Rule2022-02887
Affordable Connectivity Program; Emergency Broadband Benefit Program
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
February 14, 2022
Effective
March 16, 2022
Issuing agencies
Federal Communications Commission
Abstract
In this Report and Order, the Federal Communications Commission (Commission or FCC) adopts final rules for the Affordable Connectivity Program, established by Congress in the Infrastructure Investment and Jobs Act (Infrastructure Act). The Affordable Connectivity Program is designed to make broadband service and connected devices available to eligible low-income households at affordable, discounted prices from providers that opt to participate in the program. The rules adopted in the Report and Order address, inter alia, the eligibility criteria for broadband service providers that opt to participate in the program, eligibility criteria for households that seek benefits, the types of broadband services and connected devices that will be covered, the amounts of reimbursements available to providers, claims procedures, consumer protection requirements, and reporting, auditing, enforcement, and related matters.
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<title>Federal Register, Volume 87 Issue 30 (Monday, February 14, 2022)</title>
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[Federal Register Volume 87, Number 30 (Monday, February 14, 2022)]
[Rules and Regulations]
[Pages 8346-8384]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-02887]
[[Page 8345]]
Vol. 87
Monday,
No. 30
February 14, 2022
Part II
Federal Communications Commission
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47 CFR Part 54
Affordable Connectivity Program; Emergency Broadband Benefit Program;
Final Rule and Proposed Rule
Federal Register / Vol. 87 , No. 30 / Monday, February 14, 2022 /
Rules and Regulations
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[WC Docket Nos. 21-450 and 20-445; FCC 22-2; FR ID 71008]
Affordable Connectivity Program; Emergency Broadband Benefit
Program
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this Report and Order, the Federal Communications
Commission (Commission or FCC) adopts final rules for the Affordable
Connectivity Program, established by Congress in the Infrastructure
Investment and Jobs Act (Infrastructure Act). The Affordable
Connectivity Program is designed to make broadband service and
connected devices available to eligible low-income households at
affordable, discounted prices from providers that opt to participate in
the program. The rules adopted in the Report and Order address, inter
alia, the eligibility criteria for broadband service providers that opt
to participate in the program, eligibility criteria for households that
seek benefits, the types of broadband services and connected devices
that will be covered, the amounts of reimbursements available to
providers, claims procedures, consumer protection requirements, and
reporting, auditing, enforcement, and related matters.
DATES: Effective March 16, 2022, except for 47 CFR 54.1802(b), 54.1804,
54.1807(b), 54.1808(c)(1) and (2), 54.1809(c), and 54.1810(a) and (b),
which are effective April 15, 2022.
ADDRESSES: You may submit comments, identified by WC Docket Nos. 21-
450, by any of the following methods:
<bullet> Electronic Filers: You may file documents electronically
by accessing the Commission's Electronic Comment Filing System (ECFS)
at <a href="https://www.fcc.gov/ecfs/filings">https://www.fcc.gov/ecfs/filings</a>.
<bullet> Paper Filers: Parties who choose to file by paper must
file an original and one copy of each filing.
Filings can be sent by commercial overnight courier, or by first-
class or overnight U.S. Postal Service mail. All filings must be
addressed to the Commission's Secretary, Office of the Secretary,
Federal Communications Commission.
<bullet> Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9050 Junction Drive,
Annapolis Junction, MD 20701.
<bullet> U.S. Postal Service first-class, Express, and Priority
mail must be addressed to Federal Communications Commission, 45 L
Street NE, Washington, DC 20554.
<bullet> Effective March 19, 2020, and until further notice, the
Commission no longer accepts any hand or messenger delivered filings.
This is a temporary measure taken to help protect the health and safety
of individuals, and to mitigate the transmission of COVID-19. See FCC
Announces Closure of FCC Headquarters Open Window and Change in Hand-
Delivery Policy, Public Notice, DA 20-304 (March 19, 2020), <a href="https://www.fcc.gov/document/fcc-closes-headquarters-open-window-and-changes-hand-delivery-policy">https://www.fcc.gov/document/fcc-closes-headquarters-open-window-and-changes-hand-delivery-policy</a>.
<bullet> Parties that need to submit confidential filings to the
Commission should follow the instructions provided in the Commission's
March 31, 2020 public notice regarding the procedures for submission of
confidential materials. See FCC Provides Further Instructions Regarding
Submission of Confidential Materials, Public Notice, DA 20-361, 35 FCC
Rcd 2973 (OMD, March 31, 2000), <a href="https://docs.fcc.gov/public/attachments/DA-20-361A1_Rcd.pdf">https://docs.fcc.gov/public/attachments/DA-20-361A1_Rcd.pdf</a>. All filings must be addressed to the
Commission's Secretary, Office of the Secretary, Federal Communications
Commission.
People with Disabilities. To request materials in accessible
formats for people with disabilities (Braille, large print, electronic
files, audio format), send an email to <a href="/cdn-cgi/l/email-protection#12747171272226527471713c757d64"><span class="__cf_email__" data-cfemail="e88e8b8bddd8dca88e8b8bc68f879e">[email protected]</span></a> or call the
Consumer and Governmental Affairs Bureau at 202-418-0530.
FOR FURTHER INFORMATION CONTACT: Eric Wu, Attorney Advisor,
Telecommunications Access Policy Division, Wireline Competition Bureau,
at (202) 418-7400 or <a href="/cdn-cgi/l/email-protection#fb9e899298d58c8ebb9d9898d59c948d"><span class="__cf_email__" data-cfemail="3550475c561b4240755356561b525a43">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's
Report and Order in WC Docket Nos. 21-450 and 20-445, FCC 22-2, adopted
on January 14, 2022 and released on January 21, 2022. The full text of
this document is available at <a href="https://docs.fcc.gov/public/attachments/FCC-22-2A1.pdf">https://docs.fcc.gov/public/attachments/FCC-22-2A1.pdf</a>. The Further Notice of Proposed Rulemaking that was
adopted concurrently with this Report and Order is to be published
elsewhere in the Federal Register.
I. Introduction
1. In the Infrastructure Act, Congress established the Affordable
Connectivity Program (ACP) on the basis of the preexisting Emergency
Broadband Benefit Program (EBB Program), with modifications designed to
transform it from an emergency response to a public health crisis to a
longer-term program to support making discounted broadband service and
connected devices available to low-income households. The
Infrastructure Act includes an additional $14.2 billion appropriation
for implementing the new program. The rules adopted in the Report and
Order are largely based on the Commission's EBB Program rules, with
modifications to reflect statutory changes adopted in the
Infrastructure Act.
2. In particular, the Infrastructure Act changed the EBB Program's
subscriber eligibility rules and benefit amounts by increasing the
Affordable Connectivity Program's income threshold from 135% to 200% of
the Federal Poverty Guidelines, adding the Special Supplemental
Nutritional Program for Women, Infants, and Children (WIC) as a
qualifying program, removing eligibility for households that qualified
for the EBB Program based on factors related to income losses due to
the COVID-19 pandemic, and reducing the standard monthly benefit from
$50.00 to $30.00. See Infrastructure Act, div. F, tit. V, section
60502(b)(1), amending Consolidated Appropriations Act, 2021, Public Law
116-260, div. N. tit. IX, section 904(a)(6), (a)(7)(A) (2020); 47
U.S.C. 1752(a)(6), (a)(7)(A). Under the Affordable Connectivity
Program, eligible households may apply subsidy benefits to any
broadband services offered by a participating provider, rather than
limiting the covered services to those offered on December 1, 2020, as
in the EBB Program. Infrastructure Act, div. F, tit. V, section
60502(a)(3), amending Consolidated Appropriations Act, 2021, Public Law
116-260, div. N. tit. IX, section 904(a)(9), (b)(7); 47 U.S.C.
1752(b)(7)(A)(i). The Affordable Connectivity Program also includes
modified obligations for participating providers relating to consumer
protection and program promotion, as well as reporting, enforcement,
auditing, and other provisions. These statutory provisions and rules
implementing them are discussed following.
3. Pursuant to the Infrastructure Act, the Affordable Connectivity
Program took effect on December 31, 2001. The Universal Service
Administrative Company (USAC or the Administrator), which administers
the Commission's universal service programs as well as the EBB and
Affordable Connectivity Programs, began accepting applications and
enrollments for the Affordable Connectivity Program on December 31,
2021. As of January 14, 2022, approximately 265,000 households had
enrolled in the Affordable Connectivity Program and more than 9 million
[[Page 8347]]
households had transitioned into that newly-launched program from the
EBB Program.
4. The Infrastructure Act directs the Commission to adopt rules to
implement the Affordable Connectivity Program by January 14, 2022
(i.e., within 60 days after November 15, 2021, the date of enactment of
the statute). See 47 U.S.C. 1752(c)(1). As directed by the statute, a
public notice initiating this proceeding and seeking comment on
proposed rules was issued on November 18, 2021, see 47 U.S.C.
1752(c)(2); see Wireless Competition Bureau Seeks Comment on the
Implementation of the Affordable Connectivity Program, WC Docket No.
21-450, Public Notice, DA 21-1453 (WCB Nov. 18, 2021) (ACP Public
Notice); Proposed Rule, 88 FR 74036 (Dec. 29, 2021); and interested
parties were given 20 days to file comments (due Dec. 8, 2021) and 20
days for reply comments (due Dec. 28, 2021). In response, the
Commission received comments from broadband providers, State and local
governments, educational groups, consumer groups and other non-profits,
and individual consumers.
II. Discussion
A. Participating Providers
5. The Infrastructure Act defines an eligible ``participating
provider'' as a broadband service provider that has either received
Eligible Telecommunications Carrier (ETC) designation under 47 U.S.C.
214(e) or requested and obtained the Commission's approval as such. See
47 U.S.C. 1752(a)(11)(A). This definition is consistent with the
definition of ``participating provider'' in the Consolidated
Appropriations Act for purposes of the EBB Program; and as in the EBB
Program, provider participation in the Affordable Connectivity Program
is voluntary. 47 U.S.C. 1752(a)(11)(A). Nothing in the Infrastructure
Act requires changes to the EBB Program framework through which
providers may seek to participate in the Affordable Connectivity
Program, including the participating provider election process, the
``expedited approval process'' to approve requests to participate by
providers that are not designated ETCs, see 47 U.S.C. 1752(d)(2)(A), or
the ``automatic approval process'' for providers with an ``established
program as of April 1, 2020'' for offering broadband services to
eligible households with verification processes sufficient to prevent
fraud, waste, and abuse. See 47 U.S.C. 1752(d)(2)(A), (d)(2)(B).
Providers that participated in the EBB Program and were in good
standing as of December 31, 2021 when the EBB Program ceased can
continue to participate in the same manner in the Affordable
Connectivity Program without seeking Bureau approval or filing election
notices. This includes providers with alternative verification process
approvals. Providers that did not participate in the EBB Program and
have not been designated as ETCs by a State or the Commission must file
for automatic approval or expedited approval from the Commission. All
new providers to the Affordable Connectivity Program will need to file
USAC election notices.
1. Providers Eligible To Participate
6. Participating Provider Eligibility Requirements. The Commission
retains the broad, technologically neutral approach to provider
participation that was used in the EBB Program. ETCs and non-ETCs
seeking to participate in the Affordable Connectivity Program must
establish that they provide broadband services to participate, and the
Commission declines to further narrow provider eligibility among those
providers that offer broadband services as defined by the statute. This
interpretation continues to allow participation by ETCs and non-ETC
broadband providers, including not only traditional internet Service
Providers (ISPs) such as cable providers and wireless internet service
providers, but also non-traditional broadband providers like community-
owned networks, electric cooperatives, and municipal governments.
7. The Infrastructure Act removes the Consolidated Appropriations
Act's requirement that the broadband services supported by the program
must have been offered ``in the same manner, and on the same terms, as
described in any of such provider's offerings for broadband internet
access service to such household, as on December 1, 2020,''
Consolidated Appropriations Act, 2021, div. N, tit. IX, section
904(a)(9), struck by Infrastructure Act, div. F, tit. V, section
60502(b)(1)(A)(iv); 47 U.S.C. 1752(a)(8), and imposes a new requirement
that providers ``allow an eligible household to apply the affordable
connectivity benefit to any internet service offering of the
participating provider, at the same rates and terms available to
households that are not eligible households.'' 47 U.S.C.
1752(b)(7)(A)(i). While the EBB Program required participating
providers to have offered retail broadband internet access service to
eligible households as of December 1, 2020, the Infrastructure Act
removed the December 1, 2020, restriction, and therefore participating
providers will only need to establish they offered broadband services
to end-users prior to seeking to participate in the Affordable
Connectivity Program. Participating providers can establish through
certification that they provided broadband internet access service and
reimbursable internet service offerings either by timely filing the FCC
Form 477 or by filing a certification, under penalty of perjury, that
they provided broadband service, prior to submitting the application.
As in the EBB Program, such retail broadband internet access service
must be offered or provisioned to end users, meaning the provider of
retail broadband internet access service maintains a direct
relationship with the customer, is responsible for dealing with
customer complaints, handles customer billing, and provides quality of
service guarantees to the end user.
8. Existing EBB Program Participating Providers. In order to enable
a quick and orderly transition period by reducing administrative
burdens for participating providers, the Commission, and USAC, the
Commission allows existing EBB Program participating providers in good
standing to be automatically eligible to participate in the Affordable
Connectivity Program. Automatically transitioning participating
providers from the EBB Program to the Affordable Connectivity Program
helps ensure that eligible households continue to receive the
Affordable Connectivity Program discount without disruptions.
2. Elections To Participate in the Affordable Connectivity Program by
Existing EBB Program Providers, Existing ETCs and Bureau-Approved
Providers
9. Providers that did not participate in the EBB program but wish
to participate in the Affordable Connectivity Program will be required
to file election notices with USAC to facilitate the administration of
the program and provide USAC the necessary information to incorporate
providers into its systems for eligibility determination, enrollment,
and reimbursement. This also applies to providers seeking to add new
jurisdictions (States or territories). Existing ETCs will need to file
election notices with USAC only, while non-ETCs will need to first
apply for and then obtain Bureau approval prior to filing their
election notices with USAC. The Commission directs the Bureau and USAC
to work expeditiously to review provider applications and elections,
respectively, and directs the Bureau to issue additional guidance and
instruction as necessary for providers seeking to participate in the
Affordable
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Connectivity Program. Further, the Commission expects the Bureau and
USAC to prioritize their reviews to limit excessive delay in issuing
approvals of the applications and elections once properly submitted by
the providers.
a. Election Notice Process and Requirements
10. The Commission directs USAC, under the supervision of and in
coordination with the Bureau, to establish and administer a process to
enable all new participating Affordable Connectivity Program providers
to file election notices containing information sufficient to
effectively administer the program, including the information discussed
following. Participating providers must certify under penalty of
perjury that the information set forth in the election notice is true,
accurate, and complete; they understand and will comply with all
statutory and regulatory obligations described within the Order; and
all terms and conditions and other requirements applicable to using the
Lifeline National Eligibility Verifier (National Verifier), National
Lifeline Accountability Database (NLAD), Representative Accountability
Database (RAD), and other USAC systems. Providing materially false
information in the election notice will disqualify a provider from
participation in the Affordable Connectivity Program or result in a
reduced reimbursement, as appropriate. 47 U.S.C. 1752(a)(11), (d).
11. Provider elections must include the following information to
establish that the provider has met the criteria and can provide enough
information to allow USAC to administer the program.
(a) List of States or territories in which the provider plans to
participate in the Affordable Connectivity Program. A provider must
list each State in which it will offer Affordable Connectivity Program
services. Consistent with USAC's existing processes, providers should
identify to USAC the postal ZIP code(s) or Census Block(s) where the
provider will offer the Affordable Connectivity Program service to
obtain Service Provider Identification Number(s) (SPINs), Study Area
Codes (SACs), and provide information for use in the ``Companies Near
Me Tool'' to the extent necessary.
(b) A statement that, in each such State or territory, the provider
was a ``broadband provider.'' Consistent with the Commission's
broadband data reporting rules, participating providers will be able to
establish that they provided broadband internet access service and
reimbursable internet service offerings through reference to previous
FCC Form 477 filings. The Commission will consult the subscription data
provided on the FCC Form 477 and any successor filing to determine
compliance with this requirement. To fulfill this requirement, a
provider should reference the most recent FCC Form 477 data month
submission showing service in the jurisdiction. Providers that are not
required to file FCC Form 477 must certify that they provided retail
broadband internet access service to end users, submit supporting
documentation demonstrating such offerings, and identify the underlying
carrier providing the network facilities.
(c) A statement identifying where the provider is an existing ETC.
A provider who is an ETC or is affiliated with an ETC seeking to begin
offering the Affordable Connectivity Program must submit to USAC
documentation demonstrating that it is a participating provider in
specific states.
(d) A statement identifying where the provider received Bureau
approval to participate in the Affordable Connectivity Program.
Providers seeking approvals outside of states where they are existing
ETCs or are affiliated with existing ETCs (within the meaning of
``affiliate'' in 47 U.S.C. 153(2)) will need to identify those states
and submit the statement to the Bureau for approval to participate in
the program.
(e) A statement confirming whether the provider intends to
distribute connected devices and supporting documentation. Providers
seeking reimbursement for connected devices must submit a statement of
intent to distribute connected devices as part of their election
notice. These providers should also include documentation detailing the
equipment, including device make, device model, device type, device
characteristics (e.g., screen size, storage, memory) and market value
of the laptop, desktop or tablet. Connected devices must be accessible
to and usable by users with disabilities.
12. Providers newly seeking to participate in the Affordable
Connectivity Program must obtain and be able to provide the necessary
administrative registrations to utilize the Commission and USAC
processes, including the Commission Registration System (CORES), FCC
Registration Number (FRN), Service Provider Identification Number(s)
(SPINs), Study Area Codes (SACs), System for Award Management (SAM),
Employer Identification Number (EIN), Tax Identification Number (TIN)
and/or Dun & Bradstreet DUNS number for all entities the provider
anticipates seeking reimbursement. The FRN, EIN/TIN, and DUNS should
all be associated with the same entity filing the election notice, and
the provider should identify any parent/subsidiary or affiliate
relationships it has with other broadband service providers. See 47
U.S.C. 153(2) (defining affiliate). An election should be filed for
every entity expecting to receive reimbursement from the Affordable
Connectivity Program.
13. The Commission will not collect broadband internet service plan
information during the election process, and participating providers do
not have to file broadband service plan information during the USAC
election process or update existing service plan information that they
previously filed during the EBB Program election process. Providers are
on notice of the statutory requirement to offer ACP discount on ``any
internet service offering'' and the requirement adopted in the Order to
certify compliance with the ACP rules as a condition of participation.
