Rule2024-02093
Affordable Connectivity 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 5, 2024
Effective
January 11, 2024
Issuing agencies
Federal Communications Commission
Abstract
In this document, due to a lack of additional funding from Congress, the Wireline Competition Bureau (Bureau) of the Federal Communications Commission (Commission) issued an Order laying out wind- down procedures for the Affordable Connectivity Program (ACP), important dates, and the impacts on consumers and providers. These procedures include the process for notifying enrolled ACP households about the impact of program termination on their broadband service and bills and the freezing of new enrollments. The Bureau also offers guidance to providers regarding advertising, awareness, and outreach requirements, timing of claims submissions, and participation during a possible partially funded month of ACP.
Full Text
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<title>Federal Register, Volume 89 Issue 24 (Monday, February 5, 2024)</title>
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[Federal Register Volume 89, Number 24 (Monday, February 5, 2024)]
[Rules and Regulations]
[Pages 7627-7632]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-02093]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[WC Docket No. 21-450; DA 24-23; FRS 200279]
Affordable Connectivity Program
AGENCY: Federal Communications Commission.
ACTION: Final action.
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SUMMARY: In this document, due to a lack of additional funding from
Congress, the Wireline Competition Bureau (Bureau) of the Federal
Communications Commission (Commission) issued an Order laying out wind-
down procedures for the Affordable Connectivity Program (ACP),
important dates, and the impacts on consumers and providers. These
procedures include the process for notifying enrolled ACP households
about the impact of program termination on their broadband service and
bills and the freezing of new enrollments. The Bureau also offers
guidance to providers regarding advertising, awareness, and outreach
requirements, timing of claims submissions, and participation during a
possible partially funded month of ACP.
DATES: The wind-down procedures and guidance for the Affordable
Connectivity Program were effective beginning January 11, 2024. The
requirements of 47 CFR 54.1804(b) are waived beginning February 8,
2024, and will remain in effect for the duration of the enrollment
freeze.
FOR FURTHER INFORMATION CONTACT: Benjamin Nashed, Wireline Competition
Bureau, at <a href="/cdn-cgi/l/email-protection#1052757e7a717d797e3e5e7163787574507673733e777f66"><span class="__cf_email__" data-cfemail="3a785f54505b57535414745b49525f5e7a5c5959145d554c">[email protected]</span></a> or 202-418-7400 or TTY: 202-418-
0484. 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#0e686d6d3b3e3a4e686d6d20696178"><span class="__cf_email__" data-cfemail="41272222747175012722226f262e37">[email protected]</span></a> or call the Consumer & Governmental
Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 (TTY).
SUPPLEMENTARY INFORMATION: This is a synopsis of the Bureau's
Affordable Connectivity Program Wind-Down Order (Order) in WC Docket
No. 21-450; DA 24-23, adopted January 11, 2024, and released January
11, 2024. The full text of this document is available for public
inspection during regular business hours at Commission's headquarters
at 45 L Street NE, Washington, DC 20554 or at the following internet
address: <a href="https://docs.fcc.gov/public/attachments/DA-24-23A1.pdf">https://docs.fcc.gov/public/attachments/DA-24-23A1.pdf</a>.
I. Introduction
1. In the Order, and consistent with the authority delegated by the
Commission, the Bureau announces requirements and guidance for the
wind-down of the Affordable Connectivity Program (ACP). The Bureau
currently projects that the last month for which the ACP can fully
reimburse providers for the ACP benefits provided to enrolled
households is April 2024. Should Congress not appropriate additional
money, the existing funds will be exhausted, the Commission will have
to end the ACP, and providers will stop providing discounts to enrolled
households. The Commission nonetheless remains dedicated to providing
ACP households an orderly transition out of the program and, more
importantly, to keeping as many ACP households as possible connected to
broadband service after the end of the program. To prepare low-income
households and broadband providers, as well as the organizations that
help support eligible households' enrollment, and as required by the
Commission's delegation to the Bureau in the ACP Order (FCC 22-2), 87
FR 8346, February 14, 2022, the Bureau announces ACP wind-down
procedures. These procedures include the process for notifying enrolled
ACP households about the impact of program termination on their
broadband service and bills and the freezing of new enrollments in the
program. The Order also offers guidance to providers regarding
advertising, awareness, and outreach requirements; the timing of claims
submissions; and participation during a possible partially funded month
of ACP. The Bureau also encourages providers to help ACP households
transition to providers' own low-income internet offerings.
