Federal-State Joint Board on Universal Service, 65850-65861 [05-21728]
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65850
Federal Register / Vol. 70, No. 210 / Tuesday, November 1, 2005 / Rules and Regulations
pursuant to the Robert T. Stafford
Disaster Relief and Emergency
Assistance Act not in connection with a
flood) may legally be provided for
construction or acquisition of buildings
in identified SFHAs for communities
not participating in the NFIP and
identified for more than a year, on
FEMA’s initial flood insurance map of
the community as having flood-prone
areas (section 202(a) of the Flood
Disaster Protection Act of 1973, 42
U.S.C. 4106(a), as amended). This
prohibition against certain types of
Federal assistance becomes effective for
the communities listed on the date
shown in the last column. The
Administrator finds that notice and
public comment under 5 U.S.C. 553(b)
are impracticable and unnecessary
because communities listed in this final
rule have been adequately notified.
Each community receives 6-month,
90-day, and 30-day notification letters
addressed to the Chief Executive Officer
stating that the community will be
suspended unless the required
floodplain management measures are
met prior to the effective suspension
date. Since these notifications were
made, this final rule may take effect
within less than 30 days.
National Environmental Policy Act
This rule is categorically excluded
from the requirements of 44 CFR part
10, Environmental Considerations. No
environmental impact assessment has
been prepared.
Regulatory Flexibility Act
The Administrator has determined
that this rule is exempt from the
requirements of the Regulatory
Flexibility Act because the National
Flood Insurance Act of 1968, as
amended, 42 U.S.C. 4022, prohibits
flood insurance coverage unless an
appropriate public body adopts
adequate floodplain management
measures with effective enforcement
measures. The communities listed no
longer comply with the statutory
requirements, and after the effective
date, flood insurance will no longer be
available in the communities unless
remedial action takes place.
Regulatory Classification
This final rule is not a significant
regulatory action under the criteria of
Community
No.
State and location
section 3(f) of Executive Order 12866 of
September 30, 1993, Regulatory
Planning and Review, 58 FR 51735.
Paperwork Reduction Act
This rule does not involve any
collection of information for purposes of
the Paperwork Reduction Act, 44 U.S.C.
3501 et seq.
List of Subjects in 44 CFR Part 64.
Flood insurance, Floodplains.
Accordingly, 44 CFR part 64 is
amended as follows:
I
PART 64—[AMENDED]
1. The authority citation for Part 64
continues to read as follows:
I
Authority: 42 U.S.C. 4001 et seq.;
Reorganization Plan No. 3 of 1978, 3 CFR,
1978 Comp.; p. 329; E.O. 12127, 44 FR 19367,
3 CFR, 1979 Comp.; p. 376.
§ 64.6
[Amended]
2. The tables published under the
authority of § 64.6 are amended as
follows:
I
Date certain
Federal assistance no longer
available in
SFHAs
Current effective
map date
230251
January 29, 1976, Emerg; February 4,
1987, Reg; November 3, 2005, Susp.
02/04/1987 .......
11/03/2005
370178
Region I
Maine: Windsor, Town of, Kennebec County..
Region IV
North Carolina:
Jacksonville, City of, Onslow County. ...
Effective date authorization/cancellation of
sale of flood insurance in community
February 24, 1975, Emerg; February 15,
1985, Reg; November 3, 2005, Susp.
June 15, 1990, Emerg; June 15, 1990, Reg;
November 3, 2005, Susp.
April 7, 1975, Emerg; July 2, 1987, Reg;
November 3, 2005, Susp.
March 17, 1980, Emerg; July 3, 1986, Reg;
November 3, 2005, Susp.
April 11, 1975, Emerg; October 18, 1983,
Reg; November 3, 2005, Susp.
11/03/2005 .......
Do.
......do ...............
Do.
......do ...............
Do.
......do ...............
Do.
......do ...............
Do.
North Topsail Beach, Town of, Onslow
County..
Onslow County, Unincorporated Areas.
370466
Richlands, Town of, Onslow County. ....
370341
Swansboro, Town of, Onslow County. ..
370179
370340
*do- = Ditto
Code for reading third column: Emerg.- Emergency; Reg.- Regular; Susp- Suspension.
Dated: October 25, 2005.
Michael K. Buckley,
Deputy Director, Mitigation Division, Federal
Emergency Management Agency.
[FR Doc. 05–21702 Filed 10–31–05; 8:45 am]
BILLING CODE 9110–12–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 54
[CC Docket Nos. 96–45; 02–6; WC Docket
02–60; 03–109; FCC 05–178]
Federal-State Joint Board on Universal
Service
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
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SUMMARY: In this document, the
Commission takes immediate steps to
assist the victims of Hurricane Katrina
by making available approximately $211
million of targeted support from the
Universal Service Fund (‘‘USF’’) for
reconstruction and remediation relating
to the restoration of telecommunications
services. We expect that these measures
will help the victims of Hurricane
Katrina recover from the catastrophic
damage and help the affected
communities rebuild.
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Federal Register / Vol. 70, No. 210 / Tuesday, November 1, 2005 / Rules and Regulations
DATES:
Effective October 14, 2005.
FOR FURTHER INFORMATION CONTACT:
Mika Savir, Attorney, Wireline
Competition Bureau,
Telecommunications Access Policy
Division, (202) 418–7400, TTY (202)
418–0484. For additional information
concerning the information collection(s)
contained in this document, contact
Judith-B. Herman at (202) 418–0214, or
via the Internet at JudithB.Herman@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Order, in
CC Docket Nos. 96–45; 02–6; WC Docket
02–60; 03–109; FCC 05–178, released
October 14, 2005. The full text of this
document is available for public
inspection during regular business
hours in the FCC Reference Center,
Room CY–A257, 445 12th Street, SW.,
Washington, DC 20554.
I. Introduction
1. In this Order, we take immediate
steps to assist the victims of Hurricane
Katrina by making available
approximately $211 million of targeted
support from the Universal Service
Fund (‘‘USF’’) for reconstruction and
remediation relating to the restoration of
telecommunications services. We expect
that these measures will help the
victims of Hurricane Katrina recover
from the catastrophic damage and help
the affected communities rebuild. As
explained below, because of the exigent
circumstances, we find good cause to
adopt temporary order without noticeand-comment in order to assist the
Nation’s disaster relief effort.
II. Order
A. Waiver Standard
2. Generally, the Commission’s rules
may be waived for good cause shown.
Waiver of the Commission’s rules is
therefore appropriate only if special
circumstances warrant a deviation from
the general rule, and such deviation will
serve the public interest. As we discuss
in more detail below, we find that the
catastrophic damage to lives and
property as a result of Hurricane Katrina
in the Gulf Coast states and the need for
expedited restoration of
communications presents special
circumstances for waiving certain
universal service rules and that such a
waiver is in the public interest.
3. We find that it is appropriate to
implement these rules, effective upon
release of this Order, on a temporary
basis to expand funding in the affected
areas. We find that the circumstances
caused by Hurricane Katrina create a
special need for the Commission to use
its discretion to provide universal
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service support to health care providers
in the affected areas. This support is
necessary to address the unique
circumstances faced by health care
providers, schools, libraries, service
providers, and low-income consumers
in the states of Alabama, Louisiana, and
Mississippi, and the areas where
evacuees have relocated. The temporary
order represents our recognition of the
vital role played by telecommunications
and by telemedicine in responding to
the needs in the communities affected
by Hurricane Katrina. The temporary
order also furthers the Commission’s
core responsibility to make available a
rapid nationwide network for the
purpose of responding to national crisis
situations. For all of these reasons, we
find this interim relief to be in the
public interest.
B. Lifeline/Link-Up Support
1. Need for and Description of
Temporary Order
4. In this Order, we adopt temporary
modifications to the low-income
program rules to improve the
effectiveness of the low-income support
mechanism at meeting the needs of
victims of Hurricane Katrina. Since its
inception, Lifeline/Link-Up has
provided support for telephone service
to millions of low-income consumers.
Nationally, the telephone penetration
rate is 92.4 percent, in large part due to
the success of the Lifeline/Link-Up
program and our other universal service
programs. In light of the catastrophic
damage caused by the worst natural
disaster this country has faced,
thousands of people remain without
basic telephone service. Unless
addressed, this lack of access to
telecommunications will lengthen the
already-long period of time anticipated
for recovery from the damage caused by
Hurricane Katrina.
5. As discussed in more detail below,
in this section, we take two steps to
address this significant problem
affecting thousands of people. First,
under the Lifeline program, we provide
for temporary support under the federal
Lifeline program for eligible
telecommunications carriers making
available a wireless service consumer
offering to victims of Hurricane Katrina.
Second, we provide support under the
federal Link-Up program to hurricane
victims moving to temporary housing
arrangements and to those who return to
permanent residences in the affected
areas. To ensure victims of Hurricane
Katrina in need of help receive this
assistance, we base the eligibility
criteria for these initiatives on those
used by FEMA to provide individual
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disaster housing assistance to these
people and entities.
6. In crafting the temporary order, we
are informed by the principles of section
254 and our low-income program rules.
Section 254(b) establishes principles
upon which the Commission shall base
policies for the preservation and
advancement of universal service.
Among other things, these principles
state that consumers in all regions of the
Nation, including low-income
consumers, should have access to
telecommunications and information
services that are reasonably comparable
to those services provided in urban
areas and that are available at rates that
are reasonably comparable to rates
charged in urban areas. These principles
also recognize that ensuring rates are
affordable is a national priority. In light
of these principles, we conclude that
modifying the low-income program by
providing for a wireless service federal
Lifeline consumer offering and
providing support under the federal
Link-Up program for connection
charges, on a temporary basis, is
necessary to assist the disaster recovery
efforts related to Hurricane Katrina.
7. Thousands of people left their
homes because of the hurricane. Many
of these people are in temporary shelters
or in the process of finding interim
housing and may be without a
permanent home or employment for a
period of time. To facilitate the access
of evacuees and other displaced persons
to telecommunications services, any
person approved for individual FEMA
housing assistance or determined by
FEMA to be eligible for such individual
housing assistance relating to the
hurricane will be eligible for federal
Lifeline support for a free wireless
handset and a package of at least 300
minutes of use, not to exceed $130 per
household, until March 1, 2006.
8. We find that $130 per household is
a reasonable amount of support for the
purchase of a handset and at least 300
minutes based on the variety of the
competitive plans available to
consumers throughout the United
States. We note that at least one wireless
provider has indicated this amount of
support is sufficient to serve lowincome consumers. Moreover, we find
that a minimum of 300 minutes of use
per household will facilitate evacuees
and those remaining in the affected
areas to reconnect with loved ones, and
make living, housing, and work
arrangements in the wake of the
hurricane. In addition, we expect that
upon expiration, customers will retain
the wireless phone and in many
instances, be able to purchase additional
minutes at discounted rates. Such
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support will help consumers reconnect
to the telecommunications network as
the disaster-struck areas are rebuilt. For
purposes of this Order, we define
‘‘household’’ as one adult and his/her
dependents, living together in the same
residence. We recognize that many
families that normally live together as
one household have been separated due
to the hurricane and the evacuation
process and may represent more than
one household for this temporary
Lifeline support. Our intent in
providing this support is to assist
hurricane victims, regardless of whether
they are in an intact household,
separated from family temporarily, or
otherwise. To work within the
parameters of the existing program, we
will order this temporary support
available to ETCs providing the
supported wireless service consumer
offering. We note that to receive the
temporary support, wireless carriers
cannot require consumers to enter into
a long-term contract or require service
beyond 300 minutes or March 1, 2006,
whichever is shorter.
9. We find that these modifications
are economically reasonable and
consistent with the existing framework
of the program rules. Under the Lifeline
program, low-income consumers could
receive up to $10 per month or $120 per
year. Under the temporary order,
qualifying consumers would receive a
$130 benefit, which would also include
a handset. We note that this relief,
combined with the action we took
earlier with regard to waiver of the
geographic porting requirements, would
allow evacuees to maintain their home
phone numbers, and promote continuity
with regard to personal contacts,
employment, education, and housing.
Under the unique and devastating
circumstances caused by the hurricane
and its aftermath, we conclude that
provision of this support, including a
free wireless handset, is consistent with
the purpose of section 254 because it is
reasonably necessary to ensure that low
income consumers have immediate
access to telecommunications services.
We further find that this support fulfills
the Commission’s broader mandate to
make wire and radio communication
service available to all people of the
United States, and to promote the safety
of life and property. We use our
ancillary authority under Title I to
include a free wireless handset.
10. We also adopt temporary order for
the Link-Up program to pay for certain
costs to connect victims of the hurricane
to the network. Specifically, we will
provide funding under the Link-Up
program to eligible telecommunications
carriers to receive, upon submission of
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an application and any necessary
documentation, $30.00 per qualifying
household for commencing
telecommunications service for a single
telecommunications connection at any
temporary housing arrangements. To
ensure this temporary support is
targeted to those victims of Hurricane
Katrina moving to temporary housing
arrangements (e.g., trailer parks or other
temporary housing facilities), we will
make this support available from release
of this Order through March 1, 2007. In
addition, we will also permit, under the
Link-Up program, eligible
telecommunications carriers to receive
(upon submission of an application and
any necessary documentation to the
Administrator) $30.00 per qualifying
household returning to a primary
residence in the Hurricane Katrina
disaster area for commencing
telecommunications service for a single
telecommunications connection,
including the reconnection of service
disconnected as a result of Hurricane
Katrina. Based on the numbers provided
by FEMA, we estimate that up to
370,000 households would be eligible
for this temporary Link-Up support at
an estimated total cost of approximately
$12 million.
2. Applicable Time Period
11. Hurricane victims need access to
telephone service, particularly in this
emergency situation. Carriers operating
in the disaster areas in Alabama,
Louisiana, and Mississippi, as well as in
any state where people have been
temporarily relocated, e.g., Texas,
should have the opportunity to assist
hurricane victims and receive
appropriate temporary USF support
payments. Accordingly, we find that
due to this emergency situation, good
cause exists for adopting these
temporary Lifeline rules, which will
expire on March 1, 2006, specifically for
free wireless handsets, and at least 300
free minutes per household for
displaced persons, whether they
relocate within the three affected states,
relocate to another state outside of the
area, or return home after telephone
service has been disconnected. We also
find that good cause exists to adopt
temporary Link-Up rules, as discussed
above, which will expire on March 1,
2007.
12. Link-Up support funding is
available from the release date of this
Order until March 1, 2007. Any eligible
application for Link-Up support
postmarked by March 1, 2007 will
receive the special Link-Up support
described above. Wireless Lifeline
support is available from the release
date of this Order until March 1, 2006.
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Any eligible application for support
postmarked by March 1, 2006 is eligible
for the Wireless Lifeline support
described above.
