81_FR_37232 81 FR 37121 - Rural Broadband Access Loans and Loan Guarantees

81 FR 37121 - Rural Broadband Access Loans and Loan Guarantees

DEPARTMENT OF AGRICULTURE
Rural Utilities Service

Federal Register Volume 81, Issue 111 (June 9, 2016)

Page Range37121-37122
FR Document2016-13302

The Rural Utilities Service (RUS), hereinafter referred to as the Agency, is confirming the interim final rule published in the Federal Register on July 30, 2015, which amends its regulation for the Rural Broadband Access Loan and Loan Guarantee Program (Broadband Loan Program).

Federal Register, Volume 81 Issue 111 (Thursday, June 9, 2016)
[Federal Register Volume 81, Number 111 (Thursday, June 9, 2016)]
[Rules and Regulations]
[Pages 37121-37122]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-13302]



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Rules and Regulations
                                                Federal Register
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under 50 titles pursuant to 44 U.S.C. 1510.

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Federal Register / Vol. 81, No. 111 / Thursday, June 9, 2016 / Rules 
and Regulations

[[Page 37121]]



DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1738

RIN 0572-AC06


Rural Broadband Access Loans and Loan Guarantees

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule; confirmation.

-----------------------------------------------------------------------

SUMMARY: The Rural Utilities Service (RUS), hereinafter referred to as 
the Agency, is confirming the interim final rule published in the 
Federal Register on July 30, 2015, which amends its regulation for the 
Rural Broadband Access Loan and Loan Guarantee Program (Broadband Loan 
Program).

DATES: Effective June 9, 2016.

FOR FURTHER INFORMATION CONTACT: Keith Adams, Assistant Administrator, 
Telecommunications Program, Rural Utilities Program, U.S. Department of 
Agriculture, 1400 Independence Avenue SW., STOP 1590, Room 5151-S, 
Washington, DC 20250-1590. Telephone number: (202) 720-9554, Facsimile: 
(202) 720-0810.

SUPPLEMENTARY INFORMATION: Since the inception of the Broadband Loan 
Program, the Agency has faced, and continues to face, significant 
challenges in delivering the program due to the following factors: (1) 
The significant number of applicants proposing to offer broadband 
service that are start-ups with limited resources; (2) the continual 
evolution of telecommunications technology; and (3) the associated 
higher costs of serving rural communities. With the enactment of the 
Agricultural Act of 2014 (the 2014 Farm Bill), the Broadband Loan 
Program has been significantly modified, and was suspended while the 
Agency revised this regulation. Given that the program was unable to 
operate during the revision, the Agency published an interim rule on 
July 30, 2015 in the Federal Register (80 FR 45397) so that the program 
could immediately reopen. The Agency invited comments to guide its 
efforts in drafting the new procedures implementing the 2014 Farm Bill 
and received comments from the National Cable & Telecommunications 
Association, WTA-Advocates for Rural Broadband and Mr. James Cook. 
These comments and the Agency's responses are summarized as follows:

Broadband Service and Broadband Lending Speed Definitions

    Comment: Respondents commented that the definitions for Broadband 
Service, which sets the eligibility standard for an area, and Broadband 
Lending Speed, which sets the construction standard, are too low and 
should be raised to higher standards to be more in line with the 
current Federal Communications Commission (FCC) definition for 
broadband of 25 megabits downstream and 3 megabits upstream.
    Response: As the respondents noted in their comments, the 
regulation establishes a process to change these definitions by 
publishing new requirements when a NOSA/NOFA is published opening up an 
application window. The Agency agrees that higher definitions would be 
beneficial to rural residents. However, when these definitions are set, 
it is not only the bandwidth requirement for rural areas that is 
considered but also the amount of funding that is available for any 
given application window. If a higher definition for bandwidth is used, 
more of the country then becomes eligible for funding. When limited 
funding is available, the Agency has to ensure that those funds are 
directed to the most unserved rural areas. The Agency will re-evaluate 
these requirements every time a NOSA/NOFA is published and set the 
standards accordingly.

Overbuilding

    Comment: Respondents commented that the RUS investment should go 
into unserved areas and that the Agency count all terrestrial providers 
in the proposed service territory when determining area eligibility.
    Response: RUS agrees that unserved areas should be the target of 
the program. To ensure that all terrestrial broadband providers are 
counted in an area where an application is being considered, RUS has 
developed a multi-layer approach to locate them. First, when an 
application is submitted, the proposed service territory maps will be 
posted online utilizing the RUS Mapping Tool and existing service 
providers may respond to the public notice. If three or more existing 
providers are identified in the area and they meet the minimum 
eligibility speeds, then that area is considered ineligible for 
funding. If no providers respond to the public notice, then the Agency 
will have its field staff visit the proposed service area and locate 
all broadband providers in the area. The field staff will contact these 
providers and request that they respond to the public notice.

