Rule2023-01621
Rural eConnectivity 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
January 30, 2023
Effective
May 1, 2023
Issuing agencies
Agriculture DepartmentRural Utilities Service
Abstract
The Rural Utilities Service (RUS), a Rural Development agency of the United States Department of Agriculture (USDA), hereinafter referred to as "RUS" or "the Agency", is issuing a final rule with comment. The intent of the final rule is to make updates to the Rural eConnectivity Program (ReConnect Program) regulation to ensure that requirements are clear, accurate as presented and in compliance with Federal reporting requirements.
Full Text
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<title>Federal Register, Volume 88 Issue 19 (Monday, January 30, 2023)</title>
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[Federal Register Volume 88, Number 19 (Monday, January 30, 2023)]
[Rules and Regulations]
[Pages 5724-5727]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-01621]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1740
[RUS-22-Telecom-0056]
RIN 0572-AC62
Rural eConnectivity Program
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule; request for comments.
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SUMMARY: The Rural Utilities Service (RUS), a Rural Development agency
of the United States Department of Agriculture (USDA), hereinafter
referred to as ``RUS'' or ``the Agency'', is issuing a final rule with
comment. The intent of the final rule is to make updates to the Rural
eConnectivity Program (ReConnect Program) regulation to ensure that
requirements are clear, accurate as presented and in compliance with
Federal reporting requirements.
DATES:
Effective date: This final rule is effective May 1, 2023.
Comment date: Comments due on or before March 31, 2023.
ADDRESSES: You may submit comments, identified by docket number RUS-22-
Telecom-0056 and Regulatory Information Number (RIN) number 0572-AC62
through <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Instructions: All submissions received must include the Agency name
and docket number or RIN for this rulemaking. All comments received
will be posted without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>, including
any personal information provided.
Docket: For access to the docket to read background documents or
comments received, go to <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: For general inquiries, contact Laurel
Leverrier, Assistant Administrator Telecommunications Program, Rural
Utilities Service, U.S. Department of Agriculture (USDA), email:
<a href="/cdn-cgi/l/email-protection#d1bdb0a4a3b4bdffbdb4a7b4a3a3b8b4a391a4a2b5b0ffb6bea7"><span class="__cf_email__" data-cfemail="076b667275626b296b62716275756e6275477274636629606871">[email protected]</span></a>, telephone: (202) 720-9556.
SUPPLEMENTARY INFORMATION:
I. Background
Rural Development is a mission area within USDA comprising the RUS,
the Rural Housing Service, and the Rural Business-Cooperative Service.
Rural Development's mission is to increase economic opportunity and
improve the quality of life for all rural Americans. Rural Development
meets its mission by providing loans, loan guarantees, grants, and
technical assistance through numerous programs aimed at creating and
improving infrastructure, housing, and business throughout rural
America. The RUS loan, loan guarantee, and grant programs act as a
catalyst for economic and community development. By financing
improvements to rural electric, water and waste, and telecommunications
and broadband infrastructure, RUS also plays a significant role in
improving other measures of quality of life in rural America, including
public health and safety, environmental protection and culture and
historic preservation.
The ReConnect Program provides loans, grants, and loan/grant
combinations to facilitate broadband deployment in rural areas. In
facilitating the expansion of broadband services and infrastructure,
the program will fuel long-term rural economic development and
opportunities in rural America. The final rule to establish and codify
requirements for the ReConnect Program was published in the Federal
Register on February 26, 2021 (86 FR 11603).
The intent of these proposed changes is to remove outdated
requirements, ensure that the requirements in the regulation are clear,
accurate as presented and in compliance with federal reporting
requirements. These changes will help provide clarity for the
applicants as they prepare their applications for the ReConnect
Program.
II. Summary of Changes to the Rule
The changes made to 7 CFR part 1740 include:
[[Page 5725]]
1. The definition of non-funded service area (NFSA) was updated in
Sec. 1740.2 to include telecommunications as well as broadband as a
type of service. The program requires applicants to report revenues for
all types of data, video, and/or voice services that are offered in the
NFSA, so updating the definition should make it clearer that the
revenues reported should be inclusive of all services.
