Implementation of Telecommunications Provisions of the Agricultural Improvement Act of 2018, 50604-50610 [2021-19319]
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50604
Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations
Finally, in its discretion, CBP will not
assert any exemptions with regard to
accessing or amending an individual’s
application data in a trusted or registered
traveler program or accessing their final
membership determination in the trusted or
registered traveler programs.
Exemptions from these particular
subsections are justified, on a case-by-case
basis to be determined at the time a request
is made, for the following reasons:
(a) From subsection (c)(3) and (4)
(Accounting for Disclosures) because release
of the accounting of disclosures could alert
the subject of an investigation of an actual or
potential criminal, civil, or regulatory
violation to the existence of that investigation
and reveal investigative interest on the part
of DHS as well as the recipient agency.
Disclosure of the accounting would therefore
present a serious impediment to law
enforcement efforts and/or efforts to preserve
national security. Disclosure of the
accounting would also permit the individual
who is the subject of a record to impede the
investigation, to tamper with witnesses or
evidence, and to avoid detection or
apprehension, which would undermine the
entire investigative process. When an
investigation has been completed,
information on disclosures made may
continue to be exempted if the fact that an
investigation occurred remains sensitive after
completion.
(b) From subsection (d) (Access and
Amendment to Records) because access to
certain records contained in this system of
records could inform the subject of an
investigation of an actual or potential
criminal, civil, or regulatory violation to the
existence of that investigation and reveal
investigative interest on the part of DHS or
another agency. Access to certain records
could also permit the individual who is the
subject of a record to impede the
investigation, to tamper with witnesses or
evidence, and to avoid detection or
apprehension. Amendment of certain records
could interfere with ongoing investigations
and law enforcement activities. Further,
permitting amendment to counterintelligence
records after an investigation has been
completed would impose an unmanageable
administrative burden. In addition,
permitting access and amendment to such
information could disclose security-sensitive
information that could be detrimental to
homeland security.
(c) From subsection (e)(1) (Relevancy and
Necessity of Information) because in the
course of investigations into potential
violations of federal law, the accuracy of
information obtained or introduced
occasionally may be unclear, or the
information may not be strictly relevant or
necessary to a specific investigation. In the
interests of effective law enforcement, it is
appropriate to retain all information that may
aid in establishing patterns of unlawful
activity.
(d) From subsection (e)(2) (Collection of
Information from Individuals) because
requiring that information be collected from
the subject of an investigation would alert the
subject to the nature or existence of the
investigation, thereby interfering with that
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investigation and related law enforcement
activities.
(e) From subsection (e)(3) (Notice to
Subjects) because providing such detailed
information could impede law enforcement
by compromising the existence of a
confidential investigation or reveal the
identity of witnesses or confidential
informants.
(f) From subsections (e)(4)(G), (e)(4)(H),
and (e)(4)(I) (Agency Requirements) and (f)
(Agency Rules), because portions of this
system are exempt from the individual access
provisions of subsection (d) for the reasons
noted above, and therefore DHS is not
required to establish requirements, rules, or
procedures with respect to such access.
Providing notice to individuals with respect
to existence of records pertaining to them in
the system of records or otherwise setting up
procedures pursuant to which individuals
may access and view records pertaining to
themselves in the system would undermine
investigative efforts and reveal the identities
of witnesses, and potential witnesses, and
confidential informants.
(g) From subsection (e)(5) (Collection of
Information) because with the collection of
information for law enforcement purposes, it
is impossible to determine in advance what
information is accurate, relevant, timely, and
complete.
(h) From subsection (e)(8) (Notice on
Individuals) because compliance would
interfere with DHS’s ability to obtain, serve,
and issue subpoenas, warrants, and other law
enforcement mechanisms that may be filed
under seal and could result in disclosure of
investigative techniques, procedures, and
evidence.
(i) From subsection (g)(1) (Civil Remedies)
to the extent that the system is exempt from
other specific subsections of the Privacy Act.
Lynn Parker Dupree,
Chief Privacy Officer, U.S. Department of
Homeland Security.
[FR Doc. 2021–19472 Filed 9–9–21; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Parts 1735 and 1737
[RUS–20–TELECOM–0044]
RIN 0572–AC48
Implementation of
Telecommunications Provisions of the
Agricultural Improvement Act of 2018
Rural Utilities Service,
Department of Agriculture (USDA).
ACTION: Final rule; request for
comments.
AGENCY:
The Rural Utilities Service
(RUS) is issuing a final rule with
comment to implement statutory
provisions of the Agriculture
Improvement Act of 2018 (2018 Farm
SUMMARY:
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Bill). The intent of this rule is to modify
existing regulations to include the
statutory revisions authorized by the
2018 Farm Bill.
DATES:
Effective date: This final rule with
comment is effective September 10,
2021.
Comment date: Comments due on or
before November 9, 2021.
ADDRESSES: You may submit comments,
identified by docket number RUS–20–
TELECOM–0044 and Regulatory
Information Number (RIN) number
0572–AC48 through https://
www.regulations.gov.
Instructions: All submissions received
must include the Agency name and
docket number or RIN for this
rulemaking. All comments received will
be posted without change to https://
www.regulations.gov, including any
personal information provided.
Docket: For access to the docket to
read background documents or
comments received, go to https://
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For
general inquiries, contact Laurel
Leverrier, Assistant Administrator
Telecommunications Program, Rural
Utilities Service, U.S. Department of
Agriculture (USDA), email:
laurel.leverrier@usda.gov, telephone:
(202) 720–9556.
SUPPLEMENTARY INFORMATION:
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches to maximize net benefits
(including potential economic,
environmental, public health, and safety
advantages; distributive impacts; and
equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits, of
reducing costs, of harmonizing rules,
and of promoting flexibility. This rule
has been determined to be significant
and was reviewed by the Office of
Management and Budget (OMB) under
Executive Order 12866. In accordance
with Executive Order 12866, the Agency
conducted a Regulatory Impact
Analysis, outlining the costs and
benefits of implementing this program
in rural America. The complete analysis
is available in Docket No. RUS–20–
TELECOM–0044. The following is a
summary discussion of the Analysis:
This final rule does not directly
address any specific market failure. The
Agency is publishing this rulemaking
action to codify the mandatory changes
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outlined in the 2018 Farm Bill. Many of
the benefits provided by these
mandatory changes include:
(1) Providing new information
regarding grant eligibility in conjunction
with the Farm Bill Broadband Program
covered under 7 CFR part 1738;
(2) General language clarifications and
duplication removals;
(3) Providing information for, or the
removals of, specific service
requirements;
(4) Changes in program financing
thresholds to conform to the 2018 Farm
Bill requirements;
(5) Additional application
information to ensure criteria are met;
(6) New reporting requirements that
ensure similar data is reported and
collected across multiple USDA
broadband programs to improve
oversight and integrity; and
(7) Changes in language to ensure that
programs can meet funding deadlines
while still maintaining the integrity of
the environmental review process.
These changes are expected to result
in great transparency from the Agency
and increased financing opportunities
for providers of rural
telecommunications services.
Telecommunications services are having
a profound effect on the Nation’s
economy, its strength and its growth by
reducing the barriers of distance,
remoteness, and time.
Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Office of
Information and Regulatory Affairs has
designated this rule as not being a major
rule, as defined by 5 U.S.C. 804(2).
Executive Order 12988, Civil Justice
Reform
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. The Agency has determined
that this rule meets the applicable
standards provided in section 3 of the
Executive order. In addition, all state
and local laws and regulations that
conflict with this rule will be
preempted. No retroactive effect will be
given to this rule.
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Executive Order 12372,
Intergovernmental Consultation
This final rule has been excluded
from the scope of Executive Order
12372 (Intergovernmental Consultation),
which may require a consultation with
state and local officials. See
‘‘Department Programs and Activities
Excluded from Executive Order 12372,’’
50 FR 47034 (Nov. 14, 1985).
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Administrative Procedures Act
The Administrative Procedures Act
(APA) exempts from notice and
comment requirements rules ‘‘relating to
agency management or personnel or to
public property, loans, grants, benefits,
or contracts’’ (5 U.S.C.553(a)(2)). The
Rural Telecommunications Program
provides loans to borrowers at interest
rates and on terms that are more
favorable than those generally available
from the private sector. RUS borrowers,
as a result of obtaining Federal
financing, receive economic benefits
under the loan program. Based on this,
any changes to the program fall under
this exemption.
Regulatory Flexibility Act Certification
The Regulatory Flexibility Act (5
U.S.C. 601–602) (RFA) generally
requires an agency to prepare a
regulatory flexibility analysis of any rule
subject to notice and comment
rulemaking requirements under the
APA or any other statute. As outlined
above, this rule is not subject to the
APA under 5 U.S.C. 553(a)(2).
