ReConnect Pilot Program, 67913-67924 [2019-26522]
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Federal Register / Vol. 84, No. 239 / Thursday, December 12, 2019 / Notices
How To File a Complaint of
Discrimination
To file a complaint of discrimination,
complete the USDA Program
Discrimination Complaint Form, which
may be accessed online at https://
www.ocio.usda.gov/sites/default/files/
docs/2012/Complain_combined_6_8_
12.pdf, or write a letter signed by you
or your authorized representative.
Send your completed complaint form
or letter to USDA by mail, fax, or email:
Mail: U.S. Department of Agriculture,
Director, Office of Adjudication, 1400
Independence Avenue SW, Washington,
DC 20250–9410.
Fax: (202) 690–7442.
Email: program.intake@usda.gov.
Persons with disabilities who require
alternative means for communication
(Braille, large print, audiotape, etc.),
should contact USDA’s TARGET Center
at (202) 720–2600 (voice and TDD).
Carmen M. Rottenberg,
Administrator.
[FR Doc. 2019–26694 Filed 12–11–19; 8:45 am]
BILLING CODE 3410–DM–P
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
[Docket: USDA–2017–0002–0001]
ReConnect Pilot Program
Rural Utilities Service,
Department of Agriculture.
ACTION: Funding Opportunity
Announcement (FOA) and solicitation
of applications for second round of the
ReConnect Program.
AGENCY:
The Rural Utilities Service
(RUS), a Rural Development agency of
the United States Department of
Agriculture (USDA), hereinafter referred
to as the Agency, announces its general
policy and application procedures for
its second round of funding under the
broadband pilot program. This pilot
program was established pursuant to the
Consolidated Appropriations Act, 2018.
The Agency is announcing the
application window for this second
round of funding and requesting
comments on the program.
DATES:
Applications: Beginning on January
31, 2020, applications can be submitted
through the RUS on-line application
portal until 6:00 p.m. Eastern on March
16, 2020.
Comments: Comments due by March
16, 2020.
ADDRESSES: Application Submission:
Apply at https://reconnect.usda.gov.
Electronic applications will allow for
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SUMMARY:
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the expeditious review of an Applicant’s
proposal. As a result, all Applicants
must file their application electronically
at the above website.
Comments: For proper delivery, all
feedback or comments should specify
‘‘Identifying Regulatory Reform
Initiatives.’’
Electronic Submission. You may
submit comments electronically through
the Federal eRulemaking Portal: https://
www.regulations.gov using Docket ID:
USDA–2017–0002–0001. USDA strongly
encourages commenters to submit
comments electronically. Electronic
submission of comments allows you
maximum time to prepare and submit a
comment and ensures timely receipt by
USDA. Follow the instructions provided
on that site to submit comments
electronically.
Mail, Hand delivery, or Courier.
Paper, disk, or CD–ROM submissions
should be submitted to regulations@
obpa.usda.gov, Office of Budget and
Program Analysis, USDA, Jamie L.
Whitten Building, Room 101–A, 1400
Independence Ave. SW, Washington,
DC 20250.
FOR FURTHER INFORMATION CONTACT: For
general inquiries, contact Chad Parker,
Assistant Administrator
Telecommunications Program, Rural
Utilities Service, U.S. Department of
Agriculture (USDA), email:
chad.parker@usda.gov, telephone (202)
720–9554. You may obtain additional
information regarding applications at
https://reconnect.usda.gov.
SUPPLEMENTARY INFORMATION:
Background
On March 23, 2018, Congress passed
the Consolidated Appropriations Act,
2018 (the Act), which established a new
broadband loan and grant pilot program,
now called the Rural eConnectivity Pilot
Program (ReConnect Program). The Act
originally appropriated budget authority
of $600 million to be used on an
expedited basis. For fiscal year (FY)
2019, Congress funded an additional
$550 million for the pilot. The
ReConnect Program provides loans,
grants, and loan/grant combinations to
facilitate broadband deployment in rural
areas. In facilitating the expansion of
broadband services and infrastructure,
the pilot will fuel long-term rural
economic development and
opportunities in rural America. One of
those opportunities is precision
agriculture. The use of this technology
requires a robust broadband connection.
The awards made under this program
will bring high speed broadband to the
farms which will allow them to increase
productivity.
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67913
Applications
Please note that the application
process is designed so that an applicant
must demonstrate financial and
technical feasibility of the project and
the entire operation of the applicant.
Applicants that do not demonstrate
financial or technical feasibility will not
be considered for an award.
Apply at https://reconnect.usda.gov
from January 31, 2020, until 6:00 p.m.
Eastern on March 16, 2020. Electronic
applications will allow for the
expeditious review of an Applicant’s
proposal. As a result, all Applicants
must file their application electronically
at the above website.
Comments
For the first round of funding, the
United States Department of Agriculture
(USDA) determined that it was in the
public interest to move forward with
developing procedures for the
ReConnect Program within a Funding
Opportunity Announcement (FOA), as
is common with a pilot, instead of
rulemaking. Such a method would also
meet the statutory mandate of
expediting program delivery.
Notwithstanding the lack of rulemaking,
however, before USDA finalized and
published the FOA, it requested
informal comments from the public on
a wide range of issues to be considered
by the agency in the ReConnect
Program. See Notice of Inquiry and
Request for Comments, 83 FR 35609
(July 27, 2018). Once the FOA was
published, the application windows
were open between April 23, 2019 and
July 12, 2019.
Thereafter, the Agency received input
from applicants that participated in the
first funding round on issues which
included, but were not limited to: (1)
The availability of data; (2) frequency of
collection; (3) clarity of instructions; (4)
data elements to be recorded, disclosed,
or reported; (5) access to forms; and (6)
accessibility for troubleshooting. Based
on that input, the Agency made further
changes to the program, which are
discussed below.
Additionally, with this FOA, the
agency is now requesting that the public
again provide feedback on the program,
as was done with the July 27th Notice
of Inquiry. Specifically, the public is
requested to submit comments that
would inform any future rounds of
ReConnect funding, if any, or comments
on issues that should be addressed in
any future broadband program.
Additionally, and consistent with the
Department’s Regulatory Reform
Initiatives, the public is requested to
submit comments related to program
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Federal Register / Vol. 84, No. 239 / Thursday, December 12, 2019 / Notices
implementation, suggestions on
decreasing the public burden, etc.,
through the USDA request for
information published on July 17, 2017
(82 FR 32649). See ADDRESSES for
information about how to comment.
Authority: This solicitation is issued
pursuant to the Consolidated Appropriations
Act, 2018, Public Law 115–141, the
Consolidated Appropriations Act, 2019,
Public Law 116–6, and the Rural
Electrification Act of 1936, 7 U.S.C. 901 et
seq.
Overview
Federal Agency: Rural Utilities
Service, USDA.
Funding Opportunity Title: Rural
eConnectivity Pilot Program (ReConnect
Program).
Announcement Type: Funding
Opportunity Announcement (FOA) and
solicitation of applications.
Catalog of Federal Domestic
Assistance (CFDA) Number: Rural
eConnectivity Pilot Program (ReConnect
Program)—10.752.
Items in Supplementary Information
I. Overview
II. Summary of Changes
III. Definitions
IV. Substantially Underserved Trust Areas
V. Funding Opportunity Description
VI. Eligibility Information
VII. Application and Submission Information
VIII. Application Evaluation Criteria
IX. Notice of Proposed Funded Service Areas
X. Evaluation and Processing Procedures
XI. Award Administration Information
XII. Other Information
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I. Overview
On March 23, 2018, Congress passed
the Consolidated Appropriations Act,
2018 (the FY2018 Appropriations),
which established a broadband loan and
grant pilot program, the Rural
eConnectivity Pilot Program (hereinafter
the ReConnect Program). One of the
essential goals of the ReConnect
Program is to expand broadband service
to rural areas without sufficient access
to broadband, defined as 10 megabits
per second (Mbps) downstream and
1 Mbps upstream. For this purpose,
Congress provided RUS with $600
million and expanded its existing
authority to make loans and grants.
Additionally, the FY2018
Appropriations specifically authorized
technical assistance to assist the Agency
in expanding needed service to the most
rural communities where 90 percent of
the households are without sufficient
access to broadband service. Once again,
on January 3, 2019, Congress
appropriated (the FY2019
Appropriations) an additional $550
million to continue the ReConnect
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Program. To promote broadband in rural
America, RUS encourages state and
local jurisdictions to waive any fees
associated with granting rights-of-ways
and to assist applicants and awardees
with satisfying any environmental
requirements such as approval from the
State Historical Preservation Office.
II. Summary of Changes
The first funding round of the
Reconnect Program is considered a
success with the Agency receiving one
hundred and forty-six (146) submitted
applications for a total of over $1.4
billion. After a careful review of the
lessons learned during the first round of
funding, several changes are being
instituted for second funding round.
Those changes include, but are not
limited to, the following:
1. The application window for the
three categories of funding will be from
January 31, 2020 through March 16,
2020.
2. Definitions have been added for
healthcare and educational facilities and
the name for critical community
facilities has been changed to essential
community facilities.
3. For 100 percent grants, 90 percent
of the proposed funded service area
cannot have sufficient access to
broadband, as opposed to 100 percent
under round one.
4. The requirement for two years of
unqualified, comparative, audited
financial statements has been changed
to unqualified, comparative, audited
financial statements for the previous
year from the date the application has
been submitted.
5. The requirement that applicants
must submit certifications from the
appropriate state or tribal broadband
office has been changed to a voluntary
request.
6. Pre-application expenses that were
incurred for round one, but benefit an
application for round two, may be
funded up to the 5 percent of the total
award in round 2.
7. Under certain conditions a
subsidiary can use the unqualified,
comparative, audited statements to meet
certain eligibility requirements.
8. The scoring criteria for farms has
been changed. Applicants will receive 1
point for every 10 farms served up to a
maximum of 20 points. Farms will be
counted using 2017 Census of
Agriculture data.
9. Tribal leaders can submit
documentation supporting scoring
points for the number of healthcare,
educational and essential community
facilities.
10. The time period incumbent
service providers will be able to
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challenge if sufficient service is present
in an applicant’s proposed funded
service area is being increased from 30
days to 45 days.
III. Definitions
The terms and conditions provided in
this FOA are applicable to and for
purposes of this FOA only. Unless
otherwise provided in the award
documents, all financial terms not
defined herein shall have the meaning
as defined by Generally Accepted
Accounting Principles.
Administrator means the RUS
Administrator, or the Administrator’s
designee.
Applicant means an entity requesting
funding under this FOA.
Application means the Applicant’s
request for federal funding, which may
be approved in whole or part by RUS.
Award documents mean, as
applicable, all associated grant
agreements, loan agreements, or loan/
grant agreements.
Award means a grant, loan, or loan/
grant combination made under this
FOA.
Awardee means a grantee, borrower,
or borrower/grantee that has applied
and been awarded federal assistance
under this FOA.
Broadband loan means, for purposes
of this FOA, a loan that has been
approved or is currently under review
by RUS after the beginning of Fiscal
Year 2000 in the Telecommunications
Infrastructure Program, Farm Bill
Broadband Program, Broadband
Initiatives Program or the ReConnect
Program. Loans that were approved and
then subsequently fully de-obligated are
not included in this definition.
Broadband service means any
technology as having the capacity to
transmit data to enable a subscriber to
the service to originate and receive high
quality voice, data, graphics and video.
Business means a commercial or
mercantile activity engaged in as a
means of livelihood. For purposes of
this FOA, farms will not be counted as
businesses for scoring purposes.
CALEA means the Communications
Assistance for Law Enforcement Act, 47
U.S.C. 1001 et seq.
Composite economic life means the
weighted (by dollar amount of each
class of facility) average economic life of
all classes of facilities necessary to
complete construction of the broadband
facilities in the proposed funded service
area.
Current ratio means the current assets
divided by the current liabilities.
Debt service coverage ratio (DSCR)
means (Total Net Income or Margins +
Interest Expense Allowance for Funds
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Used during Construction +
Depreciation + Amortization)/(Interest
on Funded Debt + Other Interest +
Principal Payment on Debt and Capital
Leases).
Economic life means the estimated
useful service life of an asset as
determined by RUS.
Educational facilities mean any
public or private educational institution
that offers a program of college,
professional, preparatory, high school,
middle school, junior high school,
elementary, or kindergarten instruction,
or any combination of those facilities.
Daycare centers, museums, and libraries
are also included.
Eligible service area means any
proposed funded service area where 90
percent of the households to be served
do not have sufficient access to
broadband. For eligibility purposes, if
an applicant is applying for multiple
proposed funded service areas, each
service area will be evaluated on a
stand-alone basis.
Essential community facilities means
public facilities that provide community
services essential for supporting the
safety, health, and well-being of
residents, including, but not limited to,
emergency response and other public
safety activities.
Equity means total assets minus total
liabilities as reflected on the Applicant’s
balance sheet.
Farm means any place from which
$1,000 or more of agricultural products
were sold or would normally be sold
during the year.
Forecast period means the five-year
period of projections in an application,
which shall be used by RUS to
determine financial and technical
feasibility of the application.
GAAP means accounting principles
generally accepted in the United States
of America.
Grant means any federal assistance in
the form of a grant made under this
FOA.
Grant agreement means the grant
contract and security agreement
between RUS and the Awardee securing
the Grant awarded under this FOA,
including any amendments thereto,
available for review at https://
reconnect.usda.gov.
Healthcare facilities means any
facility where healthcare is provided,
including but not limited to, clinics,
hospitals, nursing homes, pharmacies,
and urgent care facilities.
Loan means any federal assistance in
the form of a loan made under this FOA.
Loan agreement means the loan
contract and security agreement
between RUS and the Awardee securing
the Loan, including all amendments
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thereto, available for review at https://
reconnect.usda.gov.
Loan/grant means any federal
assistance in the form of a loan/grant
combination made under this FOA.
Loan/grant agreement means the
loan/grant contract and security
agreement between RUS and the
Awardee securing the Loan/grant,
including all amendments thereto
available at https://reconnect.usda.gov.
Non-funded service area means any
area in which the applicant offers
broadband service or intends to offer
broadband service during the forecast
period but is not a part of its proposed
funded service area.
Pre-application expenses means any
reasonable expenses, as determined by
RUS, incurred after the release of this
FOA to prepare an Application or to
respond to RUS inquiries about the
Application.
Premises means households, farms
and businesses.
Project means all of the work to be
performed to bring broadband service to
all premises in the proposed funded
service area under the Application,
including construction, the purchase
and installation of equipment, and
professional services including
engineering and accountant/consultant
fees, whether funded by federal
assistance, matching, or other funds.
Proposed funded service area (PFSA)
means the area (whether all or part of an
existing or new service area) where the
applicant is requesting funds to provide
broadband service. Multiple service
areas will be treated as separate
standalone service areas for the purpose
of determining how much of the
proposed funded service area does not
have sufficient access to broadband.
Each service area must meet the
minimum requirements for the
appropriate funding category to be an
eligible area.
RE Act means the ‘‘Rural
Electrification Act of 1936,’’ as amended
(7 U.S.C. 901 et seq.).
Rural area means any area which is
not located within: (1) A city, town, or
incorporated area that has a population
of greater than 20,000 inhabitants; or (2)
an urbanized area contiguous and
adjacent to a city or town that has a
population of greater than 50,000
inhabitants.
RUS Accounting Requirements shall
mean compliance with U.S. GAAP,
acceptable to RUS, the system of
accounting prescribed by RUS Bulletin
1770B–1, and the Uniform
Administrative Requirements, Cost
Principles, and Audit Requirements for
Federal Awards, found at 2 CFR part
200. For all Awardees the term ‘‘grant
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67915
recipient’’ in 2 CFR 200 shall also be
read to encompass ‘‘loan recipient’’ and
‘‘loan/grant recipient’’, such that 2 CFR
200 shall be applicable to all Awardees
under this FOA.
