Emergency Broadband Benefit Program, 19532-19566 [2021-07456]
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FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 54
[WC Docket No. 20–445; FCC 21–29; FRS
19812]
Emergency Broadband Benefit
Program
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
In this document, the Federal
Communications Commission
(Commission) established the
Emergency Broadband Benefit Program
(EBB Program) to support broadband
services and devices to help low-income
households. The Consolidated
Appropriations Act, 2021 (CAA)
established an Emergency Broadband
Connectivity Fund of $3.2 billion in the
Treasury of the United States for the
fiscal year 2021, to remain available
until expended. The CAA directed the
Commission to use the fund to establish
the EBB Program, under which eligible
low-income households may receive a
discount off the cost of broadband
service and certain connected devices
during an emergency period related to
the COVID–19 pandemic.
DATES: Effective April 13, 2021.
FOR FURTHER INFORMATION CONTACT:
Jodie Griffin, Wireline Competition
Bureau, 202–418–7400 or by email at
jodie.griffin@fcc.gov. We ask that
requests for accommodations be made
as soon as possible in order to allow the
agency to satisfy such requests
whenever possible. Send an email to
fcc504@fcc.gov or call the Consumer
and Governmental Affairs Bureau at
(202) 418–0530.
SUPPLEMENTARY INFORMATION: This is a
synopsis of the Commission’s
Emergency Broadband Benefit Program
Report and Order (RO) in WC Docket
No. 20–445; FCC No. 21–29, adopted
February 25, 2021 and released
February 26, 2021. 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/FCC21-29A1.pdf
SUMMARY:
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I. Introduction
1. In the RO, the Commission
establishes the EBB Program to support
broadband services and devices to help
low-income households stay connected
during the COVID–19 pandemic. Efforts
to slow the spread of COVID–19 have
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resulted in the dramatic disruption of
many aspects of Americans’ lives,
including social distancing measures to
prevent person-to-person transmission
which have required the closure of
businesses and schools across the
country for indefinite periods of times,
and in turn has caused millions of
Americans to become newly
unemployed or unable to find work.
These closures have also led people to
turn to virtual learning, telemedicine,
and telework to enable social distancing
measures, which has only increased
every household’s need for access to
broadband services. The cost of
broadband services, however, can be
difficult to overcome for low-income
families and for families that have been
struggling during the pandemic.
2. On December 27, 2020, the CAA
became law. Among other actions
intended to provide relief during the
pandemic, the CAA established an
Emergency Broadband Connectivity
Fund of $3.2 billion in the Treasury of
the United States for the fiscal year
2021, to remain available until
expended. The CAA directed the
Commission to use the funds to
establish the EBB Program, under which
eligible low-income households may
receive a discount off the cost of
broadband service and certain
connected devices during an emergency
period relating to the COVID–19
pandemic, and participating providers
can receive a reimbursement for such
discounts.
3. In creating the EBB Program, the
CAA does not preclude the Commission
from utilizing in whole or in part any of
the Commission’s part 54 rules or
amending them to suit the EBB Program.
Moreover, Congress directed the
Commission to utilize existing
regulatory tools in support of the EBB
Program, such as the National Verifier
and the National Lifeline Accountability
Database—originally designed to
support the existing Lifeline program—
which helps ensure low-income
consumers have access to affordable
voice or broadband internet access
service. The EBB Program, however, is
funded through a separate appropriation
from the Universal Service Fund.
Consistent with Congress’s direction in
the CAA, the Commission establishes
the EBB Program.
II. Discussion
4. The Commission establishes the
requirements and processes of the EBB
Program, pursuant to the CAA. The
Commission sets forth the providers that
may participate in the EBB Program, the
household eligibility requirements for
the program, benefits for covered
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services and devices, the program’s
budget and reimbursement, and other
administrative aspects of the program.
5. Participating Providers. In the CAA,
Congress required that in order to
participate in the EBB Program a carrier
must have provided broadband internet
access service to households as of
December 1, 2020. To meet these
requirements, Congress defined
‘‘participating provider’’ as either an
existing eligible telecommunications
carrier (ETC) or providers approved by
the Commission under an ‘‘expedited
approval process.’’ Congress directed
the Commission to create an ‘‘expedited
approval process’’ to approve providers
to participate EBB Program where the
provider is not an existing ETC. This
expedited approval process requires that
providers with an ‘‘established program
as of April 1, 2020’’ offering broadband
services to eligible households with
verification process sufficient to prevent
fraud, waste, and abuse ‘‘shall be
automatically approve[d].’’ The
Commission seeks to encourage as many
providers as possible to participate in
the EBB Program. Consistent with the
CAA and the proposal in the Public
Notice, DA 21–6, the Commission also
adopts a carrier election process
administered by USAC applicable to all
providers participating in the EBB
Program. Providers that are not
designated as an ETC by a state or the
Commission must also file for automatic
approval or seek expedited approval
from the Commission. In the CAA,
Congress recognized the pressing need
to quickly deliver much-needed support
to Americans by providing the
Commission with the authority to
streamline and expedite the provider
participation process. At the same time,
the Commission must also safeguard the
EBB Program’s funding to ensure it
provides help to those in need and is
not wasted by providers unable to
quickly deliver broadband services.
Accordingly, the election and approval
process the Commission adopts
provides assurances that providers can
promptly deliver broadband services to
low-income households.
6. The Commission directed the
Wireline Competition Bureau (WCB),
within seven days of the adoption of the
RO, to announce a timeline for the
submission of information by providers
required by the CAA, such as
applications from non-ETCs to
participate in the EBB Program, requests
by all providers for approval of
alternative verification processes, and
the submission by ETCs and non-ETCs
of election notices. By Public Notice, DA
21–265, the WCB set a priority
application deadline of March 22, 2021,
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by which providers must submit these
filings to receive approval prior to the
beginning of the EBB Program. The
Commission also directs the WCB to
announce at a later date other
administrative deadlines or milestones,
such as when the EBB Program will
begin and when providers may begin
enrolling subscribers in the program.
The Commission expects that the EBB
Program and the enrollment process
will begin in less than 60 days after the
adoption of the RO.
7. Providers Eligible to Participate. In
the CAA, a ‘‘participating provider’’ for
the EBB Program shall be a ‘‘broadband
provider’’ that is either ‘‘designated as
an eligible telecommunications carrier’’
or seeks approval from the Commission
for participation in the EBB Program.
The Commission agrees with
commenters that the Commission
should establish a broad,
technologically neutral approach to
provider participation in the EBB
Program. This interpretation of provider
eligibility aligned with the plain
language of the CAA, which defined
‘‘broadband provider’’ as any ‘‘provider
of broadband internet access service.’’
Further, the CAA defined ‘‘broadband
internet access service’’ broadly by
referencing the definition in § 8.1 of the
Commission’s rules. Section 8.1 of the
Commission’s rules defines ‘‘broadband
internet access service’’ as:
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a mass-market retail service by wire or radio
that provides the capability to transmit data
to and receive data from all or substantially
all internet endpoints, including any
capabilities that are incidental to and enable
the operation of the communications service,
but excluding dial-up internet access service.
This term also encompasses any service that
the Commission finds to be providing a
functional equivalent of the service described
in the previous sentence or that is used to
evade the protections set forth in this part.
Accordingly, ETCs and non-ETCs
seeking to participate in the EBB
Program must establish they provide
broadband services. the Commission
declines to further narrow provider
eligibility among those providers that
offer broadband services as defined by
the CAA. This interpretation allows
participation by not only ETCs or nonETCs like traditional internet Service
Providers (ISPs) including cable
providers and wireless internet service
providers, but also non-traditional
broadband providers like communityowned networks, electric cooperatives,
or municipal governments.
8. In the CAA, Congress established
that participating providers would be
eligible to receive reimbursement for
‘‘internet service offering[s]’’ offered in
the ‘‘same manner, and on the same
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terms, as described in any of such
provider’s offerings for broadband
internet access service to [an eligible]
household[s], as on December 1, 2020.’’
The Commission interprets this
provision to require participating
providers to have offered retail
broadband internet access service to
eligible households as of December 1,
2020. Consistent with the Commission’s
broadband data reporting rules,
participating providers will be able to
establish through certification that they
provided broadband internet access
service and reimbursable internet
service offerings on December 1, 2020,
through reference to timely filing of FCC
Form 477. For providers that do not file
FCC Form 477, participating providers
must certify that they provided retail
broadband internet access service to
end-users as of December 1, 2020. The
Commission further clarifies that the
retail broadband internet access service
must be provisioned to end users,
meaning the provider of retail
broadband internet access service
maintains a direct relationship with the
customer, is responsible for dealing
with customer complaints, handles
customer billing, and provides quality
of service guarantees to the end user.
The Commission finds these provider
certifications, in addition to the
submission of broadband plan and rate
information described in the following,
appropriately satisfied the CAA’s
eligibility requirements. As described
further in the following, ETCs must
make a showing that they offer
qualifying broadband service in the
election notice filed with USAC. NonETCs must make a threshold showing in
the approval process to the WCB.
9. Election to Participate in
Emergency Broadband Benefit Program
by Existing ETCs and Bureau-Approved
Providers. The CAA directed the
Commission to establish an expedited
process where existing ETCs and other
approved providers could ‘‘elect’’ to
participate in the EBB Program and gain
access to the necessary USAC databases
used to administer the Program. The
Commission adopts the proposal to
require all participating providers to file
an election notice to participate in the
EBB Program. This election will be filed
with USAC to facilitate the
administration of the EBB Program and
provide USAC the necessary
information to incorporate providers
into its systems for eligibility
determination, enrollment, and
reimbursement.
10. Existing ETCs will need to only
file an election with USAC, while nonETCs will need to first apply and then
obtain WCB approval prior to filing
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their election with USAC. Accordingly,
the Commission directs the WCB to
establish a priority application window
during which non-ETC providers
seeking approval to participate in the
EBB Program will have the opportunity
to obtain approval prior to
commencement of consumer
enrollments. Non-ETCs that file
complete applications for approval
meeting the necessary criteria by the
priority application deadline will know
their status prior to the start date for the
EBB Program. The Commission believes
establishing this priority application
deadline provides adequate time for
prospective providers to evaluate the
rules of the EBB Program adopted and
to prepare applications, while also
encouraging prospective providers to
accelerate their consideration consistent
with the need to quickly begin
providing these supported broadband
services. The Commission directs the
WCB and USAC to work expeditiously
to review provider applications and
elections, respectively, and the
Commission directs the WCB to issue
additional guidance and instruction as
necessary for providers seeking to
participate in the EBB Program. Further,
the Commission expects the WCB and
USAC to prioritize their reviews to limit
excessive delay in issuing approvals of
the applications and elections once
properly submitted by the providers.
11. The Commission agrees with
commenters that providers and, more
importantly, their subscribers should
have equal opportunity and access to
the Emergency Broadband Benefit. By
allowing non-ETC providers to obtain
the necessary administrative approvals
prior to the commencement of the EBB
Program, eligible households will have
more choices in the provider they can
select to obtain supported broadband
service and devices. Following the close
of this priority application window, the
WCB, in coordination with USAC, will
establish and announce a uniform start
date on which providers can begin to
enroll qualifying subscribers in the EBB
Program. This start date must allow for
processing of elections and applications
of both existing ETCs and non-ETCs to
enable a consistent start date for all
providers.
12. By establishing a priority
application window and uniform start
date, the Commission intends to afford
providers the necessary time to update
their systems and enrollment processes
to effectively participate in the EBB
Program. Furthermore, preparation and
modification to both Commission and
USAC systems is necessary to
administer the EBB Program. While
leveraging the existing Lifeline
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processes provides some efficiencies,
USAC needs to modify the Lifeline
systems to accommodate workflows
associated with the EBB Program,
including updates to the National
Verifier, NLAD, RAD, and the Lifeline
Claims System (LCS). These updates
require development, security
assessments, and privacy assessments
and approvals required by the Privacy
Act, such as System of Records Notices
(SORNs), Computer Matching
Agreements (CMAs), and systems
testing to ensure an effective launch.
These measures comply with
Congressional and government-wide
directives designed to protect the
privacy and security of members of the
public who submit their information to
the government, including households
who choose to participate in the EBB
Program. While the Commission can
launch the EBB Program with manual
review processes that do not require all
of these approvals, automated
eligibility, and administrative processes
greatly improve functionality. The
Commission remains committed to
expeditiously and successfully
launching the EBB Program.
13. Obligations of Existing ETCs to
Participate in the Emergency Broadband
Benefit Program. The CAA provides that
an existing ETC is a ‘‘participating
provider’’ for the purposes of the EBB
Program. The CAA does not require
existing ETCs to seek approval to
participate in the EBB Program. Instead,
existing ETCs must only ‘‘elect’’ to
participate in the EBB Program to be
eligible for reimbursement for
broadband services. Existing ETCs will
be able to file these elections to
participate in the EBB Program in the
states or territories where they have
already received an existing ETC
designation. To ease administrative
burdens, the Commission allows an ETC
to file an election for itself and its
affiliates who provided broadband
service as of December 1, 2020, within
the states or territories (collectively
‘‘jurisdictions’’) where the provider was
designated as an ETC. In other
jurisdictions where neither the provider
nor its affiliate has an existing ETC
designation, the provider must seek
either automatic or expedited approval
from the WCB prior to submitting the
election notice to USAC.
14. The Commission finds extending
elections to ETC affiliates consistent
with the Commission’s practices in
Lifeline and High Cost that ETCs can
satisfy their statutory obligations to
‘‘offer’’ reimbursable and supported
services through affiliated entities.
Similarly, commenters supported the
ability of ETCs and affiliates to elect to
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participate in jurisdictions where the
ETC is designated. Allowing elections to
be filed for both ETCs and affiliates
without seeking additional approval for
the affiliated entities will also ease
administrative burdens and more
quickly allow providers access to the
EBB Program. Further, ETCs and
affiliated entities are more familiar with
the obligations and requirements within
a particular jurisdiction to safeguard
funds similar to the EBB Program. The
Commission finds permitting this
election to be consistent with the CAA’s
provisions regarding ETC elections and
the Commission past treatment of ETC
requirements.
15. The Commission declines to adopt
the proposals in the record that would
allow an existing ETC to offer service
supported by the EBB Program in any
jurisdiction, or even nationwide,
regardless of where the ETC has been
designated or where it had previously
provided broadband service. First, ETC
designations are inherently
geographically limited due to the
unique authority states have to
designate ETCs. Thus, the Commission
believes the provision in the CAA that
relies on existing ETC designations and
automatically qualifies ETCs to
participate in the EBB Program supports
the proposition that ETCs should be
limited in the EBB Program to the
jurisdictions in which they have already
been designated. Moreover, had the
CAA intended to allow ETCs to offer
supported service everywhere regardless
of the designation, Congress would not
have needed to provide a path for nonETC providers to participate in the EBB
program. As identified in the record,
providers with existing ETC
designations or affiliated with ETCs
have significant relevant experience
with the policies and procedures
needed to carry out the EBB Program
obligations. However, in states where a
provider is not designated as an ETC,
the Commission has less confidence that
the provider has established procedures
and compliance processes necessary for
EBB Program participation in that state.
This decision is further bolstered by the
CAA’s requirement that participating
providers would be eligible to receive
reimbursement for ‘‘internet service
offerings’’ offered in the ‘‘same manner,
and on the same terms, as described in
any of such provider’s offerings for
broadband internet access service to
[eligible] household, as on December 1,
2020.’’ Approving a provider to
participate in a jurisdiction where it
previously did not offer service would
render this statutory provision moot.
16. Provider Election Process to
Participate in the Emergency Broadband
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Benefit Program. The Commission
directs USAC, under the supervision of
and in coordination with the WCB, to
establish and administer a process to
enable all participating EBB Program
providers to file election notices
containing information sufficient to
effectively administer the program. The
Commission directs USAC to collect
information in such notices that
includes: (1) The states in which the
provider plans to participate in the EBB
Program; (2) a statement that, in each
such state, the provider was a
‘‘broadband provider’’ as of December 1,
2020; (3) a list of states where the
provider is an existing ETC, if any; (4)
a list of states where the provider
received FCC approval, whether
automatic or expedited, to participate, if
any; (5) whether the provider intends to
distribute connected devices under the
EBB Program; (6) a description of the
internet service offerings for which the
provider plans to seek reimbursement
from the EBB Program in each state; (7)
documentation demonstrating the
standard rates for those services; and (8)
any other administrative information
necessary for USAC to establish
participating providers in the EBB
Program. In addition to these criteria,
participating providers must certify
under penalty of perjury that the
information set forth in the election
notice is true, accurate, and complete;
they understand and will comply with
all statutory and regulatory obligations
described within the RO, including the
public interest conditions of offering
EBB Program services throughout the
provider’s designated service area; and
all terms and conditions and other
requirements applicable to using the
National Verifier, NLAD, RAD, and
other USAC systems. Providing
materially false information in the
election notice will disqualify a
provider from participation in the EBB
Program. The Commission finds support
in the record for adopting these
requirements and certifications. These
requirements also align with the CAA’s
requirements for provider participation
and eligibility.
17. Provider elections must include
the following information to establish
that the provider has met the criteria
and can provide enough information to
allow USAC to administer the EBB
Program. The Commission directs
USAC, under the supervision of and in
coordination with the WCB, to establish
and administer this election process
consistent with the RO.
(a) List of states in which the provider
plans to participate in the EBB Program.
A provider must list each state in which
it will offer EBB Program services.
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Consistent with USAC’s existing
processes, providers should be prepared
to identify to USAC the postal ZIP
code(s) or Census Block(s) where the
provider will offer EBB Program service
to obtain Service Provider Identification
Number(s) (SPINs) or Study Area Codes
(SACs) to the extent necessary.
(b) A statement that, in each such
state, the provider was a ‘‘broadband
provider’’ as of December 1, 2020.
Consistent with the Commission’s
broadband data reporting rules,
participating providers will be able to
establish that they provided broadband
internet access service and reimbursable
internet service offerings on December
1, 2020 through reference to previous
FCC Form 477 filings. Providers are
required to submit data as of December
31, 2020, and reference to an FCC Form
477 filing for the December data
submission will demonstrate the
provider offered broadband services.
Providers that are not required to file
FCC Form 477 must certify that they
provided retail broadband internet
access service to end users as of
December 1, 2020 and identify the
underlying carrier providing the
network facilities.
(c) A statement identifying where the
provider is an existing ETC. A provider
who is an ETC or is affiliated with an
ETC seeking to begin offering the
Emergency Broadband Benefit must
submit to USAC documentation
demonstrating that it is a participating
provider in specific states. While ETCs
are automatically eligible to participate
and likely have already obtained
administrative numbers from USAC,
such as SPINs or SACs, requiring
demonstration of ETC status, filing this
statement with USAC will allow for
better processing of elections.
(d) A statement identifying where the
provider received FCC approval to
participate in the EBB Program.
Providers seeking approvals outside of
states where they are existing ETCs or
are affiliated with existing ETCs will
need to identify those states and submit
to the WCB approval to participate in
the EBB Program.
(e) A statement confirming whether
the provider intends to distribute
connected devices under the EBB
Program. Providers seeking
reimbursement for connected devices
must submit a statement of intent to
distribute connected devices as part of
their election notice. These providers
should also include documentation
detailing the equipment, rates, and
applicable costs of the laptop, desktop
or tablet. Connected devices should be
accessible to and usable by users with
disabilities. To the extent the provider
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will offer connected devices that are
also generally available to the public, it
may provide summary information
regarding the devices, rates, and costs,
such as a link to a public website or
screenshots.
(f) Description and documentation of
the internet service offerings for which
the provider plans to seek
reimbursement from the EBB Program in
each state. Providers must submit
documentation for the internet service
offerings they will offer through the EBB
Program. The participating provider
should provide information detailing
each service offering for which it plans
to seek reimbursement from the EBB
Program. This information and
documentation should identify the
service plan, details about the service
such as speed and data caps, the service
offering standard rate, equipment costs,
jurisdiction where it is offered, and
documentation establishing the rate was
available on December 1, 2020. The
provider can provide this information
and documentation through the
submission of price lists, rack rates, rate
cards, or similar documentation. For
service offerings that are publicly
available a website or screenshot can be
provided. For offerings that cannot be
publicly viewed the provider should
submit documentation demonstrating
the offering was available on December
1, 2020, such as customer bills or
publicly available advertisements. The
provider can provide aggregated
summaries of service offerings and
standard rates made available to eligible
households, if those offerings and rates
are the same for multiple jurisdictions.
This will reduce the administrative
burden for both participating providers
and the Commission in producing and
reviewing voluminous service offering
descriptions that are substantially
similar.
18. In addition, providers must also
be able to provide or otherwise obtain
the necessary administrative
registrations to utilize Commission and
USAC processes. These processes
include the Commission Registration
System (CORES), FCC Registration
Number (FRN), Service Provider
Identification Number(s) (SPINs), Study
Area Codes (SACs), System for Award
Management (SAM), and/or Dun &
Bradstreet DUNS number for all entities
the provider anticipates seeking
reimbursement. Providers should be
prepared to provide this administrative
information during the election process
to USAC.
19. Processing of Elections. The
Commission directs USAC in
coordination with the WCB to
expeditiously process election notices.
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USAC should establish necessary
systems and processes to systematically
review election notices as quickly as
possible, and at least ensure all
elections filed by existing ETCs and
elections from providers seeking
approvals in the priority application
window are processed prior to the
commencement of the EBB Program.
USAC should notify a provider
promptly if its election notice is
incomplete or otherwise contains errors
that prevent USAC from processing the
election notice. USAC shall process
election notices received during the
priority application window prior to the
uniform reimbursement start date.
USAC will only reject election notices
that are materially incomplete, and that
the provider fails to update.
20. Non-ETC Provider Application
and Approval Process. The CAA
established that providers not already
designated as an ETC that wish to
participate in the EBB Program can seek
either an automatic or expedited
approval from the Commission based on
certain criteria. Specifically, the CAA
required the Commission to establish an
expedited process for such approval and
‘‘to automatically approve as a
participating provider a broadband
provider that has an established
program as of April 1, 2020, that is
widely available and offers internet
service offerings to eligible households
and maintains verification processes
that are sufficient to avoid fraud, waste,
and abuse.’’ Consistent with this
Congressional directive, the
Commission establishes both an
automatic approval and an expedited
approval process for non-ETC providers
seeking to participate in the EBB
Program. The Commission delegates to
the WCB the authority to establish the
process by which providers seek these
approvals, including through
appropriate direction to USAC. Eligible
providers that have submitted complete
applications by the priority application
deadline will know prior to the start
date of the EBB Program if they are
eligible to participate. Applications
from providers filed after priority
application deadline will be reviewed
on an expedited, rolling basis.
21. Some commenters suggested the
Commission provide an opportunity for
states to assist in the decisions to
approve non-ETC providers for the EBB
Program. After due consideration, the
Commission declines to provide a
formal role in the approval process to
state public utilities commissions
(PUCs). First, the Commission
acknowledges the states’ traditional and
essential role in designating ETCs as
provided in section 214 of the
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Communications Act of 1934. It is wellestablished that states have the primary
responsibility for designating ETCs, and
the Commission is only to designate an
ETC where a state lacks jurisdiction
over the carrier applying for
designation. In fact, in the CAA,
Congress recognized the importance of
states’ roles in the selection of providers
for the EBB Program by permitting ETCs
designated by states automatic entry.
However, the CAA also specifically
requires that non-ETC providers be
approved for participation by the
Commission and does not provide a role
for the states. The Commission also
recognizes this is a temporary,
emergency program with limited
funding and it is essential the
Commission moves quickly in
establishing the EBB Program and
approving the participating providers.
While the Commission declines to
establish a formal role for states in the
approval of those non-ETC providers,
the Commission recognizes the states’
interest in knowing the providers who
are or will be providing the supported
broadband service in their jurisdiction
and thus will make publicly available
the names of approved providers in
each state, along with other information
related to the Commission approvals.
22. Automatic Approval Process for
Providers with Existing Support
Programs. The Commission adopts an
automatic approval process consistent
with the CAA to enable non-ETC
broadband providers with ‘‘an
established program as of April 1, 2020,
that is widely available and offers
internet service offerings to eligible
households and maintains verification
processes that are sufficient to avoid
fraud, waste, and abuse’’ to be
automatically approved upon the filing
of information meeting the criteria. Any
non-ETC broadband provider seeking to
qualify for such automatic approval
must file an application describing: (1)
The jurisdiction in which it plans to
participate, (2) the service areas in
which the provider has the authority, if
needed, to operate in each state, but has
not been designated an eligible
telecommunications carrier, and (3) a
description, supported by
documentation, of the established EBB
Program with which the provider seeks
to qualify for automatic admission to the
EBB Program.
23. Established Program as of April 1,
2020. To facilitate provider
participation in the EBB Program, the
Commission adopts a broad
interpretation of what constitutes an
‘‘established program’’ that is ‘‘widely
available.’’ The Commission finds that
this requirement encompasses any
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eligible broadband provider that
maintains an existing program that was
made available by April 1, 2020 to
subscribers meeting at least one of the
criteria in the CAA’s definition of an
eligible household. Specifically,
providers offering broadband
subscribers discounted rates based on
criteria such as low-income, loss of
income, participation in Federal, state,
or local assistance programs, or other
means-tested eligibility criteria qualify
for this automatic approval process.
Additionally, providers that made
commitments to keep subscribers
connected during the pandemic and
offered widely available bill forbearance
or forgiveness programs beginning no
later than April 1, 2020, and continuing
through the end of this EBB Program,
will be eligible for automatic approval.
The Commission finds that providing
automatic approval for providers that
actively offer targeted low-income
programs or programs in which
providers otherwise engaged in
systematic and ongoing billing
practices, like forbearance or
forgiveness, that actively reduced costs
for struggling subscribers is consistent
with the CAA’s requirements. These
actions reduced the financial burden on
struggling households consistent with
the Congressional intent of the EBB
Program. The principal consideration in
determining an ‘‘established program’’
for automatic approval is whether
subscribers receive or were eligible to
receive a financial benefit through either
reduced rates or rate forbearance.
24. Consistent with such a broad
interpretation, the Commission finds
that a program is ‘‘widely established’’
when it was offered to subscribers in a
substantial portion of the service
provider’s service area in a particular
state. The Commission declines to adopt
an interpretation that a program must be
offered throughout the provider’s
national or multi-state service territory
to be widely available. The Commission
finds support in the record that many
considerations factor into offering such
programs that are not consistent across
jurisdictions, such as state and local
privacy laws, access to eligibility
information, broadband carrier
requirements, or the lack of consistent
assistance programs. The Commission
believes Congress’s use of ‘‘widely
available’’ in lieu of more sweeping
alternatives expresses the intent to have
this term apply to service offerings
made publicly available even if the
existing program was not available
throughout a provider’s entire service
area. Further, the public interest favors
an interpretation of this requirement
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that broadly defines the type of
qualifying programs, supports
expeditious entry where possible and in
turn makes EBB Program support
available as quickly as possible.
25. Required Verification Processes.
The CAA also requires that providers
seeking automatic approval to
participate in the EBB Program have
established programs that maintain
verification processes that are
‘‘sufficient to avoid fraud, waste, and
abuse.’’ The Commission finds that
applying this requirement in a forwardlooking manner strikes the appropriate
balance between responsible
stewardship of the funds and ensuring
broad provider participation. Providers
that have been offering a broadband
program for eligible households have
generally foregone collecting revenue
they might otherwise have assessed
from participating subscribers. Those
providers therefore already have
incentive to prevent enrollment in their
programs by ineligible households.
Providers submitting applications for
automatic approval must describe only
the established program and
participation requirements to meet the
approval criteria.
26. Providers that receive automatic
approval to participate in the EBB
Program will use the Lifeline National
Verifier and NLAD to verify household
eligibility or their own alternative
household eligibility verification
processes, or the combination of both
before seeking reimbursement. Even if a
provider has its own existing broadband
program for determining eligible
households, it may decide to use the
National Verifier for some or all
applications to the EBB Program,
although it is not required to do so. The
Commission finds that permitting
automatically approved providers to use
USAC’s eligibility determination
systems in a manner consistent with the
CAA as described in the following
further bolsters program protections
against waste, fraud, and abuse.
27. Timing of Approvals. Providers
that file applications certifying to and
making necessary demonstrations for
the criteria outlined in the document
will receive approval automatically
upon filing once the WCB confirms all
required information was submitted.
The Commission agrees with
commenters in the record who argue the
intent of Congress was to create an
automatic presumption of approval for
providers with existing support
programs. Thus, the Commission
delegates to the WCB the authority to
create and administer an application
process that will automatically approve
provider applications meeting the
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criteria described in the document.
Additionally, once approved, all
providers must file with USAC an
election to participate in the EBB
Program to gain access to USAC
systems.
28. Expedited Review Process for NonETC Providers. The Commission adopts
an expedited review process for nonETC providers that do not qualify for
automatic application processing and
are not affiliated with an ETC in the
same jurisdiction. Such providers must
file an application for expedited review
to receive approval from the WCB to
participate in the EBB Program. As
proposed in the Public Notice, DA 21–
6, each non-ETC broadband provider
seeking to participate must file an
application describing: (1) The state(s)
in which it plans to participate, (2) the
service areas in which the provider has
the authority, if needed, to operate in
each state but has not been designated
an eligible telecommunications carrier,
and (3) documentation of the provider’s
plan to combat waste, fraud, and abuse.
These requirements align with the
CAA’s requirements for provider
participation and eligibility.
29. Provider applications for review
must establish a sufficient showing that
the provider has met the criteria for
expedited review and approval, as
outlined in the following. The
Commission directs the WCB to
establish and administer this expedited
application review process consistent
with the RO.
(a) A list of states or territories where
the provider will offer EBB Program
services. A provider seeking approval
must list each jurisdiction in which it
seeks to be approved to offer EBB
Program services. While the provider
need only identify the state or territory
where it plans to offer qualifying
services for purposes of its submission
to the WCB, providers should be
prepared to identify to USAC in their
election the postal ZIP code(s) or Census
Block(s) where EBB Program service
will be offered to obtain Service
Provider Identification Number(s)
(SPINs) or Study Area Codes (SACs), as
necessary.
(b) A statement identifying the
jurisdiction in which the provider
requires FCC approval and jurisdictions
in which the provider is an existing
ETC. Providers that are designated as an
ETC or affiliated with an ETC in some
states or territories must submit an
application and obtain WCB approval to
participate in the EBB Program in states
or territories where the provider is not
designated as an ETC. Providers, even if
already designated as an ETC in some
states or territories, must seek WCB
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approval to offer EBB Program services
in states or territories in which the
provider is not designated as an ETC.
Because such applications will be
reviewed on either an automatic or
expedited basis, the Commission does
not expect such a requirement to impose
a significant burden on providers.
Providers without an ETC designation
or unaffiliated with an ETC must certify
that they are authorized to provide
broadband services as of December 1,
2020.
(c) Documentation of the provider’s
plan to combat waste, fraud, and abuse.
Participating provider applications must
include a certification that the provider
understands and complies with all
statutory and regulatory obligations,
including those described within the
RO, as public interest conditions of
offering EBB Program services.
Specifically, a provider must certify that
it will:
(i) Confirm a household’s eligibility
for the EBB Program through either the
National Verifier or a Commissionapproved eligibility verification process
prior to seeking reimbursement for the
respective subscriber;
(ii) follow all enrollment requirements
and obtain all certifications as required
by the EBB Program, including
providing eligible households with
information describing the Program’s
eligibility requirements, one-perhousehold rule, and enrollment
procedures;
(iii) interact with the necessary USAC
systems, including the National Verifier,
NLAD, and RAD, before submitting
claims for reimbursement, including
performing the necessary checks to
ensure the household is not receiving
duplicative benefits within the EBB
Program;
(iv) de-enroll from the EBB Program
any household it has a reasonable basis
to believe is no longer eligible to receive
the benefit consistent with Program
requirements;
(v) comply with the EBB Program’s
document retention requirements and
agree to make such documentation
available to the Commission or USAC,
upon request or any entities (for
example, auditors) operating on their
behalf; and
(vi) agree to the Commission’s
enforcement and forfeiture authority.
30. Timing of Approvals. Providers
that have filed an application satisfying
the criteria outlined in the document
will receive expedited review. The
Commission declines to adopt a deemed
granted date or other specific
application review deadlines for the
expedited review process. Providers
submitting applications by the priority
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application deadline will receive a
determination prior to the start of the
EBB Program. Accordingly, the
Commission believes specific
application review deadlines are
unnecessary. The Commission delegates
to the WCB the authority to create and
administer an application review
process that will expeditiously consider
provider applications meeting the
criteria described in the document.
Additionally, all approved providers
must file an election with USAC to
participate in the EBB Program.
31. Conditions and Requirements for
Participating Providers. The
Commission finds there is authority
within the CAA to require participating
providers to offer the EBB Program
benefit throughout the provider’s
approved service area. Additionally, the
Commission finds that use of existing
USAC databases is the most efficient
way to begin the program quickly while
ensuring adequate safeguards to prevent
waste, fraud, and abuse. Accordingly,
the Commission authorizes USAC to
make available the appropriate
databases to administer the EBB
Program including the National Verifier,
NLAD, RAD, and LCS. The Commission
directs USAC to take the appropriate
actions to update, modify, or create the
necessary USAC systems to administer
the EBB Program in line with the
Commission’s direction in the RO. The
Commission further delegates authority
to the WCB and the Office of Managing
Director () to supervise and coordinate
with USAC all actions necessary to
make USAC databases and systems
available for the EBB Program.
32. Public Interest Conditions of
Approvals. The Commission adopts its
proposal to require providers to offer the
EBB Program discount on at least one
service offering across all of its
approved service areas in each of the
states in which it is approved to
participate. The Commission finds that
such an approach is consistent with the
CAA’s requirements regarding the
establishment of the EBB Program to
reimburse providers for discounts
provided to subscribers and supports
the public interest in ensuring
subscribers have access to the EBB
Program. Further, the CAA grants the
authority to the Commission to
determine whether a provider meets the
requirements to participate in the EBB
Program. The Commission agrees with
commenters that providers should not
have to extend service offerings into
areas where they currently do not exist
and should not be mandated to offer a
certain quality of service for the reasons
further explained in the following.
Requiring providers to expand or
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otherwise deploy service offerings or
existing programs into areas where they
currently do not exist increases provider
burdens and delays implementation for
providers seeking to quickly offer EBB
Program services. Approved providers
must offer at least one EBB Programreimbursed service to each of its eligible
households within its service area.
However, the Commission also
encourages participating providers to
make EBB Program support available for
all its service offerings for eligible
households. Additionally, pursuant to
the CAA, participating providers must
not deny an eligible household the
ability to participate in the EBB Program
based on any past or present arrearages
with that provider, may not require an
eligible household to pay an early
termination fee if the household enters
into a contract for its EBB Programsupported service and later terminates
that contract, and may not subject EBB
Program-supported service to a
mandatory waiting period based on a
household having previously received
service from that provider.
33. Notice to Consumers. Providers
also play an important role in ensuring
that their customers are informed about
the EBB Program at the point of
application and enrollment. Providers
will have a direct relationship with their
customers, and as such, have a
responsibility to ensure that these
customers have the information they
need to make an informed decision
about the broadband service product
they subscribe to supported by the EBB
Program. Accordingly, the Commission
requires participating providers to
collect and retain documentation
demonstrating that, prior to enrolling an
existing subscriber in the EBB Program,
the provider clearly disclosed to the
household that the EBB Program is a
government program that reduces the
customer’s broadband internet access
service bill, is temporary in nature, that
the household will be subject to the
provider’s undiscounted rates and
general terms and conditions at the end
of the program if they continue to
receive service, that the household may
obtain broadband service supported by
the EBB Program from any participating
provider of their choosing, and that the
household may transfer their EBB
Program benefit to another provider at
any time. The provider must also retain
documentation demonstrating that,
having received such disclosures, the
household provided affirmative consent
to applying their EBB Program benefit to
the service received from the EBB
Program provider. The Commission
believes that this disclosure and consent
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process will help ensure that lowincome households are aware of their
choices in the EBB Program without
creating overly burdensome application
requirements for those households.
34. Use of the National Verifier,
NLAD, RAD and other USAC databases.
The Commission finds that, consistent
with the CAA’s provision allowing the
Commission to use USAC’s systems and
services to implement the EBB Program,
participating providers will be required
to use certain USAC systems, such as
the Lifeline NLAD and RAD, for
program administration and will be
permitted to use the National Verifier to
determine household eligibility. The
Commission adopts its proposal to rely
on the USAC-administered National
Verifier, NLAD, RAD, LCS, and other
established processes for the EBB
Program, including the provider
reimbursement process, call centers for
program support, provider and
consumer outreach, and conducting
program integrity reviews. Accordingly,
the Commission adopts the applicable
part 54 rules that currently govern
Lifeline provider interactions with these
USAC systems. Specifically, the
Commission applies the requirements of
§ 54.400(i) and (o) of the Commission’s
rules defining the NLAD and National
Verifier; § 54.404 of the Commission’s
rules outlining carrier interactions with
the NLAD; § 54.406 of the Commission’s
rules outlining enrollment agent
activities and requiring registration with
the RAD; § 54.410 of the Commission’s
rules where appropriate in requiring the
use of the National Verifier for
eligibility determinations; and § 54.419
of the Commission’s rules allowing the
use of electronic signatures. The
Commission directs the WCB, and
USAC as directed by the WCB, to issue
any further guidance or instruction
necessary to clarify the obligations of
EBB Program providers when using
USAC databases and the administrative
process established for the EBB
Program.
35. Safe harbor for participating
providers. The CAA provides a safe
harbor provision stating that the
Commission may not enforce a violation
of the CAA using sections 501, 502, or
503 of the Communications Act, or any
rules of the Commission promulgated
under such sections, if a participating
provider demonstrates that it relied in
good faith on information provided to
such provider to make any verification
required by subsection 904(b)(2) of the
CAA. Section 904(b)(2) of the CAA
imposes a duty on participating
providers to verify whether a household
is eligible to receive the service and
connected devices supported by the
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EBB Program. The Commission
establishes that this safe harbor will
apply to providers who utilize the
National Verifier for eligibility
determinations or any alternative
eligibility verification process that has
received approval from the Commission
consistent with the RO. The safe harbor
applies to providers who act in ‘‘good
faith’’ with respect to these eligibility
verification processes. The Commission
has extensive experience in evaluating
good faith actions of regulated entities
in both negotiation and cost
reimbursement. In line with this
experience, this safe harbor applies to
participating providers for eligibility
determinations who act in good faith
based on information provided to them
in the household eligibility and
enrollment process. Good faith will be
determined on the totality of
circumstances surrounding the
participating providers actions or
statements. Participating providers that
reasonably rely upon the documentation
regarding eligibility determinations
provided by eligible households or
eligibility determinations from the
National Verifier will be able to avail
themselves of this statutory safe harbor
for purposes of their compliance with
the EBB Program rules.
36. Application and Election
Procedures. A provider application to
participate in the EBB Program will
provide information used to determine
whether the applicant has the legal and
technical qualifications to participate in
the EBB Program. An applicant must
certify, under penalty of perjury, its
qualifications. Non-ETC providers must
certify under penalty of perjury that the
information set forth in their application
is true, accurate, and complete; they
understand and will comply with all
statutory and regulatory obligations
described within the RO; and all terms
and conditions and other requirements
applicable to using the National
Verifier, NLAD, RAD, and other USAC
systems. Providing materially false
information in the application will
disqualify a provider from participation
in the EBB Program. Eligibility to
participate in the EBB Program is based
on an applicant’s submission of
required information and certifications.
A potential applicant must take
seriously its compliance duties and
responsibilities and carefully determine
before filing an application that it is able
to meet the obligations associated with
EBB Program support. An applicant’s
filing and subsequent approval does not
guarantee the applicant will receive EBB
Program reimbursement. Each
participating provider must file all
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required forms, information, and
certifications with the Commission and
USAC to receive reimbursement.
37. A non-ETC provider seeking to
participate in the EBB Program must file
the appropriate application, whether it
is eligible for expedited or automatic
approval, electronically, whether filing
for automated or expedited approval,
through the process announced by the
WCB following the adoption of the RO.
An applicant provider bears full
responsibility for submitting an
accurate, complete, and timely
application, and should thoroughly
review the EBB Program participating
provider requirements, in addition to
any subsequent guidance, to ensure all
required information is included in its
application. An applicant provider
should be cognizant that submitting an
application (and any amendments
thereto) constitutes a representation by
the certifying official that he or she is an
authorized representative of the
applicant, that he or she has read the
appropriate instructions and
certifications, and that the contents of
the application, its certifications, and
any attachments are true and correct.
Submitting a false certification to the
Commission may result in penalties,
including monetary forfeitures, license
forfeitures, and ineligibility to
participate in future Commission
auctions or competitions, as well as
criminal prosecution and/or liability
under the False Claims Act.
38. Household Eligibility—Emergency
Broadband Benefit Program Eligible
Households. The CAA directs that a
household will qualify for the EBB
Program if at least one member of the
household: (1) Meets the qualifications
for participation in the Lifeline program;
(2) has applied for and been approved
to receive benefits under the free and
reduced price lunch program under the
Richard B. Russell National School
Lunch Act or the school breakfast
program under section 4 of the Child
Nutrition Act of 1966; (3) has
experienced a substantial loss of income
since February 29, 2020 that is
documented by layoff or furlough
notice, application for unemployment
insurance benefits, or similar
documentation or that is otherwise
verifiable through the National Verifier
or the NLAD; (4) has received a Federal
Pell Grant under section 401 of the
Higher Education Act of 1965 in the
current award year; or (5) meets the
eligibility criteria for a participating
provider’s existing low-income or
COVID–19 program, subject to approval
by the Commission and any other
requirements deemed by the
Commission to be necessary in the
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public interest. A household is eligible
for the EBB Program regardless of
whether any member of the household
already receives a Lifeline benefit.
Further, a household is eligible for the
EBB Program ‘‘regardless of whether any
member of the household has any past
or present arrearages with a broadband
provider.’’
39. While the CAA provides a
definition for ‘‘eligible household,’’ it
does not define ‘‘household’’ itself, and
the Public Notice, DA 21–6, sought
comment on using the definition of
‘‘household’’ provided in [the] Lifeline
rules for purposes of administering the
EBB Program. The Lifeline rules define
‘‘household’’ as:
any individual or group of individuals who
are living together at the same address as one
economic unit. A household may include
related and unrelated persons. An ‘‘economic
unit’’ consists of all adult individuals
contributing to and sharing in the income
and expenses of a household. An adult is any
person eighteen years or older. If an adult has
no or minimal income, and lives with
someone who provides financial support to
him/her, both people shall be considered part
of the same household. Children under the
age of eighteen living with their parents or
guardians are considered to be part of the
same household as their parents or
guardians.
The record contains broad consensus
supporting the proposal to use Lifeline’s
definition of household, and the
Commission adopts this proposal. Other
commenters agreed, generally, without
reference to the Lifeline definition, that
multiple people should be able to
receive the EBB Program benefit at a
single address, so long as the people
were part of different households,
similar to Lifeline’s definition of a
household. Some commenters disagree
with the Commission proposal to permit
one benefit per household, noting that
often times households will have
multiple people requiring access to
quality broadband and devices, and
each may need a benefit even though
they are part of the same household.
While the Commission is cognizant of
the varying needs of households, it read
the CAA to allow only a single benefit
per household. As a result, the
Commission will use the Lifeline
program’s definition of household and
limit to each economic unit a single
monthly Emergency Broadband Benefit
and single connected device
reimbursement. To help applicants
determine if there is more than one
household at an address, the
Commission made available for the EBB
Program a Household Worksheet to
confirm whether an applicant is part of
an independent economic household
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19539
from other existing EBB Program
subscribers. For providers conducting
eligibility determinations pursuant to an
approved alternative verification
process, the Commission requires that
such processes include measures to
confirm that a household, under the
definition the Commission adopts
within, is not receiving more than one
EBB Program benefit. The Commission
also directs USAC to conduct periodic
program integrity reviews to confirm
that EBB Program subscribers located at
the same address are in compliance
with these requirements.
40. Commenters also argue the EBB
Program should support broadband
provided to multiple dwelling units at
a single address, such as senior and
student living, mobile home parks,
apartment buildings, and Federal
housing units, that receive service as
part of a bulk billing arrangement where
the households ‘‘are not directly billed
for services by their internet service
provider, but instead pay a monthly fee
for broadband services to their
landlord.’’ Similarly, there may be
‘‘entities such as school districts, health
care providers, assisted living or nursing
facilities, and local governments who
purchase service ‘in bulk’ for eligible
households.’’ The Commission
concludes on balance to make available
the Emergency Broadband Benefit
available in these arrangements as long
as the provider is approved in the EBB
Program and the household is eligible
under the statute. These eligible
households are otherwise at risk of
missing out on broadband services
supported by the EBB Program because
they may not be directly billed by the
participating provider and may not have
a typical relationship with the
participating provider. As a result, the
Commission believes that including
support in the EBB Program for these
eligible households will increase the
number of struggling households that
are able to benefit from the EBB
Program. In situations where the
support is passed through as a discount
off of the monthly price paid by the
eligible household, the eligible
household must provide consent to the
bulk purchaser/aggregator or
participating provider to apply their
EBB Program benefit to that service, and
the participating provider must retain
documentation of such consent. The
participating provider claiming
reimbursement for the service provided
under the bulk arrangement must retain
documentation demonstrating that the
amount claimed by the provider from
the EBB Program is fully passed through
to the eligible household as a discount
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off of the monthly price that the eligible
household otherwise would have paid
directly to the bulk purchaser. To
ensure compliance with these
requirements, the Commission requires
participating providers offering service
through such bulk billing arrangements
to retain documentation demonstrating
the identity of the entity or entities
through which the discount was passed
and the eligible households who
received the subsidized service. As an
example, if a bulk purchaser typically
provides eligible households broadband
service for $30 a month, each eligible
household that receives such service
must provide consent to the bulk
purchaser or participating provider that
the participating provider can seek
reimbursement from the EBB Program
for the $30 a month service. The
participating provider would need to
retain documentation of such consent,
as well as documentation that the $30
that the participating provider is seeking
reimbursement for will be fully passed
through to the eligible household. As a
result of the discount, the bulk
purchaser would be paying $30 less to
the participating provider, and the
eligible household would be receiving
free broadband service and not paying
anything to the bulk purchaser. In cases
where the household does not pay a fee
for the service, either to the provider or
a bulk purchaser/aggregator, but the fee
is paid by another entity, the service
cannot be claimed for EBB Program
support.
41. The Public Notice, DA 21–6,
sought comment on whether there
should be a limitation on the number of
benefits per address regardless of the
number of households. The Commission
concludes that the Commission will not
impose any limitations inconsistent
with the Lifeline definition of a
‘‘household.’’ The Commission also
sought comments on whether additional
enrollments at a single address require
a separate, more rigorous verification
process. Some commenters cautioned
against using a separate process, and the
Commission finds that the Household
Worksheet as used in Lifeline will help
protect against duplicate benefits, while
not being overly burdensome to
applicants. The Public Notice, DA 21–6,
also sought comment on whether an
applicant should certify that no other
person in the economic household is
receiving a benefit. The Commission
finds that the Household Worksheet
requires an applicant to confirm their
understanding of the one-per-household
rule and that the person will lose their
benefit if they break the rule, and the
Commission will not need any further
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certification from an EBB Program
subscriber regarding more than one
benefit at a household. The Commission
further directs USAC to apply its
existing periodic Lifeline program
integrity reviews for addresses with an
unusually high number of subscribers to
addresses enrolled in the EBB Program
as well.