2. Several sections were updated to clarify that non-federal
entities identified under 2 CFR part 200 should submit a single audit
for the previous year from the date the application is submitted while
other entities will be required to submit a comparative audit. The
language, as currently presented, does not make it clear that non-
federal entities, as defined under 2 CFR part 200, that are subject to
the Single Audit Act are only required to provide one year of audited
financial statements during the years when they have received more than
$750,000 in federal assistance. The sections updated to be clear of the
application of the Single Audit Act include:
(a) Sections 1740.10(a) and 1740.60(d)(12), which was redesignated
as (c)(12), were updated to remove the word ``comparative.''
(b) Section 1740.63 was updated to add a new paragraph (a)(1) and
revisions were made to paragraph (a)(2).
(c) Section 1740.80 was updated to add a new paragraph (b) and
revisions were made to the redesignated paragraph (c).
(3. Section 1740.46 was amended to update the title from ``Buy
American Requirement'' to ``The Buy American preference and the Buy
American requirement'' and to better clarify and explain the Buy
American provision requirements of the Infrastructure Investment and
Jobs Act.
4. Section 1740.60 was updated to remove paragraph (b) as this
information is now considered obsolete in response to the
governmentwide initiative to transition to a unique entity identifier
(UEI) in lieu of a Dun and Bradstreet number. Paragraph (c),
redesignated as paragraph (b), was updated to add the UEI language and
to remove the requirement to provide a CAGE code.
5. Section 1740.60(d)(19), redesignated as (c)(19), was updated to
make it clear that applicants must have Tribal consent from the
appropriate Tribal official if services are proposed on or over Tribal
Land.
III. Executive Orders and Acts
Executive Order 12866, Regulatory Impact Analysis
This final rule has been determined to be not significant for the
purposes of Executive Order (E.O.) 12866 and, therefore, has not been
reviewed by the Office of Management and Budget (OMB).
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a major rule, as defined by 5 U.S.C. 804(2).
Executive Order 12988, Civil Justice Reform
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. The Agency has determined that this rule meets the
applicable standards provided in section 3 of the Executive Order. In
addition, all state and local laws and regulations that conflict with
this rule will be preempted. No retroactive effect will be given to
this rule.
Executive Order 12372, Intergovernmental Consultation
This rule is excluded from the scope of Executive Order 12372,
Intergovernmental Consultation, which may require a consultation with
State and local officials. See the final rule related notice entitled,
``Department Programs and Activities Excluded from Executive Order
12372'' (50 FR 47034) advising that RUS loans and loan guarantees were
not covered by Executive Order 12372.
Regulatory Flexibility Act Certification
RUS certifies that this rule will not have a significant economic
impact on a substantial number of small entities, as defined in the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The RUS
telecommunications program provides loans to borrowers at interest
rates and on terms that are more favorable than those generally
available from the private sector. RUS borrowers, as a result of
obtaining federal financing, receive economic benefits that exceed any
direct economic costs associated with complying with RUS regulations
and requirements.
National Environmental Policy Act
In accordance with the National Environmental Policy Act of 1969,
Public Law 91-190, this final rule has been reviewed in accordance with
7 CFR part 1970 (``Environmental Policies and Procedures''). The Agency
has determined that (i) this action meets the criteria established in 7
CFR 1970.53(f); (ii) no extraordinary circumstances exist; and (iii)
the action is not ``connected'' to other actions with potentially
significant impacts, is not considered a ``cumulative action'' and is
not precluded by 40 CFR 1506.1. Therefore, the Agency has determined
that the action does not have a significant effect on the human
environment, and therefore neither an Environmental Assessment nor an
Environmental Impact Statement is required.
Assistance Listing Number (Formally Known as Catalog of Federal
Domestic Assistance)
The Assistance Listing number assigned to the Rural e-Connectivity
Pilot Program is 10.752. The Assistance Listings are available on the
internet at <a href="https://sam.gov/">https://sam.gov/</a>.
Unfunded Mandates
This rule contains no federal mandates (under the regulatory
provisions of Title II of the Unfunded Mandates Reform Act of 1995) for
state, local, and tribal governments or the private sector. Therefore,
this rule is not subject to the requirements of Sec. 202 and 205 of
the Unfunded Mandates Reform Act of 1995.
E-Government Act Compliance
RUS is committed to the E-Government Act, which requires Government
agencies in general to provide the public the option of submitting
information or transacting business electronically to the maximum
extent possible.
Executive Order 13132, Federalism
The policies contained in this rule do not have any substantial
direct effect on states, on the relationship between the national
government and the states, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on state and local
governments. Therefore, consultation with the states is not required.