Environmental Impact Statement
This final rule has been reviewed in
accordance with 7 CFR part 1970
(‘‘Environmental Policies and
Procedures’’). The Agency has
determined that (i) this action meets the
criteria established in 7 CFR 1970.53(f);
(2) no extraordinary circumstances
exist; and (iii) the action is not
‘‘connected’’ to other actions with
potentially significant impacts, is not
considered a ‘‘cumulative action’’ and is
not precluded by 40 CFR 1506.1.
Therefore, the Agency has determined
that the action does not have a
significant effect on the human
environment, and therefore neither an
Environmental Assessment nor an
Environmental Impact Statement is
required.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic
Assistance (CFDA) number assigned to
the Telecommunications Infrastructure
Loans & Guarantees Program is 10.851.
The Catalog is available on the internet
at https://beta.sam.gov/. The
Government Publishing Office (GPO)
prints and sells the CFDA to interested
buyers. For information about
purchasing the Catalog of Federal
Domestic Assistance from GPO, call the
Superintendent of Documents at (202)
512–1800 or toll free at (866) 512–1800,
or access GPO’s online bookstore at
https://bookstore.gpo.gov.
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50605
Unfunded Mandates
This rule contains no federal
mandates (under the regulatory
provisions of Title II of the Unfunded
Mandates Reform Act of 1995) for state,
local, and tribal governments or the
private sector. Therefore, this rule is not
subject to the requirements of sections
202 and 205 of the Unfunded Mandates
Reform Act of 1995.
E-Government Act Compliance
Rural Development is committed to
complying with the E-Government Act
of 2002, which requires Government
agencies in general to provide the public
the option of submitting information or
transacting business electronically to
the maximum extent possible.
Executive Order 13132, Federalism
The policies contained in this rule do
not have any substantial direct effect on
states, on the relationship between the
National Government and the states, or
on the distribution of power and
responsibilities among the various
levels of government. Nor does this rule
impose substantial direct compliance
costs on state and local governments.
Therefore, consultation with the states
is not required.
Executive Order 13175, Consultation
and Coordination With Indian Tribal
Governments
This rule has been reviewed in
accordance with the requirements of
Executive Order 13175, ‘‘Consultation
and Coordination with Indian Tribal
Governments.’’ Executive Order 13175
requires Federal agencies to consult and
coordinate with Tribes on a
government-to-government basis on
policies that have Tribal implications,
including regulations, legislative
comments or proposed legislation, and
other policy statements or actions that
have substantial direct effects on one or
more Indian Tribes, on the relationship
between the Federal Government and
Indian Tribes, or on the distribution of
power and responsibilities between the
Federal Government and Indian Tribes.
Broadband programs in general have
a significant impact on Tribes. These
specific statutory provisions, however,
were predominantly mandatory, leaving
very few areas for discretion for Tribal
consultation and guidance. The primary
areas of discretion were: (1) Removing
guarantee fee language, (2) correcting a
citation, (3) removing obsolete year 2000
compliance information and (4)
removing a duplicative refinancing
section.
USDA has held a series of Tribal
consultations conducted by USDA Rural
Development and USDA Office of Tribal
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Relations regarding tribal broadband.
The consultations included
consultations on (1) tribal broadband
specifically (both at the national level
and numerous regional and state level
tribal consultations), (2) the USDA
ReConnect broadband program, (3)
participation with Department of
Commerce NTIA on the Tribal
Broadband Connectivity Program, and
on (4) Executive Order 13985,
‘‘Advancing Racial Equity and Support
for Underserved Communities Through
the Federal Government’’ (1/20/21).
Through these consultations, the USDA
compiled the following Tribal
government requested ‘‘Tribal
Broadband Principles’’ which were
considered and used where applicable
in drafting this regulation:
• Require Tribal resolution. Require
any new or legacy applicant for USDA
funds proposing to serve Tribal lands to
have a Tribal resolution of support to
qualify for eligibility.
• Increase flexibility. Read any
ambiguous statutory requirements and
limitations as broadly as possible and in
favor of Tribes in light of our trust
obligations.
• Narrow duplication definition.
Read ‘‘duplication’’ limitations as
broadly and as flexibly as possible when
working with Tribal nations to ensure
their eligibility for USDA programs to
serve their own lands.
• All self-certification. Tribal nations
must be the certifiers of whether they
are being served/are underserved or
other similar requirements.
• Enforce compliance with Tribal
laws. Include a requirement of
compliance with Tribal laws and
regulations in the sections of loan and
grant agreements that require
compliance with state and local laws.
Enforce the terms of Federal loan and
grant agreements which require
compliance with local (including tribal)
laws and regulatory bodies.
Civil Rights Impact Analysis
The Rural Development’s Civil Rights
Office reviewed this rule in accordance
with USDA Regulation 4300–4, ‘‘Civil
Rights Impact Analysis,’’ to identify any
major civil rights impacts the rule might
have on program participants on the
basis of age, race, color, national origin,
sex, or disability. The Rural
Development’s Civil Rights Office
worked with the RUS program offices to
compile program descriptions, data, and
outreach activities strategies for the
subject program. The Rural
Development’s Civil Rights Office
assessed civil rights implications and
impacts of eligibility criteria, methods
of administration, and other
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requirements associated with the final
rule including strategies to eliminate,
alleviate, or mitigate (where applicable)
civil rights impacts identified in the
Civil Rights Impact Analysis. The Rural
Development’s Civil Rights Office agrees
to monitor the implementation of all
civil rights strategies that were
instituted in connection with this final
rule, evaluate their effectiveness, and
take follow-up action where civil rights
impacts may ensue.
Information Collection and
Recordkeeping Requirements
The Information Collection and
Recordkeeping requirements contained
in this rule have been approved under
OMB Control Number 0572–0079 and
submitted for approval under OMB
Control Number 0572–0154.
Background
Rural Development is a mission area
within the USDA comprising the Rural
Utilities Service, Rural Housing Service,
and Rural Business/Cooperative Service.
Rural Development’s mission is to
increase economic opportunity and
improve the quality of life for all rural
Americans. Rural Development meets
its mission by providing loans, loan
guarantees, grants, and technical
assistance through more than 40
programs aimed at creating and
improving housing, business, and
infrastructure throughout rural America.
The Agricultural Improvement Act of
2018 (2018 Farm Bill) made mandatory
changes to the Rural Telephone Loan
Program administered by the
Telecommunications Program of the
Rural Utilities Service.
These modifications to the program’s
regulations will allow RUS to fully
implement the requirements of the 2018
Farm Bill. RUS is also taking the
opportunity to make minor changes to
the program regulations that will update
or correct existing regulatory citations,
data speeds, and other program
provisions to bring them in line with the
statutory changes required by the 2018
Farm Bill.
Changes to 7 CFR part 1735 ‘‘General
Policies, Types of Loans, Loan
Requirements—Telecommunications
Program’’ include:
Adding paragraph (d) to § 1735.1. The
addition of paragraph (d) provides
notice to applicants that they may be
eligible to receive grant assistance
through Title VI which is governed by
7 CFR part 1738. The Agency
determined this was the most effective
way to provide this information.
The addition of a definition of Retail
Broadband Service to § 1735.2. The
definition provides information to the
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public on what the Agency considers
‘‘retail broadband service’’ for the
purposes of this part.
Clarifying, at § 1735.10(a)(2)(ii), that
multiuse networks that provide critical
transportation-related services are
considered integrated interoperable
emergency communications and
therefore are an eligible loan purpose.
Removing the requirement for a
certificate of convenience and necessity
from § 1735.12. While necessary when
the program was implemented, the
prevalence of services at this time and
changes to state regulatory bodies has
rendered the certificate meaningless for
Agency purposes. The Agency also
expanded the authority of the RUS
Administrator, at § 1735.12(a), to
determine non-duplication of services.
Previously the Administrator only made
that determination for states in which
there was no regulatory body. This
change will reduce the burden on
applicants and aid in streamlining the
application process. Clarification
regarding non-duplication verification
for existing borrowers is provided by the
Agency, at § 1735.12(b).
Modifying the criteria at § 1735.12(c)
to remove specific transmission and
reception rates and require coverage as
described in § 1735.11 for local area
exchanges. These changes remove
outdated terminology, create a single
requirement which reduces confusion
and creates consistency for all
applicants.
Changing the thresholds, at § 1735.21,
regarding refinancing to conform to
2018 Farm Bill requirements. Prior to
the 2018 Farm Bill, the Agency was only
able to refinance non-RUS loans as long
as no more than 40 percent of the new
loan was used for refinancing. The 2018
Farm Bill removed the 40 percent cap
and extended the ability to refinance
100 percent of non-RUS and RUS debt.
Refinancing limits will be published in
the funding opportunity announcement
opening an application window and
based on amounts that are authorized
for a given fiscal year. However, the
Agency is considering limiting
refinancing of non-RUS loans to 50
percent of the total loan amount while
allowing 100 percent refinancing of
existing RUS loans. Additional
information was added to this section to
provide information on loans eligible for
refinancing as well as maximum
amortizations.
