[Federal Register Volume 64, Number 246 (Thursday, December 23, 1999)]
[Notices]
[Pages 72226-72234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33327]



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Part V





Department of Commerce





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National Telecommunications and Information Administration



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Public Telecommunications Facilities Program: Closing Date; Notice

  Federal Register / Vol. 64, No. 246 / Thursday, December 23, 1999 / 
Notices  

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DEPARTMENT OF COMMERCE

National Telecommunications and Information Administration
[Docket No. 991210330-9330-01]
RIN 0660-ZA10


Public Telecommunications Facilities Program: Closing Date

AGENCY: National Telecommunications and Information Administration 
(NTIA), Commerce.

ACTION: Notice of Availability of Funds.

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SUMMARY: The National Telecommunications and Information Administration 
(NTIA), U.S. Department of Commerce, announces the solicitation of 
applications for planning and construction grants for public 
telecommunications facilities under the Public Telecommunications 
Facilities Program (PTFP).

DATES: Pursuant to 15 CFR 2301.8(b), the Administrator of NTIA hereby 
establishes the closing date for the filing of applications for grants 
under the PTFP. The closing date selected for the submission of 
applications for FY 2000 is February 17, 2000. Applications must be 
received prior to 8 p.m. on or before February 17, 2000. Applications 
submitted by facsimile or electronic means are not acceptable.

ADDRESSES: To obtain an application package, submit completed 
applications, or send any other correspondence, write to: NTIA/PTFP, 
Room H-4625, U.S. Department of Commerce, 1401 Constitution Avenue, NW, 
Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: William Cooperman, Director, Public 
Broadcasting Division, telephone: (202) 482-5802; fax: (202) 482-2156. 
Information about the PTFP can also be obtained electronically via 
Internet (http://www.ntia.doc.gov/otiahome/ptfp).

SUPPLEMENTARY INFORMATION:

I. Application Forms and Regulations

    Applicants for matching grants under the PTFP must file their 
applications on or before Thursday, February 17, 2000. NTIA anticipates 
making grant awards by September 30, 2000. NTIA shall not be liable for 
any proposal preparation costs.
    Approximately $26 million is available for FY 2000 for PTFP grants 
pursuant to Pub. L. 106-113, the ``Consolidated Appropriations Act, 
Fiscal Year 2000''. The amount of a grant award by NTIA will vary, 
depending on the approved project. For fiscal year 1999, NTIA awarded 
$21.7 million in funds to 99 projects. The awards ranged from $5,538 to 
$1,028,450.
    The applicable Rules for the PTFP were published on November 8, 
1996 (61FR 57966). Copies of the 1996 Rules will be posted on the NTIA 
Internet site and NTIA will make printed copies available to 
applicants. NTIA is hereby notifying potential applicants of the 
procedures that will be used to process applications for digital 
television conversion projects in the FY 2000 grant round. Parties 
interested in applying for financial assistance should refer to these 
rules and to the authorizing legislation (47 U.S.C. 390-393, 397-399b) 
for additional information on the program's goals and objectives, 
eligibility criteria, evaluation criteria, and other requirements.
    To apply for a PTFP grant, an applicant must file an original and 
five copies of a timely and complete application on a current form 
approved by the Agency. Applicants for television projects in the 
Broadcast Other category (15 CFR 2301.4(b)(6)) are requested to supply 
one additional copy of their application (an original and six copies), 
if this does not create a hardship on the applicant. The current 
application form will be provided to applicants as part of the 
application package. This form expires on November 30, 2000, and no 
previous versions of the form may be used. (In accordance with the 
Paperwork Reduction Act, the current application form has been cleared 
under OMB control no. 0660-0003.)
    Applicants sending applications by the United States Postal Service 
or commercial delivery services must ensure that the carrier will be 
able to guarantee delivery of the application by the Closing Date and 
Time. NTIA will not accept mail delivery of applications posted on the 
Closing Date or later and received after the above deadline. However, 
if an application is received after the Closing Date due to (1) Carrier 
error, when the carrier accepted the package with a guarantee for 
delivery by the Closing Date, or (2) Significant weather delays or 
natural disasters, NTIA will, upon receipt of proper documentation, 
consider the application as having been received by the deadline.
    Applicants submitting applications by hand delivery are notified 
that, due to security procedures in the Department of Commerce, all 
packages must be cleared by the Department's security office. Entrance 
to the Department of Commerce Building for security clearance is on the 
15th Street side of the building. Applicants whose applications are not 
received by the deadline are hereby notified that their applications 
will not be considered in the current grant round and will be returned 
to the applicant. See 15 CFR 2301.8(c); but see also 15 CFR 2301.26. 
NTIA will also return any application which is substantially 
incomplete, or when the Agency finds that either the applicant or 
project is ineligible for funding under 15 CFR 2301.3 or 2301.4. The 
Agency will inform the applicant of the reason for the return of any 
application.
    All persons and organizations on the PTFP's mailing list will be 
sent a notification of the FY 2000 Grant round. Copies of the 
application forms, Final Rules, Closing Date notification and 
application guidelines will be available on the NTIA Internet site: 
www.ntia.doc.gov/otiahome/ptfp. Those not on the mailing list or who 
desire a printed copy of these materials may obtain copies by 
contacting the PTFP at the telephone and fax numbers, at the Internet 
site, or at mailing address listed above. Prospective applicants should 
read the Final Rules carefully before submitting applications. 
Applicants whose applications were deferred in FY 1999 will be mailed 
information regarding the reactivation of their applications. 
Applicants whose television projects were deferred from FY 99 should 
carefully review Section III, Television Broadcasting and Digital 
Conversion, regarding changes in policies which may apply to the 
reactivation of their applications.
    Indirect costs for construction applications are not supported by 
this program. The total dollar amount of the indirect costs proposed in 
a planning application under this program must not exceed the indirect 
cost rate negotiated and approved by a cognizant Federal agency prior 
to the proposed effective date of the award.
    Special Note: NTIA has established a policy which is intended to 
encourage stations to increase from 25 percent to 50 percent the 
matching percentage for those proposals that call for equipment 
replacement, improvement, or augmentation (PTFP Policy Statement, 56 FR 
59168 (1991)). The presumption of 50 percent funding will be the 
general rule for the replacement, improvement or augmentation of 
equipment. (This 50 percent presumption, however, does not apply to 
digital television projects as explained in Section III. Television 
Broadcasting and Digital Conversion.) A showing of extraordinary need 
(i.e. small community-licensee stations or a station that is licensed 
to a large institution (e.g., a college or university) documenting that 
it does not receive direct or in-kind support from the larger 
institution) or an emergency situation