2. Congress provided $14.2 billion in funding for the ACP and that
funding has been drawn down each month as providers have claimed
reimbursement for benefits passed through to households. The ACP, which
was launched two years ago, currently delivers discounted internet
service to more than 22 million low-income households, benefiting both
rural and urban households alike. Despite news of the program's
projected end, the ACP remains as popular as ever as more households
continue to enroll in the program each month. Moreover, the ACP is
embraced by subscribers of all ages, with nearly half of subscribers
over the age of 50.
3. The ACP provides eligible households with a monthly discount on
broadband service of up to $30 per month and up to $75 per month for
households on qualifying Tribal lands. Eligible households can also
receive a one-time discount of up to $100 to purchase a laptop, desktop
computer, or tablet from participating providers, if the household
contributes more than $10 and less than $50 toward the purchase price.
Should the ACP not receive additional funding, the Commission will have
to end the program and enrolled households will no longer receive the
ACP discount after the end of the program.
II. Discussion
4. Preparing Consumers for the End of the ACP--Timing of Bureau
Announcement of Last Fully Funded Month of Program. The Bureau will
announce the upcoming end of the ACP approximately 60 days prior to the
end of the last fully funded month of the program. Thus, based on
current projections that the last fully funded month of the ACP is
April 2024, the Bureau anticipates that the announcement will occur in
late
[[Page 7628]]
February 2024, but this timing may adjust based on activity in the
program, particularly as a result of the freeze in enrollments. This
announcement will trigger certain required communication to households
receiving ACP-supported service clearly explaining the impact of the
end of the benefit on their broadband bills so that households can make
an informed choice about the broadband service they receive to stay
connected. However, the Bureau requires providers to begin informing
households about the upcoming end of the ACP benefit prior to the
announcement.
5. Provider Notices to ACP Households Regarding End of Program and
Continuation of Service. In the ACP Order, the Commission found that,
as with the Emergency Broadband Benefit Program (EBB Program),
``requiring providers to obtain an affirmative opt-in from households
before they [could] be charged an amount higher than they would pay
under the full reimbursement amount was necessary to `guard against
unexpected charges' '' if the ACP were to end. The Commission also
found that ``an affirmative opt-in following appropriate consumer
notice is generally a good measure for avoiding consumer bill shock and
ensuring the household is informed.''
6. Currently, Commission rules protect ACP households from bill
shock in two ways. First, prior to enrolling a consumer in the ACP,
participating providers are required to obtain affirmative consumer
consent, either orally or in writing, that acknowledges that, after
having reviewed the required disclosures about the ACP, the household
consents to enroll with the provider. One of these required disclosures
is that the household will be subject to the provider's undiscounted
rates and general terms and conditions if the ACP ends. Second, the
Commission requires providers to obtain a household's opt-in, either
orally or in writing, to continue providing the broadband service to
the household after the end of the ACP and to charge a higher rate than
the household would pay if it were receiving the full discount
permitted under ACP rules.
7. Consistent with the direction from the Commission to the Bureau
to establish specific timeframes for consumer opt-ins and the
appropriate consumer notice, the notice requirements are intended to
ensure that enrolled households learn from their provider about the
impact that the end of the ACP will have on the household's broadband
bill. The Bureau does not prescribe a specific format or wording for
these consumer notices but, to ensure that the notices meaningfully
inform consumers about the impact of the end of the ACP on their
broadband bills, certain key pieces of information must be included in
the notices.
8. Timing and Content of Provider Notices. To ensure that ACP
households have multiple opportunities to receive information regarding
the end of the ACP and alternative broadband service plans, including
providers' low-income internet programs, and consistent with the goal
of ensuring ACP households remain connected, providers shall send at
least three notices related to the end of the ACP to their ACP
households. The first required notice shall be sent as soon as
practicable, but no later than 14 days after January 11, 2024, the
release of the Order, and shall generally advise ACP households about
the possibility of program termination and the potential impact on
their broadband service and bills. After the Bureau issues an
announcement of the end of the last fully funded month of the ACP,
providers shall send the second and third required notices to their ACP
households notifying those households about the end of the program. The
second required notice shall be sent as soon as practicable, but no
later than 15 days after the last fully funded month of the ACP is
announced by the Bureau. The third required notice shall coincide with
the last bill or billing cycle in which the full ACP benefit is
applied. The second and third required notices shall indicate that the
ACP is ending and shall include (1) the date of the last bill on which
the full ACP benefit will be applied and (2) the amount that the
household will be billed for the service once the full ACP benefit is
no longer available and/or that the household will be subject to the
provider's undiscounted rates and general terms and conditions after
the end of the ACP. The second and third notices shall also remind ACP
households of their ability to change their service and/or to opt out
of continuing their service at the end of the ACP. Providers are
strongly encouraged to include in these notices information on their
lower cost offerings and low-income programs or a phone number or link
to a website where ACP households may obtain such information.
