[Federal Register Volume 68, Number 43 (Wednesday, March 5, 2003)]
[Notices]
[Pages 10610-10615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5136]



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Part III





Department of Commerce





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National Telecommunications and Information Administration



Public Telecommunications Facilities Program: Closing Date; Notice

  Federal Register / Vol. 68, No. 43 / Wednesday, March 5, 2003 / 
Notices  

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DEPARTMENT OF COMMERCE

National Telecommunications and Information Administration

[Docket No. 000410097-3041-07]
RIN 0660-ZA11


Public Telecommunications Facilities Program: Closing Date

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

ACTION: Notice of closing date for solicitation of radio and 
nonbroadcast applications.

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SUMMARY: Subject to the availability of fiscal year (FY) 2003 funds, 
the National Telecommunications and Information Administration (NTIA), 
U.S. Department of Commerce, announces the solicitation of applications 
for planning and construction grants for public radio and nonbroadcast 
facilities under the Public Telecommunications Facilities Program 
(PTFP).

DATES: Pursuant to 15 CFR 2301.8(b), the NTIA Administrator hereby 
establishes the following closing date for the filing of radio and 
nonbroadcast applications for PTFP grants. The closing date selected 
for the submission of all radio and nonbroadcast applications for FY 
2003 is Friday, April 4, 2003. Applications must be received prior to 6 
p.m. Friday, April 4, 2003. Applications submitted by facsimile or 
electronic means are not acceptable.

ADDRESSES: Application materials may be obtained electronically via the 
Internet (http://www.ntia.doc.gov/ptfp). To obtain a printed 
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 the 
Internet (http://www.ntia.doc.gov/ptfp).

SUPPLEMENTARY INFORMATION:

I. Closing Date

    NTIA announces that all radio and nonbroadcast applicants for 
matching grants under the PTFP must file their applications on or 
before 6 p.m., April 4, 2003. Issuance of grants is subject to the 
availability of FY 2003 funds. Congress has recently passed an 
appropriation of $43.5 million for the PTFP. NTIA intends to divide the 
funds appropriated by the Congress into two parts. One portion of the 
appropriation will be set aside to fund radio and nonbroadcast 
applications submitted in response to this Notice as well as television 
broadcast applications submitted in response to the Notice of Closing 
Date published by NTIA on October 17, 2002. A second portion of the 
appropriation will be set aside to fund additional phases of multi-
phase projects initially funded in FY 2000, FY 2001 and FY 2002. NTIA 
will shortly publish a Notice in the Federal Register indicating the 
funds set aside for each portion. In awarding grants, NTIA will strive 
to maintain an appropriate balance between traditional grants and those 
to stations converting to digital broadcasting. Information regarding 
radio projects is included in Section VI of this document and 
information regarding nonbroadcast projects is included in Section VII. 
The amount of any grants awarded by NTIA will vary, depending on the 
approved project. For FY 2002, NTIA awarded $3.15 million in funds to 
52 radio projects and $1 million in funds to 4 nonbroadcast projects. 
The radio awards ranged from $15,073 to $220,568 and the nonbroadcast 
awards ranged from $75,000 to $404,047.
    Any applications submitted in response to this Notice which are for 
television broadcast projects will be returned to the applicant without 
review.
    All radio and nonbroadcast applications will be reviewed according 
to the Evaluation Process discussed in Section XI. Radio and 
nonbroadcast applications will compete with applications for television 
replacement or signal extension projects which were submitted by the 
November 19, 2002 Closing Date previously established by NTIA for 
television broadcast applications. Radio and nonbroadcast projects will 
be awarded in the fourth quarter of FY 2003 (July-September 2003).

II. Application Forms

    All applicants must use the official application form for the FY 
2003 grant cycle. This form expires on October 31, 2003, and no 
previous versions of the form may be used. Each page of the application 
form has the expiration date of 10/31/2003 printed on the bottom line. 
To apply for a PTFP grant, an applicant must file an original and five 
copies of a timely and complete application on the application form. 
The current application form is available on the Internet and will be 
provided to applicants as part of the application package upon request.
    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. The PTFP application form has been cleared under 
OMB control no. 0660-0003.

III. Authority

    The Public Telecommunications Facilities Program is authorized by 
the Communications Act of 1934, as amended, 47 U.S.C. 390-393, 397-
399(b).

