[Federal Register Volume 71, Number 49 (Tuesday, March 14, 2006)]
[Notices]
[Pages 13073-13077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-3575]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Announcement of Grant Application Deadlines and Funding Levels

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of solicitation of applications.

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SUMMARY: USDA Rural Development administers rural utilities programs 
through the Rural Utilities Service. USDA Rural Development announces 
its Community Connect Grant Program application window for funding 
during fiscal year (FY) 2006. In addition, USDA Rural Development 
announces the minimum and maximum amounts for Community Connect grants 
applicable for the fiscal year. The Community Connect Grant Program 
regulations can be found at 7 CFR part 1739, subpart A.

DATES: You may submit completed applications for grants on paper or 
electronically according to the following deadlines:
     Paper copies must carry proof of shipping no later than 
May 15, 2006 to be eligible for FY 2006 grant funding. Late 
applications are not eligible for FY 2006 grant funding.
     Electronic copies must be received by May 15, 2006 to be 
eligible for FY 2006 grant funding. Late applications are not eligible 
for FY 2006 grant funding.

ADDRESSES: You may obtain application guides and materials for the 
Community Connect Grant Program via the Internet at the following Web 
site: http://www.usda.gov/rus/telecom/commconnect.htm. You may also 
request application guides and materials from USDA Rural Development by 
contacting the appropriate individual listed in section VII of the 
SUPPLEMENTARY INFORMATION section of this notice.

[[Page 13074]]

    Submit completed paper applications for grants to the USDA Rural 
Development, 1400 Independence Ave., SW., Room 2844, STOP 1599, 
Washington, DC 20250-1599. Applications should be marked ``Attention: 
Director, Broadband Division, Telecommunications Program.''
    Submit electronic grant applications at http://www.grants.gov 
(Grants.gov), following the instructions you find on that Web site.

FOR FURTHER INFORMATION CONTACT: Kenneth Kuchno, Director, Broadband 
Division, Telecommunications, USDA Rural Development, telephone: (202) 
690-4673, fax: (202) 690-4389.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency: Rural Utilities Service.
    Funding Opportunity Title: Community Connect Grant Program.
    Announcement Type: Initial announcement.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.863.
    Dates: You may submit completed applications for grants on paper or 
electronically according to the following deadlines:
     Paper copies must carry proof of shipping no later than 
May 15, 2006, to be eligible for FY 2006 grant funding. Late 
applications are not eligible for FY 2006 grant funding.
     Electronic copies must be received by May 15, 2006, to be 
eligible for FY 2006 grant funding. Late applications are not eligible 
for FY 2006 grant funding.

Items in Supplementary Information

    I. Funding Opportunity: Brief introduction to the Community 
Connect Grant Program.
    II. Award Information: Available funds and 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, email, contact name.

I. Funding Opportunity

    The provision of broadband transmission service is vital to the 
economic development, education, health, and safety of rural Americans. 
The purpose of the Community Connect Grant Program is to provide 
financial assistance in the form of grants to eligible applicants that 
will provide currently unserved areas, on a ``community-oriented 
connectivity'' basis, with broadband transmission service that fosters 
economic growth and delivers enhanced educational, health care, and 
public safety services. USDA Rural Development will give priority to 
rural areas that it believes have the greatest need for broadband 
transmission services, based on the criteria contained herein.
    Grant authority will be used for the deployment of broadband 
transmission service to extremely rural, lower-income communities on a 
``community-oriented connectivity'' basis. The ``community-oriented 
connectivity'' concept will stimulate practical, everyday uses and 
applications of broadband facilities by cultivating the deployment of 
new broadband transmission services that improve economic development 
and provide enhanced educational and health care opportunities in rural 
areas. Such an approach will also give rural communities the 
opportunity to benefit from the advanced technologies that are 
necessary to achieve these goals. Please see 7 CFR 1739, subpart A 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 Community 
Connect Grant Program regulation (7 CFR 1739, subpart A).

