Affordable Connectivity Program, 8385-8390 [2022-02908]
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Federal Register / Vol. 87, No. 30 / Monday, February 14, 2022 / Proposed Rules
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 54
[WC Docket No. 21–450; FCC 22–2; FRS
71007]
Affordable Connectivity Program
Federal Communications
Commission.
ACTION: Proposed rule.
AGENCY:
In this document, the Federal
Communications Commission
(Commission or FCC) seeks comment on
proposals for increasing awareness of
and participation in the Affordable
Connectivity Program and for an
enhanced affordable connectivity
benefit for consumers in certain highcost areas.
DATES: Interested parties may file
comments on or before March 16, 2022
and reply comments on or before April
15, 2022.
ADDRESSES: All filings should refer to
WC Docket No. 21–450. Comments may
be filed by any of the following
methods:
D Electronic filers: You may file
comments electronically by accessing
the Commission’s Electronic Comment
Filing System (ECFS) at https://
www.fcc.gov/ecfs/filings.
D Paper filers: Parties who choose to
file by paper must file an original and
one copy of each filing. Filings can be
sent by commercial overnight courier, or
by first-class or overnight U.S. Postal
Service mail. Parties that need to submit
confidential filings to the Commission
should follow the instructions provided
in the Commission’s March 31, 2020
public notice regarding the procedures
for submission of confidential materials.
See FCC Provides Further Instructions
Regarding Submission of Confidential
Materials, Public Notice, DA 20–361, 35
FCC Rcd 2973 (OMD, March 31, 2000),
https://docs.fcc.gov/public/
attachments/DA-20-361A1_Rcd.pdf. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
• Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9050
Junction Drive, Annapolis Junction, MD
20701.
• U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 45 L Street NE,
Washington, DC 20554.
• Effective March 19, 2020, and until
further notice, the Commission no
longer accepts any hand or messenger
delivered filings. This is a temporary
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measure taken to help protect the health
and safety of individuals, and to
mitigate the transmission of COVID–19.
See FCC Announces Closure of FCC
Headquarters Open Window and
Change in Hand-Delivery Policy, Public
Notice, DA 20–304 (March 19, 2020),
https://www.fcc.gov/document/fcccloses-headquarters-open-window-andchanges-hand-delivery-policy.
People with Disabilities: To request
materials in accessible formats for
people with disabilities (Braille, large
print, electronic files, audio format),
send an email to fcc504@fcc.gov or call
the Consumer & Governmental Affairs
Bureau at 202–418–0530.
Ex Parte Rules. This proceeding shall
continue to be treated as a ‘‘permit-butdisclose’’ proceeding in accordance
with the Commission’s ex parte rules,
47 CFR 1.1200 et seq. Persons making ex
parte presentations must file a copy of
any written presentation or a
memorandum summarizing any oral
presentation within two business days
after the presentation (unless a different
deadline applicable to the Sunshine
period applies). Persons making oral ex
parte presentations are reminded that
memoranda summarizing the
presentation must (1) list all persons
attending or otherwise participating in
the meeting at which the ex parte
presentation was made, and (2)
summarize all data presented and
arguments made during the
presentation. If the presentation consists
in whole or in part of the presentation
of data or arguments already reflected in
the presenter’s written comments,
memoranda or other filings in the
proceeding, the presenter may provide
citations to such data or arguments in
his or her prior comments, memoranda,
or other filings (specifying the relevant
page and/or paragraph numbers where
such data or arguments can be found) in
lieu of summarizing them in the
memorandum. Documents shown or
given to Commission staff during ex
parte meetings are deemed to be written
ex parte presentations and must be filed
consistent with 47 CFR 1.1206(b).
Written ex parte presentations and
memoranda summarizing oral ex parte
presentations, and all attachments
thereto, must be filed through the
Electronic Comment Filing System and
must be filed in their native format (e.g.,
.doc, .xml, .ppt, searchable .pdf).
Participants in this proceeding should
familiarize themselves with the
Commission’s ex parte rules.
FOR FURTHER INFORMATION CONTACT:
Wu, Attorney Advisor,
Telecommunications Access Policy
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Eric
8385
Division, Wireline Competition Bureau,
at eric.wu@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
synopsis of the Commission’s Further
Notice of Proposed Rulemaking
(FNPRM) in WC Docket No. 21–450,
FCC 22–2, adopted January 14, 2022,
and released January 20, 2022. The full
text of this document is available at
https://docs.fcc.gov/public/
attachments/FCC-22-2A1.pdf. The
Report and Order that was adopted
concurrently with this Notice of
Proposed Rulemaking is to be published
elsewhere in the Federal Register.
I. Introduction
1. The Commission seeks comment on
aspects of the Infrastructure Investment
and Jobs Act (Infrastructure Act) and
proposals for increasing awareness of
and participation in the Affordable
Connectivity Program. Specifically the
Commission seeks comment on three
sets of issues: (1) Structuring an
outreach grant program; (2) establishing
a potential pilot program focused on
increasing the awareness and
enrollment of eligible households
participating in Federal Public Housing
Assistance Programs in the Affordable
Connectivity Program; and (3)
implementing a mechanism for
determining the application of the
enhanced benefit for those serving highcost areas, as to be determined by the
National Telecommunications
Information Administration (NTIA).
A. Outreach Grant Program
2. Grant Program. The Affordable
Connectivity Program will rely heavily
on outreach efforts to make eligible
households aware of and informed
about the program. As evidenced in the
record, certain segments of eligible
households that would benefit from the
program currently have low
participation rates. The Infrastructure
Act provides that the Commission may
conduct various outreach efforts to
encourage households to enroll in the
Affordable Connectivity Program. The
notice commencing this proceeding
(referred to as ACP Public Notice)
sought comment on the use of these
statutorily authorized outreach tools,
including the authority to provide
grants to outreach partners. See Wireless
Competition Bureau Seeks Comment on
the Implementation of the Affordable
Connectivity Program, Proposed Rule,
88 FR 74036, 74056–57, paras. 108–112
(Dec. 29, 2021) (ACP Public Notice). As
further explained in the Report and
Order accompanying this Further Notice
of Proposed Rulemaking (FNPRM), the
Commission endeavors to use a variety
of outreach tools permitted under the
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statute to reach eligible consumers,
including but not limited to people of
color, persons with disabilities, persons
who live in rural or Tribal areas, and
others who are or have been historically
underserved, marginalized, or adversely
affected by persistent poverty or
inequality. In addition to the
Commission’s own outreach efforts,
outreach partners also play an important
role in disseminating information about
the Affordable Connectivity Program;
and grant funding would help expand
these outreach efforts and improve their
effectiveness.
3. Any agency establishing a grant
program must do so in strict compliance
with 2 CFR part 200 and other
regulations and statutes applicable to
Federal grants. However, while the
Commission typically administers
various types of financial assistance
programs, it does not have experience
with the unique statutory and regulatory
requirements applicable to Federal grant
programs. While the present record
evinces strong support for the
establishment of a grant program to
promote awareness of and enrollment in
the Affordable Connectivity Program
and identifies several potential uses of
outreach funds, the structure and
implementation of such a program
requires further exploration due to the
unique statutory and regulatory
requirements of the Federal grant
program, which the Commission has not
previously administered. Accordingly,
the Commission seeks additional
comment and feedback on structuring
an outreach grant program to be
managed by the Commission in support
of consumer outreach concerning the
Affordable Connectivity Program, as
permitted in the Infrastructure Act.
4. Several commenters support the
establishment of an outreach grant
program and offer various
recommendations and relevant insights.
