[Federal Register Volume 72, Number 68 (Tuesday, April 10, 2007)]
[Notices]
[Pages 17820-17828]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-6544]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Announcement of Funding Availability and Solicitation of 
Applications

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of Funding Availability and Solicitation of 
Applications.

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SUMMARY: The United States Department of Agriculture (USDA) Rural 
Development administers rural utilities programs through the Rural 
Utilities Service. USDA Rural Development announces its Distance 
Learning and Telemedicine (DLT) grant, combination loan-grant and loan 
program application windows for Fiscal Year (FY) 2007, and a new 
initiative within the combination loan-grant program for the conversion 
of medical recordkeeping systems to emerging electronic formats.
    In addition to announcing the application windows, the Agency 
announces the available funding, and the minimum and maximum amounts 
for DLT grants, combination loan-grants and loans applicable for the 
fiscal year.

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 June 11, 2007 to be eligible for FY 2007 
grant funding. Late or incomplete applications will not be eligible for 
FY 2007 grant funding.
     Electronic copies must be received by June 11, 2007 to be 
eligible for FY 2007 grant funding. Late or incomplete applications 
will not be eligible for FY 2007 grant funding.

ADDRESSES: You may obtain copies of the FY 2007 application guides and 
materials for the DLT grant program at the DLT Web site: http://www.usda.gov/rus/telecom/dlt/dlt.htm. For your reference, you may also 
request last year's FY 2006 application guide and materials by 
contacting the DLT Program at (202) 720-0413.
    Submit completed paper applications for grants to the United States 
Department of Agriculture, Rural Development, Telecommunications 
Program, 1400 Independence Ave., SW., Room 2845, STOP 1550, Washington, 
DC 20250-1550. Applications should be

[[Page 17821]]

marked ``Attention: Director, Advanced Services Division.''
    Submit electronic grant applications at http://www.grants.gov 
(Grants.gov), following the instructions you find on that Web site.

FOR FURTHER INFORMATION CONTACT: Director, Advanced Services Division, 
Telecommunications Program, USDA Rural Development, United States 
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 
Grants, Combination Loan-grants, and Loans.
    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 June 11, 2007 to be eligible for FY 2007 
grant funding. Late or incomplete applications are not eligible for FY 
2007 grant funding.
     Electronic copies must be received by June 11, 2007 to be 
eligible for FY 2007 grant funding. Late or incomplete applications are 
not eligible for FY 2007 grant funding.

Items in Supplementary Information

    I. Funding Opportunity: Brief introduction to the DLT program.
    II. Minimum and Maximum Application Amounts: Projected Available 
Funding.
    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 provides financial assistance 
to encourage and improve telemedicine services and distance learning 
services in rural areas through the use of telecommunications, computer 
networks, and related advanced technologies by students, teachers, 
medical professionals, and rural residents.
    Grants, which are awarded through a competitive process, may be 
used to fund telecommunications-enabled information, audio and video 
equipment and related advanced technologies which extend educational 
and medical applications into rural locations. Grants are made for 
projects where the benefit is primarily delivered to end users that are 
not at the same location as the source of the education or health care 
service.
    As in years past, the FY 2007 grant application guide has been 
changed to reflect recent changes in technology and application trends. 
Details of changes from the FY 2006 application guide are highlighted 
throughout this Notice and described in full in the FY 2007 application 
guide. All applicants must carefully review and exactly follow the FY 
2007 application guide and sample materials when compiling a DLT grant 
application.
    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 projects where the 
benefit is primarily at the same location as the source of the service. 
Loans and combination loan-grants may also 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 part 1703, subparts D, E, 
F and G for specifics.

