Modernizing the E-Rate Program for Schools and Libraries, 9025-9027 [2021-00190]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 86, Number 27 (Thursday, February 11, 2021)]
[Rules and Regulations]
[Pages 9025-9027]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00190]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket No 13-184; FCC 20-178; FRS 17362]


Modernizing the E-Rate Program for Schools and Libraries

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Federal Communications Commission (Commission) amends E-
Rate invoicing rules to enhance the efficient administration of the 
program while ensuring that program participants have sufficient time 
to complete the invoice payment process.

DATES: Effective February 11, 2021.

FOR FURTHER INFORMATION CONTACT: James Bachtell, Wireline Competition 
Bureau, 202-418-7400 or TTY: 202-418-0484.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Modernizing the E-
Rate Program for Schools and Libraries (Order) in WC Docket No. 13-184; 
FCC 20-178, adopted December 9, 2020 and released December 10, 2020. 
Due to the COVID-19 pandemic, the Commission's headquarters will be 
closed to the general public until further notice. The full text of 
this document is available at the following internet address: https://docs.fcc.gov/public/attachments/FCC-20-178A1.pdf.

I. Introduction

    1. The efficient administration of the E-Rate program depends on 
providing program participants flexibility to procure needed services 
and equipment in a timely and cost-effective manner, while ensuring 
that safeguards are in place to administer the program effectively and 
protect against waste, fraud and abuse. Since the program's inception, 
the Commission and the program's administrator, the Universal Service 
Administrative Company (USAC), have continuously worked to achieve the 
appropriate balance in meeting these goals. This Order builds on those 
efforts by amending the invoicing rules to enhance the efficient 
administration of the program while ensuring that program participants 
have sufficient time to complete the invoice payment process.
    2. Specifically, the Commission permits applicants and service 
providers up to 120 days to submit invoices after USAC issues a Revised 
Funding Commitment Decision Letter approving a post-commitment request 
or granting an appeal of a previously denied or reduced funding 
request. In so doing, the Commission facilitates program participants' 
ability to meet evolving needs--by changing service providers or 
submitting service substitutions, for example--without jeopardizing 
their ability to obtain reimbursement or necessitating a Commission 
waiver proceeding. Consistent with this change, the Commission grants 
relief to certain program participants that were excluded from an 
earlier invoicing relief order and provides a one-time waiver 
opportunity for program participants that were unable to timely submit 
an invoice because they were awaiting a post-commitment decision.
    3. In taking these actions, the Commission promotes the goals of 
the E-Rate program by ensuring that its

[[Page 9026]]

subsidies continue to assist students and library patrons in getting 
access to essential communication and broadband services without 
applicants and service providers facing unfair obstacles when 
submitting claims for reimbursement.

II. Discussion

    4. The Commission amends the rules to provide greater flexibility 
to applicants and service providers by providing them 120 days to 
submit an invoice after USAC issues a Revised Funding Commitment 
Decision Letter approving a post-commitment request or granting an 
appeal regarding a previously denied or reduced funding request. The 
Commission also extends the relief provided in the 2018 Invoicing 
Relief Order (DA 18-188) to applicants and service providers that were 
unable to invoice while awaiting a post-commitment decision from USAC 
and timely filed a request for waiver, regardless of whether they 
requested and received a one-time, 120-day invoice deadline extension. 
Finally, the Commission provides a one-time opportunity for program 
participants to seek a waiver if they have not previously done so if 
they can demonstrate that were unable to timely submit an invoice 
because they were awaiting a post-commitment decision. These filings 
must demonstrate good cause to waive the 60-day waiver filing deadline.
    5. Post-Commitment Invoice Period. The Commission amends the E-Rate 
program rules to allow applicants and service providers to submit 
invoices for payment up to 120 days after USAC issues a Revised Funding 
Commitment Decision Letter approving a post-commitment request or 
granting an appeal of a previously denied or reduced funding request. 
The Commission did not fully consider all of the potential scenarios 
that might affect an applicant or service provider's ability to invoice 
when it codified the invoicing deadline in 2014. Such delays could be 
caused by technical issues or involve requests that include 
particularly complicated appeals or investigations. The Commission 
finds that providing applicants and service providers 120 days to 
invoice under these circumstances will not greatly delay the ability of 
the Commission or USAC to efficiently administer the program. Several 
members of the E-Rate community have requested the Commission take 
action, including the State E-Rate Coordinators Alliance (SECA).
    6. The Commission amends the rule now without notice and comment in 
accordance with the exception to the Administrative Procedure Act (APA) 
for procedural rules. This change in the rules will be effective 
February 11, 2021. Upon effectiveness, if USAC grants an appeal or 
approves other post-commitment requests submitted by an applicant or 
service provider, it must provide applicants and service providers 120 
days from the date of the resulting Revised Funding Commitment Decision 
Letter to complete invoicing.
    7. The Commission limits the rule change to post-commitment 
requests or appeal decisions that result in a Revised Funding 
Commitment Decision Letter approving the request. Therefore, applicants 
or service providers appealing partially approved funding requests 
should submit invoices for the partial funding before the original 
invoice deadline expires because USAC will not provide additional time 
to invoice if the appeal is denied.
    8. Relief for Program Participants Outside the Scope of the 2018 
Invoicing Relief Order. The Commission waives the existing invoicing 
rule for any applicant or service provider that was unable to invoice 
while awaiting a post-commitment decision and filed a pending request 
for waiver of this rule with the Wireline Competition Bureau (Bureau) 
for funding year 2016, regardless of whether the applicant or service 
provider requested and received a one-time, 120-day invoice deadline 
extension. The Commission's rules may be waived for good cause shown. 
The Commission finds, as in the 2018 Invoicing Relief Order, that the 
circumstances here require a waiver of the invoicing rules because the 
applicants and service providers made nearly every attempt to comply 
with the invoice deadline rules, but were blocked from timely 
completing the invoicing process because a predicate request or 
function had not been completed (or could not be completed) by USAC's 
systems.
    9. The Commission also directs the Bureau to extend this relief to 
any applicant or service provider that similarly faced this issue and 
filed a pending request for waiver of this rule due to a post-
commitment request approval or a successful appeal decision received 
after the invoice deadline for funding years 2014-2015 and funding year 
2017 or later. Because all of these applicants and service providers 
had approved funding commitments and were unable to take the last step 
to file invoices due to circumstances outside of their control, there 
are no concerns about waste, fraud, or abuse. The Commission therefore 
directs the Bureau to evaluate and grant these pending waiver requests 
on a case-by-case basis consistent with the Order. For program 
participants that receive a waiver, the Commission directs USAC to 
issue a Revised Funding Commitment Decision Letter and provide 120 days 
from the issuance of that letter for applicants or service providers to 
submit or resubmit invoices.
    10. Finally, the Commission recognizes that there may be other 
applicants and service providers that faced the same circumstances as 
the others granted relief in the Order but did not file a waiver 
request with the Commission. To ensure that similar facts lead to 
similar outcomes, other applicants or service providers facing similar 
circumstances may request within 60 days from February 11, 2021, a 
waiver demonstrating that they were unable to timely invoice due to a 
delay in the processing of a post-commitment change or resolution of a 
successful appeal decision for funding years 2014 or later. The 
Commission finds that 60 days is an appropriate length of time to give 
applicants and service providers to file their waiver requests. The 
Commission's current rules require that appeals and waiver requests be 
submitted within this time frame, which provides petitioners an 
adequate opportunity to respond meaningfully to adverse decisions. 
Because these filings are likely being submitted beyond the 60-day time 
period for waiver requests, each pleading must contain an explanation 
of the reason they did not previously file a timely waiver request and, 
if the Bureau finds good cause, it should waive the filing deadline in 
Sec.  54.720(a) of the Commission's rules. The Bureau is directed to 
evaluate and grant these waiver requests to the extent affected parties 
demonstrate that they were unable to submit timely invoices under the 
circumstances discussed in the Order and demonstrate good cause to 
waive the deadline to timely file a waiver request.