3. Eligibility
13. As discussed above, any person
approved for FEMA disaster assistance
or determined by FEMA to be eligible
for individual assistance relating to the
hurricane will be eligible for temporary
federal Lifeline and Link-Up support, on
a per household basis. Section 254(e) of
the Communications Act of 1934, as
amended, provides that ‘‘only an
eligible telecommunications carrier
designated under section 214(e) shall be
eligible to receive specific Federal
universal service support.’’ We adopt
several conditions to ensure that this
Lifeline and Link-Up temporary support
is used solely to assist victims of
Hurricane Katrina. First, this Lifeline
and Link-Up support is only available to
consumers approved for FEMA disaster
housing assistance or determined by
FEMA to be eligible for housing
assistance relating to the hurricane.
FEMA’s rules target housing assistance
to individuals and households who are
harmed by a disaster and generally have
limited means. For example, housing
assistance is generally not available to
individuals who have adequate rent-free
housing accommodations. To ensure
this support is targeted to those
consumers with the greatest need, we
are making this temporary support
available to those consumers
determined to be eligible for FEMA
disaster housing assistance and who do
not have any obligation under FEMA
rules to repay FEMA for the support.
Because this is temporary support
intended to assist in disaster relief and
restoration, we limit this Link-Up
support to one connection for temporary
housing and one reconnection (per
household) for hurricane victims
determined to be eligible for individual
assistance under FEMA rules (and who
have no obligation to repay the funds to
FEMA) returning to permanent
residences in the FEMA-designated
Hurricane Katrina disaster area. We
limit the Lifeline support to a free
wireless handset and at least 300 free
minutes. Second, the temporary LinkUp support for reconnections is
available only for circumstances where
the consumer was disconnected from
service because of the hurricane or
subsequent flooding. Third, we require
consumers qualifying for this support to
provide documentary evidence to the
ETC serving them to demonstrate that
FEMA determined they were eligible for
individual disaster housing assistance.
Proof of FEMA’s determination of
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eligibility for individual housing
disaster assistance without repayment
obligations is sufficient. We anticipate
that the households that will receive
support under the temporary order
would have received support under the
existing low-income program rules if
they obtained telephone service. We
note, however, that our Link-Up rules
place certain restrictions on the number
of times at the same residence a lowincome consumer may qualify for
support. We therefore clarify that this
temporary Link-Up support will be
available both for temporary housing
arrangements and for eligible hurricane
victims returning to permanent
residences in the Hurricane Katrina
disaster area.
14. By adopting these temporary
modifications to our Lifeline and LinkUp programs, we are working within the
existing parameters of the low-income
program. The Commission has long
relied on participation in means-tested
programs, such as participation in the
food stamps program, to determine
eligibility in our low-income program.
In 2004, the Commission expanded
eligibility for the low-income program
when it acted upon the Federal-State
Joint Board’s recommendation to
expand the federal default eligibility
criteria to include an income-based
criterion and additional means-tested
programs. Under the existing rules, in
cases where a state does not mandate
state Lifeline support, the Commission’s
rules rely on other means-tested federal
assistance programs (e.g., Temporary
Assistance to Needy Families, Federal
Public Housing Assistance, Low Income
Home Energy Assistance Program, and
the National School Lunch Program’s
free lunch program) to determine
eligibility criteria for the low-income
program. The approach we adopt here,
i.e., relying on FEMA determinations
that a consumer is eligible for certain
individual disaster assistance program,
is consistent with our general approach
of using federal assistance programs to
determine consumer eligibility for our
low-income program. By relying on
FEMA determinations of household
eligibility for disaster housing
assistance, we are targeting this support
to households struck by Hurricane
Katrina, and we are using FEMA’s
determinations as a need-based program
for determining low-income programs
eligibility.
15. There are approximately 65
wireless carriers designated as ETCs in
the states of Alabama, Louisiana, and
Mississippi. We recognize that these
ETCs, as well as wireless carriers
currently designated as ETCs in other
states, may not be sufficient to
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implement the temporary order in time
to help with Hurricane Katrina disaster
relief or may not be certified in areas
where they now need to provide service.
In order to effectively and efficiently
implement the temporary order, we
forbear for the purposes of this special
relief, until March 1, 2006, from section
254(e)’s requirement that ‘‘only an
eligible telecommunications carrier
designated under section 214(e) shall be
eligible to receive specific Federal
universal service support.’’ We establish
the following alternative designation
process for temporary ETCs to provide
the specific Lifeline support described
in this Order.
16. Section 10 of the Act requires that
the Commission forbear from applying
any regulation or any provision of the
Act to telecommunications services or
telecommunications carriers if the
Commission determines that the three
conditions set forth in section 10(a) are
satisfied. We find the requirements of
section 10(a) are met to forbear from the
ETC requirement until March 1, 2006,
because of the limited and temporary
nature of the support as well as the
narrow application of the universal
service support to only Lifeline
customers. Section 10(a)(1) is satisfied
because temporary forbearance from the
ETC requirement will enhance the
charges and practices of
telecommunications carriers as it relates
to Lifeline customers because it expands
the scope of telecommunications
services available to these consumers.
Without such support, many of the
affected consumers would be left with
limited or no access to
telecommunications services. In
addition, because we specifically
include a handset and a minimum of
300 minutes of wireless service and thus
tailor the Lifeline support to the affected
consumers, we do not believe that the
additional safeguards afforded by the
traditional ETC designation requirement
are necessary for the protection of
consumers. Thus, forbearance also
satisfies section 10(a)(2). Further, under
the alternative temporary ETC
designation process that we establish
herein, the Commission will review
each offering to determine whether it
complies with our requirements. This
review will allow us to ensure that
affected consumers are provided with
affordable access to the
telecommunications network. Finally,
we find our actions here today to be
most consistent with the public interest
and determine that the additional
safeguards afforded by ETC designation
under section 214 work against the
public interest in this limited
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circumstance. Under the normal
designation process, carriers would be
required to submit a detailed
application that addresses not only the
Lifeline assistance but also the other
requirements of serving as an ETC. By
streamlining the process, and expediting
our review, we will enable carriers to
provide access to telecommunications to
affected consumers as quickly as
possible. Thus, we find that section
10(a)(1) through (3) are satisfied and
temporary and conditional forbearance
is appropriate.
17. Carriers seeking to be designated
a temporary ETC to offer the special
Lifeline support described in this Order
must submit to the Commission a
detailed description of the plan,
including how many and type of
minutes offered, the brand and model of
the handset(s), the carrier’s licensed
service area, and any limitations or
conditions associated with the plans. In
addition, consistent with the
Commission’s ETC precedent, the
petition must include (1) a certification
that the petitioner intends to offer
Lifeline services to qualifying
subscribers consistent with this Order;
and (2) a description of how the
petitioner intends to advertise the
availability of the Lifeline service. Upon
submission, the Commission will
conduct an expedited review to ensure
compliance with our rules. Within ten
days, the Commission will determine
whether the offering complies with this
Order and whether the carrier will be
temporarily designated as an ETC for
purposes of providing the Lifeline
support set out in this Order.
18. We acknowledge that some
FEMA-eligible subscribers may already
possess a handset and not need an
additional handset. In those instances,
and at the subscriber’s discretion, the
subscriber may opt against receiving a
new handset and opt instead for a
Lifeline-supported package of greater
than 300 minutes and the ETC may still
receive support not to exceed $130 for
its Lifeline package. Further, it is
acceptable for a carrier to offer a plan
that includes a handset and a package
of some greater amount of minutes (e.g.,
500, 750, or 1000 minutes or more) for
the $130 in support. Additionally, a
subscriber may opt for a plan that
exceeds the $130 limit for a minimum
of 300 minutes of use and a handset, but
nevertheless use the $130 towards the
higher minutes of use plus handset
plan. This flexibility to the plan will
allow eligible customers to purchase
packages with more minutes of use,
including packages that require the
subscriber to pay any additional amount
over the $130 threshold. Through this
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temporary change to the federal
Lifeline/Link-Up support program, it is
our intent and purpose through this
wireless option to give access to affected
subscribers with no out-of-pocket costs.
The eligible customer, however, may
choose otherwise by, for example,
forgoing the handset in exchange for
more minutes of use.
19. We balance the need for quick and
decisive action with our overarching
goals of protecting the program from
waste, fraud, and abuse. For that reason,
we require applicants for the temporary
Lifeline support pursuant to this Order
to certify that they were residents of
counties that are designated by FEMA as
eligible for individual assistance, that
they are the head of their household,
and that they are only receiving one
Lifeline special support package.
Applicants seeking Link-Up support
must certify that they were residents of
counties that are designated by FEMA as
eligible for individual assistance. We
require ETCs receiving this temporary
support to maintain all necessary
documentation to verify that the support
was used for the intended purpose of
assisting victims of Hurricane Katrina.
We also subject all ETCs receiving this
temporary support to potential audit,
and we require all carriers receiving $1
million or more of this support to
undergo an audit or other investigatory
review by the Commission’s OIG (or the
Administrator working under the
oversight of the OIG) to verify the
accuracy of all data submitted and that
the support was used for intended
purposes and to validate that the
eligible telecommunications carrier has
not obtained double-recovery from a
single household.
20. We find this action necessary to
assist in the Hurricane Katrina disaster
relief effort. Offering temporary support
for this wireless service consumer
offering will not only assist in the
recovery from the economic damages
caused by the hurricane, but it will
promote public safety by ensuring that
disaster victims have ready access to
E911 capabilities in the event of
emergency. We stress that this
temporary designation to operate as an
ETC solely for this temporary support
mechanism does not grant or otherwise
deem the carrier an ETC for any other
USF support mechanism. Nor does this
temporary designation prejudge or
suggest that any application currently
pending or to be filed in the future with
the state commissions or the
Commission results in designation as an
ETC.
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C. Health Care Support
1. Need for and description of
Temporary Order
21. In light of the compelling and
unique circumstances caused by
Hurricane Katrina, we find that it is
necessary to adopt temporary order,
pursuant to section 254(h)(2)(A), to
provide public and nonprofit health
care providers—in both non-rural and
rural areas—in the affected areas and in
areas where evacuees have relocated, as
detailed below, with a 50 percent
discount off the monthly cost of
advanced telecommunications and
information services necessary for the
provision of health care services to
victims of Hurricane Katrina. The
temporary order discussed below
applies to health care providers in the
federally declared Hurricane Katrina
disaster areas in the states of Alabama,
Louisiana, and Mississippi and in areas
where evacuees have relocated as
detailed below. Specifically, all rural
and non-rural nonprofit and public
health care providers, as defined in
§ 54.601(a)(2), located within the states
of Alabama, Louisiana, and Mississippi
are eligible for this additional support.
We establish different geographic
eligibility criteria for the Health Care
initiative because of the ability to use
distance medicine applications to treat
Hurricane Katrina victims. Furthermore,
because the residents of the most
devastated areas will likely have to
relocate for an extended period of time,
we expand eligibility for the purposes of
the temporary order to the rural and
non-rural nonprofit and public health
care providers located in areas that are
likely to receive most of the citizens
evacuated from the hardest hit areas.
Initial reports show these areas to
include all counties in Texas and
Arkansas that are contiguous with
Louisiana and Mississippi; the counties
of Escambia, Santa Rosa, Okaloosa,
Walton, and Bay in Florida; the counties
of Harris, Dallas, Tarrant and Bexar in
Texas; the county of Pulaski in
Arkansas; and the county of Shelby in
Tennessee. In addition, we find that
rural and non-rural health care
providers outside of these areas may be
eligible for support to the extent they
serve a substantial number of the
evacuees when compared to their usual
number of patients. Health care
providers that believe they are eligible
under this standard should file a request
with the Commission. We note that this
temporary support does not extend to
private or for-profit health care
providers.
22. American Red Cross and other
shelters are providing food, water,
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shelter and physical and mental health
services to evacuees. Tens of thousands
of people displaced from their homes
have taken refuge in shelters in several
states. Accordingly, for the purposes of
the temporary order, we find it in the
public interest that American Red Cross
or other shelters that also offer medical
services are eligible for funds as
community health centers or
community mental health centers to the
extent they serve a significant number of
disaster victims using advanced
telecommunications and information
services for telemedicine applications.
23. We also clarify that temporary or
mobile health care providers are eligible
for support under the 50 percent
discount rule we adopt in this Order. As
we noted in the Rural Health Care
Second Report and Order, 70 FR 6365,
February 7, 2005, mobile health care
providers can provide essential health
care services to underserved
populations in remote locations. Given
the extensive damage to many health
care facilities due to Hurricane Katrina,
we envision that the recovery and
rebuilding effort will require the use of
temporary mobile health facilities due
to the lack of permanent health care
facilities. Furthermore, many evacuees
may be housed for some time in
temporary shelters, and health care
might be brought to these people via
mobile health care providers. The
receipt of universal service funding will
better enable mobile health care
providers to rapidly diagnose and treat
patients in the affected areas. We find
this rule to be in the public interest
because it will provide maximum
flexibility to mobile health care
providers to use the most-effective
technology to provide service to
hurricane victims, whether it is satellite,
wireline, or wireless. In the Rural
Health Care Second Report and Order,
we established a methodology for
calculating support that established
discounts for rural mobile health care
providers at the difference between the
rate for satellite service and the rate for
an urban wireline service with a similar
bandwidth. We find that such a
calculation is not necessary here
because, under the rules we adopt
today, mobile health care providers will
receive 50 percent discount off the cost
of advanced telecommunications and
information services.
24. In section 254 of the
Telecommunications Act of 1996,
Congress sought to provide rural health
care providers ‘‘an affordable rate for the
services necessary for the purposes of
telemedicine and instruction relating to
such services.’’ Specifically, Congress
directed telecommunications carriers
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‘‘[to] provide telecommunications
services which are necessary for the
provision of health care services in a
State, including instruction relating to
such services, to any public or nonprofit
health care provider that serves persons
who reside in rural areas in that State
at rates that are reasonably comparable
to rates charged for similar services in
urban areas in that State.’’ Congress also
provided the Commission with
authority to enhance access to advanced
telecommunications and information
services for health care providers.
25. The Commission implemented
this statutory directive by adopting the
rural health care support mechanism in
the 1997 Universal Service Order, 62 FR
32862, June 7, 1997. In the Rural Health
Care Report and Order, the Commission
provided a 25 percent discount off the
cost of monthly Internet access for
eligible rural health care providers
under section 254(h)(2)(A).
Subsequently, on December 17, 2004,
the Commission released a Rural Health
Care Second Report and Order, 62 FR
32862, June 7, 1997, that, among other
actions, changed the definition of
‘‘rural’’ for the purposes of the rural
health care support mechanism. The
Commission also expanded funding for
mobile rural health care providers by
subsidizing the difference between the
rate for the satellite service and the rate
for an urban wireline service with a
similar bandwidth. In addition, on
reconsideration, the Commission
revised its rules to permit rural health
care providers in states that are
‘‘entirely rural’’ to receive a 50 percent
discount for advanced
telecommunications and information
services under section 254(h)(2)(A).