For instance, EducationSuperHighway
cites the Internal Revenue Service’s
(IRS) Volunteer Income Tax Assistance
(VITA) Program as a useful example that
the Commission should look to as a
model. Are there other analogous
Federal outreach grant programs the
Commission should consider as good
models for establishing an outreach
grant program besides those already
identified in the record? The
Commission especially encourages
interested parties that have experience
serving people of color, persons with
disabilities, persons who live in rural or
Tribal areas and others who are or have
been historically underserved,
marginalized, or adversely affected by
persistent poverty or inequality,
including State, local and Tribal
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governments and non-profit
community-based organizations, to
identify Federal grant programs that
they have found to be helpful in those
efforts.
5. The Commission seeks comment on
the duration and budget for an outreach
grant funding program and proposes to
create a multiple-year outreach grant
program to align with the expectation
that the Affordable Connectivity
Program will extend for multiple years.
Should this multi-year program require
grantees to submit new applications
periodically? Should the Commission
instead consider establishing a onetime, limited duration outreach grant
program? The Commission also seeks
comment on the appropriate funding
amount for a grant program.
6. As reflected in the record,
commenters support the Commission
using a wide variety of outreach
methods to take advantage of the
statutory tools provided in the
Infrastructure Act, including the
establishment of an outreach grant
program Are there particular types of
outreach activities toward which the
Commission should consider targeting
outreach grant funds? Tech Goes Home
emphasizes the importance of ensuring
that adequate resources are provided to
local outreach partners to prevent
additional financial burdens. How much
funding might grantees need in order to
execute effective outreach efforts? The
Commission seeks comment on
estimated ranges of outreach grant
awards, taking into consideration the
range of costs that may be associated
with outreach efforts, including those
identified in the record, and on
potential per-application funding caps.
The Commission also seeks comment on
types of support and outreach material
the Commission could provide to help
outreach partners. Should the
Commission provide technical
assistance to grantees? What would be
valuable technical assistance to grantees
and how might technical assistance
evolve over the duration of the grant
program implementation?
7. The Commission next seeks
comment on entities that should be
eligible for outreach grant funding. The
record reflects support for relying on
non-profit organizations and trusted
community organizations as outreach
partners for the Affordable Connectivity
Program. AARP recommends that
preference in grant awards should be
given to organizations with established
public interest credentials, preferably
non-profit organizations, that have
strong ties with key communities,
including multi-cultural communities,
and that grant applicants be required to
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provide examples of successful past
outreach initiatives. The County of Los
Angeles recommends that the
Commission consider awarding grants
to local governments, including
counties, cities, and other entities, to
further develop hyper-local campaigns,
taking into consideration language
needs, digital literacy, social media
trends, relevant linear media, and other
local factors. The Commission seeks
comment on the types of entities that
should be deemed eligible to receive
potential outreach grant funding. If nonprofit organizations are eligible for
funds, should eligibility be limited to
non-profit organizations with tax
exempt status under 26 U.S.C. 501(c)(3)?
Should State, local, and Tribal
governments, including associated
social service agencies, school districts,
libraries, public housing authorities,
State governmental entities that carry
out workforce development programs,
or State agencies that are responsible for
administering or supervising adult
education and literacy activities in the
State, be eligible to receive grant funds?
Are there other types of organizations
that should be eligible?
8. Grantees would be required to
adhere to applicable Federal grantee
regulations, including but not limited to
taking all necessary affirmative steps to
assure that minority businesses,
women’s business enterprises, and labor
surplus area firms are used when
possible. See 2 CFR 200.321(a). Should
use of outreach grant funds be limited
to the named grant recipient, or should
funding recipients be permitted to use
subgrantees? Would allowing
subgrantees significantly complicate the
administration of an outreach grant
program? Do other outreach grant
programs typically permit subgrantees?
Is there evidence that the funding of
subgrantees can lead to improved,
targeted outreach?
9. The Commission also seeks
comment on the application process,
reporting, and other requirements for a
potential outreach grant program.
Interested parties should refer to the
Uniform Administrative Requirements,
Cost Requirements, and Audit
Requirements for Federal Awards, 2
CFR part 200, as well as the general
reporting requirements in 2 CFR parts
25 and 170. The National Digital
Inclusion Alliance requests that the
application process, reporting
requirements, and financial
requirements be minimally burdensome,
to the extent possible and recommends
that the Commission should ‘‘limit
barriers to participation by small
organizations that are trusted in their
communities but have limited capacity
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to participate in large Federal grant
programs. The Commission invites
commenters that have received Federal
grants to address the grantee experience,
including the grant application process,
their use of grant funds, and best
practices with respect to financial and
reporting requirements for grant
recipients, particularly for outreach
grants. Should the application and
selection process for a potential
outreach grant program be competitive?
The Commission seeks comment on
how the Commission could structure an
application and evaluation process to
maximize the potential reach and
effectiveness of outreach grant funding.
10. An outreach grant program should
maximize the number of eligible
consumers participating in the
Affordable Connectivity Program. The
Commission seeks comment on whether
awarding funding to applicants from a
range of organization types and sizes
(e.g., nationwide, regional, local, and
smaller organizations) and ensuring
diversity in geographic areas and
intended outreach populations will best
serve the underlying goal of increasing
enrollment in the program. To do so
effectively, the Commission has a strong
interest in selecting grant applications
that would target underserved
populations and areas where the
funding will have the most impact on
increasing awareness of and,
consequently, enrollment in the
Affordable Connectivity Program.
Should special consideration be given to
prior experience working with or
conducting outreach to such
communities? The Commission seeks
comment on what types of information
should be sought from applicants in
order to enable it to make informed
decisions about the merits of the
applications, including the reach of
applicant organizations and the
populations that they target. What
metrics should the Commission take
into account when considering
applications and selecting grantees?
11. The Commission seeks comment
on establishing goals and metrics to
track the outreach grant program’s
performance of the goals of promoting
awareness of the Affordable
Connectivity Program and enrollment
by eligible households. What metrics
could track performance towards the
goal of increasing enrollment? What
other measurable goals and metrics
would be appropriate for an outreach
funding program? The Commission also
seeks comment on appropriate
performance metrics and milestones for
potential grantees. Consistent with the
statutory and regulatory requirements of
grant programs, what factors could the
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Commission require grantees to track to
help measure the real impact of
supported outreach activities? What
steps should the Commission take to
aggregate and report the performance
data received from the grantees? What
would be appropriate periods of time for
reporting (e.g., annually or semiannually) and assessing performance
(e.g., one year or three years)?
12. Any agency establishing a grant
program must do so in compliance with
2 CFR, subtitle A, Office of Management
and Budget Guidance for Grants and
Agreements, and other regulations and
statutes applicable to Federal grants.
Because the Commission has not
previously implemented a grant
program, however, it must adopt rules
or delegate authority to the Wireline
Competition Bureau and the Office of
Managing Director in order to ensure
compliance with the government-wide
requirements applicable to grant
programs, including 2 CFR parts 25,
170, 175, 180, 182, and 200. Grant
programs also must comply with
requirements established in
appropriations legislation. See, e.g.,
Public Law 116–260, 134 Stat. 1182,
1439–1442 (Dec. 27, 2020) limitations
on conference expenses, prohibition of
whistleblowing confidentiality
agreements, and restrictions on grants to
entities with unpaid Federal tax
liabilities or recent felony convictions).
Parties are encouraged to comment on
the Commission’s implementation of
those requirements, especially in light
of the objectives of the outreach grant
program.
