7 CFR part 1724

CFR-2014-title7-vol11-part1724.pdf

7 CFR Part 1724, and Part 1738, Electric Engineering, Architectural Services and Design Policies and Procedures

7 CFR part 1724

OMB: 0572-0118

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Rural Utilities Service, USDA

§ 1724.3

body for extending the maturity of existing debt and for the additional debt
service payment incurred.
§ 1721.109 OMB control number.
The information collection requirements in this part are approved by the
Office of Management and Budget and
assigned OMB control number 0572–
0123.

PART 1724—ELECTRIC ENGINEERING, ARCHITECTURAL SERVICES
AND DESIGN POLICIES AND
PROCEDURES
Subpart A—General
Sec.
1724.1 Introduction.
1724.2 Waivers.
1724.3 Definitions.
1724.4 Qualifications.
1724.5 Submission of documents to RUS.
1724.6 Insurance requirements.
1724.7 Debarment and suspension.
1724.8 Restrictions on lobbying.
1724.9 Environmental compliance.
1724.10 Standard forms of contracts for borrowers.
1724.11–1724.19 [Reserved]

Subpart B—Architectural Services
1724.20 Borrowers’ requirements—architectural services.
1724.21 Architectural services contracts.
1724.22–1724.29 [Reserved]

Subpart C—Engineering Services
1724.30 Borrowers’ requirements—engineering services.
1724.31 Engineering services contracts.
1724.32 Inspection and certification of work
order construction.
1724.33–1724.39 [Reserved]

Subpart D—Electric System Planning
1724.40 General.
1724.41–1724.49 [Reserved]

Subpart E—Electric System Design
1724.50 Compliance with National Electrical
Safety Code (NESC).
1724.51 Design requirements.
1724.52 Permitted deviations from RUS construction standards.
1724.53 Preparation of plans and specifications.
1724.54 Requirements for RUS approval of
plans and specifications.
1724.55 Dam safety.

1724.56–1724.69 [Reserved]
APPENDIX A TO SUBPART E—HAZARD POTENTIAL CLASSIFICATION FOR CIVIL WORKS
PROJECTS

Subpart F—RUS Contract Forms
1724.70 Standard forms of contracts for borrowers.
1724.71 Borrower contractual obligations.
1724.72 Notice and publication of listed contract forms.
1724.73 Promulgation of new or revised contract forms.
1724.74 List of electric program standard
contract forms.
1724.75–1724.99 [Reserved]
AUTHORITY: 7 U.S.C. 901 et seq., 1921 et seq.,
6941 et seq.
SOURCE: 63 FR 35314, June 29, 1998, unless
otherwise noted.

Subpart A—General
§ 1724.1 Introduction.
(a) The policies, procedures and requirements in this part implement certain provisions of the standard form of
loan documents between the Rural
Utilities Service (RUS) and its electric
borrowers.
(b) All borrowers, regardless of the
source of financing, shall comply with
RUS’ requirements with respect to design, construction standards, and the
use of RUS accepted material on their
electric systems.
(c) Borrowers are required to use
RUS contract forms only if the facilities are financed by RUS.
§ 1724.2 Waivers.
The Administrator may waive, for
good cause on a case-by-case basis, requirements and procedures of this part.
§ 1724.3 Definitions.
Terms used in this part have the
meanings set forth in § 1710.2 of this
chapter. 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 § 1710.2
of this chapter, the following terms
have the following meanings for the
purposes of this part:

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§ 1724.4

7 CFR Ch. XVII (1–1–14 Edition)

Architect means a registered or licensed person employed by the borrower to provide architectural services
for a project and duly authorized assistants and representatives.
Engineer means a registered or licensed person, who may be a staff employee or an outside consultant, to provide engineering services and duly authorized assistants and representatives.
Force account construction means construction performed by the borrower’s
employees.
GPO means Government Printing Office.
NESC means the National Electrical
Safety Code.
RE Act means the Rural Electrification Act of 1936 as amended (7 U.S.C.
901 et seq.).
Repowering means replacement of the
steam generator or the prime mover or
both at a generating plant.
RUS means Rural Utilities Service.
RUS approval means written approval
by the Administrator or a representative with delegated authority. RUS approval must be in writing, except in
emergency situations where RUS approval may be given orally followed by
a confirming letter.
RUS financed means financed or funded wholly or in part by a loan made or
guaranteed by RUS, including concurrent supplemental loans required by
§ 1710.110 of this chapter, loans to reimburse funds already expended by the
borrower, and loans to replace interim
financing.
[63 FR 35314, June 29, 1998, as amended at 63
FR 58284, Oct. 30, 1998]

§ 1724.4

Qualifications.

The borrower shall ensure that:
(a) All selected architects and engineers meet the applicable registration
and licensing requirements of the
States in which the facilities will be located;
(b) All selected architects and engineers are familiar with RUS standards
and requirements; and
(c) All selected architects and engineers have had satisfactory experience
with comparable work.

§ 1724.5 Submission of documents to
RUS.
(a) Where to send documents. Documents required to be submitted to RUS
under this part are to be sent to the office of the borrower’s respective RUS
Regional Director, the Power Supply
Division Director, or such other office
of RUS as designated by RUS. (See part
1700 of this chapter.)
(b) Contracts requiring RUS approval.
The borrower shall submit to RUS
three copies of each contract that is
subject to RUS approval under subparts B and C of this part. At least one
copy of each contract must be an original signed in ink (i.e., no facsimile signature). Each contract submittal must
be accompanied by a certified copy of
the board resolution awarding the contract.
(c) Contract amendments requiring RUS
approval. The borrower shall submit to
RUS three copies of each contract
amendment (at least one copy of which
must be an original signed in ink)
which is subject to RUS approval. Each
contract amendment submittal to RUS
must be accompanied by a certified
copy of the board resolution approving
the amendment.
§ 1724.6

Insurance requirements.