Modifications to § 1735.22(f), (g), and
(i) to remove outdated references to year
2000 compliant systems and correct an
incorrect reference that was carried
forward from a previous version of the
regulation, respectively.
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The addition of public notice filing
and response requirements at § 1735.23.
The notice will allow existing service
providers to respond to pending
applications before the agency that
propose to provide broadband service
outside of their territory that receives
federal universal support.
New reporting requirements at
§ 1735.24. These new requirements
ensure similar data is reported and
collected across multiple USDA
broadband programs to improve
oversight and integrity.
Removal of refinancing language at
§ 1735.52 that is now duplicative due to
the changes at § 1735.21.
Changes to 7 CFR part 1737, ‘‘PreLoan Policies and Procedures Common
to Insured and Guaranteed
Telecommunications Loans’’ include
multiple changes to § 1737.22 to include
the removal of the requirement for a
certified copy of a certificate of
convenience and necessity as that
certificate is no longer required due to
changes implemented by the 2018 Farm
Bill.
Additional application information
was added to § 1737.22(c) and (e) for
loans involving refinancing. This
additional information is necessary to
ensure that the loans to be refinanced
meet the criteria set forth in this
regulation and the funding opportunity
announcement that opens a funding
window.
Changes at § 1737.90 to include
language allowing obligation but not
disbursal of funds, under certain
circumstances, prior to the completion
of historical or other types of review
identified during the environmental
review. This change allows for
obligation of funds so awardees know
that funds will be available while still
maintaining the integrity of the
environmental review process.
Amendments and Comparison to the
Current Regulation
The Telecommunications Program
and the organizations that apply for its
funding face significant challenges
putting in place projects that can deliver
and maintain robust, affordable
telecommunication services to rural
consumers. These challenges include
rapidly evolving technology,
competition, and the ever-present
higher costs of serving rural areas. The
final rule will implement statutory
changes required by the 2018 Farm Bill,
as well as minor conforming changes
that will update and/or correct existing
regulatory citations, data speeds and
other program provisions to ensure they
are in line with the required statutory
changes. The changes are expected to
create greater program transparency and
ensure program rules are clear and
consistent.
Table 1 below shows which sections
of the regulations were changed due to
the statutory authority contained in the
2018 Farm Bill and those changes where
RUS is exercising discretion to improve
program clarity. If the sections of the
regulations are not specifically stated
within the table, no changes were made
to those sections.
TABLE 1—STATUTORY AND DISCRETIONARY CHANGES TO THE REGULATIONS
Section of regulation
2018 Farm Bill
requirement
Revision
Discretionary
7 CFR Part 1735—General Policies, Types of Loans, Loan Requirements—Telecommunications Program
§ 1735.1
General Statement .........
§ 1735.2 Definitions .......................
§ 1735.10 General .........................
§ 1735.12
Nonduplication ..............
§ 1735.21
§ 1735.22
Refinancing Loans ........
Loan Security ................
§ 1735.23 Public Notice .................
§ 1735.24 Additional
Reporting
Requirements.
§ 1735.51 Required Findings ........
§ 1735.52 Findings Required for
Particular Loan Purposes.
Paragraph that entities applying under this part could be eligible for
grant funds under 7 CFR 1738.101 added.
Retail Broadband service definition added ...............................................
Updated terminology for 911 service added .............................................
Language on guaranteed fees removed ...................................................
Certificate of Convenience and Necessity requirement was removed .....
Outdated broadband speeds were removed ............................................
Updated with new RUS refinancing authorities ........................................
‘‘Year 2000’’ system compliance language was removed ........................
Paragraph citation errors corrected ..........................................................
New public notice requirements and timeframe added ............................
New reporting requirements and policies added ......................................
X
........................
X
X
........................
X
X
X
........................
........................
X
X
........................
........................
X
........................
........................
........................
X
X
........................
........................
Certificate of Convenience and Necessity requirement removed ............
Duplicative refinancing language removed ...............................................
X
........................
........................
X
7 CFR Part 1737—Pre-Loan Policies and Procedures Common to Insured and Guaranteed Telecommunications Loans
§ 1737.22
tion.
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§ 1737.90
ments.
Supplemental
Informa-
Loan Approval Require-
Certificate of Convenience and Necessity requirement removed ............
X
........................
Refinancing requirements updated ...........................................................
Public Notice requirements added ............................................................
Language added to allow obligations prior to environmental reviews
being complete if related to specific broadband equipment.
X
X
X
........................
........................
........................
List of Subjects
7 CFR Part 1737
7 CFR Part 1735
Loan programs-communications,
Reporting and recordkeeping
requirements, Rural areas, Telephone.
Loan programs-communications,
Reporting and recordkeeping
requirements, Rural areas, Telephone.
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For reasons set forth in the preamble,
7 CFR parts 1735 and 1737 are amended
as follows:
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PART 1735—GENERAL POLICIES,
TYPES OF LOANS, LOAN
REQUIREMENTS—
TELECOMMUNICATIONS PROGRAM
1. The authority citation for part 1735
continues to read as follows:
■
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Authority: 7 U.S.C. 901 et seq., 1921 et
seq., and 6941 et seq.
§ 1735.12
Subpart A—General
2. Amend § 1735.1 by adding
paragraph (d) to read as follows:
■
§ 1735.1
General statement.
*
*
*
*
*
(d) Entities applying for a loan under
this part may be eligible to receive a
grant under 7 CFR 1738.101, for a
portion of the project providing retail
broadband service.
■ 3. Amend § 1735.2 by adding, in
alphabetical order, the definition of
‘‘Retail broadband service’’ to read as
follows:
§ 1735.2
Definitions.
*
*
*
*
*
Retail broadband service means any
technology identified by the
Administrator as having the capacity to
provide transmission facilities that
enable the subscriber to receive a
minimum level of service equal to at
least a downstream transmission
capacity of 25 megabits per second
(Mbps) and an upstream transmission
capacity of 3 Mbps. The agency may
change the minimum transmission
capacity by way of notice in the Federal
Register. The minimum transmission
capacity may be higher than 25 Mbps
downstream and 3 Mbps upstream but
cannot be lower.
*
*
*
*
*
Subpart B—Loan Purposes and Basic
Policies
4. Amend § 1735.10 by:
a. Revising paragraph (a)(2)(ii);
b. Removing paragraph (e); and
c. Redesignating paragraphs (f) and (g)
as paragraphs (e) and (f), respectively.
The revision reads as follows:
■
■
■
■
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§ 1735.10
General.
(a) * * *
(2) * * *
(ii) Integrated interoperable
emergency communications, including
multiuse networks that provide critical
transportation-related information
services in addition to emergency
communications services;
*
*
*
*
*
■ 5. Amend § 1735.12 by:
■ a. Revising paragraph (a) and (b);
■ b. Removing paragraphs (c)(2) and (3);
■ c. Redesignating paragraphs (c)(4)
through (12) as paragraphs (c)(2)
through (10), respectively; and
■ d. Revising newly redesignated
paragraph (c)(5).
The revisions read as follows:
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Nonduplication.
(a) A loan will not be made unless the
Administrator determines that no
duplication of lines, facilities, or
systems already providing reasonably
adequate services shall result from such
a loan.
(b) Existing borrowers that apply to
upgrade existing facilities in their
existing service area are exempt from
the non-duplication requirement in
paragraph (a) of this section.
(c) * * *
(5) The LEC’s network is capable of
providing retail broadband service as
defined in § 1735.2 to any subscriber
location.
*
*
*
*
*
■ 6. Revise § 1735.21 to read as follows:
§ 1735.21
Refinancing loans.
(a) Any new direct or guaranteed loan
authority provided under the RE Act
may be used to refinance an outstanding
obligation of the applicant on another
loan made under Titles II and VI of the
RE Act, or on a non-RUS loan if that
loan would have been for eligible
telecommunications purposes under the
RE Act provided that:
(1) The applicant is current with its
payments on the RUS loan(s) to be
refinanced; and
(2) The amortization period for that
portion of the loan request that will be
needed for refinancing will not exceed
the remaining amortization period for
the loan(s) to be refinanced. If multiple
notes are being refinanced, an average
remaining amortization period will be
calculated based on the weighted dollar
average of the notes being refinanced.
(b) The amount that can be refinanced
will be included in the funding
opportunity announcement that will
open a funding window based on the
funds authorized for any given fiscal
year.
■ 7. Amend § 1735.22 by revising
paragraphs (f), (g), and (i) to read as
follows:
§ 1735.22
Loan security.
*
*
*
*
*
(f) RUS makes loans only if the
borrower’s entire system, including the
facilities to be constructed with the
proceeds of the loan, is economically
feasible, as determined by RUS.
(g) For purposes of determining
compliance with TIER requirements,
unless a borrower whose existing
mortgage contains TIER maintenance
requirements notifies RUS in writing
differently, RUS will apply the
requirements described in paragraph (h)
of this section to the borrower regardless
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of the provisions of the borrower’s
existing mortgage.
