83_FR_64555 83 FR 64315 - Broadband Pilot Program

83 FR 64315 - Broadband Pilot Program

DEPARTMENT OF AGRICULTURE
Rural Utilities Service

Federal Register Volume 83, Issue 240 (December 14, 2018)

Page Range64315-64325
FR Document2018-27038

The Rural Utilities Service (RUS) announces its general policy and application procedures for funding under the broadband pilot program established pursuant to the Consolidated Appropriations Act, 2018 which provides loans, grants, and loan/grant combinations to facilitate broadband deployment in rural areas. In facilitating the expansion of broadband services and infrastructure, the pilot will fuel long-term rural economic development and opportunities in rural America. One of those opportunities is precision agriculture. The use of this technology requires a robust broadband connection. The awards made under this program will bring high speed broadband to the farms which will allow them to increase productivity. Please note that the application process is designed so that an applicant must demonstrate financial and technical feasibility of the project and the entire operation of the applicant. Applicants that do not demonstrate financial or technical feasibility will not be considered for an award.

Federal Register, Volume 83 Issue 240 (Friday, December 14, 2018)
[Federal Register Volume 83, Number 240 (Friday, December 14, 2018)]
[Notices]
[Pages 64315-64325]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-27038]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Broadband Pilot Program

AGENCY: Rural Utilities Service, Department of Agriculture.

ACTION: Funding Opportunity Announcement (FOA) and solicitation of 
applications.

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SUMMARY: The Rural Utilities Service (RUS) announces its general policy 
and application procedures for funding under the broadband pilot 
program established pursuant to the Consolidated Appropriations Act, 
2018 which provides loans, grants, and loan/grant combinations to 
facilitate broadband deployment in rural areas. In facilitating the 
expansion of broadband services and infrastructure, the pilot will fuel 
long-term rural economic development and opportunities in rural 
America. One of those opportunities is precision agriculture. The use 
of this technology requires a robust broadband connection. The awards 
made under this program will bring high speed broadband to the farms 
which will allow them to increase productivity.
    Please note that the application process is designed so that an 
applicant must demonstrate financial and technical feasibility of the 
project and the entire operation of the applicant. Applicants that do 
not demonstrate financial or technical feasibility will not be 
considered for an award.

DATES: The Agency will finalize the application window by notice in the 
Federal Register and Grants.gov on February 22, 2019. Please note there 
are three funding categories with each category having different 
application windows. Please refer to the specific funding category for 
the appropriate application deadline.

ADDRESSES: Application Submission: The application system for 
electronic submissions will be available at https://reconnect.usda.gov.
    Electronic submissions: Electronic submissions of applications will 
allow for the expeditious review of an Applicant's proposal. As a 
result, all Applicants must file their application electronically.

FOR FURTHER INFORMATION CONTACT: For general inquiries, contact Chad 
Parker, Assistant Administrator Telecommunications Program, Rural 
Utilities Service, U.S. Department of Agriculture (USDA), email: 
[email protected], telephone (202) 720-9554. You may obtain 
additional information regarding applications at https://reconnect.usda.gov.

SUPPLEMENTARY INFORMATION: 

    Authority: This solicitation is issued pursuant to the 
Consolidated Appropriations Act, 2018, Pub. L. 115-141, and the 
Rural Electrification Act of 1936, 7 U.S.C. 901 et seq.

Overview

    Federal Agency: Rural Utilities Service, USDA.
    Funding Opportunity Title: Rural eConnectivity Pilot Program 
(ReConnect Program).
    Announcement Type: Funding Opportunity Announcement (FOA) and 
solicitation of applications.
    Catalog of Federal Domestic Assistance (CFDA) Number: Rural 
eConnectivity Pilot Program (ReConnect Program)--10.752.

Items in Supplementary Information

I. Overview
II. Definitions
III. Substantially Underserved Trust Areas
IV. Funding Opportunity Description
V. Eligibility Information
VI. Application and Submission Information
VII. Application Evaluation Criteria
VIII. Notice of Proposed Funded Service Areas
IX. Evaluation and Processing Procedures
X. Award Administration Information
XI. Other Information

I. Overview

    On March 23, 2018, Congress passed the Consolidated Appropriations 
Act 2018 (the FY2018 Appropriations), which established a broadband 
loan and grant pilot program, the Rural eConnectivity Pilot Program 
(hereinafter the ReConnect Program). One of the essential goals of the 
ReConnect Program is to expand broadband service to rural areas without 
sufficient access to broadband, defined as 10 megabits per second 
(Mbps) downstream and 1 Mbps upstream. For this purpose, Congress 
provided RUS with $600 million and expanded its existing authority to 
make loans and grants. Additionally, the FY2018 Appropriations 
specifically authorized technical assistance to assist the Agency in 
expanding needed service to the most rural communities where 90 percent 
of the households are without sufficient access to broadband service.
    To promote broadband in rural America, RUS encourages state and 
local jurisdictions to waive any fees associated with granting rights-
of-ways and to assist applicants and awardees with satisfying any 
environmental requirements such as approval from the State Historical 
Preservation Office.

II. Definitions

    The terms and conditions provided in this FOA are applicable to and 
for purposes of this FOA only. Unless otherwise provided in the award 
documents, all financial terms not defined herein shall have the 
meaning as defined by Generally Accepted Accounting Principles.

[[Page 64316]]

    Administrator means the RUS Administrator, or the Administrator's 
designee.
    Applicant means an entity requesting funding under this FOA.
    Application means the Applicant's request for federal funding, 
which may be approved in whole or part by RUS.
    Award documents mean, as applicable, all associated grant 
agreements, loan agreements, or loan/grant agreements.
    Award means a grant, loan, or loan/grant combination made under 
this FOA.
    Awardee means a grantee, borrower, or borrower/grantee that has 
applied and been awarded federal assistance under this FOA.
    Broadband loan means, for purposes of this FOA, a loan that has 
been approved or is currently under review by RUS after the beginning 
of Fiscal Year 2000 in the Telecommunications Infrastructure Program, 
Farm Bill Broadband Program, or the Broadband Initiatives Program. 
Loans that were approved and then subsequently fully de-obligated are 
not included in this definition.
    Broadband service means any technology as having the capacity to 
transmit data to enable a subscriber to the service to originate and 
receive high-quality voice, data, graphics and video.
    Business means a commercial or mercantile activity engaged in as a 
means of livelihood. For purposes of this FOA, farms will not be 
counted as businesses for scoring purposes.
    CALEA means the Communications Assistance for Law Enforcement Act, 
47 U.S.C. 1001 et seq.
    Composite economic life means the weighted (by dollar amount of 
each class of facility) average economic life of all classes of 
facilities necessary to complete construction of the broadband 
facilities in the proposed funded service area.
    Critical community facilities means public facilities that provide 
community services essential for supporting the safety, health, and 
well-being of residents, including, but not limited to, emergency 
response and other public safety activities, hospitals and clinics, 
libraries and schools.
    Current ratio means the current assets divided by the current 
liabilities.
    Debt service coverage ratio (DSCR) means (Total Net Income or 
Margins + Interest Expense-Allowance for Funds Used during Construction 
+ Depreciation + Amortization)/(Interest on Funded Debt + Other 
Interest + Principal Payment on Debt and Capital Leases).
    Economic life means the estimated useful service life of an asset 
as determined by RUS.
    Eligible service area means any proposed funded service area where 
90 percent of the households to be served do not have sufficient access 
to broadband. For eligibility purposes, if an applicant is applying for 
multiple proposed funded service areas, each service area will be 
evaluated on a stand-alone basis.
    Equity means total assets minus total liabilities as reflected on 
the Applicant's balance sheet.
    Farm means any establishment from which $1,000 or more of 
agricultural products were sold or would normally be sold during the 
year.
    Forecast period means the five-year period of projections in an 
application, which shall be used by RUS to determine financial and 
technical feasibility of the application.
    GAAP means accounting principles generally accepted in the United 
States of America.
    Grant means any federal assistance in the form of a grant made 
under this FOA.
    Grant agreement means the grant contract and security agreement 
between RUS and the Awardee securing the Grant awarded under this FOA, 
including any amendments thereto, available for review at https://reconnect.usda.gov.
    Loan means any federal assistance in the form of a loan made under 
this FOA.
    Loan agreement means the loan contract and security agreement 
between RUS and the Awardee securing the Loan, including all amendments 
thereto, available for review at https://reconnect.usda.gov.
    Loan/grant means any federal assistance in the form of a loan/grant 
combination made under this FOA.
    Loan/grant agreement means the loan/grant contract and security 
agreement between RUS and the Awardee securing the Loan/grant, 
including all amendments thereto available at https://reconnect.usda.gov.
    Non-funded service area means any area in which the applicant 
offers service or intends to offer service during the forecast period 
but is not a part of its proposed funded service area.
    Pre-application expenses means any reasonable expenses, as 
determined by RUS, incurred after the release of this FOA to prepare an 
Application or to respond to RUS inquiries about the Application.
    Premises means households, farms and businesses.
    Project means all of the work to be performed to bring broadband 
service to all premises in the proposed funded service area under the 
Application, including construction, the purchase and installation of 
equipment, and professional services including engineering and 
accountant/consultant fees, whether funded by federal assistance, 
matching, or other funds.
    Proposed funded service area (PFSA) means the area (whether all or 
part of an existing or new service area) where the applicant is 
requesting funds to provide broadband service. Multiple service areas 
will be treated as separate stand-alone service areas for the purpose 
of determining how much of the proposed funded service area does not 
have sufficient access to broadband. Each service area must meet the 
minimum requirements for the appropriate funding category to be an 
eligible area.
    RE Act means the ``Rural Electrification Act of 1936,'' as amended 
(7 U.S.C. 901 et seq.).
    Rural area means any area which is not located within: (1) A city, 
town, or incorporated area that has a population of greater than 20,000 
inhabitants; or (2) an urbanized area contiguous and adjacent to a city 
or town that has a population of greater than 50,000 inhabitants.
    RUS Accounting Requirements shall mean compliance with U.S. GAAP, 
acceptable to RUS, the system of accounting prescribed by RUS Bulletin 
1770B-1, and the Uniform Administrative Requirements, Cost Principles, 
and Audit Requirements for Federal Awards, found at 2 CFR part 200. For 
all Awardees the term ``grant recipient'' in 2 CFR 200 shall also be 
read to encompass ``loan recipient'' and ``loan/grant recipient'', such 
that 2 CFR 200 shall be applicable to all Awardees under this FOA.
    Sufficient access to broadband means any rural area that has fixed, 
terrestrial broadband service delivering at least 10 Mbps downstream 
and 1 Mbps upstream. Mobile and satellite services will not be 
considered in making the determination that households in the proposed 
funded service area do not have sufficient access to broadband.
    Tangible equity means a measure of a company's capital, which is 
used by financial institutions to evaluate potential losses by 
eliminating intangible assets, goodwill and preferred stock from total 
equity.
    Tangible equity to total assets means tangible equity divided by 
total assets.
    Times interest earned ratio (TIER) means (Total Net Income or 
Margins + Total Interest Expense-Allowance for Funds Used during 
Construction) divided by (Total Interest

[[Page 64317]]

Expense-Allowance for Funds Used during Construction).

III. Substantially Underserved Trust Areas

    A. If the Administrator determines that a community within ``trust 
land'' (as defined in 38 U.S.C. 3765) has a high need for the benefits 
of the ReConnect Program, the Administrator may designate the community 
as a ``substantially underserved trust area'' (as defined in section 
306F of the RE Act).
    B. To receive consideration as a substantially underserved trust 
area, the applicant must submit to the Agency a completed application 
that includes all of the information requested in 7 CFR part 1700, 
subpart D. In addition, the application must identify the discretionary 
authorities within subpart D that it seeks to have applied to its 
application. Note, however, that given the prohibition on funding 
operating expenses in the ReConnect Program, requests for waiver of the 
equity requirements cannot be considered. In addition, due to the 
statutory requirements that established the ReConnect Program, waiver 
of the non-duplication requirements also cannot be considered.

IV. Funding Opportunity Descriptions

A. Funding Categories

1. 100 Percent Loan
    The interest rate for a 100 percent loan will be set at a fixed 2 
percent. The proposed funded service area for this category must be in 
an area where 90 percent of the households do not have sufficient 
access to broadband. Applicants must propose to build a network that is 
capable of providing service to every premise in the proposed funded 
service area at a speed of 25 Mbps downstream and 3 Mbps upstream. 
Tangible equity to total assets must be at least 20 percent at the end 
of the calendar year starting in the third year of the forecast period 
through the remainder of the forecast period.
    The Agency anticipates that applications will be accepted on a 
rolling basis ending June 28, 2019. In the event two loan applications 
are received for the same proposed funded service area the application 
to arrive first will be considered first. The agency reserves the right 
to make funding offers or seek consultations to resolve partially 
overlapping applications. RUS may contact the applicant for additional 
information during the review process. If additional information is 
requested, the applicant will have up to 30 calendar days to submit the 
information. If such information is not timely submitted, RUS may 
reject the application. Once all funds for this category have been 
expended for the ReConnect program, all remaining applications will be 
returned.
2. 50 Percent Loan/50 Percent Grant Combination
    The interest rate for the 50 percent loan component will be set at 
the Treasury rate for the remaining amortization period at the time of 
each advance of funds. The proposed funded service area for this 
category must be in an area where 90 percent of the households do not 
have sufficient access to broadband. Applicants must propose to build a 
network that is capable of providing service to every premises in the 
proposed funded service area at a speed of 25 Mbps downstream and 3 
Mbps upstream. Applicants may propose substituting cash for the loan 
component at the time of application.
    The Agency anticipates that applications will be accepted ending 
May 29, 2019. All eligible applications will be scored and, subject to 
Section V(C)(5)(b)(i) (overlapping applications) applications with the 
highest score will receive an award offer until all funds are expended 
for this category. RUS reserves the right to request additional 
information which would not affect scoring. If RUS requests additional 
information the applicant will have 30 calendar days to submit such 
information. If the information is not submitted, RUS may reject the 
application.
3. 100 Percent Grant
    The proposed funded service area for this category must be in an 
area where 100 percent of the households do not have sufficient access 
to broadband. Applicants must propose to build a network that is 
capable of providing service to every premise in the proposed funded 
service area at a speed of 25 Mbps downstream and 3 Mbps upstream. 
Applicants must provide a matching contribution equal to 25 percent of 
the cost of the overall project. The matching contribution can only be 
used for eligible purposes.
    The Agency anticipates that applications will be accepted ending 
April 29, 2019. All eligible applications will be scored, and subject 
to Section V(C)(5)(b)(i) (overlapping applications) applications with 
the highest score will receive an award offer until all funds are 
expended for this category. RUS reserves the right to request 
additional information which would not affect scoring. If RUS requests 
additional information the applicant will have 30 calendar days to 
submit such information. If the information is not submitted, RUS may 
reject the application.

B. Available Funds

1. General
    Approximately $560,000,000 in funding has been set aside for 
funding opportunities under this FOA.
2. Funding Limits
    Award amounts under this FOA will be limited as follows:
    a. 100 Percent Loan. Up to $200,000,000 is available for loans. The 
maximum amount that can be requested in an application is $50,000,000.
    b. 50 Percent Loan--50 Percent Grant. Up to $200,000,000 is 
available for loan/grant combinations. The maximum amount that can be 
requested in an application is $25,000,000 for the loan and $25,000,000 
for the grant. Loan and grant amounts will always be equal.
    c. 100 Percent Grant. Up to $200,000,000 is available for grants. 
The maximum amount that can be requested in an application is 
$25,000,000.
    d. Reserve. Additional budget authority is available for a reserve, 
which may be used for loans or grants under this FOA, or may be 
included in additional FOAs. The agency reserves the right to increase 
funding utilizing the application queue under this FOA should 
additional appropriations become available for the same purposes.
3. Repooling
    RUS retains the discretion to divert funds from one funding 
category to another.
4. Award Period
    Awards can be made until all funds have been expended in any given 
funding category. While the completion time will vary depending on the 
complexity of the project, award recipients must complete their 
projects within 5 years from the date funds are first made available.
5. Type of Funding Instrument
    The funding instruments will be grants, loans, and loan/grant 
combinations.

V. Eligibility Information

A. General

    Applicants must satisfy the following eligibility requirements to 
qualify for funding.

