[Federal Register Volume 73, Number 248 (Wednesday, December 24, 2008)]
[Notices]
[Pages 79041-79047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30759]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Announcement of Solicitation of Applications and Grant 
Application Deadlines

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of Solicitation of Applications.

-----------------------------------------------------------------------

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 program application window for 
Fiscal Year (FY) 2009 subject to the availability of funding. This 
notice is being issued prior to passage of a final appropriations

[[Page 79042]]

act to allow potential applicants time to submit proposals and give the 
Agency time to process applications within the current fiscal year. 
USDA Rural Development will publish a subsequent notice identifying the 
amount received in the final appropriations act, if any. Expenses 
incurred in developing applications will be at the applicant's risk. 
For FY 2008, Congress appropriated approximately $30 million.
    In addition to announcing the application window, the Agency 
announces the minimum and maximum amounts for DLT grants applicable for 
the fiscal year. Finally, the Agency notes that the Food, Conservation, 
and Energy Act of 2008, in order to clearly establish that libraries 
are eligible to be recipients of DLT Loans and Grants, expressly added 
the category of libraries under Sec. 2333 (c)(1) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. Sec. 950aaa-
2(a)(1)). This confirms longstanding Agency policy of considering 
libraries to be eligible entities under the DLT Program.

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 March 24, 2009 to be eligible for FY 2009 
grant funding. Late or incomplete applications will not be eligible for 
FY 2009 grant funding.
     Electronic copies must be received by March 24, 2009 to be 
eligible for FY 2009 grant funding. Late or incomplete applications 
will not be eligible for FY 2009 grant funding.

ADDRESSES: Copies of the FY 2009 application guides and materials for 
the DLT grant program may be obtained at the following sources: (1) The 
DLT Web site: http://www.usda.gov/rus/telecom/dlt/dlt.htm, and (2) 
Contacting the DLT Program at 202-720-0413.
    Paper applications are to be submitted to the USDA Rural 
Development, Telecommunications Program, 1400 Independence Ave., SW., 
Room 2845, STOP 1550, Washington, DC 20250-1550. Applications should be 
marked ``Attention: Director, Advanced Services Division.''
    Electronic applications may be submitted through Grants.gov. 
Information on how to submit applications electronically is available 
on the Grants.gov Web site (http://www.grants.gov). Applicants must 
successfully pre-register with Grants.gov to use the electronic 
applications option. Application information may be downloaded from 
Grants.gov without preregistration.

FOR FURTHER INFORMATION CONTACT: Director, Advanced Services Division, 
Telecommunications Programs, USDA Rural Development. 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.
    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 March 24, 2009 to be eligible for FY 2009 
grant funding. Late or incomplete applications are not eligible for FY 
2009 grant funding.
     Electronic copies must be received by March 24, 2009 to be 
eligible for FY 2009 grant funding. Late or incomplete applications are 
not eligible for FY 2009 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 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 to be used by students, teachers, medical 
professionals, and rural residents.
    The 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 2009 grant application guide has been 
changed to reflect recent changes in technology and application trends. 
Details of changes from the FY 2008 application guide are highlighted 
throughout this Notice and are described in full in the FY 2009 
application guide. All applicants must carefully review and exactly 
follow the FY 2009 application guide and sample materials when 
compiling a DLT grant application.

II. Maximum and Minimum Amount of Applications

    The Administrator has determined the maximum amount of an 
application for a 100% grant in FY 2009 is $500,000 and the minimum 
amount of a grant is $50,000.
    The Agency will make awards and execute documents appropriate to 
the project after an appropriations bill has been enacted for FY 2009 
and prior to any advance of funds to successful applicants.
    DLT grants cannot be renewed. Award documents specify the term of 
each award. The Agency will make awards and execute documents 
appropriate to the project prior to any advance of funds to successful 
applicants. Applications to enlarge existing projects are welcomed 
(100% 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 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 25U.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

[[Page 79043]]