II. Award Information

    A. Available Funds. 1. General. The Administrator has determined 
that the following amounts are available for grants in FY 2006 under 7 
CFR 1739.2(a).
    2. Grants. a. $8.9 million is available for grants. Under 7 CFR 
1739.2, the Administrator has established a minimum grant amount of 
$50,000. There is no maximum grant amount for FY 2006.
    b. Assistance instrument: USDA Rural Development will execute grant 
documents appropriate to the project prior to any advance of funds with 
successful applicants.
    B. Community Connect grants 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? (See 7 CFR 1739.10.)

    1. Only entities legally organized as one of the following are 
eligible for Community Connect Grant Program financial assistance:
    a. An incorporated organization,
    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 cooperative, private corporation or limited liability company 
organized on a for-profit or not-for-profit basis.
    2. Individuals are not eligible for Community Connect Grant Program 
financial assistance directly.
    3. Applicants must have the legal capacity and 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.

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

    1. Required matching contributions. Please see 7 CFR 1739.14 for 
the requirement. 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 USDA Rural 
Development financial assistance requested. Matching contributions must 
be used for eligible purposes of Community Connect grant assistance 
(see 7 CFR 1739.12).
    2. To be eligible for a grant, the Project must (see 7 CFR 
1739.11):
    a. Serve a Rural Area where Broadband Transmission Service does not 
currently exist, to be verified by USDA Rural Development prior to the 
award of the grant;
    b. Serve one and only one Community recognized in the latest U.S. 
Census, which shall encompass any community added through the Count 
Question Resolution Process, as well as any Census Designated Place. A 
Community made eligible through the Count Question Resolution Process 
which lacks Corresponding Per Capita Income (PCI) data must propose, 
subject to USDA Rural Development acceptance, available substitute PCI 
data for a geographic area that includes and most replicates the 
Applicant's proposed Service Area;
    Additional communities located in the contiguous areas outside the 
Community's boundaries that are not

[[Page 13075]]

recognized (due to size) in the U.S. Census, can be included in the 
applicant's proposed Service Area, but must be supported by 
documentation, acceptable to USDA Rural Development, as to their 
existence.
    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. Offer Basic Broadband Transmission Service to residential and 
business customers within the proposed Service Area; and
    e. Provide a Community Center with at least ten (10) Computer 
Access Points within the proposed Service Area, and make Broadband 
Transmission Service available therein, free of all charges to users 
for at least 2 years.
    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 
1739.15 for completed grant application items.

IV. Application and Submission Information

A. Where To Get Application Information

    The application guide, copies of necessary forms and samples, and 
the Community Connect Grant Program regulation are available from these 
sources:
    1. The Internet: http://www.usda.gov/rus/telecom/commconnect.htm, 
or http://www.grants.gov.
    2. The USDA Rural Development, Broadband Division, for paper copies 
of these materials: (202) 690-4673.