(a) Borrowers shall ensure that all
architects and engineers working under
contract with the borrower have insurance coverage as required by part 1788
of this chapter.
(b) Borrowers shall also ensure that
all architects and engineers working
under contract with the borrower have
insurance coverage for Errors and
Omissions (Professional Liability Insurance) in an amount at least as large
as the amount of the architectural or
engineering services contract but not
less than $500,000.
§ 1724.7

Debarment and suspension.

Borrowers shall comply with the requirements on debarment and suspension in connection with procurement
activities as set forth in part 3017 of
this title, particularly with respect to
lower tier transactions, e.g., procurement contracts for goods or services.

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Rural Utilities Service, USDA

§ 1724.21

§ 1724.8 Restrictions on lobbying.
Borrowers shall comply with the restrictions and requirements in connection with procurement activities as set
forth in part 3018 of this title.
§ 1724.9 Environmental compliance.
Borrowers shall comply with the requirements of part 1794 of this chapter,
Environmental Policies and Procedures
for Electric and Telephone Borrowers.
§ 1724.10 Standard forms of contracts
for borrowers.
The standard loan agreement between RUS and its borrowers provides
that, in accordance with applicable
RUS regulations in this chapter, the
borrower shall use standard forms of
contracts promulgated by RUS for construction, procurement, engineering
services, and architectural services financed by a loan made or guaranteed
by RUS. This part implements these
provisions of the RUS loan agreement.
Subparts A through E of this part prescribe when and how borrowers are required to use RUS standard forms of
contracts for engineering and architectural services. Subpart F of this part
prescribes the procedures that RUS follows in promulgating standard contract forms and identifies those contract forms that borrowers are required
to use for engineering and architectural services.
[63 FR 58284, Oct. 30, 1998]

§§ 1724.11–1724.19

[Reserved]

Subpart B—Architectural Services
§ 1724.20 Borrowers’ requirements—architectural services.
The provisions of this section apply
to all borrower electric system facilities regardless of the source of financing.
(a) Each borrower shall select a
qualified architect to perform the architectural services required for the
design and construction management
of headquarters facilities. The selection of the architect is not subject to
RUS approval unless specifically required by RUS on a case by case basis.
Architect’s qualification information
need not be submitted to RUS unless

specifically requested by RUS on a case
by case basis.
(b) The architect retained by the borrower shall not be an employee of the
building supplier or contractor, except
in cases where the building is prefabricated and pre-engineered.
(c) The architect’s duties are those
specified under the Architectural Services Contract and under subpart E of
this part, and, as applicable, those duties assigned to the ‘‘engineer’’ for
competitive procurement procedures in
part 1726 of this chapter.
(d) If the facilities are RUS financed,
the borrower shall submit or require
the architect to submit one copy of
each construction progress report to
RUS upon request.
(e) Additional information concerning RUS requirements for electric
borrowers’ headquarters facilities are
set forth in subpart E of this part. See
also RUS Bulletin 1724E–400, Guide to
Presentation of Building Plans and
Specifications, for additional guidance.
This bulletin is available from Program Development and Regulatory
Analysis, Rural Utilities Service, U.S.
Department of Agriculture, Stop 1522,
1400 Independence Ave., SW., Washington, DC 20250–1522.
§ 1724.21 Architectural
tracts.

services

con-

The provisions of this section apply
only to RUS financed electric system
facilities.
(a) RUS Form 220, Architectural
Services Contract, must be used by
electric borrowers when obtaining architectural services.
(b) The borrower shall ensure that
the architect furnishes or obtains all
architectural services related to the
design and construction management
of the facilities.
(c) Reasonable modifications or additions to the terms and conditions in
the RUS contract form may be made to
define the exact services needed for a
specific undertaking. Such modifications or additions shall not relieve the
architect or the borrower of the basic
responsibilities required by the RUS
contract form, and shall not alter any
terms and conditions required by law.

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§§ 1724.22–1724.29

7 CFR Ch. XVII (1–1–14 Edition)

All substantive changes must be approved by RUS prior to execution of
the contract.
(d) Architectural services contracts
are not subject to RUS approval and
need not be submitted to RUS unless
specifically requested by RUS on a case
by case basis.
(e) Closeout. Upon completion of all
services and obligations required under
each architectural services contract,
including, but not limited to, submission of final documents, the borrower
must closeout that contract. The borrower shall obtain from the architect a
final statement of cost, which must be
supported by detailed information as
appropriate. For example, out-of-pocket expense and per diem types of compensation should be listed separately
with
labor,
transportation,
etc.,
itemized for each service involving
these types of compensation. RUS
Form 284, Final Statement of Cost for
Architectural Service, may be used. All
computations of the compensation
must be made in accordance with the
terms of the architectural services contract. Closeout documents need not be
submitted to RUS unless specifically
requested by RUS on a case by case
basis.
§§ 1724.22–1724.29

[Reserved]

Subpart C—Engineering Services
§ 1724.30 Borrowers’
requirements—
engineering services.
The provisions of this section apply
to all borrower electric system facilities regardless of the source of financing.
(a) Each borrower shall select one or
more qualified persons to perform the
engineering services involved in the
planning, design, and construction
management of the system.
(b) Each borrower shall retain or employ one or more qualified engineers to
inspect and certify all new construction in accordance with § 1724.32. The
engineer must not be the borrower’s
manager.
(c) The selection of the engineer is
not subject to RUS approval unless
specifically required by RUS on a case
by case basis. Engineer’s qualification
information need not be submitted to

RUS unless specifically requested by
RUS on a case by case basis.
(d) The engineer’s duties are specified
under the Engineering Services Contract and under part 1726 of this chapter. The borrower shall ensure that the
engineer executes all certificates and
other instruments pertaining to the engineering details required by RUS.
(e) Additional requirements related
to appropriate seismic safety measures
are contained in part 1792, subpart C, of
this chapter, Seismic Safety of Federally Assisted New Building Construction.
(f) If the facilities are RUS financed,
the borrower shall submit or require
the engineer to submit one copy of
each construction progress report to
RUS upon RUS’ request.
EFFECTIVE DATE NOTE: At 78 FR 73371, Dec.
5, 2013, § 1724.30 was amended by revising
paragraph (a), effective Feb. 3, 2014. For the
convenience of the user, the revised text is
set forth as follows:
§ 1724.30 Borrowers’
neering services.