14. The Commission directs USAC, in coordination with the Bureau,
to expeditiously process election notices and to establish necessary
systems and processes to systematically review election notices on a
rolling basis. USAC should notify a provider promptly if its election
notice is incomplete or otherwise contains errors that prevent USAC
from processing the election notice. USAC will only reject election
notices that are materially incomplete and that the provider fails to
update.
b. Obligations of Providers Electing To Participate in Affordable
Connectivity Fund
15. The Commission has authority under the Infrastructure Act to
require participating providers to make available the necessary
information and certifications to obtain access to the existing USAC
systems needed to administer the Affordable Connectivity Program, and
it authorizes USAC to continue to make available the appropriate
databases to administer the program, including the National Verifier,
NLAD, RAD, and Lifeline Claims System (LCS), and to take the
appropriate actions to update, modify, or create the necessary systems
to administer the Affordable Connectivity Program in line with the
Commission's direction in the Order. The Commission also directs the
Bureau and the Office of Managing Director (OMD) to supervise and
coordinate with USAC all actions necessary to continue to make USAC
databases and systems available for the Affordable Connectivity
Program.
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16. Access to Affordable Connectivity Program Systems. The
Commission further requires participating providers to use USAC
systems, such as the LCS, NLAD, and RAD, for program administration,
and permits them to use the National Verifier to determine household
eligibility if they do not have approved alternative verification
processes. See 47 U.S.C. 1752(b)(3), (i)(5). Based on the Commission's
experience with the EBB Program, the Commission will continue to rely
on the USAC-administered National Verifier, NLAD, RAD, LCS, and other
established processes, including the provider reimbursement process,
call centers for program support, provider and consumer outreach, and
conducting program integrity reviews. The Commission directs the Bureau
and USAC, as directed by the Bureau, to issue any further guidance or
instruction necessary to clarify the obligations of participating
providers when using USAC databases and the administrative process
established for the Affordable Connectivity Program.
17. Required Updates to Election Notice Information Resulting from
Transactions of Participating Providers. Participating providers must
maintain up-to-date information in their election notices filed with
USAC and shall keep the identifying information specified in those
notices, including points of contact, FRN, EIN/TIN, and DUNS, up to
date. Participating providers must update this information following
any transaction that would result in a change to the identifying
information submitted on an election notice (although they need not
seek approval specifically for continued participation in the
Affordable Connectivity Program following transfers of ownership or
control under 47 U.S.C. 214). Providers must submit updated and
accurate contact information and similar administrative information
within ten business days of the change in information.
c. Sales Agent Financial Incentives for Enrollments
18. Consistent with the EBB Program rules, the Commission continues
to require all participating providers to have their agents and other
enrollment representatives registered with the Representative
Accountability Database (RAD), as is currently required for the
Lifeline and EBB Programs, as a way to minimize waste, fraud, and
abuse. To address the potential for waste, fraud, and abuse caused by
commission-based compensation for sales agents, the Bureau proposed
prohibiting any commission compensation for enrollment representatives
or direct supervisors. ACP Public Notice, 86 FR at 74040-41, para. 18.
At this time, the Commission declines to adopt a strict prohibition on
participating providers offering commission-based compensation to
employees, sales agents, or similar enrollment representatives. The
Commission instead adopts a more limited prohibition on participating
providers and, as done for Lifeline, restricts them from offering or
providing to their enrollment representatives or direct supervisors any
commission compensation that is based on the number of households who
apply for, are enrolled in, or receive the Affordable Connectivity
Program benefit from that provider, or based on revenues the
participating provider receives in connection with the Affordable
Connectivity Program, including payments for connected devices. In the
EBB Program Order, the Commission declined to apply this prohibition to
the EBB Program ``to avoid discouraging provider participation and
diminishing consumer choice'' in a temporary program. Emergency
Broadband Benefit Program, 86 FR 19532, 19559, para. 142 (April 13,
2021) (EBB Program Order).
19. The considerations for the more permanent Affordable
Connectivity Program are different, and our experience during the EBB
Program with agent-driven, apparent improper enrollments necessitates
adopting a program ban on agent commission compensation similar to the
Lifeline Program. For example, the FCC's Office of Inspector General
(OIG) recently issued an advisory raising concerns about potential
waste, fraud and abuse with respect to EBB Program enrollments based on
the USDA National School Lunch Program's Community Eligibility
Provision (CEP). See generally Advisory Regarding Fraudulent EBB
Enrollments Based on USDA National School Lunch Program Community
Eligibility Provision (FCC OIG Nov. 22, 2021), <a href="https://www.fcc.gov/document/fcc-inspector-general-advisory-regarding-ebb-enrollment-fraud">https://www.fcc.gov/document/fcc-inspector-general-advisory-regarding-ebb-enrollment-fraud</a>
(OIG Advisory); Wireline Competition Bureau Announces Additional
Program Integrity Measures for Emergency Benefit Program Enrollments
Based on the Community Eligibility Provision, WC Docket No. 20-445, DA
21-1464 (WCB Nov. 22, 2021). Specifically, the advisory observes and
describes certain problems associated with the CEP enrollment process
that involve misconduct by sales agents. OIG Advisory at 2-3. While the
Bureau and USAC have engaged in remedial actions to prevent this
specific abuse, the Commission is concerned that the financial
incentives for provider sales agents based on enrollments and
applications invites program waste.
20. This decision is bolstered by a similar restriction in the
Lifeline program. In 2019, the Commission banned this practice in the
Lifeline program, holding that ``while the National Verifier plays an
important role in helping to address waste, fraud, and abuse in the
program, we do not believe that it will eliminate the financial
incentives for individuals to attempt to defraud the Lifeline program.
Commissions based on the number of Lifeline applications or successful
Lifeline enrollments are one such incentive, and by limiting them
today, we remove a financial incentive for committing fraudulent
activity.'' Bridging the Digital Divide for Low-Income Consumers, Final
Rule, 84 FR 71308, 71315, para. 52 (Dec. 27, 2019) (Lifeline Fifth
Report and Order). The Commission finds this rationale persuasive.
While the Commission initially declined adopting such a ban for the EBB
Program to not discourage provider participation, given the robust
provider participation and household enrollments seen in the EBB
Program, the Commission finds the public interest is better served by
preventing waste, fraud, and abuse caused by incentives related to
commissions.
21. In considering this decision, the Commission is not persuaded
by comments in the record suggesting that such a limited commission-
based compensation prohibition is unnecessary or that representative
registration in the RAD alone is sufficient to prevent waste, fraud,
and abuse. In the Commission's experience, both in Lifeline and the EBB
Program, agent registration does not remove the financial incentive to
improperly enroll a household when the agent is compensated based on
the enrollment. See OIG Advisory at 2-3. Further, agent registration
allows for audits, trend analysis, and other remedial actions after the
improper enrollment occurs, but does little to prevent the improper
behavior or remove the incentive for abuse. Commenters additionally
suggest that the Lifeline commission ban was a stop-gap measure that
was put in place prior to the full launch of the National Verifier and
thus does not need to be implemented in the Affordable Connectivity
Program, which utilizes the National Verifier. The Commission, however,
continues to ban commission-based compensation in the Lifeline program
following the full deployment
[[Page 8350]]
of the National Verifier, and the Commission has recognized that the
National Verifier itself does not remove the financial incentives for
sales agents to improperly enroll ineligible households. Lifeline Fifth
Report and Order, 84 FR at 71315, para. 52.
22. The Commission considered a stricter prohibition that would bar
any commission-based compensation to participating providers'
enrollment representatives. ACP Public Notice, 86 FR at 74040-41, para.
18. However, because this broad prohibition may have had unintended
consequences given the frequency broadband providers use commission-
based compensation for their enrollment representatives across multiple
services and business operations, the Commission limits the prohibition
to only commissions based on ACP applications, enrollments,
participation, or revenues, thus striking a balance in preventing
certain abuses in the program while reducing the logistical and
administrative burden for participating providers that a blanket
prohibition on commissions may have caused. Finally, the Commission
finds support in the record to ban agent compensation based on ACP
applications and enrollments from commenters recognizing the financial
incentive to enroll consumers can result in misleading and improper
information being provided to consumers to induce enrollments or other
abusive behaviors.
23. Accordingly, the Commission prohibits participating providers
from offering or providing commissions to enrollment representatives
and their direct supervisors based on the number of consumers who apply
for, are enrolled in, or receive the affordable connectivity benefit
from that provider. This restriction applies to an employee, agent,
contractor, or subcontractor, acting on behalf of a participating
provider or third-party entity, who directly or indirectly provides
information to the Administrator for the purpose of eligibility
verification, enrollment, subscriber personal information updates,
benefit transfers, or de-enrollment. For purposes of this rule, a
provider's payment to a third-party entity that in turn provides
commissions to an enrollment representative is subject to this
prohibition. Likewise, the Commission determines that providers who
allow agents to retain cash payments for device purchases related to
the ACP enrollments are providing an incentive based on ACP
enrollments, and thus this activity is also prohibited under these
rules. This restriction strikes the balance between a blanket
commission prohibition that may have been logistically and
administratively difficult for participating providers given the
frequent use of this practice for broadband providers in general
service initiations and the goal of preventing waste, fraud, and abuse
caused by the financial incentives to enroll any household in the
Affordable Connectivity Program through the use of commissions. This
restriction is not intended to prevent providers from using customer
service representatives to assist consumers in the application and
recertification processes, but customer service representatives should
not be compensated based on the number of customer applications that
are approved. Further, this restriction only applies to commissions
related to ACP applications, participation, enrollments, or revenue,
and while it does not prohibit commissions paid for sale of service or
provider business incentives unrelated to the Affordable Connectivity
Program, it does not authorize providers to shift commissions that
would have been paid for ACP applications, enrollments, or revenues to
other services or business operations. This approach to restricting
commissions based on ACP applications is supported by commenters that
recognize this compromise addresses potential improper behaviors while
not causing overly burdensome implementation for participating
providers.
d. Provider Annual Certification Requirements
24. Providers are required to submit to USAC annual officer
certifications relating to the Affordable Connectivity Program. The
officer with responsibility for a participating provider's ACP activity
shall certify, under penalty of perjury, that the participating
provider has policies and procedures in place to ensure compliance with
ACP rules. This annual certification is necessary to ensure that all
ACP providers are vigilant against waste, fraud, and abuse, and are
undertaking efforts to ensure compliance with the ACP rules, which will
be particularly important as this program is anticipated to last
multiple years. At a minimum, the annual certification will require ACP
providers to attest that they have policies and procedures to ensure
the eligibility of their subscribers to receive ACP support and for
ensuring the accuracy and completeness of the information they provide
to the National Verifier and NLAD; an acknowledgement that providers
are liable for violations of ACP rules and that their liability extends
to violations by their agents, contractors, and representatives; and
other information deemed necessary by the Bureau to ensure that
providers have a plan for complying with ACP rules. The Commission
directs the Bureau to develop an annual officer certification and
submission process with USAC and set a uniform deadline for all
providers to submit this annual certification.
3. Non-ETC Provider Applications and Approval Process
a. Automatic Approval Process for Providers With Existing Support
Programs
25. The Commission adopts an automatic approval process to enable
non-ETC broadband providers with ``an established program as of April
1, 2020, that is widely available and offers internet service offerings
to eligible households and maintains verification processes that are
sufficient to avoid fraud, waste, and abuse'' to be automatically
approved upon the filing of information meeting the criteria. 47 U.S.C.
1752(d)(2)(B). Any non-ETC broadband provider seeking to qualify for
such automatic approval must file an application describing: (1) The
states or territories in which in which it plans to participate, (2)
the service areas in which the provider has the authority, if needed,
to operate in each State, but has not been designated an eligible
telecommunications carrier, and (3) a description, supported by
documentation, of the established program with which the provider seeks
to qualify for automatic admission to the Affordable Connectivity
Program.
26. Established Program as of April 1, 2020. The Commission
maintains the interpretation it adopted in the EBB Program of what
constitutes an ``established program'' that is ``widely available''
while accounting for the Infrastructure Act's modifications to the
statute. This requirement encompasses any eligible broadband provider
that maintains an existing program that was made available by April 1,
2020, offering broadband to subscribers meeting at least one of the
criteria in the statute's definition of an eligible household.
Specifically, providers offering broadband subscribers discounted rates
based on criteria such as low-income, participation in Federal, State,
or local assistance programs, or other means-tested eligibility
criteria qualify for this automatic approval process. 47 U.S.C.
1752(a)(6)(D). However, the Infrastructure Act removes eligibility for
households that qualified based on a provider's COVID-19 program or
having experienced a substantial loss of income since February 29,
2020. In keeping with the
[[Page 8351]]
directive of Congress, the Commission modifies the requirements of what
constitutes an ``established program'' to reflect the removal of COVID-
19-specific response programs and other short-term bill forbearance or
forgiveness programs. A provider seeking to participate in the
Affordable Connectivity Program can demonstrate an ``established
program'' for automatic approval by submitting information
demonstrating that it maintains an existing low-income program that was
made available by April 1, 2020, to subscribers meeting at least one of
the criteria in the revised definition of an eligible household. To
qualify for automatic approval, providers must demonstrate that they
are offering broadband subscribers discounted rates based on criteria
such as low-income, participation in Federal, State, or local
assistance programs, or other means-tested eligibility criteria, and
must also demonstrate the pre-existing verification process used for
this existing program. The principal consideration in determining an
``established program'' for automatic approval is whether subscribers
receive or were eligible to receive a financial benefit through reduced
rates. A program is ``widely established'' when it was offered to
subscribers in a substantial portion of the service provider's service
area in a particular State.
27. Required Verification Processes. The Infrastructure Act
requires that providers seeking automatic approval to participate in
the Affordable Connectivity Program have established programs that
maintain verification processes that are ``sufficient to avoid fraud,
waste, and abuse.'' 47 U.S.C. 1752(d)(2)(B). Providers that have been
offering a broadband program for eligible households prior to
submitting applications for automatic approval and are submitting
applications for automatic approval must describe only the established
program and participation requirements to meet the approval criteria.
28. Providers that receive automatic approval to participate in the
Affordable Connectivity Program will use the National Verifier and the
National Lifeline Accountability Database (NLAD) to verify household
eligibility or their own alternative household eligibility verification
processes, or the combination of both, before seeking reimbursement. To
ensure the eligibility of the households enrolled through an approved
alternative verification process, the Commission directs USAC to
conduct quarterly program integrity reviews to ensure that subscribers
enrolled through a provider's alternative verification process are
eligible for the Affordable Connectivity Program.
29. Timing of Approvals. Providers that file applications
certifying to and making necessary demonstrations for the criteria
outlined preceding will receive approval automatically once the Bureau
confirms all required information was submitted.
b. Expedited Review Process for Non-ETC Providers
30. The Commission adopts an expedited review process for non-ETC
providers that do not qualify for automatic application processing and
are not affiliated with an ETC in the same jurisdiction consistent with
the EBB Program. Such providers must file an application for expedited
review to receive approval from the Bureau to participate in the
Affordable Connectivity Program by establishing a sufficient showing
that they have met the criteria for expedited review and approval, as
outlined following.
(a) A list of states or territories where the provider will offer
Affordable Connectivity Program services. A provider seeking approval
must list each jurisdiction in which it seeks to be approved to offer
ACP-supported services. While the provider need only identify the State
or territory where it plans to offer qualifying services for purposes
of its submission to the Bureau, providers should be prepared to
identify to USAC in their election the postal ZIP code(s) or Census
Block(s) where Program service will be offered to obtain Service
Provider Identification Number(s) (SPINs) or Study Area Codes (SACs),
as necessary.
(b) A statement identifying the jurisdiction in which the provider
requires FCC approval and jurisdictions in which the provider is an
existing ETC. A provider that is designated as an ETC or affiliated
with an ETC (see 47 U.S.C. 153(2), defining ``affiliate'') in some
states or territories must submit an application and obtain Bureau
approval to participate in the Program in states or territories where
the provider is not designated as an ETC. Providers without ETC
designations or unaffiliated with ETCs must certify that they are
authorized to provide broadband services.
(c) Certification of the provider's plan to combat waste, fraud,
and abuse. Participating provider applications must include a
certification that the provider understands and complies with all
statutory and regulatory obligations, including those described within
the Order, as a condition of offering ACP-supported services.
Specifically, a provider must certify that it will:
(i) Confirm a household's eligibility for the Program through
either the National Verifier or a Commission-approved eligibility
verification process prior to seeking reimbursement for the respective
subscriber;
(ii) follow all enrollment requirements and obtain all
certifications as required by the Program, including providing eligible
households with information describing the Program's eligibility
requirements, one-per-household rule, and enrollment procedures;
(iii) interact with the necessary USAC systems, including the
National Verifier, NLAD, and RAD, before submitting claims for
reimbursement, including performing the necessary checks to ensure the
household is not receiving duplicative benefits within the Program;
(iv) de-enroll from the Program any household it has a reasonable
basis to believe is no longer eligible to receive the benefit
consistent with Program requirements;
(v) comply with the Program's document retention requirements and
agree to make such documentation available to the Commission or USAC,
upon request or any entities (for example, auditors) operating on their
behalf; and
(vi) agree to the Commission's enforcement and forfeiture
authority.
c. Alternative Verification Process Applications
31. The Infrastructure Act allows a participating provider to
``rely upon an alternative verification process of the participating
provider,'' to determine household eligibility and enroll households in
the EBB program, subject to certain conditions. 47 U.S.C.
1752(b)(2)(B). The statute provides that the ``participating provider
submits information as required by the Commission regarding the
alternative verification process prior to seeking reimbursement,'' and
the Commission has seven days after receipt of the information to
notify the participating provider if its ``alternative verification
process will be sufficient to avoid waste, fraud, and abuse.'' Id. This
approval allows participating providers to verify all household
eligibility criteria through their own eligibility verification process
in addition to, or instead of, using the National Verifier.
32. Participating Provider Eligibility to Use an Alternative
Verification Process. Providers' alternative verification processes
must be at least as stringent as methods used by the National Verifier.
The use of alternative verification processes is limited to providers
that maintain an existing verification process used for their own self-
subsidized low-
[[Page 8352]]
income program or other purpose unrelated to the EBB Program,
Affordable Connectivity Program, or similar Federal assistance
programs. Providers lacking an existing household eligibility
verification process would not be able to demonstrate that a new
process would be sufficient to avoid waste, fraud and abuse. These
providers must use the NLAD, in conjunction with the National Verifier
and the school-based eligibility as permitted by statute, 47 U.S.C.
1752(b)(2)(C), to determine household eligibility for the Affordable
Connectivity Program.
33. Providers with approved EBB Program alternative verification
processes can continue to use those processes when enrolling households
in the Affordable Connectivity Program in a manner consistent with the
Affordable Connectivity Program's revised eligibility criteria and
these providers need not seek new Commission approval for their
alternative verification processes that already are compliant with
these requirements. However, providers with approved alternative
verification processes must seek new Commission approval to verify any
eligibility criteria not originally contained in prior approved
processes or when the provider seeks to update or modify its approved
alternative verification process.
