Rule2021-19319
Implementation of Telecommunications Provisions of the Agricultural Improvement Act of 2018
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 10, 2021
Effective
September 10, 2021
Issuing agencies
Agriculture DepartmentRural Utilities Service
Abstract
The Rural Utilities Service (RUS) is issuing a final rule with comment to implement statutory provisions of the Agriculture Improvement Act of 2018 (2018 Farm Bill). The intent of this rule is to modify existing regulations to include the statutory revisions authorized by the 2018 Farm Bill.
Full Text
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<title>Federal Register, Volume 86 Issue 173 (Friday, September 10, 2021)</title>
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[Federal Register Volume 86, Number 173 (Friday, September 10, 2021)]
[Rules and Regulations]
[Pages 50604-50610]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-19319]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Parts 1735 and 1737
[RUS-20-TELECOM-0044]
RIN 0572-AC48
Implementation of Telecommunications Provisions of the
Agricultural Improvement Act of 2018
AGENCY: Rural Utilities Service, Department of Agriculture (USDA).
ACTION: Final rule; request for comments.
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SUMMARY: The Rural Utilities Service (RUS) is issuing a final rule with
comment to implement statutory provisions of the Agriculture
Improvement Act of 2018 (2018 Farm Bill). The intent of this rule is to
modify existing regulations to include the statutory revisions
authorized by the 2018 Farm Bill.
DATES:
Effective date: This final rule with comment is effective September
10, 2021.
Comment date: Comments due on or before November 9, 2021.
ADDRESSES: You may submit comments, identified by docket number RUS-20-
TELECOM-0044 and Regulatory Information Number (RIN) number 0572-AC48
through <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Instructions: All submissions received must include the Agency name
and docket number or RIN for this rulemaking. All comments received
will be posted without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>, including
any personal information provided.
Docket: For access to the docket to read background documents or
comments received, go to <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: For general inquiries, contact Laurel
Leverrier, Assistant Administrator Telecommunications Program, Rural
Utilities Service, U.S. Department of Agriculture (USDA), email:
<a href="/cdn-cgi/l/email-protection#4824293d3a2d2466242d3e2d3a3a212d3a083d3b2c29662f273e"><span class="__cf_email__" data-cfemail="cba7aabeb9aea7e5a7aebdaeb9b9a2aeb98bbeb8afaae5aca4bd">[email protected]</span></a>, telephone: (202) 720-9556.
SUPPLEMENTARY INFORMATION:
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches to maximize
net benefits (including potential economic, environmental, public
health, and safety advantages; distributive impacts; and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, of reducing costs, of harmonizing rules, and of
promoting flexibility. This rule has been determined to be significant
and was reviewed by the Office of Management and Budget (OMB) under
Executive Order 12866. In accordance with Executive Order 12866, the
Agency conducted a Regulatory Impact Analysis, outlining the costs and
benefits of implementing this program in rural America. The complete
analysis is available in Docket No. RUS-20-TELECOM-0044. The following
is a summary discussion of the Analysis:
This final rule does not directly address any specific market
failure. The Agency is publishing this rulemaking action to codify the
mandatory changes
[[Page 50605]]
outlined in the 2018 Farm Bill. Many of the benefits provided by these
mandatory changes include:
(1) Providing new information regarding grant eligibility in
conjunction with the Farm Bill Broadband Program covered under 7 CFR
part 1738;
(2) General language clarifications and duplication removals;
(3) Providing information for, or the removals of, specific service
requirements;
(4) Changes in program financing thresholds to conform to the 2018
Farm Bill requirements;
(5) Additional application information to ensure criteria are met;
(6) New reporting requirements that ensure similar data is reported
and collected across multiple USDA broadband programs to improve
oversight and integrity; and
(7) Changes in language to ensure that programs can meet funding
deadlines while still maintaining the integrity of the environmental
review process.
These changes are expected to result in great transparency from the
Agency and increased financing opportunities for providers of rural
telecommunications services. Telecommunications services are having a
profound effect on the Nation's economy, its strength and its growth by
reducing the barriers of distance, remoteness, and time.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs has designated this
rule as not being a major rule, as defined by 5 U.S.C. 804(2).