42. The WCB also sought comment on
whether the EBB Program should adopt
the same NLAD processes used for
Lifeline. After consideration of the
record, the Commission concludes that
the Commission should use the NLAD
for a variety of functions for the EBB
Program. The CAA, for example,
contemplates the use of the NLAD by
participating providers for purposes of
determining whether a household is an
eligible household. The Public Notice,
DA 21–6, sought comment on a proposal
to require all participating providers to
track enrollments of eligible households
in the EBB Program in the NLAD to
prevent duplicative support. There was
broad support in the record supporting
the proposal, and the Commission
adopts it. Further, the Commission finds
that all providers, including those that
use an approved alternative verification
process or verify eligibility via a school
as discussed in the following, must
enroll their subscribers in the NLAD
prior to claiming reimbursement for
those subscribers, to prevent duplicative
support between providers.
43. Finally, the Commission observes
that households are eligible to
participate in both the EBB Program and
the Lifeline program, either on the same
or different services, and the
Commission directs USAC to enable the
NLAD to allow an eligible household to
have separate subscriber IDs for the EBB
Program and Lifeline and to associate
such subscriber IDs with a respective
Lifeline provider or Emergency
Broadband Benefit provider, as
applicable. If a household is enrolled
only in the Lifeline program, then it will
only have a Lifeline subscriber ID and
be associated with a Lifeline provider. If
a household is enrolled only in the EBB
Program, then it will only have an EBB
Program subscriber ID and be associated
with an EBB Program provider. If a
household is enrolled in both the
Lifeline program and the EBB program,
then it will have separate Lifeline and
EBB Program subscriber IDs, and each of
those subscriber IDs will be associated
with their respective Lifeline or EBB
Program provider (in some cases, a
household may choose the same
provider for both the Lifeline program
and the EBB Program).
44. National Verifier and NLAD
Eligibility Determination. The CAA
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provides that participating providers
can use one of three methods to verify
eligibility for the EBB Program. In the
following, the Commission discusses
the first method of verification, use of
the National Verifier and NLAD. The
CAA allows a participating provider to
use the National Verifier and NLAD to
confirm applicants’ eligibility. The
Commission finds that allowing
participating providers to use the
National Verifier will help to stand up
the EBB Program quickly and provide
administrative efficiency, while also
serving as an effective tool to prevent
waste, fraud, and abuse. The
Commission directs USAC to make
available an EBB Program consumer
portal and application form leveraging
the existing National Verifier
infrastructure. Commenters also
requested that the Commission enables
a service provider portal or eligibility
check application programming
interface (API) so that providers can
help consumers with the application
process. The Commission agrees that
these additional application methods
would enable providers to help enroll
consumers, and the Commission directs
USAC to make available these other
application methods as well if feasible
within the overall timeframe of the EBB
Program.
45. Generally, the National Verifier is
a system of systems, with computer
connections to state and Federal
eligibility databases that can
automatically check and confirm a
household’s eligibility electronically,
followed by manual review of eligibility
documentation for any applicants
whose eligibility cannot be verified
using an automated data source. To
assist those participating providers that
want the National Verifier to be a onestop shop for determining eligibility for
the EBB Program and do not to conduct
their own verification processes, the
Commission directs USAC to enable the
National Verifier to verify three
additional eligibility bases that are
required by the CAA for the EBB
Program: (1) Participation in free and
reduced lunch program under the
Richard B. Russell National School
Lunch Act or the school breakfast
program under section 4 of the Child
Nutrition Act; (2) a substantial loss of
income since February 29, 2020; and (3)
receipt of a Federal Pell Grant under
section 401 of the Higher Education Act
of 1965 in the current award year. The
CAA contemplates substantial loss of
income and Federal Pell Grant
participation would be verified by the
National Verifier where possible, and
commenters agreed with adding those
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eligibility bases to the National Verifier.
Commenters also suggested that
participation in school breakfast or
lunch should also be added to the
National Verifier, and the Commission
agrees. Where possible, the Commission
directs USAC to enable database
connections through computer matching
agreements with the respective
government entities for those programs.
Where not possible, the Commission
directs USAC, under the direction of the
WCB, to allow eligible households to
submit documentation so that USAC
can manually process the eligibility
information for inclusion in the
National Verifier. The Commission
delegates authority to the WCB to direct
USAC in these efforts and to provide
any additional interpretations of section
904 necessary for implementing use of
the National Verifier for the EBB
Program. Unless and until such database
connections have been enabled, USAC
will verify program eligibility based on
manual documentation review,
consistent with the guidelines discussed
in the following.
46. Where the National Verifier
cannot verify eligibility through any
automated data sources, the
Commission delegates to the WCB to
direct USAC to establish documentation
criteria for the three added eligibility
programs. While the Consolidated
Appropriations Act identified a few
types of documentation to demonstrate
income loss, such as ‘‘layoff or furlough
notice, application for unemployment
benefits, or similar documentation,’’ the
Commission sought comment on other
types of documentation. Some
commenters argued that other
documentation for substantial loss of
income should be construed broadly, or
that the Commission has kept in mind
the widespread loss of income.
Consistent with the Commission’s
clarification of ‘‘substantial loss of
income since February 29, 2020,’’
discussed in the following, any
documentation must clearly show loss
of a job, including due to a furlough,
that began after February 29, 2020,
however documented, as well as the
household’s annual income for 2020. In
addition, many commenters suggested
acceptable documentation for receipt of
a Pell Grant under section 904(a)(6)(D)
of the CAA, including: (1) Written or
electronic confirmation from a student’s
Institution of Higher Education that the
student has received a Pell Grant for the
current award year; (2) a student’s
official financial aid award letter
documenting the amount of a student’s
Pell Grant award received for the
current year; (3) a copy of a student’s
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paid invoice that clearly documents the
student’s receipt of a Pell Grant during
the current award year; and (4) a copy
of a student’s Student Aid Report that
clearly documents the student’s receipt
of a Pell Grant during the current award
year. USAC should consider these
documents when establishing
documentation criteria for receipt of a
Pell Grant.
47. The CAA allows that current
Lifeline enrollees are automatically
eligible for the EBB Program based on
their Lifeline eligibility. Many
commenters suggested that customers
already enrolled in Lifeline should not
have to also apply for the EBB Program.
The Commission finds that current
Lifeline households will not need to
apply for the EBB Program or submit
new eligibility documentation if they
are already enrolled in NLAD. Current
Lifeline enrollees, however, must still
opt-in or affirmatively request
enrollment in the EBB Program. As
explained in the document, providers
must collect and retain documentation
demonstrating that, prior to enrolling an
existing Lifeline household in the EBB
Program, the provider made clear
disclosures regarding the EBB Program
benefit and the consumer’s choices
within the EBB Program, and the
household provided affirmative consent
to applying their Emergency Broadband
Benefit to the service received from the
EBB Program provider.
48. In the Lifeline program, potential
households are required to provide the
last four digits of a Social Security
Number to enroll in National Verifier
and NLAD to verify subscriber identity.
Some commenters, however, argue that
the CAA does not require a Social
Security Number for enrollment in the
EBB Program, and that if the
Commission imposes a Social Security
Number requirement, many of the
neediest households may not be able to
enroll because they may not have a
Social Security Number, may have
difficulty accessing data, or fear
providing a Social Security Number.
Commenters suggested alternative forms
of identification instead of a Social
Security Number, such as an Individual
Taxpayer Identification Number (ITIN),
Government ID, current utility bill, or
current employment photo
identification badge. While the
Commission permits a consumer to use
the last four digits of a Social Security
Number during enrollment, the
Commission was persuaded that
accepting only a Social Security
Number may prevent eligible
households from enrolling in the EBB
Program. Applicants who choose not to
provide the last four digits of their
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Social Security Number or cannot be
verified using a Social Security Number
may verify their identity using a variety
of other types of identity
documentation, including a
government-issued ID, passport, driver’s
license, or Individual Taxpayer
Identification Number documentation.
The Commission directs USAC to work
with the WCB to establish approval
criteria for acceptable identity
documentation. In developing that
criteria, USAC should consider the
methods used to verify identity by
providers with existing low-income
programs.
49. The Public Notice, DA 21–6,
proposed that eligible households will
be required to interact directly with
National Verifier as is currently required
for the Lifeline benefit, and many
commenters supported this proposal.
The Commission adopts this proposal
and will require households to interact
directly with National Verifier. Some
commenters suggested that the
Commission permit service providers to
submit verification requests through the
National Verifier on behalf of
households even if the households
consumers are not physically present
with the service provider, while others
were concerned that consumers may not
be able to access National Verifier as
they do not have broadband access, and
places such as libraries or community
centers that typically offer broadband
access are closed or operating in a
limited capacity due to the pandemic.
Although allowing service providers to
remotely submit information on behalf
of consumers may benefit some
consumers, the Commission finds that
the risk to program integrity and
potential for waste, fraud, and abuse
outweighs the benefit. Further,
households that do not have internet
access to apply electronically through
the National Verifier may still apply for
the EBB Program using a paper
application. In addition, verification
through the National Verifier is not the
only way for households to get verified
in the EBB Program, as service providers
may have their own approved
alternative verification processes to
enroll households, while other
households may be qualified by a
provider through verification with a
school. Given these alternatives, the
Commission thought that permitting
providers to sign up consumers
remotely was necessary.
50. The CAA permits households with
members who qualify for free and
reduced-price school lunch or the
school breakfast program to enroll in the
EBB Program. As a result, the
Commission permits qualifying
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households to apply for the EBB
Program and will have USAC enable the
National Verifier to approve the
household based on participation in free
and reduced lunch program or the
school breakfast program. In the Public
Notice, DA 21–6, the WCB sought
comment on the reduced or free school
breakfast or lunch eligibility from
section 904(a)(6)(B) of the CAA and how
to treat households with students
enrolled in the EBB Program in schools
or school districts that participate in the
USDA Community Eligibility Provision.
Participation in the Community
Eligibility Provision allows the nation’s
highest-poverty schools and school
districts to serve breakfast and lunch at
no cost to all enrolled students without
needing to collect individual household
applications. Thus, households with a
student enrolled in a school or school
district participating in the Community
Eligibility Provision will not have
‘‘applied for and been approved to
receive’’ school lunch or breakfast
programs but are still beneficiaries of
these programs. Many commenters
support that households with children
enrolled in largely low-income schools
or school districts that participate in the
Community Eligibility Provision should
be eligible for the emergency broadband
benefit under section 904(a)(6)(B) of the
CAA despite not individually applying
for assistance. The Commission agrees
with these commenters.
51. Some commenters argue that
accepting participation in the
Community Eligibility Provision would
be overinclusive. On balance, the
Commission finds that the risk of
including otherwise ineligible
households is outweighed by the
importance of making the EBB Program
accessible and removing barriers to
participation. Indeed, because the
schools that participate in the
Community Eligibility Provision are the
among the highest-poverty schools in
the nation, the Commission believes
that including households with students
that attend those schools efficiently
targets low-income households and
excluding such schools would
counterintuitively effectively remove
the National School Lunch Program as
a qualifying program for households in
largely low-income schools and school
districts. The Commission also
recognizes that allowing use of the
Community Eligibility Provision as a
qualifying program limits disclosure to
less sensitive information of
households. While the CAA does not
provide a specific time frame for when
the member of the household should
have been approved for benefits under
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the free and reduced price lunch or
breakfast programs, the California
Emerging Technology Fund proposed
that the Commission should allow proof
of enrollment in these programs for
either the 2019–2020 and 2020–2021
school year, given that many schools
have been closed since mid-March 2020
due to the pandemic and students may
not be enrolled in the programs in the
current school year. The Commission
agrees with this proposal. The
Commission therefore accepts for
eligibility determination purposes a
household’s confirmation that the
household has dependent children who
participated or are participating in the
Community Eligibility Provision school
breakfast or free and reduced-price
school lunch program in the 2019–2020
or 2020–2021 school year. The
Commission directs USAC to develop a
process for such eligibility
determinations that has the capability
to, after a household provides the name
of a dependent child’s school,
automatically check for CEP
participation against the nationwide
lists maintained by U.S. Department of
Agriculture and/or the Food Research &
Action Center. The Commission also
directs USAC to conduct program
integrity reviews of a sample of
households who enrolled in the EBB
Program using this eligibility criteria to
confirm EBB Program compliance.
52. The Public Notice, DA 21–6, also
sought comment on whether a school’s
participation in the E-Rate program
would facilitate any needed verification.
The Commission receives some
comments supporting the idea that a
school participating in E-Rate should be
sufficient to confirm household
eligibility for its students’ households.
However, schools can participate in ERate even if less than 1% of its students
are eligible for the National School
Lunch Program. As such, the
Commission did not find that a school’s
participation in E-Rate alone would
provide any help as to the eligibility of
households that have students enrolled
in that school, and the Commission
declines to use participation in E-Rate
as a basis of eligibility for qualifying for
school lunch or breakfast.
53. Households with members who
have experienced a substantial loss of
income are also qualified to enroll in the
EBB Program according to the CAA. The
WCB sought comment on how to define
a ‘‘substantial loss of income since
February 29, 2020’’ in section
904(a)(6)(C) of the CAA, and whether
households with an income above a
certain level should be excluded from
the EBB Program. Although the
Commission receives comments that the
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Commission should clearly define
‘‘substantial loss of income,’’ only a few
commenters provided criteria for the
Commission to consider. Consistent
with the requirements of the CAA, the
Commission clarifies that a ‘‘substantial
loss of income’’ includes the loss of a
job, including a furlough, that is
documented by a layoff or furlough
notice, application for unemployment
insurance benefits, or similar
documentation. The Commission
permits households with such members
to enroll in the EBB Program through
the National Verifier. To target
eligibility to households most in need,
the Commission agrees with
commenters that the Commission
imposes a household income limitation,
and consistent with the criteria
established by the Centers for Disease
Control to halt evictions, a household
that has suffered a job loss must not
have had an income in 2020 greater than
$99,000 for single-filers and $198,000
for joint filers to be eligible for the EBB
Program.
54. The CAA also permits eligibility
into the EBB Program if a member of a
household has received a Federal Pell
Grant under Section 401 of the Higher
Education Act of 1965 in the current
award year. Commenters supported and
welcomed the inclusion of receipt a Pell
Grant as an eligibility basis for the EBB
Program. USTelecom has asked for
clarification on what constitutes a
household for purposes of a Pell Grant,
given that students that are awarded
Pell Grants are typically living away
from parents, yet that student may be
dependent on parental support. The
Commission clarifies that consistent
with the EBB Program’s adoption of the
Lifeline definition of ‘‘household,’’
people are part of the same household
if they share income and expenses and
live at the same address. If the recipient
of a Pell Grant lives at a separate
address from the recipient’s parents, the
recipient and the family are separate
households, and only the recipient of
the Pell Grant would be eligible for the
EBB Program using Pell Grant
eligibility.
55. The CAA also allows into the EBB
Program a household where at least one
member meets the eligibility criteria for
a participating provider’s existing lowincome or COVID–19 program. For
eligibility under this provision,
commenters suggested that providers
should be able to continue to operate
the EBB Program with the existing
eligibility requirements. Although this
provision of the CAA suggests the
Commission could impose other
eligibility requirements on these
existing programs that the Commission
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considers necessary for the public
interest, given the emergency nature of
the EBB Program, the Commission
declines to modify the programmatic or
income eligibility requirements of any
provider’s existing low-income or
COVID–19 program for purposes of
eligibility in the EBB Program. Some
commenters suggested that the
Commission work with providers to set
a baseline eligibility for the provider’s
existing low-income or COVID–19
program. The Commission similarly
believes imposing baseline criteria on
all existing low-income or COVID–19
programs would be disruptive to those
programs and cause undue burden on
the providers at a time when it is
essential those programs continue to
operate efficiently. Finally, consistent
with the CAA’s allowance that a
broadband provider that had an
established a low-income or COVID–19
program as of April 1, 2020 shall be
automatically approved as a
participating provider, and to ensure
that such eligibility determinations are
made pursuant to well-established
verification mechanisms, the
Commission finds that a participating
provider’s existing low-income or
COVID–19 program must have been
available as of April 1, 2020, and any
eligibility criteria for such programs
must have been established as of April
1, 2020, for use of that program as a
qualifying program under section
904(a)(6)(E) of the CAA.
56. Some commenters suggested that
although the Commission does not
allow Lifeline applicants to self-certify,
the Commission should allow EBB
Program applicants to self-certify given
the emergency nature of the EBB
Program. While the Commission
recognizes that self-certification could
in some circumstances lessen the
burden on some households, the
Commission declines to allow selfcertification. Self-certification presents a
sizable risk of waste fraud and abuse in
the EBB Program. Further, the
Commission finds the CAA
contemplates documentation and
verification to confirm eligibility and
permitting a household to enroll in the
EBB Program while only self-certifying
to eligibility would run contrary to these
statutory requirements. And given the
many bases of eligibility through which
a household is able to enroll in the EBB
Program and different avenues for
verification, the Commission finds that
these ample opportunities make selfcertification far less urgent.
57. Participating Provider Alternative
Verification Process. The CAA also
allows a participating provider to ‘‘rely
upon an alternative verification process
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of the participating provider,’’ subject to
certain conditions. As set out by the
CAA, the ‘‘participating provider
submits information as required by the
Commission regarding the alternative
verification process prior to seeking
reimbursement,’’ and the Commission
has seven days after receipt of the
information to notify the participating
provider if the participating provider’s
‘‘alternative verification process will be
sufficient to avoid waste, fraud, and
abuse.’’
58. The Public Notice, DA 21–6,
sought comment on what information
should be provided to the Commission
concerning the alternative verification
process, and the criteria the
Commission should consider in
determining whether a provider’s
alternative verification process is
sufficient to avoid waste, fraud, and
abuse. Some commenters suggested that
the Commission create a model
‘‘alternative verification process’’ for
participating providers to choose, while
others suggested that the Commission
automatically approve the verification
processes for providers that have lowincome programs that are not provided
with government assistance and instead
subsidized by the provider, as those
providers already have strong incentives
to ensure that only qualified customers
take advantage of those programs. Other
commenters proposed that local
governments may act as the alternative
verification process for providers. The
Navajo Nation Telecommunications
Regulatory Commission suggested that
the Commission should work with
providers who have worked in Indian
Country to get their input as to
verification, given the challenge that
Lifeline has in verifying consumers in
Indian Country. The Commission also
received comments that any alternative
verification process should be allowed
to have different household eligibility
definitions, but the Commission finds
that it cannot expand eligibility beyond
what the Consolidated Appropriations
Act authorizes. The Commission notes,
however, that under section 904(a)(6)(E)
of the CAA, a broadband provider’s
eligibility criteria for their existing lowincome or COVID–19 program may
provide eligibility bases other than
those explicitly listed in sections
904(a)(6)(A)–(D) of the CAA.
59. Regardless of how a provider
seeks or receives authorization to
participate in the EBB Program (as an
ETC, as a non-ETC with expedited
approval, or as a non-ETC with
automatic approval), a provider must
submit and receive WCB approval of its
alternative verification process prior to
using such a process to enroll
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consumers in the EBB Program. The
Public Notice, DA 21–6, proposes that
the Commission delegates to the WCB
authority to review and approve (or
deny) alternative verification processes,
and the Commission adopts this
proposal. The Commission directs the
WCB to develop a process for
submitting proposed alternative
verification processes and to review and
approve or reject such submissions
within the seven days required by the
CAA. For ETCs, the Commission directs
such providers to submit to the WCB
requests for approval describing their
alternative verification process after
submitting their notice of election to
USAC. The ETC’s request for approval
of its alternative verification process
must still go through the approval
process required by section 904(b)(2)(B)
of the CAA and be approved by the
WCB before the ETC can begin
providing EBB Program service. For
providers seeking a non-ETC approval
from the WCB, the Commission directed
such providers to submit requests for
approval describing their alternative
verification process along with their
application to participate in the EBB
Program, where possible. Although the
provider application to participate may
be granted automatically if the provider
qualifies for such a grant, the provider’s
request for approval of its alternative
verification process must still go
through the approval process required
by section 904(b)(2)(B) of the CAA and
be approved by the WCB before the
provider can begin providing EBB
Program service.
60. The Commission also agrees with
commenters that non-ETCs that are
automatically approved as a
participating provider based on having
an established low-income or COVID–19
program as of April 1, 2020 pursuant to
section 904(d)(2)(B) of the CAA should
also have the alternative verification
processes for those programs
automatically approved. The CAA not
only provides an automatic approval for
such providers but also deems as
eligible for the EBB Program households
with at least one member that meets the
eligibility criteria for a participating
provider’s existing low-income or
COVID–19 program. The Commission
finds Congress’ heavy reliance on these
existing aid programs instructive. The
Commission is persuaded that such
providers have strong incentives to
ensure that only qualified customers
take advantage of a provider’s own lowincome or COVID–19 program, as these
programs are currently subsidized by
the provider. Any such automatically
approved provider must still submit a
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description of their alternative
verification process to the WCB.
61. The Public Notice, DA 21–6,
proposed to allow alternative
verification methods that are at least as
stringent as methods used by the
National Verifier, and the Commission
received comment agreeing with this
proposal. To be at least as stringent as
the National Verifier, information
collected by participating providers in
the alternative verification process
should at least include the applicant’s:
(1) Full name, (2) phone number, (3)
date of birth, (4) email address, (5) home
and mailing addresses, (6) name and
date of birth of the benefit qualifying
person if different than applicant, (7)
basis for inclusion in program (e.g.,
SNAP, SSI, Medicaid, school lunch, Pell
Grant, income, provider’s existing
program, etc.) and documentation
supporting verification of eligibility,
and (8) certifications from the
household that the information
included in the application is true. The
provider must describe the processes it
(or a third-party) uses to verify the
requested preceding information,
including the applicant’s identity and
eligibility, and as required by the CAA,
the provider must explain why the
provider’s alternative process will be
sufficient to avoid waste, fraud, and
abuse. For example, Comcast requires
consumers to submit an application to
obtain proof of identification and
establish eligibility for its internet
Essentials program, which is open to
individuals in a high poverty area or
through participation in a government
assistance program. Comcast crossreferences information from the
application against internal databases
populated with publicly available data
from government sources to confirm
participation in National School Lunch
Program, residence at a public housing
address, or residence in high poverty
area, and if eligibility cannot be verified
through internal databases or based on
participation in a different government
program, Comcast requires
documentation of proof of participation
and the documentation is reviewed by
a vendor. The provider must also
explain how it trains its employees and
agents to prevent ineligible enrollments,
including enrollments based on
fabricated documents. If the alternative
verification process fails to include any
of the preceding information in the
document, the provider should explain
why it thinks such information is not
necessary to prevent waste, fraud, and
abuse. If a provider without an
established low-income program seeks
approval of an alternative verification
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process, it must explain why it proposes
to use an alternative verification process
instead of the National Verifier
eligibility determinations. The
Commission declines to issue a model
alternative verification process, and the
Commission further declines to approve
any of the other alternative verification
processes submitted by commenters.
62. The Public Notice, DA 21–6, also
sought comment on documentation and
records providers should be required to
keep complying with audit
requirements. Commenters suggested
that the providers should at least collect
and retain documentation of the
applicant’s identity and eligibility
criteria. The Commission requires that
providers keep all documentation
provided to them from the applicant
used to make eligibility determinations,
for as long as the applicant receives the
Emergency Broadband Benefit, and also
for no less than the six full calendar
years following the termination of the
EBB Program. For example, if a
subscriber enrolls in the EBB Program
through participation in the school
breakfast or lunch program or the Pell
Grant, retained documentation should
include the name of the school and
school year for which the subscriber has
claimed eligibility. This requirement is
similar to the document retention
requirement used in the Lifeline
program but is long enough to cover the
statute of limitations under the False
Claims Act laws for Federal wire fraud
and ensures that documentation is
available to confirm program
compliance. Commenters also agree
with the proposal in the Public Notice,
DA 21–6, that providers identify the
alternative verification process used
when enrolling a household in the
NLAD, and the Commission adopts that
proposal. The Commission also directs
USAC to conduct periodic program
integrity reviews to ensure that
subscribers enrolled through a
provider’s alternative verification
process are eligible for the emergency
broadband benefit.
63. School-Based Eligibility
Verification. The CAA also allows a
participating provider to rely on a
school to verify eligibility under the free
and reduced price school lunch or
school breakfast program. The Public
Notice, DA 21–6, proposed that a
provider identify the school it relied on
when enrolling a household in NLAD,
and commenters agreed. The
Commission also sought comment on
what other information a participating
provider should be required to submit
or maintain. Commenters were
concerned about the ability of schools to
provide information about households
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and individuals enrolled in the EBB
Program without violating data privacy
and confidentiality laws. The
Commission also received a comment
suggesting that the Commission create a
standard protective order or consent
form that providers can use. One
commenter was also concerned that
there may be significant administrative
burdens and staffing requirements
placed on schools if they are required to
verify students, particularly if schools
have a large number of students that
qualify. One commenter estimated that
it could take a school district 192 hours
a month to process income verification
requests from service providers. The
Commission shares those concerns and
was sympathetic to the burdens this
method could impose on schools,
especially during the pandemic when so
many school administrators and
teachers are struggling with the
challenges of safe, in-person education,
supporting students in need, and
distance learning. The Commission
concludes that, to comply with the
requirements of the CAA, for a
participating provider to rely on
information provided by a school when
enrolling a household in the EBB
Program, the participating provider
must certify in NLAD that it relied on
information provided by a school for
eligibility verification and that it retains
documentation indicating: (1) The
school providing the information, (2)
the program(s) that the school
participates in, (3) the household that
qualifies (and qualifying student(s)), (4)
and the program(s) the household
participates in. The Commission
believes this permits access to the EBB
Program for student households through
the school and also minimizes the
burden on the school, especially in light
of the relevant privacy and consent
requirements. At the same time,
households with students can also
verify eligibility for and enroll in the
EBB Program without relying upon
schools, and will be able to use on any
of the qualifying criteria for eligible
households set forth in the CAA. And
while the Commission declines to create
a standard protective order or consent
form, it recognized that it may be a
beneficial tool for consumers and
providers, and delegate to the WCB the
authority to create such a form if it is
needed for the National Verifier’s
processes.
64. Covered Services and Devices. The
COVID–19 pandemic continues to
challenge Americans’ access to and
reliance on broadband connections as
households try to adapt and ensure that
they have the tools to succeed in their
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everyday tasks, including telework,
telehealth, telemedicine, and virtual
learning. The CAA permits, in the EBB
Program, eligible households to receive
a discount off the cost of broadband
service and certain connected devices,
and participating providers can receive
a reimbursement for such discounts
during the emergency period.
65. Services. In describing the services
eligible for EBB Program support, the
CAA defines ‘‘internet service offering’’
as a broadband internet access service
provided to a household, and defines
‘‘broadband internet access service’’
with the meaning given to that term in
§ 8.1(b) of the Commission’s rules. The
Consolidated Appropriations Act
further requires that an internet service
offering must have a ‘‘standard rate’’ in
order to receive the emergency
broadband benefit, and that standard
rate equals the ‘‘the monthly retail rate
for the applicable tier of broadband
internet access service as of December 1,
2020, excluding any taxes or other
governmental fees.’’ The Commission
interprets this requirement to mean that
an internet service offering eligible for
EBB Program support must have a retail
rate that was on offer as of December 1,
2020 and that, but for the application of
the EBB Program discount, would have
been charged to the customer on a
monthly basis. The Commission
interprets the CAA’s reference to a
‘‘monthly retail rate’’ to exclude
broadband service products that are
priced based primarily on the data
allowance of the product (for example,
a purchase 1 GB of data for $5.00) and
are sold separate from a monthly
recurring service plan). This
requirement also helps to focus limited
funding toward more robust broadband
service offerings to maximize the EBB
Program’s benefits for enrolled
households. Additionally, the
Commission clarifies that the CAA’s
application of the emergency broadband
benefit as a discount off of the monthly
retail rate charged to the subscriber
means that service plans that are already
offered with no fee to the end user—for
example, as a result of Lifeline program
support or other benefit programs—are
not eligible for additional or duplicative
support from the EBB Program. At the
same time, the CAA does permit plans
where the end result is no fee being
assessed on the household after the
application of the monthly benefit.
66. Some parties asked that the
Commission require participating
providers to make the emergency
broadband benefit available on all of
their service offerings. On balance, the
Commission believes that dictating the
required offerings in a temporary
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program will discourage participation
and result in less consumer choice than
would otherwise be available if it
provided participating providers with
more flexibility. However, the
Commission notes that participating
providers may apply the emergency
broadband benefit to any of their
eligible offerings, including promotional
offerings that were available as of
December 1, 2020. Specifically,
pursuant to the CAA, participating
providers are required to make available
to eligible households a monthly
discount off the standard rate for an
internet service offering and associated
equipment, up to $50.00 per month. For
households residing on Tribal lands, the
monthly discount may be up to $75.00
per month. Participating providers will
receive reimbursement from the EBB
Program for the discounts provided.
67. The Commission provides further
clarity on the internet service offerings
and associated equipment eligible for
reimbursement. Internet service offering
is defined as ‘‘broadband internet access
service provided by such provider to a
household, offered in the same manner,
and on the same terms, as described in
any of such provider’s offerings for
broadband internet access service to
such household, as on December 1,
2020.’’ Accordingly, providers who
participate in the EBB Program are only
eligible to receive reimbursement for
offerings that were available on and
include the same terms as those
available as of December 1, 2020. The
majority of commenters do not oppose
the service offering date of December 1,
2020, but some commenters explain that
the December 1, 2020 date should not
limit the ability of providers to offer
upgrades on top of such existing service
offerings to consumers. The
Commission agrees and finds that
participating providers may offer free
enhancements of service quality
elements of a discount-eligible internet
service offerings but may not increase
the price charged for that offering. The
Commission believes the December 1,
2020 restriction is best understood as a
method of avoiding arbitrage
opportunities and waste in the EBB
Program by allowing unscrupulous
providers to take advantage of the
increased subsidy available. By referring
to offerings that were available prior to
the enactment of the law, the CAA
prevents participating providers from
increasing prices above the usual market
rate for their services for the purpose of
claiming the maximum reimbursement
amount. Interpreting that restriction to
also restrict the ability of participating
providers to offer free upgrades to the
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quality of the broadband services
provided to eligible households,
however, such as speed, data caps, and
other non-price elements, would be
contrary to the law’s purpose of
supporting robust modern broadband
service during an unprecedented
pandemic. The Commission therefore
permits provider offerings that were
available on and include the same terms
as those available as of December 1,
2020 to include free enhancements in
quality with respect to such non-price
elements.
68. Minimum Service Standards. The
Commission declines to apply
minimum service standards to covered
services for the EBB Program. The
Commission finds that qualifying
internet service offerings must include a
broadband connection (as defined in
section 904(a)(9) of the CAA)—fixed or
mobile—that permits households to rely
on these connections for the purposes
essential to participating in society
during the pandemic, such as telework,
remote learning, and telehealth. A
majority of commenters supported this
approach, explaining that broadband
speeds should be sufficient for telework
and distance learning, and discounteligible internet service offerings should
feature speeds comparable to those
offered to market-rate customers. The
Commission also recognizes that
Congress did not limit the discount to
lower-cost broadband plans. Consumers
purchasing discounted services under
the EBB Program qualify for the same
protections as those purchasing services
at standard rates. Thus, providers that
offer discounted broadband services
pursuant to the EBB Program rules,
either on a standalone or bundled basis,
must comply with the same consumerprotection requirements that apply to
the corresponding services that they
offered on or before December 1, 2020.
Thus, providers must disclose accurate
information regarding the performance
characteristics, commercial terms, and
other features of their discounted
broadband services to enable consumers
to make informed choices regarding the
purchase and use of such services.
69. Some commenters also suggested
that participating providers should offer
services that meet the Commission’s
definition of broadband at 25/3 Mbps or
encourage the Commission to require
high-capacity, affordable broadband
service. Given the emergency nature of
the EBB Program and the vital need to
maximize consumer choice and benefits
in a short timeframe, the Commission
was not persuaded by such arguments.
By administering the program within
the definition of ‘‘internet service
offering,’’ and permitting non-ETCs to
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participate, the Commission obviates
the need for lengthy service obligations
and the risk of slow speeds and
maintain consumer choice—allowing
consumers to select offerings that work
best for their household—as well as
permit participating providers to serve
eligible households as quickly as
possible during the emergency period.
The Commission further declines to
apply the Lifeline program’s minimum
service standards to covered services for
the EBB Program. The Commission
recognizes that some commenters
encouraged it to use Lifeline’s minimum
service standards or the Lifeline
program itself as a starting point.
Indeed, the Commission understands
that low-income consumers must have
access to reliable broadband
connections vital for basic education,
health care, remote work, disability
access and public safety, but the CAA
does not indicate Congressional intent
that the Commission applies Lifeline’s
minimum service standards for the EBB
Program. The Commission is supported
in this decision by the measures
adopted that clarify that participation in
the EBB Program does not preclude the
same household from participating in
the Lifeline program or other aid
programs offered at the state and local
level as long as participants meet the
requirements for such programs. Even
though the EBB Program is an
emergency, temporary program, it will
operate concurrently with Universal
Service Fund programs and other
existing programs at the state and local
levels so eligible consumers can choose
a broadband connection that meets their
connectivity needs.
70. The Commission, however,
anticipates that providers that elect to
participate in the EBB Program that are
already designated as ETCs through
their participation in other Universal
Service Fund programs, particularly the
Lifeline program, will draw from that
experience and offer similar or
upgraded broadband services. In the
EBB Program, the Commission
anticipates that existing ETCs will
continue to offer quality and innovative
services, and encouraged other
broadband providers (non-ETCs) to offer
service standards that promote robust
broadband access to vital services.
71. Bundled Service Offerings. The
Commission also recognizes that
participating providers in the EBB
Program may offer qualifying broadband
service combined with other services,
otherwise known as bundled service
offerings (e.g., voice, data, texting,
associated equipment). While the CAA
does not explicitly direct the
Commission regarding how to handle
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bundled broadband service offerings,
the Commission finds if such bundled
service options were offered ‘‘in the
same manner, and on the same terms’’
on December 1, 2020, participating
providers should be able to apply the
monthly discount of up to $50 per
month, or up to $75 for Tribal lands, to
the entire bundled service. The
Commission draws this conclusion from
record support that viewed such
offerings as enhancing flexibility
between participating providers and
consumers. Also, the Commission draws
from its experience with the Lifeline
program that participating providers in
the EBB Program, including ETCs that
are already adept at applying such a
discount in the Lifeline program to
bundled services, offer bundled service
offerings to address consumer demands
outside of any Commission regulation.
In contrast to the record support for
permitting EBB Program reimbursement
for broadband bundled services that
include voice and/or text messaging,
there was not similar support for
permitting reimbursement for the full
price of broadband bundled services
that include video service. The
Commission finds that permitting EBB
Program reimbursement for the full
price of a bundle that includes video
service is not contemplated by the
statute and was not necessary to ensure
that consumers in the EBB Program
have robust service choices, and the
Commission therefore does not permit
support for such bundles with video
service.
72. The Commission finds that the
CAA’s requirement that the service
offerings be offered ‘‘in the same
manner’’ as they were on December 1,
2020, authorized the Commission to
support both standalone broadband
service offerings and broadband service
offerings bundled with voice, text
messaging, and/or associated
equipment. For many fixed and mobile
internet service offerings, it is common
to offer broadband service as part of a
bundle without separating out the price
of the broadband component and its
associated equipment. By permitting
participating providers to offer
broadband in those same bundles in the
EBB Program, the Commission permits
providers to make available internet
service offerings ‘‘in the same manner’’
as they were on December 1, 2020.
73. Associated Equipment and Other
Customer Premises Equipment. The
CAA requires participating providers to
make available to eligible households a
monthly discount off the rate for an
internet service offering and associated
equipment, up to $50.00 per month, and
on Tribal lands, the monthly discount
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may be up to $75 per month. In the
Public Notice, DA 21–6, the WCB also
sought comment on how to define
associated equipment and whether that
undefined term should include, for
example, the monthly rental costs for
modems and/or routers that are offered
as part and parcel of an internet service
offering. The record overwhelmingly
supported including modems, routers,
and hotspot devices and antennas, if
offered as monthly rental costs or part
and parcel of an internet service offering
as eligible for the EBB Program monthly
discount as of December 1, 2020.
Combined with record support and
recognizing that the CAA does not
specifically define or identify any
associated equipment as it relates to any
particular broadband service, the
Commission finds that associated
equipment includes equipment
necessary for the transmission functions
of internet service offerings supported
through the EBB Program which
households may choose to receive.
Commenters support the Commission’s
conclusion by encouraging the
Commission to define the scope of
eligible associated equipment ‘‘in a
technology-neutral manner’’ to
accommodate household choice and the
different types of broadband networks.
The Commission agrees that a
technology-neutral approach is
appropriate as long as it meets the
requirements of the CAA. However, the
Commission declines to include Wi-Fi
extenders or repeaters as associated
equipment or any other customer
premises equipment that enhances or
extends a broadband signal beyond a
participating provider’s internet service
offering. First, any associated equipment
that enhances or extends a broadband
signal from its existing coverage area as
outlined in the participating provider’s
internet service offering would not be
offered ‘‘in the same manner, and on the
same terms’’ as defined in the CAA.
Second, these types of devices are
typically sold as add-on options to a
broadband connection or sold separately
through major manufacturers and are
therefore not offered as part and parcel
of an internet service offering.
Accordingly, Congress does not clearly
allow the Commission to include these
devices, and if it had intended to do so,
it would have included such devices in
its definition of ‘‘connected devices.’’
The Commission also notes that the
‘‘associated equipment’’ discussed in
this paragraph must be billed monthly
on the same terms and same manner as
it would have been in an offering
available on December 1, 2020. The
price for such associated equipment
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cannot be frontloaded. For example, if a
provider has a $30 monthly service
offering and would have offered a
modem for a monthly rental of $5 for a
total monthly fee of $35, the provider
cannot front-load the monthly rental fee
and charge $20 for four months of a
modem rental in the first month in order
to maximize reimbursement up to the
$50 monthly discount allowed.
74. Connected Devices. The CAA
clearly and narrowly defines a
‘‘connected device’’ eligible for a
separate, one-time reimbursement as ‘‘a
laptop or desktop computer or tablet.’’
In the Public Notice, DA 21–6, the
Commission sought comment on
whether the Commission should
provide any further clarity regarding
connected devices that are eligible for
reimbursement. The CAA does not leave
room for a broad interpretation of
‘‘connected device.’’ Congress explicitly
declined to include mobile phones in its
definition, and thus the Commission
finds that the definition of a tablet does
not include devices that can
independently make cellular calls such
as large phones or phablets.
75. Various commenters urge the
Commission to fund additional end-user
devices outside the scope of the CAA,
including mobile phones (i.e.,
smartphones) and portable Wi-Fi hot
spots arguing that these devices are
capable of supporting video
conferencing platforms and other
software, and limiting such devices
could ‘‘impose more financial burdens
to a student.’’ CTIA, for example,
explained that ‘‘mobile devices from the
4G era or later should qualify as ‘tablets’
under the definition’’ while ‘‘mobile
phones, including feature phones and
smartphones from the 3G era or earlier,
should not qualify as ‘‘tablets.’’ TMobile explained ‘‘that certain mobile
phones that provide similar
functionality as a basic tablet’’ should
be considered a ‘‘connected device.’’
TDI et al. proposed that devices that
enable Video Relay Service or internet
Protocol Captioned Telephone Service
should be eligible for reimbursement.
Conversely, other commenters
supported the exclusion of mobile
phones, with one commenter opposing
the inclusion of tablets, as a connected
device. Common Sense Media, in its
comments, excludes cell phones from
its research-based list of requirements
for a robust learning experience,
explaining that ‘‘students and teachers
need laptops or tablets capable of
meeting the distance learning
requirements of their curriculum.’’ The
record also indicated that, while tablets
are capable of supporting video
conferencing platforms and other
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software, commenters expressed caution
that tablets may require more specific
service standards or a broad
interpretation. Taking into
consideration the record, and the
narrow and specific language in the
CAA’s definition of a connected device,
the Commission is unable to expand the
definition of connected device and
concluded that the EBB Program will
provide reimbursement for any
connected device, defined as ‘‘a laptop
or desktop computer or tablet.’’
76. The Commission next clarifies
that participating providers may only
receive a single reimbursement of up to
$100 for one connected device per
household, and the eligible household
must contribute towards the cost of the
connected device at least $10 but no
more than $50. The Public Notice, DA
21–6, sought comment on whether
eligible households should be able to
receive more than one connected device
through the EBB Program, for example,
if the household changes providers. The
Consolidated Appropriations Act
provides that a participating provider
may receive reimbursement for no more
than one connected device per eligible
household, but it is silent as to whether
households may receive the connected
device reimbursement benefit from
more than one provider. Although some
commenters suggested that eligible
households should receive more than
one connected device, the Commission
finds no legal basis to do so. In order to
preserve limited funds, ensure that
benefits reach the greatest number of
eligible households, and avoid wasteful
spending, the Commission finds that
households are limited to a single
connected device during the EBB
Program for which a provider seeks
reimbursement. The Commission takes
this position in order to maintain the
integrity of the EBB Program—ensuring
that reimbursements, and the
subsequent disbursements, for a
connected device are only processed for
valid claims that comply with the CAA.
77. Minimum System Requirements
for Connected Devices. In the Public
Notice, DA 21–6, the WCB sought
comment on whether the Commission
should impose minimum system
requirements for connected devices
supported by the EBB Program. The
Commission adopts its proposal that a
connected device supported by the EBB
Program should be expected to support
video conferencing platforms and other
software essential to ensure full
participation in online learning, should
be Wi-Fi enabled, and have video and
camera functions. The record
overwhelmingly supported that, at a
minimum, connected devices must be
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able to support video conferencing and
camera functionality and online
learning software. Recognizing however
that the ongoing COVID–19 pandemic
has compounded challenges for
numerous households to maintain
broadband services, the Commission
finds that setting minimum system
requirements for connected devices
could limit consumer choice and
exacerbate barriers to broadband service
that may have existed prior to COVID–
19. While some commenters suggested
specific standards the Commission
should adopt for connected devices, the
Commission declines to adopt such
standards and instead encourage
participating providers and interested
stakeholders to explore other
opportunities, including partnering with
school districts and state and local
programs that may provide funding or
other avenues for access to end-user
devices and equipment due to the
COVID–19 pandemic. The Commission
also expects that connected devices be
accessible to and usable by people with
disabilities.
78. Benefits for Households on Tribal
Lands. The CAA also provides a
discount up to $75 for internet service
offerings to eligible households on
Tribal Lands. The Commission finds
that it was vital to utilize the EBB
Program in an efficient way to help
provide more households on Tribal
lands with affordable, reliable
connectivity. The Commission adopts
its proposal in the Public Notice, DA
21–6, to use the same definition of
Tribal lands as used in the Lifeline
program, including certain lands near
the Navajo Nation treated as Tribal
lands. The Commission also allows
members of households on Tribal lands
to use their participation in the same
Tribal programs permitted under the
Lifeline program to qualify for the EBB
Program, in addition to other permitted
means of qualifying. The Commission
also adopts its proposal to use the
processes USAC has in place for
identifying the location of a household
residence.
79. Many commenters supported the
Commission’s proposal to use the
Lifeline program’s definition of Tribal
lands as well as existing USAC
processes for verifying eligibility of
households on Tribal lands. The
Commission finds this to be the best and
most efficient approach for households
and participating providers in the EBB
Program because it will continue to help
the Commission quickly address
existing impediments to connectivity on
Tribal lands and allow providers to offer
EBB Program benefits to a wide-range of
households that will, in turn, increase
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the number of subscribers of broadband
internet access service. The Commission
therefore declines to use any other
definitions suggested by commenters
that would expand upon the established
definitions in the Commission Lifeline
rules and would accordingly prevent
USAC from using the existing Lifeline
informational tools to identify whether
an applicant resides on Tribal lands.
80. With respect to other
accommodations to ensure eligible
households on Tribal lands are able to
participate in the EBB Program, some
commenters encouraged a flexible
approach that would use additional
methods other than USAC databases
(i.e., National Verifier, NLAD) to verify
addresses. The Commission disagrees
with such an approach and finds that
USAC’s databases, especially its
mapping tool in the National Verifier,
offered a sufficiently comprehensive
process for identifying residences on
Tribal lands for the EBB Program.
Additionally, USAC provides multiple
other methods for applicants and
providers to submit residential location
data to confirm whether an applicant
resides on Tribal lands. Expanding or
otherwise modifying the USAC systems
to accommodate new methods would
also require additional time. To
facilitate timely and efficient processing
of participating providers and eligible
households on Tribal lands, the
Commission finds the benefits of using
USAC’s existing mapping tool and other
address verification methods far
outweighs commenters’ concerns to this
action and also eliminates timeconsuming or wasteful administrative
processes. The Commission directs
USAC to make available its existing
comprehensive address verification
methods to applicants and providers in
the EBB Program, including providers
using their own alternative verification
process pursuant to the CAA.
81. Budget and Reimbursement—
Emergency Broadband Connectivity
Fund and Reimbursement for the
Emergency Broadband Benefit. The EBB
Program is funded through the $3.2
billion Emergency Broadband
Connectivity Fund in the CAA, and
does not rely on contributions to the
Universal Service Fund. The CAA
further provides that no more than 2%
of the Emergency Broadband
Connectivity Fund (Fund) or $64
million is to be used for the
administration of the EBB Program, and
funding for the EBB Program will
remain available until the Fund is
expended or six months after the end of
the Emergency Period as defined in the
CAA, whichever comes first. The
Commission recognizes that while
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Congress allocated that a portion of the
Fund be used for the administration of
the EBB Program, the primary purpose
of the Fund is to provide support for the
households enrolled in the program. To
that end, the Commission directs USAC,
in coordination with the OMD, to reevaluate no later than three months after
the start of the EBB Program to
determine if there are any of its
administrative funds that can be used to
fund reimbursements for service and
connected device claims. Moreover, the
Commission directs USAC to continue
to regularly report to the OMD its
projected budget for its administration
of the EBB Program. Based on USAC’s
initial estimates provided to the OMD,
USAC’s EBB Program administrative
costs will be under the 2 percent cap,
which includes costs associated with
business process outsourcing, project
management, IT professional fees, and
call center activities. Pursuant to the
terms of the Memorandum of
Understanding between USAC and the
Commission, USAC and the
Commission will not incur
administrative costs beyond the $64
million cap.
82. The emergency nature of the EBB
Program requires a prompt processing of
claims that ensures participating
providers, including those who
currently have no relationship with
USAC, receive reimbursement for valid
claims for services and connected
devices provided to eligible households.
To ensure that there is a mechanism for
disbursing funds to providers that
balances the need to guard against
waste, fraud, and abuse in the EBB
Program with the need to reimburse
valid claims quickly and efficiently, the
Commission adopts the following
requirements for the reimbursement
process.
83. Lifeline Claims System. The
Commission recognizes the importance
of using existing, functional systems
such as the NLAD and the Lifeline
Claims System to ensure that EBB
Program providers can submit timely
reimbursement claims yet are not
claiming support for the same
household. The NLAD plays a vital role
in ensuring that providers can only
claim subscribers enrolled in NLAD on
the first of each month and the
information captured in NLAD serves as
the basis for claims in the Lifeline
Claims System. As with Lifeline, the
Commission requires providers in the
EBB Program to transmit to the NLAD
the required information necessary to
uniquely identify households. To help
maintain the integrity of the EBB
Program and to facilitate efficient
processing of reimbursement claims, the
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Commission adopts the proposal in the
Public Notice, DA 21–6, to use USAC’s
Lifeline Claims System to reimburse
providers for the provision of covered
devices, services and associated
equipment to eligible households. The
Lifeline Claims System is the online
filing system hosted by USAC that
service providers use to submit claims
for reimbursement for service they
provide to Lifeline customers. In the
Lifeline program, providers are required
to submit a reimbursement request
through the Lifeline Claims System
based on the number of subscribers
enrolled in the NLAD on a specific date
each month, called a snapshot date.
