[Federal Register Volume 65, Number 246 (Thursday, December 21, 2000)]
[Notices]
[Pages 80710-80718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32582]



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Part VII





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. 65, No. 246 / Thursday, December 21, 2000 / 
Notices  

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DEPARTMENT OF COMMERCE

National Telecommunications and Information Administration

[Docket No. 001215353-0353-01]
RIN 0660-ZA14


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 NTIA Administrator hereby 
establishes the closing date for the filing of applications for PTFP 
grants. The closing date selected for the submission of applications 
for FY 2001 is February 15, 2001. Applications must be received prior 
to 7 p.m. on or before February 15, 2001. 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. Closing Date

    Applicants for matching grants under the PTFP must file their 
applications on or before 7 p.m., Thursday, February 15, 2001. 
Approximately $30 million is available for FY 2001 PTFP grants in 
response to this Notice.\1\ In appropriating FY 2001 funds, the 
Congress directed that NTIA ``maintain an appropriate balance between 
traditional grants and those to stations converting to digital 
broadcasting.'' \2\ Information regarding digital television Broadcast 
Other projects is included in Section V of this document. Section V 
also describes revisions of the PTFP Rules which will be applicable 
only for the 2001 Grant Round for applications in the Broadcast Other 
category. The amount of a grant award by NTIA will vary, depending on 
the approved project. For fiscal year 2000, NTIA awarded $25.8 million 
in funds to 103 projects. The awards ranged from $4,054 to $1,250,680.
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    \1\ See the Conference Report (H. Rept. 106-1033) on H.R. 4577, 
Departments of Labor, Health and Human Services, and Education, and 
Related Agencies Appropriations Act, 2001. NTIA has allocated 
approximately $10 million from the $43.5 million appropriated for 
multi-year projects initially funded in FY 2000.
    \2\ See The House Rep. 106-1005, the Conference report on H.R. 
4942. Similar language regarding PTFP has appeared in conference 
reports accompanying appropraitions for fiscal yeasrs 1999 and 2000.
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II. Application Forms

    PTFP has a new application form which all applicants must use for 
the FY 2001 grant cycle. This form expires on October 31, 2003, and no 
previous versions of the form may be used. Each page of the new 
application form has the expiration date of 10/31/2003 printed on the 
bottom line. (In accordance with the Paperwork Reduction Act, the 
current application form has been cleared under OMB control no. 0660-
0003.) To apply for a PTFP grant, an applicant must file an original 
and five copies of a timely and complete application on the new 
application form. 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.

III. Regulations

    The applicable Rules for the PTFP were published on November 8, 
1996 (61FR 57966). In accordance with provisions provided in 15 CFR 
part 2301, Sec. 2301.26, certain requirements of the PTFP are modified 
in this Notice for FY 2001. Copies of the 1996 Rules will be posted on 
the NTIA Internet site and NTIA will make printed copies available to 
applicants. 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.
    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 2001 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 2000 will be mailed 
information regarding the reactivation of their applications. 
Applicants whose television projects were deferred from FY 2000 should 
carefully review Section V. Television Broadcasting and Digital 
Conversion, regarding policies which apply to the reactivation of their 
applications.
    Indirect costs for construction applications are not supported by 
this

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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 
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 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.

IV. Radio Broadcasting

    During the FY 2001 grant round, NTIA is proposing no changes from 
prior years in its support of radio applications. The changes outlined 
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 2000 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 III of this document, 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 2000, NTIA awarded $4.5 million in funds to 56 
grants for public radio projects. The awards ranged from $4,054 to 
$414,334.

V. Television Broadcasting and Digital Conversion

    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, last 
year, NTIA instituted several new policies that applied only to FY 2000 
applications for projects to convert public television stations to 
digital transmission capability. NTIA requested comments on the 
policies instituted for the FY 2000 grant round but received no written 
comments. Informal comments received from applicants were favorable. 
NTIA believes that the policies worked well and resulted in receipt of 
106 digital television conversion applications. These applications 
requested $100 million in FY 2000 funds and an additional $100 million 
for subsequent years of multi-year projects permitted by the new 
policies. Those policies are being continued for the FY 2001 Grant 
Round and are included in full in this document.
    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 2000, NTIA awarded $18 million in funds to 34 
projects which assisted public television stations in the conversion to 
digital technologies. The awards ranged from $51,619 to $1,250,680. 
NTIA awarded approximately $14.4 million from the Broadcast Other 
category to assist in the digital conversion of thirty-eight public 
television stations. NTIA also awarded an additional $3.6 million in 
equipment replacement funds to nine projects which purchased 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. One of NTIA's goals during the FY 2001 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. NTIA is continuing the following policies/
procedures instituted during

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the FY 2000 grant cycle which will assist public television stations in 
the application for and use of PTFP funds for digital conversion 
projects.
    These 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 three 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 implementing these policies for the FY 2001 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 
modifying its application procedures in the following areas.
    (A) Digital Television Conversion Projects and Digital Equipment 
Replacement. For FY 2001, 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 be available from PTFP at the address shown in the ADDRESSES 
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, FY 99, and FY 2000, 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 
2001, 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 2001 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 2001, though fewer than in recent years.