34. Alternative Verification Process Application Requirements.
Participating providers seeking to use alternative verification
processes must collect a prospective subscriber's: (1) Full name, (2)
phone number, (3) date of birth, (4) email address, (5) home and
mailing addresses, (6) name and date of birth of the benefit qualifying
person if different than applicant, (7) basis for inclusion in program
(e.g., SNAP, SSI, Medicaid, school lunch, Pell Grant, income,
provider's existing program, etc.) and documentation supporting
verification of eligibility, and (8) certification that the information
included in the application is true. The provider is required to
describe the processes it (or a third-party) uses to verify the
required information and is required to explain why the alternative
process would be sufficient to avoid waste, fraud, and abuse. The
provider is also required to explain how it trains its employees and
agents to prevent ineligible enrollments, including enrollments based
on fabricated documents. If the alternative verification process fails
to include any of the required information, the provider is required to
explain why such information was not necessary to prevent waste, fraud,
and abuse. Finally, a provider must describe why its established
program requires approval of an alternative verification process and it
is required to explain why it proposes to use an alternative
verification process instead of the National Verifier eligibility
determinations.
35. Timing of Alternative Verification Process Approvals. As set
out by the statute, the ``participating provider submits information as
required by the Commission regarding the alternative verification
process prior to seeking reimbursement,'' and the Commission has seven
days after receipt of the information to notify the participating
provider if the participating provider's ``alternative verification
process will be sufficient to avoid waste, fraud, and abuse.'' 47
U.S.C. 1752(b)(2)(B). The Bureau will issue decisions regarding the
application or otherwise notify the provider of why the application is
insufficient within seven business days of the receipt of the
application. If the provider's application is incomplete, the seven-
business-day timing will not begin until the applicant provides
additional information requested from the Bureau. Providers that make
changes to approved procedures are required to inform the Commission in
writing of those changes by filing a new application documenting the
changes.
B. Household Eligibility
1. One-Per-Household Limitation
36. The Affordable Connectivity Program provides ``eligible
households'' a monthly discount on broadband service and a one-time
benefit for a connected device. 47 U.S.C. 1752(a)(6), (a)(7)(A). The
Consolidated Appropriations Act and the Infrastructure Act do not
define ``household.'' The Commission adopts the definition of
``household'' used in Lifeline and the EBB Program for the Affordable
Connectivity Program. The Commission directs USAC to implement measures
to ensure that during the 60-day transition period, legacy EBB Program
households cannot receive the transition period benefit amount and the
affordable connectivity benefit at the same time, even if they submit
new applications for the Affordable Connectivity Program.
37. To facilitate the administration of the one-per-household
limitation, the Commission directs the Bureau, in coordination with
USAC, to make any necessary revisions to the worksheet used by
households seeking to enroll in the Affordable Connectivity Program
that reside at the same address as another household that is already
enrolled in the Program. Where a participating service provider seeks
to enroll a subscriber whose eligibility was verified through an
approved alternative verification process or school-based eligibility
verification and that subscriber also resides at the same address as
another household enrolled in the Affordable Connectivity Program, the
service provider must collect and retain a household worksheet (in
either online or paper format) and retain any other subscriber provided
documentation relevant to a determination that the household is not
receiving more than one ACP benefit under the Program rules. Where a
service provider conducts eligibility determinations pursuant to an
approved alternative verification process, those processes must include
measures to confirm that a household, under the definition the
Commission adopts here, is not receiving more than one Affordable
Connectivity Program benefit. The Commission also directs USAC to
conduct quarterly program integrity reviews to confirm that Affordable
Connectivity Program subscribers who reside at the same address are in
compliance with the one-per-household limitation.
2. Participating Service Providers Are Required To Check Their Internal
Records for Potential Household and Individual Duplicates. This
Requirement Is Consistent With the Requirement To Implement Policies
and Procedures for Ensuring That A Household Is Eligible Under Program
Rules. Qualifying Income and Eligibility Programs
38. Pursuant to the Infrastructure Act, 47 U.S.C. 1752(a)(6)(A-E),
a household may qualify for the Affordable Connectivity Program if at
least one member of the household: (1) Meets the qualifications for
participation in the Lifeline program (with the modification that the
qualifying household income threshold is at or below 200 percent of the
Federal Poverty Guidelines for a household of that size); (2) has been
approved to receive school lunch benefits under the free and reduced
price lunch program under the Richard B. Russell National School Lunch
Act, or the school breakfast program under section 4 of the Child
Nutrition Act of 1966; (3) has received a Federal Pell Grant under
section 401 of the Higher Education Act of 1965 in the current award
year; (4) meets the eligibility criteria for a participating provider's
existing low-income program, subject to approval by the Commission and
any other requirements deemed by the Commission to be necessary in the
public interest; or (5) receives assistance through the WIC Program,
established
[[Page 8353]]
by section 17 of the Child Nutrition Act of 1996 (42 U.S.C. 1786). The
Infrastructure Act added WIC as a qualifying program for the Affordable
Connectivity Program, raised the maximum income for qualifying based on
household income for purposes of the Affordable Connectivity Program
from 135 percent to 200 percent of the Federal Poverty Guidelines for a
household of that size, and eliminated as qualifying criteria
substantial loss of income since February 29, 2020, and participation
in a provider's COVID-19 program. The Commission directs USAC to make
the necessary changes to the relevant program systems, including NLAD,
National Verifier, and LCS, and to update the acceptable documentation
guidelines in order to implement the eligibility criteria for the ACP.
39. Implementation of WIC as a Qualifying Program. The Commission
directs the Bureau, in conjunction with USAC, to identify and establish
connection(s) with database(s) that could be used to automatically
verify eligibility based on participation in WIC. To ensure that
households can enroll in the Affordable Connectivity Program based on
participation in WIC in the interim, while also promoting program
integrity, the Commission directs USAC to develop acceptable
documentation guidelines for WIC and to make adjustments to those
criteria as needed to administer the program and guard against
potential waste, fraud and abuse. The WIC documentation requirements
should be at least as robust as the documentation requirements that
USAC uses for other qualifying programs.
40. Community Eligibility Provision and Similar Provisions, and
Acceptable Documentation Period for School Lunch and Breakfast
Programs. Households may enroll based on a household member's
enrollment in a school or school district that participates in the
Community Eligibility Provision (CEP), through which schools or school
districts provide free lunch or breakfast to all students without
requiring an individual application for a meal benefit.
41. To prevent waste, fraud, and abuse in the Affordable
Connectivity Program, households seeking to enroll based on the CEP are
required to identify the CEP school and provide documentation
demonstrating that a member of the household attends the identified CEP
school. Households seeking to qualify based on a child or dependent's
attendance at a CEP school should also provide the benefit qualifying
person information when submitting their application. Furthermore, the
school documentation that households submit must include the name of
the student enrolled, the school year for which they are enrolled, the
name and address of the school, and contact information for that school
to validate that the proof of enrollment is for a CEP school. The
Commission directs USAC to conduct quarterly program integrity reviews
of a sample of households that enroll on this basis. USAC will de-
enroll households that do not confirm their eligibility as required by
the Commission's rules.
42. Households cannot qualify for the Affordable Connectivity
Program based on a household member's enrollment in a school that
participates in USDA Provisions 2 and 3, which, similar to the CEP,
allow schools to provide free breakfast or lunch to all students
without requiring individual annual applications. See USDA, Provisions
1, 2, and 3, <a href="https://www.fns.usda.gov/cn/provisions-1-2-and-3">https://www.fns.usda.gov/cn/provisions-1-2-and-3</a> (last
visited Jan. 14, 2022) (describing Provisions 2 and 3). Also,
participation in the Summer School Food Service Program, which is
separate from the school lunch and breakfast program, does not qualify
a household to participate in the Affordable Connectivity Program.
43. Households who seek to enroll based on a current student's
participation in a free and reduced price school lunch or breakfast
program may qualify based on documentation from the current school year
or the school year immediately preceding the application for the
Affordable Connectivity Program. To qualify based on a household
member's participation in a qualifying school lunch or breakfast
program, the household member must be a current student at the time the
ACP application is submitted. Program participants must notify their
service providers if they are no longer eligible for the Affordable
Connectivity Program, such as if no member of the household qualifies
for the free and reduced price school lunch or breakfast programs or no
member of the household attends school.
3. Enrollment of Eligible Households in the NLAD
44. Use of the National Lifeline Accountability Database. The NLAD
will be used as a program-wide tool for enrollment, as well as the
basis for reimbursement calculations and duplicate checks in all
states, territories, and the District of Columbia, regardless of a
State's NLAD opt-out status in the Lifeline program. Participating
service providers must enroll all consumers participating in the
Affordable Connectivity Program in the NLAD, regardless of whether the
subscriber resides in a State that has opt-out status for the Lifeline
program. The Commission directs USAC to make changes to the NLAD that
are necessary to implement the rules and requirements that the
Commission adopts in the Report and Order and to give participating
service providers advance notice of any NLAD system changes for the
Affordable Connectivity Program so they can make corresponding changes
to their systems.
45. Eligible households can participate in both the Lifeline
program and Affordable Connectivity Program for the same or different
services. The Commission directs USAC to enable the NLAD to allow
subscribers to have separate identifiers for the Lifeline program and
the Affordable Connectivity Program, which can be associated with the
corresponding Lifeline provider or Affordable Connectivity Program
provider, as applicable.
46. Providers participating in the Affordable Connectivity Program
must submit to the NLAD, at the time of enrollment, the same types of
information that providers were required to submit to enroll households
in the EBB Program. The required information sufficiently identifies
the enrolled household for purposes of administering the program,
including duplicate checks and verifying the applicant's status as
alive, and provides information on the service, device, method of
verifying eligibility and household qualification for the higher Tribal
benefit level if applicable. Prior to transmitting subscriber
information to the NLAD, service providers must also comply with the
disclosure and consent requirements that the Commission adopts in the
Report and Order and must submit changes to subscriber information to
the NLAD within 10 business days.
47. Service providers are prohibited from enrolling or claiming ACP
support if USAC cannot verify a subscriber's status as alive unless the
subscriber provides documentation to demonstrate his or her status as
alive. The Commission directs USAC to explore additional ways to
improve the process, for example identifying and notifying service
providers about potentially deceased subscribers, and to conduct
program integrity reviews to ensure compliance with this requirement.
48. Coordination With Lifeline Opt-Out States. USAC and the three
Lifeline opt-out states of Texas, California, and Oregon have worked
together closely since the start of the EBB Program to streamline the
enrollment of Lifeline
[[Page 8354]]
subscribers in those states into the EBB Program by providing weekly
subscriber eligibility listing updates to USAC. To facilitate the
enrollment of qualifying households in these states into the Affordable
Connectivity Program, the Commission directs USAC to continue to work
with these three states to explore additional ways to streamline and
improve efficiency in the enrollment of Lifeline subscribers in these
states into the Affordable Connectivity Program. Consumers in the
Lifeline opt-out states can separately submit Affordable Connectivity
Program applications, but they still need to undergo the applicable
State eligibility processes.
4. Verifying Subscriber Eligibility and Identity
49. The Infrastructure Act maintained for the Affordable
Connectivity Program the three methods for verifying household
eligibility: The National Verifier, an approved service provider
alternative verification process, and school-based eligibility
verifications. Legacy EBB Program households who qualified under
eligibility criteria that are still applicable to the Affordable
Connectivity Program and households participating in Lifeline do not
need to submit a new application or new eligibility documentation to
participate in the Affordable Connectivity Program. However, existing
Lifeline subscribers who do not already participate in the EBB Program
will be required to affirmatively consent to participation in the
Affordable Connectivity Program pursuant to the consumer consent and
disclosure requirements outlined in the Order. Legacy EBB Program
households are not required to provide new consent to continue the same
service through the Affordable Connectivity Program with their current
provider, except as may be required for the applicable transition path
for that household.
50. National Lifeline Eligibility Verifier. The National Verifier
is a system of systems with connections to State and Federal
eligibility databases that can automatically check and confirm a
household's eligibility electronically, followed by manual review of
eligibility documentation for any applicants whose eligibility cannot
be verified using an automated data source. The National Verifier has
already been modified to make eligibility determinations based on the
eligibility criteria that were added (WIC and income at or below 200%
of the Federal Poverty Guidelines) and removed (substantial loss of
income since February 29, 2020) in the Infrastructure Act for purposes
of the Affordable Connectivity Program.
51. USAC's existing acceptable documentation guidelines must be
used where manual reviews are conducted. The Commission directs the
Bureau to coordinate with USAC to make changes to the documentation
criteria as necessary to administer the Affordable Connectivity Program
and promote program integrity.
52. The ACP Public Notice also sought comment on allowing
applicants for the Affordable Connectivity Program to verify their
identity through the last four digits of their social security number
or other approved identity documentation, as was permitted for the EBB
Program. See ACP Public Notice, 86 FR at 74045, para. 39. Many
commenters explained that this flexibility removed obstacles to
enrollment and resulted in additional consumers applying for the EBB
Program that would not have applied if they were required to provide
the last four digits of their social security number. The Commission is
persuaded that continuing this approach for the Affordable Connectivity
Program is justified because it supports increased program
participation. Therefore, the Commission allows consumers seeking to
apply for the Affordable Connectivity Program to verify their identity
through the last four digits of their social security number or other
approved identity documentation, and it encourages consumers to provide
the last four digits of their social security number because this
significantly reduces the time required for identity and eligibility
verifications.
53. The Bureau, in conjunction with USAC, has already developed
approval criteria for acceptable identity documentation, which include
a government-issued ID (such as a State ID), passport, U.S. driver's
license, U.S. military ID, or Individual Taxpayer Identification
documentation. The Commission directs the Bureau to coordinate with
USAC to make changes to the identity documentation requirements as
necessary to administer the program and promote program integrity and
the Commission directs the Bureau to work with USAC to explore whether
other systems or databases could be used to verify the identity of
consumers who provide alternative documentation instead of the last
four digits of their social security number.
54. The Commission does not allow any third party, whether a
service provider or neutral third party entity, to remotely submit an
Affordable Connectivity Program application on behalf of a consumer who
is not physically present with the party providing assistance. Where
the National Verifier is used to conduct eligibility verifications,
prospective subscribers must interact directly with the National
Verifier. Third parties can assist households with completing a paper
or online application, provided that the applicant is physically
present and certifies and signs the application.
55. Eligible households may experience difficulty accessing or
navigating the National Verifier on their own, and may require
assistance to complete and submit applications for the Affordable
Connectivity Program. It may be beneficial to provide access to the
National Verifier to a limited number of neutral, trusted third party
entities, such as schools and school districts, or other local or State
government entities, for purposes of assisting consumers with
completing and submitting an application for the Affordable
Connectivity Program, provided that the consumer is physically present
with the person providing assistance. The Commission directs the
Bureau, in coordination with USAC, to conduct a one year test pilot for
granting State or Tribal entity representatives access to the National
Verifier for purposes of assisting customers with applying for the
Affordable Connectivity Program. Consistent with current practice in
the Lifeline program, those that are granted access to the National
Verifier in this Pilot will be required to register in the
Representative Accountability Database (RAD). Government entities
participating in this Pilot (such as schools) may enter into
partnerships with neutral non-profit organizations for purposes of
raising awareness about the Affordable Connectivity Program and
increasing the enrollment of eligible households, provided that the
government entity informs the Bureau that it is partnering with a
specific non-profit organization, access to the National Verifier
through the Pilot is limited to actual representatives of the
participating government entity, and enrollment activities through the
National Verifier take place in the government entity's facility or
other location maintained or operated by the government entity.
Entities participating in this Pilot (and their neutral non-profit
partners as applicable) must maintain neutrality with respect to ACP
participating providers when assisting consumers in connection with
this Pilot. The Bureau shall determine the scope of this Pilot, and the
process for identifying potential participants. The Bureau may issue
public notices or
[[Page 8355]]
engage with stakeholders as needed to obtain information necessary to
establish this Pilot, and may make any necessary changes to the
National Verifier to conduct the Pilot. Consistent with the current
enrollment processes, the Bureau shall make sure that appropriate
safeguards are in place for the Pilot to protect applicant's personally
identifiable information. At the completion of the Pilot, the Bureau
will send a report to the Commission summarizing the results of the
Pilot.
56. Eligibility Verifications Through Approved Service Provider
Alternative Verification Processes. As with the EBB Program, Affordable
Connectivity Program providers using an approved alternative
verification process must keep all documentation provided to them from
the applicant used to make eligibility determinations for the document
retention period specified herein.
57. School-Based Eligibility Verifications. Service providers
relying on school-based eligibility verifications must collect and
retain documentation of (1) the school providing the information; (2)
the program(s) that the school participates in; (3) the household that
qualifies (and qualifying student(s)) and (4) the program(s) the
household participates in). Service providers must obtain parental
consent for school-based eligibility verifications. The Commission
directs USAC to conduct quarterly program integrity reviews to ensure
that households enrolled based on school-based eligibility verification
process are eligible for the ACP benefit.
5. Household Usage Requirements
58. Non-Usage Period and Cure Period. The Commission adopts the
Lifeline usage rules for the Affordable Connectivity Program. Under
these rules, where a provider does not assess or collect a monthly fee
from the subscriber for the supported service, the subscriber must use
their service at least once every 30 days, and after 30 consecutive
days of non-usage, the provider is required to notify the consumer that
they will be de-enrolled if they do not cure their non-usage in 15
days. The Commission requires de-enrollment of ACP subscribers for non-
usage. Providers are prohibited from claiming support for a subscriber
who has not used their service in the last consecutive 30 days unless
the subscriber cures their non-usage within 15 days.
59. The 30-day usage and 15-day cure period for the Lifeline
program, for non-use of services where the end-user is not assessed and
does not pay a fee, sufficiently balance consumer interests and fiscal
responsibility for purposes of the Affordable Connectivity Program. The
Commission also finds that there are significant benefits to applying a
uniform subscriber usage requirement for both the Lifeline program and
the Affordable Connectivity Program. Having inconsistent usage rules
for Lifeline and the longer-term Affordable Connectivity Program would
likely result in significant consumer confusion and complicate provider
compliance given that many households will participate in both programs
and certain households may use both benefits on the same service. Where
a household uses a Lifeline benefit and an affordable connectivity
benefit for the same service from the same provider, to avoid consumer
confusion, upon the effective date of the subscriber usage requirements
for the Affordable Connectivity Program, the provider should track each
subscriber's non-usage using the same rolling 30-day period that it is
using to track the subscriber's usage for Lifeline.
60. The Commission declines to limit the subscriber usage
requirements to free-to-the-end-user wireless service because that
approach would arbitrarily distinguish between free-to-the-end-user
wireline and wireless service, while still allowing service providers
to continue receiving an ACP benefit for free-to-the-end-user service
where the subscriber is not actually using their service. The
subscriber usage requirements apply to all modalities of free-to-the-
end-user ACP service.
61. If the participating provider bills a subscriber on a monthly
basis and collects or makes a good faith effort to collect any money
owed within a reasonable amount of time, the subscriber will not be
subject to the usage requirements. Participating providers that fail to
take such steps and do not de-enroll subscribers pursuant to the non-
usage requirements the Commission adopts for the Affordable
Connectivity Program may be subject to enforcement action or
withholding of support.