Executive Order 12988, Civil Justice Reform
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. The Agency has determined that this rule meets the
applicable standards provided in section 3 of the Executive order. In
addition, all state and local laws and regulations that conflict with
this rule will be preempted. No retroactive effect will be given to
this rule.
Executive Order 12372, Intergovernmental Consultation
This final rule has been excluded from the scope of Executive Order
12372 (Intergovernmental Consultation), which may require a
consultation with state and local officials. See ``Department Programs
and Activities Excluded from Executive Order 12372,'' 50 FR 47034 (Nov.
14, 1985).
Administrative Procedures Act
The Administrative Procedures Act (APA) exempts from notice and
comment requirements rules ``relating to agency management or personnel
or to public property, loans, grants, benefits, or contracts'' (5
U.S.C.553(a)(2)). The Rural Telecommunications Program provides loans
to borrowers at interest rates and on terms that are more favorable
than those generally available from the private sector. RUS borrowers,
as a result of obtaining Federal financing, receive economic benefits
under the loan program. Based on this, any changes to the program fall
under this exemption.
Regulatory Flexibility Act Certification
The Regulatory Flexibility Act (5 U.S.C. 601-602) (RFA) generally
requires an agency to prepare a regulatory flexibility analysis of any
rule subject to notice and comment rulemaking requirements under the
APA or any other statute. As outlined above, this rule is not subject
to the APA under 5 U.S.C. 553(a)(2).
Environmental Impact Statement
This final rule has been reviewed in accordance with 7 CFR part
1970 (``Environmental Policies and Procedures''). The Agency has
determined that (i) this action meets the criteria established in 7 CFR
1970.53(f); (2) no extraordinary circumstances exist; and (iii) the
action is not ``connected'' to other actions with potentially
significant impacts, is not considered a ``cumulative action'' and is
not precluded by 40 CFR 1506.1. Therefore, the Agency has determined
that the action does not have a significant effect on the human
environment, and therefore neither an Environmental Assessment nor an
Environmental Impact Statement is required.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance (CFDA) number assigned
to the Telecommunications Infrastructure Loans & Guarantees Program is
10.851. The Catalog is available on the internet at <a href="https://beta.sam.gov/">https://beta.sam.gov/</a>. The Government Publishing Office (GPO) prints and sells
the CFDA to interested buyers. For information about purchasing the
Catalog of Federal Domestic Assistance from GPO, call the
Superintendent of Documents at (202) 512-1800 or toll free at (866)
512-1800, or access GPO's online bookstore at <a href="https://bookstore.gpo.gov">https://bookstore.gpo.gov</a>.
Unfunded Mandates
This rule contains no federal mandates (under the regulatory
provisions of Title II of the Unfunded Mandates Reform Act of 1995) for
state, local, and tribal governments or the private sector. Therefore,
this rule is not subject to the requirements of sections 202 and 205 of
the Unfunded Mandates Reform Act of 1995.
E-Government Act Compliance
Rural Development is committed to complying with the E-Government
Act of 2002, which requires Government agencies in general to provide
the public the option of submitting information or transacting business
electronically to the maximum extent possible.
Executive Order 13132, Federalism
The policies contained in this rule do not have any substantial
direct effect on states, on the relationship between the National
Government and the states, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on state and local
governments. Therefore, consultation with the states is not required.
Executive Order 13175, Consultation and Coordination With Indian Tribal
Governments
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' Executive Order 13175 requires Federal agencies
to consult and coordinate with Tribes on a government-to-government
basis on policies that have Tribal implications, including regulations,
legislative comments or proposed legislation, and other policy
statements or actions that have substantial direct effects on one or
more Indian Tribes, on the relationship between the Federal Government
and Indian Tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian Tribes.
Broadband programs in general have a significant impact on Tribes.
These specific statutory provisions, however, were predominantly
mandatory, leaving very few areas for discretion for Tribal
consultation and guidance. The primary areas of discretion were: (1)
Removing guarantee fee language, (2) correcting a citation, (3)
removing obsolete year 2000 compliance information and (4) removing a
duplicative refinancing section.
