[Federal Register Volume 72, Number 179 (Monday, September 17, 2007)]
[Rules and Regulations]
[Pages 52779-52780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-18272]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1739

RIN 0572-AC09


Community Connect Broadband Grant Program

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of confirmation of direct final rule.

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SUMMARY: The Rural Utilities Service, an agency delivering the United 
States Department of Agriculture (USDA) Rural Development Utilities 
Programs, hereinafter referred to as Rural Development and/or the 
Agency, gives notice that no adverse comments were received regarding 
the direct final rule amending its regulations to update the 
eligibility criteria for the Community Connect Broadband Grant Program 
(Community Connect Grant Program) requirements of the Agency, and 
confirms the effective date of the direct final rule.

DATES: The direct final rule published in the Federal Register on 
August 3, 2007 (72 FR 43132), will be effective on September 17, 2007.

FOR FURTHER INFORMATION CONTACT: Kenneth Kuchno, Director, Broadband 
Division, USDA Rural Development, 1400 Independence Avenue, SW., STOP 
1599, Washington, DC 20250-1599. Telephone: (202) 690-4673. Fax: (202) 
690-4389. E-mail Address: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The USDA Rural Development Utilities Programs (the Agency) improves 
the quality of life in rural America by providing investment capital, 
in the form of loans and grants, for the deployment of rural 
telecommunications infrastructure. Financial assistance is provided to 
rural utilities; municipalities; commercial corporations; limited 
liability companies; public utility districts; Indian tribes; and 
cooperative, nonprofit, limited-dividend, or mutual associations. In 
order to achieve the goal of increasing economic opportunity in rural 
America, the Agency finances infrastructure that enables access to a 
seamless, nation-wide

[[Page 52780]]

telecommunications network. With access to the same advanced 
telecommunications networks of its urban counterparts, especially 
broadband networks designed to accommodate distance learning, telework 
and telemedicine, rural America will see improving educational 
opportunities, health care, economies, safety and security, and 
ultimately higher employment. Of particular concern to the Agency are 
communities where broadband service is not available and where 
population densities are such that the cost of deployment to them is 
high and build-out of infrastructure is unlikely. The Agency is 
committed to ensuring rural communities will have access to affordable, 
reliable, advanced communications services, comparable to those 
available throughout the rest of the United States, to provide a 
healthy, safe and prosperous place to live and work. The Community 
Connect Grant Program was started as a Pilot Program with the Fiscal 
Year 2002 budget and has been funded ever since through the 
appropriations process. After administering the program as a pilot 
program for two years, the Agency proposed rules for the program, and 
on July 28, 2004, the current rules were published, and the program was 
formally implemented. Since then more than 670 requests for grant funds 
totaling over $410 million were requested through Fiscal Year 2006. Of 
those requests, 129 were granted for $57 million to bring broadband 
service to 129 communities in 26 states and Puerto Rico. While the 
Agency is proud of the results achieved in the Community Connect Grant 
Program thus far, it believes that the overall effectiveness of the 
program can be improved by modifying the existing rules. Through these 
changes, the Agency is increasing eligibility criteria to include 
communities that clearly meet the intent of the program. Specifically, 
this rule will: (1) Add the Rand McNally Atlas as a community locator; 
(2) change the income measure for eligibility from a national 
comparison to a state comparison; and (3) clarify the items that are 
eligible to be considered as operating expenses.

Confirmation of Effective Date

    This is to confirm the effective date of September 17, 2007, for 
the direct final rule 7 CFR 1739, Community Connect Grant Program, 
published in the Federal Register on August 3, 2007.

     Dated: September 11, 2007.
James M. Andrew,
Administrator, Rural Utilities Service.
[FR Doc. E7-18272 Filed 9-14-07; 8:45 am]
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