B. Eligible Entities

    The following entities are eligible to apply for assistance:

[[Page 64318]]

    1. States, local governments, or any agency, subdivision, 
instrumentality, or political subdivision thereof;
    2. A territory or possession of the United States;
    3. An Indian tribe (as defined in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b));
    4. Non-profit entities;
    5. For-profit corporations;
    6. Limited liability companies; and
    7. Cooperative or mutual organizations.

C. Application Eligibility Factors

    The following requirements must be met by all applications to be 
eligible for an award. Applications failing to comply with these 
requirements will be rejected.
1. Audited Financial Statement
    Applicants must submit unqualified, audited financial statements 
for the two previous years from the date the application is submitted. 
If an application is submitted in the first quarter of the calendar 
year and the most recent yearend audit has not been completed, the 
applicant can submit the two previous unqualified audits that have been 
completed. If qualified audits or audits containing a disclaimer or 
adverse opinion are submitted, the application will not be considered;
2. Fully Completed Application
    Applicants must submit a complete application and provide all 
supporting documentation required for the application.
3. Timely Buildout Completion
    A project is eligible only if the application demonstrates that the 
project can be completely built out within 5 years from the date funds 
are first made available.
4. Technical Feasibility
    Only projects that RUS determines to be technically feasible will 
be eligible for an award. Applicants will be required to submit a 
network design, network diagram, project costs and a buildout timeline, 
all certified by a professional engineer. The certification from the 
professional engineer must state that the proposed network can deliver 
broadband service at the required level of service to all premises in 
the proposed funded service area.
5. Service Areas
a. Eligible Service Areas
    i. Applicants must propose to provide broadband service directly to 
the premises in the proposed funded service area that do not have 
sufficient access to broadband.
    ii. If part or parts of the applicant's proposed funded service 
area are ineligible, RUS, in its sole discretion, may request that an 
applicant modify its application, if RUS believes the modification is 
feasible. Otherwise, RUS will reject the application.
b. Ineligible Service Areas
i. Overlapping Service Areas
    RUS will not fund more than one project that serves any one given 
geographic area. Invariably, however, applicants will propose service 
areas that overlap, varying from small de minimus areas of the 
territory, but which may be significant with respect to households 
involved, to larger areas of the service territory, but which may 
contain few households or businesses, if any. As a result, devising a 
procedure which will cover every overlap circumstance cannot be done. 
Nevertheless, it is the agency's intent to make as many eligible 
applications viable for consideration as possible. That may mean the 
agency may: (1) Determine the overlap to be so insignificant that no 
agency action is necessary; (2) request one or more applications to be 
revised to eliminate the overlapping territory; (3) choose one 
application over another given the amount of assistance requested, the 
number of awards already chosen in the area or State, or the need for 
the project in the specific area due to other factors; or (4) simply 
choose the project that scores higher or in the judgement of the agency 
is more financially feasible.
ii. Prior Funded Service Areas
    (A) RUS Broadband Loans. Service areas of borrowers that have RUS 
broadband loans, as defined in this FOA, are ineligible for all other 
applicants, and can be found at https://reconnect.usda.gov. However, 
RUS broadband borrowers that received funding to provide service in an 
area where the borrower is not currently providing sufficient access to 
broadband pursuant to this FOA would be eligible to apply for funding 
for these service areas if they have not defaulted on, and have 
materially complied with, in the sole discretion of RUS, their prior 
broadband loan requirements.
    (B) RUS Community Connect Grants. Service areas that received 
grants under the RUS Community Connect Grant Program are eligible if 
they do not have sufficient access to broadband, except for those 
grants still under construction. Service areas still under construction 
can be found at https://reconnect.usda.gov.
    (C) RUS BIP Grants. Service areas that received a 100 percent grant 
under the RUS Broadband Initiatives Program (BIP) are eligible if they 
do not have sufficient access to broadband. However, if the applicant 
is the same BIP grantee, then the applicant may only request a 100 
percent loan.
    (D) State-funded Areas. Areas that received State funding to deploy 
broadband at a speed of at least 10 Mbps downstream and 1 Mbps upstream 
are ineligible areas under this FOA. Applicants must provide a map of 
the proposed funded service area to the appropriate State government 
office and the State government office must certify that either funds 
have or have not been allotted for the area. Applicants must submit the 
map and the State certification as part of the application for funding. 
For applications that are proposing to provide service in multiple 
States, a map and certification will be required for each State. If the 
map(s) and certification(s) are not submitted, RUS may reject the 
application.
    (E) Connect America Fund Phase II Auction--Auction 903 (CAF II).
    Funding for service areas of CAF II recipients can only be 
requested by the entity that is receiving the CAF II support, and such 
funding is limited to a 100% loan. The CAF II service areas can be 
found at https://reconnect.usda.gov and may also be found on the FCC 
web page.
6. Fully Funded
    A project is eligible only if, all project costs can be fully 
funded or accounted for in the application. To demonstrate this, 
applications must include evidence of all funding, other than the RUS 
award, necessary to support the project, such as bank account 
statements, firm letters of commitment from equity participants, or 
outside loans, which must evidence the timely availability of funds. If 
outside loans are used, they may only be secured by assets other than 
those used for collateral under this FOA. Equity partners that are not 
specifically identified by name will not be considered in the financial 
analysis of the application.
7. Financial Feasibility and Sustainability
    Only projects that RUS determines to be financially feasible and 
sustainable will be eligible for an award under this FOA. A project is 
financially feasible when the applicant demonstrates to the 
satisfaction of RUS that it will be able to generate sufficient 
revenues to cover expenses; will have sufficient cash flow

[[Page 64319]]

to service all debts and obligations as they come due; will have a 
positive ending cash balance as reflected on the cash flow statement 
for each year of the forecast period; and, by the end of the forecast 
period, will meet at least two of the following requirements: A minimum 
TIER requirement of 1.2, a minimum DSCR requirement of 1.2, and a 
minimum current ratio of 1.2. In addition, applicants must demonstrate 
positive cash flow from operations at the end of the forecast period.
    If an applicant has no existing debt, is not proposing to borrow 
funds during the forecast period, and is applying only for grant funds, 
only the current ratio will be applied and not the TIER or DSCR. For 
this situation, applicants must meet the minimum current ratio 
requirement.
8. Service Requirements
    Facilities funded with grant funds must provide broadband service 
proposed in the application for the composite economic life of the 
facilities, as approved by RUS, or as provided in the Award Documents.
9. Application Transparency
    a. Pre-award Public Notice. To ensure transparency for the 
ReConnect Program, the Agency's mapping tool will include the following 
information from each application and be displayed for the public: (i) 
The identity of the applicant; (ii) the areas to be served; (iii) the 
type of funding requested; (iv) the status of the application; (v) the 
number of households without sufficient access to broadband; and (vi) a 
list of the census blocks to be served.
    b. Post-award Public Notice. For all approved applications, the 
agency will post on its website: The name of the company receiving 
funding, the type of funding received, the location of the proposed 
funded service area and the purposes of the funding.
    c. Post-award Reporting. Awardees will be required to submit semi-
annual reports for three years after the completion of construction on 
the following information:
    (i) The number and location of residences and businesses that will 
receive service at or greater than the requirement for the appropriate 
funding category.
    (ii) the types of facilities constructed and installed;
    (iii) the speed of the data services being delivered;
    (iv) the average price of the data services being delivered in each 
proposed service area; and
    (v) the broadband adoption rate for each proposed service 
territory, including the number of new subscribers generated from the 
facilities funded.
    This information will be used to analyze the effectiveness of the 
funding provided and will allow the Agency to track adoption rates as 
new and improved broadband services are being provided.

D. Eligible Cost Purposes

1. General
    Award and matching funds must be used only to pay for eligible 
costs incurred post award, except for approved pre-application 
expenses. Eligible costs must be consistent with the cost principles 
identified in 2 CFR 200, Subpart E, Cost Principles. In addition, costs 
must be reasonable, allocable, and necessary to the project. Any 
application that proposes to use any portion of the award or matching 
funds for any ineligible cost may be rejected.
2. Eligible and Ineligible Costs
a. Eligible Award Costs
    Award funds may be used to pay for the following costs:
    (i) To fund the construction or improvement of facilities, 
including buildings and land, required to provide broadband service, 
including facilities required for providing other services over the 
same facilities, such as equipment required to comply with CALEA;
    (ii) To fund reasonable pre-application expenses in an amount not 
to exceed five percent of the award. Pre-application expenses may be 
reimbursed only if they are incurred after the publication date of this 
FOA, and properly documented. Pre-application expenses must be included 
in the first request for award funds, and will be funded with either 
grant or loan funds. If the funding category applied for has a grant 
component, then grant funds will be used for this purpose;
    (iii) To fund the acquisition of an existing system that does not 
currently provide sufficient access to broadband for upgrading that 
system to meet the requirements of this FOA. The cost of the 
acquisition is limited to 40 percent of the amount requested. 
Acquisitions can only be considered in the 100 percent loan category; 
and
    (iv) To fund terrestrial-based facilities for satellite broadband 
service, provided the applicant clearly identifies the PFSA, 
demonstrates the ability to provide 25 Mbps downstream and 3 Mbps 
upstream simultaneously to every premise in the PFSA, and offers 
subscribers reasonable service plans that do not cap bandwidth usage.
(b) Ineligible Award Costs
    Award funds may not be used for any of the following purposes:
    (i) To fund operating expenses of the Awardee;
    (ii) To fund costs incurred prior to the date on which the 
application was submitted, and with respect to eligible pre-application 
expenses, those costs incurred prior to the date of the publication 
date of this FOA;
    (iii) To fund an acquisition of an affiliate, or the purchase or 
acquisition of any facilities or equipment of an affiliate. Note that 
if affiliated transactions are contemplated in the application, 
approval of the application does not constitute approval to enter into 
affiliated transactions, nor acceptance of the affiliated arrangements 
that conflict with the obligations under the award documents;
    (iv) To fund the acquisition of a system previously funded by RUS;
    (v) To fund the purchase or lease of any vehicle other than those 
used primarily in construction or system improvements;
    (vi) To fund broadband facilities leased under the terms of an 
operating lease or an indefeasible right of use (IRU) agreement;
    (vii) To fund the merger or consolidation of entities;
    (viii) To fund costs incurred in acquiring spectrum as part of an 
FCC auction or in a secondary market acquisition. Spectrum that is part 
of an acquisition may be considered for loan funding;
    (ix) To fund facilities that provide mobile services;
    (x) To fund the acquisition of a system that is providing 
sufficient access to broadband; nor
    (x) To refinance outstanding debt.

VI. Application and Submission Information

A. Online Application System

    All applications under this FOA must be submitted through the RUS 
Online Application System to be located through https://reconnect.usda.gov. Additional information can be found in the 
Application Guidelines found at the above location. This website will 
be updated regularly.

B. Registration

1. Dun and Bradstreet Universal Numbering System (DUNS) Number
    All applicants must register for a DUNS number as part of the 
application. The applicant can obtain

[[Page 64320]]

the DUNS number free of charge by calling Dun and Bradstreet. Go to 
http://fedgov.dnb.com/webform for more information on assignment of a 
DUNS number or confirmation.
2. System for Award Management (SAM)
    Prior to submitting an application, the applicant must also 
register in SAM at https://www.sam.gov/portal/SAM/#1 and supply a 
Commercial and Government Entity (CAGE) Code number as part of the 
application. SAM registration must be active with current data at all 
times, from the application review throughout the active Federal award 
funding period. To maintain active SAM registration, the applicant must 
review and update the information in the SAM database annually from the 
date of initial registration or from the date of the last update. The 
applicant must ensure that the information in the database is current, 
accurate, and complete.

C. Contents of the Application

1. Requirements for the Applications
    Given the varying expected closing dates for each funding type, and 
the inability of the agency to announce awards for a funding window 
while applicants have other applications in more than one funding type, 
applicants will be limited to ONE application for this FOA. A complete 
application will include the following information as requested in the 
RUS Online Application System:
    a. General information on the applicant and the project including:
    (i) A description of the project that will be made public 
consistent with the requirements herein and
    (ii) The estimated dollar amount of the funding request.
    b. An executive summary of the proposed project. This summary shall 
include, but not be limited to, a detailed description of existing 
operations, discussion about key management, description of the 
workforce, description of interactions between any parent, affiliated 
or subsidiary operation and a detailed description of the proposed 
project.
    c. A description of the proposed funded service area including the 
number of premises passed.
    d. Subscriber projections including the number of subscribers for 
broadband, video and voice services and any other service that may be 
offered; A description of the proposed service offerings, and the 
associated pricing plan that the applicant proposes to offer; and an 
explanation of how the proposed service offerings are affordable.
    e. A map, utilizing the RUS mapping tool located at https://reconnect.usda.gov of the proposed funded service areas identifying the 
areas without sufficient access to broadband and any non-funded service 
areas of the applicant.
    f. A description of the advertised prices of service offerings by 
competitors in the same area.
    g. A network design which includes a description of the proposed 
technology used to deliver the broadband service demonstrating that all 
premises in the proposed funded service area can be offered broadband 
service, a network diagram, a buildout timeline and milestones for 
implementation of the project, and a capital investment schedule 
showing that the system can be built within 5 years, all of which must 
be certified by a professional engineer who is certified in at least 
one of the states where there is project construction. The 
certification from the professional engineer must clearly state that 
the proposed network can deliver the broadband service to all premises 
in the proposed funded service area at the minimum required service 
level. In addition, if the applicant is requesting the points for 
providing a 100 Mbps upstream and 100 Mbps downstream, the 
certification must also state that the proposed system is capable of 
delivering this service to all premises; a list of all required 
licenses and regulatory approvals needed for the proposed project and 
how much the applicant will rely on contractors or vendors to deploy 
the network facilities. Note that in preparing budget costs for 
equipment and materials, RUS' Buy American requirements apply.
    h. Resumes of key management personnel, a description of the 
organization's readiness to manage a broadband services network, and an 
organizational chart showing all parent organizations and/or holding 
companies (including parents of parents, etc.), and all subsidiaries 
and affiliates.
    i. A legal opinion that: (1) Addresses the applicant's ability to 
enter into the award documents; (2) describes all material pending 
litigation matters; (3) addresses the applicant's ability to pledge 
security as required by the award documents and (4) addresses the 
applicant's ability to provide broadband service under state law.
    j. Summary and itemized budgets of the infrastructure costs of the 
proposed project, including if applicable, the ratio of loans to 
grants, and any other sources of outside funding.
    k. A detailed description of working capital requirements and the 
source of these funds.
    l. Historical financial statements for the last four years 
consisting of a balance sheet, income statement, and cash flow 
statement. If an entity has not been operating for four years, 
historical statements for the period of time the entity has been 
operating.
    m. Audited financial statements for the previous two calendar 
years. For governmental entities financial statements must be 
accompanied with certifications as to unrestricted cash that may be 
available on a yearly basis to the applicant. For startup operations 
formed from partnerships of existing utility providers, audited 
financial statements are required for the two previous years from each 
of the partners. In addition, the partners must guarantee any loan 
component of the requested funding.
    n. Pro Forma financial analysis, prepared in conformity with U.S. 
GAAP and the Agency's guidance on grant accounting found at https://www.rd.usda.gov/files/AccountingGuidance10.pdf. The Pro Forma should 
validate the sustainability of the project by including subscriber 
estimates related to all proposed service offerings; annual financial 
projections with balance sheets, income statements, and cash flow 
statements; supporting assumptions for a five-year forecast period and 
a depreciation schedule for existing facilities and those funded with 
federal assistance, matching, and other funds. This pro forma should 
indicate the committed sources of capital funding and include a bridge 
year prior to the start of the forecast period. This bridge year shall 
be used as a buffer between the historical financial information and 
the forecast period and is the year in which the application is 
submitted.
    o. All attachments required in the RUS Online application system;
    p. A scoring sheet, analyzing the scoring criteria set forth in 
this FOA;
    q. A list of all the applicant's outstanding and contingent 
obligations, including copies of existing notes, loan and security 
agreements, guarantees, any existing management or service agreements, 
and any other agreements with parents, subsidiaries and affiliates, 
including but not limited to debt instruments that use the applicant's 
assets, revenues or stock as collateral;
    r. All environmental information required to certify that the 
proposed construction meets the requirements of the National 
Environmental Policy Act of 1969, as amended (42 U.S.C. 4321 et seq.) 
(NEPA), the National Historic Preservation Act of 1966, as amended (16 
U.S.C. 470 et seq.) (NHPA), and the Endangered Species Act of 1973, as 
amended (16 U.S.C. 1534 et seq.) (ESA)

[[Page 64321]]

as applicable and any other information requested by the Agency. 
Information will be submitted in two parts. Applicants must submit all 
information that is requested in the Agency's on-line applications 
system as well as provide any information requested by the Agency after 
applications are submitted.
    s. Certification from the applicant that agreements with, or 
obligations to, investors do not breach the obligations to the 
government under the draft Award Documents, especially distribution 
requirements, and that any such agreements will be amended so that such 
obligations are made contingent to compliance with the Award Documents. 
Such certification should also specifically identify which, if any, 
provisions would need to be amended; and
    t. If service is being proposed on tribal land, a certification 
from the proper tribal official that they are in support of the project 
and will allow construction to take place on tribal land. The 
certification must: (1) Include a description of the land proposed for 
use as part of the proposed project; (2) identify whether the land is 
owned, held in Trust, land held in fee simple by the Tribe, or land 
under a long-term lease by the Tribe; (3) if owned, identify the land 
owner; and (4) provide a commitment in writing from the land owner 
authorizing the applicant's use of that land for the proposed project. 
If no certification is provided, then this area will be ineligible for 
funding.
    u. Any other information requested in the online application 
system.