Providers are instructed to review the
snapshot report from NLAD for all of the
provider’s households in NLAD as of
that date, validate the households for
which they wish to seek reimbursement,
or indicate a reason for not claiming
reimbursement for other households on
the report, and review, correct, and
certify the requested reimbursement
amount. The Commission employs the
same process for reimbursing providers
in the EBB Program. The Commission
directs USAC to make the Lifeline
Claims System available to EBB Program
providers, once they are approved to
participate in the program, subject to
USAC system access requirements.
84. Commenters generally support the
WCB’s proposal to use the Lifeline
Claims System for managing
reimbursements, stating that the use of
an existing USAC platform will avoid
unnecessary delays that would result
from developing a new reimbursement
platform for use in the EBB Program.
Some noted the importance of issuing
reimbursements quickly, particularly for
smaller providers that may find it
financially difficult to wait months for
reimbursement. The Information
Technology and Innovation Foundation
(ITIF) contends that using the Lifeline
Claims System for managing
reimbursements will ‘‘expedite[ ]
financial recovery by providers to
ensure stability while also leveraging a
tested, already established system with
Lifeline.’’ Other commenters, such as
the National Consumer Law Center and
the United Church of Christ OC, Inc.
(NCLC and UCC) noted that using the
Lifeline Claims System will provide
integrity to the EBB Program by helping
to ensure that the funds are directed to
providers and consumers for eligible
services and connected devices.
85. Uniform snapshot date. The
disbursement of EBB Program claims
will be based on the number of Program
subscribers enrolled with a provider in
the NLAD as of the first of each month.
The first of the month will serve as the
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uniform snapshot date. When
establishing the uniform snapshot date
for Lifeline, the Commission finds that
the practice would (1) reduce the risk
that the EBB Program would reimburse
multiple providers for serving the same
customer in a month; (2) assist with the
adoption of uniform audit procedures;
and (3) aid in the calculation of support
based on the number of subscribers that
a service provider has listed in NLAD.
Commenters also recognized the value
of establishing a uniform snapshot date
for use in the EBB Program. For
example, T-Mobile stated that applying
the uniform snapshot date will simplify
the enrollment and reimbursement
process in the EBB Program as it
currently does for Lifeline. The
Commission agrees that the uniform
snapshot date brings efficiencies to the
reimbursement process by restricting
support to those eligible subscribers that
are enrolled in NLAD on the first of
each month and removing any
uncertainty that would come with a
requirement for providers to claim
subscribers on a pro-rata basis in the
event households receive service for less
than the full month. On the other hand,
employing a method that allows for
partial claims would be cumbersome to
administer and would make it difficult
for USAC to track disbursements from
the Emergency Broadband Connectivity
Fund. The Commission finds it most
efficient to require providers to claim
subscribers that are enrolled in NLAD as
of the first of the month regardless of
how many days in the month the
provider was providing service to the
subscriber.
86. Program-wide use of NLAD for
reimbursements. The Commission also
establishes that NLAD will be used as a
tool for reimbursement calculations and
duplicate checks in all states, territories
and the District of Columbia, regardless
of a state’s NLAD opt-out status for
purposes of the Lifeline Program.
Uniformity in the ways providers
interact with the Lifeline Claims System
and other USAC systems is essential in
ensuring that the EBB Program operates
efficiently, which is a priority given the
emergency and temporary nature of the
Program. Asking USAC to develop and
administer different reimbursement
processes for different states would
delay the implementation of this
emergency program and potentially
burden state administrators. Moreover,
the Commission recognizes the need for
non-ETC providers to quickly become
familiar with the reimbursement process
to ensure that claims are made correctly
and to reduce the need for revisions.
Having multiple reimbursement
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processes would further complicate the
EBB Program and lead to confusion
among providers who are not familiar
with existing Lifeline processes,
particularly in opt-out states. This
uniform approach and program-wide
reliance on the NLAD for the generation
of the snapshot report is important in
facilitating the swift processing of
reimbursement claims.
87. Certification requirements. To
submit their reimbursement claims for
broadband internet access service
provided to eligible households, the
Commission requires participating
providers to review their snapshot
report and validate the eligible
households for which they are
requesting reimbursement. The provider
shall confirm that the reimbursement
amount matches the amount of the
monthly service or connected device for
which the participating provider is
permitted to seek reimbursement and
make any corrections to the amount as
necessary. The Commission also
requires providers to review the
snapshot report and to confirm that
households receiving a fully subsidized
service have used the service during the
relevant period. If a household has not
used their service during the relevant
period, then the provider shall not
submit a reimbursement claim for
service provided to that household until
the service is used and the non-usage is
cured. To add more accountability and
to help ensure that only service that
subscribers are using is funded through
the EBB Program, the Commission
requires that providers certify that their
EBB Program service claims for
reimbursement meet the usage
requirements. To ensure that the
Program is supporting broadband
service that is actually being used, the
Commission will not permit providers
to seek reimbursement for a service
month in which a household did not
meet the usage requirements, even if the
household meets the usage requirements
in subsequent months.
88. Additionally, the Commission
requires providers to make the
certifications, including those set forth
in the CAA when submitting a
reimbursement claim. The CAA requires
that in order to receive reimbursement
from the Emergency Broadband
Connectivity Fund, the providers shall
make several certifications regarding the
accuracy of their claims, compliance
with the requirements of the EBB
Program and various consumer
protection-related provisions.
Specifically, the CAA requires that
providers certify that the amount for
which they are seeking reimbursement
from the Emergency Broadband
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19549
Connectivity Fund is not more than the
standard rate, and that each eligible
household for which the provider is
seeking reimbursement for providing
internet service has not or will not be
charged (1) for that offering if the
standard rate for that offering is less
than or equal to the amount of the EBB
Program benefit for that household; or
(2) more for that offering than the
difference between the standard rate for
that offering and the amount of the EBB
Program benefit for that household. The
provider is also required to certify that
each eligible household for which it is
seeking reimbursement will not be
required to pay an early termination fee,
was not after December 27, 2020, subject
to a mandatory waiting period for the
covered broadband internet service, and
will otherwise be subject to the
provider’s generally applicable terms
and conditions as they are applied to
other customers. Moreover, providers
are required to certify that each
household for which they are seeking a
reimbursement for a connected device
has been charged more than $10 and
less than $50 for the connected device.
Finally, for providers that are claiming
households that they determined to be
eligible to enroll in the EBB Program
through the alternative verification
process, providers must provide a
description of that verification process
and certify that the process was
designed to avoid waste, fraud, and
abuse and has been approved by the
Commission as required by section III(B)
of the RO.
89. The Public Notice, DA 21–6,
proposed that these certifications
accompany each reimbursement claim,
in addition to an annual certification
submitted by participating providers.
Commenters did not object to this
certification, although some asked for
additional certifications while others
requested that the Commission not
require certifications beyond those
listed in the CAA. The Commission
finds that certifications, along with the
possibility of audits, are a vital tool for
managing waste, fraud, and abuse.
While the certifications required by the
CAA address many of the Program
requirements, the Commission finds
that additional certifications are
necessary to ensure compliance with
Commission’s requirements that it finds
essential to help guard against waste,
fraud, and abuse in the EBB Program.
Accordingly, the Commission directs
USAC to make any adjustments
necessary to the Lifeline Claims System
to ensure that providers are prompted to
certify that their reimbursement claims
meet the usage requirements and to
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certify the statements included in
section 904(b)(6) of the CAA. The
Commission further directs USAC, in
coordination with the WCB, to develop
an annual certification for all
participating providers and a process for
its submission. As discussed in the
following, the Commission also adopts
additional certifications to accompany
reimbursement claims for connected
devices distributed through the EBB
Program.
90. As well-established in the record,
the Emergency Broadband Connectivity
Fund has limited funding and the
Commission must make every effort to
ensure that the Commission maximizes
the use of these funds to serve as many
eligible households as possible,
including responsibly leveraging EBB
Program funding with other sources of
support. To that end the Commission
requires participating providers that are
applying both the Lifeline discount and
the Emergency Broadband Benefit to a
household’s supported broadband
service to apply the full Lifeline
discount first before calculating the
reimbursement amount claimed under
the EBB Program. This approach
responsibly stewards limited EBB
Program funding where Lifeline support
is available and is consistent with the
requirements of § 54.403(b) of the
Commission’s rules regarding the
application of the Lifeline support
amount.
91. Reimbursement for Connected
Devices. EBB Program providers can
also seek up to $100 reimbursement for
a connected device provided to a
household satisfying the requirements
set forth in the RO and as long as the
household has been charged more than
$10 but less than $50 for the device. To
facilitate the efficient review and
processing of reimbursement claims for
connected devices, the Commission
directs USAC to modify the Lifeline
Claims System to manage these claims.
Because the Consolidated
Appropriations Act limits the connected
device reimbursement to providers who
are providing the EBB Program benefit
to the household, the Commission
requires that claims for connected
devices must be made concurrent with
or after the provider’s first
reimbursement claim for service for that
household. To ensure that a household
does not receive more than one
connected device for which a provider
has received reimbursement from the
EBB Program, providers are also
required to confirm in NLAD that no
reimbursement claim for a connected
device has been made for that
household.
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92. Some commenters agreed with the
proposal in the Public Notice, DA 21–
6, to require providers to certify that the
household receiving the device is an
EBB Program beneficiary and that the
household has been charged the
required co-pay for the device. To help
make the Emergency Broadband
Connectivity Fund last as long as
possible, Public Knowledge urged the
Commission to require providers to
prove the retail value of the connected
device to ensure that the provider is not
receiving a reimbursement that exceeds
the value of the device. The
Commission acknowledges the need to
balance speedy and efficient processing
of reimbursement claims with the need
to protect the integrity of the EBB
Program by ensuring the
reimbursements are only processed for
valid claims that comply with the
requirements of this Order. To that end,
to ensure the quick reimbursement of
valid claims for connected devices,
USAC will not be required collect and
review documentation before processing
a reimbursement claim. Instead, the
Commission requires providers, under
penalty of perjury, to certify that the
connected device meets the
Commission’s requirements, that the
reimbursement claim amount reflects
the market value of the device, that the
household has been charged a
compliant co-pay amount, and that the
connected device has been delivered to
the household. Providers are instructed
to retain any materials that document
compliance with these requirements,
including the device type (e.g., laptop,
tablet, mobile hotspot, modem, gateway,
router, antenna, receiver, or satellite
dish) and device make and model. The
Commission finds that requiring
certifications under penalty of perjury
along with the possibility of an audit
will help to encourage compliance with
EBB Program requirements and reduce
the incidence of improper payments.
93. Timing of Reimbursement Claims.
The EBB Program is a limited duration
program with limited funds, and it is
important that the Commission is able
to project accurately when those funds
will run out. To this end, USAC must
have actual reimbursement claims
information from providers as soon as
possible after each service month. USAC
will use this claims information for
reporting the disbursement information
to the public and for creating a forecast
for the projected final month of the EBB
Program, both of which are discussed in
the following. To ensure that this claims
information is submitted to USAC by
providers in a timely manner so that it
can be used to administer the program
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efficiently, and so providers can receive
timely reimbursement for the discount
they provide to households, the
Commission established a limited time
period during which providers can
submit reimbursement claims. The
process for submitting a reimbursement
claim will largely track the process in
the Lifeline program, where a snapshot
report of a provider’s enrolled
subscribers as of the first of the month
is sent to the provider. Providers will
then have until the 15th of each month,
or the following business day in the
event the 15th falls on a weekend or
holiday, in which to submit to USAC
their reimbursement claims for both
service and connected device support
for households captured on the
snapshot report. For those providers
seeking to have their reimbursement
claim processed quicker, they must
review and certify their reimbursement
claims sooner, as established by USAC.
94. The record was clear that there is
universal support for accurate and
timely reporting of reimbursement
information so that providers and the
public can make informed decisions
regarding their participation in the EBB
Program. Providers can help the
Commission ensure that USAC is
collecting nearly real-time claims
information by submitting their accurate
reimbursement claims as soon as
possible and within that 15-day period.
Moreover, given the importance of the
projection of the program’s end date as
it relates to the smooth administration
of the end of the EBB Program, the
Commission trusts that providers will
do their part in ensuring that USAC has
reimbursement claims information as
soon as possible. The Commission also
believes providers will be motivated to
receive reimbursements as soon as
possible. To that end, to ensure the
timely filing of reimbursement claims so
that USAC’s projections are reliable and
based on current activity in the EBB
Program, the Commission finds it
necessary to restrict the processing of
reimbursement claims to those
submitted by the deadline set for each
month—either the 15th of that month or
the following business day in the event
that the 15th falls on a holiday or
weekend. Reimbursement claims
submitted after that deadline will not be
processed. Therefore, providers are
strongly encouraged to submit their
claims as soon as possible.
95. To further support the
Commission effort to track
disbursements and to provide a
projection for the depletion of the Fund
that is based on the most accurate and
up-to-date household and disbursement
information, the Commission is
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prohibiting providers from revising
previously submitted claims associated
with the provision of EBB Program
services and connected devices. The
Commission expects that this limitation
will encourage providers to be
especially cautious when reviewing
reimbursement claims prior to
submission to ensure accuracy.
Moreover, preventing changes to prior
disbursements will give the
Commission, USAC, providers and
households confidence in the reported
disbursement amounts. Providers are
required to certify to the accuracy of
reimbursement claims and that the
United States, the Commission, and
USAC retain the right to pursue
recoveries as well as take enforcement
action for any claims improperly
disbursed from the Fund. Additionally,
to help support USAC’s efforts to project
the end of the EBB Program, the
Commission sought participating
providers’ cooperation and request that
they transmit to NLAD the amount they
intend to claim for service and
connected device support for each
household they enroll in NLAD. While
the reimbursement amount processed
for the provider will be based on the
amount contained in the provider’s
certified reimbursement claim
submitted through the Lifeline Claims
System, the information transmitted to
NLAD will, in part, be relied upon for
calculating the EBB Program’s projected
end date. The Commission encourages
providers to transmit a good faith
estimate of the monthly support amount
for service and any device provided to
the household through the EBB Program
within seven days of enrolling the
household in NLAD.
96. USAC training and support.
Finally, the Commission recognizes that
the EBB Program will attract a variety of
broadband providers, including those
with no prior experience with USAC
and its systems. To provide guidance on
the reimbursement claims process, the
Commission directs USAC, subject to
the oversight of the OMD and the WCB,
to conduct extensive training, including
webinars, to distribute instructions, and
otherwise to provide support to
broadband providers considering
participation in the EBB Program. The
Commission further directs USAC to
ensure that interested providers are
given access, subject to system and
USAC requirements, to the USAC
systems essential for the management
and processing of reimbursement
claims.
97. Payment Administration. While
USAC will be administering the EBB
Program, as permitted under section
904(i)(5) of the CAA, and pursuant to
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the terms of the MOU between the
Commission and USAC that authorizes
the use of USAC for the administration
of the EBB Program, the Commission
must authorize the payments from the
Emergency Broadband Connectivity
Fund in the United States Treasury to
providers who have submitted valid
claims for reimbursement. In the RO,
the Commission describes steps to
remove impediments to participation in
the EBB Program for those providers
that would otherwise be prohibited from
receiving reimbursements due to unpaid
debts to the Commission or which the
Commission has referred to the United
States Department of the Treasury
(Treasury). The Commission also
provides guidance on the information
providers must be prepared to provide
to ensure timely payment of
reimbursement claims from the Fund.
98. Red Light Rule. The Commission
finds that there is good cause to suspend
the Commission’s red light rule for the
EBB Program and that doing so will
serve the public interest. To implement
the requirements of the Debt Collection
Improvement Act of 1996, the
Commission establishes what is
commonly referred to as the ‘‘red light
rule,’’ although the red light rule itself
is not a statutory requirement and
therefore can be waived by the
Commission. Under the red light rule,
the Commission will not take action on
applications or other requests by an
entity that is finds to owe debts to the
Commission until full payment or
resolution of that debt.
99. Generally, the Commission’s rules
may be waived for good cause shown.
The Commission may exercise its
discretion to waive a rule where the
particular facts make strict compliance
inconsistent with the public interest. In
addition, the Commission may take into
account considerations of hardship,
equity, or more effective
implementation of overall policy on an
overall basis.
100. The Commission finds that the
temporary nature of this emergency
program and the enduring disruption
caused by the COVID–19 pandemic
justify a waiver of the red light rule. In
order to encourage provider
participation and facilitate consumer
choice in the EBB Program, the
Commission finds that it is in the public
interest and that good cause exists to
waive the red light rule with respect to
providers submitting otherwise valid
claims for reimbursement in the EBB
Program. Allowing more providers to
participate in the EBB Program, even
those who may be in red light status, is
a crucial step in expanding the
broadband service options available to
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19551
low-income consumers through the EBB
Program. The Commission issues this
waiver to ensure that otherwise eligible
broadband providers are not
discouraged from participating in the
EBB Program for fear that a debt owed
to the Commission would prevent them
from receiving reimbursement. To be
clear, this waiver is limited only to
participation of providers in the EBB
Program and does not affect the
Commission’s right or obligation to
collect any debt owed by an applicant
by any other means available to the
Commission, including by referral to the
Treasury for collection.
101. Treasury Offset. The Treasury
has a number of collection tools,
including its offset program, known as
the Treasury Offset Program (TOP),
pursuant to which it collects delinquent
debts owed to Federal agencies and
states by individuals and entities, by
offsetting those debts against Federal
monies owed to the debtors. EBB
Program providers that owe past-due
debt to a Federal agency or a state may
have all or part of their EBB Program
payments offset by Treasury to satisfy
such debt. Prior to referral of its debt to
Treasury, a provider is notified of the
debt owed, including repayment
instructions. If the referred debt of an
EBB Program participating provider
remains outstanding at the time of a
payment from the EBB Program to that
provider, the provider will be notified
by Treasury that some or all of its EBB
Program payment has been offset to
satisfy an outstanding Federal or state
debt. EBB Program providers are
required to pass the EBB Program
discount to the customer for the service
or connected device claimed even if
Treasury offsets the payment for such
service or device against debt owed by
the provider. EBB Program providers
that owe past due Federal or state debts
are encouraged to resolve such debts
and in doing so, consult the TOP
Frequently Asked Questions for the
Public, available at https://
fiscal.treasury.gov/top/faqs-for-thepublic.html, for delinquent debt that has
been referred to Treasury, and for
delinquent debt that the Commission
has not yet referred to Treasury, consult
https:/www.fcc.gov/general/red-lightfrequently-asked-questions.
102. Additional Requirements. To be
eligible to receive disbursements from
the Emergency Broadband Connectivity
Fund, providers must obtain and report
an FCC Registration Number (FRN).
Persons or entities doing business with
the Commission are required to obtain
an FRN, a unique identifier that is
obtained through the Commission
Registration System (CORES).
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Participating providers are directed to
obtain an FRN if they do not already
have one and report it as directed by
USAC or the Commission.
103. All entities that intend to provide
service through the EBB Program must
also register with the System for Award
Management (SAM). SAM is a webbased, government-wide application
that collects, validates, stores, and
disseminates business information
about the Federal Government’s
partners in support of Federal awards,
grants, and electronic payment
processes. Registration in the SAM
provides the Commission with an
authoritative source for information
necessary to provide funding to
applicants and to ensure accurate
reporting pursuant to the Federal
Funding Accountability and
Transparency Act of 2006, as amended
by the Digital Accountability and
Transparency Act of 2014 (collectively
the Transparency Act or FFATA/DATA
Act). Only those providers registered in
SAM will be able to receive
reimbursement from the Emergency
Broadband Connectivity Fund. EBB
Program providers that are already
registered with SAM do not need to reregister with that system in order to
receive payment from the Emergency
Broadband Connectivity Fund.
Broadband providers not yet registered
with SAM may still elect to participate
in the EBB Program, enroll eligible
customers and receive program
commitments. Active SAM registration,
however, is required for an eligible
provider to receive a payment from the
EBB Program. Furthermore,
participating providers may be subject
to reporting requirements. To the extent
that participating providers subaward
the payments they receive from the EBB
Program, as defined by FFATA/DATA
Act regulations, providers may be
required to submit data on those
subawards.
104. Do Not Pay. Pursuant to the
requirements of the Payment Integrity
Information Act of 2019 (PIIA), the
Commission is required to ensure that a
thorough review of available databases
with relevant information on eligibility
occurs to determine program or award
eligibility and prevent improper
payments before the release of any
Federal funds. To meet this
requirement, the Commission and
USAC will make full use of the Do Not
Pay system administered by the
Treasury’s Bureau of the Fiscal Service.
If a check of the Do Not Pay system
results in a finding that an EBB Program
provider should not be paid, the
Commission will withhold issuing
commitments and payments. USAC may
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work with the EBB Program provider to
give it an opportunity to resolve its
listing in the Do Not Pay system if the
provider can produce evidence that its
listing in the Do Not Pay system should
be removed. However, the EBB Program
provider will be responsible for working
with the relevant agency to correct its
information before payment can be
made by the Commission.
105. Tracking and Reporting of
Available Funding. While the
Commission considers carefully many
of the details of the implementation of
the EBB Program, the amount of
appropriated funds is finite and it must
also prepare for a transition when funds
are exhausted. The CAA provides that
the EBB Program will conclude upon
the earlier of six months after the end
of the emergency period or when the
amount in the Fund is exhausted. At the
conclusion of the EBB Program when
the discount is eliminated, participating
households will be subject to their
provider’s ‘‘generally applicable terms
and conditions.’’ The Commission
agrees with commenters that the
Emergency Broadband Connectivity
Fund may well be depleted before the
end of the emergency period, which
means that the benefit on which
households have been relying to afford
broadband service may disappear while
the public health emergency is ongoing.
To prepare providers and households
for the end of the program and the
benefit, commenters stressed the
importance of transparency regarding
the financial state of the EBB Program
and have urged the Commission to track
and report disbursements from the
program at frequent intervals so that the
public can anticipate the end of the
program.
106. Commenters recommended the
creation of a tracker that displays the
number of enrollments and amounts of
disbursements made from the
Emergency Broadband Connectivity
Fund. Some commenters suggested that
the tracker be updated either in realtime, or on a weekly or monthly basis.
Commenters also urged the Commission
to display disbursements and
enrollment activity by different
geographic levels or by provider, and to
provide additional information about
the programs through which EBB
Program customers are qualifying.
Commenters argued that providers need
this information prepare their customers
for the elimination of the benefit.
107. The Commission agrees that
tracking and reporting on disbursement
and program enrollment activity will be
an essential tool for managing the EBB
Program and for developing an informed
forecast of the end of the EBB Program.
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Given the anticipated limited duration
of the EBB Program, the Commission
further agrees with commenters that
clear and frequent updates on the
remaining funds available will help give
participating providers the data they
need to begin the process of providing
notice to subscribers about the end of
the benefit and preparing them for a
potential transition to other broadband
options. The Commission will develop
and publish online a tracker that, at a
minimum, displays (1) the number of
EBB Program households enrolled in
NLAD; (2) the number of net new
households enrolling into the EBB
Program each week; and (3) the total
dollar amount of the reimbursement
claims approved to date, disaggregated
by monthly amounts for internet access
service and associated equipment, as
well as connected devices, with
historical data remaining so that the
public can monitor any trends in the
disbursement rates between updates.
The Commission directs USAC, subject
to the oversight of the WCB and the
OMD, to develop this tracker and make
it available on USAC’s website as well
as the Commission’s website. The
posted information shall be updated at
least every two weeks by USAC, with
the goal of weekly updates as the EBB
Program ramps up.
108. The Commission declines to
require that USAC post detailed
information about EBB Program
activities by geographic region, finding
that such information would not be
essential for informing providers and
the public about the status of the
program, which is the Commission’s
more immediate goal. USAC should
focus its resources on what is necessary
to successfully administer the
implementation of the EBB Program and
its wind-down. However, the
Commission agrees that more
information about the communities the
EBB Program serves could help the
Commission evaluate the success of this
program and could inform future
broadband-related initiatives. Therefore,
to be transparent about participation in
the EBB Program, the Commission
directs USAC to submit a report to the
Commission that provides information
about how households qualified for the
EBB Program, the claimed support
amounts for connected devices and
services, the geographic locations of
consumers at the county level, and other
information that the WCB, in
consultation with USAC, believes
would be essential for evaluating the
program. This report shall be filed with
the WCB no more than six months after
the initiation of the EBB Program, with
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updates submitted as necessary to
capture additional information about
the EBB Program and participating
households obtained after the
submission of the report.
109. Program Sunsetting. The
Commission goal is to provide an
informed projection of the exhaustion of
funds for the EBB Program so USAC and
the Commission can effectively manage
the disbursement of the remaining funds
and ample notice is provided to
households, providers and other
stakeholders. The Commission is
especially concerned about the
elimination of the benefit and the
impact it could have on households,
including unexpected or larger bills,
and disruption or even termination of
the broadband service. Accordingly, the
Commission adopts procedures
designed to ensure that households are
informed that the program is temporary
and the benefit will terminate at the end
of the program, to provide notice to all
stakeholders of the forecasted end of the
program, and to manage the program to
ensure that the remaining funds are
disbursed equally to providers and
allow for a transition for households off
the EBB Program.
110. The first step in administering
the end of the EBB Program is to predict
fund exhaustion based on enrollment
activity, disbursement levels, and other
relevant information. Commenters
argued that stakeholders will require
advanced notice of the end of the
program, in addition to the EBB
Program activity posted on a tracker, to
prepare their customer service
representatives, billing systems, and
customers for the elimination of the
subsidy. The Commission cannot
predict at this time when the Emergency
Broadband Connectivity Fund will be
depleted, but as households enroll in
the EBB Program and providers begin to
submit claims for reimbursement, the
Commission anticipates a clearer
picture of the interest in the program
and the rate at which funds will be
withdrawn. The Commission recognizes
that a greater understanding of the
timing of the end of the EBB Program
and the procedures the Commission and
USAC will employ to manage the
remaining funds and reimbursement
claims will create greater confidence in
the EBB Program and help households
navigate the end of the subsidy.
111. First, the Commission directs
USAC to develop a method, subject to
the oversight of the Office of Managing
Director, the Office of Economics and
Analytics, and the WCB, to forecast
when the Fund will be able to pay out
reimbursement claims only for another
75 to 90 days. The forecast shall take
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into account the Commission
commitment that in the final month of
disbursements, the remaining balance in
the Fund will be able to provide at least
50% of each claim for service or
connected devices to assist households
and providers with the transition. Once
USAC has identified when the Fund
will be depleted using submitted claims
and other relevant information, USAC
will notify providers and the public of
the expected exhaustion of the Fund
and the month in which USAC expects
to pay out final claims. Administering
this finite Fund presents administrative
challenges, particularly given that the
Commission is unable to predict at this
time the demand in the EBB Program
and the rate of at which households will
enroll in the program in the beginning
weeks of the program. Given these
challenges, the Commission has
endeavors to provide at least 60 days’
notice before the end of the Program.
This notice will be posted on the USAC
and Commission websites at least 60
days prior to the final snapshot date that
coincides with the forecasted final
month of the Program. This notice
should be sufficient to allow providers
to make an informed decision about
whether to plan to claim their EBB
Program subscribers in the final month
and possibly receive a partial
reimbursement claim for the service
provided, or to transition those
subscribers off their service.
112. Some commenters suggested 30
days’ notice of the end of the program
would be adequate whereas others
argued that 90 days are needed to
ensure that providers have ample time
to provide notice to their customers.
CTIA suggested that providers have at
least 60 days’ notice to wind down their
participation in the EBB Program. The
Commission finds that 60 days’ notice
of the termination of the EBB Program
strikes a balance between the need for
USAC to have enough data to accurately
forecast the end of the program with the
need to offer enough time for providers
to notify their customers and work with
them on a post-program broadband
solution. This is an emergency program
and as such, requires all stakeholders to
work expeditiously in ensuring that the
Commission is serving low-income
households and helping to meet their
broadband needs during the pandemic.
Moreover, the Commission finds that 60
days’ notice is reasonable given other
existing Commission requirements for
service providers to notify their
subscribers in advance of a possible
change or disruption in their service,
and the Commission expects that
providers will be able to adjust their
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systems as necessary to provide such
notice just as they would need to in
these other contexts.
113. Second, in the event that
reimbursement claims in the final
month exceed the amount of remaining
funds, reimbursements for both service
and connected device claims will be
paid out on a reduced, pro-rata basis,
but in no circumstances will the
reimbursement be less than 50% of the
provider’s claim for that final month.
For example, if the remaining balance in
the Fund is sufficient to pay 80% of
each reimbursement claim submitted in
that final month, the Fund will pay out
80% of each claim on a pro-rata basis,
thus depleting the Fund and ending the
EBB Program. In this scenario, a
provider can expect to receive a $40
disbursement if they would otherwise
submit a service claim for $50, and the
subscriber would be responsible for
payment of the additional $10 for that
service month. While the Commission
took steps in the RO to ensure that
USAC has the most up-to-date claims
information available to support its
projection analysis and to avoid a
scenario where the amount in the Fund
will be insufficient to offer a
reimbursement of at least 50% on
claims in that final month, the
Commission recognizes that in order to
responsibly manage the Fund, the
Commission must prepare for this
scenario. In the final months of the EBB
Program, after the end date has been
forecast, the Commission directs USAC
to continue to monitor Program activity
to determine whether the Fund will be
able to support at least 50% of the
claims, paid out on a pro-rata basis, in
the expected final month of the EBB
Program. If USAC’s analysis indicates
that the Fund will not be able to meet
this 50% threshold, USAC shall
immediately notify the WCB, the Office
of Economics and Analytics, and the
Office of Managing Director. If
Commission staff agrees with USAC’s
analysis, the WCB will direct USAC to
pause the reimbursement process for
that final month. For example, in the
event that the remaining balance in the
Fund could only pay 30% of each
anticipated claim for support, the Fund
will not issue any disbursements in that
month. In that situation where the
remaining funds cannot guarantee at
least a 50% disbursement on claims in
that final month, the Commission will
determine how best to use the
remaining funds consistent with the
CAA.
114. The Commission recognizes that
uncertainty in the subsidy amount for
the final month presents challenges for
households and for providers as they
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manage their participation in the EBB
Program and as providers communicate
to households regarding expectations for
the final month. By establishing a 50%
floor for the final month of
reimbursement, the Commission
balances the compelling interest in
avoiding extreme price increases for
eligible households while transitioning
households off the subsidy, with its
obligation to maximize the effectiveness
of EBB Program funds by ensuring that
as much of the Fund supports services
to the greatest number of low-income
households. Reimbursing each claim on
a pro-rata basis in the final month of the
program, regardless of the amount the
provider would be entitled to, helps the
Commission fulfill that mandate. The
Commission recognizes the 50% floor
could result in some funds being left
unspent for a short while, and would
require additional Commission
direction on the use of the remaining
funds, but by implementing this
approach it is ensuring that the final
month of the program provides a
substantial subsidy to help households
transition off the program. The
Commission also anticipates that
USAC’s projections will provide enough
advance notice of this possibility to
allow both households and providers to
plan accordingly.
115. The Commission declines to
adopt a policy suggested by commenters
that would structure the subsidy so
eligible households would receive the
benefit for a determined time period.
The Commission finds that such a
mechanism would restrict household
participation in the EBB Program in
order to guarantee benefits to a more
limited number of households for the
set period, and would also require
USAC to deny enrollment to otherwise
eligible households. Given its obligation
to maximize the effectiveness of the EBB
Program, the Commission finds it could
not adopt a regime that would limit the
low-income households benefitting from
this program. Maximizing the number of
households while guaranteeing at least
a 50% benefit in the final month
balanced the need to serve as many
households as possible while ensuring
that households can rely on a
substantial benefit in the final month of
the EBB Program.
116. Relatedly, several commenters
suggested that the Commission reserve a
portion of the funding for households
that do not already have broadband
service connections. Education Super
Highway noted that funding is unlikely
to meet the demand for the EBB
Program, and that those without a
broadband connection may have a more
difficult path and be at a disadvantage
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in applying for the program given the
provider-centric design of the EBB
Program. While the Commission
understands these concerns, the
Commission declines to set aside any
portion of the funding for unconnected
households. The CAA does not include
any prioritization for how funding
should be distributed to eligible
households, and the Commission finds
that it is appropriate to provide the
benefit to eligible households without
regard to their current level of
broadband service. Moreover, the
Commission expects the outreach efforts
discussed in the following would help
unconnected households enroll in the
EBB Program.
117. Because of the uncertainty in the
reimbursement amount for the final
month, once notice of the projected end
date has been issued, the Commission
must limit volatility in the program
claims that could materially change the
projected end date. As a result, the
Commission will freeze enrollments of
new households at the time the notice
is issued. To more smoothly administer
the end of the program, providers and
households must have confidence that
the Fund can support claims made up
until the forecasted end date. The
Commission recognizes that this
enrollment freeze will restrict access to
the program for households wishing to
enroll in the program’s waning weeks,
but the Commission notes that the EBB
Program will operate without any cap
on the number of eligible households
that will be able to enroll before that
time. The Commission finds that an
enrollment freeze at the end of the
program allows the Commission to serve
the greatest number of eligible lowincome households while responsibly
managing the remaining funds in the
final weeks of the program. Therefore,
the Commission directs USAC, under
the oversight of the OMD and the WCB,
to develop procedures for implementing
this enrollment freeze.
118. Notice to consumers. In the
Public Notice, DA 21–6, the WCB
acknowledged that customers will need
to be notified prior to or upon
enrollment in the EBB Program of the
temporary nature of the program and
that they will be subject to the general
terms and conditions of the broadband
service they receive through the EBB
Program if they continue to take that
service after the program’s conclusion.
119. Commenters agreed that notice at
the time of enrollment is essential
especially given that no one can state
with confidence at the outset how long
the program will last. Public Knowledge
stated that providers must be ‘‘fully
transparent with consumers, at the time
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of sign-up, about these factors.’’ Hughes
Network Systems agreed that providers
must have a responsibility in notifying
subscribers at the time of enrollment
that the program will end when the
funds are depleted or when the
emergency period ends. To ensure that
customers are given notice at or before
initial enrollment that the EBB Program
benefit provides a temporary discount
on their broadband service bill, that
discount will not be applied to their
bill, the Commission directs USAC, in
consultation with the WCB, to publish
language describing the limited duration
of the benefit and the potential impact
on the customer’s bill at the end of the
program on USAC’s relevant consumerfacing websites, any USAC-provided
application and the National Verifier,
and other educational materials.
120. Providers also play an important
role in ensuring that their customers are
informed about the temporary nature of
the EBB Program. Providers will have a
direct relationship with their customers,
and as such, have a responsibility to
ensure that these customers have the
information they need to make an
informed decision about the broadband
service product they subscribe to
supported by the EBB Program.
Accordingly, the Commission directs
USAC and providers to include on their
EBB Program consumer applications a
certification for the household to affirm
that they understand that the EBB
Program is a temporary Federal
Government subsidy that reduces the
customer’s broadband internet access
service bill and at the conclusion of the
EBB Program, the household will be
subject to the provider’s undiscounted
general rates, terms, and conditions if
the household continues to subscribe to
the service.
121. The Commission also requires
providers to include information about
the limited duration of the Program and
the impact of its termination on any
EBB Program advertising materials,
including, but not limited to billing
inserts; websites; flyers; television,
radio, and newspaper advertising;
mailers; and posters. The Commission
directs providers to use their best
judgment in developing language that
will clearly communicate the duration
and impact of the program’s end to the
prospective low-income households, but
at a minimum that language should
comply with the relevant EBB Program
rules the Commission adopts herein.
Providers have an interest in
communicating the terms of the
Program clearly to their customers to
manage expectations and to preserve the
relationship. It is important as both a
consumer protection measure and to
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ensure that low-income consumers
continue to have access to broadband
services during this pandemic, that
providers assist customers by
transitioning them to other available
products in the event that the
broadband service plan they were
subscribing to becomes unaffordable
after the EBB Program ends and the
benefit is eliminated.
122. The Commission is persuaded by
commenters’ arguments that customer
bills offer an opportunity to
communicate the limited duration of the
EBB Program and the impact on the
monthly bill when the subsidy ends.
Commenters representing aging and
public housing advocacy groups
recommended that providers submit
notices on consumer bills that provides
‘‘information on billing after the
conclusion of the EBB Program, when
the first bill at a higher rate will be due,
an explanation of any partial month
charges and information on any
additional resources.’’ The San
Francisco Department of Technology
contended that the temporary discount
should be clearly characterized as such
on consumer bills, and the Benton
Institute for Broadband and Society
urged the Commission to adopt
requirements that providers be in clear
communication with consumers about
the end of the subsidy and the amount
of the monthly bill that a customer is
responsible for. MMTC NUL
recommended that providers should
inform customers that ‘‘they will be
eligible to transition to an alternative,
lower-priced broadband plan at the
conclusion of the emergency program,
making clear the price, service levels,
and other terms and conditions that will
apply.’’
123. The Commission agrees that
provider-supplied communication is
important and will help guard against
unexpected bill-shock and confusion
throughout the EBB Program. Therefore,
the Commission requires providers
participating in the EBB Program to
deliver at the time of enrollment and on
a monthly basis, either in the form of a
monthly bill, or other monthly
communication if the benefit covers the
entire rate of the qualified plan, to its
EBB Program household, documentation
that prominently and clearly states in
easy to understand terms that the EBB
Program is a temporary subsidy that
reduces the customer’s broadband
internet access service bill and at the
conclusion of the benefit, the customer
will be subject to the provider’s general
rates, terms, and conditions if the
customer continues to subscribe to that
broadband service. This initial
disclosure, monthly bill or
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communication must also prominently
and clearly set forth the rate that the
customer should be expected to pay,
including fees, taxes, and equipment
rental charges once the EBB Program
ends and the benefit expires. Once
USAC and the WCB announce a
forecasted end of the EBB Program, the
provider must provide notice to its
customer in a prominent manner on the
customer’s bill, or other monthly
communication if the benefit covers the
entire rate of the qualified plan, about
the last date or service month that the
full benefit will apply to their bill, the
last date or service month that the
partial, final-month benefit will apply to
their bill, and the expected rate of the
broadband service once the benefit
expires.
124. The Commission recognizes that
providers will need some time to adjust
their billing and other systems in order
to communicate the EBB Program end
date to their customers. Therefore,
providers should send this notice to
their customers as soon as practicable
after the notice is posted on USAC and
the Commission websites, but no less
than 15 days after the notice from USAC
and the Commission is posted. The
Commission encourages providers to
send this notification to households
electronically, consistent with any
consumer expressed preferences for
receiving electronic notices and other
communications and to the same email
or phone number that bills or other
monthly communications are sent, in
addition to a mailed notice to ensure
that customers have multiple
opportunities to receive information
regarding the end of the EBB Program
and alternative broadband plans if it
will be unaffordable without the benefit.
Commenters recognized that advance
notice to households is important so
they can make informed choices
regarding broadband service for their
household. The Commission finds that
providers are in the best position to
explain to their customers what will
happen to their bill once the benefit is
exhausted.
125. Household transition to other
services or discounts. The Commission
recognizes that the end of the EBB
Program means that households will
need to evaluate available options to
determine how their household can
continue to subscribe to broadband
services. Rather than limit participation
in the program to a predetermined
number of customers, as some
commenters suggest, the Commission
structures the EBB Program to ensure
that it serves the greatest number of
households possible. But this more
inclusive approach presents some
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administrative challenges. For example,
the Commission cannot predict at this
time how long the EBB Program will last
and when a customer’s last month of
EBB Program-discounted service will
be. The Commission commits to
ensuring that the Commission is
transparent about the enrollment and
disbursement activity in the EBB
Program. The Commission knows that
there is a connection between a
household’s income level and whether
they have a home broadband
connection, and EBB Program customers
will need a smooth transition to
affordable broadband options at the
conclusion of the EBB Program if they
wish to maintain broadband service.
Commenters noted that it is vital that
consumers be transitioned to affordable
broadband services at the conclusion of
the EBB Program. Ensuring that these
households can continue accessing the
broadband they need to participate in
virtual learning, complete their
homework, and communicate with
employers and healthcare providers will
be a group effort. The Commission
encourages providers and community
groups to communicate the availability
of affordable broadband options,
including any broadband adoption
initiatives in their communities.
126. The Commission also hopes that
providers consider ways in which they
can financially support their customers
as the benefit ends and the households
look to transition to comparable
broadband services or continue with the
same broadband service offered at a
discounted rate subsidized by the
provider. The Commission also
recognizes that requiring providers to
directly subsidize a household’s
broadband service, either fully or
partially, once the Emergency
Broadband Connectivity Fund is
depleted would likely be considered to
be to an unfunded mandate. While the
Commission cannot and does not
require that providers offer a discount to
households at that time, the
Commission hopes that providers are
able to identify the ways in which they
can use their experience with the EBB
Program and the Federal support they
received to help households continue to
access high quality, low-cost broadband
service during the course of this public
health emergency. At a minimum,
providers with existing low-cost and
income restricted programs should not
preclude EBB Program recipients from
enrolling in those programs based on
current or recent customer (for example,
service within the last 90 days)
eligibility restrictions. Consumers
previously in an existing low-cost
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program and using the EBB Program
benefit to receive a higher tier of service
should be allowed to transition back to
the low-cost offering at the conclusion
of the benefit program.
127. Due to their relationship with
their EBB Program customers, providers
play an essential role in helping to
protect households from bill shock and
to ensure that households understand
that they ‘‘shall be subject to a
participating provider’s generally
applicable terms and conditions’’ after
the expiration of the EBB Program.
Therefore, the Commission requires that
providers obtain an affirmative opt-in
from households at any time while the
household is participating in the EBB
Program and before they can be charged
an amount higher than they would pay
under the full EBB Program
reimbursement amount permitted by the
Commission rules, including any
potential increased payment as a result
of a partial reimbursement during the
EBB Program’s final month. The
Commission agrees with commenters
that an opt-in from households will help
guard against unexpected charges by
reducing the likelihood that households
will receive broadband service absent
the EBB Program benefit without their
permission. To that end, consistent with
the notice requirements the Commission
adopts in the RO, with respect to
provider communications to
households, the provider shall clearly
state that it will stop providing
broadband service to the household at
the conclusion of the EBB Program
unless the household agrees to continue
to receive broadband service. At least 30
days before the end of the EBB Program,
the provider must also notify
households of the upcoming increase to
their monthly bills (or as soon as
practicable if there is a scenario in
which providers do not have 30 days’
notice prior to the expiration of the
program). The Commission encourages
providers to ensure that households
have the opportunity to make an
informed decision about the
continuation of broadband service
absent the EBB Program benefit. EBB
Program households that subscribed to
the provider’s broadband service before
the commencement of the EBB Program
must also opt-in to the continuation of
broadband service. The Commission
finds that requiring providers to obtain
permission from households before
continuing to provide broadband service
after the end of the EBB Program is
another tool that helps ensure that
households have the information they
need to make decisions about their
broadband services and to ensure that
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the same households are protected from
unexpected bills related to their
broadband services.
128. Promoting Awareness. The
Commission recognizes that for the EBB
Program to achieve its full potential and
serve as many eligible households as
possible during the COVID–19
pandemic, low-income households must
be clearly informed of the program’s
existence, benefits, eligibility
qualifications, and how to apply.
Participating providers, some of whom
may not have experience with the
Lifeline program, USAC, and USAC’s
processes, will also require information
both on how to participate in the EBB
Program and on how to educate
consumers. The record overwhelmingly
reflected the importance of publicizing
the program to new and existing
consumers through national and local
campaigns that use diverse
spokespeople and languages. For the
EBB Program to reach as many eligible
consumers as possible, including
disconnected low-income consumers,
individuals with disabilities, and
households of color, it is important to
implement a broad, collaborative
outreach, including the Federal
Government, state, local, and Tribal
governments, broadband internet access
providers, community groups, trade
associations, Tribal communities,
philanthropists, educators, and other
trusted institutions. The record also
recognized the importance of educating
participating providers on the EBB
Program. To this end, the Commission
encourages EBB Program participating
providers to engage in consumer
marketing with basic requirements and
encourage them to consider
communications strategies proposed in
the record. The Commission also directs
the Commission staff and USAC to
develop comprehensive provider
education and training programs, as
well as consumer outreach plans.
Finally, the Commission strongly
encourages other civic entities to
publicize the EBB Program to eligible
households.
129. The Commission next encourages
providers that file an election notice
with USAC to publicize the availability
of the EBB Program service in a manner
reasonably designed to reach those
consumers likely to qualify and in a
manner that is accessible to individuals
with disabilities. The record
overwhelmingly confirmed that
participating providers should
publicize, including in languages other
than English, the availability of the EBB
Program. To ensure that consumers
receive comprehensive information
explaining the EBB Program, the
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Commission recommends that provider
marketing materials describe in clear,
easily-understandable language in, if
feasible, the dominant languages of the
communities that the provider serves:
(1) The eligibility requirements for
consumer participation; (2) the
monetary charges to the customer; (3)
the available upload/download speeds,
data caps, and connected devices, if
any, with descriptions; (4) a provider
customer service number, prominently
displayed on all promotional materials,
that is associated with an adequately
staffed phone line; and (5) that the EBB
Program is a temporary emergency
Federal Government benefit program
operated by the FCC and, upon its
conclusion, customers will be subject to
the provider’s regular rates, terms, and
conditions.
130. The Commission declines to
mandate that providers engage in more
prescriptive forms of EBB Program
promotion. Instead, the Commission
grants providers the flexibility to
develop their own marketing plans. The
Commission finds that providers are in
the best position to understand how to
market a new program to the
communities they serve. However, the
Commission encourages participating
providers to consider and implement
some of the numerous consumer
outreach strategies described in the
record. For instance, many commenters
urged providers to engage in outreach
and partner with local government
agencies, through institutions providing
basic needs to eligible populations, such
as housing, food and transportation and
healthcare, schools eligible for free or
reduced lunch, school breakfast, and
E-Rate, libraries, and Tribal
organizations. The City of Seattle,
Washington State Broadband Office,
Seattle Public Schools District and
Seattle Housing Authority
recommended that providers without
retail locations where they serve
low-income customers partner with a
commercial, nonprofit, or other
community organizations to offer
site-based information about low-cost
offers for low-income communities.
Additionally, some commenters,
recognizing that eligible households
may not currently have access to
broadband, encouraged providers to use
a variety of media outlets that target
minority and low-income populations—
including newspapers, television and
radio stations, billboards, and internet
advertisements—to promote the EBB
Program through Public Service
Announcements and crawls that direct
listeners and viewers specifically to
where they can find local information
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on the program, learn which local
providers are participating, and ways to
contact those providers. Partnerships
with disability organizations and other
entities that frequently provide internet
access and technical assistance to
people with disabilities are further
encouraged by other commenters to
publicize the EBB Program.
131. The Commission also directs the
Consumer and Governmental Affairs
Bureau (CGB) to both to educate service
providers on the EBB Program and to
engage in consumer outreach to the
largest possible number of eligible
consumer participants. The Commission
further directs CGB and the Office of
Native Affairs and Policy (ONAP) to
coordinate to develop educational and
informational communications and
materials to advertise the EBB Program,
such as a web page and digital toolkit,
in a printable format and translated into
other languages, that can easily be
accessed by service providers,
organizations, and the public. The
record demonstrated support for
Commission-developed marketing
materials—including charts, posters,
flyers and messaging—that providers
and other organizations can customize
and share through email, social media
and other channels. The Commission
also supports the idea raised by
commenters that to promote the EBB
Program, the Commission should work
closely with, among others,
Congressional offices, other Federal
agencies, state and local governments,
community organizations, schools, and
libraries.
