Notice of Funding Opportunity for the Rural eConnectivity Program for Fiscal Year 2024, 13035-13042 [2024-03484]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Utilities Service

[Federal Register Volume 89, Number 35 (Wednesday, February 21, 2024)]
[Notices]
[Pages 13035-13042]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03484]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

[Docket Number: RUS-23-Telecom-0022]


Notice of Funding Opportunity for the Rural eConnectivity Program 
for Fiscal Year 2024

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funding opportunity.

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SUMMARY: The Rural Utilities Service (RUS, Agency), a Rural Development 
(RD) agency of the United States Department of Agriculture (USDA), 
announces acceptance of applications under the Rural eConnectivity 
(ReConnect) program for fiscal year (FY) 2024. These loan and grant 
funds will be awarded to qualified applicants to fund the costs of 
construction, improvement, or acquisition of facilities and equipment 
needed to provide broadband service.

DATES: Beginning on March 22, 2024, applications can be submitted 
through the RUS on-line application portal until 11:59 a.m. Eastern on 
April 22, 2024. Late or incomplete applications will not be accepted.

ADDRESSES: Applications must be submitted electronically through the 
RUS Application Intake System located at usda.gov/reconnect. A synopsis 
of this notice of funding opportunity (NOFO) will be made available on 
grants.gov.

FOR FURTHER INFORMATION CONTACT: For general inquiries regarding the 
ReConnect Program, contact Laurel Leverrier, Assistant Administrator, 
Telecommunications Program, Rural Utilities Service, U.S. Department of 
Agriculture (USDA), email: [email protected], telephone: (202) 
720-9554.
    For inquiries regarding eligibility concerns, please contact the 
ReConnect Program Staff at usda.gov/reconnect/contact-us.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Awarding Agency Name: Rural Utilities Service.
    Funding Opportunity Title: Rural eConnectivity (ReConnect) Program.
    Announcement Type: Notice of Funding Opportunity (NOFO).
    Funding Opportunity Number: RUS-REC-2024-1.
    Assistance Listing: 10.752.
    Dates: Beginning on March 22, 2024, applications can be submitted 
through the RUS on-line application portal until 11:59 a.m. Eastern on 
April 22, 2024.
    Rural Development Key Priorities: The Agency encourages applicants 
to consider projects that will advance the following key priorities 
(more details available at rd.usda.gov/priority-points):
     Assisting rural communities recover economically through 
more and better market opportunities and through improved 
infrastructure;
     Ensuring all rural residents have equitable access to 
Rural Development (RD) programs and benefits from RD funded projects; 
and
     Reducing climate pollution and increasing resilience to 
the impacts of

[[Page 13036]]

climate change through economic support to rural communities.

A. Program Description

    1. Purpose of the Program. The ReConnect program provides loans, 
grants, and loan/grant combinations to facilitate broadband deployment 
in rural areas. In facilitating the expansion of broadband services and 
infrastructure, the program will fuel long-term rural economic 
development and opportunities in rural America.
    2. Statutory and Regulatory Authority. The ReConnect program is 
authorized under the Consolidated Appropriations Act, 2018 (Pub. L. 
115-141), which directs the program to be conducted under the Rural 
Electrification Act of 1936 (7 U.S.C. 901 et seq.). The ReConnect 
program is implemented by the ReConnect Regulations at 7 CFR part 1740. 
Applicants should carefully review those rules in conjunction with this 
notice.
    3. Definitions. The definitions applicable to this NOFO are 
published at 7 CFR 1740.2 and as provided below.
    Alaska Native Corporation means an Alaska Native Regional 
Corporation or an Alaska Native Village Corporation pursuant to the 
Alaska Native Claims Settlement Act, 43 U.S.C. 1602(g) and (j).
    Enforceable commitment means a legally enforceable obligation by 
any federal, state, or local agency, utilizing Federal Funds, to 
provide broadband service with speeds of at least 100 megabits per 
second (Mbps) downstream and 20 (Mbps) upstream. Enforceable 
commitments do not negate the Agency's intention to coordinate and 
communicate with federal partners before extending an offer to ensure 
awards made under this round do not duplicate awards made by other 
federal and state partners. USDA will coordinate with the National 
Telecommunications and Information Administration (NTIA), states, and 
grantees to ensure that ReConnect and the Broadband Equity, Access, and 
Deployment (BEAD) Program complement one another. To that end, RUS will 
notify NTIA and the state at least 30 days in advance of any award in 
that state and request that the state notify RUS of an objection based 
on any pending subgrantees. In such cases, if the objection is not 
resolved, it may result in the rejection of the ReConnect application 
to avoid duplication of funding. USDA is committed to work with 
ReConnect applicants and its federal and state partners to ensure 
awards can still be made as part of this coordinated effort, and 
expects that ReConnect funds will largely be directed to those states 
and territories in which there is the greatest need.
    Federal Funds means any federally appropriated funds, and subsidies 
and fees managed by the Federal Communications Commission (FCC), to 
promote universal access and any Federal Broadband Support Program, as 
defined by the ACCESS BROADBAND Act.
    Local government means the administration of a particular town, 
county, or district, with representatives elected by those who live 
there.
    Persistent Poverty County is defined as any county with 20 percent 
or more of its population living in poverty over the past 30 years, as 
measured by the 1990 and 2000 decennial censuses, and the 2007-2011 
American Community Survey 5-year average, or any territory or 
possession of the United States.
    Premises, as defined in the ReConnect Regulation at 7 CFR 
1740.2(a), means households, farms, and businesses.
    Socially Vulnerable Community means a community or area identified 
in the Center for Disease Control's Social Vulnerability Index with a 
score of .75 or higher. For the purposes of this notice, Puerto Rico, 
Guam, American Samoa, the Northern Mariana Islands, Palau, the Marshall 
Islands, the Federated States of Micronesia, the U.S. Virgin Islands, 
and Hawaiian Census Tribal areas are considered to be Socially 
Vulnerable Communities. A Geographic Information System (GIS) layer 
identifying the Socially Vulnerable Communities can be found at 
usda.gov/reconnect.
    Sufficient access to broadband means any rural area in which 
households have wired or licensed terrestrial fixed wireless broadband 
service defined as 25 Mbps downstream and 3 Mbps upstream.
    System requirements. Facilities proposed to be constructed with 
ReConnect award funds must be capable of delivering 100 Mbps 
symmetrical service to every premises at the same time in the Proposed 
Funded Service Area (PFSA).
    Tribal Government means the governing body of an Indian or Alaska 
Native tribe, band, nation, pueblo, village, or community listed 
pursuant to the Federally Recognized Indian Tribe List Act of 1994, 25 
U.S.C. 5130.
    Tribal Land means any area identified by the United States 
Department of Interior as tribal land over which a Tribal Government 
exercises jurisdiction. A GIS layer of most Tribal Lands can be found 
on the RUS mapping tool located at usda.gov/reconnect.
    4. Application of Awards. The Agency will review and evaluate 
applications received in response to this notice based on the program 
regulations at 7 CFR 1740. Grant and combination loan/grant 
applications will be scored and awarded on a competitive basis using 
the criteria in section E.1 of this notice. Awards in the 100 percent 
loan category will be made on a first-come, first-served basis after 
the application window closes. The Agency advises all interested 
parties that each applicant bears the full burden of preparing and 
submitting an application in response to this notice.