*

*

requirements—engi-

*

*

*

(a) Each borrower shall select one or more
qualified persons to perform the engineering
services involved in the planning (including
the development of an EE Program eligible
for financing pursuant to subpart H of part
1710 of this chapter, design, and construction
management of the system.

*

*

*

*

*

§ 1724.31 Engineering services contracts.
The provisions of this section apply
only to RUS financed electric system
facilities.
(a) RUS contract forms for engineering services shall be used. Reasonable
modifications or additions to the terms
and conditions in the RUS contract
form may be made to define the exact
services needed for a specific undertaking. Any such modifications or additions shall not relieve the engineer or
the borrower of the basic responsibilities required by the RUS contract
form, and shall not alter any terms and
conditions required by law. All substantive changes to the RUS contract
form shall be approved by RUS prior to
execution of the contract.

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Rural Utilities Service, USDA

§ 1724.32

(b) RUS Form 236, Engineering Service Contract—Electric System Design
and Construction, shall be used for all
distribution, transmission, substation,
and communications and control facilities. These contracts are not subject to
RUS approval and need not be submitted to RUS unless specifically requested by RUS on a case by case basis.
(c) RUS Form 211, Engineering Service Contract for the Design and Construction of a Generating Plant, shall
be used for all new generating units
and repowering of existing units. These
contracts require RUS approval.
(d) Any amendments to RUS approved engineering services contracts
require RUS approval.
(e) Closeout. Upon completion of all
services and obligations required under
each engineering services contract, including, but not limited to, submission
of final documents, the borrower must
closeout the contract. The borrower
shall obtain from the engineer a completed final statement of engineering
fees, which must be supported by detailed information as appropriate. RUS
Form 234, Final Statement of Engineering Fee, may be used. All computations of the compensation shall be
made in accordance with the terms of
the engineering services contract.
Closeout documents need not be submitted to RUS unless specifically requested by RUS on a case by case basis.
§ 1724.32 Inspection and certification
of work order construction.
The provisions of this section apply
to all borrower electric system facilities regardless of the source of financing.
(a) The borrower shall ensure that all
field inspection and related services
are performed within 6 months of the
completion of construction, and are
performed by a licensed engineer, except that a subordinate of the licensed
engineer may make the inspection,
provided the following conditions are
met:
(1) The inspection by the subordinate
is satisfactory to the borrower;
(2) This practice is acceptable under
applicable requirements of the States
in which the facilities are located;
(3) The subordinate is experienced in
making such inspections;

(4) The name of the person making
the inspection is included in the certification; and
(5) The licensed engineer signs such
certification which appears on the inventory of work orders.
(b) The inspection shall include a
representative and sufficient amount of
construction listed on each RUS Form
219, Inventory of Work Orders (or comparable form), being inspected to assure the engineer that the construction
is acceptable. Each work order that
was field inspected shall be indicated
on RUS Form 219 (or comparable form.)
The inspection services shall include,
but not be limited to, the following:
(1) Determination that construction
conforms to RUS specifications and
standards and to the requirements of
the National Electrical Safety Code
(NESC), State codes, and local codes;
(2) Determination that the staking
sheets or as-built drawings represent
the construction completed and inspected;
(3) Preparation of a list of construction clean-up notes and staking sheet
discrepancies to be furnished to the
owner to permit correction of construction, staking sheets, other records, and
work order inventories;
(4) Reinspection of construction corrected as a result of the engineer’s report;
(5) Noting, initialing, and dating the
staking or structure sheets or as-built
drawings and noting the corresponding
work order entry for line construction;
and
(6) Noting, initialing, and dating the
as-built drawings or sketches for generating plants, substations, and other
major facilities.
(c) Certification. (1) The following certification must appear on all inventories of work orders:
I hereby certify that sufficient inspection
has been made of the construction reported
by this inventory to give me reasonable assurance that the construction complies with
applicable specifications and standards and
meets appropriate code requirements as to
strength and safety. This certification is in
accordance with acceptable engineering
practice.

(2) A certification must also include
the name of the inspector, name of the

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§§ 1724.33–1724.39

7 CFR Ch. XVII (1–1–14 Edition)

firm, signature of the licensed engineer, the engineer’s State license number, and the date of signature.
§§ 1724.33–1724.39

[Reserved]

Subpart D—Electric System
Planning
§ 1724.40 General.
Borrowers shall have ongoing, integrated planning to determine their
short-term and long-term needs for
plant additions, improvements, replacements, and retirements for their
electric systems. The primary components of the planning system consist of
long-range engineering plans and construction work plans. Long-range engineering plans identify plant investments required over a long-range period, 10 years or more. Construction
work plans specify and document plant
requirements for a shorter term, 2 to 4
years. Long-range engineering plans
and construction work plans shall be in
accordance with part 1710, subpart F, of
this chapter. See also RUS Bulletins
1724D–101A, Electric System LongRange Planning Guide, and 1724D–101B,
System Planning Guide, Construction
Work Plans, for additional guidance.
These bulletins are available from Program Development and Regulatory
Analysis, Rural Utilities Service, U.S.
Department of Agriculture, Stop 1522,
1400 Independence Ave., SW., Washington, DC 20250–1522.
§§ 1724.41–1724.49

[Reserved]