132. The Commission also directs
USAC to develop and implement a
communications strategy, under the
oversight of the WCB and CGB, to
provide training and information
necessary to successfully participate in
the EBB Program to service providers—
both ETCs and non-ETCs, Tribal
communities and organizations,
associations and consumer advocates,
the E-Rate community, potential eligible
consumers, and the public at large. The
objective for the communications plan
should be to ensure that both current
and new stakeholders can learn about
and successfully participate in the EBB
Program and ensure discounts on
broadband service and connected
devices are efficiently and effectively
provided to eligible consumers. The
Commission anticipates that USAC’s
communications strategy will include a
dedicated, regularly updated web page
and other outreach methods including
webinars, bulletins, email campaigns,
and direct outreach to providers,
eligible consumers, Tribal communities,
schools, libraries, and other
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organizations that serve EBB Program
eligible populations. The record
overwhelmingly supported such wideranging communications efforts. To help
ensure that households are aware of
affordable broadband services for which
they may likely qualify, the Commission
directs USAC to coordinate with state
and Federal partners, and community
support organizations such as food
banks to promote the availability of
Lifeline as a supplement to the EBB
Program or as an option when the
benefit is eliminated. Indeed,
commenters urged the Commission and
USAC to work closely with
congressional offices, coordinate with
other Federal agencies, state and local
organization, Tribes, consumer-facing
agencies, trade associations, schools,
libraries, and hospitals that could assist
with educating low-income consumers
about the program and the provider
options that are available as a result.
The Commission strongly encourages
CGB, WCB, and USAC to incorporate
these recommendations into their
outreach efforts.
133. Lastly, the Commission strongly
encourages other Federal agencies, state
and local governments, groups, and
broadband offices, youth groups and
organizations, schools and libraries to
promote the EBB Program to eligible
households. The Colorado
Communications and Utility Alliance
(CCUA) emphasized that ‘‘local
governments have ability to promote the
EBBP through bill inserts, electronic
notification to customers, company
websites and social media.’’ The CCUA,
as well as the National Association of
Telecommunications Officers and
Advisors, pointed to the recent success
of local governments and community
organizations to provide a wide range of
pandemic related information to
citizens. Similarly, the City of
Longmont, Colorado reported that it
‘‘has an arsenal of tools at its disposal
to promote the availability of the EBBP,
and is prepared to utilize them to the
fullest extent.’’ Therefore, the
Commission agrees with commenters
that these entities that work with
program eligible populations would be
highly effective in raising awareness
about the EBB Program.
134. Audits. The CAA requires the
Commission to adopt audit
requirements to ensure that
participating providers are in
compliance with the program rules and
to prevent waste, fraud, and abuse in the
EBB Program. A finding of waste, fraud,
or abuse or an improper payment
identified by the Commission or the
Inspector General of the Commission
must include (1) the name of the
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participating provider; (2) the amount of
funding made available from the EBB
Program to the provider; (3) the amount
of funding determined to be an
improper payment to the provider; (4) a
description of to what extent funding
made available from the EBB Program
that was an improper payment was used
for a reimbursement for a connected
devise or a reimbursement for an
internet service offering; (5) whether, in
the case of a connected device, such
device, or the value thereof, has been
recovered; (6) whether any funding from
the EBB Program was made available to
a participating provider for an
emergency broadband benefit for a
person outside the eligible household;
and (7) whether any funding from the
EBB Program was made available to
reimburse a participating provider for
an emergency broadband benefit made
available to an eligible household in
which all members of such household
necessary to satisfy the eligibility
requirements were deceased. Within
one year of the date of the enactment of
the CAA, the Commission’s Office of
Inspector General must conduct an
audit of the disbursements made to a
representative sample of participating
providers. The record generally
supported the use of audits to ensure
compliance and accountability in the
EBB Program. Multiple commenters
urged the Commission to adopt audit
requirements similar to those
procedures used in the Lifeline program
‘‘to ensure compliance and to prevent
waste, fraud, and abuse,’’ and to focus
its audit and fraud-prevention efforts on
rule violations that occur at scale and
that impact the largest number of
consumers.’’ Others contend that the
current Lifeline audit process requires
substantial reform or support a more
simplified version of the process that
does not impede participation by
households and providers or have an
adverse impact on customer privacy and
data security. Commenters agreed that
participating providers should be
required to collect and retain
documentation sufficient to support
compliance with any certifications and
that such record keeping requirements
should be clearly defined.
135. The Commission agrees with the
commenters that it is imperative to
require audits to confirm the integrity of
the EBB Program and prevent fraud,
waste, and abuse in the program. To that
end, the Commission delegates
authority to the OMD to develop and
implement an audit process of
participating providers that complies
with all requirements in sections
904(b)(7) and (8) of the CAA. OMD may
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obtain the assistance of third parties,
including but not limited to USAC, in
carrying out this effort. Consistent with
the Commission experience regarding
the Universal Service Fund, the
Commission finds that audits are the
most effective way to ensure compliance
with the Commission rule requirements.
136. Enforcement. The CAA provides
that a violation of its section 904, which
establishes the EBB Program, or any
regulation promulgated under that
section ‘‘shall be treated as a violation
of the Communications Act of 1934 or
a regulation promulgated under such
Act.’’ The Commission is compelled to
enforce this section and the associated
regulations ‘‘in the same manner, by the
same means, and with the same
jurisdiction, powers, and duties as
though all applicable terms and
provisions of the Communications act of
1934 were incorporated into and made
a part of this section.’’ In the Public
Notice, DA 21–6, the WCB sought
comment on the authority of the
Commission to impose administrative
forfeitures and other penalties on
program participants found to be in
violation of the program rules and
requirements. The record largely
supported the application of the
Commission’s existing enforcement
powers, including imposing
administrative forfeitures and other
penalties on participating providers that
violate the program rules and
requirements, to protect the integrity of
the EBB Program. The National Lifeline
Association urged that ‘‘[a]ny proposed
forfeitures under the [EBB Program]
rules should be based on reasonable
recoveries for rule violations and three
times the amount of harm to the [EBB
Program] (treble damages) for cases of
actual fraud.’’ T-Mobile argued that in
order to avoid discouraging providers
from participating in the EBB Program,
the Commission should not treat a
violation of its other rules as a basis for
withholding EBB Program funding from
participants. Consistent with this
statutory direction and the record, the
Commission decides to use the
Commission’s existing, statutorily
permitted enforcement powers to
initiate investigations and impose
administrative forfeitures. In addition,
the Commission would apply the
Commission’s suspension and
debarment rules currently applicable to
the USF program to EBB Program
participating providers. The
Commission would also withhold EBB
Program funds from participants found
to be in violation of the EBB Program
rules, if appropriate, and will also seek
to recoup improperly disbursed funds,
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in addition to appropriate enforcement
penalties. The Commission finds that
these enforcement mechanisms
sufficiently balance the need for
widespread participation in the EBB
Program with the importance of
maintaining the program’s integrity.
137. Application of Other Part 54
Regulations. The Commission uses the
authority granted by the CAA to apply
portions of 47 CFR part 54—pertaining
to definitions, de-enrollment, program
integrity, and the use of USAC—to the
EBB Program.
138. Subpart E. Due to similarities
between the programs and the use of
certain USAC Lifeline systems to
administer the EBB Program, the
Commission elects to apply select
portions of the regulations that control
the Lifeline program to the EBB
Program. Specifically, the Commission
applies the following definitions in
§ 54.400 of the Commission’s rules to
the EBB Program, subject to the further
interpretations expounded upon in the
RO: (f) Income; (g) duplicative support;
(h) household; (i) National Lifeline
Accountability Database of Database; (j)
Qualifying assistance program; (k)
Direct service; (l) Broadband internet
access service; (o) National Lifeline
Eligibility Verifier; and (p) Enrollment
representatives. Maintaining uniform
definitions across the two programs will
facilitate a quick launch and efficient
administration for the Commission,
USAC, and participating providers.
What is more, the Commission limits
application of the Lifeline rules to those
specifically enumerated in the Order to
balance the need of ensuring that the
EBB Program has adequate guidelines
and parameters with the concern of
chilling participation by providing a
complex framework that may be
unfamiliar to new providers or serve as
a bar to participation in this temporary
program.
139. The Commission also elects to
apply relevant subsections of § 54.404 of
the Commission’s rules, outlining
carrier interactions with the NLAD, and
portions of § 54.405 of the Commission’s
rules to the EBB Program concerning
carrier obligations and de-enrollment.
Specifically, the Commission applies
§ 54.405(e)(1), (2), and (5) of the
Commission’s rules, for de-enrollments
generally, de-enrollments for
duplicative support, and de-enrollments
requested by the subscriber,
respectively. In the definition for deenrollment requested by the subscriber,
the Commission directs USAC to accept
and process de-enrollment requests
directly from EBB Program subscribers,
and to notify the subscriber’s provider
when such a de-enrollment occurs. This
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additional method for de-enrollment by
subscribers will assist in administering
funds efficiently and provide further
certainty to participants regarding their
ability to transition out of this
temporary program.
140. For de-enrollment for non-usage,
however, the Commission adopts a
modified requirement—as permitted by
the CAA—to adapt to the unique
circumstances provided by the
pandemic, the limited duration of the
EBB Program, and the participation of
non-ETC providers that may not have
already designed processes to comport
with the specific Lifeline usage
requirements. Accordingly, the
Commission requires that providers
submit a certification in their
reimbursement claim that every
subscriber claimed has used their
supported service, as defined in
§ 54.407(c)(2) of the Commission’s rules,
at least once during the service month
being claimed. Providers must retain
documentation demonstrating the
subscriber monthly usage amounts to
support this certification. The
Commission does not adopt for the EBB
Program the notice and de-enrollment
process required in the Lifeline program
rules, but participating providers that
fail to resolve non-usage by households
enrolled in the EBB Program will be
unable to claim the program benefit for
those households. This modification
ensures that the limited funds provided
by the CAA will reach those whose
needs are greatest by protecting against
supporting unused service.
141. Additionally, the Commission
adopts for the EBB Program a
modification of the subscriber eligibility
determination and certification found in
§ 54.410 of the Commission’s rules, and
require all participating providers to
implement policies and procedures for
ensuring that their EBB Program
households are eligible to receive the
Emergency Broadband Benefit.
Accordingly, a provider may not
provide a consumer with an activated
device that it represents enables use of
Emergency Broadband Benefitsupported service, nor may it activate
service that it represents to be
Emergency Broadband Benefitsupported service, unless and until it
has: (1) Confirmed that the household is
an eligible household pursuant to
section III(B) of the RO, and; (2)
Completed the eligibility determination
and certification required by section
III(B) of the RO, and any other necessary
enrollment steps expounded upon in
the RO. We find that these preventative
measures provide a front-end guard
against the improper use of the limited
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funds provided by the CAA, and protect
against waste, fraud, and abuse.
142. To further ensure program
integrity, the Commission applies the
following sections of the Lifeline rules
to the EBB Program: § 54.407(a), (c)(2)(i)
through (v), (d) and (e) of the
Commission’s rules, pertaining to the
number of participants as of the first of
the month (snapshot), the definition of
service usage, reimbursement
certifications, and records; § 54.417 of
the Commission’s rules, pertaining to
recordkeeping requirements; and,
§ 54.419 of the Commission’s rules,
pertaining to the validity of e-signatures.
The Commission notes that these rule
sections, as applied to the EBB Program,
are the subject of more detailed
discussions in the RO. We also require
participating providers that use
enrollment representatives to comply
with the Representative Accountability
Database registration requirement
established in §§ 54.400(p) and
54.406(a) of the Commission’s rules.
Requiring registration for employees,
agents, contractors, or subcontractors of
participating providers or their thirdparty entities prior to those personnel
providing information to the USAC
systems will bolster the security of the
system and help monitor for suspected
non-compliance in program activity.
However, the Commission declines to
apply § 54.406(b) of the Commission’s
rules to avoid discouraging provider
participation and diminishing consumer
choice in the EBB Program.
143. The record supports the use of
these Lifeline rules in implementing the
EBB Program, including the use of the
National Verifier, NLAD, RAD, snapshot
dates and process, and de-enrollment
requirements and deadlines. The
Commission agrees with commenters
that these established processes will
assist in the quick and efficient
implementation of the EBB Program
while protecting against waste, fraud,
and abuse.
144. Use of USAC. The Commission
also uses the authority granted by the
CAA to avail ourselves of USAC’s
services to implement the EBB Program,
including administering approvals and
elections of participating providers and
determinations of household eligibility,
including whether a household resides
on Tribal lands, by relying upon USACadministrated processes and systems,
including the National Verifier, NLAD,
RAD, and LCS for the provider
reimbursement process, call centers for
program support, provider and
consumer outreach, and conducting
program integrity reviews. The record
supported using USAC and its processes
for the efficient and effective
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administration of the program, and the
Commission believes USAC’s
experience administering the Lifeline
program makes USAC uniquely situated
to be the administrator of the EBB
Program.
145. Subpart H. The Commission next
applies § 54.702(c) of the Commission’s
rules to the EBB Program as well,
preventing USAC from making policy,
interpreting unclear statutes or rules
relied upon to implement the EBB
Program, or interpreting the intent of
Congress. Additionally, the Commission
grants USAC the authority to conduct
program audits of contributors and
providers, as provided in § 54.707 of the
Commission’s rules. This grant,
however, is subject to the further
direction as set forth in section III(G) of
the RO.
146. Subpart I. Lastly, the
Commission provides a path for
recourse to parties aggrieved by
decisions issued by USAC. Specifically,
the Commission requires review of
decisions issued by USAC to follow the
requirements set forth in 47 CFR
Subpart I. The Commission finds these
existing processes sufficient to provide
meaningful review of decisions issued
by USAC during the EBB Program.
147. Delegations to the Bureau and
Office of Managing Director. The
Commission delegates authority to the
WCB and OMD to make necessary
adjustments to the program
administration and to provide
additional detail and specificity to the
requirements of the EBB Program to
conform with the intent of the RO and
ensure the efficient functioning of the
program.
148. In addition, the Commission
delegates financial oversight of the EBB
Program to the Commission’s Managing
Director and directs the OMD to work in
coordination with the WCB to ensure
that all financial aspects of the program
have adequate internal controls. These
duties fall within OMD’s current
delegated authority to ensure that the
Commission operates in accordance
with Federal financial statutes and
guidance. Such financial oversight must
be consistent with the rules adopted in
the RO. OMD performs this role with
respect to USAC’s administration of the
Commission’s Universal Service
programs, and the Covid–19 Telehealth
program, and the Commission
anticipates that OMD will leverage
existing policies and procedures, to the
extent practicable and consistent with
section 904 of the CAA, to ensure the
efficient and effective management of
the program. Finally, the Commission
notes that OMD is required to consult
with the WCB on any policy matters
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19559
affecting the program, consistent with
§ 0.91(a) of the Commission’s rules.
OMD, in coordination with the WCB,
may issue additional directions to
USAC and program participants in
furtherance of its responsibilities.
149. In its administration of the EBB
Program, USAC is directed to comply
with, on an ongoing basis, all applicable
laws and Federal government guidance
on privacy and information security
standards and requirements, such as the
Privacy Act, relevant provisions in the
Federal Information Security
Modernization Act of 2014, National
Institute of Standards and Technology
publications, and Office of Management
and Budget guidance.
150. The Commission recognizes that,
once implementation of the EBB
Program begins, the Commission or
USAC may encounter unforeseen issues
or problems with the administration
that will need to be resolved. To achieve
widespread participation by eligible
households in the EBB Program, the
Commission delegates this authority to
Commission staff to address and resolve
such issues.
III. Procedural Matters
A. Paperwork Reduction Act Analysis
151. Pursuant to section 904(h)(2) of
the Consolidated Appropriations Act,
the collection of information sponsored
or conducted under the regulations
promulgated in the Report and Order is
deemed not to constitute a collection of
information for the purposes of the
Paperwork Reduction Act, 44 U.S.C.
3501–3521.
B. Congressional Review Act
152. The Commission has determined,
and the Administrator of the Office of
Information and Regulatory Affairs,
Office of Management and Budget
(OMB), concurs, that the regulations
implementing the EBB Program are a
‘‘major rule’’ under the Congressional
Review Act, 5 U.S.C. 804(2). By
exempting this rulemaking proceeding
from the notice and comment provisions
of the Administrative Procedure Act, 5
U.S.C. 553(b), the Commission
concludes that Congress has determined
notice and public procedure under the
Administrative Procedure Act to be
impracticable, unnecessary, or contrary
to the public interest. In addition, the
exemption of this proceeding from the
Administrative Procedure Act
requirement that rules cannot become
effective until 30 days after publication
in the Federal Register, 5 U.S.C. 553(d),
demonstrates Congressional intent that
the rules the Commission adopt shall
become effective without delay.
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Accordingly, the Commission finds for
good cause that notice and public
procedure on the rules adopted herein
are impracticable, unnecessary, or
contrary to the public interest, and
therefore the Report and Order would
become effective April 13, 2021
pursuant to 5 U.S.C. 808(2). The
Commission will send a copy of the
Report and Order to Congress and the
Government Accountability Office
pursuant to 5 U.S.C. 801(a)(1)(A).
C. Regulatory Flexibility Act
153. The Regulatory Flexibility Act of
1980, as amended (RFA), requires that
an agency prepare a final regulatory
flexibility analysis ‘‘whenever an agency
promulgates a final rule under [5 U.S.C.
553], after being required by that section
or any other law to publish a general
notice of proposed rulemaking.’’
Pursuant to the Consolidated
Appropriations Act, section 553 does
not apply to the rulemaking proceeding
implementing the EBB Program.
Accordingly, no Final Regulatory
Flexibility Analysis was required for the
Report and Order.
IV. Ordering Clauses
154. Accordingly, it is ordered that,
pursuant to the authority contained in
Section 904 of Division N, Title IX of
the Consolidated Appropriations Act,
2021, Pub. L. No 116–260, 134 Stat.
1182, the Report and order is adopted.
155. It is further ordered that the
Commission shall send a copy of the
Report and Order to the Congress and
the Government Accountability Office
pursuant to the Congressional Review
Act, see 5 U.S.C. 801(a)(1)(A).
List of Subjects in 47 CFR Part 54
Communications common carriers,
Health facilities, Infants and children,
internet, Libraries, Reporting and
recordkeeping requirements, Schools,
Telecommunications, Telephone.
Federal Communications Commission
Marlene Dortch,
Secretary.
Final Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR part 54 as
follows:
PART 54—UNIVERSAL SERVICE
1. The authority citation for part 54
continues to read as follows:
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■
Authority: 47 U.S.C. 151, 154(i), 155, 201,
205, 214, 219, 220, 229, 254, 303(r), 403,
1004, 1302, and 1601–1609 unless otherwise
noted.
■
2. Add subpart P to read as follows:
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Subpart P—Emergency Broadband Benefit
Program
Sec.
54.1600 Definitions.
54.1601 Participating providers.
54.1602 Emergency Broadband Benefit.
54.1603 Emergency Broadband Benefit
Program support amount.
54.1604 Participating provider obligation to
offer Emergency Broadband Benefit
Program.
54.1605 Household qualification for
Emergency Broadband Benefit Program.
54.1606 Household eligibility
determinations.
54.1607 Enrollment representative
registration.
54.1608 Reimbursement for providing
Emergency Broadband Benefit Program
discount.
54.1609 De-enrollment from the Emergency
Broadband Benefit Program.
54.1610 Expiration of Emergency
Broadband Benefit Program.
54.1611 Recordkeeping requirements.
54.1612 Validity of electronic signatures.
Subpart P—Emergency Broadband
Benefit Program
§ 54.1600
Definitions.
(a) Broadband internet access service.
The term ‘‘broadband internet access
service’’ has the meaning given such
term in 47 CFR 8.1(b), or any successor
regulation.
(b) Broadband provider. The term
‘‘broadband provider’’ means a provider
of broadband internet access service.
(c) Commission. The term
‘‘Commission’’ means the Federal
Communications Commission.
(d) Connected device. The term
‘‘connected device’’ means a laptop or
desktop computer or a tablet.
(e) Designated as an eligible
telecommunications carrier. The term
‘‘designated as an eligible
telecommunications carrier’’, with
respect to a broadband provider, means
the broadband provider is designated as
an eligible telecommunications carrier
under section 214(e) of the
Communications Act of 1934 (47 U.S.C.
214(e)).
(f) Direct service. As used in this
subpart, direct service means the
provision of service directly to the
qualifying low-income consumer.
(g) Duplicative support. ‘‘Duplicative
support’’ exists when an Emergency
Broadband Benefit subscriber is
receiving two or more Emergency
Broadband Benefit services concurrently
or two or more subscribers in a
household have received a connected
device with an Emergency Broadband
Benefit discount
(h) Eligible household. The term
‘‘eligible household’’ means, regardless
of whether the household or any
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member of the household receives
support under subpart E of 47 CFR part
54 (or any successor regulation), and
regardless of whether any member of the
household has any past or present
arrearages with a broadband provider, a
household in which—
(1) At least one member of the
household meets the qualifications 47
CFR 54.409(a) or (b) (or any successor
regulation);
(2) At least one member of the
household has applied for and been
approved to receive benefits under the
free and reduced price lunch program
under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et
seq.) or the school breakfast program
under section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773);
(3) At least one member of the
household has experienced a substantial
loss of income since February 29, 2020,
that is documented by layoff or furlough
notice, application for unemployment
insurance benefits, or similar
documentation or that is otherwise
verifiable through the National Verifier
or National Lifeline Accountability
Database;
(4) At least one member of the
household has received a Federal Pell
Grant under section 401 of the Higher
Education Act of 1965 (20 U.S.C. 1070a)
in the current award year, if such award
is verifiable through the National
Verifier or National Lifeline
Accountability Database or the
participating provider verifies eligibility
under 47 CFR 54.1606(a)(2); or
(5) At least one member of the
household meets the eligibility criteria
for a participating provider’s existing
low-income or COVID–19 program,
subject to the requirements of 47 CFR
54.1606(a)(2).
(i) Emergency broadband benefit. The
term ‘‘emergency broadband benefit’’
means a monthly discount for an
eligible household applied to the actual
amount charged to such household,
which shall be no more than the
standard rate for an internet service
offering and associated equipment, in an
amount equal to such amount charged,
but not more than $50, or, if an internet
service offering is provided to an
eligible household on Tribal land, not
more than $75.
(j) Emergency period. The term
‘‘emergency period’’ means the period
that—
(1) Begins on the date of the
enactment of the Consolidated
Appropriations Act; and
(2) Ends on the date that is 6 months
after the date on which the
determination by the Secretary of Health
and Human Services pursuant to section
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319 of the Public Health Service Act (42
U.S.C. 247d) that a public health
emergency exists as a result of COVID–
19, including any renewal thereof,
terminates.
(k) Enrollment representative. An
employee, agent, contractor, or
subcontractor, acting on behalf of an
eligible telecommunications carrier or
third-party entity, who directly or
indirectly provides information to the
Administrator for the purpose of
eligibility verification, enrollment,
subscriber personal information
updates, benefit transfers, or deenrollment.
(l) Household. A ‘‘household’’ is any
individual or group of individuals who
are living together at the same address
as one economic unit. A household may
include related and unrelated persons.
An ‘‘economic unit’’ consists of all adult
individuals contributing to and sharing
in the income and expenses of a
household. An adult is any person
eighteen years or older. If an adult has
no or minimal income, and lives with
someone who provides financial
support to him/her, both people shall be
considered part of the same household.
Children under the age of eighteen
living with their parents or guardians
are considered to be part of the same
household as their parents or guardians.
(m) Income. ‘‘Income’’ means gross
income as defined under section 61 of
the Internal Revenue Code, 26 U.S.C. 61,
for all members of the household. This
means all income actually received by
all members of the household from
whatever source derived, unless
specifically excluded by the Internal
Revenue Code, Part III of Title 26, 26
U.S.C. 101 et seq.
(n) Internet service offering. The term
‘‘internet service offering’’ means, with
respect to a broadband provider,
broadband internet access service
provided by such provider to a
household, offered in the same manner,
and on the same terms, as described in
any of such provider’s offerings for
broadband internet access service to
such household, as on December 1,
2020.
(o) Lifeline qualifying assistance
program. A ‘‘Lifeline qualifying
assistance program’’ means any of the
Federal or Tribal assistance programs
the participation in which, pursuant to
47 CFR 54.409(a) or (b), qualifies a
consumer for Lifeline service, including
Medicaid; Supplemental Nutrition
Assistance Program; Supplemental
Security Income; Federal Public
Housing Assistance; Veterans and
Survivors Pension Benefit; Bureau of
Indian Affairs general assistance;
Tribally administered Temporary
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Assistance for Needy Families (Tribal
TANF); Head Start (only those
households meeting its income
qualifying standard); or the Food
Distribution Program on Indian
Reservations (FDPIR).
(p) National Lifeline Accountability
Database. The ‘‘National Lifeline
Accountability Database’’ is an
electronic system, with associated
functions, processes, policies and
procedures, to facilitate the detection
and elimination of duplicative support,
as directed by the Commission.
(q) National Lifeline Eligibility Verifier
or National Verifier. The ‘‘National
Lifeline Eligibility Verifier’’ or
‘‘National Verifier’’ is an electronic and
manual system with associated
functions, processes, policies and
procedures, to facilitate the
determination of consumer eligibility
for the Lifeline program and Emergency
Broadband Benefit Program, as directed
by the Commission.
(r) Participating provider. The term
‘‘participating provider’’ means a
broadband provider that—
(1)(i) Is designated as an eligible
telecommunications carrier; or
(ii) Meets requirements established by
the Commission for participation in the
Emergency Broadband Benefit Program
and is approved by the Commission
under 47 CFR 54.1601(b); and
(2) Elects to participate in the
Emergency Broadband Benefit Program.
(s) Standard rate. The term ‘‘standard
rate’’ means the monthly retail rate for
the applicable tier of broadband internet
access service as of December 1, 2020,
excluding any taxes or other
governmental fees.
(t) Tribal lands. For purposes of this
subpart, ‘‘Tribal lands’’ include any
Federally recognized Indian tribe’s
reservation, pueblo, or colony,
including former reservations in
Oklahoma; Alaska Native regions
established pursuant to the Alaska
Native Claims Settlement Act (85 Stat.
688); Indian allotments; Hawaiian Home
Lands—areas held in trust for Native
Hawaiians by the state of Hawaii,
pursuant to the Hawaiian Homes
Commission Act, 1920 July 9, 1921, 42
Stat. 108, et seq., as amended; and any
land designated as such by the
Commission for purposes of subpart E of
47 CFR part 54 (or any successor
regulation) pursuant to the designation
process in 47 CFR 54.412.
§ 54.1601
Participating providers.
(a) Eligible telecommunications
carriers. A broadband provider that is
designated as an eligible
telecommunications carrier may
participate in the Emergency Benefit
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Broadband Program as a participating
provider.
(b) Other broadband providers. A
broadband provider that is not
designated as an eligible
telecommunications carrier may seek
approval from the Wireline Competition
Bureau to participate in the Emergency
Broadband Benefit Program as a
participating provider.
(1) The Wireline Competition Bureau
shall review and act on applications to
be designated as a participating provider
on an expedited basis. Such
applications shall contain:
(i) The states or territories in which
the provider plans to participate;
(ii) The service areas in which the
provider has the authority, if needed, to
operate in each state or territory, but has
not been designated an eligible
telecommunications carrier; and,
(iii) Certifications and documentation
of the provider’s plan to combat waste,
fraud, and abuse.
(2) Notwithstanding paragraph (b)(1)
of this section, the Wireline
Competition Bureau shall automatically
approve as a participating provider a
broadband provider that has an
established program as of April 1, 2020,
that is widely available and offers
internet service offerings to eligible
households and maintains verification
processes that are sufficient to avoid
fraud, waste, and abuse. Such
applications seeking automatic approval
shall contain:
(i) The states or territories in which
the provider plans to participate;
(ii) The service areas in which the
provider has the authority, if needed, to
operate in each state or territory, but has
not been designated an Eligible
Telecommunications Carrier; and,
(iii) A description, supported by
documentation, of the established
program with which the provider seeks
to qualify for automatic admission to the
Emergency Broadband Benefit Program.
(c) Election notice. All participating
providers must file an election notice
with the Administrator. The election
notice must be submitted in a manner
and form consistent with the direction
of the Wireline Competition Bureau and
the Administrator. At a minimum the
election notice should contain:
(1) The states or territories in which
the provider plans to participate in the
Emergency Broadband Benefit Program;
(2) A statement that, in each state or
territory, the provider was a ‘‘broadband
provider’’ as of December 1, 2020;
(3) A list of states or territories where
the provider is an existing Eligible
Telecommunications Carrier, if any;
(4) A list of states or territories where
the provider received Wireline
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Competition Bureau approval, whether
automatic or expedited, to participate, if
any;
(5) Whether the provider intends to
distribute connected devices;
(6) A description of the internet
service offerings for which the provider
plans to seek reimbursement in each
state or territory; and,
(7) Documentation demonstrating the
standard rates for those services in each
state; and any other information
necessary to establish participating
providers in the Administrator’s
systems.
(d) Suspension and debarment. The
prohibition on participation and
suspension and debarment rules
established in 47 CFR 54.8, shall apply
to activities associated with or related to
the Emergency Broadband Benefit
Program.
§ 54.1602
Emergency Broadband Benefit.
(a) The Emergency Broadband Benefit
Program shall provide reimbursement to
a participating provider for providing a
discount on the price of broadband
internet access service (and associated
equipment), a connected device, or
both, to an eligible household during
the emergency period.
(b) Participating providers may allow
consumers whose households qualify
for the Emergency Broadband Benefit
Program pursuant to 47 CFR 54.1605, to
apply the Emergency Broadband Benefit
to any residential service plan that
includes broadband internet access
service or a bundle of broadband
internet access service along with fixed
or mobile voice telephony service, text
messaging service, or both.
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§ 54.1603 Emergency Broadband Benefit
Program support amount.
(a) The Emergency Broadband Benefit
Program support amount for all
participating providers shall equal the
actual discount provided to an eligible
household off of the actual amount
charged to such household, which shall
be no more than the standard rate for an
internet service offering and associated
equipment, but not more than $50.00
per month, if that provider certifies that
it will pass through the full amount of
support to the eligible household, or not
more than $75.00 per month, if that
provider certifies that it will pass
through the full amount of support to
the eligible household on Tribal lands,
as defined in 47 CFR 54.1600(t).
(b) A participating provider that, in
addition to providing the Emergency
Broadband Benefit Program to an
eligible household, supplies such
household with a connected device may
be reimbursed up to $100.00 for such
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connected device, if the charge to such
eligible household is more than $10.00
but less than $50.00 for such connected
device, except that a participating
provider may receive reimbursement for
no more than one (1) connected device
per eligible household.
(c) If the amount of funding remaining
in the Emergency Broadband
Connectivity Fund is less than the total
amount of valid reimbursement claims
in the Emergency Broadband Benefit
Program, the support amount for all
participating providers submitting valid
reimbursement claims for a month may
be less than the full support amount
permitted under this section.
§ 54.1604 Participating provider obligation
to offer Emergency Broadband Benefit
Program.
(a) All participating providers in the
Emergency Broadband Benefit Program
must make available the Emergency
Broadband Benefit Program to
qualifying low-income consumers.
(b) All participating providers in the
Emergency Broadband Benefit Program
are encouraged to:
(1) Publicize the availability of the
Emergency Broadband Benefit Program
in a manner reasonably designed to
reach those likely to qualify for the
service.
(2) Indicate on all materials describing
the Emergency Broadband Benefit
Program, using easily understood
language in the dominant languages of
the communities the provider serves:
(i) The eligibility requirements for
consumer participation;
(ii) That the Emergency Broadband
Benefit is non-transferable and is
limited to one discount per household;
(iii) The monetary charges to the
customer;
(iv) The available upload/download
speeds and data caps for the covered
services, and a list of connected devices,
if any, with descriptions;
(v) The provider’s customer service
telephone number, which must be
prominently displayed on all
promotional materials and adequately
staffed by customer service
representatives; and
(vi) That the Emergency Broadband
Benefit Program is a temporary
emergency Federal Government benefit
program operated by the Federal
Communications Commission and,
upon its conclusion, customers will be
subject to the provider’s regular rates,
terms, and conditions.
§ 54.1605 Household qualification for
Emergency Broadband Benefit Program.
(a) To constitute an eligible
household:
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(1) The household income as defined
in 47 CFR 54.1600(m) must be at or
below 135% of the Federal Poverty
Guidelines for a household of that size;
or
(2) At least one member of the
household must receive benefits from
one of the following Federal assistance
programs: Medicaid; Supplemental
Nutrition Assistance Program;
Supplemental Security Income; Federal
Public Housing Assistance; or Veterans
and Survivors Pension Benefit; or
(3) At least one member of the
household has applied for and been
approved to receive benefits under the
free and reduced price lunch program
under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et
seq.) or the school breakfast program
under section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773); or
(4) At least one member of the
household has experienced a substantial
loss of income since February 29, 2020,
that is documented by layoff or furlough
notice, application for unemployment
insurance benefits, or similar
documentation or that is otherwise
verifiable through the National Verifier;
or
(5) At least one member of the
household has received a Federal Pell
Grant under section 401 of the Higher
Education Act of 1965 (20 U.S.C. 1070a)
in the current award year, if such award
is verifiable through the National
Verifier or the participating provider
verifies eligibility under 47 CFR
54.1606(a)(2); or
(6) At least one member of the
household meets the eligibility criteria
for a participating provider’s existing
low-income or COVID–19 program,
subject to the requirements of 47 CFR
54.1606(a)(2); or
(7) If the household is located on
Tribal lands, at least one member of the
household participates in one of the
following Tribal-specific Federal
assistance programs: Bureau of Indian
Affairs general assistance; Tribally
administered Temporary Assistance for
Needy Families; Head Start (only those
households meeting its income
qualifying standard); or the Food
Distribution Program on Indian
Reservations.
(b) In addition to meeting the
qualifications provided in paragraph (a)
of this section, in order to constitute an
eligible household, no member of the
household may already be receiving an
Emergency Broadband Benefit Program
discount.
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§ 54.1606 Household eligibility
determinations.
(a) Eligibility verification processes.
To verify whether a household is an
eligible household, a participating
provider shall—
(1) Use the National Verifier; or
(2) Rely upon an alternative
verification process of the participating
provider, if—
(i) The participating provider submits
information as required by the
Commission regarding the alternative
verification process prior to seeking
reimbursement; and
(ii) Not later than 7 days after
receiving the information required
under paragraph (a)(2)(i) of this section,
the Wireline Competition Bureau—
(A) Determines that the alternative
verification process will be sufficient to
avoid waste, fraud, and abuse; and
(B) Notifies the participating provider
of the determination under paragraph
(a)(2)(ii)(A) of this section; or
(3) Rely on a school to verify the
eligibility of a household based on the
participation of the household in the
free and reduced price lunch program or
the school breakfast program as
described in 47 CFR 54.1600(h)(2). The
participating provider must retain
documentation demonstrating the
school verifying eligibility, the
program(s) that the school participates
in, the qualifying household, and the
program(s) the household participates
in.
(b) Provider policies and procedures.
All participating providers must
implement policies and procedures for
ensuring that their Emergency
Broadband Benefit Program households
are eligible to receive the Emergency
Broadband Benefit. A provider may not
provide a consumer with service that it
represents to be Emergency Broadband
Benefit-supported service or seek
reimbursement for such service, unless
and until it has:
(1) Confirmed that the household is
an eligible household pursuant to 47
CFR 54.1605;
(2) Completed any other necessary
enrollment steps, and;
(3) Securely retained all information
and documentation it receives related to
the eligibility determination and
enrollment, consistent with 47 CFR
54.1611.
(c) One-Per-Household Worksheet. If
the prospective household shares an
address with one or more existing
Emergency Broadband Benefit Program
subscribers according to the National
Lifeline Accountability Database or
National Verifier, the prospective
subscriber must complete a form
certifying compliance with the one-per-
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household rule prior to initial
enrollment.
(d) The National Lifeline
Accountability Database. In order to
receive Emergency Broadband Benefit
Program support, participating
providers must comply with the
following requirements:
(1) All participating providers must
query the National Lifeline
Accountability Database to determine
whether a prospective subscriber is
currently receiving an Emergency
Broadband Benefit-supported service
from another participating provider; and
whether anyone else living at the
prospective subscriber’s residential
address is currently receiving an
Emergency Broadband Benefitsupported service.
(2) If the National Lifeline
Accountability Database indicates that a
prospective subscriber who is not
seeking to transfer his or her Emergency
Broadband Benefit, is currently
receiving an Emergency Broadband
Benefit-supported service, the
participating provider must not provide
and shall not seek or receive Emergency
Broadband Benefit reimbursement for
that subscriber.
(3) Participating providers may query
the National Lifeline Accountability
Database only for the purposes provided
in paragraphs (e)(1) and (2) of this
section, and to determine whether
information with respect to its
subscribers already in the National
Lifeline Accountability Database is
correct and complete.
(4) Participating providers must
transmit to the National Lifeline
Accountability Database in a format
prescribed by the Administrator each
new and existing Emergency Broadband
Benefit Program subscriber’s full name;
full residential address; date of birth;
the telephone number associated with
the Emergency Broadband Benefit
Program service; the date on which the
Emergency Broadband Benefit Program
discount was initiated; the date on
which the Emergency Broadband
Benefit Program discount was
terminated, if it has been terminated;
the amount of support being sought for
that subscriber; and the means through
which the subscriber qualified for the
Emergency Broadband Benefit Program.
(5) All participating providers must
update an existing Emergency
Broadband Benefit Program subscriber’s
information in the National Lifeline
Accountability Database within ten
business days of receiving any change to
that information, except as described in
paragraph (d)(7) of this section.
(6) All participating providers must
obtain, from each new and existing
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subscriber, consent to transmit the
subscriber’s information. Prior to
obtaining consent, the participating
provider must describe to the
subscriber, using clear, easily
understood language, the specific
information being transmitted, that the
information is being transmitted to the
Administrator to ensure the proper
administration of the Emergency
Broadband Benefit Program, and that
failure to provide consent will result in
subscriber being denied the Emergency
Broadband Benefit.
(7) When a participating provider deenrolls a subscriber from the Emergency
Broadband Benefit Program, it must
transmit to the National Lifeline
Accountability Database the date of
Emergency Broadband Benefit Program
de-enrollment within one business day
of de-enrollment.
(8) All participating providers must
securely retain subscriber
documentation that the participating
provider reviewed to verify subscriber
eligibility, for the purposes of
production during audits or
investigations or to the extent required
by National Lifeline Accountability
Database or National Verifier processes,
which require, inter alia, verification of
eligibility, identity, address, and age.
(9) A participating provider must not
enroll or claim for reimbursement a
prospective subscriber in the Emergency
Broadband Benefit Program if the
National Lifeline Accountability
Database or National Verifier cannot
verify the subscriber’s status as alive,
unless the subscriber produces
documentation to demonstrate his or
her identity and status as alive.
(e) Connected device reimbursement
and the National Lifeline Accountability
Database. In order to receive Emergency
Broadband Benefit Program
reimbursement for a connected device,
participating providers must comply
with the following requirements:
(1) Such participating provider must
query the National Lifeline
Accountability Database to determine
whether a prospective connected device
benefit recipient has previously
received a connected device benefit.
(2) If the National Lifeline
Accountability Database indicates that a
prospective subscriber has received a
connected device benefit, the
participating provider must not seek a
connected device reimbursement for
that subscriber.
(3) Such participating provider shall
not seek a connected device
reimbursement for a subscriber that is
not receiving the Emergency Broadband
Benefit for service provided by the same
participating provider.
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(4) Where two or more participating
providers file a claim for a connected
device reimbursement for the same
subscriber, only the participating
provider whose information was
received and processed by the National
Lifeline Accountability Database or
Lifeline Claims System first, as
determined by the Administrator, will
be entitled to a connected device
reimbursement for that subscriber.
(5) All participating providers must
obtain from each subscriber consent to
transmit the information required under
paragraph (e)(1) of this section. Prior to
obtaining consent, the participating
provider must describe to the
subscriber, using clear, easily
understood language, the specific
information being transmitted, that the
information is being transmitted to the
Administrator to ensure the proper
administration of the Emergency
Broadband Benefit Program connected
device benefit, and that failure to
provide consent will result in the
subscriber being denied the Emergency
Broadband Benefit Program connected
device benefit.
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§ 54.1607 Enrollment representative
registration.
Enrollment representative
registration. A participating provider
must require that enrollment
representatives register with the
Administrator before the enrollment
representative can provide information
directly or indirectly to the National
Lifeline Accountability Database or the
National Verifier.
(a) As part of the registration process,
participating providers must require
that all enrollment representatives
provide the Administrator with
identifying information, which may
include first and last name, date of
birth, the last four digits of his or her
social security number, email address,
and residential address. Enrollment
representatives will be assigned a
unique identifier, which must be used
for:
(1) Accessing the National Lifeline
Accountability Database;
(2) Accessing the National Verifier;
(3) Accessing any eligibility database;
and
(4) Completing any Emergency
Broadband Benefit Program enrollment
or verification forms.
(b) Participating providers must
ensure that enrollment representatives
shall not use another person’s unique
identifier to enroll Emergency
Broadband Benefit Program subscribers,
recertify Emergency Broadband Benefit
Program subscribers, or access the
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National Lifeline Accountability
Database or National Verifier.
(c) Participating providers must
ensure that enrollment representatives
shall regularly recertify their status with
the Administrator to maintain their
unique identifier and maintain access to
the systems that rely on a valid unique
identifier. Participating providers must
also ensure that enrollment
representatives shall update their
registration information within 30 days
of any change in such information.
§ 54.1608 Reimbursement for providing
Emergency Broadband Benefit Program
discount.
(a) Emergency Broadband Benefit
Program support for providing a
qualifying broadband internet access
service shall be provided directly to a
participating provider based on the
number of actual qualifying low-income
households listed in the National
Lifeline Accountability Database that
the participating provider serves
directly as of the first of the month.
(b) For each eligible household
receiving Emergency Broadband
Benefit-supported service, the
reimbursement amount shall equal the
appropriate support amount as
described in 47 CFR 54.1603, except as
otherwise provided by 47 CFR
54.1603(c). The participating provider’s
Emergency Broadband Benefit Program
reimbursement shall not exceed the
participating provider’s standard rate for
that offering.
(c) A participating provider offering
an Emergency Broadband Benefit
Program service with a standard rate
that does not require the participating
provider to assess and collect a monthly
fee from its subscribers must certify that
every subscriber claimed has used their
supported service, as defined by 47 CFR
54.407(c)(2), at least once during the
service month being claimed prior in
order to claim that subscriber for
reimbursement in that month.
(d) A participating provider that, in
addition to providing the Emergency
Broadband Benefit to an eligible
household, provides such household
with a connected device may be
reimbursed up to $100.00 for such
connected device, if the charge to such
eligible household is more than $10.00
but less than $50.00 for such connected
device, except that a participating
provider may receive reimbursement for
no more than one (1) connected device
per eligible household.
(e) In order to receive Emergency
Broadband Benefit Program
reimbursement, an officer of the
participating provider must certify, as
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part of each request for reimbursement,
that:
(1) The officer is authorized to submit
the request on behalf of the participating
provider;
(2) The officer has read the
instructions relating to reimbursements
and the funds sought in the
reimbursement request are for services
and/or devices that were provided in
accordance with the Emergency
Broadband Benefit Program rules and
requirements;
(3) The participating provider is in
compliance with all of the rules in this
subpart;
(4) The participating provider has
obtained valid certification and
application forms as required by the
rules in this subpart for each of the
subscribers for whom it is seeking
reimbursement;
(5) The amount for which the
participating provider is seeking
reimbursement from the Emergency
Broadband Connectivity Fund is not
more than the standard rate;
(6) Each eligible household for which
the participating provider is seeking
reimbursement for providing an internet
service offering—
(i) Has not been and will not be
charged—
(A) For such offering, if the standard
rate for such offering is less than or
equal to the amount of the emergency
broadband benefit for such household;
or
(B) More for such offering than the
difference between the standard rate for
such offering and the amount of the
emergency broadband benefit for such
household;
(ii) Will not be required to pay an
early termination fee if such eligible
household elects to enter into a contract
to receive such internet service offering
if such household later terminates such
contract;
(iii) Was not, after the date of the
enactment of the Consolidated
Appropriations Act, subject to a
mandatory waiting period for such
internet service offering based on having
previously received broadband internet
access service from such participating
provider; and
(iv) Will otherwise be subject to the
participating provider’s generally
applicable terms and conditions as
applied to other customers.
(7) Each eligible household for which
the participating provider is seeking
reimbursement for supplying such
household with a connected device was
charged by the provider more than
$10.00 but less than $50.00 for such
connected device;
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(8) That the connected device claimed
meets the Commission’s requirements,
that the reimbursement claim amount
reflects the market value of the device,
and that the connected device has been
delivered to the household;
(9) The process used by the
participating provider to verify that a
household is eligible for the Emergency
Broadband Benefit Program, if the
provider elects an alternative
verification process and that such
verification process was designed to
avoid waste, fraud, and abuse.
(10) The provider has retained the
relevant supporting documents that
demonstrate the connected devices
requested are eligible for
reimbursement;
(11) All documentation associated
with the reimbursement form, including
all records for services and/or connected
devices provided, will be retained for a
period of at least six years after the last
date of delivery of the supported
services and/or connected devices
provided through the Emergency
Broadband Benefit Program, and are
subject to audit;
(12) The provider neither received nor
paid kickbacks, as defined by 41 U.S.C.
8701, in connection with the Emergency
Broadband Benefit Program;
(13) The information contained in this
form is true, complete, and accurate to
the best of the officer’s knowledge,
information, and belief, and is based on
information known to the officer or
provided to officer by employees
responsible for the information being
submitted;
(14) The officer is aware that any
false, fictitious, or fraudulent
information, or the omission of any
material fact, may subject the officer to
criminal, civil, or administrative
penalties for fraud, false statements,
false claims, or otherwise. (18 U.S.C.
286–287, 1001, 1341, 31 U.S.C. 3729–
3730, 3801–3812.); and
(15) No service costs or devices
sought for reimbursement have been
waived, paid, or promised to be paid by
another entity, including any Federal
program.
(f) In order to receive Emergency
Broadband Benefit Program
reimbursement, a participating provider
must keep accurate records of the
revenues it forgoes in providing
Emergency Broadband Benefitsupported services. Such records shall
be kept in the form directed by the
Administrator and provided to the
Administrator at intervals as directed by
the Administrator or as provided in this
subpart.
(g) In order to receive reimbursement,
participating providers shall submit
VerDate Sep<11>2014
19:36 Apr 12, 2021
Jkt 253001
certified reimbursement claims through
Lifeline Claims System by the 15th of
each month, or the following business
day in the event the 15th is a holiday
or falls on a weekend. If the
participating provider fails to submit a
certified reimbursement claim by the
deadline for that month, the
reimbursement claim will not be
processed.
§ 54.1609 De-enrollment from the
Emergency Broadband Benefit Program.
(a) De-enrollment generally. If a
participating provider has a reasonable
basis to believe that an Emergency
Broadband Benefit Program subscriber
does not meet or no longer meets the
criteria to be considered an eligible
household under 47 CFR 54.1605, the
participating provider must notify the
subscriber of impending termination of
his or her Emergency Broadband Benefit
discount. Notification of impending
termination must be sent in writing
separate from the subscriber’s monthly
bill, if one is provided, and must be
written in clear, easily understood
language. The participating provider
must allow a subscriber 30 days
following the date of the impending
termination letter to demonstrate
continued eligibility. A subscriber
making such a demonstration must
present proof of continued eligibility to
the National Verifier or the participating
provider consistent with the
participating provider’s approved
alternative verification process. A
participating provider must de-enroll
any subscriber who fails to demonstrate
eligibility within five business days
after the expiration of the subscriber’s
deadline to respond.