Sufficient access to broadband means
any rural area in which household have
fixed, terrestrial broadband service
delivering at least 10 Mbps downstream
and 1 Mbps upstream. Mobile and
satellite services will not be considered
in making the determination of
sufficient access to broadband.
Tangible equity means a measure of a
company’s capital, which is used by
financial institutions to evaluate
potential losses by eliminating
intangible assets, goodwill and preferred
stock from total equity.
Tangible equity to total assets means
tangible equity divided by total assets.
Times interest earned ratio (TIER)
means (Total Net Income or Margins +
Total Interest¥Expense Allowance for
Funds Used during Construction)
divided by (Total Interest¥Expense
Allowance for Funds Used during
Construction).
IV. Substantially Underserved Trust
Areas
A. Community Designation of
‘‘Substantially Underserved Trust Area’’
If the Administrator determines that a
community within ‘‘trust land’’ (as
defined in 38 U.S.C. 3765) has a high
need for the benefits of the ReConnect
Program, the Administrator may
designate the community as a
‘‘substantially underserved trust area’’
(as defined in section 306F of the RE
Act).
B. Consideration as a ‘‘Substantially
Underserved Trust Area’’
To receive consideration as a
substantially underserved trust area, the
applicant must submit to the Agency a
completed application that includes all
of the information requested in 7 CFR
part 1700, subpart D. In addition, the
application must identify the
discretionary authorities within subpart
D that it seeks to have applied to its
application. Note, however, that given
the prohibition on funding operating
expenses in the ReConnect Program,
requests for waiver of the equity
requirements cannot be considered. In
addition, due to the statutory
requirements that established the
ReConnect Program, waiver of the
nonduplication requirements also
cannot be considered.
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V. Funding Opportunity Descriptions
A. Funding Categories
1. General
For the purposes of this FOA, 90
percent of the proposed funded service
area must not have sufficient access to
broadband. Applicants must propose to
build a network that is capable of
providing service to every premise
located in the proposed funded service
area at the time the application is
submitted at a speed of 25 Mbps
downstream and 3 Mbps upstream. The
Agency reserves the right to make
funding offers or seek consultations to
resolve partially overlapping
applications. RUS may contact the
applicant for additional information
during the review process. If additional
information is requested, the applicant
will have up to 30 calendar days to
submit the information. If such
information is not timely submitted,
RUS may reject the application. Once all
funds for a category have been
expended for the ReConnect program,
all remaining applications will be
returned.
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2. 100 Percent Loan
Applications will be processed and
awarded on a rolling basis. In the event
two loan applications are received for
the same proposed funded service area
the application submitted first will be
considered first. The interest rate for a
100 percent loan will be set at a fixed
2 percent. Tangible equity to total assets
must be at least 20 percent at the end
of the calendar year starting in the third
year of the forecast period through the
remainder of the forecast period.
3. 50 Percent Loan/50 Percent Grant
Combination
The interest rate for the 50 percent
loan component will be set at the
Treasury rate for the remaining
amortization period at the time of each
advance of funds. Applicants may
propose substituting cash for the loan
component at the time of application
and funds must be deposited into the
construction fund account at the closing
of the award. All eligible applications
will be scored and, subject to Section
V(C)(5)(b)(i) (overlapping applications),
applications with the highest score will
receive an award offer until all funds are
expended for this category.
4. 100 Percent Grant
Applicants must provide a matching
contribution equal to 25 percent of the
cost of the overall project and must
clearly identify the source of the funds
even if it is to be provided from the
applicant’s operating accounts. All
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matching funds must be deposited into
the construction fund account at the
closing of the award. If the matching
funds are provided by a third party, a
serious commitment from the third
party must be submitted indicating that
the funds will be available at the closing
of the award if approved. The matching
contribution can only be used for
eligible purposes. All eligible
applications will be scored, and subject
to Section V(C)(5)(b)(i) (overlapping
applications) applications with the
highest score will receive an award offer
until all funds are expended for this
category.
B. Available Funds
1. General
Approximately $512,000,000 in
funding has been set aside for funding
opportunities under this FOA.
2. Funding Limits
Award amounts under this FOA will
be limited as follows:
a. 100 Percent Loan. Up to
$200,000,000 is available for loans. The
maximum amount that can be requested
in an application is $50,000,000.
b. 50 Percent Loan—50 Percent Grant.
Up to $200,000,000 is available for loan/
grant combinations. The maximum
amount that can be requested in an
application is $25,000,000 for the loan
and $25,000,000 for the grant. Loan and
grant amounts will always be equal.
c. 100 Percent Grant. Up to
$200,000,000 is available for grants. The
maximum amount that can be requested
in an application is $25,000,000.
d. Reserve. Additional budget
authority is available for a reserve,
which may be used for loans or grants
under this FOA or may be included in
additional FOAs. The agency reserves
the right to increase funding utilizing
the application queue under this FOA
should additional appropriations
become available for the same purposes.
3. Repooling
RUS retains the discretion to divert
funds from one funding category to
another.
4. Award Period
Awards can be made until all funds
have been expended in any given
funding category. While the completion
time will vary depending on the
complexity of the project, award
recipients must complete their projects
within 5 years from the date funds are
first made available.
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5. Type of Funding Instrument
The funding instruments will be
grants, loans, and loan/grant
combinations.
VI. Eligibility Information
A. General
Applicants must satisfy the following
eligibility requirements to qualify for
funding.
B. Eligible Entities
The following entities are eligible to
apply for assistance:
1. States, local governments, or any
agency, subdivision, instrumentality, or
political subdivision thereof;
2. A territory or possession of the
United States;
3. An Indian tribe (as defined in
section 4 of the Indian SelfDetermination and Education
Assistance Act (25 U.S.C. 450b));
4. Non-profit entities;
5. For-profit corporations;
6. Limited liability companies; and
7. Cooperative or mutual
organizations.
Please note that individuals and legal
partnerships are not eligible to apply. In
addition, co-applicants are not eligible.
If two entities would like to partner
with each other in delivering broadband
to areas without sufficient access, then
one entity must take the lead on
submitting an application. Intercompany agreements can be used to
account for revenues and expenses on
the applicant’s financial projections.
C. Application Eligibility Factors
The following requirements must be
met by all applications to be eligible for
an award. Applications failing to
comply with these requirements will be
rejected.
1. Audited Financial Statement
Applicants must submit an
unqualified, comparative, audited
financial statement for the previous year
from the date the application is
submitted. If an application is submitted
in the first quarter of the calendar year
and the most recent yearend audit has
not been completed, the applicant can
submit the two previous unqualified
audits that have been completed. If
qualified audits containing a disclaimer
or adverse opinion are submitted, the
application will not be considered. An
applicant can use the consolidated
financials of the parent as long as the
parent fully guarantees the loan, or in
the case of a grant, guarantees that
construction will be completed as
approved in the application or will
repay the grant to RUS.
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2. Fully Completed Application
Applicants must submit a complete
application and provide all supporting
documentation required for the
application.
3. Timely Buildout Completion
A project is eligible only if the
application demonstrates that the
project can be completely built out
within 5 years from the date funds are
first made available.
4. Technical Feasibility
Only projects that RUS determines to
be technically feasible will be eligible
for an award. Applicants will be
required to submit a network design,
network diagram, project costs and a
buildout timeline, all certified by a
professional engineer. The certification
from the professional engineer must
state that the proposed network can
deliver broadband service at the
required level of service to all premises
in the proposed funded service area. If
a certification is not submitted, the
application may not be considered for
funding.
5. Service Areas
a. Eligible Service Areas
(i) Applicants must propose to
provide broadband service directly to all
premises in the proposed funded service
area that do not have sufficient access
to broadband.
(ii) If any part of the applicant’s
proposed funded service area is
ineligible, RUS, in its sole discretion,
may request that an applicant modify its
application, if RUS believes the
modification is feasible. Otherwise, RUS
will reject the application.
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b. Ineligible Service Areas
(i) Overlapping Service Areas.
RUS will not fund more than one
project that serves any one given
geographic area. Invariably, however,
applicants will propose service areas
that overlap, varying from small de
minimus areas of the territory, but
which may be significant with respect to
households involved, to larger areas of
the service territory, but which may
contain few households or businesses, if
any. As a result, devising a procedure
which will cover every overlap
circumstance cannot be done.
Nevertheless, it is the agency’s intent to
make as many eligible applications
viable for consideration as possible.
That may mean the agency may: (1)
Determine the overlap to be so
insignificant that no agency action is
necessary; (2) request one or more
applications to be revised to eliminate
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the overlapping territory; (3) choose one
application over another given the
amount of assistance requested, the
number of awards already chosen in the
area or State, or the need for the project
in the specific area due to other factors;
or (4) simply choose the project that
scores higher or in the judgement of the
agency is more financially feasible.
ii. Prior Funded Service Areas.
(A) RUS Broadband Loans. Service
areas of borrowers that have RUS
broadband loans, as defined in this
FOA, are ineligible for all other
applicants, and can be found at https://
reconnect.usda.gov. However, RUS
broadband borrowers that have built out
their service areas consistent with their
application and loan documents, but
were not required to provide, and are
currently not providing, sufficient
access to broadband pursuant to this
FOA are eligible to apply for funding for
these service areas; provided that they
have not defaulted on, and have
materially complied with, in the sole
discretion of RUS, their prior broadband
loan requirements. Current RUS
broadband borrowers that have received
funding to provide sufficient access to
broadband, but not yet built out their
system are ineligible to apply.
(B) RUS Community Connect Grants.
Service areas that received grants under
the RUS Community Connect Grant
Program are eligible if they do not have
sufficient access to broadband, except
for those grants still under construction.
Service areas still under construction
can be found at https://
reconnect.usda.gov.
(C) RUS BIP Grants. Service areas that
received a 100 percent grant under the
RUS Broadband Initiatives Program
(BIP) are eligible if they do not have
sufficient access to broadband.
However, if the applicant is the same
BIP grantee, then the applicant may
only request a 100 percent loan.
(D) State-funded Areas. Applicants
are encouraged to work with the
Governor’s office for the states where
they are proposing to provide
broadband service and submit
information detailing where state
funding has been provided.
(E) Connect America Fund Phase II
Auction—Auction 903 (CAF II).
Funding for service areas of CAF II
recipients can only be requested by the
entity that is receiving the CAF II
support, and such funding is limited to
a 100% loan. The CAF II service areas
can be found at https://
reconnect.usda.gov and may also be
found on the FCC web page.
(F) ReConnect Program Awards.
Service areas of companies that received
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a ReConnect award in round one are not
eligible for funding under this FOA.
6. Fully Funded
A project is eligible only if, all project
costs can be fully funded or accounted
for in the application. To demonstrate
this, applications must include evidence
of all funding, other than the RUS
award, necessary to support the project,
such as bank account statements, firm
letters of commitment from equity
participants, or outside loans, which
must evidence the timely availability of
funds. If outside loans are used, they
may only be secured by assets other
than those used for collateral under this
FOA. Equity partners that are not
specifically identified by name will not
be considered in the financial analysis
of the application. If the application
states that other funds are required for
the project in addition to the ReConnect
funding requested, evidence must be
included in the application identifying
the source of funds and when the funds
will be available. If the additional
funding is not clearly identified, the
application may not be considered for
an award.
7. Financial Feasibility and
Sustainability
Only projects that RUS determines to
be financially feasible and sustainable
will be eligible for an award under this
FOA. A project is financially feasible
when the applicant demonstrates to the
satisfaction of RUS that it will be able
to generate sufficient revenues to cover
expenses; will have sufficient cash flow
to service all debts and obligations as
they come due; will have a positive
ending cash balance as reflected on the
cash flow statement for each year of the
forecast period; and, by the end of the
forecast period, will meet at least two of
the following requirements: A minimum
TIER requirement of 1.2, a minimum
DSCR requirement of 1.2, and a
minimum current ratio of 1.2. In
addition, applicants must demonstrate
positive cash flow from operations at
the end of the forecast period.
If an applicant has no existing debt,
is not proposing to borrow funds during
the forecast period, and is applying only
for grant funds, only the current ratio
will be applied and not the TIER or
DSCR. For this situation, applicants
must meet the minimum current ratio
requirement.
8. Service Requirements
Facilities funded with grant funds
must provide broadband service
proposed in the application for the
composite economic life of the facilities,
as approved by RUS, or as provided in
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the Award Documents. This includes
the grant assets that are funded with a
50 percent loan and 50 percent
combination award. Facilities funded
with loan funds must provide
broadband service through the
amortization period of the loan.
addition, costs must be reasonable,
allocable, and necessary to the project.
Any application that proposes to use
any portion of the award or matching
funds for any ineligible costs may be
rejected.
9. Application Transparency
a. Eligible Award Costs
a. Pre-Award Public Notice
Award funds may be used to pay for
the following costs:
(i) To fund the construction or
improvement of facilities, including
buildings and land, required to provide
broadband service, including facilities
required for providing other services
over the same facilities, such as
equipment required to comply with
CALEA;
(ii) To fund reasonable preapplication
expenses in an amount not to exceed
five percent of the award. If an applicant
applied for funding in round one,
preapplication expenses may be eligible
for reimbursement under this round of
funding if these expenses support the
round two application (i.e., engineering
design, market survey, subscriber
projections, etc.). RUS reserves the sole
right to accept or reject expenses
associated with round one. Otherwise,
preapplication expenses for round two
may be reimbursed only if they are
incurred after the publication date of
this FOA, and properly documented.
Preapplication expenses must be
included in the first request for award
funds and will be funded with either
grant or loan funds. If the funding
category applied for has a grant
component, then grant funds will be
used for this purpose;
(iii) To fund the acquisition of an
existing system that does not currently
provide sufficient access to broadband
for upgrading that system to meet the
requirements of this FOA. The cost of
the acquisition is limited to 40 percent
of the amount requested. Acquisitions
can only be considered in the 100
percent loan category; and
(iv) To fund terrestrial-based facilities
for satellite broadband service, provided
the applicant clearly identifies the
PFSA, demonstrates the ability to
provide 25 Mbps downstream and
3 Mbps upstream simultaneously to
every premise in the PFSA, and offers
subscribers reasonable service plans that
do not cap bandwidth usage.
2. Eligible and Ineligible Costs
To ensure transparency for the
ReConnect Program, the Agency’s
mapping tool will include the following
information from each application and
be displayed for the public:
(i) The identity of the applicant;
(ii) the areas to be served;
(iii) the type of funding requested;
(iv) the status of the application;
(v) the number of households without
sufficient access to broadband; and (vi)
a list of the census blocks to be served.
b. Post-Award Public Notice
For all approved applications, the
agency will post on its website: The
name of the company receiving funding,
the type of funding received, the
location of the proposed funded service
area and the purposes of the funding.
c. Post-Award Reporting
Awardees will be required to submit
semi-annual reports for three years after
the completion of construction on the
following information:
(i) The number and location of
residences and businesses that will
receive service at or greater than the
requirement for the appropriate funding
category.
(ii) the types of facilities constructed
and installed;
(iii) the speed of the data services
being delivered;
(iv) the average price of the data
services being delivered in each
proposed service area; and
(v) the broadband adoption rate for
each proposed service territory,
including the number of new
subscribers generated from the facilities
funded. This information will be used to
analyze the effectiveness of the funding
provided and will allow the Agency to
track adoption rates as new and
improved broadband services are being
provided.
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D. Eligible Cost Purposes
1. General
Award and matching funds must be
used only to pay for eligible costs
incurred post award, except for
approved pre-application expenses.
