General Policies, Types of Loans, Loan Requirements-Telecommunications, 65724-65726 [E8-26318]
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Federal Register / Vol. 73, No. 215 / Wednesday, November 5, 2008 / Rules and Regulations
program under section 1207 of the Food,
Conservation, and Energy Act of 2008
(Pub. L. 110–246, referred to commonly
as the ‘‘2008 Farm Bill’’).
(b) CCC will prescribe forms used in
administering Economic Adjustment
Assistance to Users of Upland Cotton.
§ 1427.101
Eligible upland cotton.
(a) For purposes of this subpart,
eligible upland cotton is baled upland
cotton, regardless of origin, that is
opened by an eligible domestic user on
or after August 1, 2008, and is either:
(1) Baled lint, including baled lint
classified by USDA’s Agricultural
Marketing Service as Below Grade;
(2) Loose samples removed from
upland cotton bales for classification
purposes that have been rebaled;
(3) Semi-processed motes that are of
a quality suitable, without further
processing, for spinning, papermaking,
or production of non-woven fabric; or
(4) Re-ginned (processed) motes.
(b) Eligible upland cotton must not be:
(1) Cotton for which a payment, under
the provisions of this subpart, has been
made available;
(2) Raw (unprocessed) motes, pills,
linters, or other derivatives of the lint
cleaning process; or
(3) Textile mill wastes.
§ 1427.102
Eligible domestic users.
(a) For purposes of this subpart, a
person regularly engaged in the business
of opening bales of eligible upland
cotton for the purpose of spinning,
papermaking, or processing of nonwoven cotton fabric in the United
States, who has entered into an
agreement with CCC to participate in
the upland cotton user program, will be
considered an eligible domestic user.
(b) Applications for payment under
this subpart must contain
documentation required by the
provisions of the Upland Cotton
Domestic User Agreement and other
instructions that CCC issues.
hsrobinson on PROD1PC76 with RULES
§ 1427.103 Upland cotton Domestic User
Agreement.
(a) Payments specified in this subpart
will be made available to eligible
domestic users who have entered into
an Upland Cotton Domestic User
Agreement with CCC and who have
complied with the terms and conditions
in this subpart, the Upland Cotton
Domestic User Agreement, and
instructions issued by CCC.
(b) Upland Cotton Domestic User
Agreements may be obtained from
Contract Reconciliation Division,
Kansas City Commodity Office (KCCO),
P.O. Box 419205, Stop 8758, Kansas
City, Missouri 64141–6205. In order to
VerDate Aug<31>2005
16:01 Nov 04, 2008
Jkt 217001
participate in the program authorized by
this subpart, domestic users must
execute the Upland Cotton Domestic
User Agreement and forward the
original and one copy to KCCO.
■
§ 1427.104
*
Payment rate.
b. Revise paragraph (b) to read as set
forth below.
■ c. Amend paragraph (c) by removing
the second sentence.
§ 1427.160
Applicability.
(a) Beginning August 1, 2008 and
ending July 31, 2012, the payment rate
for purposes of calculating payments as
specified in this subpart will be 4 cents
per pound.
(b) Beginning August 1, 2012, the
payment rate for purposes of calculating
payments as specified in this subpart
will be 3 cents per pound.
*
*
*
*
(b) Loan rates and the forms that are
used in administering the recourse seed
cotton loan program for a crop of cotton
are available in FSA State and county
offices. Loan rates will be based on the
base quality loan rate for upland cotton
and the national average loan rate for
extra long staple cotton.
*
*
*
*
*
§ 1427.105
Subpart F—[Removed and Reserved]
Payment.
(a) Payments specified in this subpart
will be determined by multiplying:
(1) The payment rate, determined as
specified in § 1427.104, by
(2) The net weight (gross weight
minus the weight of bagging and ties),
determined as specified in paragraph (b)
of this section, of eligible upland cotton
bales an eligible domestic user opens
during the immediately preceding
calendar month.
(b) For the purposes of this subpart,
the net weight will be determined based
on the net weight of the cotton used, but
not to exceed the last available certified
weight;
(c) For the purposes of this subpart,
eligible upland cotton will be
considered consumed by the domestic
user on the date the bale is opened for
consumption.