[[Page 72227]]

will be taken into consideration as justification for grants of up to 
75 percent of the total project cost for such projects.
    A point of clarification is in order: NTIA expects to continue 
funding projects to activate stations or to extend service at up to 75 
percent of the total project cost. NTIA will do this because applicants 
proposing to provide first service to a geographic area ordinarily 
incur considerable costs that are not eligible for NTIA funding. The 
applicant must cover the ineligible costs including those for 
construction or renovation of buildings and other similar expenses.
    Since NTIA has limited funds for the PTFP program, the PTFP Final 
Rules (published November 8, 1996) modified NTIA's policy regarding the 
funding of planning applications. Our policy now includes the general 
presumption to fund planning projects at no more than 75 percent of the 
project costs. NTIA notes that most of the planning grants awarded by 
PTFP in recent years include matching in-kind services and funds 
contributed by the grantee. The new NTIA policy, therefore, codifies 
what already has become PTFP practice. NTIA, however, is mindful that 
planning grants are sometimes the only resource that emerging community 
groups have with which to initiate the planning of new facilities in 
unserved areas. We, therefore, will continue to award up to 100 percent 
of total project costs in cases of extraordinary need (e.g. small 
community group proposing to initiate new public telecommunication 
service).
    We take this opportunity to restate the policy published in the 
November 22, 1991, PTFP Policy Statement (56 FR 59168 (1991)), 
regarding applicants' use of funds from the Corporation for Public 
Broadcasting (CPB) to meet the local match requirements of the PTFP 
grant. NTIA continues to believe that the policies and purposes 
underlying the PTFP requirements could be significantly frustrated if 
applicants routinely relied upon another Federally supported grant 
program for local matching funds. Accordingly, NTIA has limited the use 
of CPB funds for the non-Federal share of PTFP projects to 
circumstances of ``clear and compelling need'' (15 CFR 2301.6(c)(2)). 
NTIA intends to maintain that standard and to apply it on a case-by-
case basis.

II. Radio Broadcasting

    During the FY 2000 grant round, NTIA is proposing no changes from 
prior years in its support of radio applications. The policies 
implemented in the next section of this document on Television 
Broadcasting and Digital Conversion apply only to digital television 
applications. The eligibility or priority of radio projects, 
eligibility of radio equipment and the 50% presumption of funding for 
radio equipment replacement applications remain as they were in the FY 
99 grant round. NTIA will take great care to ensure that its funding of 
radio applications reflects its responsibilities under 47 U.S.C. 393(c) 
that ``a substantial amount'' of each year's PTFP funds should be 
awarded to public radio.
    NTIA encourages the use of digital technologies for public radio 
facilities. NTIA has funded projects for digital STLs and audio 
production equipment which will assist public radio stations as they 
prepare for conversion to digital technologies. These digital projects 
are funded as equipment replacement, improvement or augmentation 
projects with the presumption of a 50 percent Federal share as 
discussed earlier in Section I of this document, Application Forms and 
Regulations, unless a showing of extraordinary need for a higher 
percentage has been made pursuant to Sec. 2301.6(b)(ii) of the PTFP 
Rules.
    For fiscal year 1999, NTIA awarded $2.1 million in funds to 35 
grants for public radio projects. The awards ranged from $5,538 to 
$251,461.

III. Television Broadcasting and Digital Conversion

    As outlined in this section, NTIA is establishing new policies in 
the FY 2000 grant round that will apply only to FY 2000 applications 
for projects to convert public television stations to digital 
transmission capability. The FCC's adoption of the Fifth Report and 
Order in April 1997 requires that all public television stations begin 
the broadcast of a digital signal by May 1, 2003. This deadline is so 
close that NTIA decided that the new policies should be applied in the 
FY 2000 grant round. At the same time, NTIA wishes to invite comment on 
these policies. All comments received will be considered carefully for 
possible modification of the policies in subsequent years. They will be 
printed or summarized in the Notice for the next grant round. Please do 
not include your comments with any application you may submit, but 
rather send them directly to the PTFP Director. Comments may be 
submitted to William Cooperman, Director, Public Broadcasting Division, 
by mail (see the ADDRESS section), by fax at (202) 482-2156, or by e-
mail to [email protected].
    NTIA recognizes that meeting the FCC's deadline is one of the 
greatest challenges facing America's public television stations. Over 
350 stations must overcome both technical and financial challenges in 
order to complete conversion to digital broadcasting within the FCC's 
timetable.
    In February 1999, the Administration proposed a major expansion of 
the PTFP and recommended that $355 million be appropriated to NTIA over 
a five-year period. These funds would primarily be used to assist 
public television stations in meeting the FCC's deadline. While these 
sums are significant, NTIA anticipates that the majority of funds 
required to convert all the nation's public television stations will 
actually come from non-Federal sources.
    For fiscal year 1999, NTIA awarded $15.7 million in funds to 43 
projects which assisted public television stations in the conversion to 
digital technologies. The awards ranged from $25,252 to $1,028,450. 
NTIA awarded approximately $5.4 million from the Broadcast Other 
category to complete the digital conversion of eight public television 
stations. NTIA also awarded an additional $5.3 million in equipment 
replacement funds to seven projects which completed major phases of 
digital conversion projects, such as the funding of two digital 
statewide interconnection projects and eight replacement transmitters. 
Further, an additional $5 million was awarded to 28 projects to 
purchase digital television equipment required for the orderly 
conversion of a station to digital broadcasting.
    NTIA has considered how best to efficiently implement the 
distribution of digital conversion funds to public television stations 
through the PTFP. NTIA has received recommendations on this subject 
from several public broadcasting organizations, including the 
Corporation for Public Broadcasting's Task Force on Digital Television 
Funding, the Association of America's Public Television Stations and 
its Legislative Advisory Group, and the Organization of State 
Broadcasting Executives. NTIA has also discussed with many individual 
public television stations the challenges presented by the May 2003 
deadline.
    One of NTIA's goals during the FY 2000 grant round is to ensure 
that PTFP's administrative procedures as well as its funds can support 
public television's needs in meeting the FCC's 2003 deadline. Another 
of NTIA's goals is to maintain an acceptable balance between equipment 
replacement projects and digital television conversion projects. As a 
result of these discussions, NTIA is implementing several new policies/
procedures which will assist public television stations in