    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.
    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 2009 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 2009 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 2009 application guide).
    c. Applications that do not provide evidence of the required 
fifteen percent match will be declared ineligible and returned. See 
paragraphs IV.G.1.c and V.B.2.d of this Notice, and the FY 2009 
application guide for specific information on documentation of matching 
contributions.
    d. Applications that do not document all matching contributions in 
form and substance satisfactory to the Agency as described in the 
application guide are subject to budgetary adjustment by the Agency, 
which may result in rejection of an application as ineligible due to 
insufficient match.
    3. The DLT grant 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:
    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 
2009 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 an Urbanized Area                <=5000    45
                                                  or Urban Cluster.
Rural Area.....................................  Area in an Urban Cluster.........  > 5000 and <= 10,000    30
Mid-Rural Area.................................  Area in an Urban Cluster.........        >10,000 and <=    15
                                                                                                  20,000
Urban Area.....................................  Area in an Urbanized Area or                   > 20,000     0
                                                  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 2009 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. The FY 2009 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 2009 application 
guide) and strongly encourages applicants to follow the instructions 
carefully, using the examples and illustrations in the FY 2009 
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. Scoring and 
eligibility information will not be solicited or considered by the 
Agency after the application deadline. Applications that do not include 
all items necessary for scoring will be scored as is. Please see the FY 
2009 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 2009 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 2009?
    1. As in FY 2008, applicants are again reminded that end user sites 
are rural facilities. See 7 CFR 1703.102, Definitions, ``End User'' and 
``End User Site''. We have experienced an increase in the number of 
applications which attempt to include urban educational and medical 
facilities as end user sites. Urban facilities can serve as hub sites, 
but not end user sites. For projects with non-fixed end user sites, 
only those end user sites outside urban areas can be funded. The FY 
2009 application guide contains clarifying language to elaborate on 
this provision of the regulation.
    2. If a grant application includes a site that is included in any 
other DLT grant application for FY 2009, or a site that has been 
included in any DLT grant funded in FY 2008 or FY 2007, the application 
should contain a detailed explanation of the related applications or 
grants. The Agency must make a nonduplication finding for each grant 
approved, and apparent but unexplained duplication of funding for a 
site can prevent such a finding.
    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 applications guide, which elaborates and explains 
the regulation.

[[Page 79044]]

    (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. The Agency 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 
printouts from the official USDA Web site. Leveraging documentation 
generally will be letters of commitment from the funding sources. In-
kind matches must be items purchased after the application deadline 
date that are 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 must 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 sample forms and worksheets.
    c. While the table in paragraph IV.C.1.f of this Notice includes 
all items of a completed application, the Agency may ask for additional 
or clarifying information for applications which, as submitted by the 
deadline, appear to clearly demonstrate that they meet eligibility 
requirements. The Agency will not solicit or accept eligibility or 
scoring information submitted after the application deadline.
    d. Submit the required application items in the order provided in 
the FY 2009 application guide. The FY 2009 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, and applications with 
inconsistency among submitted copies, 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/applicants/request_duns_number.jsp 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        Comment
                                      1703.126)
------------------------------------------------------------------------
SF-424 (Application for Federal   Yes..............  Completely filled
 Assistance form).                                    out.
Site Worksheet..................  Yes..............  Agency worksheet.
Survey on Ensuring Equal          Optional.........  OMB Form.
 Opportunity for Applicants.
Evidence of Legal Authority to    Yes..............  Documentation.
 Contract with the Government.
Evidence of Legal Existence.....  Yes..............  Documentation.
Executive Summary...............  Yes..............  Narrative.
Telecommunications System Plan    Yes..............  Narrative &
 and Scope of Work.                                   documentation such
                                                      as maps and
                                                      diagrams.
Budget..........................  Yes..............  Agency Worksheets
                                                      with
                                                      documentation.
Financial Information/            Yes..............  Narrative.
 Sustainability.
Statement of Experience.........  Yes..............  Narrative 3-page,
                                                      single-spaced
                                                      limit.
Rurality Worksheet..............  Yes..............  Agency worksheet
                                                      with
                                                      documentation.
National School Lunch Program     Yes..............  Agency worksheet
 (NSLP) Worksheet.                                    with
                                                      documentation.
Leveraging Evidence and Funding   Yes..............  Agency worksheet
 Commitments from all Sources.                        and source
                                                      documentation.
EZ/EC or Champion Communities     Yes..............  Documentation.
 designation.
Request for Additional NSLP.....  Optional.........  Agency Worksheet
                                                      and narrative.
Need for and Benefits derived     Yes..............  Narrative &
 from Project.                                        documentation.
Innovativeness of the Project...  Yes..............  Narrative &
                                                      documentation.
Cost Effectiveness of Project...  Yes..............  Narrative &
                                                      documentation.
Consultation with the USDA State  Yes..............  Documentation.
 Director, Rural Development,
 and evidence that application
 conforms to State Strategic
 Plan, if any.
------------------------------------------------------------------------
Certifications:
------------------------------------------------------------------------
Equal Opportunity and             Yes..............  Recommend using
 Nondiscrimination.                                   Agency's sample
                                                      form.
Architectural Barriers..........  Yes..............  Recommend using
                                                      Agency's sample
                                                      form.
Flood Hazard Area Precautions...  Yes..............  Recommend using
                                                      Agency's sample
                                                      form.
Uniform Relocation Assistance     Yes..............  Recommend using
 and Real Property Acquisition                        Agency's sample
 Policies Act of 1970.                                form.
Drug-Free Workplace.............  Yes..............  Recommend using
                                                      Agency's sample
                                                      form.