B. What Constitutes a Completed Application?

    1. Detailed information on each item required can be found in the 
Community Connect Grant Program regulation and the Community Connect 
Grant Program application guide. Applicants are strongly encouraged to 
read and apply both the regulation and the application guide. This 
Notice does not change the requirements for a completed application for 
any form of Community Connect Grant Program financial assistance 
specified in the Community Connect Grant Program regulation. The 
Community Connect Grant Program regulation and the application guide 
provide specific guidance on each of the items listed and the Community 
Connect Grant Program application guide provides all necessary forms 
and sample worksheets.
    2. A completed application must include the following 
documentation, studies, reports and information in form satisfactory to 
USDA Rural Development. Applications should be prepared in conformance 
with the provisions in 7 CFR 1739, subpart A, and applicable USDA 
regulations including 7 CFR parts 3015, 3016, and 3019. Applicants must 
use the USDA Rural Development Application Guide for this program 
containing instructions and all necessary forms, as well as other 
important information, in preparing their application. Completed 
applications must include the following:
    a. An Application for Federal Assistance. A completed Standard Form 
(SF) 424.
    b. An executive summary of the Project. The applicant must provide 
USDA Rural Development with a general project overview.
    c. Scoring criteria documentation. Each grant applicant must 
address and provide documentation on how it meets each of the scoring 
criteria detailed 7 CFR 1739.17.
    d. System design. The applicant must submit a system design, 
including, narrative specifics of the proposal, associated costs, maps, 
engineering design studies, technical specifications and system 
capabilities, etc.
    e. Scope of work. The scope of work must include specific 
activities and services to be performed under the proposal, who will 
carry out the activities and services, specific time-frames for 
completion, and a budget for all capital and administrative 
expenditures reflecting the line item costs for all grant purposes, the 
matching contribution, and other sources of funds necessary to complete 
the project.
    f. Community-Oriented Connectivity Plan. The applicant must provide 
a detailed Community-Oriented Connectivity Plan.
    g. Financial information and sustainability. The applicant must 
provide financial statements and information and a narrative 
description demonstrating the sustainability of the Project.
    h. A statement of experience. 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 the Rural Utilities Service and to 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 USDA Rural 
Development 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:
    (i) 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.
    (ii) 7 CFR part 3015--Uniform Federal Assistance Regulations.
    (iii) 7 CFR part 3017--Governmentwide Debarment and Suspension 
(Non-procurement).
    (iv) 7 CFR part 3018--New Restrictions on Lobbying.
    (v) 7 CFR part 3021--Governmentwide Requirements for Drug-Free 
Workplace (Financial Assistance).
    (vi) Certification regarding Architectural Barriers.
    (vii) Certification regarding Flood Hazard Precautions.
    (viii) An environmental report, in accordance with 7 CFR 1794.
    (ix) Certification that grant funds will not be used to duplicate 
lines, facilities, or systems providing Broadband Transmission Service.
    (x) Federal Obligation Certification on Delinquent Debt.
    5. DUNS Number. As required by the OMB, all applicants for grants 
must now supply a Dun and Bradstreet Data Universal Numbering System 
(DUNS) number when applying. The 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 Community Connect Web site or Grants.gov for more information on 
how to obtain a DUNS number or how to verify your organization's 
number.

C. How Many Copies of an Application Are Required?

    1. Applications submitted on paper: Submit the original application 
and two (2) copies to USDA Rural Development.
    2. Electronically submitted applications: The additional paper 
copies for USDA Rural Development are not necessary if you submit the 
application electronically through Grants.gov.

D. How and Where To Submit an Application

    Grant applications may be submitted on paper or electronically.

[[Page 13076]]

    1. Submitting applications on paper.
    a. Address paper applications for grants to the USDA Rural 
Development, 1400 Independence Ave., SW, Room 2844, STOP 1599, 
Washington, DC 20250-1599. Applications should be marked ``Attention: 
Director, Broadband Division, Telecommunications Program.''
    b. 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. USDA Rural Development encourages applicants to consider the 
impact of this procedure in selecting their application delivery 
method.
    2. Electronically submitted applications.
    a. Applications will not be accepted via facsimile machine 
transmission or electronic mail.
    b. Electronic applications for grants will be accepted if submitted 
through the Federal government's Grants.gov initiative at http://www.grants.gov.
    c. 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 
information.
    (iii) Download a copy of the application package.
    (iv) Complete the package off-line.
    (v) Upload and submit the application via the Grants.gov Web site.
    d. Grants.gov contains full instructions on all required passwords, 
credentialing and software.
    e. USDA Rural Development encourages applicants who wish to apply 
through Grants.gov to submit their applications in advance of the 
deadline.
    f. 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.
    g. Clarification for FY 2006: USDA Rural Development clarifies that 
the definition of ``Critical Community Facilities'' includes the 
mandatory Community Center, and that operating expenses associated with 
the Community Center for the first two years of operations are eligible 
for financial assistance. Moreover, USDA Rural Development clarifies 
its interpretation of the amount of operating expenses for Critical 
Community Facilities that are eligible for financial assistance by 
stating that ``reasonable operating expenses'' shall not exceed 
$200,000 over two years.