USDA has held a series of Tribal consultations conducted by USDA
Rural Development and USDA Office of Tribal
[[Page 50606]]
Relations regarding tribal broadband. The consultations included
consultations on (1) tribal broadband specifically (both at the
national level and numerous regional and state level tribal
consultations), (2) the USDA ReConnect broadband program, (3)
participation with Department of Commerce NTIA on the Tribal Broadband
Connectivity Program, and on (4) Executive Order 13985, ``Advancing
Racial Equity and Support for Underserved Communities Through the
Federal Government'' (1/20/21). Through these consultations, the USDA
compiled the following Tribal government requested ``Tribal Broadband
Principles'' which were considered and used where applicable in
drafting this regulation:
<bullet> Require Tribal resolution. Require any new or legacy
applicant for USDA funds proposing to serve Tribal lands to have a
Tribal resolution of support to qualify for eligibility.
<bullet> Increase flexibility. Read any ambiguous statutory
requirements and limitations as broadly as possible and in favor of
Tribes in light of our trust obligations.
<bullet> Narrow duplication definition. Read ``duplication''
limitations as broadly and as flexibly as possible when working with
Tribal nations to ensure their eligibility for USDA programs to serve
their own lands.
<bullet> All self-certification. Tribal nations must be the
certifiers of whether they are being served/are underserved or other
similar requirements.
<bullet> Enforce compliance with Tribal laws. Include a requirement
of compliance with Tribal laws and regulations in the sections of loan
and grant agreements that require compliance with state and local laws.
Enforce the terms of Federal loan and grant agreements which require
compliance with local (including tribal) laws and regulatory bodies.
Civil Rights Impact Analysis
The Rural Development's Civil Rights Office reviewed this rule in
accordance with USDA Regulation 4300-4, ``Civil Rights Impact
Analysis,'' to identify any major civil rights impacts the rule might
have on program participants on the basis of age, race, color, national
origin, sex, or disability. The Rural Development's Civil Rights Office
worked with the RUS program offices to compile program descriptions,
data, and outreach activities strategies for the subject program. The
Rural Development's Civil Rights Office assessed civil rights
implications and impacts of eligibility criteria, methods of
administration, and other requirements associated with the final rule
including strategies to eliminate, alleviate, or mitigate (where
applicable) civil rights impacts identified in the Civil Rights Impact
Analysis. The Rural Development's Civil Rights Office agrees to monitor
the implementation of all civil rights strategies that were instituted
in connection with this final rule, evaluate their effectiveness, and
take follow-up action where civil rights impacts may ensue.
Information Collection and Recordkeeping Requirements
The Information Collection and Recordkeeping requirements contained
in this rule have been approved under OMB Control Number 0572-0079 and
submitted for approval under OMB Control Number 0572-0154.
Background
Rural Development is a mission area within the USDA comprising the
Rural Utilities Service, Rural Housing Service, and Rural Business/
Cooperative Service. Rural Development's mission is to increase
economic opportunity and improve the quality of life for all rural
Americans. Rural Development meets its mission by providing loans, loan
guarantees, grants, and technical assistance through more than 40
programs aimed at creating and improving housing, business, and
infrastructure throughout rural America.
The Agricultural Improvement Act of 2018 (2018 Farm Bill) made
mandatory changes to the Rural Telephone Loan Program administered by
the Telecommunications Program of the Rural Utilities Service.
These modifications to the program's regulations will allow RUS to
fully implement the requirements of the 2018 Farm Bill. RUS is also
taking the opportunity to make minor changes to the program regulations
that will update or correct existing regulatory citations, data speeds,
and other program provisions to bring them in line with the statutory
changes required by the 2018 Farm Bill.
Changes to 7 CFR part 1735 ``General Policies, Types of Loans, Loan
Requirements--Telecommunications Program'' include:
Adding paragraph (d) to Sec. 1735.1. The addition of paragraph (d)
provides notice to applicants that they may be eligible to receive
grant assistance through Title VI which is governed by 7 CFR part 1738.
