delete PART 1726—ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES
Implements loan agreements between Rural Utilities Service and electric borrowers, requiring compliance with RUS policies for materials, equipment, and construction financed with RUS loans. Establishes procurement procedures, contract forms, and approval requirements for electric system development.
This regulation creates unnecessary federal oversight of rural electric utilities, imposing costly compliance burdens that distort market competition and raise barriers to entry. The requirements for specific contract forms, procurement procedures, and RUS approval for projects under $5 million represent regulatory capture that benefits incumbent contractors while harming small utilities and rural consumers through higher costs and reduced innovation.