(b) De-enrollment for duplicative
support. Notwithstanding paragraph (a)
of this section, upon notification by the
Administrator to any participating
provider that a subscriber is receiving
the Emergency Broadband Benefit
discount from another participating
provider, or that more than one member
of a subscriber’s household is receiving
the Emergency Broadband Benefit
discount and that the subscriber should
be de-enrolled from participation in that
provider’s Emergency Broadband
Benefit program, the participating
provider must de-enroll the subscriber
from participation in that provider’s
Emergency Broadband Benefit discount
within five business days. A
participating provider shall not claim
any de-enrolled subscriber for
Emergency Broadband Benefit
reimbursement following the date of
that subscriber’s de-enrollment.
(c) De-enrollment requested by
subscriber. If a participating provider
PO 00000
Frm 00035
Fmt 4701
Sfmt 4700
19565
receives a request from a subscriber to
de-enroll, it must de-enroll the
subscriber within two business days
after the request.
§ 54.1610 Expiration of Emergency
Broadband Benefit Program.
(a) Prior to the conclusion of the
Emergency Broadband Benefit Program,
the Administrator will notify
participating providers of the projected
final service month for which
participating providers will be eligible
to receive reimbursement for valid
reimbursement claims submitted
pursuant to 47 CFR 54.1608. In that
final month when valid reimbursement
claims exceed remaining funds, the
amount disbursed for both service and
connected device claims to participating
providers will be reduced on a pro-rata
basis but will be no less than 50% of the
total support amount for timely filed
claims for service and connected
devices provided to households.
(b) Concurrent with release of the
notice by the Administrator pursuant to
paragraph (a) of this section, no new
households shall be enrolled in the
Emergency Broadband Benefit Program.
(c) No later than 15 days after the
Administrator provides notice pursuant
to paragraph (a) of this section,
participating providers shall give notice
to subscribers receiving the Emergency
Broadband Benefit of the last date or
service month that the full benefit will
apply to the household’s bill, the last
date or service month that the partial,
final-month benefit will apply to their
bill, and the expected rate of the
broadband service once the benefit
expires.
(d) At least 30 days before the end of
the Emergency Broadband Benefit
Program, as indicated in the notice sent
by the Administrator pursuant to
paragraph (a) of this section,
participating providers must notify
households about the upcoming end to
the Emergency Broadband Benefit
Program and clearly state that the
household will be subject to the
participating provider’s generally
applicable terms and conditions at the
conclusion of the Emergency Broadband
Benefit Program if the household elects
to continue receiving broadband service
from the participating provider.
§ 54.1611
Recordkeeping requirements.
Participating providers must maintain
records to document compliance with
all Commission requirements governing
the Emergency Broadband Benefit
Program for the six full preceding
calendar years and provide that
documentation to the Commission or
Administrator upon request.
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Participating providers must maintain
the documentation related to the
eligibility determination and
reimbursement claims for an Emergency
Broadband Benefit Program subscriber
for as long as the subscriber receives the
Emergency Broadband Benefit discount
from that participating provider, but for
no less than the six full preceding
calendar years.
VerDate Sep<11>2014
19:36 Apr 12, 2021
Jkt 253001
§ 54.1612
Validity of electronic signatures.
(a) For the purposes of this subpart,
an electronic signature, defined by the
Electronic Signatures in Global and
National Commerce Act, as an
electronic sound, symbol, or process,
attached to or logically associated with
a contract or other record and executed
or adopted by a person with the intent
to sign the record, has the same legal
effect as a written signature.
PO 00000
Frm 00036
Fmt 4701
Sfmt 9990
(b) For the purposes of this subpart,
an electronic record, defined by the
Electronic Signatures in Global and
National Commerce Act as a contract or
other record created, generated, sent,
communicated, received, or stored by
electronic means, constitutes a record.
[FR Doc. 2021–07456 Filed 4–12–21; 8:45 am]
BILLING CODE 6712–01–P
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13APR3
Agencies
[Federal Register Volume 86, Number 69 (Tuesday, April 13, 2021)]
[Rules and Regulations]
[Pages 19532-19566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07456]
[[Page 19531]]
Vol. 86
Tuesday,
No. 69
April 13, 2021
Part IV
Federal Communications Commission
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47 CFR Part 54
Emergency Broadband Benefit Program; Final Rule
Federal Register / Vol. 86 , No. 69 / Tuesday, April 13, 2021 / Rules
and Regulations
[[Page 19532]]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[WC Docket No. 20-445; FCC 21-29; FRS 19812]
Emergency Broadband Benefit Program
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) established the Emergency Broadband Benefit Program (EBB
Program) to support broadband services and devices to help low-income
households. The Consolidated Appropriations Act, 2021 (CAA) established
an Emergency Broadband Connectivity Fund of $3.2 billion in the
Treasury of the United States for the fiscal year 2021, to remain
available until expended. The CAA directed the Commission to use the
fund to establish the EBB Program, under which eligible low-income
households may receive a discount off the cost of broadband service and
certain connected devices during an emergency period related to the
COVID-19 pandemic.
DATES: Effective April 13, 2021.
FOR FURTHER INFORMATION CONTACT: Jodie Griffin, Wireline Competition
Bureau, 202-418-7400 or by email at [email protected]. We ask that
requests for accommodations be made as soon as possible in order to
allow the agency to satisfy such requests whenever possible. Send an
email to [email protected] or call the Consumer and Governmental Affairs
Bureau at (202) 418-0530.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's
Emergency Broadband Benefit Program Report and Order (RO) in WC Docket
No. 20-445; FCC No. 21-29, adopted February 25, 2021 and released
February 26, 2021. 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-21-29A1.pdf
I. Introduction
1. In the RO, the Commission establishes the EBB Program to support
broadband services and devices to help low-income households stay
connected during the COVID-19 pandemic. Efforts to slow the spread of
COVID-19 have resulted in the dramatic disruption of many aspects of
Americans' lives, including social distancing measures to prevent
person-to-person transmission which have required the closure of
businesses and schools across the country for indefinite periods of
times, and in turn has caused millions of Americans to become newly
unemployed or unable to find work. These closures have also led people
to turn to virtual learning, telemedicine, and telework to enable
social distancing measures, which has only increased every household's
need for access to broadband services. The cost of broadband services,
however, can be difficult to overcome for low-income families and for
families that have been struggling during the pandemic.
2. On December 27, 2020, the CAA became law. Among other actions
intended to provide relief during the pandemic, the CAA established an
Emergency Broadband Connectivity Fund of $3.2 billion in the Treasury
of the United States for the fiscal year 2021, to remain available
until expended. The CAA directed the Commission to use the funds to
establish the EBB Program, under which eligible low-income households
may receive a discount off the cost of broadband service and certain
connected devices during an emergency period relating to the COVID-19
pandemic, and participating providers can receive a reimbursement for
such discounts.
3. In creating the EBB Program, the CAA does not preclude the
Commission from utilizing in whole or in part any of the Commission's
part 54 rules or amending them to suit the EBB Program. Moreover,
Congress directed the Commission to utilize existing regulatory tools
in support of the EBB Program, such as the National Verifier and the
National Lifeline Accountability Database--originally designed to
support the existing Lifeline program--which helps ensure low-income
consumers have access to affordable voice or broadband internet access
service. The EBB Program, however, is funded through a separate
appropriation from the Universal Service Fund. Consistent with
Congress's direction in the CAA, the Commission establishes the EBB
Program.
II. Discussion
4. The Commission establishes the requirements and processes of the
EBB Program, pursuant to the CAA. The Commission sets forth the
providers that may participate in the EBB Program, the household
eligibility requirements for the program, benefits for covered services
and devices, the program's budget and reimbursement, and other
administrative aspects of the program.
5. Participating Providers. In the CAA, Congress required that in
order to participate in the EBB Program a carrier must have provided
broadband internet access service to households as of December 1, 2020.
To meet these requirements, Congress defined ``participating provider''
as either an existing eligible telecommunications carrier (ETC) or
providers approved by the Commission under an ``expedited approval
process.'' Congress directed the Commission to create an ``expedited
approval process'' to approve providers to participate EBB Program
where the provider is not an existing ETC. This expedited approval
process requires that providers with an ``established program as of
April 1, 2020'' offering broadband services to eligible households with
verification process sufficient to prevent fraud, waste, and abuse
``shall be automatically approve[d].'' The Commission seeks to
encourage as many providers as possible to participate in the EBB
Program. Consistent with the CAA and the proposal in the Public Notice,
DA 21-6, the Commission also adopts a carrier election process
administered by USAC applicable to all providers participating in the
EBB Program. Providers that are not designated as an ETC by a state or
the Commission must also file for automatic approval or seek expedited
approval from the Commission. In the CAA, Congress recognized the
pressing need to quickly deliver much-needed support to Americans by
providing the Commission with the authority to streamline and expedite
the provider participation process. At the same time, the Commission
must also safeguard the EBB Program's funding to ensure it provides
help to those in need and is not wasted by providers unable to quickly
deliver broadband services. Accordingly, the election and approval
process the Commission adopts provides assurances that providers can
promptly deliver broadband services to low-income households.
6. The Commission directed the Wireline Competition Bureau (WCB),
within seven days of the adoption of the RO, to announce a timeline for
the submission of information by providers required by the CAA, such as
applications from non-ETCs to participate in the EBB Program, requests
by all providers for approval of alternative verification processes,
and the submission by ETCs and non-ETCs of election notices. By Public
Notice, DA 21-265, the WCB set a priority application deadline of March
22, 2021,
[[Page 19533]]
by which providers must submit these filings to receive approval prior
to the beginning of the EBB Program. The Commission also directs the
WCB to announce at a later date other administrative deadlines or
milestones, such as when the EBB Program will begin and when providers
may begin enrolling subscribers in the program. The Commission expects
that the EBB Program and the enrollment process will begin in less than
60 days after the adoption of the RO.
7. Providers Eligible to Participate. In the CAA, a ``participating
provider'' for the EBB Program shall be a ``broadband provider'' that
is either ``designated as an eligible telecommunications carrier'' or
seeks approval from the Commission for participation in the EBB
Program. The Commission agrees with commenters that the Commission
should establish a broad, technologically neutral approach to provider
participation in the EBB Program. This interpretation of provider
eligibility aligned with the plain language of the CAA, which defined
``broadband provider'' as any ``provider of broadband internet access
service.'' Further, the CAA defined ``broadband internet access
service'' broadly by referencing the definition in Sec. 8.1 of the
Commission's rules. Section 8.1 of the Commission's rules defines
``broadband internet access service'' as:
a mass-market retail service by wire or radio that provides the
capability to transmit data to and receive data from all or
substantially all internet endpoints, including any capabilities
that are incidental to and enable the operation of the
communications service, but excluding dial-up internet access
service. This term also encompasses any service that the Commission
finds to be providing a functional equivalent of the service
described in the previous sentence or that is used to evade the
protections set forth in this part.
Accordingly, ETCs and non-ETCs seeking to participate in the EBB
Program must establish they provide broadband services. the Commission
declines to further narrow provider eligibility among those providers
that offer broadband services as defined by the CAA. This
interpretation allows participation by not only ETCs or non-ETCs like
traditional internet Service Providers (ISPs) including cable providers
and wireless internet service providers, but also non-traditional
broadband providers like community-owned networks, electric
cooperatives, or municipal governments.
8. In the CAA, Congress established that participating providers
would be eligible to receive reimbursement for ``internet service
offering[s]'' offered in the ``same manner, and on the same terms, as
described in any of such provider's offerings for broadband internet
access service to [an eligible] household[s], as on December 1, 2020.''
The Commission interprets this provision to require participating
providers to have offered retail broadband internet access service to
eligible households as of December 1, 2020. Consistent with the
Commission's broadband data reporting rules, participating providers
will be able to establish through certification that they provided
broadband internet access service and reimbursable internet service
offerings on December 1, 2020, through reference to timely filing of
FCC Form 477. For providers that do not file FCC Form 477,
participating providers must certify that they provided retail
broadband internet access service to end-users as of December 1, 2020.
The Commission further clarifies that the retail broadband internet
access service must be provisioned to end users, meaning the provider
of retail broadband internet access service maintains a direct
relationship with the customer, is responsible for dealing with
customer complaints, handles customer billing, and provides quality of
service guarantees to the end user. The Commission finds these provider
certifications, in addition to the submission of broadband plan and
rate information described in the following, appropriately satisfied
the CAA's eligibility requirements. As described further in the
following, ETCs must make a showing that they offer qualifying
broadband service in the election notice filed with USAC. Non-ETCs must
make a threshold showing in the approval process to the WCB.
9. Election to Participate in Emergency Broadband Benefit Program
by Existing ETCs and Bureau-Approved Providers. The CAA directed the
Commission to establish an expedited process where existing ETCs and
other approved providers could ``elect'' to participate in the EBB
Program and gain access to the necessary USAC databases used to
administer the Program. The Commission adopts the proposal to require
all participating providers to file an election notice to participate
in the EBB Program. This election will be filed with USAC to facilitate
the administration of the EBB Program and provide USAC the necessary
information to incorporate providers into its systems for eligibility
determination, enrollment, and reimbursement.
10. Existing ETCs will need to only file an election with USAC,
while non-ETCs will need to first apply and then obtain WCB approval
prior to filing their election with USAC. Accordingly, the Commission
directs the WCB to establish a priority application window during which
non-ETC providers seeking approval to participate in the EBB Program
will have the opportunity to obtain approval prior to commencement of
consumer enrollments. Non-ETCs that file complete applications for
approval meeting the necessary criteria by the priority application
deadline will know their status prior to the start date for the EBB
Program. The Commission believes establishing this priority application
deadline provides adequate time for prospective providers to evaluate
the rules of the EBB Program adopted and to prepare applications, while
also encouraging prospective providers to accelerate their
consideration consistent with the need to quickly begin providing these
supported broadband services. The Commission directs the WCB and USAC
to work expeditiously to review provider applications and elections,
respectively, and the Commission directs the WCB to issue additional
guidance and instruction as necessary for providers seeking to
participate in the EBB Program. Further, the Commission expects the WCB
and USAC to prioritize their reviews to limit excessive delay in
issuing approvals of the applications and elections once properly
submitted by the providers.
11. The Commission agrees with commenters that providers and, more
importantly, their subscribers should have equal opportunity and access
to the Emergency Broadband Benefit. By allowing non-ETC providers to
obtain the necessary administrative approvals prior to the commencement
of the EBB Program, eligible households will have more choices in the
provider they can select to obtain supported broadband service and
devices. Following the close of this priority application window, the
WCB, in coordination with USAC, will establish and announce a uniform
start date on which providers can begin to enroll qualifying
subscribers in the EBB Program. This start date must allow for
processing of elections and applications of both existing ETCs and non-
ETCs to enable a consistent start date for all providers.
12. By establishing a priority application window and uniform start
date, the Commission intends to afford providers the necessary time to
update their systems and enrollment processes to effectively
participate in the EBB Program. Furthermore, preparation and
modification to both Commission and USAC systems is necessary to
administer the EBB Program. While leveraging the existing Lifeline
[[Page 19534]]
processes provides some efficiencies, USAC needs to modify the Lifeline
systems to accommodate workflows associated with the EBB Program,
including updates to the National Verifier, NLAD, RAD, and the Lifeline
Claims System (LCS). These updates require development, security
assessments, and privacy assessments and approvals required by the
Privacy Act, such as System of Records Notices (SORNs), Computer
Matching Agreements (CMAs), and systems testing to ensure an effective
launch. These measures comply with Congressional and government-wide
directives designed to protect the privacy and security of members of
the public who submit their information to the government, including
households who choose to participate in the EBB Program. While the
Commission can launch the EBB Program with manual review processes that
do not require all of these approvals, automated eligibility, and
administrative processes greatly improve functionality. The Commission
remains committed to expeditiously and successfully launching the EBB
Program.
13. Obligations of Existing ETCs to Participate in the Emergency
Broadband Benefit Program. The CAA provides that an existing ETC is a
``participating provider'' for the purposes of the EBB Program. The CAA
does not require existing ETCs to seek approval to participate in the
EBB Program. Instead, existing ETCs must only ``elect'' to participate
in the EBB Program to be eligible for reimbursement for broadband
services. Existing ETCs will be able to file these elections to
participate in the EBB Program in the states or territories where they
have already received an existing ETC designation. To ease
administrative burdens, the Commission allows an ETC to file an
election for itself and its affiliates who provided broadband service
as of December 1, 2020, within the states or territories (collectively
``jurisdictions'') where the provider was designated as an ETC. In
other jurisdictions where neither the provider nor its affiliate has an
existing ETC designation, the provider must seek either automatic or
expedited approval from the WCB prior to submitting the election notice
to USAC.
14. The Commission finds extending elections to ETC affiliates
consistent with the Commission's practices in Lifeline and High Cost
that ETCs can satisfy their statutory obligations to ``offer''
reimbursable and supported services through affiliated entities.
Similarly, commenters supported the ability of ETCs and affiliates to
elect to participate in jurisdictions where the ETC is designated.
Allowing elections to be filed for both ETCs and affiliates without
seeking additional approval for the affiliated entities will also ease
administrative burdens and more quickly allow providers access to the
EBB Program. Further, ETCs and affiliated entities are more familiar
with the obligations and requirements within a particular jurisdiction
to safeguard funds similar to the EBB Program. The Commission finds
permitting this election to be consistent with the CAA's provisions
regarding ETC elections and the Commission past treatment of ETC
requirements.
15. The Commission declines to adopt the proposals in the record
that would allow an existing ETC to offer service supported by the EBB
Program in any jurisdiction, or even nationwide, regardless of where
the ETC has been designated or where it had previously provided
broadband service. First, ETC designations are inherently
geographically limited due to the unique authority states have to
designate ETCs. Thus, the Commission believes the provision in the CAA
that relies on existing ETC designations and automatically qualifies
ETCs to participate in the EBB Program supports the proposition that
ETCs should be limited in the EBB Program to the jurisdictions in which
they have already been designated. Moreover, had the CAA intended to
allow ETCs to offer supported service everywhere regardless of the
designation, Congress would not have needed to provide a path for non-
ETC providers to participate in the EBB program. As identified in the
record, providers with existing ETC designations or affiliated with
ETCs have significant relevant experience with the policies and
procedures needed to carry out the EBB Program obligations. However, in
states where a provider is not designated as an ETC, the Commission has
less confidence that the provider has established procedures and
compliance processes necessary for EBB Program participation in that
state. This decision is further bolstered by the CAA's requirement that
participating providers would be eligible to receive reimbursement for
``internet service offerings'' offered in the ``same manner, and on the
same terms, as described in any of such provider's offerings for
broadband internet access service to [eligible] household, as on
December 1, 2020.'' Approving a provider to participate in a
jurisdiction where it previously did not offer service would render
this statutory provision moot.
16. Provider Election Process to Participate in the Emergency
Broadband Benefit Program. The Commission directs USAC, under the
supervision of and in coordination with the WCB, to establish and
administer a process to enable all participating EBB Program providers
to file election notices containing information sufficient to
effectively administer the program. The Commission directs USAC to
collect information in such notices that includes: (1) The states in
which the provider plans to participate in the EBB Program; (2) a
statement that, in each such state, the provider was a ``broadband
provider'' as of December 1, 2020; (3) a list of states where the
provider is an existing ETC, if any; (4) a list of states where the
provider received FCC approval, whether automatic or expedited, to
participate, if any; (5) whether the provider intends to distribute
connected devices under the EBB Program; (6) a description of the
internet service offerings for which the provider plans to seek
reimbursement from the EBB Program in each state; (7) documentation
demonstrating the standard rates for those services; and (8) any other
administrative information necessary for USAC to establish
participating providers in the EBB Program. In addition to these
criteria, participating providers must certify under penalty of perjury
that the information set forth in the election notice is true,
accurate, and complete; they understand and will comply with all
statutory and regulatory obligations described within the RO, including
the public interest conditions of offering EBB Program services
throughout the provider's designated service area; and all terms and
conditions and other requirements applicable to using the National
Verifier, NLAD, RAD, and other USAC systems. Providing materially false
information in the election notice will disqualify a provider from
participation in the EBB Program. The Commission finds support in the
record for adopting these requirements and certifications. These
requirements also align with the CAA's requirements for provider
participation and eligibility.
17. Provider elections must include the following information to
establish that the provider has met the criteria and can provide enough
information to allow USAC to administer the EBB Program. The Commission
directs USAC, under the supervision of and in coordination with the
WCB, to establish and administer this election process consistent with
the RO.
(a) List of states in which the provider plans to participate in
the EBB Program. A provider must list each state in which it will offer
EBB Program services.
[[Page 19535]]
Consistent with USAC's existing processes, providers should be prepared
to identify to USAC the postal ZIP code(s) or Census Block(s) where the
provider will offer EBB Program service to obtain Service Provider
Identification Number(s) (SPINs) or Study Area Codes (SACs) to the
extent necessary.
(b) A statement that, in each such state, the provider was a
``broadband provider'' as of December 1, 2020. Consistent with the
Commission's broadband data reporting rules, participating providers
will be able to establish that they provided broadband internet access
service and reimbursable internet service offerings on December 1, 2020
through reference to previous FCC Form 477 filings. Providers are
required to submit data as of December 31, 2020, and reference to an
FCC Form 477 filing for the December data submission will demonstrate
the provider offered broadband services. Providers that are not
required to file FCC Form 477 must certify that they provided retail
broadband internet access service to end users as of December 1, 2020
and identify the underlying carrier providing the network facilities.
(c) A statement identifying where the provider is an existing ETC.
A provider who is an ETC or is affiliated with an ETC seeking to begin
offering the Emergency Broadband Benefit must submit to USAC
documentation demonstrating that it is a participating provider in
specific states. While ETCs are automatically eligible to participate
and likely have already obtained administrative numbers from USAC, such
as SPINs or SACs, requiring demonstration of ETC status, filing this
statement with USAC will allow for better processing of elections.
(d) A statement identifying where the provider received FCC
approval to participate in the EBB Program. Providers seeking approvals
outside of states where they are existing ETCs or are affiliated with
existing ETCs will need to identify those states and submit to the WCB
approval to participate in the EBB Program.
(e) A statement confirming whether the provider intends to
distribute connected devices under the EBB Program. Providers seeking
reimbursement for connected devices must submit a statement of intent
to distribute connected devices as part of their election notice. These
providers should also include documentation detailing the equipment,
rates, and applicable costs of the laptop, desktop or tablet. Connected
devices should be accessible to and usable by users with disabilities.
To the extent the provider will offer connected devices that are also
generally available to the public, it may provide summary information
regarding the devices, rates, and costs, such as a link to a public
website or screenshots.
(f) Description and documentation of the internet service offerings
for which the provider plans to seek reimbursement from the EBB Program
in each state. Providers must submit documentation for the internet
service offerings they will offer through the EBB Program. The
participating provider should provide information detailing each
service offering for which it plans to seek reimbursement from the EBB
Program. This information and documentation should identify the service
plan, details about the service such as speed and data caps, the
service offering standard rate, equipment costs, jurisdiction where it
is offered, and documentation establishing the rate was available on
December 1, 2020. The provider can provide this information and
documentation through the submission of price lists, rack rates, rate
cards, or similar documentation. For service offerings that are
publicly available a website or screenshot can be provided. For
offerings that cannot be publicly viewed the provider should submit
documentation demonstrating the offering was available on December 1,
2020, such as customer bills or publicly available advertisements. The
provider can provide aggregated summaries of service offerings and
standard rates made available to eligible households, if those
offerings and rates are the same for multiple jurisdictions. This will
reduce the administrative burden for both participating providers and
the Commission in producing and reviewing voluminous service offering
descriptions that are substantially similar.
18. In addition, providers must also be able to provide or
otherwise obtain the necessary administrative registrations to utilize
Commission and USAC processes. These processes include the Commission
Registration System (CORES), FCC Registration Number (FRN), Service
Provider Identification Number(s) (SPINs), Study Area Codes (SACs),
System for Award Management (SAM), and/or Dun & Bradstreet DUNS number
for all entities the provider anticipates seeking reimbursement.
Providers should be prepared to provide this administrative information
during the election process to USAC.
19. Processing of Elections. The Commission directs USAC in
coordination with the WCB to expeditiously process election notices.
USAC should establish necessary systems and processes to systematically
review election notices as quickly as possible, and at least ensure all
elections filed by existing ETCs and elections from providers seeking
approvals in the priority application window are processed prior to the
commencement of the EBB Program. USAC should notify a provider promptly
if its election notice is incomplete or otherwise contains errors that
prevent USAC from processing the election notice. USAC shall process
election notices received during the priority application window prior
to the uniform reimbursement start date. USAC will only reject election
notices that are materially incomplete, and that the provider fails to
update.
20. Non-ETC Provider Application and Approval Process. The CAA
established that providers not already designated as an ETC that wish
to participate in the EBB Program can seek either an automatic or
expedited approval from the Commission based on certain criteria.
Specifically, the CAA required the Commission to establish an expedited
process for such approval and ``to automatically approve as a
participating provider a broadband provider that has an established
program as of April 1, 2020, that is widely available and offers
internet service offerings to eligible households and maintains
verification processes that are sufficient to avoid fraud, waste, and
abuse.'' Consistent with this Congressional directive, the Commission
establishes both an automatic approval and an expedited approval
process for non-ETC providers seeking to participate in the EBB
Program. The Commission delegates to the WCB the authority to establish
the process by which providers seek these approvals, including through
appropriate direction to USAC. Eligible providers that have submitted
complete applications by the priority application deadline will know
prior to the start date of the EBB Program if they are eligible to
participate. Applications from providers filed after priority
application deadline will be reviewed on an expedited, rolling basis.
21. Some commenters suggested the Commission provide an opportunity
for states to assist in the decisions to approve non-ETC providers for
the EBB Program. After due consideration, the Commission declines to
provide a formal role in the approval process to state public utilities
commissions (PUCs). First, the Commission acknowledges the states'
traditional and essential role in designating ETCs as provided in
section 214 of the
[[Page 19536]]
Communications Act of 1934. It is well-established that states have the
primary responsibility for designating ETCs, and the Commission is only
to designate an ETC where a state lacks jurisdiction over the carrier
applying for designation. In fact, in the CAA, Congress recognized the
importance of states' roles in the selection of providers for the EBB
Program by permitting ETCs designated by states automatic entry.
However, the CAA also specifically requires that non-ETC providers be
approved for participation by the Commission and does not provide a
role for the states. The Commission also recognizes this is a
temporary, emergency program with limited funding and it is essential
the Commission moves quickly in establishing the EBB Program and
approving the participating providers. While the Commission declines to
establish a formal role for states in the approval of those non-ETC
providers, the Commission recognizes the states' interest in knowing
the providers who are or will be providing the supported broadband
service in their jurisdiction and thus will make publicly available the
names of approved providers in each state, along with other information
related to the Commission approvals.
22. Automatic Approval Process for Providers with Existing Support
Programs. The Commission adopts an automatic approval process
consistent with the CAA to enable non-ETC broadband providers with ``an
established program as of April 1, 2020, that is widely available and
offers internet service offerings to eligible households and maintains
verification processes that are sufficient to avoid fraud, waste, and
abuse'' to be automatically approved upon the filing of information
meeting the criteria. Any non-ETC broadband provider seeking to qualify
for such automatic approval must file an application describing: (1)
The jurisdiction in which it plans to participate, (2) the service
areas in which the provider has the authority, if needed, to operate in
each state, but has not been designated an eligible telecommunications
carrier, and (3) a description, supported by documentation, of the
established EBB Program with which the provider seeks to qualify for
automatic admission to the EBB Program.
23. Established Program as of April 1, 2020. To facilitate provider
participation in the EBB Program, the Commission adopts a broad
interpretation of what constitutes an ``established program'' that is
``widely available.'' The Commission finds that this requirement
encompasses any eligible broadband provider that maintains an existing
program that was made available by April 1, 2020 to subscribers meeting
at least one of the criteria in the CAA's definition of an eligible
household. Specifically, providers offering broadband subscribers
discounted rates based on criteria such as low-income, loss of income,
participation in Federal, state, or local assistance programs, or other
means-tested eligibility criteria qualify for this automatic approval
process. Additionally, providers that made commitments to keep
subscribers connected during the pandemic and offered widely available
bill forbearance or forgiveness programs beginning no later than April
1, 2020, and continuing through the end of this EBB Program, will be
eligible for automatic approval. The Commission finds that providing
automatic approval for providers that actively offer targeted low-
income programs or programs in which providers otherwise engaged in
systematic and ongoing billing practices, like forbearance or
forgiveness, that actively reduced costs for struggling subscribers is
consistent with the CAA's requirements. These actions reduced the
financial burden on struggling households consistent with the
Congressional intent of the EBB Program. The principal consideration in
determining an ``established program'' for automatic approval is
whether subscribers receive or were eligible to receive a financial
benefit through either reduced rates or rate forbearance.
24. Consistent with such a broad interpretation, the Commission
finds that a program is ``widely established'' when it was offered to
subscribers in a substantial portion of the service provider's service
area in a particular state. The Commission declines to adopt an
interpretation that a program must be offered throughout the provider's
national or multi-state service territory to be widely available. The
Commission finds support in the record that many considerations factor
into offering such programs that are not consistent across
jurisdictions, such as state and local privacy laws, access to
eligibility information, broadband carrier requirements, or the lack of
consistent assistance programs. The Commission believes Congress's use
of ``widely available'' in lieu of more sweeping alternatives expresses
the intent to have this term apply to service offerings made publicly
available even if the existing program was not available throughout a
provider's entire service area. Further, the public interest favors an
interpretation of this requirement that broadly defines the type of
qualifying programs, supports expeditious entry where possible and in
turn makes EBB Program support available as quickly as possible.
25. Required Verification Processes. The CAA also requires that
providers seeking automatic approval to participate in the EBB Program
have established programs that maintain verification processes that are
``sufficient to avoid fraud, waste, and abuse.'' The Commission finds
that applying this requirement in a forward-looking manner strikes the
appropriate balance between responsible stewardship of the funds and
ensuring broad provider participation. Providers that have been
offering a broadband program for eligible households have generally
foregone collecting revenue they might otherwise have assessed from
participating subscribers. Those providers therefore already have
incentive to prevent enrollment in their programs by ineligible
households. Providers submitting applications for automatic approval
must describe only the established program and participation
requirements to meet the approval criteria.
26. Providers that receive automatic approval to participate in the
EBB Program will use the Lifeline National Verifier and NLAD to verify
household eligibility or their own alternative household eligibility
verification processes, or the combination of both before seeking
reimbursement. Even if a provider has its own existing broadband
program for determining eligible households, it may decide to use the
National Verifier for some or all applications to the EBB Program,
although it is not required to do so. The Commission finds that
permitting automatically approved providers to use USAC's eligibility
determination systems in a manner consistent with the CAA as described
in the following further bolsters program protections against waste,
fraud, and abuse.
27. Timing of Approvals. Providers that file applications
certifying to and making necessary demonstrations for the criteria
outlined in the document will receive approval automatically upon
filing once the WCB confirms all required information was submitted.
The Commission agrees with commenters in the record who argue the
intent of Congress was to create an automatic presumption of approval
for providers with existing support programs. Thus, the Commission
delegates to the WCB the authority to create and administer an
application process that will automatically approve provider
applications meeting the
[[Page 19537]]
criteria described in the document. Additionally, once approved, all
providers must file with USAC an election to participate in the EBB
Program to gain access to USAC systems.
28. Expedited Review Process for Non-ETC Providers. The Commission
adopts an expedited review process for non-ETC providers that do not
qualify for automatic application processing and are not affiliated
with an ETC in the same jurisdiction. Such providers must file an
application for expedited review to receive approval from the WCB to
participate in the EBB Program. As proposed in the Public Notice, DA
21-6, each non-ETC broadband provider seeking to participate must file
an application describing: (1) The state(s) in which it plans to
participate, (2) the service areas in which the provider has the
authority, if needed, to operate in each state but has not been
designated an eligible telecommunications carrier, and (3)
documentation of the provider's plan to combat waste, fraud, and abuse.
These requirements align with the CAA's requirements for provider
participation and eligibility.
29. Provider applications for review must establish a sufficient
showing that the provider has met the criteria for expedited review and
approval, as outlined in the following. The Commission directs the WCB
to establish and administer this expedited application review process
consistent with the RO.
(a) A list of states or territories where the provider will offer
EBB Program services. A provider seeking approval must list each
jurisdiction in which it seeks to be approved to offer EBB Program
services. While the provider need only identify the state or territory
where it plans to offer qualifying services for purposes of its
submission to the WCB, providers should be prepared to identify to USAC
in their election the postal ZIP code(s) or Census Block(s) where EBB
Program service will be offered to obtain Service Provider
Identification Number(s) (SPINs) or Study Area Codes (SACs), as
necessary.
(b) A statement identifying the jurisdiction in which the provider
requires FCC approval and jurisdictions in which the provider is an
existing ETC. Providers that are designated as an ETC or affiliated
with an ETC in some states or territories must submit an application
and obtain WCB approval to participate in the EBB Program in states or
territories where the provider is not designated as an ETC. Providers,
even if already designated as an ETC in some states or territories,
must seek WCB approval to offer EBB Program services in states or
territories in which the provider is not designated as an ETC. Because
such applications will be reviewed on either an automatic or expedited
basis, the Commission does not expect such a requirement to impose a
significant burden on providers. Providers without an ETC designation
or unaffiliated with an ETC must certify that they are authorized to
provide broadband services as of December 1, 2020.
(c) Documentation of the provider's plan to combat waste, fraud,
and abuse. Participating provider applications must include a
certification that the provider understands and complies with all
statutory and regulatory obligations, including those described within
the RO, as public interest conditions of offering EBB Program services.
Specifically, a provider must certify that it will:
(i) Confirm a household's eligibility for the EBB Program through
either the National Verifier or a Commission-approved eligibility
verification process prior to seeking reimbursement for the respective
subscriber;
(ii) follow all enrollment requirements and obtain all
certifications as required by the EBB Program, including providing
eligible households with information describing the Program's
eligibility requirements, one-per-household rule, and enrollment
procedures;
(iii) interact with the necessary USAC systems, including the
National Verifier, NLAD, and RAD, before submitting claims for
reimbursement, including performing the necessary checks to ensure the
household is not receiving duplicative benefits within the EBB Program;
(iv) de-enroll from the EBB Program any household it has a
reasonable basis to believe is no longer eligible to receive the
benefit consistent with Program requirements;
(v) comply with the EBB Program's document retention requirements
and agree to make such documentation available to the Commission or
USAC, upon request or any entities (for example, auditors) operating on
their behalf; and
(vi) agree to the Commission's enforcement and forfeiture
authority.
30. Timing of Approvals. Providers that have filed an application
satisfying the criteria outlined in the document will receive expedited
review. The Commission declines to adopt a deemed granted date or other
specific application review deadlines for the expedited review process.
Providers submitting applications by the priority application deadline
will receive a determination prior to the start of the EBB Program.
Accordingly, the Commission believes specific application review
deadlines are unnecessary. The Commission delegates to the WCB the
authority to create and administer an application review process that
will expeditiously consider provider applications meeting the criteria
described in the document. Additionally, all approved providers must
file an election with USAC to participate in the EBB Program.
31. Conditions and Requirements for Participating Providers. The
Commission finds there is authority within the CAA to require
participating providers to offer the EBB Program benefit throughout the
provider's approved service area. Additionally, the Commission finds
that use of existing USAC databases is the most efficient way to begin
the program quickly while ensuring adequate safeguards to prevent
waste, fraud, and abuse. Accordingly, the Commission authorizes USAC to
make available the appropriate databases to administer the EBB Program
including the National Verifier, NLAD, RAD, and LCS. The Commission
directs USAC to take the appropriate actions to update, modify, or
create the necessary USAC systems to administer the EBB Program in line
with the Commission's direction in the RO. The Commission further
delegates authority to the WCB and the Office of Managing Director ()
to supervise and coordinate with USAC all actions necessary to make
USAC databases and systems available for the EBB Program.
32. Public Interest Conditions of Approvals. The Commission adopts
its proposal to require providers to offer the EBB Program discount on
at least one service offering across all of its approved service areas
in each of the states in which it is approved to participate. The
Commission finds that such an approach is consistent with the CAA's
requirements regarding the establishment of the EBB Program to
reimburse providers for discounts provided to subscribers and supports
the public interest in ensuring subscribers have access to the EBB
Program. Further, the CAA grants the authority to the Commission to
determine whether a provider meets the requirements to participate in
the EBB Program. The Commission agrees with commenters that providers
should not have to extend service offerings into areas where they
currently do not exist and should not be mandated to offer a certain
quality of service for the reasons further explained in the following.
Requiring providers to expand or
[[Page 19538]]
otherwise deploy service offerings or existing programs into areas
where they currently do not exist increases provider burdens and delays
implementation for providers seeking to quickly offer EBB Program
services. Approved providers must offer at least one EBB Program-
reimbursed service to each of its eligible households within its
service area. However, the Commission also encourages participating
providers to make EBB Program support available for all its service
offerings for eligible households. Additionally, pursuant to the CAA,
participating providers must not deny an eligible household the ability
to participate in the EBB Program based on any past or present
arrearages with that provider, may not require an eligible household to
pay an early termination fee if the household enters into a contract
for its EBB Program-supported service and later terminates that
contract, and may not subject EBB Program-supported service to a
mandatory waiting period based on a household having previously
received service from that provider.
33. Notice to Consumers. Providers also play an important role in
ensuring that their customers are informed about the EBB Program at the
point of application and enrollment. Providers will have a direct
relationship with their customers, and as such, have a responsibility
to ensure that these customers have the information they need to make
an informed decision about the broadband service product they subscribe
to supported by the EBB Program. Accordingly, the Commission requires
participating providers to collect and retain documentation
demonstrating that, prior to enrolling an existing subscriber in the
EBB Program, the provider clearly disclosed to the household that the
EBB Program is a government program that reduces the customer's
broadband internet access service bill, is temporary in nature, that
the household will be subject to the provider's undiscounted rates and
general terms and conditions at the end of the program if they continue
to receive service, that the household may obtain broadband service
supported by the EBB Program from any participating provider of their
choosing, and that the household may transfer their EBB Program benefit
to another provider at any time. The provider must also retain
documentation demonstrating that, having received such disclosures, the
household provided affirmative consent to applying their EBB Program
benefit to the service received from the EBB Program provider. The
Commission believes that this disclosure and consent process will help
ensure that low-income households are aware of their choices in the EBB
Program without creating overly burdensome application requirements for
those households.
34. Use of the National Verifier, NLAD, RAD and other USAC
databases. The Commission finds that, consistent with the CAA's
provision allowing the Commission to use USAC's systems and services to
implement the EBB Program, participating providers will be required to
use certain USAC systems, such as the Lifeline NLAD and RAD, for
program administration and will be permitted to use the National
Verifier to determine household eligibility. The Commission adopts its
proposal to rely on the USAC-administered National Verifier, NLAD, RAD,
LCS, and other established processes for the EBB Program, including the
provider reimbursement process, call centers for program support,
provider and consumer outreach, and conducting program integrity
reviews. Accordingly, the Commission adopts the applicable part 54
rules that currently govern Lifeline provider interactions with these
USAC systems. Specifically, the Commission applies the requirements of
Sec. 54.400(i) and (o) of the Commission's rules defining the NLAD and
National Verifier; Sec. 54.404 of the Commission's rules outlining
carrier interactions with the NLAD; Sec. 54.406 of the Commission's
rules outlining enrollment agent activities and requiring registration
with the RAD; Sec. 54.410 of the Commission's rules where appropriate
in requiring the use of the National Verifier for eligibility
determinations; and Sec. 54.419 of the Commission's rules allowing the
use of electronic signatures. The Commission directs the WCB, and USAC
as directed by the WCB, to issue any further guidance or instruction
necessary to clarify the obligations of EBB Program providers when
using USAC databases and the administrative process established for the
EBB Program.
35. Safe harbor for participating providers. The CAA provides a
safe harbor provision stating that the Commission may not enforce a
violation of the CAA using sections 501, 502, or 503 of the
Communications Act, or any rules of the Commission promulgated under
such sections, if a participating provider demonstrates that it relied
in good faith on information provided to such provider to make any
verification required by subsection 904(b)(2) of the CAA. Section
904(b)(2) of the CAA imposes a duty on participating providers to
verify whether a household is eligible to receive the service and
connected devices supported by the EBB Program. The Commission
establishes that this safe harbor will apply to providers who utilize
the National Verifier for eligibility determinations or any alternative
eligibility verification process that has received approval from the
Commission consistent with the RO. The safe harbor applies to providers
who act in ``good faith'' with respect to these eligibility
verification processes. The Commission has extensive experience in
evaluating good faith actions of regulated entities in both negotiation
and cost reimbursement. In line with this experience, this safe harbor
applies to participating providers for eligibility determinations who
act in good faith based on information provided to them in the
household eligibility and enrollment process. Good faith will be
determined on the totality of circumstances surrounding the
participating providers actions or statements. Participating providers
that reasonably rely upon the documentation regarding eligibility
determinations provided by eligible households or eligibility
determinations from the National Verifier will be able to avail
themselves of this statutory safe harbor for purposes of their
compliance with the EBB Program rules.
36. Application and Election Procedures. A provider application to
participate in the EBB Program will provide information used to
determine whether the applicant has the legal and technical
qualifications to participate in the EBB Program. An applicant must
certify, under penalty of perjury, its qualifications. Non-ETC
providers must certify under penalty of perjury that the information
set forth in their application is true, accurate, and complete; they
understand and will comply with all statutory and regulatory
obligations described within the RO; and all terms and conditions and
other requirements applicable to using the National Verifier, NLAD,
RAD, and other USAC systems. Providing materially false information in
the application will disqualify a provider from participation in the
EBB Program. Eligibility to participate in the EBB Program is based on
an applicant's submission of required information and certifications. A
potential applicant must take seriously its compliance duties and
responsibilities and carefully determine before filing an application
that it is able to meet the obligations associated with EBB Program
support. An applicant's filing and subsequent approval does not
guarantee the applicant will receive EBB Program reimbursement. Each
participating provider must file all
[[Page 19539]]
required forms, information, and certifications with the Commission and
USAC to receive reimbursement.
37. A non-ETC provider seeking to participate in the EBB Program
must file the appropriate application, whether it is eligible for
expedited or automatic approval, electronically, whether filing for
automated or expedited approval, through the process announced by the
WCB following the adoption of the RO. An applicant provider bears full
responsibility for submitting an accurate, complete, and timely
application, and should thoroughly review the EBB Program participating
provider requirements, in addition to any subsequent guidance, to
ensure all required information is included in its application. An
applicant provider should be cognizant that submitting an application
(and any amendments thereto) constitutes a representation by the
certifying official that he or she is an authorized representative of
the applicant, that he or she has read the appropriate instructions and
certifications, and that the contents of the application, its
certifications, and any attachments are true and correct. Submitting a
false certification to the Commission may result in penalties,
including monetary forfeitures, license forfeitures, and ineligibility
to participate in future Commission auctions or competitions, as well
as criminal prosecution and/or liability under the False Claims Act.
38. Household Eligibility--Emergency Broadband Benefit Program
Eligible Households. The CAA directs that a household will qualify for
the EBB Program if at least one member of the household: (1) Meets the
qualifications for participation in the Lifeline program; (2) has
applied for and been approved to receive benefits under the free and
reduced price lunch program under the Richard B. Russell National
School Lunch Act or the school breakfast program under section 4 of the
Child Nutrition Act of 1966; (3) has experienced a substantial loss of
income since February 29, 2020 that is documented by layoff or furlough
notice, application for unemployment insurance benefits, or similar
documentation or that is otherwise verifiable through the National
Verifier or the NLAD; (4) has received a Federal Pell Grant under
section 401 of the Higher Education Act of 1965 in the current award
year; or (5) meets the eligibility criteria for a participating
provider's existing low-income or COVID-19 program, subject to approval
by the Commission and any other requirements deemed by the Commission
to be necessary in the public interest. A household is eligible for the
EBB Program regardless of whether any member of the household already
receives a Lifeline benefit. Further, a household is eligible for the
EBB Program ``regardless of whether any member of the household has any
past or present arrearages with a broadband provider.''
39. While the CAA provides a definition for ``eligible household,''
it does not define ``household'' itself, and the Public Notice, DA 21-
6, sought comment on using the definition of ``household'' provided in
[the] Lifeline rules for purposes of administering the EBB Program. The
Lifeline rules define ``household'' as:
any individual or group of individuals who are living together at
the same address as one economic unit. A household may include
related and unrelated persons. An ``economic unit'' consists of all
adult individuals contributing to and sharing in the income and
expenses of a household. An adult is any person eighteen years or
older. If an adult has no or minimal income, and lives with someone
who provides financial support to him/her, both people shall be
considered part of the same household. Children under the age of
eighteen living with their parents or guardians are considered to be
part of the same household as their parents or guardians.
The record contains broad consensus supporting the proposal to use
Lifeline's definition of household, and the Commission adopts this
proposal. Other commenters agreed, generally, without reference to the
Lifeline definition, that multiple people should be able to receive the
EBB Program benefit at a single address, so long as the people were
part of different households, similar to Lifeline's definition of a
household. Some commenters disagree with the Commission proposal to
permit one benefit per household, noting that often times households
will have multiple people requiring access to quality broadband and
devices, and each may need a benefit even though they are part of the
same household. While the Commission is cognizant of the varying needs
of households, it read the CAA to allow only a single benefit per
household. As a result, the Commission will use the Lifeline program's
definition of household and limit to each economic unit a single
monthly Emergency Broadband Benefit and single connected device
reimbursement. To help applicants determine if there is more than one
household at an address, the Commission made available for the EBB
Program a Household Worksheet to confirm whether an applicant is part
of an independent economic household from other existing EBB Program
subscribers. For providers conducting eligibility determinations
pursuant to an approved alternative verification process, the
Commission requires that such processes include measures to confirm
that a household, under the definition the Commission adopts within, is
not receiving more than one EBB Program benefit. The Commission also
directs USAC to conduct periodic program integrity reviews to confirm
that EBB Program subscribers located at the same address are in
compliance with these requirements.
40. Commenters also argue the EBB Program should support broadband
provided to multiple dwelling units at a single address, such as senior
and student living, mobile home parks, apartment buildings, and Federal
housing units, that receive service as part of a bulk billing
arrangement where the households ``are not directly billed for services
by their internet service provider, but instead pay a monthly fee for
broadband services to their landlord.'' Similarly, there may be
``entities such as school districts, health care providers, assisted
living or nursing facilities, and local governments who purchase
service `in bulk' for eligible households.'' The Commission concludes
on balance to make available the Emergency Broadband Benefit available
in these arrangements as long as the provider is approved in the EBB
Program and the household is eligible under the statute. These eligible
households are otherwise at risk of missing out on broadband services
supported by the EBB Program because they may not be directly billed by
the participating provider and may not have a typical relationship with
the participating provider. As a result, the Commission believes that
including support in the EBB Program for these eligible households will
increase the number of struggling households that are able to benefit
from the EBB Program. In situations where the support is passed through
as a discount off of the monthly price paid by the eligible household,
the eligible household must provide consent to the bulk purchaser/
aggregator or participating provider to apply their EBB Program benefit
to that service, and the participating provider must retain
documentation of such consent. The participating provider claiming
reimbursement for the service provided under the bulk arrangement must
retain documentation demonstrating that the amount claimed by the
provider from the EBB Program is fully passed through to the eligible
household as a discount
[[Page 19540]]
off of the monthly price that the eligible household otherwise would
have paid directly to the bulk purchaser. To ensure compliance with
these requirements, the Commission requires participating providers
offering service through such bulk billing arrangements to retain
documentation demonstrating the identity of the entity or entities
through which the discount was passed and the eligible households who
received the subsidized service. As an example, if a bulk purchaser
typically provides eligible households broadband service for $30 a
month, each eligible household that receives such service must provide
consent to the bulk purchaser or participating provider that the
participating provider can seek reimbursement from the EBB Program for
the $30 a month service. The participating provider would need to
retain documentation of such consent, as well as documentation that the
$30 that the participating provider is seeking reimbursement for will
be fully passed through to the eligible household. As a result of the
discount, the bulk purchaser would be paying $30 less to the
participating provider, and the eligible household would be receiving
free broadband service and not paying anything to the bulk purchaser.