*
*
*
*
*
(i) Nothing in this section shall affect
any rights of supplemental lenders
under the RUS mortgage, or other
creditors of the borrower, to limit a
borrower’s TIER requirement to a level
above that established in paragraph (h)
of this section.
*
*
*
*
*
■ 8. Add § 1735.23 to read as follows:
§ 1735.23
Public notice.
(a) Applications for funding request in
which the applicant will provide retail
broadband service, the Agency’s
mapping tool will include the following
information from each application, and
will be displayed for the public:
(1) The identity of the applicant;
(2) A description of the project that
can deliver retail broadband service;
(3) A map of the areas to be served,
the proposed funded service area
(PFSA), including identification of the
associated census blocks;
(4) The amount and type of funding
requested;
(5) The status of the application; and
(6) The estimated number and
proportion of households and
businesses in the proposed funded
service area without fixed retail
broadband service, whether terrestrial or
wireless, excluding mobile and satellite
service.
(b) For funding requests outside an
area where the applicant receives
Federal universal service support, the
public notice filing referenced under
paragraph (a) of this section will accept
public notice responses from existing
service providers with respect to retail
broadband service already being
provided in the PFSA for 45 calendar
days on the Agency’s web page. Existing
service providers are requested to
submit the following information
through the Agency’s mapping tool:
(1) The number of residential and
business customers within the PFSA
currently purchasing broadband at the
minimum threshold, the rates of data
transmission being offered, and the cost
of each level of broadband service
charged by the existing service provider;
(2) The number of residential and
business customers within the
applicant’s service area receiving voice
and video services and the associated
rates for these other services;
(3) A map showing where the existing
service provider’s services coincide
with the applicant’s service area using
the Agency’s mapping tool; and
(4) Test results for the service area in
question for a minimum of at least the
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prior three months demonstrating that
the asserted level of broadband is being
provided. The test results shall be for
different times of the day.
(c) The Agency may contact service
providers that respond under paragraph
(b) of this section to validate their
submission, and so responding service
providers should be prepared to:
(1) Provide additional information
supporting that the area in question has
sufficient access to broadband service;
(2) Have a technician on site during
the field validation by RUS staff;
(3) Run on site tests with RUS
personnel being present, if requested;
and
(4) Provide copies of any test results
that have been conducted in the last six
months and validate the information
submitted in the public notice response
months.
(d) If no broadband service provider
submits information pursuant to a
pending application or if the existing
provider does not provide the
information requested under paragraphs
(b) and (c) of this section, RUS will
consider the extent of broadband service
using any other data available through
reasonable efforts, including utilizing
the National Telecommunications and
Information Administration’s National
Broadband Availability Map and the
Federal Communications Commission
broadband availability map. That may
include the agency conducting field
validations so as to locate facilities in
the application service area and
determine, to the extent possible, if
those facilities can provide the
minimum threshold of broadband.
Notwithstanding, conclusive evidence
as to the existence of the level of
broadband will be taken only through
the public notice process. As a result,
the Agency highly recommends that
existing service providers in a PFSA
submit public notice response to ensure
that their service is considered in the
determination of eligibility on an
application.
(e) The Agency will notify
respondents who are existing service
providers whether their public notice
response was accepted or not and allow
for an opportunity to respond.
(f) The information submitted by an
existing service provider under
paragraphs (b) and (c) of this section
will be treated as proprietary and
confidential and not subject to
disclosure, pursuant to 7 U.S.C.
950cc(b)(3).
(g) For all applications that are
approved, the following information
will be made available to the public:
(1) The information provided in
paragraph (a) of this section;
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(2) Each annual report required under
§ 1735.24 will be redacted to protect any
proprietary information; and
(3) Such other information as the
Administrator of the RUS deems
sufficient to allow the public to
understand the assistance provided.
■ 9. Add § 1735.24 to read as follows:
§ 1735.24 Additional reporting
requirements.
Subpart E—Basic Requirements for
Loan Approval
10. Amend § 1735.51 by revising
paragraph (c) to read as follows:
■
Required findings.
*
*
*
*
*
(c) Nonduplication or certificate
requirement. The borrower shall
provide RUS with satisfactory evidence
to enable the Administrator to
determine that no duplication of
telephone service shall result from a
particular loan.
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[Amended]
11. Amend § 1735.52 by removing
paragraph (a) and removing the
paragraph (b) designation and heading.
■
PART 1737—PRE-LOAN POLICIES
AND PROCEDURES COMMON TO
INSURED AND GUARANTEED
TELECOMMUNICATIONS LOANS
12. The authority citation for part
1737 continues to read as follows:
■
(a) Entities receiving financial
assistance from RUS that are used for
retail broadband must submit annual
reports for 3 years after project
completion. The reports must include
the following information:
(1) The purpose of the financing,
including new equipment and capacity
enhancements that support high-speed
broadband access for educational
institutions, health care providers, and
public safety service providers
(including the estimated number of end
users who are currently using or
forecasted to use the new or upgraded
infrastructure); and
(2) The progress towards fulfilling the
objectives for which the assistance was
made, including:
(i) The number of service points that
will receive new broadband service,
existing network improvements, and
facility upgrades resulting from the
federal assistance;
(ii) The speed of the broadband
services;
(iii) The average price of the most
subscribed tier of retail broadband
service in each PFSA;
(iv) The number of new subscribers
generated from the project; and
(v) Complete, reliable, and precise
geolocation information that indicates
the location of new broadband service
that is being provided or upgraded
within the service territory supported by
the grant, loan, or loan guarantee.
(b) A notice will be published on the
Agency’s website that will include each
annual broadband improvement report,
redacted as appropriate to protect any
proprietary information in the report.
§ 1735.51
§ 1735.52
50609
Authority: 7 U.S.C. 901 et seq., 1921 et
seq.; Pub. L. 103–354, 108 Stat. 3178 (7
U.S.C. 6941 et. seq.).
Subpart C—The Loan Application
13. Amend § 1737.22 by:
a. Removing paragraph (a)(13);
b. Redesignating paragraphs (a)(14)
through (20) as paragraphs (a)(13)
through (19), respectively;
■ c. Designating the text of newly
redesignated paragraph (a)(19) as
paragraph (a)(19)(i);
■ d. Designating the undesignated
paragraph following newly designated
paragraph (a)(19)(i) as paragraph
(a)(19)(ii);
■ e. In newly designated paragraph
(a)(19)(ii), removing ‘‘(a)(19)’’ and
adding ‘‘(a)(18)’’ in its place;
■ f. Revising paragraphs (b) introductory
text, (c) introductory text, and (c)(3);
■ g. Redesignating paragraph (d) as
paragraph (e); and
■ h. Adding a new paragraph (d) and
paragraph (f).
The revisions and additions read as
follows:
■
■
■
§ 1737.22
Supplementary information.
*
*
*
*
*
(b) The following must be submitted
by borrowers seeking subsequent loans:
*
*
*
*
*
(c) For borrowers requesting funds for
construction or refinancing, in addition
to the information included in
paragraphs (a) and (b) of this section,
the following must be submitted:
*
*
*
*
*
(3) Justification for refinancing and
evidence that the underlying loan to be
refinanced would have been eligible for
RUS financing under the RE Act.
(d) Loan requests whose sole purpose
is to refinance loans under Titles II and
VI of the RE Act must submit the
following:
(1) Certified financial statements for
the last 3 years.
(2) Five-year financial projections
consisting of Income Statement, Balance
Sheet, and Cash Flow Statement.
(3) A ‘‘Certification Regarding
Lobbying’’ for loans, or a ‘‘Statement for
Loan Guarantees and Loan Insurance’’
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for loan guarantees, and when required,
an executed Standard Form LLL,
‘‘Disclosure of Lobbying Activities,’’
(see section 319, Pub. L. 101–121 (31
U.S.C. 1352)).
(4) Executed copy of Form AD–1047,
‘‘Certification Regarding Debarment,
Suspension, and Other Responsibility
Matters—Primary Covered
Transactions.’’
(5) Borrower’s determination of loan
maturity.
(6) A statement that the borrower is or
is not delinquent on any Federal debt,
such as income tax obligations or a loan
or loan guarantee from another Federal
agency. If delinquent, the reasons for the
delinquency must be explained and
RUS will take such explanation into
consideration in deciding whether to
approve the loan. RUS Form 490,
‘‘Application for Telephone Loan or
Guarantee,’’ contains a section for
providing the required statement and
any appropriate explanation.
(7) Any other supporting data
required by the Administrator.
*
*
*
*
*
(f) For all applications that request
funding for retail broadband as defined
in 7 CFR 1735.2, the application must
include all information required for the
public notice as stated in 7 CFR
1735.23(a).