[[Page 79045]]

 
Debarment, Suspension, and Other  Yes..............  Recommend using
 Responsibility Matters--Primary                      Agency's sample
 Covered Transactions.                                form.
Lobbying for Contracts, Grants,   Yes..............  Recommend using
 Loans, and Cooperative                               Agency's sample
 Agreements.                                          form.
Non Duplication of Services.....  Yes..............  Recommend using
                                                      Agency's sample
                                                      form.
Environmental Impact/Historic     Yes..............  Recommend using
 Preservation Certification.                          Agency's sample
                                                      form.
------------------------------------------------------------------------

    D. How many copies of an application are required?
    1. Applications submitted on paper.
    a. Submit the original application and two (2) copies to USDA Rural 
Development.
    b. Submit one (1) additional copy to the state government single 
point of contact (SPOC) (if one has been designated) at the same time 
as you submit the application to the Agency. See http://www.whitehouse.gov/omb/grants/spoc.html for an updated listing of State 
government single points of contact.
    2. Electronically submitted applications. Grant applications may be 
submitted electronically. Please carefully read the FY 2009 application 
guide for guidance on submitting an electronic application. In 
particular, we ask that you identify and number each page in the same 
way you would a paper application so that we can assemble them as you 
intended.
    a. The additional paper copies are not necessary if you submit the 
application electronically through Grants.gov.
    b. Submit one (1) copy to the state government single point of 
contact (if one has been designated) at the same time as you submit the 
application to the Agency. See http://www.whitehouse.gov/omb/grants/spoc.html for an updated listing of State government single points of 
contact.
    E. How and where to submit an application. Grant applications may 
be submitted on paper or electronically.
    1. Submitting applications on paper.
    a. Address paper applications to the Telecommunications Program, 
USDA Rural Development, United States Department of Agriculture, 1400 
Independence Ave., SW., Room 2845, STOP 1550, Washington, DC 20250-
1550. Applications should be marked ``Attention: Director, Advanced 
Services Division.''
    b. Paper grant applications must show proof of mailing or shipping 
by the deadline 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 regular mail through the USPS are irradiated, 
which can damage the contents and delay delivery to the DLT Program. 
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 fax 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) Grants.gov contains full instructions on all required 
passwords, credentialing and software.
    (ii) Central Contractor Registry. Submitting an application through 
Grants.gov requires that you list your organization in the Central 
Contractor Registry (CCR). Setting up a CCR listing takes up to five 
business days, so the Agency strongly recommends that you obtain your 
organization's DUNS number and CCR listing well in advance of the 
deadline specified in this notice.
    (iii) Credentialing and authorization of applicants. Grants.gov 
will also require some credentialing and online authentication 
procedures. These procedures may take several business days to 
complete, further emphasizing the need for early action by applicants 
to complete the sign-up, credentialing and authorization procedures at 
Grants.gov before you submit an application at that Web site.
    (iv) Some or all of the CCR and Grants.gov registration, 
credentialing and authorizations require updates. If you have 
previously registered at Grants.gov to submit applications 
electronically, please ensure that your registration, credentialing and 
authorizations are up to date well in advance of the grant application 
deadline.
    d. USDA Rural Development encourages applicants who wish to apply 
through Grants.gov to submit their applications in advance of the 
deadlines.
    e. 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.

