[Federal Register Volume 69, Number 40 (Monday, March 1, 2004)]
[Notices]
[Pages 9576-9582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4322]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Announcement of Grant and Loan Application Deadlines and Funding 
Levels

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of solicitation of applications.

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SUMMARY: The Rural Utilities Service (RUS) announces its Distance 
Learning and Telemedicine (DLT) Program grant application window for 
funding during fiscal year (FY) 2004. In addition, RUS announces the 
minimum and maximum amounts for DLT grants, combination loan-grants and 
loans applicable for the fiscal year. The DLT Program regulation (7 CFR 
1703, subparts D, E, F and G) has not changed, but this Notice appears 
in a new format, as mandated by a policy directive issued by the Office 
of Federal Financial Management (OFFM) of the Office of Management and 
Budget (OMB), published in the Federal Register on June 23, 2003.

DATES: You may submit completed applications for grants on paper or 
electronically according to the following deadlines:
     Paper copies must be postmarked and mailed, 
shipped, or sent overnight no later than April 30, 2004, to be eligible 
for FY 2004 grant funding. Late applications are not eligible for FY 
2004 grant funding.
     Electronic copies must be received by April 30, 
2004, to be eligible for FY 2004 grant funding. Late applications are 
not eligible for FY 2004 grant funding.
     RUS will examine applications for items that 
would disqualify them from consideration if the applications are 
submitted on paper by March 31, 2004.
    You may submit applications for FY 2004 combination loan-grants and 
loans at any time.

ADDRESSES: You may obtain application guides and materials for all DLT 
programs via the Internet at the DLT Web site: http://www.usda.gov/rus/telecom/dlt/dlt.htm. You may also request application guides and 
materials from RUS by contacting the DLT Branch at (202) 720-0413.
    Submit completed paper applications for grants, combination loan-
grants or loans to the Rural Utilities Service, U.S. Department of 
Agriculture, 1400 Independence Ave., SW., Room 2845, STOP 1550, 
Washington, DC 20250-1550. Applications should be marked ``Attention: 
Director, Advanced Services Division, Telecommunications Program.''
    Submit electronic grant or combination loan-grant applications at 
http://www.grants.gov (Grants.gov), following the instructions you find 
on that Web site.

FOR FURTHER INFORMATION CONTACT: Orren E. Cameron, III, Director, 
Advanced Services Division, Rural Utilities Service, U.S. Department of 
Agriculture, telephone: (202) 720-0413, fax: (202) 720-1051.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency: Rural Utilities Service (RUS).
    Funding Opportunity Title: Distance Learning and Telemedicine Loans 
and Grants.
    Announcement Type: Initial announcement.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.855.
    Dates: You may submit completed applications for grants on paper or 
electronically according to the following deadlines:
     Paper copies must be postmarked and mailed, 
shipped, or sent overnight no later than April 30, 2004, to be eligible 
for FY 2004 grant funding. Late applications are not eligible for FY 
2004 grant funding.
     Electronic copies must be received by April 30, 
2004, to be eligible for FY 2004 grant funding. Late applications are 
not eligible for FY 2004 grant funding.
     RUS will examine applications for items that 
would disqualify them from consideration if the applications are 
submitted on paper by March 31, 2004.
    You may submit applications for FY 2004 combination loan-grants and 
loans at any time.

Items in Supplementary Information

I. Funding Opportunity: Brief Introduction to the DLT Program
II. Award Information: Available Funds, Minimum and Maximum Amounts
III. Eligibility Information: Who Is Eligible, What Kinds of 
Projects Are Eligible, What Criteria Determine Basic Eligibility
IV. Application and Submission Information: Where to Get Application 
Materials, What Constitutes a Completed Application, How and Where 
to Submit Applications, Deadlines, Items That Are Eligible
V. Application Review Information: Considerations and Preferences, 
Scoring Criteria, Review Standards, Selection Information
VI. Award Administration Information: Award Notice Information, 
Award Recipient Reporting Requirements
VII. Agency Contacts: Web, Phone, Fax, E-Mail, Contact Name

I. Funding Opportunity

    Distance learning and telemedicine loans and grants are 
specifically designed to provide access to education, training and 
health care resources for people in rural America. The Distance 
Learning and Telemedicine (DLT) Program (administered by the DLT Branch 
of the Rural Utilities Service (RUS)) funds the use of advanced 
telecommunications technologies to help communities meet those needs.
    The grants, which are awarded through competitive process, may be 
used to fund telecommunications, computer networks and related advanced 
technologies.
    Applications for loans and combination loan-grants are not 
competitively scored. In addition to the items listed for grants, loans 
and combination loan-grants may be used to fund construction of 
necessary transmission facilities on a technology-neutral basis. 
Examples of such facilities include satellite uplinks, microwave towers 
and associated structures, T-1 lines, DS-3 lines, and other similar 
facilities. Loan funds may also be used to obtain mobile units and for 
some building construction. Please see 7 CFR