*
*
*
*
*
Subpart J—Final Loan Approval
Procedures
14. Amend § 1737.90 by revising
paragraph (a)(6) to read as follows:
■
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§ 1737.90
Loan approval requirements.
(a) * * *
(6) All environmental review
requirements must be met in accordance
with 7 CFR part 1970. The Agency may
obligate, but not disperse, funds under
the program pursuant to 7 U.S.C. 950cc–
1, before the completion of the
otherwise required environmental,
historical, or other types of reviews if
the Secretary of Agriculture determines
that subsequent site-specific review
shall be adequate and easily
accomplished for the location of towers,
poles, or other broadband facilities in
the service area of the awardee without
compromising the project or the
required reviews.
*
*
*
*
*
Christopher A. McLean,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2021–19319 Filed 9–9–21; 8:45 am]
BILLING CODE 3410–15–P
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DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2021–0780; Project
Identifier AD–2021–00916–E; Amendment
39–21728; AD 2021–19–10]
RIN 2120–AA64
Airworthiness Directives; International
Aero Engines, LLC Turbofan Engines
holidays. The AD docket contains this
final rule, any comments received, and
other information. The street address for
the Docket Operations is listed above.
FOR FURTHER INFORMATION CONTACT:
Mark Taylor, Aviation Safety Engineer,
ECO Branch, FAA, 1200 District
Avenue, Burlington, MA 01803; phone:
(781) 238–7229; fax: (781) 238–7199;
email: Mark.Taylor@faa.gov.
SUPPLEMENTARY INFORMATION:
Examining the AD Docket
Background
On March 18, 2020, an Airbus Model
A321–231 airplane, powered by IAE
V2533–A5 model turbofan engines,
experienced an uncontained HPT 1ststage disk failure that resulted in highenergy debris penetrating the engine
cowling. Based on a preliminary
analysis of this event, on March 21,
2020, the FAA issued Emergency AD
2020–07–51 (followed by publication in
the Federal Register on April 13, 2020,
as a Final Rule, Request for Comments
(85 FR 20402)), which requires the
removal from service of certain HPT 1ststage disks installed on IAE V2522–A5,
V2524–A5, V2525–D5, V2527–A5,
V2527E–A5, V2527M–A5, V2528–D5,
V2530–A5, and V2533–A5 model
turbofan engines.
Pratt & Whitney (PW) determined that
the failure of the V2533–A5 model
turbofan engine was due to an
undetected subsurface material defect in
an HPT disk that may affect the life of
the part. In June 2021, PW expanded its
root cause analysis to include a review
of records for all other IAE and PW
engines that contain parts of similar
material.
On July 29, 2021, PW provided its
PW1100G analysis results to the FAA.
PW’s analysis identified a different
population of HPT 1st-stage and HPT
2nd-stage disks installed on IAE
PW1122G–JM, PW1124G1–JM,
PW1124G–JM, PW1127G1–JM,
PW1127GA–JM, PW1127G–JM,
PW1129G–JM, PW1130G–JM,
PW1133GA–JM, and PW1133G–JM
model turbofan engines that are also
affected by the unsafe condition in AD
2020–07–51 and require removal from
service. This condition, if not
addressed, could result in uncontained
HPT disk failure, release of high-energy
debris, damage to the engine, damage to
the airplane, and loss of the airplane.
The FAA is issuing this AD to address
the unsafe condition on these products.
You may examine the AD docket at
https://www.regulations.gov by
searching for and locating Docket No.
FAA–2021–0780; or in person at Docket
Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal
FAA’s Determination
The FAA is issuing this AD because
the agency has determined the unsafe
condition described previously is likely
to exist or develop in other products of
the same type design.
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule; request for
comments.
AGENCY:
The FAA is adopting a new
airworthiness directive (AD) for certain
International Aero Engines, LLC (IAE)
PW1122G–JM, PW1124G1–JM,
PW1124G–JM, PW1127G1–JM,
PW1127GA–JM, PW1127G–JM,
PW1129G–JM, PW1130G–JM,
PW1133GA–JM, and PW1133G–JM
model turbofan engines. This AD was
prompted by a root cause analysis of an
event involving an uncontained failure
of a high-pressure turbine (HPT) disk
that resulted in high-energy debris
penetrating the engine cowling on an
Airbus Model A321–231 airplane,
powered by IAE V2533–A5 model
turbofan engines. This AD requires
removing certain HPT 1st-stage and HPT
2nd-stage disks from service. The FAA
is issuing this AD to address the unsafe
condition on these products.
DATES: This AD is effective September
27, 2021.
The FAA must receive comments on
this AD by October 25, 2021.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: (202) 493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC 20590.
• Hand Delivery: Deliver to Mail
address above between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
SUMMARY:
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]]>Agencies
[Federal Register Volume 86, Number 173 (Friday, September 10, 2021)]
[Rules and Regulations]
[Pages 50604-50610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19319]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Parts 1735 and 1737
[RUS-20-TELECOM-0044]
RIN 0572-AC48
Implementation of Telecommunications Provisions of the
Agricultural Improvement Act of 2018
AGENCY: Rural Utilities Service, Department of Agriculture (USDA).
ACTION: Final rule; request for comments.
-----------------------------------------------------------------------
SUMMARY: The Rural Utilities Service (RUS) is issuing a final rule with
comment to implement statutory provisions of the Agriculture
Improvement Act of 2018 (2018 Farm Bill). The intent of this rule is to
modify existing regulations to include the statutory revisions
authorized by the 2018 Farm Bill.
DATES:
Effective date: This final rule with comment is effective September
10, 2021.
Comment date: Comments due on or before November 9, 2021.
ADDRESSES: You may submit comments, identified by docket number RUS-20-
TELECOM-0044 and Regulatory Information Number (RIN) number 0572-AC48
through https://www.regulations.gov.
Instructions: All submissions received must include the Agency name
and docket number or RIN for this rulemaking. All comments received
will be posted without change to https://www.regulations.gov, including
any personal information provided.
Docket: For access to the docket to read background documents or
comments received, go to https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For general inquiries, contact Laurel
Leverrier, Assistant Administrator Telecommunications Program, Rural
Utilities Service, U.S. Department of Agriculture (USDA), email:
[email protected], telephone: (202) 720-9556.
SUPPLEMENTARY INFORMATION:
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches to maximize
net benefits (including potential economic, environmental, public
health, and safety advantages; distributive impacts; and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, of reducing costs, of harmonizing rules, and of
promoting flexibility. This rule has been determined to be significant
and was reviewed by the Office of Management and Budget (OMB) under
Executive Order 12866. In accordance with Executive Order 12866, the
Agency conducted a Regulatory Impact Analysis, outlining the costs and
benefits of implementing this program in rural America. The complete
analysis is available in Docket No. RUS-20-TELECOM-0044. The following
is a summary discussion of the Analysis:
This final rule does not directly address any specific market
failure. The Agency is publishing this rulemaking action to codify the
mandatory changes
[[Page 50605]]
outlined in the 2018 Farm Bill. Many of the benefits provided by these
mandatory changes include:
(1) Providing new information regarding grant eligibility in
conjunction with the Farm Bill Broadband Program covered under 7 CFR
part 1738;
(2) General language clarifications and duplication removals;
(3) Providing information for, or the removals of, specific service
requirements;
(4) Changes in program financing thresholds to conform to the 2018
Farm Bill requirements;
(5) Additional application information to ensure criteria are met;
(6) New reporting requirements that ensure similar data is reported
and collected across multiple USDA broadband programs to improve
oversight and integrity; and
(7) Changes in language to ensure that programs can meet funding
deadlines while still maintaining the integrity of the environmental
review process.
These changes are expected to result in great transparency from the
Agency and increased financing opportunities for providers of rural
telecommunications services. Telecommunications services are having a
profound effect on the Nation's economy, its strength and its growth by
reducing the barriers of distance, remoteness, and time.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs has designated this
rule as not being a major rule, as defined by 5 U.S.C. 804(2).
Executive Order 12988, Civil Justice Reform
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. The Agency has determined that this rule meets the
applicable standards provided in section 3 of the Executive order. In
addition, all state and local laws and regulations that conflict with
this rule will be preempted. No retroactive effect will be given to
this rule.
Executive Order 12372, Intergovernmental Consultation
This final rule has been excluded from the scope of Executive Order
12372 (Intergovernmental Consultation), which may require a
consultation with state and local officials. See ``Department Programs
and Activities Excluded from Executive Order 12372,'' 50 FR 47034 (Nov.
14, 1985).
Administrative Procedures Act
The Administrative Procedures Act (APA) exempts from notice and
comment requirements rules ``relating to agency management or personnel
or to public property, loans, grants, benefits, or contracts'' (5
U.S.C.553(a)(2)). The Rural Telecommunications Program provides loans
to borrowers at interest rates and on terms that are more favorable
than those generally available from the private sector. RUS borrowers,
as a result of obtaining Federal financing, receive economic benefits
under the loan program. Based on this, any changes to the program fall
under this exemption.