(d) Payments specified in this subpart
will be made available upon application
for payment and submission of
supporting documentation, as required
by the CCC-issued provisions of the
Upland Cotton Domestic User
Agreement.
(e) All payments received by the
agreement holder must be used for
purposes as specified in section 1207 of
the Food, Conservation, and Energy Act
of 2008 (Pub. L. 110–246, referred to
commonly as the 2008 Farm Bill).
Authorized expenditures include
acquisition, construction, installation,
modernization, development,
conversion, or expansion of land, plant,
buildings, equipment, facilities, or
machinery. Such capital expenditures
must be directly attributable and
certified as such by the user for the
purpose of manufacturing upland cotton
into eligible cotton products in the
United States.
■ 24. Amend § 1427.160 as follows:
■ a. Amend paragraph (a) by removing
the words ‘‘2002 through 2007’’ and
adding, in their place, ‘‘2008 through
2012.’’
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Fmt 4700
Sfmt 4700
25. Remove and reserve Subpart F.
26. Amend § 1427.1203 as follows:
a. Amend paragraphs (a)(1) and (a)(2)
by removing the date ‘‘October 1, 1999’’
and adding, in its place, the date ‘‘June
18, 2008.’’
■
■
■
Subpart H—[Removed]
■
27. Remove Subpart H.
Signed at Washington, DC, on October 30,
2008.
Thomas B. Hofeller,
Acting Executive Vice President, Commodity
Credit Corporation.
[FR Doc. E8–26343 Filed 10–31–08; 4:15 pm]
BILLING CODE 3410–05–P
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1735
RIN 0572–AC13
General Policies, Types of Loans, Loan
Requirements—Telecommunications
Rural Utilities Service, USDA.
Direct final rule.
AGENCY:
ACTION:
SUMMARY: The Rural Utilities Service, an
agency delivering the United States
Department of Agriculture (USDA)
Rural Development Utilities Program,
hereinafter referred to as Rural
Development and/or the Agency,
amends its regulations for the
Telecommunications Loan Program
(Loan Program). The Agency has
reviewed its criteria for approving loans
and has determined that modifications
to the Loan Program regulations are
required in order to ensure that some
financially sound applicants are not
excluded from the Loan Program.
The Agency is proposing to amend its
regulations to modify the Times Interest
Earned Ratio (TIER) requirements that
E:\FR\FM\05NOR1.SGM
05NOR1
hsrobinson on PROD1PC76 with RULES
Federal Register / Vol. 73, No. 215 / Wednesday, November 5, 2008 / Rules and Regulations
an applicant must comply with when
receiving a loan. This direct final rule is
part of an ongoing Agency project to
update Agency policies to enable
borrowers to provide reliable, modern
telecommunications service at
reasonable costs in rural areas, while
maintaining the security and feasibility
of the Government’s loans.
DATES: This rule is effective December
22, 2008, without further action, unless
the Agency receives adverse comments
or, submits in writing intent to submit
an adverse comment, by December 5,
2008. Written adverse comments or,
intent to submit an adverse comment,
must be received by Rural Development
or carry a postmark or equivalent no
later that December 5, 2008. If adverse
comments are received, the Agency will
publish a timely Federal Register
document withdrawing this rule.
ADDRESSES: Submit adverse comments
by either of the following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov and in the
‘‘Search Documents’’ box, enter RUS–
08–Telecom–0002, and select GO>>. To
submit a comment, choose ‘‘Send a
comment or submission,’’ under the
Docket Title. In order to submit your
comment, the information requested on
the ‘‘Public Comment and Submission
Form,’’ must be completed. Information
on using Regulations.gov, including
instructions for accessing documents,
submitting comments, and viewing the
docket after the close of the comment
period, is available through the site’s
‘‘How to Use this Site’’ link.
• Postal Mail/Commercial Delivery:
Please send your comment addressed to
Michele Brooks, Director, Program
Development and Regulatory Analysis,
USDA Rural Development, STOP 1522,
Room 5159, 1400 Independence
Avenue, Washington, DC 20250–1522.