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the application for and use of PTFP funds for digital conversion 
projects.
    These new policies/procedures are summarized here and then are 
discussed fully in parts A through G later in this section:
    (A) Digital television conversion projects and digital equipment 
replacement. NTIA has established a ``Digital TV List'' which includes 
the equipment eligible for PTFP funding under the Broadcast Other 
category. NTIA will also use the ``Digital TV List'' for most 
television equipment replacement projects and modifies the way it views 
television replacement applications.
    (B) Multi-year funding. NTIA will accept applications under the 
Broadcast Other category for phased projects requesting funding for up 
to four years and which are intended to enable all of the applicant's 
public television stations to meet the FCC's May 2003 digital 
broadcasting deadline.
    (C) Effective date for expenditure of local matching funds. 
Applicants for digital conversion projects in the Broadcast Other 
category may include eligible equipment from the Digital TV List in 
their projects when that equipment is purchased with non-Federal funds 
after July 1, 1999.
    (D) Subpriorities for digital conversion projects. NTIA is creating 
three Subpriorities to aid in the processing of digital conversion 
applications.
    (E) Funding levels for television projects. NTIA has revised the 
presumption of funding from 50% Federal share for most television 
projects to 40%, has established simplified procedures so stations can 
qualify for hardship grants up to a 67% Federal share, and will provide 
incentives for applicants who request only 25% Federal funding.
    (F) Use of CPB funds. Applicants may use CPB funds as part of their 
local non-Federal match in cases of clear and compelling need.
    (G) Partnerships; urgency. NTIA encourages partnerships with 
commercial as well as noncommercial organizations and clarifies its 
consideration of urgency for digital conversion applications. NTIA 
believes that digital conversion applications should be afforded high 
urgency when they document time-sensitive partnerships, time-sensitive 
funding opportunities, or which include the replacement of equipment 
required to maintain existing service.
    In developing these policies for the FY 2000 grant round, NTIA 
intends to remain responsive to the equipment replacement needs of 
public television stations. NTIA's balancing of equipment replacement 
and digital conversion applications is discussed in the following 
sections.
    In order to assist public television stations in meeting the FCC's 
May 2003 deadline and to facilitate a station's raising non-Federal 
matching funds required for digital conversion projects. NTIA is 
adopting new application procedures in the following areas.
    (A) Digital Television Conversion Projects and Digital Equipment 
Replacement. For FY 2000, NTIA will support the equipment necessary for 
a public television station to comply with the FCC's 2003 deadline. 
This includes equipment required for digital broadcast of programs 
produced locally in analog format as well as the broadcast of digital 
programming received from national sources. NTIA is posting on its 
Internet site a listing of transmission and distribution equipment (as 
contained in the ``Digital TV List'') which is eligible for PTFP 
digital television conversion funding. Printed copies of this list are 
also available from PTFP at the address shown in the ADDRESS section of 
this document. This list was developed in conjunction with the Public 
Broadcasting Service and is similar to equipment lists PTFP used during 
last year's grant round. The Digital TV List includes transmission 
equipment (transmitters, antennas, STLs, towers, etc.) as well as 
distribution equipment located in a station's master control (routing 
switchers, video servers, PSIP generators, digital encoders, etc.). 
Applications seeking funding for the equipment necessary to meet the 
FCC's 2003 deadline will, as in FY 98 and FY 99, be placed in the 
Broadcast Other category.
    NTIA believes that many stations must replace obsolete equipment in 
order to complete their digital conversion projects. NTIA is now 
revising its policies to permit the replacement of obsolete equipment 
as part of digital conversion projects. If the conversion to digital 
transmission includes the urgent replacement of an existing item of 
equipment, the application will be considered as a Broadcast Other, 
rather than as replacement under Priorities 2 or 4. Replacement of 
existing equipment then is a normal part of a digital conversion 
application.
    If the purpose of an application is just for replacement of 
urgently needed equipment, even though the equipment is drawn from the 
Digital TV List, the application will be classified as a Priority 2 or 
4, as appropriate.
    Any application which includes equipment replacement as a 
justification for the urgency criterion should submit documentation of 
downtime or other evidence in support of the urgency evaluation 
criterion as contained in Sec. 2301.17 of the PTFP Final Rules. The 
need to replace current equipment in order to maintain existing 
services will, in many cases, strengthen the urgency criterion of a 
digital conversion application.
    Because of the requirement that all public television stations 
begin their digital broadcasts by May 2003, all public television 
applications, whether submitted for Priority 2, Priority 4 or the 
Broadcast Other category, should include the station's comprehensive 
plan for digital conversion to meet the FCC's deadline and explain how 
the requested equipment is consistent with that plan. If the applicant 
is still developing its plan for digital conversion, the application 
should address how the requested equipment will be consistent with the 
overall objective of converting the facility for digital broadcasting. 
Failure to provide detailed information on the applicant's proposed or 
existing digital conversion plan will place a television application at 
a competitive disadvantage during the evaluation of the technical 
qualification criterion as described in 15 CFR 2301.17 of the PTFP 
Rules.
    NTIA calls applicants' attention to the fact that television 
production equipment is not included on the Digital TV List but will be 
found on other equipment lists posted on the NTIA Internet site or 
available from NTIA by mail. NTIA notes that while a television station 
must use digital transmission and distribution equipment to begin 
digital broadcasting, digital production equipment is not required to 
meet the FCC's May 2003 deadline. As the FCC deadline approaches, NTIA 
has reluctantly concluded that, with the funds available to it in FY 
2000, it cannot fund television production equipment at the same level 
as it has in the past. Television production equipment will continue to 
be eligible for PTFP funding under Priority 2 and Priority 4, as 
appropriate. However, for the FY 2000 grant round NTIA will fund 
television production equipment replacement applications only for those 
projects that present a ``clear and compelling'' case for the urgency 
of such replacement. NTIA anticipates funding television production 
replacement projects in FY 2000, though fewer than in recent years.
    When making the final selection of awards under the procedures of 
Sec. 2301.17, NTIA will take care to ensure that there is an acceptable 
balance between projects awarded for