Eligible costs must be consistent with
the cost principles identified in 2 CFR
200, subpart E, Cost Principles. In
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b. Ineligible Award Costs
Award funds may not be used for any
of the following purposes:
(i) To fund operating expenses of the
Awardee;
(ii) To fund costs incurred prior to the
date on which the application was
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submitted, except for eligible preapplication expenses incurred prior to
the date of the publication date of this
FOA, or as otherwise identified in
Section D(2)(a)(ii) above;
(iii) To fund an acquisition of an
affiliate, or the purchase or acquisition
of any facilities or equipment of an
affiliate. Note that if affiliated
transactions are contemplated in the
application, approval of the application
does not constitute approval to enter
into affiliated transactions, nor
acceptance of the affiliated
arrangements that conflict with the
obligations under the award documents;
(iv) To fund the acquisition of a
system previously funded by RUS;
(v) To fund the purchase or lease of
any vehicle other than those used
primarily in construction or system
improvements;
(vi) To fund broadband facilities
leased under the terms of an operating
lease or an indefeasible right of use
(IRU) agreement;
(vii) To fund the merger or
consolidation of entities;
(viii) To fund costs incurred in
acquiring spectrum as part of an FCC
auction or in a secondary market
acquisition. Spectrum that is part of a
system acquisition may be considered
for loan funding;
(ix) To fund facilities that provide
mobile services;
(x) To fund the acquisition of a system
that is providing sufficient access to
broadband;
(xi) To refinance outstanding debt;
nor
(xii) To fund facilities not required to
provide broadband service.
VII. Application and Submission
Information
A. Online Application System
All applications under this FOA must
be submitted through the RUS Online
Application System located at https://
reconnect.usda.gov. Additional
information can be found in the
Application Guidelines found at the
above location. This website will be
updated regularly.
B. Registration
1. General
Please note the process for requesting
a DUNS Number and a cage code could
be lengthy, and applicants should not
wait until it is time to submit an
application to obtain these. It is
recommended applicants immediately
start this process for these.
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2. Dun and Bradstreet Universal
Numbering System (DUNS) Number
All applicants must register for a
DUNS number as part of the
application. The applicant can obtain
the DUNS number free of charge by
calling Dun and Bradstreet. Go to https://
fedgov.dnb.com/webform for more
information on assignment of a DUNS
number or confirmation. DUNS
numbers of parent or affiliated
operations cannot be substituted for the
applicant. If a DUNS number is not
provided, the application cannot be
considered for an award.
3. System for Award Management
(SAM)
Prior to submitting an application, the
applicant must also register in SAM at
https://www.sam.gov/portal/SAM/#1
and supply a Commercial and
Government Entity (CAGE) Code
number as part of the application. SAM
registration must be active with current
data at all times, from the application
review throughout the active Federal
award funding period. To maintain
active SAM registration, the applicant
must review and update the information
in the SAM database annually from the
date of initial registration or from the
date of the last update. The applicant
must ensure that the information in the
database is current, accurate, and
complete. If the CAGE Code of the
applicant is not included in the
application, the application will not be
considered for an award.
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C. Contents of the Application
Due to the complexities and the many
scenarios that must be addressed, if
multiple applications are submitted,
applicants will be limited to ONE
application for this FOA. A complete
application will include the following
information as requested in the RUS
Online Application System:
1. General information on the
applicant and the project including:
(a) A description of the project that
will be made public consistent with the
requirements herein and
(b) The estimated dollar amount of the
funding request.
2. An executive summary of the
proposed project.
This summary shall include, but not
be limited to, a detailed description of
existing operations, discussion about
key management, description of the
workforce, description of interactions
between any parent, affiliated or
subsidiary operation, a detailed
description of the proposed project, and
the source of the matching funds.
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3. A description of the proposed
funded service area including the
number of premises passed.
4. Subscriber projections including
the number of subscribers for
broadband, video and voice services and
any other service that may be offered; A
description of the proposed service
offerings, and the associated pricing
plan that the applicant proposes to offer.
5. A map, utilizing the RUS mapping
tool located at https://
reconnect.usda.gov of the proposed
funded service areas identifying the
areas without sufficient access to
broadband and any non-funded service
areas of the applicant.
6. A description of the advertised
prices of service offerings by
competitors in the same area.
7. A network design which includes
a description of the proposed
technology used to deliver the
broadband service demonstrating that
all premises in the proposed funded
service area can be offered broadband
service, a network diagram, a buildout
timeline and milestones for
implementation of the project, and a
capital investment schedule showing
that the system can be built within 5
years, all of which must be certified by
a professional engineer who is certified
in at least one of the states where there
is project construction. The certification
from the professional engineer must
clearly state that the proposed network
can deliver the broadband service to all
premises in the proposed funded service
area at the minimum required service
level. In addition, if the applicant is
requesting the points for providing a
100 Mbps upstream and 100 Mbps
downstream, the certification must also
state that the proposed system is
capable of delivering this service to all
premises; a list of all required licenses
and regulatory approvals needed for the
proposed project and how much the
applicant will rely on contractors or
vendors to deploy the network facilities.
Note that in preparing budget costs for
equipment and materials, RUS’ Buy
American requirements apply.
8. Resumes of key management
personnel, a description of the
organization’s readiness to manage a
broadband services network, and an
organizational chart showing all parent
organizations and/or holding companies
(including parents of parents, etc.), and
all subsidiaries and affiliates.
9. A legal opinion that:
a. Addresses the applicant’s ability to
enter into the award documents;
b. describes all material pending
litigation matters;
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c. addresses the applicant’s ability to
pledge security as required by the award
documents and
d. addresses the applicant’s ability to
provide broadband service under state
or tribal law.
10. Summary and itemized budgets of
the infrastructure costs of the proposed
project, including if applicable, the ratio
of loans to grants, and any other sources
of outside funding. The summary must
also detail the amount of matching
funds and the source of these funds. If
the matching funds are coming from a
third partly, a commitment letter and
support that the funds are available
must also be submitted. Matching funds
must be deposited into the RUS
Construction Fund at the closing of the
award.
11. A detailed description of working
capital requirements and the source of
these funds.
12. Historical financial statements for
the last four years consisting of a
balance sheet, income statement, and
cash flow statement. If an entity has not
been operating for four years, historical
statements for the period of time the
entity has been operating.
13. An unqualified, comparative
audited financial statement for the
previous calendar year from the date the
application is submitted. A subsidiary
can use the consolidated financial
statements of the parent organization if
the parent guarantees the award as
outlined in Section VI.C(1) above. For
governmental entities financial
statements must be accompanied with
certifications as to unrestricted cash that
may be available on a yearly basis to the
applicant.
14. Pro Forma financial analysis,
prepared in conformity with U.S. GAAP
and the Agency’s guidance on grant
accounting found at https://
www.rd.usda.gov/files/Accounting
Guidance10.pdf. The Pro Forma should
validate the sustainability of the project
by including subscriber estimates
related to all proposed service offerings;
annual financial projections with
balance sheets, income statements, and
cash flow statements; supporting
assumptions for a five-year forecast
period and a depreciation schedule for
existing facilities, those facilities funded
with federal assistance, matching funds,
and other funds. This pro forma should
indicate the committed sources of
capital funding and include a bridge
year prior to the start of the forecast
period. This bridge year shall be used as
a buffer between the historical financial
information and the forecast period and
is the year in which the application is
submitted.
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15. All attachments required in the
RUS Online application system;
16. A scoring sheet, analyzing the
scoring criteria set forth in this FOA;
17. A list of all the applicant’s
outstanding and contingent obligations,
including copies of existing notes, loan
and security agreements, guarantees,
any existing management or service
agreements, and any other agreements
with parents, subsidiaries and affiliates,
including but not limited to debt
instruments that use the applicant’s
assets, revenues or stock as collateral;
18. Compliance with the Agencies
Environmental Policies and Procedures
of 7 CFR part 1970 is required. To
facilitate compliance the applicant must
provide completed Environmental
Questionnaire(s) as prompted by the
application system. The questionnaire
consists of project descriptions for
environmental review purposes. All
project activities, specific project
locations, and supporting
documentation, must be provided to
further the Agencies analysis of
potential impacts to the environment.
The applicant must supply required
environmental authorizations and
permits, including those required by the
National Environmental Policy Act of
1969, as amended (42 U.S.C. 4321 et
seq.) (NEPA), the National Historic
Preservation Act of 1966, as amended
(16 U.S.C. 470 et seq.) (NHPA), and the
Endangered Species Act of 1973, as
amended (16 U.S.C. 1534 et seq.) (ESA)
as applicable. Project maps or site plans
are required to identify cable routes,
building locations, tower locations,
equipment locations and all structures
and facilities that are part of the project.
The Agency will use data provided in
the intake system to complete the
environmental review for this project,
and may require the applicant to
provide additional information, and
studies post-application. This
information is needed to assist with an
efficient and timely review of the
environmental requirements.
19. Certification from the applicant
that agreements with, or obligations to,
investors do not breach the obligations
to the government under the draft
Award Documents, especially
distribution requirements, and that any
such agreements will be amended so
that such obligations are made
contingent to compliance with the
Award Documents. Such certification
should also specifically identify which,
if any, provisions would need to be
amended; and
20. If service is being proposed on
tribal land, a certification from the
proper tribal official that they are in
support of the project and will allow
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construction to take place on tribal land.
The certification must: (1) Include a
description of the land proposed for use
as part of the proposed project; (2)
identify whether the land is owned,
held in Trust, land held in fee simple by
the Tribe, or land under a long-term
lease by the Tribe; (3) if owned, identify
the land owner; and (4) provide a
commitment in writing from the land
owner authorizing the applicant’s use of
that land for the proposed project. If no
certification is provided, then this area
may be ineligible for funding.
21. Any other information requested
in the online application system.
D. Material Representations
The application, including
certifications, and all forms submitted
as part of the application will be treated
as material representations upon which
RUS will rely in awarding grants and
loans.
VIII. Application Evaluation Criteria
A. Evaluation Criteria
Applications for the 50/50 loan/grant
combo and the 100 percent grants will
be scored and ranked against the
following criteria below. However,
applications that cover the same
proposed service area will be evaluated
as described in Section V(C)(5)(b)(i)
above. If eligible applications receive
the same score and funding becomes
limited, the application that is
proposing to serve the highest number
of households without sufficient
broadband service will be funded first.
1. Rurality of Proposed Funded Service
Area (25 Points)
Points will be awarded for serving the
least dense rural areas as measured by
the population of the proposed funded
service area per square mile or if the
proposed funded service area is located
at least one hundred miles from a city
or town that has a population of greater
than 50,000 inhabitants. If multiple
service areas are proposed, the density
calculation will be made on the
combined areas as if they were a single
area and not the average densities. For
the determination of the location of the
proposed funded service areas, all
proposed funded service areas must be
located at least one hundred miles from
a city or town that has a population of
greater than 50,000. Population
densities of 6 or less or if the proposed
funded service area is located one
hundred miles from a city or town of
50,000, 25 points will be awarded.
2. Farms Served (20 Points)
Applicants will receive 1 point for
every 10 farms served up to a maximum
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of 20 points. Farms will be counted
using 2017 Census of Agriculture data.
The total area in square miles by county
covered by the Proposed Funded
Service Area will be treated as its own
analysis area. The mapping tool will
calculate the analysis area in square
miles as a percentage of the total county
area in square miles and then multiply
this percentage by the total number of
farms located in that county. If there is
more than one county covered by the
PFSA, the sum of all analysis area(s)
will be used to determine the total
number of farms for that PFSA. Farms
will be counted using the GIS layer
located in the RUS mapping tool at:
https://reconnect.usda.gov.
3. Performance of the Offered Service
(20 Points)
For projects that are proposing to
build a network that is capable of
providing at least 100 Mbps
symmetrical service to all premises, 20
points will be awarded. The
certification from the Professional
Engineer must certify that the proposed
system can deliver these speeds to every
premise in the proposed funded service
area.
4. Businesses (15 Points)
Applicants will receive 1 point for
each business that pre-subscribes for
broadband service up to a maximum of
15 points. Applicants must have the
owner of the business sign the
presubscription form provided in the
application system and submit them as
part of their application.
5. Healthcare Centers (15 Points)
For every healthcare center served 1
point will be awarded up to a maximum
of 15 points. Healthcare centers will be
counted using the GIS layer located in
the RUS mapping tool at https://
reconnect.usda.gov. For tribal areas not
identified in the GIS layer, the tribal
leader of the area can submit
documentation supporting the number
of healthcare facilities and will receive
1 point up to a total of 15 points for
every healthcare facility that is
identified. A certification that the
facilities exist and are being used must
be submitted by the tribal leader.
6. Educational Facilities (15 Points)
For every school served 1 point will
be awarded up to a maximum of 15
points. Schools will be counted using
the GIS layer provided in the RUS
mapping tool located at https://
reconnect.usda.gov. For tribal areas not
identified in the GIS layer, the tribal
leader of the area can submit
documentation supporting the number
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of educational facilities and will receive
1 point up to a total of 15 points for
every educational facility that is
identified. A certification that the
facilities exist and are being used must
be submitted by the tribal leader.
7. Essential Community Facilities (15
Points)
For every essential community facility
served 1 point will be awarded up to a
maximum of 15 points. Essential
community facilities will be counted
using the GIS layer located in the RUS
mapping tool at https://
reconnect.usda.gov. For tribal areas not
identified in the GIS layer, the tribal
leader of the area can submit
documentation supporting the number
of Essential Community Facilities and
will receive 1 point up to a total of 15
points for every Essential Community
Facility that is identified. A certification
that the facilities exist and are being
used must be submitted by the tribal
leader.
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8. Opportunity Zones (5 Points)
For applications that are proposing to
provide service in at least part of an area
identified as an Opportunity Zone, 5
points shall be awarded. Opportunity
Zones will be analyzed using the GIS
layer located at https://
reconnect.usda.gov.
9. State or Tribal Broadband Activity (20
Points)
For projects that are in a State or tribal
area that has a broadband plan that has
been updated within five years of the
date of publication of this FOA, 10
points will be awarded. An additional 5
points will be awarded for projects
located in states that do not restrict
utilities from delivering broadband
service, and 5 more points for projects
located in states that expedite right-ofway and environmental requirements.
Applicants will be required to submit
evidence from the appropriate State or
tribal official that a broadband plan has
been implemented and updated, that
there are no restrictions on utilities
providing broadband service, and that
procedures are in place for expediting
right-of-way and environmental
requirements. If service is proposed in
multiple states tribal areas, then
evidence must be submitted from each
state or tribal area to get the appropriate
points.
IX. Notice of Proposed Funded Service
Areas
A. The Agency Will Publish a Public
Notice of Each Application
The application must provide a
summary of the information required for
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such public notice including the
following:
1. The identity of the applicant;
2. A map of each proposed funded
service area showing the rural area
boundaries and the areas without
sufficient access to broadband using the
Agency’s Mapping Tool;
3. The amount and type of support
requested;
4. The status of the review of the
application;
5. The estimated number of
households without sufficient access to
broadband in each service area
exclusive of satellite and mobile
broadband service; and
6. A description of all the types of
services that the applicant proposes to
offer in each service area.
B. Notification After the Application
Has Been Received
The Agency will publish the public
notice on an Agency web page after the
application has been submitted through
the online application system and will
remain on the web page for a period of
45 calendar days. The notice will ask
existing service providers to submit to
the Agency, within this notice period,
the following information:
1. The number of residential and
business customers within the
applicant’s service area currently
purchasing broadband service, defined
as at a minimum speed of 10 Mbps
downstream and 1 Mbps upstream, the
rates of data transmission being offered,
and the cost of each level of broadband
service charged by the existing service
provider;
2. The number of residential and
business customers within the
applicant’s service area receiving voice
and video services and the associated
rates for these other services; and
3. A map showing where the existing
service provider’s services coincide
with the applicant’s service area using
the Agency’s Mapping Tool.
Please note that the Agency will be
contacting any entity that responds to
the notice and will be requesting
additional information such as test
result that demonstrate that the area in
question has sufficient access to
broadband service.
C. Agency Determination of Sufficient
Access to Broadband in Proposed
Funded Service Area
The Agency will use the information
submitted to determine if there is
sufficient access to broadband in any
part of the proposed funded service
area. Notwithstanding non-responses by
actual and potential providers, the
Agency will use all information
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available in evaluating the feasibility of
the project.
D. Treatment of Submitted Information
The information submitted by an
existing service provider will be treated
as proprietary and confidential to the
extent permitted under applicable law.