62. Definition of Usage. The Commission adopts the definition of
usage under the EBB Program and Lifeline for the Affordable
Connectivity Program. This definition lists other activities, aside
from the subscriber's actual use of the supported free-to-the-end-user
service, that are considered ``usage'' for purposes of the subscriber
usage requirement. The Commission does not expand the list of
activities that constitute usage to include activation of a modem
because the activation of a modem without actual usage is not a strong
indicator of a subscriber's intention to use their service and the risk
of waste is too great to justify the expansion of the definition of
``usage'' to include simply activating a modem without actual use of
the supported service.
63. Usage Tracking and Documentation Requirements. Service
providers are responsible for tracking subscriber usage and retaining
appropriate usage documentation for purposes of compliance with the
non-usage requirements of the Affordable Connectivity Program. The
Commission directs the Bureau, the Office of Managing Director (OMD),
and USAC to continue to use audits and program integrity reviews to
monitor participating provider compliance with the subscriber usage
requirements.
64. Annual Subscriber Recertification Requirement. The Commission
adopts an annual (i.e., once per calendar year) recertification
requirement to ensure the continued eligibility of participating
households. ACP subscribers will be given 60 days to respond to a
recertification effort. Subscribers who do not respond or fail ACP
recertification shall be de-enrolled.
65. ACP households who are also enrolled in Lifeline may rely on
their Lifeline recertification for purposes of the annual
recertification requirement for the Affordable Connectivity Program,
which will reduce administrative burdens for ACP households and
participating service providers. Where a household enrolled in both
Lifeline and the Affordable Connectivity Program does not respond or
fails recertification for Lifeline, the subscriber will still have an
opportunity to demonstrate their continued eligibility for the
Affordable Connectivity Program. The Commission also directs USAC to
identify and implement ways to coordinate consumer recertification
outreach for the two programs to minimize consumer response burdens and
reduce the potential for consumer confusion.
66. For purposes of the annual recertification requirement,
consistent with the approach in Lifeline, USAC will conduct
recertifications for ACP subscribers whose eligibility was verified
through the National Verifier processes and for whom the automated
database connections in the National Verifier will be used whenever
possible to recertify eligibility. The Commission directs USAC to make
available an online form, paper form, and Interactive Voice Response
(IVR) option for recertifying the eligibility of ACP subscribers whose
eligibility cannot be verified through the National Verifier automated
database connections. For
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USAC-conducted recertifications, USAC will be responsible for de-
enrolling subscribers who do not respond or fail ACP recertification.
For USAC-conducted subscriber recertifications, the Commission directs
USAC to develop processes to inform participating providers about the
status of USAC's recertification efforts and results for their specific
ACP subscribers.
67. For households who enrolled in the Affordable Connectivity
Program based on an approved alternative verification process or
school-based eligibility verification, service providers will be
required to conduct the subscriber recertification. For households
enrolled in both Lifeline and the Affordable Connectivity Program, for
purposes of recertifying eligibility for Lifeline, subscribers can only
be recertified through the National Verifier or State process for the
Lifeline NLAD opt-out states as applicable. Where the National Verifier
did not initially verify subscribers' eligibility (such as where a
provider's approved alternative verification process includes
eligibility criteria that are unique to the provider's low-income
program or where the provider, but not USAC, has already established a
process with specific schools to verify subscriber eligibility based on
participation in a free and reduced price school lunch or breakfast
program) but the service provider decides to stop using these non-
National Verifier methods to verify subscriber eligibility, the service
provider shall notify USAC of that decision and USAC will recertify the
impacted subscribers. Service providers conducting recertification
based on these non-National Verifier subscriber eligibility
verification methods are required to collect and retain the necessary
subscriber eligibility documentation. In addition, where service
providers conduct subscriber recertifications for the Affordable
Connectivity Program, they must de-enroll subscribers who do not
respond or are no longer eligible.
68. For purposes of this annual recertification requirement, new
ACP subscribers who enrolled on or after December 31, 2021, will not be
required to recertify their ACP eligibility until 2023. Legacy EBB
subscribers who transitioned to the Affordable Connectivity Program
will need to recertify their eligibility for the ACP by December 31,
2022. Legacy EBB Program subscribers who qualified for the EBB Program
based on substantial loss of income or a provider's COVID-19 Program
and already demonstrated their ACP eligibility before the end of the
60-day transition period will not be required to recertify for purposes
of the Affordable Connectivity Program requirements again until 2023.
6. De-Enrollments
69. The Commission adopts for the Affordable Connectivity Program
the same de-enrollment rules it adopted for the EBB Program and the
Lifeline program, and continues to allow USAC to directly process de-
enrollment requests from subscribers. For general de-enrollments and
de-enrollments for duplicative support, service providers must process
the de-enrollment within five business days after the expiration of the
subscriber's deadline to demonstrate eligibility, or within five
business days of notification from the Administrator that the
subscriber is receiving more than one benefit per household. For de-
enrollments initiated by the subscriber, the service provider must de-
enroll the subscriber within two business days after the de-enrollment
request.
70. ACP households who are subject to the usage requirement and do
not cure their non-usage within 15 days must be de-enrolled, and
subscribers who do not respond or fail recertification must also be de-
enrolled. For de-enrollments for no response or failure to recertify,
service providers must de-enroll the subscriber within five business
days of the subscriber's time to respond to the recertification
efforts. As with Lifeline and the EBB Program, when a service provider
de-enrolls a subscriber from the Affordable Connectivity Program, the
service provider must transmit to the NLAD the date of the Affordable
Connectivity Program de-enrollment within one business day of de-
enrollment.
C. Covered Services and Devices
71. Services. The Infrastructure Act permits eligible households
participating in the Affordable Connectivity Program to receive a
discount off the cost of broadband service and certain connected
devices, and participating providers to receive a reimbursement for
providing such discounts. The Infrastructure Act defines ``internet
service offering'' as broadband internet access service provided to a
household by a broadband provider, and retains the definition of
broadband internet access service provided in 47 CFR 8.1(b). The
Infrastructure Act further provides that the ``affordable connectivity
benefit'' means a ``monthly discount for an eligible household applied
to the actual amount charged to such household.'' The Commission
interprets the Infrastructure Act's reference to a ``monthly discount .
. . applied to the actual amount charged'' to exclude broadband service
products that are based primarily on the data allowance of the product
(for example, a purchase of 1 GB of data for $5.00) and are sold
separate from a monthly recurring service plan. The Infrastructure
Act's application of the affordable connectivity benefit as a monthly
discount off the actual amount charged to the subscriber means that
service plans that are already offered with no fee to the end user--for
example, as a result of Lifeline program support or other benefit
programs--are not eligible for additional or duplicative support from
the Affordable Connectivity Program.
72. The Infrastructure Act adds a requirement that a participating
provider ``shall allow an eligible household to apply the affordable
connectivity benefit to any internet service offering of the
participating provider, at the same terms available to households that
are not eligible households.'' The Commission interprets ``any internet
service offering,'' for any particular customer, to include any
broadband internet plan in which the customer is currently enrolled
(regardless of whether it is a legacy grandfathered plan) as well as
any broadband internet plan that a provider currently offers to new
customers. The requirement that legacy or grandfathered plans be
eligible for reimbursement does not require that providers offer such
legacy or grandfathered plans to other customers, including ACP-
eligible customers, that are not already on such plans. However,
providers may not exclude any of their generally available or actively
sold internet service offerings from the affordable connectivity
benefit.
73. Due to the volume and unique complexities of coding and
including legacy or grandfathered plans in the Affordable Connectivity
Program, the Commission finds that providers should have an additional
60 days after publication of the Order in the Federal Register to
complete necessary changes and ensure that the affordable connectivity
benefit can be applied to all generally available and currently sold
plans. While providers must also allow existing subscribers to apply
the affordable connectivity benefit to legacy or grandfathered plans,
the Commission considers this requirement satisfied if providers
accommodate requests by existing subscribers to apply the affordable
connectivity benefit to legacy or grandfathered plans on a case-by-case
basis no later than 60 days after the request.
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74. Taxes and governmental fees may be included as part of the
reimbursable internet service offering, since they are part of the
``amount charged'' to a consumer. By allowing the benefit to be applied
to taxes and governmental fees, providers can extend to consumers $30
``all-in'' broadband offers that include taxes and governmental fees
and can avoid charging small bills for taxes and fees alone.
75. The Commission finds that the Infrastructure Act's requirement
that providers allow an eligible household to apply the Affordable
Connectivity Program benefit to ``any internet service offering of the
participating provider, at the same terms available to households that
are not eligible households'' does not preclude providers from making
internet service offerings that are only available to ACP subscribers,
provided that that the terms are at least as good as plans that are
available to non-eligible households, and that providers cannot prevent
subscribers from applying the affordable connectivity benefit to other
available internet service offerings or restricting such internet
service offerings in any way. However, to ensure minimal disruption to
existing billing systems and processes, the Commission declines to
require that providers participating in the Affordable Connectivity
Program make available plans not available in a given geographic area
that they offer elsewhere.
76. The Commission will collect data on the service plan
characteristics--such as upload and download speeds, data allowances,
and co-payment--associated with a subscriber's service plan, so it can
gauge whether the Affordable Connectivity Program is providing value to
households beyond what the Lifeline program offers and whether that
value is in-line with market rates for broadband services, due to the
immense value such data could provide. The Commission directs the
Bureau and the Office of Economics and Analytics (OEA), with support
from USAC, to determine appropriate avenues to collect service plan
characteristics, such as possible future modifications to NLAD or
conducting a provider survey, and the specific information that service
providers must submit. The Commission directs the Bureau and OEA to
balance the value of the information collected against the burden to
service providers and must limit their efforts to those necessary to
carry out the purposes of the Affordable Connectivity Program.
Consumers would benefit from knowing which providers offer plans fully
covered by the household discount and the availability of such plans in
their area, so, the Commission directs USAC to make available, where
possible, information about the availability of plans fully covered by
the household discount. In doing so, USAC should consider planned
information collections as well as other avenues for collecting this
information while minimizing burden to providers.
77. Minimum Service Standards. Congress intended that ``any
internet service offering'' be eligible for support in the Affordable
Connectivity Program, 47 U.S.C. 1752(b)(7), and imposing minimum
service standards would contradict the Infrastructure Act. Internet
service offerings must include a broadband connection (as defined in 47
U.S.C. 1752(a)(8))--fixed or mobile--that permits households to rely on
these connections for the purposes essential to telework, remote
learning, and telehealth.
78. Bulk purchasing arrangements and Multiple Dwelling Units
(MDUs). Eligible households that live at a single address, such as
senior and student living, mobile home parks, apartment buildings, and
Federal units, and that receive service as part of a bulk billing
arrangement where the households are not directly billed for services
by their internet service provider, but instead pay a monthly fee for
broadband services to their landlord, should be permitted to
participate in the Affordable Connectivity Program. In those
situations, the participating provider claiming reimbursement must
retain documentation demonstrating that the amount claimed by the
provider is fully passed through to the eligible household as a
discount off the monthly price that the eligible household otherwise
would have paid to the bulk purchaser. Providers are required to retain
documentation demonstrating the identity of the entity or entities
through which the discount was passed, the eligible households who
received the service, and consent by the eligible household allowing
the participating provider to seek reimbursement. Homeless shelters,
school districts, and libraries can also be considered bulk purchasers
and allowed in the Affordable Connectivity Program, provided that the
arrangements are set up in compliance with this Order.
79. Reimbursement will be permissible in MDUs--as it is with the
typical provider/household relationship--where applying the affordable
connectivity benefit to the household's broadband bill will result in
the household not having a cost for broadband. In cases where the
household does not pay a fee for the service, either to the provider or
a bulk purchaser/aggregator, but the fee is paid by another entity, the
service cannot be claimed for Affordable Connectivity Program support.
However, if the household stops having the third party pay for the
household's bill and instead seeks the discount through the Affordable
Connectivity Program, the provider may seek reimbursement for the
service.
80. In many cases, an MDU such as a large apartment building may
have Wi-Fi deployed to an entire building as the broadband internet
available to its residents. Such service qualifies as broadband
internet access service eligible for reimbursement in the Affordable
Connectivity Program, but eligible households must be charged a monthly
fee for such service to be reimbursable.
81. A certification by the bulk purchasing entity that the discount
from the service provider is fully passed through to the eligible
households located in the MDU is not sufficient to demonstrate
compliance with program rules. Documentation serves a critical role to
protect against abuse in the program, and documentation requirements
are particularly important where there is not a direct relationship
between the broadband provider and the eligible household. The
Commission therefore declines to allow a certification from the bulk
purchaser as evidence that the discount has been passed through to the
eligible household.
82. Bundled Service Offerings. Bundled service offerings such as
those offering voice, data, and texting could be eligible for the
affordable connectivity benefit, but the full benefit will not be
allowed to be applied to the full price of broadband-bundled video
service. While reimbursement cannot go toward the whole value of a
bundle that includes video, the data, voice, and/or text messaging
portions of the bundle can be reimbursable, but the video portion of
any bundle must be apportioned out before determining the amount that
is reimbursable for broadband purposes of the Affordable Connectivity
Program. Fixed and mobile bundled services can be supported by the
Affordable Connectivity Program, with the understanding that households
with such bundles will only be entitled to a single benefit.
83. Associated Equipment and Other Customer Premises Equipment. The
affordable connectivity benefit discount must be provided for internet
service and associated equipment necessary for the transmission
functions of the supported internet service offering,
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including monthly rental costs for equipment such as modems, routers,
and hotspot devices and antennas. Associated equipment should be
eligible to be reimbursed as part of the service benefit.
84. Connected Devices. A participating provider that provides an
ACP-supported broadband service to a household may be reimbursed up to
$100 for a connected device delivered to the household, provided that
the charge to such eligible household is more than $10 but less than
$50 for such connected device (defined in the statute as a laptop,
desktop computer, or a tablet). Because the statute does not include
cellular phones or smartphones in the definition of ``connected
devices,'' a connected device cannot include devices that can
independently make cellular calls such as large phones or ``phablets.''
85. Minimum System Requirements for Connected Devices. A connected
device supported by the Affordable Connectivity Program must support
video conferencing platforms and other software essential to ensure
full participation in online learning, be Wi-Fi enabled, have video and
camera functions, and be accessible to and usable by those with
disabilities. The device must be able to connect to all Wi-Fi access
points and cannot be limited to use with any specific service provider.
86. Application of Section 54.10. The requirements of 47 CFR 54.10
apply to the Affordable Connectivity Program. Thus, Affordable
Connectivity Program funds cannot be used to purchase or obtain a
connected device (i.e., laptop, desktop computer, or tablet) that is on
a Covered List--i.e., ``poses an unacceptable risk to the national
security of the United States or the security and safety of United
States persons.'' 47 CFR 1.50002(b)(1). Providers must certify that the
connected device that they are seeking reimbursement for complies with
47 CFR 54.10.
D. Reimbursement
1. Reimbursement for the Affordable Connectivity Benefit
87. The Commission adopts in its rules the Infrastructure Act's
$30.00 standard monthly discount and reimbursement rate. To be
reimbursed, providers are required to submit a reimbursement request
based on the number of subscribers enrolled in NLAD on the snapshot
date. Providers must review the snapshot report, validate the
subscribers for which they are requesting reimbursement, indicate a
reason for any unclaimed subscribers, and review, correct, and certify
the requested reimbursement amount. The Commission will use the
Lifeline Claims Systems to manage the reimbursement process for the
Affordable Connectivity Program and will apply the uniform snapshot
date approach for capturing the subscribers enrolled in NLAD on the
first of the month that are eligible to be claimed for that month. The
Commission declines to permit partial month, pro-rated reimbursement at
this time.
88. The Commission requires that, when applying the affordable
connectivity benefit to a Lifeline service, providers first apply the
full Federal Lifeline subsidy and then the Federal affordable
connectivity benefit. States may offer their own Lifeline and/or other
broadband affordability benefits, and the Commission will defer to any
State on how that additional benefit should be applied in conjunction
with the Federal affordable connectivity benefit.
89. To ensure that providers have sufficient time to submit
certified reimbursement claims and USAC can administer the program
efficiently, providers are allowed six months from the uniform snapshot
date, or the following business day in the event six months falls on a
weekend or holiday, to submit to USAC their certified reimbursement
claims for both service and connected device support for households
captured on the snapshot report.
90. Providers may submit upward revisions to their certified claims
within the same six-month time period after the snapshot date that
certified reimbursement claims are due. Providers must disclose non-
compliant conduct and return improperly received funds from this
Program to the Commission and can submit downward revisions beyond the
six-month time period. Moreover, providers cannot delay contacting USAC
about the need to repay improperly received funds or downwardly revise
their claims if they become aware of an improper payment.
91. The Commission delegates to the Bureau and OMD the authority to
establish a different timeline to submit certified reimbursement claims
and revisions to such claims as a result of projections and forecasts
of when the Affordable Connectivity Fund is winding down or to the
extent necessary to comply with government-wide Federal financial
statutes and/or U.S. Treasury procedures. See, e.g., 31 U.S.C. 3528;
see also 47 CFR 0.11(a)(3)-(4), (a)(8) (scope of OMD's delegated
authority); 47 CFR 0.5(e) (requiring Bureau and Office coordination
with the Office of the Managing Director on recommendations ``that may
affect agency compliance with Federal financial management
requirements'').
92. Tribal Lands Benefit. The Affordable Connectivity Program
retains the enhanced, $75.00 per month subsidy for eligible households
located on Tribal lands. The Commission uses the same definition of
Tribal lands as used in the Lifeline and EBB Programs, including
certain lands near the Navajo Nation treated as Tribal lands. Existing
USAC processes will be used to verify eligibility of households on
Tribal lands. The definition of Tribal lands from Lifeline includes any
land designated as such pursuant to the designation process in 47 CFR
54.412.
93. The Infrastructure Act provides for a separate enhanced benefit
for households that are served by providers in high-cost areas. 47
U.S.C. 1752(a)(7)(B). The Commission seeks comment on the
implementation of this enhanced benefit in the Further Notice of
Proposed Rulemaking.
94. Certification Requirements. The Infrastructure Act requires
providers to certify that each household for which the provider is
seeking reimbursements will not be charged an early termination fee if
it later terminates a contract, that each household was not subject to
a mandatory waiting period, and that each household will be subject to
a participating provider's generally applicable terms and conditions.
Providers are also required to certify that each household for which
the provider is claiming reimbursement for a connected device discount
has been charged the required co-pay. Providers claiming a household
whose eligibility was determined by the provider's alternative
verification process must also certify that such households were
verified by a process that was designed to avoid waste, fraud and
abuse. The Commission requires that these certifications accompany each
request for reimbursement by participating providers, that each
certification be submitted under penalty of perjury, and that the
provider it has not charged and will not charge the household for the
amount the provider is seeking for reimbursement. The Commission
directs USAC to make any adjustments necessary to the LCS to ensure
that providers are prompted to certify the statements included in 47
U.S.C. 1752(b)(6).