Subpart E—Electric System Design
§ 1724.50 Compliance with National
Electrical Safety Code (NESC).
The provisions of this section apply
to all borrower electric system facilities regardless of the source of financing.
(a) A borrower shall ensure that its
electric system, including all electric
distribution, transmission, and generating facilities, is designed, constructed, operated, and maintained in
accordance with all applicable provisions of the most current and accepted
criteria of the National Electrical
Safety Code (NESC) and all applicable
and current electrical and safety re-

quirements of any State or local governmental entity. Copies of the NESC
may be obtained from the Institute of
Electrical and Electronic Engineers,
Inc., 445 Hoes Lane, Piscataway, NJ
08855. This requirement applies to the
borrower’s electric system regardless
of the source of financing.
(b) Any electrical standard requirements established by RUS are in addition to, and not in substitution for or a
modification of, the most current and
accepted criteria of the NESC and any
applicable electrical or safety requirements of any State or local governmental entity.
(c) Overhead distribution circuits
shall be constructed with not less than
the Grade C strength requirements as
described in Section 26, Strength Requirements, of the NESC when subjected to the loads specified in NESC
Section 25, Loadings for Grades B and
C. Overhead transmission circuits shall
be constructed with not less than the
Grade B strength requirements as described in NESC Section 26.
§ 1724.51 Design requirements.
The provisions of this section apply
to all borrower electric system facilities regardless of the source of financing.
(a) Distribution. All distribution facilities must conform to the applicable
RUS construction standards and utilize
RUS accepted materials.
(b) Transmission lines. (1) All transmission line design data must be approved by RUS.
(2) Design data consists of all significant design features, including, but not
limited to, transmission line design
data summary, general description of
terrain, right-of-way calculations, discussion concerning conductor and
structure selection, conductor sag and
tension information, design clearances,
span limitations due to clearances, galloping or conductor separation, design
loads, structure strength limitations,
insulator selection and design, guying
requirements, and vibration considerations. For lines composed of steel or
concrete poles, or steel towers, in
which load information will be used to
purchase the structures, the design
data shall also include loading trees,
structure configuration and selection,

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Rural Utilities Service, USDA

§ 1724.51

and a discussion concerning foundation
selection.
(3) Line design data for uprating
transmission lines to higher voltage
levels or capacity must be approved by
RUS.
(4) Transmission line design data
which has received RUS approval in
connection with a previous transmission line construction project for a
particular borrower is considered approved by RUS for that borrower, provided that:
(i) The conditions on the project fall
within the design data previously approved; and
(ii) No significant NESC revisions
have occurred.
(c) Substations. (1) All substation design data must be approved by RUS.
(2) Design data consists of all significant design features, including, but not
limited to, a discussion of site considerations, oil spill prevention measures,
design considerations covering voltage,
capacity, shielding, clearances, number
of low and high voltage phases, major
equipment, foundation design parameters, design loads for line support
structures and the control house, seismic considerations, corrosion, grounding, protective relaying, and AC and
DC auxiliary systems. Reference to applicable safety codes and construction
standards are also to be included.
(3) Substation design data which has
received RUS approval in connection
with a previous substation construction project for a particular borrower
is considered approved by RUS for that
borrower, provided that:
(i) The conditions on the project fall
within the design data previously approved; and
(ii) No significant NESC revisions
have occurred.
(d) Generating facilities. (1) This section covers all portions of a generating
plant including plant buildings, the
generator step-up transformer, and the
transmission switchyard at a generating plant. Warehouses and equipment
service buildings not associated with
generation plants are covered under
paragraph (e) of this section. Generation plant buildings must meet the requirements of paragraph (e)(1) of this
section.

(2) For all new generation units and
for all repowering projects, the design
outline shall be approved by RUS, unless RUS determines that a design outline is not needed for a particular
project.
(3) The design outline will include all
significant design criteria. During the
early stages of the project, RUS will, in
consultation with the borrower and its
consulting engineer, identify the specific items which are to be included in
the design outline.
(e) Headquarters—(1) Applicable laws.
The design and construction of headquarters facilities shall comply with
all applicable Federal, State, and local
laws and regulations, including, but
not limited to:
(i) Section 504 of the Rehabilitation
Act of 1973, (29 U.S.C. 794), which states
that no qualified individual with a
handicap shall, solely by reason of
their handicap, be excluded from participation in, be denied the benefits of,
or be subject to discrimination under
any program or activity receiving Federal financial assistance. The Uniform
Federal Accessibility Standards (41
CFR part 101–19, subpart 101–19.6, appendix A) are the applicable standards
for all new or altered borrower buildings, regardless of the source of financing.
(ii) The Architectural Barriers Act of
1968 (42 U.S.C. 4151), which requires
that buildings financed with Federal
funds are designed and constructed to
be accessible to the physically handicapped.
(iii) The Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7701 et seq.),
and Executive Order 12699, Seismic
Safety of Federal and Federally Assisted or Regulated New Building Construction (3 CFR 1990 Comp., p. 269).
Appropriate seismic safety provisions
are required for new buildings for
which RUS provides financial assistance. (See part 1792, subpart C, of this
chapter.)
(2) The borrower shall provide evidence, satisfactory in form and substance to the Administrator, that each
building will be designed and built in
compliance with all Federal, State, and
local requirements.
(f) Communications and control. (1)
This section covers microwave and

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§ 1724.52

7 CFR Ch. XVII (1–1–14 Edition)

powerline carrier communications systems, load control, and supervisory
control and data acquisition (SCADA)
systems.
(2) The performance considerations
for a new or replacement master system must be approved by RUS. A master system includes the main controller and related equipment at the
main control point. Performance considerations include all major system
features and their justification, including, but not limited to, the objectives
of the system, the types of parameters
to be controlled or monitored, the communication media, alternatives considered, and provisions for future needs.
§ 1724.52 Permitted deviations from
RUS construction standards.
The provisions of this section apply
to all borrower electric system facilities regardless of the source of financing.
(a) Structures for raptor protection. (1)
RUS standard distribution line structures may not have the extra measure
of protection needed in areas frequented by eagles and other large
raptors to protect such birds from electric shock due to physical contact with
energized wires. Where raptor protection in the design of overhead line
structures is required by RUS; a Federal, State or local authority with permit or license authority over the proposed construction; or where the borrower voluntarily elects to comply
with the recommendations of the U.S.
Fish and Wildlife Service or State wildlife agency, borrowers are permitted to
deviate from RUS construction standards, provided:
(i) Structures are designed and constructed in accordance with ‘‘Suggested Practices for Raptor Protection
on Powerlines: The State of the Art in
1996’’ (Suggested Practices for Raptor
Protection); and,
(ii) Structures are in accordance with
the NESC and applicable State and
local regulations.
(2) Any deviation from the RUS construction standards for the purpose of
raptor protection, which is not in accordance with the Suggested Practices
for Raptor Protection, must be approved by RUS prior to construction.
‘‘Suggested Practices for Raptor Pro-