[[Page 9577]]

1703, subparts D, E, F and G for specifics.
    This notice has been formatted to conform to a policy directive 
issued by the Office of Federal Financial Management (OFFM) of the 
Office of Management and Budget (OMB), published in the Federal 
Register on June 23, 2003. This notice does not change the DLT Program 
regulation (7 CFR 1703, subparts D, E, F, and G).

II. Award Information

A. Available Funds

1. General
    The Administrator has determined that the following amounts are 
available for grants, combination loan-grants and loans in FY 2004 
under 7 CFR 1703.101(g).
2. Grants
    a. $15 million is available for grants. Under 7 CFR 1703.124, the 
Administrator has determined the maximum amount of an application for a 
grant in FY 2004 is $500,000 and the minimum amount of a grant is 
$50,000.
    b. Assistance instrument: RUS will execute grant documents 
appropriate to the project prior to any advance of funds with 
successful applicants.
3. Combination Loan-Grants
    a. $110 million is available for combination loan-grants ($100 
million in loans paired with $10 million in grants, i.e., $100 loan: 
$10 grant ratio). Under 7 CFR 1703.133, the Administrator has 
determined the maximum amount of an application for a combination loan-
grant in FY 2004 is $10 million and the minimum amount of a combination 
loan-grant is $50,000.
    b. RUS will execute grant and loan documents appropriate to the 
project prior to any advance of funds with successful applicants.
4. Loans
    a. $200 million is available for loans. Under 7 CFR 1703.143, the 
Administrator has determined the maximum amount of an application for a 
loan in FY 2004 is $10 million and the minimum amount of a loan is 
$50,000.
    b. RUS will execute loan documents appropriate to the project prior 
to any advance of funds with successful applicants.
    B. DLT grants, combination loan-grants and loans cannot be renewed. 
Award documents specify the term of each award. Applications to extend 
existing projects are welcomed (grant applications must be submitted 
during the application window) and will be evaluated as new 
applications.

III. Eligibility Information

A. Who Is Eligible for Grants, Combination Loan-Grants and Loans? (See 
7 CFR 1703.103)

    1. Only entities legally organized as one of the following are 
eligible for DLT financial assistance:
    a. An incorporated organization or partnership,
    b. An Indian tribe or tribal organization, as defined in 25 U.S.C. 
450b (b) and (c),
    c. A State or local unit of government,
    d. A consortium, as defined in 7 CFR 1703.102, or
    e. Other legal entity, including a private corporation organized on 
a for-profit or not-for profit basis.
    2. Individuals are not eligible for DLT financial assistance 
directly.
    3. Electric and telecommunications borrowers under the Rural 
Electrification Act of 1936 (7 U.S.C. 950aaa et seq.) are not eligible 
for grants or combination loan-grants. They are, however, eligible for 
loans (see 7 CFR 1703.101(f)).

B. What Are the Basic Eligibility Requirements for a Project?

    1. Required matching contributions (grants only). See paragraphs 
IV.B.2.b and IV.B.2.g of this notice for information on documentation 
of matching contributions. Please see 7 CFR 1703.125(g) for the 
requirement.
    a. Grant applicants must demonstrate a matching contribution, in 
cash or in kind (new, non-depreciated items), of at least fifteen (15) 
percent of the total amount of RUS financial assistance requested. 
Matching contributions must be used for eligible purposes of DLT grant 
assistance (see 7 CFR 1703.121 and paragraph IV.G of this notice). 
Greater amounts of eligible matching contributions may increase an 
applicant's score (see 7 CFR 1703.126(b)(4) and paragraph V.B.2.d of 
this notice).
    b. Combination loan-grants and loans do not require matching 
contributions.
    2. The DLT program is designed to flow the benefits of distance 
learning and telemedicine to residents of rural America (see 7 CFR 
1703.103(a)(2)). Therefore, in order to be eligible, applicants must 
propose to use the financial assistance to:
    a. Operate a rural community facility; or
    b. Deliver distance learning or telemedicine services to entities 
that operate a rural community facility or to residents of rural areas, 
at rates calculated to ensure that the benefit of the financial 
assistance is passed through to such entities or to residents of rural 
areas.
    3. If a loan applicant is a telecommunications or electric borrower 
under the Rural Electrification Act of 1936 (7 U.S.C. 901-950aa, et 
seq.), they may either pass the loan along to an entity that will 
fulfill paragraph III.B.2 of this notice; or acquire, install, extend 
or improve a distance learning or telemedicine facility. Please see 7 
CFR 1703.101(f).
    4. Rurality. a. All projects that applicants propose to fund with 
RUS financial assistance must meet a minimum rurality threshold, to 
ensure that benefits from the projects flow to rural residents. The 
minimum eligibility score is 20 points. Please see paragraphs IV.B.2.g 
and V.B.2 of this notice. In addition, please see 7 CFR 1703.126(a)(2) 
for an explanation of the rurality scoring and eligibility criterion.
    b. Each application must apply the following criteria to each of 
its end-user sites, and hubs that are also proposed as end-user sites, 
in order to determine a rurality score. The rurality score is the 
average of all end-user sites' rurality scores.