Please state that your adverse comment
refers to Docket No. RUS–08–Telecom–
0002.
• Other Information: Additional
information about Rural Development
and its programs is available at https://
www.rurdev.usda.gov/.
FOR FURTHER INFORMATION CONTACT: Jerry
H. Brent, Director, Northern Division,
Telecommunications Program, USDA
Rural Development, STOP 1595, 1400
Independence Avenue, SW.,
Washington, DC 20250–1595,
Telephone (202)720–1025, Facsimile
(202) 690–4654. E-mail address:
jerry.brent@usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This direct final rule has been
determined to be not significant for
VerDate Aug<31>2005
16:01 Nov 04, 2008
Jkt 217001
65725
purposes of Executive Order 12866, and
therefore has not been reviewed by the
Office of Management and Budget
(OMB).
553, or any other law, the analytical
requirements of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) are
inapplicable.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic
Assistance (CFDA) Program number
assigned to the Rural Development
Utilities Telecommunications Loans and
Loan Guarantees Program is 10.851. The
CFDA is available on a subscription
basis from the Superintendent of
Documents, the United States
Government Printing Office,
Washington, DC 20402–9325; telephone
(202) 512–1800.
Unfunded Mandates
This direct final rule contains no
Federal mandates (under the regulatory
provision of Title II of the Unfunded
Mandates Reform Act of 1995) for State,
local, and tribal governments or the
private sector. Therefore, this direct
final rule is not subject to the
requirements of sections 202 and 205 of
the Unfunded Mandates Reform Act of
1995.
Executive Order 12372
This program is not subject to the
requirements of Executive Order 12372,
‘‘Intergovernmental Review of Federal
Programs,’’ as implemented under
USDA’s regulations at 7 CFR part 3015.
Executive Order 12988
This direct final rule has been
reviewed under Executive Order 12988,
Civil Justice Reform. The Agency has
determined that this rule meets the
applicable standards provided in
section 3 of the Executive Order. In
addition, all state and local laws and
regulations that are in conflict with this
rule will be preempted, no retroactive
effect will be given to this rule, and, in
accordance with Sec 212(e) of the
Department of Agriculture
Reorganization Act of 1994 (7 U.S.C.
6912(e)), administrative appeal
procedures, if any, must be exhausted
before an action against the Department
or its agencies may be initiated.
Executive Order 13132, Federalism
The policies contained in this direct
final rule do not have any substantial
direct effect on states, on the
relationship between the national
government and the states, or on the
distribution of power and
responsibilities among the various
levels of government. Nor does this
direct final rule impose substantial
direct compliance costs on state and
local governments. Therefore,
consultation with states is not required.
Regulatory Flexibility Act Certification
Pursuant to 5 U.S.C. 553(a)(2), this
final rule is exempt from the rulemaking
requirements of the Administrative
Procedure Act (5 U.S.C. 551 et seq.),
including the requirement to provide
prior notice and an opportunity for
public comment. Because this final rule
is not subject to a requirement to
provide prior notice and an opportunity
for public comment pursuant to 5 U.S.C.
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
Environmental Impact Statement
This direct final rule has been
examined under Agency environmental
regulations at 7 CFR part 1794. The
Administrator has determined that this
action is not a major Federal action
significantly affecting the environment.
Therefore, in accordance with the
National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.), an
Environmental Impact Statement or
Assessment is not required.
Information Collection and
Recordkeeping Requirements
This direct rule contains no new
reporting or recordkeeping burdens
under OMB control number 0572–0079
that would require approval under the
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35).
Background
Overview
Rural Development improves the
quality of life in rural America by
providing investment capital, in the
form of loans and grants, for the
deployment of rural
telecommunications infrastructure.