26. As the Commission has
recognized in the past, access to
advanced telecommunications services
and information services presents the
most efficient, cost-effective way to
provide many telemedicine services.
Specifically, telemedicine programs
enable patients to receive health care
services across distances that might
otherwise be unaffordable, or physically
impracticable or impossible to cross. For
example, health care providers can use
advanced telecommunications services
to transmit x-rays and other medical
information in real-time to doctors
located in other areas for diagnosis and
recommendations. Thus, patients
benefit from access to timely health care
services while they are spared the
expense of lost wages and long-distance
travel. In this instance, residents of the
affected areas might be unable to travel
for health care services because, for
example, vehicles were lost in the
flooding or gasoline is in short supply.
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Additionally, mobile health care
providers can deliver cutting-edge
technology and specialty care to citizens
who are still living in areas that were
damaged by the hurricane. These mobile
clinics literally can mean the difference
between life and death for many people
who are unable to travel to see a
physician. Furthermore, universal
service support for advanced
telecommunications and information
services will enable health care
providers in the affected areas to utilize
their limited resources to provide
additional care for hurricane victims
and other patients.
27. We find that it is appropriate to
adopt these rules on a temporary basis
to expand funding to health care
providers in the affected areas under
section 254(h)(2)(A). As the Commission
has determined in the past, we have the
authority to provide funding for the
provision of advanced
telecommunications and information
services under section 254(h)(2)(A).
Section 254(h)(2)(A) allows the
Commission to establish competitively
neutral rules to enhance access to
advanced telecommunications and
information services for health care
providers. Furthermore, section
254(h)(2)(A) gives the Commission
broad discretionary authority to fulfill
this statutory mandate. In prior orders,
we have established rules under section
254(h)(2)(A) that further the
Commission’s mission of funding
telecommunications and information
services in order to promote
telemedicine. By adopting the
temporary order, therefore, we are
working within the existing parameters
of the rural health care program. We
find that the circumstances caused by
Hurricane Katrina create a special need
for the Commission to use its discretion
to provide universal service support to
health care providers in the affected
areas.
28. Section 254(h)(2)(A) allows the
Commission to establish competitively
neutral rules to enhance access to
advanced telecommunications and
information services to the extent those
rules are technically feasible and
economically reasonable. We find that
providing universal service support as
discussed herein is both technically
feasible and economically reasonable.
Access to these services is technically
feasible because eligible health care
facilities either are already being
provided or were being provided
advanced telecommunications and
information services prior to the
hurricane. In addition, the
Commission’s actions are economically
feasible, in light of the circumstances.
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65855
First, the temporary support is for a
limited amount of services used for the
express purpose of treating disaster
victims, i.e., advanced
telecommunications and information
services used in telemedicine
applications. Second, we estimate that
we would disburse approximately $28
million in support under the temporary
order. The Commission has established
a cap of $400 million for the rural health
care support mechanism. Given that
currently the program is disbursing
about $30 million a year, we do not
envision that the additional funding
provided for in this Order will exceed
the Commission’s cap. We further note
that we are not funding all
telecommunications services, as
provided for under 254(h)(1)(A), but
only advanced telecommunications and
information services that are used
directly to provide telemedicine
services to treat patients. Third, based
on past experience, we believe a flat 50
percent discount is easy to administer
and consistent with section 254(h)(5),
which requires a specific, sufficient and
predictable mechanism. Fourth, the 50
percent discount limits the amount of
support per provider, provides
incentives for health care providers to
make prudent economic decisions
concerning their telemedicine needs
and will deter wasteful expenditures.
Finally, we find that a 50 percent
discount is slightly less than the average
discount rural health care providers
current receive for telecommunications
services under section 254(h)(1)(A).
29. We find that both rural and nonrural health care providers in affected
areas should be eligible for this
temporary support. Section 254(h)(1)(A)
limits support to health care providers
in ‘‘rural’’ areas. In allowing the
Commission discretion to establish
competitively neutral rules to enhance
access to advanced telecommunications
and information services under section
254(h)(2)(A), however, Congress did not
specifically limit such access to rural
health care providers. Thus, we find
that providing health care universal
service support to public or nonprofit
health care providers that are not
necessarily serving ‘‘rural areas,’’ as
defined in the 2004 Rural Health Care
Second Report and Order, is consistent
with federal court precedent and the
mechanism’s goal to provide health care
providers with access to modern
telecommunications for medical and
health maintenance purposes. These
areas have experienced the destruction
of the telecommunications network
infrastructure and the obliteration of
many buildings, including homes,
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medical, and other professional
facilities, as well as the displacement of
a significant percentage of the
population. Therefore, we find that, in
light of these extraordinary
circumstances, both rural and non-rural
health care providers are eligible to
receive rural health care universal
service support to serve the medical
needs in the affected areas. Consistent
with the Commission’s principles of
competitive neutrality, we find that
eligible health care providers may
receive discounts for any advanced
telecommunications and information
service, regardless of the platform as
long as these services are used to treat
disaster victims with telemedicine
applications.
30. In administering the universal
service fund, we must ensure that the
goals of section 254 are met while
preventing waste, fraud, and abuse. For
this reason, health care providers
seeking support pursuant to this Order
shall certify that they meet the
eligibility requirements outlined herein.
We also note that our rules require
applicants to select the most costeffective, commercially available
service. We will carefully monitor the
use of funds disbursed to eligible
entities under these new rules to ensure
that all support is utilized in accordance
with Commission rules, and to ensure
that service providers do not charge
unjust or unreasonable rates or seek to
lock health care providers into longterm contracts beyond Funding Year
2005. We reserve the right to recover
any monies not used for their intended
purposes or, upon review, we determine
were used wastefully.
2. Applicable Time Period
31. To qualify for this support, a
health care provider should submit
documentation to demonstrate that it
used advanced telecommunications and
information services for telemedicine
applications and to treat victims of
Hurricane Katrina. The health care
provider should also certify that it used
the services for the intended purposes.
Such health care providers should
comply with the program’s document
retention requirements and should
maintain sufficient documentation to
demonstrate the reasonableness of costs
in light of the exigent circumstances. As
noted above, all parties are subject to
potential audit by the Commission’s
OIG (or the Administrator working
under the OIG’s oversight), and any
party receiving more than $1 million in
support will be automatically audited.
32. As noted below, the temporary
order is effective immediately upon
release of this Order and continues
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through the end of Funding Year 2005.
Temporary health care support funding
is available from August 29, 2005 until
June 30, 2006, which is the end of
Funding Year 2005. Further, all health
care providers eligible under these new
rules are permitted to amend their
Funding Year 2005 applications to
apply for additional support, no later
than 60 days after the release of this
Order. Applicants seeking support to
obtain advanced telecommunications
and information services for
telemedicine applications used to treat
victims of Hurricane Katrina should
submit their FCC Form 465 postmarked
no later than 60 days after release of this
Order. Applicants should comply with
all program rules and requirements,
including the competitive bidding
requirements.
D. Schools and Libraries Support
1. Need For and Description of
Temporary Order
33. In this Order, we adopt temporary
modifications to the schools and
libraries universal service support
mechanism to meet the needs of schools
and libraries damaged by Hurricane
Katrina. Approximately 600 schools and
libraries in Alabama, Louisiana, and
Mississippi may have been affected by
the hurricane and subsequent flooding.
Many schools and libraries in other
states, although not damaged by the
hurricane, have an influx of hurricane
evacuee students (and library patrons).
We are, on our own motion, waiving
certain rules relating to the schools and
libraries universal service support
mechanism (commonly referred to as
the E-rate program) on an emergency
interim basis, as described below.
Waiver of these rules will preserve and
advance universal service by allowing
schools and libraries in affected areas to
restore quickly their ability to provide
students and communities with needed
telecommunications and information
services.
34. Specifically, we (1) re-open the
Funding Year 2005 filing window for
schools and libraries, and consortia of
schools and libraries, that were directly
or indirectly affected by Hurricane
Katrina; (2) treat all schools and
libraries directly affected by Hurricane
Katrina at the highest level of priority
for Priority Two services (i.e., 90
percent) for Funding Years 2005 and
2006; (3) allow affected parties in
eligible counties/parishes in Alabama,
Louisiana, and Mississippi to ‘‘restart
the clock’’ for the purposes of
calculating compliance with the ‘‘twoin-five’’ rule; (4) allow program
participants in affected areas to
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substitute services or products in one
broad category for another; and (5) allow
schools and libraries serving displaced
students and citizens to amend their
Funding Year 2005 applications to
account for the unexpected increase in
population by filing a special
supplementary FCC Form 471 request
for additional funding.
35. In taking these actions, we balance
the need for quick and decisive action
to restore the provision of
telecommunications and information
services to schools and libraries with
our overarching need to protect the
program against waste, fraud, and abuse.
We emphasize, however, that we will
continue to be vigilant to ensure
program integrity and to detect and
deter waste, fraud, and abuse, and
pursue enforcement action when
appropriate. Our intent is not to allow
double recovery for damages related to
telecommunications and information
services equipment funded under the
schools and libraries universal service
support mechanism. For this reason,
schools and libraries affected by
Hurricane Katrina requesting funding
for the restoration of their
telecommunications and information
systems pursuant to the direction
contained in this Order shall certify that
the school or library incurred
substantial damage as a result of
Hurricane Katrina and that the services
and products sought in their
applications will be solely used to
restore the network to the functional
equivalent of the pre-Katrina degree of
functionality (i.e., prior to August 29,
2005) and that other resources (e.g.,
insurance or public assistance monies
provided by FEMA) are not available for
restoration. In addition, schools and
libraries affected by Hurricane Katrina
shall certify that any alternative funding
(e.g., insurance payments, FEMA
support, community resources) in
excess of the cost for products or
services requested on their applications
will be returned to the federal Universal
Service Fund. To the extent that schools
and libraries are handling increased
populations of evacuees, schools and
libraries shall certify that: (1) There are
more than a de minimis number of
Hurricane Katrina victims; and (2) the
entity experienced an associated
increase in demand for supported
services.
36. At the outset, we note that, in a
number of instances, our rules explicitly
provide participants in the schools and
libraries program with specific
requirements for requesting extensions
of deadlines or waivers of certain
Commission rules due to the occurrence
of unforeseen events such as Hurricane
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Katrina. Thus, we emphasize that the
actions taken here do not represent the
entirety of the relief that may be
available to E-rate program participants
in affected areas. We are committed to
addressing all requests for hurricane
assistance in an expeditious manner.
37. Under the Commission’s rules,
universal service funds are available to
fund discounts for eligible schools and
libraries and consortia of such eligible
entities on a first-come, first-served
basis. Each year, the Administrator
implements an initial filing period that
treats all schools and libraries filing
within that period as if their
applications were simultaneously
received. The initial filing period begins
on the date that the Administrator
begins to receive applications for
support, and concludes on a date to be
determined by the Administrator.
38. In light of the extensive property
damage, including damage to the
telecommunications and information
systems employed by participants in the
schools and libraries universal service
support mechanism, caused by
Hurricane Katrina in the Gulf Coast
states, we waive section 54.507(c) of our
rules and re-open the Funding Year
2005 filing window for schools and
libraries, and consortia of schools and
libraries, that were directly or indirectly
affected by Hurricane Katrina to the
extent set forth in this Order. The filing
window shall be open for sixty days
following the date of release of this
Order. By waiving § 54.507(c) of our
rules, and reopening the filing window
for Funding year 2005 for schools and
libraries affected directly by Hurricane
Katrina, affected program participants in
Alabama, Louisiana, and Mississippi
can begin repairing and restoring
needed telecommunications and
information services quickly and
rapidly. Moreover, as described more
fully below, we recognize that certain
schools and libraries may require
additional funding to support the needs
of students and citizens displaced by
Hurricane Katrina although they have
not been directly affected by these
events. Accordingly, for the reasons
stated above, we find that due to this
natural disaster, good cause exists for
waiving § 54.507(c) for these schools
and libraries and that such waiver is in
the public interest.
39. Under the Commission’s rules,
eligible schools and libraries may
receive discounts ranging from 20
percent to 90 percent of the prediscount price of eligible services, based
on indicators of need. Schools and
libraries in areas with higher
percentages of students eligible for free
or reduced-price lunch through the
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Jkt 208001
National School Lunch Program (or a
federally approved alternative
mechanism) qualify for higher discounts
for eligible services than applicants with
low levels of eligibility for such
programs. Schools and libraries located
in rural areas also generally receive
greater discounts. The Commission’s
priority rules provide that requests for
telecommunications services, voice mail
and Internet access for all discount
categories shall receive first priority for
the available funding (Priority One
services). The remaining funds are
allocated to requests for support for
internal connections (Priority Two
services), beginning with the most
economically disadvantaged schools
and libraries, as determined by the
schools and libraries discount matrix.
Currently, the most disadvantaged
schools and libraries are eligible for a 90
percent discount on eligible services,
and thus must pay only 10 percent of
the cost of the service. To the extent
funds remain after discounts are
awarded to entities eligible for a 90
percent discount, the rules provide that
the Administrator shall continue to
allocate funds for discounts to
applicants at each descending single
discount percentage. The Commission’s
rules also provide that if sufficient
funds do not exist to grant all requests
within a single discount percentage, the
Administrator shall allocate the
remaining support on a pro rata basis
over that single discount percentage
level.
40. In light of the extensive property
damage, including damage to the
telecommunications and information
systems employed by participants in the
schools and libraries universal service
support mechanism, caused by
Hurricane Katrina in the Gulf Coast
states, we find good cause to waive
§ 54.507 of our rules and treat all
schools and libraries directly affected by
Hurricane Katrina at the highest level of
priority for Priority Two services (i.e.,
90 percent) for Funding Years 2005 and
2006. We recognize that program
participants in Alabama, Louisiana, and
Mississippi most affected by Hurricane
Katrina may have need for an immediate
indication of whether they are likely to
receive funds for Priority Two services.
By waiving § 54.507 of our rules, and
treating all affected schools and libraries
at the highest level of priority, affected
program participants in Alabama,
Louisiana, and Mississippi can fully
anticipate the amount of funding they
will receive from the universal service
fund, and begin the task of developing
a cogent, feasible, and sustainable plan
to resume the provision of needed
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65857
telecommunications and information
services. We anticipate that treating all
affected schools and libraries at the
highest priority level could result in the
disbursement of approximately $96
million in E-rate funds for the
approximately 600 schools and libraries
in Alabama, Louisiana, and Mississippi
affected by Hurricane Katrina. We note
that these funds have already been
collected by the Universal Service Fund,
and would not have an impact on the
long-term viability of the universal
service program. Accordingly, we find
that good cause exists for waiving
§ 54.507 for affected entities and that
such waiver is in the public interest.
