[Federal Register Volume 67, Number 130 (Monday, July 8, 2002)]
[Notices]
[Pages 45079-45083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-17018]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Broadband Pilot Grant Program

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funds availability.

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SUMMARY: The Rural Utilities Service (RUS) announces a pilot grant 
program for the provision of broadband transmission service in rural 
America. For fiscal year 2002, $20 million in grants will be made 
available through a national competition to applicants proposing to 
provide broadband transmission service on a ``community-oriented 
connectivity'' basis. The ``community-oriented connectivity'' approach 
will target rural, economically-challenged communities and offer a 
means for the deployment of broadband transmission services to rural 
schools, libraries, education centers, health care providers, law 
enforcement agencies, public safety organizations as well as residents 
and businesses. This all-encompassing connectivity concept will give 
small, rural communities a chance to benefit from the advanced 
technologies that are necessary to foster economic growth, provide 
quality education and health care opportunities, and increase and 
enhance public safety efforts.

DATES: Applications for grants will be accepted as of the date of this 
notice through November 5, 2002. All applications must be delivered to 
RUS or bear postmark no later than November 5, 2002. Comments regarding 
the information collection requirements under the Paperwork Reduction 
Act must be received on or before September 6, 2002, to be assured of 
consideration.

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

SUPPLEMENTARY INFORMATION:

Information Collection and Recordkeeping Requirements

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), RUS invites comments on this information collection for 
which RUS intends to request approval from the Office of Management and 
Budget (OMB). These requirements have been approved by emergency 
clearance under OMB Control Number 0572-0127.
    Comments on this notice must be received by September 6, 2002.
    Comments are invited on (a) whether the collection of information 
is necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility; (b) the 
accuracy of the agency's estimate of burden including the validity of 
the methodology and assumptions used; (c) ways to enhance the quality, 
utility and clarity of the information to be collected; and (d) ways to 
minimize the burden of the collection of information on those who are 
to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    Comments may be sent to F. Lamont Heppe, Jr., Director, Program 
Development and Regulatory Analysis, Rural Utilities Service, U.S. 
Department of Agriculture, 1400 Independence Ave. SW., Stop 1522, Room 
4034 South Building, Washington, DC 20250-1522.
    Title: Broadband Pilot Grant Program
    Type of Request: New collection.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 152 hours per response.
    Respondents: Public bodies, commercial companies, cooperatives, 
nonprofits, Indian tribes, and limited dividend or mutual associations 
and must be incorporated or a limited liability company.
    Estimated Number of Respondents: 105.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 16,005 hours.
    Copies of this information collection can be obtained from Michele 
Brooks, Program Development and Regulatory Analysis, at (202) 690-1078.
    All responses to this information collection and recordkeeping 
notice will be summarized and included in the request for OMB approval. 
All comments will also become a matter of public record.

General Information

    The provision of broadband transmission service is vital to the 
economic development, education, health, and safety of rural Americans. 
To further this objective, RUS will provide financial assistance to 
eligible entities that propose, on a ``community-oriented 
connectivity'' basis, to provide broadband transmission service that 
fosters economic growth and delivers enhanced educational, health care, 
and public safety services. RUS will provide

[[Page 45080]]