B. Federal Award Information

    1. Type of Award. Loan, grant, or loan/grant combination.
    2. Fiscal Year Funds. Funding includes carryover funds from 
previous Fiscal Years and any additional funds received during Fiscal 
Year 2024.
    3. Available Funds.
    a. RUS may at its discretion, increase the total level of funding 
available in this funding round or in any category in this funding 
round from any available source provided the awards meet the 
requirements of the statute which made the funding available to the 
Agency.
    b. For categories that do not receive applications that request the 
full amount of allocated funds, excess funds may be directed to another 
funding category at RUS's discretion, including but not limited to 
eligible applications not funded in FY 2023 (Round 4). Additionally, if 
RUS does not make awards in the full amount allocated to a category, 
RUS may, at its discretion, direct such excess funds to another 
category or round of funding.
    c. 100 Percent Loan. Up to $200,000,000 is available for loans.
    d. 50 Percent Loan/50 Percent Grant Combination. Up to $100,000,000 
is available for loans and up to $100,000,000 is available for grants. 
Loan and grant amounts will always be equal.
    e. 100 Percent Grant. Up to $150,000,000 is available for grants.
    f. 100 Percent Grant for Alaska Native Corporations, Tribal 
Governments, Colonias, Persistent Poverty Areas and Socially Vulnerable 
Communities. Up to $150,000,000 is available for grants.
    4. Funding categories, interest rates and terms. Funding parameters 
are outlined in 7 CFR 1740.3. Funding categories and any required match 
are outlined below.
    a. 100 Percent Loan. Applications will be processed and awarded on 
a rolling basis. In the event two loan applications are received for 
the same PFSA, the application submitted first will be considered 
first. The interest rate for a

[[Page 13037]]