41. We expect that the neediest
schools and libraries will receive
requested funding for Funding Year
2005 for both Priority One and Priority
Two services. We note that, after
applications from the disaster-struck
schools and libraries are submitted and
reviewed, we may be able to authorize
funding nation-wide requests for any
deferred requests for Priority Two
internal connections service for Funding
Year 2005. The Commission’s rules
require the Administrator to report the
amount of unused funds available from
prior funding years on a quarterly basis.
Based on our past experience,
significant funds are identified as
available for use in future funding years.
In fact, the E-rate Coordinators from
Alabama, Louisiana, and Mississippi
estimate that unused funds from prior
funding years will be available to carry
over for Funding Year 2005 and could
be used to fund Hurricane Katrina
restoration. Because we are re-opening
the funding year 2005 filing window,
such funds previously identified as
unused by the Administrator may be
available to provide support to the
disaster-struck schools and libraries. We
recognize that demand for services from
the schools and libraries struck by
Hurricane Katrina may vary after these
entities complete their internal reviews
and prepare the necessary program
applications. We will closely monitor
this situation and, to the extent unused
funds from prior funding years are
available, we anticipate that these funds
will be used and that Priority Two
funding may be available for additional
applicants.
42. Finally, we note that the
Commission requires that an entity must
pay the entire undiscounted portion of
the cost of any services it receives
through the schools and libraries
program. Moreover, our rules prohibit
the provision of free services to an
eligible entity by a service provider that
is also providing discounted services to
the entity. The Commission has
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previously found that, for the purpose of
this program, the provision of unrelated
free services by a service provider to an
eligible entity constitutes a rebate of the
undiscounted portion of the costs of
services, in violation of our rules. We
clarify that to the extent schools and
libraries receive FEMA assistance for
projects, such assistance may be applied
to the undiscounted portion of the bill.
As part of our efforts to respond to the
damage caused by Hurricane Katrina,
we will continue to examine whether
waiver of this rule is warranted to aid
affected schools and libraries to restore
the provision of service to students and
communities.
43. Under the Commission’s rules,
eligible entities may receive
commitments for discounts on Priority
Two services (internal connections) no
more than twice every five funding
years (the ‘‘two-in-five’’ rule). For the
purpose of determining eligibility, the
five-year period may begin in any
funding year in which the school or
library receives discounted internal
connections services other than basic
maintenance services.
44. We find that due to the damage to
information and telecommunications
systems caused by Hurricane Katrina in
the Gulf Coast states, many participants
in the schools and libraries universal
service support mechanism are likely to
need to replace their internal
connections services, and thus will seek
commitments for discounts on Priority
Two services despite already receiving
such commitments in the recent past.
For these entities, we waive our rule
pertaining to the frequency of discounts
for internal connections services to
allow affected parties in Alabama,
Louisiana, and Mississippi to ‘‘restart
the clock’’ for the purposes of
calculating compliance with the ‘‘twoin-five’’ rule. For such participants,
Funding Year 2006 will thus serve as
the first year of the five-year period for
determining eligibility for funding for
these services. We recognize that
program participants in Alabama,
Louisiana, and Mississippi affected by
Hurricane Katrina may need funding to
replace damaged or destroyed internal
connections services, and should not be
denied support payments simply due to
the timing and frequency of previous
requests for funding for internal
connections. We limit this relief to
schools and libraries in the Hurricane
Katrina disaster area that incurred
substantial damage as a result of the
hurricane. Accordingly, for the reasons
stated above, we find that due to this
natural disaster, good cause exists for
waiving § 54.506(c) for affected entities
and that such waiver is in the public
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interest. To qualify for this waiver,
parties should submit a request
describing the damage incurred to the
equipment that needs to be replaced.
45. Section 54.504(f) of the
Commission’s rules allows the
Administrator to grant a request by an
applicant to substitute a service or
product for another where the service or
product has the same functionality; the
substitution does not violate any
contract provisions or state or local
procurement laws; the substitution does
not result in an increase in the
percentage of ineligible services or
functions; and the applicant certifies
that the requested change is within the
scope of the controlling FCC Form 470.
On our own motion, we waive the
requirement that, for purposes of
§ 54.504(f), the substituted service or
product must have the same
functionality as the service it is
replacing. Thus, program participants in
affected areas may substitute services in
one broad category (e.g.,
telecommunications service, Internet
access, and internal connections) for
those in another. Along these same
lines, we will permit the use of
approved funds for any facilities or
services that need to be replaced due to
the natural disaster to the extent that
they were initially funded under the
program. We recognize that program
participants in Alabama, Louisiana, and
Mississippi affected by Hurricane
Katrina may seek needed funding to
replace damaged or destroyed services
and equipment, and that it is in the
public interest to allow the replacement
of such services and equipment with
funds previously granted for other
services and equipment. Accordingly,
we find that due to this natural disaster,
good cause exists for waiving § 54.504(f)
for affected entities and that such
waiver is in the public interest. For any
eligible school, library or consortium in
affected areas, such service substitutions
will be limited to funds received from
applications from Funding Year 2005.
46. Certain schools, although not
directly affected by Hurricane Katrina,
may have been indirectly impacted
nonetheless due to the influx of
displaced students into their district.
For example, additional students may
make use of school services and
resources in a manner originally
unanticipated when the schools’
technology plans were developed and
funding requested, thereby taxing
information and telecommunication
services beyond their usual capability.
In some instances, the addition of
students displaced due to Hurricane
Katrina may cause a school to become
eligible for a higher discount level due
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to an increase in the percentage of the
student body eligible for the National
School Lunch Program. To provide an
opportunity for schools to handle the
unforeseen consequences of Hurricane
Katrina and the influx of new students
and patrons, we will allow schools and
libraries serving displaced students and
citizens to amend their Funding Year
2005 applications to account for the
unexpected increase in population by
filing a special supplementary FCC
Form 471 request for additional
funding. In accordance with our
direction here, such schools may amend
their original funding requests. We
instruct the Schools and Libraries
Division (‘‘SLD’’) of the Administrator
to accept and immediately process
requests for additional funding from
such schools for sixty days following
the date of this Order. We recognize that
certain schools and libraries may need
to adjust their requests for USF support
in light of Hurricane Katrina even
though they have not been directly
damaged by these events. Accordingly,
we find that due to this catastrophic
natural disaster, good cause exists for
waiving § 54.507(c) for these schools
and libraries and that such waiver is in
the public interest. Schools and libraries
affected by Hurricane Katrina requesting
additional funding to support the needs
of displaced citizens shall submit a
certification indicating the approximate
number of additional students or
citizens expected to be served by the
telecommunications and information
services, and that the services and
products sought in their applications are
necessary to serve these additional,
unanticipated needs. We estimate that
this increase in funding will be
approximately $36 million. We note that
these funds have already been collected
and should not have an impact on the
long-term viability of the universal
service program.
47. Because we want to ensure the
schools and libraries harmed by
Hurricane Katrina receive targeted
support, we direct the Administrator, in
reviewing revised or supplemented
requests for E-rate support, to determine
whether the impact of Hurricane Katrina
was de minimis (e.g., a small number of
students or patrons that necessitates no
increased demand for supported
services). Schools and libraries should
not submit revised applications if they
are getting a de minimis increase in
students or patrons as a result of
Hurricane Katrina. We recognize that
this determination may depend upon
specific facts and circumstances. Thus,
applicants should submit the number of
increased students and library patrons
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(both pre-Hurricane Katrina and postHurricane Katrina) and certify that the
number is accurate. We also require
schools and libraries to maintain
documentation in support of these
increased numbers. We authorize the
state E-rate coordinators for Alabama,
Louisiana, and Mississippi to review erate applications to ensure that schools
and libraries were substantially
damaged and that their requests will be
free of waste, fraud, and abuse. In
addition, for those schools and libraries
handling increased students/patron
evacuees, we authorize these E-rate
coordinators to review whether the
schools/libraries are handling more than
a de minimis number of increased
students/patrons. We note that the state
E-rate coordinators for Alabama,
Mississippi, and Louisiana will
coordinate the application process to
limit the potential for waste, fraud, and
abuse. We authorize this additional
oversight review activity. We expect
such review efforts would include
verifying that schools and libraries in
their states seeking this temporary relief
meet the de minimis standard. We will
carefully monitor the use of funds
disbursed to ensure that all support is
utilized in accordance with Commission
rules, and to ensure that service
providers do not charge unjust or
unreasonable rates. We reserve the right
to recover any monies not used for their
intended purposes or, upon review, we
determine were used wastefully.
under this standard should retain
documentation of the number of
additional students and citizens to be
supported by telecommunications and
information services.
49. The E-rate Funding Year 2005
application window is reopened for
certain schools, libraries, and consortia
directly and indirectly affected by the
hurricane, as set out above. The window
reopens on the release date of this Order
and closes 60 days after. Any
application or amended application
from an eligible school, library, or
consortium, as discussed above, that is
postmarked by 60 days after the release
date of this Order will be deemed
accepted as timely filed within the
Funding Year 2005 window. For
Funding Years 2005 and 2006, all
eligible schools, libraries, or consortia,
as discussed above, will be treated at the
highest level of priority, or 90 percent,
for Priority Two services. For all eligible
schools, libraries, or consortia, as
discussed above, the clock shall be
restarted in terms of applying the twoin-five rule of receiving Priority Two
services. Therefore, applicants that
qualify for Priority Two services under
this Order will be deemed to have
Funding Year 2006 as their first funding
year, for purposes of the two-in-five
calculation. For any eligible school,
library or consortium, as discussed
above, service substitutions will be
limited to funds received from
applications from Funding Year 2005.
2. Eligibility
48. The temporary order adopted and
waivers granted herein apply to schools,
libraries, and consortia of schools and
libraries in the federally-declared
Hurricane Katrina disaster areas in the
states of Louisiana, Mississippi, and
Alabama and in surrounding areas, for
the counties/parishes designated by
FEMA as eligible for individual
assistance. Furthermore, because the
residents of the most devastated areas
will likely have to relocate for an
extended period of time, we expand
eligibility of funds from the schools and
libraries support mechanism to schools
and libraries (and consortia of eligible
schools and libraries) located in areas
that receive citizens evacuated from the
hardest hit areas. Initial reports show
these areas to include all counties in
Texas and Arkansas that are contiguous
with Louisiana and Mississippi; the
counties of Escambia, Santa Rosa,
Okaloosa, Walton, and Bay in Florida;
the counties of Harris, Dallas, Tarrant
and Bexar in Texas; the county of
Pulaski in Arkansas; and the county of
Shelby in Tennessee. Schools and
libraries that believe they are eligible
E. High-Cost Support
50. The high-cost program provides
support to carriers (incumbent LECs as
well as competitive carriers) operating
in high-cost and rural areas. Under the
Commission’s rules, rural carriers
receive support based on their
embedded costs and non-rural carriers
receive support based on forwardlooking economic costs, as determined
by the Commission’s cost model.
Federal high-cost model support is
provided to non-rural carriers in states
where costs exceed a nationwide cost
benchmark. After the amount of support
available in a state is determined, that
support is ‘‘targeted’’ to high-cost wire
centers. Section 254(e) of the Act
provides that carriers receiving federal
universal service support ‘‘shall use that
support only for the provision,
maintenance, and upgrading of facilities
and services for which the support is
intended.’’ The Commission has
previously declined to establish
‘‘elaborate rules for compliance with
section 254(e)’’ but, rather, has relied on
the states, through the certification
process, to ensure that carriers are using
support for the purposes in which it is
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65859
intended. Indeed, the Commission has
stated that as long as the uses prescribed
by the state are consistent with section
254(e), states should have the flexibility
to decide how carriers use support
provided by the federal non-rural highcost mechanism.
51. The rules for the high-cost
program therefore do not explicitly
address the use of high-cost funds for
disaster relief and restoration purposes
but, instead, codify section 254(e)’s
requirement that carriers shall use
universal service support only for the
provision, maintenance, and upgrading
of facilities and services for which the
support is intended. Here we determine
such costs to be a purpose for which
high-cost support is intended. In
addition, we find that high-cost carriers
currently operating in the disaster area
are coping with enormous challenges.
More than 200,000 customer lines
remain out of service. Carriers sustained
significant damage to their outside plant
facilities and switching equipment, in
some cases losing entire central offices.
Because commercial power is not fully
available, many carriers continue to
operate on back-up power. We conclude
that these carriers are now operating in
an area like a high-cost area. We
conclude that a clarification of the use
restrictions in our rules is appropriate
given the overwhelming public interest
in assisting those high-cost areas struck
by the worst natural disaster in the
nation’s history. This action does not
provide additional support to high-cost
carriers harmed by Hurricane Katrina
and thus will not affect the size of the
fund. It will, however, provide high-cost
carriers with the flexibility to use some
of their support to assist in disaster
restoration. We therefore clarify that
using high-cost support to repair and
rebuild facilities and services damaged
by Hurricane Katrina is consistent with
the statutory directive contained in
section 254(e). Alternatively, we waive
Commission Rule 54.7 for the limited
purposes discussed herein. To the
extent necessary and for only the relief
provided herein, we also forbear from
section 254(e).
52. Carriers getting this support
should certify that: (1) the carrier is
serving in the area; and (2) the carrier
incurred substantial damage as a result
of Hurricane Katrina.
F. Other Issues
53. As we note in the sections above,
we are working within the existing
parameters of the low-income, health
care, E-rate, and high-cost USF
programs. Except where noted herein,
we expect to apply all existing processes
and procedures to those applying for
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benefits. For example, schools and
libraries would need to prepare
technology plans, submit applications,
and maintain documentation. Similarly,
carriers seeking support for providing
the supported wireless service
consumer offering will seek
reimbursement pursuant to the
Commission’s existing low-income
rules. Those programs that have caps
specified in the Commission’s rules—
i.e., the $2.25 billion E-rate program and
the $400 million rural health care
program—will continue to operate
under the existing caps and applicable
rules. In addition, we take no steps to
modify or change the Administrator’s
disbursement processes. All carriers and
service providers receiving USF monies
remain subject to audit, and we may
recover funds that we later determine
were used improperly. At this time, we
do not anticipate a need to adopt any
specific forms because of the temporary
nature of these support initiatives;
parties receiving benefits are required,
however, to maintain all documentation
needed to verify the accuracy of their
applications and the amount of monies
received. Nor do we anticipate requiring
the Administrator to revise its quarterly
filings, although the Commission may
require supplemental or additional
information on an as-needed basis
consistent with our standard operating
procedures. We also adopt safeguards
tailored to these temporary support
programs, including certification
requirements, document retention
requirements, eligibility criteria relying
on FEMA determinations, and audits of
disbursed funds.