tection on Powerlines: The State of the
Art in 1996,’’ published by the Edison
Electric
Institute/Raptor
Research
Foundation, is hereby incorporated by
reference. This incorporation by reference is approved by the Director of
the Office of the Federal Register in
accordance with 5 U.S.C. 552(a) and 1
CFR part 51. Copies of this publication
may be obtained from the Raptor Research Foundation, Inc., c/o Jim
Fitzpatrick, Treasurer, Carpenter Nature Center, 12805 St. Croix Trail
South, Hastings, Minnesota 55033. It is
also available for inspection during
normal business hours at RUS, Electric
Staff Division, 1400 Independence Avenue, SW., Washington, DC, Room 1246–
S, and at the National Archives and
Records Administration (NARA). For
information on the availability of this
material at NARA, call 202–741–6030, or
go
to:
http://www.archives.gov/
federallregister/
codeloflfederallregulations/
ibrllocations.html.
(b) Transformer neutral connections.
Where it is necessary to separate the
primary and secondary neutrals to provide the required electric service to a
consumer, the RUS standard transformer secondary neutral connections
may be modified in accordance with
Rule 97D2 of the NESC.
(c) Lowering of neutral conductor on
overhead distribution lines. (1) It is permissible to lower the neutral attachment on standard construction poletop assemblies an additional distance
not exceeding two feet (0.6 m) for the
purpose of economically meeting the
clearance requirements of the NESC.
(2) It is permissible to lower the
transformer and associated neutral attachment up to two feet (0.6 m) to provide adequate clearance between the
cutouts and single-phase, conventional
distribution transformers.
(3) It is permissible to lower the neutral attachment on standard construction pole-top assemblies an additional
distance of up to six feet (2 m) for the
purpose of performing construction and
future line maintenance on these assemblies from bucket trucks designed
for such work.
[63 FR 35314, June 29, 1998, as amended at 69
FR 18803, Apr. 9, 2004]

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Rural Utilities Service, USDA
§ 1724.53 Preparation
specifications.

of

§ 1724.54
plans

and

The provisions of this section apply
to all borrower electric system facilities regardless of the source of financing.
(a) General. (1) The borrower (acting
through the engineer, if applicable)
shall prepare plans and specifications
that adequately represent the construction to be performed.
(2) Plans and specifications for distribution, transmission, or generating
facilities must be based on a construction work plan (as amended, if applicable), engineering study or construction
program which has been approved by
RUS if financing for the facilities will
at any time be requested from RUS.
(b) Composition of plans and specifications package. (1) Whether built by force
account or contract, each set of plans
and specifications must include:
(i) Distribution lines. Specifications
and drawings, staking sheets, key map
and appropriate detail maps;
(ii) Transmission lines. Specifications
and drawings, transmission line design
data manual, vicinity maps of the
project, a one-line diagram, and plan
and profile sheets;
(iii) Substations. Specifications and
drawings, including a one-line diagram,
plot and foundation plan, grounding
plan, and plans and elevations of structure and equipment, as well as all
other necessary construction drawings,
in sufficient detail to show phase spacing and ground clearances of live parts;
(iv) Headquarters. Specifications and
drawings, including:
(A) A plot plan showing the location
of the proposed building plus paving
and site development;
(B) A one line drawing (floor plan and
elevation view), to scale, of the proposed building with overall dimensions
shown; and
(C) An outline specification including
materials to be used (type of frame, exterior finish, foundation, insulation,
etc.); and
(v) Other facilities (e.g., generation and
communications and control facilities).
Specifications and drawings, as necessary and in sufficient detail to accurately define the scope and quality of
work required.

(2) For contract work, the appropriate standard RUS construction contract form shall be used as required by
part 1726 of this chapter.
§ 1724.54 Requirements for RUS approval of plans and specifications.
The provisions of this section apply
only to RUS financed electric system
facilities.
(a) For any contract subject to RUS
approval in accordance with part 1726
of this chapter, the borrower shall obtain RUS approval of the plans and
specifications, as part of the proposed
bid package, prior to requesting bids.
RUS may require approval of other
plans and specifications on a case by
case basis.
(b) Distribution lines. RUS approval of
the plans and specifications for distribution line construction is not required if standard RUS drawings, specifications, RUS accepted material, and
standard RUS contract forms (as required by part 1726 of this chapter) are
used. Drawings, plans and specifications for nonstandard distribution construction must be submitted to RUS
and receive approval prior to requesting bids on contracts or commencement of force account construction.
(c) Transmission lines. (1) Plans and
specifications for transmission construction projects which are not based
on RUS approved line design data or do
not use RUS standard structures must
receive RUS approval prior to requesting bids on contracts or commencement of force account construction.
(2) Unless RUS approval is required
by paragraph (a) of this section, plans
and specifications for transmission
construction which use previously approved design data and standard structures do not require RUS approval.
Plans and specifications for related
work, such as right-of-way clearing,
equipment, and materials, do not require RUS approval unless required by
paragraph (a) of this section.
(d) Substations. (1)(i) Plans and specifications for all new substations must
receive RUS approval prior to requesting bids on contracts or commencement of force account construction,
unless:
(A) The substation design has been
previously approved by RUS; and