Providers are not limited to sending only three notices to their ACP
households and are encouraged to correspond more frequently with their
ACP households should the provider believe that such additional
outreach is necessary or beneficial.
9. Delivery of Provider Notices. The required provider notices
shall be sent to ACP households in writing, in a manner that is
accessible to persons with disabilities. The Bureau does not prescribe
a specific format or wording for these consumer notices. However, the
Bureau encourages providers to send these notices in a format (e.g.,
email, text message, or paper mail) that is consistent with any
consumer expressed preferences for receiving notices and other
communications and using the same email, phone number, or mailing
address to which bills or other monthly communications are sent.
Providers are also encouraged to offer these notices in households'
preferred language.
10. Announcements and Notices from the Commission and USAC. Like
providers, the Commission and Universal Service Administrative Company
(USAC) have a responsibility to help enrolled households become aware
of the impact of the end of the ACP. To that end, the Bureau has been
coordinating with the Consumer and Governmental Affairs Bureau (CGB) to
identify necessary changes to consumer-facing Commission websites and
materials to effectively communicate end-of-program information upon
announcement of wind-down procedures and the end of the ACP. USAC, at
the Bureau's direction, has also been preparing updates to USAC
websites and materials, including <a href="http://Getinternet.gov">Getinternet.gov</a>, as needed. USAC also
played a critical role in communicating program information directly to
enrolled households in the past, such as during the transition from the
EBB Program to ACP in early 2022. Accordingly, the Bureau and USAC have
prepared and are ready to implement a communications plan for notifying
enrolled households directly of the end of ACP, including multiple
notices from USAC to ACP households.
11. Subscriber Opt-In. As with the transition from the EBB Program
to the ACP, the Commission's approach to subscriber opt-in balances the
goals of ensuring households can continue accessing the broadband
service they need for work, school, healthcare, and more and of
minimizing potential bill shock. Consistent with the requirement of
affirmative opt-in in the ACP Order, the elements for establishing a
household's affirmative opt-in to continuing to receive broadband
service after the end of the ACP.
12. For purposes of the unique circumstances of the wind-down of
the ACP and pursuant to the ACP Order, the Bureau finds that there are
two elements to establishing that a household has affirmatively opted-
in to continue receiving broadband service after the end of the ACP.
The first element is established by the household's
[[Page 7629]]
acknowledgment of having reviewed the required disclosures, which
include a statement that the household will be subject to the
provider's undiscounted rates and general terms and conditions if the
program ends, when enrolling in the EBB Program or the ACP. The second
element is establishing the household's willingness and ability to pay
for broadband service. Households are considered to have demonstrated a
willingness and ability to pay for broadband after the end of the ACP
if they (1) have informed their provider, either orally or in writing,
that the provider may continue providing broadband service to the
household after the end of the ACP and to charge a higher rate than the
household would pay if it were receiving the full discount permitted
under ACP rules; (2) were existing paying internet service customers
with their current broadband provider at the time the household
enrolled in the EBB Program or the ACP; or (3) currently pay a fee for
their ACP-supported broadband service.
13. This approach for households that have demonstrated a
willingness and ability to pay (i.e., that (1) already informed the
provider they would continue at a higher rate; (2) were existing paying
customers with the current provider before the EBB Program or the ACP;
or (3) currently pay a fee for their ACP-supported service) is
consistent with the approach to affirmative opt-in that the Commission
took in the ACP Order when transitioning households from the EBB
Program's $50 non-Tribal monthly benefit to the ACP's smaller $30 non-
Tribal monthly benefit. The EBB Program Order (FCC 21-29), 86 FR 19532,
April 13, 2021, had required providers to ``obtain an affirmative opt-
in from households . . . before they can be charged an amount higher
than they would pay under the full EBB Program reimbursement amount.''