F. Deadlines.

    1. Paper grant applications must be postmarked and mailed, shipped, 
or sent overnight no later than March 24, 2009, to be eligible for FY 
2009 grant funding. Late applications, applications which do not 
include proof of mailing or shipping as described in paragraph IV.E.b., 
and incomplete applications are not eligible for FY 2009 grant funding.
    2. Electronic grant applications must be received by March 24, 
2009, to be eligible for FY 2009 funding. Late or incomplete 
applications will not be eligible for FY 2009 grant funding.
    F. Intergovernmental Review. The DLT grant program is subject to 
Executive Order 12372, ``Intergovernmental Review of Federal 
Programs.'' As stated in paragraph IV.D.1. of this Notice, a copy of a 
DLT 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. For grants, rural 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 the application guide and 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 generally considered to be 
eligible for the form of financial

[[Page 79046]]

assistance. Please consult the FY 2009 application guide and the 
regulations (7 CFR 1703.102 for definitions, in combination with the 
portions of the regulation cited in the table) for detailed 
requirements for the items in the table. Rural Development strongly 
recommends that applicants exclude ineligible items from the grant and 
match portions of grant application budgets. However, some items 
ineligible for funding or matching contributions may be vital to the 
project. Rural Development encourages applicants to document those 
costs in the application's budget. Please see the FY 2009 application 
guide for a recommended budget format, and detailed budget compilation 
instructions.

------------------------------------------------------------------------
                                                       Grants
------------------------------------------------------------------------
Lease or purchase of eligible DLT           Yes, equip. only.
 equipment and facilities.
Acquire instructional programming.........  Yes.
Technical assistance, develop               Yes, up to 10% of the grant.
 instructional programming, engineering or
 environmental studies.
Medical or education equipment or           Yes.
 facilities necessary to the project.
Vehicles using distance learning or         No.
 telemedicine technology to deliver
 services.
Teacher-student links located at the same   No.
 facility.
Links between medical professionals         No.
 located at the same facility.
Site development or building alteration...  No.
Land of building purchase.................  No.
Building Construction.....................  No.
Acquiring telecommunications transmission   No.
 facilities.
Internet services, telecommunications       No.
 services or other forms of connectivity.
Salaries, wages, benefits for medical or    No.
 educational personnel.
Salaries or administrative expenses of      No.
 applicant or project.
Recurring project costs or operating        No, (equipment & facility
 expenses.                                   leases are not recurring
                                             project costs).
Internet services, telecom services, and    No.
 other forms of connectivity.
Equipment to be owned by the LEC or other   No.
 telecommunications service provider, if
 the provider is the applicant.
Duplicative distance learning or            No.
 telemedicine services.
Any project that for its success, depends   No.
 on additional DLT financial assistance or
 other financial assistance that is not
 assured.
Application Preparation Costs.............  No.
Other project costs not in regulation.....  No.
Cost of facilities providing distance       No.
 learning broadcasting. (amount).
Reimburse applicants of others for costs    No.
 incurred prior to USDA RURAL DEVELOPMENT
 receipt of completed application.
------------------------------------------------------------------------

    c. Discounts. The DLT Program regulation has long stated that 
manufacturers' and service providers' discounts are not eligible 
matches. The Agency will not consider as eligible any proposed match 
from a vendor, manufacturer, or service provider whose products or 
services will be used in the DLT project as described in the 
application. In recent years, the Agency has noted a trend of vendors, 
manufacturers and other service providers offering their own products 
and services as in-kind matches for a project when their products or 
services will also be purchased with either grant or cash match funds 
for that project. Such activity is a discount and is therefore not an 
eligible match. Similarly, if a vendor, manufacturer or other service 
provider proposes a cash match (or any in-kind match) when their 
products or services will be purchased with grant or match funds, such 
activity is a discount and is not an eligible match. The Agency 
actively discourages such matching proposals and will adjust budgets as 
necessary to remove any such matches, which may reduce an application's 
score or result in the application's ineligibility due to insufficient 
match.
    2. Eligible Equipment & Facilities. Please see the FY 2009 
application guide supplies a wealth of information and examples of 
eligible and ineligible items. In addition, see 7 CFR 1703.102 for 
definitions of eligible equipment, eligible facilities and 
telecommunications transmission facilities as used in the table above.
    3. Apportioning budget items. Many DLT applications propose to use 
items for a blend of specific DLT eligible project purposes and other 
purposes. Rural Development will now fund such items, if the applicants 
attribute the proportion (by percentage of use) of the costs of each 
item to the project's DLT purpose or to other purposes to enable 
consideration for a grant of the portion of the item that is for DLT 
usage. See the FY 2009 application guide for detailed information on 
how to apportion use and apportioning illustrations.