E. Notice of Application Is Approved
If an application is approved, an
additional notice will be published on
the agency’s website that will include
the following information:
1. The name of the entity receiving
the financial assistance;
2. The type of assistance being
received;
3. The purpose of the assistance and
the location of the proposed funded
service area; and
4. The semiannual reports submitted
under Section X(B)(6)e of this FOA.
X. Evaluation and Processing
Procedures
A. Review of Application
Applications will be evaluated using
the criteria stated in Section VII.C of
this FOA. Public comments received
with respect to an application’s
proposed funded service area will be
reviewed and evaluated. Eligibility of
proposed funded service areas will be
verified by the Agency.
RUS also reserves the right to ask
applicants for clarifying information
and additional verification of assertions
in the application. For those
applications that RUS has selected for
funding, RUS will send award
documents.
B. Review of Awardee Operations
1. Entities That Receive Funding Under
This FOA
For all entities that receive funding
under this FOA, RUS may send a team
to the awardee’s facilities to complete a
Management Analysis Profile (MAP) of
the entire operation. MAPs are used by
RUS as a means of evaluating an
Awardee’s strengths and weaknesses
and ensuring that awardees are prepared
to fulfil the terms of the award. Once an
applicant accepts an award offer, RUS
may schedule a site visit as soon as
possible.
2. Agency Right Not To Advance Funds
RUS reserves the right not to advance
funds until the MAP has been
completed. If the MAP identifies issues
that can affect the operation and
completion of the project, those issues
must be addressed to the satisfaction of
RUS before funds can be advanced.
Funding may be rescinded if following
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a MAP, the agency determines that the
awardee will be unable to meet the
requirements of the award.
XI. Award Administration Information
A. Award Notices
Successful applicants will receive an
offer letter and award documents from
RUS following award notification.
Applicants may view sample award
documents at https://
reconnect.usda.gov.
B. Administrative Requirements
1. Pre-Award Conditions
No funds will be disbursed under this
program until all other sources of
funding have been obtained and any
other pre-award conditions have been
met. Failure to obtain one or more
sources of funding committed to in the
Application or to fulfill any other preaward condition within 90 days of
award announcement may result in
withdrawal of the award.
2. Advance Procedures
RUS loan and grant advances are
made at the request of the Awardee
according to the procedures stipulated
in the Award Documents. ALL
MATCHING FUNDS OR CASH
PROVIDED IN LIEU OF LOAN FUNDS
MUST BE EXPENDED FIRST,
FOLLOWED BY LOAN FUNDS, AND
THEN BY GRANT FUNDS, EXCEPT
FOR RUS APPROVED PREAPPLICATION EXPENSES. Grant funds,
if any, will be used for eligible
preapplication expenses only on the
first advance request. Accordingly,
applications that do not account for
such advance procedures in the pro
forma five-year forecast may be rejected.
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3. Construction
a. All project assets must comply with
7 CFR part 1788, and 7 CFR part 1970
located at https://www.rd.usda.gov/
publications/regulations-guidelines/
regulations, the ReConnect Program
Construction Procedures located at
https://reconnect.usda.gov, any
successor regulations found on the
agency’s website, and any other
guidance from the Agency.
b. The build-out of the project must be
completed within five years from the
date funds are made available. Build-out
is considered complete when the
network design has been fully
implemented, the service operations
and management systems infrastructure
is operational, and the awardee is ready
to support the activation and
commissioning of individual customers
to the new system.
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5. Servicing
a. Awardees must make payments on
the loan as required in the note and
Award Documents.
b. Awardees must comply with all
terms, conditions, affirmative
covenants, and negative covenants
contained in the Award Documents.
6. Accounting, Monitoring, and
Reporting Requirements
a. Awardees must adopt a system of
accounts for maintaining financial
records acceptable to the Agency, as
described in 7 CFR part 1770, subpart B.
b. Awardees must submit annual
comparable audited financial statements
along with a report on compliance and
on internal control over financial
reporting, and management letter in
accordance with the requirements of 7
CFR part 1773. The Certified Public
Accountant (CPA) conducting the
annual audit is selected by the borrower
and must be satisfactory to RUS as set
forth in 7 CFR 1773 subpart B—RUS
Audit Requirements.
c. Awardees must comply with all
reasonable Agency requests to support
ongoing monitoring efforts. The
Awardee shall afford RUS, through its
representatives, reasonable opportunity,
at all times during business hours and
upon prior notice, to have access to and
the right to inspect: The Broadband
System, any other property encumbered
by the Award Documents, any and all
books, records, accounts, invoices,
contracts, leases, payrolls, timesheets,
cancelled checks, statements, and other
documents, electronic or paper of every
kind belonging to or in the possession
of the Awardee or in any way pertaining
to its property or business, including its
subsidiaries, if any, and to make copies
or extracts therefore.
d. Awardee records shall be retained
and preserved in accordance with the
provisions of 7 CFR part 1770, subpart
A.
e. Awardees must submit semiannual
reports for 3 years after completion of
the project, which must include the
following:
(1) The purpose of the financing,
including new equipment and capacity
enhancements that support high-speed
broadband access for educational
institutions, health care providers, and
public safety service providers
(including the estimated number of end
users who are currently using or
forecasted to use the new or upgraded
infrastructure);
(2) The progress towards fulfilling the
objectives for which the assistance was
granted, including:
(i) The number of residences and
businesses that will receive service
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equal to or greater than the speed
required for the appropriate funding
category;
(ii) The types of facilities constructed
and installed;
(iii) The speed of the broadband
services being delivered;
(iv) The average price of the
broadband services being delivered in
each proposed service area;
(v) The broadband adoption rate for
each proposed service territory,
including the number of new
subscribers generated from the facilities
funded; and
7. Assistance Instruments
a. Terms and conditions of loans,
grants, or loan/grant combinations are
set forth in the non-negotiable standard
loan, grant, or loan/grant agreements
and the corresponding note, and/or
mortgage, if applicable, which may be
found at https://reconnect.usda.gov.
b. Award Documents must be
executed prior to any advance of funds.
c. Sample Award Documents can be
found at https://reconnect.usda.gov.
8. Loan and Loan/Grant Terms and
Conditions
Among others, the following terms
shall apply to the loans:
a. Interest Rate
If an applicant is applying for a 100%
loan, the interest rate shall be fixed at
2%. If an applicant is applying for a 50/
50 loan/grant combination, the loan
shall bear interest at a rate equal to the
cost of borrowing to the Department of
Treasury for obligations, as determined
by the government, of comparable
maturity. The applicable interest rate
will be set at the time of each advance.
b. Repayment Period
Unless the Applicant requests a
shorter repayment period, loans must be
repaid with interest within a period
that, rounded to the nearest whole year,
is equal to the expected Composite
Economic Life of the project assets, as
determined by RUS based upon
acceptable depreciation rates, plus three
years. Acceptable depreciation rates can
be found in the ReConnect Program
Constructions Procedures found at
https://reconnect.usda.gov.
c. Amortization Period
Interest begins accruing on the date of
each loan advance. All interest and
principle payments will be deferred for
a three-year period starting when funds
are made available to be drawn by the
Awardee. At the end of the three-year
deferral period, accrued interest will be
capitalized and added to the
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outstanding principal, and monthly
payments will be established in an
amount that amortizes the outstanding
balance in equal payments over the
remaining term of the loan.
(ii) All Awardees must repay the grant
if the project is sold or transferred
without receiving written approval from
RUS during the service obligation of the
grant.
d. Build-Out Period
9. Award Terms and Conditions
All proposed construction (including
construction with matching and other
funds) and all advance of funds must be
completed no later than five years from
the time funds are made available.
a. Scope
Awardees are required to comply with
the requirements established herein.
Any obligation that applies to the
Awardee shall extend for the life of the
award-funded facilities.
e. Loan Security
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The loan portion of the award must be
adequately secured, as determined by
RUS.
(i) For Corporations and LLC’s, the
loan and loan/grant combinations must
be secured by all assets of the Awardee.
RUS must be given an exclusive first
lien, in form and substance satisfactory
to RUS, on all assets of the Awardee,
including all revenues. RUS may share
its first lien position with one or more
lenders on a pari passu basis, except
with respect to grant funds, if security
arrangements are acceptable to RUS.
Applicants must submit a certification
that their prior lender or lienholder on
any Awardee assets has already agreed
to sign the RUS’ standard intercreditor
agreement or co-mortgage found at
https://reconnect.usda.gov. Note that
RUS will not consider sharing assets
with any related party or affiliate of the
Awardee. Moreover, given that RUS
cannot renegotiate these standard
agreements, Awardees that are unable to
obtain sign-off on the security
arrangements may have their awards
rescinded within 60 days of the date the
Awardee is made aware of the approval
of its application.
(ii) For Tribal entities and
municipalities, RUS will develop
appropriate security arrangements.
(iii) Unless otherwise approved by
RUS in writing, all property and
facilities purchased with award funds
must be owned by the Awardee.
b. Sale or Lease of Project Assets
The sale or lease of any portion of the
Awardee’s facilities must be approved
in writing by RUS.
f. Grant Security
c. Certifications
(i) The Applicant must certify that it
is authorized to submit the application
on behalf of the eligible entity(ies) listed
in the Application; that the Applicant
has examined the Application; that all
information in the Application,
including certifications and forms
submitted, are, at the time furnished,
true and correct in all material respects;
that the entity requesting funding will
comply with the terms, conditions,
purposes, and federal requirements of
the program; that no kickbacks were
paid; and that a false, fictitious, or
fraudulent statement or claim on the
Application is grounds for denial or
termination of an award, and/or
possible punishment by a fine or
imprisonment as provided in 18 U.S.C.
1001 and civil violations of the False
Claims Act (31 U.S.C. 3729 et seq.);
(ii) The Applicant must certify that it
will comply with all applicable federal,
tribal, state, and local laws, rules,
regulations, ordinances, codes, orders,
and programmatic rules and
requirements relating to the project, and
acknowledges that failure to do so may
result in rejection or de-obligation of the
award, as well as civil or criminal
prosecution, if applicable, by the
appropriate law enforcement
authorities.
The grant portion of the award must
also be adequately secured, as
determined by RUS.
(i) The government must be provided
an exclusive first lien on all grant assets
during the service obligation of the
grant, and thereafter any sale or
disposition of grant assets must comply
with the Uniform Administrative
Requirements, Cost Principles, and
Audit Requirements for Federal Awards,
codified in 2 CFR part 200. Note that
this part will apply to ALL grant funds
of an Awardee, regardless of the entity
status or type of organization.
10. Financial and Compliance Reporting
Requirements
Awardees must submit to RUS 30
calendar days after the end of each
calendar year quarter, balance sheets,
income statements, statements of cash
flow, rate package summaries, and the
number of customers taking broadband
service on a per community basis
utilizing RUS’ on-line reporting system.
These reports must be submitted
throughout the loan amortization period
or for the economic life of the facilities
funded with a 100 percent grant. In
addition, Awardees will be required to
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67923
submit annually updated service area
maps through the RUS mapping tool
showing the areas where construction
has been completed and premises are
receiving service until the entire
proposed funded service area can
receive the broadband service. At the
end of the project, Awardees must
submit a service area map indicating
that all construction has been completed
as proposed in the application. If parts
of the proposed funded service area
have not been constructed, RUS may
require a portion of the award to be
rescinded or paid back.
XII. Other Information
A. Discretionary Awards
The government is not obligated to
make any award as a result of this
announcement and will fund only
projects that are deemed likely to
achieve the program’s goals and for
which funds are available.
B. Environmental and National Historic
Preservation Requirements
Federal Agencies are required to
analyze the potential environmental
impacts, as required by the NEPA and
the NHPA for Applicant projects or
proposals seeking funding. All
Applicants are required to complete an
Environmental Questionnaire, provide a
description of program activities and to
submit all other required environmental
documentation as requested in the
application system or by the Agency
after the application is submitted. It is
the Applicant’s responsibility to obtain
all necessary federal, tribal, state, and
local governmental permits and
approvals necessary for the proposed
work to be conducted. Applicants are
expected to design their projects so that
they minimize the potential for adverse
impacts to the environment. Applicants
also will be required to cooperate with
the granting agencies in identifying
feasible measures to reduce or avoid any
identified adverse environmental
impacts of their proposed projects. The
failure to do so may be grounds for not
making an award. Applications will be
reviewed to ensure that they contain
sufficient information to allow Agency
staff to conduct a NEPA analysis so that
appropriate NEPA documentation can
be submitted to the appropriate federal
and state agencies, along with the
recommendation that the proposal is in
compliance with applicable
environmental and historic
preservations laws. Applicants
proposing activities that cannot be
covered by existing environmental
compliance procedures will be informed
after the technical review stage whether
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NEPA compliance and other
environmental requirements can
otherwise be expeditiously met so that
a project can proceed within the
timeframes anticipated under the
ReConnect Program. If additional
information is required after an
application is accepted for funding,
funds can be withheld by the agency
under a special award condition
requiring the Awardee to submit
additional environmental compliance
information sufficient for the Agency to
assess any impacts that a project may
have on the environment.
C. De-Obligation
The RUS reserves the right to
deobligate awards to Awardees under
this FOA that demonstrate an
insufficient level of performance,
wasteful or fraudulent spending, or
noncompliance with environmental and
historic preservation requirements.
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D. Confidentiality of Applicant
Information
Applicants are encouraged to identify
and label any confidential and
proprietary information contained in
their applications. The Agency will
protect confidential and proprietary
information from public disclosure to
the fullest extent authorized by
applicable law, including the Freedom
of Information Act, as amended (5
U.S.C. 552), the Trade Secrets Act, as
amended (18 U.S.C. 1905), the
Economic Espionage Act of 1996 (18
U.S.C. 1831 et seq.), and CALEA (47
U.S.C. 1001 et seq.). Applicants should
be aware, however, that the
Consolidated Appropriations Act
requires substantial transparency. For
example, RUS is required to make
publicly available on the internet a list
of each entity that has applied for a loan
or grant, a description of each
application, the status of each
application, the name of each entity
receiving funds, and the purpose for
which the entity is receiving the funds.
E. Compliance With Applicable Laws
Any recipient of funds under this
FOA shall be required to comply with
all applicable federal, tribal and state
laws, including but not limited to:
1. The nondiscrimination and equal
employment opportunity requirements
of Title VI of the Civil Rights Act of
1964, as amended (42 U.S.C. 2000e et
seq., 7 CFR pt. 15);
2. Section 504 of the Rehabilitation
Act (29 U.S.C. 794 et seq.; 7 CFR pt.
15b);
3. The Age Discrimination Act of
1975, as amended (42 U.S.C. 6101 et
seq.; 45 CFR pt. 90);
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17:56 Dec 11, 2019
Jkt 250001
4. Executive Order 11375, amending
Executive Order 11246, Relating to
Equal Employment Opportunity (3 CFR
pt. 102). See 7 CFR pts. 15 and 15b and
45 CFR pt. 90, RUS Bulletin 1790–1
(‘‘Nondiscrimination among
Beneficiaries of RUS Programs’’), and
RUS Bulletin 20–15:320–15 (‘‘Equal
Employment Opportunity in
Construction Financed with RUS
Loans’’);
5. The Architectural Barriers Act of
1968, as amended (42 U.S.C. 4151 et
seq.);
6. The Uniform Federal Accessibility
Standards (UFAS) (Appendix A to 41
CFR subpart 101–19.6); and
7. The Council on Environmental
Quality Regulations for Implementing
the Procedural Provisions of NEPA and
certain related federal environmental
laws, statutes, regulations, and
Executive Orders found in 7 CFR 1970.
A more complete list of such
requirements can be found in the
applicable Award Documents.
F. Communications Laws
Awardees will be required to comply
with all applicable federal, tribal and
state communications laws and
regulations, including, for example, the
Communications Act of 1934, as
amended, (47 U.S.C. 151 et seq.) the
Telecommunications Act of 1996, as
amended (Pub. L. 104–104, 110 Stat. 56
(1996), and CALEA. For further
information, see https://www.fcc.gov.
