and electric system
safety could be adversely affected. Examples of potentially vulnerable
areas include power plant control systems, transmission and
distribution relays, substation metering, load management systems,
maintenance and administration systems and billing records. Failure of
electric systems could affect public health and safety.
RUS, therefore believes it would be contrary to the public interest
to delay the effectiveness of the rule. Through this interim rule, RUS
is undertaking to address with its electric borrowers year 2000
compliance issues that may potentially disrupt electric services that
are critical to public health and safety. This rule is part of an
effort by all USDA Rural Development agencies to address year 2000
readiness and prevent year 2000 problems. For these reasons, RUS
determines that publication for advance notice and an opportunity for
prior comment is not in the public interest.
Executive Order 12372
This rule is excluded from the scope of Executive Order 12372,
Intergovernmental Consultation, which may require consultation with
State and local officials. A final rule related notice entitled
``Department Programs and Activities Excluded from Executive Order
12372'' (50 FR 47034), determined RUS loans and loan guarantees are not
covered by this Executive Order.
Executive Order 12866
This 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).
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. RUS has determined that this rule meets the applicable
standards provided in section 3 of the Executive Order. In accordance
with the Executive Order and the rule: (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. 6912(e)) administrative appeal procedures, if any, must
be exhausted before an action against the Department or its agencies
may be initiated.
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. 601 et seq.) and, therefore, the Regulatory
Flexibility Act does not apply to this rule.
[[Page 51793]]
National Environmental Policy Act Certification
The Administrator of RUS has determined that this rule will not
significantly affect the quality of the human environment as defined by
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
Therefore, this action does not require an environmental impact
statement or assessment.
Catalog of Federal Domestic Assistance
The program described by this rule is listed in the Catalog of
Federal Domestic Assistance programs under No. 10.850, Rural
Electrification Loans and Loan Guarantees. This catalog is available on
a subscription basis from the Superintendent of Documents, the United
States Government Printing Office, Washington, DC 20402-9325, telephone
number (202) 512-1800.
Information Collection and Recordkeeping Requirements
This interim rule does not impose new information collection
requirements for the purposes of the Paperwork reduction Act of 1995
(44 U.S.C. Chapter 35). (OMB control number 0572-0032)
Unfunded Mandates
This rule contains no Federal mandate (under the regulatory
provision of Title II of the Unfunded Mandates Reform Act of 1995) for
State, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of sections 202 and 205 of the
Unfunded Mandates Reform Act.
List of Subjects
7 CFR Part 1710
Electric power, Electric utilities, Loan programs--energy,
Reporting and recordkeeping requirements, Rural areas.
7 CFR Part 1726
Electric power, Loan programs--energy, Reporting and recordkeeping
requirements, Rural areas.
For the reasons set forth in the preamble, RUS amends Chapter XVII
of Title 7 of the Code of Federal Regulations as follows:
PART 1710--GENERAL AND PRE-LOAN POLICIES AND PROCEDURES COMMON TO
INSURED AND GUARANTEED ELECTRIC LOANS
1. The authority citation for part 1710 continues to read as
follows:
Authority: 7 U.S.C. 901-950(b); Public Law 99-591, 100 Stat.
3341; Public Law 103-354, 108 Stat. 3178 (7 U.S.C. 6941 et seq.).
2. In Sec. 1710.112, a new paragraph (c) is added to read as
follows:
Sec. 1710.112 Loan feasibility.
* * * * *
(c) RUS considers a loan to be feasible only if the borrower's
electric system is year 2000 compliant, or if the borrower provides RUS
with evidence, satisfactory to RUS, that it is taking measures
necessary to ensure that its electric system will be year 2000
compliant on or before December 31, 1999. Year 2000 compliant means
that product performance and function are not affected by dates before,
during, and a reasonable time after the year 2000.
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES
3. The authority citation for part 1726 continues to read as
follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq.; Public Law 103-
354, 108 Stat. 3178 (7 U.S.C. 6941 et seq.).
4. In Sec. 1726.20, a new sentence is added at the end to read as
follows:
Sec. 1726.20 Standards and specifications.
* * * The materials and equipment must be year 2000 compliant, as
defined in 7 CFR 1710.112 (c).
Dated: September 21, 1998.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 98-26021 Filed 9-28-98; 8:45 am]
BILLING CODE 3410-15-U