However, the ACP Order deemed affirmative opt-in to include ``EBB
households that (1) were existing paying internet service customers
with the broadband provider when the household enrolled in the EBB
Program 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.'' As the ACP Order explained, ``[t]his
category of households has demonstrated to their current provider a
willingness and ability to pay for internet service; therefore, the
Bureau finds that there is little risk of unexpected financial harm
even if their bill may potentially increase up to $20.'' Interpreting
the entirety of the ACP Order, the Commission's statements express a
preference for a flexible approach to affirmative opt-in and provides
the Bureau with flexibility in implementing it.
14. In addition, this approach reduces the risk of subjecting a
large percentage of ACP households to service disruption and avoids
increasing administrative burdens on service providers and households.
The Bureau believes this approach will help guard against unintended
disconnections from broadband service for households that have
demonstrated a willingness to pay for broadband without the ACP
benefit, reduce consumer confusion and frustration, and mitigate bill
shock. In light of their demonstrated willingness and ability to pay
for broadband service and the required provider notifications to ACP
households regarding the end of the program--which must inform
households of their ability to change their service and/or to opt out
of continuing service at the end of the ACP, the risk of unexpected
financial harm for these households is low as compared to the risk of
harm to these households due to disconnection for failure to opt-in to
receive undiscounted service. For example, requiring a household that
was paying for non-discounted broadband service prior to enrollment in
the ACP to submit additional consent to retain that broadband service
with the provider after the end of the ACP could result in a
disconnection of broadband service should the household fail to timely
consent. The unwanted loss of broadband service could not only lead to
consumer confusion for such households, but could deprive those
households of the broadband connections they were relying on for needs
related to work, school, healthcare, and connections with governmental
services. Losing such access could, in turn, result in loss of access
to those services and employment, as the household spends the time to
restore service.
15. Consistent with the ACP Order's requirement of affirmative opt-
in, providers must collect an opt-in from households that have not
established affirmative opt-in as prior to charging them a higher rate
for that broadband service than the household was paying when the ACP
benefit was applied. For these households, there may be a stronger risk
of potential bill shock were they to receive a bill for undiscounted
broadband service. This opt-in for this category of ACP households is
warranted to ensure ACP households are adequately informed about their
options and to protect households from bill shock. The opt-in must be
collected either orally or in writing and providers may seek such opt-
in from households at any time before increasing the household's bill
due to the end of the ACP, including before the Bureau announces the
end of the last fully funded month of the program.
16. Ensuring ACP Households Remain Connected. The ACP has made
tremendous progress in bridging the digital divide by helping millions
of low-income households for whom the cost of internet service has been
a barrier to get or stay online. That progress would not be possible
without the many participating providers serving ACP households.
Unfortunately, losing the ACP benefit puts these ACP households at risk
of losing their internet service altogether. Nevertheless, the Bureau
is confident that participating providers will also play a crucial role
in fulfilling an important goal of the wind-down procedures laid out in
the Order: ensuring that ACP households remain connected at the end of
the program. Some participating providers currently make low-income
internet programs available to their households that can play a
critical role in keeping ACP households connected. Consistent with this
goal of ensuring that ACP households remain connected even after the
end of the ACP, providers who already offer low-income internet
programs are encouraged to help interested ACP households not already
participating in these programs to transition to these programs, and
providers that do not currently offer low-income internet programs are
encouraged to develop such programs.
17. Enrollment Freeze and Its Impact on ACP Outreach--Enrollment
Freeze. The Bureau will freeze new enrollments into the ACP beginning
on February 8, 2024. Accordingly, enrollments into the ACP will be
permitted until February 7, 2024, at 11:59 p.m. EST. The Bureau finds
that this freeze will help to more accurately project funding
exhaustion by increasing certainty in program commitments. For example,
an enrollment freeze mitigates the risk that a spike in enrollments or
device claims could hasten depletion of remaining ACP funds, preventing
the Commission from fully funding benefits through April 2024 as
currently projected. If funding were to run out earlier than projected,
then low-income households enrolled in the ACP might lose their
benefits earlier than anticipated, and before being given adequate time
to learn of the program's end and make alternative arrangements for
broadband
[[Page 7630]]
service without the ACP discount. The Bureau finds that freezing
enrollments will help reduce the risk of the last fully funded month
shifting earlier, thus permitting providers and USAC adequate time to
notify consumers about the impact on their broadband bills and services
should the ACP not receive more funding. Moreover, to more smoothly
administer the end of the program, providers and households must have
confidence that the ACP can support ACP benefits through the forecasted
end date.