54. On September 21, 2005, the
Administrator filed a letter with the
Commission, detailing certain
implementation concerns regarding
relief related to Hurricane Katrina. We
note that many of the issues raised in
that letter are addressed in the scope of
this Order. Because we are applying the
USF programs’ existing processes and
procedures to these initiatives, we do
not anticipate significant administrative
issues to implement. We recognize,
however, that some implementation
issues may arise. We therefore require
the Administrator to work with the
Wireline Competition Bureau to resolve
any such issues (e.g., the content of
certifications) expeditiously. We note
that the proposal of the E-rate
coordinators from Alabama, Louisiana
and Mississippi does not address
schools and libraries affected by
evacuees. We direct the Wireline
Competition Bureau to coordinate with
the E-rate coordinators of the states
eligible for relief as a result of a
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15:13 Oct 31, 2005
Jkt 208001
substantial number of evacuees to
develop review process comparable to
that of the E-rate coordinators for
Alabama, Louisiana and Mississippi.
55. In this Order, we adopt a number
of measures to safeguard the USF from
misuse of funds. In particular, we rely
on the FEMA disaster designation and
application processes to determine
eligibility for the temporary support
initiatives, and the checks and balances
built into FEMA’s internal controls and
procedures to ensure parties that are
ineligible for support are rejected.
Similarly, we target the temporary
support to the counties, parishes, and
individuals that suffered the most from
the worst natural disaster in the
Nation’s history. We also adopt specific
certification and document retention
requirements pertaining to this
temporary support. In addition, all
beneficiaries and service providers
receiving these monies are subject to
potential audit, and those that receive
more than $1 million will automatically
be audited by the Administrator to
ensure the funds are used for their
intended purposes. All eligible
telecommunications carriers, service
providers, or beneficiaries requesting
support under this temporary order
shall be subject to audit or investigation
by the Commission’s Office of Inspector
General (‘‘OIG’’), or other authorized
federal or state governmental agency
and, upon request, must make available
any documentation and records
necessary to verify compliance with
these rules. For the E-rate program, we
also rely on the representations of the Erate coordinators for Alabama,
Mississippi, and Louisiana that they
will coordinate the application process
to limit the potential for waste, fraud,
and abuse, and we authorize this
additional oversight review activity.
Finally, this support is temporary and
limited for the purposes specified in
this Order.
56. We also rely, however, on the
existing safeguards and measures in the
USF programs. Thus, to the extent
recovery is sought from USF
stakeholders, and such stakeholders do
not make payments, they will be subject
to our ‘‘red light’’ rule. Parties must still
submit applications and maintain
appropriate documentation, as required
by the existing program rules. The
Administrator will subject all
applications to the normal review
processes so that E-rate applications, for
example, will go through the Program
Integrity Assurance (‘‘PIA’’) review
process and selective review procedures
pursuant to the Administrator’s
standard operating procedures. All
information collection efforts, document
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Fmt 4700
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retention, and certification requirements
that normally apply to applications for
low-income, rural health care, high-cost,
or E-rate support will continue to apply
for these temporary USF support
initiatives. We recognize that we have
already initiated a proceeding to
examine these procedures to determine
what additional measures can be taken
to further safeguard the USF from waste,
fraud, and abuse.
57. We are committed to ensuring that
the funds disbursed as a result of these
temporary support initiatives are used
for their intended purposes and that
unscrupulous persons do not seek to
gain from these disaster relief measures.
Therefore, to the extent we find through
audits or other means that funds were
not used properly, we will require the
Administrator to recover such funds
through its normal processes. For the Erate program, for example, we will
continue to apply the recovery standard
adopted in the Schools and Libraries
Fifth Report and Order, 69 FR 55097,
September 13, 2004. Thus, amounts
disbursed ‘‘in violation of the statute or
a rule that implements the statute or a
substantive program goal’’ will be
recovered in full. We emphasize that we
retain the discretion to evaluate the uses
of USF monies and to determine on a
case-by-case basis that waste, fraud, or
abuse of USF monies occurred and that
recovery is warranted.
III. Effective Date
58. The waivers granted herein shall
be effective upon the release date of this
Order. The rule modifications or
additions adopted herein shall be
effective upon the release date of this
Order. Pursuant to section 553(d)(3) of
the Administrative Procedure Act, we
find good cause to make these rule
modifications or additions effective
upon release of this Order. As explained
above, Hurricane Katrina caused
significant damage in Alabama,
Louisiana, and Mississippi including
flooding in some areas of these states
and significant property damage and
personal injury. The rule changes
promulgated in this Order represent a
critical step in facilitating the Nation’s
response to the disaster wrought by
Hurricane Katrina. We note, moreover,
that this Order does not mandate new
burdens or obligations. Accordingly, no
entity will be adversely affected by
making the Order effective at the earliest
possible date. We delegate authority to
the Wireline Competition Bureau to
work with the Universal Service
Administrator to make the necessary
programmatic changes to implement
this Order.
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59. Given the urgent need, the rules
set forth herein shall take effect
immediately upon release, and without
prior public notice and comment.
Section 553 of the Administrative
Procedures Act (APA) permits any
agency to implement a rule without
public notice and opportunity for
comment ‘‘when the agency for good
cause finds * * * that notice and public
procedure thereon are impracticable,
unnecessary, or contrary to the public
interest.’’ Commission rules permit us to
render an Order effective upon release
where good cause warrants. As a general
matter, we firmly believe that public
notice requirements are an essential
component of our rulemaking process.
We find, however, that while receipt of
public comment clearly is necessary to
the formulation of final rules, the
devastation caused by Hurricane Katrina
and the need for prompt attention for
the victims of Hurricane Katrina present
good cause to make this Order effective
immediately upon release of this Order.
IV. Congressional Review Act
60. The Commission will send a copy
of this Order in a report to Congress and
the Government Accountability Office
pursuant to the Congressional Review
Act, see 5 U.S.C. 801(a)(1)(A). For the
reasons stated herein, we find good
cause for the rule changes made by this
Order to take effect upon the release of
this Order, see 5 U.S.C. 808(2).
V. Procedural Matters
61. This Order contains new and
modified information collection
requirements subject to the Paperwork
Reduction Act of 1995 (PRA), Public
Law 104–13. Pursuant to 5 CFR
1320.18(d), the Office of Management
and Budget (OMB) has granted the
Commission a temporary waiver of the
PRA requirements for this rulemaking.
Accordingly, this Order will not be
submitted to OMB for review.
VI. Ordering Clauses
62. Pursuant to the authority
contained in sections 4(i), 4(j), 10, 201–
205, 214, 254, 303(r), and 403 of the
Communications Act of 1934, as
amended, 47 U.S.C. 151, 154(i), 154(j),
160, 201–205, 214, 254, 303(r), and 403
this Order is adopted, and the
temporary Order shall become effective
immediately upon release of this Order,
pursuant to 5 U.S.C. 408, 553(d)(3), 47
U.S.C. 408, 553(d)(3).
63. Pursuant to 4(i) and 251(e) of the
Communications Act of 1934, as
amended, 47 U.S.C. 154(i) and 251(e),
and §§ 1.1 and 1.3 of the Commission’s
rules, 47 CFR 1.1 and 1.3, that our
procedural rules relating to the
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15:13 Oct 31, 2005
Jkt 208001
universal service fund are waived to the
extent herein described.
64. Pursuant to sections 1, 4(i),
251(b)(2), and 251(e) of the
Communications Act of 1934, as
amended, 47 U.S.C. 151, 154(i),
251(b)(2) and 251(e), and § 1.3 of the
Commission’s rules, 47 CFR 1.3, that
§ 54.603(b)(3) of the Commission’s rules
is waived to the extent herein described.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 05–21728 Filed 10–31–05; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
65861
management measures for the 2005–
2006 groundfish fisheries are available
from Donald McIsaac, Executive
Director, Pacific Fishery Management
Council (Council), 7700 NE Ambassador
Place, Portland, OR 97220, phone: 503–
820–2280. Copies of the Record of
Decision, final regulatory flexibility
analysis (FRFA), and the Small Entity
Compliance Guide for the groundfish
harvest specifications for 2005–2006 are
available from D. Robert Lohn,
Administrator, Northwest Region
(Regional Administrator), NMFS, 7600
Sand Point Way, NE, Seattle, WA
98115–0070.
FOR FURTHER INFORMATION CONTACT:
Yvonne deReynier (Northwest Region,
NMFS), phone: 206–526–6129; fax: 206–
526–6736 and; e-mail:
yvonne.dereynier@noaa.gov.
SUPPLEMENTARY INFORMATION:
50 CFR Part 660
Electronic Access
[Docket No. 050302053–5120–03; I.D.
042605G]
This rule is accessible via the Internet
at the Office of the Federal Register’s
Web site at https://www.access.gpo.gov/
suldocs/aces/aces140.html.
Background information and documents
are available at the NMFS Northwest
Region Web site at https://www/
nwr.noaa.gov/1sustfsh/gdfsh01.htm and
at the Council’s Web site at https://
www.pcouncil.org.
RIN 0648–AT38
Fisheries Off West Coast States and in
the Western Pacific; Pacific Coast
Groundfish Fishery; Spiny Dogfish;
Open Access; Routine Management
Measure; Closure Authority
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Emergency rule and extension
of expiration date.
AGENCY:
SUMMARY: This action extends an
emergency rule, now in effect, that
establishes routine management
measure authority, under the Pacific
Coast Groundfish Fishery Management
Plan (Pacific Coast Groundfish FMP), to
reduce trip limits to incidental levels in
the open access fishery for groundfish
before the sector has taken its full target
groundfish species’ allocations, to
minimize impacts on overfished
species. The mechanism established by
this action is necessary to quickly
restrict the directed open access
groundfish fishery if NMFS estimates
that the incidental catch of an
overfished species is too high.
DATES: The amendments in this rule are
effective November 1, 2005, through
May 1, 2006, except for § 660.383(f),
which is effective November 1, 2005.
The expiration date of the emergency
rule published on May 5, 2005 (70 FR
23804) is extended until May 1, 2006.
ADDRESSES: Copies of the Final
Environmental Impact Statement (FEIS)
for the harvest specifications and
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Background
On May 5, 2005, NMFS published an
emergency rule (70 FR 23804)
establishing bycatch limits of 1.0 mt of
canary rockfish and 0.6 mt of yelloweye
rockfish for the directed open access
fishery for groundfish. If those limits
were estimated to be achieved inseason,
the trip limit levels for the open access
fishery would be reduced via NMFS
automatic action at § 660.370(d) to a
level that would accommodate
incidental catch in the non-directed
open access fishery. This emergency
rule implemented a provision setting
the incidental trip limit level for the
open access fishery at 200 lb (90.7 kg)
of groundfish per month.
The impetus for this emergency rule
was a high capacity freezer-longliner
announcing its intent to join the open
access fishery for spiny dogfish.
Historical data indicated that traditional
dogfish longliners operating off the
Washington coast have had incidental
catch of canary and yelloweye rockfish
that concerned the agency. When
applied to the expected catch of spiny
dogfish by that a high-capacity vessel
inexperienced with operating in
northern West Coast waters, these
bycatch rates could have jeopardized
the optimum yields (OYs) for these
E:\FR\FM\01NOR1.SGM
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Agencies
[Federal Register Volume 70, Number 210 (Tuesday, November 1, 2005)]
[Rules and Regulations]
[Pages 65850-65861]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-21728]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[CC Docket Nos. 96-45; 02-6; WC Docket 02-60; 03-109; FCC 05-178]
Federal-State Joint Board on Universal Service
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Commission takes immediate steps to
assist the victims of Hurricane Katrina by making available
approximately $211 million of targeted support from the Universal
Service Fund (``USF'') for reconstruction and remediation relating to
the restoration of telecommunications services. We expect that these
measures will help the victims of Hurricane Katrina recover from the
catastrophic damage and help the affected communities rebuild.
[[Page 65851]]
DATES: Effective October 14, 2005.
FOR FURTHER INFORMATION CONTACT: Mika Savir, Attorney, Wireline
Competition Bureau, Telecommunications Access Policy Division, (202)
418-7400, TTY (202) 418-0484. For additional information concerning the
information collection(s) contained in this document, contact Judith-B.
Herman at (202) 418-0214, or via the Internet at Judith-
B.Herman@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order,
in CC Docket Nos. 96-45; 02-6; WC Docket 02-60; 03-109; FCC 05-178,
released October 14, 2005. The full text of this document is available
for public inspection during regular business hours in the FCC
Reference Center, Room CY-A257, 445 12th Street, SW., Washington, DC
20554.
I. Introduction
1. In this Order, we take immediate steps to assist the victims of
Hurricane Katrina by making available approximately $211 million of
targeted support from the Universal Service Fund (``USF'') for
reconstruction and remediation relating to the restoration of
telecommunications services. We expect that these measures will help
the victims of Hurricane Katrina recover from the catastrophic damage
and help the affected communities rebuild. As explained below, because
of the exigent circumstances, we find good cause to adopt temporary
order without notice-and-comment in order to assist the Nation's
disaster relief effort.
II. Order
A. Waiver Standard
2. Generally, the Commission's rules may be waived for good cause
shown. Waiver of the Commission's rules is therefore appropriate only
if special circumstances warrant a deviation from the general rule, and
such deviation will serve the public interest. As we discuss in more
detail below, we find that the catastrophic damage to lives and
property as a result of Hurricane Katrina in the Gulf Coast states and
the need for expedited restoration of communications presents special
circumstances for waiving certain universal service rules and that such
a waiver is in the public interest.
3. We find that it is appropriate to implement these rules,
effective upon release of this Order, on a temporary basis to expand
funding in the affected areas. We find that the circumstances caused by
Hurricane Katrina create a special need for the Commission to use its
discretion to provide universal service support to health care
providers in the affected areas. This support is necessary to address
the unique circumstances faced by health care providers, schools,
libraries, service providers, and low-income consumers in the states of
Alabama, Louisiana, and Mississippi, and the areas where evacuees have
relocated. The temporary order represents our recognition of the vital
role played by telecommunications and by telemedicine in responding to
the needs in the communities affected by Hurricane Katrina. The
temporary order also furthers the Commission's core responsibility to
make available a rapid nationwide network for the purpose of responding
to national crisis situations. For all of these reasons, we find this
interim relief to be in the public interest.
B. Lifeline/Link-Up Support
1. Need for and Description of Temporary Order
4. In this Order, we adopt temporary modifications to the low-
income program rules to improve the effectiveness of the low-income
support mechanism at meeting the needs of victims of Hurricane Katrina.
Since its inception, Lifeline/Link-Up has provided support for
telephone service to millions of low-income consumers. Nationally, the
telephone penetration rate is 92.4 percent, in large part due to the
success of the Lifeline/Link-Up program and our other universal service
programs. In light of the catastrophic damage caused by the worst
natural disaster this country has faced, thousands of people remain
without basic telephone service. Unless addressed, this lack of access
to telecommunications will lengthen the already-long period of time
anticipated for recovery from the damage caused by Hurricane Katrina.