this assistance in the form of grants. RUS will give priority to rural 
areas that it believes have the greatest need for broadband 
transmission services.
    Twenty million dollars in grant authority will be utilized to 
deploy broadband infrastructure to extremely rural, lower income 
communities on a ``community-oriented connectivity'' basis. The 
``community-oriented connectivity'' concept integrates the deployment 
of broadband infrastructure with the practical, everyday uses and 
applications of the facilities. This broadband access is intended to 
promote economic development and provide enhanced educational and 
health care opportunities. RUS will provide financial assistance to 
eligible entities that are proposing to deploy broadband transmission 
service in rural communities where such service does not currently 
exist and who will connect the critical community facilities including 
the local schools, libraries, hospitals, police, fire and rescue 
services and who will operate a community center that provides free and 
open access to residents. Under this Notice, grants will be made 
available, on a competitive basis, for the deployment of broadband 
transmission services to critical community facilities, rural 
residents, and rural businesses and for the construction, acquisition, 
or expansion and operation of a community center that provides free 
access to broadband transmission services to community residents for at 
least two years. Funding is also available for end-user equipment, 
software, and installation costs. A state-of-the-art community center 
will not only provide improved access but will aid rural residents in 
developing on-line businesses and will allow them to reap the benefits 
of Internet-based advanced placement courses, and continuing adult 
education. An application is limited to including only one project, as 
defined in this notice. Applicants wishing to serve multiple projects 
must submit an application for each project. Applicants will be 
required to provide a minimum matching contribution that is equal to 15 
percent of the grant amount awarded.

Agency Contacts

    For application information, contact the following individuals:
    Applications from: Alabama, Connecticut, Delaware, Florida, 
Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, 
Michigan, Mississippi, New Hampshire, New Jersey, New York, North 
Carolina, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South 
Carolina, Tennessee, Vermont, Virginia, Virgin Islands, West Virginia, 
Wisconsin: Mr. Kenneth Kuchno, Director, Eastern Area, 
Telecommunications, Rural Utilities Service, USDA, STOP 1599, 1400 
Independence Avenue SW., Washington, DC 20250-1599, Telephone (202) 
690-4673.
    Applications from: Alaska, Idaho, Iowa, Minnesota, Missouri, 
Montana, North Dakota, Oregon, South Dakota, Washington, Wyoming: Mr. 
Jerry Brent, Director, Northwest Area, Telecommunications, Rural 
Utilities Service, USDA, STOP 1595, 1400 Independence Avenue SW., 
Washington, DC 20250-1595, Telephone (202) 720-1025.
    Applications from: Arizona, Arkansas, California, Colorado, Hawaii, 
Kansas, Louisiana, Nebraska, Nevada, New Mexico, Oklahoma, Texas, Utah, 
American Samoa, Federated States of Micronesia, Guam, Republic of 
Marshall Islands, Republic of Palau, Commonwealth of the Northern 
Marianas Islands: Mr. Ken Chandler, Director, Southwest Area, 
Telecommunications, Rural Utilities Service, USDA, STOP 1597, 1400 
Independence Avenue SW., Washington, DC 20250-1597, Telephone (202) 
720-0800.

Definitions

    As used in this notice:
    Bandwidth means the capacity of the radio frequency band or 
physical facility needed to carry the broadband transmission services.
    Basic broadband transmission service means the broadband 
transmission service level provided by the applicant at the lowest rate 
or service package level for residential or business customers, as 
appropriate, providing such service meets the requirements of this 
notice.
    Broadband transmission service means providing an information rate 
equivalent to at least 200 kilobits/second in the consumer's connection 
to the network, both from the provider to the consumer (downstream) and 
from the consumer to the provider (upstream).
    Community means any incorporated or unincorporated city, town, 
village, or borough.
    Community center means a public building, or a section of a public 
building, that is used solely for the purposes of providing free access 
to and/or instruction in the use of broadband Internet service, and is 
of the appropriate size to accommodate this sole purpose. The community 
center must be open and accessible to area residents before and after 
normal working hours and on Saturday or Sunday. Examples of facilities 
that may be partially used for the described purposes include school, 
library, or city hall.
    Computer access points means a new computer terminal with access to 
basic broadband transmission service.
    Critical community facility means a public school, public library, 
public medical clinic, public hospital, community college, public 
university, or law enforcement, fire and ambulance stations.
    Eligible applicant shall have the meaning set forth in that 
paragraph entitled ``Eligible Applicant.''
    Eligible grant purposes shall have the meaning set forth in that 
paragraph entitled ``Eligible Grant Purposes.''
    End-user equipment means computer hardware and software, audio or 
video equipment, computer network components, telecommunications 
terminal equipment, inside wiring, interactive video equipment, or 
other facilities required for the provision and use of broadband 
transmission services.
    Matching contribution means the applicant's qualified contribution 
to the project.
    Project means the approved purposes financed by the grant and the 
applicant's matching contribution to serve one community and the 
contiguous, unincorporated areas located outside the community's 
boundaries.
    Rural area means any area of the United States not included within 
the boundaries of any incorporated or unincorporated city, town, 
village, or borough having a population of more than 20,000 
inhabitants.
    Service area means a single community and the contiguous, 
unincorporated areas located outside the community's boundaries.
    Spectrum means a defined band of frequencies that will accommodate 
the broadband transmission services.
    Telecommunications terminal equipment means the assembly of 
telecommunications equipment at the end of a circuit or path of a 
signal, including but not limited to facilities that receive or 
transmit over the air broadcast, satellite, and microwave, normally 
located on the premises of the end user, that interfaces with 
telecommunications transmission facilities, and that is used to modify, 
convert, encode, or otherwise prepare signals to be transmitted via 
such telecommunications facilities, or that is used to modify, 
reconvert, or carry signals received from such facilities, the purpose 
of which is to accomplish the