Financial assistance is provided to rural
utilities; municipalities; commercial
corporations; limited liability
companies; public utility districts;
Indian tribes; and cooperative,
nonprofit, limited-dividend, or mutual
associations. In order to achieve the goal
of increasing economic opportunity in
rural America, the Agency finances
infrastructure that enables access to a
seamless, nationwide
telecommunications network. With
access to the same advanced
telecommunications networks of its
urban counterparts, especially
broadband networks designed to
accommodate distance learning,
telework and telemedicine, rural
America will see improving educational
opportunities, health care, economies,
safety and security, and ultimately
higher employment. The Agency is
E:\FR\FM\05NOR1.SGM
05NOR1
65726
Federal Register / Vol. 73, No. 215 / Wednesday, November 5, 2008 / Rules and Regulations
hsrobinson on PROD1PC76 with RULES
committed to ensuring that rural areas
will have access to affordable, reliable,
advanced telecommunications services,
comparable to those available
throughout the rest of the United States,
to provide a healthy, safe and
prosperous place to live and work.
While the Agency is proud of the
results it has achieved in Rural America
with the Telecommunications Loan
Program, it believes that the overall
effectiveness of the program can be
improved by modifying the existing
rules. The change to the current
regulation will permit additional
financially sound borrowers, who
clearly meet the intent of the
Telecommunications Loan Program, to
be eligible to participate in the program.
Discussion of Changes
Facilities financed by the Loan
Program are typically constructed over a
five year period (Forecast Period). The
feasibility studies used to demonstrate
that an applicant is eligible for a loan
and can repay it assumes this Forecast
Period. The feasibility study is also used
to forecast the applicant’s Times Interest
Earned Ratio or TIER. The TIER is one
measure of an applicant’s ability to
repay the loan. Currently, the regulation
states that applicants must maintain a
TIER of at least 1.0 during the Forecast
Period. At the end of the Forecast
Period, the applicant shall be required
to maintain, at a minimum, a TIER at
least equal to the projected TIER
determined by the feasibility study
prepared in connection with the loan,
but at least 1.0 and not greater than 1.5.
The requirement that an applicant
maintain a TIER of at least 1.0 during
the Forecast Period, arbitrarily and
unfairly disqualifies some applicants
from the Loan Program. During the
Forecast Period as an applicant
constructs facilities, there is always a
delay from the time that the
construction is initiated to the time that
construction is completed and revenues
increase based upon the new
subscribers connected and new services
offered. During this period, it would not
be unusual for the applicant’s TIER to
be less than 1.0. This occurrence is not
generally an indicator that the applicant
is in financial difficulty, but a direct
result of the time lag associated with
construction of facilities. In addition,
the current provision effectively
disqualifies any start up or new entity
from qualifying for the Loan Program. In
many cases these newer entities, and the
rural residents they serve, are the ones
that stand to benefit the greatest from
the program.
This change would not constitute a
loan security risk as an applicant’s
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16:01 Nov 04, 2008
Jkt 217001
financial performance is continuously
monitored and the advance of loan
funds can be suspended should the
situation warrant such action. In
addition, the applicant would still be
required to maintain the projected TIER
at the end of the Forecast Period.
List of Subjects in 7 CFR 1735
Loan programs—communications,
Rural Areas, Telecommunications and
Telephone.
■ For reasons set forth in the preamble,
the Agency amends Chapter XVII of title
7 of the Code of Federal Regulations by
revising part 1735 as follows:
PART 1735—GENERAL POLICIES,
TYPES OF LOANS, LOAN
REQUIREMENTS—
TELECOMMUNICATIONS PROGRAM
1. The authority citation for part 1735
continues to read as follows:
■
Authority: 7 U.S.C. 901 et seq., 1921 et
seq., and 6941 et seq.
2. In § 1735.22, paragraph (g) is
revised to read as follows:
■
§ 1735.22
Loan Security.
Subpart B—Loan Purposes
*
*
*
*
*
(g) For Loans approved after
December 22, 2008, the borrower shall
be required to maintain a TIER, at the
end of the Forecast Period, at least equal
to the projected TIER determined by the
feasibility study prepared in connection
with the loan, which shall be at least 1.0
and not greater than 1.5.
*
*
*
*
*
Dated: September 8, 2008.
James M. Andrew,
Administrator, Rural Utilities Service.
