Rule2023-23070
Special Authority To Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs
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
October 19, 2023
Effective
October 19, 2023
Issuing agencies
Agriculture DepartmentRural Utilities ServiceRural Housing ServiceRural Business-Cooperative ServiceFarm Service Agency
Abstract
The Rural Utilities Service, Rural Business-Cooperative Service, and Rural Housing Service, agencies that comprise the Rural Development (RD) Mission Area within the United States Department of Agriculture, published a final rule with comment in the Federal Register on September 15, 2020, to establish the special authority authorized by Section 6210 of the Agriculture Improvement Act of 2018, which will assist rural families and small businesses in gaining access to broadband service by permitting recipients of loans, grants, and loan guarantees from RD to use up to 10 percent of the amount provided to construct broadband infrastructure in areas not served by the minimum acceptable level of broadband service. The final rule described the procedures by which these agencies will consider projects eligible for special broadband authority. Through this action, the agencies are confirming the final rule as it was published and providing responses to the public comments that were received.
Full Text
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<title>Federal Register, Volume 88 Issue 201 (Thursday, October 19, 2023)</title>
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[Federal Register Volume 88, Number 201 (Thursday, October 19, 2023)]
[Rules and Regulations]
[Pages 71987-71988]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-23070]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 /
Rules and Regulations
[[Page 71987]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Parts 1710, 1779, 1780 and 1783
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency
7 CFR Parts 1942 and 1980
Rural Housing Service
7 CFR Part 3570
Rural Business-Cooperative Service
Rural Utilities Service
7 CFR Parts 4274, 4279, and 4280
[Docket No. RUS-20-TELECOM-0022]
RIN 0572-AC50
Special Authority To Enable Funding of Broadband and Smart
Utility Facilities Across Select Rural Development Programs
AGENCY: Rural Utilities Service, Rural Housing Service, Rural Business-
Cooperative Service, USDA.
ACTION: Final rule, confirmation and response to comments.
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SUMMARY: The Rural Utilities Service, Rural Business-Cooperative
Service, and Rural Housing Service, agencies that comprise the Rural
Development (RD) Mission Area within the United States Department of
Agriculture, published a final rule with comment in the Federal
Register on September 15, 2020, to establish the special authority
authorized by Section 6210 of the Agriculture Improvement Act of 2018,
which will assist rural families and small businesses in gaining access
to broadband service by permitting recipients of loans, grants, and
loan guarantees from RD to use up to 10 percent of the amount provided
to construct broadband infrastructure in areas not served by the
minimum acceptable level of broadband service. The final rule described
the procedures by which these agencies will consider projects eligible
for special broadband authority. Through this action, the agencies are
confirming the final rule as it was published and providing responses
to the public comments that were received.
DATES: Effective October 19, 2023, the effective date of the final rule
published September 15, 2020, at 85 FR 57077 is confirmed.
FOR FURTHER INFORMATION CONTACT: Michele Brooks, Director, Regulations
Management Division, Innovation Center, Rural Development, U.S.
Department of Agriculture, 1400 Independence Avenue SW, Washington, DC
20250; telephone 202-690-1078, email <a href="/cdn-cgi/l/email-protection#85c8ece6ede0e9e0abc7f7eaeaeef6c5f0f6e1e4abe2eaf3"><span class="__cf_email__" data-cfemail="d09db9b3b8b5bcb5fe92a2bfbfbba390a5a3b4b1feb7bfa6">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Rural Development (RD) is a mission area
within the United States Department of Agriculture (USDA) comprised of
the Rural Utilities Service (RUS), Rural Housing Service (RHS) and
Rural Business-Cooperative Service (RBCS). RD's mission is to increase
economic opportunity and improve the quality of life for all rural
Americans. Rural Development meets its mission by providing loans, loan
guarantees, grants, and technical assistance through more than 40
programs aimed at creating and improving housing, businesses, and
infrastructure throughout rural America. Part of rebuilding America's
infrastructure is investing in rural broadband.
On December 20, 2018, Congress passed The Agricultural Improvement
Act of 2018 (2018 Farm Bill) (Pub. L. 115-334). In addition to sweeping
changes in broadband program authorities, Congress provided for special
use of funding from other RD programs for broadband deployment in
Section 6210, ``Smart Utility Authority for Broadband.'' The provision
granted the Secretary of Agriculture the discretion to allow recipients
of grants, loans, or loan guarantees under RD programs to use not more
than 10 percent of such funding to finance broadband infrastructure in
areas not served by the minimum acceptable level of broadband service
and which will not result in competitive harm to a current RD loan,
grant, or loan guarantee.
The final rule that published September 15, 2020 (85 FR 57077),
included a 60-day comment period that ended on November 16, 2020. The
agency received comments from eight respondents that included industry
associations, individuals, and a non-profit organization. All eight
respondents were supportive of the final rule.
Respondent 1: The respondent, an industry association, provided
constructive feedback related to four specific issues and areas of
concern.
(1) The evaluation of the 10 percent rule could complicate or delay
overall approval of an application for a grant or loan product.
Evaluation of the broadband portion of loans under the final rule
should not result in a delay of loan approval or processing.
Agency response: The respondent's concern for not delaying the
processing or approval of grant or loan products is acknowledged. The
Agencies will work within their available resources to timely review
and process any and all requests.
(2) Based on prior experience with other RD programs, the
respondent urged the agencies to provide the applicant with access to
the response/challenge filed in reply to their application and be given
a chance to respond within a reasonable period and to verify incumbent
claims of adequate service throughout the contested area.