G. Executive Order 13132
It has been determined that this notice
does not contain policies with
federalism implications as that term is
defined in Executive Order 13132.
H. Authorized Signatories
Only authorized grant and loan
officers can bind the Government to the
expenditure of funds.
I. Paperwork Reduction Act and
Recordkeeping Requirements
The Information Collection and
Recordkeeping requirements contained
in this FOA have been approved by
OMB Control Number 0572–0152.
Copies of all forms, regulations, and
instructions referenced in this FOA may
be obtained from RUS. Data furnished
by the Applicants will be used to
determine eligibility for program
benefits. Furnishing the data is
voluntary; however, the failure to
provide data could result in program
benefits being withheld or denied.
Chad Rupe,
Administrator, Rural Utilities Service.
[FR Doc. 2019–26522 Filed 12–9–19; 8:45 am]
BILLING CODE 3410–15–P
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Proposed Information Collection;
Comment Request; Foreign Availability
Procedures
Bureau of Industry and
Security, Department of Commerce.
ACTION: Notice.
AGENCY:
The Department of
Commerce, as part of its continuing
effort to reduce paperwork and
respondent burden, invites the general
public and other Federal agencies to
take this opportunity to comment on
proposed and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995.
DATES: To ensure consideration, written
comments must be submitted on or
before February 10, 2020.
ADDRESSES: Direct all written comments
to Mark Crace, IC Liaison, Bureau of
Industry and Security, 1401
Constitution Avenue, Suite 2099B,
Washington, DC 20233 (or via the
internet at PRAcomments@doc.gov).
Comments will generally be posted
without change. All Personally
Identifiable Information (for example,
name and address) voluntarily
submitted by the commenter may be
publicly accessible. Do not submit
Confidential Business Information or
otherwise sensitive or protected
information. You may submit
attachments to electronic comments in
Microsoft Word, Excel, or Adobe PDF
file formats.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Abstract
This information is collected in order
to respond to requests by Congress and
industry to make foreign availability
determinations in accordance with
Section 768 of the Export
Administration Regulations. Exporters
are urged to voluntarily submit data to
support the contention that items
controlled for export for national
security reasons are available-in-fact,
from a non-U.S. source, in sufficient
quantity and of comparable quality so as
to render the control ineffective.
II. Method of Collection
Submitted electronically or on paper.
III. Data
OMB Control Number: 0694–0004.
Form Number(s): N/A.
Type of Review: Regular submission.
Affected Public: Business or other forprofit organizations.
Estimated Number of Respondents: 2.
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[Federal Register Volume 84, Number 239 (Thursday, December 12, 2019)]
[Notices]
[Pages 67913-67924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26522]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
[Docket: USDA-2017-0002-0001]
ReConnect Pilot Program
AGENCY: Rural Utilities Service, Department of Agriculture.
ACTION: Funding Opportunity Announcement (FOA) and solicitation of
applications for second round of the ReConnect Program.
-----------------------------------------------------------------------
SUMMARY: The Rural Utilities Service (RUS), a Rural Development agency
of the United States Department of Agriculture (USDA), hereinafter
referred to as the Agency, announces its general policy and application
procedures for its second round of funding under the broadband pilot
program. This pilot program was established pursuant to the
Consolidated Appropriations Act, 2018. The Agency is announcing the
application window for this second round of funding and requesting
comments on the program.
DATES:
Applications: Beginning on January 31, 2020, applications can be
submitted through the RUS on-line application portal until 6:00 p.m.
Eastern on March 16, 2020.
Comments: Comments due by March 16, 2020.
ADDRESSES: Application Submission: Apply at https://reconnect.usda.gov.
Electronic applications will allow for the expeditious review of an
Applicant's proposal. As a result, all Applicants must file their
application electronically at the above website.
Comments: For proper delivery, all feedback or comments should
specify ``Identifying Regulatory Reform Initiatives.''
Electronic Submission. You may submit comments electronically
through the Federal eRulemaking Portal: https://www.regulations.gov
using Docket ID: USDA-2017-0002-0001. USDA strongly encourages
commenters to submit comments electronically. Electronic submission of
comments allows you maximum time to prepare and submit a comment and
ensures timely receipt by USDA. Follow the instructions provided on
that site to submit comments electronically.
Mail, Hand delivery, or Courier. Paper, disk, or CD-ROM submissions
should be submitted to [email protected], Office of Budget and
Program Analysis, USDA, Jamie L. Whitten Building, Room 101-A, 1400
Independence Ave. SW, Washington, DC 20250.
FOR FURTHER INFORMATION CONTACT: For general inquiries, contact Chad
Parker, Assistant Administrator Telecommunications Program, Rural
Utilities Service, U.S. Department of Agriculture (USDA), email:
[email protected], telephone (202) 720-9554. You may obtain
additional information regarding applications at https://reconnect.usda.gov.
SUPPLEMENTARY INFORMATION:
Background
On March 23, 2018, Congress passed the Consolidated Appropriations
Act, 2018 (the Act), which established a new broadband loan and grant
pilot program, now called the Rural eConnectivity Pilot Program
(ReConnect Program). The Act originally appropriated budget authority
of $600 million to be used on an expedited basis. For fiscal year (FY)
2019, Congress funded an additional $550 million for the pilot. The
ReConnect Program provides loans, grants, and loan/grant combinations
to facilitate broadband deployment in rural areas. In facilitating the
expansion of broadband services and infrastructure, the pilot will fuel
long-term rural economic development and opportunities in rural
America. One of those opportunities is precision agriculture. The use
of this technology requires a robust broadband connection. The awards
made under this program will bring high speed broadband to the farms
which will allow them to increase productivity.
Applications
Please note that the application process is designed so that an
applicant must demonstrate financial and technical feasibility of the
project and the entire operation of the applicant. Applicants that do
not demonstrate financial or technical feasibility will not be
considered for an award.
Apply at https://reconnect.usda.gov from January 31, 2020, until
6:00 p.m. Eastern on March 16, 2020. Electronic applications will allow
for the expeditious review of an Applicant's proposal. As a result, all
Applicants must file their application electronically at the above
website.
Comments
For the first round of funding, the United States Department of
Agriculture (USDA) determined that it was in the public interest to
move forward with developing procedures for the ReConnect Program
within a Funding Opportunity Announcement (FOA), as is common with a
pilot, instead of rulemaking. Such a method would also meet the
statutory mandate of expediting program delivery. Notwithstanding the
lack of rulemaking, however, before USDA finalized and published the
FOA, it requested informal comments from the public on a wide range of
issues to be considered by the agency in the ReConnect Program. See
Notice of Inquiry and Request for Comments, 83 FR 35609 (July 27,
2018). Once the FOA was published, the application windows were open
between April 23, 2019 and July 12, 2019.
Thereafter, the Agency received input from applicants that
participated in the first funding round on issues which included, but
were not limited to: (1) The availability of data; (2) frequency of
collection; (3) clarity of instructions; (4) data elements to be
recorded, disclosed, or reported; (5) access to forms; and (6)
accessibility for troubleshooting. Based on that input, the Agency made
further changes to the program, which are discussed below.
Additionally, with this FOA, the agency is now requesting that the
public again provide feedback on the program, as was done with the July
27th Notice of Inquiry. Specifically, the public is requested to submit
comments that would inform any future rounds of ReConnect funding, if
any, or comments on issues that should be addressed in any future
broadband program. Additionally, and consistent with the Department's
Regulatory Reform Initiatives, the public is requested to submit
comments related to program
[[Page 67914]]
implementation, suggestions on decreasing the public burden, etc.,
through the USDA request for information published on July 17, 2017 (82
FR 32649). See ADDRESSES for information about how to comment.
Authority: This solicitation is issued pursuant to the
Consolidated Appropriations Act, 2018, Public Law 115-141, the
Consolidated Appropriations Act, 2019, Public Law 116-6, and the
Rural Electrification Act of 1936, 7 U.S.C. 901 et seq.
Overview
Federal Agency: Rural Utilities Service, USDA.
Funding Opportunity Title: Rural eConnectivity Pilot Program
(ReConnect Program).
Announcement Type: Funding Opportunity Announcement (FOA) and
solicitation of applications.
Catalog of Federal Domestic Assistance (CFDA) Number: Rural
eConnectivity Pilot Program (ReConnect Program)--10.752.
Items in Supplementary Information
I. Overview
II. Summary of Changes
III. Definitions
IV. Substantially Underserved Trust Areas
V. Funding Opportunity Description
VI. Eligibility Information
VII. Application and Submission Information
VIII. Application Evaluation Criteria
IX. Notice of Proposed Funded Service Areas
X. Evaluation and Processing Procedures
XI. Award Administration Information
XII. Other Information
I. Overview
On March 23, 2018, Congress passed the Consolidated Appropriations
Act, 2018 (the FY2018 Appropriations), which established a broadband
loan and grant pilot program, the Rural eConnectivity Pilot Program
(hereinafter the ReConnect Program). One of the essential goals of the
ReConnect Program is to expand broadband service to rural areas without
sufficient access to broadband, defined as 10 megabits per second
(Mbps) downstream and 1 Mbps upstream. For this purpose, Congress
provided RUS with $600 million and expanded its existing authority to
make loans and grants. Additionally, the FY2018 Appropriations
specifically authorized technical assistance to assist the Agency in
expanding needed service to the most rural communities where 90 percent
of the households are without sufficient access to broadband service.
Once again, on January 3, 2019, Congress appropriated (the FY2019
Appropriations) an additional $550 million to continue the ReConnect
Program. To promote broadband in rural America, RUS encourages state
and local jurisdictions to waive any fees associated with granting
rights-of-ways and to assist applicants and awardees with satisfying
any environmental requirements such as approval from the State
Historical Preservation Office.
II. Summary of Changes
The first funding round of the Reconnect Program is considered a
success with the Agency receiving one hundred and forty-six (146)
submitted applications for a total of over $1.4 billion. After a
careful review of the lessons learned during the first round of
funding, several changes are being instituted for second funding round.
Those changes include, but are not limited to, the following:
1. The application window for the three categories of funding will
be from January 31, 2020 through March 16, 2020.
2. Definitions have been added for healthcare and educational
facilities and the name for critical community facilities has been
changed to essential community facilities.
3. For 100 percent grants, 90 percent of the proposed funded
service area cannot have sufficient access to broadband, as opposed to
100 percent under round one.
4. The requirement for two years of unqualified, comparative,
audited financial statements has been changed to unqualified,
comparative, audited financial statements for the previous year from
the date the application has been submitted.
5. The requirement that applicants must submit certifications from
the appropriate state or tribal broadband office has been changed to a
voluntary request.
6. Pre-application expenses that were incurred for round one, but
benefit an application for round two, may be funded up to the 5 percent
of the total award in round 2.
7. Under certain conditions a subsidiary can use the unqualified,
comparative, audited statements to meet certain eligibility
requirements.
8. The scoring criteria for farms has been changed. Applicants will
receive 1 point for every 10 farms served up to a maximum of 20 points.
Farms will be counted using 2017 Census of Agriculture data.
9. Tribal leaders can submit documentation supporting scoring
points for the number of healthcare, educational and essential
community facilities.
10. The time period incumbent service providers will be able to
challenge if sufficient service is present in an applicant's proposed
funded service area is being increased from 30 days to 45 days.
III. Definitions
The terms and conditions provided in this FOA are applicable to and
for purposes of this FOA only. Unless otherwise provided in the award
documents, all financial terms not defined herein shall have the
meaning as defined by Generally Accepted Accounting Principles.
Administrator means the RUS Administrator, or the Administrator's
designee.
Applicant means an entity requesting funding under this FOA.
Application means the Applicant's request for federal funding,
which may be approved in whole or part by RUS.
Award documents mean, as applicable, all associated grant
agreements, loan agreements, or loan/grant agreements.
Award means a grant, loan, or loan/grant combination made under
this FOA.
Awardee means a grantee, borrower, or borrower/grantee that has
applied and been awarded federal assistance under this FOA.
Broadband loan means, for purposes of this FOA, a loan that has
been approved or is currently under review by RUS after the beginning
of Fiscal Year 2000 in the Telecommunications Infrastructure Program,
Farm Bill Broadband Program, Broadband Initiatives Program or the
ReConnect Program. Loans that were approved and then subsequently fully
de-obligated are not included in this definition.
Broadband service means any technology as having the capacity to
transmit data to enable a subscriber to the service to originate and
receive high quality voice, data, graphics and video.
Business means a commercial or mercantile activity engaged in as a
means of livelihood. For purposes of this FOA, farms will not be
counted as businesses for scoring purposes.
CALEA means the Communications Assistance for Law Enforcement Act,
47 U.S.C. 1001 et seq.
Composite economic life means the weighted (by dollar amount of
each class of facility) average economic life of all classes of
facilities necessary to complete construction of the broadband
facilities in the proposed funded service area.
Current ratio means the current assets divided by the current
liabilities.
Debt service coverage ratio (DSCR) means (Total Net Income or
Margins + Interest Expense Allowance for Funds
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Used during Construction + Depreciation + Amortization)/(Interest on
Funded Debt + Other Interest + Principal Payment on Debt and Capital
Leases).
Economic life means the estimated useful service life of an asset
as determined by RUS.
Educational facilities mean any public or private educational
institution that offers a program of college, professional,
preparatory, high school, middle school, junior high school,
elementary, or kindergarten instruction, or any combination of those
facilities. Daycare centers, museums, and libraries are also included.
Eligible service area means any proposed funded service area where
90 percent of the households to be served do not have sufficient access
to broadband. For eligibility purposes, if an applicant is applying for
multiple proposed funded service areas, each service area will be
evaluated on a stand-alone basis.
Essential community facilities means public facilities that provide
community services essential for supporting the safety, health, and
well-being of residents, including, but not limited to, emergency
response and other public safety activities.
Equity means total assets minus total liabilities as reflected on
the Applicant's balance sheet.
Farm means any place from which $1,000 or more of agricultural
products were sold or would normally be sold during the year.
Forecast period means the five-year period of projections in an
application, which shall be used by RUS to determine financial and
technical feasibility of the application.
GAAP means accounting principles generally accepted in the United
States of America.
Grant means any federal assistance in the form of a grant made
under this FOA.
Grant agreement means the grant contract and security agreement
between RUS and the Awardee securing the Grant awarded under this FOA,
including any amendments thereto, available for review at https://reconnect.usda.gov.
Healthcare facilities means any facility where healthcare is
provided, including but not limited to, clinics, hospitals, nursing
homes, pharmacies, and urgent care facilities.
Loan means any federal assistance in the form of a loan made under
this FOA.
Loan agreement means the loan contract and security agreement
between RUS and the Awardee securing the Loan, including all amendments
thereto, available for review at https://reconnect.usda.gov.
Loan/grant means any federal assistance in the form of a loan/grant
combination made under this FOA.
Loan/grant agreement means the loan/grant contract and security
agreement between RUS and the Awardee securing the Loan/grant,
including all amendments thereto available at https://reconnect.usda.gov.
Non-funded service area means any area in which the applicant
offers broadband service or intends to offer broadband service during
the forecast period but is not a part of its proposed funded service
area.
Pre-application expenses means any reasonable expenses, as
determined by RUS, incurred after the release of this FOA to prepare an
Application or to respond to RUS inquiries about the Application.
Premises means households, farms and businesses.
Project means all of the work to be performed to bring broadband
service to all premises in the proposed funded service area under the
Application, including construction, the purchase and installation of
equipment, and professional services including engineering and
accountant/consultant fees, whether funded by federal assistance,
matching, or other funds.
Proposed funded service area (PFSA) means the area (whether all or
part of an existing or new service area) where the applicant is
requesting funds to provide broadband service. Multiple service areas
will be treated as separate standalone service areas for the purpose of
determining how much of the proposed funded service area does not have
sufficient access to broadband. Each service area must meet the minimum
requirements for the appropriate funding category to be an eligible
area.