The Agency determined this was the most effective way to provide this
information.
The addition of a definition of Retail Broadband Service to Sec.
1735.2. The definition provides information to the public on what the
Agency considers ``retail broadband service'' for the purposes of this
part.
Clarifying, at Sec. 1735.10(a)(2)(ii), that multiuse networks that
provide critical transportation-related services are considered
integrated interoperable emergency communications and therefore are an
eligible loan purpose.
Removing the requirement for a certificate of convenience and
necessity from Sec. 1735.12. While necessary when the program was
implemented, the prevalence of services at this time and changes to
state regulatory bodies has rendered the certificate meaningless for
Agency purposes. The Agency also expanded the authority of the RUS
Administrator, at Sec. 1735.12(a), to determine non-duplication of
services. Previously the Administrator only made that determination for
states in which there was no regulatory body. This change will reduce
the burden on applicants and aid in streamlining the application
process. Clarification regarding non-duplication verification for
existing borrowers is provided by the Agency, at Sec. 1735.12(b).
Modifying the criteria at Sec. 1735.12(c) to remove specific
transmission and reception rates and require coverage as described in
Sec. 1735.11 for local area exchanges. These changes remove outdated
terminology, create a single requirement which reduces confusion and
creates consistency for all applicants.
Changing the thresholds, at Sec. 1735.21, regarding refinancing to
conform to 2018 Farm Bill requirements. Prior to the 2018 Farm Bill,
the Agency was only able to refinance non-RUS loans as long as no more
than 40 percent of the new loan was used for refinancing. The 2018 Farm
Bill removed the 40 percent cap and extended the ability to refinance
100 percent of non-RUS and RUS debt. Refinancing limits will be
published in the funding opportunity announcement opening an
application window and based on amounts that are authorized for a given
fiscal year. However, the Agency is considering limiting refinancing of
non-RUS loans to 50 percent of the total loan amount while allowing 100
percent refinancing of existing RUS loans. Additional information was
added to this section to provide information on loans eligible for
refinancing as well as maximum amortizations.
Modifications to Sec. 1735.22(f), (g), and (i) to remove outdated
references to year 2000 compliant systems and correct an incorrect
reference that was carried forward from a previous version of the
regulation, respectively.
[[Page 50607]]
The addition of public notice filing and response requirements at
Sec. 1735.23. The notice will allow existing service providers to
respond to pending applications before the agency that propose to
provide broadband service outside of their territory that receives
federal universal support.
New reporting requirements at Sec. 1735.24. These new requirements
ensure similar data is reported and collected across multiple USDA
broadband programs to improve oversight and integrity.
Removal of refinancing language at Sec. 1735.52 that is now
duplicative due to the changes at Sec. 1735.21.
Changes to 7 CFR part 1737, ``Pre-Loan Policies and Procedures
Common to Insured and Guaranteed Telecommunications Loans'' include
multiple changes to Sec. 1737.22 to include the removal of the
requirement for a certified copy of a certificate of convenience and
necessity as that certificate is no longer required due to changes
implemented by the 2018 Farm Bill.
Additional application information was added to Sec. 1737.22(c)
and (e) for loans involving refinancing. This additional information is
necessary to ensure that the loans to be refinanced meet the criteria
set forth in this regulation and the funding opportunity announcement
that opens a funding window.
Changes at Sec. 1737.90 to include language allowing obligation
but not disbursal of funds, under certain circumstances, prior to the
completion of historical or other types of review identified during the
environmental review. This change allows for obligation of funds so
awardees know that funds will be available while still maintaining the
integrity of the environmental review process.
Amendments and Comparison to the Current Regulation
The Telecommunications Program and the organizations that apply for
its funding face significant challenges putting in place projects that
can deliver and maintain robust, affordable telecommunication services
to rural consumers. These challenges include rapidly evolving
technology, competition, and the ever-present higher costs of serving
rural areas. The final rule will implement statutory changes required
by the 2018 Farm Bill, as well as minor conforming changes that will
update and/or correct existing regulatory citations, data speeds and
other program provisions to ensure they are in line with the required
statutory changes. The changes are expected to create greater program
transparency and ensure program rules are clear and consistent.