Area Eligibility

    Comment: One respondent suggested that instead of three incumbents 
making a service area ineligible for funding, that the requirement be 
changed to two incumbents. The respondent also suggested that the 
definition of broadband service be raised to the current FCC definition 
for broadband of 25 megabits downstream and three megabits upstream.
    Response: Although there is merit in using a higher bandwidth 
definition to determine area eligibility, the requirement that three 
incumbents in an area make that area ineligible is a statutory 
requirement and cannot be changed. The regulation does allow for the 
eligibility definition to be changed and the Agency will consider 
higher speeds whenever a NOSA/NOFA is published. As stated previously, 
the Agency must also recognize the amount of funding that is available 
each time an application window is opened and will set the eligibility 
definition accordingly.

Affordable Rates

    Comment: One commenter reiterated that broadband service in rural 
areas needs to be affordable.
    Response: Applicants must complete a market survey and a 
competitive analysis of all providers in the proposed service area as 
part of the application. This ensures that price points are set at the 
proper level for the area in question and that the operation is 
sustainable. There is a balance between providing high quality 
broadband service and charging the appropriate rate. It must be 
recognized that in less dense population

[[Page 37122]]

areas, it may be necessary to charge a higher rate to ensure the 
viability of the operation.

Affiliated Companies

    Comment: One commenter proposed that affiliate or affiliated 
companies providing broadband service in the same proposed funded 
service area should be recognized as one incumbent service provider 
when considering if an area is eligible for funding.
    Response: Each company that is providing broadband service in an 
area and meets the definition of an incumbent service provider will be 
counted as an incumbent service provider in determining the eligibility 
of an area. RUS cannot treat legally established companies properly 
acting as independent companies as the same entity.

Broadband Usage Restrictions

    Comment: One commenter recommended that if a company has capped the 
amount of bandwidth that is allowed for a given period, that additional 
standards should be established in determining if this provider would 
be counted as an incumbent service provider when determining service 
eligibility.
    Response: The Agency appreciates this suggestion and will consider 
it during the next revision to the regulation. The main goal of the 
program is to provide funding to areas that do not have any broadband 
service. Most companies that cap bandwidth have options where a 
consumer can buy more bandwidth at an additional cost.

Wireless Broadband Service

    Comment: One commenter recommended that wireless solutions for 
broadband service should be validated during busy hour/busy time when 
determining if the wireless provider meets the definition for an 
incumbent service provide when determining area eligibility.
    Response: There are many levels of providing broadband service and 
a number of ways for determining this. The Agency has elected to use 
advertised broadband rates that are being sold and to validate that 
this level of service is being provided in an area. We will consider 
implementing additional tests the next time the regulation is revised. 
If tests of this nature are implemented for wireless service providers 
then corresponding tests will have to be implemented for wireline 
service providers.
    The Agency appreciates the interest of the commenters and thanks 
them for their comment submissions.
    The Rural Utilities Service did not receive any significant adverse 
comments during the public comment period on the interim rule, and 
therefore confirms the rule without change.

PART 1738--RURAL BROADBAND ACCESS LOANS AND LOAN GUARANTEES

    Accordingly, the interim rule amending 7 CFR part 1738 which was 
published at 80 FR 45397 on July 30, 2015, is adopted as a final rule 
without change.

    Dated: May 26, 2016.
Brandon McBride,
Administrator, Rural Utilities Service.
[FR Doc. 2016-13302 Filed 6-8-16; 8:45 am]
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                                                                                                                                                                                               37121

                                             Rules and Regulations                                                                                          Federal Register
                                                                                                                                                            Vol. 81, No. 111