IV. Catalog of Federal Domestic Assistance (CFDA)

    CFDA No. 11.550, Public Telecommunications Facilities Program.

V. Regulations

    The applicable Rules for the PTFP were published on November 8, 
1996 (61 FR 57966). In accordance with provisions provided in 15 CFR 
part 2301, section 2301.26, certain requirements of the PTFP are 
modified in this Notice for FY 2003. Copies of the 1996 Rules are 
posted on the NTIA Internet site and NTIA will make printed copies 
available to applicants upon request. 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 must ensure that the carrier will 
be able to guarantee delivery of the application by the Closing Date 
and Time. Applicants should be aware that all material sent via the 
United States Postal Service (including ``overnight'' or ``Express 
Mail'') are subject to delivery delays due to increased mail security 
procedures at the Department of Commerce. NTIA will not accept 
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

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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 2003 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/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 the 
mailing address listed above. Prospective applicants should read the 
Final Rules carefully before submitting applications. Radio and 
nonbroadcast applicants whose applications were deferred in FY 2002 
will be mailed information regarding the reactivation of their 
applications. Applicants whose radio projects were deferred from FY 
2002 should carefully review Section VI., Radio Broadcasting, regarding 
policies which apply to the reactivation of their applications.
    Indirect costs for construction applications are not supported by 
this program. The total dollar amount of the indirect costs proposed in 
a planning application under this program must not exceed the indirect 
cost rate negotiated and approved by a cognizant Federal agency prior 
to the proposed effective date of the award.

VI. Radio Broadcasting

    NTIA will take great care to ensure that its funding of radio 
applications follows the directive of 47 U.S.C. 393(c) that ``a 
substantial amount'' of each year's PTFP funds should be awarded to 
public radio. For the FY 2003 grant round, the eligibility and priority 
of radio projects, eligibility of radio equipment, and the presumption 
of 50% funding for radio equipment replacement applications remain as 
they were in the FY 2002 grant round.
    In response to recent changes in technology and in the Federal 
regulatory environment, NTIA is providing guidance on three issues of 
interest to potential radio applicants. Applicants for the following 
types of applications should read the appropriate sections on radio 
signal expansion, conversion to digital transmission, or Internet 
streaming.

(A) Radio Signal Expansion

    NTIA's highest priority is activation of public broadcasting 
facilities to provide a public broadcasting signal to unserved 
audiences. NTIA is prepared to fund new radio station projects as 
warranted by reviewers' evaluations and PTFP's financial resources. 
Activation of new radio stations has been delayed in recent years as 
the Federal Communications Commission (FCC) placed a ``freeze'' on new 
applications as it considers a large number of mutually exclusive 
applications for construction permits.
    NTIA anticipates receiving many applications for station activation 
projects when the FCC begins to accept new applications. In 
anticipation of increased interest in these types of applications, we 
are hereby providing the following guidance to potential applicants.
    Priority 1A. NTIA's first priority for radio projects remains 
activations to provide the first public radio signal to an area. These 
projects have been divided into two subgroups, Priority 1A and Priority 
1B. As in the past, Priority 1A status will be given to first public 
radio signal projects that will originate a local public radio service 
to a geographic area. A Priority 1A application must include local 
facilities which are fully staffed for station management and program 
production.
    NTIA has long recognized that new fully-staffed Priority 1A 
projects are usually submitted by organizations that are beginning to 
build community support. Priority 1A projects usually also incur 
significant project costs which are ineligible for Federal support, 
such as studio building acquisition/renovation and start-up staff 
costs. Because these projects are NTIA's highest priority, PTFP will 
continue to fund Priority 1A applications with a presumption of a 75% 
Federal share, the maximum amount permitted by law.
    Priority 1B. Priority 1B status will continue to be given to first 
public radio signal projects which are repeaters or translators of 
other public radio facilities, or that will serve significant 
additional listeners with a first public radio signal through increases 
in tower height and/or power upgrades.
    In recent years, applications for expansion of service have shifted 
from fully-staffed stations to requests for Priority 1B repeaters and 
translators. Given the limited availability of Federal funds and the 
increasing number of applications for new repeater/translator stations, 
PTFP will now evaluate Priority 1B applications to determine whether or 
not 75% Federal funding is merited. In general, NTIA will continue its 
present presumption of 75% Federal funding for Priority 1B applications 
which construct the applicant's first broadcast facility in a 
community.
    An application requesting a translator upgrade to a repeater 
station or a project to construct a second station in a community where 
the applicant already has a facility will be funded by NTIA at a 50% 
Federal share. These applicants should be able to draw on the financial 
resources of the community served by the applicant's existing program 
service and also would incur reduced ineligible start-up costs since 
the broadcaster would be building upon existing infrastructure. 
Applications for these types of Priority 1B projects may seek a higher 
Federal percentage by submitting justification for the increased amount 
which will be reviewed by PTFP and the peer reviewers.
    Power increase projects. Sometimes a project to replace a station's 
transmitter or antenna results in an increase in coverage to a new, but 
relatively small, unserved audience. PTFP usually treats these 
applications with incidental coverage increases as Priority 2 
applications if the equipment replacement meets the Priority 2 
criteria. If an applicant is requesting a Priority 1B consideration of 
such an application, the applicant should provide documentation of a 
significant increase in the population that will receive a first public 
radio signal. PTFP will evaluate the Priority of such requests on a 
case-by-case basis.
    Second station in a market. Sometimes a project to construct a 
second station (or other additional stations) in a community results in 
an increase in coverage to a new, but relatively small, unserved 
audience. If an applicant is requesting a Priority 1B consideration of 
such an application, the applicant should provide documentation of a 
significant increase in the population that will receive a first public 
radio signal. PTFP will evaluate the Priority of such requests on a 
case-by-case basis.
    Priority 4A. An application to provide an additional public radio 
signal to an area already served by public radio will continue to be 
placed in Priority 4A. The project must demonstrate that it