18. At the Bureau's direction, USAC has developed and is ready to
implement procedures for this freeze on new enrollments, including
changes necessary to the National Lifeline Accountability Database
(NLAD) and provider processes, and to publish information on its
websites announcing the upcoming freeze in new enrollments. Any
existing ACP eligibility determinations and enrollments must be
completed by the time enrollments are to be frozen, and no future
eligibility determinations or enrollments will be made by USAC or
providers unless directed by the Bureau. The Bureau further directs
USAC to remove paper applications and links to the National Verifier
ACP application on its websites at the time of the enrollment freeze.
The Bureau recognizes that the freeze in enrollments will require
service providers to adjust their own processes, including those
relating to customer support and onboarding new ACP households. To ease
provider administration of the wind-down of ACP, the Bureau does not
require providers to perform transfer-in transactions for enrolled ACP
households seeking to transfer their benefit, and instead allows
providers to choose whether to accept transfers after the ACP
enrollment freeze. For those that wish to continue to accept new ACP
households via benefit transfers when enrollments into the program are
frozen, the Bureau reminds those providers that they must continue to
comply with the transfer notice and consent requirements in the
Commission rules, as well as any transfer processes implemented by
USAC.
19. With the anticipated freeze in enrollments, the Bureau also
plans to pause certain activities related to advertising, awareness,
and outreach. These activities were included when the ACP was first
established because the Commission recognized that, for the program to
achieve its full potential and reach as many eligible households as
possible, households likely to be eligible must be clearly informed of
the program's existence and key program information and that the
Commission, USAC, participating providers, and other stakeholders and
partners play an important role in disseminating information about the
ACP to enrolled households and households likely to be eligible.
Accordingly, the Commission adopted certain advertising and awareness
requirements consistent with the Infrastructure Act and implemented
certain statutorily authorized outreach tools. These activities that
promote awareness of and facilitate enrollment in the ACP must also
stop concurrently with the anticipated enrollment freeze, so as to
avoid consumer confusion.
20. Advertising, Notification Upon Subscription or Renewal, and
Public Awareness Requirements. The ACP rules include several
requirements to ensure that consumers receive meaningful notice of the
existence of the ACP. Commission rules require providers to publicize
the availability of the ACP in a manner reasonably designed to reach
those consumers likely to qualify for the program and in a manner that
is accessible to individuals with disabilities. In addition, consistent
with the statutory requirements laid out in the Infrastructure Act, the
ACP rules include a requirement that 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 ACP and
how to enroll, along with requirements governing the timing and
frequency of the required notices. Also consistent with the statutory
requirements laid out in the Infrastructure Act, the ACP rules include
a requirement that participating service providers carry out public
awareness campaigns in their ACP areas of service that highlight the
value and benefits of broadband internet access service and the
existence of the ACP in collaboration with state agencies, public
interest groups, and non-profit organizations.
21. As a general matter, ``an agency must adhere to its own rules
and regulations.'' Although strict application of a rule may be
justified ``to preserve incentives for compliance and to realize the
benefits of easy administration that the rule was designed to
achieve,'' the Commission's rules may be waived for ``good cause
shown.'' The Commission may exercise its discretion to waive a rule
where special circumstances warrant a deviation from the general rule,
and such deviation will serve the public interest. The Commission may
take into account considerations of hardship, equity, or more effective
implementation of overall policy on an individual basis. The Bureau,
under delegated authority, may act on requests for waiver of rules.
22. While the advertising and promotion requirements have played a
valuable part in educating the public about the ACP, continuing to
require providers to disseminate information about the ACP after the
program ceases to accept new enrollments in excess of statutory
requirements would cause consumer confusion and thus be contrary to the
public interest. Accordingly, the Bureau waives the requirements of
Sec. 54.1804(b) of the Commission's rules effective February 8, 2024,
concurrent with the start of the enrollment freeze, and this waiver
will remain in effect for the duration of the enrollment freeze. While
the Bureau is unable to waive the underlying statutory requirements set
forth in Sec. 54.1804(c) and (d) of the Commission's rules because
they are contained in the statute, the Bureau advises that conducting
campaigns informing consumers about the end of the ACP will be
considered to be in compliance with those statutory requirements during
the enrollment freeze.