[FR Doc. E8–26318 Filed 11–4–08; 8:45 am]
BILLING CODE 3410–15–P
DEPARTMENT OF VETERANS
AFFAIRS
38 CFR Parts 3 and 20
RIN 2900–AM77
Board of Veterans’ Appeals: Expedited
Claims Adjudication Initiative—Pilot
Program
Department of Veterans Affairs.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Department of Veterans
Affairs (VA) is launching an initiative
for accelerated claims and appeals
processing at four VA facilities, based
on voluntary participation by eligible
claimants. The purpose of this initiative
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
is to determine whether VA can
expedite the processing of claims and
appeals by obtaining claimants’ waivers
of certain statutory and regulatory
response periods, and by utilizing the
Board of Veterans’ Appeals’ (Board or
BVA) statutory authority to pre-screen
cases. VA’s responsibility to fully
develop and decide cases in a fair,
accurate, and non-adversarial manner
remains unchanged under this
initiative. If this initiative is successful
at the four trial sites, the data obtained
may provide a basis for expanding
some, or all, of the program nationwide,
and ultimately help accelerate the
processing of all claims and appeals.
The parameters of the initiative are set
forth in these regulations.
DATES: Effective Date: The final rule is
effective December 5, 2008.
FOR FURTHER INFORMATION CONTACT:
Steven L. Keller, Principal Deputy Vice
Chairman, Board of Veterans’ Appeals
(012), Department of Veterans Affairs,
810 Vermont Avenue, NW.,
Washington, DC 20420, (202) 461–8078.
(This is not a toll-free number.)
SUPPLEMENTARY INFORMATION: In a
document published in the Federal
Register on April 16, 2008 (73 FR
20571), VA proposed to launch an
initiative for accelerated claims and
appeals processing at four VA facilities.
This initiative would establish a 2-year
pilot program known as the Expedited
Claims Adjudication (ECA) Initiative
(Initiative). The goal of the Initiative
would be to determine whether VA can
expedite the claims and appeals process
by obtaining claimants’ waivers of
certain statutory and regulatory
response periods, and by pre-screening
cases at the Board to determine the
adequacy of the record for appellate
review. As proposed, participation in
the Initiative would be strictly
voluntary, and open to claimants
residing in the jurisdiction of one of the
four trial sites. Additionally, claimants
would be required to be represented by
a recognized Veterans Service
Organization (VSO) or an accredited
agent or attorney at the time of electing
to participate in the Initiative. The ECA
Initiative would be predicated on the
claimant agreeing, at the beginning of
the claims process, to waive certain
identified statutory and regulatory time
limits and processing actions, which
would be carefully outlined in an ECA
Initiative Agreement and Waiver of
Rights (ECA Agreement). ECA
participation would be effectuated only
if both the claimant and his or her
representative sign the ECA Agreement,
certifying that the claimant has
consulted with his or her representative
E:\FR\FM\05NOR1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 215 (Wednesday, November 5, 2008)]
[Rules and Regulations]
[Pages 65724-65726]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26318]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1735
RIN 0572-AC13
General Policies, Types of Loans, Loan Requirements--
Telecommunications
AGENCY: Rural Utilities Service, USDA.
ACTION: Direct final rule.
-----------------------------------------------------------------------
SUMMARY: The Rural Utilities Service, an agency delivering the United
States Department of Agriculture (USDA) Rural Development Utilities
Program, hereinafter referred to as Rural Development and/or the
Agency, amends its regulations for the Telecommunications Loan Program
(Loan Program). The Agency has reviewed its criteria for approving
loans and has determined that modifications to the Loan Program
regulations are required in order to ensure that some financially sound
applicants are not excluded from the Loan Program.
The Agency is proposing to amend its regulations to modify the
Times Interest Earned Ratio (TIER) requirements that
[[Page 65725]]
an applicant must comply with when receiving a loan. This direct final
rule is part of an ongoing Agency project to update Agency policies to
enable borrowers to provide reliable, modern telecommunications service
at reasonable costs in rural areas, while maintaining the security and
feasibility of the Government's loans.
DATES: This rule is effective December 22, 2008, without further
action, unless the Agency receives adverse comments or, submits in
writing intent to submit an adverse comment, by December 5, 2008.