RE Act means the ``Rural Electrification Act of 1936,'' as amended
(7 U.S.C. 901 et seq.).
Rural area means any area which is not located within: (1) A city,
town, or incorporated area that has a population of greater than 20,000
inhabitants; or (2) an urbanized area contiguous and adjacent to a city
or town that has a population of greater than 50,000 inhabitants.
RUS Accounting Requirements shall mean compliance with U.S. GAAP,
acceptable to RUS, the system of accounting prescribed by RUS Bulletin
1770B-1, and the Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards, found at 2 CFR part 200. For
all Awardees the term ``grant recipient'' in 2 CFR 200 shall also be
read to encompass ``loan recipient'' and ``loan/grant recipient'', such
that 2 CFR 200 shall be applicable to all Awardees under this FOA.
Sufficient access to broadband means any rural area in which
household have fixed, terrestrial broadband service delivering at least
10 Mbps downstream and 1 Mbps upstream. Mobile and satellite services
will not be considered in making the determination of sufficient access
to broadband.
Tangible equity means a measure of a company's capital, which is
used by financial institutions to evaluate potential losses by
eliminating intangible assets, goodwill and preferred stock from total
equity.
Tangible equity to total assets means tangible equity divided by
total assets.
Times interest earned ratio (TIER) means (Total Net Income or
Margins + Total Interest-Expense Allowance for Funds Used during
Construction) divided by (Total Interest-Expense Allowance for Funds
Used during Construction).
IV. Substantially Underserved Trust Areas
A. Community Designation of ``Substantially Underserved Trust Area''
If the Administrator determines that a community within ``trust
land'' (as defined in 38 U.S.C. 3765) has a high need for the benefits
of the ReConnect Program, the Administrator may designate the community
as a ``substantially underserved trust area'' (as defined in section
306F of the RE Act).
B. Consideration as a ``Substantially Underserved Trust Area''
To receive consideration as a substantially underserved trust area,
the applicant must submit to the Agency a completed application that
includes all of the information requested in 7 CFR part 1700, subpart
D. In addition, the application must identify the discretionary
authorities within subpart D that it seeks to have applied to its
application. Note, however, that given the prohibition on funding
operating expenses in the ReConnect Program, requests for waiver of the
equity requirements cannot be considered. In addition, due to the
statutory requirements that established the ReConnect Program, waiver
of the nonduplication requirements also cannot be considered.
[[Page 67916]]
V. Funding Opportunity Descriptions
A. Funding Categories
1. General
For the purposes of this FOA, 90 percent of the proposed funded
service area must not have sufficient access to broadband. Applicants
must propose to build a network that is capable of providing service to
every premise located in the proposed funded service area at the time
the application is submitted at a speed of 25 Mbps downstream and 3
Mbps upstream. The Agency reserves the right to make funding offers or
seek consultations to resolve partially overlapping applications. RUS
may contact the applicant for additional information during the review
process. If additional information is requested, the applicant will
have up to 30 calendar days to submit the information. If such
information is not timely submitted, RUS may reject the application.
Once all funds for a category have been expended for the ReConnect
program, all remaining applications will be returned.
2. 100 Percent Loan
Applications will be processed and awarded on a rolling basis. In
the event two loan applications are received for the same proposed
funded service area the application submitted first will be considered
first. The interest rate for a 100 percent loan will be set at a fixed
2 percent. Tangible equity to total assets must be at least 20 percent
at the end of the calendar year starting in the third year of the
forecast period through the remainder of the forecast period.
3. 50 Percent Loan/50 Percent Grant Combination
The interest rate for the 50 percent loan component will be set at
the Treasury rate for the remaining amortization period at the time of
each advance of funds. Applicants may propose substituting cash for the
loan component at the time of application and funds must be deposited
into the construction fund account at the closing of the award. All
eligible applications will be scored and, subject to Section
V(C)(5)(b)(i) (overlapping applications), applications with the highest
score will receive an award offer until all funds are expended for this
category.
4. 100 Percent Grant
Applicants must provide a matching contribution equal to 25 percent
of the cost of the overall project and must clearly identify the source
of the funds even if it is to be provided from the applicant's
operating accounts. All matching funds must be deposited into the
construction fund account at the closing of the award. If the matching
funds are provided by a third party, a serious commitment from the
third party must be submitted indicating that the funds will be
available at the closing of the award if approved. The matching
contribution can only be used for eligible purposes. All eligible
applications will be scored, and subject to Section V(C)(5)(b)(i)
(overlapping applications) applications with the highest score will
receive an award offer until all funds are expended for this category.
B. Available Funds
1. General
Approximately $512,000,000 in funding has been set aside for
funding opportunities under this FOA.
2. Funding Limits
Award amounts under this FOA will be limited as follows:
a. 100 Percent Loan. Up to $200,000,000 is available for loans. The
maximum amount that can be requested in an application is $50,000,000.
b. 50 Percent Loan--50 Percent Grant. Up to $200,000,000 is
available for loan/grant combinations. The maximum amount that can be
requested in an application is $25,000,000 for the loan and $25,000,000
for the grant. Loan and grant amounts will always be equal.
c. 100 Percent Grant. Up to $200,000,000 is available for grants.
The maximum amount that can be requested in an application is
$25,000,000.
d. Reserve. Additional budget authority is available for a reserve,
which may be used for loans or grants under this FOA or may be included
in additional FOAs. The agency reserves the right to increase funding
utilizing the application queue under this FOA should additional
appropriations become available for the same purposes.
3. Repooling
RUS retains the discretion to divert funds from one funding
category to another.
4. Award Period
Awards can be made until all funds have been expended in any given
funding category. While the completion time will vary depending on the
complexity of the project, award recipients must complete their
projects within 5 years from the date funds are first made available.
5. Type of Funding Instrument
The funding instruments will be grants, loans, and loan/grant
combinations.
VI. Eligibility Information
A. General
Applicants must satisfy the following eligibility requirements to
qualify for funding.
B. Eligible Entities
The following entities are eligible to apply for assistance:
1. States, local governments, or any agency, subdivision,
instrumentality, or political subdivision thereof;
2. A territory or possession of the United States;
3. An Indian tribe (as defined in section 4 of the Indian Self-
Determination and Education
Assistance Act (25 U.S.C. 450b));
4. Non-profit entities;
5. For-profit corporations;
6. Limited liability companies; and
7. Cooperative or mutual organizations.
Please note that individuals and legal partnerships are not
eligible to apply. In addition, co-applicants are not eligible. If two
entities would like to partner with each other in delivering broadband
to areas without sufficient access, then one entity must take the lead
on submitting an application. Inter-company agreements can be used to
account for revenues and expenses on the applicant's financial
projections.
C. Application Eligibility Factors
The following requirements must be met by all applications to be
eligible for an award. Applications failing to comply with these
requirements will be rejected.
1. Audited Financial Statement
Applicants must submit an unqualified, comparative, audited
financial statement for the previous year from the date the application
is submitted. If an application is submitted in the first quarter of
the calendar year and the most recent yearend audit has not been
completed, the applicant can submit the two previous unqualified audits
that have been completed. If qualified audits containing a disclaimer
or adverse opinion are submitted, the application will not be
considered. An applicant can use the consolidated financials of the
parent as long as the parent fully guarantees the loan, or in the case
of a grant, guarantees that construction will be completed as approved
in the application or will repay the grant to RUS.
[[Page 67917]]
2. Fully Completed Application
Applicants must submit a complete application and provide all
supporting documentation required for the application.
3. Timely Buildout Completion
A project is eligible only if the application demonstrates that the
project can be completely built out within 5 years from the date funds
are first made available.
4. Technical Feasibility
Only projects that RUS determines to be technically feasible will
be eligible for an award. Applicants will be required to submit a
network design, network diagram, project costs and a buildout timeline,
all certified by a professional engineer. The certification from the
professional engineer must state that the proposed network can deliver
broadband service at the required level of service to all premises in
the proposed funded service area. If a certification is not submitted,
the application may not be considered for funding.
5. Service Areas
a. Eligible Service Areas
(i) Applicants must propose to provide broadband service directly
to all premises in the proposed funded service area that do not have
sufficient access to broadband.
(ii) If any part of the applicant's proposed funded service area is
ineligible, RUS, in its sole discretion, may request that an applicant
modify its application, if RUS believes the modification is feasible.
Otherwise, RUS will reject the application.
b. Ineligible Service Areas
(i) Overlapping Service Areas.
RUS will not fund more than one project that serves any one given
geographic area. Invariably, however, applicants will propose service
areas that overlap, varying from small de minimus areas of the
territory, but which may be significant with respect to households
involved, to larger areas of the service territory, but which may
contain few households or businesses, if any. As a result, devising a
procedure which will cover every overlap circumstance cannot be done.
Nevertheless, it is the agency's intent to make as many eligible
applications viable for consideration as possible. That may mean the
agency may: (1) Determine the overlap to be so insignificant that no
agency action is necessary; (2) request one or more applications to be
revised to eliminate the overlapping territory; (3) choose one
application over another given the amount of assistance requested, the
number of awards already chosen in the area or State, or the need for
the project in the specific area due to other factors; or (4) simply
choose the project that scores higher or in the judgement of the agency
is more financially feasible.
ii. Prior Funded Service Areas.
(A) RUS Broadband Loans. Service areas of borrowers that have RUS
broadband loans, as defined in this FOA, are ineligible for all other
applicants, and can be found at https://reconnect.usda.gov. However,
RUS broadband borrowers that have built out their service areas
consistent with their application and loan documents, but were not
required to provide, and are currently not providing, sufficient access
to broadband pursuant to this FOA are eligible to apply for funding for
these service areas; provided that they have not defaulted on, and have
materially complied with, in the sole discretion of RUS, their prior
broadband loan requirements. Current RUS broadband borrowers that have
received funding to provide sufficient access to broadband, but not yet
built out their system are ineligible to apply.
(B) RUS Community Connect Grants. Service areas that received
grants under the RUS Community Connect Grant Program are eligible if
they do not have sufficient access to broadband, except for those
grants still under construction. Service areas still under construction
can be found at https://reconnect.usda.gov.
(C) RUS BIP Grants. Service areas that received a 100 percent grant
under the RUS Broadband Initiatives Program (BIP) are eligible if they
do not have sufficient access to broadband. However, if the applicant
is the same BIP grantee, then the applicant may only request a 100
percent loan.
(D) State-funded Areas. Applicants are encouraged to work with the
Governor's office for the states where they are proposing to provide
broadband service and submit information detailing where state funding
has been provided.
(E) Connect America Fund Phase II Auction--Auction 903 (CAF II).
Funding for service areas of CAF II recipients can only be requested by
the entity that is receiving the CAF II support, and such funding is
limited to a 100% loan. The CAF II service areas can be found at
https://reconnect.usda.gov and may also be found on the FCC web page.
(F) ReConnect Program Awards. Service areas of companies that
received a ReConnect award in round one are not eligible for funding
under this FOA.
6. Fully Funded
A project is eligible only if, all project costs can be fully
funded or accounted for in the application. To demonstrate this,
applications must include evidence of all funding, other than the RUS
award, necessary to support the project, such as bank account
statements, firm letters of commitment from equity participants, or
outside loans, which must evidence the timely availability of funds. If
outside loans are used, they may only be secured by assets other than
those used for collateral under this FOA. Equity partners that are not
specifically identified by name will not be considered in the financial
analysis of the application. If the application states that other funds
are required for the project in addition to the ReConnect funding
requested, evidence must be included in the application identifying the
source of funds and when the funds will be available. If the additional
funding is not clearly identified, the application may not be
considered for an award.
7. Financial Feasibility and Sustainability
Only projects that RUS determines to be financially feasible and
sustainable will be eligible for an award under this FOA. A project is
financially feasible when the applicant demonstrates to the
satisfaction of RUS that it will be able to generate sufficient
revenues to cover expenses; will have sufficient cash flow to service
all debts and obligations as they come due; will have a positive ending
cash balance as reflected on the cash flow statement for each year of
the forecast period; and, by the end of the forecast period, will meet
at least two of the following requirements: A minimum TIER requirement
of 1.2, a minimum DSCR requirement of 1.2, and a minimum current ratio
of 1.2. In addition, applicants must demonstrate positive cash flow
from operations at the end of the forecast period.
If an applicant has no existing debt, is not proposing to borrow
funds during the forecast period, and is applying only for grant funds,
only the current ratio will be applied and not the TIER or DSCR. For
this situation, applicants must meet the minimum current ratio
requirement.
8. Service Requirements
Facilities funded with grant funds must provide broadband service
proposed in the application for the composite economic life of the
facilities, as approved by RUS, or as provided in
[[Page 67918]]
the Award Documents. This includes the grant assets that are funded
with a 50 percent loan and 50 percent combination award. Facilities
funded with loan funds must provide broadband service through the
amortization period of the loan.
9. Application Transparency
a. Pre-Award Public Notice
To ensure transparency for the ReConnect Program, the Agency's
mapping tool will include the following information from each
application and be displayed for the public:
(i) The identity of the applicant;
(ii) the areas to be served;
(iii) the type of funding requested;
(iv) the status of the application;
(v) the number of households without sufficient access to
broadband; and (vi) a list of the census blocks to be served.
b. Post-Award Public Notice
For all approved applications, the agency will post on its website:
The name of the company receiving funding, the type of funding
received, the location of the proposed funded service area and the
purposes of the funding.
c. Post-Award Reporting
Awardees will be required to submit semi-annual reports for three
years after the completion of construction on the following
information:
(i) The number and location of residences and businesses that will
receive service at or greater than the requirement for the appropriate
funding category.
(ii) the types of facilities constructed and installed;
(iii) the speed of the data services being delivered;
(iv) the average price of the data services being delivered in each
proposed service area; and
(v) the broadband adoption rate for each proposed service
territory, including the number of new subscribers generated from the
facilities funded. This information will be used to analyze the
effectiveness of the funding provided and will allow the Agency to
track adoption rates as new and improved broadband services are being
provided.
D. Eligible Cost Purposes
1. General
Award and matching funds must be used only to pay for eligible
costs incurred post award, except for approved pre-application
expenses. Eligible costs must be consistent with the cost principles
identified in 2 CFR 200, subpart E, Cost Principles. In addition, costs
must be reasonable, allocable, and necessary to the project. Any
application that proposes to use any portion of the award or matching
funds for any ineligible costs may be rejected.
2. Eligible and Ineligible Costs
a. Eligible Award Costs
Award funds may be used to pay for the following costs:
(i) To fund the construction or improvement of facilities,
including buildings and land, required to provide broadband service,
including facilities required for providing other services over the
same facilities, such as equipment required to comply with CALEA;
(ii) To fund reasonable preapplication expenses in an amount not to
exceed five percent of the award. If an applicant applied for funding
in round one, preapplication expenses may be eligible for reimbursement
under this round of funding if these expenses support the round two
application (i.e., engineering design, market survey, subscriber
projections, etc.). RUS reserves the sole right to accept or reject
expenses associated with round one. Otherwise, preapplication expenses
for round two may be reimbursed only if they are incurred after the
publication date of this FOA, and properly documented. Preapplication
expenses must be included in the first request for award funds and will
be funded with either grant or loan funds. If the funding category
applied for has a grant component, then grant funds will be used for
this purpose;
(iii) To fund the acquisition of an existing system that does not
currently provide sufficient access to broadband for upgrading that
system to meet the requirements of this FOA. The cost of the
acquisition is limited to 40 percent of the amount requested.