5. As discussed in more detail below, in this section, we take two
steps to address this significant problem affecting thousands of
people. First, under the Lifeline program, we provide for temporary
support under the federal Lifeline program for eligible
telecommunications carriers making available a wireless service
consumer offering to victims of Hurricane Katrina. Second, we provide
support under the federal Link-Up program to hurricane victims moving
to temporary housing arrangements and to those who return to permanent
residences in the affected areas. To ensure victims of Hurricane
Katrina in need of help receive this assistance, we base the
eligibility criteria for these initiatives on those used by FEMA to
provide individual disaster housing assistance to these people and
entities.
6. In crafting the temporary order, we are informed by the
principles of section 254 and our low-income program rules. Section
254(b) establishes principles upon which the Commission shall base
policies for the preservation and advancement of universal service.
Among other things, these principles state that consumers in all
regions of the Nation, including low-income consumers, should have
access to telecommunications and information services that are
reasonably comparable to those services provided in urban areas and
that are available at rates that are reasonably comparable to rates
charged in urban areas. These principles also recognize that ensuring
rates are affordable is a national priority. In light of these
principles, we conclude that modifying the low-income program by
providing for a wireless service federal Lifeline consumer offering and
providing support under the federal Link-Up program for connection
charges, on a temporary basis, is necessary to assist the disaster
recovery efforts related to Hurricane Katrina.
7. Thousands of people left their homes because of the hurricane.
Many of these people are in temporary shelters or in the process of
finding interim housing and may be without a permanent home or
employment for a period of time. To facilitate the access of evacuees
and other displaced persons to telecommunications services, any person
approved for individual FEMA housing assistance or determined by FEMA
to be eligible for such individual housing assistance relating to the
hurricane will be eligible for federal Lifeline support for a free
wireless handset and a package of at least 300 minutes of use, not to
exceed $130 per household, until March 1, 2006.
8. We find that $130 per household is a reasonable amount of
support for the purchase of a handset and at least 300 minutes based on
the variety of the competitive plans available to consumers throughout
the United States. We note that at least one wireless provider has
indicated this amount of support is sufficient to serve low-income
consumers. Moreover, we find that a minimum of 300 minutes of use per
household will facilitate evacuees and those remaining in the affected
areas to reconnect with loved ones, and make living, housing, and work
arrangements in the wake of the hurricane. In addition, we expect that
upon expiration, customers will retain the wireless phone and in many
instances, be able to purchase additional minutes at discounted rates.
Such
[[Page 65852]]
support will help consumers reconnect to the telecommunications network
as the disaster-struck areas are rebuilt. For purposes of this Order,
we define ``household'' as one adult and his/her dependents, living
together in the same residence. We recognize that many families that
normally live together as one household have been separated due to the
hurricane and the evacuation process and may represent more than one
household for this temporary Lifeline support. Our intent in providing
this support is to assist hurricane victims, regardless of whether they
are in an intact household, separated from family temporarily, or
otherwise. To work within the parameters of the existing program, we
will order this temporary support available to ETCs providing the
supported wireless service consumer offering. We note that to receive
the temporary support, wireless carriers cannot require consumers to
enter into a long-term contract or require service beyond 300 minutes
or March 1, 2006, whichever is shorter.
9. We find that these modifications are economically reasonable and
consistent with the existing framework of the program rules. Under the
Lifeline program, low-income consumers could receive up to $10 per
month or $120 per year. Under the temporary order, qualifying consumers
would receive a $130 benefit, which would also include a handset. We
note that this relief, combined with the action we took earlier with
regard to waiver of the geographic porting requirements, would allow
evacuees to maintain their home phone numbers, and promote continuity
with regard to personal contacts, employment, education, and housing.
Under the unique and devastating circumstances caused by the hurricane
and its aftermath, we conclude that provision of this support,
including a free wireless handset, is consistent with the purpose of
section 254 because it is reasonably necessary to ensure that low
income consumers have immediate access to telecommunications services.
We further find that this support fulfills the Commission's broader
mandate to make wire and radio communication service available to all
people of the United States, and to promote the safety of life and
property. We use our ancillary authority under Title I to include a
free wireless handset.
10. We also adopt temporary order for the Link-Up program to pay
for certain costs to connect victims of the hurricane to the network.
Specifically, we will provide funding under the Link-Up program to
eligible telecommunications carriers to receive, upon submission of an
application and any necessary documentation, $30.00 per qualifying
household for commencing telecommunications service for a single
telecommunications connection at any temporary housing arrangements. To
ensure this temporary support is targeted to those victims of Hurricane
Katrina moving to temporary housing arrangements (e.g., trailer parks
or other temporary housing facilities), we will make this support
available from release of this Order through March 1, 2007. In
addition, we will also permit, under the Link-Up program, eligible
telecommunications carriers to receive (upon submission of an
application and any necessary documentation to the Administrator)
$30.00 per qualifying household returning to a primary residence in the
Hurricane Katrina disaster area for commencing telecommunications
service for a single telecommunications connection, including the
reconnection of service disconnected as a result of Hurricane Katrina.
Based on the numbers provided by FEMA, we estimate that up to 370,000
households would be eligible for this temporary Link-Up support at an
estimated total cost of approximately $12 million.
2. Applicable Time Period
11. Hurricane victims need access to telephone service,
particularly in this emergency situation. Carriers operating in the
disaster areas in Alabama, Louisiana, and Mississippi, as well as in
any state where people have been temporarily relocated, e.g., Texas,
should have the opportunity to assist hurricane victims and receive
appropriate temporary USF support payments. Accordingly, we find that
due to this emergency situation, good cause exists for adopting these
temporary Lifeline rules, which will expire on March 1, 2006,
specifically for free wireless handsets, and at least 300 free minutes
per household for displaced persons, whether they relocate within the
three affected states, relocate to another state outside of the area,
or return home after telephone service has been disconnected. We also
find that good cause exists to adopt temporary Link-Up rules, as
discussed above, which will expire on March 1, 2007.
12. Link-Up support funding is available from the release date of
this Order until March 1, 2007. Any eligible application for Link-Up
support postmarked by March 1, 2007 will receive the special Link-Up
support described above. Wireless Lifeline support is available from
the release date of this Order until March 1, 2006. Any eligible
application for support postmarked by March 1, 2006 is eligible for the
Wireless Lifeline support described above.
3. Eligibility
13. As discussed above, any person approved for FEMA disaster
assistance or determined by FEMA to be eligible for individual
assistance relating to the hurricane will be eligible for temporary
federal Lifeline and Link-Up support, on a per household basis. Section
254(e) of the Communications Act of 1934, as amended, provides that
``only an eligible telecommunications carrier designated under section
214(e) shall be eligible to receive specific Federal universal service
support.'' We adopt several conditions to ensure that this Lifeline and
Link-Up temporary support is used solely to assist victims of Hurricane
Katrina. First, this Lifeline and Link-Up support is only available to
consumers approved for FEMA disaster housing assistance or determined
by FEMA to be eligible for housing assistance relating to the
hurricane. FEMA's rules target housing assistance to individuals and
households who are harmed by a disaster and generally have limited
means. For example, housing assistance is generally not available to
individuals who have adequate rent-free housing accommodations. To
ensure this support is targeted to those consumers with the greatest
need, we are making this temporary support available to those consumers
determined to be eligible for FEMA disaster housing assistance and who
do not have any obligation under FEMA rules to repay FEMA for the
support. Because this is temporary support intended to assist in
disaster relief and restoration, we limit this Link-Up support to one
connection for temporary housing and one reconnection (per household)
for hurricane victims determined to be eligible for individual
assistance under FEMA rules (and who have no obligation to repay the
funds to FEMA) returning to permanent residences in the FEMA-designated
Hurricane Katrina disaster area. We limit the Lifeline support to a
free wireless handset and at least 300 free minutes. Second, the
temporary Link-Up support for reconnections is available only for
circumstances where the consumer was disconnected from service because
of the hurricane or subsequent flooding. Third, we require consumers
qualifying for this support to provide documentary evidence to the ETC
serving them to demonstrate that FEMA determined they were eligible for
individual disaster housing assistance. Proof of FEMA's determination
of
[[Page 65853]]
eligibility for individual housing disaster assistance without
repayment obligations is sufficient. We anticipate that the households
that will receive support under the temporary order would have received
support under the existing low-income program rules if they obtained
telephone service. We note, however, that our Link-Up rules place
certain restrictions on the number of times at the same residence a
low-income consumer may qualify for support. We therefore clarify that
this temporary Link-Up support will be available both for temporary
housing arrangements and for eligible hurricane victims returning to
permanent residences in the Hurricane Katrina disaster area.
14. By adopting these temporary modifications to our Lifeline and
Link-Up programs, we are working within the existing parameters of the
low-income program. The Commission has long relied on participation in
means-tested programs, such as participation in the food stamps
program, to determine eligibility in our low-income program. In 2004,
the Commission expanded eligibility for the low-income program when it
acted upon the Federal-State Joint Board's recommendation to expand the
federal default eligibility criteria to include an income-based
criterion and additional means-tested programs. Under the existing
rules, in cases where a state does not mandate state Lifeline support,
the Commission's rules rely on other means-tested federal assistance
programs (e.g., Temporary Assistance to Needy Families, Federal Public
Housing Assistance, Low Income Home Energy Assistance Program, and the
National School Lunch Program's free lunch program) to determine
eligibility criteria for the low-income program. The approach we adopt
here, i.e., relying on FEMA determinations that a consumer is eligible
for certain individual disaster assistance program, is consistent with
our general approach of using federal assistance programs to determine
consumer eligibility for our low-income program. By relying on FEMA
determinations of household eligibility for disaster housing
assistance, we are targeting this support to households struck by
Hurricane Katrina, and we are using FEMA's determinations as a need-
based program for determining low-income programs eligibility.
15. There are approximately 65 wireless carriers designated as ETCs
in the states of Alabama, Louisiana, and Mississippi. We recognize that
these ETCs, as well as wireless carriers currently designated as ETCs
in other states, may not be sufficient to implement the temporary order
in time to help with Hurricane Katrina disaster relief or may not be
certified in areas where they now need to provide service. In order to
effectively and efficiently implement the temporary order, we forbear
for the purposes of this special relief, until March 1, 2006, from
section 254(e)'s requirement that ``only an eligible telecommunications
carrier designated under section 214(e) shall be eligible to receive
specific Federal universal service support.'' We establish the
following alternative designation process for temporary ETCs to provide
the specific Lifeline support described in this Order.
16. Section 10 of the Act requires that the Commission forbear from
applying any regulation or any provision of the Act to
telecommunications services or telecommunications carriers if the
Commission determines that the three conditions set forth in section
10(a) are satisfied. We find the requirements of section 10(a) are met
to forbear from the ETC requirement until March 1, 2006, because of the
limited and temporary nature of the support as well as the narrow
application of the universal service support to only Lifeline
customers. Section 10(a)(1) is satisfied because temporary forbearance
from the ETC requirement will enhance the charges and practices of
telecommunications carriers as it relates to Lifeline customers because
it expands the scope of telecommunications services available to these
consumers. Without such support, many of the affected consumers would
be left with limited or no access to telecommunications services. In
addition, because we specifically include a handset and a minimum of
300 minutes of wireless service and thus tailor the Lifeline support to
the affected consumers, we do not believe that the additional
safeguards afforded by the traditional ETC designation requirement are
necessary for the protection of consumers. Thus, forbearance also
satisfies section 10(a)(2). Further, under the alternative temporary
ETC designation process that we establish herein, the Commission will
review each offering to determine whether it complies with our
requirements. This review will allow us to ensure that affected
consumers are provided with affordable access to the telecommunications
network. Finally, we find our actions here today to be most consistent
with the public interest and determine that the additional safeguards
afforded by ETC designation under section 214 work against the public
interest in this limited circumstance. Under the normal designation
process, carriers would be required to submit a detailed application
that addresses not only the Lifeline assistance but also the other
requirements of serving as an ETC. By streamlining the process, and
expediting our review, we will enable carriers to provide access to
telecommunications to affected consumers as quickly as possible. Thus,
we find that section 10(a)(1) through (3) are satisfied and temporary
and conditional forbearance is appropriate.
17. Carriers seeking to be designated a temporary ETC to offer the
special Lifeline support described in this Order must submit to the
Commission a detailed description of the plan, including how many and
type of minutes offered, the brand and model of the handset(s), the
carrier's licensed service area, and any limitations or conditions
associated with the plans. In addition, consistent with the
Commission's ETC precedent, the petition must include (1) a
certification that the petitioner intends to offer Lifeline services to
qualifying subscribers consistent with this Order; and (2) a
description of how the petitioner intends to advertise the availability
of the Lifeline service. Upon submission, the Commission will conduct
an expedited review to ensure compliance with our rules. Within ten
days, the Commission will determine whether the offering complies with
this Order and whether the carrier will be temporarily designated as an
ETC for purposes of providing the Lifeline support set out in this
Order.
18. We acknowledge that some FEMA-eligible subscribers may already
possess a handset and not need an additional handset. In those
instances, and at the subscriber's discretion, the subscriber may opt
against receiving a new handset and opt instead for a Lifeline-
supported package of greater than 300 minutes and the ETC may still
receive support not to exceed $130 for its Lifeline package. Further,
it is acceptable for a carrier to offer a plan that includes a handset
and a package of some greater amount of minutes (e.g., 500, 750, or
1000 minutes or more) for the $130 in support. Additionally, a
subscriber may opt for a plan that exceeds the $130 limit for a minimum
of 300 minutes of use and a handset, but nevertheless use the $130
towards the higher minutes of use plus handset plan. This flexibility
to the plan will allow eligible customers to purchase packages with
more minutes of use, including packages that require the subscriber to
pay any additional amount over the $130 threshold. Through this
[[Page 65854]]
temporary change to the federal Lifeline/Link-Up support program, it is
our intent and purpose through this wireless option to give access to
affected subscribers with no out-of-pocket costs. The eligible
customer, however, may choose otherwise by, for example, forgoing the
handset in exchange for more minutes of use.
19. We balance the need for quick and decisive action with our
overarching goals of protecting the program from waste, fraud, and
abuse. For that reason, we require applicants for the temporary
Lifeline support pursuant to this Order to certify that they were
residents of counties that are designated by FEMA as eligible for
individual assistance, that they are the head of their household, and
that they are only receiving one Lifeline special support package.