B. Pilot Program Focused on Eligible
Households Participating in Federal
Public Housing Assistance Programs
13. Under the supervision of the
Department Housing and Urban
Development (HUD), city and State
housing authorities administer Federal
Public Housing Assistance (FPHA)
programs, such as the housing choice
voucher program (Section 8), projectbased rental assistance, and public
housing, that benefit millions of
Americans, including extremely lowincome families. Congress and the
Commission have long recognized the
importance of connecting these
households to Lifeline communications
services and, more recently, to services
supported by the Emergency Broadband
Benefit (EBB). The record demonstrates
that large numbers of households in
public housing would benefit from the
Affordable Connectivity Program.
14. In working to expand
participation in the Affordable
Connectivity Program, the Commission
reaffirms the importance of connecting
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FPHA beneficiaries that are eligible for
the Affordable Connectivity Program.
Most of these households were eligible
for the predecessor EBB Program, but
only a small share of them enrolled in
the EBB Program.1 Additional steps and
innovative approaches are needed to
help ensure that the Affordable
Connectivity Program reaches the
lowest-income Americans. To that end,
the Commission seeks comment on
launching a pilot program focused on
expanding ACP participation by FPHA
beneficiaries, including increasing
awareness and assisting with navigating
the enrollment process. Are there other
obstacles to ACP enrollment for FPHA
beneficiaries that should be addressed?
15. The Infrastructure Act requires the
Commission to collaborate with relevant
Federal agencies and permits the
Commission to engage in outreach
efforts to encourage eligible households
to enroll in the Affordable Connectivity
Program. To this end, the Commission
intends to use a wide range of available
outreach tools to increase awareness of
and participation in the Affordable
Connectivity Program. The record
demonstrates that there is particular
need for increased outreach to raise
awareness of and participation in the
Affordable Connectivity Program among
low-income Americans who participate
in the FPHA programs. Accordingly, the
Commission is interested in exploring
innovative ways that the Commission
could partner with agencies that
administer the FPHA programs on
outreach and enrollment for the
Affordable Connectivity Program. The
Commission first seeks assistance in
identifying the specific partner agencies
for these efforts. In particular, the
Commission seeks comment on the
types of collaborative cross-agency
outreach that would be most effective at
reaching this population. Are there
examples of cross-agency marketing and
outreach efforts that the Commission
should look to as models for these
efforts? Are there other models the
Commission should look to in designing
and implementing these cross-agency
efforts? What sources of data should the
Commission consider to identify
specific locations where such crossagency outreach and marketing efforts
are most likely to have a significant
impact?
16. The Commission also seeks
comment on ways to make outreach
through the partnerships as effective as
possible by identifying and developing
specific outreach and marketing efforts
to be conducted through this pilot. Are
there proven methods for
communicating well with FPHA
beneficiaries? What should the scope
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and duration of these efforts be? The
Commission also seeks comment on
whether and how it can partner with
third parties, including non-profit
organizations, to help identify, develop,
and carry out these marketing and
outreach efforts. Should the
Commission use Affordable
Connectivity Program funding
designated for outreach for these efforts?
17. Heightening FPHA beneficiaries’
awareness of the Affordable
Connectivity Program alone may not be
enough to significantly increase their
participation in the program, and
accordingly, the Commission seeks
comment on how to best assist FPHA
households in accessing or navigating
the program application process. The
Commission expects that partner
agencies have regular opportunities to
interact in person with members of
households eligible for the Affordable
Connectivity Program. Should the
Commission encourage partner agencies
to establish, as part of this pilot,
assistance locations on site where
eligible household members can
complete and submit applications for
the Affordable Connectivity Program?
What are the benefits of such
arrangements? This effort could impose
some additional burdens on the staff
and resources of partner agencies; how
can the Commission reduce such
burdens? Should the Commission direct
the Universal Service Administrative
Company (USAC) to give those agencies
access to the National Verifier (as
defined in 47 CFR 54.1800(q)) in order
to assist applicants who are physically
present with completing and submitting
applications for the Affordable
Connectivity Program?
18. The Commission proposes to
require any representatives that are
granted access to the National Verifier to
register in the Representative
Accountability Database, consistent
with 47 CFR 54.1807(a), and to indicate
that they are providing such assistance
when they help consumers submit
applications through the National
Verifier. The Commission seeks
comment on this proposal and on
additional ways to help eligible FPHA
households enroll. Are there other
models for providing enrollment
assistance the Commission should
consider?
19. The Commission seeks comment
on how to measure the success of this
pilot in increasing awareness of and
enrollment in the Affordable
Connectivity Program by participants in
qualifying Federal Public Housing
Assistance Programs.
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C. Implementation of the Enhanced
Benefit for High-Cost Areas
20. The Infrastructure Act provides
for a separate enhanced affordable
connectivity benefit for households that
are served by providers in high-cost
areas (as the term high-cost areas is
defined in a separate section of the
Infrastructure Act), with such areas to
be identified by the National
Telecommunications Information
Administration (NTIA) in consultation
with the Commission. 47 U.S.C.
1752(a)(7)(B) (the ‘‘high-cost
provision’’). Specifically, the
Infrastructure Act establishes that a
discount of up to $75 per month may be
applied to a provider’s broadband
service ‘‘upon a showing that the
applicability of the lower [$30.00
maximum benefit that applies
elsewhere] to the provision of the
affordable connectivity benefit by the
provider would cause particularized
economic hardship to the provider such
that the provider may not be able to
maintain the operation of part or all of
its broadband network.’’ 47 U.S.C.
1752(a)(7)(B). The ACP Public Notice
sought comment on what the
mechanism should be, and what a
provider should be required to submit to
show a ‘‘particularized economic
hardship.’’ ACP Public Notice, paras.
71–73. While the present record
includes some comments on this highcost provision, the establishment of this
mechanism requires further exploration
given the interplay with other areas of
the Infrastructure Act. including the
definition of high-cost areas in 47 U.S.C.
1702(a)(2).
21. The high-cost areas provision
incorporates the definition of ‘‘high-cost
area’’ in 47 U.S.C. 1702(a)(2)(G)(i), as
‘‘an unserved area in which the cost of
building out broadband service is
higher, as compared with the average
cost of building out broadband service
in unserved areas in the United States,’’
as determined by NTIA in consultation
with the Commission. In turn, the term
unserved area is defined as ‘‘an area in
which not less than 80 percent of
broadband-serviceable locations are
unserved locations.’’ 47 U.S.C.
1702(a)(2)(G)(ii). See also 47 U.S.C.
1702(a)(2)(H) (defining ‘‘broadbandserviceable location’’); 47 U.S.C.
1702(a)(1)(A) (defining ‘‘unserved
location’’). The Commission seeks
comment on how to interpret and apply
the definition of ‘‘high-cost area’’ in 47
U.S.C. 1702(a)(2)(G)(i) for purposes of
the Affordable Connectivity Program,
including whether such high-cost areas
need to be unserved or if they can
include high-cost areas that are served
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or unserved by an existing broadband
provider. See also 47 U.S.C.
1702(a)(2)(H) (defining ‘‘broadbandserviceable location’’); 47 U.S.C.
1702(a)(1)(A) (defining ‘‘unserved
location’’).