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§ 1724.55

7 CFR Ch. XVII (1–1–14 Edition)

(B) No significant NESC revisions
have occurred.
(ii) The borrower shall notify RUS in
writing that a previously approved design will be used, including identification of the previously approved design.
(2) Unless RUS approval is required
by paragraph (a) of this section, plans
and specifications for substation modifications and for substations using previously approved designs do not require
RUS approval.
(e) Generation facilities. (1) This paragraph (e) covers all portions of a generating plant including plant buildings,
the generator step-up transformer, and
the transmission switchyard at a generating plant. Warehouses and equipment service buildings not associated
with generation plants are covered
under paragraph (f) of this section.
(2) The borrower shall obtain RUS
approval, prior to issuing invitations
to bid, of the terms and conditions for
all generating plant equipment or construction contracts which will cost
$5,000,000 or more. Unless RUS approval
is required by paragraph (a) of this section, plans and specifications for generating plant equipment and construction do not require RUS approval.
(f) Headquarters buildings. (1) This
paragraph (f) covers office buildings,
warehouses, and equipment service
buildings. Generating plant buildings
are covered under paragraph (e) of this
section.
(2) Unless RUS approval is required
by paragraph (a) of this section, plans
and specifications for headquarters
buildings do not require RUS approval.
The borrower shall submit two copies
of RUS Form 740g, Application for
Headquarters Facilities. This form is
available from Program Development
and Regulatory Analysis, Rural Utilities Service, United States Department
of Agriculture, Stop 1522, 1400 Independence Ave., SW., Washington, DC
20250–1522. The application must show
floor area and estimated cost breakdown between office building space and
space for equipment warehousing and
service facilities, and include a one line
drawing (floor plan and elevation
view), to scale, of the proposed building
with overall dimensions shown. The information concerning the planned
building may be included in the bor-

rower’s construction work plan in lieu
of submitting it with the application.
(See 7 CFR part 1710, subpart F.) Prior
to issuing the plans and specifications
for bid, the borrower shall also submit
to RUS a statement, signed by the architect or engineer, that the building
design meets the Uniform Federal Accessibility
Standards
(See
§ 1724.51(e)(1)(i)).
(g) Communications and control facilities. (1) This paragraph (g) covers
microwave and powerline carrier communications systems, load control, and
supervisory control and data acquisition (SCADA) systems.
(2) The borrower shall obtain RUS
approval, prior to issuing invitations
to bid, of the terms and conditions for
communications and control facilities
contracts which will cost $1,500,000 or
more. Unless RUS approval is required
by paragraph (a) of this section, plans
and specifications for communications
and control facilities do not require
RUS approval.
(h) Terms and conditions include the
RUS standard form of contract, general
and special conditions, and any other
non-technical provisions of the contract. Terms and conditions which
have received RUS approval in connection with a previous contract for a particular borrower are considered approved by RUS for that borrower.
[63 FR 35314, June 29, 1998, as amended at 65
FR 63196, Oct. 23, 2000; 77 FR 3071, Jan. 23,
2012]

§ 1724.55

Dam safety.

(a) The provisions of this section
apply only to RUS financed electric
system facilities.
(1)(i) Any borrower that owns or operates a RUS financed dam must utilize the‘‘Federal Guidelines for Dam
Safety,’’(Guidelines), as applicable. A
dam, as more fully defined in the
Guidelines, is generally any artificial
barrier which either:
(A) Is 25 feet (8 m) or more in height;
or
(B) Has an impounding capacity at
maximum water storage elevation of 55
acre-feet (68,000 m3) or more.
(ii) The‘‘Federal Guidelines for Dam
Safety,’’FEMA 93, June, 1979, published

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Rural Utilities Service, USDA

§ 1724.55

by the Federal Emergency Management Agency (FEMA), is hereby incorporated by reference. This incorporation by reference is approved by the Director of the Office of the Federal Register in accordance with 5 U.S.C. 552(a)
and 1 CFR part 51. Copies of
the‘‘Federal Guidelines for Dam Safety’’may be obtained from the Federal
Emergency Management Agency, Mitigation Directorate, PO Box 2012,
Jessup, MD 20794. It is also available
for inspection during normal business
hours at RUS, Electric Staff Division,
1400 Independence Avenue, SW., Washington, DC, Room 1246–S, and at the
National Archives and Records Administration (NARA). For information on
the availability of this material at
NARA, call 202–741–6030, or go to: http://
www.archives.gov/federallregister/
codeloflfederallregulations/
ibrllocations.html.
(2) The borrower shall evaluate the
hazard potential of its dams in accordance with Appendix E of the U.S. Army
Corps of Engineers Engineering and Design Dam Safety Assurance Program,
ER 1110–2–1155, July 31, 1995. A summary of the hazard potential criteria is
included for information as Appendix A
to this subpart. The U.S. Army Corps
of Engineers Engineering and Design
Dam Safety Assurance Program, ER
1110–2–1155, July 31, 1995, published by
the United States Army Corps of Engineers, is hereby incorporated by reference. This incorporation by reference
is approved by the Director of the Office of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR
part 51. Copies of the U. S. Army Corps
of Engineers Engineering and Design
Dam Safety Assurance Program may
be obtained from the U. S. Army Corps
of Engineers, Publications Depot, 2803
52nd Ave., Hyattsville, MD 20781. It is
also available for inspection during
normal business hours at RUS, Electric
Staff Division, 1400 Independence Avenue, SW., Washington, DC, Room 1246–
S, and at the National Archives and
Records Administration (NARA). For
information on the availability of this
material at NARA, call 202–741–6030, or
go
to:
http://www.archives.gov/
federallregister/
codeloflfederallregulations/
ibrllocations.html.