Applicants seeking Link-Up support must certify that they were
residents of counties that are designated by FEMA as eligible for
individual assistance. We require ETCs receiving this temporary support
to maintain all necessary documentation to verify that the support was
used for the intended purpose of assisting victims of Hurricane
Katrina. We also subject all ETCs receiving this temporary support to
potential audit, and we require all carriers receiving $1 million or
more of this support to undergo an audit or other investigatory review
by the Commission's OIG (or the Administrator working under the
oversight of the OIG) to verify the accuracy of all data submitted and
that the support was used for intended purposes and to validate that
the eligible telecommunications carrier has not obtained double-
recovery from a single household.
20. We find this action necessary to assist in the Hurricane
Katrina disaster relief effort. Offering temporary support for this
wireless service consumer offering will not only assist in the recovery
from the economic damages caused by the hurricane, but it will promote
public safety by ensuring that disaster victims have ready access to
E911 capabilities in the event of emergency. We stress that this
temporary designation to operate as an ETC solely for this temporary
support mechanism does not grant or otherwise deem the carrier an ETC
for any other USF support mechanism. Nor does this temporary
designation prejudge or suggest that any application currently pending
or to be filed in the future with the state commissions or the
Commission results in designation as an ETC.
C. Health Care Support
1. Need for and description of Temporary Order
21. In light of the compelling and unique circumstances caused by
Hurricane Katrina, we find that it is necessary to adopt temporary
order, pursuant to section 254(h)(2)(A), to provide public and
nonprofit health care providers--in both non-rural and rural areas--in
the affected areas and in areas where evacuees have relocated, as
detailed below, with a 50 percent discount off the monthly cost of
advanced telecommunications and information services necessary for the
provision of health care services to victims of Hurricane Katrina. The
temporary order discussed below applies to health care providers in the
federally declared Hurricane Katrina disaster areas in the states of
Alabama, Louisiana, and Mississippi and in areas where evacuees have
relocated as detailed below. Specifically, all rural and non-rural
nonprofit and public health care providers, as defined in Sec.
54.601(a)(2), located within the states of Alabama, Louisiana, and
Mississippi are eligible for this additional support. We establish
different geographic eligibility criteria for the Health Care
initiative because of the ability to use distance medicine applications
to treat Hurricane Katrina victims. Furthermore, because the residents
of the most devastated areas will likely have to relocate for an
extended period of time, we expand eligibility for the purposes of the
temporary order to the rural and non-rural nonprofit and public health
care providers located in areas that are likely to receive most of the
citizens evacuated from the hardest hit areas. Initial reports show
these areas to include all counties in Texas and Arkansas that are
contiguous with Louisiana and Mississippi; the counties of Escambia,
Santa Rosa, Okaloosa, Walton, and Bay in Florida; the counties of
Harris, Dallas, Tarrant and Bexar in Texas; the county of Pulaski in
Arkansas; and the county of Shelby in Tennessee. In addition, we find
that rural and non-rural health care providers outside of these areas
may be eligible for support to the extent they serve a substantial
number of the evacuees when compared to their usual number of patients.
Health care providers that believe they are eligible under this
standard should file a request with the Commission. We note that this
temporary support does not extend to private or for-profit health care
providers.
22. American Red Cross and other shelters are providing food,
water, shelter and physical and mental health services to evacuees.
Tens of thousands of people displaced from their homes have taken
refuge in shelters in several states. Accordingly, for the purposes of
the temporary order, we find it in the public interest that American
Red Cross or other shelters that also offer medical services are
eligible for funds as community health centers or community mental
health centers to the extent they serve a significant number of
disaster victims using advanced telecommunications and information
services for telemedicine applications.
23. We also clarify that temporary or mobile health care providers
are eligible for support under the 50 percent discount rule we adopt in
this Order. As we noted in the Rural Health Care Second Report and
Order, 70 FR 6365, February 7, 2005, mobile health care providers can
provide essential health care services to underserved populations in
remote locations. Given the extensive damage to many health care
facilities due to Hurricane Katrina, we envision that the recovery and
rebuilding effort will require the use of temporary mobile health
facilities due to the lack of permanent health care facilities.
Furthermore, many evacuees may be housed for some time in temporary
shelters, and health care might be brought to these people via mobile
health care providers. The receipt of universal service funding will
better enable mobile health care providers to rapidly diagnose and
treat patients in the affected areas. We find this rule to be in the
public interest because it will provide maximum flexibility to mobile
health care providers to use the most-effective technology to provide
service to hurricane victims, whether it is satellite, wireline, or
wireless. In the Rural Health Care Second Report and Order, we
established a methodology for calculating support that established
discounts for rural mobile health care providers at the difference
between the rate for satellite service and the rate for an urban
wireline service with a similar bandwidth. We find that such a
calculation is not necessary here because, under the rules we adopt
today, mobile health care providers will receive 50 percent discount
off the cost of advanced telecommunications and information services.
24. In section 254 of the Telecommunications Act of 1996, Congress
sought to provide rural health care providers ``an affordable rate for
the services necessary for the purposes of telemedicine and instruction
relating to such services.'' Specifically, Congress directed
telecommunications carriers
[[Page 65855]]
``[to] provide telecommunications services which are necessary for the
provision of health care services in a State, including instruction
relating to such services, to any public or nonprofit health care
provider that serves persons who reside in rural areas in that State at
rates that are reasonably comparable to rates charged for similar
services in urban areas in that State.'' Congress also provided the
Commission with authority to enhance access to advanced
telecommunications and information services for health care providers.
25. The Commission implemented this statutory directive by adopting
the rural health care support mechanism in the 1997 Universal Service
Order, 62 FR 32862, June 7, 1997. In the Rural Health Care Report and
Order, the Commission provided a 25 percent discount off the cost of
monthly Internet access for eligible rural health care providers under
section 254(h)(2)(A). Subsequently, on December 17, 2004, the
Commission released a Rural Health Care Second Report and Order, 62 FR
32862, June 7, 1997, that, among other actions, changed the definition
of ``rural'' for the purposes of the rural health care support
mechanism. The Commission also expanded funding for mobile rural health
care providers by subsidizing the difference between the rate for the
satellite service and the rate for an urban wireline service with a
similar bandwidth. In addition, on reconsideration, the Commission
revised its rules to permit rural health care providers in states that
are ``entirely rural'' to receive a 50 percent discount for advanced
telecommunications and information services under section 254(h)(2)(A).
26. As the Commission has recognized in the past, access to
advanced telecommunications services and information services presents
the most efficient, cost-effective way to provide many telemedicine
services. Specifically, telemedicine programs enable patients to
receive health care services across distances that might otherwise be
unaffordable, or physically impracticable or impossible to cross. For
example, health care providers can use advanced telecommunications
services to transmit x-rays and other medical information in real-time
to doctors located in other areas for diagnosis and recommendations.
Thus, patients benefit from access to timely health care services while
they are spared the expense of lost wages and long-distance travel. In
this instance, residents of the affected areas might be unable to
travel for health care services because, for example, vehicles were
lost in the flooding or gasoline is in short supply. Additionally,
mobile health care providers can deliver cutting-edge technology and
specialty care to citizens who are still living in areas that were
damaged by the hurricane. These mobile clinics literally can mean the
difference between life and death for many people who are unable to
travel to see a physician. Furthermore, universal service support for
advanced telecommunications and information services will enable health
care providers in the affected areas to utilize their limited resources
to provide additional care for hurricane victims and other patients.
27. We find that it is appropriate to adopt these rules on a
temporary basis to expand funding to health care providers in the
affected areas under section 254(h)(2)(A). As the Commission has
determined in the past, we have the authority to provide funding for
the provision of advanced telecommunications and information services
under section 254(h)(2)(A). Section 254(h)(2)(A) allows the Commission
to establish competitively neutral rules to enhance access to advanced
telecommunications and information services for health care providers.
Furthermore, section 254(h)(2)(A) gives the Commission broad
discretionary authority to fulfill this statutory mandate. In prior
orders, we have established rules under section 254(h)(2)(A) that
further the Commission's mission of funding telecommunications and
information services in order to promote telemedicine. By adopting the
temporary order, therefore, we are working within the existing
parameters of the rural health care program. We find that the
circumstances caused by Hurricane Katrina create a special need for the
Commission to use its discretion to provide universal service support
to health care providers in the affected areas.
28. Section 254(h)(2)(A) allows the Commission to establish
competitively neutral rules to enhance access to advanced
telecommunications and information services to the extent those rules
are technically feasible and economically reasonable. We find that
providing universal service support as discussed herein is both
technically feasible and economically reasonable. Access to these
services is technically feasible because eligible health care
facilities either are already being provided or were being provided
advanced telecommunications and information services prior to the
hurricane. In addition, the Commission's actions are economically
feasible, in light of the circumstances. First, the temporary support
is for a limited amount of services used for the express purpose of
treating disaster victims, i.e., advanced telecommunications and
information services used in telemedicine applications. Second, we
estimate that we would disburse approximately $28 million in support
under the temporary order. The Commission has established a cap of $400
million for the rural health care support mechanism. Given that
currently the program is disbursing about $30 million a year, we do not
envision that the additional funding provided for in this Order will
exceed the Commission's cap. We further note that we are not funding
all telecommunications services, as provided for under 254(h)(1)(A),
but only advanced telecommunications and information services that are
used directly to provide telemedicine services to treat patients.
Third, based on past experience, we believe a flat 50 percent discount
is easy to administer and consistent with section 254(h)(5), which
requires a specific, sufficient and predictable mechanism. Fourth, the
50 percent discount limits the amount of support per provider, provides
incentives for health care providers to make prudent economic decisions
concerning their telemedicine needs and will deter wasteful
expenditures. Finally, we find that a 50 percent discount is slightly
less than the average discount rural health care providers current
receive for telecommunications services under section 254(h)(1)(A).
29. We find that both rural and non-rural health care providers in
affected areas should be eligible for this temporary support. Section
254(h)(1)(A) limits support to health care providers in ``rural''
areas. In allowing the Commission discretion to establish competitively
neutral rules to enhance access to advanced telecommunications and
information services under section 254(h)(2)(A), however, Congress did
not specifically limit such access to rural health care providers.
Thus, we find that providing health care universal service support to
public or nonprofit health care providers that are not necessarily
serving ``rural areas,'' as defined in the 2004 Rural Health Care
Second Report and Order, is consistent with federal court precedent and
the mechanism's goal to provide health care providers with access to
modern telecommunications for medical and health maintenance purposes.
These areas have experienced the destruction of the telecommunications
network infrastructure and the obliteration of many buildings,
including homes,
[[Page 65856]]
medical, and other professional facilities, as well as the displacement
of a significant percentage of the population. Therefore, we find that,
in light of these extraordinary circumstances, both rural and non-rural
health care providers are eligible to receive rural health care
universal service support to serve the medical needs in the affected
areas. Consistent with the Commission's principles of competitive
neutrality, we find that eligible health care providers may receive
discounts for any advanced telecommunications and information service,
regardless of the platform as long as these services are used to treat
disaster victims with telemedicine applications.
30. In administering the universal service fund, we must ensure
that the goals of section 254 are met while preventing waste, fraud,
and abuse. For this reason, health care providers seeking support
pursuant to this Order shall certify that they meet the eligibility
requirements outlined herein. We also note that our rules require
applicants to select the most cost-effective, commercially available
service. We will carefully monitor the use of funds disbursed to
eligible entities under these new rules to ensure that all support is
utilized in accordance with Commission rules, and to ensure that
service providers do not charge unjust or unreasonable rates or seek to
lock health care providers into long-term contracts beyond Funding Year
2005. We reserve the right to recover any monies not used for their
intended purposes or, upon review, we determine were used wastefully.
2. Applicable Time Period
31. To qualify for this support, a health care provider should
submit documentation to demonstrate that it used advanced
telecommunications and information services for telemedicine
applications and to treat victims of Hurricane Katrina. The health care
provider should also certify that it used the services for the intended
purposes. Such health care providers should comply with the program's
document retention requirements and should maintain sufficient
documentation to demonstrate the reasonableness of costs in light of
the exigent circumstances. As noted above, all parties are subject to
potential audit by the Commission's OIG (or the Administrator working
under the OIG's oversight), and any party receiving more than $1
million in support will be automatically audited.
32. As noted below, the temporary order is effective immediately
upon release of this Order and continues through the end of Funding
Year 2005. Temporary health care support funding is available from
August 29, 2005 until June 30, 2006, which is the end of Funding Year
2005. Further, all health care providers eligible under these new rules
are permitted to amend their Funding Year 2005 applications to apply
for additional support, no later than 60 days after the release of this
Order. Applicants seeking support to obtain advanced telecommunications
and information services for telemedicine applications used to treat
victims of Hurricane Katrina should submit their FCC Form 465
postmarked no later than 60 days after release of this Order.
Applicants should comply with all program rules and requirements,
including the competitive bidding requirements.
D. Schools and Libraries Support
1. Need For and Description of Temporary Order
33. In this Order, we adopt temporary modifications to the schools
and libraries universal service support mechanism to meet the needs of
schools and libraries damaged by Hurricane Katrina. Approximately 600
schools and libraries in Alabama, Louisiana, and Mississippi may have
been affected by the hurricane and subsequent flooding. Many schools
and libraries in other states, although not damaged by the hurricane,
have an influx of hurricane evacuee students (and library patrons). We
are, on our own motion, waiving certain rules relating to the schools
and libraries universal service support mechanism (commonly referred to
as the E-rate program) on an emergency interim basis, as described
below. Waiver of these rules will preserve and advance universal
service by allowing schools and libraries in affected areas to restore
quickly their ability to provide students and communities with needed
telecommunications and information services.
34. Specifically, we (1) re-open the Funding Year 2005 filing
window for schools and libraries, and consortia of schools and
libraries, that were directly or indirectly affected by Hurricane
Katrina; (2) treat all schools and libraries directly affected by
Hurricane Katrina at the highest level of priority for Priority Two
services (i.e., 90 percent) for Funding Years 2005 and 2006; (3) allow
affected parties in eligible counties/parishes in Alabama, Louisiana,
and Mississippi to ``restart the clock'' for the purposes of
calculating compliance with the ``two-in-five'' rule; (4) allow program
participants in affected areas to substitute services or products in
one broad category for another; and (5) allow schools and libraries
serving displaced students and citizens to amend their Funding Year
2005 applications to account for the unexpected increase in population
by filing a special supplementary FCC Form 471 request for additional
funding.