Regulatory Flexibility Act Certification
The Regulatory Flexibility Act (5 U.S.C. 601-602) (RFA) generally
requires an agency to prepare a regulatory flexibility analysis of any
rule subject to notice and comment rulemaking requirements under the
APA or any other statute. As outlined above, this rule is not subject
to the APA under 5 U.S.C. 553(a)(2).
Environmental Impact Statement
This final rule has been reviewed in accordance with 7 CFR part
1970 (``Environmental Policies and Procedures''). The Agency has
determined that (i) this action meets the criteria established in 7 CFR
1970.53(f); (2) no extraordinary circumstances exist; and (iii) the
action is not ``connected'' to other actions with potentially
significant impacts, is not considered a ``cumulative action'' and is
not precluded by 40 CFR 1506.1. Therefore, the Agency has determined
that the action does not have a significant effect on the human
environment, and therefore neither an Environmental Assessment nor an
Environmental Impact Statement is required.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance (CFDA) number assigned
to the Telecommunications Infrastructure Loans & Guarantees Program is
10.851. The Catalog is available on the internet at https://beta.sam.gov/. The Government Publishing Office (GPO) prints and sells
the CFDA to interested buyers. For information about purchasing the
Catalog of Federal Domestic Assistance from GPO, call the
Superintendent of Documents at (202) 512-1800 or toll free at (866)
512-1800, or access GPO's online bookstore at https://bookstore.gpo.gov.
Unfunded Mandates
This rule contains no federal mandates (under the regulatory
provisions of Title II of the Unfunded Mandates Reform Act of 1995) for
state, local, and tribal governments or the private sector. Therefore,
this rule is not subject to the requirements of sections 202 and 205 of
the Unfunded Mandates Reform Act of 1995.
E-Government Act Compliance
Rural Development is committed to complying with the E-Government
Act of 2002, which requires Government agencies in general to provide
the public the option of submitting information or transacting business
electronically to the maximum extent possible.
Executive Order 13132, Federalism
The policies contained in this rule do not have any substantial
direct effect on states, on the relationship between the National
Government and the states, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on state and local
governments. Therefore, consultation with the states is not required.
Executive Order 13175, Consultation and Coordination With Indian Tribal
Governments
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' Executive Order 13175 requires Federal agencies
to consult and coordinate with Tribes on a government-to-government
basis on policies that have Tribal implications, including regulations,
legislative comments or proposed legislation, and other policy
statements or actions that have substantial direct effects on one or
more Indian Tribes, on the relationship between the Federal Government
and Indian Tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian Tribes.
Broadband programs in general have a significant impact on Tribes.
These specific statutory provisions, however, were predominantly
mandatory, leaving very few areas for discretion for Tribal
consultation and guidance. The primary areas of discretion were: (1)
Removing guarantee fee language, (2) correcting a citation, (3)
removing obsolete year 2000 compliance information and (4) removing a
duplicative refinancing section.
USDA has held a series of Tribal consultations conducted by USDA
Rural Development and USDA Office of Tribal
[[Page 50606]]
Relations regarding tribal broadband. The consultations included
consultations on (1) tribal broadband specifically (both at the
national level and numerous regional and state level tribal
consultations), (2) the USDA ReConnect broadband program, (3)
participation with Department of Commerce NTIA on the Tribal Broadband
Connectivity Program, and on (4) Executive Order 13985, ``Advancing
Racial Equity and Support for Underserved Communities Through the
Federal Government'' (1/20/21). Through these consultations, the USDA
compiled the following Tribal government requested ``Tribal Broadband
Principles'' which were considered and used where applicable in
drafting this regulation:
Require Tribal resolution. Require any new or legacy
applicant for USDA funds proposing to serve Tribal lands to have a
Tribal resolution of support to qualify for eligibility.
Increase flexibility. Read any ambiguous statutory
requirements and limitations as broadly as possible and in favor of
Tribes in light of our trust obligations.
Narrow duplication definition. Read ``duplication''
limitations as broadly and as flexibly as possible when working with
Tribal nations to ensure their eligibility for USDA programs to serve
their own lands.
All self-certification. Tribal nations must be the
certifiers of whether they are being served/are underserved or other
similar requirements.
Enforce compliance with Tribal laws. Include a requirement
of compliance with Tribal laws and regulations in the sections of loan
and grant agreements that require compliance with state and local laws.
Enforce the terms of Federal loan and grant agreements which require
compliance with local (including tribal) laws and regulatory bodies.
Civil Rights Impact Analysis
The Rural Development's Civil Rights Office reviewed this rule in
accordance with USDA Regulation 4300-4, ``Civil Rights Impact
Analysis,'' to identify any major civil rights impacts the rule might
have on program participants on the basis of age, race, color, national
origin, sex, or disability. The Rural Development's Civil Rights Office
worked with the RUS program offices to compile program descriptions,
data, and outreach activities strategies for the subject program. The
Rural Development's Civil Rights Office assessed civil rights
implications and impacts of eligibility criteria, methods of
administration, and other requirements associated with the final rule
including strategies to eliminate, alleviate, or mitigate (where
applicable) civil rights impacts identified in the Civil Rights Impact
Analysis. The Rural Development's Civil Rights Office agrees to monitor
the implementation of all civil rights strategies that were instituted
in connection with this final rule, evaluate their effectiveness, and
take follow-up action where civil rights impacts may ensue.
Information Collection and Recordkeeping Requirements
The Information Collection and Recordkeeping requirements contained
in this rule have been approved under OMB Control Number 0572-0079 and
submitted for approval under OMB Control Number 0572-0154.
Background
Rural Development is a mission area within the USDA comprising the
Rural Utilities Service, Rural Housing Service, and Rural Business/
Cooperative Service. Rural Development's mission is to increase
economic opportunity and improve the quality of life for all rural
Americans. Rural Development meets its mission by providing loans, loan
guarantees, grants, and technical assistance through more than 40
programs aimed at creating and improving housing, business, and
infrastructure throughout rural America.
The Agricultural Improvement Act of 2018 (2018 Farm Bill) made
mandatory changes to the Rural Telephone Loan Program administered by
the Telecommunications Program of the Rural Utilities Service.
These modifications to the program's regulations will allow RUS to
fully implement the requirements of the 2018 Farm Bill. RUS is also
taking the opportunity to make minor changes to the program regulations
that will update or correct existing regulatory citations, data speeds,
and other program provisions to bring them in line with the statutory
changes required by the 2018 Farm Bill.
Changes to 7 CFR part 1735 ``General Policies, Types of Loans, Loan
Requirements--Telecommunications Program'' include:
Adding paragraph (d) to Sec. 1735.1. The addition of paragraph (d)
provides notice to applicants that they may be eligible to receive
grant assistance through Title VI which is governed by 7 CFR part 1738.
The Agency determined this was the most effective way to provide this
information.
The addition of a definition of Retail Broadband Service to Sec.
1735.2. The definition provides information to the public on what the
Agency considers ``retail broadband service'' for the purposes of this
part.
Clarifying, at Sec. 1735.10(a)(2)(ii), that multiuse networks that
provide critical transportation-related services are considered
integrated interoperable emergency communications and therefore are an
eligible loan purpose.
Removing the requirement for a certificate of convenience and
necessity from Sec. 1735.12. While necessary when the program was
implemented, the prevalence of services at this time and changes to
state regulatory bodies has rendered the certificate meaningless for
Agency purposes. The Agency also expanded the authority of the RUS
Administrator, at Sec. 1735.12(a), to determine non-duplication of
services. Previously the Administrator only made that determination for
states in which there was no regulatory body. This change will reduce
the burden on applicants and aid in streamlining the application
process. Clarification regarding non-duplication verification for
existing borrowers is provided by the Agency, at Sec. 1735.12(b).
Modifying the criteria at Sec. 1735.12(c) to remove specific
transmission and reception rates and require coverage as described in
Sec. 1735.11 for local area exchanges. These changes remove outdated
terminology, create a single requirement which reduces confusion and
creates consistency for all applicants.
Changing the thresholds, at Sec. 1735.21, regarding refinancing to
conform to 2018 Farm Bill requirements. Prior to the 2018 Farm Bill,
the Agency was only able to refinance non-RUS loans as long as no more
than 40 percent of the new loan was used for refinancing. The 2018 Farm
Bill removed the 40 percent cap and extended the ability to refinance
100 percent of non-RUS and RUS debt. Refinancing limits will be
published in the funding opportunity announcement opening an
application window and based on amounts that are authorized for a given
fiscal year. However, the Agency is considering limiting refinancing of
non-RUS loans to 50 percent of the total loan amount while allowing 100
percent refinancing of existing RUS loans. Additional information was
added to this section to provide information on loans eligible for
refinancing as well as maximum amortizations.
Modifications to Sec. 1735.22(f), (g), and (i) to remove outdated
references to year 2000 compliant systems and correct an incorrect
reference that was carried forward from a previous version of the
regulation, respectively.