II. Maximum and Minimum Amount of Applications; Projected Available 
Funding

    Under 7 CFR 1703.124, the Administrator has determined the maximum 
amount of an application for a grant in FY 2007 is $500,000 and the 
minimum amount of a grant is $50,000. The anticipated amount available 
to fund grant awards in FY 2007 is $15 million.
    The USDA Rural Development will make awards and execute documents 
appropriate to the project prior to any advance of funds to successful 
applicants.
    Combination loan-grants will be offered at a loan-to-grant ratio of 
9:1, i.e. $9 in loan to $1 in grant. Under 7 CFR 1703.133, the maximum 
amount of an application for a combination loan-grant in FY 2007 is $20 
million and the minimum amount of a combination loan-grant is $50,000. 
For this program, the Administrator has determined that $45,000,000 in 
loans, paired with $5,000,000 in grants, for a total of $50,000,000, 
will be available.
    For projects that are for electronic medical records systems, 
combination loan-grants will be offered at a special rate. The loan-to-
grant ratio for the special ratio combination loan-grant program will 
be 4:1, i.e. $4 in loan to $1 in grant. Under 7 CFR 1703.133, the 
Administrator has determined that maximum amount of a special ratio 
combination loan-grant application is $1 million, and the minimum 
amount is $50,000. For this special ratio program, $20,000,000 in loans 
will be paired with $5,000,000 in grants, for a total available of 
$25,000,000.
    The Administrator has determined that $62,900,000 will be available 
for DLT loans. Under 7 CFR 1703.143, the maximum amount of an 
application for a loan in FY 2007 is $20 million and the minimum amount 
of a loan is $50,000.
    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 program 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

[[Page 17822]]

or combination loan-grants, but are eligible for loans.

B. What are the basic eligibility requirements for a project?

    1. Required matching contributions for grants: See 7 CFR 
1703.125(g) and the FY 2007 application guide for information on 
required matching contributions.
    a. Grant applicants must demonstrate matching contributions, in 
cash or in kind (new, non-depreciated items), of at least fifteen (15) 
percent of the total amount of financial assistance requested. Matching 
contributions must be used for eligible purposes of DLT grant 
assistance (see 7 CFR 1703.121, paragraphs IV.G.1.b of this Notice and 
the FY 2007 application guide).
    b. Greater amounts of eligible matching contributions may increase 
an applicant's score (see 7 CFR 1703.126(b)(4), paragraph V.B.2.d of 
this notice, and the FY 2007 application guide).
    c. Applications that do not provide evidence of the required 
fifteen percent match which helps determine eligibility will be 
declared ineligible and returned. See paragraphs IV.G.1.c and V.B.2.d 
of this Notice, and the FY 2007 application guide for specific 
information on documentation of matching contributions.
    d. Applications that do not document all matching contributions are 
subject to budgetary adjustment by USDA Rural Development, which may 
culminate in rejection of an application as ineligible due to 
insufficient match.
    3. The DLT loan, combination loan-grant and grant programs are 
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:
    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.
    4. Rurality.
    a. All projects proposed for DLT grant 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 Section IV of this notice, 7 CFR 1703.126(a)(2), and the FY 
2007 application guide 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.

------------------------------------------------------------------------
                                                                   DLT
          Criterion               Character        Population     points
------------------------------------------------------------------------
Exceptionally Rural Area.....  Area not within  <= 5000........       45
                                an Urbanized
                                Area or Urban
                                Cluster.
Rural Area...................  Area in an       > 5000 and <=         30
                                Urban Cluster.   10,000.
Mid-Rural Area...............  Area in an       >10,000 and <=        15
                                Urban Cluster.   20,000.
Urban Area...................  Area in an       > 20,000.......        0
                                Urbanized Area
                                or Urban
                                Cluster.
------------------------------------------------------------------------

    c. The rurality score is one of the competitive scoring criteria 
applied to grant applications.
    4. Projects located in areas covered by the Coastal Barrier 
Resources Act (16 U.S.C. 3501 et seq.) are not eligible for financial 
assistance from the DLT Program. Please see 7 CFR 1703.123(a)(11), 7 
CFR 1703.132(a)(5), and 7 CFR 1703.142(b)(3).
    C. See Section IV of this Notice and the FY 2007 application guide 
for a discussion of the items that make up a complete application. For 
requirements of completed applications you may also refer to 7 CFR 
1703.125 for grant applications, 7 CFR 1703.134 for combination loan-
grant applications, and 7 CFR 1703.144 for loan applications. The FY 
2007 application guide provides specific, detailed instructions for 
each item that constitutes a complete application. The Agency strongly 
emphasizes the importance of including every required item (as 
explained in the FY 2007 application guide) and strongly encourages 
applicants to follow the instructions exactly, using the examples and 
illustrations in the FY 2007 application guide. Applications which do 
not include all items that determine project eligibility and applicant 
eligibility by the application deadline will be returned as ineligible. 
Applications that do not include all items necessary for scoring will 
be scored as is. Please see the FY 2007 application guide for a full 
discussion of each required item and for samples and illustrations.

IV. Application and Submission Information

A. Where To Get Application Information

    FY 2007 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.
    2. The DLT Program for paper copies of these materials: (202) 720-
0413.