E. Deadlines

    1. Paper applications must be postmarked and mailed, shipped, or 
sent overnight no later than May 15, 2006 to be eligible for FY 2006 
grant funding. Late applications are not eligible for FY 2006 grant 
funding.
    2. Electronic grant applications must be received by May 15, 2006 
to be eligible for FY 2006 funding. Late applications are not eligible 
for FY 2006 grant funding.

F. Funding Restrictions

    1. Eligible grant purposes. Grant funds may be used to finance:
    a. The construction, acquisition, or leasing of facilities, 
including spectrum, to deploy Broadband Transmission Service to all 
participating Critical Community Facilities and all required facilities 
needed to offer such service to 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, during, and after normal working hours and on 
Saturday or Sunday. Grant funds provided for such costs shall not 
exceed the greater of five percent (5%) 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 
operation and in providing training and instruction. Salary and 
administrative expenses will be subject to review, and may be limited 
by USDA Rural Development 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.
    2. Ineligible grant purposes.
    a. Grant funds may not be used to finance the duplication of any 
existing Broadband Transmission Service provided by another entity.
    b. 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 service.
    3. Please see 7 CFR 1739.3 for definitions, 7 CFR 1739.12 for 
eligible grant purposes, and 7 CFR 1739.13 for ineligible grant 
purposes

V. Application Review Information

A. Criteria

    1. Grant applications are scored competitively and subject to the 
criteria listed below.
    2. Grant application scoring criteria (total possible points: 100). 
See 7 CFR 1739.17 for the items that will be reviewed during scoring 
and for scoring criteria.
    a. The rurality of the Project (up to 40 points);
    b. The economic need of the Project's Service Area (up to 30 
points); and
    c. The ``community-oriented connectivity'' benefits derived from 
the proposed service (up to 30 points).

B. Review Standards

    1. All applications for grants must be delivered to USDA Rural 
Development at the address and by the date specified in this notice 
(see also 7 CFR 1739.2) to be eligible for funding. Each application 
will be reviewed for conformance with the provisions of this part. 
Applicant may be contacted for additional information or clarification.
    2. 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.
    3. Applications conforming with this part will then be evaluated 
competitively by a panel of USDA Rural Development employees selected 
by the Administrator of the Rural Utilities Service, and will be 
awarded points as described in the scoring criteria in 7 CFR 1739.17. 
Applications will be ranked and grants awarded in rank order until all 
grant funds are expended.
    4. Regardless of the score an application receives, if USDA Rural 
Development determines that the Project is technically or financially 
infeasible, USDA Rural Development will notify the applicant, in 
writing, and the application will be returned with no further action.

C. Selection Process

    Grant applications are ranked by final score. USDA Rural 
Development selects applications based on those rankings, subject to 
the availability of funds.

VI. Award Administration Information

A. Award Notices

    USDA Rural Development recognizes that each funded project is 
unique, and

[[Page 13077]]

therefore may attach conditions to different projects' award documents. 
USDA Rural Development generally notifies applicants whose projects are 
selected for awards by faxing an award letter. USDA Rural Development 
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.

B. Administrative and National Policy Requirements

    The items listed in paragraph IV.B.2.k of this notice, and the 
Community Connect Grant Program regulation, application guide and 
accompanying materials implement the appropriate administrative and 
national policy requirements.

C. Reporting

    1. Performance reporting. All recipients of Community Connect Grant 
Program financial assistance must provide annual performance activity 
reports to USDA Rural Development 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. See 7 CFR 1739.19.
    2. Financial reporting. All recipients of Community Connect Grant 
Program 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 1739.20.

VII. Agency Contacts

    A. Web site: http://www.usda.gov/rus/commconnect.htm.
    The USDA Rural Development's Web site maintains up-to-date 
resources and contact information for the Community Connect Grant 
Program.
    B. Phone: 202-690-4673
    C. Fax: 202-690-4673
    D. Main point of contact: Kenneth Kuchno, Director, Broadband 
Division, Telecommunications Program, USDA Rural Development.

    Dated: March 2, 2006.
James M. Andrew,
Administrator, Rural Utilities Service.
[FR Doc. E6-3575 Filed 3-13-06; 8:45 am]
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