D. Material Representations

    The application, including certifications, and all forms submitted 
as part of the application will be treated as material representations 
upon which RUS will rely in awarding grants and loans.

VII. Application Evaluation Criteria

A. Evaluation Criteria

    Applications in the same funding category will be scored and ranked 
against the following criteria, and not against each other. However, 
applications for 50/50 loan/grant combos and 100 percent grants that 
cover the same proposed service area will be evaluated as described in 
Section V(C)(5)(b)(i) above.
1. Rurality of Proposed Funded Service Area (25 Points)
    Points will be awarded for serving the least dense rural areas as 
measured by the population of the area per square mile. If multiple 
service areas are proposed, the density calculation will be made on the 
combined areas as if they were a single area, and not the average 
densities. For population densities of 6 or less, 25 points will be 
awarded.
2. Farms Served (20 Points)
    Applicants will receive 1 point for each farm that pre-subscribes 
for broadband service up to a maximum of 20 points. Applicants must 
have the head of the farm sign the pre-subscription form provided in 
the application system and submit them as part of their application.
3. Performance of the Offered Service (20 Points)
    For projects that are proposing to build a network that is capable 
of providing at least 100 Mbps symmetrical service to all premises, 20 
points will be awarded. The certification from the Professional 
Engineer must certify that the proposed system can deliver these speeds 
to every premises in the proposed funded service area.
4. Businesses (15 Points)
    Applicants will receive 1 point for each business that pre-
subscribes for broadband service up to a maximum of 15 points. 
Applicants must have the owner of the business sign the pre-
subscription form provided in the application system and submit them as 
part of their application.
5. Healthcare Centers (15 Points)
    For every healthcare center served 1 point will be awarded up to a 
maximum of 15 points. Healthcare centers will be counted using the GIS 
layer located in the RUS mapping tool at https://reconnect.usda.gov.
6. Educational Facilities (15 Points)
    For every school served 1 point will be awarded up to a maximum of 
15 points. Schools will be counted using the GIS layer provided in the 
RUS mapping tool located at https://reconnect.usda.gov.
7. Critical Community Facilities (15 Points)
    For every critical community facility served 1 point will be 
awarded up to a maximum of 15 points. Critical community facilities 
will be counted using the GIS layer located in the RUS mapping tool at 
https://reconnect.usda.gov.
8. Tribal Lands (5 Points)
    For applications where, at a minimum, 50 percent of the 
geographical area of the proposed funded service area(s) is to provide 
service on tribal lands, 5 points shall be awarded. Tribal lands will 
be analyzed using the GIS layer located at https://www.census.gov/geo/maps-data/data/cbf/cbf_aiannh.html. This layer is included in the RUS 
mapping tool.
9. State Broadband Activity (20 Points)
    For projects that are in a State that has a broadband plan that has 
been updated within five years of the date of publication of this FOA, 
10 points will be awarded. An additional 5 points will be awarded for 
projects located in states that do not restrict utilities from 
delivering broadband service, and 5 more points for projects located in 
states that expedite right-of-way and environmental requirements.
    Applicants will be required to submit evidence from the appropriate 
State official that a broadband plan has been implemented and updated, 
that there are no restrictions on utilities providing broadband 
service, and that procedures are in place for expediting right-of-way 
and environmental requirements. If service is proposed in multiple 
states, then evidence must be submitted from each state to get the 
appropriate points.

VIII. Notice of Proposed Funded Service Areas

A. The Agency Will Publish a Public Notice of Each Application

    The application must provide a summary of the information required 
for such public notice including the following:
    1. The identity of the applicant;
    2. A map of each proposed funded service area showing the rural 
area boundaries and the areas without sufficient access to broadband 
using the Agency's Mapping Tool;
    3. The amount and type of support requested;
    4. The status of the review of the application;
    5. The estimated number of households without sufficient access to 
broadband in each service area exclusive of satellite and mobile 
broadband service; and
    6. A description of all the types of services that the applicant 
proposes to offer in each service area.

B. Notification After the Application Has Been Received

    The Agency will publish the public notice on an Agency web page 
after the application has been submitted through the online application 
system and will remain on the web page for a period of 30 calendar 
days.

[[Page 64322]]

    The notice will ask existing service providers to submit to the 
Agency, within this notice period, the following information:
    1. The number of residential and business customers within the 
applicant's service area currently purchasing broadband service, 
defined as at a minimum speed of 10 Mbps downstream and 1 Mbps 
upstream, the rates of data transmission being offered, and the cost of 
each level of broadband service charged by the existing service 
provider;
    2. The number of residential and business customers within the 
applicant's service area receiving voice and video services and the 
associated rates for these other services; and
    3. A map showing where the existing service provider's services 
coincide with the applicant's service area using the Agency's Mapping 
Tool.

C. Agency Determination of Sufficient Access to Broadband in Proposed 
Funded Service Area

    The Agency will use the information submitted to determine if there 
is sufficient access to broadband in any part of the proposed funded 
service area. Notwithstanding non-responses by actual and potential 
providers, the Agency will use all information available in evaluating 
the feasibility of the project.

D. Treatment of Submitted Information

    The information submitted by an existing service provider will be 
treated as proprietary and confidential to the extent permitted under 
applicable law.

E. Notice of Application Is Approved

    If an application is approved, an additional notice will be 
published on the agency's website that will include the following 
information:
    1. The name of the entity receiving the financial assistance;
    2. The type of assistance being received;
    3. The purpose of the assistance and the location of the proposed 
funded service area; and
    4. The semiannual reports submitted under Section X(B)(6)e of this 
FOA.

IX. Evaluation and Processing Procedures

A. Review of Application

    Applications will be evaluated using the criteria stated in Section 
V.C of this FOA. Public comments received with respect to an 
application's proposed funded service area will be reviewed and 
evaluated. Eligibility of proposed funded service areas will be 
verified by the Agency.
    RUS also reserves the right to ask applicants for clarifying 
information and additional verification of assertions in the 
application. For those applications that RUS has selected for funding, 
RUS will send award documents.

B. Review of Awardee Operations

1. Entities That Receive Funding Under This FOA
    For all entities that receive funding under this FOA, RUS may send 
a team to the awardee's facilities to complete a Management Analysis 
Profile (MAP) of the entire operation. MAPs are used by RUS as a means 
of evaluating an Awardee's strengths and weaknesses and ensuring that 
awardees are prepared to fulfil the terms of the award. Once an 
applicant accepts an award offer, RUS may schedule a site visit as soon 
as possible.
2. Agency Right Not To Advance Funds
    RUS reserves the right not to advance funds until the MAP has been 
completed. If the MAP identifies issues that can affect the operation 
and completion of the project, those issues must be addressed to the 
satisfaction of RUS before funds can be advanced. Funding may be 
rescinded if following a MAP the agency determines that the awardee 
will be unable to meet the requirements of the award.

X. Award Administration Information

A. Award Notices

    Successful applicants will receive an offer letter and award 
documents from RUS following award notification. Applicants may view 
sample award documents at https://reconnect.usda.gov.

B. Administrative Requirements

1. Pre-Award Conditions
    No funds will be disbursed under this program until all other 
sources of funding have been obtained and any other pre-award 
conditions have been met. Failure to obtain one or more sources of 
funding committed to in the Application or to fulfill any other pre-
award condition within 90 days of award announcement may result in 
withdrawal of the award.
2. Failure To Comply With Award Requirements
    If an Awardee fails to comply with the terms of the award as 
specified in the award documents, RUS may exercise rights and remedies.
3. Advance Procedures
    RUS loan and grant advances are made at the request of the Awardee 
according to the procedures stipulated in the Award Documents. ALL 
MATCHING FUNDS OR CASH PROVIDED IN LIEU OF LOAN FUNDS MUST BE EXPENDED 
FIRST, FOLLOWED BY LOAN FUNDS, AND THEN BY GRANT FUNDS, EXCEPT FOR RUS 
APPROVED PRE-APPLICATION EXPENSES. Grant funds, if any, will be used 
for eligible pre-application expenses only on the first advance 
request. Accordingly, applications that do not account for such advance 
procedures in the Pro Forma five-year forecast may be rejected.
4. Construction
    a. All project assets must comply with 7 CFR part 1788, and 7 CFR 
part 1970 located at https://www.rd.usda.gov/publications/regulations-guidelines/regulations, the ReConnect Program Construction Procedures 
located at https://reconnect.usda.gov, any successor regulations found 
on the agency's website, and any other guidance from the Agency.
    b. The build-out of the project must be completed within five years 
from the date funds are made available. Build-out is considered 
complete when the network design has been fully implemented, the 
service operations and management systems infrastructure is 
operational, and the awardee is ready to support the activation and 
commissioning of individual customers to the new system.
5. Servicing
    a. Awardees must make payments on the loan as required in the note 
and Award Documents.
    b. Awardees must comply with all terms, conditions, affirmative 
covenants, and negative covenants contained in the Award Documents.
    c. In the event of default of the Award Documents:
    (i) A late charge may be charged on any payment not made in 
accordance with the terms of the loan.
    (ii) The Agency may exercise any and all remedies provided in the 
Award Documents.
6. Accounting, Monitoring, and Reporting Requirements
    a. Awardees must adopt a system of accounts for maintaining 
financial records acceptable to the Agency, as described in 7 CFR part 
1770, subpart B.
    b. Awardees must submit annual comparable audited financial 
statements along with a report on compliance and

[[Page 64323]]

on internal control over financial reporting, and management letter in 
accordance with the requirements of 7 CFR part 1773. The Certified 
Public Accountant (CPA) conducting the annual audit is selected by the 
borrower and must be satisfactory to RUS as set forth in 7 CFR 1773 
Subpart B--RUS Audit Requirements.
    c. Awardees must comply with all reasonable Agency requests to 
support ongoing monitoring efforts. The Awardee shall afford RUS, 
through its representatives, reasonable opportunity, at all times 
during business hours and upon prior notice, to have access to and the 
right to inspect: The Broadband System, any other property encumbered 
by the Award Documents, any and all books, records, accounts, invoices, 
contracts, leases, payrolls, timesheets, cancelled checks, statements, 
and other documents, electronic or paper of every kind belonging to or 
in the possession of the Awardee or in any way pertaining to its 
property or business, including its subsidiaries, if any, and to make 
copies or extracts therefore.
    d. Awardee records shall be retained and preserved in accordance 
with the provisions of 7 CFR part 1770, subpart A.
    e. Awardees must submit semiannual reports for 3 years after 
completion of the project, which must include the following:
    (1) The purpose of the financing, including new equipment and 
capacity enhancements that support high-speed broadband access for 
educational institutions, health care providers, and public safety 
service providers (including the estimated number of end users who are 
currently using or forecasted to use the new or upgraded 
infrastructure);
    (2) The progress towards fulfilling the objectives for which the 
assistance was granted, including:
    (i) The number of residences and businesses that will receive 
service equal to or greater than the speed required for the appropriate 
funding category;
    (ii) The types of facilities constructed and installed;
    (iii) The speed of the broadband services being delivered;
    (iv) The average price of the broadband services being delivered in 
each proposed service area;
    (v) The broadband adoption rate for each proposed service 
territory, including the number of new subscribers generated from the 
facilities funded; and
7. Assistance Instruments
    a. Terms and conditions of loans, grants, or loan/grant 
combinations are set forth in the non-negotiable standard loan, grant, 
or loan/grant agreements and the corresponding note, and/or mortgage, 
if applicable, which may be found at https://reconnect.usda.gov.
    b. Award Documents must be executed prior to any advance of funds.
    c. Sample Award Documents can be found at https://reconnect.usda.gov.
8. Loan and Loan/Grant Terms and Conditions
    Among others, the following terms shall apply to the loans:
    a. Interest Rate
    If an applicant is applying for a 100% loan, the interest rate 
shall be fixed at 2%. If an applicant is applying for a 50/50 loan/
grant combination, the loan shall bear interest at a rate equal to the 
cost of borrowing to the Department of Treasury for obligations, as 
determined by the government, of comparable maturity. The applicable 
interest rate will be set at the time of each advance.
    b. Repayment Period
    Unless the Applicant requests a shorter repayment period, loans 
must be repaid with interest within a period that, rounded to the 
nearest whole year, is equal to the expected Composite Economic Life of 
the project assets, as determined by RUS based upon acceptable 
depreciation rates, plus three years. Acceptable depreciation rates can 
be found in the ReConnect Program Constructions Procedures found at 
https://reconnect.usda.gov.
    c. Amortization Period
    Interest begins accruing on the date of each loan advance. All 
interest and principle payments will be deferred for a three-year 
period starting when funds are made available to be drawn by the 
Awardee. At the end of the three-year deferral period, accrued interest 
will be capitalized and added to the outstanding principal, and monthly 
payments will be established in an amount that amortizes the 
outstanding balance in equal payments over the remaining term of the 
loan.
    d. Build-out Period
    All proposed construction (including construction with matching and 
other funds) and all advance of funds must be completed no later than 
five years from the time funds are made available.
    e. Fidelity Bonding
    Applicants must agree to obtain a fidelity bond for 15 percent of 
the award amount. The fidelity bond must be obtained as a condition of 
award closing. RUS may reduce the percentage required if it determines 
that 15 percent is not commensurate with the risk involved.
    f. Loan Security. The loan portion of the award must be adequately 
secured, as determined by RUS.
    (i) For Corporations and LLC's, the loan and loan/grant 
combinations must be secured by all assets of the Awardee. RUS must be 
given an exclusive first lien, in form and substance satisfactory to 
RUS, on all assets of the Awardee, including all revenues. RUS may 
share its first lien position with one or more lenders on a pari passu 
basis, except with respect to grant funds, if security arrangements are 
acceptable to RUS. Applicants must submit a certification that their 
prior lender or lienholder on any Awardee assets has already agreed to 
sign the RUS' standard intercreditor agreement or co-mortgage found at 
https://reconnect.usda.gov. Note that RUS will not consider sharing 
assets with any related party or affiliate of the Awardee. Moreover, 
given that RUS cannot renegotiate these standard agreements, Awardees 
that are unable to obtain sign-off on the security arrangements may 
have their awards rescinded within 60 days of the date the Awardee is 
made aware of the approval of its application.
    (ii) For Tribal entities and municipalities, RUS will develop 
appropriate security arrangements.
    (iii) Unless otherwise approved by RUS in writing, all property and 
facilities purchased with award funds must be owned by the Awardee.
    g. Grant Security. The grant portion of the award must also be 
adequately secured, as determined by RUS.
    (i) The government must be provided an exclusive first lien on all 
grant assets during the service obligation of the grant, and thereafter 
any sale or disposition of grant assets must comply with the Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards, codified in 2 CFR part 200. Note that this part 
will apply to ALL grant funds of an Awardee, regardless of the entity 
status or type of organization.
    (ii) All Awardees must repay the grant if the project is sold or 
transferred without RUS approval during the service obligation of the 
grant.
9. Award Terms and Conditions
    a. Scope
    Awardees are required to comply with the requirements established 
herein. Any obligation that applies to the Awardee shall extend for the 
life of the award-funded facilities.
    b. Sale or Lease of Project Assets

[[Page 64324]]

    The sale or lease of any portion of the Awardee's facilities must 
be approved in writing by RUS.
    c. Certifications
    (i) The Applicant must certify that it is authorized to submit the 
application on behalf of the eligible entity(ies) listed in the 
Application; that the Applicant has examined the Application; that all 
information in the Application, including certifications and forms 
submitted, are, at the time furnished, true and correct in all material 
respects; that the entity requesting funding will comply with the 
terms, conditions, purposes, and federal requirements of the program; 
that no kickbacks were paid; and that a false, fictitious, or fradulent 
statement or claim on the Application is grounds for denial or 
termination of an award, and/or possible punishment by a fine or 
imprisonment as provided in 18 U.S.C. Sec.  1001 and civil violations 
of the False Claims Act (31 U.S.C. 3729 et seq.);
    (ii) The Applicant must certify that it will comply with all 
applicable federal, tribal, state, and local laws, rules, regulations, 
ordinances, codes, orders, and programmatic rules and requirements 
relating to the project, and acknowledges that failure to do so may 
result in rejection or de-obligation of the award, as well as civil or 
criminal prosecution, if applicable, by the appropriate law enforcement 
authorities.
10. Financial and Compliance Reporting Requirements
    Awardees must submit to RUS 30 calendar days after the end of each 
calendar year quarter, balance sheets, income statements, statements of 
cash flow, rate package summaries, and the number of customers taking 
broadband service on a per community basis utilizing RUS' on-line 
reporting system. These reports must be submitted throughout the loan 
amortization period or for the economic life of the facilities funded 
with a 100 percent grant.
    In addition, Awardees will be required to submit annually updated 
service area maps through the RUS mapping tool showing the areas where 
construction has been completed and premises are receiving service 
until the entire proposed funded service area can receive the broadband 
service.
    At the end of the project, Awardees must submit a service area map 
indicating that all construction has been completed as proposed in the 
application. If parts of the proposed funded service area have not been 
constructed, RUS may require a portion of the award to be rescinded or 
paid back.