[[Page 45081]]

goal for which the circuit or signal was established.

Eligible Applicant

    To be eligible for a grant, the applicant must:
    (a) Be a public body; an Indian tribe; a cooperative, nonprofit, 
limited dividend or mutual association; municipality; an incorporated 
or limited liability company; or other legally organized entity. The 
applicant may not be an individual or a partnership; and
    (b) Have the legal authority to own and operate the broadband 
facilities as proposed in its application, to enter into contracts and 
to otherwise comply with applicable Federal statutes and regulations.

Eligible Project

    To be eligible for a grant, the project must:
    (a) Propose to serve a rural area where broadband transmission 
service does not currently exist;
    (b) Propose to serve one community;
    (c) Deploy basic broadband transmission service, free of all 
charges for at least 2 years, to all critical community facilities 
located within the proposed service area;
    (d) Deploy basic broadband transmission service, free of all 
charges for at least 2 years, to the community center;
    (e) Offer basic broadband transmission service to all residential 
and business customers within the proposed service area; and
    (f) Provide a community center within the proposed service area and 
make broadband transmission service available, free of all charges to 
users within the center for at least 2 years. The community center must 
have, as a minimum, 10 computer access points or computer access points 
equal to 1 percent of the service area's population, whichever is 
greater.

Eligible Grant Purposes

    Grant funds may be used to finance:
    (a) The construction, acquisition, or lease of facilities, 
including spectrum, to deploy broadband transmission services to all 
critical community facilities and to offer such service to all 
residential and business customers located within the proposed service 
area;
    (b) The improvement, expansion, construction, or acquisition of a 
community center that furnishes free access to broadband Internet 
service, provided that the community center is open and accessible to 
area residents before and after normal working hours and on Saturday or 
Sunday. Grant funds provided for such costs shall not exceed the 
greater of 5 percent of the grant amount requested or $100,000;
    (c) End-user equipment needed to carry out the project;
    (d) Operating expenses incurred in providing broadband transmission 
service to critical community facilities for the first 2 years of 
operations and to provide training and instruction. Salary and 
administrative expenses will be subject to review, and may be limited, 
by RUS for reasonableness in relation to the scope of the project; and
    (e) The purchase of land, buildings, or building construction 
needed to carry out the project.
    Grant funds may not be used to finance the duplication of any 
existing broadband transmission services provided by other entities.
    Facilities financed with grant funds cannot be utilized, in any 
way, to provide local exchange telecommunications service to any person 
or entity already receiving such services.