100 percent loan will be set at a fixed 2 percent. Principal and 
interest payments will be deferred for three years. The amortization 
period will be based on the composite economic life of the assets 
funded plus three years.
    b. 50 Percent Loan/50 Percent Grant Combination. The interest rate 
for the 50 percent loan component will be set at the Treasury rate for 
the remaining amortization period at the time of each advance of funds. 
The latest Treasury rates for the ReConnect program can be found under 
U.S. government securities, available at federalreserve.gov/releases/h15/. RUS also provides the latest information on interest rates at 
rd.usda.gov/page/rural-utilities-loan-interest-rates#BaseRates. Loans 
shall bear interest equal to the cost of borrowing to the Department of 
Treasury for obligations of comparable maturity. Principal and interest 
payments will be deferred for three years. The amortization period will 
be based on the composite economic life of the assets funded plus three 
years. Applicants may propose substituting cash for the loan component 
at the time of application and funds must be available in the 
applicant's operating accounts at the closing of the award.
    c. 100 Percent Grant. Applicants must provide a matching 
contribution of cash equal to at least 25 percent of the cost of the 
overall project. The applicant must clearly identify the source of the 
matching funds even if the match is provided from the applicant's 
operating accounts. All matching funds must be deposited into the 
applicant's operating accounts.
    i. RUS has agreed to modify the grant agreement to permit awardees 
to deposit the required matching and other required funds into the 
Pledged Deposit Account (PDA) on a rolling basis as needed.
    ii. If the matching funds are provided by a third party, a 
commitment letter from the third party must be submitted indicating 
that the funds will be available as needed to support the deposit of 
funds into the PDA. If the applicant elects to initiate a loan to 
satisfy the matching requirement, documentation must be included as 
part of the application indicating the terms and conditions for the 
loan and that the grant funded assets cannot be used as collateral for 
the matching funds loan. The loan funds must be transferred into the 
applicant's accounts by the closing of the award.
    iii. The matching contribution can be used only for eligible 
purposes.
    d. 100 Percent Grant for Alaska Native Corporations, Tribal 
Governments, Colonias, Persistent Poverty Areas and Socially Vulnerable 
Communities. For any application submitted under this funding category 
that meet one of the following criteria, no matching funds will be 
required:
    i. Alaska Native Corporations may submit applications to provide 
service on land owned by the corporation.
    ii. Tribal Governments may submit applications to provide service 
on: Tribal Lands as defined in section A(3)(j) of this notice; lands 
subject to restrictions on alienation imposed by the United States on 
Indian Lands; or land that they own, provide services to, or 
administer. Applicants must submit documentation supporting land 
ownership, services, or administration.
    iii. Projects where 75 percent of the applicant's PFSA(s) are 
located in areas recognized as Colonia as of October 1, 1989. Colonias 
are identified using the GIS layer (Colonia Areas) in the RUS mapping 
tool located at reconnect.usda.gov.
    iv. Projects where 75 percent of the applicant's PFSA(s) is located 
in persistent poverty counties.
    v. Projects where 75 percent of the area of an applicant's PFSA(s) 
consists of Socially Vulnerable Communities identified on the GIS layer 
(Socially Vulnerable Communities) included in the RUS mapping tool 
located at reconnect.usda.gov.
    5. Award Amounts. Maximum and minimum funding amounts are provided 
below for each funding category.
    a. Minimum Award Amount. The minimum amount that can be requested 
in any funding category is $100,000.
    b. 100 Percent Loan. The maximum amount that can be requested in an 
application is $50,000,000.
    c. 50 Percent Loan/50 Percent Grant Combination. The maximum amount 
that can be requested in an application is $25,000,000 for the loan and 
$25,000,000 for the grant. Amounts requested for loans and grants must 
always be equal.
    d. 100 Percent Grant. The maximum amount of grant funds that can be 
requested in an application is $25,000,000.
    e. 100 Percent Grant for Alaska Native Corporations, Tribal 
Governments, Colonias, Persistent Poverty Areas and Socially Vulnerable 
Communities. The maximum amount of grant funds that can be requested in 
an application is $25,000,000.
    6. Anticipated Award Date. By the end of the 2024 fiscal year.
    7. Performance Period. The activity financed by a ReConnect award 
must be fully completed within five years of the date the funds are 
released for advance.
    8. Renewal or Supplemental Awards. None.
    9. Type of Assistance Instrument. Direct loan, grant, or 
combination loan/grant.

C. Eligibility Information

    1. Eligible Applicants. Eligible applicants must meet the 
requirements of 7 CFR 1740.9.
    2. Other.
    a. Eligibility requirements for the ReConnect Program not addressed 
in this notice are found at 7 CFR 1740 subpart B.
    b. Eligible service areas. Eligible service areas requirements are 
addressed in 7 CFR 1740.11(a) and below:
    i. For a PFSA to be eligible for funding under this notice, at 
least 90 percent of the households in the PFSA must lack sufficient 
access to broadband as defined in this notice. In addition to 
identifying areas that lack sufficient access to broadband, applicants 
must submit evidence that sufficient access to broadband does not exist 
for 90 percent of the households in the PFSA, identify all existing 
providers in the PFSA, and indicate what level of service is being 
provided. Applicants are required to use the FCC's Broadband Funding 
Map as part of this process. If these areas are found to have 
sufficient service beyond the threshold, the application may be 
rejected.
    ii. Areas that have an Enforceable Commitment at the time of 
publication of this notice are ineligible for ReConnect funds. However, 
if an applicant submits evidence that the entity that received the 
Enforceable Commitment has not deployed broadband service as required 
by the awarding Agency's regulations or award documents, the Agency may 
consider such area eligible for funding after consultation with the 
awarding agency. Areas with Enforceable Commitments are identified in a 
GIS layer located in the RUS mapping tool and on the FCC's National 
Broadband Funding Map.
    iii. Areas with current broadband service from only satellite or 
unlicensed wireless facilities, or which have an enforceable commitment 
associated with only satellite or unlicensed wireless facilities, are 
eligible for funding under this notice.
    c. Awardees that receive both other Federal or State funds and 
ReConnect funding must submit a statement certifying that the funds 
requested from ReConnect have not been and will not be reimbursed by 
another Federal or State award, nor used to reimburse another Federal 
or State award, and that the Awardee will keep separate

[[Page 13038]]

accounts for each source of funding to track the uses of the funding to 
support the certification statement submitted with the ReConnect 
application.
    d. Cybersecurity risk management. It is the policy of the United 
States to strengthen the security and resilience of its critical 
infrastructure against both physical and cyber threats. Applicants 
selected for Federal funding under this notice must demonstrate, prior 
to the signing of the award agreement, a concerted effort to consider 
and address cybersecurity risks consistent with the cybersecurity 
performance goals for critical infrastructure and control systems 
directed by the National Security Presidential Memorandum on Improving 
Cybersecurity for Critical Infrastructure Control Systems, or the 
current draft of these goals, found at cisa.gov/control-systems-goals-and-objectives.
    e. Applicants that are receiving Enhanced Alternative Connect 
America Cost Model (E-ACAM) funding are only eligible for a ReConnect 
100 percent loan but not grant funding. RUS will determine the 
eligibility of applicants that are recipients of other FCC Universal 
Service Fund High-Cost support programs on a case-by-case basis in 
accordance with the applicable High-Cost support program rules.
    f. RUS, at its sole discretion, may require adjusting the PFSA and 
the amount requested in funding if the Agency determines that the 
service area, or a portion of thereof, has sufficient access to 
broadband or an enforceable commitment in place, consistent with 
Section C(2)(b)(iii) of this notice, which was not identified on the 
application mapping tool or on the FCC's National Broadband Funding Map 
at the time the application was submitted or if relevant information 
regarding the service area is provided to RUS by a federal, FCC, state, 
or Tribal entity.

