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Joint Ownership and Environmental Review / Certification of Control Environmental Review

The Electric Program is continuing its review of its regulations and processes in order to identify requirements which no longer add value to the RUS loan underwriting process or overall portfolio management. We have successfully implemented several of these revisions including our review of the long range plan (LRP). In a letter dated March 12, 2013, I advised you that RUS had determined that our review of the LRP was duplicative and that RUS would no longer review and accept the LRP.

As this initiative continues, we are also looking at processes we can streamline or provide clarification to better assist our borrowers. The Electric Program is aware that a significant number of RUS borrowers are joint owners in numerous power plants, transmission lines, and related electric facilities. In many instances, these borrowers lack sufficient control to determine whether or not capital additions or improvements will be constructed or otherwise alter the timing or schedule of such construction. At times, RUSenvironmental review process pursuant to 7 CFR 1794, Environmental Policies and Procedures, has not been followed for these actions in a timely manner resulting in the projects/actions being ineligible for RUS financing.

In order to assist our borrowers, RUS has developed the attached certification to clarify the environmental clearance process for projects where the borrower lacks sufficient control and avoid situations where the projects become ineligible for RUS financing. The certification is to be executed and submitted to the Electric Program as soon as the borrower becomes aware of the construction projects. This will help to expedite RUS environmental review in instances where the borrower holds an ownership interest of less than 33 1/3 percent.

For additional information, please see the attached letter to all Electric Program borrowers.

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Last Modified:11/21/2014 
 
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