                                                                                                                                                            Thursday, June 9, 2016



                                             This section of the FEDERAL REGISTER                    revision, the Agency published an                      area where an application is being
                                             contains regulatory documents having general            interim rule on July 30, 2015 in the                   considered, RUS has developed a multi-
                                             applicability and legal effect, most of which           Federal Register (80 FR 45397) so that                 layer approach to locate them. First,
                                             are keyed to and codified in the Code of                the program could immediately reopen.                  when an application is submitted, the
                                             Federal Regulations, which is published under           The Agency invited comments to guide                   proposed service territory maps will be
                                             50 titles pursuant to 44 U.S.C. 1510.
                                                                                                     its efforts in drafting the new                        posted online utilizing the RUS
                                             The Code of Federal Regulations is sold by              procedures implementing the 2014                       Mapping Tool and existing service
                                             the Superintendent of Documents. Prices of              Farm Bill and received comments from                   providers may respond to the public
                                             new books are listed in the first FEDERAL               the National Cable &                                   notice. If three or more existing
                                             REGISTER issue of each week.                            Telecommunications Association, WTA-                   providers are identified in the area and
                                                                                                     Advocates for Rural Broadband and Mr.                  they meet the minimum eligibility
                                                                                                     James Cook. These comments and the                     speeds, then that area is considered
                                             DEPARTMENT OF AGRICULTURE                               Agency’s responses are summarized as                   ineligible for funding. If no providers
                                                                                                     follows:                                               respond to the public notice, then the
                                             Rural Utilities Service                                                                                        Agency will have its field staff visit the
                                                                                                     Broadband Service and Broadband
                                                                                                                                                            proposed service area and locate all
                                             7 CFR Part 1738                                         Lending Speed Definitions
                                                                                                                                                            broadband providers in the area. The
                                             RIN 0572–AC06
                                                                                                       Comment: Respondents commented                       field staff will contact these providers
                                                                                                     that the definitions for Broadband                     and request that they respond to the
                                             Rural Broadband Access Loans and                        Service, which sets the eligibility                    public notice.
                                             Loan Guarantees                                         standard for an area, and Broadband
                                                                                                     Lending Speed, which sets the                          Area Eligibility
                                             AGENCY:  Rural Utilities Service, USDA.                 construction standard, are too low and                    Comment: One respondent suggested
                                             ACTION: Final rule; confirmation.                       should be raised to higher standards to                that instead of three incumbents making
                                                                                                     be more in line with the current Federal               a service area ineligible for funding, that
                                             SUMMARY:    The Rural Utilities Service                 Communications Commission (FCC)                        the requirement be changed to two
                                             (RUS), hereinafter referred to as the                   definition for broadband of 25 megabits                incumbents. The respondent also
                                             Agency, is confirming the interim final                 downstream and 3 megabits upstream.                    suggested that the definition of
                                             rule published in the Federal Register                    Response: As the respondents noted                   broadband service be raised to the
                                             on July 30, 2015, which amends its                      in their comments, the regulation                      current FCC definition for broadband of
                                             regulation for the Rural Broadband                      establishes a process to change these                  25 megabits downstream and three
                                             Access Loan and Loan Guarantee                          definitions by publishing new                          megabits upstream.
                                             Program (Broadband Loan Program).                       requirements when a NOSA/NOFA is                          Response: Although there is merit in
                                             DATES: Effective June 9, 2016.                          published opening up an application                    using a higher bandwidth definition to
                                             FOR FURTHER INFORMATION CONTACT:
                                                                                                     window. The Agency agrees that higher                  determine area eligibility, the
                                             Keith Adams, Assistant Administrator,                   definitions would be beneficial to rural               requirement that three incumbents in an
                                             Telecommunications Program, Rural                       residents. However, when these                         area make that area ineligible is a
                                             Utilities Program, U.S. Department of                   definitions are set, it is not only the                statutory requirement and cannot be
                                             Agriculture, 1400 Independence Avenue                   bandwidth requirement for rural areas                  changed. The regulation does allow for
                                             SW., STOP 1590, Room 5151–S,                            that is considered but also the amount                 the eligibility definition to be changed
                                             Washington, DC 20250–1590.                              of funding that is available for any given             and the Agency will consider higher
                                                                                                     application window. If a higher                        speeds whenever a NOSA/NOFA is
                                             Telephone number: (202) 720–9554,
                                                                                                     definition for bandwidth is used, more                 published. As stated previously, the
                                             Facsimile: (202) 720–0810.
                                                                                                     of the country then becomes eligible for               Agency must also recognize the amount
                                             SUPPLEMENTARY INFORMATION: Since the                    funding. When limited funding is                       of funding that is available each time an
                                             inception of the Broadband Loan                         available, the Agency has to ensure that               application window is opened and will
                                             Program, the Agency has faced, and                      those funds are directed to the most                   set the eligibility definition accordingly.
                                             continues to face, significant challenges               unserved rural areas. The Agency will
                                             in delivering the program due to the                                                                           Affordable Rates
                                                                                                     re-evaluate these requirements every
                                             following factors: (1) The significant                  time a NOSA/NOFA is published and                        Comment: One commenter reiterated
                                             number of applicants proposing to offer                 set the standards accordingly.                         that broadband service in rural areas
                                             broadband service that are start-ups                                                                           needs to be affordable.
                                             with limited resources; (2) the continual               Overbuilding                                             Response: Applicants must complete
                                             evolution of telecommunications                           Comment: Respondents commented                       a market survey and a competitive
                                             technology; and (3) the associated                      that the RUS investment should go into                 analysis of all providers in the proposed
                                             higher costs of serving rural                           unserved areas and that the Agency                     service area as part of the application.
                                             communities. With the enactment of the                                                                         This ensures that price points are set at
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                                                                                                     count all terrestrial providers in the
                                             Agricultural Act of 2014 (the 2014 Farm                 proposed service territory when                        the proper level for the area in question
                                             Bill), the Broadband Loan Program has                   determining area eligibility.                          and that the operation is sustainable.
                                             been significantly modified, and was                      Response: RUS agrees that unserved                   There is a balance between providing
                                             suspended while the Agency revised                      areas should be the target of the                      high quality broadband service and
                                             this regulation. Given that the program                 program. To ensure that all terrestrial                charging the appropriate rate. It must be
                                             was unable to operate during the                        broadband providers are counted in an                  recognized that in less dense population