Table 1 below shows which sections of the regulations were changed
due to the statutory authority contained in the 2018 Farm Bill and
those changes where RUS is exercising discretion to improve program
clarity. If the sections of the regulations are not specifically stated
within the table, no changes were made to those sections.
Table 1--Statutory and Discretionary Changes to the Regulations
----------------------------------------------------------------------------------------------------------------
2018 Farm Bill
Section of regulation Revision requirement Discretionary
----------------------------------------------------------------------------------------------------------------
7 CFR Part 1735--General Policies, Types of Loans, Loan Requirements--Telecommunications Program
----------------------------------------------------------------------------------------------------------------
Sec. 1735.1 General Statement........... Paragraph that entities applying X ...............
under this part could be eligible
for grant funds under 7 CFR
1738.101 added.
Sec. 1735.2 Definitions................. Retail Broadband service X ...............
definition added.
Sec. 1735.10 General.................... Updated terminology for 911 X ...............
service added.
Language on guaranteed fees ............... X
removed.
Sec. 1735.12 Nonduplication............. Certificate of Convenience and X ...............
Necessity requirement was removed.
Outdated broadband speeds were X ...............
removed.
Sec. 1735.21 Refinancing Loans.......... Updated with new RUS refinancing X ...............
authorities.
Sec. 1735.22 Loan Security.............. ``Year 2000'' system compliance ............... X
language was removed.
Paragraph citation errors ............... X
corrected.
Sec. 1735.23 Public Notice.............. New public notice requirements and X ...............
timeframe added.
Sec. 1735.24 Additional Reporting New reporting requirements and X ...............
Requirements. policies added.
Sec. 1735.51 Required Findings.......... Certificate of Convenience and X ...............
Necessity requirement removed.
Sec. 1735.52 Findings Required for Duplicative refinancing language ............... X
Particular Loan Purposes. removed.
----------------------------------------------------------------------------------------------------------------
7 CFR Part 1737--Pre-Loan Policies and Procedures Common to Insured and Guaranteed Telecommunications Loans
----------------------------------------------------------------------------------------------------------------
Sec. 1737.22 Supplemental Information... Certificate of Convenience and X ...............
Necessity requirement removed.
Refinancing requirements updated.. X ...............
Public Notice requirements added.. X ...............
Sec. 1737.90 Loan Approval Requirements. Language added to allow X ...............
obligations prior to
environmental reviews being
complete if related to specific
broadband equipment.
----------------------------------------------------------------------------------------------------------------
List of Subjects
7 CFR Part 1735
Loan programs-communications, Reporting and recordkeeping
requirements, Rural areas, Telephone.
7 CFR Part 1737
Loan programs-communications, Reporting and recordkeeping
requirements, Rural areas, Telephone.
For reasons set forth in the preamble, 7 CFR parts 1735 and 1737
are amended as follows:
PART 1735--GENERAL POLICIES, TYPES OF LOANS, LOAN REQUIREMENTS--
TELECOMMUNICATIONS PROGRAM
0
1. The authority citation for part 1735 continues to read as follows:
[[Page 50608]]
Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.
Subpart A--General
0
2. Amend Sec. 1735.1 by adding paragraph (d) to read as follows:
Sec. 1735.1 General statement.
* * * * *
(d) Entities applying for a loan under this part may be eligible to
receive a grant under 7 CFR 1738.101, for a portion of the project
providing retail broadband service.
0
3. Amend Sec. 1735.2 by adding, in alphabetical order, the definition
of ``Retail broadband service'' to read as follows:
Sec. 1735.2 Definitions.
* * * * *
Retail broadband service means any technology identified by the
Administrator as having the capacity to provide transmission facilities
that enable the subscriber to receive a minimum level of service equal
to at least a downstream transmission capacity of 25 megabits per
second (Mbps) and an upstream transmission capacity of 3 Mbps. The
agency may change the minimum transmission capacity by way of notice in
the Federal Register. The minimum transmission capacity may be higher
than 25 Mbps downstream and 3 Mbps upstream but cannot be lower.