XI. Other Information

A. Discretionary Awards

    The government is not obligated to make any award as a result of 
this announcement and will fund only projects that are deemed likely to 
achieve the program's goals and for which funds are available.

B. Environmental and National Historic Preservation Requirements

    Federal Agencies are required to analyze the potential 
environmental impacts, as required by the NEPA and the NHPA for 
Applicant projects or proposals seeking funding. All Applicants are 
required to complete an Environmental Questionnaire, provide a 
description of program activities and to submit all other required 
environmental documentation as requested in the application system or 
by the Agency after the application is submitted.
    It is the Applicant's responsibility to obtain all necessary 
federal, tribal, state, and local governmental permits and approvals 
necessary for the proposed work to be conducted. Applicants are 
expected to design their projects so that they minimize the potential 
for adverse impacts to the environment. Applicants also will be 
required to cooperate with the granting agencies in identifying 
feasible measures to reduce or avoid any identified adverse 
environmental impacts of their proposed projects. The failure to do so 
may be grounds for not making an award.
    Applications will be reviewed to ensure that they contain 
sufficient information to allow Agency staff to conduct a NEPA analysis 
so that appropriate NEPA documentation can be submitted to the 
appropriate federal and state agencies, along with the recommendation 
that the proposal is in compliance with applicable environmental and 
historic preservations laws. Applicants proposing activities that 
cannot be covered by existing environmental compliance procedures will 
be informed after the technical review stage whether NEPA compliance 
and other environmental requirements can otherwise be expeditiously met 
so that a project can proceed within the timeframes anticipated under 
the ReConnect Program.
    If additional information is required after an application is 
accepted for funding, funds can be withheld by the agency under a 
special award condition requiring the Awardee to submit additional 
environmental compliance information sufficient for the Agency to 
assess any impacts that a project may have on the environment.

C. De-Obligation

    The RUS reserves the right to de-obligate awards to Awardees under 
this FOA that demonstrate an insufficient level of performance, 
wasteful or fraudulent spending, or noncompliance with environmental 
and historic preservation requirements.

D. Confidentiality of Applicant Information

    Applicants are encouraged to identify and label any confidential 
and proprietary information contained in their applications. The Agency 
will protect confidential and proprietary information from public 
disclosure to the fullest extent authorized by applicable law, 
including the Freedom of Information Act, as amended (5 U.S.C. 552), 
the Trade Secrets Act, as amended (18 U.S.C. 1905), the Economic 
Espionage Act of 1996 (18 U.S.C. 1831 et seq.), and CALEA (47 U.S.C. 
1001 et seq.). Applicants should be aware, however, that the 
Consolidated Appropriations Act requires substantial transparency. For 
example, RUS is required to make publicly available on the internet a 
list of each entity that has applied for a loan or grant, a description 
of each application, the status of each application, the name of each 
entity receiving funds, and the purpose for which the entity is 
receiving the funds.

E. Compliance With Applicable Laws

    Any recipient of funds under this FOA shall be required to comply 
with all applicable federal, tribal and state laws, including but not 
limited to:
    1. The nondiscrimination and equal employment opportunity 
requirements of Title VI of the Civil Rights Act of 1964, as amended 
(42 U.S.C. 2000e et seq., 7 CFR pt. 15);
    2. Section 504 of the Rehabilitation Act (29 U.S.C. 794 et seq.; 7 
CFR pt. 15b);
    3. The Age Discrimination Act of 1975, as amended (42 U.S.C. 6101 
et seq.; 45 CFR pt. 90);
    4. Executive Order 11375, amending Executive Order 11246, Relating 
to Equal Employment Opportunity (3 CFR pt. 102). See 7 CFR pts. 15 and 
15b and 45 CFR pt. 90, RUS Bulletin 1790-1 (``Nondiscrimination among 
Beneficiaries of RUS Programs''), and RUS Bulletin 20-15:320-15 
(``Equal Employment Opportunity in Construction Financed with RUS 
Loans'');
    5. The Architectural Barriers Act of 1968, as amended (42 U.S.C. 
4151 et seq.);

[[Page 64325]]

    6. The Uniform Federal Accessibility Standards (UFAS) (Appendix A 
to 41 CFR subpart 101-19.6); and
    7. The Council on Environmental Quality Regulations for 
Implementing the Procedural Provisions of NEPA and certain related 
federal environmental laws, statutes, regulations, and Executive Orders 
found in 7 CFR 1970.
    A more complete list of such requirements can be found in the 
applicable Award Documents.

F. Communications Laws

    Awardees will be required to comply with all applicable federal, 
tribal and state communications laws and regulations, including, for 
example, the Communications Act of 1934, as amended, (47 U.S.C. 151 et 
seq.) the Telecommunications Act of 1996, as amended (Pub. L. 104-104, 
110 Stat. 56 (1996), and CALEA. For further information, see http://www.fcc.gov.

G. Executive Order 13132

    It has been determined that this notice does not contain policies 
with federalism implications as that term is defined in Executive Order 
13132.

H. Authorized Signatories

    Only authorized grant and loan officers can bind the Government to 
the expenditure of funds.

I. Paperwork Reduction Act and Recordkeeping Requirements

    Copies of all forms, regulations, and instructions referenced in 
this FOA may be obtained from RUS. Data furnished by the Applicants 
will be used to determine eligibility for program benefits. Furnishing 
the data is voluntary; however, the failure to provide data could 
result in program benefits being withheld or denied.
    The Information Collection and Recordkeeping requirements contained 
in this FOA have been approved by an emergency clearance under OMB 
Control Number 0572-0152. In accordance with the Paperwork Reduction 
Act of 1995 (44 U.S.C. chapter 35), RUS invites comments on this 
information collection for which the Agency intends to request approval 
from the Office of Management and Budget (OMB).
    Comments on this notice must be received by February 12, 2019. 
Comments are invited on (a) whether the collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility; (b) the 
accuracy of the agency's estimate of burden including the validity of 
the methodology and assumption used; (c) ways to enhance the quality, 
utility and clarity of the information to be collected; and (d) ways to 
minimize the burden of the collection of information on those who are 
to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    Comments may be sent to Michele Brooks, Team Lead, Rural 
Development Innovation Center--Regulations Management Team, U.S. 
Department of Agriculture, 1400 Independence Ave. SW, Stop 1522, Room 
5162 South Building, Washington, DC 20250-1522.
    Title: Rural eConnectivity Pilot Program (ReConnect Program).
    Type of Request: New collection.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 6.77 hours per response.
    Respondents: Businesses and other for-profits.
    Estimated Number of Respondents: 2000.
    Estimated Number of Responses per Respondent: 34.96.
    Estimated Total Annual Burden and Record Keeping Hours on 
Respondents: 477,820 hours.
    Copies of this information collection can be obtained from MaryPat 
Daskal, Rural Development Innovation Center--Regulations Management 
Team, at (202) 720-7853 or email: [email protected].
    All responses to this information collection and recordkeeping 
notice will be summarized and included in the request for OMB approval. 
All comments will also become a matter of public record.

    Dated: December 6, 2018.
Christopher A. McLean,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2018-27038 Filed 12-13-18; 4:15 pm]
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                                                                          Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices                                            64315

                                                 • Phytosanitary treatment (cold                      ACTION: Funding Opportunity                           Overview
                                              treatment or irradiation),                              Announcement (FOA) and solicitation                     Federal Agency: Rural Utilities
                                                 • Pre-export inspection by the NPPO                  of applications.                                      Service, USDA.
                                              and issuance of a phytosanitary                                                                                 Funding Opportunity Title: Rural
                                              certificate with an additional                          SUMMARY:    The Rural Utilities Service
                                                                                                      (RUS) announces its general policy and                eConnectivity Pilot Program (ReConnect
                                              declaration, and                                                                                              Program).
                                                 • Port of entry inspections.                         application procedures for funding
                                                                                                                                                              Announcement Type: Funding
                                                 Each of the pest risk mitigation                     under the broadband pilot program
                                                                                                                                                            Opportunity Announcement (FOA) and
                                              measures that would be required, along                  established pursuant to the
                                                                                                                                                            solicitation of applications.
                                              with evidence of their efficacy in                      Consolidated Appropriations Act, 2018                   Catalog of Federal Domestic
                                              removing pests of concern from the                      which provides loans, grants, and loan/               Assistance (CFDA) Number: Rural
                                              pathway, are described in detail in the                 grant combinations to facilitate                      eConnectivity Pilot Program (ReConnect
                                              RMD.                                                    broadband deployment in rural areas. In               Program)—10.752.
                                                 Therefore, in accordance with                        facilitating the expansion of broadband
                                              § 319.56–4(c)(3), we are announcing the                 services and infrastructure, the pilot                Items in Supplementary Information
                                              availability of our PRA and RMD for                     will fuel long-term rural economic                    I. Overview
                                              public review and comment. Those                        development and opportunities in rural                II. Definitions
                                              documents, as well as a description of                  America. One of those opportunities is                III. Substantially Underserved Trust Areas
                                              the economic considerations associated                  precision agriculture. The use of this                IV. Funding Opportunity Description
                                              with the importation of fresh guava fruit               technology requires a robust broadband                V. Eligibility Information
                                              from Taiwan and a treatment evaluation                  connection. The awards made under                     VI. Application and Submission Information
                                                                                                                                                            VII. Application Evaluation Criteria
                                              document that supports the addition of                  this program will bring high speed
                                                                                                                                                            VIII. Notice of Proposed Funded Service
                                              new cold treatment schedules for                        broadband to the farms which will                           Areas
                                              Bactrocera spp. fruit flies in guava from               allow them to increase productivity.                  IX. Evaluation and Processing Procedures
                                              Taiwan, may be viewed on the                               Please note that the application                   X. Award Administration Information
                                              Regulations.gov website or in our                       process is designed so that an applicant              XI. Other Information
                                              reading room (see ADDRESSES above for                   must demonstrate financial and
                                                                                                      technical feasibility of the project and              I. Overview
                                              a link to Regulations.gov and
                                              information on the location and hours of                the entire operation of the applicant.                   On March 23, 2018, Congress passed
                                              the reading room). You may request                      Applicants that do not demonstrate                    the Consolidated Appropriations Act
                                              paper copies of these documents by                      financial or technical feasibility will not           2018 (the FY2018 Appropriations),
                                              calling or writing to the person listed                 be considered for an award.                           which established a broadband loan and
                                              under FOR FURTHER INFORMATION                           DATES: The Agency will finalize the                   grant pilot program, the Rural
                                              CONTACT. Please refer to the subject of                 application window by notice in the                   eConnectivity Pilot Program (hereinafter
                                              the analysis you wish to review when                    Federal Register and Grants.gov on                    the ReConnect Program). One of the
                                              requesting copies.                                      February 22, 2019. Please note there are              essential goals of the ReConnect
                                                 After reviewing any comments we                      three funding categories with each                    Program is to expand broadband service
                                              receive, we will announce our decision                  category having different application                 to rural areas without sufficient access
                                              regarding the import status of fresh                    windows. Please refer to the specific                 to broadband, defined as 10 megabits
                                              guava fruit from Taiwan in a subsequent                 funding category for the appropriate                  per second (Mbps) downstream and 1
                                              notice. If the overall conclusions of our               application deadline.                                 Mbps upstream. For this purpose,
                                              analysis and the Administrator’s                        ADDRESSES: Application Submission:                    Congress provided RUS with $600
                                              determination of risk remain unchanged                  The application system for electronic                 million and expanded its existing
                                              following our consideration of the                      submissions will be available at https://             authority to make loans and grants.
                                              comments, then we will authorize the                    reconnect.usda.gov.                                   Additionally, the FY2018
                                              importation of fresh guava fruit from                      Electronic submissions: Electronic                 Appropriations specifically authorized
                                              Taiwan into the continental United                      submissions of applications will allow                technical assistance to assist the Agency
                                              States subject to the requirements                      for the expeditious review of an                      in expanding needed service to the most
                                              specified in the RMD.                                   Applicant’s proposal. As a result, all                rural communities where 90 percent of
                                                                                                      Applicants must file their application                the households are without sufficient
                                                Authority: 7 U.S.C. 1633, 7701–7772, and
                                              7781–7786; 21 U.S.C. 136 and 136a; 7 CFR                electronically.                                       access to broadband service.
                                              2.22, 2.80, and 371.3.                                                                                           To promote broadband in rural
                                                                                                      FOR FURTHER INFORMATION CONTACT: For                  America, RUS encourages state and
                                                Done in Washington, DC, this 10th day of              general inquiries, contact Chad Parker,               local jurisdictions to waive any fees
                                              December 2018.                                          Assistant Administrator                               associated with granting rights-of-ways
                                              Kevin Shea,                                             Telecommunications Program, Rural                     and to assist applicants and awardees
                                              Administrator, Animal and Plant Health                  Utilities Service, U.S. Department of                 with satisfying any environmental
                                              Inspection Service.                                     Agriculture (USDA), email:                            requirements such as approval from the
                                              [FR Doc. 2018–27053 Filed 12–13–18; 8:45 am]            chad.parker@wdc.usda.gov, telephone                   State Historical Preservation Office.
                                              BILLING CODE 3410–34–P                                  (202) 720–9554. You may obtain
                                                                                                      additional information regarding                      II. Definitions
                                                                                                      applications at https://                                 The terms and conditions provided in
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                                              DEPARTMENT OF AGRICULTURE                               reconnect.usda.gov.                                   this FOA are applicable to and for
                                                                                                      SUPPLEMENTARY INFORMATION:                            purposes of this FOA only. Unless
                                              Rural Utilities Service                                                                                       otherwise provided in the award
                                                                                                        Authority: This solicitation is issued
                                                                                                      pursuant to the Consolidated Appropriations           documents, all financial terms not
                                              Broadband Pilot Program
                                                                                                      Act, 2018, Pub. L. 115–141, and the Rural             defined herein shall have the meaning
                                              AGENCY:Rural Utilities Service,                         Electrification Act of 1936, 7 U.S.C. 901 et          as defined by Generally Accepted
                                              Department of Agriculture.                              seq.                                                  Accounting Principles.