Matching Contributions

    The grant applicant's minimum matching contribution must equal 15 
percent of the grant amount requested and shall be in the form of:
    (a) Cash for eligible grant purposes; and
    (b) In-kind contributions of purposes that could have been financed 
with grant funds under this notice. In-kind contributions must be new 
or non-depreciated assets with established monetary values. 
Manufacturers' or service providers' discounts are not matching 
contributions.
    (c) The rental value of space provided within an existing community 
center, provided that the space is provided free of charge to the 
applicant;
    (d) Salary expenses incurred for the individual(s) operating the 
community center.
    (e) Expenses incurred in operating the community center.
    Cost incurred by the applicant, or others on behalf of the 
applicant, for facilities or equipment installed, or other services 
rendered prior to submission of a completed application, shall not be 
considered as an eligible grant purpose or matching contribution.
    Rental values of space provided must be substantiated by rental 
agreements documenting the cost of space of a similar size in a similar 
location.
    Rental values, salaries, and other expenses incurred in operating 
the community center will be subject to review by RUS for 
reasonableness in relation to the scope of the project.
    Any financial assistance from Federal sources will not be 
considered as matching contributions unless there is a Federal 
statutory exception specifically authorizing the Federal financial 
assistance to be considered as a matching contribution.

Completed Application

    A completed application must include the following documentation, 
studies, reports and information in a form satisfactory to RUS. 
Applications should be prepared in conformance with the provisions of 
this notice and applicable USDA regulations including 7 CFR parts 3015, 
3016, and 3019. Completed applications must include the following:
    (a) An application for Federal Assistance. A completed Standard 
Form 424.
    (b) An executive summary of the project. The applicant must provide 
RUS with a general project overview that addresses the following 
categories:
    (1) A description of why the project is needed;
    (2) A description of the applicant;
    (3) An explanation of the total project cost;
    (4) A general overview of the broadband telecommunications system 
to be developed, including the types of equipment, technologies, and 
facilities used;
    (5) Documentation describing the procedures used to determine the 
unavailability of existing broadband transmission service; and
    (6) A description of the participating community organizations 
(such as schools, health care providers, police and fire departments, 
etc.).
    (c) Scoring criteria documentation. Each grant applicant must 
address and provide documentation on how it meets each of the scoring 
criteria detailed in the ``Scoring of Applications'' section hereafter.
    (d) System Design. The applicant must submit a system design that 
contains the following, satisfactory to RUS:
    (1) A narrative discussing the proposed community center and all 
costs of the project, all existing and proposed facilities that are a 
part of the project, the services to be provided by the project, and 
the proposed service area;
    (2) Engineering design studies providing an economical and 
practical engineering design of the project, including a detailed 
description of the facilities to be funded, technical specifications, 
data rates, and costs; and
    (3) A map of the proposed service area reflecting the proposed 
location of the community center and critical community facilities; and

[[Page 45082]]