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equipment replacement projects and those awarded for digital conversion 
projects. Further, NTIA will consider as part of this balance those 
stations in the Broadcast Other category (1) Which request digital 
conversion projects and (2) Which also include elements of equipment 
replacement. NTIA will not fund applications in the Broadcast Other 
category requesting digital conversion to the exclusion of those 
Broadcast Other applications which include documentation supporting 
equipment replacement as part of their urgency justification. Further, 
in making funding decisions for FY 2000, NTIA will limit its support of 
television replacement applications for production equipment to those 
applications which present a ``clear and compelling'' justification for 
funding during the current grant round.
    A complete listing of equipment eligible for funding during the FY 
2000 grant round is posted on the NTIA Internet site and printed copies 
are available from PTFP.
    (B) Multi-year funding. NTIA anticipates that it will take many 
public television licensees several years to complete their digital 
conversion projects. The time required to complete a digital conversion 
project will be determined by several factors. In some instances, it 
will take a station several years to raise the local funds required to 
complete the project. Even if a station has accumulated all the funds 
required for its digital conversion project, the technical complexity 
of some projects (such as the construction of a 1,000-foot tower) will 
probably require several years to complete. Finally, many public 
television licensees operate several stations and are, therefore, 
responsible for the conversion of multiple broadcast facilities.
    NTIA recognizes that the construction period for many of these 
digital conversion projects must, of necessity, be longer than the 
typical one to two years of the usual PTFP grant. Further, NTIA 
acknowledges that, with the funds available for award, the PTFP would 
be unable to fully fund more than a few of the digital conversion 
applications it could receive in FY 2000.
    Therefore, for FY 2000, the PTFP will accept construction 
applications within the Broadcast Other category for digital television 
conversion projects which propose multi-year funding.
    Applicants may submit project plans and budgets for up to four 
years. A multi-year application must contain the applicant's entire 
digital conversion plan. The plan must be divided into annual phases, 
with each year's request a severable phase of the project. The 
application must identify the Federal funds requested for each year. 
Projects will be funded for no more than one year at a time.
    Once a project is approved for first year funding, applicants will 
not be required to compete each year for funding of subsequent phases. 
Funding for each subsequent year will be at the sole discretion of the 
Department of Commerce and will depend on satisfactory performance by 
the recipient and the availability of funds to support the continuation 
of the project(s).
    Projections based on previous experience indicate availability of 
between $10 million and $15 million to support multi-year digital 
television projects in FY 2000. The exact level of funding available 
for multi-year awards will be determined by NTIA after a review of 
applications submitted for multi-year awards and those radio, 
television and distance learning applications requesting a regular 
award.
    NTIA believes that initiating multi-year funding for digital 
television awards has significant benefits for both public television 
licensees and NTIA.
     Submission of a multi-year application particularly should 
help applicants which must convert multiple broadcast transmitters. 
NTIA understands that many stations have already begun to raise 
significant non-Federal funds with which they can begin to implement 
their digital conversion plans. Upon submission of a multi-year 
application, an applicant could begin spending its local match--at its 
own risk. An applicant, therefore, might be able to complete a portion 
of its digital conversion project using its local non-Federal funds for 
which Federal matching funds may not be available for several years. 
(For example, a future phase of a statewide project might be the 
conversion of two repeater stations; one might be constructed with 
available non-Federal funds, the second constructed if Federal funds 
are received). Applicants are cautioned, however, that while 
expenditure of the local match is permitted, PTFP Rules 
(Sec. 2301.6(d)) prohibit a grantee from obligating funds from the 
eventual Federal share of an award before a grant is actually awarded.
     NTIA believes that a multi-year award will reduce the 
administrative burden on both grantees and the PTFP. Grant recipients 
will submit only one application to cover the multiple years of their 
award, saving both the grantee and the PTFP the administrative tasks 
required to process applications during the annual grant round.
     Multi-year applications and awards will also assist both 
NTIA and public broadcasting licensees in the advance planning required 
to complete the conversion of almost 350 television facilities by May 
2003.
     By issuing multi-year grants, NTIA would be able to fund 
the initial phases of more digital conversion projects with the monies 
available in FY 2000 than if PTFP funded fewer entire digital 
conversion plans.
    NTIA believes that multi-year funding through the Broadcast Other 
category also is appropriate for projects which include urgent 
replacement of equipment, since, as noted earlier, most television 
equipment replacement requests can be viewed as one phase of a 
station's conversion to digital broadcasting.
    Since NTIA for the first time is supporting multi-year funding for 
digital conversion applications, applicants who are reactivating 
applications deferred from the FY 99 grant round will be permitted to 
revise their applications to include their full digital conversion 
plans. This includes those applications which were submitted during the 
FY 1999 grant round as Priority 2 or Priority 4 equipment replacement 
applications, which may be reactivated as Broadcast Other digital 
conversion applications. Applications which are reactivated for the FY 
2000 grant round must comply with the guidelines included in this 
notice, including the funding levels for television projects discussed 
later in this document.
    Applicants submitting projects for consideration under the 
Broadcast Other category have a choice and may request either multi-
year funding or a single grant. However, applications submitted for 
consideration under Priority 2 or Priority 4 may only request a single 
grant for a project, as in the past. NTIA anticipates that a majority 
of the television grants funded in FY 2000 will include multi-year 
projects.
    (C) Effective date for expenditure of local matching funds for 
digital conversion projects. NTIA recognizes that many public 
television stations have begun to raise significant non-Federal funds 
for their digital conversion projects. State or local governments may 
have appropriated funds to initiate digital conversion projects that, 
by local law, must be expended during the fiscal year in which they are 
awarded. Public television licensees that have raised significant non-
Federal funds may desire to take advantage of unique opportunities 
(such as partnering with other stations to share broadcast

[[Page 72230]]

antennas or towers). Some stations may be anxious to begin digital 
conversion projects with long lead times for completion, or may desire 
to begin digital broadcasting on the same timetable as commercial 
stations in their market. Within the limitations of Federal 
regulations, NTIA supports efforts undertaken by public television 
stations which bring the benefits of digital television broadcasting to 
their communities as quickly as possible.
    In order to facilitate the raising of non-Federal funds for digital 
television projects and to also permit stations to begin construction 
of their digital facilities as soon as possible, NTIA will permit an 
applicant for a Broadcast Other project to include equipment in a PTFP 
application if the equipment was purchased with non-Federal funds after 
July 1, 1999. This date was selected to coincide with the beginning of 
the 2000 fiscal year used by many state and local governments. NTIA 
also anticipates that July 1, 1999 will be the effective date in the FY 
2001, FY 2002 and FY 2003 grant rounds for the expenditure of non-
Federal funds for projects in the Broadcast Other category. Applicants 
who desire to use equipment purchased prior to July 1, 1999 as part of 
their local match must submit a ``clear and compelling justification'' 
supporting their request.
    Applicants who are reactivating applications deferred from the FY 
99 grant round will be permitted to use the closing date of their 
original applications.
    (D) Subpriorities for Digital Conversion Projects. As almost 350 
public television stations are required to convert to digital 
broadcasting by May 2003, NTIA anticipates a significant increase in 
the number of applications in the Broadcast Other category for digital 
conversion projects. In order to process these applications in an 
orderly manner and to provide guidance to potential applicants for the 
FY 2000 grant round, NTIA will divide the applications received for 
digital conversion projects in the Broadcast Other category into three 
subpriorities; Broadcast Other-A; Broadcast Other-B, and Broadcast 
Other-C.
    These three divisions are intended to reflect the priorities NTIA 
has used in the evaluation of traditional broadcast applications and to 
place a premium on projects either to assist stations providing sole 
service, to encourage cooperative efforts among different stations, or 
to support licensees facing the requirement to convert multiple 
transmission facilities in several television markets. NTIA notes that 
in the past it has been able to fund applications each year in most if 
not all of the five traditional broadcast Priorities and anticipates 
that it will be able to fund applications in FY 2000 in most if not all 
of the subpriorities for applications received under the Broadcast 
Other category.
    NTIA will assign the following applications for conversion of 
public broadcasting facilities to advanced digital technologies at the 
first subpriority level within the Broadcast Other category. These 
applications will receive equal consideration as subpriority A.