D. Application and Submission Information

    1. Address to Request Application Package. The ReConnect Program 
Guide, copies of necessary forms and samples, the RUS Application 
Intake System User Guide, and the ReConnect program regulation are 
available at usda.gov/reconnect.
    2. Content and Form of Application Submission.
    a. An application must contain all required elements outlined in 7 
CFR 1740.60 and below. The ReConnect Program Guide provides in-depth 
information on the required elements. The Application Intake System 
User Guide provides comprehensive information on how to assemble and 
provide all required elements of a complete application. Carefully 
review this notice, the regulations, and the guides.
    b. Tribal entities proposing broadband service on Tribal Lands may 
self-certify that sufficient access to broadband does not exist on the 
Tribal Lands covered under the PFSA; however, the RUS will still 
perform a service area validation to determine whether sufficient 
access to broadband exists, as required by the ReConnect authorizing 
statute.
    c. For this notice only, Tribal entities applying for 100 percent 
grants that are willing to guarantee that the proposed project will be 
constructed do not have to submit the five-year pro forma financial 
projections or maps of any Non Funded Service Areas (NFSA). However, 
Tribal entities must submit audited financials that demonstrate the 
Tribe's ability to financially guarantee the completion of the project. 
Tribal entities that propose a guarantee will not be required to 
provide an irrevocable letter of credit (ILOC); however an ILOC remains 
an option for Tribal entities that cannot provide the required lien on 
grant assets.
    d. For this notice only, entities applying for a 100 percent grant 
that can demonstrate that their last rating from either Fitch, Standard 
and Poor's or Moody's from the date the application is a AAA bond 
rating do not have to submit the five-year pro forma projections or 
information on NFSAs. Evidence of the bond rating must be included in 
the application. The date the rating is issued must be within one year 
from the date the application is submitted. Please note that audited 
financial statements are still required to be submitted with the 
application and as required for the award.
    e. For this notice only, applicants that can demonstrate a current 
ratio of 2 or higher, a times interest earned ratio (TIER) of 2 or 
higher, a debt service coverage ratio of 2 or higher, and a Net Worth 
of 45% or more for the previous two years from the date the application 
is submitted do not have to submit the 5-year pro forma projections or 
information on NFSAs. Audited financial statements submitted with the 
application must support the necessary current ratio, TIER, debt 
service coverage ratios, and the Net Worth percentage. If an applicant 
has no outstanding debt, then only the current ratio and Net Worth 
requirements apply.
    f. Each grant and loan/grant combination application must address 
the scoring criteria presented in section E(1) of this notice.
    g. Tribal Government Resolution of Consent. Pursuant to 7 CFR 
1740.60(c)(19), a certification from the appropriate Tribal official is 
required if service is being proposed over or on Tribal Lands. The 
appropriate certification is a Tribal Government Resolution of Consent. 
The appropriate Tribal official is the Tribal Council of the Tribal 
Government with jurisdiction over the Tribal Lands at issue. 
Resolutions of Tribal Consent will be required where Tribal lands are 
identified in the ReConnect mapping tool. Resolutions of Tribal Consent 
are not required when a Federally Recognized Tribe is the applicant on 
its own Tribal Land. Any non-Tribal applicant that fails to provide a 
certification to provide service on the Tribal Lands identified in the 
PFSA will not be considered for funding. The intent of the Tribal 
Consent is to ensure upfront that Federally Recognized Tribes being 
served by a non-tribal applicant authorize the application in a 
legally-binding manner AND the construction of broadband infrastructure 
on their lands if an award is made. It is not intended to limit 
participation of Tribes in other Federal broadband programs that 
complement a USDA funded project. However, all environmental, 
permitting and rights of way requirements must still be completed, and 
adhered to, by applicants prior to initiating construction on Tribal 
Lands. Therefore, ongoing communication and collaboration will be 
required to ensure the timely, and mutually agreeable, build out of the 
funded infrastructure. As appropriate, during the application review 
process, USDA staff may contact applicants and Tribes to confirm Tribal 
consent. Applicants and Tribes that have questions regarding this 
process are encouraged to contact Telecom Program staff, USDA Rural 
Development's Tribal Relations Team or USDA's Office of Tribal 
Relations.
    3. System for Award Management and Unique Entity Identifier.
    a. At the time of application, each applicant must have an active 
registration in the System for Award Management (SAM) before submitting 
its application in accordance with 2 CFR part 25. In order to register 
in SAM, entities will be required to obtain a Unique Entity Identifier 
(UEI). Instructions for obtaining the UEI are available at sam.gov/content/entity-registration.
    b. Applicants must maintain an active SAM registration, with 
current, accurate and complete information at all times during which 
they have an active Federal award, or an application under 
consideration by a Federal awarding agency.