2. Reimbursement for Connected Devices
95. A provider may not receive reimbursement for more than one
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connected device per household, 47 U.S.C. 1752(b)(5), and a household
that received a connected device through the EBB Program may not
receive another through the Affordable Connectivity Program.
96. A market value-based approach will be used for reimbursement of
connected devices, with the enhanced accountability requirements
discussed following. Under the market-based approach, providers may be
reimbursed up to the statutory $100 limit, provided that the amount of
reimbursement together with the co-pay does not exceed the market value
of the connected device. 47 U.S.C. 1752(b)(5). Providers that seek
device reimbursement through the Affordability Connectivity Program
will be required to submit device characteristics as well as
characteristics and retail price information about analogous devices.
The price information from at least one of these analogous devices must
be available from a major retailer, such as Amazon, Apple, B&H, BJ's,
Barnes and Noble, Best Buy, Lenovo, Micro Center (Micro Electronics),
Microsoft, Newegg, Office Depot, Office Max, Sam's Club, Samsung,
Staples, Target, TigerDirect, and Walmart (not including third-party
sellers on any of these retailers' websites). If a provider is unable
to submit such information about comparable products, it will be
required to substantiate its claim for the market value.
97. Providers seeking to claim reimbursement for connected device
discounts must submit information regarding the device supplied to the
household prior to claiming reimbursement for a connected device. The
provider must submit information to USAC about device type, device
make, device model, device characteristics (e.g., screen size, storage,
memory), subscriber ID of the household that received the device, date
the device was delivered to the household, method used to provide the
device (shipped, in store, or installed by provider), market value of
the device, amount paid by the household to the provider for the
device, and supporting documentation. The Commission also directs USAC
to adjust the reimbursement amount for any connected device claim if
the market value asserted by the provider does not reflect market value
as compared to analogous devices offered by other participating
providers or publicly available information.
98. Providers seeking reimbursement for a connected device must
certify, under penalty of perjury, that the reimbursement claim for the
connected device plus the co-pay amount collected from the customer
does not exceed the device's market value. In addition, providers are
required to retain any materials that document compliance with these
requirements and demonstrate the accuracy of the information provided
to USAC and make them available for inspection upon request.
99. Participating providers must actually charge the household a
co-payment of more than $10 but less than $50 before they can receive
reimbursement of up to $100 for a connected device. Providers are
required to retain documentation proving that the eligible household
made a compliant financial contribution towards the cost of the
connected device, as well as the amount thereof, before the provider
seeks reimbursement. Providers must update their election notices to
include information on device type, device make, device model, and
wholesale cost of the device. Proof of consumer payment of the
appropriate co-pay amount must be provided upon request by USAC, the
Bureau, the Enforcement Bureau (EB), or any other program auditor or
investigator.
100. A provider may seek reimbursement for a connected device
provided to a household that had been receiving an ACP-supported
service from that provider at the time the device was supplied to the
household, even if the household subsequently transfers its ACP service
benefit to a different provider. The Commission directs USAC to
maintain the connected device dispute process implemented for the EBB
Program.
E. Consumer Protection
1. Credit Check Prohibition
101. The Infrastructure Act prohibits providers from ``requir[ing]
the eligible household to submit to a credit check in order to apply
the affordable connectivity benefit.'' 47 U.S.C. 1752(b)(7)(A)(ii). The
Commission finds that this provision bars providers from considering
the results of a credit check before deciding to enroll a household in
the Affordable Connectivity Program, but it does not prohibit a
provider from running credit checks that are routinely used as part of
the provider's sign-up process for all consumers. Providers may not use
credit check results to determine to which ACP-supported internet
service plan an eligible household can apply their affordable
connectivity benefit, to restrict the type of plans available to a
household, or to decline to transfer a currently enrolled household's
affordable connectivity benefit.
102. The Infrastructure Act does not prevent providers from running
a credit check or from using the results of the credit check in other
circumstances unrelated to the affordable connectivity benefit. The
credit check provision does not prohibit providers from relying on the
results of a credit check for an ACP-eligible household to determine
the devices and equipment not supported by the Affordable Connectivity
Program that may be offered to the household. The statute does not
prohibit providers from using credit checks to determine a household's
eligibility to access bundled services so long as the credit check is
used to determine eligibility to receive the service that is not
eligible for the affordable connectivity benefit and the household can
receive the broadband component of the bundle on a standalone basis
regardless of the results of the credit check. Finally, the
Infrastructure Act's credit check provision should not be interpreted
as preventing providers from running a credit check consistent with the
requirements of the Federal Trade Commission's ``Red Flag Laws.''
2. Non-Payment
103. The Infrastructure Act specifies that ``a participating
provider [may] terminat[e] the provision of broadband internet access
service to a subscriber after 90 days of nonpayment.'' 47 U.S.C.
1752(b)(7)(A)(ii). The 90 consecutive days of non-payment commences on
the due date of the bill where payments made after that point for ACP-
supported services would be past due. A bill is not considered
``unpaid''--and thus, there is no ``nonpayment''--until after the
payment due date specified on the bill has passed and the subscriber
has failed to satisfy the obligation to pay the bill in a timely
manner. Accordingly, for purposes of 47 U.S.C. 1752(b)(7)(B), the 90-
day period of ``nonpayment'' begins on the due date specified on the
bill when the bill may be deemed ``unpaid'' and late fees may begin to
accrue. This provision does not apply to prepaid plans because prepaid
customers do not receive invoices and are not expected to pay at
monthly intervals.
104. The Commission interprets the provision that allows providers
to terminate service after 90 days of non-payment, in conjunction with
the requirement that providers cannot decline to enroll an eligible
household based on any ``past or present arrearages with a broadband
provider,'' to mean that although a provider may terminate a
household's broadband service after
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90 days of non-payment, the provider cannot deny a household's re-
enrollment based on past or present arrearages. When providers re-
enroll ACP households whose service is terminated for non-payment, they
may limit the offerings made available to the household to offerings
that would be fully covered by the affordable connectivity benefit and
any other applicable benefit, such as Lifeline, will protect consumers
and providers by limiting the accrual of any additional ACP-related
debt. Households that are downgraded from their current grandfathered
or legacy plan must be permitted to return to that grandfathered or
legacy plan at a later time. However, a provider may decline to return
a household to a grandfathered or legacy plan if the provider would
have been within its rights to remove the household from that plan
irrespective of that household's participation in Affordable
Connectivity Program. Limiting the plans available to a household as
described here would not constitute inappropriate downselling.
105. The Commission clarifies that the termination for non-payment
is limited to debts associated with any out-of-pocket expenses for the
ACP-supported service, and providers should not consider any non-
payment associated with non-ACP supported services, EBB-supported
service, or other debt that predates the Affordable Connectivity
Program.
106. Providers may downgrade a household to a lower-priced service
plan once the consumer enters a delinquent status after the bill due
date to mitigate the non-payment amount upon advance notice to the
household of the change in service. Such a transfer of a household in
non-payment status to a lower-priced service plan in order to mitigate
the non-payment does not constitute inappropriate downselling.
107. A provider must take apply the affordable connectivity benefit
to a household's account no later than the start of the first billing
cycle after the household's enrollment. A provider must pass through
the discount in order to claim reimbursement for the discount in the
Affordable Connectivity Program. Providers may not, for example, charge
a customer for the internet service offering, certify a claim for
reimbursement, and then later provide the discount to the customer only
after receiving the reimbursement. Failure to comply with these rules
may result in administrative forfeitures or other penalties.
108. A provider cannot de-enroll a household for non-payment if the
provider has failed to timely apply the benefit to the household's bill
consistent with this Order. To track households that could be de-
enrolled for non-payment associated with the ACP-supported service, as
well as to support tracking households which would be subject to the
non-usage rules, the Commission directs USAC to collect from providers
information regarding whether a household is assessed and charged a fee
for the ACP-supported service. Providers must certify, under penalty of
perjury, that the affordable connectivity benefit was in fact applied
to the households for which the provider is submitting a claim for
reimbursement. Providers must document and retain proof that the
program benefit was in fact applied to the household's account prior to
the provider submitting a claim for reimbursement for that household.
109. Participating providers must give adequate notice to a
household of their delinquent status before terminating the household's
service for non-payment. The provider must provide the household
written notice of the possible termination 60 and 30 days prior to the
termination date, which must be set from the due date of the bill. The
written notice must include the balance due to the provider, the due
date for the outstanding balance, the last date of service if the
outstanding balance is not paid, instructions for payment, and the
provider's customer service phone number. Notice must also be provided
in formats accessible to individuals with disabilities, and may be
delivered via email, mail, billing insert or statement, or text
message. Providers must retain documentation of notice sent to the
household before the household is disconnected for non-payment.
Households that dispute an allegation of non-payment with the provider
may file a complaint with the FCC's Consumer Complaint Center.
3. Consumer Complaint Process
110. Dedicated ACP Complaint Process. The Infrastructure Act
requires the Commission to establish a dedicated complaint process for
Affordable Connectivity Program participants to file complaints about
the compliance of participating providers with program rules and
requirements, including complaints ``with respect to the quality of
service received under the Program.'' 47 U.S.C. 1752(b)(9)(A). The
Commission is adding a dedicated pathway within its existing consumer
complaint process in the Consumer Complaint Center to file ACP-related
complaints, including notification to providers that the complaint
involves the Affordable Connectivity Program, clear direction to
consumers on how to correctly file an ACP complaint, and dedicated FCC
staff from Consumer and Governmental Affairs Bureau (CGB) to review and
process the complaints.
111. Provision of Information on the Dedicated ACP Complaint
Process. The Infrastructure Act also requires participating providers
to provide Affordable Connectivity Program participants with
information on the Commission's dedicated complaint process. 47 U.S.C.
1752(b)(9)(B). The Commission requires participating providers to
prominently display the Commission's contact center phone number and
the website address for the Consumer Complaint Center on the
subscriber's bill and on the provider's ACP web page. The Commission
also requires participating providers to inform consumers of their
right to file a complaint with the Commission regarding an ACP-
supported service or any difficulty enrolling with the provider.
Participating providers must provide this information to ACP consumers
in the formats proposed in the ACP Public Notice. ACP Public Notice, 86
FR at 74043, para. 87 Reports Regarding Consumer Complaints. The
Infrastructure Act also requires the Commission to regularly issue
public reports regarding consumer complaints alleging provider non-
compliance with the Affordable Connectivity Program rules. 47 U.S.C.
1752(b)(9)(D). The Commission directs CGB, in coordination with the
Bureau, to regularly issue public reports regarding consumer complaints
alleging provider non-compliance with ACP rules, to make these reports
available to the public via the FCC website, and, in coordination with
the Bureau and the Senior Agency Official for Privacy, to ensure that
any personally identifiable information (PII) be excluded from
complaint reports and data made publicly available to ensure compliance
with the Privacy Act, 5 U.S.C. 552a.
112. Investigations and Enforcement. The Infrastructure Act also
requires the Commission to act expeditiously to investigate potential
violations of program rules and requirements and enforce compliance,
and it permits the Commission to impose forfeiture penalties to enforce
compliance. 47 U.S.C. 1752(b)(9)(C)(i)-(ii). The Commission will use
its existing, statutorily permitted enforcement powers to initiate
investigations of program rule violations and directs EB, in
coordination with the Bureau and law enforcement as applicable, to
expeditiously investigate potential violations of and enforce the ACP
rules.
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4. Additional Consumer Protections
a. Administrative Procedure
113. The Infrastructure Act directs the Commission to promulgate
certain specific consumer protection rules ``after providing notice and
opportunity for comment in accordance with [5 U.S.C.] 553,'' which sets
forth the rulemaking requirements of the Administrative Procedure Act
(APA). 47 U.S.C. 1752(b)(11)(A). At the same time, 47 U.S.C. 1752(h)
provides an exemption from APA requirements for ``regulation[s]
promulgated under subsection (c),''and 47 U.S.C. 1752(c) requires that
the Commission ``promulgate regulations to implement'' these
requirements by a date ``not later than 60 days after enactment of this
Act'' and specifies initial comment and reply comment periods of 20
days each.
114. The Commission believes that there is no irreconcilable
conflict between these provisions and that, read together, they support
the adoption of the 47 U.S.C. 1752(b)(11) consumer protection rules
here. By referring to the APA specifically in 47 U.S.C. 1752(b)(11),
Congress intended to emphasize that the Commission should carefully
consider the input of commenters in crafting the consumer protection
rules. Given the tight, statutorily mandated timeframe for standing up
the Affordable Connectivity Program and the essentiality of consumer
protection rules to the proper functioning of the program, the
Commission finds that the notice and comment process the Commission has
provided, in accordance with 47 U.S.C. 1752(c), is sufficient to
satisfy the APA requirements in 5 U.S.C. 553(b). The ACP Public Notice
was published in the Federal Register on December 29, 2021 (see 86 FR
74036) and it contains the information specified in section 553(b)(1)-
(3), including detailed questions about the particular inappropriate
practices referenced in 47 U.S.C. 1752(b)(11). Given the requirements
in the Act to commence the rulemaking implementing the Affordable
Connectivity Program within five days of the enactment of the Act and
to adopt program rules within 60 days, and the inextricable
relationship between the consumer protection rules and the other
components of the program, the Commission finds that it has satisfied
the notice requirement in 5 U.S.C. 553(b), as well as the requirements
in 5 U.S.C. 553(c) to ``give interested persons an opportunity to
participate in the rule making through submission of written data,
views, or arguments'' and to ``consider[ ] the relevant matter
presented'' in those submissions when formulating the consumer
protection rules.
115. Moreover, in the alternative, to the extent the procedures
required by 47 U.S.C. 1752(c) cannot be squared with the process
required by 47 U.S.C. 1752(b)(11), the Commission finds ``good cause''
to depart from the standard APA notice and comment procedures because
placing the consumer protection rules on a delayed track would be
``impracticable, unnecessary, or contrary to the public interest.'' 5
U.S.C. 553(b)(3)(B). It would be impracticable and contrary to the
public interest to adopt consumer protection rules using procedures
that would operate more slowly than those the Commission use to adopt
the rules implementing other aspects of the Affordable Connectivity
Program. The consumer protection rules are among the core components of
the program, and allowing the rest of the program to take effect
without having the statutorily-mandated consumer protections in place
at the outset of the program would undermine the overall scheme. The
Affordable Connectivity Program will enable eligible consumers to apply
the Affordable Connectivity Benefit to ``any'' internet service
offering of a participating provider, 47 U.S.C. 1752(b)(7), and
consumers could effectively be denied that entitlement if participating
providers were allowed to engage in harmful business practices that
could trap consumers in poor service and deny households of the full
benefit and freedom to choose an appropriate service. See 47 U.S.C.
1752(b)(11)(A). Consistent with this determination, the Commission also
finds under the Congressional Review Act that there is good cause to
expedite the effective date of these rules and not to delay their
effective date for 60 days pending Congressional review. See 5 U.S.C.
808(2).
b. Consumer Protection Requirements Pursuant to 47 U.S.C. 1752(b)(11)
116. Upselling and Downselling. The Infrastructure Act requires the
Commission to promulgate rules prohibiting any inappropriate upselling
or downselling by a participating provider. 47 U.S.C.
1752(b)(11)(A)(i). Inappropriate upselling in the context of the
Affordable Connectivity Program is any business practice that pressures
a prospective or existing subscriber to purchase a service plan or
bundled plan in addition to or that is more expensive than what the
subscriber initially sought. For example, requiring a household to
select or switch to a higher-cost service plan with their existing
provider before the provider will enroll the household or before the
provider will apply the affordable connectivity benefit to the
household's account constitutes inappropriate upselling and is
prohibited. Similarly, if a provider offers a particular broadband
service offering either as part of a bundled plan with other services
or on a stand-alone basis, the provider may not require an eligible
household to purchase the bundled plan or any other services included
in the bundle as a mandatory condition in order to select that
broadband internet access service plan for purchase or application of
the affordable connectivity benefit. Nor may the provider exert
pressure on the household to purchase the bundled plan or the other
services included in such a plan, rather than the individual broadband
internet access service on a stand-alone basis. And even if a
particular type of modem, router, or other associated equipment is
technically necessary in order to use a specific type of broadband
internet access service, a participating provider may not compel or
pressure an eligible household to purchase or rent such equipment from
the provider in conjunction with selecting (or applying the benefit to)
that type of service if the needed equipment is also available from
other vendors and the household could opt to obtain it from someone
other than the provider.
117. However, communicating information regarding higher-speed or
higher-priced service tiers is not in itself prohibited upselling in
the absence of further evidence. In fact, given the monthly subsidy
available in the program, a fully informed consumer may choose to
subscribe to a more expensive plan that better meets the needs of the
household. To ensure that consumers are sufficiently informed of the
available options, the Commission requires providers to inform
prospective and current subscribers seeking to enroll in the Affordable
Connectivity Program or seeking to change service plans of all ACP-
supported plans available in the household's service area that are
fully covered by the affordable connectivity benefit. Such plan
information is required to be presented along with the required
disclosures a provider must present to households prior to enrollment,
described further following. The creation or promotion of new service
plans specially priced for eligible households in the Affordable
Connectivity Program does not constitute inappropriate upselling.
118. Inappropriate downselling in the context of the Affordable
Connectivity Program is any business practice that pressures a
subscriber to lower the
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quality of broadband service (such as reducing bandwidth or speed, or
adding or lowering data caps that would not meet the participating
household's needs) to the benefit of the provider rather than the
consumer. Not all downselling should be prohibited: Merely suggesting
or mentioning the availability of a lower-price service plan(s) that
would satisfy consumers' broadband needs is permitted. However, certain
practices may constitute inappropriate downselling and should be
prohibited to avoid potential consumer harm. Specifically, the
Commission prohibits a provider from requiring a prospective or current
household to change to a lower-cost service plan or to choose from a
set of specific low-cost service plans before permitting the household
to enroll in the program or before applying the affordable connectivity
benefit to the household's account. Inappropriate downselling also
includes business practices that aim to benefit the provider (such as
minimizing the provider's out-of-pocket expenses) with no actual
benefit to the consumer. For example, suggesting only low-quality
service plans with a low data cap or low speed simply to benefit the
provider and without regard to consumer need would be prohibited
inappropriate downselling.
