In prior posts, I addressed revisions to regulations for electric borrowers. These regulations have been amended again to accomplish the following objectives:
provide more flexibility for the RUS Electric Program borrowers to complete emergency repairs while maintaining the ability to receive RUS financing, to delete unnecessary and outdated requirements imposed on electric borrowers and applicants and provide flexibility in selecting construction procurement methods that better support applicant needs in awarding construction contracts. These changes will reduce agency travel costs by extending the time between the required review period for operations and maintenance reviews, reduce the number of reviews for RUS Electric Program staff, and increase customer satisfaction and service.
89 FR 17271-01
Here is a summary of the rule changes:
7 CFR 1710.250 General
The construction work plans and related studies coverages are modified *17272 to include acts of sabotage, willful attacks, accidents, or acts of force majeure as additional events that qualify for emergency repairs before a construction work plan amendment is prepared by the borrower. These modifications will provide borrowers increased flexibility and options to proceed with emergency repair work without losing eligibility for RUS financing.
7 CFR 1710.500 Initial Contact
This change is to correct a citation and is being made to ensure applicants and borrowers are directed to the correct section in the regulation.
7 CFR 1710.501 Loan Application Documents
This change amends the paragraph by removing paragraphs (a)(9) and (13). These deletions will remove certifications that are no longer required to be submitted by applicants. The certifications being removed are part of the Financial Assistance General Certifications and Representations in the System for Award Management that must be completed when applying for an award and updated annually. The remaining paragraphs in § 1710.501(a) will be redesignated accordingly as part of this amendment.
7 CFR 1717.156 Transitional Assistance Affecting Preexisting Loans
Transitional assistance affecting preexisting loans, is amended to replace two incorrect citations in the paragraph. These corrections will ensure borrowers know the correct regulation citation to review.
7 CFR 1721.1 Advances
Paragraphs (b) and (c) are modified to increase the limit for minor projects and projects requiring a contract or work order number. This change is being made to adjust for inflation over time and will provide greater flexibility for borrowers to complete more projects under this process which allows the borrowers to complete needed infrastructure improvements in a timelier fashion.
7 CFR 1726.14 Definitions
The definition of “Minor modification” is amended to increase the project cost and the definition of “Multiparty unit price quotations” is being deleted. This change will provide borrowers more flexibility to utilize purchase orders or other construction contracts for smaller projects without having to use RUS’ standard contract forms.
7 CFR 1726.51 Procurement Methods To Award Contracts for Distribution Line Construction
Paragraph (b)(1) is modified to increase limits, increase Net Utility Plant (NUP) percentages, and delete the “not to exceed” limitations. These changes are being made to provide Electric Program borrowers greater flexibility in determining the procurement method that best meets their needs to award construction contracts.
7 CFR 1726.77 Substation and Transmission Line Construction
Paragraph (b)(1) is modified to increase limits, increase Net Utility Plant (NUP) percentages, and delete the “not to exceed” limitations. Paragraph (c) is changed to increase contract approval amounts and delete the “not to exceed” limitations. These changes are being made to provide Electric Program borrowers greater flexibility in determining the procurement method that best meets their needs to award construction contracts. It will also reduce the number of construction contracts that need to be reviewed and approved by RUS Staff.
7 CFR 1726.125 Generating Plant Facilities
Paragraph (c) is amended to remove an incorrect citation that does not exist in the regulation.
7 CFR 1726.150 Headquarters Buildings
A sentence in paragraph (b) is amended to delete the “not to exceed” limitation and increase the percent of NUP from three percent to four percent. These changes are being made to provide borrowers greater flexibility in determining the procurement method that best meets their needs to award construction contracts.
7 CFR 1726.176 Communication and Control Facilities
Paragraph (b) limitations for Load control systems, communications systems, and SCADA systems is modified to increase limits, increase NUP percentages and delete the “not to exceed” limitations. These changes are being made to provide Electric Program borrowers greater flexibility in determining the procurement method that best meets their needs to award construction contracts. It will also reduce the number of construction contracts that need to be reviewed and approved by RUS Staff.
7 CFR 1726.204 Multiparty Unit Price Quotations
This section is removed and reserved as a conforming change to a prior streamlining effort. Multiparty Unit Price Quotations are no longer specifically sited or used in the regulations.
7 CFR 1730.24 RUS Review and Evaluation
This section is modified to increase the Operations and Maintenance review period from normally every three years to normally every four years. This change is being made to better match the four-year construction work plan (CWP) period. The Agency will also see savings from reduced travel time due to increasing the review period.
7 CFR 1730.100 OMB Control Number
This section is updated to revise the Office of Management and Budget (OMB) control number.
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