[[Page 13039]]

    c. Applicants must ensure they complete the Financial Assistance 
General Certifications and Representations in SAM.
    d. Applicants must provide a valid UEI in its application, unless 
determined exempt under 2 CFR 25.110.
    e. The Agency will not make an award until the applicant has 
complied with all SAM requirements including providing the UEI. If an 
applicant has not fully complied with the requirements by the time the 
Agency is ready to make an award, the Agency may determine that the 
applicant is not qualified to receive a Federal award and use that 
determination as a basis for making a Federal award to another 
applicant.
    4. Submission Dates and Times.
    a. Beginning on March 22, 2024, applications can be submitted 
through the RUS on-line application portal until 11:59 a.m. Eastern on 
April 22, 2024.
    b. If the submission deadline falls on Saturday, Sunday, or a 
federal holiday, the application is due the next business day. Late or 
incomplete applications will not be accepted.
    c. The Agency will not solicit or consider new scoring or 
eligibility information that is submitted after the application 
deadline. However, RUS reserves the right to ask applicants for 
clarifying information and additional verification of assertions in the 
application.
    5. Intergovernmental Review. Executive Order (E.O.) 12372, 
``Intergovernmental Review of Federal Programs,'' applies to this 
program. This E.O. requires that Federal agencies provide opportunities 
for consultation on proposed assistance with State and local 
governments. Many states have established a Single Point of Contact 
(SPOC) to facilitate this consultation. For a list of States that 
maintain a SPOC, please see the White House website: https://www.whitehouse.gov/omb/management/office-federal-financial-management/. 
If your State has a SPOC, you may submit a copy of the application 
directly for review. Any comments obtained through the SPOC must be 
provided to your State Office for consideration as part of your 
application. If your state has not established a SPOC, you may submit 
your application directly to the Agency. Applications from Federally 
recognized Indian Tribes are not subject to this requirement. The 
Agency will ensure compliance with the Executive Order 14112 
``Reforming Federal Funding and Support for Tribal Nations to Better 
Embrace our Trust Responsibility and Promote the Next Era of Tribal 
Self-Determination''.
    6. Funding Requirements.
    a. Eligible cost requirements are outlined in 7 CFR 1740.12. 
Additionally, award funds may be used for the following purposes:
    i. To fund reasonable preapplication expenses in an amount not to 
exceed five percent of the award. The costs associated with satisfying 
the environmental review requirements are also eligible for 
reimbursement as pre-application expenses. Up to three percent of the 
requested award funds can be used for this purpose. Please note that 
any environmental expenses will count as part of the overall five 
percent that is allowable for pre-application expenses. If an applicant 
applied for funding in ReConnect Round Four, preapplication expenses 
may be eligible for reimbursement if these expenses support the 
application in response to this notice, such as engineering design, 
market survey, and subscriber projections. Note, however, that RUS, in 
its sole discretion, reserves the right to accept or reject expenses 
associated with round four. Otherwise, preapplication expenses may only 
be reimbursed if they are incurred after the publication date of this 
notice and are properly documented. Preapplication expenses must be 
included in the first request for award funds and will be funded with 
either grant or loan funds. If the funding category applied for has a 
grant component, then grant funds will be used for this purpose.
    ii. To fund up to three percent of the requested amount for post-
award monitoring expenses that may be required to mitigate the 
environmental effects of the project, as long as such costs are 
capitalized as part of the project. These costs must be specified in 
the Professional Services section of Capital Investment Workbook 
included as part of the application system.
    iii. To fund pole attachment fees associated with the construction 
of the project throughout the five-year construction period. In 
addition, if the pole owner requires that a pole be replaced to support 
the broadband facilities, such costs shall be eligible.
    b. Use of funds for this program shall comply with requirements 
outlined in the Secure and Trusted Communications Networks Act of 2019, 
Public Law 116-124. Listed equipment and services covered by Section 2 
of The Secure and Trusted Communications Networks Act are prohibited. 
See fcc.gov/supplychain/coveredlist for details.
    c. Ineligible cost requirements are outlined in 7 CFR 1740.12. 
Additionally, award funds may not be used for the following purposes:
    i. To fund projects proposing to use unlicensed wireless 
facilities.
    ii. To fund grant costs of a vendor that has both designed and is 
to construct the proposed project. If the project has already been 
designed, then only such costs will be eligible for that vendor and the 
applicant must procure construction from another entity not related to 
the vendor. If an applicant is applying for a 100% loan and wishes to 
use the same vendor for design and construction, supporting 
documentation must be provided that demonstrates that this arrangement 
is the most economical way to get the broadband facilities constructed. 
Note, however, that the agency reserves the right not to accept such 
documentation, and as a result, the applicant must procure construction 
from another entity not related to the vendor. An applicant applying 
for a loan, grant, or a combination loan-grant, can use qualified in-
house staff for both the design and construction of the broadband 
facilities.
    3. Other Submission Requirements.
    a. Applications must be submitted through the Agency's online 
application system located on the ReConnect web page, usda.gov/reconnect. All materials required for completing an application are 
included in the online system. Please note there are a number of 
supporting documents that will need to be uploaded through the 
application system.
    b. Applicants can submit only one application. Applicants may start 
multiple applications in the system but only one can be submitted.
    c. A parent company that has subsidiaries applying for funding 
based on the parent's audited financials can only guarantee one 
application for funding under this notice. If multiple subsidiaries 
apply based on the same parent audited financial statement, at the 
agency's discretion, only one application can be funded.
    d. Applications and supporting documents will not be accepted 
through mail or courier delivery, in-person delivery, fax, or 
electronic mail.
    e. Applicants who believe that non-rural areas within their 
proposed service territory are ``rural in character'' must follow 7 
U.S.C. 1991(a)(13)(D) in order for such areas to be considered 
eligible. Note that such a determination takes time, so applicants are 
encouraged to start this process immediately.
    f. For this notice only, applicants are not required to submit a 
legal opinion as part of the application. Applicants that receive an 
award must still provide the legal opinion as part of closing the 
award.