119. Extended Service Contracts. The Infrastructure Act requires
that the Commission promulgate rules that would protect ACP consumers
from any inappropriate requirements that a consumer opt-in to an
extended service contract as a condition of participating in the
Affordable Connectivity Program. 47 U.S.C. 1752(b)(11)(A)(i). While not
all extended service contracts are prohibited in the Affordable
Connectivity Program, providers are prohibited from requiring agreement
to an extended service plan as a condition of receiving the affordable
connectivity benefit. An extended service contract is typically an
offer of service at a discount price in exchange for a commitment from
the subscriber to remain on that service plan for a set period of time,
usually at least a year. Typically, a breach of an extended service
contract would result in early termination fees. Congress recognized
that consumers should be able to apply the ACP benefit to any available
service plan and some participating providers offer plans with extended
service contracts. However, conditioning a household's enrollment in
the Affordable Connectivity Program or application of the program
benefit to the household's account on agreement to an extended contract
or continuing service with the provider is prohibited. Where an ACP
household elects an extended service contract, the Commission requires
the provider to notify the household that it may change its service at
any time without incurring an early termination fee, as such fees are
prohibited by the Infrastructure Act. 47 U.S.C. 1752(b)(6)(A)(i). In
addition, providers must disclose all material terms to ACP households
prior to enrollment, including but not limited to the price of service
and the conditions for breach.
120. Restrictions on Switching Service Offerings. The
Infrastructure Act requires the Commission to promulgate rules to
protect consumers from inappropriate restrictions imposed by a
participating provider on the consumer's ability to switch internet
service offerings. 47 U.S.C. 1752(b)(11)(A)(iv). The Commission
prohibits providers from imposing restrictions on switching internet
service offerings. However, it is not inappropriate for a provider to
limit a household that is in non-payment status to service plans
covered by the full benefit amount, as discussed preceding.
121. Restrictions on Switching Providers. The Infrastructure Act
also requires the Commission to promulgate rules to protect consumers
from any inappropriate restrictions by a participating provider on the
ability of the household to switch participating providers other than a
requirement that the household return customer premises equipment
provided by the participating provider. 47 U.S.C. 1752(b)(6)(A)(i)-
(iii). The Commission prohibits any provider practice that is
reasonably likely to cause a household to believe that they are
prohibited or restricted from transferring their benefit to a different
provider. Examples include, but are not limited to: Misrepresenting or
failing to accurately disclose to a household the rules and
requirements regarding transfers in the Affordable Connectivity Program
as set out further following; charging a fee to the household for
transferring their benefit to another provider; or suggesting that the
provider may change the consumer's service plan if they transfer their
benefit to another provider.
122. The Commission declines at this time to prohibit providers
from recouping any forgone reimbursements as a result of the consumer
transferring to another provider before the snapshot date for that
service month, but cautions that providers must not impose or threaten
to impose any fees or penalties to discourage or disincentivize a
consumer from transferring their ACP benefit. The Commission finds that
limiting subscribers to one transfer a month, coupled with the
strengthening of the consent and disclosure requirements related to
transfers, should reduce the number of unwanted transfers and will
empower consumers to make an informed decision about whether to
transfer their benefit. Therefore, the Commission finds that at this
time, preventing providers from recovering discounts that are unable to
be claimed solely as a result of the transfer is unnecessary to protect
consumers from the consequences of the transfer.
123. Unjust and Unreasonable Practices. The Infrastructure Act
requires the Commission to promulgate rules related to unjust and
unreasonable acts or practices that would undermine the purpose,
intent, or integrity of the Affordable Connectivity Program. 47 U.S.C.
1752(b)(11)(A)(v). To protect ACP households against service provider
activities that would undermine the purposes, intent or integrity of
the Affordable Connectivity Program, the Commission requires providers
to enroll an eligible household as soon as practicable once the
provider receives the household's affirmative consent to enroll with
that provider for the Affordable Connectivity Program. Providers are
further required to apply the affordable connectivity benefit to the
household's account promptly.
124. A provider is prohibited from advertising or holding itself
out as a participating provider if it is not in fact permitted to
participate in the Program. The Commission also prohibits providers
from engaging in false or misleading advertising of the Affordable
Connectivity Program. Failure to timely provide the service, equipment,
or devices that are advertised, promoted, or marketed is an unjust and
unreasonable practice and is a violation of the Affordable Connectivity
Program rules. Providers must deliver any connected devices under the
program within 30 days of affirmative consent to receive the device
from the household.
5. Disclosures and Consumer Consent
125. General Disclosure Requirements. The Commission finds that
requiring certain disclosures prior to enrolling consumers in the
Affordable Connectivity Program is necessary to ensure that eligible
consumers are fully informed of their rights and the terms and
conditions for their service before enrollment in the Affordable
Connectivity Program. The disclosure requirements the Commission adopts
for the Affordable Connectivity Program must be satisfied before
participating providers enroll an eligible consumer in
[[Page 8363]]
the NLAD, and they apply regardless of whether the eligible consumer
currently receives service from the provider (such as an existing
Lifeline service) or will begin receiving service after enrollment, or
after service provider transfer, in the Affordable Connectivity
Program.
126. The required disclosures can be provided orally or in writing,
and must convey the following information in clear, easily understood
terms that: (1) The Affordable Connectivity Program is a government
program that reduces the customer's broadband internet access service
bill; (2) the household may obtain ACP-supported broadband service from
any participating provider of its choosing; (3) the household may apply
the ACP benefit to any broadband service offering of the participating
provider at the same terms available to households that are not
eligible for ACP-supported service; (4) the provider may disconnect the
household's ACP-supported service after 90 consecutive days of non-
payment; (5) the household will be subject to the provider's
undiscounted rates and general terms and conditions if the program
ends, if the consumer transfers their benefit to another provider but
continues to receive service from the current provider, or upon de-
enrollment from the Affordable Connectivity Program; and (6) the
household may file a complaint against its provider via the
Commission's Consumer Complaint Center. If the provider offers a
connected device through the Affordable Connectivity Program, the
disclosures must also include language stating that the household does
not need to accept the device in order to enroll in the program.
Providers must also inform consumers about the provider's ACP-supported
service plans that are fully covered by the applicable affordable
connectivity benefit amount to guard against inappropriate upselling.
Providers must retain all documentation or recordings of written or
oral disclosures made to consumers in connection with ACP enrollment,
as well as any other oral or written notifications and consumer
disclosures required by the ACP rules consistent with the ACP
recordkeeping requirements, and make them available for inspection upon
request. Standardized language for the required consumer disclosures
would ensure that all providers share the same language with eligible
consumers prior to enrollment. Accordingly, the Commission directs the
Bureau, in coordination with EB and CGB, to adopt a standard disclosure
statement that all providers will be required to use.
127. Consumer Consent to Enroll in the Affordable Connectivity
Program. Before enrolling a consumer in the Affordable Connectivity
Program, participating providers must obtain affirmative consumer
consent either orally or in writing that acknowledges that after having
reviewed the required disclosures about the Affordable Connectivity
Program, the household consents to enroll with the provider. As with
the required disclosures, the Commission finds that having uniform text
for these consents would ensure that consumers actually affirmatively
consented to enroll in the Program. The Commission directs the Bureau,
in coordination with EB and CGB, to adopt a standard consent statement
that providers will also be required to use in conjunction with the
disclosures before enrolling eligible consumers in the Affordable
Connectivity Program. Providers must retain all documentation or
recordings of written or oral notifications and consumer consents and
make them available for inspection upon request.
128. The practices of linking program enrollment to implementation
of technical changes necessary to retain the subscriber's existing
service or automatically enrolling subscribers that provided
information needed for another purpose may be deceptive and would have
a deleterious effect on the integrity of the Affordable Connectivity
Program. Accordingly, the Commission prohibits participating providers
from linking enrollment in the Affordable Connectivity Program to some
other action or information supplied to the provider for purposes other
than the Affordable Connectivity Program. As examples, providers are
prohibited from: (1) Not clearly distinguishing the process of signing
up for ACP-supported services and devices from the process of signing
up for, renewing, upgrading, or modifying other services, including
Lifeline-supported services; (2) suggesting or implying that signing up
for ACP-supported services and devices is required for obtaining or
continuing other services, including Lifeline-supported services; and
(3) tying the submission of customer information provided for another
purpose (e.g., address verification or equipment upgrade or
replacement) to enrollment in the Affordable Connectivity Program.
129. The Commission also finds that requiring a consumer to accept
a connected device in order to enroll with the provider is deceptive
and harmful to consumers. Accordingly, the Commission prohibits
participating providers from requiring consumers to obtain an ACP-
supported device in order to enroll in the Affordable Connectivity
Program.
130. Timing Limitation on Consumer Disclosure and Consents for
Providers with Pending Election Notices or Removal. Providers are
required to have a fully processed election notice before beginning to
provide disclosures and collecting consumer consent for enrollment in
the Affordable Connectivity Program. If a provider is removed from the
program, it must cease providing the required enrollment-based consumer
disclosures and consents for the Affordable Connectivity Program
immediately upon removal. EBB Program providers that transitioned to
the Affordable Connectivity Program do not need to submit an ACP
election notice in order to make the required consumer disclosures and
collect consumer consent for enrollment in the Affordable Connectivity
Program.
131. Transfer-Specific Disclosure and Consent Requirements. The
Commission adopts consent and disclosure requirements for households
that seek to transfer their ACP benefit to another service provider.
Before initiating a transfer in NLAD, the transfer-in provider must
disclose orally or in writing, in clear, easily understood language to
the ACP household: (1) That the household will be transferring its ACP
benefit to the transfer-in provider; (2) that the effect of the
transfer is that the ACP benefit will be applied to the transfer-in
provider's service and will no longer be applied to service retained
from the transfer-out provider; (3) that the household may be subject
to the transfer-out provider's undiscounted rates as a result of the
transfer if the household elects to maintain service from the transfer-
out provider, and that (4) the household is limited to one ACP-transfer
transaction per service month with limited exceptions to reverse an
improper transfer or address situations impacting the household's
receipt of ACP-supported service from a particular provider.
132. The Commission finds that having a clear record of a
consumer's consent to transfer their ACP benefit after having reviewed
the ACP transfer disclosures is an important tool for preventing
uninformed or unwanted ACP benefit transfers. The transfer-in provider
must obtain the required consumer consent orally or in writing before
each ACP transfer transaction, and the consent must indicate that after
having reviewed the required transfer disclosures, the household
consents to transfer its benefit to the transfer-in provider.
Documentation of the consumer's affirmative consent must
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clearly identify the ACP subscriber name, acknowledge the subscriber
was provided the required disclosure language, and that upon receiving
the disclosure, the subscriber gave its informed consent to transfer
its benefit, and the date consent was given. Participating providers
must retain documentation or recordings related to the required
disclosures and necessary consents for affordable connectivity benefit
transfers.
133. Participating providers must obtain consent from an ACP
household for each transfer and may not rely on older consent given for
a previous transfer. Each time a provider initiates a transfer-in
transaction for an ACP household, it must first provide the household
with the required disclosures and obtain consent from the household
acknowledging receipt of the disclosures and stating that the household
consents to the transfer, even if the household previously received EBB
or ACP-supported service from the provider. Consistent with the
consents and disclosures required at initial ACP-enrollment, the
Commission finds that using standardized language for ACP transfer
disclosures and consent will better ensure that households are properly
informed about and consented to transfer their ACP benefit. Therefore,
the Commission directs the Bureau, in coordination with EB and CGB, to
provide standardized disclosure and consent language that the providers
will be required to present to ACP households prior to initiating the
transfer.
134. Providers are required to provide written notice of transfer-
in transactions to the transferred ACP household within five business
days of completing the transfer in the NLAD. The notice of transfer to
the ACP household should indicate the name of the transfer-in provider
to which the household's ACP benefit was transferred, the date the
transfer was initiated, and an explanation of the dispute process if
the household believes the transfer was improper. Providers must retain
documentation demonstrating compliance with this notice requirement
consistent with the document retention requirements adopted in the
Order and make such documentation available to the Commission and USAC
upon request. The transfer-in service provider is required to certify
under penalty of perjury that it has complied with the transfer
requirements the Commission adopts in the Order.
135. Limiting the Number of ACP Consumer Transfers in a Service
Month. To provide an additional safeguard against unwanted and
uninformed benefit transfers, the Commission limits ACP household
benefit transfers to one per service month, with limited exceptions.
The Commission directs USAC, in coordination with the Bureau, to
develop a process for seeking an exception from the one-per-service
month transfer restriction in the following circumstances: (1) An
improper transfer; (2) the household's service provider ceases
operations or fails to provide service (3) the household's current
service provider is found to be in violation of ACP rules, and the
violation impacts the customer for which exception is sought; or (4)
the household changes its residential address to a location outside of
the provider's service area for the Affordable Connectivity Program. An
improper transfer occurs if the transfer-in provider does not make the
required disclosures or obtain the required consent from the household
to proceed with the transfer transaction. These exceptions ensure that
unwanted transfers can be reversed, and also recognize that
circumstances beyond the household's control may impact the provision
or receipt of ACP service from a specific provider warranting more than
one transfer in a month. The Commission further directs USAC to monitor
exceptions and conduct program integrity reviews for a sampling of
benefit transfers.
F. Outreach, Cross-Agency Collaboration, Advertising, and Public
Awareness
136. For the Affordable Connectivity Program to achieve its full
potential and reach as many eligible households as possible, households
must be clearly informed of the program's existence, benefits,
eligibility qualifications, and how to apply. The Infrastructure Act
recognizes that the Commission, participating providers, other Federal
agencies, State, local, and Tribal governments, and other program
partners and stakeholders play an important role in disseminating
information about the Affordable Connectivity Program to the intended
population. The Infrastructure Act outlines specific requirements and
permissible activities for consumer outreach that may be funded using
Affordable Connectivity Program funding. 47 U.S.C. 1752(b)(10). The
Commission recognizes the Program will benefit from broad outreach in a
variety of languages and methods to reach as many eligible consumers as
possible, including people of color, persons with disabilities, persons
who live in rural or Tribal areas, and others who are or have been
historically underserved, marginalized, or adversely affected by
persistent poverty or inequality through collaborative outreach on the
part of the Federal Government, participating providers, State, local,
and Tribal governments, and other program partners and stakeholders.
1. Commission Outreach Efforts and Cross-Agency Collaboration
137. Commission Outreach Efforts. The Infrastructure Act provides
that the Commission may conduct outreach efforts to encourage
households to enroll in the Affordable Connectivity Program. In
particular, the Act permits the Commission to facilitate consumer
research, conduct focus groups, engage in paid media campaigns, provide
grants to outreach partners, and provide an orderly transition for
participating providers and consumers from the EBB Program to the
Affordable Connectivity Program. 47 U.S.C. 1752(b)(10)(C)(i)-(ii).
138. The Commission believes a wide range of outreach is needed to
best promote awareness of and increase participation in the Affordable
Connectivity Program. The Commission is committed to using a variety of
outreach tools in the immediate term and for the duration of the
program to encourage eligible households to enroll in the Affordable
Connectivity Program as permitted under the statute. 47 U.S.C.
1752(b)(10)(C)(i). In addition, in the Further Notice of Proposed
Rulemaking, the Commission is exploring the possibility of establishing
an outreach grant program, but that would take time to establish in
compliance with the applicable Federal rules and regulations governing
Federal grants. Based on the costs associated with the Commission's
Digital Television Transition outreach efforts (which included broad
paid media campaigns) and current estimates for the anticipated types
of outreach activities the Commission may undertake pursuant to the
Infrastructure Act, the Commission anticipates the need to spend no
more than $100,000,000 over the next five years for outreach,
including, but not limited to, immediate outreach activities and a
potential outreach grant program. As such, the Commission permits the
Bureau to spend up to, but not more than, $100,000,000 over the next
five years for such activities.
139. The Commission directs the Bureau, CGB, the Office of
Communications Business Opportunities (OCBO), OMD, and the Office of
Media Relations (OMR) to collaborate on identifying and conducting the
Commission's paid
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outreach efforts to promote program awareness and encourage households
to enroll in the Affordable Connectivity Program, using the broad range
of outreach tools permitted under the statute. These efforts will
complement and build on the extensive outreach undertaken in support of
the EBB Program and may include both national and more targeted
activities, with particular emphasis on reaching people of color,
persons with disabilities, persons who live in rural or Tribal areas,
and others who are or have been historically unserved, marginalized, or
adversely affected by persistent poverty or inequality. This outreach
should also focus on helping households that are unconnected due to
affordability issues and are not currently enrolled in a low-income
connectivity program with awareness and enrollment in the program.
140. Staff may work with USAC and third-party entities to conduct
consumer research and focus groups. Consumer research and focus groups
may provide meaningful insights into program messaging, including
translations, application and enrollment process improvements, program
awareness, perceived program value, and other topics that may improve
awareness of the program and barriers to participation that could be
addressed through outreach, and help drive enrollment. The Bureau, in
consultation with CGB and OMR, with support from OMD as needed, may
also pursue a paid media strategy for the Affordable Connectivity
Program. In addition to traditional media and online ads, a paid media
strategy may also include paid media in diverse outlets that serve
culturally and linguistically isolated communities for which a
significant population may qualify for the Affordable Connectivity
Program. Such a media strategy may include a mix of national, regional,
and hyper-local campaigns designed to reach the intended populations.
The Bureau and CGB, with support from OMD as needed, may rely on a
third-party media strategy firm to develop a media plan and facilitate
paid advertising campaigns.
141. Commission Collaboration with Other Federal Agencies. Pursuant
to the Infrastructure Act, the Commission must collaborate with
relevant Federal agencies to ensure that households that participate in
qualifying programs for the Affordable Connectivity Program are
provided with information about the Affordable Connectivity Program,
including enrollment information. 47 U.S.C. 1752(b)(10)(B). The
Commission directs the Bureau in conjunction with CGB to collaborate
with other relevant Federal agencies on efforts designed to ensure that
households participating in the relevant qualifying programs are
provided with information on the Affordable Connectivity Program,
including enrollment information. The Commission directs the Bureau and
CGB to identify and engage in specific activities that would best
satisfy this collaboration requirement, such as developing co-branded
awareness campaign materials and email communications about the
Affordable Connectivity Program to households participating in
qualifying benefit programs.
142. System of Records Notices Updates. The Infrastructure Act also
requires the Commission to ``collaborate with relevant Federal
agencies, including to ensure relevant Federal agencies update their
System of Records Notices, to ensure that a household that participates
in any program that qualifies the household for the Affordable
Connectivity Program is provided information about the program,
including how to enroll in the program.'' 47 U.S.C. 1752(b)(10)(B). The
Commission does not have the authority to compel other Federal agencies
to update their Systems of Records Notices, but the statute permits it
to collaborate with other agencies. Accordingly, the Commission directs
the Bureau, the Office of General Counsel, and OMD to collaborate with
relevant Federal agencies to ensure that households participating in
relevant qualifying programs are provided information about the
Affordable Connectivity Program, which will include encouraging other
Federal agencies to update their System of Records Notices to permit
information sharing related to the Affordable Connectivity Program.
2. Publication and Outreach Requirements for Participating Providers
143. Notification to All internet Service Consumers Upon
Subscription or Renewal. The Infrastructure Act requires participating
providers to notify all consumers who either subscribe to or renew a
subscription to an internet service offering about the Affordable
Connectivity Program and how to enroll. 47 U.S.C. 1752(b)(10)(A). The
Commission concludes that the term ``renew'' in the relevant section of
the Infrastructure Act means extending a fixed-term service contract
longer than one month. The requirement to notify consumers who
``renew'' a subscription should be limited to consumers extending a
plan that is offered for a fixed term longer than one month and should
not apply to consumers on month-to-month contracts. Service providers
are also required to provide notice about the Affordable Connectivity
Program to consumers who subscribe to month-to-month internet service
at the time the consumer first subscribes to the service and annually
thereafter.