In cases where the household does not pay a fee for the service, either
to the provider or a bulk purchaser/aggregator, but the fee is paid by
another entity, the service cannot be claimed for EBB Program support.
41. The Public Notice, DA 21-6, sought comment on whether there
should be a limitation on the number of benefits per address regardless
of the number of households. The Commission concludes that the
Commission will not impose any limitations inconsistent with the
Lifeline definition of a ``household.'' The Commission also sought
comments on whether additional enrollments at a single address require
a separate, more rigorous verification process. Some commenters
cautioned against using a separate process, and the Commission finds
that the Household Worksheet as used in Lifeline will help protect
against duplicate benefits, while not being overly burdensome to
applicants. The Public Notice, DA 21-6, also sought comment on whether
an applicant should certify that no other person in the economic
household is receiving a benefit. The Commission finds that the
Household Worksheet requires an applicant to confirm their
understanding of the one-per-household rule and that the person will
lose their benefit if they break the rule, and the Commission will not
need any further certification from an EBB Program subscriber regarding
more than one benefit at a household. The Commission further directs
USAC to apply its existing periodic Lifeline program integrity reviews
for addresses with an unusually high number of subscribers to addresses
enrolled in the EBB Program as well.
42. The WCB also sought comment on whether the EBB Program should
adopt the same NLAD processes used for Lifeline. After consideration of
the record, the Commission concludes that the Commission should use the
NLAD for a variety of functions for the EBB Program. The CAA, for
example, contemplates the use of the NLAD by participating providers
for purposes of determining whether a household is an eligible
household. The Public Notice, DA 21-6, sought comment on a proposal to
require all participating providers to track enrollments of eligible
households in the EBB Program in the NLAD to prevent duplicative
support. There was broad support in the record supporting the proposal,
and the Commission adopts it. Further, the Commission finds that all
providers, including those that use an approved alternative
verification process or verify eligibility via a school as discussed in
the following, must enroll their subscribers in the NLAD prior to
claiming reimbursement for those subscribers, to prevent duplicative
support between providers.
43. Finally, the Commission observes that households are eligible
to participate in both the EBB Program and the Lifeline program, either
on the same or different services, and the Commission directs USAC to
enable the NLAD to allow an eligible household to have separate
subscriber IDs for the EBB Program and Lifeline and to associate such
subscriber IDs with a respective Lifeline provider or Emergency
Broadband Benefit provider, as applicable. If a household is enrolled
only in the Lifeline program, then it will only have a Lifeline
subscriber ID and be associated with a Lifeline provider. If a
household is enrolled only in the EBB Program, then it will only have
an EBB Program subscriber ID and be associated with an EBB Program
provider. If a household is enrolled in both the Lifeline program and
the EBB program, then it will have separate Lifeline and EBB Program
subscriber IDs, and each of those subscriber IDs will be associated
with their respective Lifeline or EBB Program provider (in some cases,
a household may choose the same provider for both the Lifeline program
and the EBB Program).
44. National Verifier and NLAD Eligibility Determination. The CAA
provides that participating providers can use one of three methods to
verify eligibility for the EBB Program. In the following, the
Commission discusses the first method of verification, use of the
National Verifier and NLAD. The CAA allows a participating provider to
use the National Verifier and NLAD to confirm applicants' eligibility.
The Commission finds that allowing participating providers to use the
National Verifier will help to stand up the EBB Program quickly and
provide administrative efficiency, while also serving as an effective
tool to prevent waste, fraud, and abuse. The Commission directs USAC to
make available an EBB Program consumer portal and application form
leveraging the existing National Verifier infrastructure. Commenters
also requested that the Commission enables a service provider portal or
eligibility check application programming interface (API) so that
providers can help consumers with the application process. The
Commission agrees that these additional application methods would
enable providers to help enroll consumers, and the Commission directs
USAC to make available these other application methods as well if
feasible within the overall timeframe of the EBB Program.
45. Generally, the National Verifier is a system of systems, with
computer connections to state and Federal eligibility databases that
can automatically check and confirm a household's eligibility
electronically, followed by manual review of eligibility documentation
for any applicants whose eligibility cannot be verified using an
automated data source. To assist those participating providers that
want the National Verifier to be a one-stop shop for determining
eligibility for the EBB Program and do not to conduct their own
verification processes, the Commission directs USAC to enable the
National Verifier to verify three additional eligibility bases that are
required by the CAA for the EBB Program: (1) Participation in free and
reduced lunch program under the Richard B. Russell National School
Lunch Act or the school breakfast program under section 4 of the Child
Nutrition Act; (2) a substantial loss of income since February 29,
2020; and (3) receipt of a Federal Pell Grant under section 401 of the
Higher Education Act of 1965 in the current award year. The CAA
contemplates substantial loss of income and Federal Pell Grant
participation would be verified by the National Verifier where
possible, and commenters agreed with adding those
[[Page 19541]]
eligibility bases to the National Verifier. Commenters also suggested
that participation in school breakfast or lunch should also be added to
the National Verifier, and the Commission agrees. Where possible, the
Commission directs USAC to enable database connections through computer
matching agreements with the respective government entities for those
programs. Where not possible, the Commission directs USAC, under the
direction of the WCB, to allow eligible households to submit
documentation so that USAC can manually process the eligibility
information for inclusion in the National Verifier. The Commission
delegates authority to the WCB to direct USAC in these efforts and to
provide any additional interpretations of section 904 necessary for
implementing use of the National Verifier for the EBB Program. Unless
and until such database connections have been enabled, USAC will verify
program eligibility based on manual documentation review, consistent
with the guidelines discussed in the following.
46. Where the National Verifier cannot verify eligibility through
any automated data sources, the Commission delegates to the WCB to
direct USAC to establish documentation criteria for the three added
eligibility programs. While the Consolidated Appropriations Act
identified a few types of documentation to demonstrate income loss,
such as ``layoff or furlough notice, application for unemployment
benefits, or similar documentation,'' the Commission sought comment on
other types of documentation. Some commenters argued that other
documentation for substantial loss of income should be construed
broadly, or that the Commission has kept in mind the widespread loss of
income. Consistent with the Commission's clarification of ``substantial
loss of income since February 29, 2020,'' discussed in the following,
any documentation must clearly show loss of a job, including due to a
furlough, that began after February 29, 2020, however documented, as
well as the household's annual income for 2020. In addition, many
commenters suggested acceptable documentation for receipt of a Pell
Grant under section 904(a)(6)(D) of the CAA, including: (1) Written or
electronic confirmation from a student's Institution of Higher
Education that the student has received a Pell Grant for the current
award year; (2) a student's official financial aid award letter
documenting the amount of a student's Pell Grant award received for the
current year; (3) a copy of a student's paid invoice that clearly
documents the student's receipt of a Pell Grant during the current
award year; and (4) a copy of a student's Student Aid Report that
clearly documents the student's receipt of a Pell Grant during the
current award year. USAC should consider these documents when
establishing documentation criteria for receipt of a Pell Grant.
47. The CAA allows that current Lifeline enrollees are
automatically eligible for the EBB Program based on their Lifeline
eligibility. Many commenters suggested that customers already enrolled
in Lifeline should not have to also apply for the EBB Program. The
Commission finds that current Lifeline households will not need to
apply for the EBB Program or submit new eligibility documentation if
they are already enrolled in NLAD. Current Lifeline enrollees, however,
must still opt-in or affirmatively request enrollment in the EBB
Program. As explained in the document, providers must collect and
retain documentation demonstrating that, prior to enrolling an existing
Lifeline household in the EBB Program, the provider made clear
disclosures regarding the EBB Program benefit and the consumer's
choices within the EBB Program, and the household provided affirmative
consent to applying their Emergency Broadband Benefit to the service
received from the EBB Program provider.
48. In the Lifeline program, potential households are required to
provide the last four digits of a Social Security Number to enroll in
National Verifier and NLAD to verify subscriber identity. Some
commenters, however, argue that the CAA does not require a Social
Security Number for enrollment in the EBB Program, and that if the
Commission imposes a Social Security Number requirement, many of the
neediest households may not be able to enroll because they may not have
a Social Security Number, may have difficulty accessing data, or fear
providing a Social Security Number. Commenters suggested alternative
forms of identification instead of a Social Security Number, such as an
Individual Taxpayer Identification Number (ITIN), Government ID,
current utility bill, or current employment photo identification badge.
While the Commission permits a consumer to use the last four digits of
a Social Security Number during enrollment, the Commission was
persuaded that accepting only a Social Security Number may prevent
eligible households from enrolling in the EBB Program. Applicants who
choose not to provide the last four digits of their Social Security
Number or cannot be verified using a Social Security Number may verify
their identity using a variety of other types of identity
documentation, including a government-issued ID, passport, driver's
license, or Individual Taxpayer Identification Number documentation.
The Commission directs USAC to work with the WCB to establish approval
criteria for acceptable identity documentation. In developing that
criteria, USAC should consider the methods used to verify identity by
providers with existing low-income programs.
49. The Public Notice, DA 21-6, proposed that eligible households
will be required to interact directly with National Verifier as is
currently required for the Lifeline benefit, and many commenters
supported this proposal. The Commission adopts this proposal and will
require households to interact directly with National Verifier. Some
commenters suggested that the Commission permit service providers to
submit verification requests through the National Verifier on behalf of
households even if the households consumers are not physically present
with the service provider, while others were concerned that consumers
may not be able to access National Verifier as they do not have
broadband access, and places such as libraries or community centers
that typically offer broadband access are closed or operating in a
limited capacity due to the pandemic. Although allowing service
providers to remotely submit information on behalf of consumers may
benefit some consumers, the Commission finds that the risk to program
integrity and potential for waste, fraud, and abuse outweighs the
benefit. Further, households that do not have internet access to apply
electronically through the National Verifier may still apply for the
EBB Program using a paper application. In addition, verification
through the National Verifier is not the only way for households to get
verified in the EBB Program, as service providers may have their own
approved alternative verification processes to enroll households, while
other households may be qualified by a provider through verification
with a school. Given these alternatives, the Commission thought that
permitting providers to sign up consumers remotely was necessary.
50. The CAA permits households with members who qualify for free
and reduced-price school lunch or the school breakfast program to
enroll in the EBB Program. As a result, the Commission permits
qualifying
[[Page 19542]]
households to apply for the EBB Program and will have USAC enable the
National Verifier to approve the household based on participation in
free and reduced lunch program or the school breakfast program. In the
Public Notice, DA 21-6, the WCB sought comment on the reduced or free
school breakfast or lunch eligibility from section 904(a)(6)(B) of the
CAA and how to treat households with students enrolled in the EBB
Program in schools or school districts that participate in the USDA
Community Eligibility Provision. Participation in the Community
Eligibility Provision allows the nation's highest-poverty schools and
school districts to serve breakfast and lunch at no cost to all
enrolled students without needing to collect individual household
applications. Thus, households with a student enrolled in a school or
school district participating in the Community Eligibility Provision
will not have ``applied for and been approved to receive'' school lunch
or breakfast programs but are still beneficiaries of these programs.
Many commenters support that households with children enrolled in
largely low-income schools or school districts that participate in the
Community Eligibility Provision should be eligible for the emergency
broadband benefit under section 904(a)(6)(B) of the CAA despite not
individually applying for assistance. The Commission agrees with these
commenters.
51. Some commenters argue that accepting participation in the
Community Eligibility Provision would be overinclusive. On balance, the
Commission finds that the risk of including otherwise ineligible
households is outweighed by the importance of making the EBB Program
accessible and removing barriers to participation. Indeed, because the
schools that participate in the Community Eligibility Provision are the
among the highest-poverty schools in the nation, the Commission
believes that including households with students that attend those
schools efficiently targets low-income households and excluding such
schools would counterintuitively effectively remove the National School
Lunch Program as a qualifying program for households in largely low-
income schools and school districts. The Commission also recognizes
that allowing use of the Community Eligibility Provision as a
qualifying program limits disclosure to less sensitive information of
households. While the CAA does not provide a specific time frame for
when the member of the household should have been approved for benefits
under the free and reduced price lunch or breakfast programs, the
California Emerging Technology Fund proposed that the Commission should
allow proof of enrollment in these programs for either the 2019-2020
and 2020-2021 school year, given that many schools have been closed
since mid-March 2020 due to the pandemic and students may not be
enrolled in the programs in the current school year. The Commission
agrees with this proposal. The Commission therefore accepts for
eligibility determination purposes a household's confirmation that the
household has dependent children who participated or are participating
in the Community Eligibility Provision school breakfast or free and
reduced-price school lunch program in the 2019-2020 or 2020-2021 school
year. The Commission directs USAC to develop a process for such
eligibility determinations that has the capability to, after a
household provides the name of a dependent child's school,
automatically check for CEP participation against the nationwide lists
maintained by U.S. Department of Agriculture and/or the Food Research &
Action Center. The Commission also directs USAC to conduct program
integrity reviews of a sample of households who enrolled in the EBB
Program using this eligibility criteria to confirm EBB Program
compliance.
52. The Public Notice, DA 21-6, also sought comment on whether a
school's participation in the E-Rate program would facilitate any
needed verification. The Commission receives some comments supporting
the idea that a school participating in E-Rate should be sufficient to
confirm household eligibility for its students' households. However,
schools can participate in E-Rate even if less than 1% of its students
are eligible for the National School Lunch Program. As such, the
Commission did not find that a school's participation in E-Rate alone
would provide any help as to the eligibility of households that have
students enrolled in that school, and the Commission declines to use
participation in E-Rate as a basis of eligibility for qualifying for
school lunch or breakfast.
53. Households with members who have experienced a substantial loss
of income are also qualified to enroll in the EBB Program according to
the CAA. The WCB sought comment on how to define a ``substantial loss
of income since February 29, 2020'' in section 904(a)(6)(C) of the CAA,
and whether households with an income above a certain level should be
excluded from the EBB Program. Although the Commission receives
comments that the Commission should clearly define ``substantial loss
of income,'' only a few commenters provided criteria for the Commission
to consider. Consistent with the requirements of the CAA, the
Commission clarifies that a ``substantial loss of income'' includes the
loss of a job, including a furlough, that is documented by a layoff or
furlough notice, application for unemployment insurance benefits, or
similar documentation. The Commission permits households with such
members to enroll in the EBB Program through the National Verifier. To
target eligibility to households most in need, the Commission agrees
with commenters that the Commission imposes a household income
limitation, and consistent with the criteria established by the Centers
for Disease Control to halt evictions, a household that has suffered a
job loss must not have had an income in 2020 greater than $99,000 for
single-filers and $198,000 for joint filers to be eligible for the EBB
Program.
54. The CAA also permits eligibility into the EBB Program if a
member of a household has received a Federal Pell Grant under Section
401 of the Higher Education Act of 1965 in the current award year.
Commenters supported and welcomed the inclusion of receipt a Pell Grant
as an eligibility basis for the EBB Program. USTelecom has asked for
clarification on what constitutes a household for purposes of a Pell
Grant, given that students that are awarded Pell Grants are typically
living away from parents, yet that student may be dependent on parental
support. The Commission clarifies that consistent with the EBB
Program's adoption of the Lifeline definition of ``household,'' people
are part of the same household if they share income and expenses and
live at the same address. If the recipient of a Pell Grant lives at a
separate address from the recipient's parents, the recipient and the
family are separate households, and only the recipient of the Pell
Grant would be eligible for the EBB Program using Pell Grant
eligibility.
55. The CAA also allows into the EBB Program a household where at
least one member meets the eligibility criteria for a participating
provider's existing low-income or COVID-19 program. For eligibility
under this provision, commenters suggested that providers should be
able to continue to operate the EBB Program with the existing
eligibility requirements. Although this provision of the CAA suggests
the Commission could impose other eligibility requirements on these
existing programs that the Commission
[[Page 19543]]
considers necessary for the public interest, given the emergency nature
of the EBB Program, the Commission declines to modify the programmatic
or income eligibility requirements of any provider's existing low-
income or COVID-19 program for purposes of eligibility in the EBB
Program. Some commenters suggested that the Commission work with
providers to set a baseline eligibility for the provider's existing
low-income or COVID-19 program. The Commission similarly believes
imposing baseline criteria on all existing low-income or COVID-19
programs would be disruptive to those programs and cause undue burden
on the providers at a time when it is essential those programs continue
to operate efficiently. Finally, consistent with the CAA's allowance
that a broadband provider that had an established a low-income or
COVID-19 program as of April 1, 2020 shall be automatically approved as
a participating provider, and to ensure that such eligibility
determinations are made pursuant to well-established verification
mechanisms, the Commission finds that a participating provider's
existing low-income or COVID-19 program must have been available as of
April 1, 2020, and any eligibility criteria for such programs must have
been established as of April 1, 2020, for use of that program as a
qualifying program under section 904(a)(6)(E) of the CAA.
56. Some commenters suggested that although the Commission does not
allow Lifeline applicants to self-certify, the Commission should allow
EBB Program applicants to self-certify given the emergency nature of
the EBB Program. While the Commission recognizes that self-
certification could in some circumstances lessen the burden on some
households, the Commission declines to allow self-certification. Self-
certification presents a sizable risk of waste fraud and abuse in the
EBB Program. Further, the Commission finds the CAA contemplates
documentation and verification to confirm eligibility and permitting a
household to enroll in the EBB Program while only self-certifying to
eligibility would run contrary to these statutory requirements. And
given the many bases of eligibility through which a household is able
to enroll in the EBB Program and different avenues for verification,
the Commission finds that these ample opportunities make self-
certification far less urgent.
57. Participating Provider Alternative Verification Process. The
CAA also allows a participating provider to ``rely upon an alternative
verification process of the participating provider,'' subject to
certain conditions. As set out by the CAA, the ``participating provider
submits information as required by the Commission regarding the
alternative verification process prior to seeking reimbursement,'' and
the Commission has seven days after receipt of the information to
notify the participating provider if the participating provider's
``alternative verification process will be sufficient to avoid waste,
fraud, and abuse.''
58. The Public Notice, DA 21-6, sought comment on what information
should be provided to the Commission concerning the alternative
verification process, and the criteria the Commission should consider
in determining whether a provider's alternative verification process is
sufficient to avoid waste, fraud, and abuse. Some commenters suggested
that the Commission create a model ``alternative verification process''
for participating providers to choose, while others suggested that the
Commission automatically approve the verification processes for
providers that have low-income programs that are not provided with
government assistance and instead subsidized by the provider, as those
providers already have strong incentives to ensure that only qualified
customers take advantage of those programs. Other commenters proposed
that local governments may act as the alternative verification process
for providers. The Navajo Nation Telecommunications Regulatory
Commission suggested that the Commission should work with providers who
have worked in Indian Country to get their input as to verification,
given the challenge that Lifeline has in verifying consumers in Indian
Country. The Commission also received comments that any alternative
verification process should be allowed to have different household
eligibility definitions, but the Commission finds that it cannot expand
eligibility beyond what the Consolidated Appropriations Act authorizes.
The Commission notes, however, that under section 904(a)(6)(E) of the
CAA, a broadband provider's eligibility criteria for their existing
low-income or COVID-19 program may provide eligibility bases other than
those explicitly listed in sections 904(a)(6)(A)-(D) of the CAA.
59. Regardless of how a provider seeks or receives authorization to
participate in the EBB Program (as an ETC, as a non-ETC with expedited
approval, or as a non-ETC with automatic approval), a provider must
submit and receive WCB approval of its alternative verification process
prior to using such a process to enroll consumers in the EBB Program.
The Public Notice, DA 21-6, proposes that the Commission delegates to
the WCB authority to review and approve (or deny) alternative
verification processes, and the Commission adopts this proposal. The
Commission directs the WCB to develop a process for submitting proposed
alternative verification processes and to review and approve or reject
such submissions within the seven days required by the CAA. For ETCs,
the Commission directs such providers to submit to the WCB requests for
approval describing their alternative verification process after
submitting their notice of election to USAC. The ETC's request for
approval of its alternative verification process must still go through
the approval process required by section 904(b)(2)(B) of the CAA and be
approved by the WCB before the ETC can begin providing EBB Program
service. For providers seeking a non-ETC approval from the WCB, the
Commission directed such providers to submit requests for approval
describing their alternative verification process along with their
application to participate in the EBB Program, where possible. Although
the provider application to participate may be granted automatically if
the provider qualifies for such a grant, the provider's request for
approval of its alternative verification process must still go through
the approval process required by section 904(b)(2)(B) of the CAA and be
approved by the WCB before the provider can begin providing EBB Program
service.
60. The Commission also agrees with commenters that non-ETCs that
are automatically approved as a participating provider based on having
an established low-income or COVID-19 program as of April 1, 2020
pursuant to section 904(d)(2)(B) of the CAA should also have the
alternative verification processes for those programs automatically
approved. The CAA not only provides an automatic approval for such
providers but also deems as eligible for the EBB Program households
with at least one member that meets the eligibility criteria for a
participating provider's existing low-income or COVID-19 program. The
Commission finds Congress' heavy reliance on these existing aid
programs instructive. The Commission is persuaded that such providers
have strong incentives to ensure that only qualified customers take
advantage of a provider's own low-income or COVID-19 program, as these
programs are currently subsidized by the provider. Any such
automatically approved provider must still submit a
[[Page 19544]]
description of their alternative verification process to the WCB.
61. The Public Notice, DA 21-6, proposed to allow alternative
verification methods that are at least as stringent as methods used by
the National Verifier, and the Commission received comment agreeing
with this proposal. To be at least as stringent as the National
Verifier, information collected by participating providers in the
alternative verification process should at least include the
applicant's: (1) Full name, (2) phone number, (3) date of birth, (4)
email address, (5) home and mailing addresses, (6) name and date of
birth of the benefit qualifying person if different than applicant, (7)
basis for inclusion in program (e.g., SNAP, SSI, Medicaid, school
lunch, Pell Grant, income, provider's existing program, etc.) and
documentation supporting verification of eligibility, and (8)
certifications from the household that the information included in the
application is true. The provider must describe the processes it (or a
third-party) uses to verify the requested preceding information,
including the applicant's identity and eligibility, and as required by
the CAA, the provider must explain why the provider's alternative
process will be sufficient to avoid waste, fraud, and abuse. For
example, Comcast requires consumers to submit an application to obtain
proof of identification and establish eligibility for its internet
Essentials program, which is open to individuals in a high poverty area
or through participation in a government assistance program. Comcast
cross-references information from the application against internal
databases populated with publicly available data from government
sources to confirm participation in National School Lunch Program,
residence at a public housing address, or residence in high poverty
area, and if eligibility cannot be verified through internal databases
or based on participation in a different government program, Comcast
requires documentation of proof of participation and the documentation
is reviewed by a vendor. The provider must also explain how it trains
its employees and agents to prevent ineligible enrollments, including
enrollments based on fabricated documents. If the alternative
verification process fails to include any of the preceding information
in the document, the provider should explain why it thinks such
information is not necessary to prevent waste, fraud, and abuse. If a
provider without an established low-income program seeks approval of an
alternative verification process, it must explain why it proposes to
use an alternative verification process instead of the National
Verifier eligibility determinations. The Commission declines to issue a
model alternative verification process, and the Commission further
declines to approve any of the other alternative verification processes
submitted by commenters.
62. The Public Notice, DA 21-6, also sought comment on
documentation and records providers should be required to keep
complying with audit requirements. Commenters suggested that the
providers should at least collect and retain documentation of the
applicant's identity and eligibility criteria. The Commission requires
that providers keep all documentation provided to them from the
applicant used to make eligibility determinations, for as long as the
applicant receives the Emergency Broadband Benefit, and also for no
less than the six full calendar years following the termination of the
EBB Program. For example, if a subscriber enrolls in the EBB Program
through participation in the school breakfast or lunch program or the
Pell Grant, retained documentation should include the name of the
school and school year for which the subscriber has claimed
eligibility. This requirement is similar to the document retention
requirement used in the Lifeline program but is long enough to cover
the statute of limitations under the False Claims Act laws for Federal
wire fraud and ensures that documentation is available to confirm
program compliance. Commenters also agree with the proposal in the
Public Notice, DA 21-6, that providers identify the alternative
verification process used when enrolling a household in the NLAD, and
the Commission adopts that proposal. The Commission also directs USAC
to conduct periodic program integrity reviews to ensure that
subscribers enrolled through a provider's alternative verification
process are eligible for the emergency broadband benefit.
63. School-Based Eligibility Verification. The CAA also allows a
participating provider to rely on a school to verify eligibility under
the free and reduced price school lunch or school breakfast program.
The Public Notice, DA 21-6, proposed that a provider identify the
school it relied on when enrolling a household in NLAD, and commenters
agreed. The Commission also sought comment on what other information a
participating provider should be required to submit or maintain.
Commenters were concerned about the ability of schools to provide
information about households and individuals enrolled in the EBB
Program without violating data privacy and confidentiality laws. The
Commission also received a comment suggesting that the Commission
create a standard protective order or consent form that providers can
use. One commenter was also concerned that there may be significant
administrative burdens and staffing requirements placed on schools if
they are required to verify students, particularly if schools have a
large number of students that qualify. One commenter estimated that it
could take a school district 192 hours a month to process income
verification requests from service providers. The Commission shares
those concerns and was sympathetic to the burdens this method could
impose on schools, especially during the pandemic when so many school
administrators and teachers are struggling with the challenges of safe,
in-person education, supporting students in need, and distance
learning. The Commission concludes that, to comply with the
requirements of the CAA, for a participating provider to rely on
information provided by a school when enrolling a household in the EBB
Program, the participating provider must certify in NLAD that it relied
on information provided by a school for eligibility verification and
that it retains documentation indicating: (1) The school providing the
information, (2) the program(s) that the school participates in, (3)
the household that qualifies (and qualifying student(s)), (4) and the
program(s) the household participates in. The Commission believes this
permits access to the EBB Program for student households through the
school and also minimizes the burden on the school, especially in light
of the relevant privacy and consent requirements. At the same time,
households with students can also verify eligibility for and enroll in
the EBB Program without relying upon schools, and will be able to use
on any of the qualifying criteria for eligible households set forth in
the CAA. And while the Commission declines to create a standard
protective order or consent form, it recognized that it may be a
beneficial tool for consumers and providers, and delegate to the WCB
the authority to create such a form if it is needed for the National
Verifier's processes.
64. Covered Services and Devices. The COVID-19 pandemic continues
to challenge Americans' access to and reliance on broadband connections
as households try to adapt and ensure that they have the tools to
succeed in their
[[Page 19545]]
everyday tasks, including telework, telehealth, telemedicine, and
virtual learning. The CAA permits, in the EBB Program, eligible
households to receive a discount off the cost of broadband service and
certain connected devices, and participating providers can receive a
reimbursement for such discounts during the emergency period.
65. Services. In describing the services eligible for EBB Program
support, the CAA defines ``internet service offering'' as a broadband
internet access service provided to a household, and defines
``broadband internet access service'' with the meaning given to that
term in Sec. 8.1(b) of the Commission's rules. The Consolidated
Appropriations Act further requires that an internet service offering
must have a ``standard rate'' in order to receive the emergency
broadband benefit, and that standard rate equals the ``the monthly
retail rate for the applicable tier of broadband internet access
service as of December 1, 2020, excluding any taxes or other
governmental fees.'' The Commission interprets this requirement to mean
that an internet service offering eligible for EBB Program support must
have a retail rate that was on offer as of December 1, 2020 and that,
but for the application of the EBB Program discount, would have been
charged to the customer on a monthly basis. The Commission interprets
the CAA's reference to a ``monthly retail rate'' to exclude broadband
service products that are priced based primarily on the data allowance
of the product (for example, a purchase 1 GB of data for $5.00) and are
sold separate from a monthly recurring service plan). This requirement
also helps to focus limited funding toward more robust broadband
service offerings to maximize the EBB Program's benefits for enrolled
households. Additionally, the Commission clarifies that the CAA's
application of the emergency broadband benefit as a discount off of the
monthly retail rate charged to the subscriber means that service plans
that are already offered with no fee to the end user--for example, as a
result of Lifeline program support or other benefit programs--are not
eligible for additional or duplicative support from the EBB Program. At
the same time, the CAA does permit plans where the end result is no fee
being assessed on the household after the application of the monthly
benefit.
66. Some parties asked that the Commission require participating
providers to make the emergency broadband benefit available on all of
their service offerings. On balance, the Commission believes that
dictating the required offerings in a temporary program will discourage
participation and result in less consumer choice than would otherwise
be available if it provided participating providers with more
flexibility. However, the Commission notes that participating providers
may apply the emergency broadband benefit to any of their eligible
offerings, including promotional offerings that were available as of
December 1, 2020. Specifically, pursuant to the CAA, participating
providers are required to make available to eligible households a
monthly discount off the standard rate for an internet service offering
and associated equipment, up to $50.00 per month. For households
residing on Tribal lands, the monthly discount may be up to $75.00 per
month. Participating providers will receive reimbursement from the EBB
Program for the discounts provided.
67. The Commission provides further clarity on the internet service
offerings and associated equipment eligible for reimbursement. Internet
service offering is defined as ``broadband internet access service
provided by such provider to a household, offered in the same manner,
and on the same terms, as described in any of such provider's offerings
for broadband internet access service to such household, as on December
1, 2020.'' Accordingly, providers who participate in the EBB Program
are only eligible to receive reimbursement for offerings that were
available on and include the same terms as those available as of
December 1, 2020. The majority of commenters do not oppose the service
offering date of December 1, 2020, but some commenters explain that the
December 1, 2020 date should not limit the ability of providers to
offer upgrades on top of such existing service offerings to consumers.
The Commission agrees and finds that participating providers may offer
free enhancements of service quality elements of a discount-eligible
internet service offerings but may not increase the price charged for
that offering. The Commission believes the December 1, 2020 restriction
is best understood as a method of avoiding arbitrage opportunities and
waste in the EBB Program by allowing unscrupulous providers to take
advantage of the increased subsidy available. By referring to offerings
that were available prior to the enactment of the law, the CAA prevents
participating providers from increasing prices above the usual market
rate for their services for the purpose of claiming the maximum
reimbursement amount. Interpreting that restriction to also restrict
the ability of participating providers to offer free upgrades to the
quality of the broadband services provided to eligible households,
however, such as speed, data caps, and other non-price elements, would
be contrary to the law's purpose of supporting robust modern broadband
service during an unprecedented pandemic. The Commission therefore
permits provider offerings that were available on and include the same
terms as those available as of December 1, 2020 to include free
enhancements in quality with respect to such non-price elements.
68. Minimum Service Standards. The Commission declines to apply
minimum service standards to covered services for the EBB Program. The
Commission finds that qualifying internet service offerings must
include a broadband connection (as defined in section 904(a)(9) of the
CAA)--fixed or mobile--that permits households to rely on these
connections for the purposes essential to participating in society
during the pandemic, such as telework, remote learning, and telehealth.
A majority of commenters supported this approach, explaining that
broadband speeds should be sufficient for telework and distance
learning, and discount-eligible internet service offerings should
feature speeds comparable to those offered to market-rate customers.
The Commission also recognizes that Congress did not limit the discount
to lower-cost broadband plans. Consumers purchasing discounted services
under the EBB Program qualify for the same protections as those
purchasing services at standard rates. Thus, providers that offer
discounted broadband services pursuant to the EBB Program rules, either
on a standalone or bundled basis, must comply with the same consumer-
protection requirements that apply to the corresponding services that
they offered on or before December 1, 2020. Thus, providers must
disclose accurate information regarding the performance
characteristics, commercial terms, and other features of their
discounted broadband services to enable consumers to make informed
choices regarding the purchase and use of such services.
69. Some commenters also suggested that participating providers
should offer services that meet the Commission's definition of
broadband at 25/3 Mbps or encourage the Commission to require high-
capacity, affordable broadband service. Given the emergency nature of
the EBB Program and the vital need to maximize consumer choice and
benefits in a short timeframe, the Commission was not persuaded by such
arguments. By administering the program within the definition of
``internet service offering,'' and permitting non-ETCs to
[[Page 19546]]
participate, the Commission obviates the need for lengthy service
obligations and the risk of slow speeds and maintain consumer choice--
allowing consumers to select offerings that work best for their
household--as well as permit participating providers to serve eligible
households as quickly as possible during the emergency period. The
Commission further declines to apply the Lifeline program's minimum
service standards to covered services for the EBB Program. The
Commission recognizes that some commenters encouraged it to use
Lifeline's minimum service standards or the Lifeline program itself as
a starting point. Indeed, the Commission understands that low-income
consumers must have access to reliable broadband connections vital for
basic education, health care, remote work, disability access and public
safety, but the CAA does not indicate Congressional intent that the
Commission applies Lifeline's minimum service standards for the EBB
Program. The Commission is supported in this decision by the measures
adopted that clarify that participation in the EBB Program does not
preclude the same household from participating in the Lifeline program
or other aid programs offered at the state and local level as long as
participants meet the requirements for such programs. Even though the
EBB Program is an emergency, temporary program, it will operate
concurrently with Universal Service Fund programs and other existing
programs at the state and local levels so eligible consumers can choose
a broadband connection that meets their connectivity needs.
70. The Commission, however, anticipates that providers that elect
to participate in the EBB Program that are already designated as ETCs
through their participation in other Universal Service Fund programs,
particularly the Lifeline program, will draw from that experience and
offer similar or upgraded broadband services. In the EBB Program, the
Commission anticipates that existing ETCs will continue to offer
quality and innovative services, and encouraged other broadband
providers (non-ETCs) to offer service standards that promote robust
broadband access to vital services.
71. Bundled Service Offerings. The Commission also recognizes that
participating providers in the EBB Program may offer qualifying
broadband service combined with other services, otherwise known as
bundled service offerings (e.g., voice, data, texting, associated
equipment). While the CAA does not explicitly direct the Commission
regarding how to handle bundled broadband service offerings, the
Commission finds if such bundled service options were offered ``in the
same manner, and on the same terms'' on December 1, 2020, participating
providers should be able to apply the monthly discount of up to $50 per
month, or up to $75 for Tribal lands, to the entire bundled service.
The Commission draws this conclusion from record support that viewed
such offerings as enhancing flexibility between participating providers
and consumers. Also, the Commission draws from its experience with the
Lifeline program that participating providers in the EBB Program,
including ETCs that are already adept at applying such a discount in
the Lifeline program to bundled services, offer bundled service
offerings to address consumer demands outside of any Commission
regulation. In contrast to the record support for permitting EBB
Program reimbursement for broadband bundled services that include voice
and/or text messaging, there was not similar support for permitting
reimbursement for the full price of broadband bundled services that
include video service. The Commission finds that permitting EBB Program
reimbursement for the full price of a bundle that includes video
service is not contemplated by the statute and was not necessary to
ensure that consumers in the EBB Program have robust service choices,
and the Commission therefore does not permit support for such bundles
with video service.
72. The Commission finds that the CAA's requirement that the
service offerings be offered ``in the same manner'' as they were on
December 1, 2020, authorized the Commission to support both standalone
broadband service offerings and broadband service offerings bundled
with voice, text messaging, and/or associated equipment. For many fixed
and mobile internet service offerings, it is common to offer broadband
service as part of a bundle without separating out the price of the
broadband component and its associated equipment. By permitting
participating providers to offer broadband in those same bundles in the
EBB Program, the Commission permits providers to make available
internet service offerings ``in the same manner'' as they were on
December 1, 2020.
73. Associated Equipment and Other Customer Premises Equipment. The
CAA requires participating providers to make available to eligible
households a monthly discount off the rate for an internet service
offering and associated equipment, up to $50.00 per month, and on
Tribal lands, the monthly discount may be up to $75 per month. In the
Public Notice, DA 21-6, the WCB also sought comment on how to define
associated equipment and whether that undefined term should include,
for example, the monthly rental costs for modems and/or routers that
are offered as part and parcel of an internet service offering. The
record overwhelmingly supported including modems, routers, and hotspot
devices and antennas, if offered as monthly rental costs or part and
parcel of an internet service offering as eligible for the EBB Program
monthly discount as of December 1, 2020. Combined with record support
and recognizing that the CAA does not specifically define or identify
any associated equipment as it relates to any particular broadband
service, the Commission finds that associated equipment includes
equipment necessary for the transmission functions of internet service
offerings supported through the EBB Program which households may choose
to receive. Commenters support the Commission's conclusion by
encouraging the Commission to define the scope of eligible associated
equipment ``in a technology-neutral manner'' to accommodate household
choice and the different types of broadband networks. The Commission
agrees that a technology-neutral approach is appropriate as long as it
meets the requirements of the CAA. However, the Commission declines to
include Wi-Fi extenders or repeaters as associated equipment or any
other customer premises equipment that enhances or extends a broadband
signal beyond a participating provider's internet service offering.
First, any associated equipment that enhances or extends a broadband
signal from its existing coverage area as outlined in the participating
provider's internet service offering would not be offered ``in the same
manner, and on the same terms'' as defined in the CAA. Second, these
types of devices are typically sold as add-on options to a broadband
connection or sold separately through major manufacturers and are
therefore not offered as part and parcel of an internet service
offering. Accordingly, Congress does not clearly allow the Commission
to include these devices, and if it had intended to do so, it would
have included such devices in its definition of ``connected devices.''
The Commission also notes that the ``associated equipment'' discussed
in this paragraph must be billed monthly on the same terms and same
manner as it would have been in an offering available on December 1,
2020. The price for such associated equipment
[[Page 19547]]
cannot be frontloaded. For example, if a provider has a $30 monthly
service offering and would have offered a modem for a monthly rental of
$5 for a total monthly fee of $35, the provider cannot front-load the
monthly rental fee and charge $20 for four months of a modem rental in
the first month in order to maximize reimbursement up to the $50
monthly discount allowed.
74. Connected Devices. The CAA clearly and narrowly defines a
``connected device'' eligible for a separate, one-time reimbursement as
``a laptop or desktop computer or tablet.'' In the Public Notice, DA
21-6, the Commission sought comment on whether the Commission should
provide any further clarity regarding connected devices that are
eligible for reimbursement. The CAA does not leave room for a broad
interpretation of ``connected device.'' Congress explicitly declined to
include mobile phones in its definition, and thus the Commission finds
that the definition of a tablet does not include devices that can
independently make cellular calls such as large phones or phablets.
75. Various commenters urge the Commission to fund additional end-
user devices outside the scope of the CAA, including mobile phones
(i.e., smartphones) and portable Wi-Fi hot spots arguing that these
devices are capable of supporting video conferencing platforms and
other software, and limiting such devices could ``impose more financial
burdens to a student.'' CTIA, for example, explained that ``mobile
devices from the 4G era or later should qualify as `tablets' under the
definition'' while ``mobile phones, including feature phones and
smartphones from the 3G era or earlier, should not qualify as
``tablets.'' T-Mobile explained ``that certain mobile phones that
provide similar functionality as a basic tablet'' should be considered
a ``connected device.'' TDI et al. proposed that devices that enable
Video Relay Service or internet Protocol Captioned Telephone Service
should be eligible for reimbursement. Conversely, other commenters
supported the exclusion of mobile phones, with one commenter opposing
the inclusion of tablets, as a connected device. Common Sense Media, in
its comments, excludes cell phones from its research-based list of
requirements for a robust learning experience, explaining that
``students and teachers need laptops or tablets capable of meeting the
distance learning requirements of their curriculum.'' The record also
indicated that, while tablets are capable of supporting video
conferencing platforms and other software, commenters expressed caution
that tablets may require more specific service standards or a broad
interpretation. Taking into consideration the record, and the narrow
and specific language in the CAA's definition of a connected device,
the Commission is unable to expand the definition of connected device
and concluded that the EBB Program will provide reimbursement for any
connected device, defined as ``a laptop or desktop computer or
tablet.''
76. The Commission next clarifies that participating providers may
only receive a single reimbursement of up to $100 for one connected
device per household, and the eligible household must contribute
towards the cost of the connected device at least $10 but no more than
$50. The Public Notice, DA 21-6, sought comment on whether eligible
households should be able to receive more than one connected device
through the EBB Program, for example, if the household changes
providers. The Consolidated Appropriations Act provides that a
participating provider may receive reimbursement for no more than one
connected device per eligible household, but it is silent as to whether
households may receive the connected device reimbursement benefit from
more than one provider. Although some commenters suggested that
eligible households should receive more than one connected device, the
Commission finds no legal basis to do so. In order to preserve limited
funds, ensure that benefits reach the greatest number of eligible
households, and avoid wasteful spending, the Commission finds that
households are limited to a single connected device during the EBB
Program for which a provider seeks reimbursement. The Commission takes
this position in order to maintain the integrity of the EBB Program--
ensuring that reimbursements, and the subsequent disbursements, for a
connected device are only processed for valid claims that comply with
the CAA.
77. Minimum System Requirements for Connected Devices. In the
Public Notice, DA 21-6, the WCB sought comment on whether the
Commission should impose minimum system requirements for connected
devices supported by the EBB Program. The Commission adopts its
proposal that a connected device supported by the EBB Program should be
expected to support video conferencing platforms and other software
essential to ensure full participation in online learning, should be
Wi-Fi enabled, and have video and camera functions. The record
overwhelmingly supported that, at a minimum, connected devices must be
able to support video conferencing and camera functionality and online
learning software. Recognizing however that the ongoing COVID-19
pandemic has compounded challenges for numerous households to maintain
broadband services, the Commission finds that setting minimum system
requirements for connected devices could limit consumer choice and
exacerbate barriers to broadband service that may have existed prior to
COVID-19. While some commenters suggested specific standards the
Commission should adopt for connected devices, the Commission declines
to adopt such standards and instead encourage participating providers
and interested stakeholders to explore other opportunities, including
partnering with school districts and state and local programs that may
provide funding or other avenues for access to end-user devices and
equipment due to the COVID-19 pandemic. The Commission also expects
that connected devices be accessible to and usable by people with
disabilities.
78. Benefits for Households on Tribal Lands. The CAA also provides
a discount up to $75 for internet service offerings to eligible
households on Tribal Lands. The Commission finds that it was vital to
utilize the EBB Program in an efficient way to help provide more
households on Tribal lands with affordable, reliable connectivity. The
Commission adopts its proposal in the Public Notice, DA 21-6, to use
the same definition of Tribal lands as used in the Lifeline program,
including certain lands near the Navajo Nation treated as Tribal lands.
The Commission also allows members of households on Tribal lands to use
their participation in the same Tribal programs permitted under the
Lifeline program to qualify for the EBB Program, in addition to other
permitted means of qualifying. The Commission also adopts its proposal
to use the processes USAC has in place for identifying the location of
a household residence.
79. Many commenters supported the Commission's proposal to use the
Lifeline program's definition of Tribal lands as well as existing USAC
processes for verifying eligibility of households on Tribal lands. The
Commission finds this to be the best and most efficient approach for
households and participating providers in the EBB Program because it
will continue to help the Commission quickly address existing
impediments to connectivity on Tribal lands and allow providers to
offer EBB Program benefits to a wide-range of households that will, in
turn, increase
[[Page 19548]]
the number of subscribers of broadband internet access service. The
Commission therefore declines to use any other definitions suggested by
commenters that would expand upon the established definitions in the
Commission Lifeline rules and would accordingly prevent USAC from using
the existing Lifeline informational tools to identify whether an
applicant resides on Tribal lands.
80. With respect to other accommodations to ensure eligible
households on Tribal lands are able to participate in the EBB Program,
some commenters encouraged a flexible approach that would use
additional methods other than USAC databases (i.e., National Verifier,
NLAD) to verify addresses. The Commission disagrees with such an
approach and finds that USAC's databases, especially its mapping tool
in the National Verifier, offered a sufficiently comprehensive process
for identifying residences on Tribal lands for the EBB Program.
Additionally, USAC provides multiple other methods for applicants and
providers to submit residential location data to confirm whether an
applicant resides on Tribal lands. Expanding or otherwise modifying the
USAC systems to accommodate new methods would also require additional
time. To facilitate timely and efficient processing of participating
providers and eligible households on Tribal lands, the Commission finds
the benefits of using USAC's existing mapping tool and other address
verification methods far outweighs commenters' concerns to this action
and also eliminates time-consuming or wasteful administrative
processes. The Commission directs USAC to make available its existing
comprehensive address verification methods to applicants and providers
in the EBB Program, including providers using their own alternative
verification process pursuant to the CAA.
81. Budget and Reimbursement--Emergency Broadband Connectivity Fund
and Reimbursement for the Emergency Broadband Benefit. The EBB Program
is funded through the $3.2 billion Emergency Broadband Connectivity
Fund in the CAA, and does not rely on contributions to the Universal
Service Fund. The CAA further provides that no more than 2% of the
Emergency Broadband Connectivity Fund (Fund) or $64 million is to be
used for the administration of the EBB Program, and funding for the EBB
Program will remain available until the Fund is expended or six months
after the end of the Emergency Period as defined in the CAA, whichever
comes first. The Commission recognizes that while Congress allocated
that a portion of the Fund be used for the administration of the EBB
Program, the primary purpose of the Fund is to provide support for the
households enrolled in the program. To that end, the Commission directs
USAC, in coordination with the OMD, to re-evaluate no later than three
months after the start of the EBB Program to determine if there are any
of its administrative funds that can be used to fund reimbursements for
service and connected device claims. Moreover, the Commission directs
USAC to continue to regularly report to the OMD its projected budget
for its administration of the EBB Program. Based on USAC's initial
estimates provided to the OMD, USAC's EBB Program administrative costs
will be under the 2 percent cap, which includes costs associated with
business process outsourcing, project management, IT professional fees,
and call center activities. Pursuant to the terms of the Memorandum of
Understanding between USAC and the Commission, USAC and the Commission
will not incur administrative costs beyond the $64 million cap.
82. The emergency nature of the EBB Program requires a prompt
processing of claims that ensures participating providers, including
those who currently have no relationship with USAC, receive
reimbursement for valid claims for services and connected devices
provided to eligible households. To ensure that there is a mechanism
for disbursing funds to providers that balances the need to guard
against waste, fraud, and abuse in the EBB Program with the need to
reimburse valid claims quickly and efficiently, the Commission adopts
the following requirements for the reimbursement process.