22. The Commission seeks additional
comment on the mechanism by which a
provider can show particularized
economic hardship. Should the
Commission set clear standards or
benchmarks for providers on what
constitutes particularized economic
hardship? In their comments on the ACP
Public Notice, both NTCA and Conexon
contend that a provider may face
particularized economic hardship when
the expected revenue from a substantial
number of eligible households plus the
high-cost universal service support it
receives and the $30 monthly affordable
connectivity benefit do not cover the
cost of serving the designated high cost
area, including depreciation expense,
operating expense, the cost of capital,
and other associated expenses, thus
making it uneconomic to justify the
incremental private investment needed
to maintain the operation of that part of
its network. Other commenters assert
that commercial mobile carriers should
be able to demonstrate that one or more
cell sites may be decommissioned in the
absence of a higher ACP benefit, or
alternatively, would not be
decommissioned if the higher ACP
benefit is provided. The Commission
seeks comment on the best method of
determining whether providers face a
particularized economic hardship. What
constitutes a substantial number of
eligible households? What
considerations should be used to
determine a provider’s expected
revenues? When a provider has a
depressed take-rate, how can the
Commission determines the cause is
because households in that area cannot
afford internet? How can the
Commission assess the amount of
revenue that providers need to maintain
the operation of networks serving
households in the designated high-cost
areas? The Commission also seeks
comment on other standards and tests
the Commission should consider to
make this determination.
23. The Commission also invites
comment on the specific information
that providers should provide in order
to show particularized economic
hardship. What information (such as
revenues, cost models, capital
expenditures, etc.) should a provider be
required to submit to show that
increased subsidies from the Affordable
Connectivity Program are necessary for
the provider to maintain its network?
Alternatively, is there a level of poverty
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that could be applied in all high-cost
areas to determine where carriers face
particularized economic hardship?
What information is publicly available
for the Commission to consider in
making such a determination? Should
the Commission take into consideration
other subsidies and financial benefits
used by providers in determining a
provider’s request for high-cost
treatment in the Affordable Connectivity
Program?
24. The ACP Public Notice sought
comment on who should decide
whether the provider met the standard
for this enhanced benefit and the
Commission seeks further comment on
how this review process should be
implemented. What else should the
Commission consider when setting up
the process for making determinations
about a household’s eligibility to receive
this enhanced subsidy?
25. The Commission, as part of its
continuing effort to advance digital
equity for all, including people of color,
persons with disabilities, persons who
live in rural or Tribal areas, and others
who are or have been historically
underserved, marginalized, or adversely
affected by persistent poverty or
inequality, invites comment on any
equity-related considerations and
benefits (if any) that may be associated
with the proposals and issues discussed
herein. See Executive Order on
Advancing Racial Equity and Support
for Underserved Communities Through
the Federal Government, E.O. No.
13985, 86 FR 7009 (Jan. 20, 2021).
Specifically, the Commission seeks
comment on how these
26. proposals may promote or inhibit
advances in diversity, equity, inclusion,
and accessibility, as well the scope of
the Commission’s relevant legal
authority.
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II. Procedural Matters
Initial Paperwork Reduction Act of 1995
Analysis
27. This document contains proposed
new information collection
requirements. The Commission, as part
of its continuing effort to reduce
paperwork burdens, invites the general
public and the Office of Management
and Budget (OMB) to comment on the
information collection requirements
contained in this document, as required
by the Paperwork Reduction Act of
1995, Public Law 104–13, 44 U.S.C.
3501 et seq.). In addition, pursuant to
the Small Business Paperwork Relief
Act of 2002, Public Law 107–198, 44
U.S.C. 3506(c)(4), the Commission seeks
specific comment on how it might
further reduce the information
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collection burden for small business
concerns with fewer than 25 employees.
28. Initial Regulatory Flexibility
Analysis. As required by the Regulatory
Flexibility Act of 1980, as amended, 5
U.S.C. 603, the Commission has
prepared an Initial Regulatory
Flexibility Analysis (IRFA) of the
possible significant economic impact on
a substantial number of small entities of
the policies and rules proposed in the
Further Notice of Proposed Rulemaking
(FNPRM). Written public comments are
requested on this IRFA. Comments must
be identified as responses to the IRFA
and must be filed by the deadlines for
comments on the Further Notice. The
Commission will send a copy of the
Further Notice, including the IRFA, to
the Chief Counsel for Advocacy of the
Small Business Administration (SBA).
29. Need for, and Objectives of, the
Proposed Rules. The FNPRM seeks
comment on a multi-year grant program
to support the efforts of outreach
partners to inform potentially eligible
households about the Affordable
Connectivity Program and encourage
them to enroll in the program, including
the types of entities that could be
eligible to apply for and receive grants,
potentially including non-profit
organizations, State, local, and Tribal
governments, social service agencies,
school districts, and libraries. The
FNPRM also proposes and seeks
comment on a pilot program focused on
expanding ACP participation by
beneficiaries of Federal Public Housing
Assistance (FPHA) programs (housing
choice voucher program (Section 8),
project-based rental assistance, and
public housing) by increasing their
awareness of the program and helping
them enroll, to be implemented in
conjunction with agencies that
administer the FPHA programs. In
addition, the FNPRM seeks comment on
rules to implement the enhanced
affordable connectivity benefit of up to
$75.00 per month that the Infrastructure
Act provides to eligible households for
broadband service offered by
participating providers in certain highcost areas, including the definition and
identification of high-cost areas; the
standards for a participating provider’s
showing of particularized economic
hardship, the information it would need
to submit (such as revenues, cost
models, and capital expenditures), and
the process of reviewing such showings.
30. Legal Basis. The proposed actions
are authorized pursuant to the
Infrastructure Act, div. F, tit. V, section
60502(a)(3)(B), 47 U.S.C. 1752(a)(7)(B)
and (b)(10)(C).
31. Description and Estimate of the
Number of Small Entities to Which the
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8389
Proposed Rules Will Apply. The small
entities that might be eligible to apply
for grants under the proposed outreach
grant program include approximately
49,000 small governmental jurisdictions
and 572,000 small non-profit
organizations, based on SBA definitions
and data from the U.S. Census Bureau
and other sources. A small subset of
these entities might be eligible to seek
to participate in the pilot program
focused on public housing beneficiaries.
The proposed rules concerning the
enhanced affordable connectivity
benefit could apply to approximately
3,000 wired broadband internet access
service providers and 1,000 wireless
broadband internet access service
providers, if such providers opted to
participate in the program and seeks to
offer the enhanced benefit in high-cost
areas where they can show
particularized economic hardship.
32. Description of Projected
Reporting, Recordkeeping, and Other
Compliance Requirements. The
Commission anticipates that any grantrelated rules that it adopts, following
the Uniform Guidance that applies to all
Federal agencies (potentially with
additional implementation details), see
79 FR 75872 (Dec. 19, 2014), will not
have a significant economic impact on
a substantial number of small entities.
Providers of wireline or wireless
broadband internet access services,
including small businesses, that
voluntarily seek to qualify for the
enhanced benefit might need to report
and retain certain data about their
operations. The precise nature of the
necessary data cannot be ascertained at
this time and the cost of compliance
cannot be quantified, but any
recordkeeping or reporting requirements
would apply only to those providers
that voluntarily participate and opt to
seek the enhanced benefit, and the
Commission believes that such
providers will likely enjoy benefits that
far exceed the reporting and
recordkeeping costs.
33. Steps Taken To Minimize
Significant Impact on Small Entities,
and Significant Alternatives Considered.
The rules and requirements that the
Commission ultimately adopts to
implement the enhanced benefit in
high-cost areas will be explicitly
designed to accommodate and provide
structure for the particularized
showings of economic hardship that all
applicants, including small entities, will
need to submit. The particularized
nature of each of these showings will
inherently accommodate the particular
circumstances of each applicant,
including any small entity that chooses
to apply for the benefit. The
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8390
Federal Register / Vol. 87, No. 30 / Monday, February 14, 2022 / Proposed Rules
Commission is hopeful that the
comments it receives will further
address matters impacting small entities
and will include information, data and
analyses relating to these matters.
34. Federal Rules Which Duplicate,
Overlap, or Conflict With, the
Commission’s Proposals: None.
Section 904 of Division N, Title IX of
the Consolidated Appropriations Act,
2021, Public Law 116–260, 134 Stat.
