[Federal Register Volume 67, Number 120 (Friday, June 21, 2002)]
[Notices]
[Pages 42233-42234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15720]



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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Local Dial-Up Internet Grants

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funds availability.

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SUMMARY: The Rural Utilities Service (RUS) announces the availability 
of grant funds to finance the acquisition, construction and 
installation of equipment, facilities and systems to provide local 
dial-up Internet access services in rural America. Two and a half 
million dollars in grant funds is available, through a Pilot Program, 
to encourage eligible entities to provide Internet service to rural 
consumers where such service does not currently exist. This program 
will provide grant funds, on a competitive basis, to entities serving 
communities up to 20,000 inhabitants to ensure rural consumers enjoy 
the same quality and range of telecommunications services that are 
available in urban and suburban communities. Applications for grant 
funds will be accepted through August 20, 2002.

DATES: Applications for grants will be accepted as of the date of this 
notice through August 20, 2002. All applications must be delivered to 
RUS or bear postmark no later than August 20, 2002.

ADDRESSES: Applications are to be submitted to the Rural Utilities 
Service, U.S. Department of Agriculture, 1400 Independence Avenue, SW., 
STOP 1590, Room 4056 South Building, Washington, DC 20250-1590.

FOR FURTHER INFORMATION CONTACT: Roberta D. Purcell, Assistant 
Administrator, Telecommunications Program, Rural Utilities Service, 
1400 Independence Avenue, SW., STOP 1590, Washington, DC 20250-1590, 
Telephone (202) 720-9554, Facsimile (202) 720-0810.

SUPPLEMENTARY INFORMATION:

Information Collection and Recordkeeping Requirements

    The reporting and recordkeeping requirements of this Notice have 
been approved by the Office of Management and Budget (OMB) under 
Control Number 0572-0125 pursuant to the Paperwork Reductions Act of 
1995 (44 U.S.C. Chapter 35).

General Information

    For FY 2002, $2.5 million in grants will be made available for the 
construction and installation of facilities and for other costs as RUS 
deems necessary to provide local dial-up Internet services in rural 
areas where it currently does not exist. This program is authorized by 
7 U.S.C. 950 aaa.

Applications

    Applications will be accepted as discussed previously in the Dates 
section of this notice. All interested parties are strongly encouraged 
to contact the RUS official listed in the For Further Information 
Contact section of this notice to discuss its financial needs and 
eligibility, prior to sending an application to the address listed in 
the Addresses section of this notice. RUS will make available, to 
interested applicants, an application guide that further details the 
requirements and procedures for submitting an application. Applications 
will be scored and processed on a competitive basis.

Use of Grant Funds

    Grant funds may be used to finance the acquisition, construction, 
and installation of equipment, facilities, and systems to provide local 
dial-up Internet service in rural areas where it currently does not 
exist. Grant funds may also be used to fund lease costs for 
transmission equipment, facilities, and systems for up to two years.

Size of Grants

    The maximum amount of a grant award to an applicant under this 
program is $400,000. The minimum amount to be considered is $10,000.

Definition of Internet

    As used in this notice, the term Internet means a world wide 
collection of interconnected computer networks and users that share a 
compatible means of interacting with one another for the purpose of 
exchanging electronic data.

Definition of Local Dial-Up Internet Services

    As used in this notice, the term local dial-up Internet service 
means a connection to the internet made using a voice grade circuit to 
the local public switched telephone network (PSTN) that does not incur 
any additional or per call charges. Where the PSTN does not support, as 
an engineering matter, local dial-up access, the Administrator of RUS 
will consider satellite or other methods of access as meeting the 
intent of this definition.

Definition of Rural Area

    As used in this notice, rural area means any area of the United 
States not included within the boundaries of any incorporated or 
unincorporated city, village, or borough having a population in excess 
of 20,000 inhabitants.

Grant Terms

    For FY 2002, $2.5 million in grants will be made available to 
eligible applicants. Grants will be awarded to eligible applicants 
based on their score (starting with the highest scoring application) in 
comparison to other applications until the $2.5 million appropriation 
is utilized in its entirety. The grants will be awarded on a 
competitive basis, based on the scoring criteria outlined below.

Eligible Applicants

    Grants may be made to legally organized entities providing, or 
proposing to provide, local dial-up Internet services in rural areas. 
Eligible entities may be public bodies, commercial companies including 
limited liability companies, cooperatives, nonprofits, and limited 
dividend or mutual associations.