III. Procedural Matters

A. Paperwork Reduction Act Analysis

    11. This document does not contain any new or modified information 
collection requirements subject to PRA. In addition, therefore, it does 
not contain any new or modified information collection burden for small 
business concerns with fewer than 25 employees, pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4).

B. Congressional Review Act

    12. The Commission will not send a copy of the Order to Congress 
and the

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Government Accountability Office pursuant to the Congressional Review 
Act, see 5 U.S.C. 801(a)(1)(A), because the adopted rules are rules of 
agency organization, procedure, or practice that do not ``substantially 
affect the rights or obligations of non-agency parties.'' This is a 
procedural rule establishing a deadline for filing invoices.

IV. Ordering Clauses

    13. Accordingly, it is ordered that, pursuant to the authority 
found in sections 1 through 4, 201-202, 254, 303(r) and 403 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151 through 154, 201 
through 202, 254, 303(r), and 403, the Order is adopted.
    14. It is further ordered, pursuant to the authority contained in 
sections 1-4 and 254 of the Communications Act of 1934, as amended, 47 
U.S.C. 151-154 and 254, and Sec.  1.3 of the Commission's rules, 47 CFR 
1.3, that Sec. Sec.  54.514 and 54.720(a) of the Commission's rules, 47 
CFR 54.514 and 54.720(a), ARE WAIVED to the extent provided herein.
    15. It is further ordered, pursuant to the authority contained in 
sections 1-4 and 254 of the Communications Act of 1934, as amended, 47 
U.S.C. 151-154 and 254, and Sec. Sec.  0.91 and 1.3 of the Commission's 
rules, 47 CFR 0.91, 1.3, the Commission directs the Wireline 
Competition Bureau to grant relief to similarly situated applicants to 
the extent described herein.
    16. The rule changes adopted in the Order constitute either a rules 
of agency organization, procedure and practice and are not subject to 
the notice and comment and effective date provisions of the 
Administrative Procedure Act. Accordingly, these rule changes are 
effective February 11, 2021.

Federal Communications Commission.
Marlene Dortch,
Secretary.

    Editorial Note: This document was received for publication by 
the Office of the Federal Register on January 5, 2021.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 54 as follows:

PART 54--UNIVERSAL SERVICE

0
1. The authority citation for part 54 continues to read as follows:

    Authority: 47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220, 
229, 254, 303(r), 403, 1004, and 1302 unless otherwise noted.

0
2. Amend Sec.  54.514 by revising paragraph (a) to read as follows:


Sec.  54.514  Payment for discounted services.

    (a) Invoice filing deadline. Invoices must be submitted to the 
Administrator:
    (1) 120 days after the last day to receive service;
    (2) 120 days after the date of the FCC Form 486 Notification 
Letter; or
    (3) 120 days after the date of the Revised Funding Commitment 
Decision Letter approving a post-commitment request made by the 
applicant or service provider or a successful appeal of a previously 
denied or reduced funding request, whichever is latest.
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[FR Doc. 2021-00190 Filed 2-10-21; 8:45 am]
BILLING CODE 6712-01-P