Acquisitions can only be considered in the 100 percent loan category;
and
(iv) To fund terrestrial-based facilities for satellite broadband
service, provided the applicant clearly identifies the PFSA,
demonstrates the ability to provide 25 Mbps downstream and 3 Mbps
upstream simultaneously to every premise in the PFSA, and offers
subscribers reasonable service plans that do not cap bandwidth usage.
b. Ineligible Award Costs
Award funds may not be used for any of the following purposes:
(i) To fund operating expenses of the Awardee;
(ii) To fund costs incurred prior to the date on which the
application was submitted, except for eligible pre-application expenses
incurred prior to the date of the publication date of this FOA, or as
otherwise identified in Section D(2)(a)(ii) above;
(iii) To fund an acquisition of an affiliate, or the purchase or
acquisition of any facilities or equipment of an affiliate. Note that
if affiliated transactions are contemplated in the application,
approval of the application does not constitute approval to enter into
affiliated transactions, nor acceptance of the affiliated arrangements
that conflict with the obligations under the award documents;
(iv) To fund the acquisition of a system previously funded by RUS;
(v) To fund the purchase or lease of any vehicle other than those
used primarily in construction or system improvements;
(vi) To fund broadband facilities leased under the terms of an
operating lease or an indefeasible right of use (IRU) agreement;
(vii) To fund the merger or consolidation of entities;
(viii) To fund costs incurred in acquiring spectrum as part of an
FCC auction or in a secondary market acquisition. Spectrum that is part
of a system acquisition may be considered for loan funding;
(ix) To fund facilities that provide mobile services;
(x) To fund the acquisition of a system that is providing
sufficient access to broadband;
(xi) To refinance outstanding debt; nor
(xii) To fund facilities not required to provide broadband service.
VII. Application and Submission Information
A. Online Application System
All applications under this FOA must be submitted through the RUS
Online Application System located at https://reconnect.usda.gov.
Additional information can be found in the Application Guidelines found
at the above location. This website will be updated regularly.
B. Registration
1. General
Please note the process for requesting a DUNS Number and a cage
code could be lengthy, and applicants should not wait until it is time
to submit an application to obtain these. It is recommended applicants
immediately start this process for these.
[[Page 67919]]
2. Dun and Bradstreet Universal Numbering System (DUNS) Number
All applicants must register for a DUNS number as part of the
application. The applicant can obtain the DUNS number free of charge by
calling Dun and Bradstreet. Go to https://fedgov.dnb.com/webform for
more information on assignment of a DUNS number or confirmation. DUNS
numbers of parent or affiliated operations cannot be substituted for
the applicant. If a DUNS number is not provided, the application cannot
be considered for an award.
3. System for Award Management (SAM)
Prior to submitting an application, the applicant must also
register in SAM at https://www.sam.gov/portal/SAM/#1 and supply a
Commercial and Government Entity (CAGE) Code number as part of the
application. SAM registration must be active with current data at all
times, from the application review throughout the active Federal award
funding period. To maintain active SAM registration, the applicant must
review and update the information in the SAM database annually from the
date of initial registration or from the date of the last update. The
applicant must ensure that the information in the database is current,
accurate, and complete. If the CAGE Code of the applicant is not
included in the application, the application will not be considered for
an award.
C. Contents of the Application
Due to the complexities and the many scenarios that must be
addressed, if multiple applications are submitted, applicants will be
limited to ONE application for this FOA. A complete application will
include the following information as requested in the RUS Online
Application System:
1. General information on the applicant and the project including:
(a) A description of the project that will be made public
consistent with the requirements herein and
(b) The estimated dollar amount of the funding request.
2. An executive summary of the proposed project.
This summary shall include, but not be limited to, a detailed
description of existing operations, discussion about key management,
description of the workforce, description of interactions between any
parent, affiliated or subsidiary operation, a detailed description of
the proposed project, and the source of the matching funds.
3. A description of the proposed funded service area including the
number of premises passed.
4. Subscriber projections including the number of subscribers for
broadband, video and voice services and any other service that may be
offered; A description of the proposed service offerings, and the
associated pricing plan that the applicant proposes to offer.
5. A map, utilizing the RUS mapping tool located at https://reconnect.usda.gov of the proposed funded service areas identifying the
areas without sufficient access to broadband and any non-funded service
areas of the applicant.
6. A description of the advertised prices of service offerings by
competitors in the same area.
7. A network design which includes a description of the proposed
technology used to deliver the broadband service demonstrating that all
premises in the proposed funded service area can be offered broadband
service, a network diagram, a buildout timeline and milestones for
implementation of the project, and a capital investment schedule
showing that the system can be built within 5 years, all of which must
be certified by a professional engineer who is certified in at least
one of the states where there is project construction. The
certification from the professional engineer must clearly state that
the proposed network can deliver the broadband service to all premises
in the proposed funded service area at the minimum required service
level. In addition, if the applicant is requesting the points for
providing a 100 Mbps upstream and 100 Mbps downstream, the
certification must also state that the proposed system is capable of
delivering this service to all premises; a list of all required
licenses and regulatory approvals needed for the proposed project and
how much the applicant will rely on contractors or vendors to deploy
the network facilities. Note that in preparing budget costs for
equipment and materials, RUS' Buy American requirements apply.
8. Resumes of key management personnel, a description of the
organization's readiness to manage a broadband services network, and an
organizational chart showing all parent organizations and/or holding
companies (including parents of parents, etc.), and all subsidiaries
and affiliates.
9. A legal opinion that:
a. Addresses the applicant's ability to enter into the award
documents;
b. describes all material pending litigation matters;
c. addresses the applicant's ability to pledge security as required
by the award documents and
d. addresses the applicant's ability to provide broadband service
under state or tribal law.
10. Summary and itemized budgets of the infrastructure costs of the
proposed project, including if applicable, the ratio of loans to
grants, and any other sources of outside funding. The summary must also
detail the amount of matching funds and the source of these funds. If
the matching funds are coming from a third partly, a commitment letter
and support that the funds are available must also be submitted.
Matching funds must be deposited into the RUS Construction Fund at the
closing of the award.
11. A detailed description of working capital requirements and the
source of these funds.
12. Historical financial statements for the last four years
consisting of a balance sheet, income statement, and cash flow
statement. If an entity has not been operating for four years,
historical statements for the period of time the entity has been
operating.
13. An unqualified, comparative audited financial statement for the
previous calendar year from the date the application is submitted. A
subsidiary can use the consolidated financial statements of the parent
organization if the parent guarantees the award as outlined in Section
VI.C(1) above. For governmental entities financial statements must be
accompanied with certifications as to unrestricted cash that may be
available on a yearly basis to the applicant.
14. Pro Forma financial analysis, prepared in conformity with U.S.
GAAP and the Agency's guidance on grant accounting found at https://www.rd.usda.gov/files/AccountingGuidance10.pdf. The Pro Forma should
validate the sustainability of the project by including subscriber
estimates related to all proposed service offerings; annual financial
projections with balance sheets, income statements, and cash flow
statements; supporting assumptions for a five-year forecast period and
a depreciation schedule for existing facilities, those facilities
funded with federal assistance, matching funds, and other funds. This
pro forma should indicate the committed sources of capital funding and
include a bridge year prior to the start of the forecast period. This
bridge year shall be used as a buffer between the historical financial
information and the forecast period and is the year in which the
application is submitted.
[[Page 67920]]
15. All attachments required in the RUS Online application system;
16. A scoring sheet, analyzing the scoring criteria set forth in
this FOA;
17. A list of all the applicant's outstanding and contingent
obligations, including copies of existing notes, loan and security
agreements, guarantees, any existing management or service agreements,
and any other agreements with parents, subsidiaries and affiliates,
including but not limited to debt instruments that use the applicant's
assets, revenues or stock as collateral;
18. Compliance with the Agencies Environmental Policies and
Procedures of 7 CFR part 1970 is required. To facilitate compliance the
applicant must provide completed Environmental Questionnaire(s) as
prompted by the application system. The questionnaire consists of
project descriptions for environmental review purposes. All project
activities, specific project locations, and supporting documentation,
must be provided to further the Agencies analysis of potential impacts
to the environment. The applicant must supply required environmental
authorizations and permits, including those required by the National
Environmental Policy Act of 1969, as amended (42 U.S.C. 4321 et seq.)
(NEPA), the National Historic Preservation Act of 1966, as amended (16
U.S.C. 470 et seq.) (NHPA), and the Endangered Species Act of 1973, as
amended (16 U.S.C. 1534 et seq.) (ESA) as applicable. Project maps or
site plans are required to identify cable routes, building locations,
tower locations, equipment locations and all structures and facilities
that are part of the project. The Agency will use data provided in the
intake system to complete the environmental review for this project,
and may require the applicant to provide additional information, and
studies post-application. This information is needed to assist with an
efficient and timely review of the environmental requirements.
19. Certification from the applicant that agreements with, or
obligations to, investors do not breach the obligations to the
government under the draft Award Documents, especially distribution
requirements, and that any such agreements will be amended so that such
obligations are made contingent to compliance with the Award Documents.
Such certification should also specifically identify which, if any,
provisions would need to be amended; and
20. If service is being proposed on tribal land, a certification
from the proper tribal official that they are in support of the project
and will allow construction to take place on tribal land. The
certification must: (1) Include a description of the land proposed for
use as part of the proposed project; (2) identify whether the land is
owned, held in Trust, land held in fee simple by the Tribe, or land
under a long-term lease by the Tribe; (3) if owned, identify the land
owner; and (4) provide a commitment in writing from the land owner
authorizing the applicant's use of that land for the proposed project.
If no certification is provided, then this area may be ineligible for
funding.
21. Any other information requested in the online application
system.
D. Material Representations
The application, including certifications, and all forms submitted
as part of the application will be treated as material representations
upon which RUS will rely in awarding grants and loans.
VIII. Application Evaluation Criteria
A. Evaluation Criteria
Applications for the 50/50 loan/grant combo and the 100 percent
grants will be scored and ranked against the following criteria below.
However, applications that cover the same proposed service area will be
evaluated as described in Section V(C)(5)(b)(i) above. If eligible
applications receive the same score and funding becomes limited, the
application that is proposing to serve the highest number of households
without sufficient broadband service will be funded first.
1. Rurality of Proposed Funded Service Area (25 Points)
Points will be awarded for serving the least dense rural areas as
measured by the population of the proposed funded service area per
square mile or if the proposed funded service area is located at least
one hundred miles from a city or town that has a population of greater
than 50,000 inhabitants. If multiple service areas are proposed, the
density calculation will be made on the combined areas as if they were
a single area and not the average densities. For the determination of
the location of the proposed funded service areas, all proposed funded
service areas must be located at least one hundred miles from a city or
town that has a population of greater than 50,000. Population densities
of 6 or less or if the proposed funded service area is located one
hundred miles from a city or town of 50,000, 25 points will be awarded.
2. Farms Served (20 Points)
Applicants will receive 1 point for every 10 farms served up to a
maximum of 20 points. Farms will be counted using 2017 Census of
Agriculture data. The total area in square miles by county covered by
the Proposed Funded Service Area will be treated as its own analysis
area. The mapping tool will calculate the analysis area in square miles
as a percentage of the total county area in square miles and then
multiply this percentage by the total number of farms located in that
county. If there is more than one county covered by the PFSA, the sum
of all analysis area(s) will be used to determine the total number of
farms for that PFSA. Farms will be counted using the GIS layer located
in the RUS mapping tool at: https://reconnect.usda.gov.
3. Performance of the Offered Service (20 Points)
For projects that are proposing to build a network that is capable
of providing at least 100 Mbps symmetrical service to all premises, 20
points will be awarded. The certification from the Professional
Engineer must certify that the proposed system can deliver these speeds
to every premise in the proposed funded service area.
4. Businesses (15 Points)
Applicants will receive 1 point for each business that pre-
subscribes for broadband service up to a maximum of 15 points.
Applicants must have the owner of the business sign the presubscription
form provided in the application system and submit them as part of
their application.
5. Healthcare Centers (15 Points)
For every healthcare center served 1 point will be awarded up to a
maximum of 15 points. Healthcare centers will be counted using the GIS
layer located in the RUS mapping tool at https://reconnect.usda.gov.
For tribal areas not identified in the GIS layer, the tribal leader of
the area can submit documentation supporting the number of healthcare
facilities and will receive 1 point up to a total of 15 points for
every healthcare facility that is identified. A certification that the
facilities exist and are being used must be submitted by the tribal
leader.
6. Educational Facilities (15 Points)
For every school served 1 point will be awarded up to a maximum of
15 points. Schools will be counted using the GIS layer provided in the
RUS mapping tool located at https://reconnect.usda.gov. For tribal
areas not identified in the GIS layer, the tribal leader of the area
can submit documentation supporting the number
[[Page 67921]]
of educational facilities and will receive 1 point up to a total of 15
points for every educational facility that is identified. A
certification that the facilities exist and are being used must be
submitted by the tribal leader.
7. Essential Community Facilities (15 Points)
For every essential community facility served 1 point will be
awarded up to a maximum of 15 points. Essential community facilities
will be counted using the GIS layer located in the RUS mapping tool at
https://reconnect.usda.gov. For tribal areas not identified in the GIS
layer, the tribal leader of the area can submit documentation
supporting the number of Essential Community Facilities and will
receive 1 point up to a total of 15 points for every Essential
Community Facility that is identified. A certification that the
facilities exist and are being used must be submitted by the tribal
leader.
8. Opportunity Zones (5 Points)
For applications that are proposing to provide service in at least
part of an area identified as an Opportunity Zone, 5 points shall be
awarded. Opportunity Zones will be analyzed using the GIS layer located
at https://reconnect.usda.gov.
9. State or Tribal Broadband Activity (20 Points)
For projects that are in a State or tribal area that has a
broadband plan that has been updated within five years of the date of
publication of this FOA, 10 points will be awarded. An additional 5
points will be awarded for projects located in states that do not
restrict utilities from delivering broadband service, and 5 more points
for projects located in states that expedite right-of-way and
environmental requirements. Applicants will be required to submit
evidence from the appropriate State or tribal official that a broadband
plan has been implemented and updated, that there are no restrictions
on utilities providing broadband service, and that procedures are in
place for expediting right-of-way and environmental requirements. If
service is proposed in multiple states tribal areas, then evidence must
be submitted from each state or tribal area to get the appropriate
points.
IX. Notice of Proposed Funded Service Areas
A. The Agency Will Publish a Public Notice of Each Application
The application must provide a summary of the information required
for such public notice including the following:
1. The identity of the applicant;
2. A map of each proposed funded service area showing the rural
area boundaries and the areas without sufficient access to broadband
using the Agency's Mapping Tool;
3. The amount and type of support requested;
4. The status of the review of the application;
5. The estimated number of households without sufficient access to
broadband in each service area exclusive of satellite and mobile
broadband service; and
6. A description of all the types of services that the applicant
proposes to offer in each service area.
B. Notification After the Application Has Been Received
The Agency will publish the public notice on an Agency web page
after the application has been submitted through the online application
system and will remain on the web page for a period of 45 calendar
days. The notice will ask existing service providers to submit to the
Agency, within this notice period, the following information:
1. The number of residential and business customers within the
applicant's service area currently purchasing broadband service,
defined as at a minimum speed of 10 Mbps downstream and 1 Mbps
upstream, the rates of data transmission being offered, and the cost of
each level of broadband service charged by the existing service
provider;
2. The number of residential and business customers within the
applicant's service area receiving voice and video services and the
associated rates for these other services; and
3. A map showing where the existing service provider's services
coincide with the applicant's service area using the Agency's Mapping
Tool.
Please note that the Agency will be contacting any entity that
responds to the notice and will be requesting additional information
such as test result that demonstrate that the area in question has
sufficient access to broadband service.
C. Agency Determination of Sufficient Access to Broadband in Proposed
Funded Service Area
The Agency will use the information submitted to determine if there
is sufficient access to broadband in any part of the proposed funded
service area. Notwithstanding non-responses by actual and potential
providers, the Agency will use all information available in evaluating
the feasibility of the project.
D. Treatment of Submitted Information
The information submitted by an existing service provider will be
treated as proprietary and confidential to the extent permitted under
applicable law.
E. Notice of Application Is Approved
If an application is approved, an additional notice will be
published on the agency's website that will include the following
information:
1. The name of the entity receiving the financial assistance;
2. The type of assistance being received;
3. The purpose of the assistance and the location of the proposed
funded service area; and
4. The semiannual reports submitted under Section X(B)(6)e of this
FOA.