(3) For high hazard potential dams,
the borrower must obtain an independent review of the design and critical features of construction. The reviewer must have demonstrated experience in the design and construction of
dams of a similar size and nature. The
reviewer must be a qualified engineer
not involved in the original design of
the dam or a Federal or State agency
responsible for dam safety. The reviewer must be approved by RUS.
(4) The independent review of design
must include, but not necessarily be
limited to, plans, specifications, design
calculations, subsurface investigation
reports, hydrology reports, and redesigns which result from encountering
unanticipated or unusual conditions
during construction.
(5) The independent review of construction shall include:
(i) Foundation preparation and treatment. When the foundation has been excavated and exposed, and before critical structures such as earth embankments or concrete structures are
placed thereon, the borrower shall require the reviewer to conduct an independent examination of the foundation
to ensure that suitable foundation material has been reached and that the
measures proposed for treatment of the
foundation are adequate. This examination must extend to the preparation
and treatment of the foundation for
the abutments.
(ii) Fill placement. During initial
placement of compacted fill materials,
the borrower shall require the reviewer
to conduct an independent examination
to ensure that the materials being used
in the various zones are suitable and
that the placement and compaction
procedures being used by the contractor will result in a properly constructed embankment.
(6) If the reviewer disagrees with any
aspect of the design or construction
which could affect the safety of the
dam, then the borrower must meet
with the design engineer and the reviewer to resolve the disagreements.
(7) Emergency action plan. For high
hazard potential dams, the borrower
must develop an emergency action plan
incorporating preplanned emergency
measures to be taken prior to and following a potential dam failure. The

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§§ 1724.56–1724.69

7 CFR Ch. XVII (1–1–14 Edition)

plan should be coordinated with local
government and other authorities involved with the public safety and be
approved by the borrower’s board of directors.
(b)(1) For more information and guidance, the following publications regarding dam safety are available from
FEMA:
(i)‘‘Emergency
Action
Planning
Guidelines for Dams,’’FEMA 64.
(ii)‘‘Federal Guidelines for Earthquake
Analysis
and
Design
of
Dams,’’FEMA 65.

(iii)‘‘Federal Guidelines for Selecting
and Accommodating Inflow Design
Floods for Dams,’’FEMA 94.
(iv)‘‘Dam Safety: An Owner’s Guidance Manual,’’FEMA 145, August, 1987.
(2) These publications may be obtained from the Federal Emergency
Management Agency, Mitigation Directorate, PO Box 2012, Jessup, MD
20794.
[63 FR 35314, June 29, 1998, as amended at 69
FR 18803, Apr. 9, 2004]

§§ 1724.56–1724.69

[Reserved]

APPENDIX A TO SUBPART E OF PART 1724—HAZARD POTENTIAL CLASSIFICATION FOR
CIVIL WORKS PROJECTS
The source for this appendix is U.S. Army Corps of Engineers Engineering and Design Dam
Safety Assurance Program, ER 1110–2–1155, Appendix E. Appendix E is available from the address listed in § 1724.55(a)(2).
Category 1

Low

Significant

High

Direct Loss of Life 2 .....................................

None expected (due to
rural location with no
permanent structures
for human habitation).
No disruption of services—repairs are cosmetic or rapidly repairable damage.
Private agricultural lands,
equipment and isolated
buildings.
Minimal incremental damage.

Uncertain (rural location
with few residences
and only transient or industrial development).
Disruption of essential facilities and access.

Certain (one or more extensive residential,
commercial or industrial
development).
Disruption of critical facilities and access.

Major public and private
facilities.

Extensive public and private facilities.

Major mitigation required

Extensive mitigation cost
or impossible to mitigate.

Lifeline Losses 3 ..........................................

Property Losses 4 ........................................

Environmental Losses 5 ...............................

NOTES:
1 Categories are based upon project performance and do not apply to individual structures within a project.
2 Loss of life potential based upon inundation mapping of area downstream of the project. Analysis of loss of life potential
should take into account the extent of development and associated population at risk, time of flood wave travel and warning time.
3 Indirect threats to life caused by the interruption of lifeline services due to project failure, or operation, i.e., direct loss of (or
access to) critical medical facilities or loss of water or power supply, communications, power supply, etc.
4 Direct economic impact of value of property damages to project facilities and down stream property and indirect economic impact due to loss of project services, i.e., impact on navigation industry of the loss of a dam and navigation pool, or impact upon a
community of the loss of water or power supply.
5 Environmental impact downstream caused by the incremental flood wave produced by the project failure, beyond which
would normally be expected for the magnitude flood event under a without project conditions.

Subpart F—RUS Contract Forms
§ 1724.70 Standard forms of contracts
for borrowers.
(a) General. The standard loan agreement between RUS and its borrowers
provides that, in accordance with applicable RUS regulations in this chapter, the borrower shall use standard
forms of contract promulgated by RUS
for construction, procurement, engineering services, and architectural
services financed by a loan made or
guaranteed by RUS. (See section 5.16 of

appendix A to subpart C of part 1718 of
this chapter.) This subpart prescribes
RUS procedures in promulgating electric program standard contract forms
and identifies those forms that borrowers are required to use.
(b) Contract forms. RUS promulgates
standard contract forms, identified in
the List of Required Contract Forms,
§ 1724.74(c), that borrowers are required
to use in accordance with the provisions of this part. In addition, RUS
promulgates standard contract forms

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Rural Utilities Service, USDA

§ 1724.73

identified in the List of Guidance Contract Forms contained in § 1724.74(c)
that the borrowers may but are not required to use in the planning, design,
and construction of their electric systems. Borrowers are not required to
use these guidance contract forms in
the absence of an agreement to do so.
[63 FR 58284, Oct. 30, 1998]

§ 1724.71 Borrower contractual obligations.
(a) Loan agreement. As a condition of
a loan or loan guarantee under the RE
Act, borrowers are normally required
to enter into RUS loan agreements
pursuant to which the borrower agrees
to use RUS standard forms of contracts
for construction, procurement, engineering services and architectural
services financed in whole or in part by
the RUS loan. Normally, this obligation is contained in section 5.16 of the
loan contract. To comply with the provisions of the loan agreements as implemented by this part, borrowers must
use those forms of contract (hereinafter sometimes called‘‘listed contract
forms’’) identified in the List of Required Standard Contract Forms contained in § 1724.74(c).
(b) Compliance. If a borrower is required by this part or by its loan agreement with RUS to use a listed standard
form of contract, the borrower shall
use the listed contract form in the format available from RUS, either paper
or electronic format. Exact electronic
reproduction is acceptable. The approved RUS standard forms of contract
shall not be retyped, changed, modified, or altered in any manner not specifically authorized in this part or approved by RUS in writing on a case-bycase basis. Any modifications approved
by RUS on a case-by-case basis must be
clearly shown so as to indicate the
modification difference from the standard form of contract.
(c) Amendment. Where a borrower has
entered into a contract in the form required by this part, no change may be
made in the terms of the contract, by
amendment, waiver or otherwise, without the prior written approval of RUS.
(d) Waiver. RUS may waive for good
cause, on a case by case basis, the requirements imposed on a borrower pursuant to this part. Borrowers seeking a