----------------------------------------------------------------------------------------------------------------
                Criterion                           Character                    Population           DLT points
----------------------------------------------------------------------------------------------------------------
Exceptionally Rural Area.................  Area not within a city,      [le]5000...................           45
                                            village or borough.
Rural Area...............................  Incorporated or              5000 and                   30
                                            unincorporated area.         [le]10,000.
Mid-Rural Area...........................  Incorporated or              10,000 and                 15
                                            unincorporated area.         [le]20,000.
Urban Area...............................  Incorporated or              20,000..........            0
                                            unincorporated area.
----------------------------------------------------------------------------------------------------------------

    c. Grants only: The rurality score is also one of the competitive 
scoring criteria applied to grant applications.
    5. Projects located in areas covered by the Coastal Barrier 
Resources Act (16 U.S.C. 3501 et seq.) are not eligible for any 
financial assistance from the DLT Program. Please see 7 CFR 
1703.123(a)(11) for grants, 7 CFR 1703.132(a)(5) for combination loan-

[[Page 9578]]

grants and 7 CFR 1703.142(b)(3) for loans.
    C. See paragraph IV.B of this notice for a discussion of the items 
that make up a completed application. You may also refer to 7 CFR 
1703.125 for completed grant application items, 7 CFR 1703.134 for 
completed combination loan-grant application items, and 7 CFR 1703.144 
for completed loan application items.

IV. Application and Submission Information

    A. Where to get application information. Application guides, copies 
of necessary forms and samples, and the DLT Program regulation are 
available from these sources:
    1. The Internet: http://www.usda.gov/rus/telecom/dlt/dlt.htm, or 
http://www.grants.gov.
    2. The DLT Branch of RUS for paper copies of these materials: (202) 
720-0413.
    B. What constitutes a completed application? 1. Detailed 
information on each item in the table in paragraph IV.B.6 of this 
notice can be found in the sections of the DLT Program regulation 
listed in the table, and the appropriate DLT application guide(s). 
Applicants are strongly encouraged to read and apply both the 
regulation and the application guide(s). This notice does not change 
the requirements for a completed application for any form of DLT 
financial assistance specified in the DLT Program regulation.
    a. When the table refers to a narrative, it means a written 
statement, description or other written material prepared by the 
applicant, for which no form exists. RUS recognizes that each project 
is unique and requests narratives of varying complexity to allow 
applicants to fully explain their request for financial assistance.
    b. When documentation is requested, it means letters, 
certifications, legal documents or other third party documentation that 
provide evidence that the applicant meets the listed requirement. For 
example, to confirm Enterprise Zone (EZ) designations, applicants use 
various types of documents, such as letters from appropriate government 
bodies and copies of appropriate USDA Web pages. Leveraging 
documentation sometimes include letters of commitment from other 
funding sources, or other documents specifying in-kind donations. 
Evidence of legal existence is sometimes proven by applicants who 
submit articles of incorporation. None of the foregoing examples is 
intended to limit the types of documentation that may be submitted to 
fulfill a requirement. DLT program regulations and the application 
guides provide specific guidance on each of the items in the table.
    2. The DLT application guides and ancillary materials provide all 
necessary forms and sample worksheets.
    3. While the table in paragraph IV.B.6 of this notice includes all 
items of a completed application for each program, RUS may ask for 
additional or clarifying information if the submitted item(s) do not 
fully address a criterion or other provision. RUS will communicate with 
applicants if the need for additional information arises.
    4. Submit the required application items in the listed order.
    5. DUNS Number (new for FY 2004). As required by the OMB, all 
applicants for grants or combination loan-grants must now supply a Dun 
and Bradstreet Data Universal Numbering System (DUNS) number when 
applying. The Standard Form 424 (SF-424) contains a field for you to 
use when supplying your DUNS number. Obtaining a DUNS number costs 
nothing and requires a short telephone call to Dun and Bradstreet. 
Please see the DLT Web site or Grants.gov for more information on how 
to obtain a DUNS number or how to verify your organization's number.
    6. Table of Required Elements of a Completed Application, by 
Program:

----------------------------------------------------------------------------------------------------------------
                                                         Required items by application type
                                   -----------------------------------------------------------------------------
                                                             Combination loan-
         Application item               Grants  (7 CFR        grants  (7 CFR      Loans  (7 CFR 1703.144  and 7
                                       1703.125 and CFR     1703.134 and 7 CFR            CFR 1703.145)
                                          1703.126)              1703.135)
----------------------------------------------------------------------------------------------------------------
SF-424, completely filled out       Yes..................  Yes.................  Yes.
 (Application for Federal
 Assistance form).
Executive Summary (narrative).....  Yes..................  Yes.................  Yes.
Objective Scoring Worksheet.......  Yes..................  No..................  No.
Rural Calculation Table...........  Yes..................  Yes.................  Yes.
National School Lunch Program       Yes..................  No..................  No.
 Determination.
EZ/EC or Champion Communities       Yes (documentation)..  No..................  No.
 designation.
Documented Need for Services/       Yes (narrative &       No..................  No.
 Benefits Derived from Services.     documentation, if
                                     necessary).
Innovativeness of the Project.....  Yes (narrative &       No..................  No.
                                     documentation).
Budget (table or other appropriate  Yes..................  Yes.................  Yes.
 format).
Leveraging Evidence and Funding     Yes (documentation)..  Yes (no leveraging    Yes (no leveraging evidence
 Commitments from All Sources.                              evidence required).   required).
Financial Information/              Yes..................  Yes.................  Yes.
 Sustainability (narrative).
Pro Forma Financial Data..........  No...................  Yes (documentation).  Yes (documentation).
Ability to execute a note with      No...................  Yes (documentation).  Yes (documentation).
 maturity  1 year.
Revenue/expense reports and         No...................  Yes for educational   Yes for educational
 balance sheet (table or other                              institutions/         institutions/consortia.
 appropriate format).                                       consortia.            (documentation).
                                                            (documentation).
Income statement and balance sheet  No...................  Yes for medical       Yes for medical institutions/
 (table or other appropriate                                institutions/         consortia. (documentation).
 format).                                                   consortia.
                                                            (documentation).
Balance sheet (table or other       No...................  Yes (documentation).  Yes (documentation).
 appropriate format) for a
 partnership, corporation,
 company, other entity; or
 consortia of such entities.
Property list (collateral)/         No...................  Yes (documentation).  Yes (documentation).
 adequate security.
Depreciation schedule.............  No...................  Yes (documentation).  Yes (documentation).
Revenue Source(s) for each hub and  No...................  Yes (documentation).  Yes (documentation).
 end-user site.

[[Page 9579]]

 
Economic analysis of rates--if      No...................  Yes (documentation).  Yes (documentation).
 applicant proposes to provide
 services to another entity.
System/Project Cost Effectiveness   Yes..................  No..................  No.
 (narrative & documentation).
Telecommunications System Plan      Yes..................  Yes.................  Yes.
 (narrative & documentation; maps
 or diagrams, if appropriate).
Proposed Scope of Work (narrative   Yes..................  Yes.................  Yes.
 or other appropriate format).
Statement of Experience (narrative  Yes..................  Yes.................  Yes.
 3-page, single-spaced limit).
Consultation with the USDA State    Yes..................  No..................  No.
 Director, Rural Development
 (documentation).
Application conforms with State     Yes..................  No..................  No.
 Strategic Plan per USDA State
 Director, Rural Development, (if
 plan exists) (documentation).
Certifications:
Equal Opportunity and               Yes..................  Yes.................  Yes.
 Nondiscrimination.
Architectural Barriers............  Yes..................  Yes.................  Yes.
Flood Hazard Area Precautions.....  Yes..................  Yes.................  Yes.
Uniform Relocation Assistance and   Yes..................  Yes.................  Yes.
 Real Property Acquisition
 Policies Act of 1970.
Drug-Free Workplace...............  Yes..................  Yes.................  Yes.
Debarment, Suspension, and Other    Yes..................  Yes.................  Yes.
 Responsibility Matters--Primary
 Covered Transactions.
Lobbying for Contracts, Grants,     Yes..................  Yes.................  Yes.
 Loans, and Cooperative Agreements.
Non Duplication of Services.......  Yes..................  Yes.................  Yes.
Environmental Impact/Historic
 Preservation.
Certification.....................  Yes..................  Yes.................  Yes.
Questionnaire.....................  No...................  Yes, if project       Yes, if project involves
                                                            involves              construction.
                                                            construction.
Federal Obligations on Delinquent   Yes..................  Yes.................  Yes.
 Debt.
Evidence of Legal Authority to      Yes..................  Yes.................  Yes.
 Contract with the Government
 (documentation).
Evidence of Legal Existence         Yes..................  Yes.................  Yes.
 (documentation).
Supplemental Information (if any)   Optional.............  Optional............  Optional.
 (narrative, documentation or
 other appropriate format).
----------------------------------------------------------------------------------------------------------------