[[Page 13040]]

    g. Applicants that use alternative household data in the online 
mapping tool must provide supporting documentation to justify the use 
of such data, so that the number of households within the PFSA can be 
verified by USDA.
    h. For corporations and limited liability entities, awards with a 
loan component must be secured by all assets of the Awardee. As a 
result, applicants must submit a certification that their existing 
lender or lienholder on any of its asset has already agreed to sign the 
RUS' standard intercreditor agreement or co-mortgage found on the 
Agency's web page at usda.gov/reconnect.

E. Application Review Information

1. Evaluation Criteria

    a. Application for a 100 percent loan. One hundred (100) percent 
loan applications are not scored or ranked competitively. Applications 
will be processed and awarded on a rolling basis. In the event two loan 
applications are received for the same PFSA, the application submitted 
first will be considered first.
    b. Application for 100 percent grants and loan/grant Combinations. 
One hundred (100) percent grant applications and combination loan/grant 
applications will be scored based on the following criteria:
    i. Rurality of PFSA (25 Points). Points will be awarded for serving 
the least dense rural areas as measured by the population of the PFSA 
per square mile or if the PFSA is located at least one hundred miles 
from a city or town that has a population of greater than 50,000 
inhabitants. If multiple service areas are proposed, the density 
calculation will be made on the combined areas as if they were a single 
area and not the average densities. For population densities of 6 or 
less or if the PFSA is located one hundred miles from a city or town of 
50,000, 25 points will be awarded.
    ii. Economic need of the community (20 Points). Economic need is 
based on the county poverty percentage of the PFSA in the application. 
The percentages must be determined by utilizing the United States 
Census Small Area Income and Poverty Estimates (SAIPE) Program. For 
applications where 75 percent of the PFSA(s) are proposing to serve 
communities with a SAIPE score of 20 percent or higher, 20 points will 
be awarded. Tribal applicants can request alternative scoring 
consideration by submitting more granular Tribal specific census data 
using the census.gov/tribal tool. Proposed funded service areas located 
in geographic areas for which no SAIPE data exist will be determined to 
have an average SAIPE poverty percentage of 30 percent. Such geographic 
areas may include territories of the United States or other locations 
eligible for funding through the ReConnect Program. A GIS layer 
identifying SAIPE areas can be found in the RUS mapping tool located at 
usda.gov/reconnect.
    iii. Affordability (20 Points). Applications can receive 20 points 
if, in their service offerings, they include at least one low-cost 
option offered at speeds that are sufficient for a household with 
multiple users to simultaneously telework and engage in remote 
learning.
    iv. Labor Standards (20 points). It is important that necessary 
investments in broadband infrastructure be carried out in ways that 
produce high-quality infrastructure, avert disruptive and costly 
delays, and promote efficiency. The Agency understands the importance 
of promoting workforce development and encourages recipients to ensure 
that broadband projects use strong labor standards, consistent with 
Tribal laws when projects propose to build infrastructure on Tribal 
Lands. Using these practices in construction projects not only promotes 
effective and efficient delivery of high-quality infrastructure and 
supports the economic recovery through employment opportunities for 
workers but may also help to ensure a reliable supply of skilled labor 
that would minimize disruptions, such as those associated with labor 
disputes or workplace injuries. Applicants should include in their 
applications a description of whether and, if so, how the project will 
incorporate three categories of strong labor standards and protections:
    (1) Strong labor standards: whether workers (including employees of 
contractors and subcontractors) will be paid wages at or above the 
prevailing rate; \1\ whether the project will be covered by a project 
labor agreement; and/or whether the project will use a unionized 
project workforce;
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    \1\ This means that all laborers and mechanics employed by 
contractors and subcontractors in the performance of such project 
are paid wages at rates not less than those prevailing, as 
determined by the U.S. Secretary of Labor in accordance with 
subchapter IV of chapter 31 of title 40, United States Code 
(commonly known as the ``Davis-Bacon Act'') or, for the 
corresponding classes of laborers and mechanics employed on projects 
of a character similar to the contract work in the civil subdivision 
of the State (or the District of Columbia) in which the work is to 
be performed, or by the appropriate state entity pursuant to a 
corollary state prevailing-wage-in-construction law (commonly known 
as ``baby Davis-Bacon Acts'').
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    (2) Demonstrated compliance with and plans for future compliance 
with labor and employment laws: whether the applicant, has any 
violations of tribal, state or federal labor, workplace safety and 
health, or employment laws within the last five years; and/or whether 
the applicant, its contractors, or subcontractors will commit to union 
neutrality; and/or whether the applicant, its contractors, or 
subcontractors will commit to permitting workers to create worker-led 
health and safety committees that management will meet with upon 
reasonable request; and
    (3) A plan to recruit and support an appropriately skilled, trained 
and credentialed workforce (including by contractors and 
subcontractors): whether work will be performed by a directly employed 
workforce or whether the employer has policies and practices in place 
to ensure employees of contractors and subcontractors are qualified; 
how the applicant will ensure use of an appropriately skilled workforce 
(e.g., through Registered Apprenticeships or other joint labor-
management training programs that serve all workers, particularly those 
underrepresented or historically excluded); how the applicant will 
ensure use of an appropriately credentialed workforce (i.e., satisfying 
requirements for appropriate and relevant pre-existing occupational 
training, certification, and licensure); and/or whether a locally-based 
workforce will be used. In addition, the plan should include whether 
there are any partnerships with training providers, unions, or 
community colleges to support the recruitment and training of the 
workforce.
    (4) For applicants that commit to strong labor standards, 
consistent with Tribal Laws when the project proposes to build 
infrastructure on Tribal Lands, 20 points will be awarded. An applicant 
requesting these points must incorporate components from each of the 
three categories above. Projects that propose to build infrastructure 
on Tribal Lands must follow Tribal Laws such as Tribal Employment 
Rights Ordinances to be in compliance with a ReConnect award, 
regardless of receiving points under this standard. The Agency reserves 
the right to adjust award amounts for unforeseen circumstances.
    v. Tribal areas (15 Points). For applicants that are Tribal 
Governments or Tribal Government wholly-owned entities and, at least 75 
percent of the geographical area of the PFSA(s) is on Tribal Lands, 15 
points shall be awarded. For non-tribal governmental entities where at 
least 50 percent of the geographical area of the PFSA(s) is on Tribal 
Lands, 10 points shall be