35. In taking these actions, we balance the need for quick and
decisive action to restore the provision of telecommunications and
information services to schools and libraries with our overarching need
to protect the program against waste, fraud, and abuse. We emphasize,
however, that we will continue to be vigilant to ensure program
integrity and to detect and deter waste, fraud, and abuse, and pursue
enforcement action when appropriate. Our intent is not to allow double
recovery for damages related to telecommunications and information
services equipment funded under the schools and libraries universal
service support mechanism. For this reason, schools and libraries
affected by Hurricane Katrina requesting funding for the restoration of
their telecommunications and information systems pursuant to the
direction contained in this Order shall certify that the school or
library incurred substantial damage as a result of Hurricane Katrina
and that the services and products sought in their applications will be
solely used to restore the network to the functional equivalent of the
pre-Katrina degree of functionality (i.e., prior to August 29, 2005)
and that other resources (e.g., insurance or public assistance monies
provided by FEMA) are not available for restoration. In addition,
schools and libraries affected by Hurricane Katrina shall certify that
any alternative funding (e.g., insurance payments, FEMA support,
community resources) in excess of the cost for products or services
requested on their applications will be returned to the federal
Universal Service Fund. To the extent that schools and libraries are
handling increased populations of evacuees, schools and libraries shall
certify that: (1) There are more than a de minimis number of Hurricane
Katrina victims; and (2) the entity experienced an associated increase
in demand for supported services.
36. At the outset, we note that, in a number of instances, our
rules explicitly provide participants in the schools and libraries
program with specific requirements for requesting extensions of
deadlines or waivers of certain Commission rules due to the occurrence
of unforeseen events such as Hurricane
[[Page 65857]]
Katrina. Thus, we emphasize that the actions taken here do not
represent the entirety of the relief that may be available to E-rate
program participants in affected areas. We are committed to addressing
all requests for hurricane assistance in an expeditious manner.
37. Under the Commission's rules, universal service funds are
available to fund discounts for eligible schools and libraries and
consortia of such eligible entities on a first-come, first-served
basis. Each year, the Administrator implements an initial filing period
that treats all schools and libraries filing within that period as if
their applications were simultaneously received. The initial filing
period begins on the date that the Administrator begins to receive
applications for support, and concludes on a date to be determined by
the Administrator.
38. In light of the extensive property damage, including damage to
the telecommunications and information systems employed by participants
in the schools and libraries universal service support mechanism,
caused by Hurricane Katrina in the Gulf Coast states, we waive section
54.507(c) of our rules and re-open the Funding Year 2005 filing window
for schools and libraries, and consortia of schools and libraries, that
were directly or indirectly affected by Hurricane Katrina to the extent
set forth in this Order. The filing window shall be open for sixty days
following the date of release of this Order. By waiving Sec. 54.507(c)
of our rules, and reopening the filing window for Funding year 2005 for
schools and libraries affected directly by Hurricane Katrina, affected
program participants in Alabama, Louisiana, and Mississippi can begin
repairing and restoring needed telecommunications and information
services quickly and rapidly. Moreover, as described more fully below,
we recognize that certain schools and libraries may require additional
funding to support the needs of students and citizens displaced by
Hurricane Katrina although they have not been directly affected by
these events. Accordingly, for the reasons stated above, we find that
due to this natural disaster, good cause exists for waiving Sec.
54.507(c) for these schools and libraries and that such waiver is in
the public interest.
39. Under the Commission's rules, eligible schools and libraries
may receive discounts ranging from 20 percent to 90 percent of the pre-
discount price of eligible services, based on indicators of need.
Schools and libraries in areas with higher percentages of students
eligible for free or reduced-price lunch through the National School
Lunch Program (or a federally approved alternative mechanism) qualify
for higher discounts for eligible services than applicants with low
levels of eligibility for such programs. Schools and libraries located
in rural areas also generally receive greater discounts. The
Commission's priority rules provide that requests for
telecommunications services, voice mail and Internet access for all
discount categories shall receive first priority for the available
funding (Priority One services). The remaining funds are allocated to
requests for support for internal connections (Priority Two services),
beginning with the most economically disadvantaged schools and
libraries, as determined by the schools and libraries discount matrix.
Currently, the most disadvantaged schools and libraries are eligible
for a 90 percent discount on eligible services, and thus must pay only
10 percent of the cost of the service. To the extent funds remain after
discounts are awarded to entities eligible for a 90 percent discount,
the rules provide that the Administrator shall continue to allocate
funds for discounts to applicants at each descending single discount
percentage. The Commission's rules also provide that if sufficient
funds do not exist to grant all requests within a single discount
percentage, the Administrator shall allocate the remaining support on a
pro rata basis over that single discount percentage level.
40. In light of the extensive property damage, including damage to
the telecommunications and information systems employed by participants
in the schools and libraries universal service support mechanism,
caused by Hurricane Katrina in the Gulf Coast states, we find good
cause to waive Sec. 54.507 of our rules and treat all schools and
libraries directly affected by Hurricane Katrina at the highest level
of priority for Priority Two services (i.e., 90 percent) for Funding
Years 2005 and 2006. We recognize that program participants in Alabama,
Louisiana, and Mississippi most affected by Hurricane Katrina may have
need for an immediate indication of whether they are likely to receive
funds for Priority Two services. By waiving Sec. 54.507 of our rules,
and treating all affected schools and libraries at the highest level of
priority, affected program participants in Alabama, Louisiana, and
Mississippi can fully anticipate the amount of funding they will
receive from the universal service fund, and begin the task of
developing a cogent, feasible, and sustainable plan to resume the
provision of needed telecommunications and information services. We
anticipate that treating all affected schools and libraries at the
highest priority level could result in the disbursement of
approximately $96 million in E-rate funds for the approximately 600
schools and libraries in Alabama, Louisiana, and Mississippi affected
by Hurricane Katrina. We note that these funds have already been
collected by the Universal Service Fund, and would not have an impact
on the long-term viability of the universal service program.
Accordingly, we find that good cause exists for waiving Sec. 54.507
for affected entities and that such waiver is in the public interest.
41. We expect that the neediest schools and libraries will receive
requested funding for Funding Year 2005 for both Priority One and
Priority Two services. We note that, after applications from the
disaster-struck schools and libraries are submitted and reviewed, we
may be able to authorize funding nation-wide requests for any deferred
requests for Priority Two internal connections service for Funding Year
2005. The Commission's rules require the Administrator to report the
amount of unused funds available from prior funding years on a
quarterly basis. Based on our past experience, significant funds are
identified as available for use in future funding years. In fact, the
E-rate Coordinators from Alabama, Louisiana, and Mississippi estimate
that unused funds from prior funding years will be available to carry
over for Funding Year 2005 and could be used to fund Hurricane Katrina
restoration. Because we are re-opening the funding year 2005 filing
window, such funds previously identified as unused by the Administrator
may be available to provide support to the disaster-struck schools and
libraries. We recognize that demand for services from the schools and
libraries struck by Hurricane Katrina may vary after these entities
complete their internal reviews and prepare the necessary program
applications. We will closely monitor this situation and, to the extent
unused funds from prior funding years are available, we anticipate that
these funds will be used and that Priority Two funding may be available
for additional applicants.
42. Finally, we note that the Commission requires that an entity
must pay the entire undiscounted portion of the cost of any services it
receives through the schools and libraries program. Moreover, our rules
prohibit the provision of free services to an eligible entity by a
service provider that is also providing discounted services to the
entity. The Commission has
[[Page 65858]]
previously found that, for the purpose of this program, the provision
of unrelated free services by a service provider to an eligible entity
constitutes a rebate of the undiscounted portion of the costs of
services, in violation of our rules. We clarify that to the extent
schools and libraries receive FEMA assistance for projects, such
assistance may be applied to the undiscounted portion of the bill. As
part of our efforts to respond to the damage caused by Hurricane
Katrina, we will continue to examine whether waiver of this rule is
warranted to aid affected schools and libraries to restore the
provision of service to students and communities.
43. Under the Commission's rules, eligible entities may receive
commitments for discounts on Priority Two services (internal
connections) no more than twice every five funding years (the ``two-in-
five'' rule). For the purpose of determining eligibility, the five-year
period may begin in any funding year in which the school or library
receives discounted internal connections services other than basic
maintenance services.
44. We find that due to the damage to information and
telecommunications systems caused by Hurricane Katrina in the Gulf
Coast states, many participants in the schools and libraries universal
service support mechanism are likely to need to replace their internal
connections services, and thus will seek commitments for discounts on
Priority Two services despite already receiving such commitments in the
recent past. For these entities, we waive our rule pertaining to the
frequency of discounts for internal connections services to allow
affected parties in Alabama, Louisiana, and Mississippi to ``restart
the clock'' for the purposes of calculating compliance with the ``two-
in-five'' rule. For such participants, Funding Year 2006 will thus
serve as the first year of the five-year period for determining
eligibility for funding for these services. We recognize that program
participants in Alabama, Louisiana, and Mississippi affected by
Hurricane Katrina may need funding to replace damaged or destroyed
internal connections services, and should not be denied support
payments simply due to the timing and frequency of previous requests
for funding for internal connections. We limit this relief to schools
and libraries in the Hurricane Katrina disaster area that incurred
substantial damage as a result of the hurricane. Accordingly, for the
reasons stated above, we find that due to this natural disaster, good
cause exists for waiving Sec. 54.506(c) for affected entities and that
such waiver is in the public interest. To qualify for this waiver,
parties should submit a request describing the damage incurred to the
equipment that needs to be replaced.
45. Section 54.504(f) of the Commission's rules allows the
Administrator to grant a request by an applicant to substitute a
service or product for another where the service or product has the
same functionality; the substitution does not violate any contract
provisions or state or local procurement laws; the substitution does
not result in an increase in the percentage of ineligible services or
functions; and the applicant certifies that the requested change is
within the scope of the controlling FCC Form 470. On our own motion, we
waive the requirement that, for purposes of Sec. 54.504(f), the
substituted service or product must have the same functionality as the
service it is replacing. Thus, program participants in affected areas
may substitute services in one broad category (e.g., telecommunications
service, Internet access, and internal connections) for those in
another. Along these same lines, we will permit the use of approved
funds for any facilities or services that need to be replaced due to
the natural disaster to the extent that they were initially funded
under the program. We recognize that program participants in Alabama,
Louisiana, and Mississippi affected by Hurricane Katrina may seek
needed funding to replace damaged or destroyed services and equipment,
and that it is in the public interest to allow the replacement of such
services and equipment with funds previously granted for other services
and equipment. Accordingly, we find that due to this natural disaster,
good cause exists for waiving Sec. 54.504(f) for affected entities and
that such waiver is in the public interest. For any eligible school,
library or consortium in affected areas, such service substitutions
will be limited to funds received from applications from Funding Year
2005.
46. Certain schools, although not directly affected by Hurricane
Katrina, may have been indirectly impacted nonetheless due to the
influx of displaced students into their district. For example,
additional students may make use of school services and resources in a
manner originally unanticipated when the schools' technology plans were
developed and funding requested, thereby taxing information and
telecommunication services beyond their usual capability. In some
instances, the addition of students displaced due to Hurricane Katrina
may cause a school to become eligible for a higher discount level due
to an increase in the percentage of the student body eligible for the
National School Lunch Program. To provide an opportunity for schools to
handle the unforeseen consequences of Hurricane Katrina and the influx
of new students and patrons, we will allow schools and libraries
serving displaced students and citizens to amend their Funding Year
2005 applications to account for the unexpected increase in population
by filing a special supplementary FCC Form 471 request for additional
funding. In accordance with our direction here, such schools may amend
their original funding requests. We instruct the Schools and Libraries
Division (``SLD'') of the Administrator to accept and immediately
process requests for additional funding from such schools for sixty
days following the date of this Order. We recognize that certain
schools and libraries may need to adjust their requests for USF support
in light of Hurricane Katrina even though they have not been directly
damaged by these events. Accordingly, we find that due to this
catastrophic natural disaster, good cause exists for waiving Sec.
54.507(c) for these schools and libraries and that such waiver is in
the public interest. Schools and libraries affected by Hurricane
Katrina requesting additional funding to support the needs of displaced
citizens shall submit a certification indicating the approximate number
of additional students or citizens expected to be served by the
telecommunications and information services, and that the services and
products sought in their applications are necessary to serve these
additional, unanticipated needs. We estimate that this increase in
funding will be approximately $36 million. We note that these funds
have already been collected and should not have an impact on the long-
term viability of the universal service program.
47. Because we want to ensure the schools and libraries harmed by
Hurricane Katrina receive targeted support, we direct the
Administrator, in reviewing revised or supplemented requests for E-rate
support, to determine whether the impact of Hurricane Katrina was de
minimis (e.g., a small number of students or patrons that necessitates
no increased demand for supported services). Schools and libraries
should not submit revised applications if they are getting a de minimis
increase in students or patrons as a result of Hurricane Katrina. We
recognize that this determination may depend upon specific facts and
circumstances. Thus, applicants should submit the number of increased
students and library patrons
[[Page 65859]]
(both pre-Hurricane Katrina and post-Hurricane Katrina) and certify
that the number is accurate. We also require schools and libraries to
maintain documentation in support of these increased numbers. We
authorize the state E-rate coordinators for Alabama, Louisiana, and
Mississippi to review e-rate applications to ensure that schools and
libraries were substantially damaged and that their requests will be
free of waste, fraud, and abuse. In addition, for those schools and
libraries handling increased students/patron evacuees, we authorize
these E-rate coordinators to review whether the schools/libraries are
handling more than a de minimis number of increased students/patrons.
We note that the state E-rate coordinators for Alabama, Mississippi,
and Louisiana will coordinate the application process to limit the
potential for waste, fraud, and abuse. We authorize this additional
oversight review activity. We expect such review efforts would include
verifying that schools and libraries in their states seeking this
temporary relief meet the de minimis standard. We will carefully
monitor the use of funds disbursed to ensure that all support is
utilized in accordance with Commission rules, and to ensure that
service providers do not charge unjust or unreasonable rates. We
reserve the right to recover any monies not used for their intended
purposes or, upon review, we determine were used wastefully.
2. Eligibility
48. The temporary order adopted and waivers granted herein apply to
schools, libraries, and consortia of schools and libraries in the
federally-declared Hurricane Katrina disaster areas in the states of
Louisiana, Mississippi, and Alabama and in surrounding areas, for the
counties/parishes designated by FEMA as eligible for individual
assistance. Furthermore, because the residents of the most devastated
areas will likely have to relocate for an extended period of time, we
expand eligibility of funds from the schools and libraries support
mechanism to schools and libraries (and consortia of eligible schools
and libraries) located in areas that receive citizens evacuated from
the hardest hit areas. Initial reports show these areas to include all
counties in Texas and Arkansas that are contiguous with Louisiana and
Mississippi; the counties of Escambia, Santa Rosa, Okaloosa, Walton,
and Bay in Florida; the counties of Harris, Dallas, Tarrant and Bexar
in Texas; the county of Pulaski in Arkansas; and the county of Shelby
in Tennessee. Schools and libraries that believe they are eligible
under this standard should retain documentation of the number of
additional students and citizens to be supported by telecommunications
and information services.
49. The E-rate Funding Year 2005 application window is reopened for
certain schools, libraries, and consortia directly and indirectly
affected by the hurricane, as set out above. The window reopens on the
release date of this Order and closes 60 days after. Any application or