    C. How many copies of an application are required? 1. Applications 
submitted on paper (grants, combination loan-grants and loans): a. 
Submit the original application and two (2) copies to RUS. b. Submit 
one (1) additional copy to the State government point of contact (if 
one has been designated) at the same time as you submit the application 
to RUS. See http://www.whitehouse.gov/omb/grants/spoc.html for an 
updated listing of State government points of contact or contact the 
DLT branch.
    2. Electronically submitted applications (grants and combination 
loan-grants):
    a. The additional paper copies for RUS specified in 7 CFR 
1703.128(c) and 7 CFR 1703.136(b) are not necessary if you submit the 
application electronically through Grants.gov.
    b. Submit one (1) copy to the State government point of contact (if 
one has been designated) at the same time as you submit the application 
to RUS. See http://www.whitehouse.gov/omb/grants/spoc.html for an 
updated listing of State government points of contact.
    D. How and where to submit an application. Grant and combination 
loan-grant applications may be submitted on paper or electronically. 
RUS cannot accept electronic loan applications at this time; please 
submit loan applications on paper.
    1. Submitting applications on paper (grants, combination loan-
grants or loans).
    a. Address paper applications for grants, combination loan-grants 
or loans to the Rural Utilities Service, U.S. Department of 
Agriculture, 1400 Independence Ave., SW., Room 2845, STOP 1550, 
Washington, DC 20250-1550. Applications should be marked ``Attention: 
Director, Advanced Services Division, Telecommunications Program.''
    b. For grants only: paper applications must show proof of mailing 
or shipping consisting of one of the following:
    (i) A legibly dated U.S. Postal Service (USPS) postmark;
    (ii) A legible mail receipt with the date of mailing stamped by the 
USPS; or
    (iii) A dated shipping label, invoice, or receipt from a commercial 
carrier. c. Due to screening procedures at the Department of 
Agriculture, packages arriving via the USPS are irradiated, which can 
damage the contents. RUS encourages applicants to consider the impact 
of this procedure in selecting their application delivery method.
    2. Electronically submitted applications (applies only to grants 
and combination loan-grants).
    a. Applications will not be accepted via facsimile machine 
transmission or electronic mail.
    b. Electronic applications for grants or combination loan-grants 
will be accepted if submitted through the Federal government's 
Grants.gov initiative at http://www.grants.gov.
    c. If you want RUS to review your application for items that would 
disqualify it for further consideration(see paragraph V.D of this 
notice), please do not use Grants.gov. Submit your application on 
paper.

[[Page 9580]]