-- A single applicant providing the sole service in an area unserved by 
a digital public television signal. This reflects PTFP's funding 
priority for equipment replacement projects for sole service stations 
(PTFP Priority 2).
-- Cooperative applications by two or more licensees for the first 
digital public television service to an area. This is intended to 
encourage cooperation and efficiencies among stations in overlap 
markets (as listed by CPB) in constructing digital facilities. It would 
provide stations in overlap markets the opportunity, if they work 
collaboratively, to be eligible for the highest priority in funding 
within this category.
-- A statewide staged plan for the conversion of multiple stations, 
whether a state network, or other appropriate statewide organization, 
or a staged plan from a licensee with stations in several markets. This 
is intended to encourage licensees that must convert multiple stations 
and also to encourage groups of stations to work collaboratively in 
developing a digital conversion project.

    NTIA will assign the following applications for conversion of 
public broadcasting facilities to advanced digital technologies at the 
second subpriority level within the Broadcast Other category. These 
applications will receive equal consideration as subpriority B.

-- An applicant in a multi-PTV station market providing first public 
television service in an area. An applicant in a multi-PTV station 
market who chooses to file separately, rather than in conjunction with 
another licensee in the same area, receives a second priority for 
funding.
-- A cooperative application by two or more licensees in an area 
already served by a digital public television station. The application 
is given a priority over Broadcast Other--C to encourage efficiency and 
cooperation. Since this is not the first service in the area, it is 
given a second priority.

    NTIA will assign the following applications for conversion of 
public broadcasting facilities to advanced digital technologies at the 
third subpriority level within the Broadcast Other category. These 
applications will receive equal consideration as subpriority C.

-- Individual applicants proposing a second digital public television 
service in an area already receiving a digital public television 
signal. This reflects PTFP's funding priority for equipment replacement 
applications in served areas (Priority 4).
-- All other public television digital conversion applications.

    (E) Funding Levels for Television Projects. As noted earlier in 
Section I of this document, NTIA has published several policies 
regarding the presumed Federal share of a requested project. These 
policies are intended to aid applicants in the planning of their 
applications. The policy for PTFP support of equipment replacement 
applications has long been the presumption of a 50 percent Federal 
share, although applicants are permitted to submit justification for a 
Federal grant of up to 75 percent of project costs. Those policies are 
contained in Sec. 2301.6(b) of the PTFP Final Rules.
    In reviewing the projected costs to convert all the public 
television stations in the country, NTIA has concluded that it cannot 
continue its 50 percent presumption of Federal funding for television 
equipment replacement or digital conversion projects. Furthermore, NTIA 
believes that many public television facilities will be unable to raise 
50 percent of the project costs. A significant number of stations may 
need Federal funding of 67 percent of a project's cost, or even up to 
the legal maximum of 75 percent of a project's cost, in order for them 
to meet the FCC's deadline.
    In order to ensure that sufficient Federal funds are available to 
support the conversion of the nation's public television stations, NTIA 
is establishing a new policy regarding the presumed Federal funding 
level for television equipment. As noted earlier in this section, NTIA 
recognizes that equipment on the PTFP Digital TV List may be included 
in either Broadcast Other digital conversion applications or in 
Priority 2 or Priority 4 equipment replacement applications. In order 
to treat all applicants equitably, NTIA's new policy will be the 
presumption of a 40 percent Federal share of the eligible project costs 
for television equipment for digital conversion or equipment 
replacement, improvement or

[[Page 72231]]

augmentation projects. This 40 percent presumption will apply whether 
the application requests consideration under the two equipment 
replacement priorities (Priority 2 or 4) or under the digital 
conversion category (Broadcast Other). As noted earlier, NTIA will fund 
the replacement of production equipment upon a showing of clear and 
compelling need. However, since the deadline for digital conversion is 
rapidly approaching and Federal funds are limited, NTIA will fund 
replacement of production equipment at the same level of Federal 
support as digital conversion or equipment replacement projects. The 
presumption of a 40 percent Federal share will extend to all television 
projects to replace or upgrade equipment. However, because of the 
emphasis NTIA places on the extension of broadcast services to unserved 
areas, NTIA has retained the 75 percent level of Federal funding 
applications proposing new television facilities in Priority 1 
(Sec. 2301.4(b)(1)).
    Applicants who are reactivating applications deferred from the FY 
99 grant round will be permitted to request the same percentage of 
Federal support as requested in the FY 99 application as long as the 
scope of their application remains the same. Applicants who wish to 
revise their deferred application to include their full digital 
conversion plans, however, will be subject to the new policies 
presented in this section.
    As already noted, NTIA recognizes that many small stations, 
primarily in rural areas, will be unable to raise even a 50 percent 
local share of the funds required for their PTFP projects. NTIA has 
long permitted stations to request more than the standard level of 
Federal support upon a showing of ``extraordinary need'' per 
Sec. 2301.6(b)(ii) of the PTFP Rules. NTIA will permit applicants to 
qualify for hardship funding and receive a 67 percent Federal share of 
their project costs. An applicant can qualify for 67% Federal funding 
by certifying that it is unable to match at least 60 % of the eligible 
project costs, and either (a) by providing documentation that its 
average annual cash revenue for the previous four years is $2 million 
or less, or (b) by providing documentation that the eligible project 
costs are greater than the applicant's average annual cash revenue for 
the previous four years.
    In addition, NTIA will continue to permit any applicant to provide 
justification that it has an ``extraordinary need'' for Federal funding 
up to the legal limit of 75 percent of eligible project costs.
    In order to gather additional funds to award to stations which 
qualify under the hardship criteria, NTIA encourages financially able 
applicants to request a smaller share of Federal funds for digital 
equipment projects than the standard 40 percent. NTIA will add three 
additional points to the application evaluations from the independent 
review panel for applicants who request no more than 25 percent Federal 
funding. This provision will give extra credit to applications already 
highly reviewed, and, based on NTIA's previous experience, is often 
sufficient to move applications into the range for funding.
    However, when making the final selection of awards, NTIA will take 
care to ensure that there is an acceptable balance between projects 
awarded to stations requesting a 25 percent Federal share and those 
requesting a higher Federal share. NTIA will not fund applications 
requesting a 25 percent Federal share to the exclusion of applications 
meeting the hardship criteria or to the exclusion of those requesting 
the standard 40 percent Federal share.
    (F) Use of CPB funds. As discussed earlier in this document at the 
conclusion of Section I. Application Forms and Regulations, NTIA has 
limited the use of CPB funds for the non-Federal share of PTFP projects 
to circumstances of ``clear and compelling need'' (15 CFR 
2301.6(c)(2)). NTIA recognizes that it will be difficult for many 
public television stations to raise the funds required to meet the 
FCC's digital broadcasting deadline. Therefore, NTIA continues its past 
policy that applicants may submit justification under this section for 
the use of CPB funds as part of their local match. Any request for the 
use of CPB funds must be accompanied by a statement regarding any 
limitations that CPB has placed on the expenditure of those funds.
    (G) Miscellaneous Items. As discussed earlier in this section, part 
(D) on New Subpriorities, NTIA encourages efforts which promote 
efficiency within the public television system in order to save both 
current conversion costs and future operating costs. NTIA, therefore, 
also encourages public television stations to partner with commercial 
entities when this is in the best interests of the public station and 
the Federal government. In cases of public television partnerships with 
commercial entities, the PTFP project will be limited to the public 
television station's ownership share or use rights in the equipment. 
NTIA believes that such partnerships with commercial organizations 
comply with current PTFP regulations and PTFP has funded several 
projects for joint use of towers and broadcast antennas.
    The urgency of an application is one of the criteria under which 
all PTFP applications are evaluated. (The evaluation criteria are 
listed in Sec. 2301.17 of the PTFP Rules). NTIA suggests that there are 
at least three situations in which Broadcast Other applications may 
present high degrees of urgency. As we have just noted, applications 
containing proposals for joint use/ownership partnerships with other 
organizations may demonstrate a high urgency due to a time-sensitive 
opportunity. NTIA encourages these applicants to document the time-
sensitive nature of the partnership opportunity in their response to 
the urgency criterion.
    NTIA also recognizes that some applicants may be presented with 
time-sensitive funding opportunities and, therefore, encourages these 
applicants to document the time sensitive nature of these funding 
opportunities in their response to the urgency criterion. Finally, as 
already noted, NTIA expects that some applications will request urgent 
replacement of existing equipment as part of a Broadcast Other 
application. NTIA encourages such applicants to provide documentation 
of their need to replace their equipment during the current grant 
round. This documentation might include maintenance logs, letters from 
manufacturers, reports from independent engineers, photos etc.
    NTIA will instruct the panels evaluating the FY 2000 Broadcast 
Other applications that they should award the highest score under the 
urgency criterion to those applications which fully justify and 
document either (1) The time sensitive nature of partnerships, (2) the 
time sensitive nature of funding opportunities, or (3) the need for 
equipment replacements that must be accomplished during this grant 
round in order to maintain existing services.