* * * * *
Subpart B--Loan Purposes and Basic Policies
0
4. Amend Sec. 1735.10 by:
0
a. Revising paragraph (a)(2)(ii);
0
b. Removing paragraph (e); and
0
c. Redesignating paragraphs (f) and (g) as paragraphs (e) and (f),
respectively.
The revision reads as follows:
Sec. 1735.10 General.
(a) * * *
(2) * * *
(ii) Integrated interoperable emergency communications, including
multiuse networks that provide critical transportation-related
information services in addition to emergency communications services;
* * * * *
0
5. Amend Sec. 1735.12 by:
0
a. Revising paragraph (a) and (b);
0
b. Removing paragraphs (c)(2) and (3);
0
c. Redesignating paragraphs (c)(4) through (12) as paragraphs (c)(2)
through (10), respectively; and
0
d. Revising newly redesignated paragraph (c)(5).
The revisions read as follows:
Sec. 1735.12 Nonduplication.
(a) A loan will not be made unless the Administrator determines
that no duplication of lines, facilities, or systems already providing
reasonably adequate services shall result from such a loan.
(b) Existing borrowers that apply to upgrade existing facilities in
their existing service area are exempt from the non-duplication
requirement in paragraph (a) of this section.
(c) * * *
(5) The LEC's network is capable of providing retail broadband
service as defined in Sec. 1735.2 to any subscriber location.
* * * * *
0
6. Revise Sec. 1735.21 to read as follows:
Sec. 1735.21 Refinancing loans.
(a) Any new direct or guaranteed loan authority provided under the
RE Act may be used to refinance an outstanding obligation of the
applicant on another loan made under Titles II and VI of the RE Act, or
on a non-RUS loan if that loan would have been for eligible
telecommunications purposes under the RE Act provided that:
(1) The applicant is current with its payments on the RUS loan(s)
to be refinanced; and
(2) The amortization period for that portion of the loan request
that will be needed for refinancing will not exceed the remaining
amortization period for the loan(s) to be refinanced. If multiple notes
are being refinanced, an average remaining amortization period will be
calculated based on the weighted dollar average of the notes being
refinanced.
(b) The amount that can be refinanced will be included in the
funding opportunity announcement that will open a funding window based
on the funds authorized for any given fiscal year.
0
7. Amend Sec. 1735.22 by revising paragraphs (f), (g), and (i) to read
as follows:
Sec. 1735.22 Loan security.
* * * * *
(f) RUS makes loans only if the borrower's entire system, including
the facilities to be constructed with the proceeds of the loan, is
economically feasible, as determined by RUS.
(g) For purposes of determining compliance with TIER requirements,
unless a borrower whose existing mortgage contains TIER maintenance
requirements notifies RUS in writing differently, RUS will apply the
requirements described in paragraph (h) of this section to the borrower
regardless of the provisions of the borrower's existing mortgage.
* * * * *
(i) Nothing in this section shall affect any rights of supplemental
lenders under the RUS mortgage, or other creditors of the borrower, to
limit a borrower's TIER requirement to a level above that established
in paragraph (h) of this section.
* * * * *
0
8. Add Sec. 1735.23 to read as follows:
Sec. 1735.23 Public notice.
(a) Applications for funding request in which the applicant will
provide retail broadband service, the Agency's mapping tool will
include the following information from each application, and will be
displayed for the public:
(1) The identity of the applicant;
(2) A description of the project that can deliver retail broadband
service;
(3) A map of the areas to be served, the proposed funded service
area (PFSA), including identification of the associated census blocks;
(4) The amount and type of funding requested;
(5) The status of the application; and
(6) The estimated number and proportion of households and
businesses in the proposed funded service area without fixed retail
broadband service, whether terrestrial or wireless, excluding mobile
and satellite service.