144. Participating providers must notify in writing or orally, in a
manner that is accessible to individuals with disabilities, all
consumers who either subscribe to or renew a subscription to an
internet service offering about the Affordable Connectivity Program and
how to enroll: (1) During enrollment for new subscribers; (2) at least
30 days before the date of renewal for subscribers not enrolled in the
Affordable Connectivity Program who have fixed term plans longer than
one month; and (3) annually for subscribers not already enrolled in the
Affordable Connectivity Program who have month-to-month or similar non-
fixed term plans. The requirement to notify new subscribers during
enrollment also applies to existing subscribers contacting their
provider to change service plans.
145. The Commission declines to apply the notice requirement only
at the time of initial service enrollment for prepaid customers who
typically pay for service on a month-to-month basis. Providers must
inform prepaid customers about the Affordable Connectivity Program
annually to ensure that these consumers remain aware of the Affordable
Connectivity Program. Publicly available information (e.g., websites or
signage) alone is not sufficient to meet this notification requirement
without some form of written or oral communication targeted to the
individual subscriber, including but not limited to billing
notifications or other emailed or mailed notifications. Providers
should also offer these consumer notices in customers' preferred
language.
146. The required consumer notice must use clear, easily understood
language. At a minimum, the notice must indicate: (1) The eligibility
requirements for consumer participation; (2) that the Affordable
Connectivity Program is non-transferrable and limited to one monthly
internet discount and a one-time connected device discount (only if the
provider offers ACP discounted devices) per household; (3) how to
enroll, such as a customer service phone number or relevant website
information; and (4) that the Affordable Connectivity Program is a
Federal Government
[[Page 8366]]
benefit program operated by the Federal Communications Commission and,
if it ends, or when a household is no longer eligible, customers will
be subject to the provider's regular rates, terms, and conditions.
147. Advertising Requirement. Due to the importance of
disseminating information about the Affordable Connectivity Program,
the Commission requires participating providers to publicize the
availability of the Affordable Connectivity Program in a manner
reasonably designed to reach those consumers likely to qualify and in a
manner that is accessible to individuals with disabilities. Service
providers should utilize outreach materials and methods designed to
reach eligible households that do not currently receive service. Cf. 47
CFR 54.405(b) (similar requirements in context of Lifeline program).
148. Public Awareness Campaigns. Finally, the Infrastructure Act
requires participating providers, in collaboration with State agencies,
public interest groups, and non-profit organizations, to carry out
public awareness campaigns in their areas of service that highlight the
value and benefits of broadband internet access service, and the
existence of the Affordable Connectivity Program. 47 U.S.C. 1752(b)(8).
Local social services agencies, schools, and other organizations that
administer qualifying government assistance programs are also important
program partners and stakeholders for the Affordable Connectivity
Program; accordingly, service provider public awareness activities in
collaboration with these entities would also satisfy the service
provider public awareness obligation. The Commission gives
participating providers flexibility as to how they fulfill this
requirement and does not prescribe specific forms of outreach that
service providers must use to satisfy the public awareness obligation,
a fixed number of activities that service providers must complete, or a
requirement that service providers collaborate with specific
organizations. However, participating service providers must frequently
engage in public awareness activities focused on participation in the
Affordable Connectivity Program and in collaboration with the specified
types of organizations, and must retain documentation sufficient to
demonstrate their compliance with the public awareness obligations.
3. Commission Guidance
149. The Infrastructure Act provides that the Commission may issue
guidance, forms, instructions, publications, or technical assistance as
necessary or appropriate to carry out the Affordable Connectivity
Program, including actions intended to ensure that ``programs,
projects, or activities'' are completed in a timely and effective
manner. The Commission directs the Commission staff and USAC to develop
comprehensive provider education and training programs, as well as
consumer outreach plans. The Commission also directs USAC to develop
and implement, under the oversight of the Bureau, CGB, and OCBO,
training and provide information necessary to successfully participate
in the Affordable Connectivity Program. The Commission directs USAC
both to educate service providers on the ACP and to engage in consumer
outreach to complement the efforts Commission staff will undertake in
response to this Order. The Commission also directs CGB, including the
Office of Native Affairs and Policy, and OCBO to coordinate with USAC
to develop educational and informational communications and materials
to advertise the Affordable Connectivity Program, such as a web page
and digital toolkit in a printable format and translated into other
languages that can easily be accessed by service providers,
organizations, and the public.
G. Data Reporting and Performance Goals
1. Tracking and Reporting of Available Funding
150. In the EBB Program Order, the Commission instructed USAC to
develop a tracker that reports on disbursements and program enrollment
to allow providers and the public to monitor the balance of the
Emergency Broadband Connectivity Fund. Emergency Broadband Benefit
Program, Final Rule, 86 FR 19532, 19552-53, paras. 105-108 (Apr. 13,
2021). Consistent with the Commission's approach in the EBB Program,
the Commission finds that publishing enrollment data for the Affordable
Connectivity Program will empower the Commission's outreach partners
and promote transparency about the program. Therefore, the Commission
directs USAC, subject to oversight of the OEA and the Bureau, to
develop a tracker and make it available on either the Bureau's website
or USAC's website. In the tracker, USAC should include enrollment data
including, enrollee age category, eligibility category, including
households enrolled on the basis of enrollment in a provider's existing
low-income program, type of broadband service, and enrollment numbers
by five-digit ZIP code areas. USAC shall update the posted information
regularly. The Commission directs the Bureau and OEA, with support from
USAC, to develop a process to mask data as necessary, consistent with
the Privacy Act, 5 U.S.C. 552a. The Commission further directs OEA and
the Bureau to take into consideration the types of data requested by
commenters when determining the additional program data, if any, that
can be made available.
151. Performance Measures. Similar to the Lifeline and EBB
Programs, the Affordability Connectivity Program will subsidize the
internet bills of low-income households on a monthly basis; thus, the
Commission plans to establish program goals consistent with those of
the Lifeline and EBB Programs. The Commission establishes three goals
for the Affordability Connectivity Program: (1) Reduce the digital
divide for low-income consumers, (2) promote awareness and
participation in the Affordable Connectivity Program and the Lifeline
program, and (3) ensure efficient and effective administration of the
Affordability Connectivity Program.
152. Narrowing the digital divide has been an ongoing priority for
the Commission and is one of the goals for the Lifeline program. A
primary goal of the Affordability Connectivity Program should be to
close the digital divide by reducing the broadband affordability gap.
The Commission directs the Bureau and OEA, with support from USAC, to
collect as necessary appropriate data and develop metrics to determine
progress towards this goal, such as broadband adoption by first-time
subscribers and increasing enrollments in areas with low broadband
internet penetration rates.
153. The Commission's second goal is to increase awareness of and
participation in the Affordability Connectivity Program. The Commission
should invest in direct, data-driven outreach to unconnected households
to increase awareness of the Affordable Connectivity Program. To meet
this goal, the Commission will work with community partners to increase
consumer engagement with low-income individuals in underserved areas.
The Commission directs USAC to continue to publish enrollment data by
geographic regions. To measure progress towards this goal, the
Commission will monitor the participation over time and by area.
Additionally, the Commission directs the Bureau and OEA, with support
from USAC, to collect the appropriate data.
154. The Commission adopts as the Commission's third goal efficient
and effective administration of the
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Affordability Connectivity Program. The Commission will measure success
towards this goal by evaluating the speed and ease of the application
process and the reimbursement process, and the overall burden of the
program on consumers. To measure the first performance metric, the
Commission will conduct consumer and provider outreach that will aim to
capture program satisfaction. In addition, the Commission seeks
feedback from the Commission's State, community, and non-profit
partners helping to educate consumers on the application process. For
the Commission's second performance measure, the Commission will use a
measure of consumer burden that divides the total inflation-adjusted
expenditures of the low-income program each year by the number of
households in the United States and express the measure as a monthly
dollar figure. This calculation will rely on publicly available data
and will therefore be transparent and easily verifiable.
H. Transition of Legacy EBB Program Households
155. The Commission takes seriously the need to ensure that legacy
EBB Program households that transition to the Affordable Connectivity
Program do not have adverse experiences such as bill shock as a result
of the lower $30 non-Tribal benefit under the Affordable Connectivity
Program or a downgraded service offering. The Commission finds that a
uniform opt-in approach for all legacy EBB households that transition
to the Affordable Connectivity Program is unnecessary and would likely
result in significant de-enrollments and increase administrative
burdens on service providers and consumers. An across-the-board opt-out
approach does not provide consumers enough agency in the decision.
Instead, the Commission adopts a hybrid approach that takes into
consideration the various categories of legacy EBB households, and each
category's respective potential level of risk for an adverse
experience.
156. There are multiple categories of legacy EBB households that
would have very different experiences as a result of the reduction to
the $30 non-Tribal benefit amount given their varied circumstances.
Many legacy EBB Program households will not experience a rate change
because their supported internet service already costs $30 or less a
month or because they reside on qualifying Tribal lands and the Tribal
benefit level has not changed. Other legacy EBB Program households are
unlikely to face unexpected financial harm as a result of an up to $20
bill increase because they previously demonstrated to their current
provider a willingness to pay something for their broadband service,
such as by paying some fee for an EBB-supported internet service, being
the provider's existing paying customer for internet service before
enrolling in the EBB Program, or consenting to the provider's general
terms and conditions if they continued to receive their current service
after the end of the EBB Program. However, for households who have not
previously demonstrated a willingness to pay for continued internet
service, there may be a stronger risk of potential bill shock from an
up to $20 bill increase as a result of a reduced benefit amount.
157. Legacy EBB households that would not experience a bill change
as a result of the reduction of the non-Tribal benefit level to $30,
including subscribers who would not pay anything for their ACP service
under the reduced $30 non-Tribal benefit and subscribers who reside on
qualifying Tribal lands and will continue to receive the same up to $75
benefit level, will not be required to opt-in to continue to
participate in the Affordable Connectivity Program after the end of the
transition period. The notices that have already been issued to all
legacy EBB subscribers sufficiently advise this category of subscribers
of the change in the program name, retention of the $75 Tribal benefit
amount and reduction of the non-Tribal benefit to $30. For this
category of legacy EBB households, participating providers must retain
documentation sufficient to demonstrate that this is the applicable
transition path, consistent with the document retention requirements
the Commission adopts in the Order.
158. The category of legacy EBB Program households that would
experience a bill increase as a result of the reduction of the non-
Tribal discount to $30 but have already expressed to their current EBB
provider a willingness and an ability to pay for broadband includes EBB
households that (1) were existing paying internet service customers
with the broadband provider when the household enrolled in the EBB with
that provider; (2) previously consented to the provider's general terms
and conditions if they continued to receive service at the end of the
EBB Program; or (3) currently pay a fee for their supported internet
service. This category of households has demonstrated to their current
provider a willingness and ability to pay for internet service;
therefore, they have little risk of unexpected financial harm even if
their bill may potentially increase up to $20. For this category of
subscribers, the ability to opt out of the Affordable Connectivity
Program or change their service is sufficient.
159. Finally, legacy EBB Program households that would experience a
bill increase as a result of the reduction of the non-Tribal discount
to $30 but have not indicated to their current provider a willingness
or an ability to pay for broadband either generally or at the end of
the EBB Program, including households that did not have a pre-existing
paying customer relationship with their current provider and have not
consented to the providers' general terms and conditions if they
continued service after the end of the transition period, or do not
currently pay a fee for their EBB Program service, face a higher
potential for bill shock and financial harm. The Commission is also
concerned that, for this category of subscribers, solely providing a
reminder of the right to opt out or change service may not be
sufficient to mitigate the potential for unexpected financial harm.
160. To minimize the potential unexpected financial impact for this
third category of legacy EBB households, the Commission gives providers
multiple transition options: (1) Switch the household to an internet
service that costs $30 or less a month after providing notice in
advance of this change; (2) continue to provide the current level of
service without increasing the household's bill if the provider has
internet service options priced at $30 per month or less; or (3) obtain
the consumer's opt-in to continue to receive its current service with
the $30 benefit level before the first increased bill after the March
1, 2022, end of the transition period. Where a provider elects to
switch legacy EBB Program households to a supported internet service
that costs $30 or less, the provider must first give the household
advance notice as soon as practicable before changing their service and
in that notice remind the household that it has the right at any time
to opt out of the Affordable Connectivity Program or change its ACP
service or ACP provider. For providers that elect to obtain household
opt-ins for this third category of legacy EBB households, the provider
must use clear, easily understood language that informs the household
of the increased rate amount, that they will be de-enrolled from the
program if they do not opt in within thirty days of the opt-in request,
that they have the right to opt out of the Affordable Connectivity
Program, cancel or change their service or provider at any time.
Participating providers must retain documentation concerning the
transition path they took for this third
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category of legacy EBB Program households, including any household opt-
ins.
161. Additional Notices for Legacy EBB Households About the Reduced
Non-Tribal Benefit and Ability to Opt-Out. The Commission finds that it
is important to continue to provide notifications about program changes
to legacy EBB Program households for at least one month after the
transition period ends on March 1, 2022, particularly for participating
households whose out-of-pocket costs increase as a result of the
reduced monthly non-Tribal benefit under the Affordable Connectivity
Program. The Commission encourages participating providers to continue
to disseminate information to their legacy EBB subscribers who would
have out-of-pocket costs for their ACP service as a result of the
reduced $30 monthly non-Tribal benefit, including: (1) A reminder that
the non-Tribal ACP benefit is $30 per month; (2) a reminder that the
household has the right to cancel or change its service, or switch
providers without incurring an early termination fee; and (3) a
reminder that the household has the right to opt out of the Affordable
Connectivity Program at any time. If a service provider is already
offering or intends to offer an ACP service that would eliminate or
lessen the rate increase, it would also be useful for service providers
to include that information. To maximize the potential consumer
outreach on these issues, the Commission also strongly encourage
participating providers to post this information on their website in a
location that is highly visible for legacy EBB Program households.
These notices, along with the additional notices that have already been
issued concerning the change from the EBB Program to the Affordable
Connectivity Program, will ensure that legacy EBB Program households
whose bills increased as a result of the reduced ACP non-Tribal benefit
amount are aware of the actions they can take to avoid paying a higher
rate for their ACP-supported internet service.
162. Legacy EBB Program Household Reliance on Prior Household
Worksheet for the EBB Program. The Commission will not require legacy
EBB Program households who transition to the Affordable Connectivity
Program to submit a new household worksheet if they reside at the same
address as another ACP subscriber. However, the Commission delegates
authority to the Bureau to require legacy EBB Program households who
reside at the same address as another ACP household to complete a new
household worksheet if the Bureau determines that this would be
necessary to promote program integrity, facilitate the administration
of the Affordable Connectivity Program, or otherwise support program
goals.
163. Duration of Continuing the Non-Tribal EBB Benefit Level for
Legacy EBB Subscribers. Section 60502(b)(2) of the Infrastructure Act
provides for a 60-day transition period, during which time EBB
subscribers who were enrolled prior to December 31, 2021, and would
otherwise see a reduction in their benefit under the Affordable
Connectivity Program will continue to receive a benefit at the $50 non-
Tribal EBB Program benefit level. The Commission interprets this
language to provide for a single 60-day transition period ending on
March 1, 2022, during which legacy EBB Program households who were
fully enrolled in the EBB Program as of December 31, 2021, would
continue to receive the $50 EBB benefit level.
I. Sunsetting Provisions
164. Given the expanded funding for the Affordable Connectivity
Program, the Commission finds that it is not necessary to establish
sunsetting rules at this time. Instead, the Commission delegates
authority to the staff to establish procedures for the wind-down of the
Program. Specifically, the Commission directs the Bureau, in
coordination with OMD, OEA, and USAC, to develop a forecast of the
depletion of the funding appropriated by Congress to the Commission to
fund the Affordable Connectivity Program. Moreover, the Commission
delegates to the Bureau to identify a process for notifying the public
of the timing of the end of the Affordable Connectivity Program as the
funds are nearing depletion.
165. A provider must obtain the household's affirmative opt-in,
either orally or in writing, to continue providing the household
broadband service after the end of the Affordable Connectivity Program
and to charge a higher rate than the household would pay if it were
receiving the full discount permitted under Affordable Connectivity
Program rules. The Commission delegates to the Bureau the authority to
establish specific timeframes for such consumer opt-ins and the
appropriate consumer notice. The wind-down procedures delegated to the
staff must also consider how the remaining funds will be distributed in
the final month of the Affordable Connectivity Program, any timing
considerations related to the reimbursement process, and other
procedures necessary to smoothly wind-down the program.
166. The Commission directs the Bureau to implement procedures for
reimbursement in the final month of the Affordable Connectivity Program
in the event reimbursement claims exceed the amount of remaining funds,
but in no circumstances will reimbursements be less than 50% of the
provider's claim for that final month. For example, if based on the
forecast of the depletion of funding established preceding, the
remaining balance in the Affordable Connectivity Fund is sufficient to
pay out 80% of each reimbursement claim submitted in the final month,
the Fund will pay out 80% of each claim on a pro-rata basis, thus
depleting the Fund and ending the Affordable Connectivity Fund. If,
however, projections from USAC indicate that less than 50% of claims
can be paid out on a pro-rata basis for the expected final month of the
Affordable Connectivity Program, then USAC shall immediately notify the
Bureau, OEA, and OMD. If staff agree with USAC's projections, then USAC
will pause the reimbursement process for the final month, and instead
staff will determine how best to use the remaining funds consistent
with the Infrastructure Act.
J. Audits, Enforcement, and Removal of Providers
1. Audits
167. The Infrastructure Act requires the Commission to adopt audit
requirements to ensure participating providers are in compliance with
the program requirements and to prevent waste, fraud, and abuse. 47
U.S.C. 1752(b)(12). Within one year of the date of enactment of the
Infrastructure Act, the Commission's Office of Inspector General is
required to conduct an audit of the disbursements to a representative
sample of providers. 47 U.S.C. 1752(b)(13). The Commission delegates
authority to OMD to develop and implement an audit process of
participating providers, for which it may obtain the assistance of
third parties, including but not limited to USAC. Such ACP audits would
be in addition to any audits conducted by the Commission's Office of
Inspector General. The Commission also adopts the documentation
retention requirements used in the EBB Program for the Affordable
Connectivity Program.
168. The Commission has delegated authority to OMD, upon receiving
approval from the Office of General Counsel, to issue subpoenas that
directly relate to OMD's oversight of audits of the Affordable
Connectivity Program. 47 CFR 0.231(l).