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                                              64316                       Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices

                                                 Administrator means the RUS                             Economic life means the estimated                  all premises in the proposed funded
                                              Administrator, or the Administrator’s                   useful service life of an asset as                    service area under the Application,
                                              designee.                                               determined by RUS.                                    including construction, the purchase
                                                 Applicant means an entity requesting                    Eligible service area means any                    and installation of equipment, and
                                              funding under this FOA.                                 proposed funded service area where 90                 professional services including
                                                 Application means the Applicant’s                    percent of the households to be served                engineering and accountant/consultant
                                              request for federal funding, which may                  do not have sufficient access to                      fees, whether funded by federal
                                              be approved in whole or part by RUS.                    broadband. For eligibility purposes, if               assistance, matching, or other funds.
                                                 Award documents mean, as                             an applicant is applying for multiple                    Proposed funded service area (PFSA)
                                              applicable, all associated grant                        proposed funded service areas, each                   means the area (whether all or part of an
                                              agreements, loan agreements, or loan/                   service area will be evaluated on a                   existing or new service area) where the
                                              grant agreements.                                       stand-alone basis.                                    applicant is requesting funds to provide
                                                 Award means a grant, loan, or loan/                     Equity means total assets minus total              broadband service. Multiple service
                                              grant combination made under this                       liabilities as reflected on the Applicant’s           areas will be treated as separate stand-
                                              FOA.                                                    balance sheet.                                        alone service areas for the purpose of
                                                 Awardee means a grantee, borrower,                      Farm means any establishment from                  determining how much of the proposed
                                              or borrower/grantee that has applied                    which $1,000 or more of agricultural                  funded service area does not have
                                              and been awarded federal assistance                     products were sold or would normally                  sufficient access to broadband. Each
                                              under this FOA.                                         be sold during the year.                              service area must meet the minimum
                                                 Broadband loan means, for purposes                      Forecast period means the five-year                requirements for the appropriate
                                              of this FOA, a loan that has been                       period of projections in an application,              funding category to be an eligible area.
                                              approved or is currently under review                   which shall be used by RUS to                            RE Act means the ‘‘Rural
                                              by RUS after the beginning of Fiscal                    determine financial and technical                     Electrification Act of 1936,’’ as amended
                                              Year 2000 in the Telecommunications                     feasibility of the application.                       (7 U.S.C. 901 et seq.).
                                              Infrastructure Program, Farm Bill                          GAAP means accounting principles                      Rural area means any area which is
                                              Broadband Program, or the Broadband                     generally accepted in the United States               not located within: (1) A city, town, or
                                              Initiatives Program. Loans that were                    of America.                                           incorporated area that has a population
                                                                                                         Grant means any federal assistance in              of greater than 20,000 inhabitants; or (2)
                                              approved and then subsequently fully
                                                                                                      the form of a grant made under this                   an urbanized area contiguous and
                                              de-obligated are not included in this
                                                                                                      FOA.                                                  adjacent to a city or town that has a
                                              definition.
                                                                                                         Grant agreement means the grant
                                                 Broadband service means any                                                                                population of greater than 50,000
                                                                                                      contract and security agreement
                                              technology as having the capacity to                                                                          inhabitants.
                                                                                                      between RUS and the Awardee securing
                                              transmit data to enable a subscriber to                                                                          RUS Accounting Requirements shall
                                                                                                      the Grant awarded under this FOA,
                                              the service to originate and receive high-                                                                    mean compliance with U.S. GAAP,
                                                                                                      including any amendments thereto,
                                              quality voice, data, graphics and video.                                                                      acceptable to RUS, the system of
                                                                                                      available for review at https://
                                                 Business means a commercial or                                                                             accounting prescribed by RUS Bulletin
                                                                                                      reconnect.usda.gov.
                                              mercantile activity engaged in as a                        Loan means any federal assistance in               1770B–1, and the Uniform
                                              means of livelihood. For purposes of                    the form of a loan made under this FOA.               Administrative Requirements, Cost
                                              this FOA, farms will not be counted as                     Loan agreement means the loan                      Principles, and Audit Requirements for
                                              businesses for scoring purposes.                        contract and security agreement                       Federal Awards, found at 2 CFR part
                                                 CALEA means the Communications                       between RUS and the Awardee securing                  200. For all Awardees the term ‘‘grant
                                              Assistance for Law Enforcement Act, 47                  the Loan, including all amendments                    recipient’’ in 2 CFR 200 shall also be
                                              U.S.C. 1001 et seq.                                     thereto, available for review at https://             read to encompass ‘‘loan recipient’’ and
                                                 Composite economic life means the                    reconnect.usda.gov.                                   ‘‘loan/grant recipient’’, such that 2 CFR
                                              weighted (by dollar amount of each                         Loan/grant means any federal                       200 shall be applicable to all Awardees
                                              class of facility) average economic life of             assistance in the form of a loan/grant                under this FOA.
                                              all classes of facilities necessary to                  combination made under this FOA.                         Sufficient access to broadband means
                                              complete construction of the broadband                     Loan/grant agreement means the                     any rural area that has fixed, terrestrial
                                              facilities in the proposed funded service               loan/grant contract and security                      broadband service delivering at least 10
                                              area.                                                   agreement between RUS and the                         Mbps downstream and 1 Mbps
                                                 Critical community facilities means                  Awardee securing the Loan/grant,                      upstream. Mobile and satellite services
                                              public facilities that provide community                including all amendments thereto                      will not be considered in making the
                                              services essential for supporting the                   available at https://reconnect.usda.gov.              determination that households in the
                                              safety, health, and well-being of                          Non-funded service area means any                  proposed funded service area do not
                                              residents, including, but not limited to,               area in which the applicant offers                    have sufficient access to broadband.
                                              emergency response and other public                     service or intends to offer service during               Tangible equity means a measure of a
                                              safety activities, hospitals and clinics,               the forecast period but is not a part of              company’s capital, which is used by
                                              libraries and schools.                                  its proposed funded service area.                     financial institutions to evaluate
                                                 Current ratio means the current assets                  Pre-application expenses means any                 potential losses by eliminating
                                              divided by the current liabilities.                     reasonable expenses, as determined by                 intangible assets, goodwill and preferred
                                                 Debt service coverage ratio (DSCR)                   RUS, incurred after the release of this               stock from total equity.
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                                              means (Total Net Income or Margins +                    FOA to prepare an Application or to                      Tangible equity to total assets means
                                              Interest Expense¥Allowance for Funds                    respond to RUS inquiries about the                    tangible equity divided by total assets.
                                              Used during Construction +                              Application.                                             Times interest earned ratio (TIER)
                                              Depreciation + Amortization)/(Interest                     Premises means households, farms                   means (Total Net Income or Margins +
                                              on Funded Debt + Other Interest +                       and businesses.                                       Total Interest Expense¥Allowance for
                                              Principal Payment on Debt and Capital                      Project means all of the work to be                Funds Used during Construction)
                                              Leases).                                                performed to bring broadband service to               divided by (Total Interest


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                                                                          Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices                                           64317

                                              Expense¥Allowance for Funds Used                        If such information is not timely                     calendar days to submit such
                                              during Construction).                                   submitted, RUS may reject the                         information. If the information is not
                                                                                                      application. Once all funds for this                  submitted, RUS may reject the
                                              III. Substantially Underserved Trust
                                                                                                      category have been expended for the                   application.
                                              Areas
                                                                                                      ReConnect program, all remaining
                                                 A. If the Administrator determines                                                                         B. Available Funds
                                                                                                      applications will be returned.
                                              that a community within ‘‘trust land’’                                                                        1. General
                                              (as defined in 38 U.S.C. 3765) has a high               2. 50 Percent Loan/50 Percent Grant
                                              need for the benefits of the ReConnect                  Combination                                             Approximately $560,000,000 in
                                              Program, the Administrator may                             The interest rate for the 50 percent               funding has been set aside for funding
                                              designate the community as a                            loan component will be set at the                     opportunities under this FOA.
                                              ‘‘substantially underserved trust area’’                Treasury rate for the remaining                       2. Funding Limits
                                              (as defined in section 306F of the RE                   amortization period at the time of each
                                              Act).                                                   advance of funds. The proposed funded                   Award amounts under this FOA will
                                                 B. To receive consideration as a                     service area for this category must be in             be limited as follows:
                                              substantially underserved trust area, the               an area where 90 percent of the                         a. 100 Percent Loan. Up to
                                              applicant must submit to the Agency a                   households do not have sufficient                     $200,000,000 is available for loans. The
                                              completed application that includes all                 access to broadband. Applicants must                  maximum amount that can be requested
                                              of the information requested in 7 CFR                   propose to build a network that is                    in an application is $50,000,000.
                                              part 1700, subpart D. In addition, the                  capable of providing service to every                   b. 50 Percent Loan—50 Percent Grant.
                                              application must identify the                           premises in the proposed funded service               Up to $200,000,000 is available for loan/
                                              discretionary authorities within subpart                area at a speed of 25 Mbps downstream                 grant combinations. The maximum
                                              D that it seeks to have applied to its                  and 3 Mbps upstream. Applicants may                   amount that can be requested in an
                                              application. Note, however, that given                  propose substituting cash for the loan                application is $25,000,000 for the loan
                                              the prohibition on funding operating                    component at the time of application.                 and $25,000,000 for the grant. Loan and
                                              expenses in the ReConnect Program,                         The Agency anticipates that                        grant amounts will always be equal.
                                              requests for waiver of the equity                       applications will be accepted ending                    c. 100 Percent Grant. Up to
                                              requirements cannot be considered. In                   May 29, 2019. All eligible applications               $200,000,000 is available for grants. The
                                              addition, due to the statutory                          will be scored and, subject to Section                maximum amount that can be requested
                                              requirements that established the                       V(C)(5)(b)(i) (overlapping applications)              in an application is $25,000,000.
                                              ReConnect Program, waiver of the non-                   applications with the highest score will                d. Reserve. Additional budget
                                              duplication requirements also cannot be                 receive an award offer until all funds are            authority is available for a reserve,
                                              considered.                                             expended for this category. RUS                       which may be used for loans or grants
                                                                                                      reserves the right to request additional              under this FOA, or may be included in
                                              IV. Funding Opportunity Descriptions                                                                          additional FOAs. The agency reserves
                                                                                                      information which would not affect
                                              A. Funding Categories                                   scoring. If RUS requests additional                   the right to increase funding utilizing
                                                                                                      information the applicant will have 30                the application queue under this FOA
                                              1. 100 Percent Loan                                                                                           should additional appropriations
                                                                                                      calendar days to submit such
                                                 The interest rate for a 100 percent                  information. If the information is not                become available for the same purposes.
                                              loan will be set at a fixed 2 percent. The              submitted, RUS may reject the                         3. Repooling
                                              proposed funded service area for this                   application.
                                              category must be in an area where 90                                                                            RUS retains the discretion to divert
                                              percent of the households do not have                   3. 100 Percent Grant                                  funds from one funding category to
                                              sufficient access to broadband.                            The proposed funded service area for               another.
                                              Applicants must propose to build a                      this category must be in an area where                4. Award Period
                                              network that is capable of providing                    100 percent of the households do not
                                              service to every premise in the proposed                have sufficient access to broadband.                     Awards can be made until all funds
                                              funded service area at a speed of 25                    Applicants must propose to build a                    have been expended in any given
                                              Mbps downstream and 3 Mbps                              network that is capable of providing                  funding category. While the completion
                                              upstream. Tangible equity to total assets               service to every premise in the proposed              time will vary depending on the
                                              must be at least 20 percent at the end                  funded service area at a speed of 25                  complexity of the project, award
                                              of the calendar year starting in the third              Mbps downstream and 3 Mbps                            recipients must complete their projects
                                              year of the forecast period through the                 upstream. Applicants must provide a                   within 5 years from the date funds are
                                              remainder of the forecast period.                       matching contribution equal to 25                     first made available.
                                                 The Agency anticipates that                          percent of the cost of the overall project.           5. Type of Funding Instrument
                                              applications will be accepted on a                      The matching contribution can only be
                                              rolling basis ending June 28, 2019. In                  used for eligible purposes.                             The funding instruments will be
                                              the event two loan applications are                        The Agency anticipates that                        grants, loans, and loan/grant
                                              received for the same proposed funded                   applications will be accepted ending                  combinations.
                                              service area the application to arrive                  April 29, 2019. All eligible applications             V. Eligibility Information
                                              first will be considered first. The agency              will be scored, and subject to Section
                                              reserves the right to make funding offers               V(C)(5)(b)(i) (overlapping applications)              A. General
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                                              or seek consultations to resolve partially              applications with the highest score will                 Applicants must satisfy the following
                                              overlapping applications. RUS may                       receive an award offer until all funds are            eligibility requirements to qualify for
                                              contact the applicant for additional                    expended for this category. RUS                       funding.
                                              information during the review process.                  reserves the right to request additional
                                              If additional information is requested,                 information which would not affect                    B. Eligible Entities
                                              the applicant will have up to 30                        scoring. If RUS requests additional                     The following entities are eligible to
                                              calendar days to submit the information.                information the applicant will have 30                apply for assistance:


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                                              64318                       Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices

                                                1. States, local governments, or any                  area that do not have sufficient access               can be found at https://
                                              agency, subdivision, instrumentality, or                to broadband.                                         reconnect.usda.gov.
                                              political subdivision thereof;                            ii. If part or parts of the applicant’s                (C) RUS BIP Grants. Service areas that
                                                2. A territory or possession of the                   proposed funded service area are                      received a 100 percent grant under the
                                              United States;                                          ineligible, RUS, in its sole discretion,              RUS Broadband Initiatives Program
                                                3. An Indian tribe (as defined in                     may request that an applicant modify its              (BIP) are eligible if they do not have
                                              section 4 of the Indian Self-                           application, if RUS believes the                      sufficient access to broadband.
                                              Determination and Education                             modification is feasible. Otherwise, RUS              However, if the applicant is the same
                                              Assistance Act (25 U.S.C. 450b));                       will reject the application.                          BIP grantee, then the applicant may
                                                4. Non-profit entities;                                                                                     only request a 100 percent loan.
                                                5. For-profit corporations;                           b. Ineligible Service Areas                              (D) State-funded Areas. Areas that
                                                6. Limited liability companies; and                   i. Overlapping Service Areas                          received State funding to deploy
                                                7. Cooperative or mutual                                                                                    broadband at a speed of at least 10 Mbps
                                              organizations.                                            RUS will not fund more than one                     downstream and 1 Mbps upstream are
                                              C. Application Eligibility Factors                      project that serves any one given                     ineligible areas under this FOA.
                                                                                                      geographic area. Invariably, however,                 Applicants must provide a map of the
                                                The following requirements must be                    applicants will propose service areas                 proposed funded service area to the
                                              met by all applications to be eligible for              that overlap, varying from small de                   appropriate State government office and
                                              an award. Applications failing to                       minimus areas of the territory, but                   the State government office must certify
                                              comply with these requirements will be                  which may be significant with respect to              that either funds have or have not been
                                              rejected.                                               households involved, to larger areas of               allotted for the area. Applicants must
                                              1. Audited Financial Statement                          the service territory, but which may                  submit the map and the State
                                                                                                      contain few households or businesses, if              certification as part of the application
                                                Applicants must submit unqualified,                   any. As a result, devising a procedure                for funding. For applications that are
                                              audited financial statements for the two                which will cover every overlap                        proposing to provide service in multiple
                                              previous years from the date the                        circumstance cannot be done.                          States, a map and certification will be
                                              application is submitted. If an                         Nevertheless, it is the agency’s intent to            required for each State. If the map(s)
                                              application is submitted in the first                   make as many eligible applications                    and certification(s) are not submitted,
                                              quarter of the calendar year and the                    viable for consideration as possible.                 RUS may reject the application.
                                              most recent yearend audit has not been                  That may mean the agency may: (1)                        (E) Connect America Fund Phase II
                                              completed, the applicant can submit the                 Determine the overlap to be so                        Auction—Auction 903 (CAF II).
                                              two previous unqualified audits that                    insignificant that no agency action is                   Funding for service areas of CAF II
                                              have been completed. If qualified audits                necessary; (2) request one or more                    recipients can only be requested by the
                                              or audits containing a disclaimer or                    applications to be revised to eliminate               entity that is receiving the CAF II
                                              adverse opinion are submitted, the                      the overlapping territory; (3) choose one             support, and such funding is limited to
                                              application will not be considered;                     application over another given the                    a 100% loan. The CAF II service areas
                                              2. Fully Completed Application                          amount of assistance requested, the                   can be found at https://
                                                                                                      number of awards already chosen in the                reconnect.usda.gov and may also be
                                                 Applicants must submit a complete                                                                          found on the FCC web page.
                                                                                                      area or State, or the need for the project
                                              application and provide all supporting
                                                                                                      in the specific area due to other factors;            6. Fully Funded
                                              documentation required for the
                                                                                                      or (4) simply choose the project that
                                              application.                                                                                                     A project is eligible only if, all project
                                                                                                      scores higher or in the judgement of the
                                              3. Timely Buildout Completion                           agency is more financially feasible.                  costs can be fully funded or accounted
                                                                                                                                                            for in the application. To demonstrate
                                                 A project is eligible only if the                    ii. Prior Funded Service Areas                        this, applications must include evidence
                                              application demonstrates that the                                                                             of all funding, other than the RUS
                                              project can be completely built out                       (A) RUS Broadband Loans. Service                    award, necessary to support the project,
                                              within 5 years from the date funds are                  areas of borrowers that have RUS                      such as bank account statements, firm
                                              first made available.                                   broadband loans, as defined in this                   letters of commitment from equity
                                                                                                      FOA, are ineligible for all other                     participants, or outside loans, which
                                              4. Technical Feasibility                                applicants, and can be found at https://              must evidence the timely availability of
                                                 Only projects that RUS determines to                 reconnect.usda.gov. However, RUS                      funds. If outside loans are used, they
                                              be technically feasible will be eligible                broadband borrowers that received                     may only be secured by assets other
                                              for an award. Applicants will be                        funding to provide service in an area                 than those used for collateral under this
                                              required to submit a network design,                    where the borrower is not currently                   FOA. Equity partners that are not
                                              network diagram, project costs and a                    providing sufficient access to broadband              specifically identified by name will not
                                              buildout timeline, all certified by a                   pursuant to this FOA would be eligible                be considered in the financial analysis
                                              professional engineer. The certification                to apply for funding for these service                of the application.
                                              from the professional engineer must                     areas if they have not defaulted on, and
                                              state that the proposed network can                     have materially complied with, in the                 7. Financial Feasibility and
                                              deliver broadband service at the                        sole discretion of RUS, their prior                   Sustainability
                                              required level of service to all premises               broadband loan requirements.                             Only projects that RUS determines to
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                                              in the proposed funded service area.                      (B) RUS Community Connect Grants.                   be financially feasible and sustainable
                                              5. Service Areas                                        Service areas that received grants under              will be eligible for an award under this
                                                                                                      the RUS Community Connect Grant                       FOA. A project is financially feasible
                                              a. Eligible Service Areas                               Program are eligible if they do not have              when the applicant demonstrates to the
                                                 i. Applicants must propose to provide                sufficient access to broadband, except                satisfaction of RUS that it will be able
                                              broadband service directly to the                       for those grants still under construction.            to generate sufficient revenues to cover
                                              premises in the proposed funded service                 Service areas still under construction                expenses; will have sufficient cash flow