(b) For funding requests outside an area where the applicant
receives Federal universal service support, the public notice filing
referenced under paragraph (a) of this section will accept public
notice responses from existing service providers with respect to retail
broadband service already being provided in the PFSA for 45 calendar
days on the Agency's web page. Existing service providers are requested
to submit the following information through the Agency's mapping tool:
(1) The number of residential and business customers within the
PFSA currently purchasing broadband at the minimum threshold, the rates
of data transmission being offered, and the cost of each level of
broadband service charged by the existing service provider;
(2) The number of residential and business customers within the
applicant's service area receiving voice and video services and the
associated rates for these other services;
(3) A map showing where the existing service provider's services
coincide with the applicant's service area using the Agency's mapping
tool; and
(4) Test results for the service area in question for a minimum of
at least the
[[Page 50609]]
prior three months demonstrating that the asserted level of broadband
is being provided. The test results shall be for different times of the
day.
(c) The Agency may contact service providers that respond under
paragraph (b) of this section to validate their submission, and so
responding service providers should be prepared to:
(1) Provide additional information supporting that the area in
question has sufficient access to broadband service;
(2) Have a technician on site during the field validation by RUS
staff;
(3) Run on site tests with RUS personnel being present, if
requested; and
(4) Provide copies of any test results that have been conducted in
the last six months and validate the information submitted in the
public notice response months.
(d) If no broadband service provider submits information pursuant
to a pending application or if the existing provider does not provide
the information requested under paragraphs (b) and (c) of this section,
RUS will consider the extent of broadband service using any other data
available through reasonable efforts, including utilizing the National
Telecommunications and Information Administration's National Broadband
Availability Map and the Federal Communications Commission broadband
availability map. That may include the agency conducting field
validations so as to locate facilities in the application service area
and determine, to the extent possible, if those facilities can provide
the minimum threshold of broadband. Notwithstanding, conclusive
evidence as to the existence of the level of broadband will be taken
only through the public notice process. As a result, the Agency highly
recommends that existing service providers in a PFSA submit public
notice response to ensure that their service is considered in the
determination of eligibility on an application.
(e) The Agency will notify respondents who are existing service
providers whether their public notice response was accepted or not and
allow for an opportunity to respond.
(f) The information submitted by an existing service provider under
paragraphs (b) and (c) of this section will be treated as proprietary
and confidential and not subject to disclosure, pursuant to 7 U.S.C.
950cc(b)(3).
(g) For all applications that are approved, the following
information will be made available to the public:
(1) The information provided in paragraph (a) of this section;
(2) Each annual report required under Sec. 1735.24 will be
redacted to protect any proprietary information; and
(3) Such other information as the Administrator of the RUS deems
sufficient to allow the public to understand the assistance provided.
0
9. Add Sec. 1735.24 to read as follows:
Sec. 1735.24 Additional reporting requirements.
(a) Entities receiving financial assistance from RUS that are used
for retail broadband must submit annual reports for 3 years after
project completion. The reports must include the following information:
(1) The purpose of the financing, including new equipment and
capacity enhancements that support high-speed broadband access for
educational institutions, health care providers, and public safety
service providers (including the estimated number of end users who are
currently using or forecasted to use the new or upgraded
infrastructure); and
(2) The progress towards fulfilling the objectives for which the
assistance was made, including:
(i) The number of service points that will receive new broadband
service, existing network improvements, and facility upgrades resulting
from the federal assistance;
(ii) The speed of the broadband services;
(iii) The average price of the most subscribed tier of retail
broadband service in each PFSA;
(iv) The number of new subscribers generated from the project; and
(v) Complete, reliable, and precise geolocation information that
indicates the location of new broadband service that is being provided
or upgraded within the service territory supported by the grant, loan,
or loan guarantee.
(b) A notice will be published on the Agency's website that will
include each annual broadband improvement report, redacted as
appropriate to protect any proprietary information in the report.
Subpart E--Basic Requirements for Loan Approval
0
10. Amend Sec. 1735.51 by revising paragraph (c) to read as follows:
Sec. 1735.51 Required findings.
* * * * *
(c) Nonduplication or certificate requirement. The borrower shall
provide RUS with satisfactory evidence to enable the Administrator to
determine that no duplication of telephone service shall result from a
particular loan.