Written adverse comments or, intent to submit an adverse comment, must
be received by Rural Development or carry a postmark or equivalent no
later that December 5, 2008. If adverse comments are received, the
Agency will publish a timely Federal Register document withdrawing this
rule.
ADDRESSES: Submit adverse comments by either of the following methods:
Federal eRulemaking Portal: Go to https://
www.regulations.gov and in the ``Search Documents'' box, enter RUS-08-
Telecom-0002, and select GO>>. To submit a comment, choose ``Send a
comment or submission,'' under the Docket Title. In order to submit
your comment, the information requested on the ``Public Comment and
Submission Form,'' must be completed. Information on using
Regulations.gov, including instructions for accessing documents,
submitting comments, and viewing the docket after the close of the
comment period, is available through the site's ``How to Use this
Site'' link.
Postal Mail/Commercial Delivery: Please send your comment
addressed to Michele Brooks, Director, Program Development and
Regulatory Analysis, USDA Rural Development, STOP 1522, Room 5159, 1400
Independence Avenue, Washington, DC 20250-1522. Please state that your
adverse comment refers to Docket No. RUS-08-Telecom-0002.
Other Information: Additional information about Rural
Development and its programs is available at https://
www.rurdev.usda.gov/.
FOR FURTHER INFORMATION CONTACT: Jerry H. Brent, Director, Northern
Division, Telecommunications Program, USDA Rural Development, STOP
1595, 1400 Independence Avenue, SW., Washington, DC 20250-1595,
Telephone (202)720-1025, Facsimile (202) 690-4654. E-mail address:
jerry.brent@usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This direct final rule has been determined to be not significant
for purposes of Executive Order 12866, and therefore has not been
reviewed by the Office of Management and Budget (OMB).
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance (CFDA) Program number
assigned to the Rural Development Utilities Telecommunications Loans
and Loan Guarantees Program is 10.851. The CFDA is available on a
subscription basis from the Superintendent of Documents, the United
States Government Printing Office, Washington, DC 20402-9325; telephone
(202) 512-1800.
Executive Order 12372
This program is not subject to the requirements of Executive Order
12372, ``Intergovernmental Review of Federal Programs,'' as implemented
under USDA's regulations at 7 CFR part 3015.
Executive Order 12988
This direct final rule has been reviewed under Executive Order
12988, Civil Justice Reform. The Agency has determined that this rule
meets the applicable standards provided in section 3 of the Executive
Order. In addition, all state and local laws and regulations that are
in conflict with this rule will be preempted, no retroactive effect
will be given to this rule, and, in accordance with Sec 212(e) of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
6912(e)), administrative appeal procedures, if any, must be exhausted
before an action against the Department or its agencies may be
initiated.
Executive Order 13132, Federalism
The policies contained in this direct final rule do not have any
substantial direct effect on states, on the relationship between the
national government and the states, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
direct final rule impose substantial direct compliance costs on state
and local governments. Therefore, consultation with states is not
required.
Regulatory Flexibility Act Certification
Pursuant to 5 U.S.C. 553(a)(2), this final rule is exempt from the
rulemaking requirements of the Administrative Procedure Act (5 U.S.C.
551 et seq.), including the requirement to provide prior notice and an
opportunity for public comment. Because this final rule is not subject
to a requirement to provide prior notice and an opportunity for public
comment pursuant to 5 U.S.C. 553, or any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are inapplicable.
Unfunded Mandates
This direct final rule contains no Federal mandates (under the
regulatory provision of Title II of the Unfunded Mandates Reform Act of
1995) for State, local, and tribal governments or the private sector.
Therefore, this direct final rule is not subject to the requirements of
sections 202 and 205 of the Unfunded Mandates Reform Act of 1995.
Environmental Impact Statement
This direct final rule has been examined under Agency environmental
regulations at 7 CFR part 1794. The Administrator has determined that
this action is not a major Federal action significantly affecting the
environment. Therefore, in accordance with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), an Environmental Impact
Statement or Assessment is not required.
Information Collection and Recordkeeping Requirements
This direct rule contains no new reporting or recordkeeping burdens
under OMB control number 0572-0079 that would require approval under
the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).
