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Rules and Regulations
Federal Register Vol. 86, No. 129
Friday, July 9, 2021

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.

DEPARTMENT OF AGRICULTURE
Rural Utilities Service 7 CFR Parts 1710, 1714, 1717, 1718, 1721, 1726, 1730, and 1767
RUS21ELECTRIC0003
RIN 0572AC53

Streamlining Electric Program Procedures Rural Utilities Service, U.S.
Department of Agriculture USDA.
ACTION: Final rule.
AGENCY:

The Rural Utilities Service RUS, a Rural Development agency of the United States Department of Agriculture USDA, is revising several regulations to streamline its procedures for Electric Program borrowers, including its loan application requirements, approval of construction work plans, contract bidding procedures, contact approval procedures, system operation and maintenance reviews, long-range engineering plans and system design procedures. Additionally, unnecessary sections in the regulations will be removed.
DATES: This rule is effective September 7, 2021.
FOR FURTHER INFORMATION CONTACT: Luis Bernal, Deputy Assistant Administrator, Office of Customer Service and Technical Assistance, Rural Utilities Service, U.S. Department of Agriculture, STOP 1569, 1400 Independence Ave.
SW, Washington, DC 202500787, telephone: 202 7201900. Email:
RUSElectric@usda.gov.
SUPPLEMENTARY INFORMATION:
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SUMMARY:

I. Background Rural Development is a mission area within the U.S. Department of Agriculture USDA comprising the Rural Utilities Service, Rural Housing Service, and Rural Business-Cooperative Service. Rural Developments mission is
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to increase economic opportunity and improve the quality of life for all rural Americans. Rural Development meets its mission by providing loans, loan guarantees, grants, and technical assistance through numerous programs aimed at creating and improving housing, business, and infrastructure throughout rural America. The Rural Utilities Service RUS loan, loan guarantee, and grant programs act as a catalyst for economic and community development. By financing improvements to rural electric, water and waste, and telecommunications and broadband infrastructure, RUS also plays a significant role in improving other measures of quality of life in rural America, including public health and safety, environmental protection and culture and historic preservation.
RUS Electric Program loans, loan guarantees and grants finance the construction and improvement of rural electric infrastructure. In an effort by the RUS Electric Program to administer its program in an efficient and effective manner while improving its customer service and experience, and in response to requests from the RUS Electric Program borrowers, the Electric Program undertook a systematic review of regulations and procedures in place to administer its program. On July 9, 2019, Streamlining Electric Program Procedures 84 FR 32607 was published in the Federal Register. That regulation streamlined some preand post-loan procedures to be made more efficient and to reduce regulatory burden on Electric Program borrowers while still ensuring RUS loans remained adequately secured and ensuring that loan funds would be repaid in the time agreed upon.
This rulemaking is part of the Electric Programs continuing effort to improve customer service for its borrowers and to create a more efficient work process for its staff. This rulemaking will continue to streamline Electric Program procedures and revise regulations;
including, removing unnecessary and outdated regulations and simplifying other policies and procedures that impose burdensome requirements on borrowers and applicants.
To implement this change, the Agency will publish this as a final rule.
The Administrative Procedure Act exempts from prior notice rules, any actions, relating to agency management
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or personnel or to public property, loans, grants, benefits, or contracts 5
U.S.C. 553bA.
II. Summary of Changes to Rule a Changes to 7 CFR part 1710
General and Pre-Loan Policies and Procedures Common to Electric Loans and Guarantees include:
1 Section 1710.109c1 was updated to remove outdated language and to increase the general fund reimbursement period from 24 to 48
months. This will provide borrowers with more flexibility for when they can submit a loan application. It also parallels with the construction workplan period which is typically 48
months.
2 Section 1710.251 was updated to make conforming changes from prior rulemakings. Paragraph c7 was changed to Outdoor Lights for more flexibility and paragraph c13 was added to provide borrowers with more clarification on eligible items approved for RUS financing.
3 Section 1710.252b was revised to change the coverage period of construction workplans to typically 4
years. This is a conforming change from a prior rulemaking that streamlined when construction workplans must be approved.
4 Section 1710.501a3 was updated to clarify that the RUS Form 740c will be used to justify the loan amount and not be an exclusive list of projects which could be financed. This change will provide greater financing flexibility to the borrowers.
b Changes to 7 CFR part 1714PreLoan Policies and Procedures for Insured Electric Loans include removing outdated language and updating information on the fund advance period. The updated language will clarify the loan fund advance period to conform to the requirements of the Antideficiency Act, 31 U.S.C. 1341.
c Changes to 7 CFR part 1717
Post-Loan Policies and Procedures Common to Insured and Guaranteed Electric Loans include:
1 Section 1717.154c was amended to increase the general funds reimbursement period to 48 months.
This is a conforming change to go with the modification made to 1710.109c1.
2 Section 1717.604b was revised to removed outdated language that references the requirement that long-

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