1182, as amended by Infrastructure
Investment and Jobs Act, Public Law
117–58, 135 Stat. 429 (2021), this
Further Notice of Proposed Rulemaking
is adopted.
Ordering Clause
35. Accordingly, it is ordered that,
pursuant to the authority contained in
List of Subjects in 47 CFR Part 54
Communications common carriers,
Health facilities, Infants and children,
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internet, Libraries, Puerto Rico,
Reporting and recordkeeping
requirements, Schools,
Telecommunications, Telephone, Virgin
Islands.
Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2022–02908 Filed 2–11–22; 8:45 am]
BILLING CODE 6712–01–P
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Agencies
[Federal Register Volume 87, Number 30 (Monday, February 14, 2022)]
[Proposed Rules]
[Pages 8385-8390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02908]
Federal Register / Vol. 87 , No. 30 / Monday, February 14, 2022 /
Proposed Rules
[[Page 8385]]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[WC Docket No. 21-450; FCC 22-2; FRS 71007]
Affordable Connectivity Program
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission or FCC) seeks comment on proposals for increasing awareness
of and participation in the Affordable Connectivity Program and for an
enhanced affordable connectivity benefit for consumers in certain high-
cost areas.
DATES: Interested parties may file comments on or before March 16, 2022
and reply comments on or before April 15, 2022.
ADDRESSES: All filings should refer to WC Docket No. 21-450. Comments
may be filed by any of the following methods:
[ssquf] Electronic filers: You may file comments electronically by
accessing the Commission's Electronic Comment Filing System (ECFS) at
https://www.fcc.gov/ecfs/filings.
[ssquf] Paper filers: Parties who choose to file by paper must file
an original and one copy of each filing. Filings can be sent by
commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail. Parties that need to submit confidential filings
to the Commission should follow the instructions provided in the
Commission's March 31, 2020 public notice regarding the procedures for
submission of confidential materials. See FCC Provides Further
Instructions Regarding Submission of Confidential Materials, Public
Notice, DA 20-361, 35 FCC Rcd 2973 (OMD, March 31, 2000), https://docs.fcc.gov/public/attachments/DA-20-361A1_Rcd.pdf. All filings must
be addressed to the Commission's Secretary, Office of the Secretary,
Federal Communications Commission.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9050 Junction Drive,
Annapolis Junction, MD 20701.
U.S. Postal Service first-class, Express, and Priority
mail must be addressed to 45 L Street NE, Washington, DC 20554.
Effective March 19, 2020, and until further notice, the
Commission no longer accepts any hand or messenger delivered filings.
This is a temporary measure taken to help protect the health and safety
of individuals, and to mitigate the transmission of COVID-19. See FCC
Announces Closure of FCC Headquarters Open Window and Change in Hand-
Delivery Policy, Public Notice, DA 20-304 (March 19, 2020), https://www.fcc.gov/document/fcc-closes-headquarters-open-window-and-changes-hand-delivery-policy.
People with Disabilities: To request materials in accessible
formats for people with disabilities (Braille, large print, electronic
files, audio format), send an email to [email protected] or call the
Consumer & Governmental Affairs Bureau at 202-418-0530.
Ex Parte Rules. This proceeding shall continue to be treated as a
``permit-but-disclose'' proceeding in accordance with the Commission's
ex parte rules, 47 CFR 1.1200 et seq. Persons making ex parte
presentations must file a copy of any written presentation or a
memorandum summarizing any oral presentation within two business days
after the presentation (unless a different deadline applicable to the
Sunshine period applies). Persons making oral ex parte presentations
are reminded that memoranda summarizing the presentation must (1) list
all persons attending or otherwise participating in the meeting at
which the ex parte presentation was made, and (2) summarize all data
presented and arguments made during the presentation. If the
presentation consists in whole or in part of the presentation of data
or arguments already reflected in the presenter's written comments,
memoranda or other filings in the proceeding, the presenter may provide
citations to such data or arguments in his or her prior comments,
memoranda, or other filings (specifying the relevant page and/or
paragraph numbers where such data or arguments can be found) in lieu of
summarizing them in the memorandum. Documents shown or given to
Commission staff during ex parte meetings are deemed to be written ex
parte presentations and must be filed consistent with 47 CFR 1.1206(b).
Written ex parte presentations and memoranda summarizing oral ex parte
presentations, and all attachments thereto, must be filed through the
Electronic Comment Filing System and must be filed in their native
format (e.g., .doc, .xml, .ppt, searchable .pdf). Participants in this
proceeding should familiarize themselves with the Commission's ex parte
rules.
FOR FURTHER INFORMATION CONTACT: Eric Wu, Attorney Advisor,
Telecommunications Access Policy Division, Wireline Competition Bureau,
at [email protected].
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's
Further Notice of Proposed Rulemaking (FNPRM) in WC Docket No. 21-450,
FCC 22-2, adopted January 14, 2022, and released January 20, 2022. The
full text of this document is available at https://docs.fcc.gov/public/attachments/FCC-22-2A1.pdf. The Report and Order that was adopted
concurrently with this Notice of Proposed Rulemaking is to be published
elsewhere in the Federal Register.
I. Introduction
1. The Commission seeks comment on aspects of the Infrastructure
Investment and Jobs Act (Infrastructure Act) and proposals for
increasing awareness of and participation in the Affordable
Connectivity Program. Specifically the Commission seeks comment on
three sets of issues: (1) Structuring an outreach grant program; (2)
establishing a potential pilot program focused on increasing the
awareness and enrollment of eligible households participating in
Federal Public Housing Assistance Programs in the Affordable
Connectivity Program; and (3) implementing a mechanism for determining
the application of the enhanced benefit for those serving high-cost
areas, as to be determined by the National Telecommunications
Information Administration (NTIA).
A. Outreach Grant Program
2. Grant Program. The Affordable Connectivity Program will rely
heavily on outreach efforts to make eligible households aware of and
informed about the program. As evidenced in the record, certain
segments of eligible households that would benefit from the program
currently have low participation rates. The Infrastructure Act provides
that the Commission may conduct various outreach efforts to encourage
households to enroll in the Affordable Connectivity Program. The notice
commencing this proceeding (referred to as ACP Public Notice) sought
comment on the use of these statutorily authorized outreach tools,
including the authority to provide grants to outreach partners. See
Wireless Competition Bureau Seeks Comment on the Implementation of the
Affordable Connectivity Program, Proposed Rule, 88 FR 74036, 74056-57,
paras. 108-112 (Dec. 29, 2021) (ACP Public Notice). As further
explained in the Report and Order accompanying this Further Notice of
Proposed Rulemaking (FNPRM), the Commission endeavors to use a variety
of outreach tools permitted under the
[[Page 8386]]
statute to reach eligible consumers, including but not limited to
people of color, persons with disabilities, persons who live in rural
or Tribal areas, and others who are or have been historically
underserved, marginalized, or adversely affected by persistent poverty
or inequality. In addition to the Commission's own outreach efforts,
outreach partners also play an important role in disseminating
information about the Affordable Connectivity Program; and grant
funding would help expand these outreach efforts and improve their
effectiveness.
3. Any agency establishing a grant program must do so in strict
compliance with 2 CFR part 200 and other regulations and statutes
applicable to Federal grants. However, while the Commission typically
administers various types of financial assistance programs, it does not
have experience with the unique statutory and regulatory requirements
applicable to Federal grant programs. While the present record evinces
strong support for the establishment of a grant program to promote
awareness of and enrollment in the Affordable Connectivity Program and
identifies several potential uses of outreach funds, the structure and
implementation of such a program requires further exploration due to
the unique statutory and regulatory requirements of the Federal grant
program, which the Commission has not previously administered.