Grants.gov does not yet support such pre-application reviews.
    d. How to use Grants.gov: (i) Navigate your Web browser to http://www.grants.gov.
    (ii) Follow the instructions on that Web site to find grant or 
combination loan-grant information.
    (iii) Download a copy of an application package.
    (iv) Complete the package off-line.
    (v) Upload and submit the application via the Grants.gov Web site.
    e. Grants.gov contains full instructions on all required passwords, 
credentialing and software.
    f. RUS encourages applicants who wish to apply through Grants.gov 
to submit their applications in advance of the deadline, in the case of 
grants.
    g. If a system problem occurs or you have technical difficulties 
with an electronic application, please use the customer support 
resources available at the Grants.gov Web site.
    h. New information for FY 2004 grant and combination loan-grant 
applications. The Distance Learning and Telemedicine Branch of RUS now 
offers applicants the opportunity to submit grant (and combination 
loan-grant) applications online through Grants.gov (http://www.grants.gov). The Web site is part of the Government-wide e-
Government project under the President's Management Agenda. In addition 
to online application submission, Grants.gov offers applicants a fully 
searchable database of Federal grant opportunities. All Federal grant-
making organizations are required to post their grant opportunities at 
Grants.gov, beginning with FY 2004. You can find more information on e-
grants at http://www.usda.gov/rus/telecom/dlt/dlt.htm and http://www.grants.gov.
    (i) Central Contractor Registry. In addition to the DUNS number now 
required of all grant applicants, submitting an application through 
Grants.gov requires that you list your organization in the Central 
Contractor Registry (CCR). Setting up a CCR listing (a one-time 
procedure with annual updates) takes up to five business days, so RUS 
strongly recommends that you obtain your organization's DUNS number and 
CCR listing well in advance of the deadline specified in this notice.
    (ii) Credentialing and authorization of applicants. Grants.gov will 
also require some one-time credentialing and online authentication 
procedures. These procedures may take several business days to 
complete, further emphasizing the need for early action to complete the 
sign-up, credentialing and authorization procedures at Grants.gov 
before you submit an application at that Web site.
    E. Deadlines. 1. Grants only: Paper applications must be postmarked 
and mailed, shipped, or sent overnight no later than April 30, 2004, to 
be eligible for FY 2004 grant funding. Late applications are not 
eligible for FY 2004 grant funding.
    2. Electronic grant applications must be received by April 30, 
2004, to be eligible for FY 2004 funding. Late applications are not 
eligible for FY 2004 grant funding.
    3. RUS will examine applications for items that would disqualify 
them from consideration if the applications are submitted on paper by 
March 31, 2004.
    4. Applications for FY 2004 combination loan-grants (paper or 
electronic) and loans (paper only) may be submitted at any time.
    F. Intergovernmental Review. All DLT programs are subject to 
Executive Order 12372, ``Intergovernmental Review of Federal 
Programs.'' As stated in paragraph IV.C of this notice, a copy of a DLT 
grant or combination loan-grant application must be submitted to the 
State single point of contact if one has been designated. Please see 
http://www.whitehouse.gov/omb/grants/spoc.html to determine whether 
your state has a single point of contact.
    G. Funding Restrictions. 1. Eligible purposes. a. End-user sites 
may receive financial assistance; hub sites (rural or non-rural) may 
also receive financial assistance if they are necessary to provide DLT 
services to end-user sites. Please see 7 CFR 1703.101(h).
    b. To fulfill the policy goals laid out for the DLT Program in 7 
CFR 1703.101, the following table lists purposes for financial 
assistance and whether each purpose is eligible for the assistance. 
Please consult the application guide(s) and the regulations (7 CFR 
1703.102 for definitions, in combination with the portions of the 
regulation cited in the table for each type of financial assistance) 
for detailed requirements for the items in the table.

----------------------------------------------------------------------------------------------------------------
                                                                Combination loan-grants
                                        Grants (7 CFR 1703.121   (7 CFR 1703.131 and 7    Loans (7 CFR 1703.141)
                                         and 7 CFR 1703.123)         CFR 1703.132)         and 7 CFR 1703.142)
----------------------------------------------------------------------------------------------------------------
Lease or purchase of eligible DLT      Yes--equipment only....  Yes....................  Yes.
 equipment and facilities.
Acquire instructional programming....  Yes....................  Yes....................  Yes.
Technical assistance, develop          Yes, not to exceed 10%   Yes, not to exceed 10%   Yes, not to exceed 10%
 instructional programming,             of the grant.            of the financial         of the financial
 engineering or environmental studies.                           assistance.              assistance.
Medical or education equipment or      No.....................  Yes....................  Yes.
 facilities necessary to the project.
Vehicles using distance learning or    No.....................  Yes....................  Yes.
 telemedicine technology to deliver
 services.
Teacher-student links located at the   No, if this is the sole  Yes, if linking is part  Yes, if linking is part
 same facility.                         project objective.       of a broader DLT         of a broader DLT
                                                                 network that meets       network that meets
                                                                 other combination loan-  other loan purposes.
                                                                 grant purposes.
Links between medical professionals    No, if this is the sole  Yes, if linking is part  Yes, if linking is part
 located at the same facility.          project objective.       of a broader DLT         of a broader DLT
                                                                 network that meets       network that meets
                                                                 other combination loan-  other loan purposes.
                                                                 grant purposes.
Site development or building           No.....................  Yes, if the activity     Yes, if the activity
 alteration.                                                     meets other              meets other loan
                                                                 combination loan-grant   purposes.
                                                                 purposes.
Land or building purchase............  No.....................  Yes, if the activity     Yes, if necessary to
                                                                 meets other              the overall project
                                                                 combination loan-grant   and incidental to the
                                                                 purposes.                loan amount.