83. Lifeline Claims System. The Commission recognizes the
importance of using existing, functional systems such as the NLAD and
the Lifeline Claims System to ensure that EBB Program providers can
submit timely reimbursement claims yet are not claiming support for the
same household. The NLAD plays a vital role in ensuring that providers
can only claim subscribers enrolled in NLAD on the first of each month
and the information captured in NLAD serves as the basis for claims in
the Lifeline Claims System. As with Lifeline, the Commission requires
providers in the EBB Program to transmit to the NLAD the required
information necessary to uniquely identify households. To help maintain
the integrity of the EBB Program and to facilitate efficient processing
of reimbursement claims, the Commission adopts the proposal in the
Public Notice, DA 21-6, to use USAC's Lifeline Claims System to
reimburse providers for the provision of covered devices, services and
associated equipment to eligible households. The Lifeline Claims System
is the online filing system hosted by USAC that service providers use
to submit claims for reimbursement for service they provide to Lifeline
customers. In the Lifeline program, providers are required to submit a
reimbursement request through the Lifeline Claims System based on the
number of subscribers enrolled in the NLAD on a specific date each
month, called a snapshot date. Providers are instructed to review the
snapshot report from NLAD for all of the provider's households in NLAD
as of that date, validate the households for which they wish to seek
reimbursement, or indicate a reason for not claiming reimbursement for
other households on the report, and review, correct, and certify the
requested reimbursement amount. The Commission employs the same process
for reimbursing providers in the EBB Program. The Commission directs
USAC to make the Lifeline Claims System available to EBB Program
providers, once they are approved to participate in the program,
subject to USAC system access requirements.
84. Commenters generally support the WCB's proposal to use the
Lifeline Claims System for managing reimbursements, stating that the
use of an existing USAC platform will avoid unnecessary delays that
would result from developing a new reimbursement platform for use in
the EBB Program. Some noted the importance of issuing reimbursements
quickly, particularly for smaller providers that may find it
financially difficult to wait months for reimbursement. The Information
Technology and Innovation Foundation (ITIF) contends that using the
Lifeline Claims System for managing reimbursements will ``expedite[ ]
financial recovery by providers to ensure stability while also
leveraging a tested, already established system with Lifeline.'' Other
commenters, such as the National Consumer Law Center and the United
Church of Christ OC, Inc. (NCLC and UCC) noted that using the Lifeline
Claims System will provide integrity to the EBB Program by helping to
ensure that the funds are directed to providers and consumers for
eligible services and connected devices.
85. Uniform snapshot date. The disbursement of EBB Program claims
will be based on the number of Program subscribers enrolled with a
provider in the NLAD as of the first of each month. The first of the
month will serve as the
[[Page 19549]]
uniform snapshot date. When establishing the uniform snapshot date for
Lifeline, the Commission finds that the practice would (1) reduce the
risk that the EBB Program would reimburse multiple providers for
serving the same customer in a month; (2) assist with the adoption of
uniform audit procedures; and (3) aid in the calculation of support
based on the number of subscribers that a service provider has listed
in NLAD. Commenters also recognized the value of establishing a uniform
snapshot date for use in the EBB Program. For example, T-Mobile stated
that applying the uniform snapshot date will simplify the enrollment
and reimbursement process in the EBB Program as it currently does for
Lifeline. The Commission agrees that the uniform snapshot date brings
efficiencies to the reimbursement process by restricting support to
those eligible subscribers that are enrolled in NLAD on the first of
each month and removing any uncertainty that would come with a
requirement for providers to claim subscribers on a pro-rata basis in
the event households receive service for less than the full month. On
the other hand, employing a method that allows for partial claims would
be cumbersome to administer and would make it difficult for USAC to
track disbursements from the Emergency Broadband Connectivity Fund. The
Commission finds it most efficient to require providers to claim
subscribers that are enrolled in NLAD as of the first of the month
regardless of how many days in the month the provider was providing
service to the subscriber.
86. Program-wide use of NLAD for reimbursements. The Commission
also establishes that NLAD will be used as a tool for reimbursement
calculations and duplicate checks in all states, territories and the
District of Columbia, regardless of a state's NLAD opt-out status for
purposes of the Lifeline Program. Uniformity in the ways providers
interact with the Lifeline Claims System and other USAC systems is
essential in ensuring that the EBB Program operates efficiently, which
is a priority given the emergency and temporary nature of the Program.
Asking USAC to develop and administer different reimbursement processes
for different states would delay the implementation of this emergency
program and potentially burden state administrators. Moreover, the
Commission recognizes the need for non-ETC providers to quickly become
familiar with the reimbursement process to ensure that claims are made
correctly and to reduce the need for revisions. Having multiple
reimbursement processes would further complicate the EBB Program and
lead to confusion among providers who are not familiar with existing
Lifeline processes, particularly in opt-out states. This uniform
approach and program-wide reliance on the NLAD for the generation of
the snapshot report is important in facilitating the swift processing
of reimbursement claims.
87. Certification requirements. To submit their reimbursement
claims for broadband internet access service provided to eligible
households, the Commission requires participating providers to review
their snapshot report and validate the eligible households for which
they are requesting reimbursement. The provider shall confirm that the
reimbursement amount matches the amount of the monthly service or
connected device for which the participating provider is permitted to
seek reimbursement and make any corrections to the amount as necessary.
The Commission also requires providers to review the snapshot report
and to confirm that households receiving a fully subsidized service
have used the service during the relevant period. If a household has
not used their service during the relevant period, then the provider
shall not submit a reimbursement claim for service provided to that
household until the service is used and the non-usage is cured. To add
more accountability and to help ensure that only service that
subscribers are using is funded through the EBB Program, the Commission
requires that providers certify that their EBB Program service claims
for reimbursement meet the usage requirements. To ensure that the
Program is supporting broadband service that is actually being used,
the Commission will not permit providers to seek reimbursement for a
service month in which a household did not meet the usage requirements,
even if the household meets the usage requirements in subsequent
months.
88. Additionally, the Commission requires providers to make the
certifications, including those set forth in the CAA when submitting a
reimbursement claim. The CAA requires that in order to receive
reimbursement from the Emergency Broadband Connectivity Fund, the
providers shall make several certifications regarding the accuracy of
their claims, compliance with the requirements of the EBB Program and
various consumer protection-related provisions. Specifically, the CAA
requires that providers certify that the amount for which they are
seeking reimbursement from the Emergency Broadband Connectivity Fund is
not more than the standard rate, and that each eligible household for
which the provider is seeking reimbursement for providing internet
service has not or will not be charged (1) for that offering if the
standard rate for that offering is less than or equal to the amount of
the EBB Program benefit for that household; or (2) more for that
offering than the difference between the standard rate for that
offering and the amount of the EBB Program benefit for that household.
The provider is also required to certify that each eligible household
for which it is seeking reimbursement will not be required to pay an
early termination fee, was not after December 27, 2020, subject to a
mandatory waiting period for the covered broadband internet service,
and will otherwise be subject to the provider's generally applicable
terms and conditions as they are applied to other customers. Moreover,
providers are required to certify that each household for which they
are seeking a reimbursement for a connected device has been charged
more than $10 and less than $50 for the connected device. Finally, for
providers that are claiming households that they determined to be
eligible to enroll in the EBB Program through the alternative
verification process, providers must provide a description of that
verification process and certify that the process was designed to avoid
waste, fraud, and abuse and has been approved by the Commission as
required by section III(B) of the RO.
89. The Public Notice, DA 21-6, proposed that these certifications
accompany each reimbursement claim, in addition to an annual
certification submitted by participating providers. Commenters did not
object to this certification, although some asked for additional
certifications while others requested that the Commission not require
certifications beyond those listed in the CAA. The Commission finds
that certifications, along with the possibility of audits, are a vital
tool for managing waste, fraud, and abuse. While the certifications
required by the CAA address many of the Program requirements, the
Commission finds that additional certifications are necessary to ensure
compliance with Commission's requirements that it finds essential to
help guard against waste, fraud, and abuse in the EBB Program.
Accordingly, the Commission directs USAC to make any adjustments
necessary to the Lifeline Claims System to ensure that providers are
prompted to certify that their reimbursement claims meet the usage
requirements and to
[[Page 19550]]
certify the statements included in section 904(b)(6) of the CAA. The
Commission further directs USAC, in coordination with the WCB, to
develop an annual certification for all participating providers and a
process for its submission. As discussed in the following, the
Commission also adopts additional certifications to accompany
reimbursement claims for connected devices distributed through the EBB
Program.
90. As well-established in the record, the Emergency Broadband
Connectivity Fund has limited funding and the Commission must make
every effort to ensure that the Commission maximizes the use of these
funds to serve as many eligible households as possible, including
responsibly leveraging EBB Program funding with other sources of
support. To that end the Commission requires participating providers
that are applying both the Lifeline discount and the Emergency
Broadband Benefit to a household's supported broadband service to apply
the full Lifeline discount first before calculating the reimbursement
amount claimed under the EBB Program. This approach responsibly
stewards limited EBB Program funding where Lifeline support is
available and is consistent with the requirements of Sec. 54.403(b) of
the Commission's rules regarding the application of the Lifeline
support amount.
91. Reimbursement for Connected Devices. EBB Program providers can
also seek up to $100 reimbursement for a connected device provided to a
household satisfying the requirements set forth in the RO and as long
as the household has been charged more than $10 but less than $50 for
the device. To facilitate the efficient review and processing of
reimbursement claims for connected devices, the Commission directs USAC
to modify the Lifeline Claims System to manage these claims. Because
the Consolidated Appropriations Act limits the connected device
reimbursement to providers who are providing the EBB Program benefit to
the household, the Commission requires that claims for connected
devices must be made concurrent with or after the provider's first
reimbursement claim for service for that household. To ensure that a
household does not receive more than one connected device for which a
provider has received reimbursement from the EBB Program, providers are
also required to confirm in NLAD that no reimbursement claim for a
connected device has been made for that household.
92. Some commenters agreed with the proposal in the Public Notice,
DA 21-6, to require providers to certify that the household receiving
the device is an EBB Program beneficiary and that the household has
been charged the required co-pay for the device. To help make the
Emergency Broadband Connectivity Fund last as long as possible, Public
Knowledge urged the Commission to require providers to prove the retail
value of the connected device to ensure that the provider is not
receiving a reimbursement that exceeds the value of the device. The
Commission acknowledges the need to balance speedy and efficient
processing of reimbursement claims with the need to protect the
integrity of the EBB Program by ensuring the reimbursements are only
processed for valid claims that comply with the requirements of this
Order. To that end, to ensure the quick reimbursement of valid claims
for connected devices, USAC will not be required collect and review
documentation before processing a reimbursement claim. Instead, the
Commission requires providers, under penalty of perjury, to certify
that the connected device meets the Commission's requirements, that the
reimbursement claim amount reflects the market value of the device,
that the household has been charged a compliant co-pay amount, and that
the connected device has been delivered to the household. Providers are
instructed to retain any materials that document compliance with these
requirements, including the device type (e.g., laptop, tablet, mobile
hotspot, modem, gateway, router, antenna, receiver, or satellite dish)
and device make and model. The Commission finds that requiring
certifications under penalty of perjury along with the possibility of
an audit will help to encourage compliance with EBB Program
requirements and reduce the incidence of improper payments.
93. Timing of Reimbursement Claims. The EBB Program is a limited
duration program with limited funds, and it is important that the
Commission is able to project accurately when those funds will run out.
To this end, USAC must have actual reimbursement claims information
from providers as soon as possible after each service month. USAC will
use this claims information for reporting the disbursement information
to the public and for creating a forecast for the projected final month
of the EBB Program, both of which are discussed in the following. To
ensure that this claims information is submitted to USAC by providers
in a timely manner so that it can be used to administer the program
efficiently, and so providers can receive timely reimbursement for the
discount they provide to households, the Commission established a
limited time period during which providers can submit reimbursement
claims. The process for submitting a reimbursement claim will largely
track the process in the Lifeline program, where a snapshot report of a
provider's enrolled subscribers as of the first of the month is sent to
the provider. Providers will then have until the 15th of each month, or
the following business day in the event the 15th falls on a weekend or
holiday, in which to submit to USAC their reimbursement claims for both
service and connected device support for households captured on the
snapshot report. For those providers seeking to have their
reimbursement claim processed quicker, they must review and certify
their reimbursement claims sooner, as established by USAC.
94. The record was clear that there is universal support for
accurate and timely reporting of reimbursement information so that
providers and the public can make informed decisions regarding their
participation in the EBB Program. Providers can help the Commission
ensure that USAC is collecting nearly real-time claims information by
submitting their accurate reimbursement claims as soon as possible and
within that 15-day period. Moreover, given the importance of the
projection of the program's end date as it relates to the smooth
administration of the end of the EBB Program, the Commission trusts
that providers will do their part in ensuring that USAC has
reimbursement claims information as soon as possible. The Commission
also believes providers will be motivated to receive reimbursements as
soon as possible. To that end, to ensure the timely filing of
reimbursement claims so that USAC's projections are reliable and based
on current activity in the EBB Program, the Commission finds it
necessary to restrict the processing of reimbursement claims to those
submitted by the deadline set for each month--either the 15th of that
month or the following business day in the event that the 15th falls on
a holiday or weekend. Reimbursement claims submitted after that
deadline will not be processed. Therefore, providers are strongly
encouraged to submit their claims as soon as possible.
95. To further support the Commission effort to track disbursements
and to provide a projection for the depletion of the Fund that is based
on the most accurate and up-to-date household and disbursement
information, the Commission is
[[Page 19551]]
prohibiting providers from revising previously submitted claims
associated with the provision of EBB Program services and connected
devices. The Commission expects that this limitation will encourage
providers to be especially cautious when reviewing reimbursement claims
prior to submission to ensure accuracy. Moreover, preventing changes to
prior disbursements will give the Commission, USAC, providers and
households confidence in the reported disbursement amounts. Providers
are required to certify to the accuracy of reimbursement claims and
that the United States, the Commission, and USAC retain the right to
pursue recoveries as well as take enforcement action for any claims
improperly disbursed from the Fund. Additionally, to help support
USAC's efforts to project the end of the EBB Program, the Commission
sought participating providers' cooperation and request that they
transmit to NLAD the amount they intend to claim for service and
connected device support for each household they enroll in NLAD. While
the reimbursement amount processed for the provider will be based on
the amount contained in the provider's certified reimbursement claim
submitted through the Lifeline Claims System, the information
transmitted to NLAD will, in part, be relied upon for calculating the
EBB Program's projected end date. The Commission encourages providers
to transmit a good faith estimate of the monthly support amount for
service and any device provided to the household through the EBB
Program within seven days of enrolling the household in NLAD.
96. USAC training and support. Finally, the Commission recognizes
that the EBB Program will attract a variety of broadband providers,
including those with no prior experience with USAC and its systems. To
provide guidance on the reimbursement claims process, the Commission
directs USAC, subject to the oversight of the OMD and the WCB, to
conduct extensive training, including webinars, to distribute
instructions, and otherwise to provide support to broadband providers
considering participation in the EBB Program. The Commission further
directs USAC to ensure that interested providers are given access,
subject to system and USAC requirements, to the USAC systems essential
for the management and processing of reimbursement claims.
97. Payment Administration. While USAC will be administering the
EBB Program, as permitted under section 904(i)(5) of the CAA, and
pursuant to the terms of the MOU between the Commission and USAC that
authorizes the use of USAC for the administration of the EBB Program,
the Commission must authorize the payments from the Emergency Broadband
Connectivity Fund in the United States Treasury to providers who have
submitted valid claims for reimbursement. In the RO, the Commission
describes steps to remove impediments to participation in the EBB
Program for those providers that would otherwise be prohibited from
receiving reimbursements due to unpaid debts to the Commission or which
the Commission has referred to the United States Department of the
Treasury (Treasury). The Commission also provides guidance on the
information providers must be prepared to provide to ensure timely
payment of reimbursement claims from the Fund.
98. Red Light Rule. The Commission finds that there is good cause
to suspend the Commission's red light rule for the EBB Program and that
doing so will serve the public interest. To implement the requirements
of the Debt Collection Improvement Act of 1996, the Commission
establishes what is commonly referred to as the ``red light rule,''
although the red light rule itself is not a statutory requirement and
therefore can be waived by the Commission. Under the red light rule,
the Commission will not take action on applications or other requests
by an entity that is finds to owe debts to the Commission until full
payment or resolution of that debt.
99. Generally, the Commission's rules may be waived for good cause
shown. The Commission may exercise its discretion to waive a rule where
the particular facts make strict compliance inconsistent with the
public interest. In addition, the Commission may take into account
considerations of hardship, equity, or more effective implementation of
overall policy on an overall basis.
100. The Commission finds that the temporary nature of this
emergency program and the enduring disruption caused by the COVID-19
pandemic justify a waiver of the red light rule. In order to encourage
provider participation and facilitate consumer choice in the EBB
Program, the Commission finds that it is in the public interest and
that good cause exists to waive the red light rule with respect to
providers submitting otherwise valid claims for reimbursement in the
EBB Program. Allowing more providers to participate in the EBB Program,
even those who may be in red light status, is a crucial step in
expanding the broadband service options available to low-income
consumers through the EBB Program. The Commission issues this waiver to
ensure that otherwise eligible broadband providers are not discouraged
from participating in the EBB Program for fear that a debt owed to the
Commission would prevent them from receiving reimbursement. To be
clear, this waiver is limited only to participation of providers in the
EBB Program and does not affect the Commission's right or obligation to
collect any debt owed by an applicant by any other means available to
the Commission, including by referral to the Treasury for collection.
101. Treasury Offset. The Treasury has a number of collection
tools, including its offset program, known as the Treasury Offset
Program (TOP), pursuant to which it collects delinquent debts owed to
Federal agencies and states by individuals and entities, by offsetting
those debts against Federal monies owed to the debtors. EBB Program
providers that owe past-due debt to a Federal agency or a state may
have all or part of their EBB Program payments offset by Treasury to
satisfy such debt. Prior to referral of its debt to Treasury, a
provider is notified of the debt owed, including repayment
instructions. If the referred debt of an EBB Program participating
provider remains outstanding at the time of a payment from the EBB
Program to that provider, the provider will be notified by Treasury
that some or all of its EBB Program payment has been offset to satisfy
an outstanding Federal or state debt. EBB Program providers are
required to pass the EBB Program discount to the customer for the
service or connected device claimed even if Treasury offsets the
payment for such service or device against debt owed by the provider.
EBB Program providers that owe past due Federal or state debts are
encouraged to resolve such debts and in doing so, consult the TOP
Frequently Asked Questions for the Public, available at https://fiscal.treasury.gov/top/faqs-for-the-public.html, for delinquent debt
that has been referred to Treasury, and for delinquent debt that the
Commission has not yet referred to Treasury, consult https:/
www.fcc.gov/general/red-light-frequently-asked-questions.
102. Additional Requirements. To be eligible to receive
disbursements from the Emergency Broadband Connectivity Fund, providers
must obtain and report an FCC Registration Number (FRN). Persons or
entities doing business with the Commission are required to obtain an
FRN, a unique identifier that is obtained through the Commission
Registration System (CORES).
[[Page 19552]]
Participating providers are directed to obtain an FRN if they do not
already have one and report it as directed by USAC or the Commission.
103. All entities that intend to provide service through the EBB
Program must also register with the System for Award Management (SAM).
SAM is a web-based, government-wide application that collects,
validates, stores, and disseminates business information about the
Federal Government's partners in support of Federal awards, grants, and
electronic payment processes. Registration in the SAM provides the
Commission with an authoritative source for information necessary to
provide funding to applicants and to ensure accurate reporting pursuant
to the Federal Funding Accountability and Transparency Act of 2006, as
amended by the Digital Accountability and Transparency Act of 2014
(collectively the Transparency Act or FFATA/DATA Act). Only those
providers registered in SAM will be able to receive reimbursement from
the Emergency Broadband Connectivity Fund. EBB Program providers that
are already registered with SAM do not need to re-register with that
system in order to receive payment from the Emergency Broadband
Connectivity Fund. Broadband providers not yet registered with SAM may
still elect to participate in the EBB Program, enroll eligible
customers and receive program commitments. Active SAM registration,
however, is required for an eligible provider to receive a payment from
the EBB Program. Furthermore, participating providers may be subject to
reporting requirements. To the extent that participating providers
subaward the payments they receive from the EBB Program, as defined by
FFATA/DATA Act regulations, providers may be required to submit data on
those subawards.
104. Do Not Pay. Pursuant to the requirements of the Payment
Integrity Information Act of 2019 (PIIA), the Commission is required to
ensure that a thorough review of available databases with relevant
information on eligibility occurs to determine program or award
eligibility and prevent improper payments before the release of any
Federal funds. To meet this requirement, the Commission and USAC will
make full use of the Do Not Pay system administered by the Treasury's
Bureau of the Fiscal Service. If a check of the Do Not Pay system
results in a finding that an EBB Program provider should not be paid,
the Commission will withhold issuing commitments and payments. USAC may
work with the EBB Program provider to give it an opportunity to resolve
its listing in the Do Not Pay system if the provider can produce
evidence that its listing in the Do Not Pay system should be removed.
However, the EBB Program provider will be responsible for working with
the relevant agency to correct its information before payment can be
made by the Commission.
105. Tracking and Reporting of Available Funding. While the
Commission considers carefully many of the details of the
implementation of the EBB Program, the amount of appropriated funds is
finite and it must also prepare for a transition when funds are
exhausted. The CAA provides that the EBB Program will conclude upon the
earlier of six months after the end of the emergency period or when the
amount in the Fund is exhausted. At the conclusion of the EBB Program
when the discount is eliminated, participating households will be
subject to their provider's ``generally applicable terms and
conditions.'' The Commission agrees with commenters that the Emergency
Broadband Connectivity Fund may well be depleted before the end of the
emergency period, which means that the benefit on which households have
been relying to afford broadband service may disappear while the public
health emergency is ongoing. To prepare providers and households for
the end of the program and the benefit, commenters stressed the
importance of transparency regarding the financial state of the EBB
Program and have urged the Commission to track and report disbursements
from the program at frequent intervals so that the public can
anticipate the end of the program.
106. Commenters recommended the creation of a tracker that displays
the number of enrollments and amounts of disbursements made from the
Emergency Broadband Connectivity Fund. Some commenters suggested that
the tracker be updated either in real-time, or on a weekly or monthly
basis. Commenters also urged the Commission to display disbursements
and enrollment activity by different geographic levels or by provider,
and to provide additional information about the programs through which
EBB Program customers are qualifying. Commenters argued that providers
need this information prepare their customers for the elimination of
the benefit.
107. The Commission agrees that tracking and reporting on
disbursement and program enrollment activity will be an essential tool
for managing the EBB Program and for developing an informed forecast of
the end of the EBB Program. Given the anticipated limited duration of
the EBB Program, the Commission further agrees with commenters that
clear and frequent updates on the remaining funds available will help
give participating providers the data they need to begin the process of
providing notice to subscribers about the end of the benefit and
preparing them for a potential transition to other broadband options.
The Commission will develop and publish online a tracker that, at a
minimum, displays (1) the number of EBB Program households enrolled in
NLAD; (2) the number of net new households enrolling into the EBB
Program each week; and (3) the total dollar amount of the reimbursement
claims approved to date, disaggregated by monthly amounts for internet
access service and associated equipment, as well as connected devices,
with historical data remaining so that the public can monitor any
trends in the disbursement rates between updates. The Commission
directs USAC, subject to the oversight of the WCB and the OMD, to
develop this tracker and make it available on USAC's website as well as
the Commission's website. The posted information shall be updated at
least every two weeks by USAC, with the goal of weekly updates as the
EBB Program ramps up.
108. The Commission declines to require that USAC post detailed
information about EBB Program activities by geographic region, finding
that such information would not be essential for informing providers
and the public about the status of the program, which is the
Commission's more immediate goal. USAC should focus its resources on
what is necessary to successfully administer the implementation of the
EBB Program and its wind-down. However, the Commission agrees that more
information about the communities the EBB Program serves could help the
Commission evaluate the success of this program and could inform future
broadband-related initiatives. Therefore, to be transparent about
participation in the EBB Program, the Commission directs USAC to submit
a report to the Commission that provides information about how
households qualified for the EBB Program, the claimed support amounts
for connected devices and services, the geographic locations of
consumers at the county level, and other information that the WCB, in
consultation with USAC, believes would be essential for evaluating the
program. This report shall be filed with the WCB no more than six
months after the initiation of the EBB Program, with
[[Page 19553]]
updates submitted as necessary to capture additional information about
the EBB Program and participating households obtained after the
submission of the report.
109. Program Sunsetting. The Commission goal is to provide an
informed projection of the exhaustion of funds for the EBB Program so
USAC and the Commission can effectively manage the disbursement of the
remaining funds and ample notice is provided to households, providers
and other stakeholders. The Commission is especially concerned about
the elimination of the benefit and the impact it could have on
households, including unexpected or larger bills, and disruption or
even termination of the broadband service. Accordingly, the Commission
adopts procedures designed to ensure that households are informed that
the program is temporary and the benefit will terminate at the end of
the program, to provide notice to all stakeholders of the forecasted
end of the program, and to manage the program to ensure that the
remaining funds are disbursed equally to providers and allow for a
transition for households off the EBB Program.
110. The first step in administering the end of the EBB Program is
to predict fund exhaustion based on enrollment activity, disbursement
levels, and other relevant information. Commenters argued that
stakeholders will require advanced notice of the end of the program, in
addition to the EBB Program activity posted on a tracker, to prepare
their customer service representatives, billing systems, and customers
for the elimination of the subsidy. The Commission cannot predict at
this time when the Emergency Broadband Connectivity Fund will be
depleted, but as households enroll in the EBB Program and providers
begin to submit claims for reimbursement, the Commission anticipates a
clearer picture of the interest in the program and the rate at which
funds will be withdrawn. The Commission recognizes that a greater
understanding of the timing of the end of the EBB Program and the
procedures the Commission and USAC will employ to manage the remaining
funds and reimbursement claims will create greater confidence in the
EBB Program and help households navigate the end of the subsidy.
111. First, the Commission directs USAC to develop a method,
subject to the oversight of the Office of Managing Director, the Office
of Economics and Analytics, and the WCB, to forecast when the Fund will
be able to pay out reimbursement claims only for another 75 to 90 days.
The forecast shall take into account the Commission commitment that in
the final month of disbursements, the remaining balance in the Fund
will be able to provide at least 50% of each claim for service or
connected devices to assist households and providers with the
transition. Once USAC has identified when the Fund will be depleted
using submitted claims and other relevant information, USAC will notify
providers and the public of the expected exhaustion of the Fund and the
month in which USAC expects to pay out final claims. Administering this
finite Fund presents administrative challenges, particularly given that
the Commission is unable to predict at this time the demand in the EBB
Program and the rate of at which households will enroll in the program
in the beginning weeks of the program. Given these challenges, the
Commission has endeavors to provide at least 60 days' notice before the
end of the Program. This notice will be posted on the USAC and
Commission websites at least 60 days prior to the final snapshot date
that coincides with the forecasted final month of the Program. This
notice should be sufficient to allow providers to make an informed
decision about whether to plan to claim their EBB Program subscribers
in the final month and possibly receive a partial reimbursement claim
for the service provided, or to transition those subscribers off their
service.
112. Some commenters suggested 30 days' notice of the end of the
program would be adequate whereas others argued that 90 days are needed
to ensure that providers have ample time to provide notice to their
customers. CTIA suggested that providers have at least 60 days' notice
to wind down their participation in the EBB Program. The Commission
finds that 60 days' notice of the termination of the EBB Program
strikes a balance between the need for USAC to have enough data to
accurately forecast the end of the program with the need to offer
enough time for providers to notify their customers and work with them
on a post-program broadband solution. This is an emergency program and
as such, requires all stakeholders to work expeditiously in ensuring
that the Commission is serving low-income households and helping to
meet their broadband needs during the pandemic. Moreover, the
Commission finds that 60 days' notice is reasonable given other
existing Commission requirements for service providers to notify their
subscribers in advance of a possible change or disruption in their
service, and the Commission expects that providers will be able to
adjust their systems as necessary to provide such notice just as they
would need to in these other contexts.
113. Second, in the event that reimbursement claims in the final
month exceed the amount of remaining funds, reimbursements for both
service and connected device claims will be paid out on a reduced, pro-
rata basis, but in no circumstances will the reimbursement be less than
50% of the provider's claim for that final month. For example, if the
remaining balance in the Fund is sufficient to pay 80% of each
reimbursement claim submitted in that final month, the Fund will pay
out 80% of each claim on a pro-rata basis, thus depleting the Fund and
ending the EBB Program. In this scenario, a provider can expect to
receive a $40 disbursement if they would otherwise submit a service
claim for $50, and the subscriber would be responsible for payment of
the additional $10 for that service month. While the Commission took
steps in the RO to ensure that USAC has the most up-to-date claims
information available to support its projection analysis and to avoid a
scenario where the amount in the Fund will be insufficient to offer a
reimbursement of at least 50% on claims in that final month, the
Commission recognizes that in order to responsibly manage the Fund, the
Commission must prepare for this scenario. In the final months of the
EBB Program, after the end date has been forecast, the Commission
directs USAC to continue to monitor Program activity to determine
whether the Fund will be able to support at least 50% of the claims,
paid out on a pro-rata basis, in the expected final month of the EBB
Program. If USAC's analysis indicates that the Fund will not be able to
meet this 50% threshold, USAC shall immediately notify the WCB, the
Office of Economics and Analytics, and the Office of Managing Director.
If Commission staff agrees with USAC's analysis, the WCB will direct
USAC to pause the reimbursement process for that final month. For
example, in the event that the remaining balance in the Fund could only
pay 30% of each anticipated claim for support, the Fund will not issue
any disbursements in that month. In that situation where the remaining
funds cannot guarantee at least a 50% disbursement on claims in that
final month, the Commission will determine how best to use the
remaining funds consistent with the CAA.
114. The Commission recognizes that uncertainty in the subsidy
amount for the final month presents challenges for households and for
providers as they
[[Page 19554]]
manage their participation in the EBB Program and as providers
communicate to households regarding expectations for the final month.
By establishing a 50% floor for the final month of reimbursement, the
Commission balances the compelling interest in avoiding extreme price
increases for eligible households while transitioning households off
the subsidy, with its obligation to maximize the effectiveness of EBB
Program funds by ensuring that as much of the Fund supports services to
the greatest number of low-income households. Reimbursing each claim on
a pro-rata basis in the final month of the program, regardless of the
amount the provider would be entitled to, helps the Commission fulfill
that mandate. The Commission recognizes the 50% floor could result in
some funds being left unspent for a short while, and would require
additional Commission direction on the use of the remaining funds, but
by implementing this approach it is ensuring that the final month of
the program provides a substantial subsidy to help households
transition off the program. The Commission also anticipates that USAC's
projections will provide enough advance notice of this possibility to
allow both households and providers to plan accordingly.
115. The Commission declines to adopt a policy suggested by
commenters that would structure the subsidy so eligible households
would receive the benefit for a determined time period. The Commission
finds that such a mechanism would restrict household participation in
the EBB Program in order to guarantee benefits to a more limited number
of households for the set period, and would also require USAC to deny
enrollment to otherwise eligible households. Given its obligation to
maximize the effectiveness of the EBB Program, the Commission finds it
could not adopt a regime that would limit the low-income households
benefitting from this program. Maximizing the number of households
while guaranteeing at least a 50% benefit in the final month balanced
the need to serve as many households as possible while ensuring that
households can rely on a substantial benefit in the final month of the
EBB Program.
116. Relatedly, several commenters suggested that the Commission
reserve a portion of the funding for households that do not already
have broadband service connections. Education Super Highway noted that
funding is unlikely to meet the demand for the EBB Program, and that
those without a broadband connection may have a more difficult path and
be at a disadvantage in applying for the program given the provider-
centric design of the EBB Program. While the Commission understands
these concerns, the Commission declines to set aside any portion of the
funding for unconnected households. The CAA does not include any
prioritization for how funding should be distributed to eligible
households, and the Commission finds that it is appropriate to provide
the benefit to eligible households without regard to their current
level of broadband service. Moreover, the Commission expects the
outreach efforts discussed in the following would help unconnected
households enroll in the EBB Program.
117. Because of the uncertainty in the reimbursement amount for the
final month, once notice of the projected end date has been issued, the
Commission must limit volatility in the program claims that could
materially change the projected end date. As a result, the Commission
will freeze enrollments of new households at the time the notice is
issued. To more smoothly administer the end of the program, providers
and households must have confidence that the Fund can support claims
made up until the forecasted end date. The Commission recognizes that
this enrollment freeze will restrict access to the program for
households wishing to enroll in the program's waning weeks, but the
Commission notes that the EBB Program will operate without any cap on
the number of eligible households that will be able to enroll before
that time. The Commission finds that an enrollment freeze at the end of
the program allows the Commission to serve the greatest number of
eligible low-income households while responsibly managing the remaining
funds in the final weeks of the program. Therefore, the Commission
directs USAC, under the oversight of the OMD and the WCB, to develop
procedures for implementing this enrollment freeze.
118. Notice to consumers. In the Public Notice, DA 21-6, the WCB
acknowledged that customers will need to be notified prior to or upon
enrollment in the EBB Program of the temporary nature of the program
and that they will be subject to the general terms and conditions of
the broadband service they receive through the EBB Program if they
continue to take that service after the program's conclusion.
119. Commenters agreed that notice at the time of enrollment is
essential especially given that no one can state with confidence at the
outset how long the program will last. Public Knowledge stated that
providers must be ``fully transparent with consumers, at the time of
sign-up, about these factors.'' Hughes Network Systems agreed that
providers must have a responsibility in notifying subscribers at the
time of enrollment that the program will end when the funds are
depleted or when the emergency period ends. To ensure that customers
are given notice at or before initial enrollment that the EBB Program
benefit provides a temporary discount on their broadband service bill,
that discount will not be applied to their bill, the Commission directs
USAC, in consultation with the WCB, to publish language describing the
limited duration of the benefit and the potential impact on the
customer's bill at the end of the program on USAC's relevant consumer-
facing websites, any USAC-provided application and the National
Verifier, and other educational materials.
120. Providers also play an important role in ensuring that their
customers are informed about the temporary nature of the EBB Program.
Providers will have a direct relationship with their customers, and as
such, have a responsibility to ensure that these customers have the
information they need to make an informed decision about the broadband
service product they subscribe to supported by the EBB Program.
Accordingly, the Commission directs USAC and providers to include on
their EBB Program consumer applications a certification for the
household to affirm that they understand that the EBB Program is a
temporary Federal Government subsidy that reduces the customer's
broadband internet access service bill and at the conclusion of the EBB
Program, the household will be subject to the provider's undiscounted
general rates, terms, and conditions if the household continues to
subscribe to the service.
121. The Commission also requires providers to include information
about the limited duration of the Program and the impact of its
termination on any EBB Program advertising materials, including, but
not limited to billing inserts; websites; flyers; television, radio,
and newspaper advertising; mailers; and posters. The Commission directs
providers to use their best judgment in developing language that will
clearly communicate the duration and impact of the program's end to the
prospective low-income households, but at a minimum that language
should comply with the relevant EBB Program rules the Commission adopts
herein. Providers have an interest in communicating the terms of the
Program clearly to their customers to manage expectations and to
preserve the relationship. It is important as both a consumer
protection measure and to
[[Page 19555]]
ensure that low-income consumers continue to have access to broadband
services during this pandemic, that providers assist customers by
transitioning them to other available products in the event that the
broadband service plan they were subscribing to becomes unaffordable
after the EBB Program ends and the benefit is eliminated.
122. The Commission is persuaded by commenters' arguments that
customer bills offer an opportunity to communicate the limited duration
of the EBB Program and the impact on the monthly bill when the subsidy
ends. Commenters representing aging and public housing advocacy groups
recommended that providers submit notices on consumer bills that
provides ``information on billing after the conclusion of the EBB
Program, when the first bill at a higher rate will be due, an
explanation of any partial month charges and information on any
additional resources.'' The San Francisco Department of Technology
contended that the temporary discount should be clearly characterized
as such on consumer bills, and the Benton Institute for Broadband and
Society urged the Commission to adopt requirements that providers be in
clear communication with consumers about the end of the subsidy and the
amount of the monthly bill that a customer is responsible for. MMTC NUL
recommended that providers should inform customers that ``they will be
eligible to transition to an alternative, lower-priced broadband plan
at the conclusion of the emergency program, making clear the price,
service levels, and other terms and conditions that will apply.''
123. The Commission agrees that provider-supplied communication is
important and will help guard against unexpected bill-shock and
confusion throughout the EBB Program. Therefore, the Commission
requires providers participating in the EBB Program to deliver at the
time of enrollment and on a monthly basis, either in the form of a
monthly bill, or other monthly communication if the benefit covers the
entire rate of the qualified plan, to its EBB Program household,
documentation that prominently and clearly states in easy to understand
terms that the EBB Program is a temporary subsidy that reduces the
customer's broadband internet access service bill and at the conclusion
of the benefit, the customer will be subject to the provider's general
rates, terms, and conditions if the customer continues to subscribe to
that broadband service. This initial disclosure, monthly bill or
communication must also prominently and clearly set forth the rate that
the customer should be expected to pay, including fees, taxes, and
equipment rental charges once the EBB Program ends and the benefit
expires. Once USAC and the WCB announce a forecasted end of the EBB
Program, the provider must provide notice to its customer in a
prominent manner on the customer's bill, or other monthly communication
if the benefit covers the entire rate of the qualified plan, about the
last date or service month that the full benefit will apply to their
bill, the last date or service month that the partial, final-month
benefit will apply to their bill, and the expected rate of the
broadband service once the benefit expires.
124. The Commission recognizes that providers will need some time
to adjust their billing and other systems in order to communicate the
EBB Program end date to their customers. Therefore, providers should
send this notice to their customers as soon as practicable after the
notice is posted on USAC and the Commission websites, but no less than
15 days after the notice from USAC and the Commission is posted. The
Commission encourages providers to send this notification to households
electronically, consistent with any consumer expressed preferences for
receiving electronic notices and other communications and to the same
email or phone number that bills or other monthly communications are
sent, in addition to a mailed notice to ensure that customers have
multiple opportunities to receive information regarding the end of the
EBB Program and alternative broadband plans if it will be unaffordable
without the benefit. Commenters recognized that advance notice to
households is important so they can make informed choices regarding
broadband service for their household. The Commission finds that
providers are in the best position to explain to their customers what
will happen to their bill once the benefit is exhausted.
125. Household transition to other services or discounts. The
Commission recognizes that the end of the EBB Program means that
households will need to evaluate available options to determine how
their household can continue to subscribe to broadband services. Rather
than limit participation in the program to a predetermined number of
customers, as some commenters suggest, the Commission structures the
EBB Program to ensure that it serves the greatest number of households
possible. But this more inclusive approach presents some administrative
challenges. For example, the Commission cannot predict at this time how
long the EBB Program will last and when a customer's last month of EBB
Program-discounted service will be. The Commission commits to ensuring
that the Commission is transparent about the enrollment and
disbursement activity in the EBB Program. The Commission knows that
there is a connection between a household's income level and whether
they have a home broadband connection, and EBB Program customers will
need a smooth transition to affordable broadband options at the
conclusion of the EBB Program if they wish to maintain broadband
service. Commenters noted that it is vital that consumers be
transitioned to affordable broadband services at the conclusion of the
EBB Program. Ensuring that these households can continue accessing the
broadband they need to participate in virtual learning, complete their
homework, and communicate with employers and healthcare providers will
be a group effort. The Commission encourages providers and community
groups to communicate the availability of affordable broadband options,
including any broadband adoption initiatives in their communities.
126. The Commission also hopes that providers consider ways in
which they can financially support their customers as the benefit ends
and the households look to transition to comparable broadband services
or continue with the same broadband service offered at a discounted
rate subsidized by the provider. The Commission also recognizes that
requiring providers to directly subsidize a household's broadband
service, either fully or partially, once the Emergency Broadband
Connectivity Fund is depleted would likely be considered to be to an
unfunded mandate. While the Commission cannot and does not require that
providers offer a discount to households at that time, the Commission
hopes that providers are able to identify the ways in which they can
use their experience with the EBB Program and the Federal support they
received to help households continue to access high quality, low-cost
broadband service during the course of this public health emergency. At
a minimum, providers with existing low-cost and income restricted
programs should not preclude EBB Program recipients from enrolling in
those programs based on current or recent customer (for example,
service within the last 90 days) eligibility restrictions. Consumers
previously in an existing low-cost
[[Page 19556]]
program and using the EBB Program benefit to receive a higher tier of
service should be allowed to transition back to the low-cost offering
at the conclusion of the benefit program.
127. Due to their relationship with their EBB Program customers,
providers play an essential role in helping to protect households from
bill shock and to ensure that households understand that they ``shall
be subject to a participating provider's generally applicable terms and
conditions'' after the expiration of the EBB Program. Therefore, the
Commission requires that providers obtain an affirmative opt-in from
households at any time while the household is participating in the EBB
Program and before they can be charged an amount higher than they would
pay under the full EBB Program reimbursement amount permitted by the
Commission rules, including any potential increased payment as a result
of a partial reimbursement during the EBB Program's final month. The
Commission agrees with commenters that an opt-in from households will
help guard against unexpected charges by reducing the likelihood that
households will receive broadband service absent the EBB Program
benefit without their permission. To that end, consistent with the
notice requirements the Commission adopts in the RO, with respect to
provider communications to households, the provider shall clearly state
that it will stop providing broadband service to the household at the
conclusion of the EBB Program unless the household agrees to continue
to receive broadband service. At least 30 days before the end of the
EBB Program, the provider must also notify households of the upcoming
increase to their monthly bills (or as soon as practicable if there is
a scenario in which providers do not have 30 days' notice prior to the
expiration of the program). The Commission encourages providers to
ensure that households have the opportunity to make an informed
decision about the continuation of broadband service absent the EBB
Program benefit. EBB Program households that subscribed to the
provider's broadband service before the commencement of the EBB Program
must also opt-in to the continuation of broadband service. The
Commission finds that requiring providers to obtain permission from
households before continuing to provide broadband service after the end
of the EBB Program is another tool that helps ensure that households
have the information they need to make decisions about their broadband
services and to ensure that the same households are protected from
unexpected bills related to their broadband services.
128. Promoting Awareness. The Commission recognizes that for the
EBB Program to achieve its full potential and serve as many eligible
households as possible during the COVID-19 pandemic, low-income
households must be clearly informed of the program's existence,
benefits, eligibility qualifications, and how to apply. Participating
providers, some of whom may not have experience with the Lifeline
program, USAC, and USAC's processes, will also require information both
on how to participate in the EBB Program and on how to educate
consumers. The record overwhelmingly reflected the importance of
publicizing the program to new and existing consumers through national
and local campaigns that use diverse spokespeople and languages. For
the EBB Program to reach as many eligible consumers as possible,
including disconnected low-income consumers, individuals with
disabilities, and households of color, it is important to implement a
broad, collaborative outreach, including the Federal Government, state,
local, and Tribal governments, broadband internet access providers,
community groups, trade associations, Tribal communities,
philanthropists, educators, and other trusted institutions. The record
also recognized the importance of educating participating providers on
the EBB Program. To this end, the Commission encourages EBB Program
participating providers to engage in consumer marketing with basic
requirements and encourage them to consider communications strategies
proposed in the record. The Commission also directs the Commission
staff and USAC to develop comprehensive provider education and training
programs, as well as consumer outreach plans. Finally, the Commission
strongly encourages other civic entities to publicize the EBB Program
to eligible households.
129. The Commission next encourages providers that file an election
notice with USAC to publicize the availability of the EBB Program
service in a manner reasonably designed to reach those consumers likely
to qualify and in a manner that is accessible to individuals with
disabilities. The record overwhelmingly confirmed that participating
providers should publicize, including in languages other than English,
the availability of the EBB Program. To ensure that consumers receive
comprehensive information explaining the EBB Program, the Commission
recommends that provider marketing materials describe in clear, easily-
understandable language in, if feasible, the dominant languages of the
communities that the provider serves: (1) The eligibility requirements
for consumer participation; (2) the monetary charges to the customer;
(3) the available upload/download speeds, data caps, and connected
devices, if any, with descriptions; (4) a provider customer service
number, prominently displayed on all promotional materials, that is
associated with an adequately staffed phone line; and (5) that the EBB
Program is a temporary emergency Federal Government benefit program
operated by the FCC and, upon its conclusion, customers will be subject
to the provider's regular rates, terms, and conditions.
130. The Commission declines to mandate that providers engage in
more prescriptive forms of EBB Program promotion. Instead, the
Commission grants providers the flexibility to develop their own
marketing plans. The Commission finds that providers are in the best
position to understand how to market a new program to the communities
they serve. However, the Commission encourages participating providers
to consider and implement some of the numerous consumer outreach
strategies described in the record. For instance, many commenters urged
providers to engage in outreach and partner with local government
agencies, through institutions providing basic needs to eligible
populations, such as housing, food and transportation and healthcare,
schools eligible for free or reduced lunch, school breakfast, and
E[hyphen]Rate, libraries, and Tribal organizations. The City of
Seattle, Washington State Broadband Office, Seattle Public Schools
District and Seattle Housing Authority recommended that providers
without retail locations where they serve low[hyphen]income customers
partner with a commercial, nonprofit, or other community organizations
to offer site[hyphen]based information about low[hyphen]cost offers for
low[hyphen]income communities. Additionally, some commenters,
recognizing that eligible households may not currently have access to
broadband, encouraged providers to use a variety of media outlets that
target minority and low-income populations--including newspapers,
television and radio stations, billboards, and internet
advertisements--to promote the EBB Program through Public Service
Announcements and crawls that direct listeners and viewers specifically
to where they can find local information
[[Page 19557]]
on the program, learn which local providers are participating, and ways
to contact those providers. Partnerships with disability organizations
and other entities that frequently provide internet access and
technical assistance to people with disabilities are further encouraged
by other commenters to publicize the EBB Program.
131. The Commission also directs the Consumer and Governmental
Affairs Bureau (CGB) to both to educate service providers on the EBB
Program and to engage in consumer outreach to the largest possible
number of eligible consumer participants. The Commission further
directs CGB and the Office of Native Affairs and Policy (ONAP) to
coordinate to develop educational and informational communications and
materials to advertise the EBB Program, such as a web page and digital
toolkit, in a printable format and translated into other languages,
that can easily be accessed by service providers, organizations, and
the public. The record demonstrated support for Commission-developed
marketing materials--including charts, posters, flyers and messaging--
that providers and other organizations can customize and share through
email, social media and other channels. The Commission also supports
the idea raised by commenters that to promote the EBB Program, the
Commission should work closely with, among others, Congressional
offices, other Federal agencies, state and local governments, community
organizations, schools, and libraries.
132. The Commission also directs USAC to develop and implement a
communications strategy, under the oversight of the WCB and CGB, to
provide training and information necessary to successfully participate
in the EBB Program to service providers--both ETCs and non-ETCs, Tribal
communities and organizations, associations and consumer advocates, the
E-Rate community, potential eligible consumers, and the public at
large. The objective for the communications plan should be to ensure
that both current and new stakeholders can learn about and successfully
participate in the EBB Program and ensure discounts on broadband
service and connected devices are efficiently and effectively provided
to eligible consumers. The Commission anticipates that USAC's
communications strategy will include a dedicated, regularly updated web
page and other outreach methods including webinars, bulletins, email
campaigns, and direct outreach to providers, eligible consumers, Tribal
communities, schools, libraries, and other organizations that serve EBB
Program eligible populations. The record overwhelmingly supported such
wide-ranging communications efforts. To help ensure that households are
aware of affordable broadband services for which they may likely
qualify, the Commission directs USAC to coordinate with state and
Federal partners, and community support organizations such as food
banks to promote the availability of Lifeline as a supplement to the
EBB Program or as an option when the benefit is eliminated. Indeed,
commenters urged the Commission and USAC to work closely with
congressional offices, coordinate with other Federal agencies, state
and local organization, Tribes, consumer-facing agencies, trade
associations, schools, libraries, and hospitals that could assist with
educating low-income consumers about the program and the provider
options that are available as a result. The Commission strongly
encourages CGB, WCB, and USAC to incorporate these recommendations into
their outreach efforts.