    (e) A scope of work. The scope of work must include, at a minimum:
    (1) The specific activities and services to be performed under the 
project;
    (2) Who will carry out the activities and services;
    (3) The time-frames for accomplishing the project objectives and 
activities; and
    (4) A budget for all capital and administrative expenditures 
reflecting the line item costs for eligible purposes for the grant 
funds, the matching contributions, and other sources of funds necessary 
to complete the project.
    (f) Community-oriented connectivity plan. The applicant must 
provide a community-oriented connectivity plan consisting of the 
following:
    (1) A listing of all critical community facilities to be connected, 
including public schools, public libraries, public medical clinics, 
public hospitals, community colleges, public universities, and law 
enforcement, fire and ambulance stations. The applicant must provide 
documentation of consultation with these groups, including commitments 
to participate in the proposed project;
    (2) A description of the services available to local residents 
through the use of the community center;
    (3) A listing of the proposed telecommunications terminal 
equipment, telecommunications transmission facilities, data terminal 
equipment, interactive video equipment, computer hardware and software 
systems, and components that process data for transmission via 
telecommunications, computer network components, communication 
satellite ground station equipment, or any other elements of the 
broadband telecommunications system designed to further the deployment 
and use of broadband transmission services, that the applicant intends 
to build or fund using RUS grant funds and matching contribution; and
    (4) A description of the consultations with the appropriate 
telecommun- ications carriers (including interexchange carriers, cable 
television operators, enhanced service providers, providers of 
satellite services and telecommunications equipment manufacturers and 
distributors) and the anticipated role of such providers in the 
proposed broadband telecommunications system.
    (g) Financial information and sustainability. The applicant must 
provide a narrative description demonstrating sustainability of the 
project, including having sufficient resources and expertise necessary 
to undertake and complete the project and how the project will be 
sustained following completion. The following financial information is 
required:
    (1) Certified financial statements, if available; and
    (2) 5 years of pro-forma financial information, evidencing the 
sustainability of the project.
    (h) A statement of experience. Information on the owners and 
principal employees' relevant work experience that would ensure the 
success of the project. The applicant must provide a written narrative 
describing its demonstrated capability and experience, if any, in 
operating a broadband telecommunications system.
    (i) Evidence of legal authority and existence. The applicant must 
provide evidence of its legal existence and authority to enter into a 
grant agreement with RUS and perform the activities proposed under the 
grant application.
    (j) Funding commitment from other sources. If the project requires 
additional funding from other sources in addition to the RUS grant, the 
applicant must provide evidence that funding agreements have been 
obtained to ensure completion of the project.
    (k) Compliance with other Federal statutes. The applicant must 
provide evidence of compliance with other Federal statutes and 
regulations, including, but not limited to the following:
    (1) 7 CFR part 15, subpart A--Nondiscrimination in Federally 
Assisted Programs of the Department of Agriculture--Effectuation of 
Title VI of the Civil Rights Act of 1964.
    (2) 7 CFR part 3015--Uniform Federal Assistance Regulations.
    (3) 7 CFR part 3017--Government wide Debarment and Suspension 
(Nonprocurement).
    (4) Government wide Requirements for Drug-Free Workplace.
    (5) 7 CFR part 3018--New Restrictions on Lobbying.
    (6) Certification regarding Architectural Barriers.
    (7) Certification regarding Flood Hazard Precautions.
    (8) An environmental report, in accordance with 7 CFR 1794.
    (9) Certification that grant funds will not be used to duplicate 
lines, facilities, or systems providing broadband transmission 
services.
    (10) Federal Obligation Certification on Delinquent Debt.

Review of Grant Applications

    (a) All applications for grants must be delivered to RUS at the 
address listed above or postmarked no later than November 5, 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.
    (b) Incomplete applications as of the deadline for submission will 
not be considered. If an application is determined to be incomplete, 
the applicant will be notified in writing and the application will be 
returned with no further action.
    (c) Applications conforming with this Notice will then be evaluated 
competitively by a panel of RUS employees selected by the 
Administrator, RUS, and be awarded points 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.
    (d) Regardless of the score an application receives, if RUS 
determines that the project is technically or financially infeasible, 
RUS will notify the applicant, in writing, and the application will be 
returned with no further action.

Scoring of Applications

    (a) All eligible applications will receive points for the following 
scoring criteria:
    (1) The rurality of the project;
    (2) The economic need of the project's service area (up to 20 
points); and
    (3) The benefits derived from the proposed service (up to 30 
points).
    (b) Scoring criteria:
    (1) The rurality of the project--up to 40 points.
    (i) This criterion will be used to evaluate the rurality of the 
community served by the project, in accordance with the following 
method of scoring. Rurality shall be determined by the 2000 population 
data contained in the U.S. Bureau of the Census at http://factfinder.census.gov/servlet/BasicFactsServlet. The following 
categories are used in the evaluation of rurality:
    (A) Level 1 means any community having a population of less than 
500 inhabitants.
    (B) Level 2 means any community having a population of at least 500 
and not in excess of 1,000 inhabitants.
    (C) Level 3 means any community having a population over 1,000 and 
not in excess of 2,000 inhabitants.
    (D) Level 4 means any community having a population over 2,000 and 
not in excess of 3,000 inhabitants.
    (E) Level 5 means any community having a population over 3,000 and 
not in excess of 4,000 inhabitants.
    (F) Level 6 means any community having a population over 4,000 and 
not in excess of 5,000 inhabitants.