IV. Distance Learning Projects

    Since 1979, NTIA has funded nonbroadcast distance learning projects 
through the ``Special Applications'' category as established in 
Sec. 2301.4(a) of the PTFP Rules. In 1996, NTIA established a similar 
category for broadcast projects, ``Broadcast/other'' in 
Sec. 2301.4(b)(6). NTIA encourages applications in either category for 
innovative or unique distance learning projects which address 
demonstrated and substantial community needs. For fiscal year 1999, 
NTIA awarded $1.7 million in funds to nine grants for distance learning 
projects. The awards ranged from $50,000 to $450,000.

[[Page 72232]]

    The growth of digital technologies provides new opportunities for 
distance learning projects using both broadcast or nonbroadcast 
facilities. NTIA encourages applicants to consider the use of digital 
technologies in proposing unique or innovative distance learning 
projects for funding in FY 2000. Examples of innovative digital 
applications might include projects (1) Which use broadband 
technologies for distance learning, (2) which distribute educational or 
informational programming via Direct Broadcast Satellite technologies, 
or (3) which use the multi-channel capabilities of a digital public 
television station. All distance learning applications must address 
substantial and demonstrated needs of the communities being served. 
NTIA is particularly interested in distance learning projects which 
benefit traditionally underserved audiences, such as projects serving 
minorities or people living in rural areas.
    As discussed in Section III of this document, NTIA anticipates 
that, in FY 2000, it will receive numerous digital conversion 
applications in the Broadcast/ Other category. NTIA recognizes that, 
due to the multi-channel capability of digital television, distance 
learning components may well be a part of a digital conversion 
application. NTIA will, therefore, consider such distance learning 
proposals under the subpriorities established in Section III. If NTIA 
determines that a broadcast distance learning project is not part of a 
digital conversion application, NTIA will evaluate the application 
pursuant to Secs. 2301.4(b)(6) and 2301.17.
    The November 22, 1991, PTFP Policy Statement (56 FR 59168 (1991)) 
mentioned in the Application Forms and Regulations section discussed a 
number of issues of particular relevance to applicants proposing 
nonbroadcast educational and instructional projects and potential 
improvement of nonbroadcast facilities. These policies remain in effect 
and will be available to all PTFP applicants as part of the Guidelines 
for preparing FY 2000 PTFP applications.

V. Eligible and Ineligible Costs

    Eligible equipment for the FY 2000 grant round includes the 
apparatus necessary for the production, interconnection, captioning, 
broadcast, or other distribution of programming, including but not 
limited to studio equipment; audio and video storage, processing, and 
switching equipment; terminal equipment; towers; antennas; 
transmitters; remote control equipment; transmission line; translators; 
microwave equipment; mobile equipment; satellite communications 
equipment; instructional television fixed service equipment; subsidiary 
communications authorization transmitting and receiving equipment; 
cable television equipment; and optical fiber communications equipment.
    A complete listing of equipment eligible for funding during the FY 
2000 grant round is posted on the NTIA Internet site and printed copies 
are available from PTFP.

Other Costs

    (1) Construction Applications: NTIA generally will not fund salary 
expenses, including staff installation costs, and pre-application legal 
and engineering fees. Certain ``pre-operational expenses'' are eligible 
for funding. (See 15 CFR 2301.2.) Despite this provision, NTIA regards 
its primary mandate to be funding the acquisition of equipment and only 
secondarily funding of salaries. A discussion of this issue appears in 
the PTFP Final Rules under the heading Support for Salary Expenses in 
the introductory section of the document.
    (2) Planning Applications. (a) Eligible: Salaries are eligible 
expenses for all planning grant applications, but should be fully 
described and justified within the application. Planning grant 
applicants may lease office equipment, furniture and space, and may 
purchase expendable supplies under the terms of 47 U.S.C. 392(c). (b) 
Ineligible: Planning grant applications cannot include the cost of 
constructing or operating a telecommunications facility.
    (3) Audit Costs. Audits shall be performed in accordance with audit 
requirements contained in Office of Management and Budget Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations, 
revised June 30, 1997. OMB Circular A-133 requires that non-profit 
organizations, government agencies, Indian tribes and educational 
institutions expending $300,000 or more in federal funds during a one-
year period conduct a single audit in accordance with guidelines 
outlined in the circular. Applicants are reminded that other audits may 
be conducted by the Office of Inspector General.
    NTIA recognizes that most of its grant recipients are divisions of 
state and local governments or are public broadcasting facilities, all 
of which routinely conduct annual audits. In order to make the maximum 
amount of monies available for equipment purchases and planning 
activities, NTIA will, therefore, fund audit costs only in exceptional 
circumstances.