Accordingly, the Commission seeks additional comment and feedback on
structuring an outreach grant program to be managed by the Commission
in support of consumer outreach concerning the Affordable Connectivity
Program, as permitted in the Infrastructure Act.
4. Several commenters support the establishment of an outreach
grant program and offer various recommendations and relevant insights.
For instance, EducationSuperHighway cites the Internal Revenue
Service's (IRS) Volunteer Income Tax Assistance (VITA) Program as a
useful example that the Commission should look to as a model. Are there
other analogous Federal outreach grant programs the Commission should
consider as good models for establishing an outreach grant program
besides those already identified in the record? The Commission
especially encourages interested parties that have experience serving
people of color, persons with disabilities, persons who live in rural
or Tribal areas and others who are or have been historically
underserved, marginalized, or adversely affected by persistent poverty
or inequality, including State, local and Tribal governments and non-
profit community-based organizations, to identify Federal grant
programs that they have found to be helpful in those efforts.
5. The Commission seeks comment on the duration and budget for an
outreach grant funding program and proposes to create a multiple-year
outreach grant program to align with the expectation that the
Affordable Connectivity Program will extend for multiple years. Should
this multi-year program require grantees to submit new applications
periodically? Should the Commission instead consider establishing a
one-time, limited duration outreach grant program? The Commission also
seeks comment on the appropriate funding amount for a grant program.
6. As reflected in the record, commenters support the Commission
using a wide variety of outreach methods to take advantage of the
statutory tools provided in the Infrastructure Act, including the
establishment of an outreach grant program Are there particular types
of outreach activities toward which the Commission should consider
targeting outreach grant funds? Tech Goes Home emphasizes the
importance of ensuring that adequate resources are provided to local
outreach partners to prevent additional financial burdens. How much
funding might grantees need in order to execute effective outreach
efforts? The Commission seeks comment on estimated ranges of outreach
grant awards, taking into consideration the range of costs that may be
associated with outreach efforts, including those identified in the
record, and on potential per-application funding caps. The Commission
also seeks comment on types of support and outreach material the
Commission could provide to help outreach partners. Should the
Commission provide technical assistance to grantees? What would be
valuable technical assistance to grantees and how might technical
assistance evolve over the duration of the grant program
implementation?
7. The Commission next seeks comment on entities that should be
eligible for outreach grant funding. The record reflects support for
relying on non-profit organizations and trusted community organizations
as outreach partners for the Affordable Connectivity Program. AARP
recommends that preference in grant awards should be given to
organizations with established public interest credentials, preferably
non-profit organizations, that have strong ties with key communities,
including multi-cultural communities, and that grant applicants be
required to provide examples of successful past outreach initiatives.
The County of Los Angeles recommends that the Commission consider
awarding grants to local governments, including counties, cities, and
other entities, to further develop hyper-local campaigns, taking into
consideration language needs, digital literacy, social media trends,
relevant linear media, and other local factors. The Commission seeks
comment on the types of entities that should be deemed eligible to
receive potential outreach grant funding. If non-profit organizations
are eligible for funds, should eligibility be limited to non-profit
organizations with tax exempt status under 26 U.S.C. 501(c)(3)? Should
State, local, and Tribal governments, including associated social
service agencies, school districts, libraries, public housing
authorities, State governmental entities that carry out workforce
development programs, or State agencies that are responsible for
administering or supervising adult education and literacy activities in
the State, be eligible to receive grant funds? Are there other types of
organizations that should be eligible?
8. Grantees would be required to adhere to applicable Federal
grantee regulations, including but not limited to taking all necessary
affirmative steps to assure that minority businesses, women's business
enterprises, and labor surplus area firms are used when possible. See 2
CFR 200.321(a). Should use of outreach grant funds be limited to the
named grant recipient, or should funding recipients be permitted to use
subgrantees? Would allowing subgrantees significantly complicate the
administration of an outreach grant program? Do other outreach grant
programs typically permit subgrantees? Is there evidence that the
funding of subgrantees can lead to improved, targeted outreach?
9. The Commission also seeks comment on the application process,
reporting, and other requirements for a potential outreach grant
program. Interested parties should refer to the Uniform Administrative
Requirements, Cost Requirements, and Audit Requirements for Federal
Awards, 2 CFR part 200, as well as the general reporting requirements
in 2 CFR parts 25 and 170. The National Digital Inclusion Alliance
requests that the application process, reporting requirements, and
financial requirements be minimally burdensome, to the extent possible
and recommends that the Commission should ``limit barriers to
participation by small organizations that are trusted in their
communities but have limited capacity
[[Page 8387]]
to participate in large Federal grant programs. The Commission invites
commenters that have received Federal grants to address the grantee
experience, including the grant application process, their use of grant
funds, and best practices with respect to financial and reporting
requirements for grant recipients, particularly for outreach grants.
Should the application and selection process for a potential outreach
grant program be competitive? The Commission seeks comment on how the
Commission could structure an application and evaluation process to
maximize the potential reach and effectiveness of outreach grant
funding.
10. An outreach grant program should maximize the number of
eligible consumers participating in the Affordable Connectivity
Program. The Commission seeks comment on whether awarding funding to
applicants from a range of organization types and sizes (e.g.,
nationwide, regional, local, and smaller organizations) and ensuring
diversity in geographic areas and intended outreach populations will
best serve the underlying goal of increasing enrollment in the program.
To do so effectively, the Commission has a strong interest in selecting
grant applications that would target underserved populations and areas
where the funding will have the most impact on increasing awareness of
and, consequently, enrollment in the Affordable Connectivity Program.
Should special consideration be given to prior experience working with
or conducting outreach to such communities? The Commission seeks
comment on what types of information should be sought from applicants
in order to enable it to make informed decisions about the merits of
the applications, including the reach of applicant organizations and
the populations that they target. What metrics should the Commission
take into account when considering applications and selecting grantees?
11. The Commission seeks comment on establishing goals and metrics
to track the outreach grant program's performance of the goals of
promoting awareness of the Affordable Connectivity Program and
enrollment by eligible households. What metrics could track performance
towards the goal of increasing enrollment? What other measurable goals
and metrics would be appropriate for an outreach funding program? The
Commission also seeks comment on appropriate performance metrics and
milestones for potential grantees. Consistent with the statutory and
regulatory requirements of grant programs, what factors could the
Commission require grantees to track to help measure the real impact of
supported outreach activities? What steps should the Commission take to
aggregate and report the performance data received from the grantees?
What would be appropriate periods of time for reporting (e.g., annually
or semi-annually) and assessing performance (e.g., one year or three
years)?
12. Any agency establishing a grant program must do so in
compliance with 2 CFR, subtitle A, Office of Management and Budget
Guidance for Grants and Agreements, and other regulations and statutes
applicable to Federal grants. Because the Commission has not previously
implemented a grant program, however, it must adopt rules or delegate
authority to the Wireline Competition Bureau and the Office of Managing
Director in order to ensure compliance with the government-wide
requirements applicable to grant programs, including 2 CFR parts 25,
170, 175, 180, 182, and 200. Grant programs also must comply with
requirements established in appropriations legislation. See, e.g.,
Public Law 116-260, 134 Stat. 1182, 1439-1442 (Dec. 27, 2020)
limitations on conference expenses, prohibition of whistleblowing
confidentiality agreements, and restrictions on grants to entities with
unpaid Federal tax liabilities or recent felony convictions). Parties
are encouraged to comment on the Commission's implementation of those
requirements, especially in light of the objectives of the outreach
grant program.