Matching Funding

    No match funding is required.

RUS Findings

    (1) Project Sustainability. An applicant shall provide RUS with 
satisfactory evidence to enable the Administrator to determine that the 
project utilizing grant funds will be sustainable for a minimum of five 
years. Factors used in making this determination include, but are not 
limited to:
    (i) Evidence of sufficient revenues from the system in excess of 
operating expenditures (including maintenance and replacement); and
    (ii) Reasonable assurance of achieving market penetration 
projections upon which the grant is based.
    (2) Nonduplication. An applicant shall provide RUS with 
satisfactory evidence to enable the Administrator to determine that no 
local dial-up internet service, without regard to quality of such 
service, exists in the area proposed to be served by the applicant 
using grant funds.

Grant Application

    Applications should be prepared in conformance with the provisions 
of this notice and applicable USDA regulations including 7 CFR parts 
3015, 3016, and 3019. Applicants must submit a completed Standard Form 
424, ``Application for Federal Assistance,'' a narrative grant 
proposal, and all required supporting information and documents. An 
application must include a project description that contains plant 
designs, a subscriber forecast, and the basis for that forecast. The 
narrative must also specifically and

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clearly address the scoring criteria set out below. Other items 
include:
    (1) Certified financial statements, if available;
    (2) 5 years of pro-forma financial information, evidencing the 
sustainability of the project;
    (3) An environmental report, satisfactory to RUS;
    (4) Depreciation rates, based on current industry standards, for 
the equipment being financed (acceptance of such rates will be subject 
to RUS approval);
    (5) A sketch or map showing existing and proposed service areas;
    (6) A description of the current level of service available;
    (7) Information on the owners and principal employees' relevant 
work experience that would ensure the success of the project; and
    (8) All other required forms for Federal assistance and compliance 
with other applicable Federal statutes.

Review of Grant Applications

    All applications for grants must be delivered to RUS at the address 
listed above or postmarked no later than August 20, 2002 to be 
considered eligible for FY 2002 grant funding. RUS will review each 
application for conformance with the provisions of this Notice. RUS may 
contact the applicant for additional information or clarification. 
Incomplete applications will not be considered. Applications conforming 
with this Notice will then be evaluated competitively by a panel of RUS 
employees selected by the Administrator and points awarded as described 
in the Scoring Criteria section below. The applications will be ranked 
and grants awarded in rank order until all grant funds are expended.

Scoring Criteria

    Grant awards will be made based on the following scoring criteria 
as determined by RUS:
    (1) The need for services and benefits derived from services (up to 
40 points). This criterion will be used by RUS to score applications 
based on the documentation in support of the need for services, 
benefits derived from the services proposed by the project, and local 
community involvement in planning, implementing, and financial 
assistance of the project. RUS will consider the extent of the 
applicant's documentation explaining the challenges facing the 
community; the applicant's proposed plan to address these challenges; 
how the grant can help; and why the applicant cannot complete the 
project without a grant.
    (2) The economic need of the applicant's service area as determined 
by per capita personal income by County, as determined by the Bureau of 
Economic Analysis, U.S. Department of Commerce, at www.bea.doc.gov/bea/regional/reis/ (up to 40 points). Applicants will be awarded points as 
outlined below for service provided in each county where the per capita 
personal income (PCI) is less than 70 percent of the national average 
per capita personal income (NAPCI):
    (i) PCI is 70 percent or greater of NAPCI; 0 points;
    (ii) PCI is less than 70 percent and greater than or equal to 60 
percent of NAPCI; 10 points;
    (iii) PCI is less than 60 percent and greater than or equal to 50 
percent of NAPCI; 20 points;
    (iv) PCI is less than 50 percent and greater than or equal to 40 
percent of NAPCI; 30 points;
    (v) PCI is less than 40 percent of NAPCI; 40 points;
If an applicant proposes significant service in more than one county, 
an average score will be calculated based on each counties' individual 
scores.
    (3) Project services USDA designated EZ/ECs (Empowerment Zone and 
Enterprise Communities) (10 points) or USDA designated Champion 
Communities (5 points).

    Dated: June 13, 2002.
Hilda Gay Legg,
Administrator, Rural Utilities Service.
[FR Doc. 02-15720 Filed 6-20-02; 8:45 am]
BILLING CODE 3410-15-P