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                                             37122               Federal Register / Vol. 81, No. 111 / Thursday, June 9, 2016 / Rules and Regulations

                                             areas, it may be necessary to charge a                    The Rural Utilities Service did not                  4233; or in person at the Docket
                                             higher rate to ensure the viability of the              receive any significant adverse                        Management Facility, U.S. Department
                                             operation.                                              comments during the public comment                     of Transportation, Docket Operations,
                                                                                                     period on the interim rule, and therefore              M–30, West Building Ground Floor,
                                             Affiliated Companies
                                                                                                     confirms the rule without change.                      Room W12–140, 1200 New Jersey
                                               Comment: One commenter proposed                                                                              Avenue SE., Washington, DC 20590.
                                             that affiliate or affiliated companies                  PART 1738—RURAL BROADBAND                                For service information identified in
                                             providing broadband service in the                      ACCESS LOANS AND LOAN                                  this AD, contact BLANIK LIMITED, 2nd
                                             same proposed funded service area                       GUARANTEES                                             Floor Beaux Lane House, Mercer Street
                                             should be recognized as one incumbent                                                                          Lower, Dublin 2, Republic of Ireland;
                                                                                                       Accordingly, the interim rule
                                             service provider when considering if an                                                                        phone: +420 733 662 194; email: info@
                                                                                                     amending 7 CFR part 1738 which was
                                             area is eligible for funding.                                                                                  blanik.aero; Internet: http://
                                               Response: Each company that is                        published at 80 FR 45397 on July 30,
                                                                                                     2015, is adopted as a final rule without               www.blanik.aero/
                                             providing broadband service in an area                                                                         %EF%BB%BFcustomer_support. You
                                             and meets the definition of an                          change.
                                                                                                                                                            may view this referenced service
                                             incumbent service provider will be                        Dated: May 26, 2016.                                 information at the FAA, Small Airplane
                                             counted as an incumbent service                         Brandon McBride,                                       Directorate, 901 Locust, Kansas City,
                                             provider in determining the eligibility of              Administrator, Rural Utilities Service.                Missouri 64106. For information on the
                                             an area. RUS cannot treat legally                       [FR Doc. 2016–13302 Filed 6–8–16; 8:45 am]             availability of this material at the FAA,
                                             established companies properly acting                   BILLING CODE P                                         call (816) 329–4148. It is also available
                                             as independent companies as the same                                                                           on the Internet at http://
                                             entity.                                                                                                        www.regulations.gov by searching for
                                             Broadband Usage Restrictions                            DEPARTMENT OF TRANSPORTATION                           Docket No. FAA–2016–4233.
                                                                                                                                                            FOR FURTHER INFORMATION CONTACT: Jim
                                                Comment: One commenter                               Federal Aviation Administration                        Rutherford, Aerospace Engineer, 901
                                             recommended that if a company has
                                                                                                                                                            Locust, Room 301, Kansas City,
                                             capped the amount of bandwidth that is                  14 CFR Part 39                                         Missouri 64106; telephone: (816) 329–
                                             allowed for a given period, that
                                                                                                     [Docket No. FAA–2016–4233; Directorate                 4165; fax: (816) 329–4090; email:
                                             additional standards should be
                                                                                                     Identifier 2016–CE–003–AD; Amendment                   jim.rutherford@faa.gov.
                                             established in determining if this
                                             provider would be counted as an                         39–18540; AD 2016–11–13]                               SUPPLEMENTARY INFORMATION:
                                             incumbent service provider when                         RIN 2120–AA64                                          Discussion
                                             determining service eligibility.
                                                Response: The Agency appreciates                     Airworthiness Directives; BLANIK                         We issued a notice of proposed
                                             this suggestion and will consider it                    LIMITED Gliders                                        rulemaking (NPRM) to amend 14 CFR
                                             during the next revision to the                                                                                part 39 by adding an AD that would
                                                                                                     AGENCY:  Federal Aviation                              apply to BLANIK LIMITED Models L–13
                                             regulation. The main goal of the                        Administration (FAA), Department of