[[Page 50607]]
The addition of public notice filing and response requirements at
Sec. 1735.23. The notice will allow existing service providers to
respond to pending applications before the agency that propose to
provide broadband service outside of their territory that receives
federal universal support.
New reporting requirements at Sec. 1735.24. These new requirements
ensure similar data is reported and collected across multiple USDA
broadband programs to improve oversight and integrity.
Removal of refinancing language at Sec. 1735.52 that is now
duplicative due to the changes at Sec. 1735.21.
Changes to 7 CFR part 1737, ``Pre-Loan Policies and Procedures
Common to Insured and Guaranteed Telecommunications Loans'' include
multiple changes to Sec. 1737.22 to include the removal of the
requirement for a certified copy of a certificate of convenience and
necessity as that certificate is no longer required due to changes
implemented by the 2018 Farm Bill.
Additional application information was added to Sec. 1737.22(c)
and (e) for loans involving refinancing. This additional information is
necessary to ensure that the loans to be refinanced meet the criteria
set forth in this regulation and the funding opportunity announcement
that opens a funding window.
Changes at Sec. 1737.90 to include language allowing obligation
but not disbursal of funds, under certain circumstances, prior to the
completion of historical or other types of review identified during the
environmental review. This change allows for obligation of funds so
awardees know that funds will be available while still maintaining the
integrity of the environmental review process.
Amendments and Comparison to the Current Regulation
The Telecommunications Program and the organizations that apply for
its funding face significant challenges putting in place projects that
can deliver and maintain robust, affordable telecommunication services
to rural consumers. These challenges include rapidly evolving
technology, competition, and the ever-present higher costs of serving
rural areas. The final rule will implement statutory changes required
by the 2018 Farm Bill, as well as minor conforming changes that will
update and/or correct existing regulatory citations, data speeds and
other program provisions to ensure they are in line with the required
statutory changes. The changes are expected to create greater program
transparency and ensure program rules are clear and consistent.
Table 1 below shows which sections of the regulations were changed
due to the statutory authority contained in the 2018 Farm Bill and
those changes where RUS is exercising discretion to improve program
clarity. If the sections of the regulations are not specifically stated
within the table, no changes were made to those sections.
Table 1--Statutory and Discretionary Changes to the Regulations
----------------------------------------------------------------------------------------------------------------
2018 Farm Bill
Section of regulation Revision requirement Discretionary
----------------------------------------------------------------------------------------------------------------
7 CFR Part 1735--General Policies, Types of Loans, Loan Requirements--Telecommunications Program
----------------------------------------------------------------------------------------------------------------
Sec. 1735.1 General Statement........... Paragraph that entities applying X ...............
under this part could be eligible
for grant funds under 7 CFR
1738.101 added.
Sec. 1735.2 Definitions................. Retail Broadband service X ...............
definition added.
Sec. 1735.10 General.................... Updated terminology for 911 X ...............
service added.
Language on guaranteed fees ............... X
removed.
Sec. 1735.12 Nonduplication............. Certificate of Convenience and X ...............
Necessity requirement was removed.
Outdated broadband speeds were X ...............
removed.
Sec. 1735.21 Refinancing Loans.......... Updated with new RUS refinancing X ...............
authorities.
Sec. 1735.22 Loan Security.............. ``Year 2000'' system compliance ............... X
language was removed.
Paragraph citation errors ............... X
corrected.
Sec. 1735.23 Public Notice.............. New public notice requirements and X ...............
timeframe added.
Sec. 1735.24 Additional Reporting New reporting requirements and X ...............
Requirements. policies added.
Sec. 1735.51 Required Findings.......... Certificate of Convenience and X ...............
Necessity requirement removed.
Sec. 1735.52 Findings Required for Duplicative refinancing language ............... X
Particular Loan Purposes. removed.
----------------------------------------------------------------------------------------------------------------
7 CFR Part 1737--Pre-Loan Policies and Procedures Common to Insured and Guaranteed Telecommunications Loans
----------------------------------------------------------------------------------------------------------------
Sec. 1737.22 Supplemental Information... Certificate of Convenience and X ...............
Necessity requirement removed.
Refinancing requirements updated.. X ...............
Public Notice requirements added.. X ...............
Sec. 1737.90 Loan Approval Requirements. Language added to allow X ...............
obligations prior to
environmental reviews being
complete if related to specific
broadband equipment.
----------------------------------------------------------------------------------------------------------------
List of Subjects
7 CFR Part 1735
Loan programs-communications, Reporting and recordkeeping
requirements, Rural areas, Telephone.
7 CFR Part 1737
Loan programs-communications, Reporting and recordkeeping
requirements, Rural areas, Telephone.
For reasons set forth in the preamble, 7 CFR parts 1735 and 1737
are amended as follows:
PART 1735--GENERAL POLICIES, TYPES OF LOANS, LOAN REQUIREMENTS--
TELECOMMUNICATIONS PROGRAM
0
1. The authority citation for part 1735 continues to read as follows:
[[Page 50608]]
Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.
Subpart A--General
0
2. Amend Sec. 1735.1 by adding paragraph (d) to read as follows:
Sec. 1735.1 General statement.
* * * * *
(d) Entities applying for a loan under this part may be eligible to
receive a grant under 7 CFR 1738.101, for a portion of the project
providing retail broadband service.
0
3. Amend Sec. 1735.2 by adding, in alphabetical order, the definition
of ``Retail broadband service'' to read as follows:
Sec. 1735.2 Definitions.
* * * * *
Retail broadband service means any technology identified by the
Administrator as having the capacity to provide transmission facilities
that enable the subscriber to receive a minimum level of service equal
to at least a downstream transmission capacity of 25 megabits per
second (Mbps) and an upstream transmission capacity of 3 Mbps. The
agency may change the minimum transmission capacity by way of notice in
the Federal Register. The minimum transmission capacity may be higher
than 25 Mbps downstream and 3 Mbps upstream but cannot be lower.
* * * * *
Subpart B--Loan Purposes and Basic Policies
0
4. Amend Sec. 1735.10 by:
0
a. Revising paragraph (a)(2)(ii);
0
b. Removing paragraph (e); and
0
c. Redesignating paragraphs (f) and (g) as paragraphs (e) and (f),
respectively.
The revision reads as follows:
Sec. 1735.10 General.
(a) * * *
(2) * * *
(ii) Integrated interoperable emergency communications, including
multiuse networks that provide critical transportation-related
information services in addition to emergency communications services;
* * * * *
0
5. Amend Sec. 1735.12 by:
0
a. Revising paragraph (a) and (b);
0
b. Removing paragraphs (c)(2) and (3);
0
c. Redesignating paragraphs (c)(4) through (12) as paragraphs (c)(2)
through (10), respectively; and
0
d. Revising newly redesignated paragraph (c)(5).
The revisions read as follows:
Sec. 1735.12 Nonduplication.
(a) A loan will not be made unless the Administrator determines
that no duplication of lines, facilities, or systems already providing
reasonably adequate services shall result from such a loan.
(b) Existing borrowers that apply to upgrade existing facilities in
their existing service area are exempt from the non-duplication
requirement in paragraph (a) of this section.
(c) * * *
(5) The LEC's network is capable of providing retail broadband
service as defined in Sec. 1735.2 to any subscriber location.
* * * * *
0
6. Revise Sec. 1735.21 to read as follows:
Sec. 1735.21 Refinancing loans.
(a) Any new direct or guaranteed loan authority provided under the
RE Act may be used to refinance an outstanding obligation of the
applicant on another loan made under Titles II and VI of the RE Act, or
on a non-RUS loan if that loan would have been for eligible
telecommunications purposes under the RE Act provided that:
(1) The applicant is current with its payments on the RUS loan(s)
to be refinanced; and
(2) The amortization period for that portion of the loan request
that will be needed for refinancing will not exceed the remaining
amortization period for the loan(s) to be refinanced. If multiple notes
are being refinanced, an average remaining amortization period will be
calculated based on the weighted dollar average of the notes being
refinanced.
(b) The amount that can be refinanced will be included in the
funding opportunity announcement that will open a funding window based
on the funds authorized for any given fiscal year.
0
7. Amend Sec. 1735.22 by revising paragraphs (f), (g), and (i) to read
as follows:
Sec. 1735.22 Loan security.
* * * * *
(f) RUS makes loans only if the borrower's entire system, including
the facilities to be constructed with the proceeds of the loan, is
economically feasible, as determined by RUS.
(g) For purposes of determining compliance with TIER requirements,
unless a borrower whose existing mortgage contains TIER maintenance
requirements notifies RUS in writing differently, RUS will apply the
requirements described in paragraph (h) of this section to the borrower
regardless of the provisions of the borrower's existing mortgage.
* * * * *
(i) Nothing in this section shall affect any rights of supplemental
lenders under the RUS mortgage, or other creditors of the borrower, to
limit a borrower's TIER requirement to a level above that established
in paragraph (h) of this section.