B. Pilot Program Focused on Eligible Households Participating in
Federal Public Housing Assistance Programs
13. Under the supervision of the Department Housing and Urban
Development (HUD), city and State housing authorities administer
Federal Public Housing Assistance (FPHA) programs, such as the housing
choice voucher program (Section 8), project-based rental assistance,
and public housing, that benefit millions of Americans, including
extremely low-income families. Congress and the Commission have long
recognized the importance of connecting these households to Lifeline
communications services and, more recently, to services supported by
the Emergency Broadband Benefit (EBB). The record demonstrates that
large numbers of households in public housing would benefit from the
Affordable Connectivity Program.
14. In working to expand participation in the Affordable
Connectivity Program, the Commission reaffirms the importance of
connecting FPHA beneficiaries that are eligible for the Affordable
Connectivity Program. Most of these households were eligible for the
predecessor EBB Program, but only a small share of them enrolled in the
EBB Program.\1\ Additional steps and innovative approaches are needed
to help ensure that the Affordable Connectivity Program reaches the
lowest-income Americans. To that end, the Commission seeks comment on
launching a pilot program focused on expanding ACP participation by
FPHA beneficiaries, including increasing awareness and assisting with
navigating the enrollment process. Are there other obstacles to ACP
enrollment for FPHA beneficiaries that should be addressed?
15. The Infrastructure Act requires the Commission to collaborate
with relevant Federal agencies and permits the Commission to engage in
outreach efforts to encourage eligible households to enroll in the
Affordable Connectivity Program. To this end, the Commission intends to
use a wide range of available outreach tools to increase awareness of
and participation in the Affordable Connectivity Program. The record
demonstrates that there is particular need for increased outreach to
raise awareness of and participation in the Affordable Connectivity
Program among low-income Americans who participate in the FPHA
programs. Accordingly, the Commission is interested in exploring
innovative ways that the Commission could partner with agencies that
administer the FPHA programs on outreach and enrollment for the
Affordable Connectivity Program. The Commission first seeks assistance
in identifying the specific partner agencies for these efforts. In
particular, the Commission seeks comment on the types of collaborative
cross-agency outreach that would be most effective at reaching this
population. Are there examples of cross-agency marketing and outreach
efforts that the Commission should look to as models for these efforts?
Are there other models the Commission should look to in designing and
implementing these cross-agency efforts? What sources of data should
the Commission consider to identify specific locations where such
cross-agency outreach and marketing efforts are most likely to have a
significant impact?
16. The Commission also seeks comment on ways to make outreach
through the partnerships as effective as possible by identifying and
developing specific outreach and marketing efforts to be conducted
through this pilot. Are there proven methods for communicating well
with FPHA beneficiaries? What should the scope
[[Page 8388]]
and duration of these efforts be? The Commission also seeks comment on
whether and how it can partner with third parties, including non-profit
organizations, to help identify, develop, and carry out these marketing
and outreach efforts. Should the Commission use Affordable Connectivity
Program funding designated for outreach for these efforts?
17. Heightening FPHA beneficiaries' awareness of the Affordable
Connectivity Program alone may not be enough to significantly increase
their participation in the program, and accordingly, the Commission
seeks comment on how to best assist FPHA households in accessing or
navigating the program application process. The Commission expects that
partner agencies have regular opportunities to interact in person with
members of households eligible for the Affordable Connectivity Program.
Should the Commission encourage partner agencies to establish, as part
of this pilot, assistance locations on site where eligible household
members can complete and submit applications for the Affordable
Connectivity Program? What are the benefits of such arrangements? This
effort could impose some additional burdens on the staff and resources
of partner agencies; how can the Commission reduce such burdens? Should
the Commission direct the Universal Service Administrative Company
(USAC) to give those agencies access to the National Verifier (as
defined in 47 CFR 54.1800(q)) in order to assist applicants who are
physically present with completing and submitting applications for the
Affordable Connectivity Program?
18. The Commission proposes to require any representatives that are
granted access to the National Verifier to register in the
Representative Accountability Database, consistent with 47 CFR
54.1807(a), and to indicate that they are providing such assistance
when they help consumers submit applications through the National
Verifier. The Commission seeks comment on this proposal and on
additional ways to help eligible FPHA households enroll. Are there
other models for providing enrollment assistance the Commission should
consider?
19. The Commission seeks comment on how to measure the success of
this pilot in increasing awareness of and enrollment in the Affordable
Connectivity Program by participants in qualifying Federal Public
Housing Assistance Programs.
C. Implementation of the Enhanced Benefit for High-Cost Areas
20. The Infrastructure Act provides for a separate enhanced
affordable connectivity benefit for households that are served by
providers in high-cost areas (as the term high-cost areas is defined in
a separate section of the Infrastructure Act), with such areas to be
identified by the National Telecommunications Information
Administration (NTIA) in consultation with the Commission. 47 U.S.C.
1752(a)(7)(B) (the ``high-cost provision''). Specifically, the
Infrastructure Act establishes that a discount of up to $75 per month
may be applied to a provider's broadband service ``upon a showing that
the applicability of the lower [$30.00 maximum benefit that applies
elsewhere] to the provision of the affordable connectivity benefit by
the provider would cause particularized economic hardship to the
provider such that the provider may not be able to maintain the
operation of part or all of its broadband network.'' 47 U.S.C.
1752(a)(7)(B). The ACP Public Notice sought comment on what the
mechanism should be, and what a provider should be required to submit
to show a ``particularized economic hardship.'' ACP Public Notice,
paras. 71-73. While the present record includes some comments on this
high-cost provision, the establishment of this mechanism requires
further exploration given the interplay with other areas of the
Infrastructure Act. including the definition of high-cost areas in 47
U.S.C. 1702(a)(2).
21. The high-cost areas provision incorporates the definition of
``high-cost area'' in 47 U.S.C. 1702(a)(2)(G)(i), as ``an unserved area
in which the cost of building out broadband service is higher, as
compared with the average cost of building out broadband service in
unserved areas in the United States,'' as determined by NTIA in
consultation with the Commission. In turn, the term unserved area is
defined as ``an area in which not less than 80 percent of broadband-
serviceable locations are unserved locations.'' 47 U.S.C.
1702(a)(2)(G)(ii). See also 47 U.S.C. 1702(a)(2)(H) (defining
``broadband-serviceable location''); 47 U.S.C. 1702(a)(1)(A) (defining
``unserved location''). The Commission seeks comment on how to
interpret and apply the definition of ``high-cost area'' in 47 U.S.C.
1702(a)(2)(G)(i) for purposes of the Affordable Connectivity Program,
including whether such high-cost areas need to be unserved or if they
can include high-cost areas that are served or unserved by an existing
broadband provider. See also 47 U.S.C. 1702(a)(2)(H) (defining
``broadband-serviceable location''); 47 U.S.C. 1702(a)(1)(A) (defining
``unserved location'').
22. The Commission seeks additional comment on the mechanism by
which a provider can show particularized economic hardship. Should the
Commission set clear standards or benchmarks for providers on what
constitutes particularized economic hardship? In their comments on the
ACP Public Notice, both NTCA and Conexon contend that a provider may
face particularized economic hardship when the expected revenue from a
substantial number of eligible households plus the high-cost universal
service support it receives and the $30 monthly affordable connectivity
benefit do not cover the cost of serving the designated high cost area,
including depreciation expense, operating expense, the cost of capital,
and other associated expenses, thus making it uneconomic to justify the
incremental private investment needed to maintain the operation of that
part of its network. Other commenters assert that commercial mobile
carriers should be able to demonstrate that one or more cell sites may
be decommissioned in the absence of a higher ACP benefit, or
alternatively, would not be decommissioned if the higher ACP benefit is
provided. The Commission seeks comment on the best method of
determining whether providers face a particularized economic hardship.