                                             program is to provide funding to areas                                                                         Blanik and L–13 AC Blanik gliders. That
                                                                                                     Transportation (DOT).                                  NPRM was published in the Federal
                                             that do not have any broadband service.
                                             Most companies that cap bandwidth                       ACTION: Final rule.                                    Register on March 4, 2016 (81 FR
                                             have options where a consumer can buy                                                                          11473), and proposed to supersede AD
                                                                                                     SUMMARY:    We are superseding                         99–19–33, Amendment 39–11320 (64
                                             more bandwidth at an additional cost.                   airworthiness directive (AD) 99–19–33                  FR 50440; September 17, 1999) (‘‘AD
                                             Wireless Broadband Service                              for BLANIK LIMITED Models L–13                         99–19–33’’).
                                                                                                     Blanik and L–13 AC Blanik gliders (type                  The NPRM proposed to correct an
                                               Comment: One commenter                                certificate previously held by LET
                                             recommended that wireless solutions                                                                            unsafe condition for the specified
                                                                                                     Aeronautical Works). This AD results                   products and was based on mandatory
                                             for broadband service should be                         from mandatory continuing
                                             validated during busy hour/busy time                                                                           continuing airworthiness information
                                                                                                     airworthiness information (MCAI)                       (MCAI) originated by an aviation
                                             when determining if the wireless                        issued by an aviation authority of
                                             provider meets the definition for an                                                                           authority of another country. The MCAI
                                                                                                     another country to identify and correct                states that:
                                             incumbent service provide when                          an unsafe condition on an aviation
                                             determining area eligibility.                           product. The MCAI describes the unsafe
                                                                                                                                                              Colour marking of elevator drive is not
                                               Response: There are many levels of                                                                           inspected or re-painted during sailplane
                                                                                                     condition as lack of distinct color                    operation. The elevator drive is asymmetrical
                                             providing broadband service and a
                                                                                                     marking of the elevator drive. We are                  and improper installation causes significant
                                             number of ways for determining this.
                                                                                                     issuing this AD to require actions to                  elevator deflection changes.
                                             The Agency has elected to use
                                                                                                     address the unsafe condition on these
                                             advertised broadband rates that are                                                                            The MCAI can be found in the AD
                                                                                                     products.
                                             being sold and to validate that this level                                                                     docket on the Internet at: https://
                                             of service is being provided in an area.                DATES: This AD is effective July 14,                   www.regulations.gov/
                                             We will consider implementing                           2016.                                                  #!documentDetail;D=FAA-2016-4233-
                                             additional tests the next time the                         The Director of the Federal Register                0003.
                                             regulation is revised. If tests of this                 approved the incorporation by reference                   A review of records since issuance of
                                                                                                     of a certain other publication listed in               AD 99–19–33 revealed that the FAA
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                                             nature are implemented for wireless
                                             service providers then corresponding                    this AD as of November 8, 1999 (64 FR                  inadvertently did not address this MCAI
                                             tests will have to be implemented for                   50440, September 17, 1999).                            for the EVEKTOR, spol. s.r.o. Models L
                                             wireline service providers.                             ADDRESSES: You may examine the AD                      13 SEH VIVAT and L 13 SDM VIVAT
                                               The Agency appreciates the interest of                docket on the Internet at http://                      gliders and the BLANIK LIMITED
                                             the commenters and thanks them for                      www.regulations.gov by searching for                   Model L–13 AC Blanik gliders. This AD
                                             their comment submissions.                              and locating Docket No. FAA–2016–                      would supersede AD 99–19–13 to add


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Document Created: 2018-02-08 07:33:38
Document Modified: 2018-02-08 07:33:38
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule; confirmation.
DatesEffective June 9, 2016.
ContactKeith Adams, Assistant Administrator, Telecommunications Program, Rural Utilities Program, U.S. Department of Agriculture, 1400 Independence Avenue SW., STOP 1590, Room 5151-S, Washington, DC 20250-1590. Telephone number: (202) 720-9554, Facsimile: (202) 720-0810.
FR Citation81 FR 37121 
RIN Number0572-AC06

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