waiver by RUS must provide RUS with
a written request explaining the need
for the waiver.
(e) Violations. A failure on the part of
the borrower to use listed contracts as
prescribed in this part is a violation of
the terms of its loan agreement with
RUS and RUS may exercise any and all
remedies available under the terms of
the agreement or otherwise.
[63 FR 58285, Oct. 30, 1998, as amended at 69
FR 7108, Feb. 13, 2004]

§ 1724.72 Notice and publication
listed contract forms.

(a) Notice. Upon initially entering
into a loan agreement with RUS, borrowers will be provided with all listed
contract forms. Thereafter, new or revised listed contract forms promulgated by RUS, including RUS approved
exceptions and alternatives, will be
sent by regular or electronic mail to
the address of the borrower as identified in its loan agreement with RUS.
(b) Availability. Listed contract forms
are published by RUS. Interested parties may obtain the forms from: Rural
Utilities Service, Program Development and Regulatory Analysis, U.S.
Department of Agriculture, Stop 1522,
1400 Independence Avenue, SW., Stop
1522, Washington, DC 20250–1522, telephone number (202) 720–8674. The list of
contract forms can be found in
§ 1724.74(c), List of Required Contract
Forms.
[63 FR 58285, Oct. 30, 1998]

§ 1724.73 Promulgation of new or revised contract forms.
RUS may, from time to time, undertake to promulgate new contract forms
or revise or eliminate existing contract
forms. In so doing, RUS shall publish
notice of rulemaking in the FEDERAL
REGISTER announcing, as appropriate, a
revision in, or a proposal to amend
§ 1724.74, List of Electric Program
Standard Contract Forms. The amendment may change the existing identification of a listed contract form; for
example, changing the issuance date of
a listed contract form or by identifying
a new required contract form. The notice of rulemaking will describe the
new standard contract form or the substantive change in the listed contract

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§ 1724.74

7 CFR Ch. XVII (1–1–14 Edition)

form, as the case may be, and the
issues involved. The standard contract
form or relevant portions thereof may
be appended to the supplementary information section of the notice of rulemaking. As appropriate, the notice of
rulemaking shall provide an opportunity for interested persons to provide
comments. A copy of each such FEDERAL REGISTER document shall be sent
by regular or electronic mail to all borrowers.
[63 FR 58285, Oct. 30, 1998]

§ 1724.74 List of electric
standard contract forms.

program

(a) General. The following is a list of
RUS electric program standard contract forms for architectural and engineering services. Paragraph (c) of this
section contains the list of required
contract forms, i.e., those forms of contracts that borrowers are required to
use by the terms of their RUS loan
agreements as implemented by the provisions of this part. Paragraph (d) of
this section contains the list of guidance contract forms, i.e., those forms of
contracts provided as guidance to borrowers in the planning, design, and
construction of their systems. All of
these forms are available from RUS.
See § 1724.72(b) for availability of these
forms.
(b) Issuance date. Where required by
this part to use a standard form of contract in connection with RUS financing, the borrower shall use that form
identified by issuance date in the List
of Required Contract Forms in paragraph (c) of this section, as most recently published as of the date the borrower executes the contract.
(c) List of required contract forms. (1)
RUS Form 211, Rev. 4–04, Engineering
Service Contract for the Design and
Construction of a Generating Plant.
This form is used for engineering services for generating plant construction.
(2) RUS Form 220, Rev. 6–98, Architectural Services Contract. This form
is used for architectural services for
building construction.
(3) RUS Form 236, Rev. 6–98, Engineering
Service
Contract—Electric
System Design and Construction. This
form is used for engineering services
for distribution, transmission, sub-

station, and communications and control facilities.
(d) List of guidance contract forms. (1)
RUS Form 179, Rev. 9–66, Architects
and Engineers Qualifications. This
form is used to document architects
and engineers qualifications.
(2) RUS Form 215, Rev. 5–67, Engineering
Service
Contract—System
Planning. This form is used for engineering services for system planning.
(3) RUS Form 234, Rev. 3–57, Final
Statement of Engineering Fee. This
form is used for the closeout of engineering services contracts.
(4) RUS Form 241, Rev. 3–56, Amendment of Engineering Service Contract.
This form is used for amending engineering service contracts.
(5) RUS Form 244, Rev. 12–55, Engineering
Service
Contract—Special
Services. This form is used for miscellaneous engineering services.
(6) RUS Form 258, Rev. 4–58, Amendment of Engineering Service Contract—Additional Project. This form is
used for amending engineering service
contracts to add an additional project.
(7) RUS Form 284, Rev. 4–72, Final
Statement of Cost for Architectural
Service. This form is used for the closeout of architectural services contracts.
(8) RUS Form 297, Rev. 12–55, Engineering Service Contract—Retainer for
Consultation Service. This form is used
for engineering services for consultation service on a retainer basis.
(9) RUS Form 459, Rev. 9–58, Engineering
Service
Contract—Power
Study. This form is used for engineering services for power studies.
[63 FR 58285, Oct. 30, 1998, as amended at 65
FR 63196, Oct. 23, 2000; 69 FR 52595, Aug. 27,
2004]

§§ 1724.75–1724.99

[Reserved]

PART
1726—ELECTRIC
SYSTEM
CONSTRUCTION POLICIES AND
PROCEDURES
Subpart A—General
Sec.
1726.1–1726.9 [Reserved]
1726.10 Introduction.
1726.11 Purpose.
1726.12 Applicability.
1726.13 Waivers.
1726.14 Definitions.

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