[[Page 9581]]

 
Building construction................  No.....................  Yes, if the activity     Yes, if necessary to
                                                                 meets other              the overall project
                                                                 combination loan-grant   and incidental to the
                                                                 purposes.                loan amount.
Acquiring telecommunications           No.....................  Yes, if other            Yes, if other
 transmission facilities.                                        telecommunications       telecommunications
                                                                 carriers will not        carriers will not
                                                                 install in a             install in a
                                                                 reasonable time period   reasonable time period
                                                                 & at an economically     & at an economically
                                                                 viable cost to the       viable cost to the
                                                                 project.                 project.
Salaries, wages, benefits for medical  No.....................  No.....................  No.
 or educational personnel.
Salaries/administrative expenses of    No.....................  No.....................  No.
 applicant or project.
Recurring project costs or operating   No (equipment leases     No (equipment &          Yes, for the first two
 expenses.                              are eligible).           facility leases are      years after approval
                                                                 eligible).               (leases are not
                                                                                          recurring project
                                                                                          costs).
Equipment to be owned by the LEC or    Yes....................  Yes....................  Yes.
 other telecommunications service
 provider, if the provider is the
 applicant.
Duplicate distance learning or         No.....................  No.....................  No.
 telemedicine services.
Any project that, for its success,     No.....................  No.....................  No.
 depends on additional DLT financial
 assistance or other financial
 assistance that is not assured.
Application preparation costs........  No.....................  No.....................  No.
Other project costs not covered in     No.....................  No.....................  Yes, for the first two
 regulation.                                                                              years of the
                                                                                          operation.
Costs & facilities providing distance  No.....................  No.....................  Yes; financial
 learning broadcasting.                                                                   assistance amount
                                                                                          directly proportional
                                                                                          to the distance
                                                                                          learning portion of
                                                                                          use.
Reimburse applicant or others for      No.....................  No.....................  No.
 costs incurred prior to RUS''
 receipt of completed application.
----------------------------------------------------------------------------------------------------------------

    2. Eligible Equipment & Facilities. Please see 7 CFR 1703.102 for 
definitions of eligible equipment, eligible facilities and 
telecommunications transmission facilities as used in the table above.

V. Application Review Information

A. Special Considerations or Preferences

    1. American Samoa, Guam, Virgin Islands, and Northern Mariana 
Islands applications are exempt from the matching requirement up to a 
match amount of $200,000 (see 48 U.S.C. 1469a; 91 Stat. 1164).
    2. Related Preferences: 7 CFR 1703.112 directs that an RUS 
telecommunications borrower will receive expedited consideration and 
determination of a loan application or advance under the Rural 
Electrification Act of 1936 (7 U.S.C. 901-950aa, et seq.) if the loan 
funds in question are to be used in conjunction with a DLT grant, loan 
or combination loan-grant (See 7 CFR 1737 for loans and 7 CFR 1744 for 
advances).

B. Criteria

    1. Grant applications are scored competitively and subject to the 
criteria listed below. Combination loan-grants and loan applications 
are not scored competitively. However, they are evaluated on the basis 
of technical, financial, economic and other criteria. Please see 
paragraph IV.B.2.g of this notice for the items that will be evaluated 
for a combination loan-grant or loan application, and paragraph 
V.B.3.b. of this notice for a brief listing of evaluation standards.
    2. Grant application scoring criteria (total possible points: 235) 
See 7 CFR 1703.125 for the items that will be reviewed during scoring, 
and 7 CFR 1703.126 for scoring criteria.
    a. Need for services proposed in the application, and the benefits 
that will be derived if the application receives a grant (up to 55 
points).
    b. Rurality of the proposed service area (up to 45 points).
    c. Percentage of students eligible for the National School Lunch 
Program (NSLP) in the proposed service area (demonstrates economic need 
of the area) (up to 35 points).
    d. Leveraging resources above the required matching level (up to 35 
points). Please see paragraph III.B.1.a of this notice for a brief 
explanation of matching contributions.
    e. Level of innovation demonstrated by the project (up to 15 
points).
    f. System cost-effectiveness (up to 35 points).
    g. Project overlap with Empowerment Zone, Enterprise Communities or 
Champion Communities designations (up to 15 points).