23. ACP Outreach Grant and Pilot Programs. The Commission
established the Affordable Connectivity Outreach Grant and ACP Pilot
Programs to increase the awareness of and encourage participation in
the ACP among eligible households. Under the Affordable Connectivity
Outreach Grant Program, over 200 governmental and non-governmental
entities are receiving grant funding to promote awareness of the ACP.
The 23 participants in the Your Home, Your internet Pilot Program, and
the 11 participants in the ACP Navigator Pilot Program are connecting
with eligible households in their communities to promote the ACP and
help provide application assistance. Congress authorized the Commission
to ``conduct outreach efforts to encourage households to enroll in the
Affordable Connectivity Program'' including providing grants to
outreach partners in order to carry this out. The Commission, in
adopting rules for the Affordable Connectivity Outreach Grant Program,
stated ``[e]ntities that receive grant awards may continue to use their
grant funds for outreach until enrollments cease.'' The Commission
recognized that, should enrollments stop during the wind-down of the
ACP, continuing outreach efforts could undermine the objectives of the
grant programs and create consumer confusion. Additionally, it would
not be fiscally responsible to continue grant-funded
[[Page 7631]]
enrollment efforts after an enrollment freeze. Therefore, consistent
with the direction in the Commission's order establishing the
Affordable Connectivity Outreach Grant Program, which includes grant
funding for the ACP Pilots Programs, the Bureau and CGB will coordinate
on communications and instructions to grant recipients and pilot
participants on the need to cease grant-funded outreach work and other
pilot-related activities that focus on enrollment activities as a
result of the enrollment freeze.
24. Claims Process--Expedited Claims Submission Timeline. In the
ACP Order, the Commission delegated to the Bureau the authority to
develop procedures regarding how the remaining funds will be
distributed in the final month of the ACP, any timing considerations
related to the reimbursement process, and other procedures necessary to
smoothly wind down the program. Pursuant to this authority, the Bureau
adopts the following modifications to the existing reimbursement
process to require providers to submit new claims by the 1st of the
second month after the snapshot date. The Bureau finds these
modifications are necessary to help ensure that USAC has a timely
accounting of finalized provider claims to inform the forecast of
remaining program funds and for the smooth administration of end-of-
program procedures. Moreover, requiring providers to submit their
claims on a shorter timeline will help track limited funding as it
gives the Commission and USAC certainty of the amount the providers
seek to claim for each service month.
25. Beginning with the February 1, 2024, snapshot, the Bureau
requires participating providers to submit to USAC their reimbursement
claims for service for households captured on the snapshot report by no
later than the 1st of the second month after the snapshot date, or the
following business day in the event that the 1st falls on a weekend or
holiday. For example, all claims and upward revisions for the February
1 uniform snapshot date and for claims and upward revisions for
preceding months must be submitted no later than April 1, 2024.
Thereafter, all claims must be submitted no later than the 1st of the
second month after the snapshot date, or the following business day in
the event that the 1st falls on a weekend or holiday. Reimbursement
claims submitted after the deadline will not be processed. While
downward revisions will continue to be accepted, providers should make
every effort to ensure that their reimbursement claims are complete and
accurate, particularly as the ACP enters the wind-down phase. To
facilitate the efficient wind-down of the ACP, the Bureau strongly
encourages providers to submit any remaining outstanding claims for
reimbursement or revisions prior to February 1, 2024. Should the ACP
receive additional funding, the Bureau will re-evaluate the need to
continue to require providers to submit claims on this new timeline.
26. Partial Reimbursement. In the event that reimbursement claims
in the final month of the ACP exceed the amount of remaining funds,
reimbursements for benefits passed through to households will be paid
out to providers on a reduced, pro-rata basis. For example, if based on
the forecast of the depletion of funding, the remaining balance in the
Affordable Connectivity Fund (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.