[[Page 13041]]

awarded. Tribal Lands will be analyzed using the GIS layers (Tribal 
Area (BIA LAR); Tribal Supplemental Area (BIA LAR); and Tribal 
Statistical Area (BIA)) in the RUS mapping tool located at 
reconnect.usda.gov. For applicants that are ANCs or Alaska Native 
Tribal Governments where at least 50 percent of the geographical area 
of the PFSA(s) is on Census Tribal areas in Alaska, 15 points shall be 
awarded. For non-ANC or non-Alaska Native Tribal Government entities 
where at least 50 percent of the geographical area of the PFSA(s) is on 
Census Tribal areas in Alaska, 10 points shall be awarded. Census 
Tribal areas in Alaska will be analyzed using the GIS layer (Alaska 
Census Tribal Areas) layer in the RUS mapping tools located at 
usda.gov/reconnect.
    vi. Local governments, non-profits, and cooperatives (15 points). 
Applications submitted by local governments, non-profits, or 
cooperatives (including for projects involving public-private 
partnerships where the local government, non-profit, or cooperative is 
the applicant) will be awarded 15 points.
    vii. Socially Vulnerable Communities (15 points). For applications 
where at least 75 percent of the PFSA(s) are proposing to serve 
Socially Vulnerable Communities, as defined in this notice, 15 points 
will be awarded.
    viii. Net neutrality (10 points). For applicants that commit to net 
neutrality principles, 10 points will be awarded. A board resolution or 
its equivalent must be submitted in the application committing that the 
applicant's networks shall not (a) block lawful content, applications, 
services, or non-harmful devices, subject to reasonable network 
management; (b) impair or degrade lawful internet traffic on the basis 
of internet content, application, or service, or use of a non-harmful 
device, subject to reasonable network management; and (c) engage in 
paid prioritization, meaning the management of a broadband provider's 
network to directly or indirectly favor some traffic over other 
traffic, including through use of techniques such as traffic shaping, 
prioritization, resource reservation, or other forms of preferential 
traffic management, either (1) in exchange for consideration (monetary 
or otherwise) from a third party, or (2) to benefit an affiliated 
entity.
    ix. Most Unserved Locations Per Square Mile (up to 10 points). In 
order to ensure the Agency prioritizes funding to States with the 
highest concentrations of Unserved Broadband Serviceable Locations 
(UBSLs) (by percentage and area), projects located in states that meet 
these criteria will receive 5 or 10 points. For this notice only, UBSLs 
are Broadband Serviceable Locations contained in the FCC's Broadband 
Serviceable Location Fabric that do not have access to a wired or 
licensed terrestrial fixed wireless broadband service at speeds of at 
least 25 Mbps downstream and 3 Mbps upstream. The states eligible for 
these points were determined by ranking states based upon the following 
criteria:
    (1) The state percentage of UBSLs.
    (2) The average area per UBSL in each state in square miles.
    Projects in which at least 75% of the PFSA is located in states 
ranked 1 through 5 will receive 10 points. Those states are Alaska, 
Idaho, Montana, New Mexico, and Wyoming. Projects in which at least 75% 
of the PFSA is located in states ranked 6 thru 10 will receive 5 
points. Those states are Arkansas, Mississippi, Nevada, South Dakota, 
and West Virginia. For projects in which 75% of the PFSA is located in 
more than one of these states, the application will receive the points 
associated with the highest scoring state.

2. Review Process

    The Agency may contact service providers that submit a Public 
Notice Response (PNR) to validate their submission. 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.