C. Review Standards

    1. Grants. In addition to the scoring criteria that rank 
applications against each other, RUS evaluates grant applications for 
possible awards on the following items, according to 7 CFR 1703.127:
    a. Financial feasibility.
    b. Technical considerations. If the application contains flaws that 
would prevent the successful implementation, operation or 
sustainability of a project, RUS will not award a grant.
    c. Other aspects of proposals that contain inadequacies that would 
undermine the ability of the project to comply with the policies of the 
DLT Program.
    2. Combination loan-grants and loans.
    a. RUS evaluates applications' financial feasibility using the 
following information. Please see paragraph IV.B.g of this of this 
notice for the items that

[[Page 9582]]

constitute a completed combination loan-grant or loan application. 
Also, see 7 CFR 1703 Subpart F for combination loan-grants and 7 CFR 
1703 Subpart G for loans:
    (i) Applicant's financial ability to compete the project;
    (ii) Project feasibility;
    (iii) Applicant's financial information;
    (iv) Projects sustainability;
    (v) Ability to repay the loan portion of a combination loan-grant, 
including revenue sources;
    (vi) Collateral for which the applicant has perfected a security 
interest; and
    (vii) Adequate security for a loan or the loan portion of a 
combination loan-grant.
    b. Services to be provided by the project.
    c. Project cost.
    d. Project design.
    e. Other characteristics.
    D. As a courtesy, RUS will examine, provide comment, and return 
applications that include items that would disqualify them from further 
consideration for modification, if the applications are submitted by 
March 31, 2004. If you want RUS to examine your application in this 
manner, please submit your application on paper. Grants.gov does not 
currently support this kind of pre-application review.

E. Selection Process

    1. Grants. Grant applications are ranked by final score, and by 
application purpose (education or medical). RUS selects applications 
based on those rankings, subject to the availability of funds. RUS may 
allocate grant awards between medical and educational purposes, but is 
not required to do so. In addition, RUS has the authority to limit the 
number of applications selected in any one State during a fiscal year. 
See 7 CFR 1703.127.
    2. Combination loan-grants and loans. Based on the review standards 
listed above and in the DLT Program regulation, RUS will process 
successful loan applications on a first-in, first-out basis, dependent 
upon the availability of funds. Please see 7 CFR 1703.135 for 
combination loan-grant application processing and selection; and 7 CFR 
1703.145 for loan application processing and selection.

VI. Award Administration Information

A. Award Notices

    RUS recognizes that each funded project is unique, and therefore 
may attach conditions to different projects' award documents.
    1. Grants. RUS generally notifies applicants whose projects are 
selected for awards by faxing an award letter. RUS follows the award 
letter with a grant agreement that contains all the terms and 
conditions for the grant. An applicant must execute and return the 
grant agreement, accompanied by any additional items required by the 
grant agreement, within 120 days of the selection date.
    2. Combination loan-grants and loans.
    a. RUS generally sends a letter defining the characteristics of a 
loan (or the loan portion of a combination loan-grant) such as the 
term, interest rate and any conditions on the loan. An applicant must 
communicate agreement with the characteristics of the loan to RUS 
before a loan or combination loan-grant moves into the approval 
process. b. After receiving the applicant's agreement on the loan 
characteristics, RUS supplies an approval letter to the applicant. Loan 
documents (and a grant agreement, if applicable) are then sent by RUS. 
The applicant has 120 days to sign and return the documents, along with 
any additional material required by the loan or grant documents.

B. Administrative and National Policy Requirements

    The items listed in paragraph IV.B.2.g of this notice, and the DLT 
Program regulation, application guides and accompanying materials 
implement the appropriate administrative and national policy 
requirements.

C. Reporting

    1. Performance reporting. All recipients of DLT financial 
assistance must provide annual performance activity reports to RUS 
until the project is complete and the funds are expended. A final 
performance report is also required; the final report may serve as the 
last annual report. The final report must include an evaluation of the 
success of the project in meeting DLT Program objectives. See 7 CFR 
1703.107.
    2. Financial reporting. All recipients of DLT financial assistance 
must provide an annual audit, beginning with the first year a portion 
of the financial assistance is expended. Audits are governed by United 
States Department of Agriculture audit regulations. Please see 7 CFR 
1703.108.

VII. Agency Contacts

    A. Web site: http://www.usda.gov/rus/telecom/dlt/dlt.htm. The RUS' 
DLT Web site maintains up-to-date resources and contact information for 
DLT programs.
    B. Phone: 202-720-0413.
    C. Fax: 202-720-1051.
    D. E-mail: [email protected].
    E. Main point of contact: Orren E. Cameron, III, Director, Advanced 
Services Division, Rural Utilities Service, U.S. Department of 
Agriculture.

    Dated: February 23, 2004.
Hilda Gay Legg,
Administrator, Rural Utilities Service.
[FR Doc. 04-4322 Filed 2-27-04; 8:45 am]
BILLING CODE 3410-15-P