VI. Notice of Applications Received

    In accordance with 15 CFR 2301.13, NTIA will publish a notice in 
the Federal Register listing all applications received by the Agency. 
Listing an application merely acknowledges receipt of an application to 
compete for funding with other applications. This listing does not 
preclude subsequent return of the application for the reasons discussed 
under the Dates section above, or disapproval of the application, nor 
does it assure that the application will be funded. The notice will 
also include a request for comments on the applications from any 
interested party. NTIA will also publish more complete information 
about all the applications received by the Agency on the NTIA Internet 
site and will make this information available by mail. The address of 
the NTIA Internet site is: www.ntia.doc.gov/otiahome/ptfp.

VII. Evaluation Process

    See 15 CFR 2301.16 for a description of the Technical Evaluation 
and 15 CFR 2301.17 for the Evaluation Criteria.

VIII. Selection Process

    Based upon the above cited evaluation criteria, the PTFP program 
staff prepares summary recommendations for the PTFP Director. These 
recommendations incorporate outside reviewers rankings and 
recommendations, engineering assessments, and input from the National 
Advisory Panel, State Single Point of Contacts and state 
telecommunications agencies. Staff recommendations also consider 
project impact, the cost/benefit of a project and whether review panels 
have consistently applied the evaluation criteria. The PTFP Director 
will consider the summary recommendations prepared by program staff, 
will recommend the funding order of the applications, and will present 
recommendations to the OTIA (Office of Telecommunications and 
Information Applications) Associate Administrator for review and 
approval. The PTFP Director recommends the funding order for 
applications in three categories: ``Recommended for Funding,'' 
``Recommended for Funding if Funds Available,'' and ``Not Recommended 
for Funding.'' See 15 CFR 2301.18 for a description of the selection 
factors retained by the Director, OTIA Associate Administrator, and the 
Assistant Secretary for Telecommunications and Information.
    Upon review and approval by the OTIA Associate Administrator, the 
Director's recommendations will then

[[Page 72233]]

be presented to the Selection Official, the NTIA Administrator. The 
NTIA Administrator selects the applications for possible grant award 
taking into consideration the Director's recommendations and the degree 
to which the slate of applications, taken as a whole, satisfies the 
program's stated purposes set forth at 15 CFR 2301.1(a) and (c). Prior 
to award, applications may be negotiated between PTFP staff and the 
applicant to resolve whatever differences might exist between the 
original request and what PTFP proposes to fund. Some applications may 
be dropped from the proposed slate due to lack of FCC licensing 
authority, an applicant's inability to make adequate assurances or 
certifications, or other reasons. Negotiation of an application does 
not ensure that a final award will be made. The PTFP Director 
recommends final selections to the NTIA Administrator applying the same 
factors as listed in 15 CFR 2301.18. The Administrator then makes the 
final award selections taking into consideration the Director's 
recommendations and the degree to which the slate of applications, 
taken as a whole, satisfies the program's stated purposes in 15 CFR 
2301.1(a) and (c).

IX. Project Period

    Planning grant award periods customarily do not exceed one year, 
whereas construction grant award periods for grants in the five 
broadcast Priorities and nonbroadcast Special Applications category 
commonly range from one to two years. Construction projects funded in 
the Broadcast Other category would commonly be awarded for a one to two 
year period with the expectation that they would be extended annually 
in subsequent years dependent on the availability of Federal funds. 
Although these time frames are generally applied to the award of all 
PTFP grants, variances in project periods may be based on specific 
circumstances of an individual proposal.

X. NTIA Policies on Procedural Matters

    Based upon NTIA's experience during the PTFP 1999 grant round, NTIA 
has determined that it is in the best interest of NTIA and applicants 
to continue recent policies regarding three procedural matters. The 
following policies are applicable only to the FY 2000 PTFP grand round 
and resulting awards.

Applications Resulting From Catastrophic Damage or Emergency 
Situations.

    Section 2301.10 provides for submission of applications resulting 
from catastrophic damage or emergency situations. NTIA would like to 
clarify its implementation of this provision.
    For FY 2000 PTFP applicants, when an eligible broadcast applicant 
suffers catastrophic damage to the basic equipment essential to its 
continued operation as a result of a natural or manmade disaster, or as 
the result of significant equipment failure, and is in dire need of 
assistance in funding replacement of the damaged equipment, it may file 
an emergency application for PTFP funding at any time. NTIA limits this 
request to equipment essential to a station's continued operation such 
as transmitters, towers, antennas, STLs or similar equipment which, if 
the equipment failed, would result in a complete loss of service to the 
community.
    When submitting an emergency application, the applicant should 
describe the circumstances that prompt the request and should provide 
appropriate supporting documentation. NTIA requires that applicants 
claiming significant failure of equipment will document the 
circumstances of the equipment failure and demonstrate that the 
equipment has been maintained in accordance with standard broadcast 
engineering practices.
    NTIA will grant an award only if it determines that (1) The 
emergency satisfies this policy, and (2) the applicant either carried 
adequate insurance or had acceptable self-insurance coverage.
    Applications filed and accepted for emergency applications must 
contain all of the information required by the Agency application 
materials and must be submitted in the number of copies specified by 
the Agency.
    NTIA will evaluate the application according to the evaluation 
criteria set forth in Sec. 2301.17(b). The PTFP Director takes into 
account program staff evaluations (including the outside reviewers) the 
availability of funds, the type of project and broadcast priorities set 
forth at Sec. 2301.4(b), and whether the applicant has any current NTIA 
grants. The Director presents recommendations to the Office of 
Telecommunications and Information Applications (OTIA) Associate 
Administrator for review and approval. Upon approval by the OTIA 
Associate Administrator, the Director's recommendation will be 
presented to the Selecting Official, the NTIA Administrator. The 
Administrator makes final award selections taking into consideration 
the Director's recommendation and the degree to which the application 
fulfills the requirements for an emergency award and satisfies the 
program's stated purposes set forth at Sec. 2301.1(a) and (c).

Service of Applications

    For the FY 2000 PTEP, applicants are not required to submit copies 
of their PTFP applcations to the FCC, nor will they be required to 
submit copies of the FCC transmittal cover letters as part of their 
PTFP applications. NTIA routinely notifies the FCC of projects 
submitted for funding which require FCC authorizations.
    For the FY 2000 PTFP, applicants for distance learning projects are 
not required to notify every state telecommunications agency in a 
potential service area. Many distance learning applications propose 
projects which are nationwide in nature. NTIA, therefore, believes that 
the requirement to provide a summary copy of the application in every 
state telecommunications agency in a potential service area is unduly 
burdensome to applicants. NTIA, however, does expect that distance 
learning applicants will notify the state telecommunication agencies in 
the states in which they are located.