Executive Order 13175, Consultation and Coordination With Indian Tribal
Governments
The final rule published February 26, 2021 (86 FR 11603) was
reviewed in accordance with the requirements of Executive Order 13175,
``Consultation and Coordination with Indian Tribal Governments.''
Executive Order 13175 requires federal agencies to consult and
coordinate with tribes on a government-
[[Page 5726]]
to-government basis on policies that have tribal implications,
including regulations, legislative comments or proposed legislation,
and other policy statements or actions that have substantial direct
effects on one or more Indian tribes, on the relationship between the
Federal Government and Indian tribes or on the distribution of power
and responsibilities between the Federal Government and Indian tribes.
The amendments in this final rule documenting Tribal support
consent and support of proposed projects serving Tribal lands were
informed and drafted based on direct feedback from Tribal leaders
during Tribal consultation hosted by USDA's Office of Tribal Relations
and Rural Development in 2021 and 2022. These changes have also been
incorporated into recent ReConnect funding announcements and the same
provisions are now included in this final rule for consistency. If
Tribal leaders are interested in additional consultation with RUS on
these amendments, they are encouraged to contact USDA's Office of
Tribal Relations or Rural Development's Tribal Coordinator at:
<a href="/cdn-cgi/l/email-protection#76373f3738360305121758111900"><span class="__cf_email__" data-cfemail="65242c242b25101601044b020a13">[email protected]</span></a> to request such a consultation.
Civil Rights Impact Analysis
Rural Development, a mission area for which RUS is an agency, has
reviewed this rule in accordance with USDA Regulation 4300-4, Civil
Rights Impact Analysis,'' to identify any major civil rights impacts
the rule might have on program participants on the basis of age, race,
color, national origin, sex, or disability. After review and analysis
of the rule and available data, it has been determined that based on
the analysis of the program purpose, application submission and
eligibility criteria, issuance of this Final Rule is not likely to
adversely or disproportionately impact very low, low and moderate-
income populations, minority populations, women, Indian tribes or
persons with disability, by virtue of their race, color, national
origin, sex, age, disability, or marital or familial status. No major
civil rights impact is likely to result from this rule.
Information Collection and Recordkeeping Requirements
The Information Collection and Recordkeeping requirements contained
in this rule have been approved by OMB under OMB Control Number 0572-
0152. This final rule contains no new reporting or recording keeping
requirements.
List of Subjects in 7 CFR Part 1740
Broadband, Community development, Grant programs-communications,
Loan programs--communications, Rural areas, Telecommunications.
Accordingly, for reasons set forth in the preamble, 7 CFR part 1740
is amended to read as follows:
PART 1740--RURAL ECONNECTIVITY PROGRAM
0
1. The authority citation for part 1740 continues to read as follows:
Authority: 7 U.S.C. 1981(b)(4), 7 U.S.C. 901 et seq., 7 U.S.C.
950aaa et seq., and 7 U.S.C. 950cc.
Subpart A--General
0
2. Amend Sec. 1740.2 by revising the definition of ``Non-funded
service area (NFSA)'' to read as follows:
Sec. 1740.2 Definitions.
* * * * *
Non-funded service area (NFSA) means any area in which the
applicant offers telecommunication/broadband service, or intends to
offer telecommunication/broadband service, during the forecast period,
but which is not part of its Proposed Funded Service Area.
* * * * *
Subpart B--Eligibility Requirements
0
3. Amend Sec. 1740.10 by revising paragraph (a) to read as follows:
Sec. 1740.10 Eligible projects.
* * * * *
(a) Submit a complete application and provide all supporting
documentation including unqualified, audited financial statements from
the date the application is submitted as detailed in Sec. 1740.63.
* * * * *
Subpart D--Award Terms
0
4. Revise Sec. 1740.46 to read as follows:
Sec. 1740.46 The Buy American preference and the Buy American
requirement. (Amended)
The domestic content preference under this Program applies
differently to two classes of awardees: those that are defined as Non-
Federal Entities under 2 CFR 200.1 and those that are not.
(a) Non-Federal Entity awardees. Funding to Non-Federal Entities,
defined pursuant to 2 CFR 200.1 as any State, local government, Indian
Tribe, Institution of Higher Education, or nonprofit organization,
shall be governed by the requirements of section 70914 of the Build
America, Buy America Act (BABA) within the Infrastructure Investment
and Jobs Act (IIJA).