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                                                                          Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices                                            64319

                                              to service all debts and obligations as                 including the number of new                           subscribers reasonable service plans that
                                              they come due; will have a positive                     subscribers generated from the facilities             do not cap bandwidth usage.
                                              ending cash balance as reflected on the                 funded.
                                                                                                                                                            (b) Ineligible Award Costs
                                              cash flow statement for each year of the                   This information will be used to
                                              forecast period; and, by the end of the                 analyze the effectiveness of the funding                 Award funds may not be used for any
                                              forecast period, will meet at least two of              provided and will allow the Agency to                 of the following purposes:
                                              the following requirements: A minimum                   track adoption rates as new and                          (i) To fund operating expenses of the
                                              TIER requirement of 1.2, a minimum                      improved broadband services are being                 Awardee;
                                              DSCR requirement of 1.2, and a                          provided.                                                (ii) To fund costs incurred prior to the
                                              minimum current ratio of 1.2. In                                                                              date on which the application was
                                              addition, applicants must demonstrate                   D. Eligible Cost Purposes                             submitted, and with respect to eligible
                                              positive cash flow from operations at                   1. General                                            pre-application expenses, those costs
                                              the end of the forecast period.                                                                               incurred prior to the date of the
                                                 If an applicant has no existing debt,                   Award and matching funds must be                   publication date of this FOA;
                                              is not proposing to borrow funds during                 used only to pay for eligible costs                      (iii) To fund an acquisition of an
                                              the forecast period, and is applying only               incurred post award, except for                       affiliate, or the purchase or acquisition
                                              for grant funds, only the current ratio                 approved pre-application expenses.                    of any facilities or equipment of an
                                              will be applied and not the TIER or                     Eligible costs must be consistent with                affiliate. Note that if affiliated
                                              DSCR. For this situation, applicants                    the cost principles identified in 2 CFR               transactions are contemplated in the
                                              must meet the minimum current ratio                     200, Subpart E, Cost Principles. In                   application, approval of the application
                                              requirement.                                            addition, costs must be reasonable,                   does not constitute approval to enter
                                                                                                      allocable, and necessary to the project.              into affiliated transactions, nor
                                              8. Service Requirements                                 Any application that proposes to use                  acceptance of the affiliated
                                                 Facilities funded with grant funds                   any portion of the award or matching                  arrangements that conflict with the
                                              must provide broadband service                          funds for any ineligible cost may be                  obligations under the award documents;
                                              proposed in the application for the                     rejected.                                                (iv) To fund the acquisition of a
                                              composite economic life of the facilities,              2. Eligible and Ineligible Costs                      system previously funded by RUS;
                                              as approved by RUS, or as provided in                                                                            (v) To fund the purchase or lease of
                                              the Award Documents.                                    a. Eligible Award Costs                               any vehicle other than those used
                                                                                                         Award funds may be used to pay for                 primarily in construction or system
                                              9. Application Transparency                                                                                   improvements;
                                                                                                      the following costs:
                                                 a. Pre-award Public Notice. To ensure                   (i) To fund the construction or                       (vi) To fund broadband facilities
                                              transparency for the ReConnect                          improvement of facilities, including                  leased under the terms of an operating
                                              Program, the Agency’s mapping tool                      buildings and land, required to provide               lease or an indefeasible right of use
                                              will include the following information                  broadband service, including facilities               (IRU) agreement;
                                              from each application and be displayed                  required for providing other services                    (vii) To fund the merger or
                                              for the public: (i) The identity of the                 over the same facilities, such as                     consolidation of entities;
                                              applicant; (ii) the areas to be served; (iii)           equipment required to comply with                        (viii) To fund costs incurred in
                                              the type of funding requested; (iv) the                 CALEA;                                                acquiring spectrum as part of an FCC
                                              status of the application; (v) the number                                                                     auction or in a secondary market
                                                                                                         (ii) To fund reasonable pre-
                                              of households without sufficient access                                                                       acquisition. Spectrum that is part of an
                                                                                                      application expenses in an amount not
                                              to broadband; and (vi) a list of the                                                                          acquisition may be considered for loan
                                                                                                      to exceed five percent of the award. Pre-
                                              census blocks to be served.                                                                                   funding;
                                                                                                      application expenses may be
                                                 b. Post-award Public Notice. For all                                                                          (ix) To fund facilities that provide
                                                                                                      reimbursed only if they are incurred
                                              approved applications, the agency will                                                                        mobile services;
                                                                                                      after the publication date of this FOA,                  (x) To fund the acquisition of a system
                                              post on its website: The name of the
                                                                                                      and properly documented. Pre-                         that is providing sufficient access to
                                              company receiving funding, the type of
                                                                                                      application expenses must be included                 broadband; nor
                                              funding received, the location of the
                                                                                                      in the first request for award funds, and                (x) To refinance outstanding debt.
                                              proposed funded service area and the
                                                                                                      will be funded with either grant or loan
                                              purposes of the funding.                                                                                      VI. Application and Submission
                                                 c. Post-award Reporting. Awardees                    funds. If the funding category applied
                                                                                                      for has a grant component, then grant                 Information
                                              will be required to submit semi-annual
                                              reports for three years after the                       funds will be used for this purpose;                  A. Online Application System
                                              completion of construction on the                          (iii) To fund the acquisition of an
                                                                                                      existing system that does not currently                 All applications under this FOA must
                                              following information:                                                                                        be submitted through the RUS Online
                                                 (i) The number and location of                       provide sufficient access to broadband
                                                                                                      for upgrading that system to meet the                 Application System to be located
                                              residences and businesses that will                                                                           through https://reconnect.usda.gov.
                                              receive service at or greater than the                  requirements of this FOA. The cost of
                                                                                                      the acquisition is limited to 40 percent              Additional information can be found in
                                              requirement for the appropriate funding                                                                       the Application Guidelines found at the
                                              category.                                               of the amount requested. Acquisitions
                                                                                                      can only be considered in the 100                     above location. This website will be
                                                 (ii) the types of facilities constructed                                                                   updated regularly.
                                              and installed;                                          percent loan category; and
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                                                 (iii) the speed of the data services                    (iv) To fund terrestrial-based facilities          B. Registration
                                              being delivered;                                        for satellite broadband service, provided
                                                 (iv) the average price of the data                   the applicant clearly identifies the                  1. Dun and Bradstreet Universal
                                              services being delivered in each                        PFSA, demonstrates the ability to                     Numbering System (DUNS) Number
                                              proposed service area; and                              provide 25 Mbps downstream and 3                        All applicants must register for a
                                                 (v) the broadband adoption rate for                  Mbps upstream simultaneously to every                 DUNS number as part of the
                                              each proposed service territory,                        premise in the PFSA, and offers                       application. The applicant can obtain


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                                              64320                       Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices

                                              the DUNS number free of charge by                          e. A map, utilizing the RUS mapping                   l. Historical financial statements for
                                              calling Dun and Bradstreet. Go to http://               tool located at https://                              the last four years consisting of a
                                              fedgov.dnb.com/webform for more                         reconnect.usda.gov of the proposed                    balance sheet, income statement, and
                                              information on assignment of a DUNS                     funded service areas identifying the                  cash flow statement. If an entity has not
                                              number or confirmation.                                 areas without sufficient access to                    been operating for four years, historical
                                                                                                      broadband and any non-funded service                  statements for the period of time the
                                              2. System for Award Management
                                                                                                      areas of the applicant.                               entity has been operating.
                                              (SAM)                                                      f. A description of the advertised                    m. Audited financial statements for
                                                 Prior to submitting an application, the              prices of service offerings by                        the previous two calendar years. For
                                              applicant must also register in SAM at                  competitors in the same area.                         governmental entities financial
                                              https://www.sam.gov/portal/SAM/#1                          g. A network design which includes a               statements must be accompanied with
                                              and supply a Commercial and                             description of the proposed technology                certifications as to unrestricted cash that
                                              Government Entity (CAGE) Code                           used to deliver the broadband service                 may be available on a yearly basis to the
                                              number as part of the application. SAM                  demonstrating that all premises in the                applicant. For startup operations formed
                                              registration must be active with current                proposed funded service area can be                   from partnerships of existing utility
                                              data at all times, from the application                 offered broadband service, a network                  providers, audited financial statements
                                              review throughout the active Federal                    diagram, a buildout timeline and                      are required for the two previous years
                                              award funding period. To maintain                       milestones for implementation of the                  from each of the partners. In addition,
                                              active SAM registration, the applicant                  project, and a capital investment                     the partners must guarantee any loan
                                              must review and update the information                  schedule showing that the system can                  component of the requested funding.
                                              in the SAM database annually from the                   be built within 5 years, all of which                    n. Pro Forma financial analysis,
                                              date of initial registration or from the                must be certified by a professional                   prepared in conformity with U.S. GAAP
                                              date of the last update. The applicant                  engineer who is certified in at least one             and the Agency’s guidance on grant
                                              must ensure that the information in the                 of the states where there is project                  accounting found at https://
                                              database is current, accurate, and                      construction. The certification from the              www.rd.usda.gov/files/Accounting
                                              complete.                                               professional engineer must clearly state              Guidance10.pdf. The Pro Forma should
                                                                                                      that the proposed network can deliver                 validate the sustainability of the project
                                              C. Contents of the Application
                                                                                                      the broadband service to all premises in              by including subscriber estimates
                                              1. Requirements for the Applications                    the proposed funded service area at the               related to all proposed service offerings;
                                                 Given the varying expected closing                   minimum required service level. In                    annual financial projections with
                                              dates for each funding type, and the                    addition, if the applicant is requesting              balance sheets, income statements, and
                                              inability of the agency to announce                     the points for providing a 100 Mbps                   cash flow statements; supporting
                                              awards for a funding window while                       upstream and 100 Mbps downstream,                     assumptions for a five-year forecast
                                              applicants have other applications in                   the certification must also state that the            period and a depreciation schedule for
                                              more than one funding type, applicants                  proposed system is capable of delivering              existing facilities and those funded with
                                              will be limited to ONE application for                  this service to all premises; a list of all           federal assistance, matching, and other
                                              this FOA. A complete application will                   required licenses and regulatory                      funds. This pro forma should indicate
                                              include the following information as                    approvals needed for the proposed                     the committed sources of capital
                                              requested in the RUS Online                             project and how much the applicant                    funding and include a bridge year prior
                                              Application System:                                     will rely on contractors or vendors to                to the start of the forecast period. This
                                                 a. General information on the                        deploy the network facilities. Note that              bridge year shall be used as a buffer
                                              applicant and the project including:                    in preparing budget costs for equipment               between the historical financial
                                                 (i) A description of the project that                and materials, RUS’ Buy American                      information and the forecast period and
                                              will be made public consistent with the                 requirements apply.                                   is the year in which the application is
                                              requirements herein and                                    h. Resumes of key management                       submitted.
                                                 (ii) The estimated dollar amount of                  personnel, a description of the                          o. All attachments required in the
                                              the funding request.                                    organization’s readiness to manage a                  RUS Online application system;
                                                 b. An executive summary of the                       broadband services network, and an                       p. A scoring sheet, analyzing the
                                              proposed project. This summary shall                    organizational chart showing all parent               scoring criteria set forth in this FOA;
                                              include, but not be limited to, a detailed              organizations and/or holding companies                   q. A list of all the applicant’s
                                              description of existing operations,                     (including parents of parents, etc.), and             outstanding and contingent obligations,
                                              discussion about key management,                        all subsidiaries and affiliates.                      including copies of existing notes, loan
                                              description of the workforce,                              i. A legal opinion that: (1) Addresses             and security agreements, guarantees,
                                              description of interactions between any                 the applicant’s ability to enter into the             any existing management or service
                                              parent, affiliated or subsidiary operation              award documents; (2) describes all                    agreements, and any other agreements
                                              and a detailed description of the                       material pending litigation matters; (3)              with parents, subsidiaries and affiliates,
                                              proposed project.                                       addresses the applicant’s ability to                  including but not limited to debt
                                                 c. A description of the proposed                     pledge security as required by the award              instruments that use the applicant’s
                                              funded service area including the                       documents and (4) addresses the                       assets, revenues or stock as collateral;
                                              number of premises passed.                              applicant’s ability to provide broadband                 r. All environmental information
                                                 d. Subscriber projections including                  service under state law.                              required to certify that the proposed
                                              the number of subscribers for                              j. Summary and itemized budgets of                 construction meets the requirements of
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                                              broadband, video and voice services and                 the infrastructure costs of the proposed              the National Environmental Policy Act
                                              any other service that may be offered; A                project, including if applicable, the ratio           of 1969, as amended (42 U.S.C. 4321 et
                                              description of the proposed service                     of loans to grants, and any other sources             seq.) (NEPA), the National Historic
                                              offerings, and the associated pricing                   of outside funding.                                   Preservation Act of 1966, as amended
                                              plan that the applicant proposes to offer;                 k. A detailed description of working               (16 U.S.C. 470 et seq.) (NHPA), and the
                                              and an explanation of how the proposed                  capital requirements and the source of                Endangered Species Act of 1973, as
                                              service offerings are affordable.                       these funds.                                          amended (16 U.S.C. 1534 et seq.) (ESA)


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                                                                          Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices                                            64321