Agency response: Through the public notice response process
currently in place, the Agency can conduct an on-site review of the
proposed service area to determine if adequate broadband exists. If an
area of the proposed funded service area is found to be ineligible, the
Agency will work with applicants to modify the proposed service area
accordingly.
(3) The Agencies should clarify that it is requesting incumbents to
provide actual speeds and results of speed test to verify the consumer
experience and to provide pricing data for locations in question and
urged the Agencies to avoid use of unreliable Broadband Data sets for
verification.
Agency response: The Agency acknowledges the respondents comment
and will take this recommendation into
[[Page 71988]]
consideration for future modifications to the public notice response
process.
(4) The respondent also urged the RUS to regularly update the
minimum acceptable level of broadband service.
Agency response: The minimum acceptable level of broadband service
is designed to change with the ever-increasing bandwidth requirements
that the public requires. The Agency has implemented procedures in 7
CFR 1738.2 that allow the definition of broadband service to be updated
any time an application window is opened through a notice in the
Federal Register or required by statute.
Respondent 2: The respondent, an industry association, provided
three specific comments as part of their response.
(1) The respondent reminded the Agency it must comply with
requirements applicable to all broadband funding to include notice and
challenge, reporting and Agency coordination.
Agency response: The Agency acknowledges this comment and will
continue to follow the regulations and processes it has in place for
its existing broadband lending programs.
(2) The respondent requested that RUS clarify than an area is only
eligible for funding if there is no broadband service available,
whether fixed or mobile, that reaches the designated speeds.
Agency response: Section 1980.1207(b) states that if RUS determines
that the minimum acceptable level of broadband service is available in
the proposed retail service area after review of information submitted
from service providers, if any, and all available data on broadband
availability, the Awarding Agency shall not approve the use of funds
for such purpose. The Agency feels this section addresses the
respondents comment and no changes are needed.
(3) The respondent encouraged RUS to adopt new rules for all of its
broadband funding programs through notice and comment rulemaking
procedures.
Agency response: The Agency will continue to follow all rulemaking
procedures as applicable.
Respondent 3: The respondent, an industry association, encouraged
careful precision when multiplying the number of programs supporting
broadband. The respondent encourages USDA and the FCC programs to work
in concert stating that Section 6210 funds should be used in concert
with USF to deploy the fastest, most reliable networks possible. The
respondent noted ``as more RD programs support broadband network
deployment under Sec 6210, it will remain essential to use the
additional funds to supplement the work of existing programs instead of
supporting an additional ISP in a rural area that will not even support
one provider on its own.'' The respondent suggests that the rule
``include a provision indicating that, for an area where FCC data
indicate that a provider is receiving High-Cost USF support and is
subject to the corresponding obligation to deploy a network that will
deliver 25/3 Mbps or greater service, no other provider will be
eligible to obtain funds pursuant to Section 6210 in that specific
area.''
Agency response: The Agency is committed to continuing to work with
the FCC and other federal partners to ensure that their programs and
RUS' programs are complementary of each other, not duplicative.
Respondent 4: The respondent, an industry association, provided a
resolution that outlines the challenges that rural organizations and
businesses have in identifying and accessing federal broadband
resources. The resolution also provided generalized recommendations to
Congress and federal agencies concerning adopting higher broadband
speeds as the standard, strengthening local partnerships and
coordination, addressing application barriers for businesses, local
governments, cooperatives and Tribes; allocating designated portions of
available funding to support projects on tribal lands and to leverage
community anchor institutions to spur connectivity.
Agency response: Respondent four comments were more general and not
specifically related to suggested changes for this final rule. The
Agency appreciates the respondent's commitment to Rural America and to
maintaining positive local and federal relationships.
Respondent 5, a university student, suggested the Agency increase
the funding amount from 10 percent to 15 percent.
Agency response: Section 6210 of the 2018 Farm Bill specifically
states 10 percent. An increase of this percentage would require a
statutory change.
Respondent 6, an individual, petitioned USDA to consider three
changes:
(1) To define the minimum acceptable level of broadband service
from 25MB down and 3MB up to 50MB down and 10MP up speeds.
Agency response: As stated in an earlier response, the minimum
acceptable level of broadband service is designed to change with the
ever-increasing bandwidth requirements that the public requires and to
comply with statutory requirements. The Agency has implemented
procedures in 7 CFR 1738.2 that allow the definition of broadband
speeds to be updated any time an application window is opened through a
notice in the Federal Register.
(2) Consider a temporary interest rate reduction on loans for
organizations that provide broadband services to families engaged in
distance education at a reduced cost.
Agency response: Section 6210 of the 2018 Farm Bill does not
include a provision for an interest rate reduction when implementing
this special broadband authority.
(3) Increase the percentage organizations can spend on broadband
and smart utility facilities from 10 percent to 15 percent.
Agency response: As stated in a previous response, Section 6210 of
the 2018 Farm Bill specifically limits such assistance to 10 percent.
An increase of this percentage would require a statutory change.
Respondent 7, an individual, offered his support of USDA
establishing the authority authorized by section 6210 of the
Agricultural Improvement Act of 2018.
Agency response: The Agency appreciates the respondent's comments
and support of this final rule.
Respondent 8, a non-profit organization, did not offer comments
specific to the rule. Instead, they outlined the importance of accurate
broadband mapping data and their proposed solution to help with this
undertaking.
Agency response: The Agency appreciates the respondent's efforts to
improve broadband mapping data and their commitment to Rural America.
The Agency evaluated the responsive comments and based on analysis,
confirms the final rule without change.
Farah Ahmad,
Deputy Under Secretary for Rural Development.
[FR Doc. 2023-23070 Filed 10-18-23; 8:45 am]
BILLING CODE 3410-15-P
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