Sec. 1735.52 [Amended]
0
11. Amend Sec. 1735.52 by removing paragraph (a) and removing the
paragraph (b) designation and heading.
PART 1737--PRE-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND
GUARANTEED TELECOMMUNICATIONS LOANS
0
12. The authority citation for part 1737 continues to read as follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq.; Pub. L. 103-354,
108 Stat. 3178 (7 U.S.C. 6941 et. seq.).
Subpart C--The Loan Application
0
13. Amend Sec. 1737.22 by:
0
a. Removing paragraph (a)(13);
0
b. Redesignating paragraphs (a)(14) through (20) as paragraphs (a)(13)
through (19), respectively;
0
c. Designating the text of newly redesignated paragraph (a)(19) as
paragraph (a)(19)(i);
0
d. Designating the undesignated paragraph following newly designated
paragraph (a)(19)(i) as paragraph (a)(19)(ii);
0
e. In newly designated paragraph (a)(19)(ii), removing ``(a)(19)'' and
adding ``(a)(18)'' in its place;
0
f. Revising paragraphs (b) introductory text, (c) introductory text,
and (c)(3);
0
g. Redesignating paragraph (d) as paragraph (e); and
0
h. Adding a new paragraph (d) and paragraph (f).
The revisions and additions read as follows:
Sec. 1737.22 Supplementary information.
* * * * *
(b) The following must be submitted by borrowers seeking subsequent
loans:
* * * * *
(c) For borrowers requesting funds for construction or refinancing,
in addition to the information included in paragraphs (a) and (b) of
this section, the following must be submitted:
* * * * *
(3) Justification for refinancing and evidence that the underlying
loan to be refinanced would have been eligible for RUS financing under
the RE Act.
(d) Loan requests whose sole purpose is to refinance loans under
Titles II and VI of the RE Act must submit the following:
(1) Certified financial statements for the last 3 years.
(2) Five-year financial projections consisting of Income Statement,
Balance Sheet, and Cash Flow Statement.
(3) A ``Certification Regarding Lobbying'' for loans, or a
``Statement for Loan Guarantees and Loan Insurance''
[[Page 50610]]
for loan guarantees, and when required, an executed Standard Form LLL,
``Disclosure of Lobbying Activities,'' (see section 319, Pub. L. 101-
121 (31 U.S.C. 1352)).
(4) Executed copy of Form AD-1047, ``Certification Regarding
Debarment, Suspension, and Other Responsibility Matters--Primary
Covered Transactions.''
(5) Borrower's determination of loan maturity.
(6) A statement that the borrower is or is not delinquent on any
Federal debt, such as income tax obligations or a loan or loan
guarantee from another Federal agency. If delinquent, the reasons for
the delinquency must be explained and RUS will take such explanation
into consideration in deciding whether to approve the loan. RUS Form
490, ``Application for Telephone Loan or Guarantee,'' contains a
section for providing the required statement and any appropriate
explanation.
(7) Any other supporting data required by the Administrator.
* * * * *
(f) For all applications that request funding for retail broadband
as defined in 7 CFR 1735.2, the application must include all
information required for the public notice as stated in 7 CFR
1735.23(a).
* * * * *
Subpart J--Final Loan Approval Procedures
0
14. Amend Sec. 1737.90 by revising paragraph (a)(6) to read as
follows:
Sec. 1737.90 Loan approval requirements.
(a) * * *
(6) All environmental review requirements must be met in accordance
with 7 CFR part 1970. The Agency may obligate, but not disperse, funds
under the program pursuant to 7 U.S.C. 950cc-1, before the completion
of the otherwise required environmental, historical, or other types of
reviews if the Secretary of Agriculture determines that subsequent
site-specific review shall be adequate and easily accomplished for the
location of towers, poles, or other broadband facilities in the service
area of the awardee without compromising the project or the required
reviews.
* * * * *
Christopher A. McLean,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2021-19319 Filed 9-9-21; 8:45 am]
BILLING CODE 3410-15-P
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</html>Indexed from Federal Register on September 10, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.