Similarly, if the Fund is only sufficient to pay 40% of each
reimbursement claim in the final month, the Fund will pay out 40% of
each claim on a pro-rata basis. The Bureau recognizes that the ACP
Order contained language that suggested that providers would ``in no
circumstances'' receive less than 50%'' of the providers' claim for the
final month. However, the ACP Order also recognizes that the Fund might
not support a 50% pro-rata payout in the final month on claims
submitted and directs staff in this event to determine how best to use
the remaining funds consistent with the law. Interpreting the entirety
of the relevant paragraph, along with the fact that the Fund is
limited, the Commission's statement expresses a preference for a pro-
rata reimbursement scheme and also provides the Bureau with flexibility
in implementing it if the Fund will not support a 50% pro-rata
reimbursement rate in the final month. The Bureau intends, absent
unforeseen circumstances, to direct USAC to provide notice to
participating providers of whether providers will receive partial
payment and the projected pro-rata share of such partial payments for
that month as soon as practicable.
27. The Bureau understands that providers desire certainty as to
whether there will be funding to allow for a partial month payment for
benefits passed through to ACP households and as to the amount that the
fund can reimburse providers for that benefit applied to ACP
households' bills. Without this certainty, providers may end up passing
through a benefit to households for which they may not receive full
reimbursement if the ACP cannot fund that reimbursement at the very end
of the program. The Bureau also recognizes the financial hardship that
receiving a partial reimbursement may place not only on providers, but
also on existing households, who may receive an unanticipated bill to
cover the difference between the full ACP discount the household was
expecting and the partial benefit that was applied. Therefore, to
assist providers in winding down their own participation in the
program, the Bureau allows ACP participating providers to choose
whether to forego providing ACP service and receiving partial payment
for discounts passed through to ACP households after the last fully
funded month. At the time of the announcement of the end of the last
fully funded month of the ACP, the Bureau will provide guidance to
providers that wish to receive reimbursement for discounts provided to
ACP households beyond that last fully funded month concerning how to
notify USAC of their intention to do so. Providers that choose to forgo
receiving partial reimbursement for the final month will not be
required to pass through any benefits to ACP households after the
announced last fully funded month. Providers that forgo reimbursement
after the last announced fully funded month will not be expected to
comply with voluntary withdrawal requirements set forth in Sec.
54.1801(e) of the Commission's rules.
28. Provider Applications and ACP High-Cost Area Benefit
Eligibility--Provider Application and Approval. The Bureau finds that
it would be administratively inefficient and confusing to consumers to
approve new provider applications for the ACP when enrollments have
been frozen. Processing new provider applications, approvals, and
election notices risks confusing ACP households by creating a false
expectation that, by subscribing with a newly approved provider, the
household would be able to enroll or transfer to that provider to
receive the ACP benefit during the enrollment freeze. Accordingly, the
Bureau and USAC will stop reviewing new provider applications and
election notices, as well as new applications for alternative
verification processes, on February 7, 2024, at 6 p.m. EST, concurrent
with the final day that enrollments will be permitted in the program.
While application and election notice reviews are frozen, providers,
however, must continue to update contact, device, or other
participation information to USAC
[[Page 7632]]
in accordance with the Commission's rules.
29. High-Cost Area Benefit Provider Applications. As required by
the Infrastructure Act, the Bureau established a mechanism for
providers to offer a benefit to eligible households in certain areas
designated as ``high-cost'' by the National Telecommunications and
Information Administration (NTIA). In keeping with those requirements,
around the same time NTIA designated such high-cost areas, on November
1, 2023, the Bureau announced that USAC will begin accepting
applications from providers seeking to qualify to offer the high-cost
area ACP benefit on January 17, 2024. Due to the depletion of funding
and upcoming enrollment freeze, USAC will not accept provider
applications to offer the high-cost area benefit. The Bureau finds that
processing high-cost area benefit applications and releasing
educational and training materials related to the high-cost area
benefit during the enrollment freeze would cause confusion among
current and potential ACP households. Approving ACP high-cost area
benefit applications, publishing information, and moving ahead with
implementing the enhanced benefit while new households and providers
cannot enter the program could cause confusion among subscribers about
the future status of the program and the availability of the enhanced
benefit for new subscribers or providers. Furthermore, changing the
amount of the discount received by ACP households enrolled with a
provider approved to offer the ACP high-cost area benefit, from $30 to
$75, may cause increased consumer confusion with regard to the
availability of program funding. The Bureau will re-evaluate the status
of the ACP high-cost area benefit provider applications if the ACP
receives additional funding.