What constitutes a substantial number of eligible households? What
considerations should be used to determine a provider's expected
revenues? When a provider has a depressed take-rate, how can the
Commission determines the cause is because households in that area
cannot afford internet? How can the Commission assess the amount of
revenue that providers need to maintain the operation of networks
serving households in the designated high-cost areas? The Commission
also seeks comment on other standards and tests the Commission should
consider to make this determination.
23. The Commission also invites comment on the specific information
that providers should provide in order to show particularized economic
hardship. What information (such as revenues, cost models, capital
expenditures, etc.) should a provider be required to submit to show
that increased subsidies from the Affordable Connectivity Program are
necessary for the provider to maintain its network? Alternatively, is
there a level of poverty
[[Page 8389]]
that could be applied in all high-cost areas to determine where
carriers face particularized economic hardship? What information is
publicly available for the Commission to consider in making such a
determination? Should the Commission take into consideration other
subsidies and financial benefits used by providers in determining a
provider's request for high-cost treatment in the Affordable
Connectivity Program?
24. The ACP Public Notice sought comment on who should decide
whether the provider met the standard for this enhanced benefit and the
Commission seeks further comment on how this review process should be
implemented. What else should the Commission consider when setting up
the process for making determinations about a household's eligibility
to receive this enhanced subsidy?
25. The Commission, as part of its continuing effort to advance
digital equity for all, including people of color, persons with
disabilities, persons who live in rural or Tribal areas, and others who
are or have been historically underserved, marginalized, or adversely
affected by persistent poverty or inequality, invites comment on any
equity-related considerations and benefits (if any) that may be
associated with the proposals and issues discussed herein. See
Executive Order on Advancing Racial Equity and Support for Underserved
Communities Through the Federal Government, E.O. No. 13985, 86 FR 7009
(Jan. 20, 2021). Specifically, the Commission seeks comment on how
these
26. proposals may promote or inhibit advances in diversity, equity,
inclusion, and accessibility, as well the scope of the Commission's
relevant legal authority.
II. Procedural Matters
Initial Paperwork Reduction Act of 1995 Analysis
27. This document contains proposed new information collection
requirements. The Commission, as part of its continuing effort to
reduce paperwork burdens, invites the general public and the Office of
Management and Budget (OMB) to comment on the information collection
requirements contained in this document, as required by the Paperwork
Reduction Act of 1995, Public Law 104-13, 44 U.S.C. 3501 et seq.). In
addition, pursuant to the Small Business Paperwork Relief Act of 2002,
Public Law 107-198, 44 U.S.C. 3506(c)(4), the Commission seeks specific
comment on how it might further reduce the information collection
burden for small business concerns with fewer than 25 employees.
28. Initial Regulatory Flexibility Analysis. As required by the
Regulatory Flexibility Act of 1980, as amended, 5 U.S.C. 603, the
Commission has prepared an Initial Regulatory Flexibility Analysis
(IRFA) of the possible significant economic impact on a substantial
number of small entities of the policies and rules proposed in the
Further Notice of Proposed Rulemaking (FNPRM). Written public comments
are requested on this IRFA. Comments must be identified as responses to
the IRFA and must be filed by the deadlines for comments on the Further
Notice. The Commission will send a copy of the Further Notice,
including the IRFA, to the Chief Counsel for Advocacy of the Small
Business Administration (SBA).
29. Need for, and Objectives of, the Proposed Rules. The FNPRM
seeks comment on a multi-year grant program to support the efforts of
outreach partners to inform potentially eligible households about the
Affordable Connectivity Program and encourage them to enroll in the
program, including the types of entities that could be eligible to
apply for and receive grants, potentially including non-profit
organizations, State, local, and Tribal governments, social service
agencies, school districts, and libraries. The FNPRM also proposes and
seeks comment on a pilot program focused on expanding ACP participation
by beneficiaries of Federal Public Housing Assistance (FPHA) programs
(housing choice voucher program (Section 8), project-based rental
assistance, and public housing) by increasing their awareness of the
program and helping them enroll, to be implemented in conjunction with
agencies that administer the FPHA programs. In addition, the FNPRM
seeks comment on rules to implement the enhanced affordable
connectivity benefit of up to $75.00 per month that the Infrastructure
Act provides to eligible households for broadband service offered by
participating providers in certain high-cost areas, including the
definition and identification of high-cost areas; the standards for a
participating provider's showing of particularized economic hardship,
the information it would need to submit (such as revenues, cost models,
and capital expenditures), and the process of reviewing such showings.
30. Legal Basis. The proposed actions are authorized pursuant to
the Infrastructure Act, div. F, tit. V, section 60502(a)(3)(B), 47
U.S.C. 1752(a)(7)(B) and (b)(10)(C).
31. Description and Estimate of the Number of Small Entities to
Which the Proposed Rules Will Apply. The small entities that might be
eligible to apply for grants under the proposed outreach grant program
include approximately 49,000 small governmental jurisdictions and
572,000 small non-profit organizations, based on SBA definitions and
data from the U.S. Census Bureau and other sources. A small subset of
these entities might be eligible to seek to participate in the pilot
program focused on public housing beneficiaries. The proposed rules
concerning the enhanced affordable connectivity benefit could apply to
approximately 3,000 wired broadband internet access service providers
and 1,000 wireless broadband internet access service providers, if such
providers opted to participate in the program and seeks to offer the
enhanced benefit in high-cost areas where they can show particularized
economic hardship.
32. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements. The Commission anticipates that any grant-
related rules that it adopts, following the Uniform Guidance that
applies to all Federal agencies (potentially with additional
implementation details), see 79 FR 75872 (Dec. 19, 2014), will not have
a significant economic impact on a substantial number of small
entities. Providers of wireline or wireless broadband internet access
services, including small businesses, that voluntarily seek to qualify
for the enhanced benefit might need to report and retain certain data
about their operations. The precise nature of the necessary data cannot
be ascertained at this time and the cost of compliance cannot be
quantified, but any recordkeeping or reporting requirements would apply
only to those providers that voluntarily participate and opt to seek
the enhanced benefit, and the Commission believes that such providers
will likely enjoy benefits that far exceed the reporting and
recordkeeping costs.
33. Steps Taken To Minimize Significant Impact on Small Entities,
and Significant Alternatives Considered. The rules and requirements
that the Commission ultimately adopts to implement the enhanced benefit
in high-cost areas will be explicitly designed to accommodate and
provide structure for the particularized showings of economic hardship
that all applicants, including small entities, will need to submit. The
particularized nature of each of these showings will inherently
accommodate the particular circumstances of each applicant, including
any small entity that chooses to apply for the benefit. The
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Commission is hopeful that the comments it receives will further
address matters impacting small entities and will include information,
data and analyses relating to these matters.
34. Federal Rules Which Duplicate, Overlap, or Conflict With, the
Commission's Proposals: None.
Ordering Clause
35. Accordingly, it is ordered that, pursuant to the authority
contained in Section 904 of Division N, Title IX of the Consolidated
Appropriations Act, 2021, Public Law 116-260, 134 Stat. 1182, as
amended by Infrastructure Investment and Jobs Act, Public Law 117-58,
135 Stat. 429 (2021), this Further Notice of Proposed Rulemaking is
adopted.
List of Subjects in 47 CFR Part 54
Communications common carriers, Health facilities, Infants and
children, internet, Libraries, Puerto Rico, Reporting and recordkeeping
requirements, Schools, Telecommunications, Telephone, Virgin Islands.
Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2022-02908 Filed 2-11-22; 8:45 am]
BILLING CODE 6712-01-P