                                              as applicable and any other information                 proposed, the density calculation will                geographical area of the proposed
                                              requested by the Agency. Information                    be made on the combined areas as if                   funded service area(s) is to provide
                                              will be submitted in two parts.                         they were a single area, and not the                  service on tribal lands, 5 points shall be
                                              Applicants must submit all information                  average densities. For population                     awarded. Tribal lands will be analyzed
                                              that is requested in the Agency’s on-line               densities of 6 or less, 25 points will be             using the GIS layer located at https://
                                              applications system as well as provide                  awarded.                                              www.census.gov/geo/maps-data/data/
                                              any information requested by the                                                                              cbf/cbf_aiannh.html. This layer is
                                                                                                      2. Farms Served (20 Points)
                                              Agency after applications are submitted.                                                                      included in the RUS mapping tool.
                                                 s. Certification from the applicant that               Applicants will receive 1 point for
                                                                                                      each farm that pre-subscribes for                     9. State Broadband Activity (20 Points)
                                              agreements with, or obligations to,
                                              investors do not breach the obligations                 broadband service up to a maximum of                    For projects that are in a State that has
                                              to the government under the draft                       20 points. Applicants must have the                   a broadband plan that has been updated
                                              Award Documents, especially                             head of the farm sign the pre-                        within five years of the date of
                                              distribution requirements, and that any                 subscription form provided in the                     publication of this FOA, 10 points will
                                              such agreements will be amended so                      application system and submit them as                 be awarded. An additional 5 points will
                                              that such obligations are made                          part of their application.                            be awarded for projects located in states
                                              contingent to compliance with the                                                                             that do not restrict utilities from
                                                                                                      3. Performance of the Offered Service
                                              Award Documents. Such certification                                                                           delivering broadband service, and 5
                                                                                                      (20 Points)
                                              should also specifically identify which,                                                                      more points for projects located in states
                                              if any, provisions would need to be                       For projects that are proposing to                  that expedite right-of-way and
                                              amended; and                                            build a network that is capable of                    environmental requirements.
                                                 t. If service is being proposed on tribal            providing at least 100 Mbps                             Applicants will be required to submit
                                              land, a certification from the proper                   symmetrical service to all premises, 20               evidence from the appropriate State
                                              tribal official that they are in support of             points will be awarded. The                           official that a broadband plan has been
                                              the project and will allow construction                 certification from the Professional                   implemented and updated, that there
                                              to take place on tribal land. The                       Engineer must certify that the proposed               are no restrictions on utilities providing
                                              certification must: (1) Include a                       system can deliver these speeds to every              broadband service, and that procedures
                                              description of the land proposed for use                premises in the proposed funded service               are in place for expediting right-of-way
                                              as part of the proposed project; (2)                    area.                                                 and environmental requirements. If
                                              identify whether the land is owned,                     4. Businesses (15 Points)                             service is proposed in multiple states,
                                              held in Trust, land held in fee simple by                                                                     then evidence must be submitted from
                                              the Tribe, or land under a long-term                      Applicants will receive 1 point for                 each state to get the appropriate points.
                                              lease by the Tribe; (3) if owned, identify              each business that pre-subscribes for
                                                                                                      broadband service up to a maximum of                  VIII. Notice of Proposed Funded
                                              the land owner; and (4) provide a                                                                             Service Areas
                                              commitment in writing from the land                     15 points. Applicants must have the
                                              owner authorizing the applicant’s use of                owner of the business sign the pre-                   A. The Agency Will Publish a Public
                                              that land for the proposed project. If no               subscription form provided in the                     Notice of Each Application
                                              certification is provided, then this area               application system and submit them as
                                                                                                      part of their application.                              The application must provide a
                                              will be ineligible for funding.                                                                               summary of the information required for
                                                 u. Any other information requested in                5. Healthcare Centers (15 Points)                     such public notice including the
                                              the online application system.                                                                                following:
                                                                                                        For every healthcare center served 1
                                              D. Material Representations                             point will be awarded up to a maximum                   1. The identity of the applicant;
                                                                                                      of 15 points. Healthcare centers will be                2. A map of each proposed funded
                                                The application, including                                                                                  service area showing the rural area
                                              certifications, and all forms submitted                 counted using the GIS layer located in
                                                                                                      the RUS mapping tool at https://                      boundaries and the areas without
                                              as part of the application will be treated                                                                    sufficient access to broadband using the
                                              as material representations upon which                  reconnect.usda.gov.
                                                                                                                                                            Agency’s Mapping Tool;
                                              RUS will rely in awarding grants and                    6. Educational Facilities (15 Points)                   3. The amount and type of support
                                              loans.                                                                                                        requested;
                                                                                                        For every school served 1 point will
                                              VII. Application Evaluation Criteria                    be awarded up to a maximum of 15                        4. The status of the review of the
                                                                                                      points. Schools will be counted using                 application;
                                              A. Evaluation Criteria                                                                                          5. The estimated number of
                                                                                                      the GIS layer provided in the RUS
                                                Applications in the same funding                      mapping tool located at https://                      households without sufficient access to
                                              category will be scored and ranked                      reconnect.usda.gov.                                   broadband in each service area
                                              against the following criteria, and not                                                                       exclusive of satellite and mobile
                                              against each other. However,                            7. Critical Community Facilities (15                  broadband service; and
                                              applications for 50/50 loan/grant                       Points)                                                 6. A description of all the types of
                                              combos and 100 percent grants that                        For every critical community facility               services that the applicant proposes to
                                              cover the same proposed service area                    served 1 point will be awarded up to a                offer in each service area.
                                              will be evaluated as described in                       maximum of 15 points. Critical
                                                                                                                                                            B. Notification After the Application
                                              Section V(C)(5)(b)(i) above.                            community facilities will be counted
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                                                                                                                                                            Has Been Received
                                                                                                      using the GIS layer located in the RUS
                                              1. Rurality of Proposed Funded Service                                                                          The Agency will publish the public
                                                                                                      mapping tool at https://
                                              Area (25 Points)                                                                                              notice on an Agency web page after the
                                                                                                      reconnect.usda.gov.
                                                Points will be awarded for serving the                                                                      application has been submitted through
                                              least dense rural areas as measured by                  8. Tribal Lands (5 Points)                            the online application system and will
                                              the population of the area per square                    For applications where, at a                         remain on the web page for a period of
                                              mile. If multiple service areas are                     minimum, 50 percent of the                            30 calendar days.


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                                              64322                       Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices

                                                The notice will ask existing service                    RUS also reserves the right to ask                  3. Advance Procedures
                                              providers to submit to the Agency,                      applicants for clarifying information                    RUS loan and grant advances are
                                              within this notice period, the following                and additional verification of assertions             made at the request of the Awardee
                                              information:                                            in the application. For those                         according to the procedures stipulated
                                                1. The number of residential and                      applications that RUS has selected for                in the Award Documents. ALL
                                              business customers within the                           funding, RUS will send award                          MATCHING FUNDS OR CASH
                                              applicant’s service area currently                      documents.                                            PROVIDED IN LIEU OF LOAN FUNDS
                                              purchasing broadband service, defined                                                                         MUST BE EXPENDED FIRST,
                                              as at a minimum speed of 10 Mbps                        B. Review of Awardee Operations
                                                                                                                                                            FOLLOWED BY LOAN FUNDS, AND
                                              downstream and 1 Mbps upstream, the                     1. Entities That Receive Funding Under                THEN BY GRANT FUNDS, EXCEPT
                                              rates of data transmission being offered,               This FOA                                              FOR RUS APPROVED PRE–
                                              and the cost of each level of broadband                                                                       APPLICATION EXPENSES. Grant funds,
                                              service charged by the existing service                   For all entities that receive funding               if any, will be used for eligible pre-
                                              provider;                                               under this FOA, RUS may send a team                   application expenses only on the first
                                                2. The number of residential and                      to the awardee’s facilities to complete a             advance request. Accordingly,
                                              business customers within the                           Management Analysis Profile (MAP) of                  applications that do not account for
                                              applicant’s service area receiving voice                the entire operation. MAPs are used by                such advance procedures in the Pro
                                              and video services and the associated                   RUS as a means of evaluating an                       Forma five-year forecast may be
                                              rates for these other services; and                     Awardee’s strengths and weaknesses                    rejected.
                                                3. A map showing where the existing                   and ensuring that awardees are prepared
                                              service provider’s services coincide                    to fulfil the terms of the award. Once an             4. Construction
                                              with the applicant’s service area using                 applicant accepts an award offer, RUS                    a. All project assets must comply with
                                              the Agency’s Mapping Tool.                              may schedule a site visit as soon as                  7 CFR part 1788, and 7 CFR part 1970
                                              C. Agency Determination of Sufficient                   possible.                                             located at https://www.rd.usda.gov/
                                              Access to Broadband in Proposed                         2. Agency Right Not To Advance Funds                  publications/regulations-guidelines/
                                              Funded Service Area                                                                                           regulations, the ReConnect Program
                                                                                                        RUS reserves the right not to advance               Construction Procedures located at
                                                The Agency will use the information
                                                                                                      funds until the MAP has been                          https://reconnect.usda.gov, any
                                              submitted to determine if there is
                                                                                                      completed. If the MAP identifies issues               successor regulations found on the
                                              sufficient access to broadband in any
                                                                                                      that can affect the operation and                     agency’s website, and any other
                                              part of the proposed funded service
                                                                                                      completion of the project, those issues               guidance from the Agency.
                                              area. Notwithstanding non-responses by                                                                           b. The build-out of the project must be
                                              actual and potential providers, the                     must be addressed to the satisfaction of
                                                                                                      RUS before funds can be advanced.                     completed within five years from the
                                              Agency will use all information                                                                               date funds are made available. Build-out
                                              available in evaluating the feasibility of              Funding may be rescinded if following
                                                                                                      a MAP the agency determines that the                  is considered complete when the
                                              the project.                                                                                                  network design has been fully
                                                                                                      awardee will be unable to meet the
                                              D. Treatment of Submitted Information                   requirements of the award.                            implemented, the service operations
                                                The information submitted by an                                                                             and management systems infrastructure
                                                                                                      X. Award Administration Information                   is operational, and the awardee is ready
                                              existing service provider will be treated
                                              as proprietary and confidential to the                  A. Award Notices                                      to support the activation and
                                              extent permitted under applicable law.                                                                        commissioning of individual customers
                                                                                                        Successful applicants will receive an               to the new system.
                                              E. Notice of Application Is Approved                    offer letter and award documents from                 5. Servicing
                                                If an application is approved, an                     RUS following award notification.
                                              additional notice will be published on                  Applicants may view sample award                         a. Awardees must make payments on
                                              the agency’s website that will include                  documents at https://                                 the loan as required in the note and
                                              the following information:                              reconnect.usda.gov.                                   Award Documents.
                                                1. The name of the entity receiving                                                                            b. Awardees must comply with all
                                                                                                      B. Administrative Requirements                        terms, conditions, affirmative
                                              the financial assistance;
                                                2. The type of assistance being                                                                             covenants, and negative covenants
                                                                                                      1. Pre-Award Conditions
                                              received;                                                                                                     contained in the Award Documents.
                                                3. The purpose of the assistance and                    No funds will be disbursed under this                  c. In the event of default of the Award
                                              the location of the proposed funded                     program until all other sources of                    Documents:
                                              service area; and                                       funding have been obtained and any                       (i) A late charge may be charged on
                                                4. The semiannual reports submitted                   other pre-award conditions have been                  any payment not made in accordance
                                              under Section X(B)(6)e of this FOA.                     met. Failure to obtain one or more                    with the terms of the loan.
                                                                                                      sources of funding committed to in the                   (ii) The Agency may exercise any and
                                              IX. Evaluation and Processing                                                                                 all remedies provided in the Award
                                                                                                      Application or to fulfill any other pre-
                                              Procedures                                                                                                    Documents.
                                                                                                      award condition within 90 days of
                                              A. Review of Application                                award announcement may result in                      6. Accounting, Monitoring, and
                                                Applications will be evaluated using                  withdrawal of the award.                              Reporting Requirements
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                                              the criteria stated in Section V.C of this              2. Failure To Comply With Award                          a. Awardees must adopt a system of
                                              FOA. Public comments received with                      Requirements                                          accounts for maintaining financial
                                              respect to an application’s proposed                                                                          records acceptable to the Agency, as
                                              funded service area will be reviewed                       If an Awardee fails to comply with the             described in 7 CFR part 1770, subpart B.
                                              and evaluated. Eligibility of proposed                  terms of the award as specified in the                   b. Awardees must submit annual
                                              funded service areas will be verified by                award documents, RUS may exercise                     comparable audited financial statements
                                              the Agency.                                             rights and remedies.                                  along with a report on compliance and


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                                                                          Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices                                            64323

                                              on internal control over financial                      7. Assistance Instruments                             is not commensurate with the risk
                                              reporting, and management letter in                       a. Terms and conditions of loans,                   involved.
                                              accordance with the requirements of 7                   grants, or loan/grant combinations are                   f. Loan Security. The loan portion of
                                              CFR part 1773. The Certified Public                     set forth in the non-negotiable standard              the award must be adequately secured,
                                              Accountant (CPA) conducting the                         loan, grant, or loan/grant agreements                 as determined by RUS.
                                              annual audit is selected by the borrower                and the corresponding note, and/or                       (i) For Corporations and LLC’s, the
                                              and must be satisfactory to RUS as set                  mortgage, if applicable, which may be                 loan and loan/grant combinations must
                                              forth in 7 CFR 1773 Subpart B—RUS                       found at https://reconnect.usda.gov.                  be secured by all assets of the Awardee.
                                              Audit Requirements.                                       b. Award Documents must be                          RUS must be given an exclusive first
                                                 c. Awardees must comply with all                     executed prior to any advance of funds.               lien, in form and substance satisfactory
                                              reasonable Agency requests to support                     c. Sample Award Documents can be                    to RUS, on all assets of the Awardee,
                                              ongoing monitoring efforts. The                         found at https://reconnect.usda.gov.                  including all revenues. RUS may share
                                              Awardee shall afford RUS, through its                                                                         its first lien position with one or more
                                              representatives, reasonable opportunity,                8. Loan and Loan/Grant Terms and                      lenders on a pari passu basis, except
                                              at all times during business hours and                  Conditions                                            with respect to grant funds, if security
                                              upon prior notice, to have access to and                   Among others, the following terms                  arrangements are acceptable to RUS.
                                              the right to inspect: The Broadband                     shall apply to the loans:                             Applicants must submit a certification
                                              System, any other property encumbered                      a. Interest Rate                                   that their prior lender or lienholder on
                                              by the Award Documents, any and all                        If an applicant is applying for a 100%             any Awardee assets has already agreed
                                              books, records, accounts, invoices,                     loan, the interest rate shall be fixed at             to sign the RUS’ standard intercreditor
                                              contracts, leases, payrolls, timesheets,                2%. If an applicant is applying for a 50/             agreement or co-mortgage found at
                                              cancelled checks, statements, and other                 50 loan/grant combination, the loan                   https://reconnect.usda.gov. Note that
                                              documents, electronic or paper of every                 shall bear interest at a rate equal to the            RUS will not consider sharing assets
                                              kind belonging to or in the possession                  cost of borrowing to the Department of                with any related party or affiliate of the
                                              of the Awardee or in any way pertaining                 Treasury for obligations, as determined               Awardee. Moreover, given that RUS
                                              to its property or business, including its              by the government, of comparable                      cannot renegotiate these standard
                                              subsidiaries, if any, and to make copies                maturity. The applicable interest rate                agreements, Awardees that are unable to
                                              or extracts therefore.                                  will be set at the time of each advance.              obtain sign-off on the security
                                                 d. Awardee records shall be retained                    b. Repayment Period                                arrangements may have their awards
                                              and preserved in accordance with the                       Unless the Applicant requests a                    rescinded within 60 days of the date the
                                              provisions of 7 CFR part 1770, subpart                  shorter repayment period, loans must be               Awardee is made aware of the approval
                                              A.                                                      repaid with interest within a period                  of its application.
                                                 e. Awardees must submit semiannual                   that, rounded to the nearest whole year,                 (ii) For Tribal entities and
                                              reports for 3 years after completion of                 is equal to the expected Composite                    municipalities, RUS will develop
                                              the project, which must include the                     Economic Life of the project assets, as               appropriate security arrangements.
                                              following:                                              determined by RUS based upon                             (iii) Unless otherwise approved by
                                                                                                      acceptable depreciation rates, plus three             RUS in writing, all property and
                                                 (1) The purpose of the financing,                    years. Acceptable depreciation rates can
                                              including new equipment and capacity                                                                          facilities purchased with award funds
                                                                                                      be found in the ReConnect Program                     must be owned by the Awardee.
                                              enhancements that support high-speed                    Constructions Procedures found at
                                              broadband access for educational                                                                                 g. Grant Security. The grant portion of
                                                                                                      https://reconnect.usda.gov.                           the award must also be adequately
                                              institutions, health care providers, and                   c. Amortization Period
                                              public safety service providers                                                                               secured, as determined by RUS.
                                                                                                         Interest begins accruing on the date of
                                              (including the estimated number of end                  each loan advance. All interest and                      (i) The government must be provided
                                              users who are currently using or                        principle payments will be deferred for               an exclusive first lien on all grant assets
                                              forecasted to use the new or upgraded                   a three-year period starting when funds               during the service obligation of the
                                              infrastructure);                                        are made available to be drawn by the                 grant, and thereafter any sale or
                                                 (2) The progress towards fulfilling the              Awardee. At the end of the three-year                 disposition of grant assets must comply
                                              objectives for which the assistance was                 deferral period, accrued interest will be             with the Uniform Administrative
                                              granted, including:                                     capitalized and added to the                          Requirements, Cost Principles, and
                                                                                                      outstanding principal, and monthly                    Audit Requirements for Federal Awards,
                                                 (i) The number of residences and
                                                                                                      payments will be established in an                    codified in 2 CFR part 200. Note that
                                              businesses that will receive service
                                                                                                      amount that amortizes the outstanding                 this part will apply to ALL grant funds
                                              equal to or greater than the speed
                                                                                                      balance in equal payments over the                    of an Awardee, regardless of the entity
                                              required for the appropriate funding
                                                                                                      remaining term of the loan.                           status or type of organization.
                                              category;
                                                                                                         d. Build-out Period                                   (ii) All Awardees must repay the grant
                                                 (ii) The types of facilities constructed                                                                   if the project is sold or transferred
                                              and installed;                                             All proposed construction (including
                                                                                                      construction with matching and other                  without RUS approval during the
                                                 (iii) The speed of the broadband                     funds) and all advance of funds must be               service obligation of the grant.
                                              services being delivered;                               completed no later than five years from               9. Award Terms and Conditions
                                                 (iv) The average price of the                        the time funds are made available.
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                                              broadband services being delivered in                      e. Fidelity Bonding                                  a. Scope
                                              each proposed service area;                                Applicants must agree to obtain a                    Awardees are required to comply with
                                                 (v) The broadband adoption rate for                  fidelity bond for 15 percent of the award             the requirements established herein.
                                              each proposed service territory,                        amount. The fidelity bond must be                     Any obligation that applies to the
                                              including the number of new                             obtained as a condition of award                      Awardee shall extend for the life of the
                                              subscribers generated from the facilities               closing. RUS may reduce the percentage                award-funded facilities.
                                              funded; and                                             required if it determines that 15 percent               b. Sale or Lease of Project Assets