F. Federal Award Administration Information

    1. Federal Award Notices.
    a. General. RUS will notify applicants whose projects are selected 
for awards by sending out an award letter. The Agency reserves the 
right to offer applicants less than the funding requested. After an 
applicant accepts the offer, the Agency will send appropriate award 
documents (agreement and security document, note and mortgage for a 
loan) that contains all the terms and conditions for the award. An 
applicant must execute and return the award documents within the number 
of days specified in the award letter. The standard agreement documents 
are available on the ReConnect website Forms and Resources page: 
usda.gov/reconnect/forms-and-resources.
    b. Advance of funds. For this notice, the advance of funds for a 
50/50 loan/grant combination will be as follows: funds substituted for 
the loan component, if any, will be advanced first; loan funds will be 
advanced second; and grant funds will be advanced third. The advance of 
funds for 100 percent grants with a matching component will require the 
expenditure of a prorated amount of matching funds with respect to the 
amount of the advance request. As an example, a request for ten (10) 
percent of the grant funds will require evidence of the expenditure of 
ten (10) percent of the matching requirement.
    c. Affordable Connectivity Program. To ensure that all Americans 
can access reliable, high-speed internet, this vital service must also 
be affordable. The FCC's Affordable Connectivity Program (ACP) is a 
benefit program that helps households afford the broadband service they 
need for work, school, healthcare, civic engagement, and economic 
opportunity. To make the ACP benefit available to eligible households, 
internet providers also need to participate in the program. Therefore, 
to ensure that rural households can take advantage of the ACP benefit, 
applicants selected for Federal funding under this notice will be 
required to apply to participate in the ACP before award funds are 
disbursed if additional funding is appropriated by Congress to continue 
the program, or any successor program. This requirement will also apply 
to any successor program to the ACP.
    2. Administrative and National Policy Requirements. In addition to 
USDA's standard administrative and policy requirements outlined in the 
standard award agreements, mortgages, and notes for ReConnect awards, 
the following applies to awards under this notice:
    a. Cybersecurity risk management. It is the policy of the United 
States to strengthen the security and resilience of its critical 
infrastructure against both physical and cyber threats. Applicants 
selected for Federal funding under this notice must demonstrate, prior 
to the signing of the award agreement, a concerted effort to consider 
and address cybersecurity risks consistent with the cybersecurity 
performance goals for critical infrastructure and control systems 
directed by the National Security Presidential Memorandum on Improving 
Cybersecurity for Critical Infrastructure Control Systems, or the 
current draft of these goals, found at cisa.gov/control-systems-goals-and-objectives.
    b. Reporting.

[[Page 13042]]

    i. All applications are subject to the requirements contained in 7 
CFR 1740 subpart F.
    ii. If the awardee is a non-Federal entity as defined in 2 CFR 
200.1, the awardee shall provide an audit in accordance with 2 CFR 200 
subpart F.
    iii. If the awardee is a for-profit entity, an electric or 
telecommunications cooperative, or any other entity not covered by the 
definition of non-Federal entity in 2 CFR 200.1, the awardee shall 
provide an independent audit report in accordance with Agency 
guidelines and the award agreement.
    iv. Awardees must report their broadband availability data to the 
FCC's Broadband Data Collection once the awarded project begins to 
offer service.

G. Federal Awarding Agency Contact(s)

    For general inquiries regarding the ReConnect Program, contact 
Laurel Leverrier, Assistant Administrator, Telecommunications Program, 
Rural Utilities Service, U.S. Department of Agriculture (USDA), email: 
[email protected], telephone: (202) 720-9554.

H. Build America, Buy America

    1. Funding to Non-Federal Entities. Funding to Non-Federal 
Entities, defined pursuant to 2 CFR 200.1 as any State, local 
government, Indian tribe, Institution of Higher Education, or nonprofit 
organization, shall be governed by the requirements of Section 70914 of 
the Build America, Buy America Act (BABAA) within Public Law 117-58. 
Section 70914 of BABAA requires all federal agencies, including USDA, 
to ensure that none of the funds provided under this program may be 
used for a project for infrastructure unless the iron and steel, 
manufactured products, and construction materials used in that 
infrastructure are produced in the United States. For more information 
on these requirements, see USDA Implementation of the BABA Act.
    2. Funding to Entities that are not Non-Federal Entities. Funding 
to any entity that is not a Non-Federal entity shall be governed by the 
Agency's Buy American requirement at 7 CFR 1787.

I. Other Information

    1. Paperwork Reduction Act. In accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. chapter 35), the information 
collection requirements associated with the ReConnect Program, as 
covered in this notice, have been approved by the Office of Management 
and Budget (OMB) under OMB Control Number 0572-0152. This funding 
announcement does not create any new information collection 
requirements, nor does it change existing information collection 
requirements.
    2. National Environmental Policy Act. All recipients under this 
notice are subject to the requirements of 7 CFR part 1970.
    3. Civil Rights Act. All awards made under this notice are subject 
to Title VI of the Civil Rights Act of 1964 as required by the USDA (7 
CFR part 15, subpart A and Section 504 of the Rehabilitation Act of 
1973, Title VIII of the Civil Rights Act of 1968, Title IX, Executive 
Order 13166 (Limited English Proficiency), Executive Order 11246, and 
the Equal Credit Opportunity Act of 1974.
    4. Nondiscrimination Statement. In accordance with Federal civil 
rights laws and U.S. Department of Agriculture (USDA) civil rights 
regulations and policies, the USDA, its Mission Areas, agencies, staff 
offices, employees, and institutions participating in or administering 
USDA programs are prohibited from discriminating based on race, color, 
national origin, religion, sex, gender identity (including gender 
expression), sexual orientation, disability, age, marital status, 
family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident. Program information may be made 
available in languages other than English. Persons with disabilities 
who require alternative means of communication to obtain program 
information (e.g., Braille, large print, audiotape, American Sign 
Language) should contact the responsible Mission Area, agency, or staff 
office or the 711 Relay Service. To file a program discrimination 
complaint, a complainant should complete a Form AD-3027, USDA Program 
Discrimination Complaint Form, which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf, from any USDA 
office, by calling (866) 632-9992, or by writing a letter addressed to 
USDA. The letter must contain the complainant's name, address, 
telephone number, and a written description of the alleged 
discriminatory action in sufficient detail to inform the Assistant 
Secretary for Civil Rights (ASCR) about the nature and date of an 
alleged civil rights violation. The completed AD-3027 form or letter 
must be submitted to USDA by:
    a. Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    b. Fax: (833) 256-1665 or (202) 690-7442; or
    c. Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Andrew Berke,
Administrator, Rural Utilities Service, USDA Rural Development.
[FR Doc. 2024-03484 Filed 2-20-24; 8:45 am]
BILLING CODE 3410-15-P