* * * * *
0
8. Add Sec. 1735.23 to read as follows:
Sec. 1735.23 Public notice.
(a) Applications for funding request in which the applicant will
provide retail broadband service, the Agency's mapping tool will
include the following information from each application, and will be
displayed for the public:
(1) The identity of the applicant;
(2) A description of the project that can deliver retail broadband
service;
(3) A map of the areas to be served, the proposed funded service
area (PFSA), including identification of the associated census blocks;
(4) The amount and type of funding requested;
(5) The status of the application; and
(6) The estimated number and proportion of households and
businesses in the proposed funded service area without fixed retail
broadband service, whether terrestrial or wireless, excluding mobile
and satellite service.
(b) For funding requests outside an area where the applicant
receives Federal universal service support, the public notice filing
referenced under paragraph (a) of this section will accept public
notice responses from existing service providers with respect to retail
broadband service already being provided in the PFSA for 45 calendar
days on the Agency's web page. Existing service providers are requested
to submit the following information through the Agency's mapping tool:
(1) The number of residential and business customers within the
PFSA currently purchasing broadband at the minimum threshold, the rates
of data transmission being offered, and the cost of each level of
broadband service charged by the existing service provider;
(2) The number of residential and business customers within the
applicant's service area receiving voice and video services and the
associated rates for these other services;
(3) A map showing where the existing service provider's services
coincide with the applicant's service area using the Agency's mapping
tool; and
(4) Test results for the service area in question for a minimum of
at least the
[[Page 50609]]
prior three months demonstrating that the asserted level of broadband
is being provided. The test results shall be for different times of the
day.
(c) The Agency may contact service providers that respond under
paragraph (b) of this section to validate their submission, and so
responding service providers should be prepared to:
(1) Provide additional information supporting that the area in
question has sufficient access to broadband service;
(2) Have a technician on site during the field validation by RUS
staff;
(3) Run on site tests with RUS personnel being present, if
requested; and
(4) Provide copies of any test results that have been conducted in
the last six months and validate the information submitted in the
public notice response months.
(d) If no broadband service provider submits information pursuant
to a pending application or if the existing provider does not provide
the information requested under paragraphs (b) and (c) of this section,
RUS will consider the extent of broadband service using any other data
available through reasonable efforts, including utilizing the National
Telecommunications and Information Administration's National Broadband
Availability Map and the Federal Communications Commission broadband
availability map. That may include the agency conducting field
validations so as to locate facilities in the application service area
and determine, to the extent possible, if those facilities can provide
the minimum threshold of broadband. Notwithstanding, conclusive
evidence as to the existence of the level of broadband will be taken
only through the public notice process. As a result, the Agency highly
recommends that existing service providers in a PFSA submit public
notice response to ensure that their service is considered in the
determination of eligibility on an application.
(e) The Agency will notify respondents who are existing service
providers whether their public notice response was accepted or not and
allow for an opportunity to respond.
(f) The information submitted by an existing service provider under
paragraphs (b) and (c) of this section will be treated as proprietary
and confidential and not subject to disclosure, pursuant to 7 U.S.C.
950cc(b)(3).
(g) For all applications that are approved, the following
information will be made available to the public:
(1) The information provided in paragraph (a) of this section;
(2) Each annual report required under Sec. 1735.24 will be
redacted to protect any proprietary information; and
(3) Such other information as the Administrator of the RUS deems
sufficient to allow the public to understand the assistance provided.
0
9. Add Sec. 1735.24 to read as follows:
Sec. 1735.24 Additional reporting requirements.
(a) Entities receiving financial assistance from RUS that are used
for retail broadband must submit annual reports for 3 years after
project completion. The reports must include the following information:
(1) The purpose of the financing, including new equipment and
capacity enhancements that support high-speed broadband access for
educational institutions, health care providers, and public safety
service providers (including the estimated number of end users who are
currently using or forecasted to use the new or upgraded
infrastructure); and
(2) The progress towards fulfilling the objectives for which the
assistance was made, including:
(i) The number of service points that will receive new broadband
service, existing network improvements, and facility upgrades resulting
from the federal assistance;
(ii) The speed of the broadband services;
(iii) The average price of the most subscribed tier of retail
broadband service in each PFSA;
(iv) The number of new subscribers generated from the project; and
(v) Complete, reliable, and precise geolocation information that
indicates the location of new broadband service that is being provided
or upgraded within the service territory supported by the grant, loan,
or loan guarantee.
(b) A notice will be published on the Agency's website that will
include each annual broadband improvement report, redacted as
appropriate to protect any proprietary information in the report.
Subpart E--Basic Requirements for Loan Approval
0
10. Amend Sec. 1735.51 by revising paragraph (c) to read as follows:
Sec. 1735.51 Required findings.
* * * * *
(c) Nonduplication or certificate requirement. The borrower shall
provide RUS with satisfactory evidence to enable the Administrator to
determine that no duplication of telephone service shall result from a
particular loan.
Sec. 1735.52 [Amended]
0
11. Amend Sec. 1735.52 by removing paragraph (a) and removing the
paragraph (b) designation and heading.
PART 1737--PRE-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND
GUARANTEED TELECOMMUNICATIONS LOANS
0
12. The authority citation for part 1737 continues to read as follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq.; Pub. L. 103-354,
108 Stat. 3178 (7 U.S.C. 6941 et. seq.).
Subpart C--The Loan Application
0
13. Amend Sec. 1737.22 by:
0
a. Removing paragraph (a)(13);
0
b. Redesignating paragraphs (a)(14) through (20) as paragraphs (a)(13)
through (19), respectively;
0
c. Designating the text of newly redesignated paragraph (a)(19) as
paragraph (a)(19)(i);
0
d. Designating the undesignated paragraph following newly designated
paragraph (a)(19)(i) as paragraph (a)(19)(ii);
0
e. In newly designated paragraph (a)(19)(ii), removing ``(a)(19)'' and
adding ``(a)(18)'' in its place;
0
f. Revising paragraphs (b) introductory text, (c) introductory text,
and (c)(3);
0
g. Redesignating paragraph (d) as paragraph (e); and
0
h. Adding a new paragraph (d) and paragraph (f).
The revisions and additions read as follows:
Sec. 1737.22 Supplementary information.
* * * * *
(b) The following must be submitted by borrowers seeking subsequent
loans:
* * * * *
(c) For borrowers requesting funds for construction or refinancing,
in addition to the information included in paragraphs (a) and (b) of
this section, the following must be submitted:
* * * * *
(3) Justification for refinancing and evidence that the underlying
loan to be refinanced would have been eligible for RUS financing under
the RE Act.
(d) Loan requests whose sole purpose is to refinance loans under
Titles II and VI of the RE Act must submit the following:
(1) Certified financial statements for the last 3 years.
(2) Five-year financial projections consisting of Income Statement,
Balance Sheet, and Cash Flow Statement.
(3) A ``Certification Regarding Lobbying'' for loans, or a
``Statement for Loan Guarantees and Loan Insurance''
[[Page 50610]]
for loan guarantees, and when required, an executed Standard Form LLL,
``Disclosure of Lobbying Activities,'' (see section 319, Pub. L. 101-
121 (31 U.S.C. 1352)).
(4) Executed copy of Form AD-1047, ``Certification Regarding
Debarment, Suspension, and Other Responsibility Matters--Primary
Covered Transactions.''
(5) Borrower's determination of loan maturity.
(6) A statement that the borrower is or is not delinquent on any
Federal debt, such as income tax obligations or a loan or loan
guarantee from another Federal agency. If delinquent, the reasons for
the delinquency must be explained and RUS will take such explanation
into consideration in deciding whether to approve the loan. RUS Form
490, ``Application for Telephone Loan or Guarantee,'' contains a
section for providing the required statement and any appropriate
explanation.
(7) Any other supporting data required by the Administrator.
* * * * *
(f) For all applications that request funding for retail broadband
as defined in 7 CFR 1735.2, the application must include all
information required for the public notice as stated in 7 CFR
1735.23(a).
* * * * *
Subpart J--Final Loan Approval Procedures
0
14. Amend Sec. 1737.90 by revising paragraph (a)(6) to read as
follows:
Sec. 1737.90 Loan approval requirements.
(a) * * *
(6) All environmental review requirements must be met in accordance
with 7 CFR part 1970. The Agency may obligate, but not disperse, funds
under the program pursuant to 7 U.S.C. 950cc-1, before the completion
of the otherwise required environmental, historical, or other types of
reviews if the Secretary of Agriculture determines that subsequent
site-specific review shall be adequate and easily accomplished for the
location of towers, poles, or other broadband facilities in the service
area of the awardee without compromising the project or the required
reviews.
* * * * *
Christopher A. McLean,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2021-19319 Filed 9-9-21; 8:45 am]
BILLING CODE 3410-15-P