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                                              64324                       Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices

                                                 The sale or lease of any portion of the              XI. Other Information                                 C. De-Obligation
                                              Awardee’s facilities must be approved
                                                                                                      A. Discretionary Awards                                  The RUS reserves the right to de-
                                              in writing by RUS.
                                                 c. Certifications                                      The government is not obligated to                  obligate awards to Awardees under this
                                                 (i) The Applicant must certify that it               make any award as a result of this                    FOA that demonstrate an insufficient
                                              is authorized to submit the application                 announcement and will fund only                       level of performance, wasteful or
                                              on behalf of the eligible entity(ies) listed            projects that are deemed likely to                    fraudulent spending, or noncompliance
                                              in the Application; that the Applicant                  achieve the program’s goals and for                   with environmental and historic
                                              has examined the Application; that all                  which funds are available.                            preservation requirements.
                                              information in the Application,                                                                               D. Confidentiality of Applicant
                                                                                                      B. Environmental and National Historic
                                              including certifications and forms                                                                            Information
                                                                                                      Preservation Requirements
                                              submitted, are, at the time furnished,
                                              true and correct in all material respects;                Federal Agencies are required to                      Applicants are encouraged to identify
                                              that the entity requesting funding will                 analyze the potential environmental                   and label any confidential and
                                              comply with the terms, conditions,                      impacts, as required by the NEPA and                  proprietary information contained in
                                              purposes, and federal requirements of                   the NHPA for Applicant projects or                    their applications. The Agency will
                                              the program; that no kickbacks were                     proposals seeking funding. All                        protect confidential and proprietary
                                              paid; and that a false, fictitious, or                  Applicants are required to complete an                information from public disclosure to
                                              fradulent statement or claim on the                     Environmental Questionnaire, provide a                the fullest extent authorized by
                                              Application is grounds for denial or                    description of program activities and to              applicable law, including the Freedom
                                              termination of an award, and/or                         submit all other required environmental               of Information Act, as amended (5
                                              possible punishment by a fine or                        documentation as requested in the                     U.S.C. 552), the Trade Secrets Act, as
                                              imprisonment as provided in 18 U.S.C.                   application system or by the Agency                   amended (18 U.S.C. 1905), the
                                              § 1001 and civil violations of the False                after the application is submitted.                   Economic Espionage Act of 1996 (18
                                              Claims Act (31 U.S.C. 3729 et seq.);                       It is the Applicant’s responsibility to            U.S.C. 1831 et seq.), and CALEA (47
                                                 (ii) The Applicant must certify that it              obtain all necessary federal, tribal, state,          U.S.C. 1001 et seq.). Applicants should
                                              will comply with all applicable federal,                and local governmental permits and                    be aware, however, that the
                                              tribal, state, and local laws, rules,                   approvals necessary for the proposed                  Consolidated Appropriations Act
                                              regulations, ordinances, codes, orders,                 work to be conducted. Applicants are                  requires substantial transparency. For
                                              and programmatic rules and                              expected to design their projects so that             example, RUS is required to make
                                              requirements relating to the project, and               they minimize the potential for adverse               publicly available on the internet a list
                                              acknowledges that failure to do so may                  impacts to the environment. Applicants                of each entity that has applied for a loan
                                              result in rejection or de-obligation of the             also will be required to cooperate with               or grant, a description of each
                                              award, as well as civil or criminal                     the granting agencies in identifying                  application, the status of each
                                              prosecution, if applicable, by the                      feasible measures to reduce or avoid any              application, the name of each entity
                                              appropriate law enforcement                             identified adverse environmental                      receiving funds, and the purpose for
                                              authorities.                                            impacts of their proposed projects. The               which the entity is receiving the funds.
                                                                                                      failure to do so may be grounds for not
                                              10. Financial and Compliance Reporting                  making an award.                                      E. Compliance With Applicable Laws
                                              Requirements                                               Applications will be reviewed to                      Any recipient of funds under this
                                                 Awardees must submit to RUS 30                       ensure that they contain sufficient                   FOA shall be required to comply with
                                              calendar days after the end of each                     information to allow Agency staff to                  all applicable federal, tribal and state
                                              calendar year quarter, balance sheets,                  conduct a NEPA analysis so that                       laws, including but not limited to:
                                              income statements, statements of cash                   appropriate NEPA documentation can                       1. The nondiscrimination and equal
                                              flow, rate package summaries, and the                   be submitted to the appropriate federal               employment opportunity requirements
                                              number of customers taking broadband                    and state agencies, along with the                    of Title VI of the Civil Rights Act of
                                              service on a per community basis                        recommendation that the proposal is in                1964, as amended (42 U.S.C. 2000e et
                                              utilizing RUS’ on-line reporting system.                compliance with applicable                            seq., 7 CFR pt. 15);
                                              These reports must be submitted                         environmental and historic
                                                                                                      preservations laws. Applicants                           2. Section 504 of the Rehabilitation
                                              throughout the loan amortization period
                                                                                                      proposing activities that cannot be                   Act (29 U.S.C. 794 et seq.; 7 CFR pt.
                                              or for the economic life of the facilities
                                                                                                      covered by existing environmental                     15b);
                                              funded with a 100 percent grant.
                                                 In addition, Awardees will be                        compliance procedures will be informed                   3. The Age Discrimination Act of
                                              required to submit annually updated                     after the technical review stage whether              1975, as amended (42 U.S.C. 6101 et
                                              service area maps through the RUS                       NEPA compliance and other                             seq.; 45 CFR pt. 90);
                                              mapping tool showing the areas where                    environmental requirements can                           4. Executive Order 11375, amending
                                              construction has been completed and                     otherwise be expeditiously met so that                Executive Order 11246, Relating to
                                              premises are receiving service until the                a project can proceed within the                      Equal Employment Opportunity (3 CFR
                                              entire proposed funded service area can                 timeframes anticipated under the                      pt. 102). See 7 CFR pts. 15 and 15b and
                                              receive the broadband service.                          ReConnect Program.                                    45 CFR pt. 90, RUS Bulletin 1790–1
                                                 At the end of the project, Awardees                     If additional information is required              (‘‘Nondiscrimination among
                                              must submit a service area map                          after an application is accepted for                  Beneficiaries of RUS Programs’’), and
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                                              indicating that all construction has been               funding, funds can be withheld by the                 RUS Bulletin 20–15:320–15 (‘‘Equal
                                              completed as proposed in the                            agency under a special award condition                Employment Opportunity in
                                              application. If parts of the proposed                   requiring the Awardee to submit                       Construction Financed with RUS
                                              funded service area have not been                       additional environmental compliance                   Loans’’);
                                              constructed, RUS may require a portion                  information sufficient for the Agency to                 5. The Architectural Barriers Act of
                                              of the award to be rescinded or paid                    assess any impacts that a project may                 1968, as amended (42 U.S.C. 4151 et
                                              back.                                                   have on the environment.                              seq.);


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                                                                          Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices                                          64325

                                                6. The Uniform Federal Accessibility                  assumption used; (c) ways to enhance                  (Committee) will hold a meeting via
                                              Standards (UFAS) (Appendix A to 41                      the quality, utility and clarity of the               teleconference on Thursday January 17,
                                              CFR subpart 101–19.6); and                              information to be collected; and (d)                  2019, from 2–3 p.m. EST for the purpose
                                                7. The Council on Environmental                       ways to minimize the burden of the                    of reviewing received testimony and
                                              Quality Regulations for Implementing                    collection of information on those who                planning for future testimony on
                                              the Procedural Provisions of NEPA and                   are to respond, including through the                 education funding in the state.
                                              certain related federal environmental                   use of appropriate automated,                         DATES: The meeting will be held on
                                              laws, statutes, regulations, and                        electronic, mechanical, or other                      Thursday, January 17, 2019, at 2:00 p.m.
                                              Executive Orders found in 7 CFR 1970.                   technological collection techniques or                EST.
                                                A more complete list of such                          other forms of information technology.                   Public Call Information: Dial: 888–
                                              requirements can be found in the                           Comments may be sent to Michele                    254–3590, Conference ID: 3192445.
                                              applicable Award Documents.                             Brooks, Team Lead, Rural Development                  FOR FURTHER INFORMATION CONTACT:
                                              F. Communications Laws                                  Innovation Center—Regulations                         Melissa Wojnaroski, DFO, at
                                                                                                      Management Team, U.S. Department of                   mwojnaroski@usccr.gov or 312–353–
                                                Awardees will be required to comply                   Agriculture, 1400 Independence Ave.                   8311.
                                              with all applicable federal, tribal and                 SW, Stop 1522, Room 5162 South                        SUPPLEMENTARY INFORMATION: Members
                                              state communications laws and                           Building, Washington, DC 20250–1522.
                                              regulations, including, for example, the                                                                      of the public can listen to the
                                                                                                         Title: Rural eConnectivity Pilot                   discussion. This meeting is available to
                                              Communications Act of 1934, as                          Program (ReConnect Program).
                                              amended, (47 U.S.C. 151 et seq.) the                                                                          the public through the above listed toll
                                                                                                         Type of Request: New collection.                   free number. An open comment period
                                              Telecommunications Act of 1996, as                         Estimate of Burden: Public reporting
                                              amended (Pub. L. 104–104, 110 Stat. 56                                                                        will be provided to allow members of
                                                                                                      burden for this collection of information             the public to make a statement as time
                                              (1996), and CALEA. For further                          is estimated to average 6.77 hours per
                                              information, see http://www.fcc.gov.                                                                          allows. The conference call operator
                                                                                                      response.                                             will ask callers to identify themselves,
                                              G. Executive Order 13132                                   Respondents: Businesses and other                  the organization they are affiliated with
                                                                                                      for-profits.                                          (if any), and an email address prior to
                                                It has been determined that this notice                  Estimated Number of Respondents:
                                              does not contain policies with                                                                                placing callers into the conference
                                                                                                      2000.                                                 room. Callers can expect to incur regular
                                              federalism implications as that term is                    Estimated Number of Responses per
                                              defined in Executive Order 13132.                                                                             charges for calls they initiate over
                                                                                                      Respondent: 34.96.                                    wireless lines, according to their
                                              H. Authorized Signatories                                  Estimated Total Annual Burden and                  wireless plan. The Commission will not
                                                                                                      Record Keeping Hours on Respondents:                  refund any incurred charges. Callers
                                                Only authorized grant and loan
                                                                                                      477,820 hours.                                        will incur no charge for calls they
                                              officers can bind the Government to the
                                                                                                         Copies of this information collection              initiate over land-line connections to
                                              expenditure of funds.
                                                                                                      can be obtained from MaryPat Daskal,                  the toll-free telephone number. Persons
                                              I. Paperwork Reduction Act and                          Rural Development Innovation Center—                  with hearing impairments may also
                                              Recordkeeping Requirements                              Regulations Management Team, at (202)                 follow the proceedings by first calling
                                                 Copies of all forms, regulations, and                720–7853 or email: marypat.daskal@                    the Federal Relay Service at 1–800–877–
                                              instructions referenced in this FOA may                 wdc.usda.gov.                                         8339 and providing the Service with the
                                              be obtained from RUS. Data furnished                       All responses to this information                  conference call number and conference
                                              by the Applicants will be used to                       collection and recordkeeping notice will              ID number.
                                              determine eligibility for program                       be summarized and included in the                        Members of the public are also
                                              benefits. Furnishing the data is                        request for OMB approval. All                         entitled to submit written comments;
                                              voluntary; however, the failure to                      comments will also become a matter of                 the comments must be received in the
                                              provide data could result in program                    public record.                                        regional office within 30 days following
                                              benefits being withheld or denied.                        Dated: December 6, 2018.                            the meeting. Written comments may be
                                                 The Information Collection and                       Christopher A. McLean,                                mailed to the Regional Programs Unit
                                              Recordkeeping requirements contained                    Acting Administrator, Rural Utilities Service.        Office, U.S. Commission on Civil Rights,
                                              in this FOA have been approved by an                    [FR Doc. 2018–27038 Filed 12–13–18; 4:15 pm]          230 S. Dearborn, Suite 2120, Chicago, IL
                                              emergency clearance under OMB                                                                                 60604. They may also be faxed to the
                                                                                                      BILLING CODE P
                                              Control Number 0572–0152. In                                                                                  Commission at (312) 353–8324, or
                                              accordance with the Paperwork                                                                                 emailed to Carolyn Allen at callen@
                                              Reduction Act of 1995 (44 U.S.C.                                                                              usccr.gov. Persons who desire
                                              chapter 35), RUS invites comments on                    COMMISSION ON CIVIL RIGHTS                            additional information may contact the
                                              this information collection for which                   Notice of Public Meeting of the Ohio                  Regional Programs Unit Office at (312)
                                              the Agency intends to request approval                  Advisory Committee to the U.S.                        353–8311.
                                              from the Office of Management and                                                                                Records generated from this meeting
                                                                                                      Commission on Civil Rights
                                              Budget (OMB).                                                                                                 may be inspected and reproduced at the
                                                 Comments on this notice must be                      AGENCY: U.S. Commission on Civil                      Regional Programs Unit Office, as they
                                              received by February 12, 2019.                          Rights.                                               become available, both before and after
                                              Comments are invited on (a) whether                     ACTION: Announcement of meeting.                      the meeting. Records of the meeting will
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                                              the collection of information is                                                                              be available via www.facadatabase.gov
                                              necessary for the proper performance of                 SUMMARY:  Notice is hereby given,                     under the Commission on Civil Rights,
                                              the functions of the agency, including                  pursuant to the provisions of the rules               Ohio Advisory Committee link. Persons
                                              whether the information will have                       and regulations of the U.S. Commission                interested in the work of this Committee
                                              practical utility; (b) the accuracy of the              on Civil Rights (Commission) and the                  are also directed to the Commission’s
                                              agency’s estimate of burden including                   Federal Advisory Committee Act that                   website, http://www.usccr.gov, or may
                                              the validity of the methodology and                     the Ohio Advisory Committee                           contact the Regional Programs Unit


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Document Created: 2018-12-14 03:50:32
Document Modified: 2018-12-14 03:50:32
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionFunding Opportunity Announcement (FOA) and solicitation of applications.
DatesThe Agency will finalize the application window by notice in the Federal Register and Grants.gov on February 22, 2019. Please note there are three funding categories with each category having different application windows. Please refer to the specific funding category for the appropriate application deadline.
ContactFor general inquiries, contact Chad Parker, Assistant Administrator Telecommunications Program, Rural Utilities Service, U.S. Department of Agriculture (USDA), email: [email protected], telephone (202) 720-9554. You may obtain additional information regarding applications at https:// reconnect.usda.gov.
FR Citation83 FR 64315 

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