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addresses underserved needs in a way that significantly differentiates 
its services from what is already available in the proposed service 
area (see Sec.  2301.4(b)(ii)(b) of the PTFP Final Rules). In order to 
extend its resources to assist in signal expansion, NTIA will usually 
fund Priority 4A additional signal projects at no more than a 50% 
Federal share. This is due both to the lower priority and reduced 
ineligible costs of Priority 4A repeater/translator projects which 
build upon existing infrastructure. Applicants for Priority 4A 
expansion projects, including those for new fully-staffed facilities, 
may seek a higher Federal percentage by submitting justification for 
the increased amount which will be reviewed by PTFP and the peer 
reviewers.
    All new service applications. An applicant proposing to construct a 
Priority 1A, 1B or Priority 4A facility should provide documentation, 
including maps or tables, of the number and geographical location of 
persons who would receive a first public radio signal as a result of 
the proposed project or who would receive a duplicated public radio 
signal as a result of the proposed project (see Sec.  2301.4(b)(1)(v) 
of the PTFP Final Rules).
    NTIA will permit those applicants whose FY 2002 applications for 
new service projects were negotiated by PTFP, but were deferred from 
funding because of the lack of FCC authorizations, to submit FY 2003 
applications requesting the same Federal percentage as their FY 2002 
applications.