[[Page 80713]]

    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 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 
2001, 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 
2001 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 2001.
    Therefore, for FY 2001, 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 three 
years. A multi-year application must contain the applicant's entire 
digital conversion plan. The plan must be divided into severable 
phases, with a budget request for each phase of the project. The 
application must identify the Federal funds requested for each phase. 
Only one phase of the project will be funded in any grant cycle. Once a 
project is approved, applicants will not be required to compete each 
year for funding of subsequent phases. Funding of subsequent phases 
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 $8 million and $15 million to support multi-year digital 
television projects in FY 2001. 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 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 2001 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.
    Applications which are reactivated for the FY 2001 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 2001 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 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

[[Page 80714]]

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 is revising 
section Sec. 2301.6(b)(2) of the PTFP Final Rules. This section states 
that ``Inclusion of equipment purchased prior to the closing date will 
be considered on a case-by-case basis only when clear and compelling 
justification is provided to PTFP.''
    For FY 2001, NTIA will modify this regulation. If eligible 
equipment for a Broadcast Other project was purchased with non-Federal 
funds after July 1, 1999, NTIA will permit the applicant to include 
this equipment in a PTFP application. This date was selected to 
coincide with the beginning of the 2000 fiscal year used by many state 
and local governments and was announced at the beginning of this 
digital television conversion initiative in the Notice of Availability 
of Funds for the FY 2000 PTFP grant cycle (64 FR 246, pp. 72225-72234). 
NTIA also anticipates that July 1, 1999 will be the effective date in 
the 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 originally submitted 
in FY 99 and deferred from the FY 99 and FY 2000 grant rounds 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 2001 grant round, NTIA will divide 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 2001 in most if not all 
of the subpriorities 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 III 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 
also 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

[[Page 80715]]

for digital conversion or equipment replacement, improvement or 
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 III. 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 Sec. 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 it 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 2001 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.

VI. 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 2000, 
NTIA awarded $1.14 million in funds to five grants for distance 
learning projects. The awards ranged from $49,781 to $368,440.

[[Page 80716]]

    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 2001. 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.\3\
---------------------------------------------------------------------------

    \3\ House Rep. 106-1005, the Conference report on H.R. 4942 
directs that NTIA ``place special emphasis on distance learning 
initiatives targeting rural areas.''
---------------------------------------------------------------------------

    As discussed in Section V of this document, NTIA anticipates that, 
in FY 2001, 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 V. 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 2001 PTFP applications.

VII. Eligible and Ineligible Costs

    Eligible equipment for the FY 2001 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 
2001 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.

VIII. 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.

IX. Evaluation Process

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

X. 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

[[Page 80717]]

Secretary for Telecommunications and Information.
    Upon review and approval by the OTIA Associate Administrator, the 
Director's recommendations will then 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).

XI. 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.

XII. NTIA Policies on Procedural Matters

    Based upon NTIA's experience during the PTFP 2000 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 2001 PTFP grant 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 2001 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

    FY 2001 PTFP applicants are not required to submit copies of their 
PTFP applications to the FCC, nor are they 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.
    FY 2001 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 telecommunications agencies 
in the states in which they are located.

Federal Communications Commission Authorizations

    For the FY 2001 PTFP grant round, 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 FY 2001 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 FY 2001 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

[[Page 80718]]

the FCC authorization must be in the 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 FY 2001 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.

XIII. 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 15, 2001. Applicants are encouraged to contact the appropriate 
SPOC well before their 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).
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act (PRA), unless that 
collection displays a currently valid Office of Management and Budget 
(OMB) control number.
    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, section 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, 
section 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.
    All non-profit applicants are subject to a name check review 
process. Name checks are intended to reveal whether key individuals 
associated with the applying organization have been convicted of, or 
are presently facing, such criminal charges as fraud, theft, perjury, 
or other matters that significantly reflect on the applicant's 
management, honesty, or financial integrity. Potential non-profit 
recipients may also be subject to reviews of Dun and Bradstreet data or 
other similar credit checks.
    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. 00-32582 Filed 12-20-00; 8:45 am]
BILLING CODE 3510-60-U