B. What's new for FY 2007?

    1. For DLT Grants, USDA Rural Development clarifies end-user 
identification for portable and residential end-user projects such as 
ambulance and home health care applications. A simplified method of 
calculating rurality and National School Lunch Program (NSLP) scores 
for these applications will eliminate the need for identification and 
scoring of every community an applicant serves. Past applications from 
these applicants have contained hundreds of pages of community 
identification and scoring supporting documents. This was burdensome 
for applicants and increased the possibility of end-user site 
inconsistency, a cause of ineligibility for some in the FY 2006 DLT 
grant program.
    2. For DLT Combination loan grants, USDA Rural Development adds a 
special ratio combination loan-to-grant funding program to address the 
growing lag in implementation of electronic medical records systems in 
rural hospitals and healthcare networks. The new ratio is available 
only to projects whose entire cost is directly attributable to the 
conversion to or extension of an electronic medical records system.
    3. The standard rate DLT Combination loan-grant program adopts a 
new funding ratio of $9 loan for each $1 grant, to simplify post-grant 
administration.

[[Page 17823]]

    4. For DLT rurality scoring, a new measurement tool is used to 
improve accuracy and consistency of scoring. Rurality scoring is now 
referenced to the U.S. Census current Urbanized Area and Urban Cluster 
designations. This will prevent scoring anomalies caused by 
jurisdictional peculiarities of different states.

C. What constitutes a completed application?

    1. For DLT Grants:
    a. Detailed information on each item in the table in paragraph 
IV.C.1.f. of this Notice can be found in the sections of the DLT 
Program regulation listed in the table, and the DLT grant application 
guide. Applicants are strongly encouraged to read and apply both the 
regulation and the application guide.
    (1) 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. USDA Rural Development recognizes 
that each project is unique and requests narratives to allow applicants 
to explain their request for financial assistance.
    (2) 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 includes letters of commitment from other 
funding sources. In-kind matches must be items essential to the project 
and documentation from the donor must demonstrate the relationship of 
each item to the project's function. Evidence of legal existence is 
sometimes proven by submitting 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 guide provide specific guidance on each of the items in 
the table.
    b. The DLT application guide and ancillary materials provide all 
necessary forms and sample worksheets.
    c. While the table in paragraph IV.C.1.f of this Notice includes 
all items of a completed application, USDA Rural Development may ask 
for additional or clarifying information for applications which, as 
submitted by the deadline, appear to clearly demonstrate that they meet 
eligibility requirements.
    d. Submit the required application items in the order provided in 
the FY 2007 application guide. The FY 2007 application guide specifies 
the format and order of all required items. Applications that are not 
assembled and tabbed in the order specified prevent timely 
determination of eligibility. Given the high volume of program 
interest, incorrectly assembled applications will be returned as 
ineligible.
    e. DUNS Number. As required by the OMB, all applicants for grants 
must 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 http://www.grants.gov/RequestaDUNS for more 
information on how to obtain a DUNS number or how to verify your 
organization's number.
    f. 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
    g. Table of Required Elements of a Completed Grant Application.

------------------------------------------------------------------------
                                             REQUIRED items
                               -----------------------------------------
       Application item         Grants (7 CFR 1703.125
                                   and CFR 1703.126)         Comment
------------------------------------------------------------------------
SF-424 (Application for         Yes...................  Completely
 Federal Assistance form).                               filled out.
Executive Summary.............  Yes...................  Narrative.
Objective Scoring Worksheet...  Yes...................  RUS worksheet.
Rural Calculation Table.......  Yes...................  RUS worksheet.
National School Lunch Program   Yes...................  RUS worksheet;
 Determination.                                          must include
                                                         source
                                                         documentation.
EZ/EC or Champion Communities   Yes...................  Documentation.
 designation.
Documented Need for Services/   Yes...................  Narrative &
 Benefits Derived from                                   documentation,
 Services.                                               if necessary.
Innovativeness of the Project.  Yes...................  Narrative &
                                                         documentation.
Budget........................  Yes...................  Table or
                                                         spreadsheet;
                                                         Recommend using
                                                         the RUS format.
Leveraging Evidence and         Yes...................  RUS worksheet
 Funding Commitments from All                            and source
 Sources.                                                documentation.
Financial Information/          Yes...................  Narrative.
 Sustainability.
System/Project Cost             Yes...................  Narrative &
 Effectiveness.                                          documentation.
Telecommunications System Plan  Yes...................  Narrative &
                                                         documentation;
                                                         maps or
                                                         diagrams, if
                                                         appropriate.
Proposed Scope of Work........  Yes...................  Narrative or
                                                         other
                                                         appropriate
                                                         format.
Statement of Experience.......  Yes...................  Narrative 3-
                                                         page, single-
                                                         spaced limit.
Consultation with the USDA      Yes...................  Documentation.
 State Director, Rural
 Development.
Application conforms with       Yes...................  Documentation.
 State Strategic Plan per USDA
 State Director, Rural
 Development, (if plan exists).
        Certifications
Equal Opportunity and           Yes...................  Recommend using
 Nondiscrimination.                                      the RUS sample
                                                         form.