(B) Radio Station Conversion to Digital Transmission

    NTIA encourages the use of digital technologies for public radio 
facilities. For several years, 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% Federal share 
unless a showing of extraordinary need for a higher percentage has been 
made pursuant to Sec.  2301.6(b)(ii) of the PTFP Rules. NTIA will 
continue to support digital non-transmission equipment for radio as it 
has been doing for more than a decade.
    Digital conversion projects. On October 10, 2002, the FCC approved 
digital transmission for radio stations, although it has not yet 
published regulations for such stations. Unlike the digital conversion 
of television stations, the FCC has not established a deadline for the 
conversion of radio stations. In addition, there is the question of 
when receivers will be generally available for purchase by the public. 
These factors raise the issue of whether projects whose primary purpose 
is to begin digital radio broadcasts present compelling urgency for 
funding in the FY 2003 grant round.
    NTIA continues to examine with interest the development of digital 
radio, but shares many of the concerns which were recently expressed by 
the Digital Radio & Television Consultation Panels established by the 
Corporation for Public Broadcasting (CPB). In their joint 
recommendations, the Panels recommended that CPB set aside $3.5 million 
for conversion of public radio stations in 13 seed markets identified 
by Ibiquity, the developer of the digital radio standard. (The seed 
markets are Atlanta, Boston, Chicago, Dallas, Denver, Detroit, Las 
Vegas, Los Angeles, Miami, New York, San Francisco, Seattle, and 
Washington, DC.) Public radio stations serving these thirteen 
communities collectively provide service to more than 30% of public 
radio's total national audience.
    On August 30, 2002, even before the FCC's October action, the CPB 
board of directors adopted the Panels recommendations.
    The CPB Panels indicated that digital conversion of the stations in 
the seed markets would provide public radio with an opportunity to 
assess the risks and benefits of further digital deployment. Conversion 
of the stations, the joint panel report states, would provide 
``knowledge that would help stations develop a realistic timetable and 
plan for digital conversion in the rest of the country.''
    NTIA believes that the digital conversion of public radio stations 
in these markets is a reasonable way to begin the orderly transition to 
digital radio broadcasting. We urge stations in these thirteen markets 
to consider the funding opportunities presented by the Corporation for 
Public Broadcasting.
    Applications for digital transmission equipment for public radio 
facilities to convert to digital broadcasting are eligible for PTFP 
funding although, for the reasons discussed above, we do not believe 
these applications will demonstrate compelling urgency during the FY 
2003 grant round. As with applications for television digital 
conversion projects, PTFP will place radio applications requesting 
funds to convert to digital broadcasting in the Broadcast Other 
category. The presumption of funding for radio projects in the 
Broadcast Other category is a 50% Federal share.
    Digital replacement transmitters. Regarding FY 2003 applications 
for replacement equipment, NTIA anticipates that it will fund digital-
compatible transmitters as analog transmitter replacements, if 
requested by applicants and justified as urgent replacement of radio 
transmission equipment. Transmitter replacement applications will be 
placed in Priority 2 or Priority 4A, as appropriate, depending on 
whether the applicant provides the only public radio signal to an area 
(see Sec. Sec.  2301.4(b)(2) and (4)). Reflecting many of the concerns 
regarding risks and benefits expressed by CPB's Digital Radio and 
Television Consultation Panel, NTIA believes that FY 2003 is the 
beginning of a transition period for public radio. PTFP does not 
anticipate directly funding digital transmitters with HD Radio (IBOC) 
exciters during the FY 2003 grant cycle. Grant recipients will, 
however, be able to add IBOC exciters to PTFP-funded digital-compatible 
transmitters. PTFP grant recipients can use the funds authorized for an 
analog or digital-compatible radio transmitter towards the purchase of 
a transmitter with an IBOC exciter. For FY 2003 awards, the maximum 
amount that PTFP will accept in the final cost of a project which 
includes an IBOC transmitter/exciter will be limited to the amount 
initially approved for the analog or digital-compatible transmitter. 
Any cost for the IBOC transmitter/exciter above the amount initially 
approved for the analog or digital-compatible transmitter will be the 
responsibility of the grantee. NTIA reminds potential applicants that 
licensing fees, including licensing fees related to the use of HD Radio 
technology, are not eligible for PTFP funds.

(C) Internet Streaming

    Given the limited availability of funds, NTIA has emphasized 
support of basic equipment required for a public broadcast station to 
serve its local audience (see the Final Rules, Sec.  2301.4, passim). 
NTIA continues to receive more activation and replacement applications 
than it can fund in any cycle. NTIA has received one or two 
applications for equipment to provide Internet streaming in each of the 
past several grant rounds. The applications have not been favorably 
evaluated by the outside peer reviewers or the national advisory 
panels.
    NTIA has determined that streaming on the Internet goes beyond the 
provision of a basic local public broadcasting service. Until Internet 
streaming becomes a basic part of a station's service to its own 
community,

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therefore, NTIA will place any applications it receives for streaming 
equipment in Priority 5B (see Sec.  2301.4(b)(5)(ii) of the PTFP Final 
Rules). Priority 5B relates to equipment required for the production of 
``programming for regional and national use.''