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. 7 CFR 1703.112 directs that Rural Development Telecommunications 
Borrowers receive expedited consideration 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 (See 7 CFR 1737 for loans and 7 CFR 1744 
for advances).
    B. Criteria.
    1. Grant application scoring criteria (total possible points: 225). 
See 7 CFR 1703.125 for the items that will be reviewed during scoring, 
and 7 CFR 1703.126 for scoring criteria.
    2. Grant applications are scored competitively subject to the 
criteria listed below.
    a. Rurality of the proposed service area (up to 45 points).
    b. Percentage of students eligible for the NSLP in the proposed 
service area (objectively demonstrates economic need of the area) (up 
to 35 points).
    c. Leveraging resources above the required matching level (up to 35 
points). Please see paragraph III.B of this Notice for a brief 
explanation of matching contributions.
    d. Project overlap with Empowerment Zone, Enterprise Communities or 
Champion Communities designations (up to 15 points).
    e. Need for services proposed in the application, and the benefits 
that will be derived if the application receives a grant (up to 55 
points).
    (i) Up to 10 of the possible 55 possible points are to recognize 
economic need not reflected in the project's National School Lunch 
Program (NSLP) score, and can be earned only by applications whose 
overall NSLP eligibility is less than 50%. To be eligible to receive 
points under this, the application must include an affirmative request 
for consideration of the possible 10 points, and compelling 
documentation of

[[Page 79047]]

reasons why the NSLP eligibility percentage does not represent the 
economic need of the proposed project beneficiaries.
    (ii) Up to 45 of the 55 possible points under this criterion are 
available to all applicants. Points are awarded based on the required 
narrative crafted by the applicant. Rural Development encourages 
applicants to carefully read the cited portions of the Program 
regulation and the FY 2009 application guide for full discussions of 
this criterion.
    f. Level of innovation demonstrated by the project (up to 15 
points).
    g. System cost-effectiveness (up to 35 points).
    C. Grant Review standards.
    1. In addition to the scoring criteria that rank applications 
against each other, the Agency 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, the Agency 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. 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 2009 application guide for a full discussion of each 
required item and for samples and illustrations. The Agency will not 
solicit or consider eligibility or scoring information submitted after 
the application deadline.
    3. The FY 2009 grant application guide specifies the format and 
order of all required items. Applications that are not assembled and 
tabbed in the order specified and incorrectly assembled applications 
will be returned as ineligible.
    4. Most DLT grant projects contain numerous project sites. The 
Agency requires that site information be consistent throughout an 
application. Sites must be referred to by the same designation 
throughout all parts of an application. The Agency has provided a site 
worksheet that requests the necessary information, and can be used as a 
guide by applicants. Rural Development strongly recommends that 
applicants complete the site worksheet, listing all requested 
information for each site. Applications without consistent site 
information will be returned as ineligible.
    5. DLT grant applications which have non-fixed end-user sites, such 
as ambulance and home health care services, are now scored using a 
simplified scoring method that finds the relative rurality of the 
applicant's service area. See the FY 2009 application guide for 
specific guidance on this method of scoring. When an application 
contains non-fixed sites, it must be scored using the non-fixed site 
scoring method.
    D. Selection Process.
    1. Grants. Applications are ranked by final score, and by 
application purpose (education or medical). Rural Development selects 
applications based on those rankings, subject to the availability of 
funds. USDA Rural Development may allocate grant awards between medical 
and educational purposes, but is not required to do so. In addition, 
Rural Development has the authority to limit the number of applications 
selected in any one state, or for one project, during a fiscal year. 
See 7 CFR 1703.127.

VI. Award Administration Information

    A. Award Notices.
    Rural Development generally notifies applicants whose projects are 
selected for awards by faxing an award letter. Rural Development 
follows the award letter with an agreement that contains all the terms 
and conditions for the grant. Rural Development recognizes that each 
funded project is unique, and therefore may attach conditions to 
different projects' award documents. An applicant must execute and 
return the agreement, accompanied by any additional items required by 
the agreement, within the number of days shown in the selection notice 
letter.
    B. Administrative and National Policy Requirements: The items 
listed in Section IV of this notice, and the DLT Program regulation, FY 
2009 application guide 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 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 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.
    3. Record Keeping and Accounting. The grant contract will contain 
provisions relating to record keeping and accounting requirements.

VII. Agency Contacts

    A. Web site: http://www.usda.gov/rus/telecom/dlt/dlt.htm. The 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: Director, Advanced Services Division, 
Telecommunications Program, USDA Rural Development.

    Dated: December 18, 2008.
Curtis M. Anderson,
Deputy Administrator, Rural Utilities Service.
[FR Doc. E8-30759 Filed 12-23-08; 8:45 am]
BILLING CODE 3410-15-P