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169. USAC Program Integrity Reviews. The Commission directs USAC to
develop a plan to conduct program integrity reviews to address the
requirements of this Order and areas where trend analysis, complaint
data, or other information shows a need for such reviews to determine
provider and consumer compliance with ACP rules. This plan will be
subject to OMD and Bureau approval.
2. Enforcement
170. The Infrastructure Act specifies that a violation of 47 U.S.C.
1752 or any regulation promulgated under that section ``shall be
treated as violation of the Communications Act of 1934 or a regulation
promulgated under such Act'' and directs the Commission to enforce it
``in the same manner, by the same means, and with the same
jurisdiction, powers, and duties as though all applicable terms and
provisions of the Communications Act of 1934 were incorporated or made
a part of this section.'' 47 U.S.C. 1752(g). Moreover, the
Infrastructure Act expressly grants the Commission the authority to
impose forfeiture penalties to enforce compliance. 47 U.S.C.
1752(b)(9)(C)(ii). The Commission will use its existing, statutorily
permitted enforcement powers to initiate investigations of program rule
violations for the Affordable Connectivity Program.
171. The Infrastructure Act, 47 U.S.C. 1752(j), provides that the
Commission may not enforce a violation of the Act using its forfeiture
authority if a participating provider demonstrates that it relied in
good faith on information provided to such provider to make any
verification required by 47 U.S.C. 1752(b)(2). That safe harbor will
apply to providers who use the National Verifier for eligibility
determinations or any alternative verification process approved by the
Commission and act in good faith with respect to the eligibility
verification processes. Providers that reasonably rely on documentation
regarding eligibility determinations provided by eligible households or
an eligibility determination from the National Verifier will be able to
avail themselves of this statutory safe harbor with respect to their
compliance with the Affordable Connectivity Program rules.
3. Removal of Participating Providers From the Affordable Connectivity
Program
172. Involuntary Removal. The Commission finds that it is essential
that the Commission have the flexibility necessary to quickly respond
and remove providers that are violating program rules or threatening
the integrity of the Affordable Connectivity Program while also
ensuring that a provider has a fair opportunity to respond prior to
being removed from the program. A participating provider may be removed
from the Affordable Connectivity Program for violations of program
rules of the Affordable Connectivity Program, the EBB Program, the
Lifeline program, the Emergency Connectivity Fund or successor
programs, or other Universal Service Fund (USF) programs. In addition,
a provider may be removed from the Affordable Connectivity Program for
committing any action that indicates a lack of business integrity or
business honesty that seriously and directly affects the provider's
responsibilities under the Affordable Connectivity Program, that
undermines the integrity of the Affordable Connectivity Program, or
that harms or threatens to harm prospective or existing program
participants, including fraudulent program enrollments. Moreover, a
provider may be removed for conviction or civil judgment for attempt or
commission of fraud, theft, embezzlement, forgery, bribery,
falsification or destruction of records, false statements, receiving
stolen property, making false claims, obstruction of justice, or
similar offense, that arises out of activities related to the
Affordable Connectivity Program, the EBB Program, the Emergency
Connectivity Fund or successor programs, or any of the USF programs.
173. If the Commission develops information from Commission-led or
sponsored investigations or receives consumer complaints, information
obtained through program integrity reviews and audits, whistleblower
reports, or information shared by law enforcement or from other
credible sources that yields credible allegations of misconduct, the
Bureau Chief or the Chief of EB, after consultation with USAC, OMD, and
CGB, as appropriate, will initiate a proceeding to consider removal of
the provider. The relevant Bureau will provide notice of the proceeding
to the participating provider via electronic mail and/or U.S. mail
using the contact information provided in the election notice filed
with USAC or other sources if there is reason to suspect that the
information on file with USAC is not up-to-date. Such notice will
include the legal and factual bases for the initiation of the removal
proceeding (as well as notice of any interim measures taken under this
paragraph and reasons therefor) and indicate that the provider will
have thirty (30) days to respond to the Bureau and to provide any
relevant evidence demonstrating that a rule violation or other conduct
warranting removal has not in fact occurred and that the provider
should not be removed from the Affordable Connectivity Program.
Concurrent with the issuance of the notice or at any time before a
final determination is rendered by the Bureau Chief or Chief of EB, as
the case may be, such Chief may, in light of the facts and
circumstances set forth in the notice commencing the removal
proceeding, and with notice to the provider of this interim measure,
direct on an interim basis that the provider be removed from the
Commission's listing of providers, from USAC's Companies Near Me tool,
or any other similar records, and may also direct USAC to temporarily
suspend the participating provider's ability to enroll or transfer in
new subscribers during the pendency of the removal proceeding. Any such
actions may be taken only (i) if based upon adequate evidence of
willful misconduct that would warrant removal of the provider under the
previous paragraph, and (ii) after determining that immediate action is
necessary to protect the public interest. The relevant Chief may also
direct, with notice to the provider, that a funding hold (or partial
hold) be placed on the provider if, based on the circumstances of a
particular case, there is adequate evidence that the provider's
misconduct is likely to cause or has already resulted in improper
claims for ACP reimbursement and such a hold (or partial hold) is
necessary to protect the public interest. Any funding hold should be
tailored in a manner that is related to and proportionate to the
alleged misconduct.
174. Once a timely response is received from the provider, the
relevant Chief will have thirty (30) days to make a removal
determination and issue an order, which shall provide a detailed
explanation for the determination. This 30-day period may be extended
an additional 15 days if circumstances warrant. After review of any
response submitted by the provider and all available credible evidence,
if the relevant Chief determines based on a preponderance of the
evidence that there has been a rule violation or other conduct
warranting removal, the provider's authorization to participate in the
Affordable Connectivity Program will be revoked, and the provider will
be removed from the program. Similarly, failure by the provider to
respond or provide the requested evidence within thirty days of the
date of the notice also will result in a finding
[[Page 8370]]
against the provider, removal from the program, and revocation of the
provider's authorization to participate in the Affordable Connectivity
Program. However, if the relevant Chief determines that the
preponderance of the evidence fails to demonstrate that there has been
a rule violation or other conduct warranting removal from the program,
such Chief will take appropriate steps to reinstate the provider to the
listing of providers and USAC's ``Companies Near Me'' tool, if the
provider had previously been delisted, advise USAC to permit the
provider ability to enroll or transfer in new subscribers (if
previously blocked), and lift any funding hold. A former participating
provider removed from the Affordable Connectivity Program will be
barred from seeking to rejoin, or participating in, the Affordable
Connectivity Program as a participating provider for at least five
years, or for such additional period as the relevant Chief considers to
be warranted based on the circumstances of the case.
175. A provider may request reconsideration of the decision or
submit a request for review by the full Commission of the Bureau
Chief's determination pursuant to the Commission's rules. See 47 CFR
1.106, 1.115. If the Commission declines the provider's request for
review or if the Commission upholds the Bureau Chief's determination,
then the provider will be removed from the Affordable Connectivity
Program as provided in the Bureau Chief's decision.
176. To avoid the impact the sudden removal of a provider from the
Affordable Connectivity Program would have on low-income consumers who,
through no fault of their own, could lose their discounted internet
services, and to allow consumers served by the removed provider an
opportunity to transfer their benefit to another participating
provider, removed providers will be required to continue providing
service to their existing enrolled households for sixty (60) days after
removal, unless otherwise directed by the relevant Bureau. The provider
will be eligible to receive reimbursement for any valid claims for
discounts passed through to ACP households during this 60-day period.
The removed provider must send written notice to its consumers within
30 days of the final determination in the removal proceeding notifying
the consumers that the provider will no longer be participating in the
Affordable Connectivity Program. Notice to the enrolled households must
include a statement that the provider will be removed from the program;
the effective date of removal; that the household cannot continue to
receive the ACP benefit from its current provider and that if the
household seeks to continue receiving ACP support it must transfer to a
new participating provider; instructions on how to request a transfer
to a new provider and how to find another participating provider; the
contact information for the USAC ACP Support Center; the amount the
household would be charged if the household continues to subscribe to
internet service from the provider after the effective date of removal;
and other information as determined by the Bureau to help enable
consumers to make informed decisions about their internet service. The
removed provider shall also send a second written notice to consumers
at least 15 days before the date by which the provider can no longer
offer ACP-supported service. Failure to provide service during the 60-
day period or to provide the preceding-referenced information to
existing households may result in further enforcement action. The
Commission also directs USAC to provide notice to consumers enrolled
with the removed provider after the final determination in the removal
proceeding.
177. The Commission delegates to the Wireline Competition Bureau
and OMD the authority to modify the provider removal process as set
forth in this section as may be necessary and appropriate in response
to trends in the Affordable Connectivity Program, using appropriate
notice and comment procedures. Any modified removal process shall
continue to strike an appropriate balance between protecting consumers
and the integrity of the Affordable Connectivity Program and ensuring
that providers have a meaningful opportunity to respond to the
allegations.
178. Voluntary Withdrawal. Participation in the Affordable
Connectivity Program is voluntary. However, a provider's decision to
leave the program will impact any households receiving ACP-supported
service from that provider, and care must be taken to ensure that those
households have an opportunity to transfer their benefit to another ACP
provider.
179. A participating provider may withdraw its election to
participate in the Affordable Connectivity Program at any time.
Providers seeking to withdraw from the program must first notify USAC
in writing at least 90 days before the effective date of withdrawal.
The notice to USAC must contain the final date the provider will
provide ACP-supported service to households and a statement confirming
that as of the date of the notice to USAC the provider will cease
enrolling new households, that the provider will cease advertising and
marketing its participation in the Affordable Connectivity Program, and
that the provider will notify its existing ACP households of its intent
to exit the program. Upon receipt of this written notice, USAC and the
Commission will remove the provider from the provider listings on the
FCC's website and the ``Companies Near Me'' tool. As an initial matter,
participating providers that were automatically transitioned from the
EBB Program to the Affordable Connectivity Program must file an opt-out
notice to USAC within 90 days of publication of this Order in the
Federal Register; otherwise they will be considered to be affirmatively
participating in the Affordable Connectivity Program.
180. The provider must also notify its existing ACP households of
its intent to exit the program. Notice must be in writing, provided in
formats accessible to individuals with disabilities, and sent to
existing ACP households 90 days, 60 days, and 30 days before the
effective date of withdrawal from the program. Notice to households
must include the final date of service, the amount the households will
be expected to pay if they remain with the provider after the provider
exits the program, the effective date of such charges, and an
explanation that once the provider exits the program, the ACP benefit
will no longer be applied to the account, unless the subscriber
transfers its benefit to a different participating provider. The notice
must also include instructions detailing how to find and select a new
participating provider, instructions on how to transfer to a different
provider, the web address for the Commission's listing of participating
providers and to USAC's ``Companies Near Me'' tool, the telephone
number and email address of USAC's ACP Support Center, and the
provider's customer service telephone number. During this period, the
provider must continue to provide ACP-supported service to enrolled
subscribers until the effective date of withdrawal from the program.
Providers must retain records demonstrating compliance with the notice
requirements.
K. Administration of the Affordable Connectivity Program
181. The Commission relies on USAC as the administrator of the
Affordable Connectivity Program, see 47 U.S.C. 1752(i)(3), and the
Commission relies on the use of the USAC-administered systems,
including but not limited to, the National Verifier, NLAD, RAD, and the
Lifeline Claims System for the
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provider reimbursement process, call centers for program support,
provider and consumer outreach, and conducting program integrity
reviews.
182. Administrative Cap. The Commission directs USAC, in
coordination with OMD, to regularly report to OMD its projected budget
for administration of the Affordable Connectivity Program at a
frequency to be determined by OMD. Based upon the initial estimates
provided to OMD, which included costs associated with business process
outsourcing, project management, IT professional fees, call center
activities, and other costs, USAC's Affordable Connectivity Program
administrative costs are estimated to be under the 2 percent cap.
183. The Commission must authorize payments from the Affordable
Connectivity Fund prior to the disbursement of those funds in the
United States Treasury to providers who have submitted valid claims for
reimbursement. Here, the Commission provides guidance on steps
participants must be prepared to take to ensure timely payment of
reimbursement claims from the Affordable Connectivity Fund.
184. FCC Red Light Rule. Participating providers in the Affordable
Connectivity Program will be subject to the red light rule that the
Commission implemented to satisfy the requirements of Debt Collection
Improvement Act of 1996. Under the red light rule, the Commission will
not take action on applications or other requests by an entity that is
found to owe debts to the Commission until full payment or resolution
of that debt. 47 CFR 1.1910. If the delinquent debt remains unpaid or
other arrangements have not been made within 30 days of being notified
of the debt, the Commission will dismiss any pending applications.
Consistent with practices in the Lifeline program and other programs
such as the Telecommunications Relay Service, the red light rule is not
waived for the Affordable Connectivity Program. If a prospective
participant is on red light, it will need to satisfy or make
arrangements to satisfy any debts owed to the Commission before its
application and/or election notice will be processed. The Commission
directs the Bureau and OMD to ensure that a process is in place to
check an entity's red light status prior to processing an application,
election notice, disbursement, or other request from the entity
consistent with the red light rule.
185. Treasury Offset. ACP participating providers will be subject
to the Treasury Offset Program (TOP), through which the Treasury may
collect any delinquent debts they owe to Federal agencies and states by
offsetting those debts against all or part of their ACP payments to
satisfy such debt. Even if some or all of a provider's ACP payment has
been offset to satisfy an outstanding Federal or State debt, it is
required to pass the ACP discount to the customer for the service or
connected device claimed.
186. Do Not Pay. Pursuant to the requirements of the Payment
Integrity Information Act of 2019 (PIIA), the Commission must ensure
that a thorough review of available databases with relevant information
on eligibility occurs to determine program or award eligibility and
prevent improper payments before the release of any Federal funds.
Payment Integrity Information (PIIA), Public Law 116-117, 134 Stat. 113
(2019). To meet this requirement, the Commission and USAC will make
full use of the Do Not Pay system administered by the Treasury's Bureau
of the Fiscal Service. If a check of the Do Not Pay system results in a
finding that an ACP provider should not be paid, the Commission will
withhold issuing commitments and payments.
187. Database Connections for the Affordable Connectivity Program.
To facilitate increased opportunity for automatic eligibility
verification, USAC and the Commission have executed computer matching
agreements (CMAs) with State and Federal partners for the EBB Program
that allow USAC to continue to utilize those connections for the
Affordable Connectivity Program, and the Commission directs USAC to
continue to engage with State and Federal agencies with which there is
no existing CMA for the Affordable Connectivity Program. In particular,
the Commission expects USAC to continue to pursue establishing
connections with eligibility databases for WIC, a new eligibility
program under the Affordable Connectivity Program. The Infrastructure
Act also requires the Secretaries of the Department of Health and Human
Services (HHS), USDA, and the Department of Education to enter into a
Memorandum of Understanding with USAC to share National Verifier data.
Infrastructure Act, div. F, tit. V, sec. 60502(e).
1. Application of Other Part 54 Regulations
188. The Infrastructure Act, 47 U.S.C. 1752(f), permits the
Commission to apply rules contained in part 54 of the Commission's
rules to the Affordable Connectivity Program.
189. Subpart E. The Commission applies select portions of the
regulations that control the Lifeline and EBB Program to the Affordable
Connectivity Program. Specifically, the Commission applies the
following definitions in section 54.400 to the Affordable Connectivity
Program, subject to the further interpretations expounded upon in the
Order: (f) Income; (g) duplicative support; (h) household; (i) National
Lifeline Accountability Database or Database; (j) Qualifying assistance
program; (k) Direct service; (l) Broadband internet access service; (o)
National Lifeline Eligibility Verifier; and (p) Enrollment
representatives. 47 CFR 54.400(f), (g), (h), (i), (j), (k), (l), (o),
and (p).
190. The Commission requires providers to submit a certification in
their reimbursement claim that every subscriber claimed has used their
supported service, as defined in 47 CFR 54.407(c)(2), in the last
thirty days from the snapshot date for the relevant claims month or has
timely cured their non-usage. Providers must retain documentation
demonstrating the subscriber monthly usage to support this
certification. To ensure that their ACP households are eligible to
receive the affordable connectivity program benefit, a provider may not
provide a consumer with an activated device that it represents enables
use of affordable connectivity benefit supported service, nor may it
activate service that it represents to be an ACP-supported service,
unless and until it has: (1) Confirmed that the household is an
eligible household, and; (2) completed the eligibility determination
and certification and; (3) any other necessary enrollment steps
expounded upon in the Order.
191. To further bolster program integrity, the Commission applies
the following sections of the Lifeline rules to the Affordable
Connectivity Program: 47 CFR 54.407(a), (c)(2)(i)-(v), (d) and (e),
pertaining to the number of participants as of the first of the month
(snapshot), the definition of service usage, reimbursement
certifications, and records; 47 CFR 54.417, pertaining to recordkeeping
requirements; and 47 CFR 54.419, pertaining to the validity of e-
signatures.
192. The Commission applies to the ACP the relevant subsections of
47 CFR 54.404, outlining carrier interactions with the NLAD, and
portions of 47 CFR 54.405 concerning carrier obligations and de-
enrollment. Specifically, the Commission applies 47 CFR 54.405(e)(1),
(2), and (5), for de-enrollments generally, de-enrollments for
duplicative support, and de-enrollments requested by the subscriber,
respectively. The Commission directs
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USAC to accept and process de-enrollment requests directly from
Affordable Connectivity Program subscribers, and to notify the
subscriber's provider when such a de-enrollment occurs.
193. Subpart H. The Commission applies 47 CFR 54.702(c) prohibiting
USAC from making policy, interpreting unclear provisions of the statute
or rules, or interpreting the intent of Congress. Additionally, the
Commission grants USAC the authority to conduct program audits of
contributors and providers, as provided in 47 CFR 54.707, subject to
the Commission's further direction in the Order.
194. Subpart I. As a path for recourse to parties aggrieved by
decisions issued by USAC, review of decisions issued by USAC to follow
the requirements set forth in 47 CFR part 54, subpart I.
2. Delegations to the Bureaus and Office of Managing Director
195. The Commission delegates authority to the Bureau and OMD to
make necessary adjustments to the program administration and to provide
additional detail and specificity to the requirements of the Affordable
Connectivity Program to conform with the intent of the Order and ensure
the efficient functioning of the program.
196. The Commission delegates financial oversight of the program to
OMD and directs it to work in coordination with the Bureau to ensure
that all financial aspects of the program have adequate internal
controls. OMD is required to consult with the Bureau on any policy
matters affecting the program, consistent with 47 CFR 0.91(a). OMD, in
coordination with the Bureau, may issue additional directions to USAC
and program participants in furtherance of its responsibilities.
197. In its administration of the Program, USAC is directed to
comply with, on an ongoing basis, all applicable laws and Federal
Government guidance on privacy and information security standards and
requirements, such as the Privacy Act (5 U.S.C. 552a), relevant
provisions in the Federal Information Security Modernization Act of
2014 (44 U.S.C. 3551 et seq.), N
[…truncated; see source link]Indexed from Federal Register on February 14, 2022.
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.