(b) All other awardees. Awardees shall use in connection with the
expenditure of loan and grant funds only such unmanufactured articles,
materials, and supplies, as have been mined or produced in the United
States or in any eligible country, and only such manufactured articles,
materials, and supplies as have been manufactured in the United States
or in any eligible country, substantially all from articles, materials,
or supplies mined, produced, or manufactured, as the case may be, in
the United States or in any eligible country. For purposes of this
section, an ``eligible country'' is any country that applies with
respect to the United States an agreement ensuring reciprocal access
for United States products and services and United States suppliers to
the markets of that country, as determined by the United States Trade
Representative. The Buy American regulations may be found at, and any
requests for waiver must be submitted pursuant to, 7 CFR part 1787.
Subpart E--Application Submission and Evaluation
0
5. Amend Sec. 1740.60 by:
0
a. Removing paragraph (b);
0
b. Redesignating paragraph (c) as paragraph (b) and revising newly
redesignated paragraph (b);
0
c. Redesignating paragraph (d) as paragraph (c) and revising newly
redesignated paragraph (c)(12) and the first sentence of newly
redesignated paragraph (c)(19) introductory text; and
0
d. Redesignating paragraph (e) as paragraph (d).
The revisions read as follows:
Sec. 1740.60 Elements of a complete application.
* * * * *
(b) System for Award Management (SAM). Prior to submitting an
application, the applicant must register in SAM and also obtain a
unique entity identifier (UEI) as part of the registration process.
Applicants can register and obtain the UEI at <a href="https://www.sam.gov/content/home">https://www.sam.gov/content/home</a>. SAM registration must be active with current data at all
times, from the application review throughout the active Federal award
funding period. To maintain active SAM registration, the applicant must
review and update the information in the SAM database annually from the
date of initial registration or from the date of the last update or
renewal. The applicant must ensure that the
[[Page 5727]]
information in the database is current, accurate, and complete. The UEI
of the applicant must be included in the application.
(c) * * *
(12) Unqualified, audited financial statements from the date the
application is submitted as detailed in Sec. 1740.63;
* * * * *
(19) If service is being proposed on or over Tribal Land, a Tribal
Government Resolution of Consent from the Tribal Council of the Tribal
Government with jurisdiction over the Tribal Lands at issue must be
provided to show that they are in support of the project and will allow
construction to take place on Tribal Land. * * *
* * * * *
0
6. Amend Sec. 1740.63 by:
0
a. Redesignating paragraphs (a)(2) through (5) as paragraphs (a)(3)
through ((6).
0
b. Redesignating paragraph (a)(1) as paragraph (a)(2);
0
c. Adding a new paragraph (a)(1); and
0
d. Revising the first sentence of newly redesignated paragraph (a)(2).
The addition and revision read as follows:
Sec. 1740.63 Financial information.
(a) * * *
(1) Applicants subject to 2 CFR part 200 must submit an audited
financial statement for the previous year from the date the application
is submitted. If an application is submitted and the most recent year-
end audit has not been completed, the applicant can use the previous
audit that has been completed.
(2) Applicants not subject to 2 CFR part 200 must submit
unqualified, comparative, audited financial statements for the previous
year from the date the application is submitted. * * *
* * * * *
Subpart F--Closing, Servicing, and Reporting
0
7. Amend Sec. 1740.80 by:
0
c. Redesignating paragraphs (c) through (g) as paragraphs (d) through
(h);
0
b. Redesignating paragraph (b) as paragraph (c);
0
a. Adding a new paragraph (b); and
0
d. Revising the first sentence of newly redesignated paragraph (c).
The addition and revision read as follows:
Sec. 1740.80 Accounting, monitoring, and reporting requirements.
* * * * *
(b) Awardees subject to 2 CFR part 200 must submit annual audited
financial statements along with a report on compliance and on internal
control over financial reporting, in accordance with 2 CFR part 200,
subpart F.
(c) Awardees not subject to 2 CFR part 200 must submit annual
comparable audited financial statements along with a report on
compliance and on internal control over financial reporting in
accordance with the requirements of 7 CFR part 1773 using the RUS'
online reporting system.
* * * * *
Andrew Berke,
Administrator, Rural Utilities Service, Rural Development.
[FR Doc. 2023-01621 Filed 1-27-23; 8:45 am]
BILLING CODE 3410-15-P
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