Background
Overview
Rural Development improves the quality of life in rural America by
providing investment capital, in the form of loans and grants, for the
deployment of rural telecommunications infrastructure. Financial
assistance is provided to rural utilities; municipalities; commercial
corporations; limited liability companies; public utility districts;
Indian tribes; and cooperative, nonprofit, limited-dividend, or mutual
associations. In order to achieve the goal of increasing economic
opportunity in rural America, the Agency finances infrastructure that
enables access to a seamless, nationwide telecommunications network.
With access to the same advanced telecommunications networks of its
urban counterparts, especially broadband networks designed to
accommodate distance learning, telework and telemedicine, rural America
will see improving educational opportunities, health care, economies,
safety and security, and ultimately higher employment. The Agency is
[[Page 65726]]
committed to ensuring that rural areas will have access to affordable,
reliable, advanced telecommunications services, comparable to those
available throughout the rest of the United States, to provide a
healthy, safe and prosperous place to live and work.
While the Agency is proud of the results it has achieved in Rural
America with the Telecommunications Loan Program, it believes that the
overall effectiveness of the program can be improved by modifying the
existing rules. The change to the current regulation will permit
additional financially sound borrowers, who clearly meet the intent of
the Telecommunications Loan Program, to be eligible to participate in
the program.
Discussion of Changes
Facilities financed by the Loan Program are typically constructed
over a five year period (Forecast Period). The feasibility studies used
to demonstrate that an applicant is eligible for a loan and can repay
it assumes this Forecast Period. The feasibility study is also used to
forecast the applicant's Times Interest Earned Ratio or TIER. The TIER
is one measure of an applicant's ability to repay the loan. Currently,
the regulation states that applicants must maintain a TIER of at least
1.0 during the Forecast Period. At the end of the Forecast Period, the
applicant shall be required to maintain, at a minimum, a TIER at least
equal to the projected TIER determined by the feasibility study
prepared in connection with the loan, but at least 1.0 and not greater
than 1.5.
The requirement that an applicant maintain a TIER of at least 1.0
during the Forecast Period, arbitrarily and unfairly disqualifies some
applicants from the Loan Program. During the Forecast Period as an
applicant constructs facilities, there is always a delay from the time
that the construction is initiated to the time that construction is
completed and revenues increase based upon the new subscribers
connected and new services offered. During this period, it would not be
unusual for the applicant's TIER to be less than 1.0. This occurrence
is not generally an indicator that the applicant is in financial
difficulty, but a direct result of the time lag associated with
construction of facilities. In addition, the current provision
effectively disqualifies any start up or new entity from qualifying for
the Loan Program. In many cases these newer entities, and the rural
residents they serve, are the ones that stand to benefit the greatest
from the program.
This change would not constitute a loan security risk as an
applicant's financial performance is continuously monitored and the
advance of loan funds can be suspended should the situation warrant
such action. In addition, the applicant would still be required to
maintain the projected TIER at the end of the Forecast Period.
List of Subjects in 7 CFR 1735
Loan programs--communications, Rural Areas, Telecommunications and
Telephone.
0
For reasons set forth in the preamble, the Agency amends Chapter XVII
of title 7 of the Code of Federal Regulations by revising part 1735 as
follows:
PART 1735--GENERAL POLICIES, TYPES OF LOANS, LOAN REQUIREMENTS--
TELECOMMUNICATIONS PROGRAM
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1. The authority citation for part 1735 continues to read as follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.
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2. In Sec. 1735.22, paragraph (g) is revised to read as follows:
Sec. 1735.22 Loan Security.
Subpart B--Loan Purposes
* * * * *
(g) For Loans approved after December 22, 2008, the borrower shall
be required to maintain a TIER, at the end of the Forecast Period, at
least equal to the projected TIER determined by the feasibility study
prepared in connection with the loan, which shall be at least 1.0 and
not greater than 1.5.
* * * * *
Dated: September 8, 2008.
James M. Andrew,
Administrator, Rural Utilities Service.
[FR Doc. E8-26318 Filed 11-4-08; 8:45 am]
BILLING CODE 3410-15-P