Federal Communications Commission Authorizations

    For the FY 2000 PTFP, applicants may submit applications to the FCC 
after the closing date, but do so at their own risk. Applicants are 
urged to submit their FCC applications with as much time before the 
PTFP closing date as possible. No grant will be awarded for a project 
requiring FCC authorization until confirmation has been received by 
NTIA from the FCC that the necessary authorization will be issued.
    For the FY 2000 PTFP applications, since there is no potential for 
terrestrial interference with Ku-band satellite uplinks, grant 
applicants for Ku-band satellite uplinks may submit FCC applications 
after a PTFP award is made. Grant recipients for Ku-band satellite 
uplinks will be required to document receipt of FCC authorizations to 
operate the uplink prior to the release of Federal funds.
    For the FY 2000 PTFP applications, NTIA may accept FCC 
authorizations that are in the name of an organization other than the 
PTFP applicant in certain circumstances. Applicants requiring the use 
of FCC authorizations issued to another organization should discuss in 
the application Program Narrative why the FCC authorization must be in 
the

[[Page 72234]]

other organization's name. NTIA believes that such circumstances will 
be rare and, in its experience, are usually limited to authorizations 
such as those for microwave interconnections or satellite uplinks.
    As noted above, for the FY 2000 PTFP applications, NTIA does not 
require that the FCC applications be filed by the closing date. While 
NTIA is permitting submission of FCC applications after the closing 
date, applicants are reminded that they must continue to provide copies 
of FCC applications, as they were filed or will be filed, or equivalent 
engineering data, in the PTFP application so NTIA can properly evaluate 
the equipment request. These include applications for permits, 
construction permits and licenses already received for (1) construction 
of broadcast station, (including a digital broadcasting facility) or 
translator, (2) microwave facilities, (3) ITFS authorizations, (4) SCA 
authorizations, and (5) requests for extensions of time.
    For those applicants whose projects require authorization by the 
Federal Communications Commission (FCC), NTIA reminds applicants that 
the mailing address for the Federal Communications Commission has 
changed to: 445 12th St. SW, Washington DC 20554.

XI. Department of Commerce Application Requirements

    Applicants should note that they must continue to comply with the 
provisions of Executive Order 12372, ``Intergovernmental Review of 
Federal Programs.'' The Executive Order requires applicants for 
financial assistance under this program to file a copy of their 
application with the Single Points of Contact (SPOC) of all states 
relevant to the project. Applicants are required to provide a copy of 
their completed application to the appropriate SPOC on or before 
February 17, 2000. Applicants are encouraged to contact the appropriate 
SPOC well before the PTFP closing date. A listing of the state SPOC 
offices may be found with the PTFP application materials at the NTIA 
Internet site. A list of the SPOC offices is available from NTIA (see 
the ADDRESS section above).
    You are not required to respond to a collection of information 
sponsored by the Federal government, and the government may not conduct 
or sponsor this collection, unless it displays a currently valid OMB 
control number or if we fail to provide you with this notice. (In 
accordance with the Paperwork Reduction Act, the current application 
form has been cleared under OMB control no. 0660-0003.)
    All primary applicants must submit a completed Form CD-511, 
``Certifications Regarding Debarment, Suspension, and Other 
Responsibility Matters; Drug-Free Workplace Requirements and 
Lobbying,'' and the following explanations are hereby provided:
    (1) Nonprocurement Debarment and Suspension. Prospective 
participants (as defined at 15 CFR part 26, Sec. 105) are subject to 15 
CFR part 26, ``Nonprocurement Debarment and Suspension'' and the 
related section of the certification form prescribed above applies;
    (2) Drug Free Workplace. Grantees (as defined at 15 CFR part 26, 
Sec. 605) are subject to 15 CFR part 26, Subpart F, ``Government-wide 
Requirements for Drug-Free Workplace (Grants)'' and the related section 
of the certification form prescribed above applies;
    (3) Anti-lobbying. Persons (as defined at 15 CFR part 28, Section 
105) are subject to the lobbying provisions of 31 U.S.C. 1352, 
``Limitation on use of appropriated funds to influence certain Federal 
contracting and financial transactions,'' and the lobbying section of 
the certification form prescribed above applies to applicants/bidders 
for grants, cooperative agreements, and contracts for more than 
$100,000, and loans and loan guarantees for more than $150,000, or the 
single family maximum mortgage limit for affected programs, whichever 
is greater; and
    (4) Anti-lobbying Disclosures. Any applicant that has paid or will 
pay for lobbying using any funds must submit an SF-LLL, ``Disclosure of 
Lobbying Activities,'' (OMB Control Number 0348-0046) as required under 
15 CFR part 28, Appendix B.
    Recipients shall require applicants/bidders for subgrants, 
contracts, subcontracts, or other lower tier covered transactions at 
any tier under the grant award to submit, if applicable, a completed 
Form CD-512, ``Certifications Regarding Debarment, Suspension, 
Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions 
and Lobbying'' and disclosure form, SF-LLL, ``Disclosure of Lobbying 
Activities.'' Form CD-512 is intended for the use of recipients and 
should not be transmitted to the Department. SF-LLL submitted by any 
tier recipient or subrecipient should be submitted to the Department in 
accordance with the instructions contained in the award document.
    No award of Federal funds shall be made to an applicant who has an 
outstanding delinquent Federal debt until either: (1) the delinquent 
account is paid in full; (2) a negotiated repayment schedule is 
established and at least one payment is received, or (3) other 
arrangements satisfactory to the Department are made.
    If an application is selected for funding, the Department of 
Commerce has no obligation to provide any additional future funding in 
connection with that award. Renewal of an award to increase funding or 
extend the period of performance is at the total discretion of the 
Department.
    Recipients and subrecipients are subject to all Federal laws and 
Federal and DOC policies, regulations, and procedures applicable to 
Federal assistance awards. In addition, unsatisfactory performance by 
the applicant under prior Federal awards may result in the application 
not being considered for funding.
    If applicants incur any costs prior to an award being made, they do 
so solely at their own risk of not being reimbursed by the Government. 
Notwithstanding any verbal or written assurance that they have 
received, there is no obligation on the part of the Department to cover 
preaward costs.
    Applicants are reminded that a false statement on the application 
may be grounds for denial or termination of funds and grounds for 
possible punishment by a fine or imprisonment as provided in 18 U.S.C. 
1001.

    Authority: The Public Telecommunications Financing Act of 1978, 
as amended, 47 U.S.C. 390-393, 397-399(b). (Catalog of Federal 
Domestic Assistance No. 11.550).
Bernadette McGuire-Rivera,
Associate Administrator, Office of Telecommunications and Information 
Applications.
[FR Doc. 99-33327 Filed 12-22-99; 8:45 am]
BILLING CODE 3510-60-P