VII. Distance Learning and Nonbroadcast 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. NTIA encourages applications for 
innovative or unique distance learning projects which address 
demonstrated and substantial community needs. For fiscal year 2002, 
NTIA awarded $1 million in funds to four grants for distance learning 
projects. The awards ranged from $75,000 to $404,047.
    The growth of digital technologies provides new opportunities for 
distance learning projects using both broadcast and nonbroadcast 
facilities. NTIA encourages applicants to consider the use of digital 
technologies in proposing unique or innovative distance learning 
projects for funding in FY 2003. 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 provide multi-media content using the digital television 
transmission infrastructure and delivered through a method that is not 
a typical broadcast channel. 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, people living in rural communities, or those living 
in disadvantaged areas where distance learning services will provide 
significant educational opportunities.
    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 2003 PTFP applications.

VIII. Television Broadcasting and Digital Conversion

    NTIA is not accepting applications for television broadcasting and 
digital conversion projects at this time. The Closing Date for these 
applications was November 19, 2002.

IX. Eligible and Ineligible Costs

    Eligible equipment for the FY 2003 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 
2003 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.

X. Notice of Applications Received

    In accordance with 15 CFR 2301.13, NTIA will publish a listing of 
all applications received by the Agency. The listing will be placed on 
the NTIA Internet site and NTIA also will make this information 
available by mail upon request. The address of the NTIA Internet site 
is: www.ntia.doc.gov/ptfp. 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 listing will also include a request for comments on 
the applications from any interested party.

XI. Evaluation Process

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

XII. 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

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of the applications, and will present recommendations to the OTIA 
(Office of Telecommunications and Information Applications) Associate 
Administrator for review and approval of the recommended slate. The 
PTFP Director recommends the funding order for applications in three 
categories: ``Recommended for Funding,'' ``Recommended for Funding if 
Funds Are Available,'' and ``Not Recommended for Funding.'' See 15 CFR 
2301.18 for a description of the selection factors retained by the 
Director, OTIA Associate Administrator, and the Assistant Secretary for 
Communications and Information, the NTIA Administrator.
    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).

XIII. Disposition of Unsuccessful Applications

    PTFP will retain unsuccessful applications through the Closing Date 
of the FY 2004 grant cycle. Applicants may reactivate their 
unsuccessful applications pursuant to Sec.  2301.9 of the PTFP Rules. 
Unsuccessful applications not reactivated by the Closing Date of the 
next grant cycle will be destroyed.

XIV. 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. 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.

XV. NTIA Policies on Procedural Matters

    Based upon NTIA's experience during the PTFP 2002 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 2003 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. While the intent of this 
Notice is to address FY 2003 radio applications, applicants for radio 
or television projects may submit applications resulting from 
catastrophic damage or emergency situations.
    For FY 2003 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 NTIA 
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 2003 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 2003 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.

FCC Authorizations

    For the FY 2003 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

[[Page 10615]]

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 2003 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 2003 PTFP applications, NTIA may accept FCC authorizations 
that are in the name of an organization other than the PTFP applicant 
in certain circumstances. Applicants requiring the use of FCC 
authorizations issued to another organization should discuss in the 
application Program Narrative why the FCC authorization must be in the 
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 2003 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 
FCC, information about FCC filing procedures can be found on the 
Internet at: www.fcc.gov.

XVI. Intergovernmental Review

    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 the 
Closing Date. 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).

XVII. Other Requirements

    The Department of Commerce Pre-Award Notification of Requirements 
for Grants and Cooperative Agreements contained in the Federal Register 
notice of October 1, 2001 (66 FR 49917), as amended by the Federal 
Register notice published on October 30, 2002 (67 FR 66109), is 
applicable to this solicitation.

XVIII. Executive Order 12866

    It has been determined that this notice is a ``not significant'' 
rule under Executive Order 12866.

XIX. Executive Order 13132

    It has been determined that this notice does not contain policies 
with Federalism implications as that term is defined in EO 13132.

XX. Regulatory Flexibility Analysis

    Because notice and comment are not required under 5 U.S.C. 553, or 
any other law, for this notice related to public property, loans, 
grants, benefits or contracts, 5 U.S.C. 553(a), Regulatory Flexibility 
Analysis is not required and has not been prepared for this notice. 5 
U.S.C. 601 et seq.

Bernadette McGuire-Rivera,
Associate Administrator, Office of Telecommunications and Information 
Applications.
[FR Doc. 03-5136 Filed 3-4-03; 8:45 am]
BILLING CODE 3510-60-P