X. Evaluation and Processing Procedures
A. Review of Application
Applications will be evaluated using the criteria stated in Section
VII.C of this FOA. Public comments received with respect to an
application's proposed funded service area will be reviewed and
evaluated. Eligibility of proposed funded service areas will be
verified by the Agency.
RUS also reserves the right to ask applicants for clarifying
information and additional verification of assertions in the
application. For those applications that RUS has selected for funding,
RUS will send award documents.
B. Review of Awardee Operations
1. Entities That Receive Funding Under This FOA
For all entities that receive funding under this FOA, RUS may send
a team to the awardee's facilities to complete a Management Analysis
Profile (MAP) of the entire operation. MAPs are used by RUS as a means
of evaluating an Awardee's strengths and weaknesses and ensuring that
awardees are prepared to fulfil the terms of the award. Once an
applicant accepts an award offer, RUS may schedule a site visit as soon
as possible.
2. Agency Right Not To Advance Funds
RUS reserves the right not to advance funds until the MAP has been
completed. If the MAP identifies issues that can affect the operation
and completion of the project, those issues must be addressed to the
satisfaction of RUS before funds can be advanced. Funding may be
rescinded if following
[[Page 67922]]
a MAP, the agency determines that the awardee will be unable to meet
the requirements of the award.
XI. Award Administration Information
A. Award Notices
Successful applicants will receive an offer letter and award
documents from RUS following award notification. Applicants may view
sample award documents at https://reconnect.usda.gov.
B. Administrative Requirements
1. Pre-Award Conditions
No funds will be disbursed under this program until all other
sources of funding have been obtained and any other pre-award
conditions have been met. Failure to obtain one or more sources of
funding committed to in the Application or to fulfill any other pre-
award condition within 90 days of award announcement may result in
withdrawal of the award.
2. Advance Procedures
RUS loan and grant advances are made at the request of the Awardee
according to the procedures stipulated in the Award Documents. ALL
MATCHING FUNDS OR CASH PROVIDED IN LIEU OF LOAN FUNDS MUST BE EXPENDED
FIRST, FOLLOWED BY LOAN FUNDS, AND THEN BY GRANT FUNDS, EXCEPT FOR RUS
APPROVED PRE-APPLICATION EXPENSES. Grant funds, if any, will be used
for eligible preapplication expenses only on the first advance request.
Accordingly, applications that do not account for such advance
procedures in the pro forma five-year forecast may be rejected.
3. Construction
a. All project assets must comply with 7 CFR part 1788, and 7 CFR
part 1970 located at https://www.rd.usda.gov/publications/regulations-guidelines/regulations, the ReConnect Program Construction Procedures
located at https://reconnect.usda.gov, any successor regulations found
on the agency's website, and any other guidance from the Agency.
b. The build-out of the project must be completed within five years
from the date funds are made available. Build-out is considered
complete when the network design has been fully implemented, the
service operations and management systems infrastructure is
operational, and the awardee is ready to support the activation and
commissioning of individual customers to the new system.
5. Servicing
a. Awardees must make payments on the loan as required in the note
and Award Documents.
b. Awardees must comply with all terms, conditions, affirmative
covenants, and negative covenants contained in the Award Documents.
6. Accounting, Monitoring, and Reporting Requirements
a. Awardees must adopt a system of accounts for maintaining
financial records acceptable to the Agency, as described in 7 CFR part
1770, subpart B.
b. Awardees must submit annual comparable audited financial
statements along with a report on compliance and on internal control
over financial reporting, and management letter in accordance with the
requirements of 7 CFR part 1773. The Certified Public Accountant (CPA)
conducting the annual audit is selected by the borrower and must be
satisfactory to RUS as set forth in 7 CFR 1773 subpart B--RUS Audit
Requirements.
c. Awardees must comply with all reasonable Agency requests to
support ongoing monitoring efforts. The Awardee shall afford RUS,
through its representatives, reasonable opportunity, at all times
during business hours and upon prior notice, to have access to and the
right to inspect: The Broadband System, any other property encumbered
by the Award Documents, any and all books, records, accounts, invoices,
contracts, leases, payrolls, timesheets, cancelled checks, statements,
and other documents, electronic or paper of every kind belonging to or
in the possession of the Awardee or in any way pertaining to its
property or business, including its subsidiaries, if any, and to make
copies or extracts therefore.
d. Awardee records shall be retained and preserved in accordance
with the provisions of 7 CFR part 1770, subpart A.
e. Awardees must submit semiannual reports for 3 years after
completion of the project, which must include the following:
(1) The purpose of the financing, including new equipment and
capacity enhancements that support high-speed broadband access for
educational institutions, health care providers, and public safety
service providers (including the estimated number of end users who are
currently using or forecasted to use the new or upgraded
infrastructure);
(2) The progress towards fulfilling the objectives for which the
assistance was granted, including:
(i) The number of residences and businesses that will receive
service equal to or greater than the speed required for the appropriate
funding category;
(ii) The types of facilities constructed and installed;
(iii) The speed of the broadband services being delivered;
(iv) The average price of the broadband services being delivered in
each proposed service area;
(v) The broadband adoption rate for each proposed service
territory, including the number of new subscribers generated from the
facilities funded; and
7. Assistance Instruments
a. Terms and conditions of loans, grants, or loan/grant
combinations are set forth in the non-negotiable standard loan, grant,
or loan/grant agreements and the corresponding note, and/or mortgage,
if applicable, which may be found at https://reconnect.usda.gov.
b. Award Documents must be executed prior to any advance of funds.
c. Sample Award Documents can be found at https://reconnect.usda.gov.
8. Loan and Loan/Grant Terms and Conditions
Among others, the following terms shall apply to the loans:
a. Interest Rate
If an applicant is applying for a 100% loan, the interest rate
shall be fixed at 2%. If an applicant is applying for a 50/50 loan/
grant combination, the loan shall bear interest at a rate equal to the
cost of borrowing to the Department of Treasury for obligations, as
determined by the government, of comparable maturity. The applicable
interest rate will be set at the time of each advance.
b. Repayment Period
Unless the Applicant requests a shorter repayment period, loans
must be repaid with interest within a period that, rounded to the
nearest whole year, is equal to the expected Composite Economic Life of
the project assets, as determined by RUS based upon acceptable
depreciation rates, plus three years. Acceptable depreciation rates can
be found in the ReConnect Program Constructions Procedures found at
https://reconnect.usda.gov.
c. Amortization Period
Interest begins accruing on the date of each loan advance. All
interest and principle payments will be deferred for a three-year
period starting when funds are made available to be drawn by the
Awardee. At the end of the three-year deferral period, accrued interest
will be capitalized and added to the
[[Page 67923]]
outstanding principal, and monthly payments will be established in an
amount that amortizes the outstanding balance in equal payments over
the remaining term of the loan.
d. Build-Out Period
All proposed construction (including construction with matching and
other funds) and all advance of funds must be completed no later than
five years from the time funds are made available.
e. Loan Security
The loan portion of the award must be adequately secured, as
determined by RUS.
(i) For Corporations and LLC's, the loan and loan/grant
combinations must be secured by all assets of the Awardee. RUS must be
given an exclusive first lien, in form and substance satisfactory to
RUS, on all assets of the Awardee, including all revenues. RUS may
share its first lien position with one or more lenders on a pari passu
basis, except with respect to grant funds, if security arrangements are
acceptable to RUS. Applicants must submit a certification that their
prior lender or lienholder on any Awardee assets has already agreed to
sign the RUS' standard intercreditor agreement or co-mortgage found at
https://reconnect.usda.gov. Note that RUS will not consider sharing
assets with any related party or affiliate of the Awardee. Moreover,
given that RUS cannot renegotiate these standard agreements, Awardees
that are unable to obtain sign-off on the security arrangements may
have their awards rescinded within 60 days of the date the Awardee is
made aware of the approval of its application.
(ii) For Tribal entities and municipalities, RUS will develop
appropriate security arrangements.
(iii) Unless otherwise approved by RUS in writing, all property and
facilities purchased with award funds must be owned by the Awardee.
f. Grant Security
The grant portion of the award must also be adequately secured, as
determined by RUS.
(i) The government must be provided an exclusive first lien on all
grant assets during the service obligation of the grant, and thereafter
any sale or disposition of grant assets must comply with the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards, codified in 2 CFR part 200. Note that this part
will apply to ALL grant funds of an Awardee, regardless of the entity
status or type of organization.
(ii) All Awardees must repay the grant if the project is sold or
transferred without receiving written approval from RUS during the
service obligation of the grant.
9. Award Terms and Conditions
a. Scope
Awardees are required to comply with the requirements established
herein. Any obligation that applies to the Awardee shall extend for the
life of the award-funded facilities.
b. Sale or Lease of Project Assets
The sale or lease of any portion of the Awardee's facilities must
be approved in writing by RUS.
c. Certifications
(i) The Applicant must certify that it is authorized to submit the
application on behalf of the eligible entity(ies) listed in the
Application; that the Applicant has examined the Application; that all
information in the Application, including certifications and forms
submitted, are, at the time furnished, true and correct in all material
respects; that the entity requesting funding will comply with the
terms, conditions, purposes, and federal requirements of the program;
that no kickbacks were paid; and that a false, fictitious, or
fraudulent statement or claim on the Application is grounds for denial
or termination of an award, and/or possible punishment by a fine or
imprisonment as provided in 18 U.S.C. 1001 and civil violations of the
False Claims Act (31 U.S.C. 3729 et seq.);
(ii) The Applicant must certify that it will comply with all
applicable federal, tribal, state, and local laws, rules, regulations,
ordinances, codes, orders, and programmatic rules and requirements
relating to the project, and acknowledges that failure to do so may
result in rejection or de-obligation of the award, as well as civil or
criminal prosecution, if applicable, by the appropriate law enforcement
authorities.
10. Financial and Compliance Reporting Requirements
Awardees must submit to RUS 30 calendar days after the end of each
calendar year quarter, balance sheets, income statements, statements of
cash flow, rate package summaries, and the number of customers taking
broadband service on a per community basis utilizing RUS' on-line
reporting system. These reports must be submitted throughout the loan
amortization period or for the economic life of the facilities funded
with a 100 percent grant. In addition, Awardees will be required to
submit annually updated service area maps through the RUS mapping tool
showing the areas where construction has been completed and premises
are receiving service until the entire proposed funded service area can
receive the broadband service. At the end of the project, Awardees must
submit a service area map indicating that all construction has been
completed as proposed in the application. If parts of the proposed
funded service area have not been constructed, RUS may require a
portion of the award to be rescinded or paid back.
XII. Other Information
A. Discretionary Awards
The government is not obligated to make any award as a result of
this announcement and will fund only projects that are deemed likely to
achieve the program's goals and for which funds are available.
B. Environmental and National Historic Preservation Requirements
Federal Agencies are required to analyze the potential
environmental impacts, as required by the NEPA and the NHPA for
Applicant projects or proposals seeking funding. All Applicants are
required to complete an Environmental Questionnaire, provide a
description of program activities and to submit all other required
environmental documentation as requested in the application system or
by the Agency after the application is submitted. It is the Applicant's
responsibility to obtain all necessary federal, tribal, state, and
local governmental permits and approvals necessary for the proposed
work to be conducted. Applicants are expected to design their projects
so that they minimize the potential for adverse impacts to the
environment. Applicants also will be required to cooperate with the
granting agencies in identifying feasible measures to reduce or avoid
any identified adverse environmental impacts of their proposed
projects. The failure to do so may be grounds for not making an award.
Applications will be reviewed to ensure that they contain sufficient
information to allow Agency staff to conduct a NEPA analysis so that
appropriate NEPA documentation can be submitted to the appropriate
federal and state agencies, along with the recommendation that the
proposal is in compliance with applicable environmental and historic
preservations laws. Applicants proposing activities that cannot be
covered by existing environmental compliance procedures will be
informed after the technical review stage whether
[[Page 67924]]
NEPA compliance and other environmental requirements can otherwise be
expeditiously met so that a project can proceed within the timeframes
anticipated under the ReConnect Program. If additional information is
required after an application is accepted for funding, funds can be
withheld by the agency under a special award condition requiring the
Awardee to submit additional environmental compliance information
sufficient for the Agency to assess any impacts that a project may have
on the environment.
C. De-Obligation
The RUS reserves the right to deobligate awards to Awardees under
this FOA that demonstrate an insufficient level of performance,
wasteful or fraudulent spending, or noncompliance with environmental
and historic preservation requirements.
D. Confidentiality of Applicant Information
Applicants are encouraged to identify and label any confidential
and proprietary information contained in their applications. The Agency
will protect confidential and proprietary information from public
disclosure to the fullest extent authorized by applicable law,
including the Freedom of Information Act, as amended (5 U.S.C. 552),
the Trade Secrets Act, as amended (18 U.S.C. 1905), the Economic
Espionage Act of 1996 (18 U.S.C. 1831 et seq.), and CALEA (47 U.S.C.
1001 et seq.). Applicants should be aware, however, that the
Consolidated Appropriations Act requires substantial transparency. For
example, RUS is required to make publicly available on the internet a
list of each entity that has applied for a loan or grant, a description
of each application, the status of each application, the name of each
entity receiving funds, and the purpose for which the entity is
receiving the funds.
E. Compliance With Applicable Laws
Any recipient of funds under this FOA shall be required to comply
with all applicable federal, tribal and state laws, including but not
limited to:
1. The nondiscrimination and equal employment opportunity
requirements of Title VI of the Civil Rights Act of 1964, as amended
(42 U.S.C. 2000e et seq., 7 CFR pt. 15);
2. Section 504 of the Rehabilitation Act (29 U.S.C. 794 et seq.; 7
CFR pt. 15b);
3. The Age Discrimination Act of 1975, as amended (42 U.S.C. 6101
et seq.; 45 CFR pt. 90);
4. Executive Order 11375, amending Executive Order 11246, Relating
to Equal Employment Opportunity (3 CFR pt. 102). See 7 CFR pts. 15 and
15b and 45 CFR pt. 90, RUS Bulletin 1790-1 (``Nondiscrimination among
Beneficiaries of RUS Programs''), and RUS Bulletin 20-15:320-15
(``Equal Employment Opportunity in Construction Financed with RUS
Loans'');
5. The Architectural Barriers Act of 1968, as amended (42 U.S.C.
4151 et seq.);
6. The Uniform Federal Accessibility Standards (UFAS) (Appendix A
to 41 CFR subpart 101-19.6); and
7. The Council on Environmental Quality Regulations for
Implementing the Procedural Provisions of NEPA and certain related
federal environmental laws, statutes, regulations, and Executive Orders
found in 7 CFR 1970.
A more complete list of such requirements can be found in the
applicable Award Documents.
F. Communications Laws
Awardees will be required to comply with all applicable federal,
tribal and state communications laws and regulations, including, for
example, the Communications Act of 1934, as amended, (47 U.S.C. 151 et
seq.) the Telecommunications Act of 1996, as amended (Pub. L. 104-104,
110 Stat. 56 (1996), and CALEA. For further information, see https://www.fcc.gov.
G. Executive Order 13132
It has been determined that this notice does not contain policies
with federalism implications as that term is defined in Executive Order
13132.
H. Authorized Signatories
Only authorized grant and loan officers can bind the Government to
the expenditure of funds.
I. Paperwork Reduction Act and Recordkeeping Requirements
The Information Collection and Recordkeeping requirements contained
in this FOA have been approved by OMB Control Number 0572-0152. Copies
of all forms, regulations, and instructions referenced in this FOA may
be obtained from RUS. Data furnished by the Applicants will be used to
determine eligibility for program benefits. Furnishing the data is
voluntary; however, the failure to provide data could result in program
benefits being withheld or denied.
Chad Rupe,
Administrator, Rural Utilities Service.
[FR Doc. 2019-26522 Filed 12-9-19; 8:45 am]
BILLING CODE 3410-15-P