[[Page 17824]]

 
Architectural Barriers........  Yes...................  Recommend using
                                                         the RUS sample
                                                         form.
Flood Hazard Area Precautions.  Yes...................  Recommend using
                                                         the RUS sample
                                                         form.
Uniform Relocation Assistance   Yes...................  Recommend using
 and Real Property Acquisition                           the RUS sample
 Policies Act of 1970.                                   form.
Drug-Free Workplace...........  Yes...................  Recommend using
                                                         the RUS sample
                                                         form.
Debarment, Suspension, and      Yes...................  Recommend using
 Other Responsibility Matters--                          the RUS sample
 Primary Covered Transactions.                           form.
Lobbying for Contracts,         Yes...................  Recommend using
 Grants, Loans, and                                      the RUS sample
 Cooperative Agreements.                                 form.
Non Duplication of Services...  Yes...................  Recommend using
                                                         the RUS sample
                                                         form.
Environmental Impact/Historic   Yes...................  Recommend using
 Preservation Certification.                             the RUS sample
                                                         form.
Federal Obligations on          Yes...................  Recommend using
 Delinquent Debt.                                        the RUS sample
                                                         form.
Evidence of Legal Authority to  Yes...................  Recommend using
 Contract with the Government                            the RUS sample
 (documentation).                                        form.
Evidence of Legal Existence     Yes...................  Recommend using
 (documentation).                                        the RUS sample
                                                         form.
Supplemental Information (if    Optional..............  Narrative,
 any).                                                   documentation
                                                         or other
                                                         appropriate
                                                         format.
------------------------------------------------------------------------

    2. For combination loan-grant and loan applications:
    a. Detailed information on each item in the table in paragraph 
IV.C.2.f. of this Notice can be found in the sections of the DLT 
Program regulation listed in the table, and the DLT application guide. 
Applicants are strongly encouraged to read and apply both the 
regulation and the application guide.
    (1) 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. USDA Rural Development recognizes 
that each project is unique and requests narratives to allow applicants 
to explain their request for financial assistance.
    (2) 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, evidence of legal existence is sometimes proven by applicants 
who submit articles of incorporation. This example is not intended to 
limit the types of documentation that may be submitted to fulfill a 
requirement. DLT program regulations and the application guide provide 
specific guidance on each of the items in the table.
    b. The DLT application guide and ancillary materials provide all 
necessary forms and sample worksheets.
    c. While the table in paragraph IV.C.2.f. of this Notice includes 
all items of a completed application for each program, USDA Rural 
Development may ask for additional or clarifying information.
    d. Submit the required application items in the listed order.
    e. DUNS Number. As required by the OMB, all applicants for 
combination loan-grants must 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.
    f. Table of required items in a combination loan-grant or loan 
application:

------------------------------------------------------------------------
                                              REQUIRED items
                                ----------------------------------------
        Application item          Combination loan/
                                    grants (7 CFR            Loans
                                      1703.134)
------------------------------------------------------------------------
Completed SF-424 (Application    Yes................  Yes.
 for Federal Assistance form).
Executive Summary (narrative)..  Yes................  Yes.
Rural Calculation Table........  Yes................  Yes.
Budget (table or other           Yes................  Yes.
 appropriate format).
Financial Information/           Yes................  Yes.
 Sustainability (narrative).
Pro Forma Financial Data         Yes................  Yes.
 (documentation).
Ability to execute a note with   Yes................  Yes.
 maturity greater than 1 year
 (documentation).
Budget.........................  Yes................  Yes.
Revenue/expense reports and      Yes                  Yes
 balance sheet (documentation:    [bs