133. Lastly, the Commission strongly encourages other Federal
agencies, state and local governments, groups, and broadband offices,
youth groups and organizations, schools and libraries to promote the
EBB Program to eligible households. The Colorado Communications and
Utility Alliance (CCUA) emphasized that ``local governments have
ability to promote the EBBP through bill inserts, electronic
notification to customers, company websites and social media.'' The
CCUA, as well as the National Association of Telecommunications
Officers and Advisors, pointed to the recent success of local
governments and community organizations to provide a wide range of
pandemic related information to citizens. Similarly, the City of
Longmont, Colorado reported that it ``has an arsenal of tools at its
disposal to promote the availability of the EBBP, and is prepared to
utilize them to the fullest extent.'' Therefore, the Commission agrees
with commenters that these entities that work with program eligible
populations would be highly effective in raising awareness about the
EBB Program.
134. Audits. The CAA requires the Commission to adopt audit
requirements to ensure that participating providers are in compliance
with the program rules and to prevent waste, fraud, and abuse in the
EBB Program. A finding of waste, fraud, or abuse or an improper payment
identified by the Commission or the Inspector General of the Commission
must include (1) the name of the participating provider; (2) the amount
of funding made available from the EBB Program to the provider; (3) the
amount of funding determined to be an improper payment to the provider;
(4) a description of to what extent funding made available from the EBB
Program that was an improper payment was used for a reimbursement for a
connected devise or a reimbursement for an internet service offering;
(5) whether, in the case of a connected device, such device, or the
value thereof, has been recovered; (6) whether any funding from the EBB
Program was made available to a participating provider for an emergency
broadband benefit for a person outside the eligible household; and (7)
whether any funding from the EBB Program was made available to
reimburse a participating provider for an emergency broadband benefit
made available to an eligible household in which all members of such
household necessary to satisfy the eligibility requirements were
deceased. Within one year of the date of the enactment of the CAA, the
Commission's Office of Inspector General must conduct an audit of the
disbursements made to a representative sample of participating
providers. The record generally supported the use of audits to ensure
compliance and accountability in the EBB Program. Multiple commenters
urged the Commission to adopt audit requirements similar to those
procedures used in the Lifeline program ``to ensure compliance and to
prevent waste, fraud, and abuse,'' and to focus its audit and fraud-
prevention efforts on rule violations that occur at scale and that
impact the largest number of consumers.'' Others contend that the
current Lifeline audit process requires substantial reform or support a
more simplified version of the process that does not impede
participation by households and providers or have an adverse impact on
customer privacy and data security. Commenters agreed that
participating providers should be required to collect and retain
documentation sufficient to support compliance with any certifications
and that such record keeping requirements should be clearly defined.
135. The Commission agrees with the commenters that it is
imperative to require audits to confirm the integrity of the EBB
Program and prevent fraud, waste, and abuse in the program. To that
end, the Commission delegates authority to the OMD to develop and
implement an audit process of participating providers that complies
with all requirements in sections 904(b)(7) and (8) of the CAA. OMD may
[[Page 19558]]
obtain the assistance of third parties, including but not limited to
USAC, in carrying out this effort. Consistent with the Commission
experience regarding the Universal Service Fund, the Commission finds
that audits are the most effective way to ensure compliance with the
Commission rule requirements.
136. Enforcement. The CAA provides that a violation of its section
904, which establishes the EBB Program, or any regulation promulgated
under that section ``shall be treated as a violation of the
Communications Act of 1934 or a regulation promulgated under such
Act.'' The Commission is compelled to enforce this section and the
associated regulations ``in the same manner, by the same means, and
with the same jurisdiction, powers, and duties as though all applicable
terms and provisions of the Communications act of 1934 were
incorporated into and made a part of this section.'' In the Public
Notice, DA 21-6, the WCB sought comment on the authority of the
Commission to impose administrative forfeitures and other penalties on
program participants found to be in violation of the program rules and
requirements. The record largely supported the application of the
Commission's existing enforcement powers, including imposing
administrative forfeitures and other penalties on participating
providers that violate the program rules and requirements, to protect
the integrity of the EBB Program. The National Lifeline Association
urged that ``[a]ny proposed forfeitures under the [EBB Program] rules
should be based on reasonable recoveries for rule violations and three
times the amount of harm to the [EBB Program] (treble damages) for
cases of actual fraud.'' T-Mobile argued that in order to avoid
discouraging providers from participating in the EBB Program, the
Commission should not treat a violation of its other rules as a basis
for withholding EBB Program funding from participants. Consistent with
this statutory direction and the record, the Commission decides to use
the Commission's existing, statutorily permitted enforcement powers to
initiate investigations and impose administrative forfeitures. In
addition, the Commission would apply the Commission's suspension and
debarment rules currently applicable to the USF program to EBB Program
participating providers. The Commission would also withhold EBB Program
funds from participants found to be in violation of the EBB Program
rules, if appropriate, and will also seek to recoup improperly
disbursed funds, in addition to appropriate enforcement penalties. The
Commission finds that these enforcement mechanisms sufficiently balance
the need for widespread participation in the EBB Program with the
importance of maintaining the program's integrity.
137. Application of Other Part 54 Regulations. The Commission uses
the authority granted by the CAA to apply portions of 47 CFR part 54--
pertaining to definitions, de-enrollment, program integrity, and the
use of USAC--to the EBB Program.
138. Subpart E. Due to similarities between the programs and the
use of certain USAC Lifeline systems to administer the EBB Program, the
Commission elects to apply select portions of the regulations that
control the Lifeline program to the EBB Program. Specifically, the
Commission applies the following definitions in Sec. 54.400 of the
Commission's rules to the EBB Program, subject to the further
interpretations expounded upon in the RO: (f) Income; (g) duplicative
support; (h) household; (i) National Lifeline Accountability Database
of Database; (j) Qualifying assistance program; (k) Direct service; (l)
Broadband internet access service; (o) National Lifeline Eligibility
Verifier; and (p) Enrollment representatives. Maintaining uniform
definitions across the two programs will facilitate a quick launch and
efficient administration for the Commission, USAC, and participating
providers. What is more, the Commission limits application of the
Lifeline rules to those specifically enumerated in the Order to balance
the need of ensuring that the EBB Program has adequate guidelines and
parameters with the concern of chilling participation by providing a
complex framework that may be unfamiliar to new providers or serve as a
bar to participation in this temporary program.
139. The Commission also elects to apply relevant subsections of
Sec. 54.404 of the Commission's rules, outlining carrier interactions
with the NLAD, and portions of Sec. 54.405 of the Commission's rules
to the EBB Program concerning carrier obligations and de-enrollment.
Specifically, the Commission applies Sec. 54.405(e)(1), (2), and (5)
of the Commission's rules, for de-enrollments generally, de-enrollments
for duplicative support, and de-enrollments requested by the
subscriber, respectively. In the definition for de-enrollment requested
by the subscriber, the Commission directs USAC to accept and process
de-enrollment requests directly from EBB Program subscribers, and to
notify the subscriber's provider when such a de-enrollment occurs. This
additional method for de-enrollment by subscribers will assist in
administering funds efficiently and provide further certainty to
participants regarding their ability to transition out of this
temporary program.
140. For de-enrollment for non-usage, however, the Commission
adopts a modified requirement--as permitted by the CAA--to adapt to the
unique circumstances provided by the pandemic, the limited duration of
the EBB Program, and the participation of non-ETC providers that may
not have already designed processes to comport with the specific
Lifeline usage requirements. Accordingly, the Commission requires that
providers submit a certification in their reimbursement claim that
every subscriber claimed has used their supported service, as defined
in Sec. 54.407(c)(2) of the Commission's rules, at least once during
the service month being claimed. Providers must retain documentation
demonstrating the subscriber monthly usage amounts to support this
certification. The Commission does not adopt for the EBB Program the
notice and de-enrollment process required in the Lifeline program
rules, but participating providers that fail to resolve non-usage by
households enrolled in the EBB Program will be unable to claim the
program benefit for those households. This modification ensures that
the limited funds provided by the CAA will reach those whose needs are
greatest by protecting against supporting unused service.
141. Additionally, the Commission adopts for the EBB Program a
modification of the subscriber eligibility determination and
certification found in Sec. 54.410 of the Commission's rules, and
require all participating providers to implement policies and
procedures for ensuring that their EBB Program households are eligible
to receive the Emergency Broadband Benefit. Accordingly, a provider may
not provide a consumer with an activated device that it represents
enables use of Emergency Broadband Benefit-supported service, nor may
it activate service that it represents to be Emergency Broadband
Benefit-supported service, unless and until it has: (1) Confirmed that
the household is an eligible household pursuant to section III(B) of
the RO, and; (2) Completed the eligibility determination and
certification required by section III(B) of the RO, and any other
necessary enrollment steps expounded upon in the RO. We find that these
preventative measures provide a front-end guard against the improper
use of the limited
[[Page 19559]]
funds provided by the CAA, and protect against waste, fraud, and abuse.
142. To further ensure program integrity, the Commission applies
the following sections of the Lifeline rules to the EBB Program: Sec.
54.407(a), (c)(2)(i) through (v), (d) and (e) of the Commission's
rules, pertaining to the number of participants as of the first of the
month (snapshot), the definition of service usage, reimbursement
certifications, and records; Sec. 54.417 of the Commission's rules,
pertaining to recordkeeping requirements; and, Sec. 54.419 of the
Commission's rules, pertaining to the validity of e-signatures. The
Commission notes that these rule sections, as applied to the EBB
Program, are the subject of more detailed discussions in the RO. We
also require participating providers that use enrollment
representatives to comply with the Representative Accountability
Database registration requirement established in Sec. Sec. 54.400(p)
and 54.406(a) of the Commission's rules. Requiring registration for
employees, agents, contractors, or subcontractors of participating
providers or their third-party entities prior to those personnel
providing information to the USAC systems will bolster the security of
the system and help monitor for suspected non-compliance in program
activity. However, the Commission declines to apply Sec. 54.406(b) of
the Commission's rules to avoid discouraging provider participation and
diminishing consumer choice in the EBB Program.
143. The record supports the use of these Lifeline rules in
implementing the EBB Program, including the use of the National
Verifier, NLAD, RAD, snapshot dates and process, and de-enrollment
requirements and deadlines. The Commission agrees with commenters that
these established processes will assist in the quick and efficient
implementation of the EBB Program while protecting against waste,
fraud, and abuse.
144. Use of USAC. The Commission also uses the authority granted by
the CAA to avail ourselves of USAC's services to implement the EBB
Program, including administering approvals and elections of
participating providers and determinations of household eligibility,
including whether a household resides on Tribal lands, by relying upon
USAC-administrated processes and systems, including the National
Verifier, NLAD, RAD, and LCS for the provider reimbursement process,
call centers for program support, provider and consumer outreach, and
conducting program integrity reviews. The record supported using USAC
and its processes for the efficient and effective administration of the
program, and the Commission believes USAC's experience administering
the Lifeline program makes USAC uniquely situated to be the
administrator of the EBB Program.
145. Subpart H. The Commission next applies Sec. 54.702(c) of the
Commission's rules to the EBB Program as well, preventing USAC from
making policy, interpreting unclear statutes or rules relied upon to
implement the EBB Program, or interpreting the intent of Congress.
Additionally, the Commission grants USAC the authority to conduct
program audits of contributors and providers, as provided in Sec.
54.707 of the Commission's rules. This grant, however, is subject to
the further direction as set forth in section III(G) of the RO.
146. Subpart I. Lastly, the Commission provides a path for recourse
to parties aggrieved by decisions issued by USAC. Specifically, the
Commission requires review of decisions issued by USAC to follow the
requirements set forth in 47 CFR Subpart I. The Commission finds these
existing processes sufficient to provide meaningful review of decisions
issued by USAC during the EBB Program.
147. Delegations to the Bureau and Office of Managing Director. The
Commission delegates authority to the WCB and OMD to make necessary
adjustments to the program administration and to provide additional
detail and specificity to the requirements of the EBB Program to
conform with the intent of the RO and ensure the efficient functioning
of the program.
148. In addition, the Commission delegates financial oversight of
the EBB Program to the Commission's Managing Director and directs the
OMD to work in coordination with the WCB to ensure that all financial
aspects of the program have adequate internal controls. These duties
fall within OMD's current delegated authority to ensure that the
Commission operates in accordance with Federal financial statutes and
guidance. Such financial oversight must be consistent with the rules
adopted in the RO. OMD performs this role with respect to USAC's
administration of the Commission's Universal Service programs, and the
Covid-19 Telehealth program, and the Commission anticipates that OMD
will leverage existing policies and procedures, to the extent
practicable and consistent with section 904 of the CAA, to ensure the
efficient and effective management of the program. Finally, the
Commission notes that OMD is required to consult with the WCB on any
policy matters affecting the program, consistent with Sec. 0.91(a) of
the Commission's rules. OMD, in coordination with the WCB, may issue
additional directions to USAC and program participants in furtherance
of its responsibilities.
149. In its administration of the EBB Program, USAC is directed to
comply with, on an ongoing basis, all applicable laws and Federal
government guidance on privacy and information security standards and
requirements, such as the Privacy Act, relevant provisions in the
Federal Information Security Modernization Act of 2014, National
Institute of Standards and Technology publications, and Office of
Management and Budget guidance.
150. The Commission recognizes that, once implementation of the EBB
Program begins, the Commission or USAC may encounter unforeseen issues
or problems with the administration that will need to be resolved. To
achieve widespread participation by eligible households in the EBB
Program, the Commission delegates this authority to Commission staff to
address and resolve such issues.
III. Procedural Matters
A. Paperwork Reduction Act Analysis
151. Pursuant to section 904(h)(2) of the Consolidated
Appropriations Act, the collection of information sponsored or
conducted under the regulations promulgated in the Report and Order is
deemed not to constitute a collection of information for the purposes
of the Paperwork Reduction Act, 44 U.S.C. 3501-3521.
B. Congressional Review Act
152. The Commission has determined, and the Administrator of the
Office of Information and Regulatory Affairs, Office of Management and
Budget (OMB), concurs, that the regulations implementing the EBB
Program are a ``major rule'' under the Congressional Review Act, 5
U.S.C. 804(2). By exempting this rulemaking proceeding from the notice
and comment provisions of the Administrative Procedure Act, 5 U.S.C.
553(b), the Commission concludes that Congress has determined notice
and public procedure under the Administrative Procedure Act to be
impracticable, unnecessary, or contrary to the public interest. In
addition, the exemption of this proceeding from the Administrative
Procedure Act requirement that rules cannot become effective until 30
days after publication in the Federal Register, 5 U.S.C. 553(d),
demonstrates Congressional intent that the rules the Commission adopt
shall become effective without delay.
[[Page 19560]]
Accordingly, the Commission finds for good cause that notice and public
procedure on the rules adopted herein are impracticable, unnecessary,
or contrary to the public interest, and therefore the Report and Order
would become effective April 13, 2021 pursuant to 5 U.S.C. 808(2). The
Commission will send a copy of the Report and Order to Congress and the
Government Accountability Office pursuant to 5 U.S.C. 801(a)(1)(A).
C. Regulatory Flexibility Act
153. The Regulatory Flexibility Act of 1980, as amended (RFA),
requires that an agency prepare a final regulatory flexibility analysis
``whenever an agency promulgates a final rule under [5 U.S.C. 553],
after being required by that section or any other law to publish a
general notice of proposed rulemaking.'' Pursuant to the Consolidated
Appropriations Act, section 553 does not apply to the rulemaking
proceeding implementing the EBB Program. Accordingly, no Final
Regulatory Flexibility Analysis was required for the Report and Order.
IV. Ordering Clauses
154. Accordingly, it is ordered that, pursuant to the authority
contained in Section 904 of Division N, Title IX of the Consolidated
Appropriations Act, 2021, Pub. L. No 116-260, 134 Stat. 1182, the
Report and order is adopted.
155. It is further ordered that the Commission shall send a copy of
the Report and Order to the Congress and the Government Accountability
Office pursuant to the Congressional Review Act, see 5 U.S.C.
801(a)(1)(A).
List of Subjects in 47 CFR Part 54
Communications common carriers, Health facilities, Infants and
children, internet, Libraries, Reporting and recordkeeping
requirements, Schools, Telecommunications, Telephone.
Federal Communications Commission
Marlene Dortch,
Secretary.
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, 1302, and 1601-1609 unless otherwise
noted.
0
2. Add subpart P to read as follows:
Subpart P--Emergency Broadband Benefit Program
Sec.
54.1600 Definitions.
54.1601 Participating providers.
54.1602 Emergency Broadband Benefit.
54.1603 Emergency Broadband Benefit Program support amount.
54.1604 Participating provider obligation to offer Emergency
Broadband Benefit Program.
54.1605 Household qualification for Emergency Broadband Benefit
Program.
54.1606 Household eligibility determinations.
54.1607 Enrollment representative registration.
54.1608 Reimbursement for providing Emergency Broadband Benefit
Program discount.
54.1609 De-enrollment from the Emergency Broadband Benefit Program.
54.1610 Expiration of Emergency Broadband Benefit Program.
54.1611 Recordkeeping requirements.
54.1612 Validity of electronic signatures.
Subpart P--Emergency Broadband Benefit Program
Sec. 54.1600 Definitions.
(a) Broadband internet access service. The term ``broadband
internet access service'' has the meaning given such term in 47 CFR
8.1(b), or any successor regulation.
(b) Broadband provider. The term ``broadband provider'' means a
provider of broadband internet access service.
(c) Commission. The term ``Commission'' means the Federal
Communications Commission.
(d) Connected device. The term ``connected device'' means a laptop
or desktop computer or a tablet.
(e) Designated as an eligible telecommunications carrier. The term
``designated as an eligible telecommunications carrier'', with respect
to a broadband provider, means the broadband provider is designated as
an eligible telecommunications carrier under section 214(e) of the
Communications Act of 1934 (47 U.S.C. 214(e)).
(f) Direct service. As used in this subpart, direct service means
the provision of service directly to the qualifying low-income
consumer.
(g) Duplicative support. ``Duplicative support'' exists when an
Emergency Broadband Benefit subscriber is receiving two or more
Emergency Broadband Benefit services concurrently or two or more
subscribers in a household have received a connected device with an
Emergency Broadband Benefit discount
(h) Eligible household. The term ``eligible household'' means,
regardless of whether the household or any member of the household
receives support under subpart E of 47 CFR part 54 (or any successor
regulation), and regardless of whether any member of the household has
any past or present arrearages with a broadband provider, a household
in which--
(1) At least one member of the household meets the qualifications
47 CFR 54.409(a) or (b) (or any successor regulation);
(2) At least one member of the household has applied for and been
approved to receive benefits under the free and reduced price lunch
program under the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.) or the school breakfast program under section 4 of
the Child Nutrition Act of 1966 (42 U.S.C. 1773);
(3) At least one member of the household has experienced a
substantial loss of income since February 29, 2020, that is documented
by layoff or furlough notice, application for unemployment insurance
benefits, or similar documentation or that is otherwise verifiable
through the National Verifier or National Lifeline Accountability
Database;
(4) At least one member of the household has received a Federal
Pell Grant under section 401 of the Higher Education Act of 1965 (20
U.S.C. 1070a) in the current award year, if such award is verifiable
through the National Verifier or National Lifeline Accountability
Database or the participating provider verifies eligibility under 47
CFR 54.1606(a)(2); or
(5) At least one member of the household meets the eligibility
criteria for a participating provider's existing low-income or COVID-19
program, subject to the requirements of 47 CFR 54.1606(a)(2).
(i) Emergency broadband benefit. The term ``emergency broadband
benefit'' means a monthly discount for an eligible household applied to
the actual amount charged to such household, which shall be no more
than the standard rate for an internet service offering and associated
equipment, in an amount equal to such amount charged, but not more than
$50, or, if an internet service offering is provided to an eligible
household on Tribal land, not more than $75.
(j) Emergency period. The term ``emergency period'' means the
period that--
(1) Begins on the date of the enactment of the Consolidated
Appropriations Act; and
(2) Ends on the date that is 6 months after the date on which the
determination by the Secretary of Health and Human Services pursuant to
section
[[Page 19561]]
319 of the Public Health Service Act (42 U.S.C. 247d) that a public
health emergency exists as a result of COVID-19, including any renewal
thereof, terminates.
(k) Enrollment representative. An employee, agent, contractor, or
subcontractor, acting on behalf of an eligible telecommunications
carrier or third-party entity, who directly or indirectly provides
information to the Administrator for the purpose of eligibility
verification, enrollment, subscriber personal information updates,
benefit transfers, or de-enrollment.
(l) Household. A ``household'' is any individual or group of
individuals who are living together at the same address as one economic
unit. A household may include related and unrelated persons. An
``economic unit'' consists of all adult individuals contributing to and
sharing in the income and expenses of a household. An adult is any
person eighteen years or older. If an adult has no or minimal income,
and lives with someone who provides financial support to him/her, both
people shall be considered part of the same household. Children under
the age of eighteen living with their parents or guardians are
considered to be part of the same household as their parents or
guardians.
(m) Income. ``Income'' means gross income as defined under section
61 of the Internal Revenue Code, 26 U.S.C. 61, for all members of the
household. This means all income actually received by all members of
the household from whatever source derived, unless specifically
excluded by the Internal Revenue Code, Part III of Title 26, 26 U.S.C.
101 et seq.
(n) Internet service offering. The term ``internet service
offering'' means, with respect to a broadband provider, broadband
internet access service provided by such provider to a household,
offered in the same manner, and on the same terms, as described in any
of such provider's offerings for broadband internet access service to
such household, as on December 1, 2020.
(o) Lifeline qualifying assistance program. A ``Lifeline qualifying
assistance program'' means any of the Federal or Tribal assistance
programs the participation in which, pursuant to 47 CFR 54.409(a) or
(b), qualifies a consumer for Lifeline service, including Medicaid;
Supplemental Nutrition Assistance Program; Supplemental Security
Income; Federal Public Housing Assistance; Veterans and Survivors
Pension Benefit; Bureau of Indian Affairs general assistance; Tribally
administered Temporary Assistance for Needy Families (Tribal TANF);
Head Start (only those households meeting its income qualifying
standard); or the Food Distribution Program on Indian Reservations
(FDPIR).
(p) National Lifeline Accountability Database. The ``National
Lifeline Accountability Database'' is an electronic system, with
associated functions, processes, policies and procedures, to facilitate
the detection and elimination of duplicative support, as directed by
the Commission.
(q) National Lifeline Eligibility Verifier or National Verifier.
The ``National Lifeline Eligibility Verifier'' or ``National Verifier''
is an electronic and manual system with associated functions,
processes, policies and procedures, to facilitate the determination of
consumer eligibility for the Lifeline program and Emergency Broadband
Benefit Program, as directed by the Commission.
(r) Participating provider. The term ``participating provider''
means a broadband provider that--
(1)(i) Is designated as an eligible telecommunications carrier; or
(ii) Meets requirements established by the Commission for
participation in the Emergency Broadband Benefit Program and is
approved by the Commission under 47 CFR 54.1601(b); and
(2) Elects to participate in the Emergency Broadband Benefit
Program.
(s) Standard rate. The term ``standard rate'' means the monthly
retail rate for the applicable tier of broadband internet access
service as of December 1, 2020, excluding any taxes or other
governmental fees.
(t) Tribal lands. For purposes of this subpart, ``Tribal lands''
include any Federally recognized Indian tribe's reservation, pueblo, or
colony, including former reservations in Oklahoma; Alaska Native
regions established pursuant to the Alaska Native Claims Settlement Act
(85 Stat. 688); Indian allotments; Hawaiian Home Lands--areas held in
trust for Native Hawaiians by the state of Hawaii, pursuant to the
Hawaiian Homes Commission Act, 1920 July 9, 1921, 42 Stat. 108, et
seq., as amended; and any land designated as such by the Commission for
purposes of subpart E of 47 CFR part 54 (or any successor regulation)
pursuant to the designation process in 47 CFR 54.412.
Sec. 54.1601 Participating providers.
(a) Eligible telecommunications carriers. A broadband provider that
is designated as an eligible telecommunications carrier may participate
in the Emergency Benefit Broadband Program as a participating provider.
(b) Other broadband providers. A broadband provider that is not
designated as an eligible telecommunications carrier may seek approval
from the Wireline Competition Bureau to participate in the Emergency
Broadband Benefit Program as a participating provider.
(1) The Wireline Competition Bureau shall review and act on
applications to be designated as a participating provider on an
expedited basis. Such applications shall contain:
(i) The states or territories in which the provider plans to
participate;
(ii) The service areas in which the provider has the authority, if
needed, to operate in each state or territory, but has not been
designated an eligible telecommunications carrier; and,
(iii) Certifications and documentation of the provider's plan to
combat waste, fraud, and abuse.
(2) Notwithstanding paragraph (b)(1) of this section, the Wireline
Competition Bureau shall automatically approve as a participating
provider a broadband provider that has an established program as of
April 1, 2020, that is widely available and offers internet service
offerings to eligible households and maintains verification processes
that are sufficient to avoid fraud, waste, and abuse. Such applications
seeking automatic approval shall contain:
(i) The states or territories in which the provider plans to
participate;
(ii) The service areas in which the provider has the authority, if
needed, to operate in each state or territory, but has not been
designated an Eligible Telecommunications Carrier; and,
(iii) A description, supported by documentation, of the established
program with which the provider seeks to qualify for automatic
admission to the Emergency Broadband Benefit Program.
(c) Election notice. All participating providers must file an
election notice with the Administrator. The election notice must be
submitted in a manner and form consistent with the direction of the
Wireline Competition Bureau and the Administrator. At a minimum the
election notice should contain:
(1) The states or territories in which the provider plans to
participate in the Emergency Broadband Benefit Program;
(2) A statement that, in each state or territory, the provider was
a ``broadband provider'' as of December 1, 2020;
(3) A list of states or territories where the provider is an
existing Eligible Telecommunications Carrier, if any;
(4) A list of states or territories where the provider received
Wireline
[[Page 19562]]
Competition Bureau approval, whether automatic or expedited, to
participate, if any;
(5) Whether the provider intends to distribute connected devices;
(6) A description of the internet service offerings for which the
provider plans to seek reimbursement in each state or territory; and,
(7) Documentation demonstrating the standard rates for those
services in each state; and any other information necessary to
establish participating providers in the Administrator's systems.
(d) Suspension and debarment. The prohibition on participation and
suspension and debarment rules established in 47 CFR 54.8, shall apply
to activities associated with or related to the Emergency Broadband
Benefit Program.
Sec. 54.1602 Emergency Broadband Benefit.
(a) The Emergency Broadband Benefit Program shall provide
reimbursement to a participating provider for providing a discount on
the price of broadband internet access service (and associated
equipment), a connected device, or both, to an eligible household
during the emergency period.
(b) Participating providers may allow consumers whose households
qualify for the Emergency Broadband Benefit Program pursuant to 47 CFR
54.1605, to apply the Emergency Broadband Benefit to any residential
service plan that includes broadband internet access service or a
bundle of broadband internet access service along with fixed or mobile
voice telephony service, text messaging service, or both.
Sec. 54.1603 Emergency Broadband Benefit Program support amount.
(a) The Emergency Broadband Benefit Program support amount for all
participating providers shall equal the actual discount provided to an
eligible household off of the actual amount charged to such household,
which shall be no more than the standard rate for an internet service
offering and associated equipment, but not more than $50.00 per month,
if that provider certifies that it will pass through the full amount of
support to the eligible household, or not more than $75.00 per month,
if that provider certifies that it will pass through the full amount of
support to the eligible household on Tribal lands, as defined in 47 CFR
54.1600(t).
(b) A participating provider that, in addition to providing the
Emergency Broadband Benefit Program to an eligible household, supplies
such household with a connected device may be reimbursed up to $100.00
for such connected device, if the charge to such eligible household is
more than $10.00 but less than $50.00 for such connected device, except
that a participating provider may receive reimbursement for no more
than one (1) connected device per eligible household.
(c) If the amount of funding remaining in the Emergency Broadband
Connectivity Fund is less than the total amount of valid reimbursement
claims in the Emergency Broadband Benefit Program, the support amount
for all participating providers submitting valid reimbursement claims
for a month may be less than the full support amount permitted under
this section.
Sec. 54.1604 Participating provider obligation to offer Emergency
Broadband Benefit Program.
(a) All participating providers in the Emergency Broadband Benefit
Program must make available the Emergency Broadband Benefit Program to
qualifying low-income consumers.
(b) All participating providers in the Emergency Broadband Benefit
Program are encouraged to:
(1) Publicize the availability of the Emergency Broadband Benefit
Program in a manner reasonably designed to reach those likely to
qualify for the service.
(2) Indicate on all materials describing the Emergency Broadband
Benefit Program, using easily understood language in the dominant
languages of the communities the provider serves:
(i) The eligibility requirements for consumer participation;
(ii) That the Emergency Broadband Benefit is non-transferable and
is limited to one discount per household;
(iii) The monetary charges to the customer;
(iv) The available upload/download speeds and data caps for the
covered services, and a list of connected devices, if any, with
descriptions;
(v) The provider's customer service telephone number, which must be
prominently displayed on all promotional materials and adequately
staffed by customer service representatives; and
(vi) That the Emergency Broadband Benefit Program is a temporary
emergency Federal Government benefit program operated by the Federal
Communications Commission and, upon its conclusion, customers will be
subject to the provider's regular rates, terms, and conditions.
Sec. 54.1605 Household qualification for Emergency Broadband Benefit
Program.
(a) To constitute an eligible household:
(1) The household income as defined in 47 CFR 54.1600(m) must be at
or below 135% of the Federal Poverty Guidelines for a household of that
size; or
(2) At least one member of the household must receive benefits from
one of the following Federal assistance programs: Medicaid;
Supplemental Nutrition Assistance Program; Supplemental Security
Income; Federal Public Housing Assistance; or Veterans and Survivors
Pension Benefit; or
(3) At least one member of the household has applied for and been
approved to receive benefits under the free and reduced price lunch
program under the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.) or the school breakfast program under section 4 of
the Child Nutrition Act of 1966 (42 U.S.C. 1773); or
(4) At least one member of the household has experienced a
substantial loss of income since February 29, 2020, that is documented
by layoff or furlough notice, application for unemployment insurance
benefits, or similar documentation or that is otherwise verifiable
through the National Verifier; or
(5) At least one member of the household has received a Federal
Pell Grant under section 401 of the Higher Education Act of 1965 (20
U.S.C. 1070a) in the current award year, if such award is verifiable
through the National Verifier or the participating provider verifies
eligibility under 47 CFR 54.1606(a)(2); or
(6) At least one member of the household meets the eligibility
criteria for a participating provider's existing low-income or COVID-19
program, subject to the requirements of 47 CFR 54.1606(a)(2); or
(7) If the household is located on Tribal lands, at least one
member of the household participates in one of the following Tribal-
specific Federal assistance programs: Bureau of Indian Affairs general
assistance; Tribally administered Temporary Assistance for Needy
Families; Head Start (only those households meeting its income
qualifying standard); or the Food Distribution Program on Indian
Reservations.
(b) In addition to meeting the qualifications provided in paragraph
(a) of this section, in order to constitute an eligible household, no
member of the household may already be receiving an Emergency Broadband
Benefit Program discount.
[[Page 19563]]
Sec. 54.1606 Household eligibility determinations.
(a) Eligibility verification processes. To verify whether a
household is an eligible household, a participating provider shall--
(1) Use the National Verifier; or
(2) Rely upon an alternative verification process of the
participating provider, if--
(i) The participating provider submits information as required by
the Commission regarding the alternative verification process prior to
seeking reimbursement; and
(ii) Not later than 7 days after receiving the information required
under paragraph (a)(2)(i) of this section, the Wireline Competition
Bureau--
(A) Determines that the alternative verification process will be
sufficient to avoid waste, fraud, and abuse; and
(B) Notifies the participating provider of the determination under
paragraph (a)(2)(ii)(A) of this section; or
(3) Rely on a school to verify the eligibility of a household based
on the participation of the household in the free and reduced price
lunch program or the school breakfast program as described in 47 CFR
54.1600(h)(2). The participating provider must retain documentation
demonstrating the school verifying eligibility, the program(s) that the
school participates in, the qualifying household, and the program(s)
the household participates in.
(b) Provider policies and procedures. All participating providers
must implement policies and procedures for ensuring that their
Emergency Broadband Benefit Program households are eligible to receive
the Emergency Broadband Benefit. A provider may not provide a consumer
with service that it represents to be Emergency Broadband Benefit-
supported service or seek reimbursement for such service, unless and
until it has:
(1) Confirmed that the household is an eligible household pursuant
to 47 CFR 54.1605;
(2) Completed any other necessary enrollment steps, and;
(3) Securely retained all information and documentation it receives
related to the eligibility determination and enrollment, consistent
with 47 CFR 54.1611.
(c) One-Per-Household Worksheet. If the prospective household
shares an address with one or more existing Emergency Broadband Benefit
Program subscribers according to the National Lifeline Accountability
Database or National Verifier, the prospective subscriber must complete
a form certifying compliance with the one-per-household rule prior to
initial enrollment.
(d) The National Lifeline Accountability Database. In order to
receive Emergency Broadband Benefit Program support, participating
providers must comply with the following requirements:
(1) All participating providers must query the National Lifeline
Accountability Database to determine whether a prospective subscriber
is currently receiving an Emergency Broadband Benefit-supported service
from another participating provider; and whether anyone else living at
the prospective subscriber's residential address is currently receiving
an Emergency Broadband Benefit-supported service.
(2) If the National Lifeline Accountability Database indicates that
a prospective subscriber who is not seeking to transfer his or her
Emergency Broadband Benefit, is currently receiving an Emergency
Broadband Benefit-supported service, the participating provider must
not provide and shall not seek or receive Emergency Broadband Benefit
reimbursement for that subscriber.
(3) Participating providers may query the National Lifeline
Accountability Database only for the purposes provided in paragraphs
(e)(1) and (2) of this section, and to determine whether information
with respect to its subscribers already in the National Lifeline
Accountability Database is correct and complete.
(4) Participating providers must transmit to the National Lifeline
Accountability Database in a format prescribed by the Administrator
each new and existing Emergency Broadband Benefit Program subscriber's
full name; full residential address; date of birth; the telephone
number associated with the Emergency Broadband Benefit Program service;
the date on which the Emergency Broadband Benefit Program discount was
initiated; the date on which the Emergency Broadband Benefit Program
discount was terminated, if it has been terminated; the amount of
support being sought for that subscriber; and the means through which
the subscriber qualified for the Emergency Broadband Benefit Program.
(5) All participating providers must update an existing Emergency
Broadband Benefit Program subscriber's information in the National
Lifeline Accountability Database within ten business days of receiving
any change to that information, except as described in paragraph (d)(7)
of this section.
(6) All participating providers must obtain, from each new and
existing subscriber, consent to transmit the subscriber's information.
Prior to obtaining consent, the participating provider must describe to
the subscriber, using clear, easily understood language, the specific
information being transmitted, that the information is being
transmitted to the Administrator to ensure the proper administration of
the Emergency Broadband Benefit Program, and that failure to provide
consent will result in subscriber being denied the Emergency Broadband
Benefit.
(7) When a participating provider de-enrolls a subscriber from the
Emergency Broadband Benefit Program, it must transmit to the National
Lifeline Accountability Database the date of Emergency Broadband
Benefit Program de-enrollment within one business day of de-enrollment.
(8) All participating providers must securely retain subscriber
documentation that the participating provider reviewed to verify
subscriber eligibility, for the purposes of production during audits or
investigations or to the extent required by National Lifeline
Accountability Database or National Verifier processes, which require,
inter alia, verification of eligibility, identity, address, and age.
(9) A participating provider must not enroll or claim for
reimbursement a prospective subscriber in the Emergency Broadband
Benefit Program if the National Lifeline Accountability Database or
National Verifier cannot verify the subscriber's status as alive,
unless the subscriber produces documentation to demonstrate his or her
identity and status as alive.
(e) Connected device reimbursement and the National Lifeline
Accountability Database. In order to receive Emergency Broadband
Benefit Program reimbursement for a connected device, participating
providers must comply with the following requirements:
(1) Such participating provider must query the National Lifeline
Accountability Database to determine whether a prospective connected
device benefit recipient has previously received a connected device
benefit.
(2) If the National Lifeline Accountability Database indicates that
a prospective subscriber has received a connected device benefit, the
participating provider must not seek a connected device reimbursement
for that subscriber.
(3) Such participating provider shall not seek a connected device
reimbursement for a subscriber that is not receiving the Emergency
Broadband Benefit for service provided by the same participating
provider.
[[Page 19564]]
(4) Where two or more participating providers file a claim for a
connected device reimbursement for the same subscriber, only the
participating provider whose information was received and processed by
the National Lifeline Accountability Database or Lifeline Claims System
first, as determined by the Administrator, will be entitled to a
connected device reimbursement for that subscriber.
(5) All participating providers must obtain from each subscriber
consent to transmit the information required under paragraph (e)(1) of
this section. Prior to obtaining consent, the participating provider
must describe to the subscriber, using clear, easily understood
language, the specific information being transmitted, that the
information is being transmitted to the Administrator to ensure the
proper administration of the Emergency Broadband Benefit Program
connected device benefit, and that failure to provide consent will
result in the subscriber being denied the Emergency Broadband Benefit
Program connected device benefit.
Sec. 54.1607 Enrollment representative registration.
Enrollment representative registration. A participating provider
must require that enrollment representatives register with the
Administrator before the enrollment representative can provide
information directly or indirectly to the National Lifeline
Accountability Database or the National Verifier.
(a) As part of the registration process, participating providers
must require that all enrollment representatives provide the
Administrator with identifying information, which may include first and
last name, date of birth, the last four digits of his or her social
security number, email address, and residential address. Enrollment
representatives will be assigned a unique identifier, which must be
used for:
(1) Accessing the National Lifeline Accountability Database;
(2) Accessing the National Verifier;
(3) Accessing any eligibility database; and
(4) Completing any Emergency Broadband Benefit Program enrollment
or verification forms.
(b) Participating providers must ensure that enrollment
representatives shall not use another person's unique identifier to
enroll Emergency Broadband Benefit Program subscribers, recertify
Emergency Broadband Benefit Program subscribers, or access the National
Lifeline Accountability Database or National Verifier.
(c) Participating providers must ensure that enrollment
representatives shall regularly recertify their status with the
Administrator to maintain their unique identifier and maintain access
to the systems that rely on a valid unique identifier. Participating
providers must also ensure that enrollment representatives shall update
their registration information within 30 days of any change in such
information.
Sec. 54.1608 Reimbursement for providing Emergency Broadband Benefit
Program discount.
(a) Emergency Broadband Benefit Program support for providing a
qualifying broadband internet access service shall be provided directly
to a participating provider based on the number of actual qualifying
low-income households listed in the National Lifeline Accountability
Database that the participating provider serves directly as of the
first of the month.
(b) For each eligible household receiving Emergency Broadband
Benefit-supported service, the reimbursement amount shall equal the
appropriate support amount as described in 47 CFR 54.1603, except as
otherwise provided by 47 CFR 54.1603(c). The participating provider's
Emergency Broadband Benefit Program reimbursement shall not exceed the
participating provider's standard rate for that offering.
(c) A participating provider offering an Emergency Broadband
Benefit Program service with a standard rate that does not require the
participating provider to assess and collect a monthly fee from its
subscribers must certify that every subscriber claimed has used their
supported service, as defined by 47 CFR 54.407(c)(2), at least once
during the service month being claimed prior in order to claim that
subscriber for reimbursement in that month.
(d) A participating provider that, in addition to providing the
Emergency Broadband Benefit to an eligible household, provides such
household with a connected device may be reimbursed up to $100.00 for
such connected device, if the charge to such eligible household is more
than $10.00 but less than $50.00 for such connected device, except that
a participating provider may receive reimbursement for no more than one
(1) connected device per eligible household.
(e) In order to receive Emergency Broadband Benefit Program
reimbursement, an officer of the participating provider must certify,
as part of each request for reimbursement, that:
(1) The officer is authorized to submit the request on behalf of
the participating provider;
(2) The officer has read the instructions relating to
reimbursements and the funds sought in the reimbursement request are
for services and/or devices that were provided in accordance with the
Emergency Broadband Benefit Program rules and requirements;
(3) The participating provider is in compliance with all of the
rules in this subpart;
(4) The participating provider has obtained valid certification and
application forms as required by the rules in this subpart for each of
the subscribers for whom it is seeking reimbursement;
(5) The amount for which the participating provider is seeking
reimbursement from the Emergency Broadband Connectivity Fund is not
more than the standard rate;
(6) Each eligible household for which the participating provider is
seeking reimbursement for providing an internet service offering--
(i) Has not been and will not be charged--
(A) For such offering, if the standard rate for such offering is
less than or equal to the amount of the emergency broadband benefit for
such household; or
(B) More for such offering than the difference between the standard
rate for such offering and the amount of the emergency broadband
benefit for such household;
(ii) Will not be required to pay an early termination fee if such
eligible household elects to enter into a contract to receive such
internet service offering if such household later terminates such
contract;
(iii) Was not, after the date of the enactment of the Consolidated
Appropriations Act, subject to a mandatory waiting period for such
internet service offering based on having previously received broadband
internet access service from such participating provider; and
(iv) Will otherwise be subject to the participating provider's
generally applicable terms and conditions as applied to other
customers.
(7) Each eligible household for which the participating provider is
seeking reimbursement for supplying such household with a connected
device was charged by the provider more than $10.00 but less than
$50.00 for such connected device;
[[Page 19565]]
(8) That the connected device claimed meets the Commission's
requirements, that the reimbursement claim amount reflects the market
value of the device, and that the connected device has been delivered
to the household;
(9) The process used by the participating provider to verify that a
household is eligible for the Emergency Broadband Benefit Program, if
the provider elects an alternative verification process and that such
verification process was designed to avoid waste, fraud, and abuse.
(10) The provider has retained the relevant supporting documents
that demonstrate the connected devices requested are eligible for
reimbursement;
(11) All documentation associated with the reimbursement form,
including all records for services and/or connected devices provided,
will be retained for a period of at least six years after the last date
of delivery of the supported services and/or connected devices provided
through the Emergency Broadband Benefit Program, and are subject to
audit;
(12) The provider neither received nor paid kickbacks, as defined
by 41 U.S.C. 8701, in connection with the Emergency Broadband Benefit
Program;
(13) The information contained in this form is true, complete, and
accurate to the best of the officer's knowledge, information, and
belief, and is based on information known to the officer or provided to
officer by employees responsible for the information being submitted;
(14) The officer is aware that any false, fictitious, or fraudulent
information, or the omission of any material fact, may subject the
officer to criminal, civil, or administrative penalties for fraud,
false statements, false claims, or otherwise. (18 U.S.C. 286-287, 1001,
1341, 31 U.S.C. 3729-3730, 3801-3812.); and
(15) No service costs or devices sought for reimbursement have been
waived, paid, or promised to be paid by another entity, including any
Federal program.
(f) In order to receive Emergency Broadband Benefit Program
reimbursement, a participating provider must keep accurate records of
the revenues it forgoes in providing Emergency Broadband Benefit-
supported services. Such records shall be kept in the form directed by
the Administrator and provided to the Administrator at intervals as
directed by the Administrator or as provided in this subpart.
(g) In order to receive reimbursement, participating providers
shall submit certified reimbursement claims through Lifeline Claims
System by the 15th of each month, or the following business day in the
event the 15th is a holiday or falls on a weekend. If the participating
provider fails to submit a certified reimbursement claim by the
deadline for that month, the reimbursement claim will not be processed.
Sec. 54.1609 De-enrollment from the Emergency Broadband Benefit
Program.
(a) De-enrollment generally. If a participating provider has a
reasonable basis to believe that an Emergency Broadband Benefit Program
subscriber does not meet or no longer meets the criteria to be
considered an eligible household under 47 CFR 54.1605, the
participating provider must notify the subscriber of impending
termination of his or her Emergency Broadband Benefit discount.
Notification of impending termination must be sent in writing separate
from the subscriber's monthly bill, if one is provided, and must be
written in clear, easily understood language. The participating
provider must allow a subscriber 30 days following the date of the
impending termination letter to demonstrate continued eligibility. A
subscriber making such a demonstration must present proof of continued
eligibility to the National Verifier or the participating provider
consistent with the participating provider's approved alternative
verification process. A participating provider must de-enroll any
subscriber who fails to demonstrate eligibility within five business
days after the expiration of the subscriber's deadline to respond.
(b) De-enrollment for duplicative support. Notwithstanding
paragraph (a) of this section, upon notification by the Administrator
to any participating provider that a subscriber is receiving the
Emergency Broadband Benefit discount from another participating
provider, or that more than one member of a subscriber's household is
receiving the Emergency Broadband Benefit discount and that the
subscriber should be de-enrolled from participation in that provider's
Emergency Broadband Benefit program, the participating provider must
de-enroll the subscriber from participation in that provider's
Emergency Broadband Benefit discount within five business days. A
participating provider shall not claim any de-enrolled subscriber for
Emergency Broadband Benefit reimbursement following the date of that
subscriber's de-enrollment.
(c) De-enrollment requested by subscriber. If a participating
provider receives a request from a subscriber to de-enroll, it must de-
enroll the subscriber within two business days after the request.
Sec. 54.1610 Expiration of Emergency Broadband Benefit Program.
(a) Prior to the conclusion of the Emergency Broadband Benefit
Program, the Administrator will notify participating providers of the
projected final service month for which participating providers will be
eligible to receive reimbursement for valid reimbursement claims
submitted pursuant to 47 CFR 54.1608. In that final month when valid
reimbursement claims exceed remaining funds, the amount disbursed for
both service and connected device claims to participating providers
will be reduced on a pro-rata basis but will be no less than 50% of the
total support amount for timely filed claims for service and connected
devices provided to households.
(b) Concurrent with release of the notice by the Administrator
pursuant to paragraph (a) of this section, no new households shall be
enrolled in the Emergency Broadband Benefit Program.
(c) No later than 15 days after the Administrator provides notice
pursuant to paragraph (a) of this section, participating providers
shall give notice to subscribers receiving the Emergency Broadband
Benefit of the last date or service month that the full benefit will
apply to the household's bill, the last date or service month that the
partial, final-month benefit will apply to their bill, and the expected
rate of the broadband service once the benefit expires.
(d) At least 30 days before the end of the Emergency Broadband
Benefit Program, as indicated in the notice sent by the Administrator
pursuant to paragraph (a) of this section, participating providers must
notify households about the upcoming end to the Emergency Broadband
Benefit Program and clearly state that the household will be subject to
the participating provider's generally applicable terms and conditions
at the conclusion of the Emergency Broadband Benefit Program if the
household elects to continue receiving broadband service from the
participating provider.
Sec. 54.1611 Recordkeeping requirements.
Participating providers must maintain records to document
compliance with all Commission requirements governing the Emergency
Broadband Benefit Program for the six full preceding calendar years and
provide that documentation to the Commission or Administrator upon
request.
[[Page 19566]]
Participating providers must maintain the documentation related to the
eligibility determination and reimbursement claims for an Emergency
Broadband Benefit Program subscriber for as long as the subscriber
receives the Emergency Broadband Benefit discount from that
participating provider, but for no less than the six full preceding
calendar years.
Sec. 54.1612 Validity of electronic signatures.
(a) For the purposes of this subpart, an electronic signature,
defined by the Electronic Signatures in Global and National Commerce
Act, as an electronic sound, symbol, or process, attached to or
logically associated with a contract or other record and executed or
adopted by a person with the intent to sign the record, has the same
legal effect as a written signature.
(b) For the purposes of this subpart, an electronic record, defined
by the Electronic Signatures in Global and National Commerce Act as a
contract or other record created, generated, sent, communicated,
received, or stored by electronic means, constitutes a record.
[FR Doc. 2021-07456 Filed 4-12-21; 8:45 am]
BILLING CODE 6712-01-P