30. Ongoing Program Integrity Obligations. The Commission is
committed to ensuring the integrity of the ACP and addressing potential
non-compliance using the full range of the Commission's authority and
available tools, including audit and investigatory procedures and in
cooperation with the FCC Office of Inspector General and law
enforcement agencies. This commitment will continue during the ACP
wind-down phase. The Bureau reminds participating service providers of
their obligation to use robust policies and procedures for ensuring
compliance with the Commission's rules--including the requirements set
forth in the Order concerning consumer notices, opt-ins, and other
aspects of wind-down--and de-enrolling households as appropriate. Even
during a wind-down period, the Commission will use the full range of
its authority and available tools to address non-compliance with the
ACP rules, and providers are reminded of their obligation to comply
with USAC and Commission requests. Providers are also reminded of their
document retention requirements under the ACP programmatic rules, which
will extend after the end of the ACP. Similarly, the Commission and
USAC will retain records from the ACP under applicable National
Archives and Records Administration schedules and directives--after
which, the Commission will appropriately dispose of such records and
rescind the applicable System of Records Notice under the Privacy Act
of 1974.
III. Procedural Matters
31. Paperwork Reduction Act Analysis. This document does not
contain new or modified information collection requirements subject to
the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. In
addition, therefore, it does not contain any new or modified
information collection burden for small business concerns with fewer
than 25 employees, pursuant to the Small Business Paperwork Relief Act
of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
32. The Bureau finds that notice and comment procedures are not
required here under the Administrative Procedure Act, 5 U.S.C. 551 et
seq. The Bureau notes that section 904(h) of the Consolidated
Appropriations Act of 2021, which established the Emergency Broadband
Benefit Program, the predecessor to the ACP, included an exemption from
APA rulemaking requirements. See Consolidated Appropriations Act, div.
N, tit. IX, section 904(h)(1), codified at 47 U.S.C. 1752(h)(1). In
addition, certain of the rules being adopted here are procedural rules
that are exempt from the notice and comment requirements.
Administrative Procedure Act, 5 U.S.C. 553(b)(A). To the extent the
rules adopted here are substantive rules not otherwise exempt from the
APA rulemaking requirements, the Bureau finds good cause to forego
notice and comment because it would be impracticable and contrary to
the public interest. See id. at Administrative Procedure Act, 5 U.S.C.
553(b)(B). Given the short period of time between now and the projected
depletion of ACP funding, undertaking notice and comment would not
permit the Bureau to adopt rules with enough time for providers and
USAC to prepare for wind-down and give adequate notice to ACP
households about the end of the program. This could lead to substantial
consumer confusion and result in unwanted disruptions to service for
ACP households that could deprive households of the broadband
connections they need for work, school, healthcare, and more and
potentially resulting in significant adverse impacts on employment,
education, and access to healthcare for millions of low-income
consumers. The Bureau also notes that the Order was effective January
11, 2024, pursuant to the exemption in 47 U.S.C. 1752(h)(1), and also
finds good cause for doing so for all the reasons stated.
33. Accordingly, it is ordered, pursuant to the authority contained
in Sec. Sec. 0.91, 0.291, and 1.3 of the Commission's rules, 47 CFR
0.91, 0.291, and 1.3, that 47 CFR 54.1804(b) of the Commission's rules
is waived effective February 8, 2024, to the extent described herein.
34. Accordingly, it is ordered, pursuant to pursuant to the
authority contained in in section 904 of division N, title IX of the
Consolidated Appropriations Act, 2021, Public Law 116-260, 134 Stat.
1182 as amended by Infrastructure Investment and Jobs Act, Public Law
117-58, 135 Stat. 429 (2021), 5 U.S.C. 551 et seq., and Sec. Sec.
0.91, 0.291, and 1.3 of the Commission's rules, 47 CFR 0.91, 0.291, and
1.3, section 303(r) of the Communications Act, as amended, 47 U.S.C.
303(r), and Sec. Sec. 0.91 and 0.291 of the Commission's rules, 47 CFR
0.91 and 0.291, that the Order is adopted.
35. It is further ordered, that pursuant to Sec. 1.102(b)(1) of
the Commission's rules, 47 CFR 1.102(b)(1), the Order shall be
effective January 11, 2024.
Federal Communications Commission
Trent Harkrader,
Chief.
[FR Doc. 2024-02093 Filed 2-2-24; 8:45 am]
BILLING CODE 6712-01-P
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</html>Indexed from Federal Register on February 5, 2024.
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