[[Page 45083]]

    (G) Level 7 means any community having a population over 5,000 and 
not in excess of 10,000 inhabitants.
    (H) Level 8 means any community having a population over 10,000 and 
not in excess of 20,000 inhabitants.
    (ii) Each application will receive points based on the location of 
the facilities financed using the definitions above.
    (A) For a service area that includes a Level 1 community, it will 
receive 40 points.
    (B) For a service area that includes a Level 2 community, it will 
receive 35 points.
    (C) For a service area that includes a Level 3 community, it will 
receive 30 points.
    (D) For a service area that includes a Level 4 community, it will 
receive 25 points.
    (E) For a service area that includes a Level 5 community, it will 
receive 20 points.
    (F) For a service area that includes a Level 6 community, it will 
receive 15 points.
    (G) For a service area that includes a Level 7 community, it will 
receive 10 points.
    (H) For a service area that includes a Level 8 community, it will 
receive 5 points.
    (2) The economic need of the project service area--up to 30 points.
    (i) This criterion will be used to evaluate the economic need of 
the service area. Applicants must utilize the 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/. 
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):
    (A) PCI is 75 percent or greater of NAPCI; 0 points;
    (B) PCI is less than 75 percent and greater than or equal to 70 
percent of NAPCI; 5 points;
    (C) PCI is less than 70 percent and greater than or equal to 65 
percent of NAPCI; 10 points;
    (D) PCI is less than 65 percent and greater than or equal to 60 
percent of NAPCI; 15 points;
    (E) PCI is less than 60 percent and greater than or equal to 55 
percent of NAPCI; 20 points;
    (F) PCI is less than 55 percent and greater than or equal to 50 
percent of NAPCI; 25 points;
    (G) PCPI is less than 50 percent of NAPCPI; 30 points;
    (ii) If an applicant proposes service in more than one county, an 
average score will be calculated based on each county's individual 
scores.
    (3) The benefits derived from the proposed service--up to 30 
points.
    (i) This criterion will be used 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 and implementation of the project. Applicants 
may receive up to 30 points for documenting the need for services and 
benefits derived from service as explained in this section.
    (ii) RUS will consider:
    (A) The extent of the applicant's documentation explaining the 
economic, education, health care, and public safety issues facing the 
community and the applicant's proposed plan to address these challenges 
on a community-wide basis;
    (B) The extent of the project's planning, development, and support 
by local residents, institutions, and community facilities will be 
considered. This includes evidence of community-wide involvement, as 
exemplified in community meetings, public forums, and surveys. In 
addition, applicants should provide evidence of local residents' 
participation in the project planning and development;
    (C) The extent to which the community center will be used for 
instructional purposes including Internet usage, Web-based curricula, 
and Web page development; and
    (D) Web-based community resources enabled or provided by the 
applicant, such as community bulletin boards, directories, public web-
hosting, notices, etc.

Grant Documents

    The terms and conditions of grants shall be set forth in grant 
documents prepared by RUS. The documents shall require the applicant to 
own all equipment and facilities financed by the grant. Among other 
matters, RUS may prescribe conditions to the advance of funds that 
address concerns regarding the project feasibility and sustainability. 
RUS may also prescribe terms and conditions applicable to the 
construction and operation of the project and the delivery of broadband 
transmission services to rural areas.

    Dated: July 2, 2002.
Curtis M. Anderson,
Deputy Administrator as Acting Administrator, Rural Utilities Service.
[FR Doc. 02-17018 Filed 7-5-02; 8:45 am]
BILLING CODE 3410-15-P